Meeting Minutes: August 26, 1999

Attendance

Approval of Minutes

Report of Officers

• the next Board of Curator's meeting will be held September 2&3 in Portageville, Missouri;
• a University Forum on Assessment at MU will be held Wednesday, September 8, 1999 from 3:30 to 5:00 p.m. in Columns 208C of the Reynolds Alumni Center;
• Intercampus Faculty Council (IFC) will meet Friday, September 10, 1999 from 9:30 a.m. to 2:00 p.m. at University Hall; and,
• a statewide conference on General Education Requirements will be held October 26&27 at the Holiday Inn Select.

Discussion Items

Chancellor Richard Wallace addressed Faculty Council regarding budgetary concerns. He expressed disappointment that UMC was only able to provide $400 pay increases this year and said that MU cannot continue to progress with 1% salary increases. Last year revenues exceeded projections (mainly due to an increase in indirect costs from external grant funding) and costs were lower than projected. The campus began the current budget year with a surplus, but this was due to transferring money from reserves. This year the campus will draw on those reserves in the General Operating (GO) account. The Chancellor stressed that these reserves must be built back up.

Chancellor Wallace presented a new five-year budget plan that makes the following assumptions:

• the annual growth in discretionary funds from state appropriations will not exceed two percent in fiscal years 2001-2002 with a three and one-half percent in fiscal years 2003-2005;
• student education fees will increase at the rate of inflation (around three percent a year);
• enrollments will grow four percent over the next five years; 4) total benefit costs will increase by eight percent a year;
• the cost of equipment and other expenses will increase three percent a year;
• the reserve accumulation will equal five percent of the GO revenue in five years;
• scholarships will be reduced to a discount rate of 25 percent at the end of five years; 8) salaries will increase on average four percent a year.

These increases will not be across-the-board. This budget resolves most of the economic shortfall in the first year. Reductions of about eight and one-half million dollars are required in the first year of the budget. Reductions of about 1.4 million dollars are required in subsequent years. He encouraged units to deal with the shortfall through revenue growth rather than budget reductions. He said the amount of cuts will differ across schools. In response to questions, Wallace noted that two potential sources of enrollment growth are an increase in retention and an increase in transfer students from community colleges.

Standing Committee Reports

Council Workshop

Adjournment

Respectfully submitted,
Judith Goodman,, Recorder