UNIVERSITY OF MAINE SYSTEM
Board of Trustees Meeting
at the University of Maine at Farmington
November 14, 2010
Committee of the Whole
Present:
Lyndel Wishcamper, Chair; Norman Fournier, Vice Chair; Kurt Adams, Eleanor
Baker, Samuel Collins, Benjamin Goodman, Tamera Grieshaber, Michelle Hood,
William Johnson, Kevin McCarthy, Marjorie Medd, Paul Mitchell, Victoria
Murphy, and Charles O’Leary. Chancellor: Richard Pattenaude. Faculty
Representatives: Karen Barrett, Terry Colby, Lois-Ann Kuntz, Kim-Anne
Perkins, and Joanne Williams. Student Representatives: Anastasia Alexis,
Nathan Grant, Zole Hawthorn, Summer Meredith, Bernice Michaud, Evan ScottPollock, and Eli Yoder. University Presidents: Selma Botman, Allyson
Handley, Wilson Hess, Cynthia Huggins, Theodora Kalikow, Robert Kennedy,
and Donald Zillman. System Staff: Tracy Bigney, James Breece, Ralph Caruso,
Rosa Redonnett, Kelley Wiltbank and Rebecca Wyke.
Absent:
Angela Faherty and Wayne Newell.
Trustee Wishcamper called the meeting to order and welcomed everyone.
Executive Session
On a motion by Trustee Fournier, which was seconded by Trustee Medd, the Committee of the
Whole agreed to go into Executive Session under provisions of 1 MRSA Section 405 6A, D & M
for the purpose of discussing personnel and collective bargaining issues and internet security.
On a motion by Trustee Johnson, which was seconded by Trustee Murphy, the Committee of the
Whole concluded Executive Session.
Chair’s Comments. Trustee Wishcamper welcomed everyone and introduced Trustee Kurt
Adams from Yarmouth as the newest member of the Board. He also welcomed Trustee Charles
O’Leary back to the Board after a brief sabbatical.
Trustee Wishcamper announced that former Graduate Student Representative from UM, JulieAnn Scott is doing very well in her new position at the University of North Carolina,
Wilmington. She and Evan Scott-Pollock, the current Graduate Student Representative at UM
are expecting a baby in April. The Board extended congratulations to Trustee Benjamin
Goodman who has accepted an internship in Washington with Congressman Mike Michaud from
January through March.
Trustee Wishcamper commented that the State will start a “new beginning” in January with a
new Governor and a major change in the State government as a result of the November elections.
The UMS wishes the Governor-elect and the Legislature well as they meet the challenges facing
the State and the UMS will need the help from the governmental leaders in facing our
challenges. He pointed out the following key facts:
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The State of Maine was listed last in Forbes Magazine in terms of ranking of states for
business attraction.
We face unfavorable demographics in our University System.
We face issues of continuing to providing affordable higher education.
Committee of the Whole Meeting
November 14, 2010
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We face a weak financial position of our State government.
A declining percentage of State Appropriations to higher education.
We face escalating healthcare costs within our University System.
We face increasing competition from other institutions of higher education including forprofit institutions.
We face growing complexities in terms of what’s expecting of a university in delivering
services to its students and faculty.
We face a culture which is essentially entrenched and political in nature and change is
very difficult to affect.
The Board is very aware of these issues and we deal with them at each Board meeting. The
Chancellor and Presidents are also working on them on a daily basis. We could spend years just
dealing with one of the issues and facing them all at the same time is a daunting task but the
Board is excited about the opportunities as well as the progress that is being made to meet the
challenges.
Chancellor Comments. Chancellor Pattenaude began his remarks by welcoming everyone and
thanked the University of Maine at Farmington for hosting the Board meeting. He commented
that the UMS created the Plan called New Challenges, New Directions to assist in meeting the
challenges the Board Chair outlined. The UMS is starting to establish good relationships with
the new State government and the Chancellor looks forward to helping them understanding the
importance of higher education. The UMS has many partners who will be assisting to make it
clear that higher education is essential for the State of Maine.
Honorary Degree Nominations for 2011. The Board of Trustees reviewed the two nominations
for Honorary Degrees for 2011. The nominations were reviewed in Executive Session and
action was taken in the public meeting without identification of the individual honorees.
Publicity will be the responsibility of the campus after arrangements for conferral of the degree
are complete.
On a motion by Trustee Johnson, which was seconded by Trustee Medd, the Committee of the
Whole agreed to forward the recommendation to the Consent Agenda. Trustee Samuel Collins
abstained from the vote.
Confirm Faculty & Student Representatives to the Board of Trustees. Chancellor
Pattenaude discussed the nominations for Faculty & Student Representative to the Board of
Trustees. The nomination was forwarded through the respective campus President to the
Chancellor for submission to the Board for approval as follows:
Faculty Representatives:
Kim-Ann Perkins, UMPI (two year term)
Karen Barrett, UMF (term from November 2010 – June 2011)
Student Representative:
Nathan Grant, Graduate Student, USM (reappointment for one year term)
On a motion by Trustee Fournier, which was seconded by Trustee Grieshaber, the Committee of
the Whole agreed to forward the recommendation to the Consent Agenda.
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November 14, 2010
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Proposed Changes to the Board of Trustees Bylaws. Chancellor Pattenaude explained the
proposed changes to the Board of Trustee Bylaws. Under Article III of the Board of Trustees
Bylaws – Committees of the Board in Section 3.1 Standing Committees, the proposed language
is to amend the Bylaws to allow Board committees that are not meeting during the regular Board
Meeting to meet by interactive technology. All members attending in this manner will be
considered as present for the purposes of establishing a quorum and may participate and vote on
all matters before the committee, provided there is a physical location designated as the meeting
site for inclusion of the public and that each Trustee must be able to clearly see or hear and
understand the proceedings in process and the public is similarly able to see or hear the Trustees
participating by interactive technology.
On a motion by Trustee Johnson, which was seconded by Trustee Grieshaber, the Committee of
the Whole agreed to forward the recommendation to the Consent Agenda.
Approval and Ratification of Investment Committee Items
The Board of Trustees was asked to ratify and approve the following three action items from the
September 30, 2010 Investment Committee meeting. The Investment Committee did not have a
quorum for their meeting. Trustee Baker, Chair of the Investment Committee explained the three
agenda items.
Approval of Managed Investment Pool & Pension Guidelines. The Managed
Investment Pool (including Endowments) Guidelines and the Pension Guidelines have
been updated to reflect the asset class targets approved by the Investment Committee. In
addition, some benchmarks and language regarding ratings have been changed for
consistency with the Operating Fund Guidelines. The Investment Committee, at its
September 30, 2010, meeting reviewed and approved the proposed Guideline changes.
On a motion by Trustee Johnson, which was seconded by Trustee Grieshaber, the
Committee of the Whole agreed to forward the recommendation to the Consent Agenda.
Approval of Managed Investment Pool Small Cap Manager Search. At its
September 30, 2010 meeting, the Investment Committee reviewed the recommendation
for the replacement of Mesirow Financial Investment Management’s Small Cap Value
product in the Management Investment Pool (including Endowments). The Committee
received presentations from Dimensional Fund Advisors and Integrity Asset
Management. After further discussion of the two managers and their products, the
Investment Committee recommended that Dimensional Fund Advisors replace the
Mesirow’s Small Cap Value product.
On a motion by Trustee Johnson, which was seconded by Trustee Grieshaber, the
Committee of the Whole agreed to forward the recommendation to the Consent Agenda.
Approval of Non-Voting, Non-Trustee Committee Member. At its September 30,
2010 meeting, the Investment Committee discussed the reappointment of Christopher
Robinson as a non-voting, non-Trustee member of the Investment Committee. Mr.
Robinson is a First Vice President and Financial Advisor at Morgan Stanley Smith
Barney. The UMS benefits greatly from the investment knowledge and background Mr.
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November 14, 2010
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Robinson brings to the Committee. His appointment, effective June 2, 2010, would be
for an additional three year term.
On a motion by Trustee Johnson, which was seconded by Trustee Grieshaber, the
Committee of the Whole agreed to forward the recommendation to the Consent Agenda.
Regional Learning Center at Tidewater Farm, Falmouth, UM. Trustee Fournier explained
that the Finance/Facilities Committee met on November 2, 2010 to review the Regional Learning
Center at Tidewater Farm in Falmouth for the University of Maine. The Project was
substantially reduced from its original proposal of July 2010 at $2.3 million to the current
proposal of $983,000. The Project was discussed extensively by the Committee on November
2nd including the funding sources which include the following and includes no System funds for
the project:
UM Cooperative Extension
$577,000
Tidewater Foundation donations
$197,000
UM Gift funds
$209,000
TOTAL
$983,000
The Financial/Facilities Committee recommended the proposal to the Consent Agenda for the
November 15, 2010 Board meeting with the following resolution:
That the Finance/Facilities Committee approves this item as presented and forwards it to
the Consent Agenda at the November 14-15, 2010 meeting for the Board of Trustees to
authorize the University of Maine to expend $577,000 in one-time Cooperative Extension
funds, $209,000 in gift funds to be raised by Cooperative Extension temporarily filled
through a short-term loan from the University of Maine, and $197,000 in funds donated
by Tidewater Conservation Fund, to purchase and fit out two condominium units at
Tidewater Village in Falmouth, Maine, subject to approval by the Vice Chancellor for
Finance and Administration and Treasurer and University Counsel and subsequent
approval by the Chancellor.
Trustee Johnson asked that the item be reviewed by the full Board for clarification of the
proposed project funding sources, specifically how the UM Cooperative Extension will raise the
funds for the Tidewater project. Mr. John Rebar, Executive Director of Cooperation Extension
at the University of Maine, explained the process for developing the $577,000. The Cooperative
Extension raised the funds over a five year period. This was accomplished through three
strategies. The first strategy was as faculty and staff retired or resigned the salary savings were
set aside. The second strategy was through implementing efficiencies which dramatically
reduced the operating budgets. Cooperative Extension has moved to on-line, print-on-demand
publications reducing the postage and mailing budget substantially in the past two years by $92
thousand. Those funds were set aside as well. The third way the Cooperative Extension
contributed one-time moneys is attributed to the faculty who have written their salaries and
benefits into external grants and contracts. There is a portfolio of approximately $3 million in
grants and contracts through which Cooperative Extension was able to acquire $100 thousand in
faculty salary off set.
Trustee Johnson commented that he supports Cooperative Extension projects but asked if this is
the appropriate time to spend this level of funding for this project. Mr. Rebar stated that this
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November 14, 2010
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project is critically important for Southern Maine because half of the State’s population lives
within one hour of the Cumberland County Extension Center. The current office is not in a
facility that has handicap access, there is no off road parking, and there is no space for people to
come and convene. Because the Cumberland County Cooperative Extension office serves 27
thousand people, they need a facility for the future of Maine. Cooperative Extension reaches
over 2500 small businesses across Maine annually, more than any other entity in the University
System. The Extension programs are value added to Maine’s economy and they want to create a
center that will allow expanded outreach, and increase the number of people served. Mr. Rebar
also stated that Cumberland County is the most diverse county in the State and therefore the
Cumberland County Cooperative Extension is reaching more people who are racially diverse
than another program.
Trustee Johnson asked if there was any other investment coming out of UM funds other than the
temporary loan and if the funding would affect scholarships. Mr. Rebar stated that the federal
funds dedicated to Cooperative Extension must be solely dedicated to educational outreach and
not used for “credit” instruction. Trustee Fournier clarified that the only funds from UM is the
temporary loan in the amount of $209,000 and Cooperative Extension will be raising the funds to
cover this amount.
On motion by Trustee Fournier, which was seconded by Trustee Johnson, the Committee of the
Whole reviewed the agenda item, as forwarded by the Finance/Facilities Committee to the
Consent Agenda from its meeting on November 2, 2010, and allowed it to remain on the Consent
Agenda.
New Challenges, New Directions Update. Trustee Wishcamper commented that one year ago
the Board of Trustees adopted the New Challenges, New Directions initiative and it is now an
appropriate time to review what has been accomplished, what remains, and the current priorities.
Chancellor Pattenaude provided a broad overview of the New Challenges, New Directions
initiative. A detailed progress report was submitted to the Board at the August Board retreat.
From this point forward the progress report on the New Challenges, New Directions will be
given annually in August.
New Challenges, New Directions has three Core Goals which, briefly stated, are:
1. Serve the educational needs of Maine
2. Keep the cost of attendance affordable
3. Reduce the cost of operation
To accomplish these goals a Work Plan was generated that stated 37 goals, with time lines and
metrics, aimed at moving forward on the three Core Goals. Circumstances, however, made it
clear that the first priority was to get the financial house in order and that has been accomplished.
The August Annual Report focused on the full range of goals and provided specifics for each.
The general conclusion was that solid, steady progress was being made and that the coming year
would be critical. A more sweeping assessment follows.
1. Serving the Educational Needs of Maine
Progress: Current programs have been analyzed at the campus level for efficiency and
significant reductions and eliminations have occurred or are underway. The Strategic
Investment Fund (SIF) is in place and supports program development and innovation.
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Simultaneously there has been rapid growth in on-line education with new degrees are
being mounted under the new umbrella of OnlineMaine.
There has been considerable work done with the Department of Labor and the Maine
Development Foundation to provide a 10 year timeframe for program development related
to the emerging economy. Partnerships are proliferating including Adult Education,
Community College transfer agreements, and inter-university partnerships. Research
grants are on the rise particularly in the area of environmental sustainability and alternative
energy. The broad conclusion is that despite the financial challenges there is considerable
creative energy at work on the campuses in bringing the curriculum into alignment with the
21st century needs of Maine.
Challenges: Further budget constraints will make it hard to find seed capital to promulgate
new programs. It will be essential to maintain the Strategic Investment Fund, require
accountability, build public-private partnerships, and aggressively seek increased State
funding despite the current economic-political environment. Particular attention needs to
be paid to overall retention efforts and to growing our programs in the Health Professions
and in STEM disciplines.
2. Keep the Cost of Attendance Affordable
Progress: Despite continuing financial challenges, curtailments, and enrollment
stagnation, this year's tuition increase was the lowest in six years. At the same time
financial aid increased significantly.
Challenges: It will be difficult to meet the goal of tuition increases at or below 5% if State
support does not increase. Given that possibility, enrollment increases and costs reductions
will be essential to keep revenues above expenses on an ongoing basis. Private fundraising
will also be essential to continue the increases in financial aid.
3. Reduce the Cost of Operation
Progress: All campus budgets are balanced (some narrowly) and the System ended the
year with a surplus. The campuses have done an enormous amount of work resulting in
approximately 300 positions being eliminated and $25 million in costs avoided. This has
been greatly helped by the contract agreements and the unions deserve our thanks.
Simultaneously there has been enhanced collaboration and an increase in appropriate
"Systemness" in that efforts that benefit from coordination or centralization are being
pursued.
Challenges: Current economic conditions suggest that there will be little improvement in
revenues in the next 12-18 months. Thus efforts like Bending The Trend (a system-Wide
effort to reduce the increase in healthcare costs) need to be actively pursued. Also the
current admissions and marketing initiatives will be central to ensuring strong enrollments.
Finally, we are entering a new round of negotiations that will be critical to how we
proceed.
Chancellor Pattenaude concluded by stating there is growing alignment between System goals
and campus goals; programs are being changed or added from a strategic perspective; tuition
increases have been limited; and, costs are under greater control. All this is occurring in an
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November 14, 2010
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environment marked by greater transparency, collaboration, and cooperation. Thus progress is
tangible, but immense challenges lie ahead so we must maintain our focus, our commitment and
our courage.
Trustee Wishcamper inquired if the UMS is moving at an acceptable rate of speed to accomplish
the goals that have been identified. Chancellor Pattenaude responded that financially the UMS
is moving at a good pace. Adapting to changing conditions and cultural changes are slower but
progress is being made.
Trustee Wishcamper stated that he feels that the two biggest issues for the System is the pace of
change and the dynamic tension between “Systemness” and autonomy of the campuses.
Chancellor Pattenaude stated that different projects accelerate change at different rates and now
there are campuses voices participating in what is the appropriate level of “Systemness”.
President Handley commented that one important aspect of creative tension between
centralization and non-centralization is that now there are several levels of feedback loops and
Vice Chancellor Wyke has been receiving feedback on what is working and what is not. Trustee
Medd commented that “Bending the Trend” curve with the healthcare costs over time will make
a significant improvement for the System and will have a major impact over time.
Online.Maine Education Report and Discussion. Chancellor Pattenaude introduced Dr. Curt
Madison, Director of Distance Education, who presented a draft business plan for Online.Maine
and discussed the future of distance education delivery for the UMS.
Dr. Madison explained that six areas of interest have been identified in order to have a welldesigned online effort:
1. Who will be the students enrolling in online courses?
2. What changes are required in student support services?
3. How will people find out about the UMS online programs?
4. What needs to be done to assure opportunity for faculty to acquire new skills?
5. How can we mitigate the risk involved in online program delivery?
6. Can we predict the resource requirements of a robust online effort?
He explained a well designed online learning environment will include the following:
1. Attract New Populations - Although some students currently enrolled will simply choose
to attend via eLearning, the goal is to expand student populations through marketing to
new populations including, but not limited to: heightened retention rate, Community
College transfers, adult learners, professionals, employer-based continuing education,
students with credits earned in the military and international students.
2. Require New Student-Facing Services - New populations need some newly focused
student services. It expects a growth in multi-campus students, students not proximate to
any campus who require total online service, advising for intermittent and part-time
students pursuing less than a degree academic goal, and rapid fulfillment.
3. Gain Effectiveness from Whole Program Marketing - The concentration on programs
exposes opportunities for shared effort with cross-campus students and instructors. The
System will need to display course offering sequences through 3 year time frames.
4. Require Significant Faculty Development - Establish threshold criteria for course quality
and provide regular delivery of both intensive and self-service faculty development
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opportunities requiring instructional design resources on all UMS campuses with a
centralized group at UC.
5. Establish Program Selection for Online.Maine - Programs get reviewed for placement on
the Online.Maine website by the Chief Academic Officers. Criteria include: best practice
for course quality, access to complete student service, and course implementation
strategies. A few programs from the approved list can be selected for premium focused
marketing.
6. Achieve Risk Mitigation Milestones - Regular review will show: demonstration of joint
marketing of a program, demonstration of joint staffing of a program, establishment of
routine course development processes with guidelines and demonstration of smooth
cross-campus student services.
7. Predictable Investment and Cash Flow - Identify early phased investments, identify
scaled processes that build on successful pilots, and provide alternate timing scenarios for
funding changes.
The Measures of Success will be in the milestones for the first 12 months and the first 36 months
as well as the investment goals over 36 months offset by additional revenues. These are outlined
below:
Milestones in the first 12 months
 Launch Online.Maine with both 100% Online and Blended programs by mid-January
2011.
 Launch an online orientation tutorial for incoming online students.
 Move 10 faculty through a one-week intensive professional development seminar.
 Complete review, construction, and implementation of a premium online program with
10 courses.
 Create consistent etuition policy throughout UMS.
 Hire one instructional designer in UC and one at UMM or UMFK or UMPl.
Milestones in the first 36 months
 Complete review, construction, and implementation of five online programs at the
premium level.
 Move 30 faculty through a one-week intensive professional development seminar.
 Show routine use by faculty of a professional development community of practice.
 Show evidence of cross-campus program offerings utilizing faculty at more than one
institution.
 Show evidence of vitalized multi-campus student services.
 Demonstrate a model of fiscal support that improves as the number of students involved
in online programs increases.
Investment goals over 36 months offset by additional revenues
 Increase support to faculty content experts
o Every course in a 100% online program will pay a $2500 stipend to the content
expert and provide 120 hours of instructional designer time to the course
o 5 programs x 10 courses x 2500 = $125,000
 Increase Coordinated Faculty Development
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November 14, 2010
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o 30 faculty will participate in a one week intensive professional development
seminar
o $500/faculty plus Instructional Designer time and materials - approx $30,000
Increase System-wide capacity of Instructional Design
o Two additional instructional designers
o Salary plus fringe = 2 x $80,000 = $160,000
Comprehensive coordinated website marketing
o One unified campaign = $50,000
Trustee Wishcamper asked what will be the next step in the planning process. Dr. Madison
responded the next step is to get the details of each step vetted through the campuses as part of
the business plan. Trustee Wishcamper asked how aggressive is the growth plan for the faculty?
Dr. Madison stated that it is a matter of resources to train the faculty. Trustee Wishcamper asked
if there is a corresponding decline in ITV as Online.Maine proceeds. Dr. Madison responded
that there is a corresponding decline because there are difficulties with ITV and it is resource
intensive and On-line course are more flexible. Because of those reasons ITV will naturally
decline. Dr. Madison commented that the UMS is tracking similarly to national trends on the
percentage of students enrolled in on-line courses at approximately 20%.
Trustee Wishcamper thanked Dr. Madison and stated that his presentation raised many questions
for the Board about the rate of change, the rate of investment, and the “Systemness” versus
“campusness” and suggested that the Board have an ongoing dialog on the progress of
Online.Maine.
Adjournment.
Ellen Doughty for
J. Kelley Wiltbank, Clerk