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 Executive Committee of the University of South Carolina Board of Trustees met Friday, June 29, 2001, at 10:00 a.m. in the Carolina Plaza Board Room.
Members present were: Mr. Herbert C. Adams, Vice Chairman; Mr. James Bradley (via phone); Mr. William C. Hubbard (via phone); and Mr. Michael J. Mungo (via phone). Committee members absent were: Dr. C. Edward Floyd and Mr. Mack I. Whittle, Jr, Chairman. Other trustees present were: Mr. Arthur S. Bahnmuller (via phone); Mr. Alexander English (via phone); Mr. A. C. Fennell, III (via phone); Mr. Samuel R. Foster, II (via phone); Mrs. Helen C. Harvey (via phone); Mr. Toney J. Lister (via phone); Mr. Miles Loadholt (via phone); Mr. Robert N. McLellan (via phone); Mr. J. Dupre Miller (via phone); Ms. Darla D. Moore (via phone); Mr. John C. von Lehe, Jr. (via phone); and Mr. Othniel H. Wienges, Jr. (via phone).
Others present were: President John M. Palms; Secretary Thomas L. Stepp; Executive Vice President for Academic Affairs and Provost Jerome D. Odom; Vice President and Chief Operating Officer J. Lyles Glenn; Chancellor of USC Aiken Thomas L. Hallman (via phone); Vice President and Chief Financial Officer Richard W. Kelly; Vice President for Information Technology and Chief Information Officer William F. Hogue; Vice President for Student and Alumni Services Dennis A. Pruitt; Interim Vice Provost and Dean, Libraries and Information Systems, John N. Olsgaard; General Counsel Walter (Terry) H. Parham; Vice Provost and Executive Dean of Regional Campuses and Continuing Education Chris P. Plyler (via phone); former Interim Budget Director Robert E. Bugbee (via phone); Director, Budget and Finance, Division of Student and Alumni Services, William P. Bragdon; Director of Governmental and Community Relations Shirley D. Mills; Chair of the Faculty Senate Caroline D. Strobel; President of the Student Government Association Corey Ford; Director of Periodicals, University Publications, Chris Horn; Director of Public Affairs Russell McKinney; and representatives from the media.
After calling the roll, Secretary Stepp stated that a quorum of the Executive Committee was present. Mr. McKinney introduced members of the media who were in attendance. Vice Chairman Adams 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 material had been circulated to the members; and a quorum had been established to conduct business.
As you recall, last week you approved the recommendations to increase tuition at all USC campuses by 10.4 percent. Given the state budget circumstances we faced at that time, this increase was warranted and necessary and I appreciate your approval of our recommendations.
Clearly as many of you expressed last week, needs exist on all of our campuses for increases well in excess of the 10.4 percent. However, I did not believe a one year increase in excess of 10.4 percent would be appropriate or appreciated by Carolina students and their families. This morning, one week later, we gather again and the state's budget for higher education has changed. Thanks to the leadership of Governor Hodges and the members of the Legislature, our recurring funding has been restored. Upon issuing a veto to accomplish this change, the Governor asked that state colleges and universities consider reductions in previously approved tuition increases. I believe the Legislature, as well as all South Carolinians, implicitly endorse this request.
As the state's leading and flagship university, Carolina holds unique obligations. South Carolinians comprise more than 80 percent of our enrollment. We are South Carolina's most comprehensive institution. Our economic impact on the state exceeds $1.4 billion--significantly greater than any other institution in this state. Nearly 100,000 USC alumni make their homes in South Carolina. Appropriately, a little more than 24 hours following the Governor's vetoes, you are the first college or university board to gather to respond to this most recent legislative action in a manner that demonstrates our understanding of our obligations to South Carolina.
As we proposed in the budget materials sent to you yesterday, we recommend the following adjustments. For the Columbia and regional campuses a tuition fee increase per semester of 5.2 percent for resident undergraduate and graduate students, which represents a 50 percent reduction in the original proposed increase. We also recommend an 8.5 percent per semester increase for nonresident undergraduate and graduate students. For USC Aiken, a tuition fee increase of 5.2 percent per semester for resident students, which represents also approximately a 50 percent reduction in the originally-proposed increase. For the Spartanburg campus, a tuition and fee increase of 7 percent, which represents an approximate 30 percent reduction in the original proposed increase. The School of Medicine has recommended, and I concur, that its tuition and fees per semester be increased 10 percent, representing also a 50 percent reduction in the originally proposed increase.
As to Columbia, Aiken and the regional campuses, the increase for resident students is only 1.5 percent above the normal inflationary costs, as represented by the Higher Education Price Index (HEPI) of 3.7 percent. This increase is required to accommodate a portion of unfunded salary and benefit increases mandated by the state and to reduce the cuts to our academic departments. Over the past several years, USC Spartanburg has experienced unique funding shortfalls in relation to its enrollment demands, which require an increase slightly less than twice the inflation index.
Do the University's needs far exceed the revenues we will receive from these tuition increases? Absolutely. While I am keenly aware of this gap, and for ten years have argued for increased funding to address these needs, the funds we receive for this transition year will be sufficient to maintain our quality. But a more important issue is at hand. This issue is one of trust. Last January, we decried the drastic cuts proposed for our campuses. We expressed concern that we could only respond to these reductions through departmental cutbacks and dramatic tuition increases. Our students, faculty, alumni and business partners heard this call and expressed to the Governor and the Legislature their own concerns regarding these proposed cuts. The Governor and the Legislature heard this message and as a result our funding level improved not once but twice, to the point where we now find ourselves--a restoration to the current funding level.
I believe the Governor and the legislature took this bold action, trusting that the colleges and universities would respond in a manner that would most positively affect South Carolina families. Through a reduction in the previously approved tuition increases, I propose to you today that we maintain that trust.
Thank you very much.
Mr. Mungo moved to approve the reduction in the tuition as presented to the Board by Dr. Palms. Mr. Bradley seconded the motion. Mr. Kelly explained that some of the cuts had been restored to the departments. The original across-the-board departmental cuts had been reduced by three percent in this first phase. Not only were cost reductions spread to the students, but also to some of the academic departments, to ensure the quality of education the University required.
Vice Chairman Adams requested a roll call vote on the motion. The motion carried.
Respectfully submitted,
Thomas L. Stepp
Secretary