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.

1. APPROVAL OF MINUTES: The following eight sets of minutes had been circulated by mail to the Board for review and were presented for approval:
   1. Health Affairs Committee, August 8, 2003
   2. Academic Affairs and Faculty Liaison Committee, August 8, 2003
   3. Buildings and Grounds Committee, August 8, 2003
   4. Executive Committee, August 8, 2003
   5. Board of Trustees, August 8, 2003
   6. Academic Affairs and Faculty Liaison Committee, September 19, 2003
   7. Student-Trustee Liaison Committee, September 19, 2003
   8. Fiscal Policy Committee, October 2, 2003
      There were no additions, deletions, or corrections to the minutes; therefore, they stood approved as distributed.
      
      
2. COMMITTEE REPORTS:
   1. Academic Affairs and Faculty Liaison Committee:
      (The Honorable Robert N. McLellan reported)

      The following personnel matters had received all appropriate academic and administrative approvals and had been presented to the September 19, 2003, Academic Affairs and Faculty Liaison Committee and to the full Board in Executive Session without objection.

      1. Honorary Faculty Titles: Ten requests for honorary faculty titles had been mailed with the materials for this meeting. 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 with their retirement:
         1. Dr. Diana Clary
         2. Dr. Barbara Hasting
         
         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 with their retirement:
      1. Dr. John Adams
      2. Dr. Daniel Codespoti
      3. Dr. Edwin Jones
      
      The following individuals would be awarded the title Distinguished Professor during their final year of service. That title changed to Distinguished Professor Emeritus concurrent with their retirement:
      1. Dr. Bruce Dunlap
      2. Dr. Brian Fry

      
      The following individual would be awarded the title Emerita Professor concurrent with her retirement:

      Professor Phyllis Kathryn Hicks

      The following individual would be awarded the title Emeritus Professor effective with his retirement:

      Dr. Reid Montgomery

      The following individual would be awarded the title Librarian Emeritus concurrent with his retirement:

      Mr. Homer Walton

      On behalf of the Academic Affairs and Faculty Liaison Committee, Mr. McLellan moved approval of these ten honorary faculty titles. Mr. von Lehe seconded the motion. The vote was taken, and the motion carried.

      2. Appointment with Tenure: The following request for an appointment with tenure had received all appropriate approvals and had been presented to the Committee and to the Board in Executive Session without objection:
         - Dr. Particia Cooper Hoel would be awarded tenure at the rank of Professor at USC Beaufort effective with her appointment as Professor at USC Beaufort.
         
         On behalf of the Academic Affairs and Faculty Liaison Committee, Mr. McLellan moved approval of Dr. Hoel's appointment with tenure at USC Beaufort as described in the materials distributed for this meeting. Mr. Foster seconded the motion. The vote was taken, and the motion carried.
         
         
      3. Transfer of Academic Appointment with Tenure and Title Change: A request to transfer the academic appointment with tenure and title change for Dr. Julian Green had been mailed with the materials for this meeting. Dr. Green's academic appointment with tenure would be transferred from the USC Spartanburg Library to the Division of Natural Sciences and Engineering; his title would also be changed from Librarian to Professor.
         
         On behalf of the Academic Affairs and Faculty Liaison Committee, Mr. McLellan moved approval of Dr. Julius Green's transfer of academic appointment with tenure and title change as presented. Mr. Loadholt seconded the motion. The vote was taken, and the motion carried.
         
         
      4. Change in Name of Program and Major: Technology Support and Training Management, College of Hospitality, Retail and Sport Management: The College of Hospitality, Retail, and Sport Management had requested a change in name of a program and major from Administrative Management Information to Technology Support and Training Management. This request had received all appropriate academic and administrative approvals.
         
         On behalf of the Academic Affairs and Faculty Liaison Committee, Mr. McLellan moved approval of this change in name of program and major as described in the materials distributed for the meeting. Mr. Shuford seconded the motion. The vote was taken, and the motion carried.
         
         
      5. Center Name Change: Center for the Management of Risk Behaviors, College of Liberal Arts: The College of Liberal Arts had requested that the name of the Center for the Study of Suicide and Life Threatening Behavior be changed to the Center for the Management of Risk Behaviors and that the reporting line be moved from the Department of Sociology to the Department of Criminology and Criminal Justice. This request had received all appropriate academic and administrative approvals.
         
         On behalf of the Academic Affairs and Faculty Liaison Committee, Mr. McLellan moved approval of this name change and change of reporting line as described in the materials distributed for this meeting. Mr. Bahnmuller seconded the motion. The vote was taken, and the motion carried.
         
         
      6. Name Change: USC Salkehatchie Leadership Institute: USC Salkehatchie had requested that the name of the USC Salkehatchie Leadership Center be changed to the USC Salkehatchie Leadership Institute. This request had received all appropriate academic and administrative approvals.
         
         On behalf of the Academic Affairs and Faculty Liaison Committee, Mr. McLellan moved approval of the name change for the USC Salkehatchie Leadership Institute as described in the materials distributed for this meeting. Mr. Warr seconded the motion. The vote was taken, and the motion carried.
         
         
      7. Bachelor of Arts in Music Education, USC Aiken: USC Aiken had requested the establishment of a Bachelor of Arts in Music Education. This program had received all appropriate academic and administrative approvals.
         
         On behalf of the Academic Affairs and Faculty Liaison Committee, Mr. McLellan moved approval of the establishment of the Bachelor of Arts in Music Education at USC Aiken as described in the materials distributed for this meeting. Mr. Staton seconded the motion. The vote was taken, and the motion carried.
         
         
      8. Program Modification: Master of Arts in Criminology and Criminal Justice, College of Liberal Arts: The College of Liberal Arts had requested a program modification for the existing Master of Criminal Justice to become the Master of Arts with a Major in Criminology and Criminal Justice to reflect the recent merger of the Criminal Justice college into the College of Liberal Arts as a department. This program modification had received all appropriate academic and administrative approvals.
         
         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 the meeting. Mr. Wienges seconded the motion. The vote was taken, and the motion carried.
         
         
      9. USC Aiken Faculty Manual Changes: Two USC Aiken Faculty Manual changes had been omitted for consideration during the June meeting. They had been forwarded at this time for consideration and had received all appropriate academic and administrative approvals.
         
         On behalf of the Academic Affairs and Faculty Liaison Committee, Mr. McLellan moved approval of the USC Aiken Faculty Manual changes as described in the materials distributed for this meeting. Mr. Loadholt seconded the motion. The vote was taken, and the motion carried. [Exhibit A]
         
         
      10. USC Columbia Faculty Manual Changes: USC Columbia had requested approval of Paragraphs 1-4 in the section entitled "Tenure and Promotion In Cases of Reorganization Proposal" of the USC Columbia Faculty Manual. This request had received all appropriate academic and administrative approval.
          
          On behalf of the Academic Affairs and Faculty Liaison Committee, Mr. McLellan moved approval of the USC Columbia Faculty Manual changes as described in the materials distributed for this meeting. Mr. Lister seconded the motion. The vote was taken, and the motion carried. [Exhibit B]
          
          During the September 19 meeting, Dr. Chris Plyler had presented a report about the formation of Palmetto College which was proposed to offer certain baccalaureate degrees to the two-year campuses through distance education.
          
          At the meeting earlier today, the Committee heard a report from President Sorensen about creating a new College of Arts and Sciences at USC Columbia.
          
          

      2. Student-Trustee Liaison Committee:
         (The Honorable James A. Shuford, III reported)

         During the September 19, 2003, Student-Trustee Liaison Committee meeting, the Director of International Programs at the Columbia campus, Ms. Pat Willer, presented a report about international students at the University and the new reporting regulations since "9/11."
         
         The largest international student enrollments at the University were in Engineering and Information Technology; Business; and Science and Mathematics. Based on 2002 data and consistent with national trends, approximately 40 percent of international students came from India, China, and South Korea.
         The International Programs for Students had contributed to the University in several ways: graduate students provided support for the institutional research mission, brought an international dimension to academic programs and campus life, and provided diversity not otherwise available in South Carolina. It was estimated that the program contributed more than $65 million to the economic welfare of this state.
         
         Since 1948, the United States had experienced a continual increase in the number of international students coming into the country. However, since "9/11," there had been a 27 percent decline in the number of applications approved for visas and 63,000 fewer students.
         
         Katie Dreiling, President of the Columbia campus student body, reported on the cooperation among student government association presidents to promote higher education, particularly in light of budget cuts and rising tuition. Ms. Dreiling commented that everyone had expressed an interest in collaborating and establishing a statewide Student Government Association which would connect all of the state institutions together. A meeting had been scheduled for February 2004; topics for discussion would include: creating a foundation and framework for an alliance; opening up the lines of communication among all of the state institutions; and formulating mechanisms for launching the "South Carolina Student Leaders Alliance."
         
         Ms. Dreiling believed that the formation of a statewide program was a positive step toward giving students a voice. She stressed the importance of unity among Columbia and the regional campuses.
         
         The Committee also heard reports from the various campus representatives highlighting successes and challenges at each institution. The Committee had asked campus representatives to deal with more significant issues and challenges facing each campus than had been the case in the past.

      3. Executive Committee:
         (The Honorable Herbert C. Adams reported)

         The Executive Committee met on October 7 and earlier today. During the October 7 meeting, the Executive Committee approved a contract with Colonial Life Insurance to rename the Carolina Center the "Colonial Center."
         
         During the meeting earlier today, the Executive Committee approved a contract with JDA Software Group, Inc.
         
         A Capital Financing Plan for Deferred Maintenance was given conditional approval and will be further dealt with by the Board in December. The Committee approved the plan in principle with the understanding that a refined plan, with the specific projects to be included, will be presented for approval to the Board of Trustees in December. Three projects were recommended for action today by the Buildings and Grounds Committee to the Board of Trustees.

      4. Buildings and Grounds Committee:
         (The Honorable Miles Loadholt reported)

         The Buildings and Grounds Committee met on Thursday, October 2, 2003, and heard the following report:

         1. West Energy Boiler and Tank Replacement (Administrative Approval):
            Mr. Jeffcoat reported that administrative approval had been received to increase the West Energy Boiler project budget by $45,000. The total project budget was now $522,000. This report was received for information.
            
            The following agenda items required Board action:
            
            
         2. Arnold School of Public Health - Asbestos Project Funding: Mr. Jeffcoat reported that the Arnold School of Public Health project had been originally approved by the Board in August 2002 with a budget of $26,500,000. Part of the construction would involve the renovation of a portion of the Carolina Plaza. Mr. Jeffcoat requested a $350,000 budget increase to fund the removal of asbestos.
            
            On behalf of the Buildings and Grounds Committee, Mr. Loadholt moved to establish a project for the removal of asbestos in the Carolina Plaza. The $350,000 would be funded from the Asbestos Trust Fund and would result in a total project budget of $26,850,000. Dr. Floyd seconded the motion. The vote was taken, and the motion carried.
            
            
         3. Columbia Hall Renovation Project: Mr. Jeffcoat reported that University Housing had requested renovations to Columbia Hall. The project would include interior finishes, upgrades to floor finishes, mechanical and electrical system replacements, fire safety equipment, and other general renovations. The current project budget was $4.6 million.
            
            On behalf of the Buildings and Grounds Committee, Mr. Loadholt moved to establish a project for general renovations to Columbia Hall. The total project budget was $4.6 million and would be funded with Housing Maintenance Reserve Funds. Mr. Buyck seconded the motion. The vote was taken, and the motion carried.
            
            
         4. Sale of Pendleton Street Properties: The administration had requested permission to move forward with the sale of two parcels of land (1707 Pendleton Street and 1719 Pendleton Street). The first parcel (1707 Pendleton Street) was a vacant lot with approximately 45 parking spaces; it was appraised at $249,000. This property would eventually house the cottage which was currently located at 1629 Pendleton Street and the package would become a lot and a residence. The parcel located at 1719 Pendleton was 14,500 square feet and was appraised at $206,000.
            
            The reason for selling the parcels was twofold: 1) the 1994 Capital Master Plan had recommended that the University return these parcels of land to the private sector; and, 2) in conjunction with the possibility of building a University Inn on the site across from the National Advocacy Center, the University had made an agreement with the Neighborhood Association that the University would comply with the recommendations of the Master Plan.
            
            On behalf of the Buildings and Grounds Committee, Mr. Loadholt moved to sell two parcels of land currently owned by the University at 1707 Pendleton Street and 1719 Pendleton Street. The term "sale" also encompassed the exchange of property of equal value which the University would find beneficial to its uses.
            
            It was a condition of this motion that the sale of these properties will follow state procedures; the sale price will not be less than the appraised value of the parcels as defined during the meeting. The sale of 1707 Pendleton Street would include a 1,676 square foot structure to be relocated from 1629 Pendleton Street. It was a further condition of this motion that the sale of these properties will not be authorized until the University's Foundations had received all regulatory approvals for and construction had begun on the proposed Inn at USC. Dr. Floyd seconded the motion.
            
            Responding to Dr. Floyd's inquiry about the use of the money from the sale of the properties, Mr. Kelly explained that Mr. Buyck had recommended that the University either sell the property for cash or exchange it for land of equal value. Dr. Floyd requested that any money generated from the sale of these properties be used for acquiring other land.
            
            Mr. Kelly further clarified that the University had agreed to do the following in order to obtain the Neighborhood Association's support of the construction of the University Inn: (1) sell these two lots plus 1819 Pendleton Street; and, (2) move the Senate Street Garage entrance from Henderson Street to Pickens Street. Under consideration was the possibility of using the money to relocate those University offices affected by the sale into renovated property and to finance the relocation of the garage entrance.
            
            Secretary Stepp assured the Board that the minutes will reflect Dr. Floyd's strong preference for using the proceeds from the sale of these properties to purchase land.
            
            The vote was taken, and the motion carried.
            
            
         5. Sumwalt College NanoCenter Renovation: Mr. Jeffcoat reported that the Board had originally approved a project budget of $1,645,000 to establish the NanoScience Center on the ground floor of the Sumwalt facility. That project scope included the creation of eight unfinished laboratories spaces with the idea that the laboratories would be customized for each researcher. This particular project was estimated to cost $200,620.
            
            On behalf of the Buildings and Grounds Committee, Mr. Loadholt moved to increase the Sumwalt College NanoCenter Renovation Project budget by $200,620 to complete one of the eight unfinished laboratory spaces. The total project budget of $1,645,000 will be funded from appropriated state funds and $200,620 from departmental research funds. Mr. Foster seconded the motion. The vote was taken, and the motion carried.
            
            
         6. Close Building Roof Replacement: The administration had requested $48,200 to complete the Close Building Roof Replacement project. The increase was necessary to cover unanticipated costs incurred due to the height of the roof and the lack of access to the roof.
            
            On behalf of the Buildings and Grounds Committee, Mr. Loadholt moved to increase the Close Building Roof Replacement project budget by $48,200. The total project budget will be $303,200 to be funded with Renovation Reserve Funds. Ms. Moore seconded the motion. Mr. Jeffcoat indicated that he will investigate whether the current roof carried any remaining warranty. The vote was taken, and the motion carried.
            
            
         7. USC Spartanburg:
            1. Health Education Complex Project: Mr. Jeffcoat reported that USC Spartanburg had requested approval of the initial phase of a $23 million project to design a new Health Education Complex. This facility would consolidate the School of Nursing, the School of Education, a Wellness and Fitness Center, and other related programs. The estimated cost for Phase I of this project was $475,000 funded with USC Spartanburg Institutional Capital Project Funds.
               
               On behalf of the Buildings and Grounds Committee, Mr. Loadholt moved to establish the first stage of a project to plan and construct a new facility at USC Spartanburg to house the School of Nursing, the School of Education and a Wellness and Fitness Center. The project budget of $475,000 will be used to hire consultants to refine program requirements, to complete the design/development stage, and to develop detailed project estimates. The project will be funded with USC Spartanburg Institutional Capital Project Funds as described in the materials distributed for this meeting. Mr. Staton seconded the motion. The vote was taken, and the motion carried.
               
               
            2. Humanities and Performing Arts Center Theater Lighting and Sound Systems: Mr. Jeffcoat reported that this was a project request for maintenance work at the USC Spartanburg Humanities and Performing Arts Center. These facilities had a very sophisticated sound and lighting system which was no longer reliable. A study had been conducted and the engineering firm had recommended installation of new controls, new lighting instruments and new circuits to support those instruments. The project will be completed in two phases and this phase of the work was projected to cost $450,000 with a total project budget of $730,000.
               
               On behalf of the Buildings and Grounds Committee, Mr. Loadholt moved to establish Phase I of a project to repair and renovate the USC Spartanburg Humanities and Performing Arts Center Theater for a budget of $450,000 funded by USC Spartanburg Institutional Capital Project Funds. Mr. Lister seconded the motion. The vote was taken, and the motion carried.
               
               The Buildings and Grounds Committee also met earlier today and heard the following three reports on projects related to Capital Financing for Deferred Maintenance.
               
               
         8. Projects Related to Capital financing for Deferred Maintenance:
            1. Energy Master Plan Performance RFP: The administration was requesting authorization to issue a Request for Proposal (RFP) to seek an energy services firm to implement a multi-year performance contract for the Columbia campus.
               
               On behalf of the Buildings and Grounds Committee, Mr. Loadholt moved approval to begin the RFP procedure in accordance with State Procurement regulations to seek an energy services firm to implement a multi-year performance contract for the Columbia campus. Mr. Bradley seconded the motion. The vote was taken, and the motion carried.
               
               
            2. Parking Garage: The administration had requested, and the Committee had approved a project for the construction of a 1,000 space parking garage on the site adjacent to the existing Bull Street Garage with a budget of $11 million to be funded with University Funds as presented in the Three Year Capital Plan.
               
               On behalf of the Buildings and Grounds Committee, Mr. Loadholt moved to establish a project for the construction of a new 900 to 1,000 space parking garage on the site adjacent to the existing Bull Street Garage facing Blossom Street with a budget of $11 million funded with University Funds as presented in the Three Year Capital Plan, with the understanding that a comprehensive parking fee restructuring will be reviewed by the Board in June 2004, when fees were customarily approved. As amended during the Buildings and Grounds Committee consideration of this agenda item earlier today, Secretary Stepp requested the addition of the following words to this motion: "and that the garage will be fully funded with parking fees." Mr. Lister seconded the motion. The vote was taken, and the motion carried.
               
               
            3. Koger Center Maintenance and Renovation: On behalf of the administration, Mr. Kelly was requesting a project for renovations to the Koger Center to address maintenance needs with a budget of $1.2 million funded with University Funds as presented in the Three Year Capital Plan.
               On behalf of the Buildings and Grounds Committee, Mr. Loadholt moved to establish a project to renovate the Koger Center including replacement of the roof, mechanical modifications to correct temperature control problems, installation of new piping and pumps, carpet replacement and painting, with a budget of $1.2 million funded with University Funds as presented in the Three Year Capital Plan and as discussed before the Executive Committee earlier today. Mr. Shuford seconded the motion. The vote was taken, and the motion carried.
               
               
      5. Fiscal Policy Committee:
         (The Honorable Othniel H. Wienges, Jr. reported)
         
         

         The Fiscal Policy Committee met on Thursday, October 2, 2003.
         
         Mr. McCoy advised the Committee that four audits remained on the tracking report, two of which were more than six months old. The General Counsel was attempting to collect outstanding travel advances still owed the University from two former Athletics' Department employees. It was anticipated that problems resulting from the Department of Archaeology audit will be resolved in the near future because a new business manager had been hired.
         
         One of the more recent tracking report findings had recommended that the Department of Human Resources establish an employee background screening policy; appropriate meetings will be scheduled to discuss the formulation of this policy. The other finding concerned the USC Spartanburg Child Development Center; USC Spartanburg will present a proposal to the Board of Trustees next year to eliminate the deficit in this area.
         
         Mr. McCoy also reviewed the following four audits: Law School; USC Salkehatchie; Payroll; and Student Health Center. None of the audits had revealed significant findings.
         
         As a result of the Payroll Department audit, it was recommended that the University consider the adoption of a direct deposit system for all employee payroll checks. A direct deposit system would hopefully eliminate the necessity for printing pay stubs; this information could be distributed via e-mail instead.
         Dean Faulkner reported on the School of Medicine Educational Trust Audit. He was pleased to announce that the recently conducted audit had revealed no major problems.

      6. Health Affairs Committee:
         (The Honorable John C. von Lehe, Jr. reported)

         The Health Affairs Committee met on Thursday, October 2, 2003.
         

         Dean Sadik presented a report on the College of Pharmacy. He explained that the six-year Doctorate of Pharmacy (PharmD) program was established in 1996. Since that beginning, the College of Pharmacy had graduated more than 7,000 pharmacists. Most of these individuals (80 percent were female) found employment in the state. Dean Sadik noted that the beginning salary range was substantial.

         A recent study conducted by the American Association of Colleges of Pharmacy had projected a national shortage of 157,000 pharmacists by the year 2020. Factors influencing this number included aging population, increasing use of pharmaceuticals, increasing complexity of medications, and growing national concern about medication errors.
         

         During the past 5½ years, the college's budget had been streamlined and revenues had increased because the College offered a Continuing Education program, maximized summer school offerings, increased enrollment, and slightly increased student fees. This revenue was used to hire a budget manager, a Director of Development, and an Information Technology Officer; to renovate the space occupied by the College of Pharmacy in the Coker Life Science Building; to establish research labs to provide start-up funding for new faculty; to purchase state-of-the-art equipment; and to hire 5 new research oriented faculty.
         

         Future goals for the College of Pharmacy included tripling federal funding support in 5 years, increasing the number of students enrolled in the professional program from the current number of 80 to 125 in 3 years, enhancing fund raising efforts, and doubling the revenue generated from Continuing Education programs.
         

         Dr. Russ Pate, Associate Dean for Research in the Arnold School of Public Health, reported on the status of the biomedical research initiative at the University. Approximately one year ago, Dr. Harris Pastides, as Interim Vice President for Research, had asked him and Dr. John Baynes of the College of Science and Mathematics to coordinate a biomedical research effort at the University. The primary goal was to make recommendations which, if implemented, will hopefully have the effect of markedly increasing the University's research productivity in areas related to human health.
         

         A steering committee composed of the University's most outstanding biomedical scientists was formed. The committee had been charged with the responsibility of identifying special opportunities and making recommendations which will increase extramural funding of biomedical research.
         

         During the previous three months, the steering committee had met with Provost Odom, Dr. Pastides, and the deans of the eight major biomedical units to outline goals and to discuss objectives. The committee had also met with other administrators whose area of responsibility could potentially impact biomedical research activities.
         

         Working groups will continue to meet through October with recommendations due to the steering committee in early November. The steering committee will then prepare a comprehensive report of the biomedical research strengths and weaknesses at the University for submission to the Interim Vice President for Research in December.

3. ALUMNI ASSOCIATION REPORT: Chairman Adams recognized Mr. Shuford who commented that Homecoming was scheduled for the weekend of October 23-24. The Annual Awards Banquet will be held on Friday evening. The traditional Tea Dance, hosted this year by the Moore School of Business and the Alumni Association, was scheduled for 4:00 p.m. on Saturday; a large attendance was anticipated because of the combination of the two sponsors.
   Mr. Shuford thanked President Sorensen for his presence at the Washington, D.C. alumni reception two weeks ago; approximately 100 individuals had attended this event.
   
   On October 28 the Horry-Georgetown Alumni Club will be meeting; Mr. Shuford encouraged those Board members who lived in the area to come.
   
   
4. REPORT FROM CHANCELLOR STOCKWELL: Chairman Adams called on Chancellor Stockwell who presented the following report on USC Spartanburg:

   In October 1995, this board approved a revised ten-year master plan for USC Spartanburg. Since that date, with minor changes we have rigorously pursued its development.

   We have also pursued institutional development; and because the opportunity to address the Board comes rarely, I want to outline that development, then return to the master plan.

   Institutional Development 1995-2003

   From 1995 to 2003, USCS has led the State's teaching sector universities in FTE growth. This fall, 4,500 students are enrolled.
   
   Ours is not growth for its own sake. It is the right kind of growth for the right reasons. Our headcount has increased by 32 percent, while FTE has increased by 51 percent. In 1995, most students were part-time; the large majority now are full-time, eighteen-to-twenty-two years old. Freshman class numbers have nearly doubled; so, too, have applications for admission. More importantly, our ratio of acceptances-to-applications has dropped by a third, underscoring an increasing selectivity in enrollment. SAT averages among incoming freshmen have increased from 849 to 1,000; high school averages from 2.7 to 3.4. Scholarship investments have taken a huge leap with lottery-funded scholarships making up 76 percent of our current scholarship pool.
   
   Some of our growth has come as a consequence of unique, mission driven curriculum development ... for example: the only undergraduate graphic design major in the state; a cross-disciplinary major in information management and systems; an undergraduate program in non-profit administration; a digital controls orientation in our computer science major enabled by a high-end robotics lab donated by the Staubli Corporation.
   
   We are very aggressive participants in the University Center of Greenville, a consortium of seven institutions. We are, in fact, the largest participant as should be the case, given our "metropolitan mission" across the I-85 corridor. At the undergraduate level, we dominate the Center. Since 1995, our fall semester credit hour production at the UCG has grown from 450 to 3,000. Building on transfer agreements with Greenville Technical College, our faculty deliver numerous baccalaureate completion programs, with plans to add more in the coming year.
   
   In speaking about growth, I also must speak about parity in operations funding among teaching sector institutions. During the years from 1995 to the present - with the exception of one base allocation adjustment across institutions in 1997 that did not advantage USCS, given static enrollments in the previous decade - there have been no state funding adjustments among teaching sector institutions addressing growth or decline. Consequently, a profound inequity has emerged and compounded. USCS receives only 32.7 percent of the MRR (Mission Resource Requirements) funding formula annually. By contrast, for example, The Citadel, South Carolina State and Frances Marion receive 59 percent, 54 percent and 47 percent respectively. This chart illustrates the funding discrepancies, given the current distribution of operating dollars against what would be the case if the MRR were applied consistent with enrollments. Look, for example, at Francis Marion, with declining enrollments, receiving this year over $1.25 million more than justified by the MRR funding formula, normed for state resources currently distributed across teaching sector institutions ... and USCS with 1,398 more students, receiving $3,147,000 less.
   
   Again, our growth is the right kind of growth. It has come by serving the real needs of the region. In the context of significant qualitative improvements since 1995, minority percentages have increased from 16 percent to 32 percent, reflecting the diversity of the state we serve. Further, 93 percent of our students are South Carolinians. Some institutions serve student bodies with 40-50 percent out-of-state residents. The gap in state funding per in-state student across institutions is astonishing. South Carolina residents attending USCS are overcharged and underfunded, their tuition having doubled over ten years to cover gaps created by a misapplied MRR.
   
   USCS is growing for the right reasons. Our USC affiliation seems to me to demand, at minimum, funding parity with other teaching sector institutions.

Master Plan Development

Since presenting the master plan to you in Fall 95, we have learned the true costs in time and money of planning and assembling resources and construction. Currently, however, we are experiencing a progression in project development that I can only describe as geometric.

In 1995, we opened the Campus Life Center, designed to cost $12M, but for which we could secure only $4M in state capital improvement bonds, and to which we added $3M bonded against our auxiliary revenues. Too small before it opened, you have recently approved a $5M addition, which, having paid off our previous bond, is currently in design with construction to begin this spring.

In 1996, we designed and built a $2M two-story expansion of the Hodge Center to retrofit athletics facilities and to create labs and classrooms for Math and Computer Science.

In that same year, we partnered with Spartanburg County to fund five soccer fields for our use and for use by weekend recreational and County youth soccer. As our trade-off for maintaining these fields for public use, the County funded our soccer stadium at a cost of about one million dollars. It is one of the finest nationally in Division II - fitting for a soccer program with men ranked second in the nation this week.

We are meeting today in The University/Readiness Center, an $8 million partnership with no capital costs to the University except the provision of property, yet providing us very substantial benefits: classrooms, a hospitality suite, a ballroom seating 400 managed by our special events staff for community and campus activities, and the atrium where we gathered for lunch. On the floor below are facilities to support soccer and other outdoor athletics venues: locker rooms, officials' dressing rooms, and concessions facilities. As you know, the South Carolina Army National Guard occupies administrative quarters in the southeast quadrant of the building, taking over the entire facility one weekend a month and two weeks in the summer. Opened this fall, it is a first-of-its-kind partnership in the nation.

This building is the center of gravity for the Lewis P. Howell Athletics Complex, which you approved in 1998 at $5M, and which we have nearly completed in the years since, at a million dollar cost underun, employing private gifts, partnerships with the County and the Guard, renovation/reserve funds and limited institutional bonding capital. Here is the tennis complex, now six courts in number, to be expanded to twelve by the end of this year. Men's Tennis finished last year ranked 6th in the nation. This February, the Cleveland Harley Baseball Stadium will open for play, and our best-in-class and privately funded softball complex has been in play for two years now.

Six years ago, you approved purchase of the privately developed University Commons Apartments, which we bonded to cover full costs of operation and long-term maintenance, and for which we have had waiting lists since the day of acquisition. Last fall, you approved the privately constructed, university managed residential life complex, phase I of which will open this January, housing 350 students at a cost, including financing, of $15M. It is an exceptional facility with a mix of single and double occupancy, learning centers, computer labs, housing offices and social facilities on the ground level serving the new facility and the University Commons.

As the University has grown, we find ourselves in desperate need of more academic space. As you can see, our useable square footage per FTE is the smallest among teaching institutions and, over the thirty-five year history of CIB funding, USCS has received the least among these universities.

The Board laughed at Building 976 when we showed you this picture in February, as we presented plans for the renovation of this old maintenance building at a cost of $350,000. We've turned a sow's ear into a silk purse with this fall's opening of the Visual Arts Center housing studio arts and graphic design.

Our three hundred acre campus was acquired small farm by small farm over the past four decades. We've kept the Smith Farm House and its dooryard as a monument to the families who lived here. It houses our Office of Special Events, responsible for supporting hundreds of regional activities we host every year on this metropolitan university campus.

There are much bigger projects than these on the horizon, two in particular in our immediate future. In order to put them in context, however, I must take you back to the master plan and the highway infrastructure project currently under construction, a project destined to reshape our entire campus.

Ten years ago, I spoke with every audience I could find about the dysfunctional highway systems that surround the University. Ideally located a quarter mile east of the I-85 corridor, with Business 85 and Milliken's corporate headquarters to our immediate east, the campus itself is difficult to access, given criss-crossing slip ramps, frontage roads, and the old agricultural tunnels through which move thousands of cars a day.
Partnering with neighboring property owners, we pushed for a stoplight-controlled intersection at the front of the campus, allowing traffic to enter and exit directly off I-585, the front door to the City of Spartanburg. A $4M project, we were successful in securing the County's agreement and funding. On further examination, however, community leaders and I grew increasingly interested in the economic development opportunity surrounding the campus, and less interested in interrupting the flow of traffic from I-85 into the City by a stoplight-controlled intersection. A bigger agenda began to emerge: one that would open up surrounding property for significant corporate development. We worked in partnership with the Chamber and others, though, at the time, the weight of our ambitions seemed more likely to crush the project than advance it. With timing everything, however, the State Infrastructure Bank had just emerged as a means of bonding major bridge and highway projects in South Carolina. One of the first projects funded was the so-called "Upstate Grid," requiring the investment of $330M in access developments across Greenville and Spartanburg Counties serving I-85. Between fifty and sixty million dollars was carved out for the USCS project.

We are meeting today in the new Readiness Center at the north end of the campus. The Administration Building, the only building that the public sees as it drives by on I-585, is at the south end of the master plan. The first section of the new infrastructure connects the campus with Milliken's corporate headquarters off Business 85, a half-mile stretch of streetscape, carved through forest and rock that, when completed next month, will ease the traffic burden entering the campus from the south. Also under construction is the four-lane boundary boulevard sweeping around the east side and serving as "main street," facing the campus on its west side and a corporate park and commercial village planned for the east.

In January, the Department of Transportation will break ground on the major component of the project: the elevation of I-585 across the front of the campus, creating a new limited access intersection sweeping underneath and onto the east boundary boulevard, new frontage streetscapes, and an expanded intersection on the west side of the campus.

Phase 1, the Milliken connection and the east boundary boulevard, are under construction at the present time. This slide rotates the view from the vantage point of the building in which we are meeting today.

By summer 2005, most traffic will enter off I-585 onto the tree-lined and medianed east side boulevard, around a water feature, onto the new main entrance. Entering from this direction, one looks down the long parallel lines of nutall oak trees framing the new north quadrangle of the campus ... the future of the University.

At the new entrance to the campus will sit the Information Resources Complex, housing the new library at the heart of the campus' academic core. It has been on our horizon the longest, yet it is not likely to be the next accomplished. In 1999 and in 2001, bond bills were approved funding design and site preparation. We cannot move forward, however, until a third bond bill grants the balance of funds. When completed, our current library will be free for much-needed classroom reassignment.

The second new academic building will be built sooner. In fact, you approved our movement on architectural selection earlier today. The Health Education Complex will be built largely through our own institutional bonding capacity, plus some private money and perhaps a federal earmark. It will anchor the opposite end of the new north quad.

A significant academic complex, given its dominant location at the highest point of the campus, we envision over 100,000 square feet of useable space. The complex will include the School of Nursing and other academic facilities, a health education research and outreach partnership, a fitness center, and, perhaps, the child development center. Each of these entities has its distinct agenda but, co-located, they will generate significant synergies in wellness research, education and outreach.

Bisecting the new north quad is the Susan Jacobs Arboretum, the evolving product of a recent one million dollar gift from Susan and Henry Jacobs that will beautifully define the center of campus for decades to come, with its bridge and waterway, its twin lines of oaks, its amphitheater, graceful pathways, bog garden, groves and native species.

Conclusion

In concluding, I have two urgent desires, both of which President Sorensen has actively supported. I want to see operations budgets rebalanced among the ten comprehensive universities. I am not seeking more money for the teaching sector. I do believe, however, that fair treatment of South Carolina's students here at USCS demands that formula funding of USCS at least equal that of Frances Marion University or Lander University. And we need the Board's help in seeing to it.

Second, help USCS catch up on capital improvement bond funding. Our new library, mandated by SACS accreditation, is our most pressing necessity. Our 4,500 students are no less deserving than those of other institutions around the state - even smaller institutions - with a history of far more generous capital improvement bond funding and much higher levels of MRR funding.

Thank you.

Chairman Adams thanked Dr. Stockwell for the report and praised his leadership as Chancellor of USC Spartanburg. The Board of Trustees extended a warm round of applause.

5. REPORT OF THE PRESIDENT: Chairman Adams recognized President Sorensen who echoed the sentiments regarding Chancellor Stockwell's leadership. He complimented Dr. Stockwell's vision of the synergy between the architecture and the terrain of the campus and the academic mission of the University. President Sorensen applauded the innovative partnership between the University and the National Guard which had led to the construction of the building in which today's meetings were held.
   
   In addition, President Sorensen commented that Chancellor Stockwell had been selected as chair of the recently-formed "College Town Consortium," composed of the presidents of the six colleges and universities in the Spartanburg area. "There is no higher praise than being selected by one's peers as a leader."
   
   And, President Sorensen saluted Chancellor Stockwell's persistence and unwavering tenacity toward his goal of funding parity for USC Spartanburg.
   On October 21 at 11:00 a.m., a groundbreaking ceremony was scheduled in the Carolina Plaza parking lot - site for the construction of the first Research Campus structure, an 89,000 square foot Public Health building. Deputy Secretary Charles E. McQueary of the Department of Homeland Security will be the main speaker. President Sorensen noted that the University's School of Public Health was one of 19 centers selected by the Department of Health and Human Services' Centers for Disease Control for bio defense preparedness and one of only 3 executive institutes for bio defense and bio preparedness.
   President Sorensen encouraged everyone to participate in a brief tour of the USC Spartanburg campus following this meeting. He thanked Chancellor Stockwell and his staff for their hospitality today.
   
   And, finally, a conflict of interest policy had been distributed to all of the Board members at their places. President Sorensen asked them to complete the form if they had received a gift valued in excess of $100 as a result of their Board of Trustees' membership.
   
   Dr. Floyd inquired about the status of his August 8 request to review the Law School admissions processes and subsequently to report its findings in Executive Session to the Board; to date, no information had been forwarded to him. Provost Odom indicated that he planned to meet the following week with the Interim Dean of Admissions at the Law School, Dr. David Rembert, to discuss this request. President Sorensen asked Provost Odom to update him and Dr. Floyd about the outcome of the meeting.

Since there were no other matters to come before the Board of Trustees, Chairman Adams declared the meeting adjourned at 4:40 p.m.