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.

The Board of Trustees of the University of South Carolina met on Tuesday, June 24, 1997, at 1:00 p.m. in the Ballroom of the Russell House.

Members present were: Mr. William C. Hubbard, Chairman; Mr. Mack I. Whittle, Jr., Vice Chairman; Dr. C. Edward Floyd, Chairman Emeritus; Mr. Herbert C. Adams; Mr. Arthur S. Bahnmuller; Mr. Donald A. Bailey; Mr. James Bradley; Mr. Mark W. Buyck, Jr.; Mr. Samuel R. Foster, II; Mr. William M. Gregg II; Mrs. Helen C. Harvey; Mr. Toney J. Lister; Mr. Miles Loadholt; Mr. Robert C. Osborne, Jr.; Mr. M. Wayne Staton; and Mr. Othniel H. Wienges, Jr. Mr. Robert N. McLellan; Mr. J. DuPre Miller; Mr. Michael J. Mungo; and Dr. Barbara S. Nielsen were absent. Faculty representative Henry T. Price and student representative Jamel Franklin were also present.

Others present were: President John M. Palms; Secretary Thomas L. Stepp; Executive Vice President for Academic Affairs and Provost Jerome D. Odom; Vice President for Business and Finance John L. Finan; Vice President for Human Resources Jane M. Jameson; Vice President for Alumni and Student Affairs Dennis A. Pruitt; Vice President for Development Charles D. Phlegar; Vice President for Medical Affairs and Dean, School of Medicine, Larry R. Faulkner; Chancellor, USC Aiken, Robert E. Alexander; Chancellor, USC Spartanburg, John C. Stockwell; Associate Provost John N. Olsgaard; Vice Provost and Dean for Libraries and Information Systems George D. Terry; Dean, College of Engineering, Craig A. Rogers; Interim Dean, College of Pharmacy, Farid Sadik; Interim Dean, School of the Environment, Bruce Coull; Interim Dean, College of Science and Mathematics, Roger H. Sawyer; Interim Dean, School of Public Health, Dianne S. Ward; Dean, USC Beaufort, Chris Plyler; Budget Director James E. Kirk; Director of Budgeting Systems William P. Bragdon; Director of Budgetary Planning and Financial Analysis Susan K. Hooks; Director, Department of Internal Audit, Alton McCoy; Director of Housing and Residential Services, Gene Luna; Director of Business Affairs Richard D. Wertz; Director of Facilities Management and University Architect Charles G. Jeffcoat; Assistant Director for Administrative Services, Facilities Management, Todd Barnette; Assistant Director of Planning Services, Facilities Management, Donna Collins; Director of Presidential Communications Pete F. Mackey; Legislative Liaison John Gregory; Director of Governmental and Community Relations Shirley D. Mills; Chief Executive Assistant to the President J. Lyles Glenn; Assistant to the Vice President for Business and Finance Ken Corbett; Director of Public Affairs Russ McKinney; Director of Employee Communications Debra K. Allen; Assistant to Director of Employee Communications Matthew Penn; representative from Business and Finance Craig Moore; SC Department of Education representative Karen Horne; Baptist Campus Minister Jane Young Poster; representative from Media Relations Bond Nickles; representative from University Publications Chris Horn; and members of the media.

Chairman Hubbard called the meeting to order and stated that there was a special item on the agenda--the introduction of Dr. Rayburn Barton, the new Executive Director of the South Carolina Commission on Higher Education. Dr. Floyd was invited to introduce Dr. Barton.

Dr. Floyd stated that Dr. Barton had served for nearly a decade as Director of the Idaho State Board of Education and for several additional years in its academic planning office. Dr. Barton had experience in higher education, in legislative affairs, and in South Carolina state government in the early 1970s. During Dr. Barton's tenure as Executive Director of the Idaho Board, funding for operations of higher education in that state had increased 73 percent. Dr. Floyd then invited Dr. Barton to address the Board.

Dr. Barton said that what South Carolina had embarked upon in the area of performance funding was on the cutting edge of higher education in this country. He said he knew about higher education from the standpoint of state policy, and he saw a need for a partnership among the institutions of higher education and the Commission on Higher Education in working with the Governor and the Legislature in identifying and working for a complete higher education agenda. It was essential for all who worked in higher education to look at what was best for the state.

Dr. Barton said that during the next six months he planned to travel the state to meet as many institutional people as possible, to meet as many legislators as possible, and to become a partner in working with the Council of Presidents. He believed that he was brought to South Carolina to work in partnership with all parties in forming a consensus for the state higher education agenda.

Mr. Hubbard thanked Dr. Barton for taking the time from his very busy schedule to address the Board of Trustees.

Mr. Hubbard stated that there were personnel matters with respect to honorary degree candidates, honorary faculty titles, appointments with tenure, and tenure and promotion, as well as a contractual matter appropriate for Executive Session. He called for a motion to enter Executive Session. Mr. Staton so moved, and Mr. Osborne 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. Finan, Ms. Jameson, Dr. Pruitt, Mr. Parham, Dr. Alexander, Dr. Stockwell, Mr. Phlegar, Dr. Faulkner, Mr. Glenn, Mr. McKinney, Ms. Poster, Ms. Hyatt, and Ms. Medich.

Executive Session

I. Personnel Matters

II. Contractual Matter

Return to Open Session

Mr. Hubbard 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. The members of the University family were invited to introduce themselves. Mr. Nickles introduced the representatives from the media. Ms. Jane Young Poster, the Baptist Campus Minister, was invited to deliver the Invocation.

I. Approval of Minutes: The following seven sets of minutes were circulated by mail to the Board for review and were presented for approval:

A. Academic Affairs and Faculty Liaison Committee, April 3, 1997

B. Student-Trustee Liaison Committee, April 3, 1997

C. Executive Committee, April 17, 1997

D. Board of Trustees, April 17, 1997

E. Intercollegiate Activities Committee, May 22, 1997

F. Buildings and Grounds Committee, May 22, 1997

G. Executive Committee, May 22, 1997

There were no additions, deletions, or corrections to the minutes, they stood approved a distributed.

II. Committee Reports

A. Intercollegiate Activities Report

(The Honorable Donald A. Bailey, reporting)

- Report of the Meeting of May 22, 1997: The Intercollegiate Activities Committee met on May 22, 1997, and received a briefing from Dr. McGee regarding the contract for the new head women's basketball coach, Susan Walvius. The Committee expressed its support of the decision to hire Ms. Walvius.

Dr. McGee had thoroughly reviewed the External Audit of the Financial Statements of the Department of Athletics for the 1995-96 fiscal year.

Dr. McGee also presented the Department of Athletics budget for fiscal year 1997-98. Projected total operational revenues were $23,441,790, which was a 4.45 percent increase over the current fiscal year. Expenditures were projected to increase by 4.18 percent to $21,561,182. The Department of Athletics budget was incorporated in the University budget recommendation of the Executive Committee.

The Intercollegiate Activities Committee voted to approve receipt of a gift of $250,000 from Dr. and Mrs. David Beckham for improvements to the softball stadium. As a condition of the gift, approval was recommended to name the softball stadium "Beckham field - Home of the Lady Gamecocks." This item was presented to the Executive Committee for approval, on behalf of the Board, at its meeting on May 22, 1997.

Dr. McGee distributed the athletics academic report for the 1997 spring semester. The overall spring semester GPA was 2.7, and there were 81 student athletes on the SEC honor roll. Jonathan Rehberg, a senior on the men's swimming team, would receive a $5,000 post graduate academic scholarship from the SEC. Aaron Ahearn, a junior on the men's swimming team, was awarded a Goldwater Scholarship.

Mr. Hubbard stated that the report of the Intercollegiate Activities Committee was received as information.

B. Buildings and Grounds Committee

(The Honorable Mark W. Buyck, Jr., reporting)

1. Report of Meeting of May 22, 1997: The Buildings and Grounds Committee met on May 22, and received several reports.

- The Committee heard a brief report on contractual negotiations regarding the establishment of Greek Housing at USC Columbia. A full status report on Greek Housing would be made at the August meeting of the Committee.

- The Committee received status reports on major capital projects, specifically South Campus Housing--West Quadrangle, the Maxcy renovations, the National Advocacy Center, and the Graduate Science Research Center.

The construction documents were being developed for the renovations to Flinn Hall and a bid date would be in July. The current schedule would allow for occupancy in May 1998. The area around Flinn Hall, Maxcy College, and the War Memorial Building would be redesigned and landscaped with an integrated design.

Construction of the South Campus Housing--East Quadrangle and the A&E for the wellness/fitness center were moving through the state approval processes. It was anticipated that they would be approved no later than August 1997. Architects for both projects had been selected. Architects Boudreaux, Hulstrand, and Carter would associate with Sasaki on the housing project and with Cannon Parkin on the wellness center. The Committee made it very clear that the two new housing facilities should have the same exterior.

- The Committee received a report on the status of classroom enhancements. A priority list for improving classrooms had been prepared in November 1995. Funding had been set aside annually for this purpose. The rooms were prioritized based on utilization, need for upgraded equipment, location on campus, and the existing condition of space. The University had successfully completed all projects through summer 1996. Those for summer 1997 were ready for implementation.

- The acquisition of the Rifle Ridge apartment complex at USC Spartanburg was complete.

- In compliance with the established policy approved by the Board of Trustees, the administration approved increases in two project budgets: a) the budget for the USC Beaufort facilities improvements project was increased by $40,000 resulting in a total project budget of $2,050,000; and b) the classroom addition project for the School of Medicine was increased by $90,000, raising its budget to a total of $990,000.

- The Committee also heard the annual report on projects with budgets of less than $250,000. Details were in the minutes of the Buildings and Grounds Committee. Renovation of the South Caroliniana Library, previously discussed by the Committee, had begun.

2. 718 Devine Street Acquisition: At the request of the Board of Trustees, the Development Foundation purchased the property at 718 Devine Street. The appraised price was $655,000, and the Foundation had agreed to accept $650,000 from the University for this property.

On behalf of the Committee, Mr. Buyck moved approval of the purchase of 718 Devine Street from the USC Development Foundation for $650,000 with the source of funding to be the savings from the lease of the facility occupied by the University Press. Mr. Gregg seconded the motion. The vote was taken, and the motion carried.

3. A/E for the New River Project, USC Beaufort: Dean Plyler had presented a refined proposal for the proposed additional campus to provide many opportunities for the University of South Carolina and the Low Country. The University had been given an optimal location from which to serve Southern Beaufort and Jasper Counties with 80 acres donated by the Union Camp Corporation in 1994. This property, presently valued at $4 million, was located on the new highway 278 connector between I-95 and Hilton Head Island. There was a stipulation of the donation that construction must begin on the site within ten years or the land would revert to the Union Camp Corporation.

The proposal was to construct an approximately 40,000 square foot building to serve as the signature facility on what would ultimately become the Southern Beaufort-Jasper County campus site. The multi-purpose facility would offer classrooms, science laboratories, temporary library, and limited administrative and conference space. The overall proposal would provide over three hundred parking spaces. Total construction cost was estimated to be $13 million.

Approval was requested for planning through design/development stages only. Dean Plyler had told the Committee that USC Beaufort was confident it would secure pledges for at least one half of the total construction cost within two years and would have that money in hand within five years.

On behalf of the Committee, Mr. Buyck moved approval of the planning and design/development stages of the construction of the initial signature building of the New River project for USC Beaufort with a budget of $370,000 to be funded with $270,000 from USC Beaufort Renovation Reserve funds and $100,000 from county appropriations. Mrs. Harvey seconded the motion. The vote was taken, and the motion carried.

4. Change of Funding Source--Housing Access Project: The housing access project was originally approved with a budget of $1.35 million funded from Housing Operating funds. This proposal would change the source of funding to the Housing Maintenance Reserve Fund; the budget would not change.

On behalf of the Committee, Mr. Buyck moved approval of the change of funding source for the housing access project as presented. Mr. Whittle seconded the motion. The vote was taken, and the motion carried.

5. Naming of Space: The Committee considered the naming of the auditorium known as PSC 210 in honor of former Carolina Professor, the late Joseph W. Bouknight, who was a valued faculty member in the Department of Chemistry and Biochemistry for many years. Prior to his death, a scholarship fund was established in his honor by a former student, and Dr. Bouknight had matched the amount placed in the fund. Other faculty and former students, as well as the Bouknight family, subsequently contributed to the fund.

This request had the unanimous support of the faculty of the Department of Chemistry and Biochemistry. The Gift Naming Opportunities Committee reviewed and recommended this request at its meeting on May 8, 1997.

On behalf of the Committee, Mr. Buyck moved to lay the naming of the "Joseph W. Bouknight Auditorium" on the table for final action at the August Board meeting. Mr. Wienges seconded the motion. The vote was taken, and the motion carried.

6. 1997 Bond Bill Projects: The following projects were included in the proposal for the 1997 Bond Bill. A written description for each of the projects was mailed with the materials for this meeting.

a) Ruth Patrick Science Education Center, USC Aiken: On behalf of the Committee, Mr. Buyck moved approval of the construction of a 41,000 square foot, three story addition to the existing Ruth Patrick Science Education Center at USC Aiken, as described in the mailed materials, with a total budget of $4.4 million to be funded with $2.5 million from Capital Improvement Bonds, $1.4 million from a U.S. Department of Energy Grant, and $500,000 from private sources. This motion was contingent upon receipt of the private funds. Mr. Loadholt seconded the motion. The vote was taken, and the motion carried.

b) New Nursing Building, USC Aiken: On behalf of the Committee, Mr. Buyck moved approval of the construction of a 25,000 square foot instructional facility to house the nursing program at USC Aiken, as described in the mailed materials, with a total budget of $2.8 million to be funded with $1.5 million from Capital Improvement Bonds and $1.3 million from private sources. The motion was contingent upon receipt of private funds. Mr. Loadholt seconded the motion. The vote was taken, and the motion carried.

c) Beaufort College Building Deferred Maintenance/ Renovation, USC Beaufort: On behalf of the Committee, Mr. Buyck moved approval of the renovation of the Beaufort College Building to replace the heating, ventilation, and air conditioning (HVAC) and electrical systems, repair structural damage, and restore this historic landmark, as described in the mailed materials. The total budget of $1,084,500 would be funded with Capital Improvement Bonds. Mrs. Harvey seconded the motion. The vote was taken, and the motion carried.

d) Historic Colleges Deferred Maintenance/Renovation, USC Columbia: On behalf of the Committee, Mr. Buyck moved approval of the A/E services for renovations to historic buildings at USC Columbia, as described in the mailed materials, with a total budget of $14.5 million to be funded with Capital Improvement Bonds. It was understood that each individual project would be brought to the Committee for consideration and recommendation to the full Board of the scope and budget for each. Mr. Gregg seconded the motion. The vote was taken, and the motion carried.

e) Library Expansion, USC Lancaster: On behalf of the Committee, Mr. Buyck moved approval of the 37,000 square foot expansion of the Medford Library at USC Lancaster, as described in the mailed materials. The total budget was $4 million to be funded with Capital Improvement Bonds. Mr. Bradley seconded the motion. The vote was taken, and the motion carried.

f) Deferred Maintenance/Reroofing, USC Salkehatchie: On behalf of the Committee, Mr. Buyck moved approval of the deferred maintenance/reroofing at USC Salkehatchie, as described in the mailed materials, with a total budget of $535,000 to be funded with Capital Improvement Bonds. Mr. Lister seconded the motion. The vote was taken, and the motion carried.

g) Deferred Maintenance/Reroofing, USC School of Medicine: On behalf of the Committee, Mr. Buyck moved approval of the deferred maintenance/reroofing at the USC School of Medicine, as described in the mailed materials, with a total budget of $350,000 to be funded with Capital Improvement Bonds. To facilitate the timely completion of this project, Mr. Buyck suggested that this motion include combining this project with the Annual Permanent Improvement Plan (APIP) project for Building #3 of the School of Medicine that the Board approved on February 20, 1997; he so moved. Dr. Floyd seconded the motion. The vote was taken, and the motion carried.

h) Hodge Center Renovation/Deferred Maintenance, USC Spartanburg: On behalf of the Committee, Mr. Buyck moved approval of the deferred maintenance items and the renovation of the Hodge Center at USC Spartanburg, as described in the mailed materials, with a total budget of $1,987,500 to be funded with Capital Improvement Bonds. Mr. Lister seconded the motion. The vote was taken, and the motion carried.

i) Deferred Maintenance, USC Sumter: On behalf of the Committee, Mr. Buyck moved approval of the deferred maintenance at USC Sumter, as described in the mailed materials, with a total budget of $400,000 to be funded with Capital Improvement Bonds. Mr. Bahnmuller seconded the motion. The vote was taken, and the motion carried.

j) Maintenance, USC Union: On behalf of the Committee, Mr. Buyck moved approval of the deferred maintenance at USC Union, as described in the mailed materials, with a total budget of $300,000 to be funded with Capital Improvement Bonds. Mr. Lister seconded the motion. The vote was taken, and the motion carried.

k) Graduate Science Research Center, USC Columbia: On behalf of the Committee, Mr. Buyck moved approval of the change in sources of funding for the Graduate Science Research Center at USC Columbia with a total budget of $31 million to be funded with $17.2 million from Institution Bonds, $5,615,935 from 1995/96 State Supplemental funds, $4,384,065 from Capital Improvement Bonds, $2.3 million from auxiliary funds, and $1.5 million from the renovation reserve. Mr. Staton seconded the motion. The vote was taken, and the motion carried.

Mr. Buyck announced that the University architect had arranged a tour of the South Campus Housing--West Quadrangle complex for members of the Board immediately following this meeting.

C. Academic Affairs and Faculty Liaison Committee

(The Honorable Helen C. Harvey, reporting)

1. Honorary Faculty Titles: The following honorary faculty titles had received all approvals and were presented, without objection, to the Academic Affairs and Faculty Liaison Committee on June 12, 1997, and to this Board in executive session earlier in this meeting.

a) The following persons would receive the title Distinguished Professor during their final year of service. Upon retirement, that title would change to Distinguished Professor Emeritus:

(1) Thomas H. Buxton, Department of Educational Leadership and Policies, College of Education, retiring June 30, 1997.

(2) Donald Colquhoun, Department of Geological Sciences, College of Science and Mathematics, retiring June 30, 1997.

(3) Robert Ehrlich, Department of Geological Sciences, College of Science and Mathematics, retiring June 30, 1997.

b) The following persons would receive the title Distinguished Professor during their final year of service. Upon retirement, that title would change to Distinguished Professor Emerita:

(1) Alice H. Henderson, Division of Social and Behavioral Sciences, College of Arts and Sciences, USC Spartanburg, retiring June 30, 1997.

(2) Nancy T. Wolfe, College of Criminal Justice, retiring June 30, 1997.

c) Elizabeth Moore Bullard, Department of Educational Leadership and Policies, College of Education, would receive the title Professor Emerita upon her retirement June 30, 1997.

d) The following persons would receive the title Professor Emeritus upon their retirement:

(1) Lewis G. Brierley, College of Journalism and Mass Communications, retiring December 15, 1997.

(2) David Lawrence, Department of Geological Sciences, College of Science and Mathematics, retiring June 30, 1997.

(3) David E. Taylor, Division of Natural Sciences and Engineering, College of Arts and Sciences, USC Spartanburg, retiring June 30, 1997.

On behalf of the Committee, Mrs. Harvey moved approval of the requested honorary faculty titles. Mr. Osborne seconded the motion. The vote was taken, and the motion carried.

2. Appointments with Tenure: The following recommendations for the award of tenure had received all approvals and were presented, without objection, to the Academic Affairs and Faculty Liaison Committee on June 12, 1997, and to this Board in executive session earlier in this meeting.

a) Dr. Hanif Chaudhry would be awarded tenure at the rank of professor effective with his appointment as chair of the Department of Civil and Environmental Engineering, College of Engineering. On behalf of the Committee, Mrs. Harvey moved approval of the award of tenure at the rank of professor in the Department of Civil and Environmental Engineering, College of Engineering, for Dr. Hanif Chaudhry. Mr. Foster seconded the motion. The vote was taken, and the motion carried.

b) Dr. Rita Duarte Marinho would be awarded tenure at the rank of professor effective with her appointment as dean of the College of Arts and Sciences, USC Spartanburg. On behalf of the Committee, Mrs. Harvey moved approval of the award of tenure at the rank of professor in the College of Arts and Sciences, USC Spartanburg, for Dr. Rita Duarte Marinho. Mr. Lister seconded the motion. The vote was taken, and the motion carried.

c) Dr. Faye Harrison would be awarded tenure at the rank of professor effective with her appointment to the Department of Anthropology, College of Liberal Arts. Dr. Harrison would also be named graduate director of the Women's Studies program. On behalf of the Committee, Mrs. Harvey moved approval of the award of tenure at the rank of professor in the Department of Anthropology, College of Liberal Arts, for Dr. Faye Harrison.

3. Tenure and Promotion: The lists of those recommended for tenure and/or promotion were mailed with the materials for this meeting. These recommendations had received all appropriate approvals and were presented, without objection, to the Academic Affairs and Faculty Liaison Committee at its meeting on June 12, 1997, and to this Board in executive session earlier in this meeting. There was one addition to the list as referenced in a letter from Dr. Palms given to Board members at this meeting. [The lists of those recommended for tenure and/or promotion are attached as Exhibit A.]

On behalf of the Committee Mrs. Harvey moved approval of those recommended for tenure and/or promotion. Mr. Bailey seconded the motion. the vote was taken, and the motion carried.

4. Changes to the USC Columbia Faculty Manual: The following changes to three sections of the USC Columbia Faculty Manual were intended to update administrative positions. The revised sections would read:

a) Page 5, under the heading Officers of the University, third paragraph, subheading title:

Executive Vice President for Academic Affairs and Provost

The Executive Vice President for Academic Affairs and Provost is the second ranking officer of the University .... Serving under the Executive Vice President for Academic Affair and Provost are the Vice Provost and Executive Dean for Regional Campuses and Continuing Education, ....

b) Page 6, under the heading Vice Presidents, third paragraph:

The Vice President for Student and Alumni Affairs and Dean of Students provides leadership and supervision for the staff and programs of the Division of Student Affairs and the Office of Alumni Services and serves as a liaison between students, alumni, and the University administration.

c) Page 6, under the heading Vice Presidents, fourth paragraph:

The Vice President for development is responsible for University fund raising activities.

On behalf of the Committee, Mrs. Harvey moved approval of the requested changes to the USC Columbia Faculty Manual. Mr. Adams seconded the motion. The vote was taken, and the motion carried.

5. Report from the Scholarship Task Force: Mrs. Harvey stated that at the June 12, 1997, meeting of the Committee, a report was received from the Scholarship Task Force. She then invited Mr. Hubbard to present the report to the full Board. Mr. Hubbard gave the following report:

The Scholarship Task Force met in late May and received a truly outstanding report on the 1997 freshman class. I would remind you this report is a preliminary, point-in-time report that will change over the course of the summer. However, the summary data I present to you today does indicate we will have one of the largest and certainly most academically qualified freshman classes in the past decade.

For your information, let me share some great news from this preliminary report. First, applications are up 12 percent; we now have 9,962 applications and will have over 10,000 within the next two weeks. The Alumni scholarships have been awarded to 43 scholars; 31 are in-state students; 12 are out-of-state. Eighty-four percent of the Alumni scholars will be in the South Carolina Honors College and their average SATs will be 1359, up 39 points from 1996. The number of Legacy Scholarships appears to have increased from 88 to 124. The Legacy Scholarship program is the $500 award granted to students whose parents or grandparents attended the University of South Carolina and are members of the Alumni Association.

Preliminary data indicates that we will enroll sixteen students from the Governor's School for Science and Math, a significant increase over any past year.

The University Scholars awards have already been accepted by 776 students, an increase of 238 students from last year. Further, the SATs of these 776 students are 15 points higher than the scholarship students from last year's freshman class. Additionally, the yield rate of this pool at this point in time has increased by 4 percentage points from 37 percent in 1996 to 41 percent in 1997. With regard to the Honors College, you remember we had a goal of 230 students; we now have preliminarily enrolled 257 students, with approximately 45 qualified students on the waiting list. SATs are up 19 points to 1360. It is interesting that we have more students, and they are even better academically qualified. Further, for the first time all of these students have scored over 1200 on the SAT, and 79 percent of them are in-state students.

The preliminary numbers for the 1997 Carolina Scholars freshmen would indicate 20 Carolina Scholars with an SAT of 1476, and we have enrolled 7 of the 16 Carolina Scholar finalists--the most we have ever enrolled.

Now, for even better news. Last year as you recall, we entered into the Chronicle of Higher Education's list of colleges and universities enrolling the most National Merit scholars; this year we have improved dramatically the number of National Merit scholars and National Achievement scholars enrolling at Carolina. In 1992 we had 6 National Merit scholars matriculate at the University of South Carolina; in 1997 we will have 41 National Merit scholars in the freshman class, an increase of 14 National Merit students over last year's class. In 1992 we had one National Achievement scholar enroll, this year we will have seven in the freshman class--an increase of two over last year.

More good news. Carolina is enrolling the highest number of All-State Academic All-Stars of any in-state or out-of-state institution. We will have 14 this year; in 1993 we had 9. More good news. Regarding the Palmetto Fellows cohorts, the University of South Carolina will have at least 194 Palmetto scholars, an increase of 54 over last year and the most of any institution in the State of South Carolina.

It gives me great pleasure to give this report on behalf of the Scholarship Task Force.

Mrs. Harvey thanked everyone in the room saying they, and many others, were responsible for the great increase in scholarships at the University of South Carolina.

6. Resolution on Scholarships: Mrs. Harvey stated that the Resolution on Scholarships from the Scholarship Task Force was adopted by the Academic Affairs and Faculty Liaison Committee. She presented it for adoption by the Board of Trustees.

It is a goal of the University of South Carolina Columbia to attract and enroll the best and brightest undergraduate students. To this end, merit scholarship programs are in place to help academically talented undergraduate students meet the cost of education. Using scholarships strategically to enhance the profile of each entering class is a Board of Trustees endorsed enrollment goal. As the cost of education increases, so too must the value of an awarded scholarship if the award is to influence enrollment. Therefore, financial commitment to undergraduate scholarships shall be a priority of the Board of Trustees of the University of South Carolina.

On behalf of the Committee, Mrs. Harvey moved adoption of the Resolution. Mr. Bradley seconded the motion. The vote was taken, and the motion carried.

Mr. Hubbard thanked Dr. Price for the excellent work of the faculty in assisting with the recruitment efforts which allowed such a glowing report. Mr. Hubbard also thanked Drs. Dennis Pruitt and Char Davis and Ms. Terry Davis for their excellent work in the area of recruitment. Finally, Mr. Hubbard thanked Dr. Palms for his leadership and the members of the Board of Trustees for their assistance in student recruitment. He stated that this was a team effort and, without that team effort, there would not have been the success that was envisioned for the matriculation of the freshman class of the fall of 1997.

D. Fiscal Policy Committee

(The Honorable Herbert C. Adams, reporting)

Report of the Meeting of June 12, 1997: At the June 12, 1997, meeting of the Fiscal Policy Committee, the Designated Fund Budget for fiscal year 1997-98 was approved. It was incorporated into the budget package adopted by the Executive Committee on June 12, 1997, which would be presented to the Board at this meeting.

Mr. Adams invited the Board members to look at the Schedule of Designated Fund Revenue and Expenditures on page E-19 of the budget document. It showed projected revenue of $762,000 and expenditures of $796,452. The deficit would be covered by the fund balance which had accumulated over the years.

The report of the Fiscal Policy Committee was received as information.

E. Executive Committee

(The Honorable William C. Hubbard, reporting)

1. Report of the meeting of May 22, 1997: At its meeting of May 22, 1997, the Executive Committee approved contracts valued over $250,000 for employment of a head women's basketball coach; an agreement with the University's newest foundation, the South Carolina Research Institute; an educational travel agreement with Princess Cruise Lines; acceptance of a gift of human resources and payroll management computer software; purchase of computer software to be used in the University's business and finance operations; an implementation services contract in connection with the above mentioned software packages; and an upgrade of the University's telecommunications system.

Also at the May 22 meeting, the names of honorary degree recipients Elizabeth Hanford Dole and George Stephen Felker were removed from the table on behalf of the full Board.

A gift of $520,000 was accepted on behalf of the full Board from Dr. and Mrs. David Beckham to assist in completing the women's softball stadium, and the stadium was renamed 'Beckham Field--Home of the Lady Gamecocks." The naming of the stadium had the prior approval of the Gift Naming Opportunities Committee.

2. Report of the Meting of June 24, 1997: At the Executive Committee meeting earlier this day, contracts valued over $250,000 were approved for University food services with the Marriott Corporation and for employment of the women's softball coach.

3. Report of the Meeting of June 12, 1997: At the June 12, 1997, meeting of the Executive Committee emergency action on behalf of the full Board and the Buildings and Grounds Committee was taken to approve construction of "clean room" facilities for a College of Engineering Microelectronics Laboratory; immediate construction would make possible the receipt of a $3.5 million federal grant.

Salary supplements were approved for the Chancellors of USC Aiken and USC Spartanburg.

The University budget for fiscal year 1997-98 was approved for recommendation to the full Board.

4. University Budget for Fiscal Year 1997-98: Dr. Palms stated that the University was trying to be effective and to have the quality that the state deserved for its flagship institution and associated campuses. Higher education remained under funded in the state--it was funded at approximately 70 percent of the Southeastern average. That lack of funding of approximately $1,400 per student had been compensated for with modest tuition increases every year. A very thorough review of the University's finances had been conducted over the past several years, and several organizations had certified that the institution's resources were being used in the best interests of instruction and academic pursuits.

Hearings were held with all of the departmental chairs and college deans. The institution was aware of the consumer price index, the consumer price index for higher education, and the economic progress of the state. The result of the budget process was a recommendation including a very modest tuition increase. Dr. Palms then invited Mr. Finan to present the budget.

Mr. Finan provided an overview of legislation actions which impacted the University budget. These included:

- 2.5 percent cost of living pay increase for state employees effective October 1

- Bond bill funds for all campuses of approximately $31 million

- Graduate Science Center funding, as part of the bond bill

- Academic Endowment Incentive Act providing matching funds for income earned from endowments with a $5 million cap

- Arena funding in the amount of $2.5 million

- Athletics Revenue Bond Act cap increase to $40 million

- EPSCoR increase in the amount of $250,000

- Law School Library support in the amount of $400,000

- Institute for Public Affairs funding

- Small Business Development Center funding

- Increase in state provided formula funding of one percent plus performance funding

- Pre-paid tuition program.

Mr. Finan said Board approval was being requested for budgets and fees for USC Columbia for educational and general functions, auxiliary programs including housing and athletics, and designated funds. Approval of budgets and fees was also being requested for the School of Medicine, the Senior campuses of Aiken and Spartanburg, and the five Regional campuses.

Information on the Columbia budget was then presented. Reductions, savings, and realignments for FY 97 and 98 include custodial and warehouse savings of $800,000; Provost budget reallocations of $768,000; University Advancement savings of $282,000; The Wedge savings of $150,000; and savings of $160,000 through units absorbing state travel increases. From FY 88 to FY 98 the institutional support percentage of the educational and general budget had gone from 10.1 percent to 9.2 percent, which represented about $3 million. Over that time period, the percentage of increase to academics of the educational and general budget had gone from 74.4 percent to 80.5 percent.

For FY 98 the educational and general budget for academic areas was divided with 41 percent to instruction, 14 percent to research, 11 percent to academic support, 15 percent to other academic areas, and 19 percent to support and other non-academic areas.

Areas in which the institution had increased revenues over the past ten years included increasing federal funds from $33 million to $53 million, tripling private funds from $5 million to $18 million; and increasing sales and services of educational departments from $10 million to $18 million. Funds for USC Columbia are composed of 38 percent from state appropriations, 26 percent from tuition and fees, 14 percent from federal grants and contracts, 13 percent from sales and services, and 9 percent from other revenue.

New budget requirements in the amount of $4.05 million for USC Columbia were identified with nearly $2.9 million in academic affairs priorities, $.7 million in institutional requirements, and $.4 million in requirements of other offices.

Dr. Odom reviewed the priorities in academic affairs. He said the request resulted after study of the 31 strategic plans and budget submissions to the Office of the Provost by the academic units at USC Columbia. The first of three areas of his focus for funding was the library which had experienced a high inflation rate (11 to 15 percent). The second area was for enhancements in the College of Engineering. And the third area was for Honors College expansion. Dr. Odom then reviewed the remaining academic affairs priorities including faculty recruitment, a grant match in the College of Science and Mathematics, faculty promotions, salary and other expenses to support new deans; the Opportunity Scholars program, and academic strategic plan implementation. The academic strategic plan implementation of $675,000 had been reduced from total requests of over $9 million made by the 31 academic unit heads.

Mr. Finan then reviewed the remaining new budget requirements. These included the USC share of cost of living increase, liability insurance rate increase, utilities increases, staffing a visitor center at the airport, and the beginning plans for the Bicentennial Celebration. Increases were also requested for Student Affairs/Admissions, the Development Office, the Division of Human Resources for computers and training, and Office of the Board of Trustees for the Department of Internal Audit. The distribution of the proposed increase of $4.05 million was academic affairs--72 percent, cost of living-salaries--10 percent, other institutional needs--8 percent, and other offices--10 percent.

The proposed total budget for USC Columbia was $370.8 million. The following USC Columbia fee actions were recommended to balance the FY 97-98 budget:

- +1.9 percent Educational and General Tuition ($30.25 per semester) for in-state undergraduate students

- Additional increases above that base of

- +1 percent for non-residents

- +0.5 percent for graduate students

- +5 percent Student Health Fee ($3.75 per semester)

- +5 percent University Activities Fee ($2.00 per semester)

- +6 percent Law School Tuition

- +4.5 percent Housing Costs (with 1.5 percent for life safety)

In addition, the technology fee would increase by $15.00 as approved by the Board last year. For information it was estimated that the cost of a 10 meal plan would increase by 3 percent.

In reviewing fee and state funding comparisons for the past ten years, Mr. Finan pointed out that as state funding decreased, student fees increased. A chart was displayed comparing USC Columbia tuition with the Higher Education Price Index (HEPI) and South Carolina per capita personal income. For the past two years the tuition increase had been below the HEPI.

Mr. Finan then addressed the campuses other than Columbia. Of the total University budget of $489.8 million, USC Columbia expenditures accounted for 76 percent, the Senior Campuses 11 percent, the Regional Campuses 5 percent, and the School of Medicine 8 percent. USC Aiken and USC Spartanburg charged less in-state undergraduate tuition than the other four-year public institutions in the state.

Board approval was also requested for the following items in the budget:

- +6 percent School of Medicine tuition

- +6.1 percent USC Aiken and USC Spartanburg tuition

- +2.6 percent Regional Campuses (except Lancaster) tuition

- Department of Athletics Budget

- Designated Funds Budget

- New Fees for School of Public Health:

- Speech-Language Pathology Matriculation Fees

- Masters Health Administration Weekend Program

A recap of the proposed University budget for FY 1997-98 included the following:

- Columbia $370.8 million

- School of Medicine 40.0

- Aiken 25.0

- Spartanburg 28.2

- Beaufort 5.3

- Lancaster 6.2

- Salkehatchie 4.4

- Sumter 8.1

- Union 2.0

Total Expenditures $490.0 million

Mr. Bailey complimented Mr. Finan and his staff on the direction and presentation of the budget. Great improvements had been made in the past few years.

Mr. Bradley moved approval of the budget including expenditure and revenue schedules as presented, and all tuition and fees including housing fees as proposed. [Selected schedules from the budget are included as Exhibit B.] Mr. Staton seconded the motion. The vote was taken, and the motion carried unanimously.

III. Legislative Report: Mr. Gregory reviewed some of the key items in the Legislative Report for 1997 which had been distributed to the Board members at this meeting. [A copy of the report is maintained in the permanent meeting file held by the Board Office.]

An increase of $18 million (2.9 percent) over the current year funding was appropriated by the General Assembly for higher education for a total of $647.8 million. Of the $18 million, 25 percent was applied towards performance funding. Within two years the entire higher education budget was scheduled to be based on performance funding.

The Capital Improvement Bond Bill contained over $31.5 million for USC projects. In the area of Other Funding, Mr. Gregory pointed out that $175,000 had been appropriated for a USC/Kershaw Primary Care Project similar to the Winnsboro project that was being operated by the School of Medicine. Funds were appropriated late in the legislative session to award an additional 200 Palmetto Fellow scholarships.

An amendment was tabled which would have allowed private colleges a greater share of the funds for Palmetto Fellows. A proviso was passed to assure that physicians associated with mental health who were teaching at the School of Medicine could participate in the School's Practice Plan. The South Carolina Academic Endowment Incentive Act of 1997 was passed to permit four-year state-supported colleges and universities to receive state matching funds on disbursements from newly created academic endowments.

Mr. Gregory thanked Ms. Mills for her work during the legislative session. He also thanked the Board members for their efforts and support.

Mr. Hubbard commended Mr. Gregory and Ms. Mills especially for their efforts late in the legislative session in coordinating information and responses. Mr. Hubbard said that Dr. Palms, Mr. Stepp, and Mr. Glenn provided valuable input on certain key items. Mr. Hubbard then thanked the Board members for their efforts, particularly in maintaining funding for those items which had been vetoed.

IV. President's Report: Dr. Palms thanked those in the room who had contributed to a successful year. He reviewed the process which had resulted in the award of a $9.3 million federal grant to conduct an array of high-tech research in biological, chemical, physical and mathematic sciences and medicine for the U.S. Department of Defenses. It was a very competitive process, and Dr. Palms said a great deal of credit should go to Dr. Odom, Dr. Rogers, and the faculty members who wrote the proposal. This was an excellent example of the teamwork that existed at the University of South Carolina. This grant would fulfill the University's pledge to the Legislature to seek and obtain external funding for completion of the graduate science research center.

Dr. Palms said he had received a report on the study of the Faculty House and had met with the study committee. After reviewing it, he would make recommendations to the Board in the latter part of the summer. Dr. Palms said the opportunity existed to make the Faculty House a vibrant enterprise.

A report had also been received from the blue ribbon committee studying tenure and promotion on the Columbia campus. It contained some very good recommendations, and they would be brought to the appropriate committee of the Board in the next several months.

Dr. Palms announced the following personnel appointments that would be effective July 1, 1997. Dr. C. Blease Graham, who had been doing excellent work as Dean of the College of Criminal Justice, would also serve as Interim Dean of the College of Liberal Arts. Dr. Harvey A. Allen was named Interim Dean of the College of Education. Dr. Palms reported that there were six searches in progress for new deans. For several of these positions, searches had been conducted without finding appropriate individuals to take the institution to the next level, so the decision was made to continue those searches. For the College of Education, it was essential to find someone who would have good rapport with the State Superintendent for Education and superintendents and principals throughout the state.

In regard to the area of performance funding, Dr. Palms said the University of South Carolina would like to have the same data used by the Commission on Higher Education for performance funding that is reported to the federal government. This same data is used by all AAU institutions. It was very important that all institutions use reliable data.

Dr. Palms said he was elated with the in-state leadership for the Bicentennial Capital Campaign that had been put in place. Mr. Charles S. Way, president of Beach Company, Inc., agreed to serve as co-chair for the South Carolina initiative of the Campaign. Assisting as vice-chairmen would be Mr. W.W. "Hootie" Johnson, chairman of the Executive Committee for NationsBank; Mr. Robert V. Royall, chairman of NBSC; and Governor Robert E. McNair, senior partner of the McNair law firm. These outstanding persons would assure the success of the in-state segment of the campaign. Dr. Palms thanked them for agreeing to serve. All of the campuses were attracting donations, which was a reflection of their significance in their respective communities. USC Lancaster, with Mr. Bradley's leadership, had been very successful in private raising funds for a new building; and USC Salkehatchie had also been very successful.

Dr. Palms said there was important work to be done by the University of South Carolina in a state where only 15 percent of the population had baccalaureate degrees and the per capita income was several thousand dollars below the national average. A person was much more likely to achieve a baccalaureate degree if he started at a USC regional campus than if he started at a technical college.

Dr. Palms thanked the Board members for their confidence in him and for their support. He assured them that the University of South Carolina would continue to be successful.

V. Other Matters

A. Report on Board of Trustees Internet Web Site: Mr. Stepp reported that several months ago various ways were examined to enhance communications within the University community in an effort to respond to the many requests and inquiries which come to the Office of the Board of Trustees, to present the Board of Trustees in a full and proper perspective to the citizens of South Carolina and to higher education institutions, and to open some new, two way communications and dialogue with the Board and the world. Within the main pages of the University of South Carolina Internet site there is a rather unique setup describing the Board of Trustees and its work. Mr. Stepp then invited Ms. Allen to report on the site.

Ms. Allen stated that information about the Board was first placed on the USC homepage site in 1994 with the membership list and agendas. In 1996 the Bylaws were added. In spring 1997 Mr. Stepp requested that a unique homepage be created for the Board. The site could now be found at http://trustees.sc.edu. Ms. Allen, through use of a computer and projector, displayed the homepage of the Board. The site included biographical information on each trustee with a photograph, college major, profession, year of college graduation, and current Board committee assignments. Also from the site, the annual meeting schedule was available, and specific meeting agendas were available approximately five working days before a meeting. Beginning with the February 20, 1997, meeting of the Board, the minutes of full Board meetings would be available at the site. The University of South Carolina Columbia campus map linked the Board of Trustees homepage to the location of the Board Office in the Osborne Building.

Ms. Allen reported that the only other institution she could find with a comparable site on the World Wide Web was the University of Virginia.

B. Message from Mrs. Wienges: Mr. Stepp conveyed the thanks of Mrs. Callie Wienges for the many expressions of kindness she received upon the recent death of her mother.

There being no further business to be brought before the Board, Mr. Hubbard declared the meeting adjourned at 3:05 p.m.

Respectfully submitted,

Thomas L. Stepp

Secretary

Exhibit A

Promoted to Professor

Heidi Mills, College of Education (Dept of Instruction and Teacher Education)

Roger Dougal, College of Engineering (Dept of Electrial and Computer Engineering)

Philip Dunn, College of Liberal Arts (Dept of Art)

Lacy Ford, College of Liberal Arts (Dept of History)

James Hall, School of Music

Marcia Synnott, College of Liberal Arts (Dept of History)

Steven Wilson, School of Medicine (Dept of Pharmacology)

Jerry Hilbish, College of Sci and Math (Dept of Biological Sciences)

Thomas J. Owens, College of Sci and Math (Dept of Geological Sciences)

Promoted to Associate Professor and Awarded Tenure

Tom Regan, College of Applied Professional Sciences (Dept of Sport Administration)

E. Elisabet Rutstrom, College of Business Administration, (Dept of Economics)

M. Audrey Korsgaard, College of Business Administration (Dept of Management)

Harry J. Sapienza, College of Business Administration (Dept of Management)

Elizabeth Peterson, College of Education (Dept of Instruction and Teacher Education)

John Weidner, College of Engineering (Dept of Chemical Engineering)

Van Kornegay, College of Journalism and Mass Communications

Kenneth Gaines, Law School

Deanna Leamon, College of Liberal Arts (Dept of Art)

Mladen Milicevic, College of Liberal Arts (Dept of Art)

Nina Levine, College of Liberal Arts (Dept of English)

Jeffery Persels, College of Liberal Arts (Dept of French & Classics)

Ann Louise Bezuidenhout, College of Liberal Arts (Dept of Philosophy)

Alonzo Johnson, College of Liberal Arts (Dept of Religious Studies)

Patricia Feehan, College of Libraries and Info Sciences

Suzanne McDermott, School of Medicine (Dept of Family and Preventive Medicine)

Reginald Bain, School of Music

Bert Ligon, School of Music

Majorie Aelion, School of Public Health (Dept of Environmental Health Sciences)

Elaine Frank, School of Public Health (Dept of SpeechLanguage Pathology & Audiology)

David Reisman, College of Sci & Math (Dept of Biological Sciences)

Richard Vogt, College of Sci & Math (Dept of Biological Sciences)

Suresh Singh, College of Sci & Math (Dept of Computer Science)

Daniel Dix, College of Sci & Math (Dept of Mathematics)

Douglas Meade, College of Sci & Math (Dept of Mathematics)

Terry Tirrito, College of Social Work

Awarded Tenure at Associate Professor

Marie T. Reilly, Law School

Leiyu Shi, School of Public Health (Dept of Health Administration)

Alan Waldman, College of Sci & Math (Dept of Biological Sciences)

Michael Angel, College of Sci & Math (Dept of Chemistry)

Liyeng Sung, College of Sci & Math (Dept of Mathematics)

Michael Welsh, College of Education (Dept of Educational Leadership and Policies)

Awarded Tenure as Librarian

Thomas McNally, University Libraries

1996/97

Promoted to Associate Professor and Awarded Tenure

John Jarvis (Aiken)

Choong Lee (Spartanburg)

Danielle Raquidel (Spartanburg)

Charlene Walton (Spartanburg)

Awarded Tenure at Associate Professor

Sandra Chubon (Aiken)

Stephen Bishoff (Sumter)

Diana Clary (Spartanburg)

Awarded Tenure at Assistant Professor

Leanne McGrath (Aiken)

Duncan McDowell (Salkehatchie)

Promoted to Professor

James Kauffman (Aiken)

Clifton Flynn (Spartanburg)

Lilly Lancaster (Spartanburg)

Sarah Rook (Spartanburg)

Promoted to Associate Professor

Louis Pantuosco (Sumter)

Susan Hendley (Sumter)