Board Report: February 2004
by Stephen J. Ciesinski '70, Chairman, Board of Trustees
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. In keeping with the theme mentioned in my last report, the trustees spent quite a bit of our time discussing academic affairs and the financial structure of our school. We also managed to witness two incredible hockey victories on consecutive evenings.
Financial Update
Our winter meeting is usually devoted to discussing the budget for the upcoming year, and we did so this year more aware than ever of the difficult times facing America's colleges and universities. From small private colleges to large research universities, the message is the same - escalating costs (many over which, like health benefits, we have little control) and diminished revenue (everything from the effects of the downturn in the stock market to cutbacks in government support).
I have consistently reported to you that 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. Even so, the weak financial markets have had their effect, and we must be more watchful than ever of the use of proceeds from the endowment. Therefore, much of our budget discussions centered upon long-range financial planning.
After much collaborative work from the College's financial staff and the Trustee Administration and Finance Committee, the entire board approved a 2004-2005 budget that maintains the qualities that define Union and allows for a few new programs (budgets are approved for next year at this meeting so that tuition increases can be communicated to new and existing students). The 2004-2005 budget is balanced at about $103 million, as proposed.
As approved by the board, the total charges for 2004-2005 will be $38,703. For the first time, we will have a comprehensive fee system. Not only will this reduce the number of lines on the bills that parents receive, it will -more importantly - allow students to take extra courses at no additional charge, providing they meet certain academic prerequisites.
Our endowment yield generates about 14.8 percent of the budget for 2004-2005, down from 16.8 percent this year. The budget freezes supplies, services, and capital budgets, but it does provide a 3 percent increase in salaries and wages for our valued employees (a number of whom did not receive a compensation increase this year).
Committee Reports
We also had a full round of committee meetings, and highlights include:
The Academic Affairs Committee formalized the establishment of the Graduate College of Union University as a separate legal entity, with its own board. The new entity absorbs the College's Graduate Management Institute (GMI), Educational Studies, and Graduate Engineering Programs. The action reaffirms the mission of Union College to be a true undergraduate institution.
The committee also discussed a new effort being undertaken by Union, Colgate, Hamilton, and Skidmore that focuses on senior faculty development; the initiative is supported by a major grant from the Mellon Foundation.
The committee - and the board - approved the tenure of Associate Professors Zoe Oxley of Political Science and Steven Rice of Biology.
The committee also received and discussed program reviews performed by peer institution faculty on the Chemistry and Modern Languages departments.
Finally, the committee discussed the recent vote on the calendar, in which faculty and students voted in favor of keeping the trimester system rather than going to a semester system. The Academic Affairs Committee understood that a special faculty committee under the direction of Prof. John Spinelli had been formed to evaluate the current system and recommend changes and modifications to make campus life work better and also to save costs.
The Student Affairs and Admissions Committee reported that the House System is now a reality on campus, with a mailing to all faculty and students letting them pledge their house affiliation next year, when the entire system becomes active. Underway is a comprehensive revision of the College fire safety procedures, aimed at making residence halls as safe as possible. Students have been told that the College's residential policy requires that all residence hall beds be filled; with the addition of the former Ramada Inn in the fall, we now can truly offer quality on-campus housing for students from all classes. As of this writing, the Admissions Office is still counting applications, but it looks like another banner year, with more than 4,000 applications anticipated. We continue to emphasize campus visits by students, family, and guidance counselors. Our recent survey indicated that 80 percent of those who visit say they are much more likely to apply.
The committee - as was the entire board - was saddened by the tragic death of two Union students - Craig LeDuc and Kyle Schrade -- in an off campus holiday auto accident, and our thoughts are with the parents and colleagues on campus.
The Investment Committee spent considerable time discussing long range planning scenarios for the College and recommended a plan to reduce the spending rate for the endowment to 6.50 percent for the upcoming fiscal year (before management fees). The College's policy is based on spending a percent of a three-year lagging average of the endowment's market value. The use of a lagging average softens the impact of fluctuations in the value of the endowment, but is also slow to generate increases in endowment spending when the financial markets turn up. The full board endorsed the recommendation.
The full board also saluted the Investment Committee for its work over the past few years. The endowment grew 24 percent for the year ending September 2003, placing Union in the top 10 percent of all of its peer institutions. Results for the past three years were nearly as positive. The trend is good.
The College Relations Committee was pleased that the Union Fund is up in both dollars and donors (27 percent and 19 percent, respectively) for the year. Homecoming and Family Weekend attendance increased yet again (up 48 percent since 2000), and club events continue to be well attended. We have instituted a number of targeted alumni events, such as receptions for Chi Psi and Psi U alumni and parents during Homecoming, that have been very successful. This year's ReUnion (May 20-23) will include a choral ReUnion for all alumni who participated in singing while at Union - so get your vocal cords in shape!
The Facilities and Environment Committee discussed several ongoing projects. The second part of Phase I of the House system - renovations to North College - has begun, and the renovations of the Chi Psi and Psi U buildings are well underway. Improvements to Frank Messa Rink at Achilles Center, including new locker rooms, is almost complete, and excavation has begun on the David A. Viniar Basketball Pavilion. A design-build team has been selected for the new residence hall in College Park (the former Ramada Inn), and the entire board was treated to a presentation of the architect's drawings for the Inn at College Park. This facility will truly be outstanding..
The Nominations Committee held an orientation meeting for our newest faculty trustee, George Shaw, and our newest term trustee, David Henle '75. These orientations serve to acclimate new trustees to the College's business and activities quicker than previously allowed.
Once again, I want to extend my thanks for your support - financial and personal. Many of you not only support the College with gifts, but also volunteer your 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. We're doing well - see you at ReUnion 2004!
Stephen J. Ciesinski '70
Chairman, Board of Trustees