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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 84 ] --

Kenneth J. Kosten, Medical Center campus; Mr. Lloyd Zimmerman, Chicago Circle campus.

Also present were President John E. Corbally Jr.; Dr. Eldon Johnson, Vice President for Governmental Relations and Public Service;

Dr. Barry Munitz, Vice President for Academic Development and Coordination; 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. George H. Bargh, Executive Assistant to the President; Mr. C. E. Flynn, Assistant to the President and University Director of Public Information; and the officers of the Board, Dr. Ronald W. Brady, Comptroller (also Vice President for Planning and Allocation for the University); Mr. R. R.

Manchester, Treasurer; Dr. Earl W. Porter, Secretary; and Mr. James J. Costello, University Counsel.

470 [March 20

BOARD OF TRUSTEES

MEETINGS OF BOARD COMMITTEES

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

SPECIAL ORDER OF BUSINESS

ELECTION OF A TEMPORARY CHAIRMAN

The Board took up the special order of business for the annual meeting.

Mr. Hughes asked for the election of a temporary chairman for the purpose of electing the President of the Board.

Mr. Steger nominated Mr. Swain; Mr. Swain was unanimously elected and took the chair.

ELECTION O F OFFICERS

President of the Board Mr. Swain called for nominations for President of the Board of Trustees.

Mr. Hahn nominated Mr. Earl M. Hughes.

Mr. Steger moved that the nominations be closed and that the Secretary cast a unanimous ballot of the Board in favor of Mr. Hughes as President. The ballot was so cast, and Mr. Hughes was declared elected President of the Board, to serve until the next annual meeting of the Board in March, 1975, or until his successor shall have been elected.

Mr. Hughes then took the chair and continued with the business of the meeting.

Executive Committee Mr. Hughes asked for nominations for the Executive Committee.

Mr. Steger nominated Mr. Swain and Mr. Neal to serve as members of the Executive Committee, with the President of the Board as Chairman.

On motion of Mrs. Rader, the nominations were closed, and the Secretary was instructed to cast a unanimous ballot of the Board for the election of Mr. Swain and Mr. Neal to the Executive Committee. The ballot was so cast, and Mr. Swain and Mr. Neal were declared elected members of the Executive Committee, to serve until the next annual meeting of the Board in March, 1975, or until their successors shall have been elected.

Secretary, Comptroller, and University Counsel of the Board President Corbally reported that, in accord with the By-Laws, his advice to the Board of Trustees was that the three incumbents — Earl W.

Porter, Secretary of the Board; Ronald W. Brady, Comptroller of the Board; and James J. Costello, University Counsel — be reelected.

Secretary of the Board Mr. Swain nominated Mr. Earl W. Porter.

On motion of Mr. Steger, the nominations were closed, a unanimous ballot was cast, and Mr. Porter was declared elected Secretary of the Board, to serve until the next annual meeting of the Board in March, 1975, or until his successor shall have been elected.

Comptroller of the Board Mr. Steger nominated Mr. Ronald W. Brady.

1974] UNIVERSITY OF ILLINOIS 471 O n motion of M r. Forsyth, the nominations were closed and the Secretary was instructed to cast a unanimous ballot of the Board for the election of M r. Brady as Comptroller. T h e ballot was so cast, and M r.

Brady was declared elected Comptroller, to serve until the next annual meeting of the Board in March, 1975, or until his successor shall have been elected.

University Counsel of the Board Mr. Swain nominated Mr. James J. Costello.

O n motion of Mr. H a h n, the nominations were closed, and the Secretary was instructed to cast a unanimous ballot of the Board for the election of M r. Costello as University Counsel. T h e ballot was so cast, and M r. Costello was declared elected University Counsel, to serve until the next annual meeting of the Board in March, 1975, or until his successor shall have been elected.

DELEGATION OF SIGNATURES

O n motion of Mr. Steger, the following resolution was unanimously

adopted:

Resolved, that the President and the Secretary of The Board of Trustees of the University of Illinois are authorized to delegate the signing of their names as President and Secretary, respectively, to vouchers to be presented to the State Comptroller, and to warrants drawn on the Treasurer of the University, under

the following conditions:

The President of the Board of Trustees is authorized to delegate to S. M.

Stafford, C. O. Parvin, M. L. Crowell, and R. H. Suter, in Urbana; to E. F.

Lis and Mario Dunn, in Springfield; and to James E. Osborn, David W. Bonham, Walter E. Cowart, D. E. Scott, H. O. Albers, and A. W. Catrambone, in Chicago, authority to sign his name as President of the Board of Trustees to vouchers presented to the State Comptroller; and to S. M. Stafford, R. W.





Zimmer, W. M. Griffith, and R. C. Dillier, in Urbana; and to James E. Osborn, David W. Bonham, Walter E. Cowart, A. W. Catrambone, H. 0. Albers, and L. Rea Jones, in Chicago, authority to sign his name to warrants on the University Treasurer covering vouchers approved in accordance with regulations approved by the Board.

The Secretary of the Board of Trustees is authorized to delegate to R. C.

Wicklund, George H. Bargh, and Virginia J. Hendrix, in Urbana; and to Anthony J. Diekema, Velma M. Davis, Margaret Clancy, Robert P. Bentz, Noreen A. Loan, and Lee J. Votava, in Chicago, authority to sign his name as Secretary of the Board of Trustees to vouchers presented to the State Comptroller and to warrants on the University Treasurer covering vouchers approved in accordance with regulations of the Board. The Secretary of the Board of Trustees is also authorized to delegate to Lean C. Ryan and B. A. Gobel, in Springfield, authority to sign his name as Secretary of the Board of Trustees on vouchers presented to the State Comptroller approved in accordance with regulations of the Board.

These authorizations are to continue in effect until the State Comptroller has been supplied with specimen signatures of succeeding officers of this Board.

RECESS A t the request of the press, the Board agreed to recess for fifteen minutes to permit the taking of photographs.

RECOMMENDATIONS FOR AWARD OF BOARD OF TRUSTEES

DISTINGUISHED SERVICE MEDALLION

Upon reconvening, M r. Swain, Chairman of the Committee for the

Trustees Distinguished Service Medallion A w a r d, presented the following recommendations:

472 [March 20

BOARD OF TRUSTEES

(1) On July 18, 1973, the Trustees Distinguished Service Medallion was created to recognize those individuals whose contributions to the growth and development of the University of Illinois, through extraordinary service or significant benefaction, have been of unusual significance.

In accordance with the terms of the establishment of the award, a Distinguished Service Medallion Committee, consisting of five trustees, was appointed by the President of the Board to receive nominations, formulate rules of procedure, and make recommendations to the Board. The Committee now recommends as the first recipients of the Trustees Distinguished Service Medallion the

following individuals:

1. Miss Miriam A. Shelden, who served the University in many capacities for 26 years, leaving the University's active service in 1973 as Dean of Student Personnel and Associate Chancellor for Affirmative Action at Urbana — the award to be conferred on the occasion of Commencement at the UrbanaChampaign campus, May 19, 1974.

2. Dr. David D. Henry, who retired as President of the University in 1971 after serving in that capacity for 16 years — the award to be conferred on the occasion of Commencement at the Chicago Circle campus on June 9, 1974.

3. Mr. Harold E. (Red) Grange, former Trustee, legendary figure in Illinois football, sports announcer, and businessman — the award to be conferred on the occasion of the Illinois-Michigan State football game on October 19, 1974.

Presented by the Committee for the Trustees Distinguished Service Medallion

Award:

Timothy W. Swain, Chairman William D. Forsyth, Jr.

George W. Howard III Ralph C. Hahn Jane Hayes Rader On motion of Mr. Swain, these recommendations were adopted unanimously.

BUSINESS PRESENTED BY THE PRESIDENT OF THE UNIVERSITY

PRESIDENT'S REPORTS

T h e 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.

Report and Recommendation Concerning the Operating Budget for Fiscal Year 1975 (2) In June, 1973, the Board of Trustees approved an operating budget request for fiscal year 1975 for the University of Illinois which sought increased funds for 1975 in the amount of $22.8 million over appropriations for 1974. In brief, this increase provided $12.8 million to support the increased costs of ongoing University programs and activities; $6.1 million to continue the program of expanded enrollments in the health professions; and $3.9 million to begin to deal with accumulated deficiencies primarily in operation and maintenance of the physical plant, library acquisitions, and equipment replacement.

In December, 1973, the Illinois Board of Higher Education recommended that the University of Illinois receive increased funds in the amount of $16.7 million for fiscal year 1975. The IBHE further recommended that $1.5 million of this increase be secured through a 6 per cent increase in tuition. In addition, the IBHE recommended that another $1.9 million be secured for new purposes through the process of reallocation of funds.

If the reallocated funds are considered as "real new money," the IBHE recommendation differed from the University's request by $4.2 million. After a careful analysis of this difference and of its effect upon the University, this Board in December, 1973, approved an increase in tuition of 12 per cent. This action was in keeping with IBHE policy that tuition not exceed one-third of 1974] UNIVERSITY OF ILLINOIS 473 undergraduate instructional costs and that tuition increases for 1975 be in an amount of "at least 6 per cent." This action would provide new resources in the income fund in an amount of $2.6 million rather than the $1.5 million recommended by the IBHE and would narrow the difference between the University's request and IBHE recommendations to $3.1 million. The primary result of such action would be to provide only $800,000 instead of $3.9 million to deal with accumulated deficiencies, but it was felt that this result would need to be faced and accepted.

In February, 1974, the Illinois Board of Higher Education amended its operating budget recommendations for the University of Illinois. The amendment had the effects of approving an increase in the University's income fund at the $2.6 million level rather than at the $1.5 million level earlier recommended and of approving a total increase for fiscal year 1975 over fiscal year 1974 of $17.8 million plus $1.9 million in reallocation or "productivity gains." It was this recommendation which the IBHE forwarded to Governor Walker and to the General Assembly.

Subsequent to most of the analysis and study that went into these budget requests and recommendations, the general inflation rate has increased enormously, and, in particular, the cost of energy has more than doubled. The effect of these events is manifested in two ways. First, the average salary increases now anticipated for FY 1975 of about 5 to 5y£ per cent will not keep pace with inflation and, therefore, the real purchasing power of all personnel will decrease. The second and, in some ways, more pressing problem because of timing is the cost of energy, particularly fuel oil. If fuel oil costs for fiscal year 1975 stabilize at only 175 per cent of fiscal year 1974 costs, the additional cost to the University of Illinois will be $3.5 million. It should be noted that the total funds available within the $17.8 million for all categories other than salary increases and health-related expansion amount to $3.1 million.

Therefore, the final budget recommendations of the IBHE approved in February, 1974, which contain the full tuition increase approved by this Board do not provide sufficient funds to cover the cost of oil alone, even at present rates, and provide salary increases which are clearly inadequate to meet inflation.

Earlier this month, Governor Walker presented his annual budget message to the General Assemby and to the people of Illinois. In this message, the Governor pays serious attention to the needs of education, of higher education, and of the University of Illinois. Obviously, the budget work of his staff also had to take place before either the costs of the energy crisis or the magnitude of inflation were known.

In essence, for the University of Illinois the Governor recommends increased funding as recommended by IBHE in December, 1974 ($16.7 million), and further recommends that the $1.5 million which the IBHE proposed come from tuition increases come instead from general revenue (tax) funds. The action of this Board to raise an additional $1.1 million through tuition increases is not reflected in the Governor's message except that he asks that tuitions not be raised at all in public higher education in Illinois in fiscal year 1975. We have, then, what might be called a "million dollar problem."



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