The official minutes of the University of South Carolina Board of Trustees are maintained by the Secretary of the Board. Certified copies of minutes may be requested by contacting the Board of Trustees’ Office. Electronic or other copies of original minutes are not official Board of Trustees' documents.
Board of Trustees
June 22, 2001
The Board of Trustees of the University of South Carolina met Thursday, June 22, 2001, at 10:30 a.m. in the Carolina Plaza Board Room.
Members present were: Mr. Mack I. Whittle, Jr., Chairman; Mr. Herbert C. Adams, Vice Chairman; Mr. Arthur S. Bahnmuller; Mr. James Bradley; Mr. Alexander English; Mr. A.C. Fennell, III; Mr. Samuel R. Foster, II; Mrs. Helen C. Harvey; Mr. William C. Hubbard; Mr. Toney J. Lister; Mr. Miles Loadholt; Mr. Robert N. McLellan; Mr. M. Wayne Staton; Mr. John C. von Lehe, Jr.; and Mr. Othniel H. Wienges, Jr. Board members absent were: Dr. C. Edward Floyd; Mr. J. DuPre Miller; Ms. Darla D. Moore; Mr. Michael J. Mungo; and Mrs. Inez M. Tenenbaum. Faculty representative, Professor Caroline Strobel, and student representative, Corey Ford, were present.
Others present were: President John M. Palms; Secretary Thomas L. Stepp; Executive Vice President for Academic Affairs and Vice Provost Jerome D. Odom; Vice President and Chief Operating Officer J. Lyles Glenn; Vice President for Research William C. Harris; Vice President for Information Technology and Chief Information Officer William F. Hogue; Vice President for Student and Alumni Services Dennis A. Pruitt; Vice President for Human Resources Jane M. Jameson; Vice President for Business and Chief Financial Officer Richard W. Kelly; Vice President and Executive Dean, Regional Campuses and Continuing Education, Chris P. Plyler; Chancellor of USC Aiken Thomas L. Hallman; Chancellor of USC Spartanburg John C. Stockwell; Interim Vice Provost and Dean of Libraries and Information Systems John N. Olsgaard; Dean of the South Carolina Honors College Peter C. Sederberg; Dean of the College of Engineering and Information Technology Ralph E. White; Dean of the College of Pharmacy Farid Sadik; Dean of the College of Hospitality, Retail, and Sport Management; Dean of USC Beaufort Jane T. Upshaw; Dean of USC Salkehatchie Ann Carmichael; Dean of USC Lancaster Joseph Pappin; Dean of USC Union James W. Edwards; Associate Dean, College of Social Work, John T. Gandy; Associate Dean of Academic Affairs, The Darla Moore School of Business, Rodney L. Roenfeldt; Associate Dean of Administration and Finance, School of Medicine, Brian J. Jowers; Associate Vice Provost, Regional Campuses and Continuing Education, Carolyn A. West; Assistant Dean, The Norman J. Arnold School of Public Health, Cheryl Addy; Associate Dean for Academic Affairs, USC Sumter, Anthony M. Coyne; Interim Director, Office of Budget and Finance, Robert E. Bugbee; Interim Vice President and Chief Financial Officer Allan W. Barber; General Counsel Walter (Terry) H. Parham; Director of the Department of Athletics Michael B. McGee; Assistant Treasurer Susan Hanna; Director of the Department of Internal Audit Alton McCoy; Director of Facilities Planning and Construction and University Architect Charles G. Jeffcoat; Director of Planning Services, Facilities Planning and Construction, Donna Collins; Associate Budget Director and Senior Analyst, Office of Budget and Finance, William Bragdon; Assistant to the Vice President, Office of Budget and Finance, Ken Corbett; Director of Housing Gene Luna; Director of Business Services, University Housig, Darryl Davis; Director of Student Health Services William R. Hill; Director of Presidential Communications and Research Gail Widner; Religious Counselor, Hillel Jewish Counselorship, Bernard L. Friedman; Retiring faculty members: Robert L. Oakman, College of Engineering and Information Technology; and Juanita Thaxton, USC Spartanburg; Associate Professor, USC Spartanburg, Betty Pryor; Director of Governmental and Community Relations Shirley D. Mills; University Legislative Liaison John D. Gregory; and Director of Public Affairs Russell McKinney.
Chairman Whittle called the meeting to order and stated that notice of the meeting had been posted and the press notified as required by the Freedom of Information Act; the agenda and supporting materials had been circulated to the members; and a quorum was present to conduct business.
Chairman Whittle welcomed everyone present. He introduced the retiring faculty members who were present and explained that they had been awarded honorary titles at previous Board meetings. These faculty members received the acknowledgment of the Board of Trustees for their efforts, and Chairman Whittle thanked them for their service to the University of South Carolina.
Chairman Whittle invited the members of the University family to introduce themselves. Mr. McKinney introduced members of the media, and Mr. Friedman delivered the Invocation.
Chairman Whittle stated that there were personnel matters with respect to honorary degree nominations, honorary faculty titles, an appointment with tenure, and tenure and promotion recommendations which were appropriate for Executive Session. Mr. Bradley moved to enter Executive Session, and Mrs. Harvey seconded the motion. The vote was taken, and the motion carried.
The following persons were invited to remain: Dr. Palms, Mr. Stepp, Dr. Odom, Mr. Glenn, Dr. Barber, Dr. Pruitt, Ms. Jameson, Mr. Parham, Dr. Plyler, Mr. Robert Staton, Mr. Kelly, Dr. Harris, Dr. Hogue, Mr. Bugbee, Dr. Hallman, Dr. Stockwell, Dr. McGee, Mr. McKinney, Mr. Gregory, Ms. Warren, and Ms. Tweedy.
Return to Open Session
There were no additions, deletions, or corrections to the minutes. They stood approved as distributed.
During the Executive Committee meeting of May 24, 2001, the Committee had approved a snack vending contract with Cromer Food Services, Inc., which would provide snack and cold food vending machine services to USC Columbia, USC Spartanburg, and USC Union. In addition, the Committee had approved a contract with Barnes & Noble College Bookstores, Inc. for the operation of bookstores on the USC Columbia campus. An amendment to a Deferred Compensation Agreement and Split-Dollar Agreement between the University of South Carolina and Dr. Palms dated June 17, 1997, had also been approved at this meeting. This action would realign previous agreements with Dr. Palms to his current plans for service as President.
During the Executive Committee meeting of June 14, 2001, the Committee approved the following contracts: a contract with the Church of Christ Youth Conference; a Soft Drink Vending Contract under which Pepsi would provide exclusive soft drink vending-machine services, and non-exclusive juice vending-machine services, to USC Columbia, USC Lancaster, USC Beaufort, and USC Union; a contract for the lease of digital printing equipment with Xerox Corporation; and a contract with the South Carolina Department of Social Services to provide independent verification and validation services for the South Carolina Child Support Enforcement System Project.
Th following three items had been approved for recommendation to the Board:
Mr. Bradley moved approval of the Executive Committee selection of Mr. Foster, Mr. Loadholt, and Mr. Wienges to serve as trustees on the Presidential Candidate Search Committee. Mrs. Harvey seconded the motion. The vote was taken, and the motion carried.
Mr. Foster moved approval of the appointment of Mr. Richard W. Kelly as Vice President and Chief Financial Officer of the University of South Carolina effective June 1, 2001. Mr. Bradley seconded the motion. The vote was taken, and the motion carried.
Mr. Bradley moved approval of the Medical Trust Interest Rate Swap Resolution as described in the materials distributed for this meeting. Mr. Bahnmuller seconded the motion. The vote was taken, and the motion carried.
Chairman Whittle noted that the view of the FY02 budget was that it was an interim budget year. The year would be used to develop a strategic plan with strategic initiatives which would "help us deal with both the long term direction of the University and the reallocation of funds to match those programs that we feel will best provide and take this University where we have all stated we would like for it to go." Chairman Whittle cited the strategic planning effort underway with multi-facets of the University involved. This process will assess the Board of Trustees' goals established under Mr. Hubbard's leadership and determine methods for achieving those goals.
Chairman Whittle believed that the Executive Committee considered the budget extremely responsible, showed the courage to cut where necessary and the wisdom to support key items critical even during an interim period. He thanked the Legislature for its consideration of higher education believing its members had heard the message, which Dr. Palms had led the way in expressing, that to cut higher education was to cut at the heart of the future of the entire state, not just its colleges and universities. He thanked the Governor for moderating his initial position and including the importance of higher education with all of education. Chairman Whittle appreciated the Governor's creativity in generating some "bridge funding" which would assist the University through this year of transition. He also thanked Dr. Palms and the entire administrative team for showing the tenacity to work with the myriad budget plans which had existed during this process and for leading a public battle to achieve a lower level of cuts.
Chairman Whittle reminded Board members that each of the eight campuses would sustain substantial cuts. These cuts and reallocations approved today were in addition to a one percent cut to the current budget imposed a few weeks ago. He explained that this one percent had been incorporated into the FY02 budget as a further reduction of income.
The proposed Columbia budget was based on a 13.5 percent ($21 million) cut in addition to the reduction of a $1.56 million carryforward from the FY01 year end cut mentioned above. The University must also absorb $2 million of state-mandated salary and fringe benefit increases.
In summary, Chairman Whittle emphasized the fact that the budget was $13 million less than the previous fiscal year. To offset this reduction, the University would receive $4 million in performance funding and $7 million in one-time "Barnwell" Funds. In order to generate needed additional funding, the administration, supported unanimously by the Executive Committee, recommended that departmental budgets be reduced by nine percent and that the new tuition and fee schedule based on a 10.4 percent undergraduate tuition increase be adopted.
Chairman Whittle recognized Dr. Palms who stated that there had been some changes since the Executive Committee met last week that were congruent with the budget finally passed last night by the General Assembly. The University had a reduction in disbursement for performance funding. Salary increases now were one and one-half percent for classified staff with merit increases of one percent.
The basic undergraduate tuition increase would be 10.4 percent. This would equate to $195 for resident undergraduates and $323 for nonresident undergraduates, $219 for resident graduate students, and $472 for nonresident graduate students. At Aiken, the tuition increase would be ten percent for residents and 4.3 for nonresidents. Both increases equaled $172 a semester. At Spartanburg, it would be 10.4 percent for residents and 4.3 percent for nonresidents which would equal about $182 a semester.
Dr. Palms emphasized that what we have done was to cut items throughout the budget that will least affect quality. We funded all our programs that have been ranked. We were trying to keep those rankings. We were trying to keep the quality of our student body up as well as the quality of our programs, and we thought that this budget would hold us during next year so we could continue to move toward our goals as set by you, the Board of Trustees, as well as our major ambitions to be worthy of invitation into the AAU.
Dr. Palms concluded by saying, "Mr. Chairman, I will be pleased to respond to any questions. We also have our Provost here, Dr. Odom, Mr. Rick Kelly, and Mr. Bob Bugbee (who has been invaluable to us), as well as Mr. Bill Bragdon who can answer any specific questions you may have about these numbers and other numbers that are in the report that has been sent to you."
Mr. McLellan moved the adoption of the operating budget for fiscal year 2002, as recommended by the Executive Committee, including tuition and fee schedules, the housing budget and associated fee schedules, the athletics budget, and the designated funds budget. Mr. Staton seconded the motion.
Mr. Bahnmuller asked for clarification regarding the final approved state budget which the Legislature had passed the previous day. He understood that the University budget was based on a 10.5 percent projected reduction, but the Legislature had approved a 5.5 percent higher education cut. Dr. Palms indicated that an explanation had been mailed to Board members and asked Mr. Bugbee to address these figures.
Mr. Bugbee stated that the Senate, and later the Conference Committee, had approved a 13.5 percent recurring budget cut. In addition, a $20 million overall performance funding increase had been approved. With the inclusion of the "Barnwell Funds," the net percentage reduction was approximately six percent. He further noted that the nine percent projected departmental cuts were part of the University recurring budget, because the "Barnwell Funds" provided a one-time only guarantee. "So, we are going to allocate back the three percent of those funds and departments will only see a six percent cut." Mr. Stepp suggested that a recent press report which Mr. Bahnmuller may have read "would be misleading in terms of the real numbers. The budget that was adopted has the same impact on the University as that described in the materials mailed to you. They did not suddenly give us more money in the last day or so."
Mrs. Harvey asked whether a "cap" would be placed on tuition and fee increases for the following fiscal years. Dr. Palms commented that the Legislature permitted the University to raise the tuition 10.4 percent for this fiscal year under a special proviso. Mr. Gregory noted that "since another school in the state has raised their tuition considerably more, that may well put us below the average so next year, theoretically, the HEPI index would not apply to this university; this year's increase was limited to the HEPI index plus $125 because we were above the average in our category."
Mr. McLellan anticipated a proviso in the appropriations bill which would limit or prohibit the University from raising tuition. He feared the possibility, in the relatively near future, of the General Assembly's establishing tuition. "In effect, this year, by removing the HEPI, they said we are not going to fund higher education; you do it. And that's the bottom line that has happened here." He commended the administration for exercising restraint and recommending only what was necessary.
Mr. Fennell expressed concern about the future of the fund balance if the University was not in a position to request a tuition increase in the next fiscal year. He noted that this reserve would be reduced $10.5 million leaving approximately one month of reserve funding. Mr. Bugbee responded that a committee had been established to determine various options. "We can't predict what the Legislature will do with HEPI, but we have to be prepared and that's exactly what the committee's task will be during this next year."
Mr. Adams asked Mr. Bugbee to address the nonrecurring "add backs" of $10 million. Mr. Bugbee stated that this amount restored the previous year's performance money in the base budget since funding from resources other than the general appropriations bill had been used. The $10 million "add back" figure required legislative approval. This year, however, "they decided not to fund anything out of supplemental or capital reserves, so it is all in the base. It is a formality the Legislature has to go through."
Mr. Fennell inquired about the budgetary impact of the Koger Center which had endured a yearly financial loss. Mr. Bugbee commented that the administration was reviewing the possibility of a management firm assuming its operation. He further noted that a quasi-endowment fund of $900,000 was available for Koger Center usage. It was hoped that this particular budget would be placed in a position to break even. Chairman Whittle observed that historically this kind of operation in a community normally experienced a $200,0000-$300,000 yearly loss. Pending programmatic changes would hopefully reduce future debt. He addressed the quasi-endowment fund stating that it "was set up and was funded through concession funds and other funds and it was the intent that we would generate a fund large enough so that the income off of that would cover an estimated deficit which we guessed would be between $250,000-$300,000 a year." However, the interest rates had not been at a level to generate the needed funding to cover the initial projected loss. Chairman Whittle stated that further study was needed to determine the most prudent direction for the Koger Center.
Mr. Fennell asked Dr. Palms to discuss the various tuition options which had been considered for this fiscal year. Initially, Dr. Palms noted, the administration had hoped to request a tuition increase which would reflect the HEPI proviso. With a 15 percent projected budget cut, however, following this proviso would have created a serious predicament for the University. Negotiating a 10.4 percent tuition increase compromise resolved the immediate dire budgetary situation. In addition, through Mr. Gregory's legislative assistance, the University would hopefully be in a position to raise tuition in the immediate future. Dr. Palms further expressed concern regarding future tuition increases due to recent actions of other higher education institutions in the state which may create a "backlash."
Responding to Mr. Foster's question about University strategic planning activities, Dr. Odom briefly summarized the objectives of the newly-formed Strategic Directions and Initiatives Committee. The twelve-member committee was composed primarily of senior faculty and staff chosen for their ability to view the University from the perspective of inherent global issues. Dr. Odom indicated that, during the first meeting, a list of issues which had arisen during recent budgetary hearings conducted with the deans had been distributed. He noted that any topic which affected the University should be "on the table" for discussion. The committee would meet regularly with open sessions on the campus so that the entire University community would have the opportunity to participate. "There are a large number of issues that we need to examine." Dr. Odom hoped to submit a report to Dr. Palms with recommendations from the committee by the conclusion of the fall semester.
Dr. Odom also explained that the Washington Advisory Group, composed of very prestigious higher education consultants, would "help us position ourselves to obtain more research funding primarily from national institutions." Chairman Whittle stated that the Washington Advisory Group would be involved on an ongoing basis as "we try to look strategically at what we want. The goals that this Board put together are the bedrock of this strategy of how we get better as a university and how we get better with what looks to be the likelihood of less money."
Mr. Bradley expressed the opinion that the University was better off financially at the present time than initially anticipated three months ago. He commended Dr. Palms for his leadership during this process and the budget planners for presenting "what I think is the best budget I have ever looked at as a member of this Board."
Mr. Hubbard recapped the budget situation noting that the University would receive approximately $13 million less from the state. Mr. Bugbee reminded him that this figure also included the "uncontrollable costs" of fringe benefits, salaries, utilities, etc. The tuition increase of 10.4 percent would generate less than one-half of this amount leaving a $7 million shortfall. Responding to Mr. Hubbard's request for clarification regarding the amount of a tuition increase, Mr. Gregory stated that "the law that is in the appropriations bill that applies to the University of South Carolina at Columbia is that this Board can raise tuition the HEPI price index plus $125 a semester." This law applied to approximately nine schools in the state. Mr. Gregory explained that a tuition "cap" was measured and determined in relation to the pool of four-year schools in the state.
It was determined that the University would probably face approximately $12 million to $15 million additional budget cuts next year as well as the possibility of an absolute HEPI cap placed on a tuition increase which would, in effect, generate less income. Chairman Whittle noted that if "we have another 13 percent in cuts it looks as if it could be dire again next year and I think we need to be proactive as a body in making sure that message gets out there."
Mr. Hubbard believed that next year the University would experience an "incredible downsizing of the programmatic and academic mission" which would ultimately create "a dramatic change and departure from what we have been trying to accomplish." He emphasized the fact that the University had cut $16.2 million from the FY02 budget. Mr. Bugbee cautioned Board members to be aware of the fact that student fees only generated 39 percent of the University's revenue.
Discussion ensued regarding the importance of strategic planning to identify alternative sources of funding rather than relying solely upon state appropriations. Mr. Ford, president of the Student Government Association, assured Board members that students had accepted the tuition increase and would welcome the opportunity to be proactive.
As a final note, Chairman Whittle offered a point of clarification regarding the anticipated nine percent departmental budget cuts. He explained that some of those funds would be returned to various colleges and programs the administration had targeted as vital for ensuring that the University continually moved forward academically. Chairman Whittle noted, for example, that The Darla Moore School of Business would receive $500,000; the College of Engineering and Information Technology would receive $300,000; funding for Academic Leadership and Faculty Retention would receive $326,000; and, the Office of Financial Aid and Admissions would receive $100,000. In addition, some of the funds would be used for institutional costs to "keep the infrastructure of the University up to speed" such as a telephone "switch" system for $1,300,000 and utility rate increases of $1,362,831.
The vote was taken, and the motion to adopt the budget carried. [Exhibit A]
Mr. Staton expressed satisfaction with the progress of the campaign and stated that the total raised during the Bicentennial Campaign had been $345.8 million. He presented additional reports which showed income by source and type of gift received.
Revised Campaign Goals/Priorities: Mr. Staton provided a report about an update of proposed campaign goals and stated that it was a work-in-progress. The Development Office and various deans had worked together to discuss top priorities for the next three years together with the support funds needed to address those priorities. Raising an additional $175 million had been suggested by the deans to provide support for those priorities, but that amount was expected to increase because some schools and colleges had not yet been included in the planning.
The importance of Professorships and Chairs, as well as Area Designated Scholarships had been emphasized. Work would be done in the area of the National Merit Scholarship Program and a strengthening of that program would be accomplished next year.
Dr. McGee reviewed the proposed Athletics Department budget for FY 2001-2002 stating that increased football and baseball ticket sales and the addition of another home football game would increase departmental revenue by 12.09 percent from the previous fiscal year; Gamecock Club contributions would increase by $800,000 reflecting the addition of approximately 1,100 new members; and the Southeastern Conference share of revenue to the University had expanded by $1 million because of the new network TV contractual agreements. The Athletics Department would provide a total of $754,000 for academic scholarships to other University accounts.
In summary, Dr. McGee stated that total revenues for the Athletics Department at the conclusion of FY 2001-2002 could be a figure of $34 million with a surplus of $263,000.
The Committee agreed by consensus that the proposed Athletics Department budget should be forwarded to the Executive Committee for inclusion in the FY 2002 budget.
The following item was approved for recommendation to the Board:
Basketball Ticket Prices 2001-2002: In a memo to President Palms, Dr. McGee requested that the non-conference basketball ticket price of $10 be raised to $13 explaining that the ticket price for conference games during the last two years had been $13.
On behalf of the Intercollegiate Activities Committee, Mr. Lister moved approval of a price increase from $10 to $13 for non-conference basketball tickets as described in the materials distributed for this meeting. Mr. Bahnmuller seconded the motion. The vote was taken, and the motion carried.
Project Status Report:
Beers, the general contractor for the Basketball Arena, had moved on to the site. A sign on the corner of Lincoln and Greene Streets had been erected at the spot which would be the front entrance to the arena. The project was on schedule and the completion date was slated for November, 2002. The contract would allow the contractor to collect a bonus if the project was completed by October 31, 2001.
The Strom Thurmond Fitness/Wellness Center was progressing very well and was on schedule. The completion date was scheduled for the end of 2002, but the center would not officially open until the beginning of 2003.
The Callcott Building was undergoing extensive renovations to accommodate the Department of Geography. Ideal Construction of Columbia was the general contractor for this $2.2 million renovation project. The current project had a total budget of $3 million funded with State Capital Improvement Bonds. Completion of this project was scheduled for January, 2002.
The renovation and preservation of Sloan College, home of the Department of Sociology, had been completed. A ribbon-cutting ceremony had been held in honor of the re-opening of this college on May 24th.
An update on additional projects and the various planning and completion stages for each had been presented. The list included the School of Law; The Norman J. Arnold School of Public Health; the South Campus Housing - Phase III; the Streetscape Project; renovations to Petigru College; a Convocation Center for USC Aiken; an Information Resource Center for USC Spartanburg; the New River Campus Building at USC Beaufort; renovations to Hamilton and LeConte Colleges; and the Medford Library addition at USC Lancaster.
School of Public Health Potential Site:
A site option was being studied for the potential location of the new School of Public Health facility. The chosen location was on the corner of College and Assembly Streets adjacent to the Carolina Plaza. A four-story structure of approximately 70,000 square feet would provide classroom and lab space. Architects were examining the feasibility of the School of Public Health's vacating their current facility and moving into this tower for office space. A parking study had also been conducted. A detailed program statement for the construction phase and a project budget would be presented at a later time.
The following items required consideration by the Board today:
On behalf of the Buildings and Grounds Committee, Mr. Loadholt moved approval of the selection of the Museum Block as the site for the new Law School building. Mr. Hubbard seconded the motion. The vote was taken, and the motion carried.
On behalf of the Buildings and Grounds Committee, Mr. Loadholt moved approval of the establishment of this project with an initial budget of $3 million using Institutional (facilities) Funds as described in the materials distributed for this meeting. Mr. Bradley seconded the motion. The vote was taken, and the motion carried.
On behalf of the Buildings and Grounds Committee, Mr. Loadholt moved approval of the establishment of this project with a budget of $350,000 to be funded with USCS Institution Bonds as described in the materials distributed for this meeting. Mr. Lister seconded the motion. The vote was taken, and the motion carried.
On behalf of the Buildings and Grounds Committee, Mr. Loadholt moved approval of the establishment of this project with a budget of $390,000 to be funded with USCS Institution Bonds as described in the materials distributed for this meeting. Mr. Lister seconded the motion. The vote was taken, and the motion carried.
On behalf of the Buildings and Grounds Committee, Mr. Loadholt moved approval to change the source of funds for this project from USCS Renovation Reserve funds and USCS Institutional Capital Project Funds to USCS Institution Bonds as described in the materials distributed for this meeting. This would result in a project budget of $500,000 funded with USCS Institution Bonds. Mr. Lister seconded the motion. The vote was taken, and the motion carried.
On behalf of the Buildings and Grounds Committee, Mr. Loadholt moved approval of the establishment of this project with a budget of $300,000 with funds provided by the Office of Research as described in the materials distributed for this meeting. Mr. Bahnmuller seconded the motion. The vote was taken, and the motion carried.
On behalf of the Buildings and Grounds Committee, Mr. Loadholt moved approval to increase the project budget by $276,721 funded with Renovation Reserve Funds which would result in a total project budget of $34,876,721 with funding as previously stated and described in the materials distributed for this meeting. Mr. McLellan seconded the motion. The vote was taken, and the motion carried.
After a lengthy discussion, the Fiscal Policy Committee had recommended the Designated Fund Budget for FY 2001-2002 as presented to the Executive Committee. Much of the discussion had involved the history and context for the review of the Designated Fund budget and Committee members had requested that this budget be presented within the context of the overall general budget in the future to improve the process of analysis of it.
The review of the Audit Tracking Report had been notable because there were no outstanding items on it.
The internal audit of Housing had been reviewed and commended because there were no notable findings.
Mr. McCoy presented the annual report on ACC and SEC Endowments for the Committee's information.
The following item had been approved for recommendation to the Board:
Establishment of an Indirect Cost Recovery Funds Quasi-Endowment: Dr. Barber had explained that Board approval of this quasi-endowment would allow the University to accumulate interest which would immediately generate money to assist faculty research. The establishment of the quasi-endowment would allow interest accrued to be captured for use by the University, rather than the money reverting to the general fund of the state.
On behalf of the Fiscal Policy Committee, Mr. Staton moved approval of the establishment of an Indirect Cost Recovery Funds Quasi-Endowment as described in the materials distributed for this meeting. Mr. Bradley seconded the motion. The vote was taken, and the motion carried.
The following individuals would be awarded the title Distinguished Professor during their final year of service. That title would change to Distinguished Professor Emerita effective upon retirement:
The following individuals would be awarded the title Distinguished Professor during their final year of service. That title would change to Distinguished Professor Emeritus effective upon retirement:
The following person would be awarded the title Emerita Professor which would be effective concurrent with her retirement January 15, 2001:
The following person would be awarded the title Emeritus Professor at his retirement:
On behalf of the Academic Affairs and Faculty Liaison Committee, Mr. McLellan moved approval of these honorary faculty titles. Mr. Hubbard seconded the motion. The vote was taken, and the motion carried.
On behalf of the Academic Affairs and Faculty Liaison Committee, Mr. McLellan moved approval to award Dr. Barry Markovsky tenure at the rank of Professor in the Department of Sociology, College of Liberal Arts, effective with his appointment as Professor in the Department of Sociology, College of Liberal Arts. Mr. von Lehe seconded the motion. The vote was taken, and the motion carried.
On behalf of the Academic Affairs and Faculty Liaison Committee, Mr. McLellan moved approval of this program modification as described in the materials distributed for this meeting. Mr. Fennell seconded the motion. The vote was taken, and the motion carried.
On behalf of the Academic Affairs and Faculty Liaison Committee, Mr. McLellan moved approval of this program as described in the materials distributed for this meeting. Mr. Bahnmuller seconded the motion. The vote was taken, and the motion carried.
On behalf of the Academic Affairs and Faculty Liaison Committee, Mr. McLellan moved approval of this program as described in the materials distributed for this meeting. Mr. Loadholt seconded the motion. The vote was taken, and the motion carried.
On behalf of the Academic Affairs and Faculty Liaison Committee, Mr. McLellan moved approval of the mission statement changes as described in the materials distributed for this meeting. Mr. Staton seconded the motion. The vote was taken, and the motion carried.
On behalf of the Academic Affairs and Faculty Liaison Committee, Mr. McLellan moved approval of the proposed changes to the USC Columbia Faculty Manual as described in the materials distributed for this meeting. Mr. Hubbard seconded the motion. The vote was taken, and the motion carried. [Exhibit C]
On behalf of the Academic Affairs and Faculty Liaison Committee, Mr. McLellan moved approval of the proposed changes to the USC Aiken Faculty Manual as described in the materials distributed for this meeting. Mr. Loadholt seconded the motion. The vote was taken, and the motion carried. [Exhibit D]
On behalf of the Academic Affairs and Faculty Liaison Committee, Mr. McLellan moved approval of the proposed changes to the USC Regional Campuses Faculty Manual as described in the materials distributed for this meeting. Mrs. Harvey seconded the motion. The vote was taken, and the motion carried. [Exhibit E]
Mr. McLellan also moved ratification of the honorary degrees presented to Commencement speakers on May 10 and May 12, Ambrose L. Schwallie and Arthur M. Schlesinger, Jr. Mr. Hubbard seconded the motion. The vote was taken, and the motion carried.
In addition, at the Committee meeting of June 14, Dr. Dan Barron had presented information to the Committee regarding USC faculty usage of the Blackboard software and technology which offered University courses via the Internet.
Dr. Odom had summarized enrollment figures for new academic programs which were outlined on an Academic Program Tracking Report; in the future, he would provide updated figures to the Committee on a regular basis. The Committee appreciated the new reporting procedure very much.
Dr. Odom had also disseminated information regarding AAU Membership and Comparative Data. Various graphs of selected academic comparisons had ranked the University of South Carolina with those institutions which had been invited to join the Association of American Universities since 1995.
Mr. Bradley moved approval of the Presidential Candidate Search Committee Bylaws Amendment as presented. Mrs Harvey seconded the motion. The vote was taken, and the motion carried.
I have two items to report. I am pleased to report that Mark Berg from the Department of Chemistry and Biochemistry has been elected as a Fellow of the American Physical Society, from the Division of Chemical Physics. It is one of the elite groups that serves as an index of our progress. If you want to become a member of the National Academy of Sciences, you have to be a fellow first of the American Physical Society or some other appropriate Society. This comes on the heels of Professor Ron DeVore's being named as a Fellow in the American Academy of Arts and Sciences. These elections confirm, as I said, the University's academic progress.
I realize that the Board will address this momentarily. But I want to personally thank Allan Barber and Bob Bugbee for their assistance. It was a privilege to make that call about six months ago and find out that these very capable individuals were available to assist the University. We had a little celebration this morning of their contributions and Bob said he was talking about coming here for one day! These gentlemen are just wonderful professionals with long years of working in the economics of higher education and understanding how higher education is funded, where the revenues come from, and how they are to be dedicated to programs of great importance. They came here and created an atmosphere of cooperation, of good will, of progress and initiative, and we are indelibly obligated to them. They will always have a warm place in the hearts of the Gamecocks. Thank you, again.
Dr. Palms thanked members of the Board of Trustees for "all you have done in the last ten years to make this progress possible. Let's hope the next ten will be equally as productive."
There were no further matters to come before the Board of Trustees, and Chairman Whittle declared the meeting adjourned at 12:35 p.m.
Respectfully submitted,
Thomas L. Stepp
Secretary