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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 ...»

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1. Campus elections (referenda) will be conducted under the auspices of each Chancellor using procedures which in his judgment will provide each student with an opportunity to vote and will lead to fair tabulations and reports of election results.

2. Referenda on each campus shall include propositions appropriate to that campus which are developed by the Chancellor following appropriate consultation with student groups and which are subsequently approved by the Board of Trustees upon the recommendation of the Chancellor with the concurrence of the President.

3. Following extensive consultation with student groups on the Urbana-Champaign campus, the Chancellor has recommended with my concurrence that a referendum on that campus to select the method to be used for the 1973-74 and 1974-75 terms include the following propositions:

The nonvoting student member of the Board of Trustees from the UrbanaChampaign campus of the University of Illinois shall be selected by the following method:

— Proposition One: Elected through an at-large election following the usual student election procedures in effect on the Urbana-Champaign campus.

— Proposition Two: Appointed by the combined steering committee of the UGSA and the executive committee of the GSA following the usual appointment procedures in effect on the Urbana-Champaign campus.

— Proposition Three: Neither of the above. A more detailed list of alternatives should be made available.

It is understood that the proposition receiving the most votes shall be the proposition selected.

1973] UNIVERSITY OF ILLINOIS 341 President Corbally indicated that he and Chancellor Peltason had made arrangements for student spokesmen from Urbana to comment on the proposal and Chancellor Peltason presented Mr. James Gerl from the Undergraduate Student Association and Mr. T. Edward Page from the student membership of the Urbana Senate, and Mrs. Edie Terwilliger of the Graduate Student Association. Each of them endorsed the recommendation as presented by the President, indicating that they had been consulted and that the proposal reflected such consultation.

On motion of Mr. Swain, the Board approved the proposal as submitted.

APPOINTMENT OF COMMITTEE FOR T H E TRUSTEES

DISTINGUISHED SERVICE MEDALLION AWARD

President Hughes appointed the following Board members to serve on the committee to recommend recipients of the Trustees Distinguished Service Medallion Award: Mr. Swain (chairman), Mr. Howard, Mrs.

Rader, Mr. Forsyth, and Mr. Hahn. Mr. Hughes pointed out that, in accord with the Board's action in establishing the award, committee membership would change from time to time to insure that each trustee would have the opportunity to serve at some point during his term of office.

GENERAL REPORT CONCERNING UNIVERSITY BUDGETS

President Corbally presented a general statement about the University

internal budget and the appropriations request for 1974-75. The President's statement is as follows:

At this meeting, you have before you budget recommendations for both the current year and for 1974-75. I will not repeat the comments I made at our July meeting except to remind you that we are providing legislators with budgetary information in support of the efforts by the General Assembly to override Governor Walker's reduction of about $4 million in our operating appropriation for 1973-74 and to restore funds for several capital projects in our capital appropriations for the same period.

Some effort has been made to describe our strong support of a restoration as a personal battle between Governor Walker and the University or, more specifically, and me. This interpretation is simply not true. The Governor, the General Assembly, and University officials play separate and distinct roles in Illinois government. Both the power of the Governor to reduce or veto appropriations and the power of the General Assembly to restore such reductions or vetoes are specified in our Illinois Constitution. We believe that the General Assembly was right in its appropriations to the University for 1973-74 and we seek—-as provided in the Constitution — a reaffirmation by the General Assembly of its position. While the Governor and I disagree on the funding requirements of the University for 1973-74, it is an honest and open disagreement which we have discussed, which we both understand, and in which we each must play the role and meet the responsibilities assigned to us.

An analysis of our financial needs and of the program restraints which three — and now, perhaps, four — years of State tax support which has failed to recognize our needs have imposed upon us makes it clear to me that we must enter 1974-75 with a base operating budget approximating the original appropriations made by the General Assembly for 1973-74. If the Governor's reductions are sustained, we must find other ways to restore that base. As distasteful as it is to me and to you, one way which must be considered is a sharp increase in tuition.

Our philosophical commitment to low tuition is a matter of extensive public record. I do not agree that the financial problems of either public or private higher education should or could be solved by large increases in tuition at public universities. But our greater commitment must be to the University of Illinois and to the maintenance of its distinguished record of high quality people offering 342 BOARD OF TRUSTEES [September 12 high quality programs. The meeting of this commitment requires financial support greater than we have been receiving during the past years of inflation and of the increasing costs of excellence. It is not an alarmist statement, but rather is the truth, that the libraries, the laboratory equipment, the facilities, and, yes, the quality of the appearance of our campuses are slipping— slowly, but surely.





We must stop and reverse that trend and to do so requires financial support greater than we have been receiving.

Therefore, later this fall, I plan to present to you recommendations concerning income sources for 1974-75 based upon a detailed analysis of our financial and program arrears and upon the action of the General Assembly at its October 1973 session. This analysis will include a study of tuition policy for the future as well as a study of tuition as it relates to the immediate need to restore our budget base. It is within this framework of "unfinished business" that we bring to you for your consideration the budgets for 1973-74 and the budget requests for 1974-7-5.

STATEMENT, POLICY COMMITTEE, AMERICAN ASSOCIATION

OF UNIVERSITY PROFESSORS. URBANA CHAPTER

President Hughes reported that a request for a representative of the AAUP Chapter at Urbana to be heard had been approved. Professor Harry H. Hilton, chairman of the legislative committee and member of the policy committee of

the chapter, presented the following comments:

The University of Illinois (Urbana) AAUP Chapter requests a public commitment from this Board to seek a legislative override of the governor's reduction veto of the University of Illinois' contribution to the State Universities' Retirement System (SURS).

The governor's reduced amount of $11.9 million is $12 million less than the legal requirement from the University of Illinois for FY1974 and will add to the $401,422,000 unfunded liability existing as of August 1972.

Combined with similar reductions for other employing units in SURS, the unfunded accrued liability will increase by $54 million in FY1974, unless these reductions are overridden. Should the current underfunding policy be continued, the eventual burden upon the taxpayers to meet pension obligations will far surpass the burden of adequately funding, SURS now.

The Board of Trustees of the University of Illinois has a legal obligation to seek on behalf of their academic, nonacademic, and professional employees full funding of current retirement service costs each year. Furthermore, the Board has a moral obligation to their employees to ensure the security of employee pensions and employee contributions to SURS.

We urge the Trustees of the University of Illinois to meet their obligations irrespective of possible actions of other employing units.

Our forthcoming legal proceedings on the governor's item reductions, which the AAUP Chapters at Urbana and Circle campuses and the AAUP Illinois State Conference will institute in the near future, do not diminish our commitment to seek your support in obtaining an override solution in the legislature.

The President and members of the Board provided general assurances that such efforts as were feasible would be undertaken to stabilize the retirement system.

A N N U A L OPERATING BUDGET FOR 1973-74 (2) The budget for operations for the fiscal year (FY) beginning July 1, 1973, is submitted herewith, including recommendations for: (a) academic and administrative appointments beginning September 1, 1973, except for academic year appointments at Urbana-Champaign which begin August 21, 1973; and (b) appointments to the nonacademic personnel staff on a continuous basis. All salary increases are effective with the pay period beginning nearest to September 1,

1973. Authorization to pay salaries and wages for the period July 1 to September 1 was granted by the Board of Trustees on June 20, 1973.

_ For purposes of determining academic service, the academic year at the Chicago Circle and Medical Center campuses will be in conformity with past 1973] UNIVERSITY OF ILLINOIS 343 practice, that is, from September 16 through June 15. Although the UrbanaChampaign campus has not yet formally acted to specify the precise dates of the academic year to accommodate the general provisions of the new academic calendar at Urbana, the academic year at Urbana-Champaign is defined as the period from August 21 through May 20.

The funds appropriated by the Seventy-eighth General Assembly to the University of Illinois for all purposes for FY 1974 are summarized, with comparative figures for FY 1973.

The budget has been prepared by the Vice President for Planning and Allocation, based upon recommendations of: (a) the University Planning Committee;

(b) the chancellors at the three campuses (after consultation with their respective deans, directors, and other campus officers) ; and (c) the President of the University. The allocation of funds follows general policies and priorities developed by these reviews and was recommended by the University Budget Committee.1 Submitted herewith is the budget document1 containing: (a) a condensed analysis, which outlines the income anticipated for fiscal year 1974 and describes the changes in the budget; (b) Schedules A through I, which contain summaries of income and appropriations for the entire University and budget totals by major categories for each campus; and (c) summaries for each college or other

major administrative unit. Also submitted are supplemental volumes [Volume I:

General University Units and Urbana-Champaign Campus (Academic) ; Volume II: General University Units and Urbana-Champaign Campus (Nonacademic) ;

Volume III: General University Units and Medical Center Campus and Chicago; Volume IV: General University Units and Chicago Circle Campus] presenting budget details for departments, divisions, and other operating units.

It is recommended that this budget, covering the allocation of the estimated operating income from all sources for the year beginning July 1, 1973, be approved by the Board of Trustees, and that the President of the University be authorized in accordance with the needs of the University and the equitable interests involved and within total income as it accrues: (a) to accept resignations; (b) to make such additional appointments as are necessary subject to the provisions of the University of Illinois Statutes and the Policy and Rules — Nonacademic; and (c) to make such changes and adjustments in items included in the budget as are needed, such changes to be covered in periodic reports to the Board of Trustees.

On motion of Mr. Swain, the budget was approved and authority was given as recommended by the following vote: Aye, Mr. Forsyth, Mr. Hahn, Mr. Howard, Mr. Hughes, Mr. Livingston, Mr. Neal, Mrs.

Rader, Mr. Swain; no, none; absent, Dr. Bakalis, Mr. Steger, Governor Walker.

BUDGET OF THE ATHLETIC ASSOCIATION FOR 1973-74 (3) The Director of Intercollegiate Athletics has submitted, on behalf of the Board of Directors of the Athletic Association, the budget for the Association for 1973-74 which is summarized as follows with comparative figures for the preceding year: m2_n m3_u

–  –  –

The budget has been reviewed and approved by the Chancellor at the UrbanaChampaign campus and the Vice President for Planning and Allocation.

I recommend that this budget be approved and that the Board of Directors of the Athletic Association be authorized to make such changes and adjustments, including approval of new appointments and acceptance of resignations, as are

necessary within the total income and surplus of the Association, provided that:

appointments of head coaches and administrative officers and assignments of funds for new projects or nonrecurring capital expenditures in excess of $12,500 shall be presented to the Board of Trustees for approval.

A copy of the budget is being filed with the Secretary of the Board of Trustees for record.

On motion of Mr. Livingston, this recommendation was approved and authority was given as requested.

REQUEST FOR OPERATING APPROPRIATIONS FOR FY 1 9 7 5

(4) The President of the University herewith submits the proposed request for appropriations for operations for the Fiscal Year 1975.

The 1975 request envisions no increases in enrollment other than the planned expansion at the Medical Center. This is in keeping with informal recommendations of the Illinois Board of Higher Education, there being no formal IBHE guidelines for FY 1975. The budget is designed to maintain the existing programs of the University and to request adjustments to the eroded base budget of the University as demonstrated by analytical studies.



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