UNH Faculty Senate

Summary Minutes from 28 September 1998


I.  Roll - The following Faculty Senate members were absent:  
Balderacchi, de la Torre, Henke, McMahon, Morris, Niman, Pugh, Sohl, and 
Williams.  Excused were Bornstein, Crepeau, Draper and Gross.

II.  Discussion with the President - President Leitzel said that, due to 
planned enrollments which did not materialize, the academic departments 
must adjust their budgets by $2.2 million, either by increasing revenues 
or by reducing expenses.  The Deans' Council prepared recommendations for
the president, which she has passed on to the senate chair and asked for 
response from the Agenda Committee and the Academic Affairs Committee.  
Academic program reductions usually also have revenue consequences, and 
we must only look at net savings.  Cost transfers to other units in the 
university are not net savings.  The president said that the Faculty 
Senate does not have authority over the curricula of the colleges except 
as they impact other programs.  She added that we will need a group to 
review proposals to be sure that they do not transfer costs to other 
units and also to be sure that one unit does not encroach on another's 
area.  In addition, this group could give guidance regarding such issues 
as general education, writing requirements, the number of credits allowed 
per course, and so on.  Faculty  should consider interdisciplinary 
programs and make recommendations on how to deal with them.  No 
displacement of faculty has been proposed in these budget 
recommendations.

A professor asked what is the hope that the future will be different; and 
the president responded that she expects improvements to result from 
decentralization of the budget process, better enrollments, private fund 
raising, increasing research funding and more industrial funding.  
However, the surrounding states are pumping money into their financial 
aid packages, and we cannot compete with that.  Our alumni advocacy 
network is taking shape.  A faculty member pointed out that, if 
responsibility-centered management were instituted, there would be 
competition between departments, which would result in both good and bad 
consequences.  Before a decision is made, we should take a hard look at 
what the principles and structures will be, since there is wide concern 
about the plan.

III.  Communications from the Chair - The chair said that the Campus 
Journal will include a notice that everyone now should be using the 
1998/99 parking permits.  John Miller is our new faculty representative 
on the Parking Appeals Board.  The Faculty Senate's Library Committee 
will take a tour of the new library.  If faculty have any concerns or 
questions about the library, they should contact Robert Stibler, the 
chair of that committee.  The library dedication will be at 1:30 on 
October 1 in the Murkland Hall courtyard.  A faculty advisory committee 
on enrollment management is being set up.  A committee from the Faculty 
Senate is meeting with the provost to suggest a mechanism to minimize 
negative academic impacts from competition between colleges resulting 
from the implementation of responsibility-centered management, e.g. 
teaching courses which would more appropriately be taught in another 
college or adjusting credit hours to increase revenues.  This committee 
will include the Agenda Committee members and the chairs of the Faculty 
Senate's Academic Affairs Committee and Finance and Administration 
Committee.

John Crosier will speak to the Faculty Senate on November 9 in the 1925 
room of the Alumni Center.  He is president of the Business and Industry 
Association of New Hampshire and will provide an outside perspective and 
discuss ways to facilitate relations with the business community.  In 
addition to the Faculty Senators, certain members of the university 
community but not the press will be invited to the meeting.  There will 
be a reception following the meeting.

The distinguished alumni event has been scheduled for February 7, 8 and 
9, in order to recognize distinguished alumni, publicize the work of the 
faculty and educate students and the public.  The three alumni 
participating this year will be nationally-known author Alice McDermott, 
Dr. Bruce Watson who is the Institute Professor of Science at Rensselaer 
Polytechnic Institute, and Dr. Richard Linnehan who is an astronaut and 
doctor of veterinary medicine.

IV. Minutes - The minutes of the September 14 Faculty Senate meeting were 
unanimously approved with amendments to change one section to refer to 
"about 1,250 fewer students apply", rather than admitted, and add 
sentences saying that some senators had expressed concern about the 
Agenda Committee's role in the budget process and that the president had 
responded to a question about her role in the negotiation process by 
saying that the negotiation process is one in which the president has no 
direct role and that fair labor practices limit what she can say to 
faculty about issues under negotiation.  She added that she was 
disappointed about the impasse.

V.  Budget - The UNH budget is a smaller portion of the USNH budget now 
than it was eleven years ago, from 72.7% in 1987 to 70.9% in 1998.  The 
annual grown rate in UNH revenue has been 6.9% since 1987, whereas the 
system's annual growth rate of revenue has been 7.2%.  The university's 
general fund percentage from the state has gone down from 37.2% to 29.1%, 
and its reliance on tuition and fees has gone up from 49.4% to 60.8%.  
Auxiliary funds are ancillary activities such as dining services, 
recreation, and the New England Center.  Internally designated funds are 
those funds which have been restricted by a decision within the 
university, with such a decision being theoretically changeable by the 
university.  The university's general fund revenues have had an annual 
growth rate of 6.1% since 1987, but the expenses have risen by 6.4% 
annually.  In terms of UNH general fund expenses, institutional support 
from 1987 to 1998 has decreased by more than half, as a percent of the 
whole general fund, from 13% to 6.1%; and financial aid has taken a 
comparable rise, from 5.9% to 13%.  Expenditures for instruction (support 
to the academic departments) have increased a little, from 40.0% to 40.8% 
of UNH general fund expenses.  Support of the system is up from 3.6% to 
4.9% of the UNH general fund expenses, and UNH now contributes about 
eight million dollars annually to the system.  The Vice President for 
Finance and Administration is meeting to discuss this issue.  When the 
higher education price index is taken into account, state appropriations 
per student have lost ground.

In future budgets, the cost of financial aid will be shown as an offset 
to revenue rather than as an expense.  The VPFA will check on whether 
non-tenure-track faculty have increased more than tenure-track faculty or 
vice versa.  The unfunded liability for future post-retirement benefits 
are viewed in different ways by the system and the university budget 
planners.  Since no new people can enroll in this program, it will 
eventually disappear; and since the university can now pay for it from 
the current benefits program, the VPFA feels comfortable with her budget 
view in this regard.  The only difference between the "as audited view" 
and her "budget view" is in where the prior-year fund balance is listed.  
The bottom lines are the same.  A new item is the establishment of an EOS 
reserve of $954,000, and so those funds will no longer wash through the 
carry-forward section of the budget.  A professor asked why there was a 
half million dollar increase in our contribution to the system from FY 
1997 to 1998.  Academic departments were asked to decrease funding, but 
the system funding increased.  The VPFA will provide a further breakdown 
of those system funds when she comes to the next senate meeting.

There has usually been about $3.7 million in carry forwards to the 
following year.  If the EOS reserve, which is a new category this year, 
were added to the 1998 carry forward, that would be $2.3 million this 
year.  A faculty member asked how fast we depreciate computers, and the 
VPFA will return with that information at the senate's next meeting.  
Although on 6/30/98 UNH had a fund balance of $315.8 million, only $50.5 
million of that is expendable.  Quasi endowments are funds which UNH has 
decided to restrict, such as for endowed chairs or library support.  
Campus reserves should be 5% or eight million dollars but are actually 
only three million dollars.  $6.5 million listed as plant fund balances 
for construction in progress are for Morse Hall and the Dimond Library.

This year's  budget was balanced by the use of $3.2 million in one-time 
funds.  There is a $4.5 million deficit for next year which is being 
dealt with now.  The university was able to recover a $1.7 million error 
in the calculation of the fringe benefits which UNH had to send to the 
system.  A professor asked why this university is having an enrollment 
problem when other universities are not.  A projection had been made 
based on a bulge in the high-school graduation rates, and also other 
states have increased their financial aid packages.  Changes are being 
made now in enrollment management at UNH.  A faculty member in the 
sciences said that we compete with other schools which have much more 
modern equipment than we do.  The vice president for finance and 
administration asked that senators send any additional questions or 
concerns to her on email at ccorvey@christa.unh.edu.  She will return to 
the senate at its next meeting, to discuss responsibility-centered 
management.

VI.  Committees - Chairs have been elected for all the Faculty Senate 
standing committees, except for the Research and Public Service Committee 
due to illness.  Deb Winslow has been elected chair of the Faculty 
Senate's Academic Affairs Committee and has therefore resigned from the 
Agenda Committee.  A motion was made, seconded and passed unanimously 
that Don Chandler become the new member of the Agenda Committee.

VII.  Open Mike - A web site for responsibility-centered management may 
be reviewed at  www.unh.edu/rcm, and there is also an article on the 
subject in the Campus Journal.  A web page for the Faculty Senate is now 
being created.  A professor thanked the vice president for finance and 
administration for her presentation and asked that in the future more 
time for discussion be allowed at the end of the presentation.  The 
meeting was adjourned.


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