PRESENT:

Rhonda Cartwright

James S. Eiseman

David Estes

Walter Harris

Brian Bromberger

Marcel J. Dumestre

Edwin Gros, III, S.J.

Laurie Joyner for Frank E. Scully, Jr.

Edward J. Kvet

Patrick O’Brien

Deborah Stieffel

Mary Lee Sweat

Jay Calamia

Henry Folse

Georgia Gresham

Dee Harper

Lisa Maloz

Robert Reed

Darla Rushing

Stephen Scariano

Karen Shields

Marcus Smith

Ralph Tucci

Michelle Clarke, SGA for Martina Mills

Suzanne Zornes, Recording Secretary

INVITED:

Jerry Conard

ABSENT:

John Cornwell

Erika Gordon, SGA

James B. Ludwig, Jr., SBA

Uriel Quesada

Connie Rodriguez

John F. Sears

Jim Wee

Kevin Wm. Wildes, S.J.

The meeting was called to order at 3:38 p.m.

I.  Approval of minutes from the meeting of October 25, 2004

A MOTION was made and seconded to approve the minutes of the October 25, 2004 meeting.  MOTION passed.

Page 2

II.   Tuition/Fees/Financial Aid 2005-06 Approved Scenario

       Tuition/Fees/Financial Aid 2005-06 Scenarios

        *Undergraduate

        *Law School

        *Graduate School

Ms. Cartwright provided a copy of the information that was presented at the October 25, 2004 meeting.  Scenario C was adopted at that meeting, which calls for a 7% increase on new students, a 5% increase on returning students and a 4% increase across the board for the Law School.  In addition, a 3.25% merit increase was approved.  Ms. Cartwright reviewed Additional Known Costs, and the approved salary increase.

III. Partial Allocation of Dollars

Ms. Cartwright indicated that this handout includes requests that are proposed to be included in the August 1, 2005 budget setups.  Ms. Cartwright stated that as discussed in October 2004, applied against the $4.233MM are $.995MM in Known Costs and the 3.25% merit increase and fringe benefits of $1.902MM.  Taking these costs into account, $1.336MM remains as the unallocated portion of the 05-06 budget as of October 25, 2004.  Requests against the $1.336MM came in at $1.655MM.  At that time it was agreed not to do any further allocation of dollars until the spring, at which time the committee would meet to determine those items that needed to be in the budget.  It was agreed that until fall enrollment numbers are confirmed, not all of the projected surplus would be allocated. 

The four items recommended at this time include $300,000 in deferred maintenance, $90,000 for the staff salary study, $50,000 for SACS reaccredidation and $122,000 for faculty equity and promotions. 

The unallocated balance of $.774MM will not be allocated until fall enrollment numbers are confirmed.  Unfunded requests of approximately $1.1MM remain. 

Ms. Gresham asked if the SACS request of $50,000 is in addition to the $120,000 already allocated to SACS.  Dr. Harris advised that the $120,000 has already been spent this academic year.  Ms. Cartwright advised that $70,000 of the $120,000 is a recurring expense for salaries.  $50,000 of the $120,000 will be in the pool for 05-06 and is not currently allocated to anything specific in the SACS budget.

Dr. Joyner asked if any part of the additional $50,000 would be used to fund the QEP.  Dr. Harris advised that part of the funds will be dedicated to the QEP.   

A MOTION was made to include $300,000 in deferred maintenance, $90,000 for the staff salary study, $50,000 for SACS reaccredidation, and $122,000 for faculty equity and promotions as additional allocations to the 05-06 budget.  MOTION passed with one abstention.

Dr. Folse stated that in a recent University Senate meeting, Dr. Blue’s report on the Finance Committee included information regarding revenue from the endowment at $11.084MM for 2004-2005.  Debt Service was reported at $3.356MM.  Dr. Folse asked why the money that goes to fund Debt Service is not included in the endowment contribution. 

Page 3

Ms. Cartwright explained that there are two pieces to Debt Service.  One piece is everything Loyola owes that is not associated with the 1997 bond issue.  Those items are paid through the operating budget ($3.356MM) and the draw on the endowment ($11.084MM) goes into the operating budget.  In addition to the draw on the endowment, the principle and interest payments for the 1997 bond issue are paid directly from the endowment.  Ms. Cartwright further explained that the 5% draw on the endowment only applies to the operating budget, but there are additional dollars coming out of the endowment to pay the 1997 bond issue debt service. 

Ms. Cartwright stated her understanding of the reason Loyola pays part of the debt out of the operating expense and part of it directly out of the endowment.  The $50MM raised through the capital campaign was to go into the endowment, which was in essence, collateral for the $45MM bond issue.  Therefore, the principle and interest payment for the 1997 issue could come directly out of the endowment.  Ms. Cartwright stated that the actual draw on the endowment is over 6%.

Dr. Scariano expressed his discontent that the Steering Committee has not met since October 2004.  Ms. Cartwright indicated that the Steering Committee will begin meeting again sometime in August.  Dr. Scariano advised that he is resigning from the Steering Committee.

Dean Stieffel asked about the status of renovations in Carrollton Hall.  Ms. Cartwright advised that renovations are on target with what is in the budget.  If renovations are completed early, that would result in a positive effect on the budget.

Dean Dumestre discussed a process request.  He requested that all of the academic programs in City College that are listed under non-traditional be put in to City College.  A MOTION was made and seconded that the City College academic programs be included in the City College tuition rather than listed separately under non-traditional programs.

Ms. Cartwright advised that this decision is actually up to Dr. Harris.  Dr. Harris advised Dean Dumestre that they should meet to discuss this matter.  Dean Dumestre agreed to meet with the Provost about the matter.  After further discussion, Dean Dumestre agreed to table the MOTION. 

Dr. Tucci advised that the A & S Salary Committee believes there are approximately 10 people who are below CUPA target salary data, and although Loyola has made some salary adjustments, more than the allocated $122,000 is needed.  Dr. Harris explained that the $122,000 is the last part of the four year salary adjustment initiative.  Last year the College of Arts & Sciences got all the funding; the other colleges did not get any funding for additional equity.  Dr. Harris stated that discussions concerning further funding need to take place.  Dr. Tucci will discuss this situation further with Dr. Harris.

IV. Other Business

Ms. Gresham asked what the process will be for prioritizing other initiatives.  Dr. Harris advised that the UBC Steering Committee will meet in early August.  Final enrollment numbers will be known at the end of September, at which time a more accurate

Page 4

assessment of revenue will be available.  Ms. Cartwright indicated that in November 2004, a shortfall of $1.8MM was projected and the last two projections have been

approximately $1.5MM.  Ms. Cartwright advised that she is in the process of doing another projection for the May board meeting, which is expected to remain at $1.5MM.  Due to the projected shortfall, further allocations have not yet been discussed.

Ms. Gresham asked what allocations would be cut if there is, in fact, a deficit.  Ms. Cartwright stated that 80% of the expense budget is committed with not much room to cut costs.  If a deficit actually does occur, more money will have to be drawn from the endowment.  Dr. Harris added that in September 2004, it was known that a deficit was probable.  Fr. Wildes made a decision at that time that Loyola would not ask departments to revert budgets back to the central administration to cover the deficit, but instead go through the year to see if there might be savings somewhere along the line.  In addition, when the budget was approved for 05-06, when voting occurred in October 2004, a decision was made at that time that needs would be included, but included in a way without making full allocation.

The meeting was adjourned at 4:20 p.m.