Board of Trustees Conference Call
January 31, 2003
11:00 EST
President Charles Young and Board Chair Marshall Criser conducted a telephoneconference call with members of the University of Florida Board of Trustees onJanuary 31, 2003.
President Young opened the call welcoming participating Trustees Criser,Larson, Courtelis, Merkel, Warrington, Fried, O'Connell, and Fernandez. President Young stated that the purpose of the call was to discuss the impactof Governor Bush's budget recommendations on the University of Florida and onthe State of Florida. Dr. Young referenced a document provided earlier in theday to Trustees that provided basic information on the issues.
President Young indicated that the recommended budget provides no increase inenrollment funding to cover increased enrollment. Further, the budget willeffectively reduce the Education and General budget of the University ofFlorida by $20 million, despite a 7.5% increase in matriculation. Dr. Youngalso pointed out that IFAS would suffer a $7.4 million cut for research andextension activities, and the Health Center had a $4 million cut. With IFASand the Health Center cuts, the University of Florida total budget cuts wouldamount to $31.9 million.
President Young stated that the PECO budget will provide funding only for oneproject for the University of Florida (library expansion), and there are nofunds for Plant Operation and Maintenance for new space in 2003 or 2004. Further, the recommended budget will provide no funds for infrastructure needsof the University of Florida. The recommended budget does provide $14 millionin funding for projects currently in the Courtelis matching grant program. Nofunds are provided for endowment matching grants. The recommended budget wouldallow the University to add a 5% increase for resident undergraduate studenttuition, except that the University cannot increase Bright Futures tuition. Therefore, the 5% increase is essentially meaningless to the University ofFlorida given the number of Bright Futures students the University. Notably,the University of Florida has far greater numbers of Bright Futures studentsthan other universities in the state.
President Young noted that the recommended budget does not permit an increasein tuition for out of state students, but he indicated this was an error in thebudget and he is told it will be corrected. Dr. Young pointed out that theBoard of Trustees hopefully will gain authority to raise tuition for out ofstate students and all graduate/professional education.
Chairman Marshall Criser inquired about the amount of State of Floridasubsidies to private universities in Florida notwithstanding the severe cuts topublic universities. President Young agreed with Mr. Criser's public policyconcerns, and indicated he would provide the Board of Trustees with the amountsof those subsidies.
Dr. Young pointed out to the Board that the budget for the K-12 system has beenheld harmless and that the community colleges will be suffering small budgetcuts. He noted that the state universities essentially would be facingsignificant budget cuts to fund Amendment 9 regarding public school classroomsize.
Trustee Joelen Merkel inquired whether the University of Florida's percentageof cuts is similar to the other state universities. President Young statedthat there is a 6.5% cut for all universities; however, of the University ofFlorida's budget is being cut to a greater extent given IFAS and the HealthCenter. President Young also stated that he believed Florida State Universityis receiving some additional funding, as are the new law schools.
Trustee Cynthia O'Connell asked what the University strategy would be indiscussing these issues with the Governor. President Young discussed thestrategy, including responding to an inquiry from Trustee Jean Larson aboutcontacting alumni, parents and students.
President Young next addressed the steps that were being taken to deal with thecuts at the University of Florida. He said that the University would belooking to implement certain extraordinary increases to offset the $20 millionin E&G cuts. He indicated those increases would not help the PECO, IFAS orHealth Center cuts, or the lack of funding for the endowment matching giftprogram. Mr. Criser noted the historical low tuition rate in the State ofFlorida and the historical low state support for higher education. He statedthat although it would be unfortunate for the public now to have to bear theburden of that historical funding, he believed the University could come closerto a tuition rate that should have been in place for many years. Mr. Criseralso stated that if K-12 is held harmless, as a matter of public policy thisphilosophy should be reexamined because he doubted the citizens who supportedAmendment 9 would have supported it at the expense of public highereducation.
Trustee Louise Courtelis prompted discussion about direct communication withthe Governor which President Young stated that he would pursue. Mr. Criser raised the possibility of using the work of the task force thatstudied the Bright Futures and Pre-Paid Tuition programs in the University'sstrategy. President Young responded affirmatively, adding that it would beappropriate to limit the Bright Futures support to matriculation and tuition,not to local fees for support services. He stated that such a proposal would potentially provide $60 million for all universities which could help offsetthe budget cuts.
In conclusion, Mr. Criser informed the Board that President Young will developa comprehensive action plan for contacting the Governor and will put together adetailed position paper which will be broadly circulated to targeted alumni,donors, and students and parents. The Board briefly discussed the negativeimpact of the severe budget cuts on the University's strategic plan and theneed to include this issue in the communications by the University. PresidentYoung and Mr. Criser expressed appreciation to the Board for being availablefor the briefing. President Young indicated that another conference call wouldbe scheduled in the near future to further update the Trustees.