As approved at the May 22, 1997, meeting of the Board of Governors. The "in camera" portion of the minutes have not been included herein. Copies of Appendices are available from the University Secretariat, Room 290, Stevenson-Lawson Building. MINUTES OF THE MEETING OF THE BOARD OF GOVERNORS APRIL 24, 1997 The meeting was held at 3:30 p.m. in Room 330, Stevenson- Lawson Building. PRESENT: Mr. W.W. Peel, Chair, Ms. J.K. Van Fleet, Secretary, Mr. R. Bateman, Dr. W.A. Bridger, Dr. R. Colcleugh, Dr. J.V. Collins, Ms. S. Desmond, Dr. P. Davenport, Mr. J. Etherington , Mr. T. Garrard, Mr. W. Gibson, Dr. J.D. Hewitt, Mr. C. Keith, Prof. M. Lennon, Dr. P.P. Mercer, Dr. G. Moran, Mr. T. O'Neil, Mr. R. Parks, Ms. J.M. Potter, Mr. R.G. Rogers, Mr. H. Rosen, Prof. J. Starkey, Dean J.L. Stokes, Mr. H.W. Taylor, Ms. C. Weldon, Ms. L. Whittaker. BY INVITATION: R. Chelladurai, R. DelMaestro, A.S. Finlayson BG.97-99 Adoption of Agenda The agenda was amended by moving the report of the Campus and Community Affairs Committee forward to precede that of the Property & Finance Committee. BG.97-100 Minutes of the Previous Meeting The minutes of the meeting of March 27, 1997, were approved with the inclusion of the following amendments:  By Invitation: add L. Koza  The BG.97-64 heading should read: The Report of The University of 澳门六合彩开奖预测 Ontario Academic Staff and Administrative Staff Pension Boards BG.97-101 Report of the President The Report of the President is contained in Appendix I. The President commented on the following topics. BG.97-101a Update on Looking Forward Dr. Davenport provided an update on Looking Forward, the discussion paper of May 1996. He highlighted the following issues:  the Report of the Smith Commission, which calls for increased grants and greater flexibility in tuition fees in response to the severe state of underfunding of Ontario's universities  recent faculty mergers resulting in the new Faculty of Health Sciences and the Faculty of Communications and Open Learning  the Faculty of Engineering Science faculty complement plan  the Full Cost Recovery MBA program The option of closing the Faculty of Education and the Faculty of Dentistry has been withdrawn since the publication of Looking Forward. The Faculty of Education has demonstrated its ability to cope with the budget cuts. Although not the largest in Ontario, this year 澳门六合彩开奖预测's Faculty of Education has attracted the largest number of applicants. The Faculty of Dentistry will become part of the new Faculty of Medicine & Dentistry effective July 1, 1997. BG.97-101b Ontario Student Opportunity Trust Fund March 31 was the deadline for pledges to the Ontario Student Opportunity Trust Fund (OSOTF) program that the government announced in last year's provincial budget. 澳门六合彩开奖预测 raised $15.6 million which will be matched by the provincial government bringing the total to $31.2 million for student aid. Dr. Davenport commended the fundraisers, volunteers, the USC, SOGS, and MBAA for their efforts in making the campaign a major success. BG.97-101c Outstanding Fundraising Executive of the Year Dr. Davenport announced that the National Society of Fundraising Executives has named Ted Garrard the Outstanding Fundraising Executive of the Year. Mr. Garrard is cited for his leadership in fundraising during his previous position as the Campaign Director of the United Way of Greater Toronto and currently as 澳门六合彩开奖预测's Vice-President (External). COORDINATING COMMITTEE [Appendix II] BG.97-102 Amendments to By-Law No. 1 It was moved by C. Weldon, seconded by T. Vine, That By-Law No. 1 be amended as shown in Appendix II, Annex 1. CARRIED CAMPUS AND COMMUNITY AFFAIRS COMMITTEE [Appendix V] BG.97-103 Annual Report of the Student Services Committee The Board received for information the Annual Report of the Student Services Committee (SSC), detailed in Appendix V. BG.97-104 Board Representation on the SSC It was moved by J. Etherington, seconded by S. Desmond, That the representative of the Board of Governors appointed to the SSC be neither a student nor a member of the administration. CARRIED PROPERTY & FINANCE COMMITTEE [Appendix III and IV] BG.97-105 Operating and Capital Budget On behalf of the Property & Finance Committee, it was moved by R. Colcleugh, seconded by W. Gibson, That the University's Operating and Capital Budget for 1997-98 and supporting Tuition and Fee schedules be approved as shown in Appendix III, Annex 1 and Annex 2. The Vice-President (Administration) provided an overview of the 1997-98 University budget. He highlighted his presentation with the use of overheads, copies of which are attached to these minutes as Appendix 1. He summarized the 1996-97 University Budget:  The 1997-98 budget is an important step in a deliberate action plan in support of the principles, priorities, and designs articulated in Leadership in Learning: 澳门六合彩开奖预测's Strategic Plan. The Strategic Plan's major recommendations provided a guiding context for the planning process.  It is a balanced budget and a budget of rebuilding and strategic reinvestment despite the difficult fiscal environment created by government grant and fee policies for 1997-98.  The operating reserve is restored to Board policy levels.  Specific academic priorities reflected in the 1997-98 budget are:  investment in faculty renewal  increased student assistance  commitments to student recruitment, undergraduate teaching, and graduate enrolments  enhancement of the first year experience  promotion of research  It is a budget without surprises. Referring to the specifics of the budget, Dr. Mercer highlighted the following points: [Table 1] Operating Revenues: Total operating Revenues are projected to increase by 0.5%. Although the government announced that grants to universities will be maintained at the 1996-97 levels, total grants to 澳门六合彩开奖预测 are projected to decline by $1.3 million. Tuition Revenue increases by 9.8% while other revenues such as Affiliated College cross teaching revenue, investment income and the pension plan recovery are declining. [Table 2] Budget Allocations to Faculties: Initial base budget adjustments range from an increase of 4.1% to a decrease of 25% and are distributed differentially across the units. The selective and differential decisions proposed in the budget are based on Faculty planning submissions and meetings and are guided by the criteria identified in Leadership in Learning and proposals in Looking Forward. [Table 4] Scholarships and Bursaries: Support for graduate students increases through the addition of $225,000 to Graduate Student Scholarships. Beginning in 1997-98 a revised funding mechanism for Graduate Student Scholarships will be in place whereby 75% of the total graduate student tuition revenue for the upcoming year will be allocated to graduate student scholarships, bursaries, and awards administered by the Faculty of Graduate Studies. Undergraduate scholarships are up $225,000; the 澳门六合彩开奖预测 Scholar Award increased to $750. Bursaries and Work Study Programs increased to about $1.8 million. [Table 5] Budget Allocations to Support Units: The Educational Development Office budget is reduced as a result of the elimination of funds provided last year to support the development of interdisciplinary programs/courses; the Enrolment Contingent Fund will address this issue. Increased funding to the Office of the Registrar budget reflects the transfer of functions associated with on-campus summer course offerings which previously were performed by the Faculty of Part-Time and Continuing Education. Research 澳门六合彩开奖预测's budget is increased to support the University's commitment to increase the emphasis on the promotion of research activities, industry liaison, and technology transfer in all areas of research and scholarship [Table 6] Corporate Expenditures: The Library acquisitions budget is increased by 5%. The deferred maintenance budget increased by $750,000 which represents a continuing University priority identified in Leadership in Learning. [Table 7] One-Time Allocations: One-time allocations for 1997-98 amount to roughly $1.6 million and are intended to address issues which are critical to the functioning of the University. These include the investment of funds to support the PeopleSoft Project, the first phase of 澳门六合彩开奖预测's 125th Anniversary Fundraising Campaign, and staff development. [Table 8] Operating Budget Summary: The 1997-98 University Operating Budget is a balanced budget which is focussed on renewal and reinvestment and is built on the principles of selectivity and differentiation which were identified in Leadership in Learning. Capital Budget The Capital Budget is a reflection of University priorities -- deferred maintenance and classroom and research facility enhancement which includes projects such as the Chemistry Building Fumehood Replacement and HVAC Upgrade and the Social Science Animal Quarters Upgrade. Dr. Davenport clarified that the increase in student support funding over the last two years is about $4.6 million (from $8.1 million to $12.7 million). The proposed budget includes $800,000 to $1 million more in student funding over two years than is required by the government. Asked how 澳门六合彩开奖预测 fares in government funding relative to other universities, Dr. Mercer speculated that 澳门六合彩开奖预测's proportionate drop is roughly equivalent to that of other universities, but he could not state how much supplemental funding other universities have been able to make up through fundraising and other revenue sources. Many universities, for example, have defined benefit pension plans and thus may have pension surpluses that can be tapped for operating budget relief. BG.97-105a Undergraduate Tuition Fees It was moved by C. Keith, seconded by R. Parks, That undergraduate tuition fees, excluding those for international students, not be increased differentially for 1997-98. Speaking in support of the amendment, Mr. Keith said that 澳门六合彩开奖预测 proposes to increase student fees differentially, whereas student support is not increased differentially. There is insufficient student aid to compensate for the large tuition increases in some of the professional programs. He asserted that this amendment, if adopted, would not change the "bottom line". The average tuition fee increase of 10% would remain in place and therefore would not affect revenues. He appealed to the members of the Board to recognize the needs and wishes of the students at 澳门六合彩开奖预测 and that -- in the absence of an adequate student loan system -- will meet the needs of the students. Dr. Davenport informed the Board that this amendment was considered by Senate and was defeated. The issue of differential fees has been discussed at great length within the University. The reason differential fees are assessed is that students who attend 澳门六合彩开奖预测 have different program costs and different earnings expectations, depending on their program of study. Universities have lobbied the government for a number of years for the freedom to set fees in a differential manner to recognize the differences. It is unfair to insist on charging the same level of fees or differentials that currently exist that are so minimal to students who have very different program costs and different earning expectations. The government, in the last two years, has set the average level of fee increase, but has allowed a margin which this year is 0 - 20%. The government recognizes the importance of differential fees. Dr. Davenport accepted the students' claim that the debt load is a problem, but stated that debt is a problem in relation to future income and in relation to the ability to pay back loans. Mr. Parks clarified that the amendment does not suggest that fees will be the same across the board but that for one year, until student aid funding increases, the increases will be the same. The question posed to the students at 澳门六合彩开奖预测 was should the increases in tuition be differentiated or should the increases remain the same for the upcoming year. The consensus from the undergraduate students is that the fee increases should remain the same. Asked what impact increases to professional school fees has on enrolment, Dr. Moran replied that according to past experience 澳门六合彩开奖预测 is not experiencing a deterrent effect on enrolment: last year the tuition fee for dental students doubled but there was no decline in the number of applications to the program. This year, with the institution of the full-cost recovery MBA program, the Ivey School has experienced a 50% increase in applications. The administration is confident that the degree of differentiation is not having a negative impact on applications. Nevertheless, this situation must be monitored carefully because it may be that in some programs the fee level is approaching the point of seriously reducing accessibility. The administration is trying to protect those areas at 澳门六合彩开奖预测 where applications are down, specifically the Faculties of Arts and Social Science. Dr. Hewitt asked the mover of the amendment to elaborate on why it is presented at this time, given that there is no evidence that the student aid situation will be any better a year from now for students in certain programs. Mr. Keith responded that the amendment, if accepted, would provide a "catch-up year" because student aid has not kept pace with the differential tuition fee increases. The majority of student aid comes from the student loan system which is inadequate. Ms. Weldon spoke against the amendment. She observed that although OSAP has not changed, the University has increased its commitment to and investment in student support. The AMENDMENT was called and was DEFEATED. The MAIN MOTION was called and CARRIED. BG.97-106 Student Fee Funded Units, Ancillaries, and Academic Support Units It was moved by R. Colcleugh, seconded by W. Gibson, That the 1997-98 budgets for Ancillaries, Academic Support Units, Student Fee Funded Units and related Activity Fee rates be approved as summarized in Appendix III, Annex 3 (Tables 1 and 2). BG.97-106a Financial Aid Office Fee It was moved by R. Parks, seconded by C. Keith, That the cost of the Financial Aid Office be absorbed into the budget of the Registrar's Office over the course of the next three years. The Chair reminded the Board that a recommendation to eliminate the Financial Aid Office fee was considered by CCAC at its last meeting and was defeated. Details concerning this issue are contained in Appendix V, Item 4. Mr. Parks stated that considering the level of debate and the number of questions asked about student support during the debate of the University's budget, and taking into consideration 澳门六合彩开奖预测's mandate as outlined in Leadership in Learning, recruitment of quality students is essential to the University. Observing that budgetary themes this year include student support and concern that enrolment remains above the BIU corridor floor, he asked why the Financial Aid Office is not considered a core function of the University and thus funded from the operating budget. He asked if it is ethical to charge students a fee to support the administration of the office that delivers financial aid to students. Dr. Moran stated that the question implies that the legitimacy of any fee-funded unit depends upon it not being part of the core function of the University; this is an incorrect premise. These ancillary fees were created to fund functions that are not directly related to the educational program and therefore not directly tuition related. He noted that during the review of ancillary fees this year, the Scholarship Office fee was eliminated because the function is to be incorporated into the normal budget of the Registrar's Office. Dr. Davenport added that absorption of the cost to run the Scholarship Office by the Registrar's Office amounts to a budget cut to the Registrar's Office and the University as a whole; this means less revenue which can result in staff layoffs. Further staff reductions in this area are unacceptable because the Office plays a vital role in the operations of the University, including the recruitment of students. The AMENDMENT was called and was DEFEATED. Mr. Keith stated that even though many Board members were present at the CCAC meeting, the issue just debated and defeated and the issue of the Fowler-Kennedy Clinic which was debated and defeated at the CCAC meeting are not issues that the students have pursued lightly. While this may not be the right time to tackle the fees, the Student Services Committee will continue to address those fees and issues in the years to come until the University and the Board come to the conclusion that the fees are not at the proper levels or should not be charged at all. The Chair advised that each fall the CCAC will hold a public meeting where budget issues such as this can be discussed. The main motion was CALLED and CARRIED. BG.97-107 Wind Up of Platt's Lane Estates, Inc. It was moved by R. Colcleugh, seconded by H. Rosen, That Platt's Lane Estates , Inc. (PLEI) be wound up; that the assets, liabilities and operations be transferred to The University of 澳门六合彩开奖预测 Ontario; and that the existing mortgage with Canada Housing and Mortgage Corporation (CMHC) be repaid and refinanced on a floating rate basis with the Bank of Montreal. CARRIED BG.97-108 Ontario/Quebec Trade Agreement The Board received information on the Ontario/Quebec Trade Agreement detailed in Appendix IV, Information Item 1. BG.97-109 Environmental and Safety Incident Report The Board received for information a report on University Community Centre Fire Code violations detailed in Appendix IV, Information Item 2. BG.97-110 Actions Taken Under Policy 2.15 Exceeding $500,000 Appendix IV, Information item 3, reports on the $800,000 1997 renovations program in the Richard Ivey School of Business. BG.97-111 Report on Scholarships See Appendix IV, Annex 2. [The following sentence should be deleted from The Avie Bennett Prize in Canadian Literature which appears at the top of page 3: "This bursary will receive matched funding from the Ontario Government through the Student Opportunity Trust Fund."] AUDIT COMMITTEE BG.97-112 Special Audit/Accounting Service Fees Budget It was moved by J. Collins, seconded by C. Weldon, That the Board of Governors approve an annual operating budget of $25,000 for special audit/accounting fees. CARRIED BG.97-113 PeopleSoft Implementation Project Status Report The Board received for information the status report on the PeopleSoft Implementation Project, detailed in Appendix VI. ITEMS REFERRED BY THE SENATE [Appendix VII] BG.97-114 Withdrawal of the Honors Russian Program It was moved by P. Davenport, seconded by L. Whittaker, That the Honors Program in Russian in the Faculty of Arts be withdrawn, effective September 1, 1997, subject to Senate approval (April 17). CARRIED BG.97-115 Report of the Academic Colleague See Appendix VII, Annex 1. BG.97-116 Appointments See Appendix VII, Information Item 2. ____________________ ____________________ W.W. Peel J.K. Van Fleet Chair Secretary