University Representatives: President Myles Brand, Vice Presidents Gerald Bepko, Sharon Brehm, J. Terry Clapacs, Charlie Nelms, Judith G. Palmer, University Counsel Dorothy Frapwell, Secretary of the Board Robin Roy Gress, Treasurer Steve Miller, Chancellors Bruce Bergland, David Fulton, Ken Perrin, Ruth Person, F.C. Richardson.

Attendees: Rosa Ayers, Eru Boschmanz, Robert Eno, Reza Espahbodi, Paul Galanti, Stuart Green, Alfred J. Guillaume, Jr., Don Hossler, Bruce Jacobs, Steve Keucher, Bob Martin, Sara McNabb, Bob Meadows, John Paflas, Bill Plater, Chris Puckett, William Stephan, James Tinney, Don Weaver, Katie Baldwin, Jackie Landess, Jake Oakman, Jeff T. Sedberry, Andrew Takami, Joni l. Reed, Una Mae Reck, Susan Shapiro, Les Coyne, Eduardo Gonzalez, John Meunier, Joanne Matika, Moya Andrews, Barb Berggoetz, Jennifer Alvey, Joshua Bales, Pat Connor, Jeff Eagles, Charlotte Haley, Tracey Hedrick, Billie Johnson, Aebeer Mallick, Roya Maze, Cheryl Stolle, Dr. Karen Montgomery, Jan O’Brien, M. Diane Roberts, Emily Veach, Dr. Marilyn Watkins, Karen Whitney, Bill Yost.

TRUSTEE BUSINESS

Trustee Morris: First I would like to, on behalf of the board and my colleagues and everyone associated with the leadership team, thank Dave Fulton and his colleagues. You have done a wonderful job in hosting us, and it is delightful to be in this magnificent environment. We had a great time at last night’s dinner. We have all taken notice of the beauty around the campus. We congratulate you and your predecessors, including Charlie Nelms, for thirty great years of service to this part of the state. We are very impressed with the way you partner with the community. It is clear that

the entire university is deeply engaged, and that and your partnership with Ivy Tech is a good thing. We congratulate you on your re-accreditation and your own assessment last night that it was the best accreditation ever. Thank you for being so nice to us!

1. Approval is requested of the minutes for the meeting of March 1, 2002, which include the Administrative Action Report of February 8, 2002.

Unanimously approved on a motion duly made and seconded.

PRESIDENT’S REPORT

1. Introduction of IU South Bend Chancellor-designate Una Mae Reck

President Brand: I want to introduce the chancellor-designate of the IU South Bend campus, but before I do that, I want to thank Charlie Nelms for his leadership on the search committee. I also want to take a moment to recognize the terrific work that Ken Perrin has done on the IUSB campus. This person will succeed, but not replace, Ken Perrin who has done such a terrific job. We will spend more time in the near future talking about the accomplishments of Ken and F.C. Richardson, both of whom are retiring this year, but I do want to take this moment to congratulate Ken for the leadership he has provided to the campus.

Now it is my great pleasure to introduce to you Dr. Mae Reck.

Dr. Reck: Thank you very much. Of course, I am very honored and I am very humble to be so designated as the chancellor for Indiana University South Bend. I want to thank you, the Board of Trustees, and President Brand, his vice presidents and staff and Indiana University South Bend faculty and staff for giving me this exceptional opportunity and having the faith and trust in my leadership.

Today was a great day. I was on the campus, and I pledged to Indiana University while I was there to bring cohesive, meaningful leadership to the campus by team- and community-building, by communication, integrity and trust. I encouraged and challenged the campus today, the stakeholders, the internal and external community, to be partners in this new leadership endeavor. So, today marks the first step in meeting this joint adventure in leadership. I believe it is only truly through our combined efforts can Indiana University South Bend be recognized and appreciated for the great institution it is today and secure the institutions future.

Our campus priorities will concentrate on serving the students in the region, promoting academic excellence, strengthening community relations, expanding diversity and the development of positive image. We are proud to be part of Indiana University and to be a positive compliment to the university and to be a team player. IUSB serves the region with a comprehensive array of programs, solid community connections and of course the important role of spreading the message of Indiana University.

I want to assure you today that I am eager to serve as a member of the Indiana University leadership team, and as chancellor of South Bend. Thank you.

President Brand: Welcome aboard. We all look forward to working with you. I heard there was a very nice South Bend reception, good turn out from the community and the campus, a good start. Terrific.

Unanimously approved on a motion duly made and seconded.

2. Remarks from Katie Baldwin, Student Leaders Representative

Katie Baldwin: We would all like to thank you very much for being here, and for giving us this opportunity to talk with you. I represent the student leaders. There are seven of us, and this is a new program that’s in it’s second year; we feel that we have an excellent opportunity to represent the students from our campus. We feel that it is much more effective than past programs have been. We interact with key people, and we have a lot of support on campus from the chancellor, all the vice chancellors and faculty and staff. I think I can speak for all of us when I say that we all have benefited a lot from being in the program, as well as being able to be advocates for our fellow students.

Today, I wanted to share with you a student satisfaction survey that we completed recently. There are just a couple of points that I would like to mention. First, one of the top three reasons that students give for choosing to attend IU East was affordable tuition. Second, they said instructors are both an asset at IU East, as well as an area that needs improvement. We discussed this point earlier in the Campus Community meeting, and we noted that faculty salaries are a very pressing issue on this campus. The third point that student noted in the survey is that they would be interested in participating in honors programs and in graduate programs. I think that it would be great if we could pay attention to that demand because I think it is there.

3. Remarks from Paul Galanti, University Faculty Council

Paul Galanti: I would like to add my congratulations to Dr. Reck, and wish her the best of luck. I am sure she will do a superb job on the South Bend campus. I would also like to extend my thanks to Dave Fulton and his team for one having a very, very lovely campus.

At the UFC’s last meeting on March 26, Vice President Palmer gave us a report on the 18/20 situation, and the reinstituting of the task force that will look at the handling of 18/20 matters, such as the retention efforts, to see how effective they have been in keeping faculty who reached age 64 and are eligible to retire or to defer retirement.

We also had an update on the task force that is looking into what I believe is called the replacement retirement plan. You will recall that when 18/20 was phased out in 1988, it had an impact on 114 faculty members who were hired with the expectation that they would be covered by the 18/20 plan but who turned out not to be eligible under the relevant IRS ruling. Dan Rives has done an excellent job in coming up with a replacement retirement plan, a defined-benefit plan. I would also like to go on record as thanking Dan for his efforts with respect to domestic partners benefits. I think that many others believed, as did I, that the trustees would approve such a policy on one day, and the next, everything would fall into place. That is not the case. Many contracts had to be changed. I am glad to say that as of April 1, his office came through and there are benefits available across the board for same-sex domestic partners. I think Dan did an excellent job on that.

Trustee Obremskey: Do you have any idea on the number of applicants for the same-sex insurance coverage?

Paul Galanti: No, I don’t.

Trustee Obremskey: Is there an enrollment period? Is that how it is going to work?

Paul Galanti: That I can’t answer. I received a memo that I think all members of the faculty of IU received, and I was pleased to see that it has come online, but I’m not familiar with all of the details.

Paul Galanti: On March 26, we also heard an update on the status of the Student Enrollment Services Academics Priorities Committee, Don Hossler’s committee, and the efforts being made to bring the Student Information Enrollment Services online.

One other thing that we discussed at the March meeting was the possibility of using video conferencing for University Faculty Council matters. This past year there has been a pilot program to see how video conferencing would work. One of the problems with the UFC is that it is often very often difficult to get the committees together to accomplish anything because they are coming from all the campuses of Indiana University. I would like to say that it was a roaring success, but I was talking to one of the members of the IUPUI executive committee the other day and he said "Well, it’s not ready for prime time", but hopefully in a year or so the UFC would be able to utilize current technology for expediting if not meetings of the UFC itself, the committees. I think that would be a great advance for the UFC.

Now I would like to ask Bob Eno to report on intercampus transfers.

Prof. Eno: I just have a few update items on the intercampus transfer project and related issues. We are nearing the end of the two-year cycle when all campuses are reviewing their courses to make sure that identically numbered courses are comparable enough to apply identically for degree requirements across all campuses. As we come to the conclusion of this, it looks like there are only between six and ten course matches that look like they may not be comparable departments. We are in conversations to see what the best strategy is for straightening those out. I would say that it appears as if we may have no cases which would have to go into adjudication of our central faculty committee because of a dispute, but I won’t say that because I don’t want to jinx anything. Things seem to be proceeding very smoothly.

We have also been taking care of certain issues that are associated with the ICT process in Bloomington. We have now passed a policy to establish a campus-wide board for appeals of transfers of all kinds, including international student transfer judgments, and it will fold in the ICT process. In the University Faculty Council we passed a policy that will, on an interim basis, help us manage the master course inventory to make sure to preserve as best we can the comparability of courses that we have managed to achieve over these two years. We are in the process of drafting policy that would allow us to do this on a more permanent basis using the new PeopleSoft system, which appears as if it will accommodate our needs to make the Master Course Inventory a useful tool for us without interfering with this comparability issue. So, the news on this front looks very good.

I would like to add that in March, the Academic Officers Committee, which is made up of the academic vice chancellors of all the campuses, hosted a meeting of campus faculty from most of the eight campuses from certain designated programs that have a high rate of course transfer from ICT students, including business, foreign languages and math. The faculties met face to face to talk about ICT issues, and course comparability issues. I participated in some of those discussions, and I was extremely impressed with how productive they were on a range of issues. It gave me a feeling that this process is actually going to upgrade not only the way that students transfer courses and the comparability of courses, but the communication among faculties across campuses. I was surprised at how congenial it was and how much information was shared. I think this is a good step forward in intercampus collegiality.

President Brand: Good news report, Bob. First class.

Trustee Obremskey: Bob, I would like to thank you on behalf of myself and the policy committee, for all the hard work that you people have done in this area. It is a tough job and to coordinate all that and to pull it together. It has been a real accomplishment. I am just curious, what do you do with new courses that come on line?

Bob Eno: That is part of the new procedures that we are designing for the Master Course Inventory. According to the policies that we are drafting, when a campus initiates a new course, that campus would mount a description of the basic framework of the course, including the area of coverage, basic requirements, and expectations of the nature that would allow other campuses that might want to download that course from the master course inventory onto their campuses to know what the basic issues of conformity would be. There would be a remonstrance process then for campuses that added on to make sure that the groups of campuses that were teaching the course had roughly comparable courses, comparable enough for the purposes that we are dealing with.

Trustee Willsey: Bob, I want to thank you for working so hard. I know you have been working on this for a while and I know it will make students lives easier.

4. Remarks from Susan Shapiro, President of the IUE Faculty Senate

Prof. Shapiro: I am very pleased to be able to represent the IU East faculty today. IU East might be called the adolescent of all the IU campuses. We have been going through a lot of changes, and there are issues here that aren’t the same as at some of the other campuses. We have been very grateful for the increased understanding and attention from the other campuses. That is everything from being able to get technology support from Bloomington to sitting in University Faculty Council meetings and hearing people say "well now, how is this going to affect the regional campuses?" That is a very important change that has been made and we are very pleased with that.

The last year has been very challenging for IU East. We were getting ready for our North Central Accreditation, and we probably have done more job searches for new faculty in the last year than we have done in the last ten years. We have had a number of retirements and some changes, and it has made our lives a little frantic, but I would like to commend my colleagues for the sacrifices that they have made to try to make sure that not only all the business of the university gets done, but more importantly, that the real part of the university of working with students is always the first priority.

I would like to thank you very much for your efforts on our behalf. I know that you understand that we are under some severe constraints with issues such as faculty salary. A number of our searches have been unsuccessful because we would offer people the job and they would say, "No I can make $10,000 somewhere else." Considering that we were offering them more than some of our current faculty were making, this was a little humiliating. We also have had healthcare issues because the university medical community is not really the same as the other communities. We don’t have the same group of doctors or the same surplus of doctors. As long as you keep in mind that sometimes we have different concerns, then we will be OK. We greatly appreciate the time that you spend, and the very honest consideration and effort that you spend on our behalf. Thank you.

Trustee Shoulders: I just want to tell you that I, for one, heard your comments this morning about health care. I know that we are the fourth largest employer in the state; that we have got to be an 800-pound gorilla in managed care plans, and that Vice President Clapacs, I am sure, will look at that in terms of admissions to this hospital, and doctors who won’t accept our health insurance. I think we have a case to make to these people, and I believe that that is something that we ought to be able to address immediately. I don’t know about pay raises, but that is a utilization issue, and I think we can help with it.

Prof. Shapiro: That will help a lot because you have more money in your pocket when you don’t have to drive to Indianapolis or you don’t have to pay an extra $500 or $1,000 on your medical bills.

Good News

President Brand: We have come to the part of the agenda in which I usually give my good news, but actually I want to start off with some bittersweet news. I want to start off and talk about our departing board president, Jim Morris.

Jim received his bachelor of science from Indiana University and then went on to an MBA at Butler. He is a 20-year member of the International Olympics Committee, and he has served on numerous non-profit and educational boards. I am just going to give you a sampling, this is not exhaustive by a long shot. Of course, there is President of the Indiana University Board of Trustees, and member of the IU Foundation board. He was also a member of the boards of Butler University, Christian Theological Seminary, Haskell Indiana College Foundation, Indiana State University – and chairman of that board, too -- Indiana Pacers Foundation, McCormick Theological Seminary, NCAA Foundation, Rose-Hulman Institute of Technology, the United Way of Central Indiana, and the Indiana Sports Corporation. He was founder and executive committee member, Youth Links of Indiana and Indianapolis Campaign for Healthy Babies. That is a sampling. Just a sampling.

Jim was president of the Lily Endowment 1984-89, and had worked there since 1973. He is former chairman and chief executive officer of IWC Resources and the Indianapolis Water Company which is its principal subsidiary.

And now, the bittersweet moment. Jim has been appointed by U.N. Secretary General Kofi Annan as Executive Director of the World Food Program. Executive director of the World Food Program to feed the hungry throughout the world. That’s a calling. He’ll be off to Rome very shortly. I want to thank you and Jackie for your enormous contribution to Indiana University over many years. Of course, you have sent all of your children to us, but more importantly, you have given us your personal support and we appreciate that.

We have a small token for you, Jim. I want you to picture something with me. It is 1961, on a perfect fall day. You are still just a pledge at Kappa Sig, but already you know -- and will forever say – that it’s the best fraternity in America. This day, you’re strolling east on Third Street, strains of "Star Dust" in your mind. You’re an easy mark because you are wearing your green pledge beanie. You have just passed Curry’s bookstore, and then the Pizza Barn, which is now Mother Bear’s for those who know Bloomington. You are approaching the Dairy Crest on your right, as you wind your way home … and this what you see. This painting is an original watercolor commissioned by the Board of Trustees from Delita Piercy, who has painted many beloved IU scenes.

And we have another token of appreciation. Those who have come to know Jim, know that one of his special habits is to write notes of thanks and appreciation. So, we have decided to take a lesson from you Jim, and we have a bag full notes of appreciation for you to read at your leisure. We also have a cake, which I am sure you will want to share with everyone and we will cut that. Jim Morris.

Trustee Morris: That’s right….I’ll say something in a minute.

President Brand: We are going to turn to a discussion of K-12 programs in Richmond, and how our campus IU East is making a difference. Dr. Marilyn Watkins is here to talk about the importance of mentoring beginning teachers and the success of IU East 21^st Century Initiative. Dr. Watkins is chair of the Division of Education. We will also have a recent graduate of the division to give us a firsthand account of how well these programs prepared her for frontline duty in the classroom. Roya Maze is a fourth-grade teacher at Charles Elementary School in Richmond, and this is her third year of teaching at the school. With them is Dr. Karen Montgomery, who is director of grants and community engagement for the Richmond Community Schools. We are very happy that each of you can join us today.

Dr. Watkins: Thank you. We are happy to be here. I am pleased to represent IU East Division of Education. The Mission of the Division of Education is to prepare teachers who are reflective scholars, instructional leaders, and global citizens, and to serve the community and profession promoting and facilitating best practice in education. These themes then translate into pre-service teachers being prepared to be change agents, community participants and researchers. In short, they are professional educators.

In fulfilling our mission, we have established numerous collaborative partnerships with public school constituents, each of which expands Division outreach. All of this is in keeping with the IU East mission, and with the new public university. In particular, they support Strategic Directions Charter goal 18 that addresses strengthening existing partnerships and creating new partnerships with public schools, businesses, government agencies and other external groups. While I would love to share the variety of community connections in which we engage, given time constraints, we really intend to maintain the ten-minute time limit.

I will overview our Beginning Teacher Mentor and 21^st Century Scholar initiatives. It was an Indiana University Strategic Directions Charter Excellence grant that allowed us to establish the beginning-teacher/mentor program. New teachers start their professional year with tremendous enthusiasm and a desire to implement innovative teaching strategies, however literature and experience clearly shows us that new teachers often report feeling overwhelmed upon their entry into teaching. Isolation is a real issue. New teachers are left alone in a classroom, often with nosignificant support.

With this in mind, the program goals are to implement a beginning teacher mentor program that supports beginning teachers’ transition to the teaching profession, and to support beginning teachers and implementing best practice for the improvement of K-12 student learning. This, of course, is our ultimate goal. Providing a variety of forms of contact that support reflection and analysis of teaching is essential to successful integration into our profession, hence our program services are wide ranging and include one-on-one consultation, curriculum planning and resources, content area consultation and referral and other services as indicated, which naturally means that is some sort of crisis somewhere needing immediate attention.

Currently we serve 50-75 teachers per year in five school corporations. Many are IU East alums, yet we work with any new teacher. Richmond Community Schools work collaboratively to take our beginning teacher initiative one step further by providing two-year-long graduate courses that satisfy recertification requirements in a manor that also supports beginning teachers. Transferring knowledge from the university classroom into the public school classroom is a difficult process even with an intense program such as ours. Having a strong collegial network is critical. A quote from a beginning teacher currently in the first graduate course provides some insight into how she is benefiting from this experience. " ‘Theory Into Practice’ has helped me become aware of, and furthered my understanding of, important issues in education. These issues include brain research, exceptional learners, differentiated instruction, assessment, multiple intelligences, classroom management and educational laws. Personally," she says, "the course has provided a support network for me as a first-year teacher. Through discussions I am able to learn from my struggles, rejoice in my triumphs, and sympathize with other new teachers." Roya, who participated in our beginning teacher program, now will share some of the benefits that she received.

Roya Maze: My mentor from IU East was Dr. Cheryl Stolle. In the year, she came in and observed, and asked me how my year was going and if I needed any help. I was really very fortunate and lucky to have her as my mentor because she was someone I had already known through the community and IU East, and I had the utmost respect for her. I knew that if I had any kind of question or any concern that she would have an answer; that she would just know what I needed to do.

The second year was even more helpful. We had some political issues, being a second-year teacher, I wasn’t sure how much I should be involved. I had my opinions, but I wasn’t sure if I should do anything with it. Cheryl helped me a lot my second year. I’m delighted to have the opportunity to publicly thank her.

Dr. Watkins: There are numerous next steps with this program. Effective Fall 2002, the Indiana Professional Standards Board will be implementing its initial practitioner license because our program is firmly established. We are well positioned to work with area schools in meeting licensure requirements such as preparing mentors and in working with new teachers to prepare the required portfolio. Also, in order to ensure ongoing support, we will be connecting our alternative routes to certification interns, with the beginning teacher mentor so that they receive needed support in their initial teaching years. At this point Karen Montgomery will provide insight into our program and some of our other collaborative efforts.

Dr. Montgomery: Richmond Community Schools. 6,200 students. All across America there are practitioners, teachers and administrators just like me, 31 years in education. I can reflect upon the demographics within our school corporation because I brought them along. In the age group 50-59, 37% of our teachers. 60 and over, 5% of our teachers. In Indiana you are fully vested to retire at age 55 with 30 years. We will see a mass exodus in the next few years. All across America, 2 million new teachers will be required to fill the ranks, but what you need to know -- the most important fact of all -- is that currently, 50% of new teachers leave the ranks of the profession within 5 years.

A new teacher mentoring program is a vital necessity, and for IU East to collaborate with us to provide these mentoring services is an outstanding endeavor, and we are grateful. We have seen so many examples, too many to mention, of collaboration and partnerships that really are a cornerstone of this university, and we are so grateful. I can tell you from my perspective as a public school administrator that here we do not conceive of K-12 education on this hand and post-secondary university training on this hand. Really what we see is a continuum of education, preschool through 16, that we are all in this together. Our success as a state, our success as a nation, is going to be dependent on how well we come together in partnerships and work collaboratively. We have several initiatives pending right now. We have a talent grant outstanding; we are looking at a dropout prevention grant that just went on the federal register today. A new funding stream for reading excellence, and I can tell you that as an urban public school system we can’t do it alone. We depend a great deal on this university and in particular on the Division of Education and we are very grateful.

Dr. Watkins: I want to move very quickly to the 21^st Century Scholar Initiative. Education Divisional faculty serve as liaisons with liberal arts divisions. Together we work on issues related to implementing standards and meeting accreditation requirements, discussing course selection, content and scheduling and identifying and discussing common concerns. Through this process we have promoted effective communications and creative solutions to several issues. The second aspect of collaboration that we find important is with our Professional School colleagues. To date, nursing, social work and education have sponsored two interdisciplinary workshops. The first was entitled "Poverty in the Workplace." The second one was "Assessing and Promoting Professional Ethics". We are each responsible for our own excellence, yet it is so much easier when we work collaboratively as we are able to build along strengths.

A. FACILITIES COMMITTEE

Report from Trustee Eichhorn

a. Action Item: Approval is requested for the Indiana University 2003 – 2005 Ten-Year Capital Improvement Plan

Trustee Eichhorn: The Facilities Committee met this morning with Trustee Breckenridge, Trustee Ferguson, Trustee Obremskey and yours truly present. The first item that we considered, and the first item we bring to you, is the Ten-Year Capital Improvement Plan. I call upon Vice President Terry Clapacs to present it.

Vice President Clapacs: Every two years Indiana University is asked to put on file with the Higher Education Commission a new capital improvement plan. We do this with the rest of the universities in the state. Essentially, the plan is divided into three sections: the near term, our plans for the 2003-2005 biennium; the middle term, which would be the 2005-2007 biennium; and then the far term, which would be 2007-2013. So, most of the projects that I think you are going to be most interested in looking at are those projects that are found in the near term.

John Paflas met with all of the campuses. Each campus handles this a little differently. The Bloomington campus, for example, has a Capital Priorities Committee that meets regularly and places in priority its list of projects that support the academic plan. From this list, by the way, we will boil it down to form our capital requests for the 2003-2005 biennium. Not everything you see today will be on that request list.

We will begin with the Bloomington campus. We basically have three categories: renovation, new construction, and land acquisition. On the Bloomington campus the highest-priority special repair and renovation project is the library project. That is phase one. It was on the list that we submitted to the state last time around. It was not funded, and it is back today as part of our ten-year plan.

We then have four projects that will not require state funding support. They will be funded, essentially, through the Halls of Residence. They include Foster Quadrangle renovation, Campus View Housing renovation, Phases I and II, University Apartments renovation, and the Lilly Library. Those are in there at $4.5 million, $8 million, $3.4 million, $13.5 million.

Then we go to new construction on the Bloomington campus. You see the Multidisciplinary Science project, Phase II. Phase I was funded last time around. Phase II is a $40-million project, $30 million of which we hope the state will fund, and $10 million will be funded through gifts to the university. The Computation and Information Classroom Building is $39 million, to be funded through gifts to the university. Then we have a Radioactive and Hazardous-Waste Facility, which is $2.1 million. Then there are proposed new dormitories. This is very undefined at the moment, but you heard about them last time when Bruce Jacobs and his team presented to you their long-range plans for housing on the Bloomington campus as we begin to replace centers like Ashton and others. This project could total as much as $41,750,000; the Bloomington campus hopes to receive $97,380,000 in state support, and would fund privately, or through gifts and grants, $116,672,000 in capital improvement projects.

I’d like to turn next to the IUPUI campus, and those projects identified by IUPUI for the 2003-2005 biennium.

Renovation projects include the vacated space that will be left on the campus when they move into the information complex; that needs to be renovated, and the estimate is $8.5 million. Cavanaugh Hall, which was one of the original undergraduate teaching facilities at IUPUI, built in the early 1970’s along with the library and lecture hall, is more than 30 years and needs some attention. That’s in at $24 million. The Medical Science building renovation Phase III is $19,375,000.

Under new construction, Research Institute Building III totals about $45 million. We are taking a new tack with the state and saying, as we have done with plant expansion, that as much as 40% of the cost of this building could appropriately be supported by state funds. The state funding portion $18,314,000, and the private or grant-generated, perhaps through the new bonding authority that the state has given us to support projects like this, $27,472,200.

The plan at IUPUI is to build a new parking garage every two years. And so the parking garage listed in this biennium is $9 million. The Information Science building is in at $21 million, and then the Medical Education Administration building, which was also called the Fairbanks building, is at $17.5, which would be funded through gifts. The Administration Building, the centerpiece building on the super block that we have talked about for the last two years, is in at $27 million. Those would be privately funded. The total list at IUPUI is $91,189,800 for state funding support, and $80,972,200 from other funds.

Next is IU East, which has one project: There is to be an addition and renovation for the performing arts program at Whitewater Hall, and that’s in at $4,230,000.

Moving then to IU Kokomo, and the renovation of the Kokomo main building. That original building, built in 1965, along with Tamarack Hall at IU Northwest and the original building at IU South Bend, are little more than elementary school buildings. You look at the interiors, you look at the exterior, very basic. They now need renovation. It would take $20,630,000 to renovate Kokomo main. Moving then to Northwest, the same project there $8,700,000 to renovate Tamarack Hall at IU Northwest.

At IU South Bend, the renovation of the Associates building, one of the first buildings purchased from the Associates Finance Company in the early 1970’s, is in at $15 million, and then new construction with private funding, the Riverfront development at $5 million, and then a bridge across St. Joseph River is in at $2million.

At IU Southeast, a new Education Technology building in at $27 million.

To summarize: At IU Bloomington, building projects totaled $97.3 million and land acquisition, which we have carried for a long, long time but which has not been funded, holds at $3 million.

Indianapolis building projects come to $91,189,000; land acquisition is $5 million.

IU East building projects are at $4.2 million; no land acquisition required.

IU Kokomo building projects are $20,630,000; land acquisition for that piece of property south on Washington Street, where the church is today, $1,900,000.

IU Northwest building projects come in at $8.7 million. We would like land acquisition funding to support acquiring those properties that are east of Broadway and east of Massachusetts Avenue to continue to create a buffer at $2 million.

IU South Bend building projects are $15 million, and land acquisition is $2 million, which would support repaying the IU Foundation for those properties we acquired in the Belmont neighborhood area.

IU Southeast building projects come to $27 million. A small piece of property that would fill out the IU Southeast campus would cost $200,000.

That totals $317 million in state funding support, and $204,644,000 for projects that would not require direct state funding support. So, very ambitious plans on the part of all the campuses. Growth, prosperity, progress, it says a lot about the way Indiana University is moving. Will all of it be done in the next biennium? No, but we hope to do a good portion of it.

Unanimously approved on a motion duly made and seconded.

Project Approvals

INDIANA UNIVERSITY BLOOMINGTON

a. Memorial Stadium - Press Box renovation

Approval of the Board is requested for improvements to press box space on the west side of Memorial Stadium. Renovation of 10,500 gross square feet on the sixth floor involves demolition of existing interior walls, and construction of new metal stud partitions to provide eight luxury suites with food service. Each suite will accommodate fourteen people. Another part of the project will enclose the area under the press box to provide club seating for 300. A food service and gathering area will be constructed in the back portion of the room. New mechanical and electrical systems will be installed, accessibility standards will be addressed and new restrooms will be installed in both areas of work. A new shaft and elevator are part of the overall project, but will be installed in 2003. The entire project, including equipment, is estimated to cost $2,000,000. Funding is available through the Department of Athletics.

Bob Meadows: Mr. Chairman, what we bring before you this morning is the renovation of the press box of Memorial Stadium. In simple terms, it is to take the existing press box to renovate levels 4, 5, 6, and 7.

Level 4, which is currently the area beneath the press box that is bleacher stadium, would be enclosed. There would be club seating with 30 seats in each of these bays, and then behind it an area for refreshments. Level 5 is the existing press area, which would be renovated to include some additional bathroom space. On Level 6, we would take the area that is currently used by the announcers and various other personnel, renovate that into suites. On Level 7, we would leave the president’s box area as it is, and use the space to the north for the boxes that had previously been on Level 6. Additionally on the top of the building there would be the addition of one bay.

In addition to the renovation of the box there would also be an additional elevator added. This elevator would supplement the existing elevator, the slowness of which is known to many of you. This new elevator would be enlarged to become handicapped accessible, and to handle emergencies, such as stretchers and other facilities. So, what we are proposing today is that renovation. Estimated cost would be $2 million.

Trustee Backer: Are you doing anything to the existing elevator?

Bob Meadows: The existing elevator will be gone over in terms of maintenance and repair. We are not replacing the existing mechanical system.

Trustee Talbot: Are those corporate boxes you are talking about?

Bob Meadows: Yes. They would be. The Athletics Department would sell tickets for those boxes.

Trustee Talbot: How many are there?

Bob Meadows: There are suites. There are 10 suites in a smaller suite. There are 300 seats in total. That is on the upper level.

Trustee Talbot: There are separate suites?

Bob Meadows: There is a club area, which would be located in what is currently the bleacher area. When we say club, we are filling in that area underneath the existing press box, and then above that, on Level 6, there are suites. These are smaller suites with a small refreshment area, refrigerator; each of those will handle 14-15 people. There are eight of those, and then there is one smaller one that exists. Last year, the Athletic Department renovated this area of Level 6 for athletics.

Trustee Shoulders: How many seats are we losing?

Bob Meadows: In the area beneath the press box there are approximately 900 seats, and we are replacing it with 300.

Trustee Willsey: How is it funded?

Trustee Eichhorn: The Athletic Department funds it.

Unanimously approved on a motion duly made and seconded.

INDIANA UNIVERSITY SOUTH BEND

Pedestrian Bridge over the St. Joseph River

Approval of the Board is requested for the design of a Pedestrian Bridge and the stabilization of the St. Joseph River bank adjoining the South Bend Campus. The design for this project is a joint effort between Indiana University and the U.S. Army Corps of Engineers Detroit District. The Campus Master Plan envisioned the need for facilities expansion and a footbridge connecting the south campus area across the St. Joseph River. The proposed bridge will be a pre-manufactured steel structure, approximately 710’ long and 12’ wide with an interior clear width of 8’. The bridge will extend at its north end from the midpoint on the hill between Northside Boulevard and the southeast side of Shurz Library. It will span to the south over Northside Blvd. and the St. Joseph River, to a point approximately 115’ into the south campus land area. The bridge elevation above the high water level and the street will be 17’-7".

Trustee Eichhorn: We are only talking about approving the design as of today. It may cost as much as $2.1 million. We have $1 million from the Army Corp of Engineers, and $750,000 out of capital improvement funds of the university. If we go to a particular design, which is the lower of the two, it would increase the cost of the bridge to $2,100,000. Therefore, what we are looking at today is the design, and not the overall approval of the project, because of the question about the funds. Bob.

Bob Meadows: What we are proposing, actually, is a unique partnership with the Federal government, the Army Corp of Engineers, which would, as part of this program, provide $1 million of the cost of the stabilization of the river bank as well as the construction of this bridge. The bridge connects our pedestrian mall in the existing campus, the south side of the campus. It comes across Northside Boulevard at the St. Joseph River and then connects to an area which we have identified as part of the master plan for future expansion of recreational fields and possibly at some time in the future, housing. The bridge is constructed of steel. It is a fairly simple bridge. It is, I think, a very elegant bridge. It is 12 feet wide and it has a walk surface of eight feet. The floor is constructed of steel with concrete. It also has the letters of Indiana University. The bridge would become an identifiable landmark and a significant addition to the campus. It will allow opening up and use of that area. Additionally, the bridge provides access for small vehicles, such as mowers.

Unanimously approved on a motion duly made and seconded.

Real Estate Matters for Approval

INDIANA UNIVERSITY – PURDUE UNIVERSITY INDIANAPOLIS

a. Approval is requested for the sale of real estate located at 1701 North Pennsylvania Street, Indianapolis, Indiana. This real estate was acquired November 15, 1977 and formerly housed the Herron School of Art. It is no longer needed for any university purpose. It is recommended that The Trustees adopt the following resolution to authorize sale of this real estate:

Parcel 1:

Lots 108, 109, 110, 111, 112, 113, 114, 115, 116, 117, 118, 119, 120, 121, 122, 123, 124, 125, 126, 127, 128, 129, 130, 131, all in Elizabeth Talbott’s revised subdivision in the City of Indianapolis, the plat of which is recorded in Plat Book 7, Page 82, in the Office of the Recorder of Marion County, Indiana, except the following:

31 feet off the entire South side of Lots 120, 121, and 122, taken for the opening and widening of 16^th Street as shown by proceedings recorded November 15, 1929, in Mortgage Record 1056, Page 703;

15 foot strip through Lot 128 taken for street purposes by Resolution No. 17969 recorded November 1, 1961, in Deed Record 1892 as Instrument No. 92817, said strip being more particularly described as follows:

Beginning at the intersection of the W.P.L. of Talbott Street with a line parallel and 20 feet South of N.P.L. of Lot 128. Thence South along the W.P.L. of Talbott Street for a distance of 15 feet to a point. Thence West along a line parallel to said N.P.L. of Lot 128, for a distance of 120 feet to a point, said point being the E.P.L. of first alley east of Pennsylvania Street. Thence North along said E.P.L. for a distance of 15 feet to a point; and,

10 foot strip off the entire South side of Lot 111, dedicated for alley purposes.

Parcel 2:

That part of the vacated Coram Street lying between Pennsylvania Street and Talbott Street, vacated under proceedings accorded April 3, 1901, in Deed Record 333, Page 603.

That part of the vacated first alley East of Pennsylvania Street lying between Lots 112 and 125 in Elizabeth Talbott’s revised subdivision in the City of Indianapolis, the plat of which is recorded in Plat Book 7, Page 82, in the Office of the Recorder of Marion County, Indiana.

That part of the vacated first alley North of 16^th Street, being more particularly described as follow:

Part of the South half of the Northwest Quarter of Section 36, Township 16 North, Range 3 East, more particularly described as follows:

Beginning at the intersection of the E.P.L. of Pennsylvania Street and the N.P.L. of the first alley North of 16^th Street, which point is the Southwest corner of Lot 111 in Elizabeth Talbott subdivision, an addition to the City of Indianapolis, Indiana, as recorded in Plat Book 7, Page 82, in the Office of the Recorder of Marion County, Indiana.

Thence East along the N.P.L. of said alley for a distance of 120 feet to the Southeast corner of Lot 111. Thence South with a line parallel to Pennsylvania Street for a distance of 10 feet to S.P.L. of said alley. Thence West along said S.P.L. for a distance of 120 feet to a point, said point being E.P.L. of Pennsylvania Street. Thence North along the E.P.L. of Pennsylvania Street for a distance of 10 feet to point of beginning.

Also that part of the vacated first alley east of Pennsylvania Street, being more particularly described as follows:

Beginning at the intersection of the N.P.L. of the first alley North of 16^th Street with W.P.L. of the first alley East of Pennsylvania Street, said point being the Southeast corner of Lot 111 in the Elizabeth Talbott subdivision, an addition to the City of Indianapolis, Indiana, as recorded in Plat Book 7, Page 82 in the Office of the Recorder of Marion County, Indiana.

Thence North along the W.P.L. of first alley East of Pennsylvania Street for a distance of 75 feet to a point. Thence East with a line parallel to 16^th Street for a distance of 15 feet to a point. Said point being the E.P.L. of heretofore described alley. Thence South along the E.P.L. of alley for a distance of 85 feet to a point. Thence West along the N.P.L. of Lots 112 and 125 for a distance of 15 feet to a point. Thence North with a line parallel to Pennsylvania Street for a distance of 10 feet to point of beginning.

Said portions of alleys being vacated under proceedings recorded November 1, 1961, in Deed Record 1892 as Instrument No. 92817.

Whereas, said real estate is no longer needed for any purpose of Indiana University.

Unanimously approved on a motion duly made and seconded.

Trustee Eichhorn: And finally Jim, I am not going to leave the microphone without thanking you for your leadership, your friendship, your vision, your warmth, your good humor. I am sure we will all wish you and Jackie good health and Godspeed.

Trustee Morris: Thank you. I am grateful for that.

B. FINANCE AND AUDIT COMMITTEE

1. Report from Trustee Backer

Trustee Backer: Thank you, Mr. President. We have two action items. The first is the IUB Residential Rates. As we talked about last month, we are phasing out the current rate freeze on the room and board. Our proposal is to request a 2.86% overall rate increase for room and board for new students.

Action Items: Approval is requested for the following

a. IUB Residential Programs and Services Rates for FY 2002 – 2003

IU-B Room and Board Rates
Academic Year 2001-2002 Actual Rate

Current Base Rate $3,128
Board Plan $2,390
Total $5,518

Rates 2002-2003
Room Base Rate $3,128
Plus: 4% increase $ 125

New Base Rate for Room $3,253
Plus: 1% for Capital Projects $ 33
 

New Room Rate Total $3,286
Board Plan $2,390
Total $5,676

Total Increase $ 158
Effective Rate Increase 2.86%

Unanimously approved on a motion duly made and seconded

b. IUPUI Housing Rates for FY 2002 – 2003

Trustee Backer: I also have a motion for the IUPUI housing rates, which we have gotten down to 4%; Karen Whitney is to be commended.

Unanimously approved on a motion duly made and seconded.

Trustee Backer: Thank you. We also had a discussion by Dan Rives and Art Lindeman on the new Human Resource Management System. They had mentioned that we now are the fourth-largest employer in the state. This will be a comprehensive Human Resources system, and we will basically combine everything throughout the state at all of our regional campuses.

The committee also continued to hear athletic reports. IU Northwest reported, and had a very good financial position. Their program is mainly supported by student fees. IUPUI also reported, and had very good news. In addition to the fact that they operate in the black and are doing a very good job in management, the overall GPA of all of their athletes is a 2.95, which I thought was remarkably good. Their attendance is up, everything is rosy and they are doing a terrific job up there and they also are managing their resources very well.

Trustee Morris: On that point, Steve, it just needs to be mentioned that IUPUI did play in the championship game of the Midcon Conference against Valparaiso, and came within that one game of making the NCAA tournament. So, there will come a time when we will have more than one team in the final tournament. It was a wonderful thing.

Trustee Backer: We then had a budget update on the various campuses, and we are happy to report that it showed that the overall system has achieved its goal in relative fund balances. Most importantly, we had a report on the financial conditions of the various schools in Bloomington and Indianapolis, and thanks to the hard work of the deans and Judy Palmer’s office, the colleges or the various schools are in very good shape. There are a couple that we are watching, but the Music School especially and the College of Arts and Sciences are back on what I will call good standing. They are doing an excellent job of resource management. In Indianapolis, SPEA and the Dental School are making great strides in getting themselves back in firm footing, so overall we are very pleased with what we are seeing, and even more pleased with the fact that we are able to monitor these items now and we are able to address the problems more rapidly and more aggressively as they occur. So, Mr. President, it was a very good meeting and a very good report.

Before I stop I have got to say something here. You have been a wonderful leader as everyone has said, especially on the Finance Committee. We are going to miss you enormously. Your advice, your council and your insight has been invaluable. A lot of the things that we have accomplished, especially in the budgetary side, have come from suggestions that you have made and your hard work and effort. I concur with Fred and everyone else to wish you Godspeed, good luck and we will certainly miss you.

C. CAMPUS COMMUNITY COMMITTEE

1. Report from Trustee Breckenridge

Trustee Breckenridge: Thank you, Mr. President. We had a Campus Community Committee meeting that went very well this morning. This is a great campus.

This morning we received an update on childcare services, with three campuses -- IUPUI, Kokomo and IU East -- reporting on their services. These campuses are getting grants from the Department of Education to help them with their centers. This initiative was pushed by Senator Dodd, and I would encourage our childcare coordinators to contact John Walda. He gave a presentation to the External Relations Committee on how he is working to get federal funds, and I know that we could use additional federal funding for our childcare centers.

All of the childcare centers are doing very well. IUPUI now has 211 children, and capacity for 234. In Indianapolis, one-third of the childcare children are children of students, a third are children of faculty and a third are children of staff.

We also heard reports from Susan Shapiro, Clifton McNish of 21^st Century Scholars, Tim Williams, who is the director of Multicultural Affairs, and from student leaders.

Trustee Willsey: I would like to recognize the outstanding student body presidents who will graduate. I would like to recognize Jake Oakman from Bloomington, Jackie Landess from IUPUI, Andrew Takami from IU Southeast and Jeff Sedberry from Kokomo.

Trustee Morris: I love it at commencement when Myles always says "stay in touch" and so I hope the four of you will stay in touch with us. I am eager to follow your careers. It will be great.

D. UNIVERSITY POLICIES COMMITTEE

Report from Trustee Obremskey

Trustee Obremskey: I would like to what everybody else has said: Jim, I know of no man who has a greater love for his university than you do. Thank you.

Action Items:

a. Approval is requested for the following new center

Lake Institute

Trustee Obremskey: Tom Lake, as you may not know, was head of the Lilly Endowment, and the university would like to create Lake Institute, which will assist -- through Mr. Lake’s generosity -- the organization of an ongoing set of activities that will provide a permanent resource for individuals, churches, youth groups, and institutions interested in using faith as a basis for giving back to improve the personal lives of their members and constituents and thereby improving their communities. This will be part of the Indiana IUPUI School of Philanthropy. The committee, after discussion, approved the implementation of the Lake Institute, and I recommend it to the Board for approval.

Chancellor Bepko: This is a very important institute. It will be known as the Lake Family Institute on Faith and Giving; I think that you all will be very proud of this after it is up and running.

Trustee Morris: Tom Lake was my colleague for many years. Really quite a remarkable man. A man who cared deeply about community and state and incredibly generous person. A man of deep faith. A very thoughtful person. This is a wonderful testament to him. He was very humble; I wonder what he would think about having his name on anything. I noticed that Bob Lind is associated with this project. Bob Lind was head of the religion program at Lilly Endowment for many years, and I suspect that he is one of the most thoughtful people in America on the role of religion in American society.

Unanimously approved on a motion duly made and seconded.b. Approval is requested for the following new degrees

M.A. in Applied Communication
MFA in Visual Communication

Unanimously approved on a motion duly made and seconded.

M.S. in Applied Mathematics and Computer Science

Unanimously approved on a motion duly made and seconded.

c. Approval is requested for the Programmatic Vision and Academic Program Reviews for the Regional Campuses and IUPUI, and endorsement is requested for the Academic Program Reviews as submitted by the campuses.

Trustee Obremskey: You will recall that at last month’s meeting, we discussed Programmatic Vision statements and Academic Program Reviews for the regional campuses and IUPUI. Two of them had been distributed to you from the regional campuses, along with a separate one from IUPUI. These Programmatic Reviews are required by the Higher Education Commission, and the university has worked very hard pulling them together. According to the agreement we entered into with the Commission for Higher Education, they must be submitted to the HEC in May of 2002.

I was very impressed with work, and the effort undertaken by the campuses and IUPUI. This report, in which each of the various degrees are reviewed, will be submitted to the Commission for Higher Education. The committee discussed this, and urges your approval. (End of Tape)

Unanimously approved on a motion duly made and seconded.

Trustee Obremskey: … The committee looked at Indiana University’s role in Indiana’s charter school movement, with input from people from the Richmond school system as to their practical application of that movement as it relates to them. It was one of the better discussions we have had in an issue that is on the forefront in Indiana, and I would like to thank Dean Gonzalez and the folks from the Richmond area as well as the other folks who participated in the discussion. Dean Gonzalez do you have a comment or two you would like to make in this regard?

Dean Gonzalez: I would like to thank the committee that worked with me to put together the report that was presented to the committee this morning. Charter schools obviously are a critical issue for Indiana for this state. I think they have put forward some very thoughtful recommendations and we appreciate the opportunity to present it to the Board.

Trustee Obremskey: In your board material is the report entitled "Indiana University’s Role in Indiana Charter School Movement" and I recommend it to you for your review. That concludes the report of the committee, Mr. President.

E. EXTERNAL RELATIONS COMMITTEE

1. Report from Trustee Ferguson

Trustee Ferguson: I, too, want to extend my congratulations to you, Jim. You have done so many wonderful things for Central Indiana, Indiana University and the City of Indianapolis. Your impact has been tremendous on the Olympic Committee. Your impact on helping people in the world and having an opportunity in the world is in front of you. They couldn’t have picked a better person, and I see it as a wonderful opportunity for a person with your calling of service and for you and Jackie both, my grade school and high school classmate of many years and I am proud of both of you.

The External Relations Committee heard a report from John Walda on his priorities for the work he is doing in Washington, D.C., and what he sees for the future. It was a very good report. It is a great opportunity for us, and we should be able to expand opportunities for the university and for the faculty, and I see that as really a bright spot for future energy and activities. I think the board needs to continue to give the support necessary and help with that vision and guidance there.

Don Weaver gave us an update on the legislative session. We had some discussion about where we are going. We hope to have a retreat of the External Relations to get focused for the next few years, and determine where both the committee, and the university, can go in the next 12 months, and in the next five years. We want to spend some time together, and bring together everybody who’s involved -- the chancellors, the trustees and others -- and make sure we are all on the same page and headed in the same direction.

Trustee Morris: Thank you, Steve. You know how much your colleagues on the board appreciate your efforts with the legislature on our behalf, on behalf of the whole state. We are very grateful. You are incredibly effective. Sue, we appreciate your efforts as well.

INDIANA UNIVERSITY - President Brand

a. Una Mae Reck as Chancellor, Indiana University South Bend, and Professor of Education, with tenure, School of Education, beginning July 1, 2002.

Unanimously approved on a motion duly made and seconded.

INDIANA UNIVERSITY BLOOMINGTON - Chancellor and Vice President

Sharon Stephens Brehm.

Chancellor Brehm: As you know, I wear two hats. I am Vice President for Academic Affairs as well as Chancellor of the Bloomington campus, and I would like to start out making a recommendation to you in my VP role. At your seat you should find a fairly thick document. These are the recommendations for promotion and tenure. Every one of these recommendations, and these are from all of the campuses, have been very carefully and very rigorously reviewed. They have met the highest standards. These are excellent faculty members, and in fact, they are our leaders of our faculty, both those who are tenured and promoted to associate professor as well as those who will be promoted to full professor given your approval. It says draft on what you receive because it is a draft until you approve it.

Unanimously approved on a motion duly made and seconded.

INDIANA UNIVERSITY-PURDUE UNIVERSITY INDIANAPOLIS - Vice President and Chancellor Gerald L. Bepko

Chancellor Bepko: As is the custom, I have a document that provides notes on the personnel items for IUPUI. I would like to say a word about a couple of appointments, which are noteworthy.

First is Pauline Baker, who comes from the University of Illinois. She was division director, Data Mining and Visualization at the National Center for Supercomputing and Applications, and a senior scientist at the Beckman Institute for Technology at the University of Illinois at Urbana-Champaign. She comes to be the head of the Human Computer at our action lab, one of the pervasive technology labs three of which are in Bloomington, three of which will be developed at IUPUI. These were the product of the excellent work done by our president, Myles Brand and encouraging the Lilly Endowment to provide the funding for the pervasive technology labs.

The other appointment is Anthony Ashton Tarr, recommended for the position of Dean of the Indiana University School of Law at Indianapolis. Tony Tarr is currently the Gerard Brennen Professor of Law and the Dean of the School of Law at the University of Queensland in Australia. He was the consensus choice of the search committee and the faculty of the school, and we are enthusiastic about recommending him for this appointment.

Just a footnote: There has been some discussion at this Trustees’ meeting about recruiting faculty members from other universities, and you can see in the personnel recommendations that a number of individuals have, indeed, been recruited from other universities. A couple of them were recruited as visiting professors, which gave us an opportunity to get to know them, and vice versa. We have Polly Baker from Illinois, Tony Tarr from Queensland, Stephen Bonsib from the Medical College of Georgia, Stephen Downs from the University of North Carolina, and maybe most interestingly Linda Malkas from the University of Maryland. We are particularly pleased to take somebody away from Maryland.

Unanimously approved on a motion duly made and seconded.

INDIANA UNIVERSITY EAST - Chancellor David Fulton

Unanimously approved on a motion duly made and seconded.

INDIANA UNIVERSITY-PURDUE UNIVERSITY FORT WAYNE – Chancellor Michael Wartell

Unanimously approved on a motion duly made and seconded.

INDIANA UNIVERSITY KOKOMO – Chancellor Ruth Person

Unanimously approved on a motion duly made and seconded.

INDIANA UNIVERSITY NORTHWEST – Chancellor Bruce Bergland

Unanimously approved on a motion duly made and seconded.

INDIANA UNIVERSITY SOUTH BEND – Chancellor Kenneth Perrin

Unanimously approved on a motion duly made and seconded.

INDIANA UNIVERSITY SOUTHEAST – Chancellor F.C. Richardson

Chancellor Richardson: I am pleased to present to you Gloria Murray for Dean of Education. Gloria has just finished a year as Interim Dean. She did a very fine job. Gloria is a graduate of Indiana University, got a doctorate here. She also served on the faculty at the University of Louisville and George Mason University. She will be the first African American Dean at IU Southeast so I am pleased to present her to you.

Unanimously approved on a motion duly made and seconded.

Trustee Morris: F.C., I won’t be here when you retire officially. I was pleased that we could show our gratitude to Ken Perrin earlier and I just express mine to you. You have done an incredible job for IU at Southeast and every other assignment you have had . You are a wonderful colleague, and we are all grateful.

Approval is requested for the award of degrees as of February 28, 2002

Unanimously approved on a motion duly made and seconded.

Approval is requested for honorary degrees to be awarded during 2002 Commencement ceremonies, May 4 – 12, 2002

Unanimously approved on a motion duly made and seconded.

Reporting for the record the names of the four professors who received distinguished rank at Founders Day on March 3, 2002:

Paul Newman – Distinguished Professor
Rudolf Raff – Distinguished Professor
James C. Riley – Distinguished Professor
Richard Shiffrin – Distinguished Professor

Unanimously approved on a motion duly made and seconded.

Trustee Shoulders: Jim, we’ve only had an opportunity to serve together for six months, but I want to say that you have been an inspiration to a new board member, as I am sure you have been with my colleagues. Thank you for taking the personal time you have taken with me. I am only troubled by one thing: They are crying when you are going off the board, and they cried when I came on, so I congratulate you.

1. Action Item: Approval is requested of tuition rates and dedicated fees for FY 2002 – 2003

2. Action Item: Approval is requested of the Indiana University Operating Budget for FY 2002 - 2003

Vice President Palmer: I would like to start by making a few introductory comments about the position we find ourselves in at this point.

It is true that each year in the spring you are asked to set tuition rates and budget guidelines for the coming year. We have lived in an environment for a number of years where we have shared with you information about where Indiana University ranks, vis-à-vis its peer institutions in the Big Ten in terms of state funding and student fees. We traditionally have been either at the bottom or next to the bottom, alternating positions with our partner university, Purdue. It is remarkable to be able to reflect upon the excellence that exists at Indiana University, given the decades of low funding that we have experienced. I think all of us take pride in what has been accomplished and what we continue to accomplish.

The second year of a biennium is always the most difficult year. Most of the state’s additional funding results from enrollment changes, and that funding usually is set in the first year of the biennium as it was this year. So, as we begin to think about our budget preparation and tuition policy for the coming year, we have an average increase for the university in state appropriation of 1.9%. Now, that is not too unusual in the second year of a biennium, but given the extra challenges of this biennium, and anticipating what might happen if actions are not taken at the state level to address the budget deficit and the tax restructuring, we find that Indiana University could be in a very serious position when it comes to maintaining its excellence in quality. So, the challenge that you as a board – and those of us who prepare a variety of pro formas and budget calculations – faced was how to maintain certain priorities in our planning process that addressed your highest priorities, aspirations and goals for the university.

As we were making our preparations, we also were going through three announced budget reductions totaling over $100,000,000 in the course of this biennium. I am not going to go through those in detail except to say that we have had all of the R & R funds, the repair and rehabilitation funds, for our campus buildings removed for this biennium. We have lost one full year of information technology funding. We have been advised that our general fund operating appropriations will be reduced by more than 3%. And we have a rollover or deferral of state appropriation monies equal to one month, which for Indiana University is over $30,000,000 and that the payback will not begin until the second year of the next biennium. Three years from now.

In November, when the bulk of these announcements were made, President Brand asked the university to undertake a planning process to deal with the operating budget cut of 2.6%; that was successfully completed, as we reported to you. That has been a very big factor in helping us put this budget together.

The priorities of our budget focus on maintaining the quality of the institution at all of our campuses, and providing access. That relates to the strength and excellence of our academic programs. It relates to maintaining, attracting and retaining our quality faculty, and it includes support for students both in terms of financial aid and services.

We also addressed the special initiatives that this board approved last year, which equaled for all of our campuses, except Bloomington, an amount close to 3% in tuition. They were aimed specifically at enhancing our retention efforts, helping students to better achieve their overall educational goals successfully, and hiring more full-time faculty to replace part-time faculty in our classrooms. This was not easy, given the situation that we found ourselves in as we started to prepare this budget, but it remained a very high priority. You will recall that it was a three-year plan. Last year was the first year. You have had reports from Vice President Nelms, and from each of the campus chancellors on their success in accomplishing those goals.

A third priority was to maintain our progress on the information technology strategic plan. There have been several references to elements of that plan today in your various committee reports, but suffice it to say that it’s a broad-based plan that, again, addresses quality from the standpoint of our teaching and research excellence, as well as maintaining strong and cost-efficient administrative systems.

It is always necessary to address price increases that we have little or no control over as we develop the budget for the coming year. Two that that I would point to are rising costs in the provision of healthcare plans, and additional planned expansion costs, including utilities, as our campuses grow.

Another challenge in light of the announced cutbacks was to minimize -- and I underscore minimize -- any backfilling for those cuts by using increases in tuition.

I would now like to present to you, given that framework, President Brand’s recommendations with regard to both tuition and budget for the upcoming fiscal year 2002-03. Steve Keucher, University Budget Director and Assistant Vice President, who has worked many, many hours along with members of his staff to prepare these materials for us, will assist.

The recommendation for student tuition for the coming year is a 9% increase on the Bloomington campus, a 9% increase on the Indianapolis campus, and an 8% increase for regional campuses. That is tuition. As you know, we have additional mandatory fees, which are assessed to all students, and we are suggesting and recommending to you, as the result of the loss of one year’s funding in our information technology support from the state, a temporary technology fee increase of 100% based upon the current rate that students pay today. There is a range amongst our campuses; at Bloomington, it is $100 per semester. I underscore again that this is temporary. As soon as the state reinstates its technology funding for Indiana University this rate will be removed.

Other mandatory fees are displayed on a schedule that will be distributed to you, but there are few increases and they fall in the areas of the student activity fees. There are no other student technology fee increases for any of the campuses other than the temporary technology fee which resulted from state funding reduction. As the Commission for Higher Education reports increases in tuition and fees, they look at a combined fee rate for instructional fees or tuition and mandatory fees. Looking at how they are likely to calculate this, and using our information, the effective rate for tuition and mandatory fees in Bloomington drops to 8%. That is simply the function of the size of tuition base compared to the technology fees. So, the overall effective rate on the combined tuition and mandatory fees will be 8% for Bloomington. On the other campuses the range is a low of 7.6 to a high of 8.8%.

You will also be asked to approve graduate and professional fee rates, and dedicated fee rates that support our various bond issues. It is important to put these fee rates in some context. Remember, we are not backfilling for the state’s $100,000,000 reduction or deferral. We are now only backfilling for the technology loss from this year, and again, that is with the temporary fee. There was an additional ½ of a percent which was included in the 3% I mentioned for the general fund, and that will be covered in this budget, but the majority of the general fund reduction is being covered only by the use of cash. So, if action isn’t taken to restore these cuts in the coming biennium, this board and the university will need to address that after we know what the budget recommendations and approvals are for the 03-05 biennium.

What does this do to our position vis-à-vis our peer groups? We do not have official information from all of our Big Ten institutions, but of those we know about -- and several have already announced their tuition – we compare very favorably. Our rate of increase is low compared to what they have approved. Currently, we rank seventh in the Big Ten in terms of our rate for Hoosier students, and we do not expect any significant change in that as a result of this tuition increase.

The real question that should be in everyone’s mind is what are we getting for this tuition increase? We are funding our special initiatives, fully. The informatics program will move forward as planned in the coming year on the Bloomington and Indianapolis and South Bend campuses. Those are the campuses for which funds were provided by the 2001 budget. We will maintain our academic program excellence with this budget. The campuses are working very hard as they begin to prepare the detail on this budget to assure that that continues, given that doing so was one of the objectives set by President Brand in making this recommendation. Faculty hiring will proceed. That is an absolute key element in maintaining the quality of our programs, and President Brand has asked that faculty hiring proceed as scheduled.

Our salary policy this year will be lower than it has been in previous years. The faculty salary guideline for campuses will be 3 ½% with staff at 2 ½%. I would like to pause here just to point out that we view this in terms of total compensation. I mentioned healthcare costs. Vice President Clapacs, Dan Rives and the healthcare cost commission that has functioned for a number of years has done an outstanding job, but the fact of the matter is we’re experiencing the same price pressures and utilization pressures that we see occurring in other organizations, public and private. Our healthcare cost increases are in excess of 20%. When we translate that at the university level in terms of the salary policy, we have a compensation policy that is 4.7 for faculty. This is a major issue not just for us but, as I said, for others. I know that President Brand has already asked the Commission to take a look at what we can do in this area to improve our cost controls.

Out of the salary policy we will ask that a minimum of .5%, a half a percent, be allocated for our highest performing faculty across the university. This is a policy judgment that this board made last year in setting the policies for the budget and the guidelines, and it will be continued this year. The chancellors will be working with their campus leadership to effect this policy.

Financial aid. Special efforts are being undertaken on the Bloomington campus to address those areas of low- and lower-middle income families to keep their family contribution cost level with this year.

President Brand: Let me add one thing. Judy, a very good job of outlining a complex budget situation. The university is under stress by virtue of a very tight state budget and budget cuts of over $100 million. Our highest priority has been not merely to protect the academic mission of the institution, but to enhance it as much as we can, and so three-fourths of those cuts were taken from university-wide administration, including the cutbacks in R & R and technology mandated by the governor’s office through the Commission of Higher Education. Of the remaining one-quarter, we have asked the campuses to protect as much as possible the academic mission by taking their cuts on the administrative side. So, to give an example, on the Bloomington campus less than .2% of the budget cuts have come out of the academic units. Remember, the total cuts have been over 3%, total cuts have been over 3% to the institution less than .2% out of the academic institutions, and we have proceeded with all our searches for faculty. We will do everything in our power to protect the academic mission and to enhance it.

Indiana and Indiana University are not alone in working under difficult fiscal constraints. To the best of my knowledge there is only one institution, one state in the Big Ten that has given their universities any significant raise and that was Michigan. All other states in the Big Ten are also facing serious situations, some worse than us, some not. Those states and their public research universities are raising their tuition to a greater degree than we are. Quality is the most important factor in education. If we cannot protect the quality, and enhance the quality, of the education for our students then we are doing them an ill-service. Paying less and reducing quality is just not the answer. It shortchanges our students, and not just this generation, but future generations because it is very, very difficult to rebuild an institution once the quality has been reduced.

So, we have what looks like a high tuition and fees, but I want to emphasize that even though the number is 9%, the total additional costs to our resident students will be 8%, and that is the number that we use to judge, though the tuition part is 9%. We have kept all our other fees down. That additional cost is low in comparison to other institutions like ours, and the reason is because we have worked very hard to be cost-effective and cost-efficient.

Finally, one last point, this is not a solved problem. This state has not yet resolved its financial budgetary issues. The legislature did not take action in this last session. The legislature, executive branch have to come together to produce a workable budget for our state. We gain nothing by eating our seed corn. By harming K-12 and higher education, we are producing nothing for our future. So, the challenge is before all of us, certainly our elected leaders, but those of us who support them and work with them to create a budget for the future that enables this state to go forward. The job is not done.

Trustee Obremskey: I would like to reiterate what President Brand said. We cannot shirk our responsibility to the citizens of the state, nor shirk our responsibility to the students of this state by letting the educational institution that this state is so proud of slip. We must continue with the initiatives that we started in the last several years toward excellence in education, simply because of the fact that other elected representatives have not, in my judgment, stepped up to their responsibility. It is unfortunate that we are faced with this situation but we have to deal with it. I think I speak for the Trustees by saying that we are committed to excellence in education and we will do whatever it takes to make sure that Indiana University maintains that degree of excellence that we have been able to achieve and hopefully build on.

1. Approval of tuition rates and dedicated fees for FY 2002 – 2003

Unanimously approved on a motion duly made and seconded.

2. Approval of the Indiana University Operating Budget for FY 2002 - 2003

Unanimously approved on a motion duly made and seconded.

Vice President Palmer: I might add that I believe that we will interpret that motion to include the dedicated fee rates. These are not additions, this is just set aside for our bonding responsibilities. We will then have our other fee rates that will be approved administratively, including business and engineering. Thank you.

Trustee Morris: Thank you, Judy.

Trustee Obremskey: Good job, Judy.

President Brand: We covered all the items, didn’t we?

Vice President Palmer: Yes, because your motion I took to include both tuition and budget guidelines.

Trustee Morris: I am glad that you took me by surprise earlier when you unveiled the painting. I knew this was going to be very difficult, but I think I can speak now.

Like most good things, I have received more from Indiana University than I can ever give back. This is an extraordinary place. The collegial environment with the trustees, the faculty, the senior management, and the students, is wonderful. I think each trustee has been inspired each time we have spent time on the campuses with students. I will never forget that wonderful Campus Community Committee in Gary, nor the one in Bloomington two meetings ago. They were extraordinary.

I have an extraordinary opportunity in front of me, the leadership of the United Nations World Food Program. Making that decision to leave my IU assignment was the most difficult aspect, apart from family considerations.

I want to thank my alumni colleagues who have elected me twice. I am very grateful. I want to thank my trustee colleagues -- you are wonderful. I want to thank the faculty, the senior leadership and the many wonderful friends we’ve made. We have a great president. I have grown to have great affection for Myles. He loves this place, and for me that is a barometer of a person’s ability to do a job. Every great institution marches to its dreams and thrives to the degree that people care for them and love them, and he is emotionally engaged. He is very smart, works very hard, but he is emotionally engaged with this place.

This place has a great commitment to the quality of the student experience. The Time Magazine recognition speaks to that. It has also made a commitment to the state of Indiana to work together in a positive, supportive, uplifting, celebratory environment.

There are so many great things about Indiana University. The Bloomington campus is the most beautiful place in the world, and it makes all the difference for Indiana University. There’s Charlie Nelms and our commitment to retention and diversity; there aren’t many universities in this country that have made the commitment through tuition support to issues like retention and diversity.

There are a lot of great things about life, and one of the best is being a part of something much bigger than yourself where you have a chance to serve the common good. This place touches every Hoosier every day.

I am especially proud of the time I have been involved with IUPUI. Jerry Bepko is a model of academic leadership, an incredible man. IUPUI is the most exciting educational experiment in this country today. Bringing two great universities together in a great new emerging downtown with all of their academic strengths, with an urban mission and an extraordinary commitment to be engaged with its community.

I will always be there, and will do everything I can every day to tell the IU story, and to be helpful. You can count on that. I am very proud to be able to turn over the gavel to my friend Fred Eichhorn. Fred has served IU with incredible competence, dedication and affection.

President Brand: I want to thank you not only for your service and the kind words you say about Indiana University, our university.

May 1 – 3, 2002
IUB
Bloomington, IN

The meeting adjourned to meet again on call of the Secretary on April 4-5, at Indiana University East.

Robin Roy Gress
THE TRUSTEES OF INDIANA UNIVERSITY