I

1

1

10495

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

December .14, 1994

The meeting of the Board of Trustees was called to order by President McPherson at
8:00 a.m. via telephone conference call.

Trustees present:  Dolores M.  Cook, Joel Ferguson, Dorothy  Gonzales, Russell G.
Mawby, Barbara J, Sawyer-Koch, John D. Shingleton, Bob Traxler, and Robert E. Weiss.
Trustees-elect present:  Colleen McNamara and Donald Nugent.

University officers present:  President McPherson, Provost Simon, Secretary Hesse,
Vice  Presidents  Denbow  and  Wilkinson,  and Acting  Vice  President  June.  Student
Liaison representative present:  Brad Thaler.

1.  President  McPherson  presented  the  following  background  information  and

resolution regarding tuition guidelines.

Tuition
Guide!ines

Background Inforffiation:  At its December 9, 1994 meeting, the Board directed
the administration to develop guidelines for the establishment of tuition rates
within the context of longer term budget and financial planning and directed
that the guidelines be submitted to the Board at the earliest practicable date.

Based upon experience with the 1994-95 budget, the administration is of the
opinion  that  a  realistic  balanced  budget  can  be  developed  within  these
guidelines.  Further, all continuous quality improvement strategies will be
aggressively implemented during this period,  For planning purposes, inflation
is deemed to be at least 3,5 percent per year.

In its earlier action, the Board noted that in the first Guiding Principle,
Improve Access to Quality Education and Expert Knowledge, it is acknowledged
that we must work to keep Michigan State University financially accessible to
students  and  families  through  reasonable  tuition  and ..financial  planning.
Although  no  one  can  state with  certainty  that  university  costs  will  not
increase by greater than the rate of inflation* we believe the benefits of this
action to students and their families outweigh the inherent risk.

Resolution:  BE IT -RESOLVED .that tuition rate increases for the .next three
years  (fiscal years 1995-96, 1996-97, and 1997-98) be held to the projected
rate of-inflation5 and, as an added incentive to the students .of-the Fall 1995
entering  freshman  class  to graduate  in four  years, that  this assurance be
extended  to them  for a fourth year  .{fiscal year 1998-99}^  ..This, action is
contingent upon state appropriation increases for Michigan State University's
general fund af at least the rate of -inflation.

Resolution:
Tuition
Guidelines

After adjustments for inflation, this action will result in no real tuition
increases .for the next three years for all students and for the next four years
for the Fall 1995 entering freshman class.  If the state does not provide at
least cost of living increases5« it is expected that tuition will be adjusted
accordingly to sustain quality,

BE  IT FURTHER  RESOLVED  that  the  administration  develop a specific  1995-96
tuition  rate  schedule based upon these  guidelines for presentation  at the
February meeting of the Board of Trustees.

On-a motion by Ms. Sawyer-Koch, supported by Ms. Cook, A ROLL CALL VOTE OF THE
BOARD was conducted by Secretary Hesse.. The vote was unanimous to approve the
recommendation.

2, 

The meeting adjourned.

McPherson

fkxMt McPhers
President

MarthaL. Hesse, Ph.D.
Secretary