MINUTE OF THE REGULAR MEETING
of the
BOARD OF REGENTS OF THE UNIVERSITY OF WISCONSIN SYSTEM
Madison, Wisconsin
Held in Room 1820 Van Hise Hall
Friday November 6, 1992
9:00 a.m.
President Steil presiding
PRESENT: Regents Barry, Davis, Dreyfus, Gelatt, Grover, Hempel, Hirsch,
Krutsch, Lubar, Lyon, Nicholas, Schilling, and Steil
ABSENT: Regents Budzinski, Flores, Grebe, and Gundersen
Approval of Minutes
Upon motion by Regent Krutsch, seconded by Regent Hirsch, the minutes of
the meeting of the Board of Regents, held on October 9, 1992, were approved as
distributed.
REPORT TO THE PRESIDENT OF THE BOARD
Report of the council of Trustees of the UW Hospital and Clinics
Regent Lubar reported on the November 5, 1992 meeting of the Council,
which included consideration of the proposal for restructuring of the UW
Hospital and Clinics. Following discussion of the membership and appointment
process for various committees of the public authority governing the board,
the Council approved the recommendation of the Regent Committee appointed to
study the restructuring proposal.
The board, as redrawn by the Regent Committee, would consist of 17
members, rather than 22 members under the original proposal. Changes included
addition of the president of the university medical staff, 3 UW System Regents
(compared 1 under the first proposal) and a total of 7 public appointees
(compared with 12 under the original proposal). In addition, the Council
approved a separate motion adding the UW-Madison Chancellor to the governing
board's nominating committee.
The Council then adopted the October 26, 1992, revised proposal for
restructuring, as presented by Dr. Jay Noren, Vice Chancellor for Health
Sciences. Revisions to the August 24 working draft served to clarify the
proposal by providing a clear statement that the Board of Regents appoints
at-large hospital authority board members;providing eligibility for board
membership to hospital and tenure-track faculty; providing a clear statement
that any GPR appropriations for education related to the hospital; and
providing a statement that current union representation will be guaranteed for
at least 24 months (compared to 12 months in the original working draft).
In addition, the revised proposal incorporated several changes suggested
by the Attorney General's office regarding board composition and its
relationship to the Board of Regents. These included suggestions that the
regents have authority to approve the hospital budget in order to assure the
public character of the entity and appropriate employment law applicability
and to retain state liability coverage and sovereign immunity.
In other business, the council approved a proposal to increase to $9.6
million the total project cost of the UW Hospital Sports Medicine and Spine
Center to be constructed in the UW Research Park. The increase from the
project's original $7.6 million project estimate came following completion of
architect plans which include provisions to allow future building expansion
and addition of a third floor, if necessary. Additional funds will be
provided by a combination of $1.2 million in hospital program revenue and
$691,000 in bonding.
The Council also heard from Superintendent Gordon Derzon, who reported
mixed patient volumes for the first four months of the fiscal year. Trends
indicate a possible weakening on in-patient activity compared with previous
years, but out-patient activity continues to increase.
Net income for the first quarter is $1.5 million above budget as result
of expenses which are under budget by 1.7 percent. Mr. Derzon also noted the
hospital's fiscal department had made progress in its collection efforts and
praised the recent improvement in the hospital's asset management program,
which has resulted in a reduction of $1.3 million in inventories from the
previous year. Further gains are expected as the program is implemented
throughout the hospital.
Finally, the Council heard from Dr. Paul Carbone, Director of the
University of Wisconsin Comprehensive Cancer Center , who described the
Wisconsin Prevention Center, a coalition of Medical School, Hospital, and
Cancer Center faculty and departments to address key issues of disease
prevention. The Center will focus its attention on prevention across
disciplines and disease types, including cancer, eye disease, and heart
disease. Dr. Carbone said the new prevention center is currently recruiting a
director and that additional resources are being sought for program planning
and development and for clinical facilities and operations.
Legislative Report
A written report on legislative matters was provided.
Appreciation for Budget Efforts
On behalf of the Board of Regents, Regent President Steil expressed
appreciation to Vice President for Business and Finance Ray Marnocha and
Associate Vice President for Budget Planning Kathleen Sell, along with their
staffs, for the excellent manner in which the biennial budget proposal was
prepared and presented.
REPORT OF THE PRESIDENT OF THE SYSTEM
Approval of Nonpersonnel Actions
Presenting Resolution 6252 President Lyall noted that the list of
nonpersonnel actions included a contract with the law firm of Whyte and
Hirschboeck for instructional services to the Uw-Madison Law School.
Upon motion by Regent Gelatt, seconded by Regent Schilling, the
following resolution was adopted unanimously:
Resolution 6252: That the report of nonpersonnel actions by the
administrative officers to the Board of Regents and
informational items reported for the record (copy on
file with the papers of this meeting) be received for
the record; and that actions included in the report be
approved, ratified and confirmed.
Systemwide Video Conferences
President Lyall reported on the first video-conference of the academic
year, held on October 27,1992, with all UW System institutions participating.
James Morgan, Executive Director of the Wisconsin Taxpayers Alliance,
presented and over view of the state economic picture; Regent Emeritus Milton
Neshek discussed the recommendations of the Governor's Commission on UW System
Compensation; and President Lyall outlined the 1993-95 budget request and
emphasized the importance of maintaining the partnership that has fostered a
first-class public university system in this state. Participants at each site
then had the opportunity to call in questions. These video conferences,
President Lyall commented are an effective way to reach constituents with
important information about the UW System.
Exceptional Grantsmanship
President Lyall pointed out that more than $35 million in gifts, grants,
and contracts had been raised in the past month, representing a total of $242
million for the year to date--a nine percent increase over a year ago. This
is an extraordinary achievement, she commented, because, first, these private
funds provide the margin of excellence for many programs and students by
paying for research and training opportunities for undergraduate and graduate
students; by purchasing state-of-the-art laboratory and teaching equipment not
affordable from state funds; and by supporting professional travel for faculty
and students to collect data, do field work, and report their findings at
professional meetings and to groups of interested practitioners in business,
agriculture, and the public sector.
Second, these funds have risen nine percent in a year when the general
economy makes such fund raising exceedingly competitive. Not only are
individual private donors more pressed but foundations and government agencies
are awarding their research funds through tougher competitions and tighter
guidelines. To compete successfully, faculty must be alert, more creative in
devising efficient means of investigation, and more persistent in spending
evenings and weekends writing proposals. In the UW System, where faculty are
exceptionally successful in obtaining grants, only one in five proposals is
ultimately funded. Thus, a nine percent increase represents untold hours of
thoughtful work and disappointments along the way.
Third, while UW-Madison generates most of the research funds, every UW
System institution has increased its fund raising. For example, UW-Stout
received a gift of $1.5 million for a Center for the Study of the use and
Application of Technology in the Classroom; the UW Centers received an Office
of Education award of $.5 million to set up a modern computerized student
information system; UW Superior received $300,000 for marine studies at the
Great Lakes Research Center; and UW-Stevens Point received $125,000 from the
Vallier Foundation to support a distinguished professor in the College of
Natural Resources. Stating that it is the initiative and energy of
chancellors and faculty that secures the margin of excellence for students and
programs, President Lyall commended the efforts and success of these people
without whom the UW System would be much poorer both in spirit and in dollars.
Faculty Teaching Load Audit
President Lyall reported that the Joint Audit Committee voted to request
an audit of UW-System faculty teaching assignments. She had written a letter
to the members of the Committee, noting that the UW System welcomes the audit
and urging them to consider including the full range of faculty
responsibilities, not just instructional duties, in the scope of the
investigation. She noted that the measurement of faculty work assignments
goes far beyond what is covered by data collection and encompasses vital
policy questions affecting ability to change and develop the curriculum and
teaching methods. It is known from educational research that students learn
best through smaller, more personalized learning experiences and hands-ln
opportunities. One question is how this evolution in faculty practice can be
expanded. Given that the contents of courses need to be updated frequently to
encompass new knowledge, another question is how this responsibility should be
reflected in the work load measurements. Different UW System institutions
have differently basic mission, she noted, and each must compete for faculty
in a highly competitive national labor market that reflects peer practices.
There is also a question as to how to fit the balance among teaching, research
and outreach assignments to the mission of each institution and still assure
the ability to compete effectively to recruit and retain first-rate faculty.
Inviting the perspective of the Legislative Audit Bureau on these
matters, she stated that defining faculty work accurately is exceptionally
important to determining the kinds of public universities that will exist in
the future.
REPORT OF THE PHYSICAL PLANNING AND DEVELOPMENT COMMITTEE
The Committee's report was presented by Regent Dreyfus, Chair.
Consent Agenda Items
Presenting Resolutions 6253-6256, which had been approved unanimously by
the Physical Planning and Development Committee, Regent Dreyfus moved their
adoption by the Board of Regents as consent agenda items, and the motion
seconded by Regent Barry.
In response to a question by Regent Gelatt abut Resolution 6254, Vice
President Brown explained that the basement area of the UW-Stout Student
Center had been part of the original design but was not completed earlier due
to lack of funding.
Put to the vote, Resolutions 6253-6256 were adopted unanimously.
UW-Stevens Point: Approval of 1992 campus Development Plan
Resolution 6253: That, upon the recommendation of the UW-Stevens
Point Chancellor and the President of the
University of Wisconsin System, the 1992 Campus
Development Plan and documenting physical
facilities and campus boundaries be approved.
UW-Stout: Approval of the Design Report and Authorization to Construct
Memorial Student Center Completion Project
Resolution 6254: That, upon the recommendation of the UW-Stout
Chancellor and the President of the University of
Wisconsin System, the Design Report be approved and
authority granted to construct the Memorial Student
Center Completion project, at an estimate cost of
$1,171,000 ($1,015,600 Program Revenue Borrowing and
$155,400 Program Revenues).
UW-Superior: Authorization to Construct a Steam Line Repair Project
Resolution 6255: That, upon the recommendation to the UW-Superior
Chancellor and the President of the University of
Wisconsin System, authority be granted to construct a
Steam Distribution/Condensate Return Line Replacement
project, at a cost of $242,000, using General Fund
Supported Borrowing - Utilities Repair and Renovation
Funds.
Acceptance of Report on Solid Waste Experiment Centers
Resolution 6256: That, upon the recommendation of the President of the
University of Wisconsin System, the Report on Solid
Waste Experiment Centers, required by Section 36.25
(3m)(e), Wisconsin Statutes, be accepted for
transmittal to State Officials.
Campaign for Wisconsin
Regent Dreyfus, Chair of the Physical Planning and Development
Committee, explained that for two months the Committee has been discussing and
reporting on funding policies for building projects. He introduced Mr. Robert
Froelke, national chair of UW-Madison's "Campaign for Wisconsin", which has
raised $336 million of its $400 million fund drive.
Stating that he is not a professional fund raiser, Mr. Froelke said
that, in addition to his raising of funds for some private groups, he and
Chancellor Shalala have raised 83 percent of their goal in less than two years
of this three-year campaign. Every year, he said, the Legislature allots more
dollars to UW-Madison, but every year it is a smaller percentage of the total
budget. This necessitates the raising of funds from private sources--
primarily former graduates--in order to maintain the quality of the
institution.
Donors believe the private sector should not have to raise funds for
state buildings because their taxes already contribute to this purpose. They
traditionally prefer to strengthen and enhance well-established programs,
rather than invest in facilities. Some also believe that this public
institution is infringing on the territory of private institutions in fund
raising. Donors send the message that the state should build and maintain
buildings. They want to give their money to enhancing the university over and
above the basic minimum that is the obligation of the taxpayers of the state.
He concluded by requesting that the Board of Regents urge the
Legislature not to make fund raising more difficult by requiring private
funding of facilities.
Regent Schilling expressed gratitude to Mr. Froelke and Chancellor
Shalala for their excellent work. He suggested that Mr. Froelke's insights be
shared with the State Building Commission.
President Steil also expressed his and the board's gratitude for Mr.
Froelke's work in behalf of the university.
Funding of University Facilities Capital Costs
Presenting Resolution 6257, which has been unanimously approved by the
Committee, Regent Dreyfus noted that this reaffirmation of current policy o
funding of facilities capital costs does not imply that there will be full GPR
funding of child-care facilities without further consideration. The plan is
appropriate GPR funding subsidy for such operations.
Upon motion by Regent Dreyfus, seconded by Regent Barry, the following
resolution was adopted unanimously by the Board of Regents:
Resolution 6257: Whereas, it has been the long-held position of the
Board of Regents of the University of Wisconsin System
that General Purpose Revenue is the prescribed source
for funds for facilities needed in support of the
academic mission or the University of Wisconsin System
and,
Whereas, this position has conformed to the historic
attitude of the Executive and Legislative branches of
the State of Wisconsin toward its responsibility and
obligation to meet the educational needs of its
citizens; and
Whereas, documented evidence affirms that
philanthropic organizations and individual donors also
consider the taxes they pay provide the means for the
state to meet its obligation to provide for the
programmatic and facilities needs of their public
educational institutions and prefer to strengthen and
enhance well-established programs rather than invest
in facilities; and
Whereas, it is recognized that GPR resources will be
very limited in the 1992-95 biennium so non-GPR
funding sources will be explored and incorporated into
University of Wisconsin System Capital Budget requests
when feasible; with this effort receiving special
emphasis for projects that involve the construction of
additional space for professional programs.
Now, Therefore, Be It Resolved that, the Board of
Regents of the University of Wisconsin System, upon
the recommendation of its Physical Planning and
Development Committee, reaffirms its policy relating
to appropriate funding of university facilities
capital costs, as reflected in Resolution 5500 (Regent
Policy 90-6), adopted May 11, 1990 and amended
December 6, 1991.
Report of the Vice President
Milwaukee Civic Center Campus
The Committee received a status report on the Request for Proposals
process the Committee directed System Administration to undertake for
replacing the Milwaukee Civic Center Campus space. Vice President Brown told
the Committee that a draft RFP was prepared and reviewed by UW-Extension
Chancellor Boyle and UW-Milwaukee Chancellor Schroeder. The RFP was sent out
on October 23 to potential vendors and for advertisement in the Milwaukee
newspapers. Proposals are to be submitted by December 1 and will be reviewed
by a team consisting of representatives from UW-Extension, UW-Milwaukee and
System Administration.
The project will be included in the 1993-95 capital budget
recommendation submitted to the Board of Regents in December. Proposals then
will be fine-tuned and the results of the RFP will be incorporated into the
capital budget at the same time it is considered by the State Building
Commission in March 1993.
Status Report on UW-Green Bay's Child Care Request for Proposals
In a status report on UW-Green Bay's Child Care Center Request for
Proposals (RFP), the Committee was advised that three proposals were received
and two finalists were selected. During the month of October, System
proposals and conducted site visits of facilities operated by the proposers.
As a result, the evaluation team concluded that additional information was
needed for clarification. The two finalists were sent additional questions
with responses due on October 30. A final recommendation is expected in early
November. If a favorable response is identified, it is anticipated that a
Notice of Intent to Award a Contract, contingent upon Regent approval, would
be sent to the three proposers. Upon completion of the notice period, a
recommendation for award, along with all of the particulars of the proposal,
will be brought to the December Board meeting for action. Regents will
reserve the right to withhold their approval if they determine the
recommendation is not acceptable. If the contract is approved by the Board of
Regents in December, it is anticipated that a new center could be open by
September 1993.
Report on Final Buy-out of UW-Parkside Student Housing and Resolution on
Facilities Constructed by Private Sector with Expectation of University
Ownership
The Physical Planning and Development Committee was advised for State
Building Commission action on October 21, 1992, to allow student housing
ownership transfer from the UW-Parkside Benevolent Foundation to the Board of
Regents. This enables refinancing the debt at today's lower interest cost,
with a saving of about $1.2 million over the 20-year term of the new bonds.
Regent Dreyfus stated satisfaction that this transfer not only prevented a
default on the bonds, but also resulted in a significant cost savings. In
approving the refinancing of the debt, the Commission asked the Board of
Regents to adopt a resolution to avoid any recurrence of a problem of this
nature and to insure that facilities constructed on behalf of the System do
not become liabilities.
It was moved by Regent Dreyfus and seconded by Regent Barry that the
following resolution, which was unanimously approved by the Committee, be
adopted by the Board of Regents:
That, to insure that facilities constructed by the
private sector with an expectation of University
ownership do not create extraordinary liabilities for
the University System or the State, the following
parameters reflect the consensus of the Board of
Regents:
(1) The Board of Regents reaffirms the positions
stated in Policy 90-6:
A. Such projects should not be initiated
without an opportunity being provided for
the Regents to determine the
appropriateness of the proposed funds
and/or project(s) to System needs.
b. The need for a project that also requires
a GPR contribution, or a project that
would otherwise utilize GPR as a
prescribed funding source, should be
evidenced by its inclusion in long-range
campus plans that reflect overall needs.
(2) Consistent with Sec. 36.29(7), Wisconsin
Statutes, all construction on behalf of the
university system shall be subject to prior
approval of the Building Commission.
(3) Construction of such facilities shall not begin
without an opportunity being afforded to the
University System and the Department of
Administration to review and comment on plans
and specifications. Review shall take into
consideration initial, ongoing and long-term
costs.
(4) To assure that the facilities are constructed
according to the plans and specifications and
that relevant comments made by System
Administration and/or the Department of
Administration during the review process are
incorporated, the Department for Administration
shall be encouraged to provide supervision of
construction as allowed by Sec. 16.85(12), Wis.
Stats.
Regent Gelatt raised a question about the relationship of this
resolution to the UW Hospital and Clinics restructuring proposal which would
provide for building to be authorized by the public authority without state
oversight.
With the consent of Regent Barry, Regent Dreyfus withdrew the motion
with the understanding that the matter would be returned to the Board at the
December meeting, in order to allow time for an answer to be provided to the
question that had been raised.
REPORT OF THE BUSINESS AND FINANCE COMMITTEE
Regent Gelatt, Chair reported for the Committee.
Consent Agenda Items
Presenting Resolutions 6258 to 6260, which had been approved unanimously
by the Committee, Regent Gelatt moved their adoption by the Board of Regents
as consent agenda items. The motion was seconded by Regent Lubar and carried
with Regent Davis abstaining on Resolution 6258.
Approval of Gifts, Grants and Contracts
Resolution 6258: That, upon the recommendation of the President of the
University System, the gifts, grants and contracts
presented at this meeting (copy on file with the
papers of this meeting) be accepted, approved,
ratified and confirmed; and that where signature
authority has not been previously delegated,
appropriate officers be authorized to sign agreements.
American Football Coaches Retirement Trust
Resolution 6259: That, upon the recommendation of the President of the
University for Wisconsin System the Board for Regents
approves, if authorized by an institution's
Chancellor, participation of football coaches in the
American Football Coaches Retirement Trust.
Trust Funds Investment Guidelines
Resolution 6260: That, upon the recommendation for the President of the
University of Wisconsin System, revisions to the
Investment Objectives and Guidelines for the Principal
Fund dated 11/6/92 be approved.
1993-95 Biennial Operating Budget
Reporting on President Lyall's presentation of the 1993-95 Biennial
Operating Budget to the Board for Regents, Regent Gelatt noted that the
biennial budget proposal focuses on the key mission of undergraduate education
and on the Wisconsin Idea of extending the resources of the university to help
the state. It is the lowest GPR/fee request if four biennia.
New initiatives include improving undergraduate education systemwide,
research and public service programs to meet the needs of the state, and
urgent infrastructure needs in environmental compliance and information
technology. Statutory language requests include language needed to implement
the unified budget, management flexibility items to increase efficiency and
save costs, including the removal of the cap on the Medical School tuition and
other policy initiatives relating to the academic calendar and health
coverage, as well as technical and corrective language.
The compensation request follows the advice of the Governor's
Compensation Commission which recommended using market analyses as the
principal indicator and examining multiple indicators, such as the state's
fiscal capacity. This analysis led to recommending a five percent
unclassified compensation increase to be distributed primarily on merit, with
Regent flexibility to award a portion across the board.
Upon motion by Regent Gelatt, seconded by Regent Davis, the following
resolution was adopted by the Board of Regents, with Regent Grover voting in
opposition.
Resolution 6261: That upon recommendation of the President of the
University of Wisconsin System:
the operating budget request increases (over a total
all-funds base of $2,315,607,400) for Program Requests
Cost to Continue, Technical Items and other Program
Revenue funded items be approved for submission to the
Governor, Department of Administration, and
Legislature:
Budget Category Biennial Amount
GPR $61,143,600
Academic Fees/Tuition $28,941,000
Subtotal GPR/Fees $90,084,600
Other Program Revenue 240,885,700
TOTAL BIENNIAL INCREASE $330,970,300
which would provide for a total 1993-95 two-year
budget level of $4,962,185,100 (excluding compensation
increases).
1993-95 Faculty and Academic Staff Compensation Request
Upon motion by Regent Gelatt, seconded by Regent Davis, Resolution 6262
was adopted by the Board of Regents, with Regent Hempel, Regent Hirsch, and
Regent Nicholas voting in opposition.
Resolution 6262 : That, upon recommendation of the President of the
University of Wisconsin System, the Board of Regents
endorses the attached request to the Secretaries of
the Department of Administration and the Department of
Employment Relations for a 1993-95 competitive
compensation plan for faculty and academic staff and
approves the following recommendation:
A compensation plan of five percent each year of the
1993-95 biennium, in order to maintain the quality of
faculty and academic staff over the next two years.
Moreover, the Board of Regents requests that it be
allowed to increase the Category A academic staff
salary ranges by the full 5% compensation adjustment
each year of the biennium.
Regent Nicholas stated his strong support for maintaining high quality
faculty at competitive pay levels. His suggestion at the previous day's
meeting to lower proposed salary increases by one percentage point was not
intended to pit students against faculty, but was intended as a means of
providing for a lower tuition increase while, at the same time, offering a
reasonable raise for faculty and staff.
97.5 - 103.7 Percent Exercise
Upon motion by Regent Gelatt, seconded by Regent Davis, the following
resolution was adopted by the Board of Regents, with Regents Barry and Hirsch
voting in opposition.
Resolution 6263: That, upon the recommendation of the President of the
President of the University of Wisconsin System, the
report entitled "Supplementary Materials, 1993-95
Biennial Budget, 97.5- 103.7% of Base Budget Exercise"
be accepted by the Board of Regents for transmittal to
the Department of Administration as directed by
memorandum dated June 12, 1992 from the State Budget
Director, Department of Administration.
Partially Unified Budget
Presenting Resolution 6264, Regent Gelatt emphasized the additional
effort and accountability on the part of the Board of Regents under a
partially unified budget. He stated his conviction that adopting this
resolution is one of the most significant steps the Board could take to
enhance the effectiveness of the UW System and ensure its quality into the
21st century.
It was moved by Regent Gelatt and seconded by Regent Davis that the
following resolution be adopted by the Board of Regents:
Resolution 6264: That the Board of Regents forwards the statutory
language to implement a partially-unified budget to
the Department of Administration as directed by Regent
Resolution 6198 which adopted the report of the
Governor's Commission on University of Wisconsin
System Compensation, including recommendation 2 which
stated "The UW System operating budget request and
appropriation process should be amended to `unify' at
least parts of the UW System operating budget." While
the UW System 1993-95 biennial operating budget is
submitted in both its regular format and in this
partially-unified format, the Board of Regents urges
the Governor and Legislature to evaluate and select
the partially-unified format for its own action on the
UW System request.
Regent Lyon commented that the partially unified budget will be highly
beneficial to effective management of the UW System and will place greater
responsibility on the Board of Regents. Noting that past requests for
management flexibility have tended to be piecemeal and to become lost in the
budget process, he pointed out that the partially unified budget is a
comprehensive and cohesive proposal deserving of high priority. With help
from Regents and staff, he hoped the proposal would be kept highly visible
throughout the budget process.
Concurring with Regent Lyon's assessment, Regent Davis commented that
the tough times to come will require substantial changes in the way
institutions are run and resources are allocated. To make these changes, he
noted, the Board will need maximum management flexibility and should be
prepared to advocate vigorously on behalf of the partially unified budget
proposal. With this flexibility, he emphasized, the Board will have to accept
accountability and should move vigorously to develop appropriate indicators of
performance.
In response to a question by Regent Hirsch, President Lyall explained
that a unified budget would request a total amount and identify the types of
uses to which it would by put, without actually specifying an allocation among
uses until action on the annual budget.
Regent Gelatt added that the Regents would see much more detail on
internal allocations than is the case in the current structure.
Regent Dreyfus commented that, given the many high priority issues
facing the Legislature, in a spirit of partnership, the Board should make
clear its willingness to devote extra effort to dealing with UW System issues
thus allowing the Legislature to devote more time to other priorities.
Put to the vote, Resolution 6264 was adopted unanimously.
UW-Hospital and Clinics Restructuring
Regent Gelatt reported that UW-Madison Vice Chancellor for Health
Sciences Jay Noren presented to the Business and Finance Committee the revised
proposal for restructuring University and Hospital Clinics. The revised
proposal differs from the proposal submitted to the Board in September in the
following ways: It includes a clear statement that the Board of Regents
appoints the at-large authority board members; it broadens eligibility for
board membership to hospital faculty as well as to tenure track faculty; it
stipulates that any GPR appropriation for education will be to the university
to support clinical education related to the university; and it promises that
current union representation will be guaranteed for at least 24 months.
In addition, the Attorney General has indicated the need for modest
changes in the hospital authority board and for the Board of Regents to have
authority to approve the budget, in order to assure the public character of
the entity and appropriate employment law applicability, and to retain state
liability coverage and sovereign immunity. Those suggestions were
incorporated in the proposal before the Board.
Regent Lubar reported of the conclusions of a Regent Committee appointed
to study the proposed restructuring and to make recommendations to the Board.
The Committee unanimously recommended approval of the final proposal and
recommended that the hospital authority board should consist of 17 members--10
university representatives, including 3 Regents, and 7 public at-large
members.
It was moved by Regent Gelatt and seconded by Regent Krutsch that the
following resolution be adopted by the Board of Regents:
Resolution 6265: That, upon the recommendation of the President of the
University of Wisconsin System, and the Chancellor of
the University of Wisconsin-Madison, the Board of
Regents approves the October 26, 1992, Proposal to
Establish a Public Authority to Operate University of
Wisconsin Hospital and Clinics, as amended by the
Regent Committee to Study Restructuring Proposal for
UW Hospital and Clinics, and directs System
Administration to forward it to the Governor with the
University of Wisconsin System biennial budget
request, further, that all statutory language
necessary to implement such proposal be drafted with
assistance of the Department of Justice and the
Legislative Reference Bureau and be submitted to the
Board of Regents for approval at a later date.
In response to a question by Regent Davis, Chancellor Shalala explained
that a new personnel system would be established for the hospital, which would
involve a transition period for represented and non-represented personnel.
Regent Davis asked if employees would be able to remain in the pension system,
and Chancellor Shalala replied in the affirmative.
Regent Lubar reported that Regents had inquired about the public
authority's bonding capability and about the requirement in the proposal for
approval of the Attorney General and the Governor in order for the hospital
authority to obtain special counsel.
Chancellor Shalala replied that the provision concerning special counsel
was included at the recommendation of the Attorney General's office as a means
of defining the authority's status as a public entity.
Regent Schilling pointed out that other public authorities are not
subject to that requirement for appointment of counsel. To require this
procedure of the hospital authority seemed to him unnecessary and cumbersome.
Regent President Steil referred the question to the Committee chaired by
Regent Lubar for review and report at the December meeting.
With regard to bonding authority, Regent Hirsch asked if the Board of
Regents and the state would assume the obligation of debt retirement if debt
service payments could not be met by the hospital authority.
Regent Schilling responded that issuance of revenue bonds means that the
bond holder would be buying the success of the enterprise. If the revenues of
the hospital were not sufficient, the bonds would go into default and would
not be an obligation of the Board of Regents or the state. He suggested that
the Regent Committee consider adding a clear statement that any bonds issued
by the authority would not be the responsibility of the Board of Regents or
the State of Wisconsin, in order to ensure that no future Board of Regents
would view the bonds as its obligation.
Regent President Steil asked the Regent Committee to consider this
matter, along with the special counsel question.
Regent Gelatt asked that the minutes of the meeting indicate that the
Board of Regents is not committed to go beyond its legal requirements in the
future.
Regent Grover stated that he considered the restructuring proposal the
worst idea he had encountered in his many years on the Board. On the one
hand, the Regents were asking for more authority to govern the System, but on
the other hand were preparing to give up authority over the hospital. While
the argument was made that the hospital is supported by fee funding, he noted
that other university services, such as residence halls and student centers
are also fee funded.
Predicting that the proposal would collapse under the weight of
unanswered questions, he commented that problems of delay in building
construction, purchasing and employment areas could be addressed in a much
less drastic manner that detaching the hospital from the university. The
hospital, he commented, is a core part of the university with a mission to
train medical practitioners, do basic research, and serve indigent in the
state as a medical facility of last resort.
The effect of the proposal, in his view, would be to create two classes
of area medical practitioners--those in private practice at private hospitals,
and those at the public authority hospital, who would have the advantages of
liability protection, bonding authority and state retirement benefits, while
still being able to charge whatever the market will bear. In this sense, it
would benefit a class of people at a time when the whole matter of for-profit
medicine has become a highly visible national issue.
Stating that the hospital should remain accountable to the Board of
Regents, he expressed his strong conviction that detaching the institution
from the Board and the university would be contrary to the Wisconsin Idea and
to the best interests of the state. It was his prediction that the
restructuring proposal would not survive scrutiny by the Department of
Administration, the Governor and Legislature.
Regent Lubar responded that the purpose of the proposal is to deliver
better services in a more advanced manner than is possible at present. The
new entity, he said, would be a means to provide better service for patients,
including indigent; to build needed facilities in a reasonable length of time;
and to have needed equipment financed, at reasonable revenue bond rates. The
Board of Regents would continue to have control over the entity through budget
approval authority and appointment of members to the hospital board.
Over the lengthy course of developing the proposal, Regent Lubar noted
there had been a great many public meetings, to bring all constituents and all
interested parties into the process.
Regent Schilling stated his respect for the sincerity of Regent Grover's
position. He understood and shared the concern about how the proposal would
affect indigent care.
In the challenging fiscal environment facing health care providers,
Regent Krutsch replied, the more efficiently the hospital can operate, the
better ability it will have to provide indigent care. Restructuring should
improve the hospital's ability to provide this service. Superintendent Derzon
stated his agreement with that assessment.
Chancellor Shalala noted that the proposed restructuring would not
change the missions of the hospital.
Vice Chancellor Noren added that one to the hospital's unique functions
is to provide the highest level of intensive care. This level, called the
Trauma Life Support Center, has for many years had only twelve beds but needs
twice that number. It has taken six years to move from planning for expansion
to actual construction. In the meantime, needed services could be provided
much more quickly. Throughout the hospital, he said, provision of care to
patients who can't pay is considered an obligation and part of the mission of
the institution. If there were any sense that the public authority structure
would reduce that commitment, he was certain that faculty and staff would not
support the proposal.
In response to a question by Regent Grover about a letter from a union
representative, Chancellor Shalala replied union personnel were present at all
meetings and the representative had a standing invitation to meet with her
personally. Discussions with union leaders and others would continue as the
process proceeds.
Replying to a question by Regent Grover about applicability of public
meeting laws to the proposed entity, Vice Chancellor Noren explained that the
authority would be treated as a state agency with respect to statutes on open
meetings, public records, ethics, legislative audit, political solicitation,
lobbying, use of facilities, and political activities of employees.
Regent Grover cited control of hospital rates as another important
concern.
Regent Hirsch asked if there is a back-up plan to be employed in the
event that the public authority proposal is not favorably received by the
Governor of Legislature.
Chancellor Shalala said she had no reason to believe that the proposal
would not receive a fair hearing. Her conversations with executive and
legislative leaders convinced her that they share the concern that the
hospital have the ability to continue to fulfill its missions in the future.
Regent President Steil urged that great weight be given to the
recommendation of the Regent Committee which had thoroughly studied the
proposal before recommending it to the Board of Regents.
Stating his confidence in the Regent's Committee's work, Regent Barry
viewed the proposal as a responsible means of dealing with realities of
medical care delivery by giving the hospital the tools needed to fulfill its
missions. In that sense, the proposal bears similarities to the Board's own
request for more flexibility in managing the UW System.
Put to the vote, Resolution 6265 was adopted, with Regent Grover voting
in opposition.
UW-Madison/IBM Total Quality Partnership Grant
UW System Total Quality Consultant Sue Rohan, introduced UW-Madison Dean
of Business Andrew Policano to report to the Business and Finance Committee
the UW-Madison/IBM Total Quality Partnership Grant. UW-Madison was chosen by
IBM to receive $950,000 in cash and $150,000 in computer equipment over five
years to accelerate this teaching, use and research of Total Quality
Management (TQM) principles. This project is a joint venture of the School of
Business, College of Engineering, Office of Quality Improvement in the
Chancellor's Office, and the Center for Quality and Productivity Improvement.
UW-Madison was one of nine schools selected from more than 200 applicants in
IBM's total quality university competition.
Governor's Compensation Commission Health Benefits Survey
Executive Assistant Fredi Bove reported to the Committee on the results
of a survey, done at the request of the Governor's Commission on UW
Compensation of recent UW faculty and academic staff hires of the effects of
not receiving employer-provided health benefits during their initial six
months of employment.
Key findings of the survey were: 1) 16 percent of new employees surveyed
went uninsured during the first six months of UW employment, with lower income
employees more likely to be uninsured; and 2) almost half of the respondents
were not aware of the six-month waiting period for employer provided health
coverage at the time they accepted the UW position. A request for statutory
authority to provide employer health benefits for UW staff and faculty
effective the first day of employment is included in the UW biennial budget
request.
Trust Funds - Assets Allocation Ratio
Assistant Trust Officer David Konshak reviewed with the Committee the
mix of stocks and bonds in the endowment. No change was made at this time.
The allocation ration is scheduled to be reviewed again in six months.
Report of the Vice President
Designation of Positions as Classified or Academic Staff
Vice President Marnocha reported on progress in development of a
memorandum of understanding between the Department of Employment Relations and
the UW System regarding the designation of positions as classified or academic
staff. Staff have been appointed by President Lyall and DER Secretary
Litscher to reach agreement regarding the criteria for distinguishing academic
staff from classified positions and to agree upon a process for identifying
the appropriated service designation for administrative and professional
academic staff positions. Both sides are optimistic that a memorandum of
understanding can be reached by the end of the month, which President Lyall
will then present to the chancellors and the academic staff governance bodies
for advice and counsel.
REPORT OF THE EDUCATION COMMITTEE
Regent Davis, Chair, reported for the Committee
Presenting Resolutions 6266 to 6274 which had been unanimously approved
by the Education Committee, Regent Davis moved their adoption by the Board of
Regents as consent agenda items. The motion was seconded by Regent Lubar.
With respect to Resolution 6274, Regent Davis noted that at the
September 1992 meeting the Board had directed implementation of the
recommendations contained in the Summary Report of Strategic Planning in
Business Administration. The Board also directed that Senior Vice President
Portch bring back to the Committee additional options for guidelines #4 and
#18, which dealt with underrepresentation of minorities and women both of the
faculty and in the student body of the business schools. These options were
included in the agenda materials, and Regent Krutsch offered an additional
option that would allow UW System Administration, working with consultants to
determine in a more focused manner which UW institutions would benefit from
options 2, 3, and 6--review by consultants of the climate for women and
minorities, tracking of new hires, and development of a comprehensive
diversity plans. It was agreed in discussion that option 1--to base funding
in part on results in diversity efforts--would be considered automatically
when the question of renewed allocation comes up in 1995.
Regent Krutsch explained that the intent of the option she proposed was
to focus on schools with problems and not to blanket all schools with extra
requirements. She also requested that the Education Committee be informed of
the outside consultant evaluations before any options are implemented, so that
the Regents can consider as a policy matter where it believes problems exist.
It is important, she commented, to distinguish between lack of opportunity or
discrimination, as opposed to lack of proportional representation.
Put to the vote, Resolutions 6266 through 6274 were adopted unanimously
by the Board of Regents.
Approval of Amendments to Faculty Personnel Policies and Procedures UW-
Eau Claire
Resolution 6266: That, upon recommendation of the Chancellor of the
University of Wisconsin-Eau Claire and the President
of the University of Wisconsin System, the revisions
to UWEC 3.05 and UWEC 3.08b, Faculty Personnel Rules,
University of Wisconsin-Eau Claire, be approved.
Approval of Amendments to Faculty Personnel Policies and Procedures UW-
Superior
Resolution 6267: That, upon recommendation of the Chancellor of the
University of Wisconsin-Superior and the President of
the University of Wisconsin System, the board approves
in their entirety the revised Chapters 3, 4, 5 and 6,
Faculty Personnel Rules, University of Wisconsin-
Superior, to substitute for relevant sections of the
UW-Superior document approved by the board, February
11, 1983.
Authorization to Recruit Dean, College of Letters and Science UW-
Whitewater
Resolution 6268: That, upon recommendation of the Chancellor of the
University of Wisconsin-Whitewater and the President
of the University of Wisconsin System, the Chancellor
be authorized to recruit for a Dean, College of
Letters and Science, University of Wisconsin-
Whitewater.
Authorization to Recruit Associate Professor of Professor, Law School
UW- Madison
Resolution 6269: That, upon the recommendation of the Chancellor of the
University of Wisconsin-Madison and the President of
the University of Wisconsin System, the Chancellor be
authorized to recruit for Associate Professor(s) or
Professor(s), Law School, University of Wisconsin-
Madison, at a recommended salary range that exceeds
the Executive Salary Group 6 maximum.
Authorization to Recruit Associate Professor of Professor, Department of
Anatomy, Medical School, UW-Madison
Resolution 6270: That, upon recommendation of the Chancellor of the
University of Wisconsin-Madison and the President of
the University of Wisconsin System, the Chancellor be
authorized to recruit for and Associate Professor or
Professor, Department of Anatomy, Medical School,
University of Wisconsin-Madison, at a recommended
salary range that exceeds the Executive Salary Group 6
maximum.
Authorization to Recruit Professor of a Partially Endowed Chair,
Department of Economics, College of Letters and Science, UW-Madison
Resolution 6271: That, upon recommendation of the Chancellor of the
University of Wisconsin-Madison and the President of
the University of Wisconsin System, the Chancellor be
authorized to recruit for and Associate Professor or
Professor (partially endowed Chair), Department of
Economics, College of Letters and Science, University
of Wisconsin-Madison, at a revised recommended salary
range that exceeds the Executive Salary Group 6
maximum.
Joint Program Review, Master of Industrial and Labor Relations, UW-
Milwaukee
Resolution 6272: That, upon recommendation of the Chancellor of the
University of Wisconsin-Milwaukee and the President of
the University of Wisconsin System,
the Master of Industrial and Labor Relations be
continued for an additional three years, during which
it must satisfy the conditions described in the 1992
joint review;
commencing in the spring semester 1993, the program
will undertake another full-scale joint review with
external consultants;
in the fall of 1994, the program will be resubmitted
as a joint review to the board for final approval.
Joint Program Review B.A./B.S. in Women's Studies, UW-Madison
Resolution 6273: That, upon recommendation of the Chancellor of the
University of Wisconsin-Madison and the President of
the University of Wisconsin System, the B.A./B.S. in
Women's Studies be continued, with the understanding
that the program will be included within UW-Madison's
normal academic evaluation process.
Report on Implementation of Strategic Planning in Business
Administration: Options for Guidelines #4 and #18
Resolution 6274: That, pursuant to Regent Resolution 6214, the Board of
Regents directs UW System to employ the following
options to implement guidelines 4 and 18 of the
recommendations contained in the Summary Report of
Strategic Planning in Business Administration:
Bring in external consultants, jointly chosen by each
institution and the Office of Academic Affairs, to
assess the climate of that institution and to suggest
an overall plan and specific initiatives for that
institution's business school.
Implement an annual plan which would track each new
faculty hire. In addition to the analysis, a
statement concerning current availability of
underrepresented faculty should be prepared annually
based on AACSB statistics.
Require institutions to submit to the Office of
Academic Affairs a comprehensive plan to diversify the
faculty, staff, and student bodies while maintaining
high standards of quality in recruitment and
retention.
UW System Administration, working with consultants,
should, through review of data and other appropriate
methods, determine which UW institutions would benefit
from the actions described above.
Report of the Vice President for Academic Affairs
Advanced Opportunity Program
Vice President Porch informed the Education Committee that the Joint
Committee on Finance has requested additional information on the March 1992
Advanced Opportunity Program Report in three areas. System Administration
will provide that information to the Joint Finance Committee in the near
future.
Administrative Intern
Vice President Porch introduced Administrative intern Dr. Althia
deGraft-Johnson, the Assistant Vice President for Academic Affairs at Mankato
State University. She is a participant in the American Association of State
Colleges and Universities Leadership Program.
Report of the UW Rural and Urban Health Underservice Task Force
Jay Noren, UW-Madison Vice Chancellor for Health Sciences, discussed
with the committee the Report of the UW Rural and Urban Health Underservice
Task Force, which he chaired.
The Task Force was appointed by President Shaw with a broad statewide
representation of 35 members, including health care providers, legislators, UW
faculty members, and community health center representatives.
After fifteen months of deliberation, the Task Force concluded that
there is a need for: increasing student interest in the health professions
generally; changing medical education to include increased educational
experiences in underserved rural and urban areas; recruiting more health care
professionals into areas of family practice; and including the financing and
structure of health care provision to rural and underserved urban areas in
health care training.
He discussed each of the twenty primary recommendations of the Task
Force Report with special emphasis on those that are specifically directed to
the University of Wisconsin.
Regent Krutsch noted that individuals often are more likely to enter
practice in areas where they grew up and that it is important to recruit
future health care professional from rural and underserved areas.
In response to a question by Regent Davis, Vice President Porch noted
that the Office of Academic Affairs will provide the Committee with a follow-
up status report in the spring of 1994.
At 10:50 a.m., the following resolution, moved by Regent Nicholas, was
adopted on a unanimous roll-call vote, with Regent Davis, Dreyfus, Gelatt,
Grover, Hempel, Hirsch, Krutsch, Lubar, Lyon, Nicholas, and Steil (11) voting
in the affirmative. There were no opposing votes and no abstentions.
Following a five- minute recess, the Board convened in closed session.
Resolution 6275: That the Board of Regents recess into closed session
to consider personal histories concerning awarding an
honorary degree at UW-Green Bay, and naming a room
after a person at UW-Madison, as permitted by s.
19.85(1)(f), Wis. Stats.; and to confer with legal
counsel as permitted by s. 19.85(1)(g), Wis. Stats.
CLOSED SESSION ACTIONS
The Board arose from closed session at 11:30 a.m., having adopted the
following resolution.
Honorary Degree, UW-Green Bay
Resolution 6276: That, upon the recommendation of the UW-Green Bay
Chancellor and the President of the University of
Wisconsin System, Henry G. Cisneros be awarded the
Honorary Degree of Doctor of Laws at UW-Green Bay,
subject to acceptance by the nominee.
The following resolution was adopted in closed session at the September
11,1992, meeting. Announcement was not made at that time, pending acceptance
by the nominee:
Honorary Degree, UW-Madison
Resolution 6277: That, upon the recommendation of the UW-Madison
Chancellor and the President of the University of
Wisconsin System, William Morgan be awarded the
Honorary Degree of Doctor of Science at UW-Madison in
December 1992.
The meeting was adjourned at 11:30 a.m.
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