University of Minnesota, Morris
Campus Resources and Planning Committee

March 17, 2003


Members Present:     Jim VanAlstine (chair), Maddy Maxeiner, Ferolyn Angell, LeAnnDean, Jackie Thorvaldson,
                                     Andy Lopez, Lowell Rasmussen, Ken Crandall, Carol McCannon, Dominique Karlsson, Ken Hodgson

Absent:                       Shaun Hainey, Amy Ackerman, Dennis Templeman

Guests:                        Sam Schuman, Fritz Schwaller, Gary Strei, Sandy Olson-Loy

(In these minutes:  Enrollment update, Budget update)

Minutes of March 3, 2003 approved on a motion by Angell, second by Lopez.

Enrollment Update

Lopez reported that the numbers continue to improve.  We are currently behind in offers; however, we're trying to maintain the quality.  He added that most of the telephone inquiries have been about the tuition increase.

Budget Update

Schuman reported that as a result of his meetings last week with the Provost and President, he has a pretty clear sense of what we need to do to cope with the projected budget shortfall at UMM even though we do not have a final number.  He noted that we are facing serious budget problems and added that President Bruininks recently said at the Regents meeting that this may be the worst fiscal picture the University has faced since the depression.  Schuman would like to create a Budget Task Force that would include the following members:

 3 from Campus Resources & Planning Committee (chair + 2)
 3 from Consultative Committee (chair + 2  - one of which would represent USA group)
 2 from Administrative Committee (1 Division Chair + 1)
 2 from Vice Chancellor Group (VCAA + VCSA)
 MCSA President or designee
 Lowell Rasmussen will chair; Gary Strei will serve as staff

This group will be charged to report to the chancellor on two issues: reallocations and reductions.  He will ask the task force to estimate the following over the next two years:  $500,000 in reductions, which will carry over into the following year and $250,000 in reallocations which, would carry over in the following year.  An additional $500,000 in reductions and $250,000 in reallocations would be estimated in 2005.  The total cuts over the next biennium at UMM would be $2.25 million.  Tuition is not under the purview of the task force.  President Bruininks expects the outstate campuses will have a 14 percent tuition increase and the Twin Cities campus will have a 15 percent increase.

He will ask the group to define the process and implementation for the recommendations they make to him keeping in mind two principles:

1. That we defend our core mission as an undergraduate liberal arts college of uncompromising rigor within the public sector and with integrity.
2. That we maintain the infrastructure that lets us do the first one.

He promised to take those recommendations seriously although he cannot promise he won't amend them because ultimately the decision must rest with him.  The President has set the June Regents meeting as the deadline although final budget decisions are subject to the legislature.   Schuman would like us to finish, to the extent we can, by graduation.  There are a number of possible mitigation's that could help or hurt us, for example: all university cuts (benefits) would be done centrally, private gifts could increase, increased student population and federal support to keep our Native American tuition money would help us.  Decreased population, the possibility that the legislature may take away more than the Governor has recommended, and the impending war would hurt us.

He added that we are getting ahead of the game because the President has not asked us to do this yet so it feels like we're jumping the gun a bit.  One of the risks of jumping the gun is that figures may change.  Additionally, he noted that the Governor has recommended a two year salary freeze.  President Bruininks said the university could do this for one year but he is unwilling to do it for two years.  At the University of Minnesota, 60% of their budget goes to salary and fringe benefits.  At UMM, 80% of our budget covers salary and benefits.  Schuman added is he reasonably confident that we can move through this process without actually firing anyone.  He is convinced we will do better because of our tradition of having an open, democratic campus governance and our clear, focused mission.

Lopez said Schuman's proposal seems reasonable and he is very supportive and thinks we need to move ahead immediately.  Dean inquired if contract negotiations (buyouts) were an option.   Schuman said that would be beyond the scope of the Task Force because of the bargaining unit contracts.

Lopez made a motion to nominate Ken Crandall to serve on the Budget Task Force, second by Angell.   So moved.  Angell made a motion to nominate LeAnn Dean to serve on the Task Force, second by Lopez.  So moved.

Adjourned at 3:00 p.m.