February 2003 Board Report

Board Report: February 2003

Dear Friends of Union -

The College´s Board of Trustees met on campus recently for its regular winter meeting and it is my privilege to report on our agenda and our actions.

Financial Update

As you might know, one of the dominant issues shaping all of America´s colleges and universities is the adequacy and allocation of financial resources. Although our winter meeting is usually devoted to discussing the budget for the upcoming year, we "drilled down" this year on the College´s financial situation, given the economy and its continued "uncertainty." In the end, we approved a 2003-2004 budget that can best be described as "lean."

As reported by our Administration/Finance Committee, Union´s overall financial condition is strong. We continue to operate with balanced budgets through careful spending and by asking more of our talented faculty and staff. I am pleased to say that we project a small budget surplus that can be deposited back into the endowment.

Even with that financial discipline, the weak financial markets have resulted in three consecutive years of declining market value of the College´s endowment. This means that we can´t count on the past few years´ endowment "yield" to assist our budget balancing. The 2003-2004 budget of about $97 million is balanced, but barely. Therefore, our budget discussions centered upon enrollment projections, tuition rates, reexamining our cost structure and reviews of new programs and services.

As approved by the board,

Tuition for 2003-2004 will be $28,608
Housing will be $3,882
The most common meal plan will be $3,195

An activity fee of $240 and an $80 fee for the House System Phase-In bring the total to $36,005, an increase of about five percent. Our endowment yield generates about 17.6 percent of the budget this year - but next year, it will be down to 16.8 percent. As with supplies and services budgets, capital budgets were not given an inflationary increase. However, in anticipation of an upcoming expenditure to replace the obsolete systems that operate both the College´s administrative computers and finance office programs, as well as other technology needs, a one-time capital outlay of $542,000 is included.

The original goal of the Plan for Union was to generate funds for program development and enhancements. This Plan will be modestly restructured to allow some of those resources instead to support current programs and services. It should be noted that the restructuring does not substantially alter the campaign´s goals, with the exception of Terms Abroad where we had envisioned new programs.

New Trustee Members

We were delighted to welcome three new members to the board:

John Kelly III ’76, senior vice president and group executive of the IBM Technology Group;
Lawrence Pedowitz ’69, attorney & partner with Wachtell Lipton Rosen & Katz in New York City;
Stephen W. Ritterbush ’68, managing partner of Fairfax Partners in Vienna, Va.

We are always honored to have distinguished Union alums added to the board, and these new members already made their positive presence felt at the board meeting.

Committee Reports

We also had a full round of committee meetings, and highlights include:

The Academic Affairs Committee: recommended the establishment of the Graduate College of Union University as a separate legal entity and the full board authorized the move. The College´s Graduate Center comprises the Graduate Management Institute (GMI), Educational Studies and Graduate Engineering Programs. The new entity will have its own Board of Trustees and officers. This action reaffirms the mission of Union College to be a true undergraduate institution.

The College Relations Committee: discussed a number of positive milestones, highlighted by a spectacular $20 million commitment from John Wold ’38 and his wife, Jane, the largest gift in the history of the College and one of the top 20 gifts to higher education in 2002! The alumni portion of the Annual Fund and the Parents Fund are up compared to last year, and we are experiencing increased alumni attendance at events such as ReUnion and Homecoming. Alumni club development continues to be a priority, and we hope to have 20 active alumni clubs by the end of June. Great momentum!

The Facilities and Environment Committee: viewed first hand the renovations to South College, the first element in the exciting new House System. These improvements are on schedule and the house will be online in 2003-2004. Renovations to North College, Chi Psi and Psi Upsilon will begin in July of 2003. Renovations to the Sigma Phi building will begin in July of 2004. Renovations to convert the former Parker Rice Estate into Abbe Hall, a new alumni center, are on schedule, and the center will be dedicated at ReUnion in May - yet another good reason to visit Union.

The Investment Committee: recommended that Salomon Smith Barney be retained as the endowment consultant and the endowment custodian, services previously done by two separate firms. The move will provide and estimated annual cost savings of $100,000, and more importantly, will provide additional and more flexible consulting services to our investment strategy. The full board endorsed the recommendation.

The Student Affairs and Admissions Committee: reported that a student and faculty committee has been working diligently to define the programmatic aspects of the House System. The entire faculty and student body will be given the opportunity to apply for membership, with selection based on creativity, enthusiasm, spirit of adventure, and commitment.

The Admissions Office has received more than 4,000 applications, setting a new record. On the Web, a more contemporary and user-friendly home page was launched in January. The online view book, which continues to get rave reviews, can be seen at www.union.edu/Voices.

All of us thank you for your support - financial and personal. Many of you give not only hard dollars, but volunteer your precious personal time for Union. Every dollar every hour - every referral - every interview - every good word you say about Union adds to our momentum. Our results reflect your commitment.

Stephen J. Ciesinski ‘70
Chairman, Board of Trustees

	Home \| Academics \| Admissions \| Alumni \| Athletics \| News & Events \| Offices & Services \| Student Life
About Union Mission Statement History of Union Office of the President Board of Trustees Presidents of Union College Union Notables Exhibit Traditions of Union What to do AroundU? The Union Campus Great Grads of Union	Board Report: February 2003 Dear Friends of Union - The College´s Board of Trustees met on campus recently for its regular winter meeting and it is my privilege to report on our agenda and our actions. Financial Update As you might know, one of the dominant issues shaping all of America´s colleges and universities is the adequacy and allocation of financial resources. Although our winter meeting is usually devoted to discussing the budget for the upcoming year, we "drilled down" this year on the College´s financial situation, given the economy and its continued "uncertainty." In the end, we approved a 2003-2004 budget that can best be described as "lean." As reported by our Administration/Finance Committee, Union´s overall financial condition is strong. We continue to operate with balanced budgets through careful spending and by asking more of our talented faculty and staff. I am pleased to say that we project a small budget surplus that can be deposited back into the endowment. Even with that financial discipline, the weak financial markets have resulted in three consecutive years of declining market value of the College´s endowment. This means that we can´t count on the past few years´ endowment "yield" to assist our budget balancing. The 2003-2004 budget of about $97 million is balanced, but barely. Therefore, our budget discussions centered upon enrollment projections, tuition rates, reexamining our cost structure and reviews of new programs and services. As approved by the board, Tuition for 2003-2004 will be $28,608 Housing will be $3,882 The most common meal plan will be $3,195 An activity fee of $240 and an $80 fee for the House System Phase-In bring the total to $36,005, an increase of about five percent. Our endowment yield generates about 17.6 percent of the budget this year - but next year, it will be down to 16.8 percent. As with supplies and services budgets, capital budgets were not given an inflationary increase. However, in anticipation of an upcoming expenditure to replace the obsolete systems that operate both the College´s administrative computers and finance office programs, as well as other technology needs, a one-time capital outlay of $542,000 is included. The original goal of the Plan for Union was to generate funds for program development and enhancements. This Plan will be modestly restructured to allow some of those resources instead to support current programs and services. It should be noted that the restructuring does not substantially alter the campaign´s goals, with the exception of Terms Abroad where we had envisioned new programs. New Trustee Members We were delighted to welcome three new members to the board: John Kelly III ’76, senior vice president and group executive of the IBM Technology Group; Lawrence Pedowitz ’69, attorney & partner with Wachtell Lipton Rosen & Katz in New York City; Stephen W. Ritterbush ’68, managing partner of Fairfax Partners in Vienna, Va. We are always honored to have distinguished Union alums added to the board, and these new members already made their positive presence felt at the board meeting. Committee Reports We also had a full round of committee meetings, and highlights include: The Academic Affairs Committee: recommended the establishment of the Graduate College of Union University as a separate legal entity and the full board authorized the move. The College´s Graduate Center comprises the Graduate Management Institute (GMI), Educational Studies and Graduate Engineering Programs. The new entity will have its own Board of Trustees and officers. This action reaffirms the mission of Union College to be a true undergraduate institution. The College Relations Committee: discussed a number of positive milestones, highlighted by a spectacular $20 million commitment from John Wold ’38 and his wife, Jane, the largest gift in the history of the College and one of the top 20 gifts to higher education in 2002! The alumni portion of the Annual Fund and the Parents Fund are up compared to last year, and we are experiencing increased alumni attendance at events such as ReUnion and Homecoming. Alumni club development continues to be a priority, and we hope to have 20 active alumni clubs by the end of June. Great momentum! The Facilities and Environment Committee: viewed first hand the renovations to South College, the first element in the exciting new House System. These improvements are on schedule and the house will be online in 2003-2004. Renovations to North College, Chi Psi and Psi Upsilon will begin in July of 2003. Renovations to the Sigma Phi building will begin in July of 2004. Renovations to convert the former Parker Rice Estate into Abbe Hall, a new alumni center, are on schedule, and the center will be dedicated at ReUnion in May - yet another good reason to visit Union. The Investment Committee: recommended that Salomon Smith Barney be retained as the endowment consultant and the endowment custodian, services previously done by two separate firms. The move will provide and estimated annual cost savings of $100,000, and more importantly, will provide additional and more flexible consulting services to our investment strategy. The full board endorsed the recommendation. The Student Affairs and Admissions Committee: reported that a student and faculty committee has been working diligently to define the programmatic aspects of the House System. The entire faculty and student body will be given the opportunity to apply for membership, with selection based on creativity, enthusiasm, spirit of adventure, and commitment. The Admissions Office has received more than 4,000 applications, setting a new record. On the Web, a more contemporary and user-friendly home page was launched in January. The online view book, which continues to get rave reviews, can be seen at www.union.edu/Voices. All of us thank you for your support - financial and personal. Many of you give not only hard dollars, but volunteer your precious personal time for Union. Every dollar every hour - every referral - every interview - every good word you say about Union adds to our momentum. Our results reflect your commitment. Stephen J. Ciesinski ‘70 Chairman, Board of Trustees
	Copyright 2008, Union College. All rights reserved. Union College \| 807 Union St. \| Schenectady NY 12308 \| 518 388-6000 Directory \| Contact Us