xt74qr4nkm2t https://exploreuk.uky.edu/dips/xt74qr4nkm2t/data/mets.xml Lexington, Kentucky University of Kentucky 2004046 minutes English University of Kentucky Contact the Special Collections Research Center for information regarding rights and use of this collection. Minutes of the University of Kentucky Board of Trustees Minutes of the University of Kentucky Board of Trustees, 2004-04-apr6. text Minutes of the University of Kentucky Board of Trustees, 2004-04-apr6. 2004 2011 true xt74qr4nkm2t section xt74qr4nkm2t 


                           Meeting of the Board of Trustees
                                University of Kentucky
                                      1:00 P.M.
                                    April 6, 2004
                           18 Floor Patterson Office Tower


President's Report and Action Items

PR 1         President's Report to the Trustees
PR 2         Personnel Actions (Consent)
PR 3         University Research Professorships
PR 4         Delegation of Authority to Amend the Clinical Enterprise Code of Conduct Addendum

Academic Affairs Committee Report

AACR 1       Joint Bachelor of Science Degree Program in Mechanical Engineering and Joint Bachelor of
             Science Degree Program in Civil Engineering with Western Kentucky University
AACR 2       Candidates for Degrees - Community College System (Consent)

Finance Committee Report

FCR 1        Charles D. Lucas, Jr. Gift and Pledge (Consent)
FCR 2        Gifts and Pledges to College of Law 2002 Memorials Fellowship Endowment Fund (Consent)
FCR 3        Gifts and Pledges to UK Oral History Endowment Fund (Consent)
FCR 4        Douglas A. Stough Gift and Pledge (Consent)
FCR 5        Report of Leases (Consent)
FCR 6        Proposed 2004-2005 Tuition and Mandatory Registration Fee Schedules
FCR 7        Room and Board Rates 2004-2005 School Year

Nominating Committee Report

NCR 1        Appointment to University Hospital of the Albert B. Chandler Medical Center, Inc. Board of

Tuition Presentation


      Minutes of the Meeting of the Board of Trustees of the University of Kentucky,
Tuesday, April 6, 2004.

      The Board of Trustees of the University of Kentucky met at 1:00 p.m. (Lexington
time) on Tuesday, April 6, 2004 in the Board Room on the 18th Floor of Patterson Office

      A.    Meeting Opened

      Mr. Steven S. Reed, Chair, called the meeting to order at 1:06 p.m., and The
Honorable Phillip Patton gave the invocation.

      B.    Roll Call

        The following members of the Board of Trustees answered the call of the roll:
James F. Hardymon, Marianne Smith Edge, Davy Jones, Michael Kennedy, Pamela R.
May, Billy Joe Miles, Phillip Patton, Steven S. Reed (Chair), Frank Shoop, Marian
Moore Sims, Alice Stevens Sparks, Myra Leigh Tobin, Rachel Watts, JoEtta Y.
Wickliffe, Billy B. Wilcoxson, Russ Williams, Elaine A. Wilson, and Barbara S. Young.
Absent from the meeting were Robert P. Meriwether and Elissa Plattner. The University
administration was represented by President Lee T. Todd, Jr., Provost Michael Nietzel,
Executive Vice President for Finance and Administration Dick Siemer, Executive Vice
President for Health Affairs Michael Karpf, Executive Vice President for Research
Wendy Baldwin, and Acting General Counsel Barbara Jones.

        Members of the various news media were also in attendance. A quorum being
present, the Chair declared the meeting officially open for the conduct of business at 1:10

      C.    Consent Agenda

      Mr. Reed called attention to the eight items on the consent agenda, including
approval of the Minutes. He asked for any questions about the items and called for a
motion of approval of the consent agenda. Ms. Wilson moved approval. Her motion,
seconded by Ms. Sparks, carried without dissent. The items on the consent agenda

      Minutes - March 2, 2004
      PR 2     Personnel Actions
      AACR 1 Candidates for Degrees - Community College System
      FCR 1   Charles D. Lucas, Jr. Gift and Pledge
      FCR 2   Gifts and Pledges to College of Law 2002 Memorials Fellowship
                  Endowment Fund
      FCR 3   Gifts and Pledges to UK Oral History Endowment Fund
      FCR 4   Douglas A. Stough Gift and Pledge
      FCR 5   Report of Leases


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Mr. Reed said that the next item on the agenda for this meeting is the President's Report.
He asked President Todd for his report.

      D.    President's Report

      Before beginning his report, President Todd asked the Board to give a round of
applause for Rachel Watts who was just recently reelected as President of the Student
Body. He said that Ms. Watts did a great job the past year and adds a lot to the Board. He
is really glad to have her back on the Board for another term.

      President Todd called attention to the following items in PR 1:

      U.S. Representative Hal Rogers secured $1 million for a cancer initiative at the
      UK Markey Cancer Center to increase survival rates for lethal cancers. Marty
      Driesler, who was on the Congressman's staff for many years, passed away of
      cancer. She had talked to him about trying to emphasize cancer research in the
      Fifth Congressional District. President Todd reported that a press conference was
      held at Somerset.

      The second annual Diversity Awards ceremony was recently held during the
      celebration of the 50th anniversary of Brown v. the Board of Education of Topeka,
      and the Diversity Awards winners were announced. The Women's Writer's
      Conference was also held recently.

      The University contributes to NASA initiatives. This is something the University
      has done in collaboration with the Governor's office and the Science and
      Technology Council that Kris Kimmel operates where UK is going to be part of
      the Moon/Mars initiative to have an office that the Science Council will hold
      across from the NASA-Ames Center in California. The University already has
      about $2 million worth of funding in NASA, but this will give a chance to expose
      more of UK's students to NASA and to continue to get additional grants. Scott
      Hubbard, who is a Kentuckian, is the head of NASA/Ames.

      UK now has a winter intersession to help students meet their course needs. This
      is another way to try to implement getting students through college on a better
      time schedule. The size of the freshman class will be increased to 4,000 students.
      That increase brings about additional students in classes, and this intersession will
      allow some students to take classes during this period. This will allow regular
      class sizes to be held down, therefore keeping the students on track with their
      schedules. President Todd expressed appreciation to Provost Mike Nietzel and
      the Senate for their work on the implementing the winter intersession.

      Senator McConnell recently visited campus and gave $11 million for a variety of
      projects - many of those in Agriculture. He secured $1 million for instructional
      technology research where UK has some leading research going on.


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      The UK trumpet quintet won the national competition in Washington, D.C. They
      competed with ensembles from Thailand, Julliard, UCLA, and the Cincinnati
      Conservatory. The trumpet quintet is just an example of the tremendous music
      program at UK.

      There were between eight and nine hundred people who attended a School of
      Music Benefit Concert on April 2nd. This is the first benefit concert held by the
      University. It was an outstanding event, and the orchestra received an extremely
      long standing ovation.

      Dorothy Brockopp, who heads the Commission on Women, was the winner this
      year of the Sarah Bennett Holmes Award. This is quite an honor on campus in
      which employees are recognized by their peers. President Todd congratulated her
      on receiving the award.

      The 20th anniversary of Merit Weekends was held March 19-20 and March 26-27.
      It has been extended to two weekends now. Students who score at least 28 on the
      ACT or 1240 on the SAT are invited to campus during these weekends. There
      was a record 98 percent show rate this year. There were 708 students which set
      another record. The quality of the incoming student body looks very positive.
      Don Witt and his staff are doing a tremendous job.

      President Todd encouraged the Board to review the other good things in the
report, especially the faculty, staff, and student achievements.

      E.    University Research Professorships (PR 3)

      President Todd reported that in April 1976, the University recommended the
establishment of one-year research professorships. He noted that he was a faculty
member at that time from then until 1982. He said that he watched the people that were
selected because those were people that young faculty members really looked up to.
These were people who were recognized as the leaders in research, who were, at that
time, given the chance to enhance their research program. He emphasized that this is a
very significant recognition on campus.

      President Todd recommended that the Board approve the naming of professors
Subbarao Bondada in the Department of Microbiology and Immunology, Peter Hislop in
the Department of Mathematics, Enrico Santi in the Department of Hispanic Studies, and
Bruce Webb in the Department of Entomology as the 2004-2005 University Research
Professors. He asked those in attendance to stand to be recognized, and thanked them
very much for what they do. They received a round of applause. On motion made by
Ms. Sparks and seconded by Ms. Smith-Edge, PR 3 was approved unanimously.
President Todd extended his congratulations to them and said they would have a fun year.


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      F.    Delegation of Authority to Amend the Clinical Enterprise Code of
Conduct Addendum (PR 4)

      President Todd said that PR 4 is an item that was dealt with at the last Board
meeting. This is a recommendation to get final approval for the Board to delegate,
through the President, to the University Provost and Executive Vice President for Health
Affairs the authority to amend the Clinical Enterprise Code of Conduct Addendum as
needed, including any revisions required by law. He said that he would report those
amendments to the Clinical Enterprise Code to the Board anytime they occurred. Ms.
Sims moved approval of PR 4. Ms. Wickliffe seconded the motion, and it carried without

      Mr. Reed then asked for the Academic Affairs Report from Ms. Alice Sparks.

      G.    Academic Affairs Committee Report

      Ms. Sparks, Chair of the Academic Affairs Committee, reported that the
Committee met and had a very informative meeting. She gave an update on the Early
Childhood Education faculty members. She reminded the Board that the College of
Human Environmental Sciences was disbanded and most of the College went to the
College of Agriculture. A Task Force recommended that the Early Childhood educators
be moved to Education, and that has been done. Their two remaining lines will stay in
Early Childhood Development, but they are vacant right now. There has been a
resignation and a retirement. This resolution met with all of the Deans' approval.

      Ms. Sparks reported that the Committee also had an update on the Southern
Association of Colleges and Schools (SACS). Out of the 30 recommendations UK
received from SACS, 26 were resolved. Four remain and, by and large, they center
around teaching assistants. The point was made that with the budget cuts, the University
will need to rely more on teaching assistants, which could have a bearing on SACS
accreditation in the future. She said that the budget cuts are affecting the University

      H.    Joint Bachelor of Science Degree Program in Mechanical Engineering and
Joint Bachelor of Science Degree Program in Civil Engineering with Western Kentucky
University (AACR 1)

      Ms. Sparks reported that G. T. Lineberry gave a lengthy report to the Committee
on the joint engineering program with Western Kentucky University and the UK College
of Engineering. He reported that it had taken several years to get the program completed,
but it is on track now. The proposal for the joint degree program has gone through the
usual procedures and has the support of the Provost. She said that the Academic Affairs
Committee moves approval by the Board. Ms. Wilson seconded the motion, and it
carried without dissent. (See AACR 1 at the end of the Minutes.) It was pointed out that
this program is mechanical engineering and civil engineering. An electrical engineering


program is shared between Western Kentucky University and the University of

      President Todd said that this is a fairly monumental accomplishment. He thanked
the Dean of Engineering, the Provost, and Davy Jones who stepped in and helped out
with some things that needed to get done. Jeff Dembo, Chair of the Senate, also helped.
The Senate Council moved speedily toward getting some resolution of this so that it
could be moved forward. There are actually going to be students graduating from
Western this year with this joint degree.

      He reported that he made a commitment to this program when he was on the
Council on Postsecondary Education before he ever thought he would be the President of
the University of Kentucky. He recognized G. T. Lineberry in the audience and
expressed appreciation to him for his work on the program and his work in Paducah as

      President Todd said that he committed to this joint degree program some time ago
because he firmly believes that if Kentucky's economy is going to be vibrant and move
forward, engineering needs to be offered throughout the state. This is an overall win for
the State of Kentucky. He said that he was glad that this is behind, and he looks forward
to very good results.

      Mr. Reed asked about the number of projected graduates, and Provost Nietzel said
he anticipates 10 graduates this spring. Mr. Reed stated that it should certainly have an
influence on that region.

      President Todd agreed with Mr. Reed and said that the employers have wanted
this program and have worked with UK as well. He said, in his opinion, it is the right
thing to do.

      Mr. Reed called on Mr. Hardymon for the Finance Committee report.

      I.    Audit Subcommittee Report

      Mr. Hardymon, Chair of the Audit Subcommittee for the Finance Committee,
reported that the Audit Subcommittee had held an informational meeting. He said that
Ms. Wickliffe and Ms. Sparks are also members of that Subcommittee. This meeting was
somewhat leading into the September meeting at which time the Subcommittee will be
looking at the audit and financial statements and hearing from the outside auditors. Both
the internal audit and the outside audit were represented.

      Mr. Hardymon introduced Joseph Reed, Director of Internal Audit, and said that
he was very pleased to have Mr. Reed on the staff. Earlier in the day Mr. Reed had given
the Subcommittee an overview of Internal Audit and its function, and had talked about
some of the things that are going on now. When the Subcommittee gets ready to look at


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the items to be audited next year, it will bring that to the Board's attention as part of the
Finance Committee report.

      He reported that Deloitte worked with the Subcommittee on their audit scope for
the fiscal year ending June 30, 2003. The typical engagement letter had been reviewed
previously, but it was opened for questions. He said that their staffing requirements and
the background of their staff are very important to the University. They discussed the
changes in the accounting rules which seem to be going on in all forms of finances and
talked about the non-audited services that they are performing which the University has
some obligation to look at in order to keep their independence appropriate. It was a very
informational meeting.

      J.    Finance Committee Report

      Mr. Hardymon reported that the Finance Committee met at 11:00 a.m. and had a
quorum. He noted that most of the items on the agenda were consent items. The main
things that were discussed were the tuition and fee adjustments and the room and board
rates. He mentioned the four consent items involving pledges and gifts and said that he
wanted to make sure the Board is properly recognizing these pledges and gifts without
going into the depth that it had in the past. FCR 1 is a gift and pledge from Charles D.
Lucas, Jr. for Parkinson's Disease Research totaling $50,000. FCR 4 is a gift from
Douglas Stough to the Athletic Department for $180,000.

      Mr. Hardymon then referred back to FCR 2. He pointed out that one of the Board
members was influential in this 2002 Memorial Fellowship Endowment Fund. It is being
started with a $51,000 donation over half of which comes from Glenn Sim's life
insurance policy. He noted that Don Sturgill and George Barker are also involved in this
very important gift.

      Mr. Hardymon said that FCR 3 is for the University of Kentucky Oral History
Endowment Fund. He said that it is important that some of the university's long-time
friends see the value of this fund and have made donations. Major donors include
William T. Young, Louie Nunn, Gloria Singletary, Charles Wethington, Gail Hart, and
William B. Sturgill.

      K.    Report of Leases (FCR 5)

      Mr. Hardymon said that FCR 5 is a Report of Leases and such items are truly in
the consent category. These leases are under $30,000 in value. One is an addendum for
more space in Lexington, and three are new leases in Sandy Hook and Hazard.

      Mr. Hardymon said that three-quarters of the Finance Committee meeting
involved FCR 6 and 7. He said that President Todd would comment on FCR 6 before he
made the Finance Committee report and gave their motion on it.

President Todd gave the following presentation on tuition increase:



      "Angie Martin took us through a fairly thorough financial presentation on the
budget target that we have, and as a result of the tuition setting guidelines that we are
going to impose we have that presentation available for you if you didn't get it. I know
that some of the press attended some of the meetings last week. I won't be going through
the full documentation of that, but I will give you some slides and highlights of where we

      "Before I do that I'd like to just make some general comments. We are asking
you to do something today that we'd rather not be asking you to do. And that is to have
another double digit tuition increase. I've had an opportunity to speak at several
legislative gatherings in Frankfort in the last month or so, and I felt compelled one day to
tell the Appropriations and Revenue Committee - 'we don't wake up every morning
wanting to raise tuition. That's not what we are here to do. We are here to provide a
quality education at as affordable rate as we possibly can and we work at that every day.'

      "However, the position we find ourselves in right now is that we have a
responsibility to our students to continue to maintain and enhance a quality educational
experience. We have a responsibility to our state to continue to focus on the lofty
expectation that was spelled out in House Bill 1. We have a responsibility to our faculty
and staff to provide them competitive salary and benefits and the resources that they need
to feel good about the professional task that we ask them to perform. I've said many
times that if Kentucky is to have a strong economy, it must have a strong system of
higher education. Especially in these days, it needs a very strong flagship university that
stands high for the things that have to be done to be competitive.

      "If you don't believe that higher education is important to an economy, you need
to look no further than California, Massachusetts, and North Carolina. Those are the
states that have had a vibrant economy. Even though California hit a dotcom pothole,
they will come back because they have the intellectual firepower to compete with
anybody in the world. However, before there was a Silicon Valley there was a Stanford
and a Berkeley. Before there was a Beltway around Boston that leads the bio-tech world,
there was an MIT and a Harvard, and before there was a Research Triangle Park there
were three great universities. This is no chicken-and-egg situation. In today's world,
higher education is the foundation upon which you build your economy, and we do not
need to let that slip.

      "If you look at the latest Milliken Report about venture investments, about the
kind of things that you need to do to generate a wholesome economy with development
engineers with Ph.D.s, Kentucky was 48th, only above Mississippi and Arkansas.
California and Massachusetts were number 2 and number 1. Massachusetts was 1
because they've got MIT. Personal commentary.'

      "Those are the kind of things, though, if you read that Milliken Report, that we
have to do. Some of that is being done, some of that data was about 2 years old, and I
think that with the New Economy Legislation, with some of the innovations that we are


8 -

doing, we'll probably kick that up a bit, but not dramatically. But again, the vast
economic development strategy is built on a strong educational platform.

      "Kentucky historically has had its economy relying on the extraction of resources,
such as coal, on agriculture, such as tobacco, and we've bragged a lot recently about
manufacturing. But I contend that what we are doing is asking our population to put
together and assemble other people's ideas. We have given them tax incentives to pull
them into the state, we have taken the position that we are not smart enough to create our
own companies, because we haven't invested in that direction, but we will give anybody
what they want to come into Kentucky and create some kind of job that very likely will
disappear in 10 years. There are very few of those that we are going to hold onto.

      "We must raise our economy to a higher level, one that is based on our own
intellectual prowess. Kentucky companies that are started in Kentucky will stay in
Kentucky. And we do have the ability, with the research programs we have, to attract the
new-economy type companies into Kentucky if we target our efforts in that direction.

      "We must generate and create creative thinkers that can help us build this vibrant
economy that we must have.

      "That was the goal of House Bill 1. And we cannot shrink from that vision.

      "The flagship - this university - is doing what we were asked to do. We are
bringing in record numbers of students and each year in the last three years, the quality
has gotten better. We have set research records, and we will do so, very likely, again this
year. We are running about 12 percent ahead of last year. We are bringing in faculty
from around the country who are renowned in the field. That was what we were asked to
do, and we are doing it.

      "And I will say that we have been running this $1.4 billion enterprise more
efficiently every day. And that started two and a half years ago.

      "I will also contend, that we cannot, as a state, cut our way to excellence. There
are some states where they might be able to afford the cut because they had a larger
foundation to deal with than what we did. We were on the upswing, and we can't afford
the kind of cuts that we have been seeing.

      "Some people would like you to believe that we were on an upward task and
everyone was proud of that, and you heard it around the nation, and that this might be a
bump-in-the-road, and then we'll recover when the economy picks back up. My concern
is that it could also be a drop off the cliff. Because the people that we convinced to come
here from the benchmark institutions that we are trying to emulate have come here
because they felt there was a certain thing going on in Kentucky - in higher education.
And they want to be a part of it. And momentum in higher education shifts just like it
does in basketball games. When the other team gets it, you will find that people like
Vanderbilt start coming after our top faculty, and we lose that game.


9 -

      "So, once again, we are not going to be able to, with the educational base that we
have to build on, to cut our way to excellence, and we cannot continue to do that much

      "We have got to stay the course behind the concept of House Bill 1, not just for
ourselves, and not just inside the walls of this institution, but for the good of the State of
Kentucky. We are, I think, the hope of the economy of this state. We have that
responsibility. And it gets very difficult when you can't espouse that as strongly as you'd
like, because you are afraid that it might bring repercussions that might not give us the
tools that we need to move forward.

      "But you can't lay down for long, if you feel like I did today, three years ago at
this podium, in this very room when I was announced as the next President of this
university. My comment on that day was that the University of Kentucky had been
challenged to become a Top Twenty Institution. And while that was a great challenge, I
did not intend to fail because I know the faculty that is here, and the staff that is here, and
I knew the pent-up energy that was ready to be released. And I knew the capabilities that
we could bring forward.

      "With your continued help, we can keep that going. Our faculty and staff have
kept their heads up these last three years, but it's beginning to surface now. You can't
hide facts too long when you start losing people. Those stories get out, and they spread
throughout higher education, and they do throughout Kentucky. And that's the kind of
thing that we have got to stem - that tide, and it's time that we would hope to get some
recognition of that across this state and in Frankfort.

      "I'm going to show you now why we are doing with tuition what we are doing. I
won't give you all the numbers that Angie gave you, but the first two slides of the
PowerPoint presentation will pretty much position the situation.

      "[Years] 2001-2002 - the targets for our appropriations was $313 million, we
didn't get all that because we got hit with a cut. These cuts haven't just come from this
administration, we've had three years of these cuts.

      "If you look, this year, at what was in the bill right now for our appropriation, it's
$276.8 million, which includes a $16.7 million non-recurring hit that we'll have to write
a check by the end of June. That's the decline in our appropriation. Angie showed you a
few moments ago, if you were in the Finance Meeting, what the growth in our enrollment
has been, and it's been very significant.

      "If you look at the cumulative impact of these cuts, if this budget stays in place
the way it is, we will have been cut $74 million in this period of time. And just to put it
very simply, that is money that we would have had to spend. That's what I call our
dreaming money.


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      "When I took this position, I knew that the State of Kentucky, even in the best of
situations, given its economy and the projections, could not give us enough money to be a
Top Twenty Institution. We had to figure out, internally, how we could find every dollar
that we could use to focus on this situation, and we've done a good job of that.

      "We gave you a sheet last week that talked about the efficiencies that we've done
internally. We have reallocated between $20 and $25 million annually now. We are
using that to pay health-care costs for our employees, to get them up to a competitive
rate. We are taking our entities that should be self-supporting and pulling out all the
general funds extended to them, so that we don't have them living off that general fund.
But, if we get all those things and didn't have to pay this money back, we would have
$74 million with which we could attack that Top Twenty Mission. And, that's where it
kind of hurts right now because we've been trying to position ourselves on a plateau that
is higher than where we started on our own resources.

      "I did not argue with the theme that you can always find efficiency, because Dick
Siemer found about $600 thousand worth, just a couple of weeks ago, in a contract that
we negotiated. We will continue to look for those dollars. What I said to the faculty and
staff at one point, when I came in, is, let's view ourselves in a box, and any money that
we spend outside of that box is money that we can't use to pay your salary, to pay your
benefits, and to drive a quality education. So, we are watching that box very carefully.

      "When I interviewed for this job, one of the questions a faculty member asked me
was, 'What is it in your business background that is going to help you in this job?' I
think it was kind of a cynical question at that point in time, I did not realize how
prophetic my answer was, but having started two companies from scratch, I know how to
watch cash. And we've been doing that; we've had the treasurer, the finance officers,
we've been looking for every dollar. And the tragedy of the cuts we are now suffering is
that that was the dreaming money. That's what is being removed.

      "If you look at our situation, we haven't done the final budget, but these are just
some rough numbers for right now. We have been cut $5.5 million recurring in our base
budget. Our investment income, because we've had some long-term instruments out
there that we've got to renegotiate, interest rates are down, will be down $1.2 million.
We are proposing a 2 percent raise for faculty and staff that is not mammoth by any
stretch, but it is an obligation I feel very strongly that we have to our faculty and staff.
Benefit costs continue to go up.

      "We've been greatly successful in our recruitment of Governor's Scholars, and
our Scholarship Fund has to go up, plus, as Angie pointed out, when we raise tuition, it
raises all of our scholarship pot as well. With utility and coal prices going up, it's going
to hit us, and we have other expenses that come into play.

      "The bottom line is the total funds that we need are $32 million. And this is not
the frill money. I haven't even fully read the Provost's document about the things he'd
like to do new and differently.


11 -

       "If we have this tuition increase that we are asking you for today, that would bring
in $20 million which means that we still have to reallocate $12 million internally to get a
flat bottom line. So, what we are asking for in this tuition is not enough to cover the
needs that we have, and so we are continuing to look at other segments.

       "We are still a very good deal! I don't like talking about percentages because that
can be misleading. In some states their tuition is a lot higher than ours. A small
percentage of increase will give them more money than we get for a large percentage
increase. But if you look at Kiplinger's Report, based on actual annual cost per student,
we are 4th out of 500 best deals. And among our benchmarks, we are the best deal.

       "What we are trying to do as we go through the process is to figure out ways that
we can increase the tuition and fees that we feel we can justify and rationalize. So, we
are looking at cost price of value this year. We are aligning the cost with the price. It
costs more to teach upper-level students than lower-level students. It costs more to teach
engineering than it costs to teach other disciplines. We are charging differential tuition
and fees for those programs that have the higher costs. In addition, we are taking one
differential tuition and fees and returning those to the departments so that they can use
those to increase the number of faculty, increase the number of teaching assistants, so that
they can do what they need to do - to do their job. And we want to decentralize that
decision and give them the ability to enhance their programs in the way they see fit, so
we had to come up with ways to give them some additional revenue.

       "But to teach more students with less state funds, here are some of the things that
we've done, not an exhaustive list, but we went to the Provost Model which saved us $2
million per year. Since July 1, 2001 we have eliminated 293 staff positions, including at