Minutes of the

BOARD OF TRUSTEES

OF NORTHERN ILLINOIS UNIVERSITY

March 21, 2002

CALL TO ORDER AND ROLL CALL

The meeting was called to order by Chair Manuel Sanchez at approximately 9:15 a.m. in the Clara Sperling Sky Room of Holmes Student Center.  Recording Secretary Mimms conducted a roll call of Trustees.  Members present were Trustees Catherine Adduci, Robert Boey, Myron Siegel, Gary Skoien, Student Trustee Alex Alaniz and Chair Sanchez.  Trustee Barbara Giorgi Vella was present via teleconference.  Not present was Trustee George Moser.  Also present were Board Parliamentarian Kenneth Davidson and President John Peters.  With a quorum present, the meeting proceeded.

VERIFICATION OF APPROPRIATE NOTICE OF PUBLIC MEETING

Confirmation of Open Meetings Act public notice compliance was provided by Board Parliamentarian Ken Davidson.

MEETING AGENDA APPROVAL

Chair Sanchez proposed that President’s Report No. 30 action Agenda Items 9.a.(5), 9.a.(7), 9.a.(8) 9.a.(10), 9.a.(11), 9.a.(12), 9.a.(13), 9.a.(14), 9.a.(18) and 9.a.(19); receipt of Information Items 9.b.(3) and 9.b.(4); and Information Item 9.c.(1) be moved to a consent agenda.  Trustee Siegel made a motion to approve the meeting agenda as amended.  Trustee Adduci seconded the motion.  The motion was approved.

REVIEW AND APPROVAL OF MINUTES

It was moved by Trustee Adduci and seconded by Trustee Siegel to approve the minutes of the December 6, 2001 Board of Trustees Meeting.  The motion was approved.

CHAIR'S COMMENTS/ANNOUNCEMENTS

As a matter of privilege before I comment on business matters, Chair Sanchez said, I want to mention my pride in what I experienced firsthand at Sportsman Park where NIU was actively involved in a two‑day Latino educational effort.  With the support of Dr. Wheeler, Dr. Gutierrez and others who were there representing Northern Illinois University, we have continued our leadership role in addressing one of the most significant educational dilemmas that exists in the country.  We have all heard about the high school dropout problem; I do not need to elaborate on that.  But there has to be collaboration between the high schools and the universities as we try to address the need for four‑year degrees.  I am pleased to say that NIU continues its leadership role in that regard, the Chair said, and we look forward to working further with those who put on the educational summit at Sportsman Park.  At the end of the day, when this serious issue has been addressed, they will say that the changes came about because a higher education institution called Northern Illinois University in DeKalb, Illinois took the leadership role.  And with the support of our elected officials in Springfield as well as in Washington, we will be recognized as the school that had the foresight to take the lead in this role and make a difference.

I would also like to make a few comments about the issues before us on the agenda, the Chair said.  When we met in December, we had just received word from Springfield about the full extent of Illinois’ fiscal problems.  In fact, I believe we met just a few days after learning of the second of two financial blows that forced us to make a midyear rescission in our current fiscal year budget.  That cut totaled more than $4 million, and, as we all know, the news got worse.  It now appears our shortfall next year will be in the $9 to $10 million range.  We thought $4 million was horrible, and now that has more than doubled.

Many of you know that we Trustees, as well as members of the administration here at NIU, receive a daily summary of higher education news from around the state and the nation.  Over the past six months, Chair Sanchez said, the stories have taken on a very familiar tone, whether they are from DeKalb, Bloomington or Champaign, or North Carolina, Ohio or Indiana.  The story throughout American higher education today is about budget cuts, tighter resources, layoffs, program elimination, and so forth.  Our nation’s economic downturn has had very immediate effects on public universities, and clearly the events of September 11 only served to worsen that situation.

Several of the items we are going to discuss today are directly linked to our economy, the Chair continued, most notably, proposed increases in tuition and student fees.  I know that I speak for my colleagues on the Board when I say that this is an issue that we have approached very seriously and with a great deal of thought.  I have read the minutes of the Finance, Facilities and Operations Committee and the Academic Affairs, Student Affairs and Personnel Committee from earlier this month, and I know that there were serious discussions at those meetings about the impact of these proposals.

NIU is known for its dual commitment to access and quality, Chair Sanchez said, and we Board members must be guided by those principles in our own decision‑making.  I think I speak for all my fellow Trustees when I say how pleased we have been to see a continuing adherence to the basic guidelines set out by President Peters late last year in the cost‑cutting plans presented by the administration:  As few disruptions to academic programs as possible and a commitment to protecting jobs and salaries as much as possible.  I know that Dr. Peters is going to elaborate on those points in a few moments, but I want to go on record as saying that this Board agrees with those priorities and is pleased to see them represented in the numerous communications we have received on the budget crisis.

Finally, on the subject of budget, the Chair commented, the shared response plan put forward by Dr. Peters and his staff speaks to the issues of fairness and community building that have characterized his administration thus far.  His plan appears to have at its base the premise that all can remain strong if all contribute to the answer.  That is what our state has asked of higher education, and that is what NIU is asking of its faculty, staff and students.

As I look through the rest of our agenda today, Chair Sanchez concluded, I am struck by the number of items we will be hearing that represent “business as usual” at our University – faculty promotions and tenure, requests for new program minors, West Campus issues and so on – in the face of extremely serious financial pressures.  We are moving on, sticking with our priorities and getting on with the business of NIU growth and progress. 

The Chair recognized University Advisory Committee (UAC) representatives Dr. Suzanne Willis, Dr. Dan Griffiths, Dr. Dolly Jones, Dr. James Lockard, Ms. Beverly Espe and Ms. Judy Burgess.  Dr. Willis reiterated the appreciation of the faculty and staff for the openness that Dr. Peters has shown in sharing with them the process and the extent of the budget issues the university faces.  He took what I think is the unprecedented step of sending an e‑mail to the entire university community – faculty, staff and students, Dr. Williams said.  I am not sure that has ever been done before, and we certainly appreciate it.  I also want to express my appreciation for the Board’s support and attention to the faculty and staff and for the opportunity to address you.

PUBLIC COMMENT

The Chair asked Board Parliamentarian Kenneth Davidson if any members of the public had registered a written request to address the Board in accordance with state law and Board of Trustees Bylaws.  Mr. Davidson noted that no timely requests had been received for public comment at that Board meeting.

REPORTS OF BOARD COMMITTEES AND BOARD LIAISONS

Executive Committee

There was no report from the Executive Committee.

Academic Affairs, Student Affairs and Personnel Committee

Committee Vice Chair Boey gave the Academic Affairs Committee report for Chair Vella.  The Academic Affairs, Student Affairs and Personnel Committee met on March 7 and forwarded the following matters for action:  Recommendations for Faculty Promotions, Tenure and Promotions with Tenure; Recommendations for Faculty and Supportive Professional Staff Sabbatical Leaves for 2002‑2003 Academic Year; Request for a New Concentration in Latino American Studies; Request for a New Minor in Elementary Mathematics Education; Request to Amend Board of Trustees Regulations in order to allow employees to have the privilege of electing to participate in tax‑deferred compensation plans for which they may be eligible under state and federal statutes and regulations.

Finance, Facilities and Operations Committee

Committee Chair Boey stated that the Finance, Facilities and Operations Committee met on March 7.  At that meeting, the Committee considered and approved recommendations for tuition, fees, and room and board rates for the upcoming academic year.  The recommendations were developed through a consultative process and are reflective of the budget reductions and challenges the university faces in Fiscal Year 2002‑03.  The committee deliberated these rates at length and subsequently approved them for recommendation to the Board.  Those deliberations were in‑depth and evoked a lot of emotion from the committee members.  At the end of the day, the bottom line says that the mission of the university is accessibility, affordability and quality.  While we recognize that $125 per semester for a full‑time undergraduate is a lot of money when you do not have it, the Committee Chair said, quality is certainly an important part of the program.  So, in trying to strike a balance in the reduction process, which included, among other things, the need to have $125 per semester increase in tuition, the Board members finally concurred that, as distasteful as it was, that was the right thing to do.  And that is what we are recommending to the Board for approval.

Additional items considered by the Committee were contract renewals for student insurance and sport camp accommodations, land easements, capital projects and improvements.  The Committee received the following reports:  2002 budget status, 2003 budget process update, transactions in excess of $100,000, report on investments, and Engineering project update.

Legislation, Audit and External Affairs Committee

Committee Chair Siegel stated that the Legislation, Audit and External Affairs Committee met on March 5 in Hoffman Estates.  Three UAC representatives were present at the meeting.  Ken Zehnder provided a brief overview of new substantive legislation introduced in Springfield that affects public university operations.  Kathy Buettner and President Peters then presented a detailed overview of the university’s FY03 operating and capital budgets at the Governor’s recommended levels.  Kathy reported that the Governor‑proposed capital budget for higher education allocates $3.9 million to furnishings and equipment for Barsema Hall, a reduction of $1 million or 20 percent from the university’s request and the IBHE’s December recommendations.  The Governor reduced all furnishing and equipment capital lines in the state budget by 20 percent because of budget constraints.  The fact the Barsema funds were included in the Governor’s proposed capital budget is good news.  However, once again, the university will be required to close the budgetary gap created by the across‑the‑board 20 percent reduction in FFE funding.

Ms. Buettner reported that planning funds for the the Stevens Building renovation project are included in the IBHE recommendation capital budget at $1.5 million, while construction funds were allocated at $15.3 million.  Unfortunately, these allocations fall at the 21st and 22nd positions on a capital list that contains 51 projects and $443 million of capital.  The Governor’s recommendation includes funding for 12 regular projects and additional projects previously funded from other budget lines that have been moved to the CDB budget for FY03 for a total of $283 million in capital.  So, it looks like there will not be any capital funding for the Stevens Building renovation project either for planning funds or for construction funds in the coming year.

President Peters announced that the potential impact on the university of the state’s strained economic situation would be $9 to $10 million in FY03.  NIU will begin FY03 with a potential budget‑based reduction of $8 million with an additional $1 to $2 million shortfall associated with unavoidable cost increases for utilities, liability insurance and building maintenance.

Kathy concluded with a detailed report on the federal level, including an FY03 federal administration budget overview, and a final report on the Taxpayer Relief Act of 1997, an issue this university and the Board have been very involved with over the last four years.  The Committee Chair reported that HR3346 was passed by Congress and signed into law by President Bush on January 16, 2002.  This legislation amends the Internal Revenue Code to assist educational institutions in the reporting requirements attached to the HOPE Scholarship and Lifelong Learning Tax Credits for our students and their families.  These tax credits provide a much‑needed opportunity for our students and their families to help make higher education more affordable.  However, the unfunded mandates placed on the universities when this legislation passed in 1997 to maintain data and records would have resulted in millions of dollars of additional costs that would have been passed on to the students.  The Committee expressed its thanks to Kathy Buettner, Kathe Shinham and Congressman Don Manzullo, our Rockford Congressman, and his staff for their hard work and persistence on this issue.  Congressman Manzullo and NIU will be hosting IRS Commissioner Rosati on May 30 at NIU‑Rockford.  The Board of Trustees and the NIU campus community will be invited.  This is significant legislation that represents four years of hard work spanning two administrations and two congresses.

The Senate Appropriations Committee hearings will be held on April 8, Chair Siegel said, and I will attend the hearings as I do every year to support NIU.

This Tax Relief Act was really quite an amazing bit of work, President Peters said, and I want to recognize Congressman Don Manzullo, who was a tiger and a bulldog on this, and our own Kathe Shinham.  All of higher education thanks both of those individuals for this tax relief.  I have received e‑mails from presidents all over the country thanking us for our work on it.

The other thing I would like to add is concerning the hearings that are coming up on the eighth. In addition to Trustee Siegel, who is always there with us at the Senate appropriations hearings, Senator Rauschenberger has requested that all board chairs be in attendance.  So our Board Chair, Manny Sanchez, will also be attending the hearings.  This year all deans of education also have been requested to appear before the committee because of state interest in the preparation of teachers, both the supply and the quality.

As we go through these reports, no matter what committee, Chair Sanchez said, I am always taken by the fact that we give a brief summary, but there is an endless amount of work involved at all levels.  I have served on every committee, having chaired the Finance and Facilities Committee and having served on the Academic Committee dealing with the most sensitive of all sensitive issues, tuition and other increases.  Then listening to the Legislation Committee, you really do not have an appreciation of how much hard work goes into each one of those pieces of legislation, whether Trustee Siegel is talking about Washington or whether you are talking about Springfield.  The amount of effort and energy that is exhausted every time a little matter like that is brought up, it is just really amazing what a wonderful successful effort we have been able to engineer.  I think we have created the paradigm for all of higher education in not just doing it but doing it the right way, the Chair said.  On April 8, I look forward to joining Trustee Siegel, the Interim Dean of Education, and President Peters as we try to convince the Senate committee and its chair, Senator Rauschenberger, that we are entitled to the maximum amount of funds we can receive from Springfield to continue the wonderful effort we have here at NIU.  Notice I did not say just in DeKalb, because I am always reminded that we also have Hoffman estates, Rockford and Naperville and who knows where the next one will be.

Illinois Board of Higher Education

President Peters reported that the last meeting of the Illinois Board of Higher Education was held on February 4 and 5 at DePaul University in Chicago.  Two items of particular interest to our Board were covered at that meeting.  There was extensive discussion on the budget situation and the Governor’s budget as it came to the IBHE.  And, a substantial preliminary report was presented on the status and the role of part‑time and temporary faculty that created quite a bit of discussion.  There will be some recommendations coming out of the IBHE at its next meeting, which will be held in Bloomington at Illinois State on the role and status of part‑time faculty.  Subsequent to that meeting the executive director succeeding Keith Sanders was named.  That person is Dan LaVista, who is currently president of McHenry Community College.

Universities Civil Service Merit Board

Trustee Barbara Vella, the Board of Trustees liaison, reported that the Universities Civil Service Merit Board met late in January.  At that time, it was announced that Mr. Ingerski, who is the director and has been for many years, will be resigning.  We are now in the process of a search for a new director.  The board recommended that the executive committee conduct this search, and they are reviewing applications.

Northern Illinois University Foundation

Trustee Boey, the Board of Trustees liaison, asked Foundation President Mallory Simpson to give the report.  As always, Ms. Simpson said, I very much appreciate the opportunity to appear before you and to share some news about NIU Foundation activities.  As a matter of fact, the Foundation Board and committees are meeting tomorrow.  Chair Dave Nelson will be on campus later this afternoon and was sorry he could not be here early enough to give the report this morning.  But he wants you to know that the major agenda items the Foundation Board is working on tomorrow are some major fundraising initiatives and a plan to work in partnership with the university to step up support for development activities.

Ms. Simpson reported that a total of $3.7 million in gifts have been received to date this fiscal year.  The good news is that cash gifts from individuals are up 26 percent, and the best news is that giving from alumni has doubled from this time last year.  The emphasis of our development program is cash gifts from individuals, particularly alumni.  We are down significantly in gifts‑in‑kind.  These can be equipment, software, collections and so forth.

Our annual fund has hit a plateau, Ms. Mallory said, which is normal after the rapid increase of a startup program.  However, we are taking several steps to help us jump to the next level.  We are doing a thorough review of all of our strategies for each of our annual fund market segments and expect to be making some significant revisions in how we run our Telefund in the future.

This spring will be busy with a series of four new prospect cultivation receptions hosted by Foundation Board members and Board of Trustees Chair Sanchez, Ms. Simpson said.  We anticipate the attendance of 50 to 125 new prospects and donors at each of these receptions.  We have secured major gift commitments to name several of the rooms in Barsema Hall.  Ms. Simpson publicly thanked Dean David Graf and Mrs. Diane Graf for signing a multiyear pledge for a major gift to name the dean’s conference room in Barsema Hall.  We also have major commitments from Don and Donna Kieso to name a room in the Accountancy Suite, Ms. Simpson reported and from Clem Chumke to name the CPA Review Room on the first floor.  Since Barsema Hall represents the first privately funded major building on campus, we have designed a donor recognition program that is integrated with the overall design of the facility, the interior furnishings and so on.  There will be a beautiful wall of honor opposite the auditorium with a photo collage and a plaque telling the Barsema story, along with nameplates for all donors of ten thousand dollars or more to the College of Business, and there will be plaques outside each of the named rooms.  We hope this donor recognition plan will be a model for other privately funded buildings in the future.

Lastly, Ms. Simpson said, I am delighted to share very recent news about a $1 million estate distribution that we should receive in approximately six weeks.  It is coming from Janet and Harold Finney for the School of Nursing.  Years ago, the Finneys established an endowment fund to support nursing education.  Neither of the Finney’s attended Northern Illinois University.  Mr. Finney was a nurse.  The reason they made this gift is because when Mr. Finney was recovering from cancer surgery, he was cared for by a woman who had graduated from NIU’s School of Nursing.  He felt so strongly about the fine attention and care he received that he and his wife made these provisions.  In closing, she said, I will say something we say a lot in our development team -- you just never know. 

It is ironic that I know Harold Finney, and I knew he had no connection with this university, Chair Sanchez said, so I am just flabbergasted to hear about this.  But whether you are an alumnus of this university or in some way have been positively impacted by this university, he said, the ultimate way to express your appreciation once you go on to bigger and better things is to support our annual fund and, in your estate planning, consider incorporating Northern Illinois University and its Foundation as well.

EXECUTIVE SESSION

Chair Sanchez asked for a motion to close the public meeting to conduct an executive session to discuss the following subject authorized by the Illinois Open Meetings Act:  property matters as generally described under §2(c)(5) and (6) of the Open Meetings Act.

Trustee Boey so moved, seconded by Trustee Skoien.  A roll call vote of the Trustees to recess to Executive Session was unanimous.

BOARD OF TRUSTEES MEETING RECONVENED

Chair Sanchez reconvened the public meeting of the Board of Trustees at approximately 10:50 a.m.

Chair  Sanchez asked for a motion to approve the items placed on the consent agenda earlier in the meeting.  They include President’s Report No. 30 Action Items 9.a.(5), 9.a.(7), 9.a.(8) 9.a.(10), 9.a.(11), 9.a.(12), 9.a.(13), 9.a.(14), 9.a.(18) and 9.a.(19) and Information Items 9.b.(3) and 9.b.(4); and 9.c.(1).  Trustee Siegel so moved, seconded by Trustee Boey.  The motion was approved.

The Chair asked Mr. Davidson to briefly identify the consent agenda items, which would be followed by an opportunity for discussion by Board members.

Mr. Davidson cited the following as consent agenda items:

Action Items

9.a.(5)                  Fiscal Year 2003 Athletic Sports Camp Housing and Meal Expenditure

9.a.(7)                  Fiscal Year 2003 Waste Management Contract

9.a.(8)                  International Programs Division Contract Renewal Program

9.a.(10)                  Biological Sciences Research Project

9.a.(12)                  Easements Required by the DeKalb Sanitary District

9.a.(13)                  Easement Required by NICOR

9.a.(14)                  Information Technology Services Computer Lab Upgrade

9.a.(15)                  Swen Parson Hall – Remodeling of Bursar’s Office

9.a.(18)                  Request for a New Concentration

9.a.(19)                  Request for a New Minor

Information Items

9.b.(3)                  Periodic Summary Report of Transactions in Excess of $100,000

9.b.(4)                  Periodic Report on Investments

Items Directly from the President

9.c.(1)                  Summary of Grant and Contract Awards

PRESIDENT'S REPORT NO. 28

Before we move into our action and information items, President Peters said, I would like to take a moment to comment on some of the issues addressed earlier this morning by Chair Sanchez concerning our fiscal status as we enter Fiscal Year 2003.  First, as we enter the final quarter of Fiscal Year 2002, NIU and all of Illinois higher education finds itself critically challenged.  We have absorbed a midyear rescission and the imposition of new health care premium responsibilities for a combined reduction of more than $4.8 million at NIU alone.  We have recognized that the solution to our state’s financial dilemma is one in which we all must play a part.  To that end, we have implemented a number of cost reduction strategies and deferred expense measures to meet this reduction, the President said.  I would add at this point, however, that it was clear to us even in November that more bad news was around the corner and that we would not be able to recover our financial stride in FY03.  That is why the guidelines I established in November were so important to our basic mission.  We knew then that we were probably looking, minimally, at a two‑year situation.  I cannot say definitively when our budgetary problems will be resolved.  Because our state, corporate and other tax structures are indexed to the federal tax structure, and in view of the Federal Economic Stimulus Package that was passed and signed by President Bush, there may be a net loss in tax revenue to the State of Illinois anywhere from $250 million to $500 million more than our shortfall anticipates, and that will have to be accommodated in some way.

We need to establish our priorities and return to them regularly, President Peters said, as we make the difficult decisions we must this year and next.  Today, I can assure you that we will end our current fiscal year without having to compromise too much on those priorities, although there is pain out there and there is disruption.  We have implemented a hiring freeze, deferment of repairs and maintenance projects, and limitations on project and program initiatives in each division of the university.  At the same time, we have implemented some innovative, money‑saving programs that you have heard about in earlier meetings, extensive energy saving initiatives involving performance contracts, utility use forecasting, and purchase of natural gas directly at the wellhead.  These programs along with slightly higher revenues from increased enrollment and an unusually mild winter allowed us to offset a significant portion of the FY02 rescission.  However, as we look ahead to FY03, the President said, we find ourselves much more challenged.  Under the recently released budget recommendations now before the legislature, the FY02 rescission is made permanent, another health insurance contribution is required and the university must still address unavoidable cost increases associated with utility increases, liability insurance and bringing on new academic buildings.  All told, we are going to have to make up a shortfall of about $9 million to $10 million.  We cannot rely on the one‑time savings that I mentioned to address what is a permanent base reduction.  Professor Willis mentioned the e‑mail that I sent out campuswide, Dr. Peters said.  As I had my hand on the send button to send out thousands of e‑mails to let people know we had a $10 million problem and that sacrifice on all parts was required, it was a moment of extreme anxiety for me.  But later, as I was sitting in my office, I received a barrage of responses.  Within a period of two hours, I probably had as many as 150 responses.  Trustees, I want to tell you how gratifying the responses were.  There were some people, obviously, who were extremely upset, and rightfully so.  But most of our staff and faculty and some students e‑mailed back saying:  We are with you, we understand.  And that was a great moment for me because it let us all go on from there to try to solve this problem.

A shortfall of this magnitude cannot be made up from any one source, the President said.  It requires what we have called the shared response strategy that distributes the burden as equally as possible across the institution.  Again, with our guiding principles being those of, first and foremost, maintaining quality, access and affordability, we have developed a response that relies on significant cutbacks in each university division.  For the first time in many years, today I have requested a significant tuition increase.  I have asked each of my vice presidents to construct budget reduction plans in their divisions and to forward them to me for approval, President Peters said.  In general, we are striving to absorb these cuts in the following ways.  By cutting positions but, hopefully, not people, primarily through attrition and not filling open positions except in the highest priority areas.  When we do replace people, they will be replaced at the entry level rather than at the senior level.  This does damage to an institution because we are already particularly thin in terms of our faculty resources.  Deferred maintenance will be put off.  Equipment, repair and maintenance will be put off.  We will reduce travel, commodities and contractual service expenses.

In order to avoid major disruptions on campus, President Peters continued, our plan to meet budgetary challenges requires that a portion of the burden be addressed through a tuition increase.  None of us likes to recommend higher tuition rates.  We have been blessed at NIU with excellent financial management that allowed us over the years to keep tuition increases at very minimum levels, usually at the CPI or below.  Compared with past years, this year’s recommended increase is higher than average, but it still remains, in our judgment, within the affordable category, particularly given increased dollars available throughout the Illinois Student Assistance Commission (ISAC).  That part of the state budget was not cut, he said, in fact, it increased by about $10 million.  So that would offset some of the tuition increases we see across the state of Illinois.  The demand for an NIU degree continues to increase each year, and we have worked very hard to accommodate the growing expectations of our service region, which increase every day.  Quality is a term that takes on very real and tangible human form in higher education.  It is all about our people, and we must do all we can to protect and maintain it.  As you know, the President said, I have made salary competitiveness a very high priority in my administration.  It was very difficult for me, weeks ago, to have to tell the campus in that that it does not appear, at this point, that we will be able to fund an annual salary increase for FY03.  This is very painful.  Most of you know that I have a good deal of unhappy experience with budget cuts from my seven years at the University of Tennessee, and before that, my years at the University of Nebraska, and I can tell you from experience that an institution can deal with a cut of a one‑ or two‑year duration.  What I worry about are cuts over the course of several years that can do tremendous damage to a great institution that has been built up over the years.  But, I am hopeful at this juncture that we will not reach that point.

There are signs that our economy is turning around both nationally and in Illinois, the President said, and I am hopeful that we will be able to weather this storm without layoffs, salary reductions or any major academic program disruptions.  I have pledged to our faculty, staff and students that I will be open and honest about our shared dilemma.  The responses I have received thus far have been encouraging, he said, and for the most part, members of our campus community are supportive of our priorities and our shared response approach.  I thank each and every one of you for your advice and counsel as we have gone through this, President Peters said.  Our challenges are daunting, and we appreciate your stewardship and support.

University Recommendations Forwarded by the Board committees

Agenda Item 9.a.(1) – Fiscal Year 2003 Student Fee Recommendations

President Peters referred the Board members to a list of all the fees and recommendations.  Some of those fees had been previously approved.  There is a renegotiated 9.84 percent increase in the student health insurance contract, which is a significant amount.  But with rising healthcare costs, this is the best negotiation we could receive.  That means healthcare costs for a student are in the $182 a semester range.  On a personal note, the President said, I recently wrote a check for my son’s student health insurance at another university, and it was just under three times that amount.  So, this is expensive, but it is a good contract.  Also, even though the recommendations come to me well thought out, he added, this year because some salary increases were built into those fees, I reduced them.  Chair Sanchez asked for a motion to approve the FY03 student fee recommendations.  Trustee Boey so moved, seconded by Student Trustee Alaniz.  The motion was approved.

Agenda Item 9.a.(2) – Fiscal Year 2003 Room and Board Rate Recommendations

Our changes in room and board represent an approximate 4.8 percent increase, President Peters said, and the changes represent a 3 percent net effect in the standard room and board rates when combined.  No increases were requested in the meal plans this year.  Based on an analysis of rates at other institutions, NIU’s room and board rates are among the lowest in the state, he said, and are among the lowest in the Mid‑America Athletic Conference.  Chair Sanchez asked for a motion to approve the FY03 room and board rate recommendations.  Trustee Adduci so moved, seconded by Trustee Boey.  The motion was approved.

Agenda Item 9.a.(3) – Regional Delivery Fees for Programs in Liberal Arts and Sciences

These delivery fees are for regional programs in Liberal Arts and Sciences.  One is a $175 per credit hour fee for courses in undergraduate computer science.  The College of Liberal Arts and Sciences also recommends a $50 per credit hour fee for courses in other disciplines in the college.  Chair Sanchez asked for a motion to approve regional delivery fees for programs in Liberal Arts and Sciences.  Student Trustee Alaniz so moved, seconded by Trustee Adduci.  The motion was approved.

Agenda Item 9.a.(4) – Fiscal Year 2003 Tuition Recommendations

After a tremendous amount of careful study and in view of our Shared Response Plan, President Peters said, we have tried to keep our needed tuition increase as low as possible to do the least possible damage to the institution and to not pass the costs on to students and their parents.  Therefore, we are recommending a tuition increase for a full undergraduate load of 12 hours and the comparable graduate and professional rates of about $125 a semester.  This works out to about 8.75 percent tuition increase.  There has been a lot of discussion about this, he said.  We wish it could be less.  But it is not double digit, nor is it as devastating as many of the tuition increases we see appearing across the country.  And we are going to do all we can to always keep our tuition rates low.  Chair Sanchez asked for a motion to approve the FY03 tuition increases.  Trustee Boey so moved, seconded by Student Trustee Alaniz.  The motion was approved.

Agenda Item 9.a.(5) – Fiscal Year 2003 Athletic Sports Camp Housing and Meal Expenditure

Consent Agenda item.

Agenda Item 9.a.(6) – Fiscal Year 2003 Student Accident and Sickness Insurance Contract

The fee for Fiscal Year 2003 student accident and sickness insurance contract was included in the approval of student fees, the President said, and now we have to approve the contract.  This is a request for Board authority to enter into our insurance contract not to exceed $4 million.  Chair Sanchez asked for a motion to approve the FY03 student accident and sickness insurance contract.  Trustee Adduci so moved, seconded by Trustee Vella.  The motion was approved.

Agenda Item 9.a.(7) – Fiscal Year 2003 Waste Management Contract

Agenda Item 9.a.(8) – International Programs Division Contract Renewal

Consent Agenda items.

Agenda Item 9.a.(9) – Barsema Hall Furniture, Fixtures and Equipment

This is a request to establish a budget in order to begin the purchase of furniture, fixtures and equipment for Barsema Hall not to exceed $4,950,950.  It is recommended within the Governor’s budget to fund this at the level of about $4 million, the President said, and is very high on the list.  We have every expectation that it will receive the approval of the legislature and be signed by the Governor.  President Peters asked Dean Graf to make a few comments. 

We are pretty excited about the Barsema’s making the gift of a new building for the College, Dean Graf said, but most of you realize that this is just the start.  There are many other hurdles to overcome before we can get the building up and running.  I want to take this opportunity on behalf of the College of Business to thank the Board of Trustees, President Peters and Executive Vice President Williams for all they have done in moving forward and making sure that we are able to move into a splendid building.  We have done our share over the years in trying to keep our current building one that Health and Human Sciences (HHS) can move into and have a good facility, but there is still a lot to do.  I noticed there is an item on the agenda for technology, which is very important to the building, so I also want to thank Wally Czerniak, Associate Vice President for Information Technology Services.  I also want to thank Mike Malone and his staff for everything that they have done in the past and for the future.  A lot of publicity goes along with this and that has really moved the college forward in the eyes of the community.  Finally, we are working with Mallory Simpson to try to establish some endowments that will complement the building and the college over the years.  I want to thank you all on behalf of the college the dean concluded.

Chair Sanchez asked for a motion to approve the budget for Barsema Hall furniture, fixtures and equipment.  Trustee Vella so moved, seconded by Trustee Siegel.  The motion was approved.

I am excited about the new building too, Trustee Siegel said, because we are receiving a double bonus from the Barsema gift.  The other aspect is the fact that HHS has been spread all over the campus, and now we will have the benefit of seeing that college consolidated into fewer buildings.

Agenda Item 9.a.(10) – Biological Sciences Research Project

Agenda Item 9.a.(11) – Easements Required by the DeKalb Sanitary District

Agenda Item 9.a.(12) – Easement Required by NICOR

Agenda Item 9.a.(13) – Information Technology Services Computer Lab Upgrade

Agenda Item 9.a.(14) – Swen Parson Hall – Remodeling of Bursar’s Office-Capital Project Approval

Consent Agenda items.

Agenda Item 9.a.(15) – West Campus Access Road

The development of our far West Campus is proceeding with our convocation center and our Family Violence Center, the President said, and it is now time to establish a budget to put a road through. Therefore, I am asking Board approval to establish a budget at the level of $773,000 for that road project.  Funding includes university funds in addition to anticipated grants administered through the Illinois Department of Commerce and Community Affairs.  Chair Sanchez asked for a motion to approve the West Campus access road.  Trustee Vella so moved, seconded by Trustee Boey.  The motion was approved.

Agenda Item 9.a.(16) – Recommendations for Faculty Promotions, Tenure, and Promotions with Tenure for 2002‑2003

Besides tuition and other issues of concern to the Board, President Peters said, approving individuals who have been recommended by their departments, their colleges and the university for tenure and promotion at Northern Illinois University is probably the most important thing the Board does annually.  When Dr. Legg came on board, I asked him to make sure that we have the best process and the highest standards possible.  He has now been through the cycle and assures me that he is well pleased with the procedures and the recommendations.  Chair Sanchez asked for a motion to approve the recommendations for faculty promotions, tenure, and promotions with tenure for 2002‑2003.  Trustee Vella so moved, seconded by Trustee Boey.  The motion was approved.

Agenda Item 9.a.(17) – Recommendations for Faculty and Supportive Professional Staff Sabbatical Leaves for the 2002‑2003 Academic Year

The sabbatical leave program is a very good one, the President said, and I want to thank the Board on behalf of the faculty and staff for your support on maintaining this wonderful program, which pays great dividends in refreshing and renewing our faculty and staff.  Chair Sanchez asked for approval of the recommendations for faculty and supportive professional staff sabbatical leaves for the 2002‑2003 academic year.  Trustee Adduci so moved, seconded by Student Trustee Alaniz.  The motion was approved.

Agenda Item 9.a.(18) – Request for a New Concentration

Agenda Item 9.a.(19) – Request for a New Minor

Consent Agenda items.

Agenda Item 9.a.(20) – NIU Tax‑Deferred Compensation Plan Amendment

The NIU Tax‑Deferred Compensation Plan is an amendment to our Board of Trustees Regulations.  The President asked Steve Cunningham to give a brief explanation of the amendment.  This proposed amendment to Board Regulations would allow the university to enter into agreements with our tax‑deferred compensation companies to add 457(b) options to the existing 403(b) options, Mr. Cunningham explained.  This was an option created under the Economic Growth and Tax Reconciliation Act of 2001.  That act is very beneficial for employees of higher education, especially public higher education, with respect to tax‑deferred compensation.  It doubles the capacity of employees to defer compensation on a pretax basis as well as offers additional rollover options from 403(b) accounts and 457 accounts to purchase retirement credit.  State employees are eligible to participate in 457(b)’s and 403(b)’s under the Tax Act.  Chair Sanchez asked for a motion to approve the NIU Tax‑Deferred Compensation Plan Amendment.  Trustee Siegel so moved, seconded by Trustee Adduci.  The motion was approved.

University Reports Forwarded from the Board committees

Agenda Item 9.b.(1) – Fiscal Year 2002 Budget Status Report

Agenda Item 9.b.(2) –Fiscal Year 2003 Priority List

Agenda Item 9.b.(5) –Taxpayer Relief Act of 1997 – Final Status Report

President Peters brought the attention of the Board to the above listed reports, which were covered in his introductory remarks and which had been discussed thoroughly in the Committee meetings. 

Agenda Item 9.b.(3) – Periodic Summary Report of Transactions in Excess of $100,000

Agenda Item 9.b.(4) – Periodic Report on Investments

Consent Agenda items.

Items Directly from the President

Agenda Item 9.c.(1) – Summary of Grant and Contract Awards

Consent Agenda items.

NEXT MEETING DATE

Chair Sanchez announced that the next meeting of the Board of Trustees is scheduled for Thursday, June 20, 2002.

ADJOURNMENT

There being no Other Matters, Chair Sanchez asked for a motion to adjourn.  Trustee Siegel so moved, seconded by Student Trustee Alaniz.  The motion was approved.  The meeting was adjourned at approximately 12:05 p.m.

Respectfully submitted,

Sharon M. Mimms

Recording Secretary