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«f?z/74. -*-••-•? UF THE Uiit, - -OtS tH UReAfcMNCMAMPAIOet UNIVERSITY OF ILLINOIS BOARD OF TRUSTEES Fifty-Seventh Report 1972-74 UNIVERSITY ...»

-- [ Page 55 ] --

Such a facility would provide a vehicle for health care information to the various ethnic groups located in adjacent neighborhoods, would become a valuable method for communications on the two campuses, and would provide a working laboratory for students interested in the communications media. AssisUNIVERSITY OF ILLINOIS 303 tance in determining feasibility of such an installation was provided by the firm of Robert A. Jones, Consulting Engineers, LaGrange, Illinois.

It is now proposed that the Board of Trustees approve an application _ to the Federal Communications Commission for a construction permit and station license for an educational FM radio station to be located at the Chicago Circle campus and to be used jointly by the Chicago Circle and Medical Center campuses.

Such an application would be subject to approval by appropriate State agencies.

The Chancellors at the Chicago Circle and Medical Center campuses recommend approval.

I concur and recommend adoption of the following resolution.

Resolution

BE IT, AND IT HEREBY IS, RESOLVED by T H E BOARD OF TRUSTEES OF

T H E UNIVERSITY OF ILLINOIS, a public corporation of the State of Illinois, that the Comptroller of this public corporation be, and he hereby is, authorized to execute and to deliver to the Federal Communications Commission of the United States of America an "Application for Authority to Construct or Make Changes in a Non Commercial Educational TV, FM, or Standard Broadcast Station" covering and including an application for a construction permit and station license for an educational FM radio station to be located at the University of Illinois at Chicago Circle Campus^ Chicago, Illinois, to be used jointly by the University of Illinois at Chicago Circle and the University of Illinois at the Medical Center Campuses, and to make, prepare, execute, acknowledge and deliver any and all other documents, papers, exhibits and materials and to do all other things necessary to secure from the Federal Communications Commission of the United States of America any and all necessary licenses, permits and authority to construct, build, establish, maintain and operate an educational FM radio station as aforesaid.

On motion of Mr. Swain, this recommendation was approved and the foregoing resolution was adopted.

W I T H D R A W A L O F APPLICATION FOR GRANT F U N D S U N D E R TITLE 1

OF T H E HIGHER EDUCATION FACILITIES ACT OF 19 6 3

A N D REASSIGNMENT O F F U N D S T O OTHER PROJECTS

(27) On September 15, 1971, the Board of Trustees adopted a resolution authorizing the filing of an application for grant funds for the construction of the Library Building Second Addition at the Chicago Circle campus. The construction of this facility will not be authorized for construction during FY 1974 and it is desirable for the grant amount of $500,000 to be reassigned by the State of Illinois Board of Higher Education to other project(s) that will be authorized for construction during FY 1974.

The Chancellor at the Chicago Circle campus recommends that the Board of Trustees adopt the resolution submitted herewith which withdraws the approved application in the amount of $500,000 for the Library Building Second Addition project at the Chicago Circle campus, thereby releasing $500,000 of grant funds for reassignment by the State of Illinois Board of Higher Education to other project(s) to be authorized in FY 1974.

I concur.

Resolution Authorizing the Release of Grant Funds Amounting to $500,000 under Title I of the Higher Education Facilities Act of 1963 WHEREAS, the U.S. Commissioner of Education with the concurrence of the Illinois Board of Higher Education authorized a grant in the amount of $500,000 under the Higher Education Facilities Act of 1963 for the construction of the

project described below:

Library Building Second Addition at Chicago Circle, and WHEREAS, the funds available for capital projects and the priorities established for capital projects within the State of Illinois are insufficient to provide 304 [June 20

BOARD OF TRUSTEES

–  –  –

Chicago Purchasing Offices. However, no bids were received. Special inquiries with major petroleum companies and distributors reaffirmed that none of them would agree to supply gasoline on a firm price basis or would guarantee product availability at any price for any new accounts. However, the current supplier, the AMOCO Oil Company, through their American Oil and Standard Oil Company Divisions of Chicago and Urbana-Champaign, respectively, has offered to supply gasolines at the same gallon volume of purchases as during FY 72-73 at posted prices for municipalities and governmental units (except federal), plus applicable taxes, subject to a ten-day written notice of change. The prices shown above are calculated on the basis of the posted market prices for municipalities and governmental units on May 24, 1973, and reaffirmed on June 6, 1973.

The reported causes for the petroleum pricing and product availability are

as follows:

1. Refineries are operating at capacity, and no major additions are being made because environmental laws require compliances that are considered too costly.





2. The "1973 model cars are consuming up to 28 percent more gasoline due to pollution emission requirements."

3. Relief in oil importation controls may eventually alleviate the shortages. The prognosis of near future supply relief seems to be remote because of the processing time needed from crude to refined products. Off-shore oil drilling and the Alaska oil situation may improve the supply in years to come if current restrictions are eased.

4. The cost of obtaining or renting storage facilities to house gasoline for the University in order to insure adequate inventory and the lowest possible cost has been considered excessive because of the environmental and safety laws, particularly in the Chicago area. Major oil companies also are unwilling to store gasoline, specifically for the University, because the logistics of handling small amounts of gasoline, such as the University requirements, would be incompatible with their normal operations.

Because of the short period of time remaining in the current contract, action is necessary at this time. An appropriate affidavit will be filed with the Auditor General.

The President of the University, with the concurrence of appropriate administrative officers, recommends approval and authorizes the Comptroller and the Secretary of the Board of Trustees to execute the contracts as required.

O n motion of M r. Swain, this recommendation was approved by the following vote: Aye, Mr. Forsyth, Mr. H a h n, M r. H o w a r d, Mr. Hughes, Mr. Livingston, Mr. Neal, Mrs. Rader, Mr. Swain; no, none; absent, D r. Bakalis, M r. Steger, Governor Walker.

PURCHASES (29) The President submitted, with his concurrence, a list of purchases recommended by the Directors of Purchases and the Vice President for Financial Affairs; also purchases authorized by the President.

The list of purchases was presented in two categories: purchases from appropriated funds (i.e., from State appropriations to the University) and purchases from institutional funds. The latter term designates funds received by the University under contracts with the United States government, contracts with private corporations and other organizations, funds from foundation grants, and grants from corporations and other donors, and University revolving funds authorized by law.

The total amounts of these purchases were:

From Appropriated Funds Recommended $ 299 303 66 From Institutional Funds Authorized $ 90 000 00 Recommended 2 907 658 00 Total 2 997 658 00 Grand Total $3 2% 961 66 306 [June 20

BOARD O F T R U S T E E S

–  –  –

The July meeting of The Board of Trustees of the University of Illinois was held in the Chicago Illini Union, on the Medical Center campus, Chicago, Illinois, on Wednesday, July 18, 1973, beginning at 10:00 a.m.

President Earl M. Hughes called the meeting to order and asked the Assistant Secretary to call the roll. The following members of the Board were present: Mr. William D. Forsyth, Jr., Mr. Ralph C. Hahn, Mr. George W. Howard III, Mr. Earl M. Hughes, Mr. Park Livingston, Mr. Earl Langdon Neal, Mrs. Jane Hayes Rader, Mr. Timothy W. Swain. Dr. Michael Bakalis, Mr. Russell W. Steger, and Governor Daniel Walker were absent.

Also present were President John E. Corbally Jr.; Vice Presidents Ronald W. Brady, Eldon Johnson, and Barry Munitz; Chancellor J. W.

Peltason, Urbana-Champaign campus; Chancellor Joseph S. Begando, Medical Center campus; Chancellor Warren B. Cheston, Chicago Circle campus; Mr. V. L. Kretschmer, University Director for Capital Programs; Mr. C. E. Flynn, Assistant to the President and University Director of Public Information; and the following officers of the Board, Mr. H. O. Farber, Comptroller; Mr. R. R. Manchester, Treasurer; Mr.

R. C. Wicklund, Assistant Secretary; and Mr. James J. Costello, University Counsel.

316 BOARD OF TRUSTEES [Juty 18

MEETINGS OF BOARD COMMITTEES

President Hughes announced there would be no meetings of the Board Committees this month.

MINUTES APPROVED

The Secretary presented the minutes of the meetings of the Board of Trustees of September 20, 1972, October 18, 1972, November 17, 1972, December 20, 1972, January 17, 1973, and February 21, 1973, press proof copies of which had previously been sent to the Board.

On motion of Mr. Swain, these minutes were approved as printed on pages 37 to 178 inclusive.

BUSINESS PRESENTED BY T H E PRESIDENT OF T H E UNIVERSITY

PRESIDENT'S REPORTS

The Board considered the following reports and recommendations from the President of the University.

President Corbally presented a report on selected topics of current interest, copies of which were distributed at the meeting, and a copy was filed with the Secretary of the Board.

Revision in May 16,1973, Agenda Item At the May 16, 1973, Board of Trustees meeting, action was taken to approve the acceptance of a "grant offer" from the Federal Aviation Administration and an "agency and participation agreement" with the State of Illinois Department of Aeronautics for funds for the Fiscal Year (FY) 1973 Airport Development Aid Program. In May, the total preliminary estimate of project cost was $5,049,580, with SO per cent to be furnished by FAA and 50 per cent by the Department of Aeronautics from the 1971 bond issue.

As a result of subsequent reviews and actions, the preliminary estimate of the project cost has been increased to $5,468,000, with 75 per cent to be furnished by the FAA and 25 per cent by the Department of Aeronautics. These changes in the amount and sources of funding are reported for the record.

Fiscal Year 1974 Appropriations to the University of Illinois Following an unusually intensive analysis of the financial needs of higher education in Illinois by the majority and minority staffs of both the House and Senate Appropriations Committees of the Illinois General Assembly, these committees and the General Assembly overwhelmingly approved appropriations for Fiscal Year 1974 for higher education. These appropriations were based upon recommendations of the Illinois Board of Higher Education — recommendations which were developed after months of hard analysis and which were originally approved by the IBHE in December, 1972, and February, 1973, and which were strongly reendorsed in April, May, and June of 1973.

For the University of Illinois, these appropriations included dollars over and

above the 1972-73 appropriations to accomplish the following purposes:

1. Continued expansion of medical education programs at Chicago, Rockford, Peoria, and Urbana-Champaign $ 5 000 000

2. Salary increases averaging 4.5 per cent for all University personnel 7 145 360

3. Funds to meet known price increases in services and supplies purchased by the University 1 401 330

4. Funds to operate new buildings opening in Fiscal Year 1974 448 738

5. Support of new programs at Chicago Circle and Urbana-Champaign 860 350

6. Support of faculty salary increases to restore the competitive position of the University of Illinois with comparable institutions 2 000 000 1973] UNIVERSITY OF ILLINOIS 317

7. Adjustments in refunds and matching loan funds due to enrollment increases 299 000 Subtotal $17 154 778

8. Less increases to be supported by internal savings and reallocations 4 399 200 Total $12 7SS 578 This increase represented a 6.8 per cent increase over 1972-73, after two years in which the University of Illinois has received virtually no increase in support from State tax funds. This increase provided no funds in support of enrollment increases at the University (estimated to be about 5 per cent), only about onehalf of funds to meet known price increases, less than half of the funds needed to support new programs at Chicago Circle and Urbana-Champaign, and no funds to restore our replacement of equipment to an acceptable level.

Governor Walker has now reduced these figures. In summary, he has eliminated $3,690,000 in personal services and $400,000 in support of the Division of Services to Crippled Children. In addition, he has eliminated $24.5 million in support of facilities and $12.2 million in support of the Universities Retirement System. The net effect of Governor Walker's actions on the appropriations in support of the operations of the University (exclusive of facilities and retirement contributions) is to continue the decline in per-student tax support of the University in constant tax dollars — a decline which will now be 17 per cent during the past three years, exclusive of medical expansion programs.

In announcing his action, Governor Walker cited enrollment decreases — a problem which does not exist and has not existed at the University of Illinois.



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