The second meeting of the Student Senate for 2002-03 was convened in 25 Mondale Hall, Minneapolis campus, on Thursday, October 31, 2002, at 11:37 a.m. Coordinate campuses were linked by telephone. Checking or signing the roll as present were 38 voting student members and one ex officio member. Chair Ryan Osero presided.

Ryan Osero announced that Professor Feeney had been called to another meeting and was unable to speak with the students today.

Ryan Osero wished everyone a Happy Halloween.

MOTION:

To approve the Student Senate minutes, which are available on the Web at the following URLs. A simple majority is required for approval.

http://www1.umn.edu/usenate/ssen/021003stu.html

DISCUSSION:

With no discussion, a vote was taken and the minutes were approved.

Ryan Osero called the attention of senators to a list of amendments to the Constitution, Bylaws, and Rules which will be presented for action at today’s University Senate meeting. He asked that everyone attend that so these items can be approved.

Richard Pfutzenreuter, Associate Vice President for Budget and Finance, distributed a chart describing where the state revenues come from and where the state expenditures are spent. Most of the state revenues come from income tax and sales tax, which creates a revenue problem for the state when the economy does poorly.

For the expenditures, higher education is only 10 percent of the state budget, which is split between the University and the Minnesota State Colleges and Universities (MnSCU). In 1989, the state expenditure for higher education was close to 16 percent. This decrease means that higher education spending has not grown with the state budget, which is a national trend. The state budget priority has been property tax relief, K-12 education, and health services.

The following sheets look solely at the University’s revenues and expenditures without including sponsored research funds. This shows that 36 percent of the operations and maintenance budget comes directly from the state, as well as another 5 percent in state specials. Lastly, tuition contributes 16 percent to the budget. The diagram demonstrates why more pressure is placed on tuition in years when state funding decreases.

In the last session of the state legislature, the state balanced the budget by using all one-time monies available, which left the budget for the next biennium with a deficit of close to $3 billion. The next budget forecast will be released in December, so the new governor and legislators will wrestle with how to balance the budget. With a deficit of this size, taxes could not be raised fast enough to generate enough money to alleviate the deficit.

Next week the University will approve the budget request to the state to fulfill its needs. The request has four investments areas: set and implement academic directions, support talented faculty and staff, help students realize educational goals, and build and maintain academic infrastructure, for a total of $192 million.

In the past few years, the University would have requested the entire amount, minus a 3 percent tuition increase, from the state, so that the entire request was paid from two sources, the state and tuition. This year, in light of the state deficit, the University is proposing a third funding source: contributions from the University, in a partnership with the state. Therefore, the state is being asked to fund 50 percent of the request, $96 million, and the University will raise the other half through tuition and internal reallocation. For the University’s contribution, it will consist of 4.5 percent back-to-back tuition increases and a 2.5 percent internal reallocation of existing money towards University priorities.

This request reflects the need for the University to look at its priorities and reinvest in those areas recognized by the Regents and President. It also acknowledges the state deficit by requesting less than half of past requests. Additionally, while this is the year for biennial requests, the University will be asking for funding for $61 million in capital requests that were cut by the governor at the end of the last session.

This request will be approved by the Regents next week. The legislative session starts January 7 and does not have to adjourn until the end of May. The governor’s budget recommendations will be made in late January.

Q: Is the proposed 4.5 percent tuition increase the same amount for all colleges, or is it an average across colleges so that some, such as the Medical School, could have a higher tuition increase than other colleges?

A: If this budget request is adopted, tuition will only increase 4.5 percent for students in all colleges. The University, though, is sensitive to market conditions in some of the professional schools. Tuition in some programs is as high as tuition in private colleges and out state schools. The University will need to closely monitor tuition increases in several professional schools.

Q: What will be the tuition increase if the entire budget request is not received?`

A: The University will fight to receive the entire amount from the state. If the University did not receive any funding, then tuition would need to increase 13.4 percent back-to-back to cover all the University priorities. This would not happen though since the University would make cuts in the request for aspirational items, although there are certain expenses that cannot be cut.

Q: Will the central administrative fee scheduled be increased?

A: There is no planned increase in the central administrative fee.

Q: Last year when students were scheduled to receive a tuition increase, the support staff opposed this increase and worked with the students to increase funding. During the internal reallocation, how will the University avoid, as much as possible, human cuts and lay-offs?

A: The University is a ‘people business’ in that almost 70 percent of the spending is for faculty, staff, and student workers. Therefore, reallocations cannot avoid impacting people, but hopefully this can be accomplished through attrition in vacancies. Staff cuts and lay-offs is not a goal of this plan, but the University has trimmed all the easy excess.

Q: Is the University addressing the fact that students cannot receive more financial aid to offset the increases in the cost of living expenses?

A: The University does care about the cost of attendance. In the last few years more attention has been focused on the undergraduate level, but expenses for graduate and professional students will need to be looked at.

Q: Two years ago, a new fee for international students was introduced. Are there any plans to remove this fee for international students?

A: There have not been any discussions to reduce or remove this fee.

Q: How will the University ensure that the internal reallocation will contribute to the University’s budget request as proposed?

A: The Regents will hold the administration to reallocating its portion of the request. A budget advisory committee is already meeting to determine how to reallocate the $16.6 million for the first year.

Q: If higher education funding is a national problem, what are other states doing?

A: Most states started cutting higher education last year because they did not have the reserves that Minnesota had. Actions of other institutions range from freezing salaries to tuition increases to lay-offs.

Q: During the capitol request last year, many students felt that their hard work would not come to fruition until after they had graduated. In this plan, there seems to be a need to engage the student body. What efforts are under way to engage the entire student community?

A: The University has a grassroots organization with representatives from every college and campus, as well as staff and the Student Legislative Coalition (SLC). The University will continue to work with SLC as the student voice and to help organize students. Budget success comes from pressure on the legislature from faculty, staff, and students. Two things students can do is vote and then send their representatives an e-mail reminding them of the University’s request. Government Relations is also willing to work with other student organizations to make lobbying efforts as effective as possible.

Critical dates for this request will be: November 5 to vote, late January when the governor’s budget is released since the governor receives 95 percent of his or her budget, and then late April/early May when student concerns can be addressed to the administration and the Regents.

Q: What areas are being considered for cuts?

A: No specific areas are being considered at this time.

Q: Will the University consider increasing gifts and endowments to raise additional funding?

A: The Minnesota Foundation receives $2.5 million for operations and maintenance from the University to finance the foundation, as well receiving a fee on all endowments. The last campaign was successful, but the University must continue to support the efforts of the Foundation to pursue new prospects from the campaign.

Q: Is there a maximum tuition increase that the University is proposing?

A: It is hard at this time because of the uncertain budget forecast. A more accurate figure can be provided once the governor’s budget has been released. The administration and the Regents do not want double-digit increases, but it really depends on the state’s situation.

Q: During the reallocation , will cuts be across-the-board or will each coordinate campus be able to decide on its own cuts?

A: Because of the decentralized operation, each unit will be given a target amount to cut, but the decision will be up to each unit, although central administration will provide guidelines that financial aid and instruction should not be negatively impacted.

Donna Peterson, Associate Vice President for Government Relations, said that 10 years ago there was a discussion in the legislature about a higher tuition/higher aid model for undergraduates in Minnesota. This issue is back again from the private colleges and business organizations. This proposition is a simple solution to a very complex problem with the result that middle-class students are caught in the system.

Richard Pfutzenreuter stated that the rationale to give all funds directly to students is that it would force institutions to be more efficient with their resources. There is no evidence to prove this model, but the proposal has resurfaced because of the lack of state funds.

Q: Because of the small request this year, will the next increase, at a higher level, look outrageous in comparison?

A: There is a cycle to these requests, and as the economy improves so can the University’s request without any criticism.

Q: What is MnSCU’s request?

A: They are requesting $107 million with an additional $40 million for increased enrollment. They are not suggesting any type of partnership and their proposal does not acknowledge the state’s financial situation.

Richard Pfutzenreuter said that he would be happy to return in February to update senators on the legislative request and budget situation.

Ryan Osero, Student Senate Chair, said that Josh Colburn, student member on the Presidential Search Advisory Committee, has joined the meeting to hear comments and feedback from students on the process and what they would like to see in the next president. Due to the nature of the search, he cannot answer many questions about the process or the candidates.

Q: What is the timeline for the search?

A: The committee membership was finalized by the Regents this summer with a completion date for the committee’s work by the end of December.

Q: What is the committee doing to ensure racial and gender diversity in the candidate pool?

A: Racial and gender diversity is a very important part of the work of the committee. At this point, the candidate pool is very strong and candidates have a wide variety in their breadth of knowledge of institutions like the University.

Q: How many final candidates will be considered?

A: This number is considered confidential.

Q: What are the University’s priorities for its candidates?

A: The Regents published a brochure on the 14 specific qualities that are being considered in all candidates.

Q: Is the search committee considering increasing the number of faculty and student representatives?

A: No. The membership was determined by the Regents.

Q: What is the level of coordinate campus representation on the search committee?

A: Each coordinate campus has one representative.

Q: What is the make-up of the search committee and the background of its members?

A: The committee has 12 members, determined by the Regents. There is one student, 3 faculty, 2 professional staff members, as well as representatives from the private sector. Biographies for each committee member is available on line.

Q: Why is there secrecy in the process?

A: The committee conducts its business in secret so that it can consider candidates from other institutions who might not otherwise be willing to be considered if the process was open. The committee is separate from the Regents so that it is not covered by the open meeting law rule.

Josh Colburn said that he has been talking to as many students and student groups as possible, from each of the campuses, to solicit feedback on what students want in their next president. He reminded senators that the committee will not be selecting the next president, but just recommending final candidates to the Regents.

A senator said that University is at a crossroads in terms of becoming solely a research institution or keeping the University accessible for students so candidates need to be able to balance these two missions.

Another senator said that the University needs to become more world-class while still maintaining its cost-effectiveness, so the next president needs to be able to lobby the legislature while maintaining academics.

A senator stated that the state is better if the University is nationally-ranked, but that a president needs to be able to find a balance in missions.

A senator said that the next president should continue to promote attracting international students.

Another senator stated that while a former governor or business leader might be considered, the next president needs an academic background.

In conclusion, Josh Colburn said that he willing to listen to any additional comments. He can be reached during his office hours at the MSA office or via e-mail at colb0013@umn.edu, as well as through a web form on the presidential search website.

Ryan Osero, Student Senate Chair, stated that he represents the University on the Student Advisory Council (SAC) for the Minnesota Higher Education Services Office (HESO). SAC asked that each institution present the budget to its students for approval and bring the results back to the next SAC meeting.

He distributed the budget for approval to the senators noting that last year HESO received a large cut. The purpose of HESO is to distribute all state funds for financial aid to all students. Therefore, most of their budget is for financial aid in the form of state grants, work-study, and child care with a small portion covering administrative costs.

A second sheet shows what the state mandates as the maximum cap on tuition and living expenses per year to be used in calculating financial aid. Currently, the cap only affects private schools, but with the way that the University’s tuition is rising, the University will hit the cap in 5 years. Once a student has reached the cap, no more state grant aid is awarded. Ryan Osero stated that the living and miscellaneous expenses (LME) amount is set at $5405 and HESO is not suggesting that it be increased. The total LME is the amount that a student is supposed to live off for the nine-month academic year.

Q: Is the LME what the University states is the cost or is it what the University is willing to provide to low-income students?

A: The LME is not what the University states, but is a figure determined by HESO as to what it will contribute for LME. This figure is applied state-wide and therefore is not adjusted for different areas of the state.

Q: What budget changes are being asked for from HESO?

A: For the total budget, HESO is asking for a total increase of $22 million for 2004, with a total biennial increase of $61 million. Most of this increase is for student aid in the form of tuition and fees and LME.

A senator commented that apartment rent alone can consume the entire LME.

Q: Is HESO proposing an increase in state grants and work study funding?

A: Yes. Line five of the proposal, tuition and fees is for an increase in state grants and work study.

Q: How does this request affect the University’s request?

A: HESO does not have a direct link to the University, but works with all institutions of higher education to disperse student aid. Once all student aid has been determined, HESO disperses a lump sum to the University, at which time it is allocated to each student.

Q: What is the total tuition and fees for an undergraduate student on the Twin Cities campus?

A: It is roughly $6600 per year.

Q: Will HESO listen to any concerns that are raised about the request?

A: HESO will likely approve the request as is, but SAC asked that the Student Senate consider the request.

A senator commented that an increase in LME would seem to compete with the University’s request and force the University into a high tuition/high aid model.

Q: Are the change items to be included in the base budget?

A: Yes since it covers the restoration of funds that were taken from HESO last year.

Q: What is the college savings program?

A: It is a new program in Minnesota to get families saving for college at an earlier age with tax benefits to the program.

A member then advocated for increases in work study funds since without this type of financial aid, the student experience is hurt.

A senator then made a motion and seconded to disapprove the HESO budget request. The floor was then opened for discussion.

Q: What would students like in the HESO budget that is not there?

A: Many students have been discouraged to do research by the lack of work study funding, so this amount needs to be increased above what it was in the past.

A senator stated that he would disapprove the budget because he would like more information on what exactly the numbers mean and how it affects students. He asked that someone from HESO be at the next meeting to explain the numbers and answer questions.

Q: What is the timeframe for this budget request?

A: A preliminary budget was submitted from HESO to the state in October and a final budget request will be submitted in November.

A motion was then made and seconded to table this item until the next meeting. A vote was taken and the motion was approved with 21 in favor and 12 opposed.

Ryan Osero, Student Senate Chair, did not have a report at this time.

Judy Berning, Student Senate Consultative Committee (SSCC) Chair, said that SSCC will be bringing a stadium resolution or position statement to Student Senate in December for approval. Eric Steinhoff, the SSCC Chair, is looking into the problems with the work study funding shortage at Morris and will have more information for the Student Senate in the spring. Lastly, she encouraged all senators to apply for a Senate or Assembly committee.

Crookston – Jean Korkowski reported that Crookston held its Torch and Shield Banquet last night as a thank you to its donors.

Duluth – Nick Cecconi reported that last week Weber Music Hall had its grand opening. He also noted that all the Duluth senators are present.

Morris – Reginald Davis stated that MCSA is holding stadium discussions, many gubernatorial candidates have visited campus, and discussions are starting regarding financial aid concerns.

Graduate and Professional Student Association – No report.

Minnesota Student Association - Josh Colburn said that there will be a voter rally on November 5 on the Northrop Plaza.

Ryan Osero, Student Senate Chair, said that Student Senate Consultative Committee (SSCC) Task Force membership has been completed, except for the graduate/professional student representative. The Task Force Chair is Reid LeBeau, members are: Thomas Rutledge from UMDSA, Jacob Elo from MSA, Khama Sharp from MCSA, and Jean Korkowski from CSA.

A senator stated that at the October 3 University Senate meeting, for item 43, a vote was taken. The minutes reflect that there were no votes opposed, but this vote was never taken because of the rush to finish the meeting prior to the State of the University Address. She would like the minutes to reflect that an opposed vote was not taken.

Second, this item in on the agenda again for today’s University Senate meeting as item 21. She felt that the amendment raises questions regarding the distribution of power between those that are and those who are not tenured, and since business can move swiftly, she wanted students to be aware of the issue prior to the meeting.

Q: Can an item keep being brought back to Senate meetings until there are enough votes for it to be approved?

A: There is a clause in the Senate Constitution which allows for amendments to the Senate Constitution to be approved by two-thirds of the total membership at one meeting or by a majority of the total membership at two consecutive meetings.

Ryan Osero noted that these points should be addressed at the University Senate meeting.

Another senator then asked that when a response to the questions and concerns on the Gophers-Vikings Stadium is received, that the response be sent to all senators.

Ryan Osero said that any response would be shared with all senators.

Another senator then said that this is a critical time for students to give their feedback on pros and cons regarding the stadium proposal.

Ryan Osero reminded senators that the Student Senate did approve a statement at its last meeting. He then referred senators to Item 23 on the University Senate agenda which is a discussion of the proposed stadium.

The meeting was adjourned at 1:32 p.m.