Tulane University
Staff Advisory Council
Minutes of Thursday, February 12, 2009
ATTENDEES
ATTENDEES
DOWNTOWN CAMPUS
OFFICERS
Glenda Folse
Karen Hiller
Tami Jenniskens
Present
Absent
Present
Roxanne Johnson
Paula Lucas
Linda Miller
Cindy Stewart
Shirley Tubre
Merisa Pasternak (proxy)
Yesenia Vasquez (proxy)
Absent
Excused
Excused
Absent
Excused
Present
Absent
Susan Barrera, Chair
Rhonda Earles, Vice Chair
Gwen Chavez, Election Coordinator
Lisa Britton, Recording Secretary,
Present
Present
Present
Present
Member at Large
UPTOWN CAMPUS
Marty Brantley
Liz Davey
Shirley Dymond
Miriam Espinosa
Cynthia Hayes, Immediate
Absent
Present
Present
Present
Present
Cheryl Sterling, Corresp. Secretary
Jered Bocage, Parliamentarian
Proxy
Present
MEMBERS – AT – LARGE
Rob Platner
Present
INVITED GUESTS
Catherine Chan, WFMO
Ana Lopez, Guest Speaker
Brian Mitchell, Guest Speaker
Present
Present
Present
VISITORS
Mike Griffith (proxy for Linda Wright)
Wendy King (proxy for Cheryl Sterling)
Present
Present
Past Chair
Aaron Martin
Lisa O’Dwyer
Judy Vitrano
Linda Wright
Argentina Acosta (proxy)
Jenny Daigle Benoit (proxy)
Laurie Orgeron (proxy)
Present
Present
Present
Proxy
Absent
Absent
Present
NORTHSHORE
Eileen deHaro
Mary Little
Robert Johnson (proxy)
Present*
Present*
Absent
*Via teleconference
All Officers are serving the Staff Advisory Council term 2008 – 2009
TU Staff Advisory Council Meeting
February 12, 2009
Page 2
Call to Order: Susan Barrera, SAC Chair, called the February 12, 2009 meeting of the
Staff Advisory Council to order at 3:32 p.m. The meeting was held in the Lavin Bernick
Center, Race Conference Room on the uptown campus
I. Review and Approval of the Minutes
Chair Barrera called for a motion to approve the November 13, 2008 minutes. Motion
was made and the minutes were approved.
II. Guest Speakers
Brian Mitchell, Associate Provost for Graduate Studies and Research, and Ana
Lopez, Associate Provost for Faculty Affairs gave a presentation on the upcoming
SACS (Southern Association of Colleges and Schools) re-accreditation process for
Tulane. (See Attachment 1)
SACS is the accrediting body of U.S. southern states, specifically commissioner of
colleges that performs the accreditation. There are different levels of rating which is
based on the highest degree offered by an institution and Tulane is at the Level VI,
offering four or more Doctoral Degrees.
Part of the accreditation process is the Quality Enhancement Plan (QEP) is referred to
as “The Big Idea”. The “big idea” is an idea that comes from the bottom up, and
bubbles up as a result of an extensive process involving students, faculty, staff, parents,
everyone in the community. We are all asked to think creatively for initiatives to help
Tulane enhance the student learning process. Tulane has a Committee working to sort
through all of the ideas that have been submitted and they have received so far 120
suggestions. The Committee will get a selection process worked out to present to
students and administration. Everyone is encouraged to come up with a big idea -faculty know about teaching, students about learning, and staff are most familiar with
the ins and outs of how to make things possible and work better.
There will be an offsite review – all documentation is reviewed to make sure we are in
compliance. They will come to campus, review the QEP. Offsite documentation,
compliance certification process deadline is September, 2010. The offsite team will
come back to us with comments. In the spring 2011 there will be an onsite visit which
kicks QEP into full force. The Committee will go back and submit our recommendations
to SACS, and hopefully we will be accredited.
Part of the accreditation process is the “Institutional Effectiveness”, and will impact
Tulane as a whole under section “3.3.1.2 administration support services”. This means
that every “unit” (department/division) at the university has to have a “mission
statement”. The process that needs to happen:

Define a mission for your unit – this is the foundation for mission statements
planning.
TU Staff Advisory Council Meeting





February 12, 2009
Page 3
Develop outcomes – getting into the detail of what going to be assessed on.
Specifically describing benefit your unit hopes to achieve or impact that you want to
Link programs/activity to outcomes
Assess progress
Use results
Standardize annual reporting, at the end of the year there should be some report
that goes to your direct reporter – what is your mission, what are your objectives,
what have you done to measure that, and what are you going to do with that.
Then the process starts all over again, you implement ways to improve and end of your
next annual report, you can show your improvement and you have to document your
improvement so we can show these outside reviewers that we have the processes in
place. So we need to get started now so we can have at least two cycles of reporting in
place.
Doesn’t need to be complicated, once you have your mission statements, outcomes and
some assessment methods identified, we can take the proactive measures to show to
the outside reviewers.
Questions from the floor:
Is there a deadline to submit ideas? No specific deadline but certainly by the end of
March we hope to have received all ideas. The sooner they receive ideas, the better.
How often does Tulane need to be accredited? Every ten years. In the future we will
need to present ten years of data, we will not be allowed to submit only two years of
data. Will not be something that we can stop after submitting the info, and then start
collecting information a year or two prior to the due date. We now begin by collecting
data, and building on the information we gather.
III. WFMO Liaison, Catherine Chan
Catherine Chan, Director of Payroll, was given three questions to be addressed from
our November meeting:
Question 1, Why is flextime not available to all employees? Flextime is allowed for nonexempt staff dependant on the needs of the department whether it can be worked out or
not. It is a privilege, not a right. The following is in the Tulane Staff Handbook:
“Flextime allows flexibility in the scheduling of an employee’s work day or work week to
better meet the needs of the employee’s department and accommodate, to the extent
possible, the employee’s scheduling preferences. Flextime scheduling applies to
nonexempt employees only.”
“Flextime scheduling is a privilege, not a right. You may request a flextime schedule by
submitting a proposal in writing to your supervisor. Flextime requests must be approved
in writing by your department head. Reasonable efforts will be made to accommodate
TU Staff Advisory Council Meeting
February 12, 2009
Page 4
your flextime request, subject to the service needs of your department as determined by
your supervisor. Flextime scheduling may not be feasible for some departments.”
Question 2, Is it possible to lower the continued tuition waiver to 20 years of service
rather than 25 years? WFMO is the communicator of the policy, they do not make the
policy. They are responsible for seeing policies implemented. It is suggested for any
new policy proposal, submit in writing to Anne Banos for administration review and
consideration.
Question 3, Is it possible for Tulane to offer a commuter savings account? We do not
offer that program, again would need to submit a proposal to Anne Banos. The IRS
allows the employee to do a similar saving program for commuting to and from work, i.e.
parking, mass transit.
Questions from the floor:
Another question was originally asked if we can have a lower level health benefits that
would be a higher deductible ($1,500) which would allow us to have a HAS account
(Health Savings Account)? It was discussed that this too should be sent to Anne
Banos.
Has the recognition for employee anniversary date been scheduled? Does not have the
exact date but thinks the date in going to be in April this year.
IV.
Report of the Chair, Susan Barrera
No report.
V.
Officer Reports
A. University Senate
Rhonda Earles gave the following report of the February 9, 2009 Senate Meeting
with President Cowen’s update:
SACS reaccreditation – Provost Bernstein was called upon to update the senate
on the reaccreditation scheduled for fall 2011. The university’s documentation of
compliance with standards is due Sept. 2010; the SACS will then notify Tulane of
its findings in Nov. 2010; the following month, the university’s quality
enhancement plan is due, items for inclusion will be identified by summer 2009;
the on-site visit is scheduled for spring 2011; the university will be notified in
summer 2011 of SACS’ findings. Provost Bernstein announced that a director of
institutional assessment is being sought; this position is in addition to the
institutional research director currently in place.
TU Staff Advisory Council Meeting
February 12, 2009
Page 5
Economic Stimulus Package – Yvette Jones, sr. vice president and COO, was
called upon to discuss the possible implications for Tulane with regard to
President Obama’s proposed economic stimulus package. Of the proposed
$825 billion, $198 billion would come to the states with an estimated $3.5 billion
to La. This provides a unique opportunity for higher education, and the university
is identifying projects for submission. A 12-to-24-month window of opportunity is
projected.
President Cowen addressed three issues:
education, and the impact on Tulane.
the state of the economy, higher
The country’s current recessionary period is unprecedented and is expected to
be protracted for an estimated three years to five years. This is not a time of
“business as usual.” No sector of the economy is immune, although New
Orleans has not seen the major effects that other cities have due to the postKatrina entrenchment.
An impact on higher education is to be expected. In addition, the Madoff scandal
has taken its toll on some institutions, most notably Brandeis, which may have to
sell off its renowned art collection, valued at $350 million. The AAU (American
Association of Universities) is conducting a content analysis of information
provided by its 61 members. The results of the analysis will provide some
indication about whether this is a short-term phenomenon or a new paradigm for
higher education.
Currently, Tulane is weathering the economic downturn better than many of its
peers. The decisions made and actions taken following Hurricane Katrina have
helped in this regard. Student interest in attending Tulane remains high, with
more than 40,000 applications received to date. Along with the increased
interest, there’s been an increase in the number of students applying for needbased financial aid. Research monies remain strong. At present, the university’s
cash and liquidity status eliminates its need to borrow. Major fundraising has
disappeared.
President Cowen is focusing on three challenges:
•
Maintaining and increasing the number of alumni giving unrestricted gifts
(annual fund gifts).
TU Staff Advisory Council Meeting
•
•
February 12, 2009
Page 6
Financial aid is over budget by $8 million to $10 million this year. This is a
direct result of the amount of merit aid being awarded to a higher quality
class. This will be difficult to continue at this level.
Funding from the state has decreased. While this impacts Tulane, it has a far
greater impact on the public institutions.
While, the value of the university’s endowment is down, 2011 is when the full
impact of the recession is expected. In light of all that has transpired and is
anticipated, the university has instituted a headcount stabilization plan. Current
open positions are coming out of the budget; requested exceptions are being
reviewed one by one. Those employees making $35,000 or less who have been
with the university for more than six months are eligible for raises in FY10;
salaries for others remain at the FY09 level. The next phase of the salary
enhancement program has been postponed. President Cowen is committed to
“no single person will lose a job.”
As the university goes forward, the institution will meet as much of the financial
aid demands as possible. It remains committed to diversity. While ongoing
commitments will continue, the level of commitment may decrease.
In response to a question regarding AAUP’s censure of Tulane and other
universities, President Cowen reiterated his position that the process used to
evaluate these institutions and their actions after Hurricane Katrina were flawed
and the resulting report was flawed. Responses to the AAUP’s concerns were
ignored, and inflated enrollment and other statistics were used. Since the
university supported the interim principles set forth by the AAUP (to the point of
including them in the handbook), President Cowen considered a subsequent
letter noting actions that could be taken to come out of censure as an
unprincipled request. He referred anyone interested to the www.aaup.org
website.
•
The meeting continued with housekeeping items, i.e., first readings, changes
in verbiage due to new regulations.
B. Board of Administrators
Rhonda Earles gave the following report of the December 11, 2008 Board of Tulane
General Session Meeting:
Economic impact. President Scott Cowen provided the board with an update on
the university’s economic status vis-à-vis recent activities in the stock market,
housing market, etc. Although there has been a decline in its value, there has
TU Staff Advisory Council Meeting
February 12, 2009
Page 7
been no “run” on the endowment; cash and liquidity are currently okay. Other
institutions are not faring as well: Princeton’s operating budget is 45 percent
dependent on its endowment, which has taken a significant hit; Stanford’s
endowment and research funding has decreased significantly and Stanford is
making 10 percent across-the-board cuts; Harvard has instituted a
faculty/staff/salary freeze; Brandeis may have to sell its art collection due to
Madoff investments.
The university has a $125 million line-of-credit that has not been tapped and a
cash reserve from FEMA. At Tulane, keeping faculty and staff is Scott’s #1
priority; no layoffs are expected, but there’s no guarantee. Whether or not raises
will be available is in question. Each 1 percent of the raise pool is $3 million to
the bottom line for the university going forward.
Project 2020 is on hold. The goal is to maintain current operations. A headcount
stabilization program is in effect; a freeze is not out of the question. {N.B.—The
energy bill/year is $20 million; the operating budget is $700 million/year.}
Student aid/applications. With regard to student loans and financial aid, Tulane
has not yet seen a large negative effect. Going forward, need-based and meritbased aid are expected to increase. Between 1,000 and 1,200 transfer
applications are received annually, with 200-225 being admitted. No aid is given
to transfer students. Applications are currently at 40,000, with a yield of 1,400
targeted; 7,000 have been accepted at this time. The professional schools are
seeing an increase in applications as well. Tulane’s enrollment is recovering
faster than had been expected.
In response to a question, Scott stated that we have not seen a significant
decrease in student population. The real test will be pre-registration for fall ’09
and transcript requests for students transferring to public institutions closer to
their homes.
Campus security. Recently, 16 security cameras were installed and 12-14 more
will be installed. Seven additional emergency lights have been installed. It is
likely that the former Pi Kappa Alpha house will become a TUPD substation.
VI. University Senate Committee Reports
1. Benefits
No report.
2. Budget Review
Aaron Martin reported that the preliminary budget for 2009-2010 was approved.
(See Attachment 2)
TU Staff Advisory Council Meeting
February 12, 2009
Page 8
3. Information Technology
No Report.
4. Equal Opportunity
No Report.
5. Physical Facilities
No Report.
6. Social Issues
No Report.
VII.
SAC Sub-Committees
1. Election Committee
Gwen Chavez reported that according to the SAC constitution, we are required to
elect one-third of our representatives every year. Since all members were elected at
the same time, we now have to ask some people to roll off. The process used to
arrive at the roll off:

Gwen sent an email to everyone asking for volunteers to roll off since we need to
change one-third of the membership. It was hoped that enough people would
volunteer to roll off. We did have some volunteers since some reps were having
a difficult time attending the meetings due to work obligations.

Based on those results, additional members needed to roll off. Following the
guidelines in our constitution, we looked at attendance records.
D. REMOVAL
If a representative fails to attend two consecutive unexcused or four excused or
unexcused regularly scheduled meetings, a majority of the officers may agree to
consider that representative’s position vacant and shall notify that representative of
this determination in writing, with a copy sent to all officers. Representatives who
have been so notified may petition the chair in writing for reinstatement within two
weeks of such notice. If no petition for reinstatement is received or the chair denies
such petition, the chair will appoint the next eligible member of the proxy
representative pool for that representative’s district to fill the vacancy for the
remainder of the applicable term.
TU Staff Advisory Council Meeting

February 12, 2009
Page 9
The following either volunteered or were asked to roll off at the end of the 20082009 term. Uptown (4 reps): Marty Brantley, Rhonda Earles, Paul Forbes and
Linda Wright. Downtown (4 reps): Kathleen Brumfield, Karen Hiller, Roxanne
Johnson and Cindy Stewart. Primate Center (2 reps): Mary Little and Eileen
deHaro.
There was a question as to why both reps at Primate Center are being rolled off the
roster? Gwen responded that all reps who met the criteria stated in the constitution
were rolled off. When reviewing the Northshore reps’ attendance, both have exactly
same number absences, four excused and one unexcused. Any time they were
listed as “telecommunication” they were considered as “present” not as absent at a
meeting.
Eileen said when composing the constitution, the constitution committee had wanted
for four consecutive excused meetings and three unexcused meetings and not per
year. However the constitution that was voted on and approved by the members
states “two consecutive unexcused or four excused or unexcused regularly
scheduled meetings.”
Eileen stated that with both reps being asked to roll off there will be no veteran
representatives for the Primate Center. Chair Barerra asked for any suggestions to
help arrive at an agreeable solution. There still needs to be an election at the
Primate Center to have two representatives. There are proxies at the Primate
Center that may want to run.
From the floor, we were reminded that when the constitution was revised, there was
a big discussion on how many consecutive excused and unexcused. It was finally
decided if you missed a third of the meetings, you should be rolled off.
Another issue that we knew would be a problem was having some members have a
2-year term and others a 3-year term.
Since everyone was voted as a
representative at the same time, this particular situation of deciding 2- and 3-year
terms, posed a problem for the first year of roll offs. Once this initial roll off gets
started, the future years will start to catch up and will be easier by having the
staggered term limits. For the Primate Center at the next election, the person who
receives the most votes at the Primate Center will be elected to a 3-year term and
the person receiving the second largest number of votes will be elected to a 2-year
term for election roll offs.
Also from the floor, it was asked when selecting at-large-members, if we should be
looking to appoint members to improve diversity. However, the constitution states
at-large-members must be chosen from those who were previously SAC
representatives.
After discussion, Mary and Eileen offered to roll off. Both have served with SAC for
many years. Mary also offered to mentor future representatives as she has held
various positions. Mary also said she did not feel it was fair to have both reps at the
TU Staff Advisory Council Meeting
February 12, 2009
Page 10
Primate Center rolled off at the same time. Gwen reminded the membership that all
reps that met the constitutional criteria were rolled off; an exception could not be
made for the northshore.
Gwen wanted to remind us that nominations will be in April and the election will be
held in early May. Any comments or feedback, please contact Gwen.
2. Electronic Technology and Information
Aaron Martin reported that he is not sure there is a committee, but said he needs to
get with all committee chairs and assign people to maintain and take care of their
sections on the websites. Also, need to rethink the monthly news letter Staff Talk,
arranging and sent out.
3. Staff Appreciation
Rob Platner reported we would like to have something different this year and have it
go along with the Tulane Wellness theme. We proposed to the Administration of
having a “Fun Run Day” type of event to be held at Audubon Park. The event would
be held on a Saturday (either end of September through early November), when the
weather is nicer and also be able to have the entire family participate. The date will
also not interfere with any Tulane football games.
Administration has just approved our idea and we are now trying to schedule a date.
Once the date has been set, we will ask for volunteers for the committee to begin
planning the event. Everything will come down to cost, and we do not have a budget
yet but some of the main points proposed were:






This would be offered as part of SAC staff appreciation, a “fun day” on a
Saturday. (Would also need to have an alternate rain date.)
Held at Audubon Park and could offer a smaller (shorter distance) walk/run for
the children. For the adults and family walk around the track one time.
For the children we could have a space walk and some tables set up for
children’s activities such as having some people doing face painting; maybe have
a “treasure hunt” (like Easter egg hunt) using plastic toys/trinkets/candies that
children get at the dentist or doctor’s office.
For the adults, possibly UnitedHealth would be interested in participating and
doing some things. Could ask some TU medical students to do screenings such
as the blood pressure or cholesterol screening. For staff members we could give
them a free t-shirt.
Would like to involve the Athletic Dept to help set up an area for the walk/run.
Possibly they could set up some activities like basketball throwing, or football
toss.
Offer discounted rate for tickets to visit Audubon Zoo as part of the event
There is no committee yet but once a date (possibly even in November) has been
confirmed, we will get a committee together. This is the proposal for Staff
TU Staff Advisory Council Meeting
February 12, 2009
Page 11
Appreciation event for this year. The SAC representatives agreed that this would be
a good idea since we have had a good participation on the walking program and tie
in with the zoo, agreed this is a good idea to go forward and plan this event. The
Ricky Graham event last year was great but not everyone could participate so doing
this on a Saturday should make it easier for more staff and their families to
participate. By having this in the fall, would give us more time to coordinate
donations and sponsors.
4. Staff Issues
No Report.
5. Health and Wellness
Judy Vitrano reported there are several exciting things that are happening with the
focus on health and wellness.

Walking program – as of a week ago approx 860 people registered and believe
additional people have registered. At the session at the LBC, so many people
showed up, had to split the original one hour session into two half-hour sessions
just to accommodate the large volume of people that show up.

Know your number biometric screening -- unofficial number of participants at the
screening was 675 people had the screening done. So very good participation
rate.

Lose and win program – will kick off next week with 6 groups scheduled: one at
the Elmwood campus, one at the Primate Center, one or two downtown and two
or three on the uptown campus. Right now still taking registration but appears
we have some motivated Tulane people.

Next thing will be kicking off is a follow up to “Know your number” – anyone who
participated in the UnitedHealthcare programs, there will be additional things for
you to participate with incentives being offered to participants.
At this time there is no committee and not necessary to have one. Once things
settle down, Judy will bring any ideas that SAC members have to the main
committee for consideration.
6. Community Service
Cynthia Hayes reported that the Christmas (“CASA for the holidays”) project was
well received. Cynthia said she sent out the email and Gwen Chavez did everything
else. Cynthia wanted to thank Gwen with our sincere gratitude for all of her hard
work. The contact at CASA asked us if our staff and faculty would be willing to get
involved throughout the year as CASA is always looking for volunteers and help.
TU Staff Advisory Council Meeting
February 12, 2009
Page 12
Cynthia asked SAC members their opinion of committing to the CASA project as our
year round project instead of coming up with a project every year. Gwen said no
other project has touched the entire Tulane community as much as this project did.
SAC has never gotten such a wonderful response from everyone. This project
seems to be such a good fit for SAC. This project is for children at all locations,
northshore, east bank, west bank. Also, our commitment would help the agency so
they can depend on us.
CASA is court-appointed assistance for the children in the system. If we want, we
can request CASA come here as a guest speaker to talk about the program,
possibly have them come to the different campuses and for a brown bag lunch.
Cynthia also wanted to thank Aaron Martin for his awesome contribution to the SAC
website.
VIII.
Old Business
1. SAC Scholarship Program
Aaron spoke about the SAC Scholarship Program Proposal (See Attachment 3) and
suggested this program run through the Community Service committee. Any staff
member would be eligible, did not have to be “degree seeking” student, should be
for any staff member attending classes. Screening committee will pick top
applicants based on meeting the requirements and statements as to why they are
applying for scholarship. Aaron would like to give out awards in the fall 2009
semester.
The awards will be a straight out award for the winners to use however they choose.
Can be applied towards the purchase of books, or parking expense, it is for the
award recipient’s discretion as to how they use the money.
We need to start growing an endowment and this will take some years. We have
some ideas for raising the money. Aaron will also see about asking the bookstore
for donations.
Since SAC was supposed to vote on the proposal at our last meeting but the
meeting was canceled due to snow, a motion was made and approved to present
the proposal to Administration. Chair Barerra will meet with financial aid and then
send to the General Counsel’s office.
IX.
New Business
1. Staff Excellence Award
Merisa Pasternak commented that the December Staff Excellence Award was a
great way to recognize a person for their work. Her colleague was so excited to be
recognized by Dr. Cowen. Merisa wanted to strongly recommend this way of
recognition be continued in the future. Even the people that didn’t receive the award
TU Staff Advisory Council Meeting
February 12, 2009
Page 13
were impressed that Dr. Cowen came and personally met with the winning
recipients. It was noted that the Staff Excellence Committee had recommended Dr.
Cowen give out the awards to the recipient’s at their offices. It appears the feedback
has been very positive and the committee will let Anne Banos know this gesture of
him personally meeting with the individual was such a motivator for staff.
2. Giving to Tulane
Based on what Rhonda said about the board and annual giving. One of the things
the university is judged on for the rankings is not necessarily how much is collected
but the number of people that are donating. So if a family is going to donate, a
separate name is really what keeps Tulane ranked high on donations.
Recommended that even if you donate one dollar, encourage people to make the
donation. However, Rhonda explained that you need to be alumni to be included in
the ranking. You do not need to be a graduate, just an alumni.
3. Crime Alert
Lisa O’Dwyer wanted to alert everyone that there have been two recent armed
robberies committed near campus. Asked everyone to be on guard and aware of
your surroundings.
4. World’s largest king cake
On Wednesday February 18th, Tulane is trying to make “Louisiana’s largest king
cake” on the quad. There is a link if you are interested in participating. Decorating
begins at 1:00 and the eating begins at 3:00 pm.
Question from the floor:
Does anyone know if the Unified Green Project will impact the homecoming parade as
well as commencement 2010? Liz Davey said both things will be good to include in the
planning. The area in question will be closed right after commencement 2009 when the
seniors move out of the dorms. The construction is expected to take approximately
eight months in order to be completed for the next commencement in 2010.
Next Meeting: The next meeting will be held on March 12, 2009 at the School of Public
Health Dean’s Conference Room at 3:30 pm. Yvette Jones will be our guest speaker.
IX. Adjournment
The meeting was adjourned at 5:02 pm.
Respectfully submitted,
Lisa M. Britton
Recording Secretary
Attachment 1 – Tulane University SACS Accreditation Re-Affirmation handout
Attachment 2
Tulane University Senate Committee on Budget Review
Interim Report
December 1, 2008
Page 1
The Tulane University Senate Committee on Budget Review (SCBR) met on October 27,
2008, and November 25, 2008.
At the October 27, 2008, meeting, the SCBR reviewed the Fiscal Year Ending 6/30/2008
Financial Statements (Draft), Endowment Highlights—6/30/2008, Fund-raising and
Capital Campaign Highlights, and the Fiscal Year 2009 Budget.
At the November 25, 2008, meeting, the SCBR reviewed the Preliminary Operating
Budget Fiscal Year 2010 and Endowment Earnings update. The SCBR voted
unanimously to recommend that the Senate approve the Fiscal Year 2010 preliminary
budget assumptions.
Fiscal Year 2008 Year-End Results
Total Net Assets: During Fiscal Year 2008, the University’s total net assets increased
from $1.23 billion to $1.3 billion (5.7%).
Operating Revenues: Although total operating revenues declined from $755.3 million to
673.4 million largely due to commercial insurance recoveries of $125 million in FY
2007, several major operating revenue categories exhibited strong increases in FY 2008:
tuition and fees, net—7.3%; government grants and contracts—5.1%; medical group
practice—23.8%; affiliated hospital agreements/contracts—12.5%; endowment income—
12.3%; recovery of indirect costs—5.1%; and, auxiliary enterprises—15.1%.
Operating Expenses: Total operating expenses declined from $598.7 million to $576.2
million, largely due to disaster costs (net recoveries) of ($51.3 million). Increases in
operating expenses aligned with the areas noted above with increased operating revenues.
However, two administrative support areas exhibited significant increases, public
service—32.4% and student services—16%, while instructional and academic support
increased 5.8%.
Review of Financials and Endowment
An operating loss of approximately $20 million was reported for FY 2008 which is
significantly better than the $34 million loss originally projected. In addition, the
University is in a strong cash position with approximately $100 million in reserves that
should be adequate to cover any liquidity issues in FY 2009.
Although an operating loss (operating budget deficit) is projected through 2011, the
overall financial picture for 2008 and 2009 is better than expected due to several factors,
including larger enrollments and associated tuition revenues, one-time payments from
Tulane University Senate Committee on Budget Review
Interim Report
December 1, 2008
Page 2
FEMA, insurance companies, and the State of Louisiana, and several large gifts. These
one-time payments contribute significantly to the University’s strong cash position.
The University is still pursuing additional payments from insurance companies and
FEMA.
The University’s balance sheet is in good shape, and the University has adequate lines of
credit to cover most contingencies.
One of the greatest concerns in future years is the impact of the “economic and financial
crisis” on the University endowment and endowment earnings. Although endowment
payouts should not be affected in the short term, considerable uncertainty exists about
future years, especially for the Eminent Scholars Funds. From June 30, 2008, through
October 31, 2008, the University’s total endowment decreased in value from $1,036
million to $789.7 million (-23.8%). This figure does not reflect the fact that roughly 20%
is invested in private equity funds. (Since the endowment payout is based on a 12-month
trailing average of the market value, there is little immediate impact.)
The negative financial picture could also have major adverse effects on tuition, research
grants and contracts, and fund raising.
Given the potential negative impacts of the “economic and financial crisis” on major
funding sources, the Committee concurs with the President’s decision to pursue a
conservative and prudent approach to budgeting and resource allocation.
Campaign and Fund Raising
The University’s capital campaign raised more than $730 million, exceeding the
campaign goal:




Endowment
Facilities
Restricted Program Support
Tulane Fund/Other Unrestricted
$297.5 million
$93.5 million
$238.3 million
$101.3 million
Another campaign is in the early planning stage. The major objective of fund raising in
the next year or so is to increase the number of donors and to broaden the University’s
support base.
Tulane University Senate Committee on Budget Review
Interim Report
December 1, 2008
Page 3
Preliminary FY 2010 Budget Assumptions
Unrestricted Operations Only
(DRAFT)
Revenue1
1. Undergraduate Tuition will be $37,200. The Academic Support and Reily Center fees
will increase $200/year and $20/year, respectively. All other fees are held constant at
the FY 2009 rates. The overall undergraduate discount rate (i.e., ratio of financial aid
to gross tuition) is expected to be slightly higher than the rate for FY 2009. Tuition
for the graduate and professional schools may vary, but will increase no less than
$1,700 (tuition) annually.
2. Undergraduate entering class goal is 1,400 new freshmen plus 225 transfer students,
and an average full-time undergraduate enrollment target of 5,221 students.
3. Government Grants and Contracts revenue will be budgeted at $163 million, and the
related indirect cost recovery will be budgeted at $27 million.
4. The goal for the Annual Fund, including Athletics ($2.5M), will be $10 million.
5. Unrestricted Endowment Income is calculated by using a 3-year moving average and
a spending rate of 5.2%.
6. Investment Income is adjusted to reflect the projected cash position.
7. The Affiliated Hospital Agreements’ revenue projections will increase with inflation.
The Medical Practice Related operations will breakeven.
8. Intercollegiate Athletics is based on competing in ten (10) core sports [fourteen (14)
programs] with the return of two (2) suspended sports programs.
9. Housing’s standard double room rate will increase by $160, and meal rates will
increase by $110, for a combined increase of 3%. The average occupancy rate for the
year is projected to be at 95%. All other contract and University-operated Auxiliary
net revenues are held constant.
10. Other revenues are consistent with historical levels.
1
Revenue budget assumptions do not include any additional insurance and/or FEMA receipts for disasterrelated losses.
Tulane University Senate Committee on Budget Review
Interim Report
December 1, 2008
Page 4
Preliminary FY 2010 Budget Assumptions
Unrestricted Operations Only
(DRAFT)
Expenditures2
1. Subject to availability of funds, salary pools will be fixed and not exceed a 3%
increase over the amount of base faculty and staff salary approved in the FY 2009
Operating Budget. Units will not be allowed to exceed their fixed dollar amount, once
it is determined (it must be used to cover mid-year or annual promotions, hirings,
salary increases, etc.).
Salary pools represent the salary base less total payroll savings and offsetting
revenue in the restricted ledgers. For this process, the fringe benefit
calculations are based on using the FY 2009 fixed fringe benefit rates. Actual
calculations will use the approved FY 2010 fixed fringe benefit rates.
2. Utility expenses will be budgeted consistent with the FY 2009 budgeted levels.
3. Debt service is reported in accordance with the new debt management schedule.
4. Assuming availability of funds:
A. Continue the phased implementation of the faculty and staff compensation
enhancement plan.
B. Implement a new Graduate Studies Plan primarily focused on doctoral programs.
C. Initiate Project 2020, a plan to enhance research infrastructure.
5. Intercollegiate Athletics is based on competing in ten (10) core sports [fourteen (14)
programs] with the return of two (2) suspended sports programs to meet the minimum
NCAA standards for Division 1A.
2
Expenditure budget assumptions do not include any additional disaster-related costs.
Tulane University Senate Committee on Budget Review
Interim Report
December 1, 2008
Page 5
Recommendation
The SCBR recommends approval of the preliminary budget assumptions for the Fiscal
Year 2010 Budget.
Respectfully submitted,
James W. McFarland, Chair
Senate Committee on Budget Review
Attachment - 3
Staff Advisory Council (SAC) Scholarship Proposal
Proposed: To establish a new Staff Advisory Council scholarship for eligible staff
members to provide supplemental educational assistance for undergraduate
coursework at Tulane University. Prepared by the ad hoc committee 11/13/08.
Purpose
The purpose of the Staff Advisory Council Scholarship Fund is to encourage and
support Tulane staff members in their career advancement and/or continuing education.
The scholarship can be applied towards educational expenses such as books, supplies,
home Internet, transportation, etc., as the recipient deems.
Administration
The Community Service Committee of the Staff Advisory Council (SAC) will manage the
scholarship program. The Chair of SAC shall appoint a selection committee approved
by the Staff Advisory Council, to consist of five staff members, who are not applying,
with at least one member per SAC district.
Eligibility criteria
Recipients of the scholarship must meet the following requirements:
 Must be a staff member eligible for the Employee Tuition Waiver program.
 Must be a part-time student enrolled in an undergraduate course at Tulane.
o Already completed first class or semester at Tulane.
o Maintaining at least a 2.5 GPA.
o NOTE: Audited classes do not meet the requirement.
 Not a member of the scholarship screening committee.
 Willing to have your name listed as a recipient.
Application requirements
 Apply by the established deadline(s).
 Complete the application form.
 Write short statement, from 2 of 4 of the topic choices:
 Your studies
 Your career goals
 How a scholarship would help individual (personally, financially, etc.).
 How the coursework would enhance skills directly related to the employee’s
position and support Tulane’s mission.
Selection
 The screening committee will verify that applications meet criteria and select an
indefinite number of top applicants based on their short statements. If there are
more top applicants than scholarships available, the recipient(s) will be chosen by
lottery.
 Preference will be given to those who have not earned a SAC scholarship in the
current academic year unless there is a shortage of applicants.
Awards
Awards will be presented each semester (fall, spring and summer) at an initial average
of about $100 per recipient. The cumulative amount awarded for an academic year will
be based funds raised, and in future years upon the amount of interest earned by the
fund.
With enrollment verification, the scholarship award can be dispersed directly to a
recipient after the last day to drop of the semester for which they have applied.
NOTES:
Setting up the endowment
During the initial year(s) SAC will set up a short-term fund to fund scholarships starting
in the fall of 2009, while consecutively investing any remaining dollars in an endowment
to fund the scholarship program in future years.
We would need to raise about $10,000 in endowment to award about five $100
scholarships: for example… 2 in the fall, 2 in the spring and 1 in the summer. We should
look at tuition waiver data to determine numbers per semester.
Fundraising ideas






Staff solicitations – mailings; table at staff events
Solicit deans and faculty
Designee on the United Way annual fund
Seek contributions from the Bookstore or other vendors
Other donors?
o Small “tribute” contributions in appreciation for staff, e.g., “Valentine Thank
You” campaign where students can donate $5 to the fund in honor of a
staff member as appreciation.
o Larger gifts
Fundraising events, e.g. 50/50 split or 30/30/40 split, bake sale
Pending deliverables
After careful consideration of inclusion of staff “professional development” in the
scholarship, the committee decided against it and further recommends that SAC
address this important issue through other means.
Work with Financial Aid and the General Counsel's offices to address the tax issues and
the criteria for the award. – Susan Barrera will contact both.
Bookstore donation potential – Aaron Martin will follow-up with Kelly Venable Carroll.