10225

MINUTES OF THE MEETING
OF THE
BOARD OF TRUSTEES
MICHIGAN STATE UNIVERSITY

July  22, 1987

The Trustee Finance Committee and the Trustee Policy  Committee meetings were held
in the Lincoln Room of the Kellogg Center beginning at 9:00  a.m. on Wednesday,
July  22, 1987.  The minutes of the committee meetings are on file in the Office
of the Secretary of the Board of Trustees.

The meeting of the Board of Trustees was called  to order by President John DiBiaggio
at  1:30 p.m. in the Board Room of the Administration Building.

Trustees present were:  Malcolm G. Dade, Jr., Joel Ferguson, Lawrence D. Owen,
Dean Pridgeon, Thomas Reed, Barbara J.  Sawyer, Kathy Wilbur, and Patrick J. Wilson.

University  officers present included:  President DiBiaggio, Provost Scott,
Vice Presidents Cantlon, Dickinson, Schonbein, Stewart, Turner, and Wilkinson,
Senior Consultant Breslin, Acting  Secretary Davis, and General Counsel Kurz.
Faculty Liaison representatives present were:  Professors Henderson, Matthews,
and Silverman.  Student Liaison representatives present were:  Barker, demons,
Hannan, and Selke.

All actions taken were by unanimous vote of the Trustees present, unless
otherwise noted.

1.  On a motion by Mr. Owen, supported by Mr. Dade, THE BOARD VOTED to

approve the proposed agenda.

2.  On a motion by Ms. Sawyer, supported by Mr. Reed, THE BOARD VOTED to

approve the Board Minutes of the meeting of June  12, 1987.

3.  The following person addressed  the Board of Trustees:

Public
Comments

Kenneth G. Smithson, Ph.D. candidate  in the Department of Physiology
and a graduate medical student in the College of Osteopathic Medicine,
addressed the Board of Trustees regarding  the Block Tuition Rate for
students in the Medical Scientist Training Program.  As a formal
representative  of the 16 participants  in the College of Osteopathic
Medicine and an informal spokesperson for the student counterparts in
the College of Human Medicine, he solicited  the support of the Board
in approving  the Block Tuition proposal for the Medical  Scientist
Training Program.  He stated that in order to achieve the requirements
of the program within a six-year  time frame, students are required to
take courses pertaining  to the Ph.D. concurrently with medical school
courses.  Presently, fees are assessed on two fee  schedules—graduate
student tuition and medical school tuition—on  a term-by-term basis
and the fee rate is determined by the student's class schedule.
Mr.  Smithson urged the Board of Trustees to support the proposal
which will greatly improve the studentfs ability to financially
plan for the six- to seven-year undertaking  and increase the
studentfs  flexibility  in making curriculum decisions.

President DiBiaggio  thanked Mr. Smithson for his comments and  informed
him that usually a response is not given to persons who make a presentation
before the Board  in public participation.  However, he thought Mr. Smithson
would be pleased  to know that this consideration was  included as a part
of the proposal that was presented  to the Finance Committee at its morning
meeting.

4.  The report of President DiBiaggio included  the following items:

President's
Report

A.  The  1986-87 legislative  session was a very successful session for

higher education and for Michigan State University.  The budgetary
request reflected  the GovernorTs  continuing  concern and commitment
to education.  The Legislature reflected  its support for the expanding
impact of higher education on the economy of the State by such actions
as the approval of the MITN Proposal which will create a technology
network throughout the State of Michigan which was proposed  initially
by the four major research universities.

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10226

Presidents
Report cont.

i

July  22, 1987

President DiBiaggio acknowledged Mr. Jack Breslin and stated that the
success with the legislature was in great part due to the efforts of
Mr. Breslin who worked  tirelessly  on behalf of the University  to keep
members of the Legislature well informed.  Therefore, relationships
with the Legislature were extraordinarily  cordial during the entire
process.

Despite the generosity  of the Legislature and the Governor, an increase
in tuition will have to be recommended which is required  in order to
maintain and enhance the quality  of programs.  The budget proposal
identifies the following  criteria established by the Board:  improve
the competitive position of faculty currently employed and  those to
be recruited  in the future; assure access and opportunity  to all
citizens regardless of•social economic  status by providing  adequate
resources to compensate for the increases imposed; and to continue
to address the needs of educational programs that are both responsive
to current societal needs and reflective of providing an education
which is adequately  comprehensive.

B.  The President reported  that he had the distinct pleasure of being in

Washington, D.  C. to attend  the opening ceremony of the  Smithsonian
Institution's  festival of American Folklore which featured  the State
of Michigan.  He commended Dr. Kurt Dewhurst, Director of the MSU
Museum, and the Museum staff members who were responsible for the
festival exhibit which will come to the Michigan State campus
August  21-30,  1987 and will become part of the Michigan Festival.
The Michigan State University  Sesquicentennial Festival is considered
to be a premier  sesquicentennial event of cultural opportunities  and
will feature exhibits and craftspersons who were in Washington as well
as extraordinarily well known local and national Michigan performers.
It is expected  to be the largest event of its kind ever hosted by
Michigan State and will be a birthday  celebration for the State of
Michigan.

Michigan State is demonstrating  a complete and total commitment to
the Sesquicentennial which was evidenced by a wagon train excursion
which  stayed overnight on University property before proceeding to
the Capitol.

C.  The President  stated  that greeting  incoming students at orientation

programs is among his most positive experiences of each year.  The
students are competitive and are reminded  of the large group of
applicants from which they were selected.  He also informs them of
the rich traditions of Michigan  State and the achievements of its
graduates, pointing out that the University  is proud of the fact that
it is an institution that places great emphasis on the  individual
student and enjoys one of the highest graduation rates of any major
public university  in this nation.  Meeting with parents provides a
special opportunity  to explain the competitive environment  in which
the students are now enrolled  and parents are urged to encourage
their students to work hard beginning with their freshman year in
order to be competitive for graduate study, if that is their desire.

A new student Convocation is being planned  and will be held on Sunday
afternoon, September  20, 1987.

D.  President DiBiaggio  said he is looking forward  to an exciting new
year which will be challenging and will require the efforts of the
administration and the Board of Trustees in order to achieve the
desired  successes for the University.  Some of the activities of
the next year will include:  the CRUE Committee and its review of
undergraduate  education; the search for a Vice President for Research
and Graduate  Studies; the Federal liaison office actively engaged  in
the process of assisting in increased Federal support for Michigan
State endeavors; and the announcement and official naming of the
leadership of the Capital Campaign of the University.

10227

President's
Report cont.

July 22, 1987

E.  The ground breaking  for the East  Campus Intramural facility is scheduled

for early fall to assure that students for whom this facility  is intended
can participate in the ceremony.  The building  should be completed  in
1988 and will provide recreational  facilities  for the students who live
in the east campus area.  The building  is a part of the recreational
and athletic facility package which was approved by the Board  of Trustees
in 1984, and included  the Breslin Center, the indoor Tennis Facility,
and the Football Practice Building.  President DiBiaggio  recognized
Dr.  Frank Beeman as the person responsible—more  than anyone  else—for
this building.

F.  President DiBiaggio reported he is serving as Chairperson of the National
Association of State Universities  and Land-Grant  Colleges  (NASULGC).
In celebration of its  100th year, NASULGC will publish a book featuring
the outstanding  graduates of the land-grant and state universities in
this nation as well as pointing out some of the great achievements of
the institutions.  The President said he is visiting with media people
throughout  the nation talking about the land-grant institution and
explaining  its unique mission, its commitment  to access and opportunity,
development and application of new knowledge, and the commitment to
serving people in the state, the nation, and across the globe.

G.  The university relations efforts of Michigan State University  are

extraordinarily  important to communicate  the message of the University1s
achievements.  The responsibility  of university  relations is under the
egis of Vice President for University Relations, Connie  Stewart, who
President DiBiaggio introduced.  Vice President  Stewart commended  the
Board for its vision in  1981 to approve the reorganization of the
Information  Services division at Michigan  State and to create a Public
Relations Office and an ability, in an advocacy way, to promote and
support the activities of the University—its  colleges, academic
offerings, special activities, student activities and achievements.

The university relations and overall comprehensive Public Relations
functions are carried  out by  several units within University Relations
and Vice President  Stewart introduced  the directors, assistant directors,
editors, and employees of those units.

Vice President  Stewart introduced  the Alumni Video Magazine—a  product of
the Broadcast Marketing unit—which visibly demonstrates  the  coordination
of efforts by the institutional advancement units of the University.
Video productions are examples of products that carry out and enhance
what is already happening  in outreach activities.  This is the first
time in the country a university has taken a video and formatted it
along the lines of a printed alumni magazine.  It has the same  sections
and headlines as created by Mr. Robert Bao, Editor of the MSU Alumni
Magazine.  A copy of the video will be given to Board members.

Following  the viewing, President DiBiaggio  commented  that the video
is a beautiful, touching presentation of the universityrs activities.

5.  On a motion by Mr. Reed, supported by Mr. Wilson, THE BOARD VOTED to approve

the following personnel actions.

A.  Appointments

Personnel
Actions

Appointments

1.  Cavusgil, S. Tamer, AY-Professor, Department of Marketing  and
Transportation Administration, $63,000, with Tenure, effective
September  1, 1987.

2.  Dickson, W. Patrick, AN-Professor, Department of Counseling,

Educational Psychology  and Special Education, $72,000, with
Tenure, effective July  1, 1987.

3.  Hollingworth, Robert M., AN-Professor, Pesticide Research

Center and Department of Entomology, $78,000, with Tenure,
effective September  1, 1987.

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10228

Other Personnel
Actions

B.  Other Personnel Actions

July  22, 1987

The following promotion and reappointment which include the award of
tenure, are recommended  to be effective August  1, 1987.

1.  Kuhn, Jeffrey R., reappointment  as Associate Professor,

Department of Physics and Astronomy.

2.  Lynch, William G., promotion to Associate Professor, Department

of Physics and Astronomy  and the National  Superconducting
Cyclotron Laboratory.

On a motion by Ms. Sawyer, supported by Mr. Owen, THE BOARD VOTED  to approve
the Gift, Grant and Contract Report, with a total value of $5,704,126.59.
A  copy of the report, Agenda Attachment D, is attached  to the file copy
of the Board Agenda.

Mr. Owen presented  the report and recommendations of the Trustee Finance
Committee.

A.  On a motion by Mr. Owen, supported by Mr. Reed, the BOARD VOTED to
approve the Bid and Contract recommendations of the committee.

.1.  A contract in the amount of $4,937,000 be awarded to Design &

Build  Inc. of Lansing, from Lansing, Michigan, and a budget in
the amount of $6,044,000 be established  for construction of the
East Campus Intramural Building.

2.  A contract in the amount of $232,300 be awarded  to Higgins

Construction Co. of Flint, Michigan, and a budget in the amount
of $300,000 be established  for alterations to Room  116 in
Erickson Hall.

3.  A contract in the amount of $554,000 be awarded  to John E. Green

Company, of Flint, Michigan, and a budget in the amount of
$815,000 be established  for alterations in Farrall Hall, Anthony
Hall, and the Engineering Building  for Bioprocess Engineering.

4.  A contract in the amount of $835,000 be awarded  to Design & Build

Inc. of Lansing  from Lansing, Michigan, and a budget in the amount
of $1,040,000 be established  for alterations to Buildings A and C
of the Research  Complex/Engineering.

5.  A contract in the amount of $120,733 be awarded  to Stephenson & Son's
Roofing, Inc., of Flint, Michigan, and a budget in the amount of
$205,000 be established  for roof restoration at various  locations
on Shaw Hall.

6.  A contract in the amount of $211,200 be awarded  to Spartan Asphalt
Paving Co. of Lansing, Michigan, and a budget in the amount of
$242,000 be established  for parking lot resurfacing  in Spartan
Village and University Village.

7.  Appointment of Fishbeck, Thompson, Carr, and Huber, Inc.  (FTC&H),

of Ada, Michigan, as the Architect/Engineer  (Professional  Services
Contractor) for the proposed upgrade of Campus Animal Care
Facilities.

8.  Appointment of Samborn, Steketee, Otis and Evans, Inc.  (SSOE, Inc.),

of Flint, Michigan, as the Architect/Engineer  for the proposed
Bio-Medical Library.

9.  Acceptance of an offer from Stony Pointe Development  Corporation to

purchase  93.554 acres of the VanHoosen Farm located in Rochester,
Michigan, for a price of $561,324.

B.  On a motion by Mr. Owen, supported by Ms. Sawyer, the BOARD VOTED to

approve that the Administration be authorized  to enter into a standby
letter of credit arrangement with the Michigan National Bank-Lansing
for the purpose of meeting  the University1s  contingent  funding
requirements for the Michigan Higher Education Group  Self-Insurance
and Risk Management Facility.

Gift, Grant and
Contract Report

Trustee Finance
Commi ttee

Bids and Contracts

East Campus
Intramural  Bldg.

Alterations to  \
Room 116 Erickson;
!
Hall 

Alterations in
Farrall  Hall,
Anthony Hall , &
Engineering Bldg,
for Bioprocess
Engineering

Alterations to
Buildings A & C
of Research
Compiex/Engr.

Roof  restoration
on Shaw Hal 1

Parking lot
resurfacing in
Spartan Village
Univ. Village

Appointment of
Architect/
Engineer for
Animal  Care
Facilities

Appointment  of 
j
Archi tect/Engi neer
\
for  Bio-Medical 
:
Library 

Purchase of 
\
VanHoosen  Farm  \

Self-insurance
and Risk
Management
Facility

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10229

July 22, 1987

C.  Mr. Owen, Chairperson of the Finance Committee, presented  the following
comments regarding the budget information which was presented  to the
Finance Committee*

Trustee Finance
Committee cont.

Mr*  Owen stated that with the adoption of the Guidelines  for the
Development of  1987-88 Budgets, the Board will be establishing  a budget
of  $334.4 million for the General Fund of the university  for the next
fiscal year.  This compares to a budget of $306 million for this fiscal
year which is an increase of approximately  $27.8 million.  The three
main objectives targeted  are:  the budget will enable the University
to establish a fund which will assure that every public or private
high school student in Michigan who has the academic  qualifications
and desire to come to Michigan State University will be provided  the
financial assistance  to do so.  Secondly, the budget continues the
effort to maintain a competitive and top-notch educational  service
for students which can be accomplished by working at the differentials
in faculty compensation between Michigan State University and other
comparable  schools.  Recognizing  that more has to be done in order to
be competitive, the budget will create a 5% compensation  increase
effective October  1 for academic  staff, followed by an additional
5% average increase on April  1.  This increase will begin the process
of moving Michigan State up the ranks of peer institutions.  Finally,
undergraduate  education will be strengthened by directing monies
toward the liberal arts and  sciences by  continuing efforts to obtain
the most modern technology, equipment, and  facilities.  A  tuition
increase of 9.4  percent as well as fee increases which  together with
tuition, room, board, and fees will result in an increase of about
$147 per quarter for most students or $442 per year for undergraduate
Michigan resident students.  This, as a percentage of the total cost,
is about  11.7 percent.

The Finance Committee unanimously recommended  the adoption of the
Guidelines to the Board and Mr. Owen urged  its adoption.

Randy Hannan, Chairperson of ASMSU, said ASMSU gave a considerable  amount
of time towards examining  the budget in an attempt to get a better  insight
for how it is promulgated.  A great deal of insight was gained as to
the complexity of the process and the difficulty of balancing  the
different needs of the academic  community.  He said they were very
encouraged by the observations made by the President that the budget
preserves not only the University's competitive position by rewarding
faculty, but that it should preserve access and opportunity  to students
from every social economic  status and provide for a constant  improvement
in the educational programs, facilities, and services.  He further
stated that the proposal reflects an exceptional effort on the part
of the administration and Trustees at a time when fiscal resources are
very strained and limited.  Mr. Hannan acknowledged  the talents .and
the progressive ideas of the Provost and the President and  stated  that
he appreciated  their efforts and looks forward  to improvements in both
service and instruction.

President DiBiaggio  thanked Randy Hannan for the profound  statement and
his recognition of the Universityfs  commitment  to a balance of quality
and access.

On a motion by Mr. Owen, supported by Ms. Sawyer, the BOARD VOTED to
approve the adoption of Guidelines for the Development of  1987-88
Budgets and directed  the administration to implement the tuition and
fee schedule effective Fall Term  1987, and  to develop the General Fund,
Agricultural Experiment  Station, Cooperative Extension Service, and
Intercollegiate Athletics budgets in accordance with these  guidelines
for submission to the Board at its next meeting.

Mr.  Wilson reported  the Policy Committee had no agenda items for approval
of the Board of Trustees.  Dean Judith Lanier of the College of Education
presented  a comprehensive report to the Trustee Finance Committee of both
national and University educational issues of significant challenge which
will have to be addressed.  Mr. Wilson stated that it is a significant
report and he encouraged Board members to read  the report.

Adoption of
Guidelines for
Development of
1987-88 Budgets

Trustee Pol icy
Committee

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10230

P r e s i d e n ts
Comments

July 22,  1987

9*  President DiBiaggio pointed  out that he has started a third year as

President of Michigan State University and that it has been a very
exciting period in his life.  There have been difficult times and
rewarding  times, but above all, the progress the University has been
able to achieve has come about in great part because of the support
of the  faculty, staff, administrators, the student body, and above
all the Trustees of this University.  Collectively, all have worked
diligently to assure the progress of this great University and to
maintain its marvelous  traditions*  The President said he personally
wanted to thank all persons as he enters into a third year of his
tenure.

10.  The meeting was adjourned*

DiBiaggio

P r e s i d e nt

^

^,  Ph.D.

Acting  Secretary

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