Minutes of the
Board of Trustees of
Northern Illinois University
September 9, 1999

Chair Moser then introduced the Board’s new Trustees. Mrs. Barbara Vella, of Rockford, was awarded her bachelor of arts degree from Edgewood College and is an alumni of NIU with both a master of science in education degree and a Juris Doctor degree. Mrs. Vella has previously served as vocational special needs coordinator for the Rockford Public Schools. She is a practicing attorney, certified mediator, and active civic leader in the Rockford area, where she has served on the board of directors for the Rockford Public Library, the Crusader Clinic Foundation and various other organizations. Mr. Jeremiah Joyce, of Chicago, also has a remarkable history of public service. He has served as an assistant State’s Attorney with the Cook County State’s Attorney’s office and has served as an adjunct member of the faculty of the John Marshall Law School. Mr. Joyce served on the Chicago City Council from 1974 to 1978. He represented Chicago as a State Senator for District 14 from 1979 to 1993, during which time he served on the Senate Appropriations Committee and chaired the Senate Higher Education Committee. Mr. Joyce has a bachelor of arts degree in political science from NIU, a master of science degree from Chicago State University and a Juris Doctor degree from DePaul University. Mr. Joyce is currently an attorney at law-and-partner with World Duty Free Stores. Mr. Myron Siegel from North Suburban Bannockburn, is beginning his second term as Trustee. Mr. Siegel earned his bachelor of science degree in finance and accounting from NIU as well as a master of business administration degree. He received his Juris Doctor degree from John Marshall School of Law in Chicago. Mr. Siegel was appointed as a member of the Illinois Board of Regents by Governor Jim Edgar and as a charter trustee of this Board, where he served as its first chair. Mr. Siegel served as a member of the panel of U.S. Trustees and Bankruptcy between 1981 and 1985. He is a practicing attorney specializing in mergers and acquisitions and employment matters. Mr. Gary Skoien, of Inverness, earned the bachelor of arts degree in political science from Colgate University and a master of public policy degree from the University of Michigan. Mr. Skoien served as assistant for health and welfare for Governor James Thompson between 1981 and 1983. Thereafter, Mr. Skoien served for 8 years as executive director of the Capital Development Board. Mr. Skoien has served in numerous political campaign and fund-raising activities. Mr. Skoien is now Chairman of the Board and CEO of Horizon Group Properties of Chicago as well as vice president and chief operating officer of Chicago-based Prime Group Inc.

It certainly is a great pleasure to re-welcome Myron Siegel and the three new Board members who are joining us today, President La Tourette said. I think the Board will be significantly strengthened as we move into the 21st Century. I am very impressed by the backgrounds and knowledge of our new Board members and their commitment to the university, so I am sure the record that this Board began to establish in 1996 will continue on into the 21st Century and will serve the university extremely well. They are very much aware of the fact that we are the university of northern Illinois. We attract a very large number of students from this region, and our primary goal is to offer a quality education at an affordable price. Of course, the President said, we also have many outreach efforts, which I am sure will also continue well into the 21st Century. There are many challenges the university faces in serving its role as a public university in this region and, although we are regionally located, Many of our programs have national and international reputations. We want to bring the kind of quality higher education to this region, which, if it were a separate state, would certainly recognize this university as its primary university. 

Congratulations to our new members, welcome, and my best wishes for you in your service with the university. I look forward to working with them, not only for a few months, but on into the future as we bring in a new president. The new president will need your support, President La Tourette told the Board, and you will need to work with that new president to continue to make this an outstanding university. Chair Moser said he echoed the President’s sentiments and thoughtful remarks.

The significance of our ceremony today, Chair Moser said, is echoed by the presence of Illinois Supreme Court Justice Louis Rathje, who has graciously consented to administer the oaths of office. Judge Rathje has served as an appellate judge and a circuit judge in DuPage County. Additionally, he practiced law for 28 years before joining the bench. Judge Rathje is a graduate of Wheaton College and Northwestern University School of Law. The Second District, served today by Judge Rathje, encompasses a large portion of the northern Illinois region served by this university. We are honored to have him join us here today. The Chair thanked Justice Rathje for assisting in the process of initiating NIU’s new trustees and asked him to administer the oath of office to them. 

Judge Rathje made the following remarks:

Mr. Chairman and Mr. President, first of all, thank you very much for inviting me here today. I would like to say just a few words before I swear in the trustees. I must say I was very impressed with the credentials of the trustees that you presented here today. I think you have one of the best groups that I have ever seen assembled as trustees of any university. I would like to thank Myron Siegel for inviting me here today. It is very important in a situation like this that one honors the individuals who are here today, and I appreciate his extension of the invitation for me to participate this morning. Education is the lifeblood of any civilization. It provides a means by which individuals can better themselves and their families and society. And, I understand the importance of education. I have had four sisters, all in education; four nieces, who were also in education; and, if not for the practice of law, I would have been in education also. But education does not just appear. First of all, it takes faith in education. Secondly, you have to develop strong institutions of higher learning, such as Northern Illinois University. And, third, you have to house those and fill them with people who are strong and far-sighted. And that is what we have here today. Leadership, in part, is the result of individuals who give up their time and effort to help this fine institution grow and prosper. This institution provides an opportunity for individuals to prosper and better themselves. Too often, the generosity of these men and women as trustees of the university is overlooked. It is only at occasions like this that we can recognize their tireless efforts to raise the educational levels of our society. These trustees, together with others, have watched this institution blossom in the cornfields of Northern Illinois. These trustees are the captains of this ship of higher learning, insuring that the resources and efforts of all associated with this institution will maintain and enhance the bastion of knowledge and learning. On behalf of the State of Illinois, the judiciary, the public, the family, faculty, students and myself, I want to thank you Trustees for your efforts on behalf of all of us in keeping the torch of knowledge burning brightly. Thank you.

Judge Rathje then asked the new Trustees to come forward to take the oath of office.

"I (Trustee) do solemnly swear that I will support the Constitution of the United States, that I will support the Constitution of the State of Illinois and the laws thereof, and that I will faithfully discharge the duties of the office of Trustee for the Board of Trustees of Northern Illinois University to the best of my ability."

I would like to say thank you this morning to all the people who participated in my nomination, Trustee Vella said. I am really very grateful and very honored to be a part of this Board of Trustees. I would also like to thank my family, some of whom are here today. They are my biggest cheerleaders, particularly my husband. He has always been very supportive of all the things that I have done, and I am very grateful for that. And, I want to thank the NIU staff. In August, President La Tourette and the staff conducted an orientation for me. I have already attended a couple of committee meetings, and feel that I have been very well briefed on what is going on. I appreciate that, and have the confidence in them that they are going to keep us informed on the issues that need to be addressed by the Board of Trustees. I received two degrees from Northern Illinois University. I had wonderful professors — never had a bad experience, never had a bad class. I was always very grateful for the education that I received here, and I really believe they taught me how to think. The mission of the university is to provide an atmosphere where people can learn and grow, and I am really very honored because I can be a part of that. I can help, as a member of the Board and with the staff, to create an atmosphere where people can learn and grow. We can do this for students who will be going into the 21st Century. I was born in 1944, she said, and it is really thrilling to me to know that I will be involved in decision-making for this university in the 21st Century. I thank you all.

About seven years or so ago, Trustee Joyce said, I resigned from the Illinois Senate. All the reporters wanted to know why I did that. In explaining it, I said that I was just tired, after 18 years, of making speeches and all that. And I heard one of the reporters say to another in sort of a staged whisper, "Not as tired as we are listening to him!" So, I have kind of been guided by that for the last seven years. But, I would like to, on behalf of the people of the part of the state that I come from — the parents and the students who attend Northern — thank David Raymond and Susan Grans and James Myles for the service they have provided to this university and to those people. Thank you.

I want to recognize the friends and family who have joined me here today, Trustee Siegel said. First, my wife, Ellyn; Don and Jolene Scriven, who have the unfortunate lot in life of being cast as parents to me; my in-laws, Johnnie and Carol Green, who drove all the way from the Quad Cities to be here today; and my friends, Sue Hutchinson and John Felinski.

It is an honor for me to be sworn in for a new term on this Board, Trustee Siegel said. I am especially grateful that my good friend, Supreme Court Justice Louis Rathje was able to swear us in today. I thought it was appropriate to have a Supreme Court justice for a supreme university, and I am glad that Louis will be representing this district for the next ten years. I also want to thank my good friend, Jim Myles, with whom I served on the Board of Regents and the Board of Trustees. Jim was a tireless proponent for NIU. Over the years, Jim and I have become good friends, and I know that our friendship will continue. Jim, I wish you and Hennie much luck and success. I also want to personally thank Sue Grans and David Raymond for their hard work and friendship while on the Board. We tackled many difficult issues these past few years, and I am glad we were able to serve together.

Life cycles always amaze me, Trustee Siegel went on to say. When I was first appointed to this Board, I mentioned that I had served in every position at NIU but administration. In fact, many years ago, I came across an old contract that was signed for the university by some provost named La Tourette. But, I will get back to that in a minute. When this Board was born, I only knew Jim Myles and Bob Boey. Since then, I have had the privilege of serving not only with them, Sue Grans and Dave Raymond, but with two other exceptional people, George Moser and Manny Sanchez. If you look around at the other state boards, you will know just how fortunate we at NIU are. With the new appointments, the Governor has blessed us again with some excellent Trustees. I already knew Gary Skoien and have kept up with Gary since he was originally appointed last year. I have known Barb Vella since early this summer, months before she was officially appointed to the Board. And Jeremiah Joyce is where I come back to my story about life cycles, for it was in the fall of 1978 that I first met Jerry Joyce. Jerry was one of my law school professors at John Marshall Law School. He was a tough teacher, but always available to his students. On several occasions, I visited him at his office at City Hall and, shortly after that, he successfully ran for the Illinois Senate. So, it seems that my life cycles are back again. Some of the same people are popping up in my life, many years later, year after year. In addition, my best friend, John Felinski is an NIU alum, and Don and Jolene Scriven are retired NIU faculty. Don was my former boss at NIU back in the mid-970s. As I analyzed all this one evening, I realized that all these events had a few common strands. They all had some nexus to higher education, and they all were related in some way to NIU. You see, Jerry is an NIU alum too. So, it seems no matter where I go, and no matter what I do, NIU keeps popping up in my life cycle. I for one am darned glad that it does, and I hope to be a part of NIU’s future. This Board has come a long way in its almost four years, but the issues remain the same. We have made tremendous progress, but our future battles continue to be in Springfield. With our new Board members, I am hopeful that we can push an NIU agenda. I thank each of you for joining us today, and I look forward to serving on this Board again. Thank you.

I am delighted, honored and humbled to be here, Mr. Skoien said. I was appointed last year to the Board and, unfortunately, when my nomination, which was one of 108 statewide, went to the Illinois State Senate, the whole list of 108 individuals for various boards, commissions and institutions throughout the state of Illinois was rejected, so I was removed from the Board. So, today, I am again taking the oath of office. I was trying to think of an appropriate story, and all that came to mind was the great quote of Yogi Berra, "It is like déjà vu all over again." As I said when I was sworn in last September, the first thing in my life that was important in both my personal and career success and my enjoyment of life in general was my family — the good support and nurturing of the family. My wife, Enny, is here today to support me. The second and almost equally important thing that I had in my life was a very excellent education, from public grade schools in Palatine, high school in Palatine and then the university experiences that were mentioned. And I appreciate that education and what it has done for me and for my enjoyment of life. I am absolutely honored and delighted to be part of this organization and to be able to help to the extent I am able. As the justice said in his remarks, this is a first-rate Board. When I was on the Board for a meeting last year, John La Tourette was still, as far as we all knew, going to be the President. Now this Board has a very big responsibility in finding someone of his caliber and quality and someone who can do the sorts of things that John has been able to do for this university, and I look forward to that responsibility also. Thank you very much.

Trustee Skoien, Chair Moser commented, I just want you to know that we have always embraced you. Even though your nomination was not confirmed last year, we always considered you a part of this Board. Thanks to all of the trustees, he said, and I would like to thank all of the guests who came to the ceremony today. The meeting was recessed at 9:45 a.m.

A number of historic events are occurring today, the Chair said, and the next is a fitting recognition of two retired members of the Board of Trustees who are with us today, Mr. Jim Myles and Ms. Sue Grans. I would like to summarize the excellent services these individuals have provided the state of Illinois. Sue Grans was appointed by Governor Jim Edgar in 1995 as a charter trustee for this Board. She served as an elected officer of the Board as secretary and as a member of the Board’s Executive Committee. Sue served as vice chair and chair of the Board’s Academic Affairs, Student Affairs and Personnel Committee. Sue also served as a valued member of the Board’s Finance, Facilities, and Operations Committee. Thank you, Sue for your highly valued service. Jim Myles began his service to NIU in 1991 when he was appointed as a regent to serve on the Illinois Board of Regents. Jim served as chairman of the Board of Regents and oversaw the transition of Northern Illinois University, Illinois State University and Sangamon State University to the restructured organization that we have today, with each university having its own board of trustees. Jim was also appointed by Governor Edgar to serve as a charter trustee of the NIU Board of Trustees in 1995. Since then, Jim has served the Board in the elected offices of secretary, vice chair and Board liaison to the University Civil Service Merit Board. He also served as chair and vice chair of the Board’s Academic Affairs, Student Affairs, and Personnel Committee. Jim, your service has certainly left a positive and constructive mark on the university, Chair Moser said, and we appreciate your help very much. 

        WHEREAS, Public Act 89-4 created a body politic and corporate known as the Board of Trustees of Northern Illinois University to operate, manage, control and maintain Northern Illinois University in accordance with the rights, powers and duties vested by law in such Board; and
        WHEREAS, in 1995 Governor Jim Edgar appointed seven voting Trustees by and with the advice and consent of the Senate to serve as a Board without compensation in the exercise of enumerated and implied powers and duties for the best interests of Northern Illinois University and the Great State of Illinois; and
        WHEREAS, it is fitting and appropriate to give special notice and grateful recognition to three retiring Trustees whose regular terms expired on the third Monday in January 1999, to wit: SUSAN E. GRANS
JAMES W. MYLES
DAVID W. RAYMOND

        WHEREAS, said individual Trustees have 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 the helpful insights of said individual Trustees 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 these individual Trustees to all of-the above-mentioned interests of this Board.
        NOW, THEREFORE, LET IT BE RESOLVED that the Board of Trustees of Northern Illinois University, in formal meeting herein assembled, extends its grateful appreciation to and celebration of these individual Trustees for their outstanding and loyal service by bestowing upon each of these individuals the honorary title of Trustee Emeritus.
        BE IT FURTHER RESOLVED that this RESOLUTION be presented to Susan E. Grans, James W. Myles and David W. Raymond 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 these individual Trustees.
        Adopted in a regular meeting assembled this 9th day of September 1999.
 

BOARD OF TRUSTEES OF
NORTHERN ILLINOIS UNIVERSITY 

  George A. Moser, Chair 
Board of Trustees

Attest:  Manuel Sanchez
Secretary

The Chair presented Trustee Emeritus James Myles and Trustee Emeritus Susan Grans with personalized copies of the resolution. He also, presented a special award to each of them, which read as follows:

Member of the founding Board of Trustees who has served faithfully and with distinction to establish a

strong NIU Board.

I had the good fortune to be Chair of the Board when Sue Grans, Jim Myles and David Raymond served as Trustees, Trustee Boey said. I am sorry that David is not here, but I am glad that Sue and Jim were able to be with us. I want to thank you both for all you have done, for your commitment, your dedication and your unwavering support to the Board. As good as your replacements are today, the Board will miss you. But you can walk away knowing that somewhere down the road part of the legacy here belongs to you. My very best wishes, Trustee Boey said, and I will miss you.

It really has been my pleasure to be a part of the charter organization here at NIU for the Board of Trustees, Sue Grans said, but personally, I am very happy to have been involved in three areas, which I will touch on briefly. First is the formation of a well-designed infrastructure for the Board governance. Second are the building and structural improvements on the campus that I have seen really begin to unfold in the last several years. Mainly, I am very happy to have been involved in the renovation of the Stevenson residence halls and all the decisions making that possible. The construction of the new childcare center has begun, and now NIU Naperville is about to kick into gear. And third, I am very happy to be part of the encouragement of the open communications and strategic thinking that we achieved through the Academic Affairs, Student Affairs and Personnel Committee by bringing faculty, staff and students together with the Board. I believe we really had a synergy established that I hope carries forward, she said.

Finally, I am a liberal arts major, and it scares me to see so many attorneys at this table, Trustee Emeritus Grans said. I really hope the analytical and legal components that all of you bring to the Board are also tempered with a reality check and a practical side of the entire process of finances and building projects that I hope, as the liberal arts component of the group, I have been able to transcend and look at from a different point of view. It has been fun being the liberal arts part of the group, and I know you attorneys will do a fine job, and there will be those of us in the cheering sections making sure that you do. I am a Rockford native, and I would just like to make sure, as the politics and the processes of the university go forward, that you do not forget Rockford and that it remains a very vital part of the entire NIU campus. We have a strong alumni association, a great group of people in the Rockford area that come down to DeKalb, work in Hoffman Estates and are probably commuting to Naperville every day, so do not forget us in Rockford. I really believe in the statement that has been used a lot in your public relations, Ms. Grans said, that is "NIU Works," and I know that it will. Thank you.

We are going to try and keep the attorneys under control, Chair Moser said. Regarding your comment on Rockford, Trustee Barbara Vella is from Rockford, so I am sure you will be very well represented. Your service has been invaluable to the Board, Sue. We really appreciate it, he said, and it has been a pleasure working with you. Thank you very much. The Chair recognized Trustee Emeritus Myles.

Lots of luck, George, with your attorneys. When I was on the Board of Regents as the chair, Trustee Myles said, I think we had about three or four lawyers, and we had some sessions where everybody was disagreeing; but we also had some very good times. As I think about my life and my experiences over the years, I have been blessed to be able to serve people. God has blessed me. I received a letter from Eddie Williams that was really touching. He reminded me of things I did that I really did not realize I had done. I was there for Northern when there were troubled times for the Board of Regents, when they were giving poor John a hard time and wondering if he was going to make it. But I think I was there and stood my ground. And then Myron came on, and we saved what was almost a very tragic situation. I am proud of my tenure for other things. I am proud that I was able to have a big mouth and ask questions. I wanted to know why there were not very many minority faculty, and why those that were here did not stay. I wanted to know about minority students. I wanted to know where they had problems and wound up being the chair of a minority task force. I will never forget in my lifetime that I was able to go into three universities with the Board of Regents and hold hearings on what problems the minority faculty and students had at those universities. Out of that venture, a report was written that I hope you will all read. I want to congratulate the new Board members. I feel honored being replaced with such a great man as Jeremiah Joyce. But Bob, Myron and George, you know my agenda has been concern about minority inclusion in contracts, minority inclusion of faculty and things of that nature. I know a lot of you got tired of my rattling cages, but that is my style. I did not feel that I had the right to sit here and not raise these issues. But I feel good about myself for doing these things.

John, serving with you has been a pleasure. I am going to miss you, and I am going to miss Lili at those football games. I have never served with a person who had such ingenious creativity. I was amazed at how you came out of so many different situations. Last, but not least, Sharon, I am going to miss calling you and asking about my mileage check. Eddie, you have been a great friend, and I wish I could talk you into putting your hat in the ring for the presidency, though I do not think I can. But, I wish you well. My friend, Dr. Zike, I first met over at the Center for Black Studies. Since then, you have moved up to Assistant Provost. You have been a very good friend and a person who gives good advice on everything. You know, I was told that I might get into trouble picking out certain people, but I am going to miss you all. It has been great, but it is not going to be over. You might be hearing from me and, if I can do anything to help, feel free to call me. Thank you very much.

Jim, Chair Moser said, I would like you to rest assured that minorities will be well represented at this school, and I think you know I mean that. I do not think that anybody could possibly replace you. You are a great person, a friend, and your service to the Board and the university has been invaluable. You will be greatly missed, as will Sue Grans, and we appreciate your help.

It is sort of a sweet-sorrow situation, President La Tourette said, with both Jim and Susan leaving us. Certainly you have given the university and me, personally, a great deal of support. I think you have always kept your eyes on the future and the needs of the university, but, more particularly, the needs of our students. You have been champions each in your own way to make Northern a better institution, an institution that serves its students better and for the future. I should mention also that I received a very nice letter from Dave Raymond, who could not be with us. Dave has been interested in higher education and very supportive of the university. He informed me in his letter that the Governor of Virginia has appointed him to the board of trustees of a university. So, he is continuing his service there. To all three, Jim, Dave and Sue, thank you very much for your service to the university and your service to thousands and thousands of students who will have a better education here at NIU because you were concerned enough as citizens to give your time and your energy to this institution. I will miss you.

Jim took some time to explain his experiences, Trustee Siegel said, but he has been overly modest. Jim’s contribution during his term on the Board of Regents will probably go down historically some day, when the history is finally written, as being principally responsible for saving Northern Illinois University. Jim stood up in some very difficult times against some very difficult opponents at the Board of Regents to do what was right, and Jim has always done what is right. Jim, thank you once again; we will all miss you, but this is not the last that you and I will see of each other.

Chair Moser asked for a motion to close the public meeting to conduct an Executive Session regarding personnel matters, as generally described under §2(c)(1) Open Meetings Act, and Executive Session Minutes matters as generally described under §2(c)(21) of the Open Meetings Act. Trustee Siegel so moved, seconded by Trustee Skoien. A roll call of the Trustees to recess to Executive Session was unanimous.

Academic Affairs and Student Affairs
The Academic Affairs, Student Affairs and Personnel Committee met on August 26, 1999 in a joint meeting with the Finance, Facilities and Operations Committee. The purpose of that joint meeting was for both committees to hear a detailed report on the development of the State Universities Retirement System that could have a major impact on the university. Steve Cunningham reported on the implications of the Mattis case, which involved a Southern Illinois University professor who sued SURS over its interpretation of the way to calculate his pension. He had taken the Early Retirement Option (ERO), which necessitated payments by the university and by him. He believed those payments were in excess of what it cost SURS to pay for his annuity, and he first tried to get the excess payment refunded. When that did not work, he asked that the payments be added to his account and then used as a basis for a Money Purchase annuity. With these additional payments, the new calculation gave him a substantially larger monthly pension. SURS rejected this reading of the statute, which Mattis won in appeals court, and the Supreme Court refused to hear the SURS appeal. Mr. Cunningham reported on the situation faced by the university. The court still has not made its final determination on how the statute is to be interpreted or who is in the covered class of employees. Under the current interpretation, Northern would have approximately 470 faculty and staff in the covered age group. If all of them are eligible and all elected the ERO, the cost to the university is estimated at $20 million, with another $10 million in sick leave and vacation payouts. The legislation permits the universities to limit participation in an ERO in a single year to 15 percent of those employees who are eligible. If 15 percent of Northern’s eligible employees were to elect the ERO in one year, the cost to the university is estimated at $3 million in ERO payments and another $2 million in sick leave and vacation payouts. Paying $5 million out of this year’s current budget is serious enough, Chair Boey said, but to deal with a larger budget deficit is impossible. Accordingly, the Academic Affairs, Student Affairs and Personnel Committee endorses the recommendation that the university limit participation in the ERO for this coming year to 15 percent. The item from the committee meeting is included in today’s President’s Report. The joint committee also heard a report from Steve Cunningham on allocation of the Fiscal Year 2000 increment. All employee categories received an average increment of 5 percent, as recommended by the Board, with the percentage for faculty being slightly higher because of promotional increments.

Finance, Facilities and Operations Committee
Trustee Boey acted as Chair at the Finance, Facilities and Operations Committee Meeting. Again, he said, this was a joint meeting with the Academic Affairs, Student Affairs and Personnel Committee. At that meeting, the committee accepted the following annual and periodic reports: Summary Report of Transactions in Excess of $100,000; Fiscal Year Summary Report and Obligation of Transactions of Financial Resources, Year Ending June 30, 1999; Annual Report of Transactions Involving Real Property, Fiscal Year 1999 Annual Report on Capital Activities. Action items approved by the committee at the August meeting are: purchase of printing paper and envelope stock; Business and Industry Services lease amendment; Chicago Art Gallery lease renewal; Fiscal Year 2001 Appropriated and Nonappropriated Budget Request; Statewide University Athletic Capital Improvement Fund Request, and Fiscal Year 2000 Internal Budget. Each of these items and others addressed by the Finance, Facilities and Operations Committee are included in today’s President’s Report.

Legislation, Audit and External Affairs Committee 
There was no report from the Legislation, Audit and External Affairs Committee.

Illinois Board of Higher Education 
Trustee Siegel reported that the only substantive issue pertaining to NIU at the last meeting of the Board of Higher Education was the approval of NIU’s Naperville location.

University Civil Service Merit Board
There was no report from the Executive Committee.

Northern Illinois University Foundation
Trustee Boey asked Mr. Dick Boardman, President of the University Foundation, to give a brief report. Mr. Boardman reported that that the University Foundation is headed in a very positive direction. As I reported in June, he said, we expected to close out the fiscal year with record-breaking gift totals. Total gifts received by the university were nearly $6.6 million, compared with $5.4 million last year. This was due in large measure to an extraordinary gift-in-kind of software to the College of Engineering, which is not something that we can look forward to happening every year. The overall annual fund had a banner year as well. The year-end total of cash gifts received through both direct mail and the telefund was $671,051, an increase of 65 percent over last fiscal year. This increase stemmed from an increase of 26 percent in the number of donors, as well as 31 percent in the average gift size. Through the telefund alone, Mr. Boardman said, pledges increased by 50 percent this past fiscal year, for a total of $873,842. The telefund continues to be successful in attracting new donors, which helps broaden NIU’s base of support from alumni. Year-end figures revealed an increase of 13 percent in dollars pledged by new donors, and the average telephone pledge increased from $52 to $58, an increase of 13 percent. Each college also enjoyed a significant increase in gifts obtained through the telefund. The most dramatic was a 103 percent increase for the College of Business, and the lowest was 26 percent for LA&S, he said, which is still a hefty increase. As of June 30, 1999, the market value of the Foundation endowment portfolio was slightly more than $16 million, an increase of 12.4 percent over last year. During the past five years, the endowment has grown 362 percent by virtue of new gifts to the endowment and strong investment performance. I am proud to report that NIU Foundation’s five-year rate of return is higher than the national average of institutions with endowment funds of less than $75 million.

The Foundation Board is in the process of actively recruiting directors for election at its annual meeting on October 1. This is also the Foundation's 50th year anniversary dinner. I want to personally welcome all trustees, he said, and encourage you to attend this important university function. Another upcoming event this fall is a dinner on November 12 recognizing donors who have made gifts of at least $1,000 during the last fiscal year or a lifetime gift of $10,000 or more. You may be interested in knowing that our Board has set a suggested minimum level gift that would qualify Foundation Board members to attend this meeting, Mr. Boardman said, and I hope the Board of Trustees will also join us at that meeting and that we can recognize them as donors as well. Our leadership, not only as volunteers, but also as donors, truly is important and will make a big difference in our efforts to grow private support for this great university. Thank you very much.

Agenda Item 9.a.(1) — Printing Services Paper and Envelope Stock
This item deals with the authorization to buy paper stock on an annual basis. The recommendation for purchase was $365,000.

Agenda Item 9.a.(2) — Business and Industry Services Lease Amendment
This amendment pertains to Business and Industry Services, the President said, which will ultimately be located in the NIU Naperville facility. This amendment will extend their lease to June 2000, when they will move into the new facility.

Agenda Item 9.a.(3) — Fiscal Year 2000 Internal Budget
President La Tourette explained that 38.9 percent of NIU’s budget of $272 million is general revenue support from the state. He pointed out that the income fund is a little bit less than $52 million. That is about 19 percent of the overall budget, and bond revenue operations are also at about 19 percent. Of the approximately $106 million available in FY00, just over 83 percent of those funds are for personnel, he said, and the chart on page 24 shows how personnel-intensive our operations are. On page 25, he noted the increase in state support, which was approximately 4.4 percent, increasing from $101 million to almost $106 million. 

Agenda Item 9.a.(4) Fiscal year 2001 Appropriated Capital Budget Request
President La Tourette highlighted the top four items discussed by the Finance and Facilities Committee, which appeared on page 28 of the meeting materials. These items appear for years sometimes before they are finally approved for state funding. For example, he said, the Altgeld project that is now underway was originally submitted in the early 1990s. It took approximately 10 years to reach the point where the Engineering Building could be built. That construction was authorized in 1985 and completed in 1995, he said, and the same thing happened with the Faraday building. We are hoping that in the coming year the legislature will provide the $4.4 million in funds needed to complete the library buildout, which is essential for library materials and space. There is a project of approximately $9 million to provide matching funds for the university to build a second facility at Hoffman Estates. The third item is a campus chiller-water project of just over $7 million that is essential to the campus for providing air conditioning. The current university facilities are obsolete and the refrigerant being used in the chillers is being banned by the federal government. We also are requesting funds for the planning of the Stevens Building renovation. It would be a very good year for us, the President said, if all four of those projects were funded in the coming legislative session.

Agenda Item 9.a.(5) — Fiscal year 2001 Nonappropriated Capital Budget Request
These funds are used to support bond revenue construction. At the top of the list, was the convocation center, which the Board has already approved, at $35.8 million. A priority order list of projects was included on page 34 of the Board materials, and all were reviewed by the Finance and Facilities Committee.

Agenda Item 9.a.(6) — Statewide University Athletic Capital Improvement Fund
A capital improvement fund has been established by the legislature for athletic facilities. There may not be a large amount of money available in the coming year, President La Tourette said, but a program that was authorized in 1995 is now funded as a result of legislative action in the spring of 1999. Ultimately, it is expected that $4 to $5 million will be available annually for all the public universities, he said, so we thought it would be appropriate to put in our request as soon as possible.

Agenda Item 9.a.(7) — Chicago Art Gallery Lease Renewal
The current facility lease at 215 West Superior Street began in 1989. The art gallery actually had another facility across the street, starting in 1984, the President said, so basically we have had a major presence in the art community in what is called the "Soho District" of Chicago since 1984. This is a very important outreach in the Chicago community for the School of Art as well as for the university.

Agenda Item 9.a.(8) — Changes to SURS Early Retirement Without Discount Option (ERO)
This item established the 15 percent cap on the Early Retirement Option, as recommended by the Academic Affairs Committee and explained by Trustee Boey earlier in that Committee report.

The President recommended all of these action items for approval. Trustee Boey moved that Action Items 9.a.(1) through 9.a.(8) of President’s Report No. 20 be approved by the Board, and was seconded by Trustee Skoien. The motion was approved. 

Before he summarized the information items, President La Tourette informed the Board of the university’s final fall enrollment figures. Undergraduate enrollment is up 569 (3.5 percent) students from last fall. New freshmen went up 111 (3.9 percent). There was a slight decline in new transfers of 44 (-1.9 percent). This is a very good achievement, he said, given the fact that the high school graduating classes across northern Illinois this year, from the city of Chicago and north of Interstate 80 to the Mississippi River, actually went down from the previous year. There are a couple years where enrollment at the high school senior level will go down before it starts up for the year 2006. So, the 12 percent increase that we were expecting between 1996 and the year 2006, the President said, will occur mostly in the 21st Century. We are kind of running against the trend with this increase in our freshman class, and we are very pleased that undergraduate enrollment has gone up by 569 students. That probably means that retention has gone up, he said, which is very important for our overall graduation rate. Total enrollment is just under 23,000 at 22,843. This is a good report and one that we have been waiting for because there were some people in the community who did not understand that the university is directly affected by the demographics of our 18- to 21-year-old population. However, the figure that the senior high school class will reach in 2006 will be about the same size as the year 1987, which is less than it was in the early 1980s. So, enrollment is not expected to go back up quite as far as it was in the 1980s.

University Reports Forwarded from the Board Committees

Agenda Items 9.b.(1) – 9.b.(6)
These were all information items that had been discussed by the Board committees at previous meetings. The Board’s attention was called to the Fiscal Year 2000 Increment Summary Report on page 55. Guidelines for this salary increment were established by the Board and included a 3 percent increase, which was approved by the legislature and the Governor. An additional 1 percent was provided by the state to help improve our salary competitiveness, President La Tourette said, and the university was required to match that 1 percent by reallocation. That reallocation was rather significant, because it amounted to about $1.2 million, which helped us reach the 5 percent level. Three groups of employees — Instructional Faculty, Fair Labor Standards Act (FLSA) Exempt Employees and Hourly Civil Service — all received an average 5 percent increase. Faculty received a promotional increase for those people who were being promoted from instructor to assistant professor, assistant professor to associate professor and associate professor to full professor, so there was an extra .4 percent for that group in accordance with Board promotion policies.

Items Directly from the President

Agenda Item 9.c.(1) — Educational Leave w/Partial Pay
On the basis of recommendations by the Dean of the College of Liberal Arts and Sciences and the Provost, President La Tourette said, I recommending that Professor William McCready be granted an educational leave at half salary for the coming year. Professor McCready will be involved in a very significant project involving public opinion polling techniques. He is a leader in this field not only nationally but internationally. President La Tourette stated that this was only the second educational leave he has recommended probably in the last decade; these requests are looked at very carefully. This is something the university does on a very occasional basis when the return to the university is considered to be larger than the cost of providing that half-year leave with pay.

Trustee Siegel congratulated Dr. McCready saying that it was an honor for him as well as for the university. Trustee Siegel then made a motion to approve the educational leave with partial pay and was seconded by Trustee Vella. The motion was approved.

Agenda Item 9.c.(2) — Summary of Grant and Contract Awards
The summary of grant and contract awards from Fiscal Year 1999 totaled $32,233,190, the President said, an increase of 7.5 percent over last year’s figure of $29,947,482. Certainly, then, the grants and contracts are coming in at a much higher level in real terms, he said, because the 7 percent to 8 percent increase is certainly greater than inflation. And this is an increasingly more important source for university operations, he said, when the state is only providing 38 to 39 percent of our budget.

The meeting was adjourned at 2:11 p.m.
 

Respectfully submitted,

Sharon M. Mimms
Recording Secretary