Latest entries in Live Blog: February 2009 Board of Curators meeting
Follow The Maneater's coverage as the UM system Board of Curators meets at MU Thursday and Friday. The board is the governing body of the four-campus university system, which includes MU, UM-Kansas City, UM-St. Louis and Missouri University of Science and Technology.
Feb. 6, 2009
Brady Deaton gives campus report
MU Chancellor Brady Deaton updated the Board of Curators on all activity on the campus since the last board meeting.
Deaton shared information about the scientific progressions being made by professors across campus. Included in this report was Habib Zaghouuani, a professor of molecular microbiology, who is working to cure type 1 diabetes and Gabor Forgacs, a professor of physics whom has mastered tissue engineering.
"This science leads to creation of [organs] from the cells of the body itself," Deaton said.
Deaton also discussed the current budget planning and review process. This will include an environmental scan of the university as well as the development of a "needs list." This college and academic divisional review will be multi-year and includes all university funds.
Deaton continually stressed that "MU is transpaparent," reviewing the budget with assorted organizations on campus, including the deans, faculty council, staff advisory council and the student government.
"Communications about the budget is something very important on this campus," Deaton said.
The budget for fiscal year 2009 currently rests at $1,747,983,434.
President Gary Forsee gives State of the University address
UM President Gary Forsee gave his State of the University Address at the Board of Curators meeting this morning.
He presented his perspective on the challenges and opportunities that will lie ahead. Reflecting on the past year, Forsee stressed how much he had learned and reflected on what he could do to make even more changes.
"Everyday I learn more, find more to be proud of and even more to brag about as I become more confident in what we can do in higher education to help lead our state," Forsee said.
Forsee discussed the highlights of 2008, including establshing a health science center and a performance management system.
"I want you to be impressed with the scope and scale of the impact that we have on the state of Missouri," Forsee said.
Forsee discussed the importance of ensuring that UM remains competitive on both the global and national scale. He proposed "five actions of shared engagement".
The first of these is a proposal which Forsee referred to as "focusing on the 'outside-in.'" This plan will ask Missouri's largest private and public employers what their needs are so that a UM education may appropriately match them. A task force will begin making recommendations on Dec. 1.
Forsee also proposed identifying critical areas across the state where the university can offer support to state P-20 efforts to ensure that there is a more "seamless pipeline" for Missouri students between early childhood to higher education. He also discussed holding intensive university-wide audits as well as an increase in licensing revenue to $50 million annually by 2014.
Feb. 5, 2009
Curators vote to delegate authority to President Forsee
The Board of Curators voted to give President Gary Forsee the authority to furlough employees when necessary. That would Forsee to put employees on a involuntary, unpaid leave of absence.
"Furloughs give the university the ability to reduce salary costs on a one-time basis and are especially useful in the event of an emergency" Betsy Rodriguez, Vice President of the Human Resources Committee, said.
The board also voted to give Forsee the authority to develop a procedure for employees who lose jobs due to budget reductions, also known as transition assistance.
Transition assistance components include continued access to medical insurance for employees who lose their jobs due to budget restrictions. Severance pay for these employees will be based on years of service to the university.
The full board will discuss those issues tomorrow and make a final decision about them.
Board approves new retirement plan for UM employees
The Board of Curators approved a new retirement plan and salary benefit changes for UM employees in their Compensation and Human Resources Committee meeting.
The new retirement plan will divert 1-2 percent of an employee's salary to contribute to their retirement fund.
"I think many employees are afraid this new plan is a short term solution for a long term problem," Betsy Rodriguez, Vice President of the Human Resources Committee, said. "But this truly is a long term solution."
The retirement plan is a permenant change for all benefit-eligible employees, but won't affect part-time workers at the university.
"The plan will have an annual fiscal impact of $11.9 million on the university based on current salaries," Rodriguez said.
One percent would be diverted on the first $50,000 of an employee's salary, while two percent would be diverted on all salary above the $50,000 mark.
"This plan allows the university to continue their commitment to supporting pension benefits for their employees," Rodriguez said.
The board's approval of salary and benefit changes prohibits merit increases in employees' salaries for the 2010 Fiscal Year and eliminates the early retirement package.
"In the end, the package is too expensive in these tough economic times and is a long-term liability," Rodriguez said.
Compensation and human resources committee discusses employee benefits and expenses
The Compensation and Human Resources Committee opened session with a brief speech by UM system president Gary Forsee.
Forsee discussed what was to come to UM in 2009 and 2010 and spoke about current university planning to set the stage for the work that will unfold later in the year.
Forsee cited the four biggest financial challenges that are currently facing the UM System. He said the combination of financial shortfalls in both tuition, philanthropy, external research and state funding was a "perfect storm."
"Historically, we've had the ability to attract students to our university at base tuition as well as increase tuition along the way," Forsee said. "We’ve reached the point where enrollment will start to decline."
Forsee said that he has asked the campuses to review their budgets, in hopes of reducing them.
"We have the asked the campuses and the sytem office to continue that budget review process." Forsee said "At some point in time we need to get out of this day to day grind and get back to business. "
Forsee closed his speech with a discussion of faculty benefits, conceding the floor to Betsy Rodriguez, UM Vice President of Human Resources who briefly discussed the expenses of benefits.
Mike Paden, UM Associate Vice President of Benefits gave an update on the Employee Benefits Program, which will operate using a benefits index that Paden will be elaborating on as the meeting continues.
Curators select investment firm, discuss financial matters
The Board of Curators has spent the past two hours interviewing potential candidates for investment management and have finally reached a decision.
Steve Holmes and Mark Caplinger of Summit Strategies Group spoke about how UM was an "east coast biased" institution, financially.
Holmes went on to discuss Summit's own financial beliefs.
"I don’t know that I want to invest with the investment arm of a French insurance firm where the number one goal is growth," Holmes said.
Rocaton Investment Advisors, LLC emphasized the importance of investing in passive strategies and focused on the longstanding relationship they have maintained with the UM System.
The boards decision will be released later this evening.
The board also discussed diversification of investments with Robin Pellish, a consultant for Rocaton who has worked for them for many years. The board voted unanimously on a motion to allow for passive investment.
"Our portfolio is in need of rebalancing," Vice President for Finance and Administration Nikki Krawitz said. "We think a good way to do that would be to put it into passive management"
Pellish approved of the proposal.
"I think it gives the board another degree of flexibility in how to structure equity programs," Pellish said.
Board of Curators Finance and Audit Committee opens meeting
Welcome to the live blog from the UM system Board of Curators meeting!
This blog includes up the minute coverage of the Feb. 5-6 curators meeting.
The UM system Board of Curators convened for what will be a two day long meeting this morning at 10:30 a.m. The meeting opened with a discussion of university investments.
Vice President for Finance and Administration Nikki Krawitz spoke about UM's relatively good investment situation despite the recent economic recession.
"We've had a very laddered portfolio," Krawitz said
She went on to say that UM was "very fortunate because [the university] has adequate liquidity."
The board projects that the 2009 investment income will rest at around $39,030,000.
At current, the board is looking to enrich their investments with the hiring of an investment consultant firm. Interviewed at today's meeting was St. Louis based investment firm Summit Strategies Group and Rocaton Investment Advisors.
The board will soon making a decision regarding the hiring of one of these firms.
