Minutes of the Meeting of the
BOARD OF TRUSTEES
OF NORTHERN ILLINOIS UNIVERSITY
June 18, 1998

It has been a pleasure to work with all of you, Dr. Larson said, and I think we have made the transition from the Board of Regents to the Board of Trustees a very smooth one.  I want to make sure that the Board continues to do the good job that you have been doing for us.  When I looked at the settlement at SIU with the faculty union, Dr. Larson said, I thought I had better make sure these Board members can persuade for us next year.  So, what I chose to do is bring you each a signed copy of my book,  "Persuasion," which came out in January.  Dr. Larson distributed individually autographed copies of his book entitled, "Persuasion:  Reception and Responsibility," to each member of the Board.

Chair Boey stated that many of his statements about Dr. Larson applied equally to Dr. Jim Russell, who was unable to attend this meeting, and to Mr. Gordon Shneider, both of whom were also leaving the University Advisory Committee.  All three of you have been with us from day one, Chair Boey said, and you have been wonderful team players.  You took care of your needs, but also recognized that we had our needs; and because of that, we were able to work together to achieve our shared goals.

Chair Boey then recognized Rep. David Wirsing and invited him to speak to the full Board.  Rep. Wirsing said he appreciated the opportunity to say a few words and wanted to repeat a few comments he had made to the LAEA Committee earlier in the day.  First, he said, Northern Illinois University has done very well again this year relative to funding and capital projects.  There are some matters we have been working very hard on for some time that have finally come to fruition.  Most importantly, the Governor has signed the budget.  Also, in higher education there continues to be a strong support not only from Governor Edgar, but also from the legislature.  I believe, however, that some of the challenges that are being faced in higher education are not being recognized.  We continue to be in a strong economy, and that comes with its own set of challenges.

A couple of weeks ago, Rep. Wirsing said, I was invited to be a member of a three-day summit at Hamburger University at Oak Brook, which consisted of educators and legislators from about ten Midwestern states.  Educators and state legislators worked for three days trying to come up with some direction on higher education – current funding; how to continue to fund it; and how higher education can adjust to the challenges of the future.  I am currently waiting for the report from the summit to see what it will say and if they used any of my ideas.

Once again this year, the third year since the new governance system has been in place, Rep. Wirsing continued, I held my annual meeting of all the higher education entities in Springfield.  The purpose of the invitation, started back in May 1995, has been to review the new system.   The entities invited are the nine public university president's offices, representatives of the Community College Board, the Governor's Office, Lieutenant Governor's Office, the Executive Director of IBHE, and many other public entities.  This year, seven of the nine public universities were represented.  Representatives were sent from the offices of the two presidents who were unable to attend.  The meeting is conducted in a round table format, and continues to be lauded as a good meeting.  There are no demands placed on anybody; rather, we just sit and talk about some higher education issues. I have proposed to Kathy Swanson that we ought to formulate a meeting with representation from the nine boards of trustees and the community college system to conduct a similar round table discussion on higher education.  Also, the new Executive Director of IBHE is looking at perhaps doing something similar to this.  That is, to offer an opportunity for trustees to work together in a format of interchange.

I would also like to comment on House Bill 2805, simply because of this Board and Kathy Swanson and the people who support her.  I think it became a driver; it opened the eyes of many people to how we need to deal with this new Procurement Act.  I think because of that effort the list of problem areas with the Procurement Act has been expanded and the committee may really do something now.  I think we are going to see some action as soon as this Fall Veto Session.

Finally, I would like to commend this Board.  You continually amaze me because of your diversity and the areas you have to come from.  You are able to show the energy and the desire to support this university, which, ultimately, has trickled into the whole public system across the state.  There are a lot of things that happen in Springfield that you probably do not even know about in which Northern is seen as the leader.

Earlier in the LAEA Committee I had some very nice accolades thrown my way.  As a State Representative, I am supposed to represent the constituents of the 70th District, Northern Illinois University happens to be one of those constituents — a little larger than most of the others.  I am also supposed to move beyond that at the appropriate times and look at things from a statewide perspective.  That is what I am supposed to do and I enjoy it.  Thank you.

Rep. Wirsing appeared last week before the Board of Trustees at Kishwaukee Community College, of which I am a member, Chair Boey said, and I will repeat the same few words said there.  Dave is one of those Representatives we are fortunate to have who will go to the wall for us, without our ever asking him to.  And we cannot even think of someone whose efforts would equal Dave’s.  Thank you for all you have done for Northern, Dave.

Trustee Raymond made a motion to nominate a slate of Board officers as follows:

         Chair   Trustee Robert Boey
         Vice Chair                                                                                        Trustee James Myles
         Secretary                                                                                          Trustee Susan Grans
         Executive Committee Member                                                        Trustee George Moser
         University Civil Service Merit Board Representative                       Trustee James Myles

The motion was seconded by Trustee Moser.  There were no other nominations, and nominations were closed.  Chair Boey called for a vote.  The Board voted unanimously to elect the nominated slate of officers.  Chair Boey thanked the members of the Board for their continuing trust and their very generous support.  I think what makes us strong is the unity of the Board, he said, and that is the way we will continue.

Chair Boey asked for a motion to close the public meeting to conduct an Executive Session to discuss the following subjects authorized by the Illinois Open Meetings Act:  personnel matters as generally described under §2(c)(1) of the Open Meetings Act and Executive Session Minutes matters as generally described under §2(c)(21) of the Open Meetings Act.  Trustee Myles so moved, seconded by Trustee Grans.  A roll call vote of the Trustees to recess to Executive Session was unanimous.

There was no report from the Executive Committee.

Academic Affairs, Student Affairs and Personnel Committee

Committee Chair Susan Grans reported that the Academic Affairs, Student Affairs and Personnel Committee met on May 27 and the action items discussed would be discussed later in this meeting.  She commented that the Committee had recognized Associate Provost Rosalie Hewitt on her retirement and wished her well as she moved into a new phase of her career.  Heard and acted on by the Committee Meeting were a request for new degree programs and a request to delete an existing program. The committee also heard 1997-98 program review summaries for the College of Business and for programs in foreign languages, including the B.A. in French, German, Russian and Spanish and the M.A. Specialization in French and Spanish.

Finance, Facilities and Operations Committee

Committee Chair David Raymond reported that the Finance, Facilities and Operations Committee met on May 27.  The Committee received reports on active capital projects over $100,000, on transactions in excess of $100,000, and an update on the procurement regulations.  Action items presented included the Fiscal Year 2000 appropriated capital budget and the FY99 nonappropriated capital budget.  The Committee also approved FY99 purchases and contracts for Printing Services, copier and controller systems and miscellaneous commodities, parts and services distributed through Materials Management.  The Committee received recommended FY99 salary increment allocation guidelines, including a 3.2% increment pool for university faculty and staff and an additional market equity-based salary adjustment of 7% for designated clerical staff.  A reduction in the out-of-state tuition fee for full-time students was approved by the Committee that will allow the university to increase enrollment and expand regional student diversity.  Other items presented for consideration and approval included Fiscal Year 2000 budget guidelines, an FY99 NIU Foundation professional services contract, the establishment of a new depository account, and a Commonwealth Edison easement modification and new lease-purchase agreement for the new building for IASBO.  Each of these items received Finance, Facilities and Operations Committee endorsement.  They are presented in the President's Report for Board of Trustees approval at this meeting.

Legislation, Audit and External Affairs Committee

Committee Chair Moser asked to delay his report until later in the meeting.

Illinois Board of Higher Education

President La Tourette announced that the next meeting of the Illinois Board of Higher Education would be held on July 7 at NIU's Hoffman Estates Education Center.  On July 6, the evening prior to that meeting, the President said he would host a reception at the center for members of the Board of Higher Education, presidents, chancellors and others who usually attend the IBHE meeting. President La Tourette invited the Board of Trustees to join them at the reception or for the meeting the next morning.

The last meeting of the Board of Higher Education was held on May 5.  That was the last meeting for the IBHE Board chair, Bob Kustra, who had accepted the position of president of Eastern Kentucky University.  President La Tourette said Dr. Kustra resigned his position as chair of the Board of Higher Education and would be leaving the Lieutenant Governor's position on June 30 to assume the duties of the presidency at Eastern Kentucky on July 1.  I think it is really important, the President said, to note that Bob Kustra really understood higher education.  He initiated a process which will result in a great deal of change in the Illinois Board of Higher Education in the directions of making the system more flexible, less regulated, less bureaucratic and, perhaps, more responsive to the needs of our citizens in that universities should be able to adjust more rapidly to changing needs and to use their resources more effectively.  The Governor appointed Jerry Blakemore, from Chicago, to finish out Dr. Kustra's term through January 1999.  Mr. Blakemore has been a member of the board for a number of years and has been very interested in the issues of accessibility, affordability and diversity.  Dr. La Tourette said he thought Mr. Blakemore would be an effective leader.

President La Tourette said he wanted to mention, without going into great detail, that Bob Kustra was a change agent and had brought in Keith Sanders as the executive director to be a further change agent.  What I hope we will see over the next year, Dr. La Tourette said, are a number of changes in the processes that the Illinois Board of Higher Education uses to review new program requests and to deal with program review, streamlining the agenda of the Board of Higher Education and streamlining the whole process involved in responding to changing needs.  Dr. Sanders is very concerned about the future and wants to have a consensus plan prepared by higher education to present to the new governor after the November elections.  The President said he had just received a draft of the comments Dr. Sanders would be giving to the presidents and chancellors at the upcoming July meeting, and it was very clear that he was setting out in new directions to make the system more flexible, more entrepreneurial and more efficient.  President La Tourette said he believed we would see more changes because he thought Bob Kustra had accomplished his mission in an extraordinary way over a relatively short period of time.

University Civil Service Merit Board

Trustee Myles said the University Civil Service Merit Board met in Urbana on April 30.  There were three terminations from the University of Illinois and, as usual, no business from NIU.

Northern Illinois University foundation

Mr. Michael Malone, Vice President for Development and University Relations, gave the board members copies of a proposal for a reorganization of the NIU Foundation modeled after the Board's own organization.  The Foundation was creating active working committees to handle most of its work.  This is a departure from the past where most of the work was handled by the board as a whole.  They will be creating three new committees, including a development committee, a key component of any foundation's role, to recommend policies for gift procurement and acceptance, assist with prospect identification, cultivation and solicitation, donor recognition and review acceptance of gifts.  For example, Mr. Malone said, the Foundation we will no longer be accepting gifts of properties or other major gifts-in-kind, without first going through a stringent review process to be sure the gift is a true benefit to the university.

Mr. Malone said the Foundation intends to hone down its active core membership to between 35 and 50.  It is now about 160, but many of those members have been inactive for a long period of time.  Those members will be allowed to self-select, based on their new lifestyle, for example, or relocation if they choose, a less active role as emeritus members of the NIU Foundation.  We certainly do not want to lose any of our long-time friends, and we want to keep them fully informed of our activities, Mr. Malone said, but we need a group of 35 to 50 very active volunteers to whom we can give meaningful volunteer experiences.

President La Tourette said he would run through these agenda items quickly since many of them had already been discussed at committee meetings.

President La Tourette presented a series of recommendations for faculty and staff salary improvements; general price increases; fire protection increases; funds for library and technology increases; a mandate for Medicare funding; a series of program priorities; and a number of other programmatic activities for upgrading university computer systems and dealing with deferred maintenance.  This budget is similar to the FY99 budget request approved by the Board last year, he said.  We continue to press for additional state funding to make our salaries more competitive and to have market adjustments in those areas that require them so the university can not only attract quality faculty and staff, but also retain them.  The President said the university requested a 5.5% increase — a 3% base increase plus a 2.5% increase to improve salaries.  The university also requested a 3% increase in prices for nonpersonnel items; 5% for fire protection; 10% for library acquisitions and technology; 3% for utility increases; $350,000 for Medicare; an adjustment on sick leave increases; program priorities of $4.6 million; deferred maintenance at $1.5 million; and computer systems at $1.95 million.  These are the priorities the university and the Board have had over the last two or three years, the President said, and we are going to continue to pursue them until we accomplish our objectives.  The President asked Board approval of the Fiscal Year 2000 Budget Guidelines.  Chair Boey said they would defer voting on the guidelines until after Trustee Moser gave his report.

Included in the FY99 capital budget is the $6.7 million for the completion of Phases II and III of the university's storm water management program.  This project has been at the forefront since July 1996, Chair Moser said, when we had a flood, which did over $1 million in damage to the campus.

Finally, the Committee created an award in honor of Michael J. O'Malley, Hoffman Estates Mayor, who has been so supportive of Northern Illinois University and its Hoffman Estates Education Center (HEEC).  As you know, the HEEC opened in 1992 and represents the first suburban satellite educational facility for Northern Illinois University.  Its very existence is the product of a tremendous amount of effort on the part of Hoffman Estates Mayor Michael J. O'Malley.  For years, Mayor O'Malley has been committed to providing affordable access to higher education for the people of Hoffman Estates and the northwest suburbs.

In 1990, Chair Moser continued, Sears Corporation decided to move its headquarters to the suburbs.  Under Mayor O'Malley's leadership, Hoffman Estates made an aggressive bid for the Sears facility, and the rest is history.  Most of you may not know the role he played in creating the partnership between the Village of Hoffman Estates, Sears and the university to create the Hoffman Estates Education Center, Chair Moser said.  The Mayor’s energy and enthusiasm, combined with his relentless negotiating skills, resulted in a donation of almost four acres of prime land on the Sears site to the university for construction of the Hoffman Estates Education Center.  Within two years of its construction, the Center had reached capacity and this fall is expected to turn away as many as 18 classes, almost 400 potential students, due to a lack of space.  Demand for affordable, quality public higher education is rapidly escalating throughout the northwest suburbs.  Throughout, Mayor O'Malley has continued to assist the university in its efforts to expand its Hoffman Estates presence to accommodate additional students.

As you know, the Northern Illinois University Foundation received a 20-acre gift of land along Interstate 90 in April from a developer who plans to build and develop a commercial park.  The 20 acres of land donated to the University Foundation would allow for construction of a 100,000 square foot educational facility and necessary parking, Chair Moser said, if funding is obtained from the state for the buildings.  Such a facility would double NIU's presence in Hoffman Estates and allow us to reach an even greater number of prospective students.  Throughout, Mayor O'Malley has remained proactive and extremely supportive of an expanded presence for Northern Illinois University within Hoffman Estates.

NIU would not have an educational facility in Hoffman Estates were it not for Mayor O'Malley's leadership and support for providing northwest suburban residents with affordable access to public higher education via Northern Illinois University.  He deserves our thanks and our gratitude, Chair Moser said.  As such, after considerable thought, the Legislation, Audit & External Affairs Committee voted unanimously to create the Michael J. O'Malley Award for Promoting Access to Public Higher Education.  This award will be given to individuals who have made a significant and lasting impact in promoting access to public higher education in northern Illinois and will be named in perpetuity the "MICHAEL J. O'MALLEY AWARD FOR PROMOTING ACCESS TO PUBLIC HIGHER EDUCATION."  Chair Moser asked the Board to ratify the Committee's action.  Trustee Siegel so moved, seconded by Trustee Myles.  The motion was approved.

Mayor O'Malley joined Trustee Moser at the podium.  Trustee Moser said it was a fitting tribute to present the first award to Mayor O'Malley because his legacy to this institution is lengthy, invaluable and ongoing.  I believe that this award and its presentation to Mayor O'Malley will be a small way the university and this Board of Trustees can demonstrate our gratitude to someone who has worked so hard to propel Northern Illinois University forward in meeting the high level of demand for affordable, quality higher education within the northwest suburban area.  Trustee Moser then presented Mayor O'Malley with the award along with a copy of the following resolution.

                                                                        R E S O L U T I O N

WHEREAS Michael J. O’Malley has faithfully served the people of Hoffman Estates as Mayor since 1989; and

WHEREAS the Mayor and Village Trustees of Hoffman Estates have consistently recognized the substantial need for affordable public higher education opportunities in the region; and

WHEREAS Mayor O’Malley has worked diligently to promote access to public higher education for the people of Hoffman Estates and the northwest suburbs; and

WHEREAS Mayor O’Malley has led the effort to increase said access through creation of unique partnerships between the private sector and Northern Illinois University; and

WHEREAS Mayor O’Malley’s unswerving support for increased access to public higher education has resulted in substantial private support for expanded facilities in the northwest suburbs; and

WHEREAS the Legislation, Audit and External Affairs Committee of the Northern Illinois University Board of Trustees wishes to officially express its appreciation for the many contributions of Mayor Michael J. O’Malley to Northern Illinois University and its students;

NOW, THEREFORE, BE IT RESOLVED that the Legislation, Audit and External Affairs Committee of the Board of Trustees of Northern Illinois University in formal meeting herein assembled, extends its grateful appreciation to Mayor Michael J. O’Malley for his outstanding commitment and dedication to promoting access to public higher education by establishing in perpetuity the MICHAEL J. O’MALLEY AWARD FOR PROMOTING ACCESS TO PUBLIC HIGHER EDUCATION.

BE IT FURTHER RESOLVED that this RESOLUTION, along with this presentation of the first MICHAEL J. O’MALLEY AWARD FOR PROMOTING ACCESS TO PUBLIC HIGHER EDUCATION, be presented to Mayor O’Malley and a copy of this document be placed in the official files of this Committee as a part of the permanent record of the university and the great state of Illinois and as a lasting tribute to the accomplishments of Mayor Michael J. O’Malley.

Adopted in a regular meeting assembled this 18th day of June, 1998.

______________________________
George A. Moser, Chair
Legislation, Audit and External Affairs Committee
Vice Chair - Board of Trustees of Northern Illinois University

Trustee Moser invited the Mayor to introduce his family.  Mayor O'Malley introduced his wife, Mary Beth; daughters, Mary Beth, Tiffany, Nicole and Michelle; and sons, Thomas, Brendan, Joey, Michael and Danny.  Those are some of my ten children who are with me today, he said.  He also introduced a granddaughter, Katie, and grandson, Danny.

President La Tourette expressed appreciation to the Mayor on his own behalf as well as in behalf of university staff.  You are an inspiration in your vision, not only for the Village of Hoffman Estates, the President said, but for the people and the educational opportunities you have helped us bring to that area.  Without Mayor O'Malley, that center would not be there nor would our opportunity to have a much larger center be there.  We are greatly in debt to you, President La Tourette told Mayor O'Malley, and because we know you have the vision as well as the heart to provide education for our young people in the future.  Again, thank you very much; this is from my heart as an individual, not as a president.  I wanted to recognize someone else who has also worked behind the scenes and has been working behind the scenes a great deal to make this happen.  Trustee George Moser was there right at the beginning too, President La Tourette said.  Long before he was on the Board, Trustee Moser was involved in helping us realize this opportunity in the Village of Hoffman Estates.  He has followed it very carefully and would like to have a campus there.  It is our hope that one of these days we will be able to achieve that, the President said, because I think the growth along that corridor will justify not only the building of 100,000 square feet we are now contemplating, but an even larger facility maybe 15 years from now.  So, there indeed may be an NIU campus at Hoffman Estates one day.  President La Tourette recognized Trustee Moser by presenting him with a framed picture of the Hoffman Estates Education Center like one that was presented to Mayor O'Malley.

Chair Boey continued discussion on the Fiscal Year 2000 Budget Guidelines.  If we didn't get the 3% increase in our FY99 general price increase, Trustee Siegel asked, why would we not ask for the compounded 3% additional in FY00?  That question is for the general price increase as well as utility increases, Trustee Siegel said, because it would seem to me that by not asking for what we should have had in FY99, we should be accumulating and compounding it in FY00 to catch up.  President La Tourette said it was probably somewhat worse than Trustee Siegel had indicated because it had been several years since the university had had either a general price increase or a utility increase.  The President said he would be willing to change this recommendation if the Board felt the university should ask for a larger amount.

Trustee Siegel said he thought we were sending the wrong message to the legislature by asking for less and cutting elsewhere rather than continuing to present our increasing needs.  He suggested that the general price increase, as well as the utility increase, be either compounded or raised to 6%.  Trustee Siegel also had a similar question on the computer system line because last year the university asked for roughly $3 million and received a hundred thousand.  This year the university request is for $1,950 million.  He asked if that should not be $2,950.  Trustee Raymond said $1,950 million was the correct figure.  The matter was discussed in the Finance Committee, and while we would certainly like to get the $2.9 million, Trustee Raymond said, we only received a hundred thousand last year and have not been very successful in these requests.  The thought was that by asking for a little less, we might have a better chance of obtaining what we need.  I am very concerned about that one in particular, Trustee Raymond said, because there is a time-sensitive option to buy equipment that is going to expire if we do not get the funds from the legislature.  It is a tragedy that the legislature has chosen to ignore this request.

Chair Boey suggested the Board take this matter under advisement since it had been thoroughly discussed at the Finance Committee meeting, and if there is a need to change it, it can be done separately.

President La Tourette added that it might be that we are looking at the wrong target here.  The legislature has never seen these figures.  These are the requests the university makes to the Board of Higher Education.  If you really need to make this point, it should be made directly to the legislature. He said the university might develop a Board letter to send along with this request to key people who believe the universities always receive everything they ask for, which is certainly not true.  In reality, the university asked for a lot more than was recommended by the Illinois Board of Higher Education.  This Board of Trustees has been, responsible in holding cost increases down, President La Tourette said, and at the same time trying to state very clearly what we need, but those statements do not always reach the legislature.  Dr. Eddie Williams agreed with the President and said the problem has been taking the university's request to the Board of Higher Education.  One of the things we have decided to do since the numbers were not supported by the IBHE is come back this year with a two-year strategy.  So, we are saying the price has not changed, but it could be funded over two fiscal years.  That is why the number was reduced, Dr. Williams said, but we could still move forward with the project while the funding takes place over the two fiscal years.

Trustee Siegel said he would be prepared to make a motion to modify those items if the Board felt it was appropriate, or, as Chair Boey suggested, approve the item as is and modify it later.  Chair Boey said he felt much more comfortable not making changes too quickly after having gone through a full committee discussion.

President La Tourette said that if the Board was going to come back and look at this again, he would like to have Kathy Swanson give them some advice between now and then on how they might make the proper point to the legislature. Year after year under the Edgar administration, the legislature has said that every time the IBHE has presented a budget, we have given you what you asked for, so why are you saying you have needs that are not being met.  When they see a request from the Illinois Board of Higher Education, they think that it is what the universities asked for and approve it thinking that is all we requested.  Trustee Raymond asked if that had been communicated.  President La Tourette said it has been communicated, but the message is hard to get through.

Trustee Grans said she felt they should not discuss this now.  In fairness to the Committee, she said, we should approve it as it is, possibly with some direction to the Finance Committee and/or to the Legislation Committee to come up with a strategy.  President La Tourette said the university could make a presentation to the Board at the September meeting, indicating an appropriate strategy on this issue to make clear to the legislature what the university's real needs are before they are changed by the IBHE.  Chair Boey agreed, saying he thought that as a rule committee decisions should not be debated in the full Board meetings.

Ms. Swanson said she thinks the universities are making progress in communicating the difference between the requests given to the IBHE and what comes from them as our recommended budget.  This year, for the first time, the ISL forms that every agency, including all universities, must complete for the appropriations committees, included requests for documentation indicating what our original requests were to the Board of Higher Education.  That has occurred since Vice President Williams and Ms. Swanson have been making consistent inquiries about this issue over the last two years.  This would indicate, Ms. Swanson said, that the appropriations leadership, appropriations staff members and leadership of the parties within the caucuses in the General Assembly are becoming aware of this.  Dr. Larson said that both the Faculty Senate and the University Council now have committees with legislative oversight duties.  When the time comes, he said, I am sure we could marshal a significant letter-writing campaign from all constituencies, students, staff, faculty and administration.  I just want the Board to be aware that that option is available for them to try to get the message across.

Chair Boey asked for a motion to approve the Fiscal Year 2000 Guidelines as presented in this meeting.  Trustee Myles so moved, seconded by Trustee Grans.  The motion was approved.

Agenda Item 9.a.(2) – FY99 Salary Increment Allocation Guidelines

This was a recommendation for a 3.2% general merit increment for faculty and staff.  In addition to that, President La Tourette said, we are recommending a market equity adjustment averaging 7% for a designated Civil Service clerical classification group.  There was also a 3% increment for graduate students.  A separate pool was established to make some selected increases in graduate student stipends that are below the level of competition.  Funds are also available for both for faculty and staff promotions.  The President emphasized that the 7% designated for the Civil Service clerical classifications was an average and did not mean that everyone would receive 7%.  The 3.2% for the clerical staff will be separated and be determined on merit.  There is another pool of money which amounts to 7% of the base that will be allocated on a fixed dollar amount, depending on where the classification stands relative to the target.  This is basically to try to raise these classifications to an average comparable to the same classifications in code agencies of the State, Dr. La Tourette said.  That means there will be differential amounts by classification in order to move everyone up in a way that will move our average to where we are competitive.  We are moving everyone up proportionately so that the average will move up.  Chair Boey asked for a motion to approve this set of increment guidelines.  Trustee Raymond so moved, seconded by Trustee Myles.  The motion was approved.

Agenda Item 9.a.(3) – FY99 Tuition Recommendation

President La Tourette said he wanted to take this occasion to declare a victory in the budget situation that evolved from a drop in enrollment.  The loss of approximately 2,000 students over a short period of time resulted in a shortfall of about $6.5 million in tuition revenues coming into the university.  In looking at that problem, we decided to address it in two different ways.  One was to offer an attractive retirement plan to faculty and staff, and the other was to make all possible efforts to increase our enrollment again.  After the decline in the number of seniors in high school from 1987 to 1995, the President said, we are seeing an increase again.  That drop in northern Illinois was from 102,000 high school seniors in 1987 down to about 85,000 in 1995.  High school seniors have been creeping up and will continue to do so for a number of years into the first decade of the 21st Century.  The President estimated that the increase between now and around the year 2008 would be about 12%.  The university has cut its budget problem from $6.5 million down to $3.2 million as a result of the retirement plan and enrollment increases.  That $3.2 million is already covered by the recision we took a year ago, President La Tourette said, and now we are going to rebate the recision planned for FY99.  Dr. Williams and the President have very carefully looked at the budget, and the university will be rebating 75% of that last recision, at the division level.  That is a rebate of $1.35 million on the basis of the original cut at $1.8 million.  Dr. La Tourette said there was some unevenness in staffing that would have to be addressed.  To rebate the $1.35 million, President La Tourette said, the university was establishing the following priorities in this order:  (1) program areas that are under enrollment pressure, because if enrollment can be increased, the university will have more dollars; (2) efforts to expand recruitment and retention.  If we can recruit more students or retain more students, that will improve the budget situation; (3) general undergraduate education improvement; (4) particular areas where the unevenness of the impact of retirements has caused personnel problems; and (5) new initiatives.  NIU, the President said, is in a very good budget situation compared to other universities across the Midwest that had very large enrollment declines and cut their budgets very quickly in a very unproductive way.  NIU has managed to work this out over a three-year period of time, he said, and it is time now to return to the campus at least a substantial part of the most recent recision.  The funds will be returned starting in July on a priority basis.

The tuition recommendation is to correct a problem with out-of-state tuition, President La Tourette said.  Years ago, the in-state tuition was about 33% of the total cost of instruction — 33% paid by the student, two-thirds by the State.  Unfortunately, the State proportion has dropped off steadily, so that now on the average, it is estimated that students at the undergraduate level are paying 43% of the cost of instruction.  Because years ago, the State established a 3:1 ratio for out-of-state students, they charged three times what in-state students were charged, assuming that would cover the cost of instruction.  Now, because of the shift in the in-state burden on students, the out-of-state students are paying 130% of the cost of instruction at the 3:1 ratio.  This adjustment allows us to bring that in line, the President said, and will allow us to be a little more competitive in attracting students across the state borders.  He asked approval to drop the out-of-state tuition rate for next year from $9,000 to $7,500 or a 2.5:1 ratio with the in-state rate.  Chair Boey asked for a motion to approve the new lower out-of-state tuition rate.  Trustee Myles so moved, seconded by Trustee Raymond.  The motion was approved.

Agenda Item 9.a.(4) – Fiscal Year 2000 Appropriated Capital Budget

The capital appropriation budget for the Fiscal Year 2000 was reviewed by the Finance, Facilities and Operations Committee.  The top four priorities listed on page 19 have been on the list for years now, the President said, and they have moved up now because Altgeld Hall and the water retention project have been funded.  Chair Boey asked for a motion to approve the Fiscal Year 2000 Appropriated Capital Budget.  Trustee Raymond so moved, seconded by Trustee Grans.  The motion was approved.

Agenda Item 9.a.(5) – FY99 Nonappropriated Capital Budget

The nonappropriated capital budget is generated from university resources.  Basically, the President said, this is the budget for the bond revenue/auxiliary enterprise area, and, again, the projects listed are high priority problems.  This item was discussed in detail by the Finance and Facilities Committee.  Chair Boey asked for a motion to approve the FY99 nonappropriated Capital Budget.  Trustee Siegel so moved, seconded by Trustee Raymond.  The motion was carried.

Agenda Item 9.a.(6) – FY99 NIU Foundation Professional Services Contract

The President said this is a mechanism by which a relationship can be retained between the university and a university-related organization. The university provides some support to the Foundation and they provide services back to the university.  In fact, he said, the value of the services coming back from the Foundation probably far exceed the value of the contract because they are the fund raising arm and all funds received by the Foundation are for the benefit of the university.  He then asked for Board approval of this contract.  Trustee Siegel made a motion to approve the FY99 NIU Foundation Professional Services Contract, seconded by Trustee Grans.  The motion was approved.

Agenda Item 9.a.(7) – Depository Account

The University would like to establish a depository account with the TCF National Bank that would allow the university to administer the NIU OneCard I.D. program. The President asked Board approval for the depository account to be established.  Trustee Myles so moved, seconded by Trustee Siegel.  The motion was approved.

Agenda Item 9.a.(8) – Printing Services Copier and Controller System
Agenda Item 9.a.(9) – Miscellaneous Commodities, Parts and Services

President La Tourette took these items together because they are standard contracts the university enters into every year.  Agenda Item 9.a.(8) is to provide equipment for printing copier services. Agenda Item 9.a.(9) consists of two contracts to provide supplies for building maintenance, heating plant, janitorial services and other shops.  Chair Boey called for a motion to approve the items.  Trustee Siegel made a motion to approve the two as separate motions, seconded by Trustee Raymond.  The motions were approved.

Agenda Item 9.a.(10) – Commonwealth Edison Easement Modification

The Finance, Facilities and Operations Committee sent this recommendation to the Board to grant an easement to Commonwealth Edison to install the lines that will provide power to the new facility for IASBO, with whom the university has a contract.  Granting the easement will allow them to put the utilities underground, making the property much more attractive.  Chair Boey asked for a motion to approve the ComEd easement modification.  Trustee Grans so moved, seconded by Trustee Raymond.  The motion was approved.

Agenda Item 9.a.(11) – Illinois Association of School Business Officials (IASBO) Lease-Purchase Agreement

As plans and specifications for the new IASBO building progressed, an opportunity emerged to enhance the building also provide the university with up to 3,154 square feet of additional space.  This additional space consists of 2,844 square feet at the lower level which can later be finished to accommodate emerging program and university space requirements, plus an additional 310 square feet of exclusive NIU computer lab space on the first floor.  President La Tourette stated that this would allow more lease space for the university's public administration program to use and a larger facility when the building was paid off and returned to the university by IASBO.  Chair Boey asked for a motion to approve this adjustment in the university's lease-purchase agreement with IASBO.  Trustee Grans so moved, seconded by Trustee Myles.  The motion was approved.

Agenda Item 9.a.(12) – Request for New Degree Programs

The Academic Affairs, Student Affairs and Personnel Committee, endorsed the establishment of a Master's of Physical Therapy (M.P.T.) degree and the establishment of a B.S. degree in Health Sciences.  This reflects the changing need for education for professionals in the physical therapy area, President La Tourette explained, and will provide the kind of master's program that will lead to appropriate certification and the counterpart undergraduate program that will support it.  Chair Boey asked for a motion to approve the new degrees.  Trustee Siegel so moved, seconded by Trustee Raymond.  The motion was approved.

Agenda Item 9.a.(13) – Request to Delete Existing Program and Specialization

This was a request to delete the M.A. in Theatre Arts as a result of a very careful review of this area, its needs and student demand.  The M.F.A., established a number of years ago, Dr. La Tourette said, has priority in terms of student interest, enrollment demand and the department's attention.  The university would also like to request the deletion of the Specialization in Art Therapy within the M.A. in Art, which is no longer viable in terms of student interest and university priorities.  Chair Boey asked for a motion to approve the deletion of both the M.A. in Theatre Arts and Specialization in Art Therapy within the M.A. in Art.  Trustee Siegel so moved, seconded by Trustee Raymond.  The motion was approved.

President La Tourette said that Northern Illinois University has taken program review very seriously for over 25 years.  Though it is sometimes painful to delete programs, sometimes deletions are appropriate so that resources can be moved to program areas that are more viable or have a higher priority.  The President recognized Dr. Lynne Waldeland and the fine work done by the Provost's staff in this area.  I would like to recognize the Academic Planning Council in particular, the President said, because those are the faculty and staff who spend a great deal of time examining our programs and making sure that they are up to date and viable and that they are meeting student needs.

Grants and contracts in FY98 to date total just over $24 million.  President La Tourette said the university seemed to be experiencing approximately the same level of outside grants and contracts this year as last year.  There are a lot of the questions about outside funding that relate to the federal government and now, even more so, to the tobacco bill.  But there would have been some additional federal funding, the President said, especially for medical research and some related scientific research if that bill had been approved by the Senate.

Agenda Item 9.c.(2) – Employee Recognition Programs for Professional Excellence

The university has programs that recognize Presidential Teaching Professors and Presidential Research Professors and a program recognizing Excellence in Undergraduate Teaching.  President La Tourette introduced Dr. Carroll Moody asking him to say a few words about these awards and to introduce the people who could be present at the meeting.  President La Tourette reminded the Board that when someone is designated a teaching professor, usually that person is involved in a good deal of research.  And as we turn to our Presidential Research Professors, he said, we usually find very good teachers.  So, what we are really recognizing are some special or unique features of our faculty in both areas.  Faculty that fall into these two categories are people who carry their weight, are involved with students, are involved with their research, and are often involved with public service.

Dr. Moody said they were very pleased to have the recipients of the 1998 Presidential Teaching Professors, the Presidential Research Professors and the recipients of the Excellence in Undergraduate Teaching Award at a luncheon.  Dr. Moody introduced two recipients of the Presidential Teaching Professorships:  Professor Kuo-huang Han from the School of Music and William A. Oleckno from the School of Allied Health Professions.  Unable to attend the meeting was C. Daniel Dillman from the Department of Geography, who very appropriately as a Teaching Professor, Dr. Moody said, was teaching a class.

Dr. Moody went on to introduce the Presidential Research Professors:  Professor Theodore Kisiel from the Department of Philosophy and Professor Lee Barnes Peck from the School of Art.  Those who could not be present were David Hedin, a professor in the Department of Physics, who was attending a professional conference, and Daniel Gebo from the Department of Anthropology, who was in the Philippines doing research.

Dr. Moody said that a couple of the 1998 Excellence in Undergraduate Teaching Award recipients were able to attend the luncheon but none were able to attend the meeting because they were carrying out some of their professional responsibilities.  The award recipients were David S. Ballantine, Department of Chemistry and Biochemistry, Linda M. Johnson, Department of Accountancy, and Jay A. Stravers, Department of Geology.

President La Tourette asked Andy Small, President of the Operating Staff Council, to introduce the 1998 Operating Staff Outstanding Service Award Recipients.  I am very pleased and honored to talk about the staff at any time, Mr. Small said, and this is a particularly good time for us to talk about the staff in recognizing and honoring these Outstanding Service Award recipients.  Mr. Small went on to give a brief description of the four recipients, who were unable to attend the meeting.  The first recipient was Jim Fluckey, who has worked for Northern Illinois University for 30 years as a Data Processing Analyst in the Administrative Information Services area.  Jim was involved in installing the first mainframe computer system at Northern and has worked on every mainframe computer installation project since that time.  The second recipient, Janice Eisele, is our first foreign winner, Mr. Small said, in that she is our first recipient who is not on the campus proper.  She is from the Rockford Education Center.  Janice took on responsibilities for catering arrangements for external clients, when necessary started work at six thirty and when necessary, stayed until nine o'clock at night.  Everything she does, her supervisor says, she does solely to make NIU look good.  Currently, Mr. Small said, Janice is making NIU look good and at the Rockford Center working hard.  The third recipient, Mary Anne Erickson, works in the Ombudsman's Office.  She has worked at Northern for 14 years, has trained five different ombudsmen in that time.  Our fourth recipient, Harlan Walley, is the laboratory animal caretaker in the Biology Department.  Harlan is also a 30-year employee at Northern.  Harlan is a well-recognized authority on bats, snakes, lizards and Illinois fresh water flora and fauna.  He has taught anthropology classes, been asked to preserve museum specimens, and helps art students studying medical art illustration.

Mr. Small said the operating staff is a group of 1,725 employees at NIU.  The recognition program has been in place for 15 years.  This year, he said, we have honored our 41st through 45th recipients of the Outstanding Service Award, a program of which we are very proud.

At this time, Mr. Small continued, I would also like to take a moment to recognize the Board of Trustees for the staff.  On June 11, we had our first staff appreciation day in which we recognized people who make a difference for the staff, those staff employees who did something that was above and beyond the call of duty and those people in the administration who helped us out this year.  Certainly, he said, it is appropriate to honor the Board of Trustees for their help in what they have done for the staff, not just this year, but also in the past.  Mr. Small said the staff truly appreciated the Board’s help in bringing about a marked difference at the university.  The following certificate was distributed to each member of the Board of Trustees from the Northern Illinois University Operating Staff council.

                                               Northern Illinois University Operating Staff Council

The NIU Operating Staff wish to certify that [Board Member’s Name], in recognition for help and dedication shown to the Operating Staff at Northern Illinois University, is hereby named a friend of the staff.  We appreciate everything the Board of Trustees does for us and look forward to working with you in the future.

The four people were present at the meeting and were recognized:  Tsui-Yee Dorothy Chow, a Counselor in the CHANCE Program; Kay Lutz, a Senior Assistant director for the Office of Admissions; Steven Pace, Associate Director of Budget and Planning; and Robert Snow, Director of Budgets and Records for the College of Law.

President La Tourette expressed his appreciation and gratitude to all the faculty and staff who do such a great job and said he was very pleased that some of them could be present to receive their recognition.

Chair Boey stated that the Board was being asked to approve the repeal of current higher education procurement rules and then approve the adoption of the Emergency Higher Education Procurement Rules to replace them.  He asked for a motion to do so.  Trustee Myles so moved, seconded by Trustee Grans.  The motion was approved.

Agenda Item 10.b. – Executive Session Minutes Release

Executive Session Minutes from Executive Sessions of the Board of Trustees as well as the Finance, Facilities and Operations Committee were reviewed for release.  Trustee Siegel made a motion to release these minutes as proposed, seconded by Trustee Myles.  The motion was approved.

Chair Boey said that Steve Kovacs had been a great Student Trustee, participated in all the important issues and articulated well.  He then asked for a motion to approve the following Resolution honoring Student Trustee Steven Kovacs and have it included in the record.

                                                            R E S O L U T I O N

WHEREAS Steven D. Kovacs was selected by his constituents at Northern Illinois University to represent their interests and has faithfully served the Board of Trustees of Northern Illinois University as its third Student Trustee; and

WHEREAS in said position, Mr. Kovacs capably discharged those duties and responsibilities while at the same time keeping in mind the interests of all of the people of the State of Illinois in addition to the well-being of Northern Illinois University; and

WHEREAS Mr. Kovacs has demonstrated devotion to, cooperation with and support for  the Board, Northern Illinois University, and the faculty, staff, and student personnel of same;  and

WHEREAS the Board of Trustees and Northern Illinois University have received the benefit of his helpful insights which have been of special worth; and

WHEREAS the Board of Trustees wishes to officially express its appreciation for the many far-reaching contributions by Mr. Kovacs to all of the above-mentioned interests of this Board,

NOW THEREFORE BE IT RESOLVED that  the Board of Trustees of Northern Illinois University in formal meeting herein assembled, extends its grateful appreciation to Mr. Steven D. Kovacs for his outstanding and loyal service.

BE IT FURTHER RESOLVED that this RESOLUTION be presented to Mr. Kovacs and a copy of this document be placed in the official files of this Board as a part of the permanent record of the great State of Illinois and as a lasting tribute to the performance and accomplishments of Mr. Steven Kovacs.

Adopted in a regular meeting assembled this 18th day of June, 1998.

 Board of Trustees of
 Northern Illinois University
_____________________________________ (SEAL)
 Chair
Attest:  _______________________________
 Secretary

Agenda Item 12.a. – Oath of Office Administered to Student Trustee

Chair Boey asked Board Secretary Jim Myles to administer the oath of office to the new Student Trustee, who will assume his seat on the Board of Trustees as of July 1.

As a Trustee at Northern Illinois University, and prior to this, as a Trustee with the Board of Regents, Trustee Myles said, I want you to know that you will be joining the ranks of some very dedicated student trustees.  I can honestly say that all of them have been very great people.  Board Secretary Myles then administered the following oath to Joseph Sosnowski, the new Student Trustee.

 I, Joseph Sosnowski, do solemnly swear that I will support the Constitution of the United States, the Constitution of the State of Illinois and the laws thereof.  And I will faithfully discharge the duties of Trustee for the Board of Trustees of Northern Illinois University to the best of my abilities.

Well, I do have some very big shoes to fill, Mr. Sosnowski observed.  The past three student trustees I have known fairly well and they have lived up to the standards I think a student trustee embodies, and they have done a very good job.  I can only hope that I follow in that tradition.  And hopefully I have the experience and the knowledge to become a very capable member of the Board.  It is a great honor to be before you this afternoon, and it is a great honor to take a seat with people who, around the state, are regarded as the very best Board of Trustees the state of Illinois has.  It is also a great honor to work under Northern Illinois University's system of shared governance, a system where students, faculty and administrators can come together and really discuss the problems and come up with very feasible solutions together.  And I think by working together, Mr. Sosnowski said, we truly have made Northern one of the best universities in the state.

During my time as a Student Trustee, I hope to see solid plans laid for a possible multipurpose arena that would allow students to come and graduate together in a very nice convocation center, a place that would provide our athletic teams with a nice place to both play and practice.  I hope to work together with everyone to continually lobby for more capital funds so we can continue to improve our campus, keep it up to date and renovated.  Finally, I hope to continue to work together with everyone on receiving more regularly appropriated funds so we can provide the very best of academic programs in the state and pay the salaries our professors deserve.  I know everybody here works on that very hard, and I look forward to working with each and every one of you.  There is one thing I definitely do know we will accomplish this year, Mr. Sosnowski summarized, and that is working together again to make NIU a university that we are all proud of, and I look forward to working with each and every one of you.

The Chair then asked for a motion to adjourn the meeting.  Trustee Myles so moved, seconded by Trustee Siegel.  The motion was approved.

The meeting was adjourned at approximately 3:33 p.m.
 

Respectfully submitted,

Sharon M. Mimms
Recording Secretary