February 6, 2009

University Senate

MINUTES: FIFTH Meeting of the Villanova University Senate for Academic Year 2008-2009 in Bartley Hall, Room 2001 on Friday, FEBRUARY 6, 2009 at 3:30 P.M.

PRESENT: Dr. Robert Styer, Chairperson; Mr. Walter Smith-Randolph, Executive Secretary; Dr. Joseph Dellapenna, Parliamentarian
Dr. Chiji Akoma; Dr. Kevin Buckley; Dr. Lillian Cassel; Mr. Robert Capone ‘62; Mr. Thomas Carlin; Dr. Sohail Chaudhry; Mr. Ryan Conway; Mr. Richard Cullen; Mr. James Danko; Mr. Obinna Eboh; Fr. Kail Ellis, OSA; Dr. M. Louise Fitzpatrick; Mr. Stephen Fugale; Dr. Gary Gabriele; Dr. Beth Hassel; Ms. Nicole Harmuth; Ms. Latishia James; Dr. John Johannes; Ms. Simran Khanduja; Ms. Selma Koury-Wunderlich (representing the Alumni Association President) Dr. Sarvesh Kulkarni; Dr. Gerald Long; Ms. Dorothy Malloy, Esq.; Ms. Kelly Rose Maguire; Dr. Victoria McWilliams; Ms. Anna Menard; Mrs. Meghan Mogan; Mr. Robert Nashak; Mr. Vincent Nicastro; Mr. Luke Perez; Mrs. Mary Quilter; Mr.Tahir Qadeer; Dr. Donna Shai; Mr. Kenneth Valosky; Dr. Fayette Veverka; Mr. Bryan Wagner; Dr. Thomas Way; Dr. Joyce Willens

Ms. Helen Heron, Recording Secretary

ABSENT: Ms. Lauren Glozzy (Notified In Advance); Dr. Emmet McLaughlin (NIA); Mr. Michael Powers; Fr. John Stack, OSA (NIA); Dr. Barbara Wall (NIA)

 

AGENDA

Please silence all cell phones. Please place your nameplate at your seat to assist us in identifying all speakers and in building our community.
 

INVOCATION – Mr. Walter Smith-Randolph

I. APPROVAL OF MINUTES of the DECEMBER 5, 2008 MEETING
II. POWER OF INTERPELLATION
III. ANNOUNCEMENTS AND CORRESPONDENCE
IV. ANNUAL REPORT OF THE SENATE BUDGET COMMITTEE:
V. SUGGESTIONS FOR FUTURE AGENDA ITEMS and BLUEPRINTS ARTICLES VI. NEW BUSINESS
VII. ADJOURNMENT

The Chair, Dr. Robert Styer, called the meeting to order at 3:30 P.M. The Invocation was given by Senator Walter Smith-Randolph.

Gracious Lord,

We thank you for your abundant blessings. We ask that you bestow on us the ability to represent those that we are elected or appointed to represent. We hope that we can make decisions that will help transform the hearts and minds of those at this university. God, grant us the serenity to accept the things we cannot change, the courage to change the things we can and the wisdom to know the difference. Lord, let us think of the candidates coming to campus as we prepare our campus for future Villanovans.

We ask this through Christ our Lord and the patronage of St. Augustine of Hippo. Amen.

The Chair thanked Senator Smith-Randolph for his prayer.

I. The MINUTES of the December 5, 2008 Senate Meeting were moved for approval as written by Senator McWilliams, seconded by Senator Koury-Wunderlich and unanimously approved as submitted.

II. POWER OF INTERPELLATION

III. ANNOUNCEMENTS AND CORRESPONDENCE
A. The biannual meeting with the President and the Executive Committee of the Board of Trustees will be held on Monday, March 30th at 2:30 PM in Picotte Hall at Dundale.
B. At the next meeting, the Senate will vote on the following amendment to the University Senate Constitution:

The Executive Committee shall consist of the Presiding Officer and the Executive Secretary of the Senate, the President of the Student Government Association, the Chairperson of the University Staff Council, the Chairperson of the Faculty Congress, and the President of the Alumni Association or delegated representative, all ex officio, plus one additional student, one additional staff member, one additional faculty member, and two administrators elected for one year terms by and from the membership of the Senate. The Chairperson of the Executive Committee shall be the Presiding Officer of the Senate.

C. UPDATE ON THE PARKING COMMITTEE
Newly appointed members of the Parking Committee are as follows:
Chair-Rick Eckstein Peggy Kivitz
Elizabeth Malinkowski Helen Tursi
Rob Dormish Michael Powers
Elizabeth Blunt David Tedjeski
Debra Arvanites

D. UPDATE ON STAFF COUNCIL MEMBERSHIP
Election of new officers was held at the first meeting. They are as follows:
Chair - Meghan Mogan
Vice-Chair - Tom Carlin
Secretary - Lorraine Gallagher-Williams
Treasurer - Kevin Noller
Chair, Suggestion System - Teri O’Brien

IV. UNIVERSITY ANNUAL BUDGET REPORT:

Dr. Wayne Bremser, Chair, Senate Budget Committee
Mr. Ken Valosky, Vice President, Administration and Finance
Mr. Neil Horgan, Associate Vice President, Finance and Controller

Senator Kenneth Valosky began by acknowledging that it has been a very challenging time
from an economic standpoint. He expressed his appreciation to both the Senate and the Budget Committee for their patience as they have work through the many financial issues in preparing the budget.

Senator Valosky reported that from a process standpoint the University’s Administrative Budget Committee has recommended this budget for approval to the President. He stated that the President’s cabinet has reviewed and accepted it. He noted that although it has been reviewed by the Board of Trustees’ Executive Committee for information only, it has not yet been submitted to the full Board for action. It has been reviewed by the Senate Budget Committee. It will then be reviewed with the Trustees Finance and Audit Committee followed by the full Board.

He noted that some of the more significant items focused on tuition, financial aid and salaries. He felt that this is a modest tuition increase. It is the lowest percentage that the university has implemented since 1973. At the same time, financial aid will have the most significant increase in recent memory. He remarked that it is primarily need-based. There will be a 9% increase in financial aid. There is a provision in the budget for salaries at a 3% increase, however, faculty and staff can expect from a zero to 3% increase depending on the outcome of economic and enrollment uncertainties.

Senator Valosky explained that there will be a number of economic milestones that will be addressed as they move forward to determine whether enrollments and the incoming freshman class will hit the target that has been established in the budget. They will focus particularly on registration for next fall. They will look at deposits for incoming freshmen. They will also concentrate on credit markets and the availability of capital to families in order to finance education.

He stated that he has asked Dr. Ellen LaCorte, Associate Vice President for Human Resources, to present a strategy in dealing with the salary increase or the potential lack of increase. He commented that this will be reviewed shortly with Father Donohue and the President’s cabinet.
He remarked that in line with salaries and our conservative budgetary practices, there is no increase in head count provided for in this budget with the exception of the Development Office. This is consistent with the Strategic Plan that the President outlined in his various community meetings. He has asked Human Resources to look at the issue of health insurance for the employees. He clearly stressed that they will do everything in their power not to initiate a zero percent increase in salary and at the same time an increase in their co-pay on health insurance. He realizes that everyone is experiencing this uncertainty and that we will move forward in a very measured, thoughtful and deliberate manner.

Senator Valosky remarked that this budget continues to support an excellent education experience. He also noted that there is alignment with the Master Campus Plan and Strategic Plan as outlined by Father Peter. This will all be reviewed with the Trustees and a plan will be devised on how to scale back during these difficult economic times.
He summarized his talk with the fact that what has been submitted today is a balanced budget and one that he hopes will receive the Senate’s support. Senator Valosky also thanked the Budget Committee, the Chair, and Mr. Wayne Bremser for their work on the budget.
Senator Valosky introduced Mr. Neil Horgan, Associate Vice President, Finance and Controller. He presented a review of the 2009/2010 proposed budget. The budget summary provided by the Financial Affairs Office is reported on the following pages:

VILLANOVA UNIVERSITY
FISCAL YEAR 2010 OPERATING BUDGET
HIGHLIGHTS AND KEY ASSUMPTIONS

REVENUES

Tuition and Fees

Undergraduate (Full-Time)

• The budget for Undergraduate Tuition and Fees was based on the following full-time undergraduate enrollments:

FY 2009 Budget FY 2009 Projection FY 2010 Budget Increase/
(Decrease)
Full-Time Day Headcount 6,246 6,246 6,167 (79)
Full-Time Taking Part-Time (FTE) 50 50 58 8
Total Full-Time Undergraduates 6,296 6,296 6,225 (71)

Freshman Class Headcount 1,595 1,604 1,630 26

• Tuition rates for full-time undergraduates will be increased by 3.5%.

Law School

• Tuition for students in the J.D. Program will be increased as follows:

• 4.0% increase in rates for students in their 2nd and 3rd years
• 5.2% increase in the rate for 1st year students

• J. D. Program enrollments will be stable, and close to FY 2009 levels.

Graduate Studies

• Overall, graduate enrollments are projected to remain flat (close to FY 2009 levels).

• Tuition rates for graduate programs (excluding entrepreneurial programs) will be increased by 3.5%.

Part-Time Studies and Summer School

• Part-Time Studies and Summer School enrollments are projected to remain flat (close to FY 2009 levels).

• Tuition rates for Part-Time Studies and Summer School will be increased by 3.5%.


Continuing Studies

• The budget for Continuing Studies Tuition and Fees is comprised of the following:

($ in thousands)

FY 2009 Budget FY 2009 Projection FY 2010 Budget Increase/
(Decrease)
Revenue - On-Line Programs $6,000 $6,850 $6,200 $(650)
Revenue - Traditional Programs 1,555 1,530 1,510 (20)
Total $7,555 $8,380 $7,710 $(670)

Entrepreneurial Programs

• Tuition rate increases were determined by the individual colleges, on a program-by-program basis.

Study Abroad Programs

• Enrollments in Study Abroad Programs were budgeted to remain flat (at recent historical levels).

Financial Aid

• Undergraduate Financial Aid (excluding Athletics) is budgeted to increase at a rate of 9.0% as compared to the FY 2009 budget. This increase includes an additional strategic allocation of $1,000,000. Excluding the additional strategic allocation, Undergraduate Financial Aid is budgeted to increase at a rate of 7.0%.

Auxiliary Enterprises

• Room and board rates are budgeted to increase by 2.5%.
• Occupancy is budgeted to remain at close to 100%.
• Meal plan sales are budgeted to decrease slightly, with an offsetting increase in cash sales expected.

Endowment Spending

• Endowment Spending is budgeted to be $15,538,000. This amount is based on 5% of the three-year average market value of the endowment as of December 31, 2008, in accordance with the University’s Endowment Spending Policy and Pennsylvania statute.

Investment Income

• The rate of return on the University’s operating cash balances was budgeted at 1.0%.

Salaries

• The budget contains a provision for a 3.0% increase in salaries; the actual increase is anticipated to be between 0% and 3.0%, and will be determined based on economic conditions.

• The budget includes the following additional provisions: the allocation of $1,000,000 toward the temporary instructional budget (in support of an initiative to reduce teaching loads over time for tenured and tenure-track faculty, as part of the academic strategic plan), the allocation of $500,000 to support increased staffing in the Development Office (part of the University’s strategic plan), and the allocation of $600,000 to implement the second phase of the two-part review of staff compensation (to ensure that staff compensation is competitive with the market).

• Other than the strategic allocation for Development staffing, there was no headcount added in the FY 2010 budget.

Employee Benefits

• The budget for Employee Benefits is comprised of the following:

($ in thousands)

FY 2009 Budget FY 2009 Projection FY 2010 Budget Increase/
(Decrease)
Health Insurance (includes Prescriptions) $10,500 $10,000 $11,194 $1,194
FICA 9,800 9,800 10,300 500
Defined Contribution Pension Plan 9,340 9,340 10,020 680
Staff Tuition Benefits 4,430 4,280 4,382 102
Faculty Tuition Benefits 1,940 1,840 1,862 22
Dental 1,000 1,000 1,046 46
Worker’s Compensation 1,000 900 1,000 100
Tuition Exchange 941 911 1,015 104
Other 2,505 2,286 2,525 239
Total $41,456 $40,357 $43,344 $2,987

Operating Expenses

• Generally, the operating and capital budgets for the various University departments were not increased for FY 2010. Significant exceptions to this include the following: 1) the budget for books and periodicals for Falvey Library reflects an increase of 5.0% over the FY 2009 budget, 2) the cost of food purchases by Dining Services is budgeted to increase based on projected marketplace increases, and 3) the budget for utilities reflects a 12.4% increase over the FY 2009 projection, primarily related to estimated increases in prices for electricity and fuel, as well as increased utilization as a result of the new Law School Building.

Capital Budget

• The provision for facilities-related repair and improvements is $7,543,000. The largest individual component of this provision is for renovations to Fedigan Hall, which is budgeted at a cost of $4,200,000.

Planned Savings

• $9,300,000 is budgeted for the Planned Savings transfer to the Unrestricted Endowment. This represents an increase of $500,000 over the amount for FY 2009.
Other Reserves

• There is a provision in the FY 2010 budget for the transfer of $2,250,000 to the University Reserve Fund. This transfer is primarily related to surplus cash generated from extra students in FY 2010.

• A contingency reserve was established in the amount of $1,821,000, to provide the University with flexibility to adapt to developments related to the current economic crisis.

Dr. Wayne Bremser, Chair of the Budget Committee, was present to provide the Annual Report of the Budget Committee.

VILLANOVA UNIVERSITY
SENATE BUDGET COMMITTEE
REPORT TO THE UNIVERSITY SENATE

The Senate Budget Committee established and maintained a continuous liaison with the Administrative Budget Committee. The Senate Budget Committee had four meetings throughout the academic year to monitor the budget process. At the meetings, Mr. Neil Horgan, the primary liaison person from the Administrative Budget Committee, presented the current revision of the proposed operating budget as it was modified during the budget development process. Ken Valosky, Vice President for Administration and Finance, attended the meetings and provided information and insight into the administration’s thinking.

The current status of the proposed budget and budget assumptions were discussed and
Mr. Valosky and Mr. Horgan provided both the status of the current proposed budget as well as projected revenues and expenses for fiscal year ended 2008 and the assumptions on which they are based (e.g., student body size, tuition rates, salary increases, debt management, new construction, etc). The implications of the current financial crisis and the economic recession for the budget were a primary concern. Since the financial staff was very busy due to the current environment, the committee had less flexibility in scheduling meetings as compared to prior years, which may have had an impact on attendance. The Committee discussed the university’s strategic planning and related capital projects.

The committee’s discussions of the budget proposal focused on:

1. the current financial crisis and the economic recession and tuition increases;
2. the issue of Villanova employees that are not keeping up with inflation, given that the CPI index increased used by the budget committee for many years increased by 5.1% for the year ended June 30, 2008. For many years, the CPI increase for the prior year has been used as a benchmark for budgeting purposes. For 3 of the last 5 years, the benchmark inflation rate has exceeded the budgeted salary pool. Should having a budgeted salary pool that provides for Villanova faculty and staff to keep up with inflation (maintain their purchasing power) be a budget priority?
3. the tentative nature of the proposed faculty/staff salary increases-- The budget contains a provision for a 3.0% increase in salaries in FY 2010; the actual increase is anticipated to be between 0% and 3.0%, and will be determined based on economic conditions;
4. implications of the current fiscal climate on likely enrollments at both the undergraduate and graduate levels;
5. whether the planned savings should be increased for 2010, as proposed, because of the difficult financial situation;
6. impact of the financial crisis on the university's endowment;
7. staffing levels and the additional staff lines in the Development Office;
8. the need for the budget document to clearly state the budget priorities and how they have changed from the prior year;
9. the planning implications of a tuition-driven budget;
10. the need to clearly state how the budget is linked to the strategic plan.

At the January meeting, the Committee agreed to vote via email on whether the Senate Budget Committee has completed its responsibility of monitoring the preparation of the operating budget and has ascertained that the allocation of funds is in accord with University policies, priorities, and resources. Ten members voted “yes”; there was one abstention and zero “no” votes.

The Chair thanked Dr. Bremser for his report. A brief question and answer session on budget-related topics followed. The Chair thanked Mr. Horgan and Senator Valosky for their report and introduced a motion on the 2009/2010 budget:

US 0910-5-1: RESOLVED: It was moved that the University Senate approve the Administrative Budget for the fiscal year ending May 31, 2010 as presented by the Senate Budget Committee. A vote was taken and the final result was that the Fiscal Year 2009/2010 Budget was approved by a vote of:

All in Favor 38 Opposed 0 Abstentions 1 + 0 (the Chair)
Senator Fitzpatrick made a motion to approve the Fiscal Year 2009/2010 Budget, seconded by Senator Fugale. Senator Styer announced that the Budget for the FY 2009/2010 was approved. The Chair thanked Dr. Bremser, Mr. Horgan and Senator Valosky for being present at the Senate Meeting today.

V. SUGGESTIONS FOR FUTURE AGENDA ITEMS AND BLUEPRINTS ARTICLES

VI. NEW BUSINESS

The Chair encouraged Senators to submit any topics or questions that they want to be brought to this meeting and requested the e-mails be sent to the Dr. Robert Styer, Chair or Helen Heron, Senate Secretary for review by the Senate Executive Committee.

VII. ADJOURNMENT

There being no further business, a motion To Adjourn was made by Senator Long and seconded by Senator Conway. Adjournment took place at 4:35 p.m. The next Senate meeting is scheduled for Friday, March 13, 2009 at 3:30 P.M. in Bartley Hall, Room 2001.


Respectfully submitted,

Walter Smith-Randolph
Executive Secretary
VILLANOVA UNIVERSITY SENATE

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