1994-95             UNIVERSITY OF MINNESOTA                No. 1 
                   UNIVERSITY SENATE MINUTES
                       OCTOBER 6, 1994

     The first meeting of the University Senate for 1994-95 was 
convened in the Hubert H. Humphrey Center Atrium, Minneapolis 
campus, on Thursday, October 6, 1994, at 3:30 p.m.  Coordinate 
campuses were linked by telephone.  Checking or signing the roll 
as present were 65 voting faculty/academic professional members, 
12 voting student members, 15 ex officio members, and 
approximately 200 nonmembers.  Professor John Adams, Chair of the 
Faculty Consultative Committee presided.

            I.  STATE OF THE UNIVERSITY ADDRESS

                     A PARTNERSHIP RENEWED 
                    Nils Hasselmo, President

=============
INTRODUCTION:
=============

The title of this State of the University speech is:  "A 
Partnership Renewed."  Its subtitle is: "A Partnership 
Threatened."

The partnership is the partnership between, on the one hand, the 
State of Minnesota ‹originally, in 1851, the Territory of 
Minnesota ‹ and, on the other,  its research and land-grant 
university and the students of that university.

This is a partnership that has produced enormous benefits for the 
State and its citizens, and that must continue to do so as we move 
towards a new millen-nium, and the University¹s 150th anniversary 
in the year 2001.

===========================================
A VITAL UNIVERSITY ­ GLIMPSES FROM THE PAST
===========================================

The past vitality of the University of Minnesota can be measured 
by the vital-ity of Minnesota's economy‹of the long-term 
development of Minnesota's natural and human resources; a 
distinguished history over‹soon to be‹150 years:

*     a history in agriculture, shaping, reshaping, and
      continuing to reshape Minnesota's agricultural and
      agribusiness economy‹providing Univer-sity- developed
      crop varieties that now make up 80% of Minnesota's $12
      billion a year agricultural exports;

*     a history in mining, including as good an example as
      can be found of long- term thinking and long-term
      impact‹decades of research by Professor Theodore Davis
      and his colleagues that produced a taconite industry that
      has a$2 billion annual impact on northeastern  Minnesota;

*     a history in forestry, developing and implementing
      renewable forest products and ever more sophisticated
      forest management, sustaining a strong industry in
      northern Minnesota;

*     a history in health care, our Medical School and
      other health sciences and our University Hospital and
      Clinic laying the foundation for the state's leadership
      in this field;

*    a history in many fields of science and technology,
     creating the founda-tion for Minnesota's high technology
     industries, particularly computers and biomedical
     devices; as Win Wallin, the Chairman of Medtronic said
     recently:

          "Medtronic would not exist without the
           University of Minnesota and Earl Bakken's
           collaboration with those doctors." 

          "...Nor would Medical Alley and most of 
              its member companies." 

           Medtronic employees total 10,000‹3,700 working
           in Minnesota.

           The value of its shares is $6 billion, 4th largest in
           Minnesota.

*    a history in the social sciences and human service
     professions, ensuring the state's national leadership in
     creating a more humane human environment;

*    a history in the arts and humanities, contributing
     to the state's rich cul-tural environment ‹ leadership in
     music, art, and theater;

*    a history that has produced more than 10,000
     graduates a year for the last 20 years;

*    a history that by now has created 16,000 full-time,
     university jobs not paid for by the taxpayers of
     Minnesota; the two-thirds of the total employment in the
     University that is not paid for by Minnesota tax dol-lars
     in a university that receives only 28 percent of its
     total budget from the state;

*    a history that has created over 2,000 corpora-tions
     by Institute of Tech-nology and Carlson School alumni
     alone; employing 370,000 people worldwide, at least
     100,000 in Minnesota; with total annual sales exceed-ing
     $43 billion, $17 billion generated in Minnesota's
     economy;

and on and on and on!

It took a vital University to yield such long-term productivity; 
it still does.

==================================================================
THE NEW AGENDA‹A CHANGING SOCIETY AND THE NEW CHALLENGES TO HIGHER 
EDUCATION
==================================================================

The new agenda, the agenda of the 1990s and the 21st Century, is 
even more important and even more demanding than that of the past.

We face‹at least‹ the following new challenges:

*    a knowledge explosion that is creating great new demands
     and opportu-nities;

*    a technological revolution that is changing the way we
     function economi-cally, socially, and culturally;

*    a globalization of the economy ‹ and many other aspects
     of society ‹ that is creating many new interdependencies;

*    a need for unity with diversity that is testing our
     institutions, the very fabric of our society;

*    a competitiveness in the economy, and ultimately among
     societies, that is placing new harsh demands on our
     institutions and on us as individu-als;

*   a demand for accountability that is putting our values,
    our ethical and moral standards, to the test; and, last
    but not least,

*   a questioning by society of our aims, our effectiveness,
    our very value.

On this last point, Bob Zemsky has put it this way in "To Dance 
with Change": ³The danger is that colleges and universities have 
become less relevant to society precisely because they have yet to 
understand the new demands being placed on them."

What are these demands, who or what are the wolves we are dancing 
with? Jobs, jobs, jobs; cost-effectiveness; access and service; 
accountability; the forces of a market-economy in higher education 
that is turning knowledge into a commodity?

We cannot turn our backs on these wolves; they will bite our 
heels.

We must face them, face change; look it straight in the face and 
say:

We understand the new demands being placed on us.  We will meet 
them.  We will make sure that the University's research, teaching, 
and outreach produc-tivity is responsive to these demands, and 
that our ability to manage and govern ourselves also meets the new 
demands.

This requires‹I want to emphasize this‹that we preserve and 
enhance academic excellence ­ but with objectives and outcome 
measures that are clearly defined, stated and communicated to our 
leaders, to the constituencies we serve, and to the  public.

What we need is a partnership that ensures that Minnesota 
continues to have one of the leading research universities in the 
nation.

*    A university whose outstanding scientists, scholars,
     and artists ­ work-ing in an environment of freedom of
     speech and freedom of inquiry ­ make up the State¹s major
     link to the knowledge network that is becom-ing the
     backbone of this new global, diverse, technological,
     competitive, and accountability-conscious world.

*    A university whose outstanding research and graduate
     and professional education ensure that we have our own
     capability, our own expertise, our own leadership in key
     disciplines and professions; in agriculture, business,
     and industry; in government and in our civic and cultural
     life.

*    A university whose undergraduate programs will
     provide outstanding learning opportunities for its
     students, with special emphasis on those men and women
     from all racial, ethnic, and socio-economic backgrounds,
     whose talents and commitment will place special
     leadership responsibili-ties on their shoulders, a
     university that is demanding in its standards but
     accessible in its delivery systems.

*    A university where knowledge is widely shared and
     placed at the service of all citizens; a university in
     the community in the true land-grant spirit; a university
     that effectively transfers its knowledge.

I¹m speaking of a university whose quality makes it stand out as a 
leading research university‹perhaps one of a dwindling number of 
research universi-ties‹in this country.

A challenging task?

Yes.

And it is a task that we can fulfill only in partnership, in a new
partnership with the State of Minnesota.

========================
A PARTNERSHIP THREATENED
========================

I speak with special urgency today.  We are at a watershed.

The partnership is threatened.  The state's most precious asset, 
its flagship university‹this great university‹is in jeopardy!

Higher education in this state is in jeopardy.

The reason:  A continuing decline in state investment in higher 
education, in the University of Minnesota.

Since 1987, the proportion of the total state budget provided for 
higher education has declined by 21 percent.

Look at the graph ‹ and let its implications sink in!

If we do not reverse this devastating downward trend, the flagship 
university of this state, yes, all of higher education in this 
state, may lapse into mediocrity, deadly mediocrity.

The effects of the State's budget cuts have been severe, in spite 
of our massive, continuing reallocation of resources. 

*    We went without salary increases for faculty and
     staff in 1991-92 and again in 1993-94.

*    A serious erosion in the faculty and staff ranks has
     taken place. One thousand faculty and  staff positions
     have been eliminated since 1991.

*    The reallocations to, for example, CLA, IT, and Duluth
     that were key elements in our 1991 Restructuring and
     Reallocation plan were all but obliterated by the state-
     imposed cuts, slowing down or undermining key quality
     improvement efforts.

*    And, frankly ‹ and perhaps most disastrously ‹ the
     severe cuts in the face of such strong self-help efforts
     have seriously undermined faculty and staff morale!

The University of Minnesota cannot remain a leading research and 
land-grant university on these terms.  The University of Minnesota 
cannot be the spark plug of the state's economy that it has been 
for well over a century; it cannot be the foundation for the 
quality of life in this state as it has been for generations!  On 
these terms!

We must meet the fundamental issue head on.  We have had a major 
university for nearly 150 years.  Is Minnesota to have a leading 
research and land-grant  university for the next 150?

That's the question before us, before the decision makers of the 
state, before all the citizens of the state.

And, that is my basic message today:

The University of Minnesota is in jeopardy!  The University of 
Minnesota‹a healthy, vigorous, high-quality University of 
Minnesota that is indispensable to the welfare of this state and 
its citizens‹is in jeopardy!

Let's join forces ‹ inside and outside the University‹for a new 
partnership, a new investment of state resources in a University 
of Minnesota for the year 2000 and beyond.

==================================
OUR REFORM AGENDA‹SOLVING PROBLEMS
==================================

Sometimes I hear this objection:  "Well, the 'U' has this problem, 
or that problem, so I can't give it my support."

Yes, there are problems.  The changing times themselves present us 
with many problems.

But, the important fact is that we, the university community, have 
identified and addressed those problems.  We have in many ways 
been our own harshest critics.  We have defined the issues, and 
addressed them.

Let me give you a catalog of major changes that we have undertaken 
in the past five years or so:

*    We have restructured our facilities management, have
     introduced a new capital budgeting process, and have
     launched a comprehensive master planning effort for all
     our campuses.

*    We have reorganized our financial management;
     established a new strategic planning office and process.

*    We have reorganized the Twin Cities Campus into three
     provostships, eliminating a layer of bureaucracy; we have
     reorganized the manage-ment of the Academic Health Center
     under a provost with executive authority, and have
     established a new University of Minnesota Health System,
     integrating the University Hospital and Clinic with the
     Medical School¹s practice plans, to be better able to
     function in the new managed care environment.

*    We have cut or reallocated $82 million in the past five
     years ­ about 15 percent of our state-appropriated
     dollars! In order to do this, we have had to close a
     campus; eliminate many majors, including most four-year
     teacher licensure programs in the Twin Cities; and reduce
     many adminis-trative functions.

And the list goes on!

Yes, there are problems.  We have addressed them.  We will 
continue to address them.

Let me now discuss some examples of what we are, what we have 
done, and what we are doing, and of the resource problems we face.  
I hope these examples will help me make my point:  We are 
addressing our problems ­ making change; but the lack of state 
investment is placing the University in jeopardy.

============================
THE UNDERGRADUATE INITIATIVE
============================

The Undergraduate Initiative, launched in 1990, was designed to 
deal with the long- standing effects of over-crowding and 
underfunding in undergraduate education.

It was not a change in the mission of the University of Minnesota; 
it was a reaffirmation of the fact that high-quality undergraduate 
education is an integral part of our mission.

The Morris campus has focused on the need to deliver a quality, 
liberal arts experience that has earned repeated national 
acknowledgment of the Univer-sity of Minnesota-Morris as an 
outstanding liberal arts college.

Our Crookston campus is engaged in a significant and exciting 
restructuring of its programs in technical and applied education.  
This restructuring is being undertaken in direct response to needs 
of the citizens of our state.

The Duluth campus has, through significant internal reallocations, 
improved and focused its undergraduate programs and is developing 
nationally competi-tive programs in graduate education and 
research.

There have been many achievements through concerted faculty and 
staff efforts:

*    New preparation requirements became effective in 1991 ‹ 
     requiring strong backgrounds in such areas as English,
     mathematics, science, and foreign language.

     The effect?  In 1993, 77.6 percent of new Twin Cities
     freshmen had met all of these new requirements in high
     school, as compared with 17% in 1986.  A sea change!

*    A massive new effort has been made to reach prospective
     students with good information.

     The result?  This fall¹s Twin Cities freshman class is
     the best in two decades!

     Applications have increased by 24 percent in two years.

*    9.6 million in re-invested university dollars have
     helped us address problems in recruiting, admissions,
     advising, course access, instructional equipment,
     training of teaching assistants and faculty, and has
     allowed students to learn through an Undergraduate
     Research Opportunity Program and new service-learning
     courses.

The combined effect of all this?  The five-year graduation rate 
for the Twin Cities Campus, exclusive of General College, has 
improved from 34 percent to 39 percent for students entering in 
1982 as compared with students entering in 1988.  A 15 percent 
improvement in six years.

Rates have also improved at Duluth ­ from 32 percent to 35 percent 
­ and at Morris from 41 percent to 54 percent.

We are continuing those efforts under University 2000:  attracting 
mostly students from the top quarter in high school, well prepared 
students ­ or in special cases students given the opportunity to 
prepare themselves in General College for regular college work.

*    The new liberal education curriculum is being
     implemented this fall through the combined efforts of
     many liberal arts and professional school departments. 
     It combines solid grounding in the major areas of
     knowledge ­physical and biological sciences, history and
     social sciences, humanities and the arts, and mathematics
     with topics or themes crucial to the times the
     international perspective, cultural diversity in the
     United States, citizenship and public ethics, and the 
     environment.

*    New partnership programs with North Hennepin and Inver
     Hills Com-munity Colleges and a new Transfer Curriculum
     are helping provide new access to the special learning
     opportunities of the University.

*    Crookston has initiated its four-year programs, with
     lap-top computers for every student and a new emphasis on
     applied, employment-oriented degrees.

Solid education for jobs and life, based on the principle that 
liberal and special-ized education complement each other.

U.S. NEWS AND WORLD REPORT this week ranked undergraduate 
education on the Twin Cities Campus the 21st best buy in the 
country among national universi-ties.  This ranking is directly 
related to state funding; the educational quality required for the 
ranking is dependent on resources available, and the relatively 
low tuition required for the ranking is, of course, dependent on 
the availability of state funding.

As the legislative auditor pointed out in his report of  February, 
1994:  The rise in tuition at the University has been very 
directly related to the reductions in state funding and to 
inflation.  Using the Higher Education Price Index, reduc-tions in 
state funding account for 46 percent of the tuition growth, 
inflation for 51 percent, and spending increases in the University 
and enrollment reductions for the remaining 3 percent.

Will we get the necessary state investment to sustain quality 
improvements and keep tuition at reasonable levels?

Let me give you another example.

THE ARMY HIGH PERFORMANCE COMPUTING RESEARCH CENTER

The Army High Performance Computing Research Center was 
established at the University of Minnesota in 1989. It was made 
possible by the existence of our world- class Supercomputer Center 
and selected investment of state funds.

The State of Minnesota invests about $750,000 a year in this 
project.

The original federal grant that established the Center was for 
$63,688,309 for the period 1989 through 1995, about $12 million a 
year, most of it spent in Minnesota.

The Center¹s researchers also generate an additional $4.3 million 
or so from eleven other public sources per year, and about $1 
million a year from over thirty industrial sources, for a total of 
over $17 million per year.

The Center itself employs 20-25 graduate students every year, and 
15 post-doctoral students; about the same number work in related 
research projects.

A good return on an investment of $750,000 a year in state 
funding!

That return on investment will continue.  I¹m happy to report that
Congress-man Sabo announced this morning that the contract has 
been renewed $21 million for the next three years, with the option 
to renew two more years at $7 million a year.

And then there is the return on the research itself!

And, there are educational benefits as well, even apart from 
graduate education:  A Summer Institute on High Performance 
Computing for Undergraduate Students attracted 18 students this 
past summer ­ freshmen through seniors ­ from Minnesota, and 
thirteen other universities, including four Historically Black 
Colleges and Universities.

A good educational return!

A judicious investment!

Will we have the resources to continue such centers?

These are models for our future development‹on a selective basis.

These kinds of initiatives have placed the University of Minnesota 
among the top 16 U.S. universities, public and private, in annual 
federal funding for research and development.  In 1992-93 our 
researchers brought $262 million into the state's economy, quite 
apart from the knowledge and skills gained and the jobs created.

These kinds of developments have led to a vigorous patenting and 
licensing program. Between 1986 and 1992, we ranked 6th in the 
nation in patents and signed 222 license agreements with 179 
companies.

Let me give you an example from our outreach.

THE MINNESOTA EXTENSION SERVICE
Outreach, of course, takes many forms.  In fact, most if not all 
academic units participate in outreach.

The Minnesota Extension Service has broadened its range of 
activities significantly in recent years.  Essential work with 
agriculture continues,drawing on University expertise in the 
Agricultural Experiment Station.  As part of the Minnesota 
Extension Service restructuring plan, its ³re-invention² plan, ten 
interdisciplinary areas of specialization within the MES are being 
implemented and formal ties have been created with 15 university 
colleges, campuses, and other units.  This ³re-invention helps MES 
address some of the central issues facing Minnesotans: environment 
and natural resources, human development, community leadership, 
and economic development.

It is work that is truly in the spirit of the land-grant 
university, and essential to our communities.

But, both federal and state funding has been cut severely in 
recent years.  Fees have been introduced for certain services.  
Considerable layoffs have been necessary:  72 people have been 
laid off since December 1, 1991.

Will the state ‹ which sets the budget for the MES directly as a 
state special ‹ will the state renew its commitment to this very 
effective instrument for addressing economic and societal 
problems?

What are the factors that determine success in research, 
education, and outreach?

People, people, people!  That's the key!  Faculty members who are 
the established and future leaders in their disciplines.  
Supported by highly qualified staff, and the best technology 
available.

Finally, and most important, are we going to have the state 
investment to sus-tain the academic departments that make  these 
teaching, research, and out-reach activities possible?

THE DEPARTMENT OF PSYCHOLOGY

Take the Department of Psychology, one of our premier departments.

A recent accreditation report written by a Princeton professor 
said this:

     (p.2)  ³it is quite a feat of faculty talent and
     commitment that Minnesota has managed to retain its
     ranking in terms of quality of faculty and graduate
     programs (e.g., ranking of 5 in latest Gourman Report,
     1993). This is a notable achievement for a department
     with so many students and so few faculty (e.g., Michigan
     and Illinois each have approximately twice the faculty
     for 60-70 percent the number of graduate students. . .

     Lest you think that this department is only concerned
     about graduate education, let me quote another passage:

     (p.2) ³The Department mounts an extremely impressive and
     broad-ranging undergraduate program . . . Special effort
     is made to maintain a tradition of core faculty teaching
     the core curricu-lum  ­ a particularly notable objective
     in view of the small faculty and the large enrollments ...
     The basic program is well-supple- mented by opportunities for 
     research participation and individual attention, especially 
     in the Honors Program.

     (p.5)  And poignantly:  ³Our meetings with faculty,
     staff, and students revealed tremendous strengths in all
     sectors, but in each case resource limitations threatened
     some vital aspects of the programs and offerings.

     (p.6)  ³The Department is extremely tight on secretarial
      and technical support.

     (p.7) ³. . . a crying need for computer networking and
     support in the Department, and for a budget for equipment
     repair and replacement.

     and finally:

     (p.7)  ³A salary gap between Minnesota and its peer
     departments at the Associate Professor and young Full
     Professor ranks is also worthy of attention to ensure
     retention of some very promising scholars who may well
     represent the future leadership of the Department.


Overcrowded, underfunded.  A national leader that may be slipping!

This is a decline that it has not been possible to stave off in 
spite of the fact that CLA, and Psychology, were main recipients 
of reallocated dollars in 1991.  These investments ­ achieved by 
painful reallocation ­ were obliterated by the State¹s budget cuts 
in the last few years.

Can this trend be reversed?  It must be!  We are talking about the
intellectual life blood of the enterprise!

=======================================
UNIVERSITY 2000:  A PARTNERSHIP RENEWED
=======================================

The new Partnership Proposal, our budget request to the State for 
the 1995-97 biennium, is the first major financial installment in 
University 2000 .  It identi-fies essential needs, essential 
investments‹$137 million worth of investments:

‹    Investment in faculty and staff salaries ‹ $45.4 million,
     3 percent of our compensation base for a pool which we
     will seek every opportunity to increase. Should the
     state's finances improve and/or any other opening present
     itself, we would leap at such an opportunity. 

‹    Investment in University 2000 Critical Initiatives ‹ $43 
     million for the biennium including. 

     * Recruitment and retention of key faculty, to keep 
       the creative and productive people who give us national 
       and international leadership, and who provide exceptional  
       learning opportunities for our students, and to recruit the 
       next generation of scientists, scholars, and artists to 
       continue that tradition. 

     * Strengthening of top-ranked departments and
       interdisciplinary centers and programs ‹ our claim to
       leadership in research and education‹including the new
       Cancer Center and other initiatives. 

    * Investment in student services, from recruitment and
      admission to financial aid, registration, and community 
      building.

    * Investment in educational infrastructure, including
      libraries and distance education. 

‹   Investment in physical resources to support our academic 
    programs and at least prevent further deterioration of our 
    deferred maintenance situation ‹ $33 million;. 

‹   And, of course, cancellation of the $16.2 million cut in our 
    current base that the state's budget cap would impose on us ‹ 
    if maintained!

A total of $137.6 million of investments in the most crucial needs 
of the state's flagship university!

Like any good partnership, this partnership is based on objectives 
to be achieved, on specific commitments to, and measures of, 
outcomes, on specific benchmarks.  The investments we are asking 
for are tied to specific results to be delivered.  Our Partnership 
Proposal is a new contract that we are placing before the state.

Among the critical measures are: 
*    Characteristics of entering students(readiness and diversity)
*    Graduation rate 
*    Student experience
*    Post-graduation experience 
*    Responsiveness to compelling state needs
*    Scholarly, scientific, and artistic accomplishment 
*    Outreach/public service.

We are staking our reputation on being able to live up to 
ambitious benchmarks.

If we are given the necessary investments by the state, I have no 
doubt we can deliver.

Aren¹t we all spoiling for the opportunity to prove it?

It will take $137 million to begin to restore what has been lost 
over a decade or more.

We have every right ‹ and I think obligation ‹ to lay this 
proposal out to the Governor and the Legislature.  That is what I 
have proposed to the Regents.

It is still early, but the early reception by state leaders and by 
the Finance Department has been positive.  I am absolutely 
convinced that our political leaders want to support the 
University, but to do it we need to prove that we are even more 
important than the many competing needs.

It is important that our proposal does not ask the state for the 
entire $137 million.  We want a partnership, and we have proposed 
a partnership financing agreement:

*    $77.7 million from the state over the next two years ‹ a
     5.5% per year increase on the proposed capped budget;
*    $30.3 million from increased tuition revenue over the
     next two years ‹ a 5.5% per year increase; 
*    $1.5 million from other revenue increases over the next two 
     years; and
*    $28.2 million from University reallocation over the next
     two years.

We are asking the students to join us in this partnership to 
contribute $30.3 million through tuition increases.  We do not do 
this lightly, but we do it in the conviction that the  students 
are the ultimate beneficiaries of the University 2000 plan.

The proposal also launches yet another major restructuring and 
reallocation effort, another self-help effort by the faculty and 
staff of the University of Minnesota.

$28.2 million has to be carved out of already seriously stretched 
budgets to meet our self-imposed target for re-investment of 
existing resources.  On top of the $82 million already reallocated 
or cut from those same budgets over the past five years!

But, if we can do that in partnership with the State ­ with our 
main partner giving us abadly-needed infusion of funds --­ I 
believe we can make yet another major effort to help ourselves.

=================================
THE IMPORTANCE OF A UNITED EFFORT
=================================

It is important that we should be united in these efforts to 
secure the future of our University.

Unfortunately, I already see the signs of corrosive dissension.

Yes, of course, we may have differing views.  There are many 
constituencies within the University, with different aspirations 
and concerns.  Faculty and staff salaries are a matter of deep 
concern.

Ultimately, a biennial request has to serve the interests of the 
entire Univer-sity, as an institution of research and education.

Ultimately, a biennial request has to serve the people of 
Minnesota. The request that I have placed before the Board of 
Regents does that.  It is not perfect, but it is a good plan to 
which many have contributed over a period of a full year Regents, 
faculty, staff, students, community leaders from across the state.

I can assure you that internal strife at this stage will hurt us 
badly with the State.

I urge you all, faculty, staff, and students to throw your full 
support behind this plan.

This is a sound beginning of what must be done.  The Partnership 
Proposal lays a sound foundation for what we must do.

United we have a good chance to succeed!

Divided we will most surely fail!

==========
CONCLUSION
==========

For almost 150 years, the University of Minnesota has always been 
the state's best partner and investment ‹ short-term and long-
term.

Short-term, every tax dollar invested in the University generates 
more than three additional dollars during the same year.

Long-term, the investments in University research, teaching, and 
outreach generate far greater returns, in the state's economy, in 
the long-term solutions to the social problems that make demands 
on the state treasury, in the quality of life in this fine state.

Today, with University 2000 as our vision and plan, and with 
specific objectives and demanding benchmarks as a self-imposed 
test of our productivity, we can document our investments and the 
results they will produce better than ever before.

Those are the messages that we all must communicate to the people 
and their elected representatives ‹ standing united in our 
commitment to this fine university.  With help from Minnesota's 
opinion leaders, from members of the Alumni Association, from the 
entire University community, and constituencies across the state ­ 
with the help of our political leaders ­ we can make that case and 
stay on track with a genuine and productive partnership.

Let's go forth! 

                                                     NILS HASSELMO
                                                         PRESIDENT

===========
DISCUSSION:
===========

Following the address, senators and members of the University 
community had an opportunity to pose questions to the President.  
A summary follows:

QUESTION:  According to some estimates, it would take $400,000 to 
           bring UMM faculty salaries up to the standard of a 
           Level 1 school among baccalaureate only colleges.  To 
           improve the conditions for staff and to catch up with 
           physical equipment and the library another $1.5 million 
           would be needed.  Is there anything in the legislative 
           request earmarked for the extraordinary needs of UMM?

RESPONSE:  The University is looking at preserving and rewarding 
           quality and has built into the budget categories where 
           that can be done.  They include opportunities through 
           the salary pool, investments in recruitment and 
           retention of faculty, and investments in the top ranked 
           departments and programs.  All campuses will have 
           access to these kinds of funds for quality
           enhancement.

QUESTION:  The current budget proposal requests a real wage cut 
           against University staff.  With such a proposal that 
           clearly fails to meet employees economic needs, how can 
           you expect a partnership with AFSCME and other 
           University employees?

RESPONSE:  All employees of the University need to work together 
           to make as strong a case to the State as it can--one 
           that is credible and one that the legislators and the 
           Governor can espouse.  It is in that context that 
           difficult tradeoffs have been made in developing the 
           request.  The 3 percent pool that is being created is 
           to make the strategic investments in salary increases 
           that have to be made.  At the same time funding needs t
           to be set aside to make necessary quality improvements 
           in order for the University to serve the State even 
           better.

           The President reiterated his belief that the 
           partnership proposal deals with the competing demands 
           in a reasonable fashion.  It is just a beginning, he 
           said, but it is time to reverse the trend that has 
           developed in recent years.

QUESTION:  How does the University propose to eliminate crowding 
           within undergraduate programs?

RESPONSE:  The University can reduce overcrowding by using 
           available faculty resources more effectively and 
           structuring the curriculum in such a way that the core 
           curriculum receives first attention.  Moreover, it can 
           set aside more specialized low enrollment courses and 
           use technology more effectively.  There are many 
           learning opportunities that can be provided through 
           computer-aided instruction.

QUESTION:  How will the responsibilities of the Vice President for 
           Institutional Relations and the Vice President for 
           Outreach differ and/or interrelate?

RESPONSE:  The Vice President for Institutional Relations will 
           retain responsibility for development, alumni 
           relations, University relations, State and Federal 
           The Vice President for Outreach will focus on strategic 
           planning for the outreach function and distance 
           education.  The University has an enormous number of 
           outreach activities and it must develop a strategic 
           plan in order to ensure it makes the proper investments 
           in these activities and to maximize the service and 
           outreach that it provides.  Also emerging rapidly in 
           higher education is the utilization of distance 
           learning and it will be necessary to seek out a vice 
           president who has experience and competence in this 
           area.  In order to remain competitive, the University 
           must assess, plan, and properly position itself in this 
           emerging field.

QUESTION:  The president was asked to comment on the following 
           review about the decline of the City College of New 
           York in the context of presenting the meaning of the 
           University to the State:  "The university is the one 
           site in our culture where knowledge is valued for its 
           own sake or rather for the free and enlarged views of 
           human life that it affords.  Should it lose that sense 
           of purpose, the university would be just another social 
           service institution.  Its sense of standards of high 
           purposes would be mere pretensions and nobody would 
           care especially whether it lived or died."

RESPONSE:  Universities serve society best by being universities--
           that is to say, places for free inquiry, free speech, 
           and free exchange of ideas. The University of Minnesota 
           must preserve that environment and at the same time see 
           that the benefits from having free and open inquiry, 
           research and scholarship, and artistic expression 
           accrue more systematically to the citizens of our 
           society who support the institution.  That is the 
           difficult part. How can the University be a place of 
           free and open inquiry where the creation of knowledge 
           and insight occurs and at the same time share the 
           fruits of those labors effectively with our society in 
           a way that has credibility.

QUESTION:  Reciprocity agreements with North and South Dakota and 
           Wisconsin have been an important factor in recruitment 
           for the University of Minnesota. What is the likelihood 
           that those agreements will continue and/or be expanded 
           in the future?

RESPONSE:  One of the advantages of reciprocity is that it 
           broadens the student market.  It enables institutions 
           like the U of M to draw on some of the best and most 
           qualified students that it might not otherwise be able 
           to attract. Reciprocity does pose some problems, 
           however.  For example, the balance of trade with 
           Wisconsin is extremely skewed in that  Wisconsin 
           students pay Wisconsin tuition in Minnesota, and 
           Minnesota students pay Minnesota tuition in Wisconsin.  
           Because the U of M has higher tuition than the U of W 
           there is a loss of net revenues from Wisconsin 
           students.  On the other hand, the agreement between the 
           State of Minnesota and the State of Wisconsin is tied 
           also to income reciprocity and in that area Minnesota 
           is the net gainer. The University has brought to the 
           attention of the State its concern about the loss in 
           revenues in the hopes that it can be reimbursed.

QUESTION:  Within the past few weeks both the graduate and 
           undergraduate branches of student government in the 
           Twin Cities have withheld their support for the 
           partnership proposal of the bienniel budget request 
           because there is insufficient information in it 
           concerning tuition increases.  The President was asked 
           to clarify his position on the issue of tuition.

RESPONSE:  One of the fundamental principles of the University is 
           that access should not be limited for financial 
           reasons.  Because of this, there is deep concern about 
           tuition.  Forty-six percent of tuition increases within 
           the past fifteen years can be directly attributed to 
           cuts in State funding.  It is in the best interests of 
           students to work with the University in seeking an 
           increase in funding from the State.  The President said 
           he believes this can be done best through a proposal 
           that is credible, even if it means the students must 
           shoulder another tuition increase.  It is also 
           important that faculty, students, and staff stand 
           united in this effort.

QUESTION:  The President was applauded for his efforts in 
           reinvesting and reinvigorating outreach as the third 
           component of the University's mission and for 
           establishing a new office for a vice president for 
           outreach.  In connection with the outreach mission, he 
           was asked how he envisioned the role of University 
           College as it would be portrayed through the coordinate 
           campuses and throughout the State.

RESPONSE:  University College is an enhancement of the 
           University's ability to deliver access to education.  
           It will enable students now enrolled in Continuing 
           Education and Extension to be better served and will 
           offer opportunities for access in ways that have not 
           been available in the past. To quote a well-worn 
           phrase, the University will be more "user-friendly" by 
           extending itself throughout the State and by putting 
           resources where they can be critically important to 
           serve students.

QUESTION:  President Hasselmo was asked to comment on the 
           widespread concern about the significant increases in 
           graduate student fringe benefit rates, which for 1994-
           95 increased to 43.7 percent.  This will make graduate 
           student assistants more expensive than postdoctural 
           research associates who work fulltime on research and 
           who already have a Ph.D., it was noted, and there is 
           widespread fear that this will result in total collapse 
           of large sectors of graduate education at the 
           University.

RESPONSE:  The University of Minnesota is trying to deal with a 
           situation that is not self-imposed and is working very 
           hard to find a solution.  Universities have opted for 
           different approaches when it comes to dealing with this 
           particular problem and the President assured the 
           audience that the administration is doing all that it 
           can to deal with this matter in a most judicious 
           fashion.



                        II. ADJOURNMENT

The meeting was adjourned at 4:30 p.m.


                                                   MARTHA KVANBECK
                                                        Abstractor