Board of Regents
Regular Meeting Minutes -March 2006
MINUTES OF THE REGULAR MEETING
of the
BOARD OF REGENTS OF THE UNIVERSITY OF WISCONSIN SYSTEM
Madison, Wisconsin
UW-Madison
Held in 1820 Van Hise Hall
Thursday, March 9, 2006
9:30 a.m.
- President Walsh presiding -
PRESENT: Regents Axtell, Bradley, Burmaster, Connolly-Keesler, Crain, Davis, Gracz, Loftus, Pruitt, Randall, Rosenzweig, Salas, Semenas, Smith, Spector, and Walsh
UNABLE TO ATTEND: Regent McPike
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TAXPAYER PROTECTION AMENDMENT: ANALYSIS BY PROFESSOR ANDREW RESCHOVISKY
Regent President Walsh introduced Dr. Andrew Reschovsky, a professor of Applied Economics and Public Affairs at the UW-Madison Robert M. La Follette School of Public Affairs. Professor Reschovsky’s research focus is tax policy and intergovernmental fiscal relations. He has conducted research for several state and local governments in the United States and also advises the Government of South Africa on design of grants for the financing of education and on the fiscal reform of local governments. He has worked in the Office of Tax Analysis at the U.S. Treasury and at the Organization of Economic Cooperation and Development in Paris.
Beginning his presentation, Professor Reschovsky explained that the Taxpayer Protection Amendment (TPA) is a variant of the Taxpayer Bill of Rights (TABOR) in that both are constitutional amendments that use a formula to limit the growth of governmental expenditures and revenues. Any relaxing of the limits would have to be approved by referenda. In that sense, it would replace the system of representative government for making decisions regarding taxation.
The TPA would limit the increase in revenue of the state, counties, and technical colleges to the Consumer Price Index plus population growth. School districts would be limited to the CPI plus enrollment growth in 5-year old kindergarten through 12th grade. Cities and villages would be limited to the CPI plus 60% of the value of net new construction. Ninety three percent of the towns, comprising 23% of the population, would be excluded. A rainy day fund of eight percent of revenues would be established for state government only. Any amount above that would be returned to the taxpayers.
In the TPA, revenue would be defined as taxes, fees, licenses, fines, and revenue generated from bonds. UW and technical college tuition and fees would be excluded and bond proceeds would be excluded in the base year.
The CPI, Dr. Reschovsky explained, is composed of a market basket of typical household purchases that is very different from what the university buys, including high skilled individuals who require competitive salaries, and health insurance and fuel, both of which have increased in cost much faster than the CPI. Therefore, if spending were limited to the rate of inflation and costs went up much higher, the result must be downsizing in the ability to deliver services by the state and the university. State government, he noted, will face increased health care costs to serve an aging population, at a time when the federal government is reducing funding for the states.
Noting that the formula of the TPA is structured to downsize government, he explained that, while ability to pay is increased by income, the amendment would limit revenue growth for government to the CPI plus population growth and that the CPI will grow at a smaller rate than the economy. Therefore, government will become a smaller and smaller share of the economy.
Dr. Reschovsky then turned to a graph showing that, if the TPA had been in effect in 1985, allowable revenue in 2005 would be $10 billion, compared to actual revenue of $17 billion. The UW System would in the best case have had $210 million less, or $1550 per FTE student, in addition to the budget reductions already taken. That figure is optimistic, he pointed out, because the UW has not been favored among state priorities due to increasing costs of Medicaid, health care, and funding two-thirds of K-12 education. These other priorities would press for more money, while under the TPA, the state would have less to spend. The probable result would be a greater funding gap for the university.
In order to fill the funding gap, the UW would need large amounts of extra tuition or a 12% enrollment cut, equivalent to 16,250 students in 2005.
Regent President Walsh asked if these are impacts that could be expected after 20 years under the TPA, and Professor Reschovsky replied in the affirmative. The impact after 10 years would be about half.
Consequences of reduced UW budgets due to the TPA, Dr. Reschovsky continued, would include reduced ability to attract and retain the best scholars. In that regard, he noted that, at UW-Madison, in the past two years outside offers have doubled and the percentage retained has fallen to 50%. Faculty who stay at UW-Madison on average generate $3.50 in outside grants for every $1.00 of university support. Inability to retain these people diminishes the rate of return because start-up costs for new faculty are higher than continuing costs and faculty bring in more outside dollars later in their careers.
A critical consequence would be lessened ability for the UW to enhance the state’s competitive position. Lower investment in the UW would result in creation of fewer high-skill jobs in Wisconsin and slower economic growth.
In discussion following the presentation, Regent Axtell inquired about the Colorado experience with a TABOR amendment. Professor Reschovsky replied that what he was predicting for Wisconsin had happened in Colorado and that cuts in services had resulted in a vote to suspend TABOR for five years.
Regent Crain inquired about enrollments in Colorado, and Dr. Reschovsky indicated that he did not have that information.
In response to a question by Regent Loftus, Dr. Reschovsky said that this was a first consideration of the TPA, that it would have to pass the Legislature in identical form next year and would go into effect in 2009, if passed by a referendum. He added, however, that the amendment would send signals much sooner that would harm the state’s competitive position.
Regent Loftus inquired about the language in the proposed amendment regarding tuition, and Dr. Reschovsky indicated that it specified tuition and fees for university purposes as being excluded from the definition of revenue.
In response to a further question by Regent Loftus, he added that future boards of regents would need to decide levels of tuition and enrollments.
Regent Loftus remarked that, in future decisions, the state could place a higher priority on the university.
Regent Spector noted that the history of declining state support would lend credence to Professor Reschovsky’s predictions. Dr. Reschovsky added that the UW has received a decreasing share of total appropriations since the 1970s.
Regent Pruitt asked if the gap in access for low and moderate income students would widen under the TPA, and Professor Reschovsky replied that it would be hard to imagine that it would not widen. If tuition were increased to fill the gap, and financial aid were not increased at the same rate, numbers of low and moderate income students would be reduced. If tuition were raised even higher, however, some of the mondy could be used to fund financial aid for those students.
Regent Pruitt remarked that a significant tuition increase would seem necessary to replace declining state support under TPA, and Dr. Reschovsky agreed with that observation.
In response to a question by Regent Bradley, Dr. Reschovsky indicated that it is difficult to predict exactly who would win and lose under the TPA. In that regard, he noted that future legislatures would need to determine which taxes to lower. One possibility would be that the tax system could be reformed to benefit lower income individuals.
Regent President Walsh pointed out that the UW has increased enrollments in the face of budget reductions by significant belt tightening. The amendment would mean that the university would receive less money to accomplish its goals of increasing access and expanding the number of baccalaureate degree holders in the state. He asked about whether there were similar proposals in other states besides Colorado.
Dr. Reschovsky replied that states have a history of limiting revenue or spending in a variety of ways. One of the best known is Proposition 13 in California which affected only property taxes and resulted in greatly reduced spending on education. Scholars have studied the impact and concluded that the result was a significant decline in the quality of K-12 education in that state.
Regent Crain observed that one concern is the tension in competing for funds, especially for the university and the K-12 system, which should be congruent and supportive of each other. The amendment, she felt, might cause such tensions.
Dr. Reschovsky agreed that competition would be inevitable.
In response to a question by Regent Axtell about the rate of tuition increases under the amendment, Dr. Reschovsky indicated that, because educational costs would rise faster than the formula, there would be single digit tuition increases in the first few years, but they would be followed by double digit increases later.
Regent Spector indicated that in California local foundations supplemented support for schools in wealthy districts. He asked if tuition increases could be lessened by cutting back the scope of the university in terms of the range of courses offered and other means.
Professor Reschovsky agreed that could be done if the cuts were large enough but noted that cutting faculty would mean educating fewer students.
Regent Loftus recalled that in the early 1980s the state was in a difficult fiscal position and the university was directed to cap enrollment, a path that was chosen in order to avoid harm to the university in the long run. This year, the largest freshman class in history was enrolled. He asked if that would not be a likely solution in this case as well. Dr. Reschovsky noted that reduction in enrollments and other options would need to be decided by future boards of regents.
Noting that gift and grant support for the university has grown exponentially, Regent President Walsh pointed out that this source of income declines when star faculty are hired away. He asked if it would be fair to respond to the TPA proposal that, with reduced state support, the result would have to be reduced enrollments if there were to be sensitivity to the rate of tuition increases. Dr. Reschovsky concurred with that observation.
Concluding the discussion, Regent President Walsh stated that the university needs to do more, not less, to educate students.
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UNITED COUNCIL 2007-09 BUDGET PRIORITIES
In introductory remarks, Associate Vice President Freda Harris noted that every two years the Board seeks input from students on their priorities for the biennial budget request. United Council of UW Students traditionally has taken the lead in bringing forward those priorities. Formed in 1960, United Council represents students on 24 UW campuses.
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Remarks by Guillermo Cuautle, Jr., Vice President of United Council of UW Students
Explaining how the budget priorities were selected, Mr. Cuautle, a student at UW-Milwaukee, related that, at the October 2005 General Assembly, students created a list of priorities based on input they had received from their campuses. In February 2006, David Glisch-Sanchez, United Council Academic Affairs Director, presented options to a joint session of the Legislative and Academic Affairs committees to determine the specific details of those priorities. The General Assembly then adopted the recommendations from the joint session.
In order to gain reinvestment from the state, Mr. Cuautle commented that the Board and the entire UW community must communicate a genuine vision that allows all Wisconsin families to see their reflection and that creates the hope, motivation and belief necessary to spur reinvestment in public higher education. In that regard, he stated United Council’s conviction that higher education should be a right for all and that the biennial budget should focus on accessibility for low-income students, rather than affordability for middle and upper-income students.
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Remarks by Ryan Kockler, President, UW-La Crosse Student Association
Speaking about access as it relates to tuition and financial aid, Mr. Kockler commented that research has shown that low tuition and high financial aid are the only measures that address access for low-income students, while also providing needed relief for middle-income families. In that regard, he referred to the Minnesota experience with a higher tuition/high aid model. The National Center for Public Policy and Higher Education’s third biennial report card showed that in Minnesota, as in Wisconsin, families in the two lowest income quintiles must pay 33% of their annual earnings to attend college. In addition, the December 2004 issue of Postsecondary Education Opportunity reported that Wisconsin and Minnesota exhibited the largest decreases in low-income participation rates in higher education in the nation.
Therefore, Mr. Kockler urged the Board to adopt low-tuition/high aid as a central tenet of the 2007-09 biennial budget request. Specific proposals were to:
o Increase GPR support for the Wisconsin Higher Education Grant by $33.4 million. This increase would allow the average award to be increased by over $540, the equivalent of half the tuition at a UW comprehensive university.
o Increase state support for Lawton Grants by nearly $3.2 million to increase the average award by over $700 in order to address the greater financial need of students of color.
o Increase state support for the Advanced Opportunity Program by $1.2 million in order to make UW institutions more competitive in attracting graduate students of color along with low-income white graduate students.
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Remarks by Katrina Flores, Executive Staff, MultiCultural Student Coalition
Presenting Plan 2008 and domestic partnership benefits as two of United Council’s budget priorities, Ms. Flores noted that the Board’s Resolution 8970 recommended that campus Phase II plans “describe the accountability process, including incentives and penalties for success and failure to close the achievement gap.” Campus officials have explained, however, that budgetary constraints make the resources needed to create such incentives extremely scarce. Stating that graduation gaps between white students and students of color never have been greater, she asked the Board to request an additional $8.25 million for the 402 Fund, which is meant to address the needs of students of color and low-income students. The funds would be utilized as follows:
o $3 million to create an incentive fund for individual campuses to reach their goals.
o $5 million to be disbursed to all campuses to either expand current efforts or fund new initiatives related to campus diversity plans.
o $250,000 to address understaffing and expand the work capacity of the Office of Academic Diversity and Development.
As to domestic partner benefits, Ms. Flores noted the UW’s Inclusivity Initiative on Lesbian, Gay, Bisexual, Transgender, and Questioning People, which has a goal of promoting equal access, retention and success of LGBTQ students and employees. In order to accomplish that goal, she said, a compelling case must be made for offering domestic partner benefits for UW employees. This would allow campuses to recruit the most talented employees available and provide the type of mentoring that LGTBQ students need in order to be successful.
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Remarks of Jennifer Schmidt, Member, UW-Fond du Lac Student Association
Ms. Schmidt spoke first of the importance of employee pay as a budget priority.
Pointing out that professional excellence in the UW System is at risk, Ms. Schmidt related her concern, as a member of the campus appointments committee, over inability to recruit and retain quality faculty. Faculty on campuses around the state, she pointed out, are leaving for private sector jobs or for positions in other universities willing to pay a competitive wage. Noting that in recent biennia, tuition has been used to pay for substantial portions of employee pay increases, she commented that the state has primary responsibility for competitively compensating its workforce. For these reasons, United Council asked that the Board request, at minimum, an increase of $30.6 million in state funds be begin closing the gap between the pay of UW faculty and their peers.
Ms. Schmidt identified the Initiative on the Status of Women as another issue of importance to students. This project is intended to address: 1) Promotion and tenure of women faculty; 2) women faculty, staff and students in the fields of science, technology, engineering, and mathematics; and 3) campus climate for women as it relates to sexual harassment and sexual assault.
Seed money for the initiative, she noted, was provided by the Alfred P. Sloan Foundation, with the intent that the project eventually would be incorporated into the base budget. However, this was not possible due to large budget deficits in recent years, and Sloan Foundation funding is to end this spring. Therefore, in order to continue the work of the initiative, United Council recommended incorporating it into the 2007-09 biennial budget at a funding level of $400,000, which would provide three staff positions, allowing the project’s work to go forward.
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David Glisch-Sanchez, Academic Affairs Director of United Council
In concluding remarks, Mr. Glisch-Sanchez referred to a written list of suggestions for cost-saving measures that United Council had provided. It was his view that, in order to minimize tuition increases, it is necessary to evolve in the way services are delivered because he felt that traditional methods of operating have become too costly.
In developing the 2007-09 budget request, he urged the Board to incorporate “stretch” goals that reflect student priorities.
In discussion following the presentation, Regent Salas recalled that, in the last biennial budget request, the Regents presented a plan to hold lower income students harmless from tuition increases by providing offsetting financial aid. While the Joint Committee on Finance reduced requested aid, the Governor was able to add some of it back in the final budget. He asked Mr. Glisch-Sanchez what United Council would recommend for a plan in this budget that would win approval and whether United Council would support having financial aid come from tuition.
In reply, Mr. Glisch-Sanchez suggested changing the way affordability is discussed. Remarking that students and families to not consider tuition to be affordable, he felt that is the point that should be emphasized, rather than focusing on how UW tuition is affordable in comparison tuition at peer institutions. He also thought it important to emphasize voter registration and make sure that people who care about higher education get out to vote.
With regard to Regent Salas’ second question, he felt that to take financial aid from tuition would set a dangerous precedent and that the deterrent effect of “sticker shock” from higher tuition would negate the benefits of increased aid for lower income students.
Regent Davis asked about United Council’s assessment of whether there would be enough legislative concern about lower income students to provide a critical mass of support for increased financial aid.
Mr. Cuatle thought that the Board should ask for as much financial aid as needed and make a strong case for why it is important. Legislators then would need to be accountable for their decisions.
Regent Pruit inquired about United Council’s stance with regard to the Taxpayer Protection Amendment and what actions the group was taking.
Mr. Glisch-Sanchez replied that United Council is absolutely opposed to the amendment. They were making their position known through the media and meetings with legislators. If it came to a referendum, they planned to educate and register voters.
Regent Walsh asked if United Council advocated including tuition in the revenue cap, and Mr. Glisch-Sanchez replied in the affirmative. Regent Walsh asked if that meant that United Council would rather see enrollment limited than see tuition increased, to which Mr. Glisch-Sanchez replied that, while United Council asked for the change to make proposal more student friendly, the group still opposed the TPA as a whole.
Regent Crain asked about the level of student awareness of United Council’s budget priorities; and Mr. Glisch-Sanchez replied that there was a high level of awareness because student representatives chose the priorities.
Regent Bradley asked United Council to formulate a recommendation as to what the group would recommend in terms of enrollment if tuition were held down and state support were to be insufficient because of the TPA or denial of funding requests. Mr. Glisch-Sanchez replied that the matter would be discussed at the April General Assembly.
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ACHIEVING EXCELLENCE: UW SYSTEM ACCOUNTABILITY REPORT 2005-06
In opening remarks, President Reilly noted that this is the 12th year that the UW has issued a systemwide accountability report. The first in the nation to adopt such a report, the UW remains a model for many states.
Observing that there are various ways to measure a university, he noted that one such measure is productivity. According to the National Center for Higher Education Management Systems, Wisconsin is one of the states with the most productive public baccalaureate and master’s institutions, relative to its resources. The same is true for the university’s very productive research sector.
While Achieving Excellence is not intended to incorporate all possible measures of a university, it does track several important quantitative calculations, as well as reports from student and alumni surveys. Therefore, the report provides a strong understanding of how well the UW is achieving its goals in terms of both quantity and quality.
Noting that Regent Axtell had long championed the purpose and philosophy of the Achieving Excellence report, President Reilly asked him to share some of his observations about the report.
Regent Axtell remarked that Achieving Excellence is the single most important report produced by the UW System and that it is a powerful means of showing the Board and the university’s stakeholders how well the UW is doing.
The report, he recalled, originated from the 1992 UW System Compensation Commission, on which he served, along with legislators and other members. The commission made four recommendations:
o The Board of Regents should have more authority for management, including salary determinations.
o The budget should be in a unified, rather than a line-item format, with determinations about distribution made by the Board.
o GPR support for the UW should not be reduced below 1991 levels.
o A Task Force on Accountability Measures should be appointed.
This task force, on which Regent Axtell also served, along with legislators and other members, provided benchmarks for the report. The purpose, he recalled, was to assure accountability, in return for which the UW would be given more flexibility to manage, as recommended by the Compensation Commission.
While the university has provided this accountability for many years, he pointed out, the promised flexibilities have not been granted.
Continuing his remarks, President Reilly cited the following challenges faced by the university over the past year:
o State tax support for the UW System is at its lowest percentage ever – 24% of the total budget, down from 52% thirty years ago. More than half – 55% -- comes from gifts, grants, and revenue directly earned by the UW.
o The decrease in state support means more reliance on tuition to cover 21% of the total budget, up from 13% in 1974.
o At a time when it is becoming more difficult for students to afford college, Wisconsin remains behind both Illinois and Minnesota in the number of baccalaureate degree holders – only 24%. Improving that rate is a major focus of the Growth Agenda.
President Reilly then called upon Interim Associate Vice President Sharon Wilhelm and thanked her and the entire team in the Office of Policy Analysis and Research for their attentive, competent and professional work on this report.
Ms. Wilhelm began by indicating that the accountability report is designed to provide a broad array of information about the UW’s progress towards achieving excellence. Although it would not be possible to include every area of university activity in the report, careful attention is given to addressing a wide variety of stakeholder interests through a balanced approach.
The report shows that the UW met or exceeded 12 of its 20 goals. There was mixed success on five other measures, and three targets have yet to be reached. Challenges identified in the report include:
o The UW has not yet achieved its diversity-related goals. A gap still persists between retention and graduation rates of students of color, compared to all students.
o Although the numbers of students studying abroad continues to increase, the goal has not yet been reached of a study-abroad experience for 25% of bachelor’s degree recipients.
Good news in the report includes the following:
o The UW continues to provide access for 33% of Wisconsin high school graduates.
o Participation by elementary and secondary students in multicultural and disadvantaged pre-college programs continues to increase.
o The UW’s six-year graduation rate increased by more than one percentage point, exceeding the target of 61.8%. While the systemwide target for retaining students to the second year was not reached, it was higher than last year and above the national average.
o The average number of credits attempted on the path to a bachelor’s degree went down at almost every UW institution, with the systemwide average now at 135 credits, down 10 credits from a decade ago.
o Alumni continue to give the UW high marks on fostering critical thinking, planned learning experiences outside the classroom, and activities that promote good citizenship.
o The number of collaborative academic programs continues to grow and extend educational opportunities to more students.
Ms. Wilhelm pointed out that budget and enrollment pressures have forced UW institutions to make difficult compromises. For example, the number of adult, nontraditional students has declined for the fourth year in a row, while the UW has preserved access for students right out of high school.
In conclusion, Ms. Wilhelm called attention to the institutional accountability reports that accompanied the systemwide report. These reports showed how each institution performed on four common measures: enrollment, retention/graduation rates, student involvement, and credits-to-degree. They also reflected measures specific to particular institutions.
President Reilly added that the campus reports showed the niches filled by individual institutions. These include serving nontraditional and transfer students, preparing students for professional careers, and providing opportunities for undergraduate research, service learning, civic engagement, and interdisciplinary study.
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Growth Agenda for the UW System
President Reilly advised that goals and measures were being developed to guide planning for an accelerated growth agenda, many of which were already part of what is measured by the Achieving Excellence accountability report. Two major metrics were being considered, with several objectives under each one.
First, a successful Growth Agenda would increase the number of bachelor’s degrees awarded by the UW System. In an environment of flat high-school graduation numbers and tuition that is likely to continue rising, it would be necessary to enroll more students from low-income families who might be tempted to give up on college. The Wisconsin Covenant would help to make that happen.
It also would be necessary to enroll more adult and nontraditional students through such programs as the Adult Student Initiative and other efforts resulting from the work of the Committee on Baccalaureate Expansion. The UW also would need to retain and graduate more students and to increase the number of graduates in areas of high state need, like nursing, science, mathematics and engineering.
To award more degrees, it would be necessary to achieve a second goal – growing financial capacity to support more student enrollments and open the UW’s doors far and wide.
Growing enrollment in a way that maintains educational quality means increased state support per student. Currently, it is $1,228 below the national average.
It will be important, he emphasized, to work with partners in state government and the Legislature to make sure there are no more cuts to state tax support of the UW and that there is reinvestment in strategic areas for the future.
The UW will move forward with the decision to increase Wisconsin resident enrollment by using additional revenues collected from more out-of-state students attracted to UW campuses by more competitively priced tuition.
The Board will be asked to support UW campuses as they develop creative ways to help achieve the growth needed to move the state forward.
In addition, financial aid would need to be increased, in connection with the Wisconsin Covenant. Hard choices would need to be made to invest in what will move the state forward, financial aid certainly being one of those investments.
Finally, President Reilly asked the Regents to talk about the Achieving Excellence report with their legislative partners and others. The report also will be shared with provosts, admission officers, public information officers, and institutional researchers at all UW institutions. Copies also will be provided to colleagues in the K-12 and Technical College System, as well as with the Governor, all legislators, the congressional delegation and reporters. In addition, it will be available to the public through the UW website at Wisconsin.edu.
In discussion following the presentation, Regent Davis expressed concern about affordability. While college expenses in Wisconsin consumed 19% of an average household income, compared to the national average of 25%, the figure represents growth of 3.9% over five years. Importantly, she pointed out, for low-income families, the figure is 33%.
While the accountability report is a helpful self-management document, she noted that it does not answer many “why” questions, especially in closing gaps for students of color. In that regard, she indicated that initiatives like the Equity Scorecard need also to be reviewed by the Board to help answer those kinds of questions.
Regent Salas pointed out that first-to-second year retention rates for new freshmen of color had increased, but only slightly – from 74% to 74.6%. Retention rates were highest for Asian American, but lower for others, with African Americans at 70%. While the six-year graduation rate for students of color was 56.8%, for African Americans it was only 31% and less than 50% for Latinos and Native Americans. Asking what could be done to improve these figures, he felt that progress in this regard should be included in chancellors’ annual evaluations.
President Reilly agreed and indicated the progress on these measures is discussed regularly with the chancellors and others. He concurred with Regent Davis that the Equity Scorecard is an effective way to determine what should be done to improve the situation so that resources can be targeted accordingly.
Regent Smith asked why the number of nontraditional students had decreased by nearly 10,000 in the past ten years and what could be done to better serve this population.
President Reilly explained that, as resources were cut back, campuses tended to focus more on traditional students because nontraditional students require different courses and services that cost more money. He thought that initial grants resulting from the Committee on Baccalaureate Expansion report would be helpful in expanding access to nontraditional students. Other efforts include the Adult Student Initiative and recognition of credit for experiential learning.
Regent Pruitt observed that good advising is integral to seamless transfer and expanding baccalaureate degrees. He suggested that a priority be placed on making improvements in that area.
In that regard, President Reilly noted that when UW campuses were directed not to cut instruction during recent budget reductions, they took money from other areas, including advising. Reinvestment in the UW would permit more to be done to enhance this important service.
Interim Chancellor Van Kekerix added that the easiest way to increase numbers of degrees awarded is to serve more people with similar backgrounds. Noting that adult students are more diverse than traditional students, he explained that they require more and different courses and advising, attention to their family constraints, and alternative course delivery methods. Through the Adult Student Initiative, UW-Extension and the UW Colleges were working to provide more aggressive advising to adult students.
Senior Vice President Marrett added that the Education Committee was to hear a presentation on how technology can help to identify students at risk and enhance learning.
Chancellor Markee noted that some campuses are more focused on traditional students than others, in part based on location. He felt that distance learning is an important answer to the question of improving service to nontraditional students, and he cautioned that younger traditional students also need advising and other services that have suffered cuts in recent years.
Provost Rita Cheng said that, at UW-Milwaukee, deans are informed when advising in their areas rates low in senior surveys. The university found its freshman advising to be better than the national average; however, in the schools and colleges the ratio students per advisor has been running from 300 – 500 students to one advisor.
Chancellor Keating noted that at UW-Parkside 20% of the students are over 25 years old. The key to serving them, he commented, is to provide courses when and where they want, which to some extent decreases the course availability for traditional students. Noting that advisors were included as administrative employees in the Legislative Audit Bureau report, he said the campus does not have the number of advisors that students need.
Regent Loftus commented that increasing university graduates would not necessarily increase the number of baccalaureate degree holders in the state. While more than 80% obtain employment in Wisconsin, the numbers leaving the state are not offset by the numbers coming to Wisconsin from other states. He asked if the 80% figure included Minnesota reciprocity students, and Ms. Wilhelm replied that it included only Wisconsin residents. In response to a further question by Regent Loftus, she indicated that a large proportion of those leaving the state go to the Chicago and Twin City areas.
Noting that the proportion of students of color graduating from state high schools would increase from 14% to 21% in the near future, he asked if there were any plans to deal with these additional students. In that regard, he noted that Arizona adopted a plan to grow enrollments by more than 40,000, most of whom will be students of color.
President Reilly replied that there are multiple programs in place to work with students of color, the PEOPLE program at UW-Madison being one example. In future years, the Equity Scorecard efforts and the Wisconsin Covenant should help in providing access and services to students of color.
Chancellor Wells noted that UW-Oshkosh has been using differential tuition to enhance advising and other student services. The result has been improved retention and graduation rates and significant closing of gaps between students of color and other students. To make them most effective, services are customized to the needs of different students.
Chancellor Shepard indicated that Green Bay is growing rapidly as an urban area and the number of people of color is increasing. It is important for the university to help to raise the aspirations of these young people.
Chancellor Santiago pointed out that federal funding for pre-college programs is in jeopardy. These programs, he commented, are very important in encouraging young people to pursue higher education.
Regent Loftus commended UW-Parkside for its success in expanding services to more effectively serve nontraditional students.
In response to a question by Regent Connolly-Keesler, Ms. Wilhelm indicated that the study showing that 80% of state residents find employment in Wisconsin after graduation was done in 2001.
Regent Crain suggested that a cover letter be added to the report when distributing it to legislators and others that would set forth some of the key points.
Regent Salas asked if campuses making the most successful impact on students of color could receive special funding.
President Reilly indicated that the Integrated Planning Group has been looking at such issues. In addition, the Equity Scorecard will analyze how to close the gaps, so that resources can be directed most effectively.
Regent Davis remarked that, while pre-college programs are thought to increase subsequent enrollments of participants, there did not seem to be evidence of a direct link. Ms. Wilhelm replied that efforts are under way to track pre-college participants to find out whether they went to college and in which institutions they enrolled. While exact numbers had not yet been captured, the programs are known to be successful.
The discussion concluded and the meeting was adjourned at 12:25 p.m., upon motion of Regent Pruitt, seconded by Regent Rosenzweig.
Submitted by:
_________________________
Judith A. Temby, Secretary
G:regents/minutes/March09,2006BOR(Thur).doc
MINUTES OF THE REGULAR MEETING
of the
BOARD OF REGENTS OF THE UNIVERSITY OF WISCONSIN SYSTEM
Madison, Wisconsin
UW-Madison
Held in 1820 Van Hise Hall
Friday, March 10, 2006
9:00 a.m.
- President Walsh presiding -
REPORT OF THE PRESIDENT OF THE BOARD
Appearance before Legislative Committee
Legislative Audit Bureau Report on Felons
Status of Proposed Disciplinary Process Rules
Report on the February 24, 2006 Meeting of the Higher Education Aids Board
Report on the February 28, 2006 meeting of the Wisconsin Technical College System Board
Report on the March 8, 2006, meeting of the Hospital Authority Board
REPORT OF THE PRESIDENT OF THE SYSTEM
Outstanding Women of Color in Education Awards
President’s Council on Diversity
Recognition of the Passing of Professor Nellie McKay
Regent Burmaster Honored with Award
REPORT OF THE BUSINESS AND FINANCE COMMITTEE
Washington Update and Impact of President Bush’s Budget
Trends in Gifts, Grants, and Contracts
UW-Milwaukee School of Architecture and Urban Planning Differential Tuition
UW-La Crosse: A Growth and Access Agenda
Quarterly Status Update: Operations Review and Audit
Energy Conservation at UW-River Falls
Voting of 2006 Non-Routine Proxy Proposals
Follow-Up Discussion of Taxpayer Protection Amendment
Committee on Colleges and Universities Hearing
Voting of 2006 Non-Routine Proxy Proposals
UW-Milwaukee School of Architecture and Urban Planning Differential Tuition
REPORT OF THE EDUCATION COMMITTEE
UW-Madison: Program Authorization – M.S. in Agroecology
UW-Stout: Program Authorizations – B.S. and M.S. in Information and Communication Technologies
Revised Faculty Personnel Rules
UW-Green Bay: Amendments to Faculty Personnel Rules
UW-Oshkosh: Amendments to Faculty Personnel Rules.
University of Wisconsin System Policy on the Role of Resident Assistants in Residence Halls
Initial Report of the UW System Waukesha Study
Authorization to Recruit a Chancellor for UW-La Crosse
Report of the Senior Vice President
Use of Technology to Increase Student Access.
UW-Madison: Program Authorization (Implementation) M.S. in Agroecology
UW-Oshkosh: Amendments to Faculty Personnel Rules.
UW-La Crosse: Authorization to Recruit: Chancellor
UW-Green Bay: Amendments to Faculty Personnel Rules
University of Wisconsin System Policy on the Role of Resident Assistants in Residence Halls
REPORT OF THE PHYSICAL PLANNING AND FUNDING COMMITTEE
UW-Madison: Camp Randall Stadium Expansion/Renovation Budget Adjustment
UW-Madison: Authority to Plan the Warehouse Remodeling Arts Relocation Project
UW-Platteville: Authority to Purchase the Newly Constructed Southwest Hall
UW-Stevens Point: Authority to Convey Property
UW-Stout: Authority to Acquire Property
UW System: Authority to Construct Facility Maintenance and Repair Projects
Revised Policy Related to Naming or Dedicating University Facilities
Report of the Assistant Vice President
UW-Madison: Authority to Adjust the Budget of the Camp Randall Stadium Project
UW-Madison: Authority to Plan the Warehouse Remodeling Arts Relocation Project
UW-Platteville: Authority to Purchase the Newly Constructed Southwest Hall
UW-Stevens Point: Authority to Convey Property
UW-Stout: Authority to Acquire Property
UW System: Authority to Construct Facility Maintenance and Repair Projects
UW System: Adoption of Revised Policy Related to Naming or Dedicating University Facilities
UNFINISHED OR ADDITIONAL BUSINESS
Request for Reconsideration of UW-Whitewater Running Track Replacement Project
MINUTES OF THE REGULAR MEETING
of the
BOARD OF REGENTS OF THE UNIVERSITY OF WISCONSIN SYSTEM
Madison, Wisconsin
UW-Madison
Held in 1820 Van Hise Hall
March 10, 2006
9:00 a.m.
- President Walsh presiding -
PRESENT: Regents Axtell, Bradley, Connolly-Keesler, Crain, Davis, Loftus, Pruitt, Randall, Rosenzweig, Salas, Semenas, Smith, Spector, and Walsh
UNABLE TO ATTEND: Regents Burmaster, Gracz, and McPike
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The minutes of the February 9 and 10, 2006 meetings were approved as distributed, upon motion by Regent Axtell, seconded by Regent Crain.
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REPORT OF THE PRESIDENT OF THE BOARD
Appearance before Legislative Committee
Regent President Walsh reported that he had appeared before the Assembly Committee on Colleges and Universities to speak about the Board’s decision to lower nonresident tuition to a more competitive level in order to attract more students and increase revenues that would be used to provide greater access for Wisconsin resident students. There was support among committee members for the board’s action, which they considered a good business decision. A bill that had been introduced to cap chancellors’ salaries and to maintain nonresident tuition at current levels was voted on by the committee and failed to pass.
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Legislative Audit Bureau Report on Felons
Noting that this was part of an audit requested by President Reilly, Regent President Walsh reported that the university already was working to implement the recommendations made in the audit. With regard to performing criminal background checks, consultations were under way with the Office of State Employee Relations to see if some uniformity among the university and state agencies would be possible.
The audit showed that 40 felons were employed in the UW System as of last fall. Of that number, 28 remained employed at this time. Investigations at all of the institutions except UW-Madison had been completed and showed no relationship between the crime and the employees’ current duties. UW-Madison investigations were expected to be completed in the next week.
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Status of Proposed Disciplinary Process Rules
Referring to proposed rules to reform the disciplinary process for faculty and academic staff, Regent Walsh called on Regent Spector, Chair of the committee that proposed the rules, for a progress report.
Regent Spector indicated that the proposed rules had been sent to governance groups at each UW institution for input in accordance with the shared governance process. Comments were to be returned to the committee in April, and the committee planned to bring a recommendation to the Board of Regents at the May meeting.
Regent Spector had met with the Faculty Representatives who pointed out some concerns and need for clarification and a memorandum had been sent providing the requested clarification. He also met with the UW-Madison Faculty Senate. UW-Madison Professor Walter Dickey, a member of the committee, participated in the meeting and explained the rationale and need for the proposed rules. The Senate passed a motion setting expressing its objections and returned the matter to the University Committee to set them forth more specifically.
In response to a question by Regent Smith, Regent Spector explained that the objections included concern that the proposed rules would undermine academic freedom and tenure; concern that that the standard should be clear and convincing evidence, rather than preponderance of evidence; and concern about the requirement for self-reporting conviction of a felony.
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Report on the February 24, 2006 Meeting of the Higher Education Aids Board
A written report on that meeting was provided.
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Report on the February 28, 2006 meeting of the Wisconsin Technical College System Board
A written report of that meeting was provided.
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Report on the March 8, 2006, meeting of the Hospital Authority Board
A written report of that meeting was provided.
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REPORT OF THE PRESIDENT OF THE SYSTEM
Outstanding Women of Color in Education Awards
President Reilly reported that 16 remarkable women were honored with the 2006 Outstanding Women of Color in Education Awards. For 11 years, each institution has nominated an individual to receive this award. The awards go to UW faculty, staff, students, or community members who make significant contributions to diversity and who advance the status of women within the university. The awards honor the commitment to improve the status and climate for women, especially women of color and to achieve the goals set forth in Plan 2008.
The recipients of the award foster positive changes at their UW institution, garner support for their work, mentor others, and demonstrate an understanding of the connections among family, community, and culture in the lives of women of color.
The UW System’s nominee, Vicki Washington, Interim Assistant Vice President for Academic Diversity and Development, directs Plan 2008 efforts, helped establish the President’s Council on Diversity, and is working with campuses on the Equity Scorecard pilot program. President Reilly noted that the UW benefits greatly from her extensive experience, including work in the areas of civil rights, diversity and multicultural change, facilitation, conflict resolution, employee relations and human resources.
He congratulated Ms. Washington and all of this year’s award recipients.
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President’s Council on Diversity
President Reilly reported that the President’s Council on Diversity held its first meeting in the past month. The 17-member council is chaired by Cory Nettles, former state head of economic development and currently an attorney with Quarles and Brady. At its first meeting, the council set the compass for its work this year.
The President planned to look to the council for advice on how to advance projects already in place, as well as for guidance about what strategies might be employed to maximize student and workplace diversity. One of those efforts, the Equity Scorecard, is a tool that institutions can use to identify what steps they need to take to achieve equity and excellence for all students on campus.
Regent Davis, a member of the Council remarked that the first meeting was an exciting time and noted the membership’s diversity in terms of race, ethnicity, geography, age, perspective and professional background. She commended President Reilly, Senior Vice President Marrett, and Assistant Vice President Washington for putting together an excellent group of people.
The charge of the Council, she explained, is to advance the work of current initiatives, to help define strategic actions and priorities, and help the university to become an inclusive, diverse environment. Specific priorities include maximizing student diversity, building workplace diversity, enhancing efforts to promote diverse perspectives, advancing economic growth and vitality across the state, and enabling the UW to be a national leader and champion for diversity in all of its dimensions.
In maximizing student and workplace diversity, the Council wants to facilitate a statewide discussion about the value of diversity and review campus commitments to diversity and progress to date. The intention is to create a value proposition both internally and externally and to communicate the good news around the state and nationally. The focus, she said, is “not just on counting heads, but making all heads count.” The Council wants to share best practices and continue to raise the bar at all UW institutions.
The strategy to enhance diverse perspectives strategy would involve reaching out to all stakeholders and gathering feedback to help articulate the value added by diversity and identifying other states, communities and institutions where incorporating diversity has added to economic growth.
As to achieving national leadership, the Council wants the UW to be viewed as a national leader in terms of diversity in higher education and the “go to” place for leadership expertise in that area.
Finally, the Council wants to ensure that all of the campuses articulate and disseminate visible commitment to diversity in their mission statements and are held accountable for results.
With regard to the Equity Score Card, Regent Davis reported that she had participated in recent workshops and was impressed with the enthusiasm of the teams from the institutions that volunteered to pilot this initiative. The level of commitment from the leadership of the institutions is outstanding and participation by campus faculty, students and staff is excellent.
The process, she explained, is about learning by inquiry what the problem is and what might be the solution. From the very beginning, it changes the mindset by leading to discovery of why the problem exists and what is in the way of solving it.
Commending the six pilot institutions for stepping forward, she thought the process is one that would be replicated throughout the system. She promised the teams that the Board would be patient and supportive of the process throughout its 12 to 14 month timeframe.
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Noting that Indiana has had success with a program similar to the proposed Wisconsin Covenant, President Reilly reported that three UW staff, accompanied by Chancellor Wells, had traveled to Indianapolis to learn more about that program, President Reilly asked Chancellor Wells to share some observations from their experience.
Chancellor Wells indicated that Sharon Wilhelm, Freda Harris, Bob Jokish and he learned a lot from Commissioner Stan Jones and his staff. In addition, he went to a regional support center and obtained considerable information from that source as well. They asked what Indiana did and would do differently based on 16 years of experience with the 21st Century Scholars Program. Key points included the following:
o Tracking of students is important, using e-transcripts or the like.
o It is necessary to have a support component in the high schools, as well as a parent program.
o Continuing support is needed for students while they are in college.
o A good college preparatory curriculum is important for all participants.
o Regional support centers are needed.
o Indiana employs a free and reduced lunch criterion for eligibility.
o The citizenship component of the program operates on an honor system.
In conclusion, Chancellor Wells said that staff would continue working on possible components of such a program for Wisconsin and would bring results back to the board.
In response to a question by Regent Davis, Chancellor Wells explained that regional support centers promote the program, work with parents, host summer programs on campus for middle school students, and provide information about the program.
Regent Pruitt inquired about academic eligibility for the program, to which Chancellor Wells replied that the requirement in Indiana is a 2.0 GPA, which, along with a good curriculum, allows students to be successful. The program applies to all post-secondary education, including technical colleges and private institutions.
In reply to a question by Regent President Walsh, he indicated that the amount of support is equal to tuition at the University of Indiana-Bloomington plus $1,000.
Noting that on six UW campuses, the student population is more than 60% female, Regent Loftus asked about the Indiana experience in terms of gender. Indicating that staff would look into that question, Chancellor Wells observed that helping to close the gender gap could be an outcome of such a program.
In response to a question by Regent Rosenzweig, Chancellor Wells indicated that Commissioner Jones had expressed willingness to come to Wisconsin to work with staff, and talk with the board and state officials. Regent Rosenzweig thought that his presence would help build momentum for the program.
Regent Crain inquired about how the citizenship portion of the pledge is made meaningful without eliminating those who deserve a chance. Chancellor Wells replied that part of the duties of the regional center is to promote good citizenship among participants.
In response to a question by Regent Davis about timing for next steps, Ms. Harris replied that UW staff were to meet in April with staff of the Department of Public Instruction. The timeframe would be to return the matter to the board at the May meeting with suggestions as to what a basic program might look like. The board then could decide when to invite Indiana program leaders to come to Wisconsin.
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Recognition of the Passing of Professor Nellie McKay
Regent Salas recognized the recent passing of Nellie McKay, distinguished professor of African American Studies at UW-Madison, who published a highly regarded anthology of African American literature. Such programs, he pointed out, are small, often having fewer than six faculty, but nonetheless make great contributions to teaching and knowledge.
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Regent Burmaster Honored with Award
President Reilly congratulated Regent Burmaster who was in Chicago to receive the Senator Paul Simon Award for Outstanding Advocacy for World Languages and International Studies. The award is given to an individual or group from outside the language teaching profession who has been a leader in promoting language learning and international understanding. Regent Burmaster helped found a statewide International Education Council, in which the UW is a strong partner and on which Regent Axtell serves as a member.
In April Regent Burmaster and President Reilly would host a delegation of French school officials and sign a memorandum of understanding for PK-16 educational exchanges.
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REPORT OF THE BUSINESS AND FINANCE COMMITTEE
Regent Pruitt, Chair, presented the committee’s report.
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Washington Update and Impact of President Bush’s Budget
Kris Andrews, Assistant Vice President for Federal Government Relations, discussed the dramatic reduction in the proportion of the federal budget available for discretionary spending over the past 40 years. Reviewing potential budget impacts of the President’s budget proposal, she identified areas of concern as substantial cuts to Department of Education programs and cuts to entitlement programs, which will likely create additional stress on state budgets as those costs are shifted to the states. She encouraged the board to advocate for basic infrastructure support from the state to be used to leverage additional federal resources, especially on the comprehensive campuses.
Trends in Gifts, Grants, and Contracts
Vice President Debbie Durcan reported that gift, grant, and contract awards to UW institutions have more than doubled in the nine-year period from 1996-97 through 2004-05. All institutions enjoyed considerable growth over that period.
Martin Cadwallader, Dean and Vice Chancellor for Research in the UW-Madison Graduate School, noted that the institution is consistently ranked among the top five or six universities in the nation in terms of federal research dollars awarded. Responding to concerns regarding the decrease in total awards through December 2005 when compared to the previous year, he explained that most of the decrease is due to timing as some awards are expected later in the year.
Dean Cadwallader predicted level funding for fiscal year 2006 and hoped that the university would successfully compete for some of the growth in National Science Foundation funding. He cautioned that the university could lose its competitive edge if key faculty cannot be retained. He also noted the economic impact of federal grants, as they have a multiplier effect to three to four.
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UW-Milwaukee School of Architecture and Urban Planning Differential Tuition
Bob Greenstreet, Dean of the School of Architecture and Urban Planning, reported that the proposal is to replace a laptop computer fee currently assessed to students in the school with a differential tuition that would support more powerful desktop computers, software, and support services.
The initiative would better serve students by allowing them to work in the same high-performance computing environment that they will see in the workplace after graduation and would cost most students less than the flat fee.
The committee approved the resolution authorizing the differential tuition for inclusion in the consent agenda.
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UW-La Crosse: A Growth and Access Agenda
Regent Smith introduced the UW-La Crosse growth and access idea, noting that the strategy has broad support from the community, including business leaders, local legislators, and the mayor.
Chancellor Hastad presented an initiative designed to increase overall enrollments; access for lower-income students; regional, socio-economic and ethnic diversity; and retention and graduation rates. At the same time, the initiative would provide additional funding to support higher quality instruction.
Committee members raised several questions about the idea and were advised that other ideas would be provided by other institutions over the coming months. The board then will decide which ones to include in the 2007-09 biennial budget request.
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Quarterly Status Update: Operations Review and Audit
Ron Yates, Director of the Office of Operations Review and Audit, discussed the status of recently completed and ongoing projects, including 1) Police and security operations; 2) Early return to work efforts; 3) Oversight of student organizations; 4) Segregated fees; 5) Tuition waivers; and 6) Academic fees.
Mr. Yates presented information on audit activities, plans and resources at both the system and institutional levels. The committee requested that the segregated fee audit be presented in May, prior to approving segregated fee increases in June. Regent Randall asked for a review of academic performance of student athletes, including appropriate accountability.
Energy Conservation at UW-River Falls
The regents had received a letter on energy conservation from Nick Cluppert, the UW-River Falls Student Senate President, in response to which Regent Pruitt invited Chancellor Betz and Mr. Cluppert to speak to the committee about the UW-River Falls efforts.
Chancellor Betz briefly discussed energy conservation efforts, remarking that it is part of the campus culture to “turn out the lights.” Mr. Cluppert talked about the students’ initiatives, including dedication of $1 million of a new building project to ensure that the facility is eco-friendly. The building uses multiple strategies to be more energy efficient, including enhanced use of sunlight, natural materials, and white roofing material.
Mr. Cluppert commented on actions taken during winter break to save energy, including reduction of building open hours and lowering temperatures. He challenged all campuses to take steps to reduce energy consumption. Committee members were impressed by the initiatives and efforts by the UW-River Falls community to conserve energy.
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Voting of 2006 Non-Routine Proxy Proposals
Tom Reinders, investment portfolio analyst, asked the committee to approve the voting of 2006 non-routine proxy proposals. Investment managers would be directed to vote in the affirmative for most of the proxies related to dominant social issues, as they fall under themes that the committee already had approved for voting. There were no new social issues or themes identified for the 2006 season.
The committee approved a resolution on this matter for inclusion in the consent agenda.
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Follow-Up Discussion of Taxpayer Protection Amendment
The committee briefly discussed the proposed Taxpayer Protection Amendment. In response to a question by Regent Loftus, Vice President Durcan pointed out language in the amendment that specifically excludes tuition.
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Legislative Audit Bureau Report on Felons
Vice President Durcan reported that the Legislative Audit Bureau issued its letter report on felons on the UW System payroll on February 28th. The committee suggested that a response be provided from the Regent President to the recommendations made by the LAB.
In discussion at the board meeting, Regent Rosenzweig asked if Regent Walsh would be amendable to sending such a letter; and he replied in the affirmative.
The committee was advised that legislation to expand veterans’ remissions from 50% to 100% was amended so that the expanded benefits would be effective for students who enroll for classes in the 2007-08 academic year. This would give the Legislature the opportunity to provide funding for this expanded program in the 2007-09 biennial budget. Current estimates of the impact of the existing remissions for both the fall and spring semester totaled over $4 million. The expansion to 100% is estimated to add another $2.5 million to the cost.
Regent Pruitt commended the UW campuses for excellent work in providing remissions in the current budget and expressed the hope that more funding could be obtained for the future.
Committee on Colleges and Universities Hearing
Vice President Durcan advised that Associate Vice Presidents Al Crist and Freda Harris testified earlier in the week at a hearing of the Committee on Colleges and Universities on Assembly Bill 1068, which would preclude the board from raising salaries of certain executive and administrative positions beyond 5% unless the increase were funded with gifts, grants, or federal revenue, and preclude the board from reducing undergraduate nonresident tuition below the 2005-06 level. The bill failed in committee with three in favor and nine in opposition.
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Regent Pruitt moved adoption by the Board of Regents of Resolutions 9139 and 9140 as consent agenda items, and the motion was seconded by Regent Randall.
At the request of Regent Salas, Resolution 9139 was removed from the consent agenda.
The question was put on Resolution 9140, and it was adopted on a unanimous voice vote.
Voting of 2006 Non-Routine Proxy Proposals
Resolution 9140: That, upon recommendation of the President of the University of Wisconsin System, the non-routine shareholder proxy proposals for UW System Trust Funds, as presented in the attachment, be voted in the affirmative.
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UW-Milwaukee School of Architecture and Urban Planning Differential Tuition
Adoption of the following resolution was moved by Regent Randall and seconded by Regent Davis
Resolution 9139: That, upon the recommendation of the President of the University of Wisconsin System and the Chancellor of the University of Wisconsin–Milwaukee, the Board of Regents approves the use of differential tuition for undergraduate and graduate students enrolled in the architecture program within UW-Milwaukee’s School of Architecture and Urban Planning. Differential tuition will be assessed at:
o $11 per credit hour for all Department of Architecture courses, and
o An additional $30 ($41 total) per credit hour for all Department of Architecture courses at the 200-800 levels.
Expressing opposition to the resolution, Regent Salas recalled that regents had stated concern on previous occasions about differential tuition being used to cover what should be paid by GPR.
Regent Rosenzweig explained that students currently spend $525 in a flat fee. Under the proposal, they would pay for actual use of the equipment, which would be more flexible and cost less for most students.
While he agreed with Regent Salas that such costs should be paid with GPR, Regent Axtell noted that state funds are not available and that high-cost programs need more money. Under the circumstances, he felt there would be no viable alternative to tuition funding.
Regent Randall agreed that such actions put the university on a slippery slope toward more and more use of student funds. He cautioned that it would be necessary to remain vigilant and perhaps to deny approval of student funding at some point.
The question was put on Resolution 9139, and it was adopted on a voice vote, with Regent Salas voting in opposition.
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REPORT OF THE EDUCATION COMMITTEE
Regent Davis, Vice Chair, presented the committee’s report.
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Appointment to the Oversight and Advisory Committee of the Wisconsin Partnership Fund for a Healthy Future
Regent Emeritus Pat Boyle, the board’s liaison to the Oversight and Advisory Committee (OAC) joined the meeting to provide background information and explain the process by which the appointment recommendation was decided.
The OAC was created to oversee use of funds allocated for public health, as stipulated by the Wisconsin Insurance Commissioner’s Order upon the transfer of the Blue Cross/Blue Shield money to the UW School of Medicine and Public Health. When Blue Cross/Blue Shield converted to a for-profit company, it gave $300 million each to the UW School of Medicine and to the Medical College of Wisconsin as proceeds from the sale of its stock.
The Insurance Commissioner’s Order stipulated the composition of the OAC and how members would be chosen. Noting that the process was followed assiduously, Regent Davis said that the resulting nomination was for an exceptionally accomplished urban community health advocate named June Martin Perry who is very well respected both locally and nationally.
The Education Committee felt strongly that the process worked well and resulted in the appointment of a highly qualified addition to the OAC. The committee was advised that Mayor Barrett and Chancellor Santiago also concurred in the selection.
A resolution approving Ms. Perry’s appointment was approved by the committee for inclusion in the consent agenda.
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Regent Davis noted that the preceding month the board approved a streamlining resolution that reduced the program approval process from two readings to one. The intent was to improve efficiency, while maintaining the board’s stewardship responsibilities for ensuring program quality and overseeing system-wide program array.
UW-Madison: Program Authorization – M.S. in Agroecology
Stating that this is an exciting program in an emerging discipline, Regent Davis reported that committee approved the program for inclusion in the consent agenda.
UW-Stout: Program Authorizations – B.S. and M.S. in Information and Communication Technologies
The Bachelor of Science would be a degree-completion program, offered through distance education, to meet the needs of students from the Wisconsin Technical College System who have Associate of Applied Science degrees and want a baccalaureate degree in order to advance in their careers.
The Master of Science program, also to be offered through distance education, would be designed to meet the needs of working professionals who need an additional degree for advancement.
Committee members raised questions about what kinds of graduates the programs would produce, what Information and Communication Technologies would comprise as an area of study, and how it would be distinguished from other degree programs offered at UW-Stout. There also was concern about the quality of the two programs and the rigor of the curriculum. While there was understanding of the societal need for these kinds of programs in the information technology area, the committee requested more information on how the graduates of the programs would meet those needs.
The committee deferred action on the programs and asked that they be brought back after some additional collaboration between the campus and System Administration so that the questions could be addressed.
In discussion at the Board meeting, Regent Bradley pointed out that campuses were asked to “think outside the box” and develop programs to serve place-bound students. These kinds of offerings, he observed, will look different from standard campus programs.
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Revised Faculty Personnel Rules
UW-Green Bay: Amendments to Faculty Personnel Rules
The proposed rule revisions would clarify that any complaint against a faculty member would be considered by the chancellor for possible referral to the Committee on Rights and Responsibilities before any disciplinary action is taken and that any disciplinary action would be taken by the chancellor, not the dean.
The committee approved the amendments for inclusion in the consent agenda.
UW-Oshkosh: Amendments to Faculty Personnel Rules
The revisions proposed a new policy on emeritus faculty, a component previously not included in the personnel rules.
The committee approved the proposed amendments for inclusion in the consent agenda.
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University of Wisconsin System Policy on the Role of Resident Assistants in Residence Halls
President Reilly recommended the policy, which was developed with the help of a working group of residence hall staff and students from around the system.
Assistant Vice President Larry Rubin, who chaired the working group, joined the committee to explain what went into their deliberations. The group was mindful that a resident assistant’s room functions as both an office and a campus home, and resident assistants are considered “on call” almost any time they are in their room or assigned residence hall. They are responsible for creating an open, inclusive and supportive environment for residents.
The policy is intended to balance the responsibilities that resident assistants have as university employees with the opportunities offered to them on campus as students themselves.
However, resident assistants cannot use their position to pressure, coerce, or inappropriately influence residents to attend meetings. The proposed policy was amended at the suggestion of Regent Spector to clarify that no kind of coercion or pressure is appropriate.
The committee discussed several additional points, including the fact that campuses would be required to include information about the policy when training new resident assistants and that each campus would need to develop a written process through which students could complain if they believed the policy was being violated.
The committee commended President Reilly, Larry Rubin, and all those who worked to develop the policy for their thoughtfulness and professionalism in facing a sensitive topic.
The policy was approved by the committee for inclusion in the consent agenda.
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Initial Report of the UW System Waukesha Study
Executive Senior Vice President Don Mash presented initial findings from the steering group that has been studying higher education needs, expectations, and opportunities in the Waukesha and greater Milwaukee areas. The group included officials from the UW System, the Board of Regents, and executive leadership from UW-Milwaukee, UW-Waukesha, and UW-Extension.
The group has been working with Waukesha area leaders to study educational and economic development needs, with the goal of adding value to the metropolitan area and the state. Waukesha County has high demand for education, research and training in areas like science, technology, engineering, sales, and nursing.
The committee heard from two of those leaders – Waukesha County Executive Dan Vrakas and Bronson Haase, from the Waukesha County Action Network, who presented some of their ideas.
Dr. Mash identified four goals on which the UW might work with its county partners to serve the area: 1) providing gateway programs to the baccalaureate degree; 2) providing noncredit education and training; 3) expanding bachelor’s degree offerings; and 4) expanding graduate study opportunities.
He also noted that a research center of excellence was being discussed, although sources of funding for such a center remain in question.
It was clear to the committee that the steering group assigned to study this challenging topic is on track and that they are moving forward in a collaborative process. Conversations and collaboration will continue, and the board will receive a final report at some point in the near future.
In discussion at the Board meeting, Regent Loftus said that he would ask for information on the steps it would take to make UW-Waukesha a four-year campus.
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Authorization to Recruit a Chancellor for UW-La Crosse
The committee noted with regret that Chancellor Hastad would be leaving the UW to become president of Carroll College. A resolution authorizing recruitment of a successor was approved for inclusion in the consent agenda.
In discussion at the Board meeting, Regent Bradley noted that it is disruptive to a campus when a chancellor leaves. He thanked Provost Hitch for stepping up and agreeing to lead UW-La Crosse on an interim basis.
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Report of the Senior Vice President
Regent Spector, Chair of the Committee on Faculty and Academic Staff Discipline Process, described input being gathered from shared governance groups around the system on proposed administrative rules in UWS Chapter 7. He has met personally with several governance groups and has found the exchanges very informative.
Use of Technology to Increase Student Access
The committee heard a presentation by Associate Vice president Ed Meachen, with help from UW-Milwaukee and other campuses, on the use of technology to improve access.
Mr. Meachen outlined the growth of the UW’s technology infrastructure to support alternative methods for delivering instruction and described how that infrastructure can enhance both student access and success. He also elaborated on the potential of this technology to achieve many of the goals of President Reilly’s Growth Agenda.
The committee also heard from UW-Milwaukee Provost Rita Cheng and instructor Andrew Petto on an early warning system used on that campus to identify at-risk students through the university’s course management system. This innovative use of technology integrates classroom instruction with advising and other student support services in order to improve the performance and retention of at-risk freshmen. Data shows that improvements have been made as a result of this project.
Mr. Meachen noted that UW information technology leaders have much to contribute to the Growth Agenda as it moves forward.
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Regent Davis presented Resolutions 9141 – 9146 as consent agenda items and moved their adoption by the Board of Regents. The motion was seconded by Regent Axtell.
At the request of Regent Randall, Resolution 9145 was removed from consent agenda; and at the request of Regent Semenas, Resolution 9143 was removed.
The question was put on Resolutions 9141, 9142, 9144, and 9146; and they were adopted on a unanimous voice vote.
UW-Madison: Program Authorization (Implementation) M.S. in Agroecology
Resolution 9141: 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 implement the M.S. in Agroecology.
Resolution 9142: That, upon 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 appointment of June Martin Perry to the UW School of Medicine and Public Health Oversight and Advisory Committee to fill the unexpired term of a public member, which ends in October, 2008.
UW-Oshkosh: Amendments to Faculty Personnel Rules
Resolution 9144: That, upon recommendation of the Chancellor of the University of Wisconsin-Oshkosh and the President of the University of Wisconsin System, the Board of Regents approves the amendments to the UW-Oshkosh Faculty Personnel Rules.
UW-La Crosse: Authorization to Recruit: Chancellor
Resolution 9146: That, the President of the University of Wisconsin System be authorized to recruit for a Chancellor of the University of Wisconsin-La Crosse, at a salary within the Board of Regents salary range for university senior executive salary group three.
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UW-Green Bay: Amendments to Faculty Personnel Rules
Adoption of Resolution 9143 was moved by Regent Smith and seconded by Regent Connolly-Keesler.
Resolution 9143: That, upon recommendation of the Chancellor of the University of Wisconsin-Green Bay and the President of the University of Wisconsin System, the Board of Regents approves the amendments to the UW-Green Bay Faculty Personnel Rules.
Regent Semenas inquired as to the reason for wanting to change the rule. Noting that the Faculty Senate passed the recommended amendment unanimously, Chancellor Shepard remarked that UW-Green Bay faculty wanted to clarify that letters of reprimand that go into a personnel file must follow an established process. The UW process differs somewhat from that at other universities by involving the chancellor at the beginning of the process as well as being the final decision maker.
The question was put on Resolution 9143 and it was adopted on a unanimous voice vote.
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University of Wisconsin System Policy on the Role of Resident Assistants in Residence Halls
Adoption of Resolution 9145 was moved by Regent Crain and seconded by Regent Smith.
Resolution 9145: That, upon recommendation of the President of the University of Wisconsin System, the Board of Regents approves the following, UW System Policy on the Role of Resident Assistants in Residence Halls:
Resident Assistants (RAs) are expected to work with student residents to create an open, inclusive, and supportive residential community. At the same time, because RAs are students themselves, they are encouraged to participate in campus activities and organizations. As such, RAs may participate in, organize, and lead any meetings or other activities, within their rooms, floors or residence halls, or anywhere else on campus, to the same extent as other students. However, they may not use their positions to pressure, coerce, or inappropriately influence student residents to attend or participate.
Regent Randall asked who would decide what constitutes pressure or coercion, to which President Reilly replied that each campus would have its own process to looking into any student complaints. The decision was made not to try to define those terms at the system level, but rather to consider individual circumstances. Regent Randall felt that it would be helpful to have some consistency in how they are defined.
Regent President Walsh that the process would work in the same way as in the case of other types of complaints.
Regent Spector did not believe that lack of a more precise definition would be a problem because application of the policy would develop through interchange as occurs in the case of common law. He considered the policy to be a good result.
Regent Davis asked if the board will have the opportunity to review the processes that are developed at the campus level, and President Reilly replied in the affirmative, adding that they also would be reviewed at the system level for consistency.
Regent Crain expressed appreciation for resolution of the issue relating to the role of resident assistants. She believed the policy would be helpful in resolving concerns about this matter.
Regent Salas expressed support for the amendment made at the suggestion of Regent Spector making it clear that coercion and pressure are not appropriate. He noted that resident assistants are not just students, but representatives of the university as well. He asked that the policy be clearly communicated to the resident assistants.
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REPORT OF THE PHYSICAL PLANNING AND FUNDING COMMITTEE
Regent Salas, Chair, presented the committee’s report.
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UW-Madison: Camp Randall Stadium Expansion/Renovation Budget Adjustment
This project requested approval to increase the budget using gift funds to improve circulation and safety due to congestion on the west side of the stadium. Actions would include expanding the concourse and creating cross aisles.
The request was approved for inclusion in the consent agenda.
In discussion at the board meeting, Regent Salas responded to a question by Regent Randall, recalling that in 2004 the Athletic Department had been advised to look for additional gift funds for any further improvements and that this project would be entirely funded with gift monies.
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UW-Madison: Authority to Transfer the Fred A. Ogg Hall Name to the New Residence Hall at 835 West Dayton Street
The name transfer was requested because of the scheduled removal of Ogg Hall and the university’s wish to continue to honor this distinguished scholar and teacher.
The request was approved for inclusion in the consent agenda.
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UW-Madison: Authority to Plan the Warehouse Remodeling Arts Relocation Project
This project would renovate space to be used by art programs for classroom and exhibition space, at a cost of $8.8 million, $4.4 million of which would be from gift funds.
The committee approved the resolution authorizing the project for inclusion in the consent agenda.
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UW-Platteville: Authority to Purchase the Newly Constructed Southwest Hall
This six-story residence hall, which will house 380 students, was built to relieve the existing residence hall space shortage and provide for student population growth due to the Tri-State Initiative. Bonding authority was received in the 2005-07 capital budget. The request was for authorization of $18.7 million in program revenue supported borrowing to purchase the hall and $1.3 million in program revenue supported borrowing to purchase the movable equipment to furnish it.
The committee approved a resolution granting the requested authorization for inclusion in the consent agenda.
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UW-Stevens Point: Authority to Convey Property
This request was for authority to sell the American Suzuki House property, with proceeds to be used to partially meet campus budget reductions. The building housed the American Suzuki Institute from 1979 until completion of the Noel Fine Arts Center remodeling and addition in 2005.
The committee approved a resolution granting the requested authority for inclusion in the consent agenda.
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UW-Stout: Authority to Acquire Property
The request was for authority to purchase property at UW-Stout at a cost of $167,500 in program revenue-supported borrowing and program revenue cash. The land would eventually be developed into a parking lot to meet needs of the north campus. The parking shortage in that area has increased in part because of a new residence hall was built on a former parking lot.
The Committee approved a resolution granting the requested authority for inclusion in the consent agenda.
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UW System: Authority to Construct Facility Maintenance and Repair Projects
This request was for authority to construct various maintenance and repair projects at UW-La Crosse, UW-Madison, UW-Oshkosh, UW-Parkside, UW-River Falls, UW-Stevens Point, and UW-Whitewater at a cost of $7.4 million.
The Committee approved a resolution granting the requested authority for inclusion in the consent agenda.
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Revised Policy Related to Naming or Dedicating University Facilities
This policy revision would shorten the length of time needed to obtain a naming approval.
The committee approved the proposed policy for inclusion in the consent agenda.
In discussion at the board meeting, Regent Axtell inquired about the 5-year waiting period for naming a facility after a person who has been formally associated with the UW or held paid public office. Regent Salas noted that the wording provides some flexibility in that time requirement, and Regent Crain added that this is not a change from existing policy.
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Report of the Assistant Vice President
Assistant Vice President David Miller reported that the Building Commission approved about $98 million for projects at its February meeting, including $22 million in general fund supported borrowing, $57 million in program revenue funding and $9 million in gift and grant funds.
The committee heard an early preview of the 2007-09 capital budget requests from the campuses, asking for more than double the amount of general fund support received in the last capital budget. The board adopted criteria for ranking major GPR projects at the December meeting, and these criteria will be used by the capital planning and budget office to move to the next phase of 2007-09 capital budget planning.
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Adoption by the Board of Regents of Resolutions 9147 – 9154 as consent agenda items was moved by Regent Salas, seconded by Regent Randall and carried on a unanimous voice vote.
UW-Madison: Authority to Adjust the Budget of the Camp Randall Stadium Project
Resolution 9147: That, upon the recommendation of the UW-Madison Chancellor and the President of the University of Wisconsin System, authority be granted to increase the budget of the Camp Randall Stadium Expansion/Renovation project by $350,000 Gift Funds, for a revised total project cost of $109,792,900 ($85,104,900 Program Revenue Supported Borrowing, $11,888,000 Gift/Grant Funds, and $12,800,000 General Fund Supported Borrowing).
UW-Madison: Authority to Transfer the Name Frederick A. Ogg Hall to the New Residence Hall at 835 West Dayton Street
Resolution 9148: That, upon the recommendation of the UW-Madison Chancellor and the President of the University of Wisconsin System, authority be granted to transfer the name Frederic A. Ogg Hall from the current Ogg Hall located at 716 West Dayton Street to the new residence hall located at 835 West Dayton Street.
UW-Madison: Authority to Plan the Warehouse Remodeling Arts Relocation Project
Resolution 9149: That, upon the recommendation of the UW-Madison Chancellor and the President of the University of Wisconsin System, authority be granted to plan the Warehouse Remodeling Arts Relocation Project by requesting the release of $114,200 Building Trust Funds–Planning and the use of $138,200 Gift Funds to prepare preliminary plans and a design report at an estimated project cost of $8,815,000 ($4,375,000 General Fund Supported Borrowing and $4,440,000 Gift Funds).
UW-Platteville: Authority to Purchase the Newly Constructed Southwest Hall
Resolution 9150: That, upon the recommendation of the UW-Platteville Chancellor and the President of the University of Wisconsin System, authority be granted to request authorization of $18,700,000 Program Revenue Supported Borrowing to purchase Southwest Hall upon completion as stipulated in the purchase option of the lease agreement; and request $1,300,000 in Program Revenue Supported Borrowing to purchase the movable equipment to furnish the building. The project was enumerated in the 2005-07 Capital Budget at $20,000,000 Program Revenue Supported Borrowing.
UW-Stevens Point: Authority to Convey Property
Resolution 9151: That, upon the recommendation of the UW-Stevens Point Chancellor and President of the University of Wisconsin System, authority be granted to allow UW-Stevens Point to sell the former American Suzuki Center house and land located at 2101 Main Street, Stevens Point, at a price not less than the average of two appraisals.
UW-Stout: Authority to Acquire Property
Resolution 9152: That, upon the recommendation of the UW-Stout Chancellor and the President of the University of Wisconsin System, authority be granted to acquire the property at 221 Third Street West, Menomonie, Wisconsin, at a cost of $167,500 ($157,000 Program Revenue Supported Borrowing and $10,500 Program Revenue–Cash).
UW System: Authority to Construct Facility Maintenance and Repair Projects
Resolution 9153: That, upon the recommendation of the President of the University of Wisconsin System, authority be granted to construct various maintenance and repair projects at an estimated total cost of $7,477,000 ($4,107,590 General Fund Supported Borrowing, $150,000 Program Revenue Supported Borrowing, and $3,219,410 Program Revenue-Cash).
UW System: Adoption of Revised Policy Related to Naming or Dedicating University Facilities
Resolution 9154: That, upon the recommendation of the President of the University of Wisconsin System, Resolution 7166 (March 8, 1996), be rescinded and the following amended policy be adopted:
It is the preference of the Board to commemorate the contributions of individuals to academic excellence through the naming or dedication of scholarships, programs, professorships, and other similar actions. However, the Board recognizes that from time to time there may be a desire to name or dedicate some facilities or portions of the university's buildings or grounds after a person.
The Board must approve each request to name an entire building after an individual or individuals. Such requests are to be presented to the Physical Planning and Funding Committee and the full Board of Regents for discussion in closed session prior to approval. Public announcement of the request by the university shall not be made until the request has been approved by the board.
If the request involves a living individual who has been formally associated with the University of Wisconsin System, or has held a paid public office, a waiting period is required unless a situation is presented where a gift stipulates the naming. Normally, at least five years must have elapsed from the time a person who has been formally associated with the University of Wisconsin System, or has held a paid public office, has terminated that association, or left the paid public office.
The Chancellor of each institution is authorized to name facilities when the naming involves less than an entire building, such as rooms, wings, or exterior amenities. This authorization is subject to the same limitations regarding waiting periods as those pertaining to entire buildings.
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UNFINISHED OR ADDITIONAL BUSINESS
Request for Reconsideration of UW-Whitewater Running Track Replacement Project
Regent Loftus moved for reconsideration of this project that had been approved by the board at the last meeting, and the motion was seconded by Regent Randall.
Regent Loftus said that he was concerned about authorizing UW-Whitewater to use cash reserves for the track project when the intent was to ask for student fees to generate replacement funding for the reserves. This, he felt, would put students in the untenable position of either paying the fee or requiring the university to absorb the expense. If the students did not agree to the fee, he asked if the project would be short $1.5 million.
Regent Salas indicated that the Physical Planning and Funding Committee was aware of the situation and that he had instructed staff to meet with UW-Whitewater and discuss student participation. He had been assured that students were involved in planning the project and that, if the students did not approve the fee, the university would need to find the money elsewhere.
In response to a question by Regent President Walsh, Assistant Vice President David Miller said that all future project requests would detail any segregated fee impact. UW-Whitewater’s master planning exercise resulted in a decision to relocate the track and other improvements. Because the current track was unusable, the university was asking to use its cash, part GPR and part segregated fees, in order to get the project done this summer. This plan was approved by the campus Segregated Fee Committee.
Regent Loftus pointed out that the Segregated Fee Committee included only four student members. To proceed without having the plan approved by the student government, he felt, would set a bad precedent.
In response to a question by Regent Randall, Regent Salas explained that if the student government declined to approve fee funding, the money would need to come from other university projects.
UW-Whitewater Vice Chancellor Jim Freer commented on the need to move forward with the project at this time in order to avoid losing a year of use of the track. Noting that the student government president, along with other students, served on the planning task force, he said the decision was made to take the request to the Segregated Fee Committee, which also approved the project. Sources of funding would include gifts, segregated fees, and GPR. With the board’s approval of the project, he said that efforts would be made to look for ways to maximize other sources of funds.
While he agreed with Regent Loftus’ intent, Regent Salas cautioned against reviewing a resolution that was already approved by the board. The Physical Planning and Funding Committee was satisfied with the project and recognized the need to get it done this summer.
Regent Semenas asked when the Segregated Fee Committee would vote on the fee, and Mr. Freer replied that the committee currently was in the process of acting on the entire package. To delay until May would mean that the project could not be completed by the end of summer.
Expressing agreement with Regent Salas, Regent Crain observed that reversing the board’s approval would cause significant problems.
A motion for the previous question was carried on a unanimous voice vote.
The question was put on the motion to reconsider and it failed on a voice vote, with Regent Loftus and Regent Semenas voting in favor of the motion.
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Regent President Walsh welcomed Senator Glenn Grothman, who chaired the committee appointed to draft a proposed constitutional amendment to limit growth in state revenue. The Senator represents the West Bend area, including the UW-Washington County, and is serving his first term in the Senate, after having served from 1992-2004 in the Assembly. Senator Grothman received his undergraduate and law degrees from UW-Madison.
Also welcomed was Mr. Tim Fiocchi, legislative assistant to Representative Jeff Wood, who co-sponsored the amendment.
Senator Grothman noted that the predecessor to the Taxpayer Protection Amendment (TPA) was the Taxpayers Bill of Rights (TABOR). It would affect all units of government, but would exempt user fees. If the amendment succeeded, it would become law in 2009-10. Under the TPA state revenue growth would be restricted to inflation plus population growth.
The Senator considered the proposal a good one because, first, he believed in limiting taxation and second, he believed that lower taxes would result in stronger economic growth. Third, he observed that he had never seen the Legislature take a hard vote of the kind needed to reduce state spending. He also said that Wisconsin retains only 61% of its college graduates, compared to 71% nationally. Indicating that the figure for Illinois is 82%, he concluded that Illinois’ better retention rate is due to a stronger economy.
Mr. Fiocchi added that the proposed amendment excludes tuition and student fees from the definition of revenue.
Regent Rosenzweig asked Senator Grothman about his vision of how the UW would look in the future if the goal to downsize government succeeded.
Stating that he did not believe the impact on the university would be as great as others predicted, Senator Grothman expressed the view that the UW could continue to do well with less state money. He did not expect the quality of education or the number of students to decline; rather, he foresaw fewer non-teaching positions. Noting that fringe benefits for state employees are generous, as are health insurance programs, he predicted that these benefits would look different in the future.
Regent Rosenzweig asked how the Senator would reconcile the responsibility of representative government with giving up responsibility for tough votes and substituting a formula under the TPA.
In reply, Senator Grothman noted that taxes keep rising and tough decisions do not get made. He thought that the media did not do a good job of educating the public and that elected officials are not forced to confront difficult issues. He felt that it would be a good idea to put the people in charge through the referendum process. Part of the purpose of the constitution, he said, is to protect individuals from government.
Regent Loftus noted that, after the first year, bonding would be treated like tax dollars under the definition of revenue. Much of the university’s bonding, he pointed out, is program revenue, with no taxpayer impact. If counted like tax revenue, the university’s building program, including maintenance and repairs, would be crippled. He asked for revision of that portion of the TPA.
Senator Grothman replied that other units of government would have the same problem and that part of the proposal would be changed.
Regent Pruitt remarked that, while no one is opposed to protecting taxpayers, there is concern about unintended consequences. In that regard, he said that the TPA almost certainly would cause dramatic tuition increases or shrinking of the university. It also would cause the gap in access to the university by income group to grow.
Senator Grothman remarked that the gap might be more related to societal factors than to income. Stating that almost anyone should be able to afford a UW education, he noted that people can get loans and that the cost is not unaffordable.
Mr. Fiocchi added that Representative Wood introduced a bill to have the UW and the Technical Colleges work more closely together. Remarking that the Technical Colleges are more affordable, he said the Representative would like to see the bill move forward.
Senator Grothman added that a business owner told him that he could double his business if he could hire more skilled workers from the Technical Colleges. It is a mistake, he felt, encourage so many students to pursue four-year degrees, adding that graduates of technical programs make good money.
Regent Smith, President of the Wisconsin Technical College System Board, noted that his board discussed Representative Wood’s legislation and that there is a process in place to further cooperation. He expressed appreciation for legislative interest in increasing the number of bachelors’ degree holders and knew of no disagreement with the soundness of that policy. With less revenue, he asked how the number of bachelors’ degree holders could be increased to benefit the state economy.
Senator Grothman felt that the problem is that bachelors’ degree holders leave the state because of a lack of jobs and that there is an excess of bachelors’ degree holders. He thought the university should focus more on degree programs needed by the state to grow the economy.
Mr. Fiocchi added that, because the TPA excludes tuition and fees, there is no disincentive to admit more students who would have an increasing impact on areas of state need, such as health care.
Regent President Walsh asked Mr. Fiocchi if the UW would need to use tuition to expand enrollments, to which Mr. Fiocchi replied in the affirmative. Regent President Walsh pointed out that the effect would be to grow enrollments at the expense of students rather than with state dollars. Mr. Fiocchi added that would be true to the extend that enrollments would grow beyond the allowable state revenue increase.
Due to the marginal cost of adding new students, Senator Grothman did not believe tuition would need to increase as much as anticipated.
Regent President Walsh noted that resident tuition does not cover the cost of education for Wisconsin students.
Regent Connolly-Keesler referred to Professor Andrew Reschovsky’s analysis showing that the UW would have had $200 million less under the TPA.
While the UW has not done well in recent budgets, Senator Grothman thought it would be pessimistic to assume proportionate cuts going forward.
Regent Connolly-Keesler pointed out that the UW’s figures showed a retention rate of 80% of graduates into the Wisconsin workforce, which differed significantly from the 61% figure cited by the Senator; and Senator Grothman replied that he would supply information on how that calculation was made. He said that the goal would be to retain more graduates than other states.
Regent President Walsh added that, while Wisconsin does well in retaining graduates, the state does not do well in attracting graduates from other states.
Regent Semenas cited the decline in enrollment of lower-income students and expressed concern about funding financial aid increases at the same rate as steep tuition increases under the TPA. As a first generation college student, he had to deal with this kind of problem and was concerned that it would be even more difficult for students in the future.
Senator Grothman expressed the view that all do not need a college education and that students can save money by living at home and working while going to school.
Regent Semenas asked if students should be able to choose what campus to attend and have financial aid provided. Senator Grothman commented that loans are readily available and that students can make decisions to make college more affordable, such as working more hours.
Regent Semenas pointed out that students most in need of loans are from lower-income families and then must enter the workforce with massive loan debt.
Senator Grothman felt that students take out more loans than necessary and that students who have loan debt should get degrees in fields with strong job markets.
Regent Salas pointed out that in years past tuition was low and financial aid was not as important. Today, families that cannot afford college are required to take out loans.
Senator Grothman commented that students should be able to afford college through a combination of parental support, living at home and having a job.
Regent Salas added that there are first generation students who cannot afford college without financial help; if is not forthcoming, the opportunity would not exist for them.
Regent President Walsh observed that students are being priced out of college. While tuition years ago was around $600, it is more than $5,000 today; lower income families cannot afford to pay that much and students cannot earn enough by working at low-paying jobs.
Senator Grothman suggested studying how lower-income students who graduated managed to pay their expenses and use their experience to educate others.
Regent President Walsh remarked that they did it by accumulating a lot of debt.
Thanking Senator Grothman for his support of PK-16 education, Regent Randall offered to work with the Senator regarding college affordability based on his experience as the head of the Private Industry Council. Noting that state support for the UW has declined while pressure to provide more capacity has increased, he asked if there is an exception in the TPA for federal funding and if the university could have more flexibility to deal with fewer funds.
Regent President Walsh added that there might be a contract under which the UW received a certain number of dollars to educate a certain number of people.
Regent Randall asked how the amendment would deal with federal mandates, and Senator Grothman replied that the state would need to address the Medicaid issue.
In response to a question by Regent Davis, Mr. Fiocchi explained that tuition and fees were excluded from the revenue caps because they are user fees for services and so that there would not be a disincentive for the UW to admit additional students. Noting that United Council and some representatives would like tuition and fees included in the cap, he said that Representative Wood has not yet taken a position on the matter.
Regent Crain asked if the TPA was expected to affect what is offered by the university in terms of programs. Senator Grothman replied in the negative but added that it would be helpful to students who take out loans if they were encouraged to go into fields with strong employment prospects.
In response to a question by Regent Axtell, Senator Grothman said that Colorado made two mistakes with TABOR that Wisconsin would not repeat. First, the formula was tied to the prior year budget, which posed a problem when there was a drop in revenue. Also, the Colorado formula dealt with both revenue and spending and was based on the mill rate but included no adjustment for increase in housing value.
Regent Spector commented that he found the TPA troublesome in part because unforeseen circumstances might occur and cause great state assets to be put at risk. Because of its status as a constitutional amendment, it would be hard to make any adjustments.
Senator Grothman replied that it could be changed in one legislative session and would not need to pass in two sessions. In addition, it could be changed by referendum.
Thanking Senator Grothman and Mr. Fiocchi for their comments, Regent President Walsh summarized several points on which regents would disagree with them.
o They did not believe the university would have to educate fewer students, while the Regents foresaw enrollment caps.
o They saw the decline in access to lower income students as related to factors other than income.
o They believe that almost anyone can afford a UW education.
He explained that the regents were concerned about steep tuition increases and enrolling fewer students because they are convinced that the UW is an important part of the solution for Wisconsin’s economic future. If the amendment were to pass, he asked if the Senator would consider it a good idea to treat the UW differently from the rest of state government
Senator Grothman replied that he did not believe that the university’s ability to serve as an economic growth engine would suffer under the TPA.
In response to a question by Regent Loftus, Senator Grothman said that there had been two hearings on the amendment and that there would be others. He preferred hearings by invitation as a format for obtaining better input.
Regent President Walsh asked that the Board be invited to one of the hearings.
In reply to question by Regent Rosenzweig, the Senator said that he would like to have a hearing within two weeks and that the Board would be invited. He did not think that the Legislature would convene before the end of April.
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At 12:15 p.m., the following resolution was adopted on a roll-call vote, with Regents Axtell, Connolly-Keesler, Crain, Davis, Loftus, Pruitt, Salas, Semenas, Smith, Spector, and Walsh (12) voting in the affirmative. There were no negative votes and no abstentions.
Resolution 9155: Recess into closed session to confer with legal counsel regarding pending or potential litigation, as permitted by s.19.85(1)(g) Wis. Stats.; to consider UW-Oshkosh honorary degree nomination, as permitted by s.19.85(1)(f) Wis. Stats.; and to consider appointment of an interim chancellor for UW-La Crosse, as permitted by s.19.85(1)(c) Wis. Stats.
The following resolution was adopted in closed session:
UW-La Crosse: Authorization to Appoint: Interim Chancellor
Resolution 9156: That, upon recommendation of the President of the University of Wisconsin System, Elizabeth J. Hitch be appointed Interim Chancellor of the University of Wisconsin-La Crosse, effective on or about June 1, 2006, at a salary of $176,113 and with the other terms, conditions, and benefits as stated in the attached letter of appointment.
The meeting was adjourned at 12:45 p.m.
Submitted by:
Judith A. Temby, Secretary
G:regents/minutes/March 10,2006BOR(Friday).doc