President Jacobson called the 2003 Spring Faculty Assembly and March 19 Faculty Senate meeting to order in the Farish Hall Kiva at 12:00 noon.
 
MEMBERS PRESENT:  [34]
ARCH:     B. Price
BUS:       W. Chin, S. Khumawala, M. Parks, D. Rude
CLASS:   S. Craig, W. Herendeen, D. Jacobs, A. Jacobson, G. Jowett, J. Kotarba, J. Middents, G. San Miguel
EDU:       S. McNeil, A. Warner, C. White
ENGR:    O. Ghazzaly, R. Metcalfe, G. Paskusz, D. Shattuck
HRM:     K. Titz
LIB:         S. Ferimer, J. Myers
NSM:     G. Auchmuty, D. Blecher, P. Copeland, J. Eichberg, G. Etgen, A. Ignatiev, K. Kadish, D. Wells
OPT:      R. Manny
TECH:   K. Greenwood
GSSW:  H. Karger
 
MEMBERS ABSENT:  [17]
CLASS: V. Brady, K. Brown, P. Gingiss, B. Johnsen, B. Lange, R. Murray, T. Tillery, R. Weldon
EDU:     M. Connell
ENGR:   T. Cleveland, S. Kleis
LAW:    S. Huber, P. Linzer
NSM:    E. Leiss
OPT:     S. Quintero
PHA:    C. Pedemonte
TECH:  C. Goodson
 
ON-LEAVE: B. Breitmeyer
 
VISITORS:   George McDavid (UHS Board of Regent Chairman), Arthur Smith (UHS Chancellor and UH President), Edward Sheridan (UHS Senior Vice Chancellor and UH Senior Vice President for Academic Affairs/Provost), John Rudley (UHS Vice Chancellor and UH Vice President for Administration & Finance, Elwyn Lee (UHS Vice Chancellor and UH Vice President for Student Affairs), David Bell (UHS Assistant Vice Chancellor for Academic Affairs), Ed Hugetz (UHS Assistant Vice Chancellor and UH Assistant Vice President for Planning & University Outreach),  Dana Rooks (Dean, M.D. Anderson Library), James Anderson (Executive Associate to UHS Chancellor and UH President), Lawrence Curry (Grand Marshal, 2003 UH Commencement, and Professor of History Emeritus), Theresa Monaco (Professor of CUIN), Jeff Fuller (President, Staff Council)
 
REPORT ON FACULTY SENATE ACTIVITIES:  Anne Jacobson
     What has the Faculty Senate done since the Fall Faculty Assembly?  In terms of external representation, there  have been two Texas Council of Faculty Senates.  Sen. Eichberg has represented UH at both of them.  Topics discussed at  the October 2002 meeting included:  salary equity, improving shared governance, the status of non-tenure track faculty, distance learning and how it is practiced at various institutions, and in the particular case of UT-Austin, physical constraints while the February meeting of the Council focused on how each university is being affected by budget shortfalls.  It also passed a resolution, on which the Executive Committee does not plan to take any action.  It is available with the handouts and is presented for information only.
     In terms of internal representation, the Presidents and President-elects of the four UHs meet regularly as the University Faculties Executive Council (UFEC).  Topics covered  are the budget, discussing the Chancellor/President search, looking at and consider issues of equity across the system.  Two members of this group, Nell Sullivan who is President of UH Downtown and Pres. Jacobson are on the search advisory committee for the Chancellor/President.   Alex Ignatiev, Senator from NSM, is also on the committee.
     The November 6, 2003 Symposium on Models of Shared Governance highlighted the desirability for UH to look again at the structure of shared governance, i.e., how it might be fine tuned and expanded.  The first recommendation of the 2002 Faculty Climate Survey Report is to form a task force with representation from the various constituencies across the campus to look at shared governance.
     The Senate has been working on a statement of "The Principles of Shared Governance" for almost a year.  In its final form, the statement should serve as a preamble to the Faculty Senate's Constitution.
     Working on stronger ties with the councils, the Senate leadership has attended several meetings of the Research Council to discuss ways in which faculty could have more input to the University's research mission and develop criteria to determine what is good research and good scholarship on campus.  The Council has a subcommittee already working on this.  The criteria is not intended to supersede input from faculty in the colleges, but perhaps to set some kind of frame work in which recommendations generated by the academic units takes place.
     The Senate has been facilitating the formation of what will be a permanent University Commission on Women.
 In December, the Senate discussed Appendix D, a document that utilized additional analyses to prove the scientific validity of the 2002 Faculty Senate Climate Survey.  The Senate voted to accept the Appendix as part of the final report.
     In January the Senate experienced its annual change of leadership.  Within this transition, one of the Senate's standing committees also made a change.  The Legislative and Community Relations Committee is in the process of redefining itself into the Scholarship and Community Committee.  The SCC will highlight enhancing scholarship in relation to UH scholarship in the community.
     The Senate has heard reports from:  Marco Mariotto, Dean of Graduate & Professional Studies, on developments in his area;  Kathy Anzivino, Director of Campus Recreation, about the new Recreation and Wellness Center;  Robert Wilson, Chief of the UH Police, who spoke about bomb threats, first aid and CPR training opportunities, and communication procedures for emergencies.  The Senate has also received monthly reports on administrative and University-wide activities from Edward P. Sheridan, University of Houston System Senior Vice Chancellor and University of Houston Senior Vice President for Academic Affairs and Provost.
     The President of the Faculty Senate is working on plans to facilitate communication within colleges, between senators and other faculty and between senators and deans.  This is particularly important in the time of crisis and uncertainty.  The Faculty Senate also is discussing the formation of an electronic newsletter.
 
PRESENTATION OF SLATE FOR GRIEVANCE COMMITTEE:  Joseph Eichberg
     The Faculty Senate Committee on Committees met on March 12 to discuss the candidates’ slate for the Grievance Committee.  As mandated by the Senate Constitution, colleges that currently lack representation on this committee were considered first.  The Grievance Committee is the only committee elected by the faculty on a university-wide basis. Of the 13 positions currently there are four (4) positions open for election in 2003.  Each carries a full 3-year term.   The following are the candidates for election to the University of Houston Faculty Grievance Committee.  The faculty are listed in alphabetical order:  William Chernish (HRM), Leslie Griffin (LAW), V. Das Gupta (PHA), Howard Karger (GSSW), Robert Keller (BUS) and Guadalupe San Miguel (CLASS).
     Sen. Eichberg reminded everyone that a nominee must be a full-time tenured faculty member with the rank of associate professor or higher or senior associate librarians or higher.   Members of the administration, including deans or directors, assistant or associate deans or directors, and department chairs, are not eligible  to be members of this committee.  Other restrictions include no more than two members shall be from the same college when said college has fewer than 200 full-time, tenured or tenure-track faculty and no more than three members from the same college when said college has 200 or more full-time, tenured or tenure-track faculty.  And any nominee must agree to stand for election.  Bearing all that in mind, the floor was opened to further nominations for the Grievance Committee.   There were none.
     Sen. Eichberg said the ballots will be mailed to voting faculty on April 1.  The deadline to return ballots to the Faculty Senate Office is April 12.

ADDRESS BY CHAIRMAN OF THE UNIVERSITY OF HOUSTON SYSTEM BOARD OF REGENTS:  George "Gene" McDavid
     Good  morning . . . and thank you,  Anne, for the invitation to speak to the 2003 Spring Faculty Assembly.  It is a very real honor and pleasure to be with you.
     Most of you know of my absolute love and dedication to this university.  I came to Houston 45 years ago for the specific reason of attending  the University of Houston.  UH was even then the only university in the south where a student  could attend school full time and still support a family.  Most universities are located in small towns and cities—where meaningful jobs are unavailable.  UH happens to be located in one of the most vibrant cities in the world.  I was able to get a good job with the Houston Chronicle, and with financial help from UH had a most successful college experience.  I didn’t even know the phrase then—but UH was fulfilling its role as a true “urban” university.
     I must thank you and your colleagues, now and then, who accomplish the teaching and the research that make this university what it is.  By doing your job so well every day, you are making a better tomorrow for us all.   When I leave the Board of Regents in late August of this year, my daughter will become part of UH’s faculty.  I am so proud of her, and so proud that she will be a part of the University of Houston.
     I would like to focus my brief comments on the transition that is ahead for the University of Houston system, and how the Board of Regents views that transition in light of the extraordinary challenges facing the state, the legislature, and the university.
     Seven years ago the Board of Regents and their search committee discovered and hired Dr. Arthur K. Smith.  As a matter of fact, the was the only candidate brought forth by the committee.
     Just a year ago, Dr. Smith informed the Regents that it was his wish, and that of his wife June, to retire.  Dr. Smith --  Art – reasoned that he was reaching the “magic age” of 65, and that he had promised June that this would be his retirement age.  I tried to persuade Art that 65 was actually a very YOUNG age.  I can barely remember when I was 65!  But Art insisted—using June as his excuse.
     Dr. Smith’s accomplishments since he arrived at UH  have followed the precise priorities set out by the Regents.  I will cite just a few . . .
     First, Dr. Smith merged the office of the President of UH with the office of Chancellor of the UH System.  In addition to the cost savings, the merger of the two administrative units helped UH achieve its present ranking among the great urban academic and research universities. As you know, mergers such as this can be difficult to achieve, because culture and past practices are so ingrained.  It is to Dr. Smith’s credit, and to UH’s faculty and staff, that it succeeded so well.
     Second, under Dr. Smith’s leadership, the UH System and the University of Houston increased student access, student success, and student diversity.  The Regents join me in congratulating each of you for your part in that success.
Since 1997, enrollment at the four universities has increased 14 percent, with enrollment here at UH reaching an all-time high of 34,443 this past fall.
     Retention rates for freshmen has increased to nearly 80%.  The minority student population has grown 30 percent.  No single ethnic group constitutes a majority at UH—which is now recognized as the most ethnically diverse research university in the United States.
     And third, research awards at UH have increased more than 50 percent in the past five years.  In the past year alone, UH increased total research awards from $53 million to $72 million.
     One of our regrets is that at this time of tremendous momentum going forward for UH, the state faces a time of severe economic crisis.  Dr. Smith has taken on the chore of dealing with this situation in his familiar aggressive fashion.  As Regent Board Chairman, I have watched Art exercise leadership of the highest measure in dealing with the legislature, his peers who lead other Texas universities, in the national arena, and with the money issues themselves.  It will not be possible to avoid the effects of the current economic problems—but UH is fortunate to have someone of Dr. Smith’s talents leading us at this critical time. It is comforting to know that whatever the challenges, UH will achieve the very best possible outcome.
     By any measure, Dr. Smith’s legacy will be one of fiscal stewardship, academic and research excellence, and increased student access and success.
     As you know, I am chairing the Search Advisory Committee, charged with finding a new Chancellor/President.  I want to express the Regent Board’s thanks to Anne Jacobson, Alex Ignatiev, Michael Olivas, and Ray Flumerfelt for joining us on that committee.
     The committee is also diverse by every measure, representing a broad spectrum of inside and outside leaders and academics.
     Their job is to identify from three to five semi-finalists for the Chancellor/President position.  Under its by-laws, the Regents will make the final selection.
     As a consultant, the Regents have hired Bill Funk of Korn-Ferry, the same consultant who lead us to Dr. Smith nearly seven years ago.
     We expect the search to be completed, and a new leader hired, by the end of June or early in July.
     I would like to end this with the good news.  Art Smith and June have agreed to stay at UH, and are now looking for a new residence here.
     And now, if time allows, I will be glad to answer any questions you may have.

Questions and Answers:
     Sen. Craig asked, what characteristics are the Board of Regents seeking in a Chancellor/President?  Chair McDavid responded that he sent the search committee members a list of characteristics, but number one is leadership.  There are so many models for successful Chancellor/President all over the country.  While the Board will welcome applications from non-traditional candidates, it is anticipated that the successful candidate will have a strong academic background.
     Dr. Maria Gonzalez asked whether everything is on the table in terms of the budget.  Chair McDavid said Dr. Smith can speak to that.  Dr. Gonzalez said the legislature is talking about tuition deregulation.  She added that Dr. Smith has gone on record saying that if that happens, he has to take care of the other side by providing more scholarships monies, financial aid, grants, loans, etc.  Dr. Gonzalez suggested that the group that will make the decisions on tuition should include both faculty and students.  Chair McDavid said Dr. Smith can talk about the Texas Plan, which is deregulation of tuition, but as he understands it, this plan is not likely to pass the Senate. Chair McDavid said the Board will depend upon Dr. Smith and his management team.  The Board will meet in a couple of weeks to talk about fees in general and will get recommendations from the administration.  The Board has been part of the action in Austin.  Chair McDavid said he wished he knew what was going to happen up there.
     Dr. Gonzalez asked, in terms of the new leader, will the Athletic Program and its $10.8 million deficit be on the table for discussion?  Chair McDavid answered yes; the new leader will have to grapple with that.
 Dr. Theresa Monaco announced the College of Education was voting on its constitution. She commended the senators and everybody who works on self governance.
     Sen. Warner asked about protocol for the search.  To whom should nominations be submitted?  Chair McDavid said all nominations should go to Peggy Cervenka’s office.  There is a file in the Board of Regents Office to which all of the search committee members have access.  Copies go to the consultants so all recommendations will be gone through regularly.  Chair McDavid said he appreciates the input, adding that the Board needs suggestions from everybody.

 ADDRESS BY UH SYSTEM CHANCELLOR AND UNIVERSITY OF HOUSTON PRESIDENT: Arthur K. Smith
     Pres. Jacobson commented that Dr. Smith needs no introduction but she would like to note some changes that have taken place during his tenure.  The Senate is the process of revising the Faculty Handbook and, in looking at the University's mission statement that was approved in 1996, one gets a very definite sense of the transition that has occurred in the past five or six years.  The self conception of the University today is very different than the self conception that was behind the mission statement.  The statement implies UH is really going to get serious.  Today UH is a major, if not always leading, research university.
     Dr. Smith thanked Board of Regents Chairman McDavid for attending today.
     Dr. Smith began by reminding senators that prior to the legislative session the State Comptroller was projecting that there would be a shortfall in the next biennium budget of about $5.1 billion.  She actually acknowledged that very shortly after the last legislative session 2001.  She stuck to that projection until early January of this year.  On January 13, 2003 she surprised everyone by raising her estimate from $5.1 billion to $9.9 billion.  That caused a lot of plans, including those of the Governor for the preparation of the executive budget, to be changed.  She also announced that there was a shortfall in this year's budget.  This fiscal year, the state would wind up with $1.8 billion less in revenue than needed to pay the bills.  Now because the bills have to be paid, her projection means that the legislature either has to find $1.8 billion in new revenue money by August or reduce its state expenditures by that amount.  The Governor, Lt. Governor and the Speaker of the House, all Republicans, issued a letter on January 23 asking all state agencies heads to reduce their general revenue in the current fiscal year by 7%.  That directive came to UH after the Spring semester had already begun, about seven months from closing the fiscal year.  According to the instructions given by the Legislative Budget Board that amounted to over $16 million from the UHS of which $11.4 million comes from this campus.
     Pres. Smith reported to the campus community in a general distribution memorandum the steps being taken to respond to the directive.  The administration had to report by February 7 that it was going to comply with the directive and give a general outline of how to do it.  Essentially, UH did what public universities across the country do when faced with a short term challenge of this magnitude, look at deferred maintenance.  Decide what capital projects can be put off:  desirable, needed, but not absolutely required. $7.1 million in Higher Education Assistance Funds (HEAF) was found that had not yet been encumbered and did not yet have contracts issued.  The University was specifically told by the Legislative Budget Board that HEAF money should be included in the total budget considered, and should also be allowed as a source of money in meeting the mandated reduction.  In addition about $950,000 in lapsed salary money was found.  The rest, 2% out of 7%, was obtained by going to the Vice Presidents, including Provost Sheridan, for reductions from their general revenue budget (Ledger 1) funds -- state tax revenue appropriation.  Also, included in general revenue but not included in the cut is something called general revenue dedicated.  General revenue dedicated consists of the statutory tuition that the students pay that is sent to Austin and then returned as a portion of the higher education formula appropriation.  General revenue dedicated also consists of the 50% of indirect cost recovery that the University generates sends to Austin, again returned as part of the higher education formula appropriation. General revenue dedicated was not part of the amount from which the 7% had to be deducted nor could it be a source of money to be applied to the 7% reduction.  Although UH followed the directions of the LBB, the Comptroller last week told the University that it can’t use HEAF toward the 7% for this year's reduction.  That lowers the reduction to $8.9 million, but the $7.1 million in HEAF cannot be used.  HEAF is a System appropriation that can be used for buildings, bonding, equipment purchases and library books.  HEAF can’t normally be used to pay faculty or staff:  it is strictly capital.  The administration is trying to find ways to switch pockets of money, such as general revenue dollars that are really capital kinds of expenditures, and move those expenditures over to HEAF.  This would free up general revenue that can then used to meet budget reductions.  If necessary, some Ledger 1 fund balances may have to be hit, but if so it will be done lightly.
     Dr. Smith said he thinks the current fiscal year problems have been solved.  More worrisome are the problems shaping up for the next biennium.  The instruction from the LBB was to prepare for a reduction in general revenue, Ledger 1, of 12.5%.  They gave UH a target, as they gave all other universities and other state agencies, that took the current biennium appropriations and general revenue and reduced it by 12.5%.  They then directed everyone to reformat their legislative appropriations request.  One category, initial general revenue, is to stay within the 12.5% reduction from the current biennium and then everything else that was part of the initial request is to be called enhanced general revenue.  That was done based on what is called building blocks.  UH has had its budget hearings with the House Appropriations Committee and Senate Finance Committee.  The House Appropriations Committee has since completed its budget hearings with all state agencies and has moved into markup.  Basically House Appropriations is recommending is a 12.5% across the board cut that applies to both the higher education formula appropriation and special items.  The campus still would have the authority to decide how to spend the appropriation.  The House Appropriations Committee also recommended a 12.5% cut in debt service which passes the cost along to the University.  The bonds have been purchased by bond holders, so they have to be paid.  The Senate Finance Committee thinks it has identified an amount of money that will enable the cut to be 10% versus 12.5%.  They are apparently going to make their budget recommendations based on that amount.  In Texas there are two budgetary processes, one for each house of the legislature.  The House Appropriations Committee prepares the budget in House Bill 1.  The Senate Finance Committee prepares the budget in Senate Bill1.  These two bills always diverge.  Then a Conference Committee is appointed by the Lt. Governor and the Speaker of the House.  The Conference Committee puts together a single budget based within the revenue estimates of the state Comptroller as they exist at that time and then they bring the compromise budget back to both the House and the Senate.  If all goes according to plan by the end of the legislative session on June 2, there is an Appropriations Bill that is then sent to the Governor.
     There are several concerns about the process.  First, in both houses they are talking about reductions to the current biennium appropriations.  The fact is UH’s enrollments have grown and the current appropriation does not reflect that growth.  Second, the Comptroller may change her estimate.  When she decides to come forward with a revised estimate, which she is going to do, the speculation is that it is not going to be better than the current estimate.  It could well be considerably worse, so UH could be looking at an even more gloomy picture for the next year in general revenue than is now estimated.
     Dr. Gonzalez mentioned tuition deregulation.  Dr. Smith said that concept as articulated by Mark Yudof, Chancellor of UT System, is, as Chairman McDavid said, dead on arrival.  There is not legislative support or enthusiasm to give boards of regents total authority to set both statutory and designated tuition.  Tuition flexibility is a possibility.  What several chancellors have been proposing is that the legislature continue to regulate tuition but ease up on the ceiling.  The distinction is this.  Statutory tuition, which is currently $44 credit hour, is set by the legislature and according to previous legislation moves up by $2 a year.  So next year the statutory tuition automatically goes up to $46.  Designated tuition is set by boards of regents internally but may not exceed the statutory tuition.  Tuition flexibility proposals provide a change to the ceiling to three times the statutory tuition, more flexibility than is currently needed.  The revenue from designated tuition can be spent on the same things as Ledger 1 funds with one substantial difference:  faculty members whose salaries are paid by Ledger 1 funds have fringe benefits paid for by the state.  Faculty salaries paid from Ledger 2, local funds, must have the fringe benefits paid by the University.
     It is not clear that universities are going to get this flexibility.  Legislation has been introduced on the Senate side.  The Senate rules are a little bit different than the House.  The House requires 50% plus one to pass a bill.  There is now a Republican majority again for the first time since Reconstruction in the House.  The Senate has the Republican majority but the Senate has a longstanding rule that even to discuss a bill, requires a two-thirds majority.  Two-thirds in the Senate is 21 votes, 21 out of 31.  The Republican majority of the Senate is 19.  One can quickly calculate that Democratic minority in the Senate is really empowered.  They can keep any bill from even being discussed.  The role of the Senate in getting an appropriations bill is much more complicated than the role of the House.  The worst case scenario for UH is to end up with a double digit budget reduction and no flexibility to raise tuition revenue.
     HEAF is a constitutional fund that is not subject to any 12.5% or other percentage reduction for next year.  Tier 1 Excellence Funds also are not part of the reduction.  However, the way Tier 1 money was calculated depended on the earnings on the HEAF endowments.  The earnings on the HEAF endowments, like the earnings on the University endowments or the earnings on one’s 403(B) retirement, are down.  Total appropriations for HEAF institutions this biennium for the Excellence Fund are $34.8 million.  For the next biennium it is estimated to go down to some $22 million strictly as a result of reductions equity prices and the way HEAF is generated by invested capital.  At this point many things are up in the air, things that would normally be decided right now cannot because of uncertainties.  However, we are still taking some risks on next year.  Authorized processes for hiring tenured or tenure-track faculty members have not been stopped.  Some deans and some department chairs may be putting restrictions on these searches but the central administration has allowed searches to go forward.  The other area where UH is taking a risk is in TA/TF/graduate student support.  This is the time of the year when UH has to get offers out to the incoming graduate students so we are continuing to allow offers to be made.
     Two major steps to support graduate students since Dr. Smith came to UH are:  (1) the graduate tuition fellowship program which has been very successful and very well received but is expensive, this year costing $3.2 million.  Just to accommodate tuition increases that are scheduled for next year, it would probably have to go up to about $3.5 million or $3.6 million.  (2) a special program instituted through Dean Marco Mariotto to enhance stipends, particularly for top-notch graduate students.  This program is primarily state funded.  In order to continue and to admit a new class the administration has to make a decision very soon about how to fund the program.
     Yesterday at the Staff Forum there were questions about compensation increases.  UH is definitely going to provide increases for rank promotions for faculty of $6,000 for promotion from associate to full professor and $3,000 for promotion to associate professor.  Whether there will be any other compensation increases for anyone -- faculty, staff or senior administrators -- will depend on the final budget.  Dr. Smith said the administration will do its best.  He added that he still has an IOU outstanding from last year when UH did a 3% average increase for the faculty based on merit.  The state had promised to fund 50% of a 3% staff increase but that did not come to fruition.  UH was able to provide its 50%.  As the other 1.5% total percent for staff was not met, Dr. Smith said he feels a moral obligation to staff.  If the University is able to provide any kind of compensation beyond promotion increases for faculty, Dr. Smith said he wants to give first priority to making up that 1.5% for staff.  He will do the very best he can, but UH is looking at what amounts to a very, very serious budget reduction.  The degree to which UH is going to make up those reductions with other revenue at the moment is very uncertain.
 
Questions and Answers:
     Dr. Lawrence Curry asked whether Dr. Smith’s worst case scenario included the possibility of financial exigency that would allow UH to have a reduction in force in tenured faculty or the elimination of any department, school or college?  Dr. Smith said no.
     Sen. Myers said she watched Dr. Smith’s presentation to the House Appropriation Committee in which he said that it seems higher education is now seen as a personal benefit, not a public good.  That is very sad.  She asked Dr. Smith and Chairman McDavid, as people who have been most in contact with the legislature, how pervasive is that feeling?  Sen. Myers added that she thinks Texas and most of the country are still in the mode of cutting taxes and cutting government.  At what point do people believe that there are things that should be funded in Texas?  Dr. Smith said this is not a sudden thing.  It is part of a trend that has been unfolding over the past few decades, and across the country.  If one looks at the cost of educating an undergraduate student in a public university, the percentage of the cost that the student and his or her family pays has been going up.  The cost that has supported by state tax, regular appropriation from the state legislature, has been going down.  One has been increasing sharply and others declining.  This is an erosion of what had been a consensus in this country, the notion that a publicly supported education system was in the public good.  More and more, having an educated citizenry is being seen as a private benefit.  As a private benefit, the individual pays.  That is worrisome.  That is especially worrisome in the state of Texas where the rapidly changing demographics, highlighted in the “Closing the Gaps” report from the Texas Higher Education Coordinating Board, shows the need for state universities to enroll another half million student in higher education.  How do public universities do that if the legislature is not providing funds in terms of the higher education formula or in terms of Texas grants for needy students?  How are students going to come up with the money?  Are they going to do it with the financial aid the universities provide or the federal government provides?  Are they going to do it loans?  It is a public policy issue.  Dr. Smith said his responsibility is to preserve quality.  That is the advice he gives to the Board of Regents.  If one allows the quality of a institution to decline, it may take decades to regain it.  Therefore, it is better to increase fees and tuition paid by students in the short term even if it has a negative impact on affordability.  The University can try to make up for affordability.
     The legislature may not complete its work by June 2.  It is highly possible that the legislature may finish its session without an appropriations bill.  If it doesn’t, they have to wait out the Governor’s veto period of about 20 days and the Governor would call the legislature back into special session to deal solely with appropriations.  That would put budget decisions into July.  It might be July or August before the University actually has a budget that it could then bring to the Board of Regents.  That leaves a month or so in which to make some fundamental decisions about the next fiscal year.  Between now and then we will be taking some risks.  Some of the risks may be important and some may not, but the purpose is to uphold UH’s commitment to quality and upward trajectory.
     Chair McDavid said he has a more optimistic view that may come from his advanced age.  Chair McDavid said that to him, higher education as a real requirement in this country, came right after World War II with the 52/20 club when all the veterans got out.  Chair McDavid said before then he only had one member in his family who ever went to college.  To him higher education as what one needs to do is a very positive thing.  Chair McDavid said it is almost a generational thing; it is a new thrust.  In Texas, as in most southern states, the tradition has been that the legislature is really run by the rural counties.  That has been true since the beginning of time and the rural counties normally look upon higher education as not being necessary to get the crops in.  However, this legislative session may be the first in which the urban powers seem to be more than the rural powers.  Dr. Smith said he is still optimistic.  He thinks higher education will come out of this with some tuition flexibility.  Dr. Smith said without a doubt, even if universities receive tuition flexibility, they are going to be asked to suffer some pain.  Dr. Smith said UH is going to be asked to reduce its budget to some extent:  maybe not 12.5% or 10%, but perhaps 3-5%.  Dr. Smith said UH is going to have to tighten its belt; the rest of the states are tightening their belts, and Texas universities are going to be asked to demonstrate a commitment to streamlining operations and serving wherever they can.
     Sen. Warner said senators and faculty need help in being alerted to major issues.  What can faculty, as private citizens using private telephones and plain paper, do to help the University?  Can the University set up an alert system, maybe through the Faculty Senate, to let faculty know what could/should be done?  Dr. Smith said there have been 800 bills filed that the administration is trying analyze.  He didn’t know what would happen or what should be done right now.
     Pres. Jacobson said there are areas as UH looks at cuts where the faculty interest and the President’s views absolutely coincide and one of these is the hiring of new faculty.  But that doesn’t necessarily make it one of the dean’s priorities.  What faculty should do in a situation like that?  Dr. Smith said the approach his administration has taken is not to micromanage the colleges.  When it was determined that UH was going to have do a 7% cut during the current year, the message was sent down through the Provost to the various deans, etc.  Within the context of a particular college, and some colleges have a great deal more flexibility than others, the administration allowed the deans to decide for themselves what the best way would be for their particular resources to be cut.  Dr. Smith said he thinks that is a good approach.  The alternative is for the administration simply to centrally dictate a campus-wide hiring freeze and tell the deans exactly when they can spend the money and where.  Dr. Smith said he asked the vice presidents to give him a scenario for a 3% cut and a scenario for a 5% cut, but he has also told them that while he wants to see the 3% cut scenario, they can keep the 5% hidden.  UH does have to make some kind of plan.
     Pres. Jacobson asked if Dr. Smith thinks the hiring of new faculty would be part of what preserves quality?  Dr. Smith said yes.  Pres. Jacobson said this may well be a battle for several years coming up with various people taking the view they are committed to quality but everything has to wait until next year.
     Dr. Smith said he knows how deans manage budgets.  There is nothing that deans like more than a faculty member taking a full year’s leave without pay, or a sabbatical or faculty development leave with half pay.  Holding a position vacant for a year is a way of generating short-term savings.  Deans have to have that flexibility.  As a principle, the administration is saying to the fullest extent possible the department should fill that line that has been authorized.  There are some 76 authorized faculty searches underway at the beginning of this fiscal year, including some funded with Tier 1 money.  There have been some faculty resignations, too, as normally occur.  Some deans will use that flexibility by keeping the positions vacant and some will not, but that is a decision that is best left between the dean, the department chair and the faculty.
     Sen. Craig asked if the University has sorted out the finances from Tropical Storm Allison?   Dr. Smith said there was reasonable hope that the legislature may cover the remainder.  UH suffered $103 million in damage from Tropical Storm Allison and has recovered $78 million of the losses, leaving about $25 million uncovered.  The cost was covered by diverting two years’ worth of UH’s capital renewal and deferred maintenance allocation in HEAF.  So there were some deferred maintenance projects and capital renewal projects that have been delayed.  By the same token, there were some projects that UH had to do because of storm that in the long term we would have wanted to do anyway.  The fact is UH is out $25 million.  Historically, the state has stepped in to provide the funding. In his State of the State address, the Governor talked about setting aside as much as $60 million.  He identified the Rainy Day Fund for storm recovery and that would include the money that UH would require.  The UT Health Science Center was also hit pretty hard by Allison as was Texas Southern University.  A bill has been introduced in both the House and the Senate that would provide $25 million through tuition revenue bond money.  That is a good vehicle.  It is not assured but there is a good chance that UH will get that relief.  If it does, of course, it will be capital.  It won’t be money that can be used for faculty positions or faculty salaries.
     Sen. Craig asked, how does that impact the rest of the budget’s picture if the Legislature doesn’t provide the funding?  Dr. Smith said UH has already incurred those costs but there are other capital renewal and deferred maintenance projects waiting.  Dr. Smith said UH will still have the HEAF budget.  There are always capital renewal projects.

PRESENTATION ON THE 2003 FACULTY/STAFF CAMPAIGN FOR THE BENEFIT OF THE UNIVERSITY OF HOUSTON:  Dana Rooks, Dean of Libraries & Alex Ignatiev, Director of TCSAM and Professor of Physics
     Sen. Ignatiev opened by saying that the Senate has heard some significant financial challenges at UH.  When asked to co-chair the faculty and staff giving campaign with Dean Rooks and with Wendy Adair, Sen. Ignatiev said he reflected back on the needs of the University and focused on the Library.  There are many worthy needs in a university, but faculty and staff should really support their Library.  All faculty need the Library.  They use the Library in many ways.  Sen. Ignatiev said he has committed to do that and he hopes that the faculty of this University will commit to do that.  The Faculty Senate members are elected as leaders of the faculty.  The Senate has the ability and the responsibility to lead in this giving effort, to support the Library and other worthy needs on campus.  The driving force behind this expansion is Dean Rooks.  She has really focused on getting this Library upgraded and she is the chair of the giving campaign.
     Dean Rooks said those faculty who have been here for many years know that she is not the driving force behind this addition to the Library.  That driving force is the Faculty Senate.  The Faculty Senate was with the Library in the early 1980s writing letters, supporting its position to get more space and new facilities.  The Senate's support has never wavered.
     Dean Rooks said what she want to do today is to make a pitch for the Senate to help complete the funding for Library expansion with this campaign.  The University committed $25 million for this building, the single largest commitment from University funds ever made.  Unfortunately, having not had an addition since 1975, the Library needed something a little larger.  Dean Rooks said the master plan projected a building of $45 million, so the Library has engaged in an effort in the past 2.5 years to raise the additional $20 million.  Believe it or not, even in these difficult times, the Library has raised over $18 million.  Now the Library has a challenge grant from the Kresge Foundation.  If the Library can finish this campaign to raise another $1.5 million, the foundation will give UH the remaining $0.5 million.  The final push is on every front from faculty and staff efforts to alumni efforts.  There are many other donor groups.
     Dean Rooks said the addition will be transformational.  There will be a dramatic increase in space.  Right now the building is about 357,000 square feet with 1.6 million volumes and 880 study spaces.  The Library serves 13,000 people a day.  There are 144 digital knowledge workstations and 12 group study rooms.  In the new facility there will be over 500,000 square feet of space, a book capacity of 2.4 million in the M.D. Anderson facility, over 2600 student study spaces, 350 computers, and 22 totally wired and equipped collaborative student study rooms which are desperately needed.  The most dramatic change is how inviting a place it will be.   There will not be any black glass. When a visitor walks into this place, it is going to be open.  It is going to be airy.  It is going to be light.  It is going to have colors and be inviting.  It is going to have comfortable chairs and lounge areas.  There will be all kinds of spaces.  It will be a 24-hour facility.  Special collections will be brought down to the second floor at the head of a beautiful staircase so that students can be introduced to primary research materials.  That is how UH makes them scholars.  The Library will be as service oriented as always.  There will be only two service points to make more efficient use of Library resources. There will be two state-of-the-art multimedia classrooms that will be totally wired for information literacy instruction.  There will be a 24-hour cyber café and study lounge.  There will be a beautiful special events room, on the second floor looking out over Butler Plaza.  Elizabeth Rockwell has endowed this room.  It is going to be spectacular.  It is going to be wired.  It is going to be beautiful and it is going to be ours. The lower floors of the existing building will be completely renovated.  There is going to be an outdoor plaza that will be a focal point on the campus and the largest flow through area.   There will be beautiful art and a beautiful venue.  The Honors College has been in the basement forever.  It will move to the second floor looking out over Lynn Eusan Park.  They will have incredible new facilities, a conference room, their own seminar rooms, offices for their faculty, etc.
 
Questions and Answers:
     Sen. Eichberg asked if the Library is not successful in raising the funds, will the challenge grant be paid?  Dean Rooks said no, but added that she will be successful.  The Library has gotten enormous support.  When the campaign first started no one thought the Library could raise $20 million in a little over three years, but we will.  The Library has community support.  It has support from every aspect of this campus -- alumni, Regents, etc.  People believe in this Library and the things that the Library staff are doing for the campus.
     Sen. Copeland asked the proposed date of completion.  Dean Rooks responded, December, 2004.  Sen. Myers said the new wing will open December 2003.  Dean Rooks said the plan is to move everyone into the new wing and renovate the far north end, then shift people back and renovate the middle, so the place is going to be a mess for a couple of years.
     Sen. Shattuck asked how faculty could get a copy of the PowerPoint presentation to use to talk to other faculty?  Dean Rooks said call Development Officer Amy Leggio at x38865.
     Sen. Greenwood asked when pledge/contribution cards would be ready.  Dean Rooks said she thought those had been mailed out.  If that is not the case, please let her or Amy Leggio know.  Dean Rooks said copies are available on the handout table.  Ms. Leggio said the Library expansion is also the featured site on the UH homepage.  Dean Rooks said donations can be taken as payroll deduction, check, cash.
     Sen. Warner moved:

 That the Faculty Senate recommit itself to support the Library as it has for the past 20 years and
work to support of the Library expansion in partnership with the current Faculty/Staff Fundraising Campaign.

APPROVAL OF THE MINUTES:  The February 19, 2003, minutes were approved.

ANNOUNCEMENTS:
     Thank you to the members of the faculty who came to the open meeting with the Board of Regents to discuss criteria for the next Chancellor/President.  That was extremely important to the Board.
     Frontier Fiesta is set for Thursday, March 20 through Saturday, March 22, on the Grounds Outside Robertson Stadium.  There will be several variety shows, concerts, activities and food.  For more information please call 713/743-5293.
     The annual Egg Hunt for the children of Faculty and Staff is set for Saturday, April 12, at 9:30 a.m. in Lynn Eusan Park. There will be a decorated basket contest, an egg hunt with children divided into several age groups, prizes, refreshments and a sing-along.

KUDOS:  
     University of Houston environmental engineering professor emeritus James M. Symons is slated to receive the 2003 Edward J. Cleary Award from the American Academy of Environmental Engineers (AAEE).  The award recognizes "outstanding performance in the management of environmental protection enterprises conducted under either public or private auspices."
     The National Science Foundation has awarded more than $550,000 in grants to the University of Houston to support undergraduate and research 2 programs.  The first program is materials chemistry and it is in the Center for Materials Chemistry at UH.  The director is Allan J. Jacobson.  The second is the Cullen College of Engineering.  Each received three year grants. These two grants together will give us a tentative center programs for a total of 25 students.

MONTHLY REPORT FROM AND DISCUSSION WITH THE FACULTY SENATE PRESIDENT:  A. Jacobson
     Pres. Jacobson said she is going the Faculty Senate to become more engaged with shared governance in their college.  She said she has spoken with Dr. Smith about this plan.  There is a long term concern about increasing input from the faculty and insuring that the voice of the faculty is heard.  This concern coincides with the enormously important fact that the University is about to go through another major transition with a new President.  There is also great concern about the budget and the impact that it will have on academic programs.  Additionally, there is the University's transition to national prominence as a research university and that involves coming to grips with new knowledge in the University.
     Pres. Jacobson said Dr. Smith has pointed out that in setting priorities for the University, deans have to work with faculty and department chairs.  It is extremely important to make sure that faculty in a college have input on budget decisions.  Pres. Jacobson said she thinks it is time for the Faculty Senate to take action.  She proposed four measures to be taken:  (1) She has asked Dr. Smith to continue his letters to the community to keep faculty informed about what is happening in the legislature, what budget cuts may be necessary and what UH's priorities are.  (2) She is asking Senators in the colleges to meet with their Deans and talk about the goals in the college during the time of crisis.  (3) She is asking senators to step up information systems via e-mail to faculty colleagues to give them information and to solicit information from them.  This could also serve as a mechanism for rumor management.  Pres. Jacobson said she would ask for volunteers to send e-mails.  (4) She is asking for feedback on these ideas.
     Sen. Ignatiev commented that Pres. Jacobson and he are serving in a faculty role on the search committee for the new Chancellor/President.  He urged senators and faculty to give the committee feedback on who the committee should look for, what the committee should look, what it shouldn’t look for in candidates.  He requested nominations.  This is a very important process and faculty need to have all the input they can.  Pres. Jacobson said it has been formally said that if there are leaks in the search advisory committee, the Board will shut it down.  So while the committee members can't tell people any thing, they do appreciate input.  Any feedback that faculty can give will be very helpful.

BUDGET & FACILITIES COMMITTEE REPORT – Peter Copeland, Chair
     The committee met on Feb 26 with Dr. John Rudley, UHS Vice Chancellor and UH Vice President for Administration and Finance, Dr. Elwyn Lee, UHS Vice Chancellor and UH Vice President for Student Affairs, and Dr. Kathy Anzivino, Director of Campus Recreation, to discuss the budget for the Recreation and Wellness Center (WRC) and the Athletics Department.
     Dr. Lee and Dr. Anzivino presented an update on the progress of getting members and the plans for administration of the RWC building.  Some of the projections for expenditures and revenue were behind the plan but others were ahead of the plan.  Dr. Rudley suggested that the first time to get a really good feel for the degree of financial success of the operation would be after one full year of operation, that is in early 2004.
     Dr. Rudley gave a short presentation of the state of affairs regarding the Athletics budget. He said that the department has been told to reduce spending by $586,000; this is a cut based on last year's spending.  The deficit spending of the department is not expected to be markedly less than last year.  Dr. Rudley indicated that a much more substantial reduction in the Athletics deficit will be sought in the future, with a target of approximately five million dollars in deficit spending per year within three years.
     Sen. Copeland added that during the meeting there were many members of the committee who commended Dr. Rudley for his openness and for really working with the committee.  It was formally mentioned by a half dozen people at the meeting that the relationship between the committee and Dr. Rudley is going well.

EDUCATIONAL POLICIES & STUDENT AFFAIRS COMMITTEE REPORT – Sara McNeil, Chair
     The committee met on February 26 for a planning meeting.  Issues discussed were:  (1) Course Evaluations – How are course evaluations made public?  How about the web sites that rate faculty such as Pick-a-Prof: http://www.pickaprof.com/.  (2) Advising. (3) Admissions – How are programs dealing with admissions in light of House Bill 1641?  Where is UH in the implementation of that bill?  Do faculty want information on admissions research available like UT has?  http://www.utexas.edu/student/research/reports/admissions/ResearchHome.htm.  (4) Textbooks – How do faculty select textbooks for courses?  Should there be guidelines for selection?  (5) Bookstore – How does the Bookstore Committee function?  Who negotiates the bookstore contract?  Is there a discount for faculty/staff for textbooks?  (6) Lecture series – Does UH need a distinguished lecture series?  (7) Food service – Are international students receiving satisfactory meal service during breaks?  (8) Academic honesty – How is academic honesty handled in colleges?  (9) Q Grade – When will it appear in the handbook?  (10) Safety issues – How do faculty access current statistics on crime?  (11) Student satisfaction and friendliness – Is this still active on campus?  Is a survey on student satisfaction needed?  How do faculty best work with student organizations?  (12) Recruitment of students – What are the statistics on admissions? How does UH recruit students?
     Sen. McNeil asked the senators look at the list and let the committee or her know if they have any information about this these items or have additional items for the committee's consideration.  Pres. Jacobson said the original Student Friendliness report didn't cover racism.  The committee might want to look at that.
     Sen. McNeil said the other thing that she wanted to bring to the Senate's attention is a web site for UT.  Anyone interested in admissions research should find this is a very comprehensive site with a very interesting amount of information.
     Sen. Greenwood, the previous EPSAC chair, said last year the committee kept up with HB1641, a bill introduced by Sen. Irma Rangle who died of cancer last week.  She was such a strong voice for minority admissions that Sen. Greenwood said she didn't know who will replace her to speak for minority admission but that is something EPSAC should watch.
     Sen. Auchmuty said there was a note recently about the Bookstore's discount policy.  There is no fee for prescribed textbooks, so to get a discount on a textbook, don’t prescribe.

FACULTY AFFAIRS COMMITTEE REPORT – Katy Greenwood, Chair
     The agenda for the meeting on February 26 was to determine the committee program of work for the Spring Semester.  Initial discussion centered on what issues, either new or ongoing from the Fall, should the committee address.  Some suggestions were:  (1) Issue of salary compression; (2) Impact related to the equity pool; (3) Ongoing information gathering (not called survey) regarding conditions in each college for research output; (4) Survey each college about climate of productivity (use the term survey); (5) How to measure non-funded research output as well as funded; (6) How to involve the faculty to enrich the vision of research at the University of Houston; (7) How to focus on a university-wide issue of how cuts in budget are being decided – how programs will be impacted; (8) The need to be the catalyst in communicating what other universities are doing to define and envision research and scholarly output;
     Senate President Anne Jacobson spoke to the need of a broader vision regarding research at the University of Houston.  Faculties need to be in charge of their research agendas, not necessarily reactive to external forces.
     Next steps include:  (1) Chair Greenwood will talk with President-elect Giles Auchmuty about a report that he is completing with Ruth Manny regarding salary compression/equity pool.  The Chair will report back to the committee if a report is forthcoming.  (2) The Chair will also talk with Marco Mariotto about any efforts to measure output at the graduate level.   If so, perhaps he would be a guest speaker at a meeting.  (3) The next meeting is scheduled for March 26, 2003.

RESEARCH & COMMUNITY COMMITTEE REPORT – Joseph Kotarba, Chair
     The committee being reformed as Research and Community is working diligently to forge a committee charge.  The committee will hold its first regular meeting on April 2 with guest, Art Vailas, UH System Vice Chancellor and UH Vice President for Research and Intellectual Property Management.  The committee felt that talking to him first would be a good way to start to determine what research related issues the RCC should work on in the coming year.

“PRINCIPLES OF SHARED GOVERNANCE”  (Revision of 3/18/03)
     Sen. Eichberg suggested that, in view of the late hour, the Senate defer consideration until the next meeting..  He pointed out that the document has been revised by Sen. Huber.  There is still one final sentence that still needs to be revised.  He requested senators review the document and send any comments him (Eichberg@uh.edu). [Click on heading for document.]

NEW BUSINESS:  None.
 
The meeting adjourned at 2:00 p.m.