3:30pm --- Ferguson Forum

• Senate Roll Call & Quorum Check --- (Margaret Garner Substituting for Norm Stein)
• Approval/Correction of April Minutes --- (Margaret Garner Substituting for Norm Stein) --- [web]
• Presentation by Provost
• President's Report --- (Rob Ingram)
• Recent meetings with President and Provost
• Meeting of Faculty Senate Presidents
• Challenge 21
• Vice President's Report --- (Pat Bauch)
• Secretary's Report --- (Norm Stein)
• Reports from Senate Committees:
• Academic Affairs --- (Marion Paris & Carmen Taylor)
• Financial Affairs --- (Norman Baldwin & Robert McLeod)
• Meeting with Bob Wright [attachment]
• Planning and Operations --- (Marcia Evans & Jerry Webster)
• Research and Service --- (Bing Blewitt & Stephen MacCall)
• Student Affairs --- (Dexter Gordon & James Taylor)
• Senate Operations --- (Bill Andreen & Bill Motes)
• Reports from Senators on University Standing Committees
• Reports from other Committees
• Legislative Agenda Committee --- (Margaret Garner)
• OLD Business
• NEW Business
• Faculty voting policy [attachment]
• Announcements

Question 1. How much revenue is generated by functions outside of state funding, tuition, grants, and contracts? For example, how much revenue is generated by the Supply Store, Athletic Department, and University Housing? How are the revenues from these centers expended within the University?

Answer. The Supe Store, Athletic Department, and Housing are self supporting enterprises referred to as "auxiliary enterprises." They pay all their own capital and operating costs. Annual revenues generated by auxiliary enterprises are as follows: Supply Store--$8-$9 million in sales, Athletic Dept--$33-$36 million, Housing--$11-$12 million. Moneys from the auxiliary enterprises that are donated to the education and general budget are as follows: Supply Store--$160,000/yr, $200,00/yr for scholarships, Athletic Dept--$1 million/yr. There is not a structure or formula for determining the amount of money given to the education and general budget from the auxiliary enterprises. The University President makes monetary requests based on need.

Question 2. What has been the effect of the "2 plus 2" program on the revenues generated by University Housing? Has this program contributed to the need to increase tuition? Does this programs generate revenues for other University profit centers?

Answer. As a part of housing, the "two plus two" program has been self supporting, or "stand alone." As such, it has not contributed to the need for increasing tuition. The program is being phased out, in part because of the negative impact it has had on the local rental market.

Questions 3 & 4. What are the components of the University’s endowment? What are the rates of return over the past five years on the endowment? What are the rates of return on the University’s portfolio of securities, stocks, and debt instruments?

Answer. The University’s endowment is invested by 15-16 investment managers outside the University system. The endowment investment mix is currently 70% stock, 20% fixed income, and 10% real estate and cash. The rate of return on the endowment has been 26% in 1995, 14% in 1996, 20% in 1997, 12% in 1998, and 11% in 1999. The Investment Committee of the Board of Trustees typically allows the University to yield 4-5% of the endowment money annually. The balance of the annual rate of return on the endowment is not expended in order allow the endowment to grow and to plan for difficult fiscal years. Around 90% of the endowment is restricted. UA’s current endowment totals $300 million. Including property investments, the endowments is $370 million.

Question 5. Why can’t faculty recoup travel expenses with travel monies that are allocated for travel later into the year? What can we do to get this changed?

Answer. IRS regulations require an "accountable reimbursement plan" that allows travel reimbursements to occur only within 60 days of incurring travel expenses. For Departments that receive additional travel allocations as the year progresses, VP Wright suggests that the allocating unit (e.g., Continuing Studies) prepay the allocation so that it is available to faculty who travel early in the year.

Question 6. What are the steps involved in the development of the University’s budget? At what point do Resources and Priorities and the Faculty Senate have input into the development of the budget?

Answer. R& P gets involved after the appropriation from the state is known and the Executive Staff have made their recommendations. R&P has a faculty senate representative who is involved at that point. The process is described as "top down" in terms of the direction of inputs.

Questions 7. What were/are the principles guiding budgetary cuts within the University in recent years?

Answer. Budgetary cuts are initially across the board and then refinements are made based on needs of each division.

Question 8. What are the criteria for deciding to whom mailing lists of students, faculty, and staff will be sold? How much revenue do the mailing lists generate? Do you have the names of the purchasers of the lists?

Answer. They don’ t sell mailing lists according to Bob Wright.

Question 9. What does the University own besides campus land, buildings, and equipment? What are the returns on these investments.

Answer. UA owns approximately 37,000 acres which produces income from coal, timber and natural gas which goes to the University’s endowment for distribution according to the gift. During 1997-1998, UA owned land yielded a 10-11% return. Timber generated $550,00, goal generated $1.9 million, and gas generated $500,000.

Question 10. Where is the money coming from for "free laptops" and the growth in scholarships?

Laptops come from the President’s Enhancement Fund and growth in scholarships from contributions to the President’s Cabinet.

Additional Comments. VP Wright also indicated the following:

• The University has an audited annual financial report that is available to the public through his office.
• He would welcome a visit from Norman Stein to discuss the possibility of a phased retirement.
• The benefits to the University and Tuscaloosa from the football game day events justify the athletic program utilizing campus facilities such as parking decks and the quad.
• The Athletic Department justifies charging others to use their facilities because, except for Coleman Coliseum, they built or financed the facilities themselves. But, they have recently reduced their rental fees.

Issues arose with respect to the plus/minus referendum that indicated a need for a policy on faculty referenda. The University was unable to find any formal policies on how the ballot should be handled or who should vote. The Planning and Operations Committee made recommendations to the Senate about how "faculty" should be defined for voting purposes. The Senate adopted those recommendations at its September meeting. The Steering Committee has discussed this matter with the Provost, and we recommend that a formal policy be added to the Faculty Handbook. The Steering Committee recommends the following addition, to be added as Chapter 1. V. D. (page 12):

D. Faculty Referenda

Faculty are responsible for establishing and modifying academic policies and for providing recommendations to the administration on matters of faculty concern. Recommendations concerning issues affecting a broad cross-section of faculty and academic units are made by the Faculty Senate. Those matters the Faculty Senate deems to be especially important are referred to the faculty for a faculty-wide vote. Such matters include modifications to the University general education requirements and other curriculum matters that are not specific to individual academic divisions; faculty status, rights, and working conditions; and similar matters of concern to the general faculty.

The wording of such referenda will be determined by the Faculty Senate after consultation with the Provost. Voting will be administered by the Office of Academic Affairs and will occur within four weeks following a decision by the Faculty Senate that a referendum is required. The Office of Academic Affairs will print, distribute, receive and count ballots. Faculty will have a minimum of one week to submit ballots after they have been distributed. The Office of Academic Affairs will provide a written statement of voting results within one week after the deadline for submission of ballots. In all cases, the voting process should be completed within eight weeks following a decision by the Faculty Senate that a referendum is required.

Except as governed by other sections of the Faculty Handbook, for purposes of voting on referenda, "faculty" is defined to include all permanent and temporary full-time faculty with the rank of instructor, assistant professor, associate professor, professor, or equivalent and whose administrative appointments do not exceed fifty percent of their total appointments. Visiting and emeriti faculty are not included in this definition. The Faculty Senate may elect, by a majority vote of the Senate, to modify the list of faculty eligible to vote on a particular referendum.

Except as governed by other sections of the Faculty Handbook, a referendum will be deemed to have passed if it is approved by a majority of voting faculty in a majority of colleges and equivalent academic divisions.

Faculty are entitled to vote only in the division in which they hold their primary appointment. In cases of joint appointment, faculty must choose an academic unit in which to vote.

Matters specific to individual colleges or equivalent academic units and not affecting a broad-cross section of faculty outside of those academic units are not governed by these policies.