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Scenes from Faculty Senate

Joint Strategic Planning Committee

Monday, March 20, 2006

1:30 - 3:00 p.m.

President's Conference Room, Green Hall

Attendance: Robert Carothers, M. Beverly Swan, Bob Beagle, Tom Dougan, Bob Weygand, Michael Rice, Celest Martin, Marilyn Barbour, Barbara Luebke, Karen Ramsay, Vince Petronio, Patrick Mills, Abu Bakr, Ann Morrissey. Guests: Linda Acciardo, Linda Barrett, Carolyn Callahan.

Minutes: The Minutes from the JSPC's Meetings of January 23, 2006 and February 6, 2006 were approved.

Budget Issues and Planning President Carothers: Vice President Weygand and Ms. Barrett provided the committee with an overview of the budget difficulties facing the University for the current and subsequent fiscal year. It was explained that in February the Governor had cut $2 million in state appropriations for '06. In addition, graduate student enrollment was short by 92 students (approximate income of $1 million) for the current academic year. As a result of these problems there is a position freeze until July 2006 (searches can continue but hires will not be made prior to July 1). The freeze should net approximately $600 K. The rest of the $1.4 million will be borrowed from funds and restricted accounts (Student Affairs and fund balances) as well as Dean's overhead accounts and fund 110 accounts. The President also noted that additional expense for health insurance, property insurance, fuel, etc. which cost $1.5 million over what had been budgeted.

President Carothers said that for FY'07 URI expects a 1-1.5% increase in state appropriation based on the adjusted amount for FY 2006); all asset protection dollars and capital fund dollars are not included. Although the University is trying to have this money restored, the $1.2 million final expenses for Independence Hall will have to be paid. This will come from the general operating budget if the dollars are not re-instated.

President Carothers also noted that the Governor has projected an increase in tuition and fees from a current 6% to 7.4% to help balance the reduction in state appropriation. However, it is unlikely that the Board of Governors would agree to go beyond a 6% increase in tuition/fees. This potential loss of revenue is approximately $1.5 million. Furthermore, raising tuition is blunted by the need to increase financial aid. In addition, he explained that the freshman class entering fall 2006 is about the same size as that entering 2005. Due to changes in the SAT, scores across the country are about 20 points lower. This has made fewer students eligible for centennial scholarships.

The President outlined the consequences of the budget situation for FY'07. He said that in the best case scenario (if asset protection and capital fund dollars are restored) there will be a $5.2 million deficit. If no asset protection is restored, the estimate is a $10.4 million deficit. This assumes that the work on Lippitt Hall can be deferred.

President Carothers emphasized that a financial plan has to be devised to create a balanced budget, and decisions need to be made as to where to invest and disinvest. He said that he had asked the Provosts and each of the Vice Presidents to provide plans with a 10% reduction in administrative costs.

It was agreed that the University community must be made aware that the projected difficulties are of a greater magnitude than even the worst of the previous years faced by the University and that new strategies were needed.

Discussion ensued on possible reductions in expenses, ways to streamline university functions, efforts to increase enrollments by seeking students from other parts of the country where the demographics are more encouraging, developing new marketing strategies, including a website that is more appealing to parents and students.

The meeting adjourned at 3:00 p.m.