University Senate Budget Committee

Meeting Minutes

Bartley Hall

November 14, 2007

10:30-12:00 PM

Present: Wayne Bremser, Gerald Long, Rick Sieber, Robert Styer, Brian M. Murray, Ken Valosky, Fr. Richard M. Jacobs

Absent NIA: Jon Von Euw, John Stofey, Louis Caccavero, Maggie McLaughlin

The meeting was called to order by Chairman Wayne Bremser at 10:35 a.m.

1. Brian M. Murray was elected secretary.

2. Rick Sieber presented to the committee the most recent changes to the Macro Budget Model for fiscal year 2009 and Out Years.  Specific attention was given to major issues that had been identified at the previous meeting in September.  These included:

·         Tuition increases

·         Financial aid

·         Capital budget priorities

·         Salary increases and faculty adjustments

·         University communication program

.           The committee discussion of the changes and current budget proposal noted:

            a.         a significant increase in the university Communications budget

            b.         increasing undergraduate tuition rates by 4.75% rather than the previously discussed alternatives

            c.         the retention of the increase in faculty and staff salaries by 3.75% as compared to 4% for the current year. Cost of living concerns were discussed.  Mr. Seiber explained that there will be a faculty salary adjustment pool requested by the VPAA to bring faculty salaries to the midpoint of our overlap group over a period of three years.  In the first year that begins in 2008-2009, this pool will be approximately $500,000.  For staff there will be additional funds to implement salary adjustments recommended by consultants over a period of two years.

3. The committee discussed a communication from the Student Senate Caucus proposing that the positive variance from the 2006-2007 budget year be applied to the area of student financial aid to increase socioeconomic diversity.  Mr. Valosky described Enrollment Management’s efforts in this regard.  The current plan is to continue to increase student aid, including financial aid to promote diversity, at a rate higher than the tuition increase.  In fact, over a period of several years, financial aid has been increasing faster than tuition increases and the pattern is expected to continue.  Mr. Valosky also explained that the Dean of Enrollment Management (Steve Merritt) is undertaking a formal study of the current financial aid plan at Villanova with the intention of proposing a long-range strategic plan for establishing Villanova’s approach to financial aid.

4. The overall committee’s role in the budget process was discussed, specifically regarding the processing of budget requests from various groups on campus (e.g., faculty, staff, students). At the September meeting, Rick Sieber explained the general budget process at Villanova, including the role of the new Administrative Budget Committee. He confirmed that in previous years, the procedure has been for those interested in a particular budget adjustment to contact their relevant VP or Dean as early as possible in the budget cycle. That is still the preferred approach of this committee, but it was agreed that the committee could make formal motions about budget issues.  Father Jacobs and Bob Styer mentioned how in the past the entire Senate has expressed frustration at the Administrative Budget Committee’s reluctance to change allocations in the budget. 

5. Ken Valosky, VP of Finance and Administration, reported that the university is considering a new initiative for a new strategic planning effort in the near future.

6. Updated versions of financial statements were distributed. There was a significant increase in the change in net assets from operating activities to $40,575,000 for year end May 31, 2007 as compared to $35,310,000 for the prior year.

7. Due to time constraints, the review of approximately $10,000,000 in favorable budget variances for fiscal year 2007 will be presented and reviewed at the next meeting.

Chairman Wayne Bremser adjourned the meeting at 11:50 a.m.