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

Friday, November 10

REPORT OF THE PRESIDENT OF THE SYSTEM 4

REPORT OF THE PHYSICAL PLANNING AND FUNDING COMMITTEE 8

REPORT OF THE EDUCATION COMMITTEE 15

ADDITIONAL RESOLUTIONS 18

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

Friday, November 10, 2000

9:00 a.m.

- President Smith presiding -

There being no additions or corrections, the minutes of the October 6, 2000, meeting of the Board stood approved as distributed.

The Board received a written report on the October 27 meeting of the Higher Educational Aids Board.

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A written report on the November 8 meeting of the Hospital Authority Board was provided to the Board of Regents. Supplementing the written report, Regent Mohs, a member of the Authority Board, reported that recent financial results for the hospital were positive, despite the difficulties faced by teaching hospitals on a national basis. He also pointed out that UW Hospital is second in the nation in numbers of organ transplants and is one of the lowest in cost.

Regent DeSimone commended UW Hospital for its promptness in handling referrals of cancer patients.

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Regent President Smith reported that public listening sessions and regional economic strategy meetings held throughout the state were very successful, with broad participation from business, labor, education, government, and the general public

Noting that news media coverage of activities leading to the economic summit has been excellent, he thanked the media statewide for their extensive coverage and editorial support.

Activities around the state have attracted more than a thousand participants to date and have generated a great deal of enthusiasm for creating a strategic vision for Wisconsin's economic future. The state's five regions have succeeded in identifying regional strengths and challenges. They are well along in creating regional economic visions and plans. In addition, 50 white papers are being written and will be available on the summit's Web site as they come in.

Regarding the agenda, Regent Smith indicated that the white paper authors, who have made a great contribution to the summit, will be honored at a special reception on Thursday, November 30^th. On Wednesday evening, the Regents will host a kick-off reception with Governor Thompson.

Noting that the agenda will be interactive, Regent Smith expressed the hope that all Regents will be able to attend and share thoughts on these important issues. Registrations to date show that the initial estimate of about 300 participants already has been far surpassed.

Expressing appreciation to all who have supported and encouraged the Economic Summit, Regent President Smith commented that an "opportunity does not often emerge to make a significant imprint on the state's economy and quality of life. This is one such moment for the university and all the people of Wisconsin. The Regents are honored and humbled to play a leading role as it pertains to this effort."

Regent Axtell read Resolution 8240 and moved its adoption by the Board of Regents. The motion was seconded by Regent DeSimone and carried unanimously.

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Regent Smith announced that the following Regents will constitute the Regent Committee to select the year 2000 winners of the academic staff excellence awards: Regent Randall, Chair, Regent Gracz, Regent Krutsch, and Regent Schneiders.

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President Lyall began by recalling that information on access was presented at the October meeting as a series of "funnels" that start with a high school student's decision to take or not to take the ACT test, a requirement for admission; then the decision whether or not to apply to a UW institution; the institution's decision whether or not to admit the student; and finally, the admitted student's decision whether or not to enroll in that institution.

Noting that use of the term "access rate" may be misleading, she pointed out that the rate of 33% actually is a service rate; that is, the UW System serves one in three Wisconsin high school graduates. 94% of all Wisconsin high school applicants are admitted somewhere in the UW System. By either of these measurements, she indicated, Wisconsin has significantly higher access and service rates than most other states.

It is apparent, President Lyall said, that there are both gender and race differences in the way various groups proceed through the "funnel", with more males making decisions early in the process not to take the ACT test, and fewer students of color making decisions later in the process to attend institutions to which they were admitted.

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Responding to questions that were raised at the October meeting, President Lyall indicated that about 6% (9,000 FTE) of students are nonresidents. That number ranges from about 1% at UW-River Falls to 16% at UW-Madison. Minnesota reciprocity students are treated as residents and are excluded from these figures, as are international students. Wisconsin ranks second lowest of the seven Midwestern states in the percent of nonresidents in its undergraduate student body.

Because nonresidents pay 140% of instructional cost in Wisconsin, they generate $26 million that is used to subsidize resident undergraduate tuition. If the 9,000 nonresident undergraduates were replaced with residents, resident undergraduate tuition would have to rise about 20% to maintain the same educational support per student. However, she pointed out, nonresidents are not admitted for financial effect, however beneficial that may be. They are admitted to provide diversity in the student body and enrich the experience of resident undergraduates.

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Another question, President Lyall continued, relates to what joint marketing programs with WTCS could be undertaken to promote college attendance in general. In this regard, UW-Rock County and Blackhawk Technical College did a successful joint marketing program last summer. In the future, she indicated, the most promising opportunities appear to be the 2+2 programs being developed under the Joint Board Agreement of last April. These would lend themselves to an information campaign that could outline how the student could go from start to finish utilizing both systems to maximum effect.

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President Lyall noted a question concerning whether success rates decline as access increases. Replying in the negative, she reported that the statistical correlation between access and retention/graduation rates is very high because institutions have been increasing the proportion of freshmen coming from the top of their high school classes. Therefore, rising access is associated with rising academic success rates.

With regard to other questions that had been raised, President Lyall indicated that a survey is planned in 2001 of high school students who have taken the ACT, in order to learn more about their college selection decisions. In addition, focus groups with pre-college students are planned to learn more about their perceptions of college accessibility and affordability. Another plan is to contact a sample of high school counselors to find out what they think can be done to encourage high school males to take the ACT and aspire to college in large numbers.

Noting that access is one of the Board's three priority issues for this year, President Lyall said information about these topics will continue to be brought to the Board.

Regent Krutsch observed that, although Wisconsin's access rate is one of the highest in the country, the number of college graduates in the state is lower than average. She thought it pertinent to focus on the cause of this discrepancy. With respect to differing access rates for males and females, she observed that in Great Britain programs are being developed for boys beginning in elementary school to address discrepancies in reading and writing scores between girls and boys.

Regent Olivieri noted that numbers of nonresident students at UW-Madison remain an issue of concern to Wisconsin students and parents. He also noted the importance of advising students about attractive options available at other UW institutions.

Regent Barry added that UW-Marathon has been highly successful in generating college transfer contracts to UW-Madison, primarily through focus on marketing the idea to students and parents. Under the contract, transfer is guaranteed with a grade point average of 2.6 or higher at UW-Marathon. The UW, he remarked, needs to publish these types of contracts as well as other access avenues for Wisconsin high school graduates.

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President Lyall reported that UW-Madison, UW-Stevens Point, UW-Whitewater, UW-Oshkosh, and UW-Milwaukee had formed a consortium to take over management of a .9 meter optical telescope on Kitts Peak, Arizona. The telescope is being equipped for remote viewing so that students in Wisconsin will be able to look through the telescope from their labs on campus. Management of the telescope is being taken over from a federal agency as a result of a winning proposal that impressed the review committee because of its collaborative nature and educational promise. Recognizing Professor Bob Mathieu, of UW-Madison, who took the lead in putting the proposal together, President Lyall noted that this is one more benefit of the UW's collabortive approach to programming that opens up new opportunities for students.

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President Lyall recognized Wisconsin Public Television for successfully transmitting a Badger hockey game to Anchorage, Alaska on Internet2 - the first such transmission of a regularly scheduled program. Internet2, she noted, is the 21^st century research network that will keep UW-Madison and other institutions on the cutting edge of research advances. She commended Wisconsin Public Television for its part in continuing to push the envelope.

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President Lyall congratulated Assistant Professor Susan Hagness and Assistant Professor Jenny Saffran, both of UW-Madison, for winning Presidential Early Career Awards of $500,000 to advance their research and teaching. Professor Saffran, a child development psychologist, does research on how babies learn. Professor Hagness, an engineering professor, is developing a new class of materials to increase the speed of computers.

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It was reported by President Lyall that UW-Milwaukee is honoring two of its high-tech enterprises: Chin Fan, President and co-founder of Flash Electronics, Inc.; and Staya Nadella, Vice President of MicroSoft bCentral Team. They hold degrees in industrial engineering and computer science, respectively.

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President Lyall commended Chancellor George, UW-Stevens Pont, who has published his third scientific book since arriving on campus. His most recent publication is titled Optics of Nanostructured Materials.

She also congratulated Chancellor Zimpher, UW-Milwaukee, for being awarded the St. Francis Children's Center Community Service Award. Other recipients have been Roger Fitzsimonds, James Ericson, and Regent Emeritus Edith Finlayson.

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President Lyall commended UW-Washington County and Dean Joel Rodney on receipt of a $1 million grant from Paul Collins, an area donor, whose gift will be used to provide nursing programs to area residents in collaboration with UW-Milwaukee's School of Nursing. The program will consist of two years study at UW-Washington County, two years at UW-Milwaukee, and a final clinical year serving the Washington County community. This is an excellent example, the President pointed out, of how collaboration expands the reach of academic programs, while maximizing efficiency.

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Another cooperative innovation is a collaborative microcomputer specialist program to be offered by UW-Richland and Southwest Wisconsin Technical College. Southwest Technical College will offer computer-related courses on the UW-Richland campus and UW-Richland will offer general education courses. Graduates will earn an associate degree from Southwest Tech. Noting that this is the first joint program offered by the two systems, President Lyall commended Richland Dean Dion Kempthorne and Southwest President Karen Knox for this major step in carrying forth the spirit of the agreement signed by the Board of Regents and the Wisconsin Technical College System Board in April.

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President Lyall recognized Tess Arenas, Assistant Vice President for Academic and Multicultural Affairs, for her appointment by the Wisconsin Supreme Court to a two-year term on the Board of Governors of the Wisconsin State Bar.

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The Physical Planning Committee met jointly with the Business and Finance Committee to discuss the long range facility maintenance plan and renewal; the 2001-03 Capital Budget funding recommendations, and Camp Randall expansion and renovation.

Assistant VP Nancy Ives explained that the basis of the long range facility maintenance plan is a detailed audit of major GPR facilities. The audit revealed a backlog of deferred maintenance of approximately $800 million with about $115 million per biennium needed to fund cyclical maintenance. Eliminating the backlog over a ten-year period will require a reinvestment of approximately $160 million per biennium.

Bob Brandherm, Administrator of the State Division of Facilities Development, supports the proposed 10-year plan to eliminate the backlog. He reported that the State Building Commission adopted the UW model of facilities assessment for all state agencies.

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A tour of Camp Randall familiarized the Board of Regents with existing problems and the need for potential proposed improvements. Financial and architectural consultants provided additional information at the committee meeting.

Unanimously approved by the Physical Planning and Funding Committee and the Business and Finance Committee were Resolutions 8241 - 8242. Regent James moved their adoption by the Board of Regents as consent agenda items. Regent Randall seconded the motion and it was carried unanimously.

• a commitment of at least $17 million in gift funding

• assurances that sufficient revenues are available from multi-year leases of suites and club seats, from the Badger Fund, and from other receipts to amortize the program revenue bonding and pay ongoing operating costs.

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The joint meeting was adjourned and the Physical Planning and Funding Committee reconvened.

Regent James, Chair, presented the Committee's report.

The Physical Planning and Funding Committee unanimously approved Resolutions 8243-8244. Regent James moved their adoption as consent agenda items by the Board of Regents. Regent Randall seconded the motion and it was carried unanimously.

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Nancy Ives, Assistant Vice President, reported that the Building Commission approved about $68 million for various projects at their October meeting. One of the projects is the installation of a baghouse at UW-Eau Claire heating plant to meet EPA emission standards. Eight of our nine coal-fired heating plants will require similar work in 2001-03 biennium.

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Assistant Vice President Ellen James reported on our successful programs for reducing solid and hazardous waste through reuse, recycling and progressive purchasing practices, as well as safe handling and storage of chemicals and other substances.

The Committee unanimously approved Resolution 8245. Regent James moved its adoption by the Board of Regents. It was seconded by Regent Alexander and carried unanimously.

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The Committee unanimously approved the following resolution. Regent James moved its adoption by the Board of Regents and it was seconded by Regent Schneiders and carried unanimously.

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The Committee's report was presented by Regent Marcovich, Chair.

Regent Marcovich presented Resolutions 8247-8251, which had been approved unanimously by the Business and Finance Committee, and moved their adoption as consent agenda items by the Board of Regents. Regent Gottschalk seconded the motion and it was carried unanimously.

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Mike Hardiman, Director of Purchasing at UW-Madison, highlighted UW-Madison's e-procurement initiative which includes procurement cycle goals of:

• increasing process efficiency;

• improving navigation to find contracted products in vendor catalogs, it’s a self-service purchasing concept;

• reducing product cost through focused contracting that takes advantage of vendors’ reductions in process costs; and

• maximizing efficiencies in the physical movement of goods.

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John Feldt, Senior Vice President of the UW Foundation, outlined advantages and disadvantages of alternative investments, including venture capital. At a future date, he will discuss what may be appropriate for UW Trust Funds.

In response to Regent Krutsch's request, information on gifts, grants and contracts will be presented by institutions. Vice President Durcan cautioned the Committee not to read too much into campus fluctuations this early in the fiscal year.

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Vice President Durcan distributed copies of a letter from the Legislative Audit Bureau outlining the scope of their audit of the 1999-2000 financial statements.

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The public forum convened at 3:48 p.m. in Grainger Hall following the Business and Finance Committee meeting. Treasury Manager Lori Mills reviewed Regent policies guiding proxy voting for UW Trust Funds. Tom Reinders, Investment Portfolio Analyst, gave an IRRC online analyst demonstration and a summary of UW Trust Fund votes for the past year. Students questioned the effect of proxy voting as opposed to divestiture and urged the Board to consider divesting in companies which are clearly in violation of Board policies on discrimination or the environment.

The forum adjourned at 4:55 p.m.

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Regent Brandes, Chair, presented Resolutions 8252-8256, which had been approved unanimously by the Education Committee and moved their adoption by the Board of Regents as consent agenda items. The motion was seconded by Regent Gottschalk and carried unanimously.

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Interim Senior Vice President Thibodeau commented on low enrollment programs, noting that in the past five years 45 new programs have been added and 40 have been deleted. He observed that because institutions must mount new programs from their base budgets there is pressure to eliminate or merge low enrolling programs. Both the request for an entitlement to plan and authorization to implement a new academic program require information on student and market demand.

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The committee reviewed a draft matrix of agenda items for the coming year. Priority areas include: (1) the Economic Summit; (2) the quality of the educational experience; and (3) PK-16 educational initiatives.

In discussion at the Board meeting, Regent Barry asked if priority could be given to consideration of creating a voluntarily constituted PK-16 Council. Willing participation by all parties, he commented, would be the key to success. Members would include the UW, the Technical College System, private colleges, the K-12 system, and perhaps others.

Senior Vice President Thibodeau indicated that the UW currently is working with the Department of Public Instruction and others toward creation of such a council.

Indicating that directions taken by a PK-16 Council could have far-reaching implications, Regent Olivieri suggested that, early in the process, the Board should vote on a framework of issues for the council to consider.

Noting that about 20 states have PK-16 councils, President Lyall observed that one advantage of a volunteer council is that it can define the two or three issues that it thinks are at the intersection of two or more sectors of education and for which collaborative work is beneficial. These issues, she noted, vary considerably from state to state. She felt that one advantage of having a council would be for members of that body to have a discussion about possible agenda items and then perhaps return to their boards for concurrence.

Regent Gottschalk suggested that the Education Committee be provided with a copy of the assessment program mentioned by Chancellor Langenberg, of the University of Maryland System, in his presentation to the Board the preceding day.

Regent Krutsch commented that one of the strengths of the report done by the consortium led by Chancellor Langenberg was to make the point that college admission and placement policies need to reinforce K-12 standards.

The committee heard the initial presentation of three new program authorizations: B.A. in Religious Studies and B.A. in Jewish Studies, both at UW-Madison, and an M.S. in Computer and Information Systems, UW-Parkside. These programs will come before the Board for a final consideration at our December meeting.

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Upon motion by Regent Randall, seconded by Regent Axtell and carried unanimously, the meetings scheduled for January 4 and 5, 2001, were cancelled.

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The Board recessed at 10:00 a.m. and reconvened at 10:20 a.m., at which time the following resolution, moved by Regent Randall and seconded by Regent Olivieri, was adopted on a unanimous roll-call vote, with Regents Alexander, Axtell, Barry, Boyle, Brandes, DeSimone, Gottschalk, James, Krutsch, Marcovich, Mohs, Olivieri, Randall, Schneiders and Smith voting in the affirmative. There were no abstentions and no negative votes.

The Board arose from executive session at 11:25 a.m., having adopted the following resolutions:

The meeting was adjourned at 11:25 a.m.