MINUTES OF THE REGULAR MEETING

of the

BOARD OF REGENTS OF THE UNIVERSITY OF WISCONSIN SYSTEM

Madison, Wisconsin

Held in room 1820 Van Hise Hall

Thursday, August 20, 1998

1:00 p.m.

- President Orr presiding -

PRESENT: Regents Barry, Benson, Boyle, Brandes, DeBraska, DeSimone, Gottschalk, Hempel, James, MacNeil, Marcovich, Mohs, Olivieri, Orr, Randall, Smith, and Staszak

ABSENT: None

Approval of Minutes

Upon motion by Regent Boyle, seconded by Regent Staszak, minutes of the meeting of the Board of Regents held on June 5, June 18, and June 30, 1998, were unanimously approved as distributed.

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rEPORT OF THE PRESIDENT OF THE BOARD

Welcome to New Regents

Regent President Orr welcomed to the Board Regent Guy Gottschalk, of Wisconsin Rapids, and regent Jose Olivieri, of Milwaukee. They had been appointed to the Board to succeed Regents Sheldon Lubar and Michael Grebe, respectively.

Report of the Hospital Authority Board

A written report on the July meeting of the Hospital Authority Board was provided to the Regents.

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Report of the Wisconsin Technical College System Board

A written report on the July meeting of the Wisconsin Technical College System Board was provided to the Regents.

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Report of the TEACH Board

A written report on the June meeting of the TEACH Board was provided to the Regents.

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Report of the Educational Communications Board

A written report on the June and August meetings of the Educational Communications Board was provided to the Regents.

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Report of the Higher Educational Aids Board

A written report on the July meeting of the Higher Educational Aids Board was provided to the Regents.

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Congratulations to Regent DeSimone

Regent President Orr congratulated Regent DeSimone, who had been named the recipient of the Equitable Life Assurance Society’s National Honor Agent Award for 1998. The award, which is the highest honor bestowed by the company, was given to Regent DeSimone in recognition of his outstanding career and for his civic and charitable activities in the community.

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REPORT OF THE PRESIDENT OF THE SYSTEM

Introduction of New Chancellors

President Lyall introduced three new Chancellors of UW System institutions: Chancellor Nancy Zimpher, of UW-Milwaukee; Chancellor John Keating, of UW-Parkside, and Chancellor Donald Mash, of UW-Eau Claire.

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Three Authorizations to Recruit

Presenting Resolutions 7736-7738, President Lyall noted that Regent folders contained a modified salary range for the position identified in Resolution 7737.

Upon motion by regent MacNeil, seconded by Regent Boyle, Resolutions 7736, 7737 and 7738 were adopted unanimously by the Board.

UW-Extension: Authorization to recruit: Marketing Manager, Director-Unspecified Learning Innovations Center

Resolution 7736: That, upon recommendation of the Chancellor of the University of Wisconsin-Extension and the President of the University of Wisconsin System, the Chancellor be authorized to recruit for a Marketing Manager, Director-Unspecified, Learning Innovations Center, at a salary that may exceed the Executive Salary Group Six maximum.

UW-Extension: Authorization to recruit: Operations manager, Director-

Unspecified Learning Innovations Center

Resolution 7737: That, upon recommendation of the Chancellor of the University of Wisconsin-Extension and the President of the University of Wisconsin System, the Chancellor be authorized to recruit for an Operations Manager, Director-Unspecified, Learning Innovations Center, at a salary that may exceed the Executive Salary Group Six maximum.

UW-Milwaukee: Authorization to recruit: Named Professor School of Business Administration

Resolution 7738: That, upon recommendation of the Chancellor of the University of Wisconsin-Milwaukee and the President of the University of Wisconsin System, the Chancellor be authorized to recruit for a Professor, School of Business Administration, at a salary that may exceed the Executive Salary Group Six maximum.

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1999-2001 BIENNIAL OPERATING AND CAPITAL BUDGET REQUEST

Introducing presentation of the 1999-2001 biennial operating and capital budget request, Regent President Orr noted that every two years all state agencies are required to submit a biennial budget proposal for consideration by the Governor and, ultimately, the Legislature. The UW System is required to submit its proposal to the Department of Administration by August 31.

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Introduction

Beginning presentation of the budget proposal, President Lyall noted that it reflects more than a year’s thoughtful consideration by the Board of key educational challenges, the needs of the state, and the competitive environment in which a first-rate public university system must be sustained.

Noting that, Regent committees reviewed 16 presentations on a wide range of university needs and students had presented their priorities to the Business and Finance Committee. the President commented that the request is stronger and more student-oriented because of their suggestions. In June the Board directed drafting of a lean biennial budget request, narrowly focused on only six of the 16 priority areas.

Wisconsin taxpayers already have a large stake in the UW System, the President said, citing the necessity to work diligently to ensure that these resources are used as effectively as possible. One indicator is that the UW System educates over 12,600 more FTE students than peer competitors do with the same resource base.

It is recognized that this will be another fiscally tight biennium for the state, President Lyall said, as earlier commitments to K-12 funding, corrections, and tax reduction compete for state resources. The UW System also is keenly aware of its stewardship responsibilities, to sustain educational opportunity and quality for the students of today and tomorrow. "Past investments in the UW System, made by taxpayers, students, alumni, and donors," she stated, "have built a priceless asset for this state – nothing will be more important to its future economic success."

Therefore, the President continued, this request focuses on several themes: building on the existing investment; upgrading the basic infrastructure of the university, both academic and physical; and strengthening the state’s competitive position, nationally and globally.

The Challenge of Change

In the race for global economic leadership, President Lyall said, "we cannot take a time out. New technology, and the globalization of our state’s economy means we cannot stop the clock to catch our breath, even if we’d like to. The same is true of the University of Wisconsin System. We don’t have the luxury of a time out, either. The challenge to keep pace with change is more urgent in education than in almost any other sector of society. What happens to students today in large part determines what changes can happen tomorrow in business, in government and in our civic life." A more immediate payback is an overall economic impact on Wisconsin of nearly $10 for every dollar invested in the University, as documented by Professor Bill Strang in his report: The Economic Impact of the University of Wisconsin System.

The biennial budget proposal, the President said, reflects the challenge of keeping pace and the urgency of staying competitive internationally. It asks citizens, students, employers and donors to join us in investing in a select number of very high-priority areas.

Overview of New Initiatives: Basic Infrastructure

With this budget proposal, the President continued, the UW System seeks to maintain high-quality instruction and research. New instructional technologies will continue to be used to increase access and to make learning more convenient and effective for students. Finally, the budget proposal reiterates the commitment to ensuring that the University serves all people in Wisconsin, regardless of their income, racial or ethnic background, or location.

The budget proposal contains six targeted requests. The first three focus on basic infrastructure: enhanced libraries, expanded instructional technology, and better academic advising for students.

President Lyall first commented on the need to enhance the UW System’s libraries, which represent a priceless asset for the state, including K-12 schools, businesses, government agencies, and the public at large. The budget seeks $12 million in GPR and fees to increase the number of electronic journals and information sources available to library users, to expand existing document delivery services to make better use of collections, and to restore a reasonable acquisitions budget for UW libraries. The UW System has not received funding designated for library acquisitions in 10 years.

Second, the budget requests the second step in the instructional technology initiative to overcome barriers of time and place of instruction. The Regents’ "Study of the UW System in the 21^st Century" identified instructional and distance technology as a multi-biennial priority. The UW System received valuable support in 1997-99 to connect its institutions to the statewide BadgerNet.

To continue making progress in this area, the budget proposes $28.9 million in GPR and fees to ensure staff support and regular updating of desktop equipment for faculty and staff. Part of this would be used to train and then hire 200 additional student workers in the information technology area, as well as training and retaining 600 current student IT workers. Workers with these skills are scarce, and this program will help the university, as well as future employers when these students graduate and move into the work force. Equally important, this initiative would establish a badly needed, systematic, desktop computer replacement program for faculty and staff at all UW institutions.

Third, the budget seeks $4 million in GPR and fees to help address a persistent concern of students about academic advising. This initiative would provide 35.5 additional advisers Systemwide, who can help students speed time-to-degree and reduce the cost of their college degree by making more efficient academic and career choices.

Overview of New Initiatives: Staying Competitive

President Lyall then outlined the second three initiatives, which are focused on keeping the university and the state competitive, nationally and globally.

First, the budget implementation of Plan 2008, the long-range initiative for diversity in the university and the workforce which was adopted by the Board in May 1998. The budget requests $7 million in GPR and fees to expand pre-college programs, increase financial aid, recruit adult students, establish a UW Business Council on Diversity, and provide more funding for the Institute for Race and Ethnicity at UW-Milwaukee.

Second, the budget addresses the need to ensure that more students are prepared to work in an increasingly global economy. The Wisconsin International Trade Council, (WITCO) issued its final report to the Governor in May. Its findings prompted the UW to seek $11.5 million in GPR and fees to address specific recommendations that call for enhancing the level of international education through out the state. Under this initiative, a thousand needy Wisconsin students would be able to afford either a semester or a year of study abroad. Currently, only 2% of UW System students have such an opportunity. A UW System Institute for Global Policy would be created at UW-Milwaukee, and the existing Center for World Affairs and the Global Economy at UW-Madison would be enhanced. Other WITCO recommendations, chiefly those that concern the international trade and training needs of businesses, would also be addressed.

Finally, the budget seeks $3 million in GPR to build the capacity of local governments by expanding their access UW faculty and research experts. Funds would be used to provide technical expertise to local governments in such areas as land use, zoning, water quality and urban renewal. At a time when new responsibilities are devolving on municipalities, county boards and other local agencies, elected officials and their staffs need the best training and technical assistance available. The UW System should assist, President Lyall noted, in the best tradition of the Wisconsin Idea.

Overview of Institutional Initiatives

President Lyall presented initiative proposed by five UW institutions to address important needs or opportunities: The UW Colleges seeks $1 million to add five regional admissions officers to help increase enrollment and enhance student access; UW-La Crosse seeks $1.6 million to fund its share of the maintenance and operating costs of the consortia Medical Health Science Center; UW-Milwaukee seeks $1 million, to undertake research on important urban environmental health problems; UW-Stout seeks $1.8 million, in order to expand enrollment in its popular Graphic Communications Management program; and UW-Superior seeks $1.2 million, to help it develop electronic portfolios for use in student assessment.

Special Proposal for UW-Madison

It was noted by President Lyall that the budget contains a special proposal for a separate UW-Madison initiative as discussed at the June 1998 meeting of the Business and Finance Committee. Chancellor Ward observed at that time that UW-Madison occupies a unique niche, both in the UW System and in American public higher education. The campus is a major economic driver for Wisconsin, one of the premier research institutions in the country, and the second-leading source of doctoral degrees in the nation.

This was recognized, she noted, by Governor Thompson when he helped meet a critical challenge last year by providing $1.5 million in additional state support to sustain UW-Madison’s national standing in biotechnology.

UW-Madison is the principal source of faculty and staff throughout the UW System, the chief source of technology transfer with the private sector, and the largest UW institution both in enrollment and physical facilities. For all these reasons, President Lyall remarked, the health and future welfare of UW-Madison is vital to the health and future welfare of the state. Nonetheless, at UW-Madison, combined state and tuition support per student has fallen more than $1,900 below the median of Big Ten campuses. In response to that shortfall, UW-Madison has proposed a creative initiative that would match new GPR dollars with private contributions for investments in highly targeted strategic areas, in an effort to secure UW-Madison’s quality into the future as one of the top public universities in the country. Over the next four years a combined GPR/fee investment of $57 million would be leveraged by endowment funding of more than $200 million from private sources.

The new initiatives, along with cost-to-continue items, together represent an average annual budget increase of $43.4 million or an average increase of 3.4% a year.

Requests for compensation increases are made in November and are determined by the Joint Committee on Employment Relations. Compensation increases will have an effect on GPR funding and tuition levels that is not yet known.

Capital Budget: CARE Focuses On Renewal

Turning to the Capital Budget, President Lyall pointed out that it follows the Board’s directive to concentrate on the renovation and renewal of existing facilities. Ten years ago, 80% of capital expenditures went for new facilities; currently 80% are invested in renewal and renovation projects. The reason for this is that more than 40% of UW buildings are between 20 and 40 years old - a critical point in the life of a heavily used building. Problems ignored as a building ages can result in crippled academic programs or expensive demolition projects down the road. Stating that care must be taken so that facilities remain as modern as the UW’s evolving academic programs, President Lyall notes that technology has become a more significant part of all teaching, research, and outreach, as well as the workplace.

The centerpiece of the capital budget for the next two years is called CARE – the Capital Asset Reinvestment Effort (CARE). This program requests $160 million in GPR bonding, to be enumerated by the state in one amount. These funds would be targeted specifically for the repair, renovation and replacement of existing GPR-funded facilities as determined by the Board, subject to final approval by the State Building Commission.

Governor Thompson recently told the Building Commission that it is important to rehabilitate and renovate state buildings in order to be good stewards. The new CARE approach to budgeting, President Lyall said, would enable the Board of Regents to achieve the Governor’s goal for the $5 billions worth of facilities in the UW System.

While renovation and renewal are at the heart of the budget request, President Lyall noted that there is also a need for some new space. Enumeration is sought for three new facilities, whose $25.3 million in GPR funding will be matched by about $9 million in program revenue and gift funds. In all three cases, the need for new space is driven by enrollment and the unique demands of special programs. As part of long-range planning efforts, design funds are proposed for seven projects that will be advanced for construction during the following biennium, 2001-2003.

Finally, the capital request includes fourteen projects and campus renewal efforts financed entirely with $96 million in program revenue and gift funds. Changes in statutory language are sought that would exempt these projects from enumeration if they are funded completely by non-GPR cash so that such projects can move forward more quickly in line with donor expectations.

In summary, approximately $290 million for capital projects is proposed for the coming biennium, including $185 million in GPR projects and $105 million (36 percent of the total) coming from program revenue, gifts and grants.

Turning to the student financial aid, President Lyall noted that Resolution 7741 asks the Governor and the Legislature to continue the practice of the current biennium and increase the Wisconsin Higher Education grant program by the same percentage increases as tuition in 1999-01. WHEG grants play an important role in maintaining affordability and access, at a time when federal aid increasingly takes the form of loans and tax credits.

In conclusion, President Lyall commented that the budget request moves the Wisconsin Idea into the 21^st century, "where the boundaries of the University are indeed the boundaries of the globe. This budget is student-centered, and positions our graduates and the state of Wisconsin to be major players in the global economy."

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Regent President Orr then introduced a number of speakers who were present to address various aspects of the budget.

Michael Snyder, President of the UW-Stevens Point Student Association, spoke on the subject of advising. Quality advising, he said, exists, first of all, when there is a personal connection between a student and an advisor. Second, the advisor is willing to listen to the occupational, as well as academic, goals of the student. Third, the advisor understands when students’ goals change and is there to help plan the route to graduation accordingly. Fourth, the advisor helps the advisees learn so that they can help themselves and other students. Quality advising is needed, he said, first to insure that students register for classes they need to graduate in a timely manner. Secondly, it is important in helping the student develop a connection to the university. Third, the advisor will be there for the student if he or she has an academic problem and will refer the student to appropriate services for any personal problem.

Turning to the question of what must be done to achieve quality advising, Mr. Snyder first identified better training for advisors. Second, he emphasized the need for more professional full-time advisors who are more likely to be fully knowledgeable about courses and requirements than people who do the job on a part-time basis. Third, he urged full funding to put advising initiatives into place at all institutions. Finally, he suggested stipends for peer advisors as a means of making it possible for them to spend more time with other students. In conclusion, he commented that improved advising would result in students who have a strengthened sense of purpose and belonging at the university, students who would take fewer credits, save money, and leave the university feeling that they had been well served.

The next speaker was Roger Axtel of Janesville, retired Vice President of Worldwide Marketing for the Parker Pen Company and Vice Chair of the Wisconsin International Trade Council Task Force, who spoke about the international education component of the budget. Eleven months ago, he explained, Governor Thompson asked WITCO to answer three questions: First, what is currently being done in Wisconsin in regard to international education? Second, what should be done to expand and improve on it? And, third, how should it be done? The Task Force formed by WITCO to answer those questions was headed by Milton Neshek, of the Kikkoman Company in Walworth, who is a former member of the Board of Regents. Seven study committees were created, involving over 130 people. The Task Force’s report to the Governor contained 45 recommendations.

Mr. Axtel highlighted two of those recommendations: One concerning study-abroad programs and the other concerning business sector involvement. As to study abroad programs, Mr. Axtel said it is clear that this is the quickest way to globalize the minds of young people. This year only about 84,000 U.S. students will study abroad, in comparison with 450,000 foreign students studying in this country. Approximately 45 percent of students in Wisconsin’s private colleges study abroad, in comparison to 2-4 percent of UW System students. It is recognized that family finances influence that variance.

Turning to the business sector, Mr. Axtel noted that Wisconsin exports have grown by almost 300% in the last 10 years, thanks to initiatives by Governor Thompson and his administration. Quoting an editorial from the Wisconsin State Journal, which stated that "Wisconsin’s economic future depends upon how well the state, its businesses and its people relate to the rest of the world," Mr. Axtel noted that more and more employers both in Wisconsin and across the nation want globally literate employees. As examples, he cited two Wisconsin companies that now are requiring every new manager to have some language or international cultural business skill. In conclusion, Mr. Axtel emphasized that the Governor had adopted the Task Force report and placed high priority on it. He urged the Board to give it high priority in its budget considerations.

Bob Jokisch, a strategic planner in Learning and Information Technology for System Administration, and Jake Johnson, a student at UW-Oshkosh, majoring in Management Information Systems, spoke to the board about the budget request for instructional technology training for UW students. Noting that the number one IT need at UW institutions is trained IT support staff, Mr. Jokisch explained that, with the growing importance of technology in all areas of higher education and the shortage of IT support staff in Wisconsin and across the nation, there is a need to look for new ways to improve IT support for students using technology in their courses and faculty in integrating technology into the curriculum. Hiring more student workers and providing comprehensive training to new and existing IT student workers will help campuses address IT staffing needs, while providing students with valuable hands-on experience.

To test the feasibility of this approach, the UW System had conducted a pilot project during the summer, bringing together 40 students from 14 institutions for two weeks of intensive training at Madison Area Technical College. Thanking the Wisconsin Technical College System and Madison Area Technical College, Mr. Jokisch said the program was a great success.

Jake Johnson, who participated in the pilot program, spoke in support of continuing and expanding it during the coming biennium. The training he had received had helped extend his knowledge of hardware, office software, and customer satisfaction. The collaboration of students and staff created a melting pot of knowledge which was shared and benefited the entire group. This knowledge can be brought back to the campuses and shared with other IT staff, thus enriching all campuses with new ideas on how to provide computing support to students, faculty and staff. Mr. Johnson noted that the IT training program benefits three groups. First, the students who participate gain valuable knowledge and experience which will assist them in searching for jobs after graduation. Second, students, faculty and staff on the campuses benefit from the additional support the student workers provide. Third, the campus IT units benefit from the additional hours of work provided by the student workers.

Kenneth Frazier, Director of the General Library System at UW-Madison, noted the deep cuts that had been made in UW library collections during the past decade. There had been some constructive results, including increased cooperation among libraries and better organization. Student access to electronic information had been greatly expanded and is available in residence halls as well as in the libraries. However, with the exception of some government-sponsored data, these electronic data bases must be purchased and licensed. While the UW libraries had received no funding increase in 10 years, other universities and even large city libraries have been receiving substantial increases. While electronic information is the wave of the future, Dr. Frazier pointed out that there also is continuing heavy use of books by students and faculty. In 1990, UW-Madison ranked 5^th in book expenditures, but since has dropped to 31^st, and the Law School has dropped to 38^th.

Maggie Brown, President of the UW-Oshkosh Student Association, spoke in support of the requested $15 million in funding for classroom modernization. Basic improvements to classrooms, she commented, "are vitally important to creating a good learning environment". Needed improvements include better lighting, sight lines and seating to allow students to see and understand what is being taught. Noting that graduates are expected to have experience with advanced technologies, she urged that technological capabilities of classrooms be upgraded to allow professors to use new and innovative teaching methods. High quality facilities she said, can motivate students to perform and achieve at high levels.

Leonard Johnson, Vice President, Wisconsin Associated County Extension Committees, Inc., spoke in support of the request for funding to assist local governments. Noting that a significant number of state and federal government responsibilities have devolved to local governments in the past decade, he commented that the state's 25,000 local elected and appointed officials and 120,000 staff professionals need the UW's help to learn to govern more effectively and meet new demands. The proposed budget initiative, he said, will involve all UW institutions in a coordinated network to address emerging issues with the latest in applied research and instruction via direct teaching and distance education.

The Board then heard comments on the budget request by United Council of University of Wisconsin Students. Introducing the presentation, United Council President John Grabel commended the open dialogue and inclusion of student viewpoints in the deliberations on the budget. Almost all concerns presented by United Council had been addressed in the final document. While some concerns remained, he emphasized that students were united with the Regents and the UW System in advocating for making higher education a greater priority in the state of Wisconsin.

Crystal Voigt, United Council’s Academic Affairs Director, urged support for a number of budget initiatives of high priority to students. Commenting first on the importance of good advising, she noted that the budget request seeks to improve advising by providing additional advising staff, improving access to advising information through on-line resources, and making funding available for evaluation of advising services. These will be significant steps, she said, in helping students complete their degrees on time and will also improve student retention and the level of student satisfaction with their experience in the UW System. In addition to what is included in the budget request, she recommended the development of paid peer advisor positions. Other important steps include better training of faculty and staff advisors and availability of career placement centers.

Urging support of the funding requested for Plan 2008, Ms. Voigt identified other priority concerns as increased availability of multicultural resources and space for programming; expanded efforts to recruit faculty, staff and administrators of color; the development of multicultural curriculum and expansion of ethnic studies programs; support for creation of peer mentoring programs; recognition of needs of lesbian, gay, bisexual and transgendered students; and support for students with disabilities.

Turning to the budget request for the UW Colleges, Ms. Voigt said that the Colleges would be made more accessible for many students by proposed initiatives to establish regional outreach and recruitment positions, to make admission and registration easier through improved technology, and to create advising positions to address the needs of adult students. Availability of student services, she added, is an important part of improving accessibility. Noting that transfer issues continue to be a concern to students, she said advising, communication between institutions, and flexibility in accepting course transfer all need to be improved. Other areas of concern not addressed in the budget include campus resources such as women’s centers; lesbian, gay, bisexual and transgendered centers; and campus day care, all of which would make campuses more accessible and comfortable for students.

Stating student support for the library funding request, she noted that lack of funding has forced libraries to reduce their subscriptions and acquisitions, as well as to reduce the number of hours libraries are open and the number of staff available to assist students.

Financial aid is of fundamental importance to students, Ms. Voigt said, noting that over the past 20 years, tuition increases have not been matched by increases in financial aid. Therefore, she stated United Council’s support for the resolution requesting financial aid increases commensurate with tuition increases. Other student concerns include continued funding for the Talent Incentive Program and increased availability of grant-based aid.

Stating that affordability of the UW System is a serious concern, Ms. Voigt commented that proposed tuition increases pose a serious burden for students. "Tuition increases have already stretched the resources of many Wisconsin families. It is important that a public institution be accessible to the public and not price persons of lesser means out of an education." She suggested that the UW System request a tuition freeze, or at a minimum, tuition increases tied to the rate of inflation.

Eric Brakken, Chair of the Associated Students of Madison, spoke in opposition to the differential tuition component of the proposed UW-Madison initiative. He felt the concept of differential tuition is flawed in that it would force institutions into tuition increases by requiring them to increase tuition to offer programs the state does not fund. With campuses increasing tuition with no restrictions and no comparable state support, students would not be able to predict what their tuition would be. In sum, he felt differential tuition would solidify the state’s lack of support and shift more of the burden to an over-taxed student body.

Michelle Diggles, Legislative Affairs Director of United Council, noted that the UW is the engine that drives the state’s economy and has helped Wisconsin avoid the recessions that have affected nearby states. However, she noted, there has been a consistent degeneration in support for the UW, while other states are investing heavily in education. In addition, she said, support for UW funding has been shifting from the state to student tuition. As state support wanes, quality erodes, and at this point the UW System is well below the national average in state funding per FTE student. Calling the situation a crisis, Ms. Diggles commented that access, quality and affordability all are under attack. She urged the Regents to join in carrying the message to the State Legislature and Executive branches that continued under-funding "will destroy the quality of the UW System" and shifting the burden to students will make it "nearly impossible for the sons and daughters of Wisconsin’s families, the backbone of our great state, to attend this institution of academic excellence."

Regent President Orr commended the students for their excellent presentations.

Beginning the Board discussion of the budget proposal, Regent President Orr thanked the staff of System Administration for the efforts they had put into the budget and expressed appreciation to President Lyall and the presenters for their remarks. The proposed budget, he said, maintains the quality of the UW System at a reasonable cost – reasonable for students, their parents, and the state. The proposal is fiscally responsible, and addresses compelling state needs, including a stronger library system, workers who are skilled in the use of technology, an economy that is more diverse in its composition and more global in its outlook, and local governments that are better equipped to serve the demands of a changing society.

All these initiatives, he explained, are grounded in recent long-range Board planning activities, including the Study of the UW System in the 21^st Century and the new diversity effort: Plan 2008. Each initiative, he emphasized, contributes in one or more ways to the present and future strength of the UW System and the State. As such, the proposal reflects the Board’s responsibility "as stewards of this incomparable state resource."

Regent Randall urged the Board to be aggressive and visible in its support of the diversity plan and efforts to increase financial aid for students. The commitment to diversifying students, faculty and staff, he commented, requires targeting resources in the communities where minorities live and work, and where there are resource disparities that impede access to the UW System. The budget request significantly addresses those disparities, he stated, citing the example of pre-college programs which attempt to address the disparity in ACT scores between minority and majority students. The UW has a commitment, he continued, to the business community, to assist in attracting, training and retaining a quality, diversified work force. In that regard, he cited a recent study conducted by UW-Milwaukee on how major corporations in Milwaukee are significantly diversifying their work forces.

With respect to financial aid for students, he emphasized that increasing availability of loans is not enough and that the current balance of loans and grants is weighed too heavily toward loans. This causes students to complete degrees saddled with too much debt and may cause parents to postpone retirement and graduates to demand salaries that do not reflect their beginning status. In conclusion, Regent Randall commented that this budget seeks to meet the UW System’s obligations to diversify its campuses and provide the necessary financial support to obtain a UW degree. The Board and UW System must make its case in a compelling manner in order to win support for the budget.

Regent Barry spoke in support of the proposed Capital Asset Reinvestment Effort for the capital budget. Historically, the state has operated with a system of enumerated projects and "All Agency Funds" for smaller projects, which does not allow planning for a specific amount of money for repair and replacement projects. This request would put the UW in partnership with the Building Commission to provide up-front approval of funding, which would help greatly in planning for the future. Emphasizing the importance of the new process, he remarked that it would benefit students by putting priority where it should be in repair of aging buildings and improving the physical plant. He intended to promote this initiative vigorously with the State administration and Legislature. In conclusion, he noted that other states, such as Minnesota, have made large investments in maintaining and renewing aging physical plants.

Regent Marcovich spoke in favor of the UW-Superior assessment initiative, which he felt had strong potential for the entire UW System. First, it would assist students greatly in marketing themselves in a future in which electronic portfolios will be the resumes of choice. Just as importantly, it will enable the UW to show proof of quality in the learning of the students it graduates and will make the UW a leader in the field of assessment of the quality of education.

Regent DeSimone urged the Board to advocate strongly to the Executive and Legislative branches in support of the importance of adequate funding for higher education.

Regent Mohs spoke in support of the budget request for libraries, noting that it is sad to see the UW as last among its peers with no funding increase in the last ten years. A strong library, he pointed out, attracts top faculty and students. Commenting that the libraries had done all the belt-tightening possible, he said they are now to the point of cutting muscle and bone and that the request for $12 million should be fully funded.

Regent MacNeil commended all involved in the budget process for producing a proposal that was developed with a great amount of thought and input from a wide range of people. She urged support for the advising initiative because of its importance to students – to help them graduate earlier and make better informed decisions. Secondly, she stressed the importance of the international education initiative and commended the collaboration that had gone into this proposal. It will benefit students, she noted, with more foreign language and international business offerings, and with more opportunities for studying abroad. She concurred with what others had said with regard to the need to advocate strongly on behalf of the budget request.

Regent Boyle spoke in support of the instructional technology component of the budget, which will do much to enhance students’ opportunities to learn. Noting that technology is bringing about a revolution in the teaching/learning process, he commented that it is extremely important to remain competitive in this area for the benefit of students while they are in school and to enable graduates to compete in the environment of the future.

Regent Hempel spoke in support of the UW-Madison initiative, which would provide resources for a campus which is the state’s greatest asset. The proposed public/private funding partnership, she commented, is the way to ensure that this asset maintains its stellar status.

Regent Smith pointed out that budget dollars are not simply compounded year after year. Instead, there is a great deal of base reallocation and collaboration among institutions and with other agencies. The budget also makes a significant commitment to private fund raising.

A key element of budgeting, he noted, is to keep resources focused on the UW’s mission. Citing three examples of that focus in this budget, he commented first on the advising initiative which deserves special emphasis as the students’ number one priority. Two other areas are the international education initiative and the diversity initiative, which are linked. Noting the increasing importance of globalization in the future, he emphasized that internationalization cannot be achieved without embracing diversity.

Regent Benson thanked President Lyall for a model record of partnering with the private and public sectors in framing the budget proposal. He expressed the support of the Department of Public Instruction particularly for the library funding initiative and for the diversity initiative. The latter, he felt, will go a long way in bringing students who are prepared to succeed to the UW System.

Expressing concern about the proposed tuition increases, Regent Benson added that he is supportive of competitive faculty pay. The answer, he felt, is to ask the state to fund a greater portion of pay increases so that students do not have to carry so large a burden.

Regent Staszak spoke in support of the advising initiative, noting that as well as being the students’ number one budget priority, it also is an emphasis of the Board’s 21^st Century Plan and it addresses state government’s goal to have students graduate in a timely manner. He emphasized focusing on student occupational goals as an area that needs improvement, as well as training of advisors.

Concerning other aspects of the budget, Regent Staszak expressed support for the CARE program and thanked Regent Barry and System Administration for developing this innovative approach to extending the useful life of buildings. He also thanked Regent Randall for his comments in support of increased financial aid. With respect to tuition, Regent Staszak urged planning on how to approach the budget advocacy process and what each person could do.

Regent Barry cautioned against setting tuition and faculty compensation at the same time, which causes the issues to play off against each other. He felt that the Board should look to the Legislature to treat faculty fairly and to treat students well.

Upon motion by Regent Marcovich, seconded by Regent Hempel, the following resolution was adopted unanimously by the Board of Regents:

1999-01 UW System Biennial Operating Budget Request

Resolution 7739: Upon recommendation of the President of the University of Wisconsin System, the biennial operating budget increase request (over a total all-funds base of $2,771.1 million) for new Initiatives, Cost-to-Continue, and other Program Revenue funded items be approved for submission to the Governor, Department of Administration, and the Legislature:

which would provide for a total 1999-01 two-year budget (all funds) of $5,806.6 million (excluding compensation increases).

It was moved by Regent Staszak, seconded by Regent Brandes, and carried unanimously that Resolution 7740 be adopted by the Board of Regents.

1999-01 UW System Biennial Capital Budget Request

Resolution 7740: That, upon the recommendation of the President of the University of Wisconsin System, the 1999-01 Capital Budget request totaling $290.4 million ($185.3 million General Fund Supported Borrowing and $105.1 million Gifts, Grants and Program Revenues) be submitted to the Department of Administration. The 1999-01 Capital Budget request includes the following major components:

1. Enumeration of $160 Million General Fund Supported Borrowing to fund a new Capital Asset Reinvestment Effort (CARE Program). The Board of Regents will develop an expenditure plan for funding received, subject to approval of the State Building Commission. The funds requested are based on projects recommended for construction totaling $90.4 Million GPR, and on various smaller repair and renovation projects requested by the campuses, totaling $119.4 million GPR.

2. Enumeration of three projects for additional space, funded by $25.3 million GPR and $8.6 million non-GPR sources.

3. Enumeration of 14 projects funded entirely by $78.1 million non-GPR sources.

1. Planning and design of seven projects that will become the basis of the University of Wisconsin System’s 2001-03 Capital Budget.

Upon motion by Regent Randall, seconded by Regent Staszak, the following resolution was adopted unanimously be the Board of Regents.

1999-01 UW System Biennial Operating Budget Support for Financial Aid

Resolution 7741: The Board of Regents reaffirms current Board policy that GPR financial Aid and graduate assistant support should increase at a rate no less than that of tuition while staying commensurate with the increased student budget needs of students attending the UW System. In addition, support should also reflect increases in the number of aid eligible students in recognition of the important role financial aid plays in keeping college affordable for Wisconsin students and families. The Board of Regents encourages the Governor and Legislature to fund state-supported financial aid programs to achieve this goal.

In addition to increasing funds in UW System minority and disadvantaged student grant programs, it is also recommended that the Governor and Legislature increase the Wisconsin Higher Education Grant (WHEG) program (administered by the Higher Education Aids Board) by the proposed percentage increases in 1999-01 tuition.

President Orr urged Regents, Chancellors, faculty, staff, alumni and friends to work with the Executive Branch and the Legislature to promote support for the budget request.

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ADDITIONAL business

Comments on decision in Southworth case

Eric Bakken, Chair, Associated Students of Madison, urged the Board to appeal the decision to the full 7^th Circuit Court. Political and idealogical speech, he commented, is at the heart of the university’s educational mission. The array of ideas and debate at UW-Madison is an important reason for the high esteem in which the institution is held. He predicted that this court decision, if allowed to stand, would narrow and silence this debate and diminish the position of UW-Madison as a leading educational institution.

John Grabel, President of United Council, also spoke in support of appealing the decision, stating that student leaders and students across the UW System believe the decision would drastically alter student participation in shaping the educational environment. Remarking that several factors make the case attractive for an appeal, Mr. Grabel cited questioning by the court of the role of students in campus decision making – a role that is important and vital in the UW System. Next, he continued, the decision ignores the finding of other courts that campus political speech and activities further the educational mission. Instead, the court relied on union and state bar association precedents in deciding a case about fees collected at a university, which have a broader focus and play a vital role in fulfilling the university’s mission.

In addition, Mr. Grabel continued, student fees are disseminated in a democratic process that is not available in unions and state bar associations. By not giving credence to that fact, he felt the court was holding that a democratically elected form of government is inadequate to address the concerns of the dissenting. Finally, Mr. Grabel commented, the court ordered the university to separate student organizations that are political or ideological from those that are educational. This distinction, he said, cannot be made without arbitrarily discriminating against organizations based on political or ideological beliefs, as found in Rosenberger v. The University of Virginia.

In conclusion, Mr. Grabel stated that, for these reasons—to protect elected representative student government; to preserve shared governance; to ensure that discrimination against student organizations based on content of speech is not allowed; and to maintain the free exchange of ideas that makes the UW System a national leader in education—students urge the Board to appeal the decision to the full Seventh Circuit Court.

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Student radio tower matter

Mr. David Blecker, who had requested to speak to the Board on this matter on behalf of the Town of Montrose, did not appear.

Professor James Hoyt, speaking on behalf of UW-Madison, made the following comments. Urging the Regents to appeal the decision of the Dane County Board of Adjustment, Professor Hoyt noted that the issue is whether the tower for a student radio station constitutes a governmental use. Professor Hoyt, who has taught broadcast news at UW-Madison for 25 years, observed that this is the only university in the UW System that does not have a radio station. The station would be integrated into the broadcast news curriculum in the School of Journalism. It would also be used for agriculture journalism training, as well as for courses in the area of radio and broadcast management.

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executive session

At 3:10 p.m., the following resolution, moved by Regent Smith, was adopted on a unanimous roll-call vote, with Regents Barry, Benson, Boyle, Brandes, DeBraska, DeSimone, Gottschalk, Hempel, James, MacNeil, Marcovich, Mohs, Olivieri, Orr, Randall, Smith, and Staszak (17) voting in the affirmative.

Resolution 7742: That, the Board of Regents recess into closed session, to consider personnel matters, including extension of a leave of absence at UW-Stout, a temporary base salary adjustment at UW-Madison, and named professorships at UW-Madison and UW-Stout, as permitted by S.19.85[1][c]© Wis. States; to consider personal histories related to appointment of members of Board of Visitors, UW-Milwaukee, 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.

The executive session commenced at 3:20, following a 10 minute recess. The Board arose from executive session at 4:00, having adopted the following resolutions:

UW-Stout: Extension of leave of absence beyond the initial two years for a faculty member

Resolution 7743: That, upon recommendation of the Chancellor of the University of Wisconsin-Stout and the President of the University of Wisconsin System, the leave of absence for Carole Flint be extended through the 1998-99 academic year.

UW-Stout: Named Professorship Appointment: Maybelle Rannye Price Professorship

Resolution 7744: That, upon recommendation of the Chancellor of the University of Wisconsin-Stout and the President of the University of Wisconsin System, the following named professorship be approved, for the period September 1, 1998 through August 31, 1999:

Timothy Shiell Maybelle Rammey Price Professorship

UW-Milwaukee: Board of Visitors

Resolution 7745: That, upon the recommendation of the Chancellor of the University of Wisconsin Milwaukee and the President of the University of Wisconsin System, the following appointments be made to the UW-Milwaukee Board of Visitors:

Daniel D. Fetterley – Reappointment for a term ending in August 2001

Daniel David Blinka – Appointment for a term ending in August 2001

Robert Harris, Jr. – Appointment for a term ending in August 2001

UW-Madison: Temporary Base Salary Adjustment resulting in a salary above the Executive Salary Group Six maximum

Resolution 7746: That, upon recommendation of the Chancellor of the University of Wisconsin-Madison

and the President of the University of Wisconsin System, the board approve a temporary base salary adjustment, effective September 1, 1998, for Jeffrey Grossman, Associate Dean for Clinical Affairs/Physician in Chief of the UWMF and UWHC, resulting in a salary of A$112,644.

UW-Madison: Named Professorship Appointments

Resolution 7747: That, upon recommendation of the Chancellor of the University of Wisconsin-Madison and the President of the University of Wisconsin System, the following named professorships be approved:

Edward S. Oplinger William Rothermel Bascom

Professorship in Agronomy

(effective July 1, 1998)

Kirk Parkin Friday Chair for Vegetable

Processing Research

(effective September 1, 1998)

Appeal of Decision of Dane County Board of Adjustment

Resolution 7748: That, upon the recommendation of the President of the UW System and Chancellor of UW-Madison, the Secretary of the Board of Regents is authorized to request the Attorney General to appeal the decision of the Dane County Board of Adjustment, filed on August 6, 1998, that reversed the ruling to the Dane County Zoning Administrator that the UW-Madison Student Radio Tower was a governmental use.

Request for review of decision in the Southworth segregated fee matter:

The Board defeated a motion not to petition for review of the decision in the Southworth matter by the full 7^th Circuit Court of Appeals. The motion was defeated on a roll-call vote, with Regents DeBraska, Gottschalk, James and Mohs voting in favor of the motion, and Regents Barry, Benson, Boyle, Brandes, DeSimone, Hempel, Marcovich, Olivieri, Randall, Staszak, and Smith voting against it.

The Board then adopted on a voice vote a motion to petition for review of the decision in the Southworth matter by the full 7^th Circuit Court of Appeals.

The Board arose from Executive Session at 4:00 p.m., at which time the meeting was adjourned.

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Judith A. Temby, Secretary