MINUTES OF THE MEETING OF THE MICHIGAN STATE UNIVERSITY BOARDOFTRUSTEES June 19,2009 President Simon called the meeting of the Board of Trustees to order at 9:35 a.m. in the Board Room. Trustees present: Dianne Byrum, Joel Ferguson, Melanie Foster, Colleen McNamara, Donald Nugent, Faylene Owen, George Perles, and Diann Woodard. University officers present: President Simon, Provost Wilcox, Vice President Poston, Secretary Beekman, Vice President and General Counsel Noto, Vice Presidents Denbow, Groves, June, and Webster, Associate Vice President Hunt, Senior Advisor and Director Granberry Russell, and Acting Executive Director Cash. Faculty liaisons present: Mark Largent, Deborah Moriarty, Jim Potchen, Alvin Smucker and Rand Spiro. Student liaisons present: Kyle Dysarz and Rachel Naegele. All actions taken were by unanimous vote of the Trustees present, unless otherwise noted. 1. 2. On a motion by Trustee Ferguson, supported by Trustee Nugent, the BOARD VOTED to approve the agenda. On a motion by Trustee Nugent, supported by Trustee Owen, the BOARD VOTED to approve the minutes of the Board meeting of April 24, 2009. 3. President's Report A. FRIB President Simon stated that MSU signed a cooperative agreement with the U.S. Department of Energy on June 6. The agreement will allow the Department of Energy to begin funding the Facility for Rare Isotope Beams (FRIB). It was an honor to have Undersecretary Steve Koonin participates in the dedication along with Senators Levin and Stabenow. This is an important milestone for the project. B. Detroit Regional Chamber 2009 Mackinac Policy Conference and the National Summit-Sponsored by the Detroit Economic Club - President Simon noted that MSU participated in the Detroit Regional Chamber 2009 Mackinac Policy Conference and the National Summit sponsored by the Detroit Economic Club. She noted that innovation and education will be critical to the future of the United States and the State of Michigan. Areas such as energy, environment, manufacturing, and technology all must move ahead through the innovation and research occurring on university campuses, while assuring that traditional industries, such as agriculture and natural resources, continue to grow and develop. C. Graduate Education Week President Simon said that Governor Granholm proclaimed the week of April 20, 2009, Graduate Education Week. MSU graduate students presented on diverse topics, including research on spotted hyenas, the FRIB, and J.S. Bach. D. Reardon Appointed to the Global Council on Food Security 2009-10 President Simon stated that Thomas Reardon, MSU Professor of Agriculture, has been selected to serve on the World Economic Forum's Global Agenda Council on Food Security 2009-1 0. E. MSU wins an Emmy Award President Simon noted that the MSUToday team won an Emmy for a segment on MSU's Spartan Marching Band. Award the MSUToday team ProducerNideographer Troy Hale and received the award from the Michigan chapter of the National Academy of Television Arts & Sciences in the Education/Schools category. This is a wonderful honor for Troy and the rest of the MSUToday team who worked on this project. F. CASESilverAward President Simon said that MSU's advocacy group for FRlB has won the CASE National Circle of Excellence Silver Medal for Individual PRKommunity Relations Projects. The University Relations team deserving high praise for their work on FRlB includes: Heather Swain, Kent Cassella, Tom Oswald, Susan Holloway, Jim Peck, Al Moreno, Brenda Sanborn, Jeane Marty, Adam Clegg, and Carla Freed. G. MSU Researchers Receive $400,000 in First Wave of Stimulus Funding Board of Trustees Minutes 06.19.09 President Simon said that two MSU professors, Narayanan Parameswaran and Gregory Fink have received a total of nearly $400,000 for their cardiovascular research projects as part of the first wave of stimulus funding from federal agencies. The money will help to preserve and create jobs in Michigan. It will also be an investment in important medical research. H. MSU History Professor Named Fulbright Scholar President Simon noted that Peter Alegi, Associate Professor of History, has been appointed a Fulbright Scholar at the University of KwaZulu in South Africa for the calendar year 201 0. Alegi's project is to explore "Sport and Leisure: Colonial and Post-colonial Transformations." As part of the project, Alegi will teach two newly developed history courses illustrating how African men and women can and cannot be written out of history. I. Humboldt Research Award President Simon said that Dr. Timothy C. Beers, University Distinguished Professor in Physics-astronomy, will receive the Humboldt Research Award. This award is conferred in recognition of lifetime achievement in research. J. Faculty Liaison Transitions President Simon thanked the out-going faculty liaisons for their service to the Board of Trustees and to Michigan State University: Jim Potchen, Alvin Smuckler, and Rand Spiro. They have represented their constituency well. There was no Public Participation on Issues Germane to the Agenda. Personnel Actions Provost Kim Wilcox presented the following personnel actions: Blythe, Stuart R., AY-Associate Professor, Department of Writing, Rhetoric and American Cultures, $70,000, with Tenure, effective August 16, 2009. Konstantopoulos, Spyridon, AY-Associate Professor, Department of Counseling, Educational Psychology and Special Education, $96,000, with Tenure, effective August 16, 2009. 4. 5. Board of Trustees Minutes 06.1 9.09 Lipton, Jack W., AN-Professor, Ophthalmology, $210,000, with Tenure, effective July 1, 2009. Department of Neurology and Sortwell, Caryl E., AN-Professor, Ophthalmology, $175,000, with Tenure, effective September 1, 2009. Department of Neurology and Fazleabas, Asgerally T., AN-Professor, Department of Obstetrics, Gynecology and Reproductive Biology, $240,000, with Tenure, effective October 1, 2009. Mohr, Susanne, AY-Associate Professor, Department of Physiology, $1 00,000, with Tenure, effective August 16, 2009. McAuley, J. Devin, AY-Associate Professor, Department of Psychology, $1 05,000, with Tenure, effective August 16, 2009. Trustee Ferguson moved to approve the recommendations, with support from Trustee Foster. Provost Wilcox said that Professor Blythe received a Ph.D. in English, Rhetoric and Composition from Purdue University in 1997. He has been an Associate Professor of English & Linguistics at Purdue University since 1999. Provost Wilcox said that Professor Konstantopoulos received a Ph.D. in Research Methodology from the University of Chicago in 2003. He was an Assistant Professor at Northwestern University from 2003-08 and at Boston College from 2008-present. Provost Wilcox said that Professor Lipton received a Ph.D. in Behavioral Neuroscience at the University of California at Los Angeles in 1993. He was a Professor in the Department of Psychiatry at the University of Cincinnati from 2004 to present and its Director of the Division of Neuropharmacology from 2006 to present. Provost Wilcox said that Professor Sortwell received a Ph.D. in Neurobiology from the University of Illinois at Chicago in 1994. She was an Associate Professor at Rush University Medical Center from 1997- 2005 and at the University of Cincinnati from 2005 to present. Provost Wilcox said that Professor Fazleabas received a Ph.D. in Reproductive Biology from the University of Illinois at Urbana Champaign in 1980. His area of specialty is reproductive endocrinology and infertility. Board of Trustees Minutes 06.19.09 in that Professor Mohr Provost Wilcox said Pharmacology, Cell Biology and Biochemistry from the University of Konstanz in 1996. She has been an Assistant Professor in the Departments of Medicine, Ophthalmology, and Physiology and Biophysics at Case Western Reserve University since 1999. received a Ph.D. Provost Wilcox said that Professor McAuley received a Ph.D. in Cognitive Science and Computer Science from Indiana University in 1995. He is currently an Associate Professor in the Department of Psychology at Bowling Green State University. THE BOARD VOTED to approve the recommendations. Provost Wilcox presented the following personnel action: Whitten, Pamela S., AY-Associate Dean, College of Communication Arts and Sciences; Professor, Department of Telecommunication, lnformation Studies and Media, for a change in title to Dean and for a change from an academic year appointment basis to an annual year appointment basis with a change in salary to $200,000, effective July 1, 2009. Trustee McNamara moved to approve the recommendation, with support from Trustee Owen. Provost Wilcox said that Professor Whitten received a Ph.D. in Communication Studies from the University of Kansas in 1996. She has been an Associate Professor in the Department of Telecommunication, lnformation Studies and Media at MSU from 1998 to present and Associate Dean of the College of Communication Arts and Sciences from 2006 to present. THE BOARD VOTED to approve the recommendation. the University Provost Wilcox Distinguished Professor designation for the ten faculty listed below, to be effective June 19, 2009. recommended approval of Michael S. Allen Pamela J. Fraker Thomas Glasmacher Kay E. Holekamp Ellen Ernst Kossek Department of Animal Science Departments of Biochemistry and Molecular Biology; Food Science and Human Nutrition Department of Physics and Astronomy; National Superconducting Cyclotron Laboratory Department of Zoology; Ecology, Evolutionary Biology and Behavior Program School of Labor and Industrial Relations Board of Trustees Minutes 06.19.09 6 Nigel S. Paneth Mark D. Reckase G. Phillip Robertson Satish S. Udpa Suzanne M. Wilson Department of Epidemiology Department of Counseling, Educational Psychology and Special Education Department of Crop and Soil Sciences; Kellogg Biological Station Department of Electrical and Computer Engineering Department of Teacher Education Trustee Owen moved to approve the recommendation, with support from Trustee Foster. THE BOARD VOTED to approve the recommendation. Provost Wilcox recommended continuing appointments with Tenure, effective July 1, 2009. (Appendix A) Trustee Nugent moved to approve the recommendation, with support from Trustee Owen. THE BOARD VOTED to approve the recommendation. 6. Gifts, Grants, and Contracts Associate Vice President Hunt presented the Gifts, Grants, and Contracts Report for the period April 11, 2009 through June 5, 2009. The total value for this period is $67,987,730. Trustee Owen moved to approve the report, supported by Trustee Woodard. THE BOARD VOTED to approve the Gifts, Grants, and Contracts Report. Associate Vice President Hunt introduced Dr. Cheryl Sisk, Director, MSU Neuroscience Program. Dr. Sisk discussed her research on pubertal hormones and adolescent brain development. (Appendix B) 7. Finance Committee Trustee Owen presented the Trustee Finance Committee Report and recommendations. A. Approval of Budget Development Guidelines It was recommended to the Board of Trustees that it adopt the the 201 0-1 1 2009-1 0 Budget Development Guidelines and Board of Trustees Minutes 06.19.09 6 Preliminary General Fund Budget Guidelines, which include significant revenue and expenditure totals and tuition and fee rates for 2009-10 and revenue and expenditure overall totals and tuition and fee rates for 201 0-1 1. In accordance with the Budget Guidelines, the administration is directed to develop and implement the 2009-10 General Fund, Michigan Agricultural Experiment Station, Michigan State University Extension, and Intercollegiate Athletics budgets. Due to extraordinary economic circumstances, and in order to provide students and families with an extended opportunity to plan, MSU has developed Preliminary Guidelines for 201 0-1 1, including tuition and fee adjustments. The Preliminary Guidelines establish 2010-11 revenue and expenditure totals and set 2010-11 tuition and fee rates and financial aid budgets. They also fix the base the estimated state budget operating appropriation for 2010-1 1. The administration is directed to develop 2010-11 Budget Development Guidelines in accordance with the Preliminary Guidelines. (Appendix C) rate and reduction Trustee Owen moved to approve the recommendation, with support from Trustee Nugent. President Simon said that education has to be coupled with economic competitiveness and quality of life in order to move America forward. It is important to maintain MSU's land grant values and commitment to opportunity. MSU has to be the best value for its students and stakeholders and the best investment in the State of Michigan's economic recovery and long-term sustainability. President Simon noted that one of the most dramatic pieces of the proposed two-year budget is the 30 percent increase in financial aid. This increase illustrates the commitment by the Board to preserving access and its recognition of the uncertainties facing Michigan families and state programs. President Simon stated that the proposed increase in executive compensation was the subject of careful review. Foregoing an increase would present long-term recruiting and talent retention issues. The MSU vice presidents and deans will return their salary increase this year to a scholarship fund. Each has signed a document pledging to do so. Furthermore, as communications spread across campus, 11 3 people have agreed to donate their respective salary increases to MSU student scholarship funds. The Board of Trustees Minutes 06.1 9.09 7 President's salary is set every year in December. There was no increase for the President in 2009. THE BOARD VOTED to approve the recommendation. B. Revised Asset Allocation for the Common lnvestment Fund It was recommended that the Board of Trustees amend its lnvestment Policy to revise the Fixed Income asset allocation range maximum for Michigan State University's Common lnvestment Fund by replacing Table No. 2 to Exhibit A of the Board's lnvestment Policy. (Appendix D) Trustee Owen moved to approve the recommendation, with support from Trustee Byrum. THE BOARD VOTED to approve the recommendation. C. New lnvestment Manager-Loomis, Sayles & Company, L.P. It was recommended that the Board of Trustees select Loomis, Sayles & Company, L.P. as an investment manager. Trustee Owen moved to approve the recommendation, with support from Trustee Byrum. THE BOARD VOTED to approve the recommendation D. New lnvestment Manager-Charlesbank Capital Partners LLC It was recommended that the Board of Trustees select Charlesbank Capital Partners LLC as an investment manager. Trustee Owen moved to approve the recommendation, with support from Trustee Nugent. THE BOARD VOTED to approve the recommendation. E. Fund Functioning as an Endowment-The Fund Land Grant Legacy It was recommended that the Board of Trustees establish a fund functioning as an endowment entitled The Land Grant Legacy Fund. Board of Trustees Minutes 06.1 9.09 Trustee Owen moved to approve the recommendation, with support from Trustee Nugent. Provost Wilcox noted that the estate of Ms. Marjorie Hale was left to MSU with a stipulation that it be utilized at the discretion of the governing board. The proposal is that a fund functioning as an endowment be created to provide general scholarship and fellowship support to MSU students. THE BOARD VOTED to approve the recommendation. F. Authorization to Plan-Anthony Hall-Alterations and 321 1 to Rooms 3200 It was recommended that the Board of Trustees authorize the administration to plan for the project entitled Anthony Hall- Alterations to Rooms 3200 and 321 1. Trustee Owen moved to approve the recommendation, with support from Trustee Nugent. THE BOARD VOTED to approve the recommendation. G. Authorization to Plan-Giltner Hall-Alterations to Suites 31 and 32 It was recommended that the Board authorize the Administration to plan for the project entitled Giltner Hall- Alterations to Suites 31 and 32. Trustee Owen moved to approve the recommendation, with support from Trustee Byrum. THE BOARD VOTED to approve the recommendation. H. Project Approval-Authorization Renovations to Proceed-Emmons Hall-- It was recommended that the Board of Trustees authorize the Administration to proceed with the project entitled Emmons Hall- Renovations and to approve a budget of $1 5,500,000. Trustee Owen moved to approve the recommendation, with support from Trustee Nugent. Vennie Gore, Assistant Vice President for Residential and Hospitality Services, said that Emmons Hall was built in 1955. The Board of Trustees Minutes 06.19.09 9 renovation will include a complete mechanical, electrical, and ventilation system upgrade, including the life safety systems, adding elevators, and improving student room spaces, community bathrooms, and public areas. The building will be closed for one year beginning in May 2010. THE BOARD VOTED to approve the recommendation. I. Project Approval-Authorization Alterations to Freezer Walls to Proceed-Food Stores- It was recommended that the Board of Trustees authorize the Administration to proceed with the project entitled Food Stores- Alterations to Freezer Walls and to approve a budget of $3,500,000. Trustee Owen moved to approve the recommendation, with support from Trustee Byrum. THE BOARD VOTED to approve the recommendation. J. Project Approval-Authorization Research Complex-Office Addition (footprint change) to Proceed-Engineering It was recommended that the Board of Trustees authorize the Administration to proceed with modifications that will result in a material change to the campus footprint for the project entitled Engineering Research Complex-Office Addition. Trustee Owen moved to approve the recommendation, with support from Trustee Byrum. THE BOARD VOTED to approve the recommendation. K. Project Approval-Authorization Renovations-Phase to Proceed-Old College Field IV-Concessions/Restroom Building It was recommended that the Board of Trustees authorize the Administration to proceed with modifications that will result in a material change to the campus footprint for the project entitled Old College Field Renovations-Phase Building. IV-Concessions/Restroom Trustee Owen moved to approve the recommendation, with support from Trustee Byrum. Board of Trustees Minutes 06.19.09 10 THE BOARD VOTED to approve the recommendation. L. Bid and Contract Award-Holmes Hall-Elevator Replacement It was recommended that the Board of Trustees award a contract in the amount of $1,096,000 to HBC Contracting for the project entitled Holmes Hall-Elevator Replacement. Trustee Owen moved to approve the recommendation, with support from Trustee Woodard. THE BOARD VOTED to approve the recommendation. Policy Committee Trustee McNamara presented the Trustee Policy Committee Report and recommendations. A. Revisions to the MSU Procedures Concerning Allegations of Misconduct in Research and Creative Activities It was recommended to the Board of Trustees that it approve the revisions to the MSU Procedures Concerning Allegations of Misconduct in Research and Creative Activities. (Appendix E) Trustee McNamara moved to approve the recommendation, with support from Trustee Foster. THE BOARD VOTED to approve the recommendation. B. Revision to the Policy on Outside Speakers Sponsored by Registered Student Organizations It was recommended to the Board of Trustees that it approve the revised Policy on Outside Speakers Sponsored by Registered Student Organizations ("Outside Speakers Policy"). (Appendix F) Trustee McNamara moved to approve the recommendation, with support from Trustee Ferguson. THE BOARD VOTED to approve the recommendation. C. Revision to the Faculty Grievance Policy It was recommended to the Board of Trustees that it approve the revised Faculty Grievance Policy ("FGP"), and make it effective as Board of Trustees Minutes 06.1 9.09 11 of the beginning of the next academic year on August 16, 2009. (Appendix G) Trustee McNamara moved to approve the recommendation, with support from Trustee Foster. THE BOARD VOTED to approve the recommendation. D. Revision to Ordinance 18.00 It was recommended to the Board of Trustees that it approve revised Ordinance 18.00 relating to firearms and weapons on campus. (Appendix H) Trustee Owen moved to approve the recommendation, with support from Trustee Byrum. Provost Wilcox said that concealed weapons laws within the State of Michigan have evolved. Likewise, the expectations, rights and responsibilities related to the ability to carry concealed weapons have been evolving. The proposed changes to Ordinance 18.00 are an attempt to ensure that MSU's ordinance is consistent with evolving State law regarding carrying concealed weapons. The ordinance also reasserts MSU's institutional primacy in setting policy regarding concealed weapons for faculty, staff, and students on campus. Trustee McNamara said that the Board chose to ban weapons on campus. Over the years, the State legislature has altered State law regarding carrying concealed weapons. The legislature claims to have control over where concealed weapons can be carried. It has become an enforcement issue for MSU's police. There are also issues of constitutional autonomy that have to do with whether MSU ordinances supersede laws passed by the legislature. Trustee McNamara appreciated the proposed revisions and the clarification they provide for enforcement purposes, but indicated that she would vote no on the recommendation. President Simon noted that MSU's policies continue to ban the possession of concealed weapons on campus by faculty, staff, and students. Concealed weapons are also banned by State law in residence halls, classrooms, and entertainment facilities. This ordinance revision does not open up residence halls, classrooms or the entertainment venues on campus to concealed weapons. Board of Trustees Minutes 06.19.09 12 THE BOARD VOTED to approve the recommendation. Trustees voting to approve the recommendation: Trustees Byrum, Ferguson, Foster, Nugent, Owen, Perles, and Woodard. Trustee voting against the recommendation: Trustee McNamara. E. Annual Diversity Report Paulette Granberry Russell, Director of the Office of Inclusion and Intercultural Initiatives, presented the "2008-09 Diversity and Inclusion at MSU Annual Report." (Appendix I) F. Approval of Contract Terms It was recommended that the Board of Trustees approve the execution of an amendment to license agreements with Biophotonic Solutions, Inc., consistent with earlier public notice given at a Board meeting and with the "License Agreement Term Sheet" presented to the Board. (Appendix J) It was recommended that the Board of Trustees approve the execution of an amendment to a license agreement with KTM Industries, Inc., consistent with earlier public notice given at a Board meeting and with the "License Agreement Term Sheet" presented to the Board. (Appendix K) It was recommended that the Board of Trustees approve the execution of an amendment to a license agreement with Bio Plastics and Polymers, LLC, consistent with earlier public notice given at a Board meeting and with the "License Agreement Term Sheet" now presented to the Board. (Appendix L) It was recommended that the Board of Trustees approve the execution of an amendment to a license agreement with Biopolymer Innovations, LLC, consistent with earlier public notice given at a Board meeting and with the "License Agreement Term Sheet" now presented to the Board. (Appendix M) It was recommended that the Board of Trustees approve the execution of a contract with Claytech, Inc., consistent with earlier public notice given at a Board meeting and with the "License Agreement Term Sheet" now presented to the Board. (Appendix N) Trustee McNamara moved to approve the recommendations with support from Trustee Nugent. Board of Trustees Minutes 06.19.09 13 THE BOARD VOTED to approve the recommendations. G. Notice of Intent to Negotiate a Publishing Contract with Dr. lonel Ciugulea and Dr. Richard Triemer Pursuant to State law, the Chair of the Policy Committee gave public notice to the full Board of the University's intent to negotiate a contract with Dr. lonel Ciugulea and Dr. Richard Triemer regarding a publication by the MSU Press. Dr. Ciugulea is a Visiting Research Associate in the Department of Zoology. Dr. Triemer is a Professor in the Department of Plant Biology. 9. Audit Committee Trustee Perles said that the Audit Committee had no action items, but did receive a presentation on the Internal Audit Plan for the University. This included the review of the audit plan for 2009-10 and an update on the 2008-09 audit plan. The Committee also reviewed the audit planning process, as well as emerging issues. that the Committee reviewed Trustee Perles stated the athletic department's procedures and compliance with NCAA rules. Athletic Director Mark Hollis has continued the critical focus and attention needed in this area. The compliance unit within Athletics, led by Associate Athletic Director Jennifer Smith, not only reports to the Athletic Director, but her position is further strengthened by the unit's ability to go directly to the General Counsel. Trustee Perles noted that athletic compliance consists of a very strong and progressive educational component. It also includes communications, education, and information, not only with all athletic department employees and student-athletes, but also a strong external component with education and information shared throughout the university, to boosters, and extending into the community. The Trustees, also receive annual education on applicable NCAA Rules. 10. Trustee Comments Trustee Ferguson stated that MSU is doing more with less. He thanked President Simon for her outstanding leadership and the efforts of everyone on Team MSU. The true team spirit and effort of everyone involved at the university has allowed MSU to maintain its quality during difficult economic times. Board of Trustees Minutes 06.19.09 Trustee Nugent said the enthusiasm for MSU reaches far beyond campus. He reminded everyone of the Pentwater parade, which features many MSU alumni and supporters. Trustee Byrum recognized the departing faculty liaisons: Jim Potchen, Rand Spiro, and Alvin Smucker. She thanked them for their service and dedication. At breakfast, the Trustees and faculty liaisons discussed the importance of long-term budget planning and modeling, as well as faculty recruitment and retention. Trustee Byrum thanked all those who pledged their salary increases to the student scholarship fund. Trustee McNamara indicated that she had a tremendous feeling of optimism as a result of the hard work of everyone on Team MSU. Trustee Foster thanked Vice President Poston and Assistant Vice President Byelich for their diligent work on the budget proposal. 11. Public Participation on Other Issues A. Music Therapy Ms. Angela Snell, MSU College of Music alumna, said that music therapy has changed the way that the world is approaching medicine, education, rehabilitation, and preventative care. She noted that her field of specialization is working with autistic students. Ms. Snell stated that while her particular school district experienced lay-offs in certain areas, it expanded its music therapy program department. In these difficult economic times, music therapists are in demand. However, there are not enough trained therapists to fill the available positions. Ms. Snell asked the Board to re-examine the music therapy program at MSU and asked that it be kept intact. B. Music Therapy Mr. Donald Hitko, leader of the Lansing Area Parkinson's Support Group, said that music therapy has made a positive impact on his group at its meetings. He reflected on how music therapy has touched his life and asked for it to be supported at MSU. C. Music Therapy Ms. Rebecca West, MSU College of Music alumna, stated that many thousands of lives are touched by music therapy. She urged the Board to discuss the future of the program with its students and alumni. Ms. West noted that the Music Therapy profession is Board of Trustees Minutes 06.19.09 15 growing and has gained national and international acknowledgement. She asked that the Board save this important program. D. American Red Cross Mr. John Cauley, CEO of the American Red Cross Mid Michigan Chapter, and Ms. Sharon Jaska, CEO of the American Red Cross Great Lakes Blood Services Region, expressed their appreciation for the partnership the Red Cross has enjoyed with MSU. Ms. Jaska thanked MSU for allowing the Red Cross to collect blood donations on campus. In 2008, nearly 5,000 donations were collected from MSU faculty, staff, and students. MSU is critical to meeting the needs of the citizens in Michigan. On behalf of the Red Cross, Ms. Jaska thanked MSU. E. FOlA Issues Dr. Thomas Woods, community member, said that MSU has withheld key pieces of information related to his past FOlA requests. Dr. Woods asked the Board to review FOlA misconduct to ensure that MSU conducts business in a fair and honest way. 12. Request to Adjourn On a motion by Trustee Owen, supported by Trustee Ferguson, THE BOARD VOTED to adjourn at 12: 1 5 p.m. Respectfully submitted, William R. Beekman Secretary of the Board of Trustees Board of Trustees Minutes 06.1 9.09 Appendix A T H E F O L L O W I N G A C T I O N S W H I C H I N C L U D E T H E AWARD O F T E N U R E A R E RECOMMENDED T O B E E F F E C T I V E J U L Y 1 , 2009 P R O M O T I O N T O A S S O C I A T E P R O F E S S O R , E F F E C T I V E J U L Y I, 2 0 0 9 A G R I C U L T U R E & N R N I C H O L L S . S A R A H W R I G H T , D O N N A WYNNE A L A I M 0 , K A T H E R I N E B I X . L A U R A L E E A R T S & L E T T E R S C A R R S C A R R S F D S C HUM N U T R ANR P A C K A G I N G GEOGRAPHY. C A R R S M A E S C A R R S M S U E , M A E S F D SC HUM N U T R M A E S P H I L O S O P H Y T H E A T R E E L I B R O A D B U S I N E S S S H A M S I E , J A M A L MANAGEMENT C O M M U N I C A T I O N A & S C H A V E Z . M A N U E L J O U R N A L I S M L A T I N AMER S T D S E D U C A T I O N E N G I N E E R I N G EDUC A D M I N T E A C H E R E D U C A T I O N T E A C H E R E D U C A T I O N C A L A B R E S E B A R T O N , S C O T T ANDREW T A N . P A N G - N I N G A V I Y E N T E . S A R A S E L I N L 1 , T D N G T O N G O W E I S S , K A R I M G C E M EGR & M A T S C I COMP S C I & EGR E L E C COMP ENGR E L E C COMP ENGR E L E C COMP ENGR J A M E S M A D I S O N L Y M A N B R I G G S JAMES M A D I S O N D E A N J A M E S M A D I S O N D E A N W A L L E R . J O H N C H A R L E S W I L L I A M L Y M A N B R I G G S D E A N M U S I C J I M E N E Z . R A P H A E L E R N E S T 0 M U S I C N A T U R A L S C I E N C E F E I G , M I C H A E L H O O G S T R A T E N , C H A R L E S G R E I D , G A V I N EDMUND L I B A R K I N , J U L I E C K L A U S M E I E R . C H R 1 S T O P H E R A H U . J I A N P I N G B I O C E M & M O L C B I O N S B I O C E M & M O L C B I O N S C H E M I S T R Y G E O L O G I C A L S C I K E L L O G G B I O S T A T P L A N T R S C H L A B N S C C H E M I S T R Y . COMP & S C I ENGR B I O C E M & M O L C B I O S C I & M A T H EDUC P L A N T B I O L O G Y P L A N T B I O L O G Y N U R S I N G C H A N G . M E 1 WE1 C O L L E G E O F N U R S I N G O S T E O P A T H I C M E D B U S I K . J U L I A V P H Y S I O L O G Y COM P H Y S I O L O G Y N S C . CHM, M A E S THE F O L L O W I N G A C T I O N S W H I C H I N C L U D E T H E AWARD OF TENURE ARE RECOMMENDED TO B E E F F E C T I V E J U L Y I. 2009 JUNE 19. 2009 A S S O C I A T E PROFESSORS WHO A C Q U I R E TENURE W I T H THE R E A P P O I N T M E N T . E F F E C T I V E J U L Y I. 2009 A G R I C U L T U R E & NR SAFFERMAN.STEVEN I PEACOR.SCOTT D A V I D B I O S Y S T E M S AG EGR F I S H E R I E S & W I L O L F B I O S Y S T E M S AG EGR MAES, MSUE F I S H & W I L D L F MAES, MSUE N A T U R A L S C I E N C E P L A N T RSCH L A B NSC P L A N T RSCH L A B N S C P L A N T B I O L O G Y B I O C E M MOLC B I O T O THE MSU B O A R D O F TRKJSTEES CHERYL SXSK M S C J NELJROSCIENCE PROGRAM Facilitated by the Oftice of the Vice President for Research and Graduate Studies Pubertal Hormones and Adolescent Brain Development Cheryl Sisk, PhD - - - - - - Sex-biased mental illnesses & pubertal development Eatina disorders - Rare before puberty and rare in males - Increased incidence with earlier onset of puberty - Anorexia nervosa: highest mortality rate of any psychiatric illness Depression - Twice as common in females - Sex difference emerges during puberty Schizophrenia - Onset in late adolescence - Earlier age at onset, greater intensity of symptoms, poorer prognosis in males Hormones can control gene expression and protein synthesis in brain cells Nucle US n----._- protein Adolescent brain development in humans is dynamic and protracted ? I - X I f 0 0 2 b E 3 - 8 0 Q) 4 10 16 22 Age MSU Study: Pubertal timing and risk for disordered eating in humans 71 7 female, 643 male college students Retrospective estimate of when puberty occurred relative to peers Completed questionnaires assessing disordered eating and alcohol use Early puberty is associated with higher risk for disordered eating in adulthood Zehr, Culbert, Sisk & Klump Hormones & Behavior, 2007 Birthdating brain cells with BrdU . . . . * ) I 1 , . Newly born cells shown visualization of BrdU incorporation into DNA in dividing cells Hormones drive sex differences in addition of new cells during puberty Non-specific stain BrdU-specific stain .SHAM GDX c 0 .- cn Ahrned, Zehr, Schulz, Lorenz, DonCarlos & Sisk Nature Neuroscience, 2008 Implications for Human Puberty and ~dolescence Hypotheses and tools to study effects of earlyldelayed puberty, environmental endocrine disruptors, androgenic anabolic steroids on adolescent brain development Hypotheses and tools to study effects of therapeutic agents known to affect neurogenesis on the adolescent brain, e.g. antidepressants Budget Development Overview Appendix C In order to improve institutional planning and provide students and their families additional information earlier in the budget cycle, MSU has prepared 2009-1 0 Budget Development Guidelines (Guidelines) and 201 0-1 1 Preliminary General Fund Budget Guidelines (Preliminary Guidelines). Guidelines for the Michigan Experiment Station, Michigan State University Extension, and Intercollegiate Athletics are present for 2009-1 0 only. For the two-year period, tuition and fees for resident undergraduates will increase by 10.1 percent (5.2 percent in 2009-10, 4.9 percent in 2010-1 I), financial aid will increase by 30 percent ( I 7 percent in 2009-10, 13 percent in 2010-1 I ) , and MSU will implement base budget operating reductions totaling approximately 10 percent (4 percent in 2009-1 0, 6 percent in 201 0-1 1 ). Guidelines are based upon a 3.1 percent reduction in general fund appropriation support in 2009-1 0 and no further reduction in 2010-1 1, consistent with the state's stimulus application to the federal government. Contingent budget preservation authority is included so that the President can increase tuition and fees in the event that State appropriation support is less than levels included in the Guidelines or the Preliminary Guidelines and can mitigate the effect of tuition and fee increases for resident undergraduates in 2009-1 0 and 201 0-1 1 through one-time offsets of tuition increases if federal stimulus funds are made available through the state. Staged salary increments are planned in 2009-10 for faculty and non-unionized academic staff with a 1 percent increment in October and 1 percent in April. Individual raises will be based on merit. Wages for students and research assistants will go up 2.75 percent. Other staff is subject to collective bargaining. Proposed 2009-10 budgets for the University General Fund, Michigan Agricultural Experiment Station, Michigan State University Extension, and Intercollegiate Athletics total $1 . I 5 billion. The Guidelines and Preliminary Guidelines are provided for Board action. Next year at this time, detailed 2010-1 1 Budget Development Guidelines will be presented to the Board for action. They will be prepared based upon the Preliminary Guidelines. Specific revenue and expenditure amounts, within the totals established by the Preliminary Guidelines, will be included when the Preliminary Guidelines are reviewed with the Board early in 201 0. 2009-1 0 Budget Development Guidelines General Fund Revenues o University General Fund 2009-10 budget is established at $981.8 million, an increase of $41.0 million o State appropriations, based on the Senate Higher Education Subcommittee recommendation, are estimated at $283.9 million, a decrease of $9.1 million or 3.1 percent* * The Senate Higher Education Subcommittee has proposed a non-recurring appropriation supplement, in an amount totaling approximately $7.9 million, to restore most of the proposed appropriation decrease. This proposal is a significant contraction from the Governor's original recommendation of $79 million, due to deteriorating state revenue estimates. 1 Budget Development Overview Page 2 o Tuition and fees estimated at $598.3 million based on an approximate 5.2 percent rate adjustment for all regular students o Continues three-year phased initiative to simplify the tuition and fee structure by incorporating energy and matriculation fees into the per-credit-hour rate o Provides contingent authority to the President with prior Board notification to increase tuition and fees if over the year the state recurring main campus operating appropriation falls below anticipated levels. Should recurring appropriations support exceed the budgeted amount, the President would have authority to commensurately decrease base budget operating reductions o In the event that non-recurring stimulus support is allocated to MSU, after notice to the Board, the President will have the authority to apply those funds to mitigate the effect of the proposed tuition and fee increase for resident undergraduates by one-time offsets and by restoring financial aid lost by those students if State of Michigan financial aid programs are cut back or eliminated. Should additional such funds be available after these needs are met, the President would have authority to apply them to facility requirements o Other revenues, which include indirect cost recovery and investment income, total $88.4 million General Fund Expenditures o Base financial aid increases of approximately 17 percent to $82.6 million General increase includes funding to extend the Spartan Advantage program, aimed at students below the poverty level, to a full cohort of students and to adjust overall allocations to address deepening need o Utility costs are estimated to increase by $5.2 million, or 10.8 percent, and fully funded at this time based on projected continuing international demand for energy o Base budget operating reductions totaling 4 percent, or $19.4 million, will be applied to all major units o Total employee compensation amounts increase $20.7 million A 2.0 percent general salary adjustment for faculty and non-unionized academic staff including a segment to address market pressures and provide special recognition for faculty contributions Increases will be based on merit Effective date for the first half of the increment will be October 1, with the second half on April 1 Student wage increases and those for research assistants are established at 2.75 percent 2 Budget Development Overview Page 3 Other employee increases as determined b i collective bargaining agreements Includes $3.4 million for health care increases o Supplies and services budget Increase of 1.5 percent; in most instances allocated differentially across units o Other operating funds increase $2.6 million and include funding for library acquisitions, contractual services, and plant maintenance o Long-term MSU financial framework funding of $2.6 million for administrative computing o Critical space at $2.2 million represents the continuation of increments to fund currently identified facility needs o University Advancement, including external relations support, increased by $2.6 million o Revenue-based initiatives increase by $1 1 million, including $1.7 million for Human Medicine in western Michigan, $2.8 million for Osteopathic Medicine in eastern Michigan, and $5.5 million for Virtual, Off Campus, and other programs o Funding from realized gains on investment trusts, when available, will be committed to address just-in-time maintenance requirements and, with the $2.6 million noted above, will also be used to continue development of the financial information system o Continuation of the 1 -percent program efficiency and reinvestment fund Michigan Agricultural Experiment Station o Michigan Agricultural Experiment Station 2009-10 budget established at $43.6 million, a decrease of $1.9 million o Based on the Senate Higher Education Subcommittee recommendation, state appropriation support is estimated at $34.2 million, reflecting a small reduction (see Note below) o Restricted funds, uncommitted funds from the prior year, are down $1.7 million Note: The Senate Higher Education Subcommittee recommendation includes a non-recurring stimulus allocation for MAES and MSUE in the combined total amount of approximately $27.8 million. Budget Development Overview Page 4 Michigan State University Extension o Michigan State University Extension 2009-10 budget established at $50.1 million, a decrease of $1.0 million o Based on the Senate Higher Education Subcommittee recommendation, state appropriation is estimated at $29.5 million, reflecting a small reduction (see Note, previous page) o Restricted funds, uncommitted funds from the prior year, are down $0.9 million Intercollegiate Athletics o Intercollegiate Athletics 2009-10 budget established at $74.0 million, an increase of $0.5 million, or approximately 0.7 percent 201 0-1 1 Preliminary General Fund Budget Guidelines Due to the extraordinary economic circumstances and in order to provide students and their families an extended opportunity to plan, MSU has developed preliminary general fund expenditure and revenue budgets for 2010-1 1, including tuition and fee increases. Board action on the Preliminary Guidelines establishes 201 0-1 1 revenue and expenditure totals and sets the 201 0-1 1 tuition and fee rates and financial aid increases subject to budget preservation authority contingencies noted below. It also fixes the base budget operating reduction rate and the estimated state appropriation for 201 0-1 1. Detailed revenue and expenditure variables will be presented to the Board of Trustees during early 201 0 for review and possible updating. Detailed 201 0-1 1 Budget Development Guidelines, based upon the Preliminary Guidelines, will be presented to the Board for action by July, 201 0. General Fund Revenues o Revenues of $1,024.9 million o Appropriations at the 2009-1 0 year level of $283.9 million o Tuition and fees increase 4.9 percent for resident undergraduates and 5.0 percent for other regular students to $645.3 million, with other revenues totaling $95.7 million o If the University's 201 0-1 1 base main campus operating appropriation from the State is less than $283.9 million, contingent budget preservation authority allows the President to raise tuition and fees by a rate sufficient to offset, on an annualized basis, the loss of expected State support and to provide the additional financial aid which students will need because of this tuition and fee increase Budget Development Overview Page 5 General Fund Expenditures o Expenditures of $1,024.9 million o Planned reductions at approximately 6 percent, or approximately $29.1 million o Financial aid budgets increased by 13 percent, or approximately $1 0.7 million o Core expenditures increase by $1 9.2 million. Additional expenditures totaling $23.9 million include financial aid increases, revenue based initiatives, and financial framework requirements. Key financial framework expenditures are noted below: o Financial Aid, $6.6 million o Advancement, $1.5 million (year two of four) o Critical Space, $2.2 million (year three of three) o Computing, $2.6 million (year five of five) o Other expenditure adjustments, including salaries and health care, will be accommodated within the above expenditure total based upon circumstances during the spring of 201 0 General o The Preliminary Guidelines have been formulated in the context of significant reductions in State support over the next three years. They will allow MSU to better inform students of future changes in tuition and assist the university community in preparing for adverse economic circumstances in a planned manner, over a period of years o Other university budgets, including those for the Michigan Agricultural Experiment Station, the Michigan State University Extension Service, and the Department of Intercollegiate Athletics, will be developed within available resources and in accordance with detailed university-wide guidelines for compensation adjustments developed early in 2010 Trustee Finance Committee -Attachment 1 h m 19.2009 MICHIGAN STATE U N I V E R S I T Y MEMORANDUM June 19,2009 TO: Board of Trustees Finance Committee FROM: Kim Wilcox Fred Poston SUBJECT: 2009-1 0 Budget Development Guidelines and 201 0-1 1 Preliminary General Fund Budget Guidelines Implementation RECOMMENDATION: BE IT RESOLVED that the Trustee Finance Committee recommends to the Board of Trustees adoption of the attached 2009-1 0 Budget Development Guidelines ( Guidelines) and 2010-1 1 Preliminary General Fund Budget Guidelines (Preliminary Guidelines), which include significant revenue and expenditure totals and tuition and fee rates for 2009-1 0 and revenue and expenditure overall totals and tuition and fee rates for 201 0- 11. In accordance with the Budget Guidelines, the administration is directed to develop and implement the 2009-1 0 General Fund, Michigan Agricultural Experiment Station, Michigan State University Extension, and Intercollegiate Athletics budgets. Due to the extraordinary economic circumstances and in order to provide students and families an extended opportunity to plan, MSU has developed the Preliminary Guidelines, including tuition and fee adjustments. The Preliminary Guidelines establish 201 0-1 1 revenue and expenditure totals and set 2010-1 1 tuition and fee rates and financial aid budgets. They also fix the base budget operating reduction rate and the estimated state appropriation for 201 0-1 1. The administration is directed to develop 2010- 11 Budget Development Guidelines in accordance with the Preliminary Guidelines. OFFICE OF THE PROVOST OFFICE OF THE VICE PRESIDENT FOR FINANCE AND OPERATIONS AND TREASURER Budget Development Guidelines and Preliminary General Fund Budget Guidelines Implementation Memo June 19, 2009 Page 2 BACKGROUND: Attachment A summarizes revenues and expenditures for the 2009-1 0 and 201 0-1 1 budgets. Attachments B1 and B2 provide student tuition and fee information for 2009-1 0 and 201 0-1 1, respectively. Attachment C provides detailed general fund revenues and expenditure changes for the proposed 2009-1 0 budget. These budgets - even under these difficult economic circumstances -- are designed to preserve and, where possible, build on MSU's strength and stature as one of the top 100 research universities in the world. Michigan State University continues to support the state and its people, enhancing economic competitiveness and quality of life. MSU's reach crosses international boundaries to share the best of Michigan with the world, and brings the best of the world to Michigan. As our society and economy become increasingly global in character, access to a globally competitive education plays an ever more important role, both in each individual's potential for success and in collectively contributing to the state's economic vitality. Action on the budget to preserve current accomplishments and realize the Boldness by Design vision is occurring during a period of economic uncertainty. In order to protect MSU's value to the state, a reasonable level of financial stability is required. The major sources of revenue to the University each fiscal year are the base main campus operating appropriation from the state and tuition and fees paid by students. In the event anticipated recurring state support is reduced, deferred, delayed, or withheld, contingent budget preservation authority is provided to the President under paragraph 16 of the Budget Guidelines, paragraph 9 of the Preliminary Guidelines, and Attachment D to protect the quality of MSU programs and simultaneously maintain student access. The President will report to the Board at least two weeks prior to implementation any tuition and fee rate and financial aid adjustment and any tuition and fee surcharge authorized by this resolution. Should recurring appropriations support exceed the budgeted amount, the President will have authority under Attachment D to commensurately decrease general fund budget operating reductions. Budget Development Guidelines and Preliminary General Fund Budget Guidelines lmplementation Memo June 19, 2009 Page 3 Under Attachment D, the President will have authority, after notice to the Board, to apply any allocation of nonrecurring federal stimulus support to MSU's general fund to mitigate the effect of the proposed 2009-10 and 2000-1 1 tuition and fee increases for resident undergraduates by one-time offsets and by restoring financial aid lost by these students in the event existing state financial aid programs are cut back or eliminated. Should additional stimulus funds be available after these needs are met, the President would have authority to apply them to provide funding for facility projects. In accordance with these Budget Guidelines, the proposed 2009-1 0 budgets for the General Fund, Michigan Agricultural Experiment Station, MSU Extension, and Intercollegiate Athletics will be developed and implemented. Detailed revenue and expenditure variables for 201 0-1 1 will be presented to the Board of Trustees during early 201 0 for review and possible updating based on then-current circumstances. Detailed 201 0-1 1 Budget Development Guidelines, based on the Preliminary Guidelines, including the 2010-1 1 tuition and fees established by the Preliminary Guidelines, will be presented to the Board of Trustees for action by July, 201 0. Attachments c: Board of Trustees Policy Committee President Lou Anna Kimsey Simon William Rnekman Secrntarv tn the Rnard 2009-10 BUDGET DEVELOPMENT GUIDELINES AND 2010-1 1 PRELIMINARY GENERAL FUND BUDGET GUIDELINES Overview The investment our students, their families and the state make in an MSU education today will continue to pay dividends in the years ahead. By enhancing MSU's internationally acclaimed educational programs today for our students, we also serve as a catalyst for Michigan's economic prosperity in the future. The 2009-1 0 Budget Development Guidelines below identify projected revenues and expenditures, including appropriations, tuition and fee revenues, financial aid, utility requirements, compensation parameters for faculty and other employee groups, continuation of the program efficiency and reinvestment fund, and the first component of a two-year 10 percent, or $50 million, budget reduction plan. Due to the extraordinary economic circumstances and in order to provide students and families an extended opportunity to plan, MSU has also developed the 201 0-1 1 Preliminary General Fund Budget Guidelines below. They establish revenue and expenditure totals and the total base budget operating reduction rate, and set tuition and fee rates and financial aid increases, for 2010-1 1. 2009-1 0 Budqet Development Guidelines Board action authorizes the administration to develop and implement 2009-1 0 budgets in accordance with the following guidelines: Revenues 1. Final appropriation information is unlikely to be available until later this spring or early summer. To permit the budgeting process to move forward on a timely basis, in order to provide students with the information they need to plan and to allow MSU to proceed with necessary reductions, recurring general fund appropriations are estimated at the Senate level of $283.9 million, a 3.1 percent reduction. 2. In addition, the Senate Higher Education Subcommittee recommendation allocates $7.9 million in nonrecurring federal stimulus support to MSU's general fund. Because of their nonrecurring nature, these funds will be separately accounted for and, if received, will be made available to be applied, on a one-time basis, to offset the budgeted 2009-1 0 increase in resident undergraduate tuition and fees and address reductions in state scholarship programs. 3. The general fund operating budget for 2009-1 0 will be developed based on revenue estimates of $981.8 million. This amount includes $283.9 million in appropriations; $598.3 million in tuition and fees; and $88.4 million in other revenues, which is composed primarily of investment income and indirect cost recovery. Additionally, there are pass-through allocations of $1 1 million in new revenue-based initiative proceeds and $0.2 million in research facilitation allocations. 4. Tuition rates for resident undergraduates will increase by approximately 5.2 percent for all regular students. The nonrecurring stimulus funds allocated to MSU in the Senate Higher Education Subcommittee budget, if received, are sufficient to offset a substantial share of this increase on a one-time basis for resident undergraduate students enrolled during the fall and spring semesters. 5. To simplify the tuition and fee structure and improve the transparency of rate structures for students, energy and matriculation fees are being incorporated into a per-credit-hour structure phased in over three years, with 2009-10 being the second year. Rates are calculated from a restructured base which takes into account student credit loads and reporting requirements. Expenditures 6. Major expenditure increases will include funding for student financial aid; utilities and new space; employee compensation; supplies, services, and equipment increments; a $1 9.4 million base budget reduction; and continuation of the 1 percent program efficiency and reinvestment fund, which is calculated to be $4.9 million. Specific expenditure recommendations are: a. Regular student financial aid increases of $1 2.0 million, or approximately 17 percent, inclusive of $1 million for the fourth cohort of the Spartan Advantage, a program for new resident undergraduate students entering Fall 2002 and later whose personal family resources are below the poverty level. Also included is $4 million allocated to address both increased numbers of students with need and deepening aid requirements per student. b. New utility and facility-related funding increases total $5.2 million, including approximately $4.4 million of adjustments due to a 10.8 percent increase in continuing utility costs, and $0.8 million of new space requirements. c. Employee compensation adjustments of approximately $20.7 million, including $6 million for benefits expenses and $6.5 million to annualize the 2008-09 salary increments. i. Faculty and academic staff salary adjustments will be determined based on merit. The general components of the raise are noted below; more specific information is included in the annual faculty and academic staff raise guidelines developed by the Office of the Provost. Salary adjustments for faculty and nonunionized academic staff are included at 2.0 percent. As in past years, a segment is recommended for market adjustments administered centrally and targeted for ranked faculty but open to all faculty and academic staff. Awards for both the merit pool and market pool will occur in two parts, half October 1 and half April 1, due to constrained finances during a time of continued growth in faculty productivity and anticipated progress in health care reform. ii. Stipend ranges for graduate assistants holding research or administrative appointments will increase by 2.75 percent. Stipend increases for individual assistants will be determined by the employing units. Compensation adjustments, including stipends, health care and graduate assistant tuition waiver, for assistants holding teaching appointments are determined through collective bargaining. iii. Existing minima and maxima for student labor pay ranges will be increased by 2.75 percent. iv. Increases in pay rates for undergraduate and professorial assistants will parallel student labor adjustments. v. Salary and wage adjustments for most other employee groups are subject to collective bargaining agreements. d. An increment for supplies, services, and equipment of $1.3 million, approximately 1.5 percent. Unit allocations can be differential, based upon identified programmatic need. e. An increment for other budgetary adjustments of $2.6 million, which includes funding for debt service and other general university purposes. f. Continuation of the 1 percent program efficiency and reinvestment fund. Reinvestments will address normal year-to- year programmatic adjustments. Over the past ten years, internal reallocations totaling approximately $32 million have been implemented across campus. g. Continuation of the $1 0.4 million Technology/Teaching and Learning Fund. As in previous years, allocations from this fund will be made on a nonrecurring basis. 7. Expenditures for new revenue-based initiatives of $1 1 million include the following: a. Special academic programs, including Broad College of Business graduate programs, $1.5 million; b. Human Medicine in western Michigan, $1.7 million; c. Osteopathic Medicine in eastern Michigan, $2.8 million; and d. Virtual, Off-Campus, and other programs, $5.0 million 8. Growth in unit research activity necessitates an increase in the pass-through to units of indirect cost recovery of $0.2 million. 9. Base budget reductions totaling $19.4 million, or 4 percent, will be applied to all major administrative units according to their reducible bases to help address declining appropriation support and current economic circumstances. 10.As in previous budgets, projected 2009-1 0 revenues are augmented from funds appropriated in the 2008-09 budget, by $2.5 million this year. 11. Core expenditures increase by 3 percent. In addition, financial aid changes total $1 2.0 million, revenue based initiatives total $1 1.0 million, and financial framework items below total $7.4 million: a. Funding for advancement programs is included at $2.3 million and related public relations at $0.3 million. This allocation builds advancement capacity and anticipates future campaigns. b. Critical space at $2.2 million represents the base increment required to pay bonds for projected space needs. Continuation of annual increments is anticipated to fully fund currently identified facility needs. c. Administrative computing requirements are included at $2.6 million, the fourth year of a five-year commitment. 12. General Fund expenditures over the 2009-1 0 fiscal year will be based on the budget and, upon completion of the current year, resources carried forward for subsequent expenditure. Carry forward amounts will be noted in the 2009-1 0 financial statements. 13.The 1 percent tax on auxiliary income derived from off-campus sources, initiated in 2007-08, continues in support of the development of the financial information system. General 14. Other university budgets, including those for the Michigan Agricultural Experiment Station, the Michigan State University Extension Set-vice, and the Department of Intercollegiate Athletics, have been developed within available resources and in accordance with university-wide guidelines for compensation adjustments as outlined above. 15. Realized gains from maturing previously established endowment trusts, if available, will be allocated to fund just-in-time infrastructure requirements and costs for the new financial information system on a continuing basis. Expenditures will be reported annually as part of the financial statements. Other sources of funds for these expenses include the 1 percent tax noted in paragraph 15 and debt financing. 16. In the event the anticipated state base main campus operating appropriation support is reduced, deferred, delayed, or withheld, contingent budget preservation authority is provided to the President under Attachment D to protect the quality of MSU programs and simultaneously maintain student access through a recurring tuition and fee increase or a nonrecurring tuition and fee surcharge. Should recurring appropriations support exceed the budgeted amount, the President will have authority under Attachment D to commensurately decrease general fund budget operating reductions. Under Attachment D, the President will have authority to use any nonrecurring appropriation support from federal stimulus funds to offset planned 2009-1 0 and 201 0-1 1 tuition and fee increases for resident undergraduate students on a one-time basis and to address reductions in state financial aid programs affecting those students during 2009-1 0 or 201 0-1 1. Should additional such funds be available after these needs are met, the President will have authority to apply the amounts remaining to facility projects, as specified in Attachment D. The President will report to the Board, at least two weeks prior to its implementation, any tuition and fee rate and financial aid adjustment and any tuition and fee surcharge authorized by these Budget Guidelines. 17. Attachment A contains the summary of proposed budgets for the General Fund, Michigan Agricultural Experiment Station, Michigan State University Extension, and Intercollegiate Athletics. 201 0-1 1 Preliminarv General Fund Budqet Guidelines Board action adopts these Preliminary Guidelines for the 2010-1 1 period, including revenue and expenditure totals. Action on the Preliminary Guidelines sets the 201 0-1 1 tuition and fee rates, the 201 0-1 1 financial aid budget increase, and the total base budget operating reduction rate in 2010-1 1. Detailed expenditure and revenue variables will be presented to the Board of Trustees during early 201 0 for review and possible updating based upon then-current circumstances. Detailed 201 0-1 1 Budget Development Guidelines, based on these Preliminary Guidelines, will be presented to the Board of Trustees for action by July, 201 0. General Fund Revenues 1. Revenues are projected to total $1,024.9 million, including appropriations maintained at the prior year level of $283.9 million; tuition and fees, based upon a 4.9 percent adjustment for resident undergraduates and 5.0 percent for other regular students, of $645.3 million; and other revenues totaling $95.7 million. 2. In the event that the University's 2010-1 1 base main campus operating appropriation from the State is less than $283.9 million, the President is authorized to raise tuition and fees by a rate sufficient to offset, on an annualized basis, the loss of expected State support and to provide the additional financial aid which students will need because of this tuition and fee increase. General Fund Expenditures 3. Expenditures are projected to total $1,024.9 million. 4. Planned reductions are anticipated at approximately 6 percent, or approximately $29.1 million. 5. Financial aid budgets will increase by 13 percent, or approximately $1 0.7 million . 6. Core expenditures are anticipated to increase by approximately 3 percent. Additional expenditures totaling $23.9 million include financial aid increases, revenue based initiatives, and financial framework requirements. Key financial framework expenditures are noted below: a. Advancement, $1.5 million (year two of four) b. Critical Space, $2.2 million (year three of three) c. Computing, $2.6 million (year five of five) 7. Other expenditure adjustments, including salaries and health care, will be accommodated within the above expenditure total based upon circumstances during the spring of 2010. General 8. These Preliminary Guidelines are formulated in the context of significant reductions in state support over the next three years. They allow MSU to better inform students of future changes in tuition and assist the university community in preparing for adverse economic circumstances in a planned manner, over a period of years. 9. In the event the anticipated state base main campus operating appropriation support is reduced, deferred, delayed, or withheld, contingent budget preservation authority is provided to the President under Attachment D to protect the quality of MSU programs and simultaneously maintain student access through a recurring tuition and fee increase or a nonrecurring tuition and fee surcharge. Should recurring appropriations support exceed the budgeted amount, the President will have authority under Attachment D to commensurately decrease general fund budget operating reductions. Under Attachment Dl the President will have authority to use any nonrecurring appropriation support from federal stimulus funds to offset planned 2010-1 1 tuition and fee increases for resident undergraduate students on a one-time basis and to address reductions in state financial aid programs affecting these students during 201 0-1 1. Should additional such funds be available after these needs are met, the President will have authority to apply the amounts remaining to facility projects, as specified in Attachment D. The President will report to the Board, at least two weeks prior to its implementation, any tuition and fee rate or financial aid adjustment and any tuition and fee surcharge authorized by these Budget Guidelines. Attachment 81 MICHIGAN STATE UNIVERSITY 2009-10 Tuition Resident Nonresident Per I Semester I Per Credlt ( $478.25 $478.25 $478.25 Rate Structure Undergraduates Lower Dlvision Cont. Lower Division Upper Divislon Cont. Upper Division Masters Doctoral Lifelong Education Special Block Fees Broad MBA Human and Osteopathic Medicine Extended Medical Curriculum Medical Scientist Training Program College of Veterinary Medicine (CVM-8) CVM Clinical Year - Fail & Spring CVM Clinical Year - Summer Medical Scientist Training Program $10,714 $7,262 $7,405 $10,822 $9,568 $6,780 $6,978 Fees per Semester I Full-time I Part-time I Matriculation and Energy Fee $235.00 $166.00 NOTES: 1. Beginning Fall 2005, all entering undergraduate students were assessed a per-credit fee in addition to the regular rate. These students and all subsequent newly admitted undergraduate students will be assessed the "Admitted Fall 2005 and After" undergraduate rate. The "Continuing" rate will be discontinued at the end of Summer Semester 2010. 2. Special programmatic fees will be assessed to undergraduate juniors and seniors as follows: $100 per semester ($50 part-time) for students in science and technology intensive majors; $100 per semester ($50 part-time) for students in health sciences majors; and $200 per semester ($100.00 part-time) for students in the Broad College of Business. 3. All students will be assessed a Matriculation and Energy fee of $235 per semester ($166 part-time). 4. Student tuition and fees include university support for student health services. 5. Part-time students are defined as those enrolling for four credits or less per semester. 6. Per semester fees include the matriculation, information/technology. infrastructureltechnology, and energy fees. 7. The Engineering Program fee is established at $461 for full-time status ($281 part-time except $0 for summer) and applies to upper division and graduate level Engineering students. 8. Block fee for Teacher Certification Internship year is $5,503 for resident students and $1 1.698 for nonresident students. This rate includes the matriculation, infrast~ctureltechnology and energy fees. 9. Tuition and fees for special programs and courses will be determined administratively, based on programmatic considerations. 10. A registration fee of $25 per semester will be assessed on all international students except those enrolling in Graduate Studies in Education Overseas. 11. College of Education Masters, Doctoral, and Educational Specialist students will be assessed a special fee of $33 per credit hour in addition to general tuition and fees applicable to all graduate students. 12. Matriculation and Energy Fee is included in the Special Block Fees. 8 9 Attachment BZ MICHIGAN STATE UNIVERSITY 2010-11 Proposed Tuition (UGR 4.9%, OTHER 5.0%) Resident Nonresident Semester Credit Semester Credit Rate Structure Undergraduates Lower Dlvlslon Upper Division Masters Doctoral Lifelong Education Special Block Fees Broad MBA Human and Osteopathic Medicine Extended Medical Cuniculum Medical Scientist Training Program College of Veterinary Medicine (CVM-8) CVM Clinical Year - Fall & Spring CVM Clinical Year - Summer Medical Scientist Training Program NOTES: 1. Special programmatic fees will be assessed to undergraduate juniors and seniors as follows: $100 per semester ($50 part-time) for students in science and technology intensive majors; $100 per semester ($50 part-time) for students in health sciences majors; and $200 per semester ($100.00 part-time) for students in the Broad College of Business. 2. Student tuition and fees include university support for student health services. 3. Part-time students are defined as those enrolling for four credits or less per semester 4. The Engineering Program fee is established at $461 for full-time status ($281 part-time except $0 for summer) and applies to upper division and graduate level Engineering students. 5. Block fee for Teacher Certification Internship year is $5,799 for resident students and $12,387 for nonresident students. This rate includes the matriculation, infrastructure/technology and energy fees. 6. Tuition and fees for special programs and courses will be determined administratively, based on programmatic considerations 7. A registration fee of $25 per semester will be assessed on all international students except those enrolling in Graduate Studiesin Education Overseas. 8. College of Education Masters, Doctoral, and Educational Specialist students will be assessed a special fee of $33 per credit hour in addition to general tuition and fees applicable to all graduate students. Michigan State University 2009-10 Budget Guidelines 2008-09 Budget Attachment C 2009-1 0 Proposed Budqet Revenues Beginning Base State Appropriations Student Tuition and Fees Other Revenues Estimated Revenues Research Facilitation Passthrough Revenue ~ a s e d lnititatives Total Est. Revenues Expenditures Beginning Base Financial Aid Salary/Compensation UtilitiesINew Space Supplies/Services Other Operating DevelopmentlPublic Relations Critical Space Administrative Computing Base Budget Reduction Estimated Expenditures Research Facilitation Support Revenue Based lnititatives Total Est. Expenditures CONTINGENT BUDGET PRESERVATION AUTHORITY 2009-1 1 Attachment D The authority provided to the President under the 2009- 10 Budget Development Guidelines (Budget Guidelines) and under the 20 10-20 1 1 Preliminary General Fund Budget Guidelines (Preliminary Guidelines) is intended to preserve the integrity of the General Fund budgets established by the Board in the face of a variety of contingencies relating to State support for the University's operations. It recognizes that the two primary sources of revenue for the University are tuition and fees paid by students and the annual base main campus operating appropriation from the State, and that they are interdependent. As in past years, cost containment measures and measures designed to optimize revenues from sources other than the State and tuition have been built into the Budget Guidelines and the Preliminary Guidelines. Indeed, the base budget operating reductions required by the Budget Guidelines and the Preliminary Guidelines are the most severe cost containment measures at the University in many years. The unprecedented financial crisis facing the State at this time makes it difficult to rely with confidence on the level of support promised by the State and incorporated into the Budget Guidelines and the Preliminary Guidelines. Therefore, the potential for cuts in expected State support integral to the budgets necessitates granting the President authority to respond to such cuts by generating sufficient additional tuition and fee revenues to protect the University's long-term financial health and its high standing in the academy, for the benefit of its students, alumni, faculty, staff, and other members of the University community. In adopting the Budget Guidelines and the Preliminary Guidelines, it is the expectation of the Board that MSU's 2009-10 and 2010-1 1 base main campus operating appropriations from the State will be $283.9 million and that the State will not defer, delay, or withhold any payments due to the University as part of its 2009- 10 or 20 10- 1 1 base main campus operating appropriations from the State. The tuition and fee rates in the Budget Guidelines and the Preliminary Guidelines are established by the Board in reliance on the timely payment of the anticipated amounts from the State. In the event that the University's 2009- 10 or 20 10- 1 1 base main campus operating appropriation from the State is less than $283.9 million, the President is authorized to raise tuition and fees by a rate up to that sufficient to offset, on an annualized basis, the loss of expected State support and to provide the additional financial aid which students will need because of this tuition and fee increase. Alternatively, if the University's 2009-10 base main campus appropriation from the State is more than $283.9 million, the President is authorized to use the additional support received from the State to decrease the base budget operating reductions required by the Budget Guidelines. Similarly, if the 2010-1 1 base main campus appropriation from the State is more than $283.9 million, the President is authorized to use the additional support received from the State to decrease the base budget operating reductions required by the Preliminary Guidelines. If h n d s from the 2009- 10 or 20 10- 1 1 base main campus appropriation from the State remain after the respective base budget operating reductions have been eliminated, the President is authorized to reduce tuition and fees for resident undergraduate students by a rate that will reflect, on an annualized basis, the remaining additional support received from the State. Further, in the event that the State defers, delays, or withholds any part of any regularly scheduled 2009- 10 or 20 10- 1 1 base main campus appropriation payment to the University, or the State takes any other action that reduces or postpones, on a nonrecurring basis, or changes the traditional schedule for, the payment to the University of any part of its 2009- 10 or 20 10- 1 I base main campus operating appropriation, the President is authorized to implement a tuition and fee surcharge to generate additional revenues up to the amount needed to make the University whole for the financial impact of the lost or delayed payments. Any such surcharge shall be a specific period of time and shall be discontinued once the University has been made whole for the impact of the lost or delayed payments. Any such surcharge may be calculated to occur over a period of up to three years to moderate the impact of the surcharge on students during any one semester or academic year. If the University receives funds for main campus operations from the State originally appropriated and allocated to the State under Title XIV of the American Recovery and Reinvestment Act of 2009 (ARRA), the President is authorized to use such h n d s to mitigate the effect of the budgeted tuition and fee increase for resident undergraduate students for 2009-10 and 2010-1 1 by offsetting, on a one-time basis, (a) the budgeted tuition increase for resident undergraduate students for 2009- 10 or 20 10- 1 I, or any semester(s) thereof, depending when such funds are received, or (b) cuts in State scholarships for resident undergraduate students for 2009- 10 and 20 10- 1 1, or any semester(s) thereof, depending when such funds are received, resulting from reductions in, or the elimination of, any of the State's existing financial aid programs, or (c) any combination of the two. If any such h n d s remain after this mitigation of the tuition and fee increase, the President is authorized to use the remaining funds for ARRA-appropriate capital spending in 2009-10 and 20 10- 1 1. (a) The President will report to the Board, by written notice at least two weeks prior to its implementation, any tuition and fee rate adjustment, tuition and fee surcharge, or other action hereby authorized. (b) It is the Board's expectation that any tuition and fee rate and financial aid adjustment and any tuition and fee surcharge will be implemented promptly after the need for such an adjustment or surcharge becomes clear, generally in the next semester for which bills reflecting the adjustment or surcharge can then be issued. If the schedule for sending out the bills reflecting the adjustment or surcharge permits, the President will also report to the Board about the adjustment or surcharge at a Board meeting prior to its implementation. No such adjustment or surcharge shall be implemented retrospectively for any semester for which bills have already been issued. MICHIGAN STATE U N I V E R S I T Y June 10, 2009 MEMORANDUM To: Trustee Finance Committee From: Fred L. Poston &;. 1 - L . Subject: Revised Asset Allocation for the Common Investment Fund RECOMMENDATION BE IT RESOLVED that the Trustee Finance Committee recommends that the Board of Trustees amend its Investment Policy to revise the Fixed Income asset allocation range maximum for Michigan State University's Common Investment Fund ("CIF") by replacing Table No. 2 to Exhibit A of the Board's Investment Policy with the following: Major Asset Class ] 9 F U.S. Equity Global ex U.S. Equity (includes emerging markets) Inflation Hedge (real estate & natural resources) Non-Marketable Investments (includes distressed, private equity and venture capital) Absolute Return Fixed Income Table No. 2 Asset Allocation Target 19.0% Range 14.p/o-24.0% 19.0% 14.0%-24.0% Rationale Maximize real returns Maximize real returns & diversification 10.0% 7.5% - 12.5% Inflation hedge &diversification 12.0% 7.0% - 17.0% 25.0% 15.0°/o 20.0% - 30.0% 10.0% - 25.0% Higher returns than common stock & diversification Low volatility & low correlation with equities Deflation hedge &diversification ~ i ~ h i ~ ~ ~ ~ t ~ t ~ ~ ~ i ~ ~ ~ ~ i t ~ 4 1 2 ~ ~ i n i s t r a t i o n ~ u i l d i n g Adminis6ation concur, that both the recent and anticipated future market conditions BACKGROUND Cambridge Associates advises, and the Investment Advisory Subcommittee and warrant greater flexibility in investment strategy for the CIF. The recommended asset allocation range change to achieve this is shown below. Major Asset Class Fixed Income / I 1 Target 15.0% I I Table No. 2 Asset Allocation Range ~i 10.0% - 25.0% 1 Deflation hedge &diversification 1 1 Rationale MSU tr an aMmbveachm wl o~porunlry WOYW cc: D. Brower, N. Carter, G. Klein, K. Lindahl OFFICE OF THE VICE PRESIDENT AND OPERATIONS AND TREASURER Fred L. Poslon vce Resident East Lansing. MI 48824.1046 ,17,s5,14 FAX: 51713536772 I REVISIONS T O T H E MSU PROCEDURES CONCERNING ALLEGATIONS O F MISCONDUCT IN RESEARCH AND CREATIVE ACTIVITIES. April 2009 Article XIV of the Procedures describes the process for revisions: University Graduate Council (UGC) is responsible for recommending revisions as needed. UGC recommends revisions to the Academic Council. If approved by Academic Council, the recommended changes a r e forwarded t o the President for transmission to the Board of Trustees for final consideration and approval. UGC members worked with the University Intellectual Integrity Officer, Dr. James Pivarnik, as well as members of the Office of the General Counsel, and the Vice President for Research and Graduate Studies, Dr. Jan Gray, and members of his staff over the course o f h v o years (2007-08 and 2008-09) to update and revise the MSU procedures. The catalyst for the revisions was the changed federal definition of misconduct that was adopted by federal funding agencies in 2004. UGC members voted unanimousLy to accept the revisions a t their February 23,2009 meeting. Summary of major changes to Procedures Concerning Allegations of Misconduct in Research and Creative Activities I. Definitions "Bad Faith" Section I.- definition has been altered to connect it to Good Faith. Definition was also expanded to include Review Panel member, Inquiry Panel member, lnvestigative Committee member, Responsible Administrator and RIO. "Good Faith" has been added to definitions. "Conflict of Interest" -definition expanded to include RIO, VPRGS, and President "Misconduct - Retaliation, Bad Faith, and Serious or Continuing Noncompliance with regulations have been removed. Definition altered a bit related to Creative Activities "Research Integrity Officer" -name change from University Intellectual Integrity Officer "Retaliation" - expanded to include Review Panel member, Inquiry Panel member, lnvestigative Committee member, Counsel, Advisor, Responsible Administrator and RIO. 11. General c. Integrity of Procedures - Definition was altered to connect it to Good Faith. Definition was also expanded to include VPRGS in the review of any complaint or report that a member of and Inquiry Panel, lnvestigative Committee, Review Panel, Responsible Administrator or RIO did not act in Good Faith. Appeals of Findings of Bad Faith -removed. 111. Role of the RIO Expanded -paragraphs 5-7. VI. Allegations of Misconduct and Preliminary Assessments g. Bad Faith - finding of Bad Faith will be referred for administrative review, VIII. Investigation e. and k.(2) Standard for Determination - "To conclude that Misconduct occurred, a majority ofthe members of the lnvestigative Committee must find: 1) a significant departure from accepted practices of the relevant research community; and 2) that the Misconduct was committed intentionally, knowingly, or recklessly; and 3) that the Allegation was proven by a Preponderance of the Evidence." IX. Appeal Right. - can no longer Appeal Unacceptable Research Practices, or Questionable Research Practices. X. Final Resolution and Outcome b. (2) Disciplinary Action -removed "up to and including the termination of employment of faculty and staff and the dismissal of students". Added "pursuant to applicable University policies, procedures, and contracts, including procedures for challenging or grieving disciplinary action." Added section X.b.(3) "Degree Revocation" Added X.b. (5) "Serious Deviation" XI. Unacceptable and Questionable Research Practices Referral from Proceedings-changed from "referred to the Responsible Administrator for review and further appropriate action" to referred to the appropriate administrator for review and such further action, if any, as the administrator may deem appropriate, including, in the case of URP, disciplinary action pursuant to applicable University policies, procedures, and contracts, including procedures for challenging or grieving disciplinary action." XII. Bad Faith This new section lays out how Bad Faith Allegations will be handled by the University XIII. Protecting Participants in Misconduct Proceedings This new section lays out how Bad Faith allegations will be handled by the University OUTSIDE SPEAKERS SPONSORED BY REGISTERED STUDENT ORGANIZATIONS I. PREAMBLE Michigan State University is committed to the principles of free speech and free expression embodied in the IS' Amendment to the Constitution of the United States. Freedom of speech is central to academic freedom and the related notion that a university should be an open marketplace for the exchange of ideas. The University also has a long-standing commitment to the principles of freedom of inquiry and freedom of dissent. These freedoms are vital to a robust intellectual exchange and the pursuit of knowledge. Different and competing views expressed as part of this exchange may cause discomfort or even offend members of the campus community. The University does not, for these reasons, impose restraints on speech, including the speech of outside speakers. The University will respond to situations involving disruption of University activities, violence, or other illegal activity which result from the remarks of outside speakers and to comments or actions by outside speakers which are themselves illegal. 11. POLICY Registered student organizations may sponsor a group or individual to speak on campus, subject to the following provisions: A. A student organization which has been properly registered under University policies must sponsor the speaker. B. Public announcements concerning the speaker must contain statements that clearly and accurately identify the speaker, the sponsoring organization, the subject of the speech, and whether admission to the event at which the speech will occur is restricted to members of the organization or open to the University community or the general public. C. During the speech, the speaker must not violate any law (including any University ordinance) or incite the audience to take action which is illegal. D. Adequate time must be provided for questions and answers at the conclusion of the speaker's remarks for all events open to the University community or the general public. E. The University reserves the right to regulate the time, place, and manner of any speech sponsored by a registered student organization under this Policy to prevent interference with other University activities and to ensure that the event complies with applicable safety and security requirements, such as occupancy limitations and maintaining access to or egress from buildings in the event of fire or another emergency. It is the responsibility of the sponsoring organization to inform its speaker of these provisions. 111. PROCEDURES The Vice President for Student Affairs and Services shall develop procedures consistent with this Policy for registered student organizations to sponsor outside speakers. IV. OTHER POLICIES Events under this Policy are subject to other University policies, including, without being limited to, Ordinance 15.00 Disorderly Assemblages or conduct' and the All-University Policyfbr Use of Michigan State University Facilities and Services. V. QUESTIONS 1 COMPLAINTS Questions regarding this Policy should be directed to the Vice President for Student Affairs and Services. Complaints alleging that a registered student organization has violated this Policy should be filed pursuant to the Registered Student Organizations student group regulation or the Academic Freedom Report for ~ t u d e n t s . ~ A registered student organization found to be in violation of this Policy is subject to the possible sanctions set forth in those documents. Complaints alleging that a speaker has violated this Policy should be filed with the Vice President for Student Affairs and Services. An outside speaker who violates this Policy may be restricted from speaking at future events on campus. Complaints of unlawful activity should be filed with the MSU Police Deparhnent VI. HISTORY This Policy was approved by the Board of T ~ s t e e s on December 14, 1962 and revised on June 19,2009. 'The MSU Police Department follows its Dissent and Disruption protocol when responding to disruptions at campus events involving outside speakers. z Complaints involving outside speakers sponsored by individuals or groups other than registered student organizations are processed by the unit administrator who has oversight for the sponsoring individuallorganization. FACULTY GRIEVANCE POLICY I. POLICY STATEMENT This Policy is intended to provide a fair, internal process for resolving employment related disputes that arise between faculty or academic staff members and administrators. The formal procedures described in this Policy are intended to be used only when matters cannot be resolved informally. A faculty or academic staff member who feels aggrieved should first seek an informal resolution at the unit, department, or college level before filing a formal grievance under this Policy. The procedures contained in this Policy are not intended to be used to challenge the desirability of unit or University policies. 11. DEFINITIONS A. Grievance: A written complaint filed by a faculty or academic staff member against an administrator of the University alleging a violation of University, college, department, school, or unit policy or established practice. B. Faculty member: A person with a paid University appointment at the rank of professor, associate professor, assistant professor, or instructor, including those with fixed term and visiting status. C. Academic Staff: A person with a paid University appointment at the rank of academic specialist, lecturer, assistant instructor, research associate, or librarian, including those in a continuing appointment system and those with fixed term and visiting status. D. Administrator: A person appointed as the head of an administrative unit, school director, department chair, dean, or separately reporting director.' The President, the General Counsel and members of the General Counsel's staff, and the FGO are not subject to grievance under this Policy. E. Policy: A written statement of principles and procedures that govern the actions of faculty, academic staff, and administrators, including written rules, bylaws, procedures, or standards. F. Practice: Actions taken by the administrator within an administrative or academic unit based on customs or standards in that unit that are usually unwritten but of long-standing duration, and for whose existence the grievant can offer evidence. G. Violation: A breach, misinterpretation, or misapplication of existing policy or established practice. If a grievance is filed against the Provost individually, a hearing will be held pursuant to Section 111.1 of this Policy. The fmding(s) and recommendation(s) of the Hearing Panel will be forwarded to the President for decision instead of to the Provost. The President's decision will be final and not subject to appeal. 111. GRIEVANCE PROCEDURE A faculty or academic staff member may file a formal grievance against an administrator that alleges a violation of University, college, department, school, or unit policy or established practice. 2 A. INITIATION OF GRlEVANCE PROCEEDINGS A faculty /academic staff member who feels aggrieved may discuss hisiher complaint in a confidential conference with the Faculty Grievance Official ("FGO"). The FGO shall inform the faculty /academic staff member if the potential grievance falls under the jurisdiction of another University policy rather than this Policy. B. FILING A GRIEVANCE To file a grievance, an individual faculty or academic staff member must submit a written, signed statement (the "grievance") to the FGO within 28 days3 of the date that the grievant knew or should have known of the alleged vio~ation.~ The grievance must contain the following information: 1. the specific policy or established practice that has allegedly been violated; 2. the date of the alleged violation and the date on which the grievant became aware of the alleged violation; 3. the facts relevant to the alleged violation; 4. the person(s) against whom the grievance is filed (the "respondent"); and 5. the redress sought. 'This Policy and its grievance procedures may not be utilized by faculty or academic staff who are covered by a collective bargaining agreement. 3References to days in this document are to calendar days. If a deadline contained within this Policy falls on a weekend or University holiday, the deadline will be extended to the next business day on which the University is open for business. "The FGO may waive or extend the time limits specified in this Policy for good cause or by mutual agreement of the parties. "Good cause" includes, but is not limited to, circumstances outside of a party's control, such as illness, approved leave of absence, or extended travel for University business. Even with a showing of good cause, time limits will generally not be extended beyond an additional 28 days. The grievant must also submit any documents that are relevant to the FGO's initial jurisdictional findings pursuant to Section 1II.D of this Policy. C. THE RESPONDENT The FGO will provide a copy of the grievance and any documents submitted with the grievance to the respondent within three (3) days of receipt. The respondent shall submit any relevant documents concerning the FGO's initial jurisdictional findings to the FGO within seven (7) days of receipt of the grievance. D. JURISDICTIONAL & PROCEDURAL DECISIONS 1. The FGO shall determine whether the following jurisdictional requirements have been met within 14 days of the date that the grievance was filed. The FGO may also seek information from appropriate University office(s) to assist in making these jurisdictional determinations. a. Whether the grievant has standing under the Faculty Grievance Policy; b. Whether the grievance has been filed in a timely fashion; c. Whether the grievance identifies an appropriate respondent(s); d. Whether the grievance adequately identifies the existing policies and101 established practices alleged to have been violated;' e. Whether the grievance contains a reasonably adequate statement of the facts relevant to the complaint; and f. Whether any other jurisdictional issue(s) need to be decided in connection with the initiation of the grievance and, if so, an explanation of such issues. 2. The FGO shall inform the parties in writing if each jurisdictional requirement has been met, along with the names of any University offices consulted regarding the jurisdictional d e c i ~ i o n s . ~ If any jurisdictional requirement has not been met, the FGO shall dismiss the grievance. As part of the initial jurisdictional determination, the FGO shall determine whether the policy specified in the grievance applies to the named respondent. provided under this Policy will be delivered to the campus address for both the grievant 6 N ~ t i ~ e ~ and respondent unless either party notifies the Faculty Grievance Ofice in writing that an alternate address should be used. 3. Each party shall have the right to appeal the FGO's jurisdictional decisions by filing a written statement explaining the reason(s) for the appeal with the FGO within 14 days of the issuance of such decision. 4. If any party files an appeal of the FGO's jurisdictional decision(s), the FGO shall submit the written appeal, together with any written response to the appeal from the parties and a written response by the FGO, to a three-person jurisdictional appeals panel drawn by the FGO from the list of faculty and librarians eligible to serve as members of the University Hearing Board or University Appeals Board. (See Section 1II.H of this Policy.) The panel shall deliberate and submit to the FGO a written decision (including the basis for its decision) on the appeal within seven (7) days of its convening by the FGO. No faculty member or librarian may serve on more than one jurisdictional appeals panel in any period of seven consecutive years. 5. The FGO shall forward a copy of the jurisdictional appeals panel's decision to the parties within seven (7) days of its receipt from the panel. E. INFORMAL RESOLUTION 1. The FGO shall confer with the ~ a r t i e s and make everv reasonable effort to resolve the grievance informally as quickly as possible. Discussions regarding informal resolution are expected to be treated with confidentiality and may not be disclosed or referenced during any subsequent formal proceedings on the grievance. The FGO may recommend that the grievant drop the grievance because it lacks merit or for other just cause. Such a recommendation, however, shall not be binding on the grievant. 2. If the FGO determines that the grievance cannot be informally resolved, the FGO shall so notify the parties in writing. If the grievant wishes to pursue the grievance, the grievant must submit a written request for a formal hearing to the FGO within 14 days of such notice. Failure to submit such a request will constitute a waiver of the faculty member's right to pursue the grievance. F. AMENDMENTS A grievant may amend hisher grievance until 28 days before the scheduled date for the formal hearing on the grievance, as long as the proposed amendment concerns the same subject matter as the grievance. The FGO shall decide whether to accept the proposed amendment, and any jurisdictional issues generated by the proposed amendment, at least 21 days before the scheduled date for the formal hearing. Either party may challenge the FGO's decision by filing a written appeal with the FGO within seven (7) days of the FGO's decision. Such appeals are processed in the same manner as other jurisdictional appeals under Section III.D.4 of this Policy. Any procedural issues (such as submission of new documents) generated by the amendment shall be decided by the hearing panel at the beginning of the hearing. G. CONSOLIDATION OF GRIEVANCES If a grievant files two or more separate grievances against the same respondent(s) that raise related allegations or arise from a common set of facts, the FGO may consolidate such grievances into one grievance to be heard by a single panel. If a grievant files two or more separate grievances concerning different issues and the grievances are not consolidated, such grievances will normally be processed and heard sequentially in chronological order determined by the date on which the initial grievance was filed. Separate grievances filed by different grievants that involve related allegations or arise from a common set of facts may also be consolidated. H. GRIEVANCE PANEL COMPOSITION 1. A University Hearing Board and University Appeals Board shall be established from which hearing panels shall be selected.' 2. All faculty with appointment in the tenure system, librarians and other academic staff with appointment in a continuing appointment system, and full-time fixed-tern faculty who have served at least three consecutive years and are engaged in the academic activities of the University on a regular basis are eligible and expected to serve as members of the University Hearing Board or University Appeals ~ o a r d . ~ No faculty/academic staff member or librarian may serve on more than one hearing panel in any period of seven consecutive years. At the start of each academic year, the , Academic Human Resources Office will provide the FGO with a list of all faculty, academic staff, and librarians eligible to serve on these ~ o a r d s . ~ 3. A hearing uanel shall consist of five members of the Universitv Hearing Board or University Appeals Board, as appropriate, who are selected randomly by the FGO. Hearing panels shall serve throughout an entire proceeding. - A - 4. The FGO shall take necessary precautions to avoid any conflict of interest on the part of the hearing panel's members. No member of the hearing panel shall be from the same department(s) (or college in the case of non-departmental colleges) as the grievant or respondent. - T h e term "hearing panel" in this section is used to refer to either the initial grievance hearing panel or any subsequent appeals hearing panel. % faculty member or librarian who also holds an appointment as an Administrator is not eligible to serve as a presiding officer or as a member of the University Hearing Board or University Appeals Board. 9Faculty/librarians who are on a sabbatical or other approved leave of absence are excused from service on the University Hearing Board and University Appeals Board for the duration of the leave. 5. A hearing panel selected for a grievance involving the denial of reappointment or tenure in the tenure system shall be comprised solely of tenured faculty members. A hearing panel selected for a grievance involving the denial of promotion to full professor shall be comprised solely of tenured faculty who hold the rank of full professor. 6. Each hearing panel shall have a Presiding Officer selected by the FGO from a list established by the UCFA. The Presiding Officer shall have voice but not be a voting member of the hearing panel. The Presiding Officer shall apply the rules of procedure consistent with the guidelines stated in Section 111.1 of this Policy. 7. The FGO shall notify each party of the names of the Presiding Officer and five members of the hearing panel. Within seven (7) days of that notice, either party may submit a written challenge to the presiding officer or any member of the hearing panel for cause. The challenge must explain the cause for removing the Presiding Officer or hearing panel member. The Presiding Officer shall determine if there is cause to dismiss the challenged member of the hearing panel and select another member.")." In addition, each party shall have two peremptory challenges. The FGO shall notify the parties of any replacement Presiding Officer or members of the hearing panel. Either party may submit a challenge for cause to any replacement Presiding Officer or member of the hearing panel to the FGO within three (3) days of that notice. 8. If a hearing panel loses two or more of its members during the course of a hearing, the hearing shall be terminated, and a new panel selected. I. GRIEVANCE HEARINGS: PROCEDURES 1. Hearings shall be scheduled as expeditiously as possible and with due regard for the schedule of both parties. Grievances involving facultylacademic staff who hold academic year (AY) appointments will normally not be held during summer semester unless the faculty/academic staff member has a summer appointment. On the rare occasion when a party fails to respond to repeated attempts to schedule a hearing or unreasonably delays the scheduling of a hearing, the Faculty Grievance Office will schedule the hearing for the first date available to the panel members and the other Party. 2. The FGO shall convene the hearing panel and shall be present during all formal proceedings. The FGO shall provide written notice of the time and place of the ' T h e standard the Presiding Officer shall follow in ruling on challenges is whether, in light of the challenged person's knowledge of the case or personal or professional relationships with a party, the challenged person would be able to fairly and impartially hear the case and to render a fair and impartial judgment. " If the challenge is to the Presiding Officer, the challenge shall be decided by the FGO. hearing, the names of counsel, the names of any witnesses, and copies of any documents submitted by the parties and deemed relevant by the FGO, to each party at least seven (7) days before the hearing. 3. The hearing shall be conducted in good faith and must he completed within 14 calendar days unless the FGO determines that an extension of time is necessary 4. All hearings shall be recorded. A party may request and obtain a copy of the recording from the FGO. 5. Hearings shall be closed unless the parties agree otherwise 6. The privacy of confidential records used in the hearing shall be respected. 7. All parties may present their cases in person and may call witnesses on their behalf. The names of witnesses must be provided to the FGO at least seven (7) days prior to the hearing date. 8. A party may elect not to appear, in which event the hearing will he held in his or her absence. Absence of a party shall not be prejudicial to the case. 9. All parties are entitled to counsel of their choice. The name of counsel must he provided to the FGO at least seven (7) days prior to the hearing date. 10. Any party or counsel shall be entitled to ask pertinent questions of any witness or the other party at appropriate points in hearings. The Presiding Officer shall determine what questions are pertinent. 11. The grievant bears the burden of proving that there has been a violation of policy or established practice. A hearing panel shall decide whether the preponderance of the evidence supports the allegations made by the grievant.'2 12. Hearing panels shall resolve any procedural issues raised by the parties, after providing each party the opportunity to be heard on such matters. However, neither party may challenge the FGO's initial jurisdictional fmdings made pursuant to Section 1II.D of this Policy. The FGO shall distribute all documents submitted by the parties concerning procedural issues to the hearing panel, and shall include such documents in the grievance record. ""Preponderance of the evidence" means that the existence of the fact in issue is more probable than not. The "preponderance" of the evidence standard would be met where the members of the hearing panel find that the evidence supporting at least one of the allegations in the grievance is more convincing than the opposing evidence. 13. Hearing panels may consider evidence submitted by the parties concerning the relative credentials of other faculty members in determining the merit of grievances involving salary, appointment, re-appointment, or promotion. 14. Hearing panels shall report their findings and recommendations in writing within 21 days of the completion of the hearing to the FGO, who shall forward them to the grievant, the respondent, their counsel, the Provost, or the President, as appropriate, and to the administrator who is the respondent's immediate supervisor. The hearing panel's report is advisory to the Provost and does not bind the Provost to a particular decision. 15. When a hearing panel sustains an allegation made in a grievahce, it shall recommend appropriate redress consistent with existing policies, procedures, and practices. 16. The Provost shall decide the grievance, in writing, within 28 days of receipt of the hearing panel's findings and recommendations.13 17. All parties shall be notified in writing of their right to appeal by the FGO when a copy of any decision is forwarded to the parties. IV. APPEALS A. Initiation of and Conduct of Appeals Hearings 1. The decision of the Provost in response to the findings and recommendations of the initial hearing panel may be appealed to the University Appeals Board. Appeals must allege either that there has been a prejudicial violation of the procedures established for the conduct of the initial hearing, andlor that the decision of the Provost is not consistent with the preponderance of the evidence presented at the initial hearing. 2. A written appeal must be filed with the FGO within 28 days of receipt of the decision of the Provost. Failure to appeal within the prescribed time shall be deemed acceptance of the Provost's decision. 3. If an appeal is filed, the Provost's decision on the grievance shall not be implemented, except insofar as it may subsequently be ratified by the President. B. Appeals Panel Procedures 1. The FGO shall convene an appeals panel and shall be present during its formal proceedings. The FGO shall provide written notice of the time and place of the hearing on the appeal to each party seven (7) days before the hearing. p~ l 3 The FGO shall forward the Provost's decision to the parties, their counsel, and the members of the hearing panel within three (3) days of its receipt. 2. Appeals shall be conducted expeditiously. 3. Appeals shall be decided upon the written appeal, any written response to the appeal, the record of the hearing, the Provost's decision, and the argument of the parties presented to the appeals panel. The parties may not submit new information or evidence unless the informationlevidence is relevant to the appeal and was previously unavailable to the party although the party acted with due diligence to obtain such evidence. 4. The appeals panels may recommend affirmation, reversal, or modification of the Provost's decision on the grievance. 5. The findings and recommendation of an appeals panel shall be forwarded to the FGO within 21 days of the completion of the hearing on the appeal. The FGO shall forward the findings and recommendations to the President and to the parties and their counsel within three (3) days of its receipt. 6. For stated cause, the President may return the findings and recommendations to the appropriate panel once for reconsideration. 7. The President shall decide the appeal within 28 days of receipt of the appeal panel's findings and recommendations. The FGO will forward a copy of the President's decision to the parties, their counsel, and the members of the appeals panel within three (3) days of its receipt. V. CONFIDENTIALITY All records and information related to grievance proceedings under this Policy (both formal and informal) shall be kept confidential to the degree permitted by law. The FGO, parties to the grievance, their counsel, and other relevant administrators and faculty (including witnesses, presiding officers, and panel members) shall respect the confidentiality of information and records and the privacy of all parties whose interests are affected by a grievance. VI. OTHER UNIVERSITY POLICIES A. This Policy does not preempt or replace the Anti-Discrimination Policy ("ADP) or the Anti-Discrimination Judicial Board. Any grievance alleging discrimination or harassment in violation of the ADP will be referred to the appropriate University office for investigation and determination regarding the claim of discrimination/harassment. The grievance will be held in abeyance pending investigation and determination of the discrimination/harassment claim. B. A grievant must promptly notify the FGO if he or she initiates litigation against the University while a grievance is pending. A grievant may not pursue a complaint under this Policy while litigating the same issue(s). A grievance filed under this Policy shall be held in abeyance by the FGO pending the conclusion of the litigation. C. Decisions and actions taken by an Institutional Review Board (IRB) and its Chairperson cannot be grieved under this Policy. However, disciplinary action imposed by an administrator on the basis of IRB action is grievable under this Policy. D. Decisions and actions taken under the Procedures Concerning Allegations of Misconduct in Research and Creative Activities, the Anti-Discrimination Policy, or the Faculty Conflict of Interest Policy cannot be grieved under this Policy. However, disciplinary action imposed by any administrator on the basis of a decision under one of these policies is grievable under this Policy. W. INDEMNIFICATION In accordance with the University's Indemnification Policy, indemnification shall be provided to the Faculty Grievance Official, members and presiding officers of hearing and appeals panels, and University faculty serving as unpaid, volunteer counsel for the parties to a grievance, in their roles as participants in a grievance. VIII. UNIVERSITY COMMITTEE ON FACULTY AFFAIRS A. The University Committee on Faculty Affairs (UCFA) serves as an advisory committee to the FGO regarding the University's faculty grievance process. B. The UCFA shall participate in the appointment, reappointment, and evaluation of the FGO, as described in the Appendix to this document. C. The UCFA shall periodically review the performance of the FGO according to the procedures set forth in the Appendix to this document. D. The UCFA shall have the responsibility to ensure that the procedures set forth in this document are h l l y implemented. IX. FACULTY GRIEVANCE OFFICIAL A. The FGO shall attempt to resolve grievances informally and without resort to formal hearings and to assure that all formal hearings are conducted in accordance with the procedures prescribed in this document. B. The FGO shall administer the grievance procedures as set forth in this document and shall advise the parties about appropriate procedures to follow. C. The FGO may request and shall have broad access to all relevant University information and records related to a pending or potential grievance, except those required to be kept confidential by law or contractual obligation. Upon request from the FGO, individuals or units should provide documents to the FGO in a form that protects the privacy and confidentiality of third parties. The FGO will share the documents with the grievantlpotential grievant if the FGO determines that the documents are relevant to the grievancefpotential grievance and that the grievantlpotential grievant has need of them for resolution of the grievance. D. Upon the request of either party, the FGO has the authority to request that appropriate individuals discontinue or postpone any action threatening irreparable harm to any party to a grievance pending final disposition of a grievance. E. The FGO shall not serve as advocate for any party to any grievance and may participate in a grievance proceeding only as FGO. F. The FGO may recommend to the UCFA changes in this Policy. G. The FGO shall report once a semester to the UCFA and once each academic year to the Academic Council, and shall sit as an ex officio member of the Academic Council. H. The FGO shall forward to the Chairperson of the UCFA a copy of all decisions of the Provost and President. The Chairperson of the UCFA may share the decisions with the members of UCFA. The Chairperson of UCFA and the members of UCFA shall maintain the confidentiality of the decisions. I. The FGO shall maintain records of all grievances. X. REVISION OF THIS POLICY A. Any faculty member or administrator may propose revisions to this Policy. B. All proposals for revision shall be submitted to the UCFA, which shall consider them and forward them to the Faculty Council. C. If approved by the Faculty Council, the proposal shall be submitted to the Academic Council. D. Proposed amendments and revisions approved by the Academic Council shall be forwarded to the President for action by the Board of Trustees and shall become effective upon Board approval. XI. HISTORY An Interim Faculty Grievance Procedure was approved by the Board of Trustees on May 19, 1972. A revised Faculty Grievance Procedure was approved by the Board of Trustees on April 5, 1991 and revised on June 28,2002 and August 16,2009. APPENDIX Appointment, Reappointment and Evaluation of the FGO I. Appointment of and Support of the FGO 1. UCFA shall prepare a list of candidates for presentation and discussion with the Provost and President. 2. Upon approval of the Provost, the President shall appoint the FGO for a term not to exceed five years. The President may reappoint the FGO for additional terms of up to five years each. 3. The FGO shall work with but be independent of the other administrative structures of the University in the pursuit of grievance dispute resolution. 4. The UCFA shall consult as necessary with the Provost and President concerning salary, budget, office, and staff for the FGO. 5. Whenever a vacancy occurs in the FGO position, the UCFA shall confer and recommend to the Provost and the President an individual to serve as Acting FGO. 11. Evaluation and Reappointment of the FGO 1. The UCFA shall annually evaluate the FGO pursuant to criteria established by the UCFA in consultation with the Provost and the President. 2. The UCFA shall discuss the evaluation with the FGO and shall forward its evaluation and a recommendation as to salary to the Provost and President. 3. The UCFA shall establish procedures for review.of the FGO's performance which shall be undertaken when reappointment of the FGO is under consideration. Such procedures shall involve input from individuals who have participated in grievances as grievants, respondents, their counsel, or hearing or appeals panel members or presiding officers. 4. If the FGO is a candidate for reappointment, the UCFA shall conduct a review of all of the FGO's years of service and submit a recommendation on the FGO's reappointment to the Provost and President. Ordinances 18.00 FIREARMS OR WEAPONS 18.01 Possession prohibited; exceptions 18.02 Use of chemicals prohibited 18.03 Use prohibited; exceptions 18.04 Not applicable to police officers 18.05 Relationship to University policy . O 1 Except as permitted by state law regulating firearms, no person shall possess any firearm or weapon anywhere upon property governed by the Board. Persons residing on property governed by the Board shall store any and all firearms and weapons with the Department of Police and Public Safetv. .02 No person shall possess any chemical, biological, radioactive, or other dangerous substance or compound, with the intent of using the same to injure, molest, o r coerce another, anywhere upon property governed by the Board. .03 The use of any firearm o r weapon is prohibited upon property governed by the Board except those areas specifically set aside and supervised a t range facilities, or as part of the regular education process, or as outlined in Ordinance 37.02 and its subsections. .04 This ordinance shall not apply t o Police Officers and other legally established law enforcement officers. .05 This ordinance does not alter the terms of any University policies that regulate the use or possession of firearms. Enacted: September 15, 1964 Amended: December 11, 1987 December 10, 1994 April 14, 1995 April 12, ZOO2 June 19. 2009 Diversitv and lnclusion at PSU Annual Proqress Report C Executive Summary Each year, a two-part narrative and data report is prepared by the Office for Inclusion and Intercultural lnitiatives at Michigan State University. This executive summary highlights a sample of activities that occurred between October 2007 and October 2008. The full report can be viewed at the Office for Inclusion and Intercultural lnitiatives web site at www.inclusion.rnsu.edu. INTRODUCTION A narrative report is published each year to reflect progress made through program initiatives engaged in by colleges and departments that support inclusion and diversity at Michigan State University. A data report is also published each year that includes student and workforce trend data organized by racelethnicity and gender categories. This executive summary highlights a sample of data and programs from a vast pool of information that was collected. Program information in the narrative section is categorized according to the five imperatives found in the "Boldness by Design" initiative. Boldness by Design The "Boldness by Designl'strategic positioning initiative serves as the university's plan that guides Michigan State University as it transforms to become the model land-grant university for the 21* Century. This initiative reaffirms MSU's core value of inclusion which is woven throughout the mission of the institution: Built on the foundation of our trodition, our land-grant volues, and Michigan State's historic and existing strengths, Boldness by Design is not a change of direction but o coll to focus on five imperatives: Enhancing the student experience Enriching community, economic, and family life Expanding internotianal reoch lncreosing research opportunities Strengtheningstewordship Founders Day Address, President Lou Anna Kimsey Simon, Februav 9,2006 At MSU we toke great pride in our diversity. Valuing inclusion means providing all who live, learn and work ot the university the opportunity to actively porticipote in a vibrant, intellectual community thot offers a broad ronge of ideas and perspectives .... Voluing inclusion benefits MSUscholors who advance knowledge by exploring the vast ronge of questions thot result from our differences .... Our commitment to inclusion meons we embrace access to success for 011 and treat 011 members of the extended MSU community with fairness ond dignity. Taken from President's Statement on Diversity and Inclusion This report was compiled and edited by the Office for Inclusion and Intercultural lnitiatives. Special thanks is extended to the following offices for their contributions t o the report: Office of the Provost, the Women's Resource Center, Planning and Budgets, Assistant Provost and Assistant Vice President for Academic Human Resources, Assistant Vice President for Human Resources, Vice President for Student Affairs and Services, Admissions and Scholarships. The full report can be viewed at the Office for lnclusion and Intercultural lnitiatives' web site - www.inclusion.msu.edu. FIRST TIME FALL ENROLLMENT The total first time fall enrollment of minority freshman for fall 2008 was 1,184, a decrease of 43 compared t o 2007. Minority freshman composed 16.1 percent of the freshman class. In other categories, total enrollment of minority undergraduate transfer students for fall 2008 was 189, an increase of 43 compared t o 2007. Total enrollment of minority graduate students for fall 2008 was 206 compared t o 180 for fall 2007. ii ~ r h A r r c a n Arncr~can - A,~an/Pac~f~c slander -. . . Native 568 370 1 . 605 345 2008 SC) 54 - - DOMESTIC TOTAL lnternational + Women k TOTAL ENROLLMENT There was a slight increase in overall minority student enrollment in fall 2008 and a slight decrease in enrollment for women during the same period, compared t o one year ago. Minority students represented 17.6 percent of the domesticstudent enrollment in fall 2008, and 53.9 percent of total students enrolled were women. International students represented 9.6 percent of the total students enrolled in fall 2008, an increase from 8.4 percent in 2007. American slander Native International UNIVERSITY T Men Women 'OTAL 4,509 46,648 21,519 25,129 3,869 46,045 21,189 24,856 46.1 53.9 46.0 54.0 rnational VERSIN T 1 BlacklAfrican American AsianIPacific Islander HispanicILatino American IndianlAlaska Native ITAL TOTAL MlNOf Whitelother DOMESTIC TC I International UNIVERSITY TOTAL Men Women 1 RETENTION and GRADUATION' Perct - 483 1 518 / 296 1 64 1,361 6,639 8,000 2,311 1 10,311 4,446 5,865 6.4 1 3.7 1 0.8 17.0 82.9 100.0 I 43.1 56.9 510 1 271 1 73 1,363 6,370 7,733 2,240 1 9,973 4,322 5,651 u.9 17.6 82.4 100.0 I 43.3 56.7 The overall first year persistence rates for undergraduate students (cohort of 2007) showed a slight decrease from the prior year (from 90.9 percent t o 90.8 percent, while the rate for minority students showed an increase (from 87.2 percent t o 89.6 percent). Individually, the rates for all minority groups increased from the prior year. The rate for Whitestudents showed a slight decrease. The 89.6 percent rate for minority students represents the highest since 1994. The overall six year graduation rates for undergraduate students (cohort of 2002) showed an increase from the prior year (75.0 percent compared to 74.3 percent). The 75.0 percent overall graduation rate represents an all- time high for the last 10 years. While a decrease from the year before, the 61.1 percent rate for minority students, (62.4 percent from 61.1 percent) as a group represents the third year that this rate has exceeded 60 percent. Individually, AsianIPacific Islanders, Hispanics and American IndianIAlaska Natives showed increases while Blacks and Chicanos showed slight declines over the prior year. The rate for White students showed an 1 In reading this report, please note that the ratesare dynamic, which means that the numbers can change from year to year. Page 3 of 10 increase. Our persistence and graduation rates (overall and by groups) continue t o be higher than the overall national rates at Division 1 NCAA colleges and universities while they continue t o fall within the mid-range for Big 10 schools. ACADEMIC HUMAN RESOURCES From October 2007 t o October 2008, the total academic human resources workforce, i.e., headcount, not FTE's, increased by 121 individuals, with a net increase of 59 women representing 43.4 percent of all academic human resources, and a net gain of 88 minorities-representing 23.1 percent of the total academic human resources workforce. The academic human resources workforce includes 106 self-identified individuals w i t h disabilities, including 50 tenure system faculty, 2 1 continuing academic staff, 15 fixed term academic staff and 20 fixed term faculty. 1 Black/Afr~can American AsianfPacific Islander - HispanicILatino American IndianIAlaska h TOTAL MINORITY White ALL TO1 Men I women - 'AL - - 306 1 683 149 3 1 1,169 3,883 5,052 2,858 2,194 1 6.1 1 13.5 2.9 0.6 23.1 76.9 - 612 140 3 1 1,081 3,850 4,931 2,796 0.6 21.9 78.1 During 2007-08, there were 136 new individuals appointed i n the tenure system, including 5 1 minorities (37.5 percent) and 6 1 women (44.9 percent). On a non-duplicate basis, 93 individuals, or 68.4 percent, of the total appointments in the tenure system were members of protected groups. This reflects a significant increase from 51.8 percent in 2006-07. Overall, the number of tenure system faculty increased from 1,975 to 2010, a net gain of 25 women and 29 minorities. 1 L ~ i a c k / ~ f r i c a n American AsianfPacific Islander HispanicfLatino American IndianJAlaska Native TOTAL MINORITY White ALL TOTAL Men I women 242 / 59 1 17 415 1,595 2,010 1,366 644 ( 4.8 1 12.0 1 2.9 1 0.8 20.6 79.3 67.9 32.0 1 214 1 56 1 17 386 1,589 1,975 1,356 619 1 5.0 1 10.8 2.8 0.9 19.5 80.5 68.7 31.3 1 The retention of minority and women tenure system faculty requires continued attention by the university given the relatively limited opportunity t o hire and the experience over the past several years in which hiring gains have been offset by a higher rate of resignation for women and minorities than for majority men. For 2007-08, the proportion of minorities who resigned was higher than their overall representation in the tenure system; while the proportion of women who resigned was lower than their overall representation in the tenure system. Efforts are underway for implementation in 2009-10 t o identify reasons for separations of early career faculty, including women and minorities, t o include the use of online faculty exit surveys, individual interviews and mentoring programs and through the NSF funded ADVANCE Grant: MSU Advancing Diversity through the Alignment of Policies and Practices (ADAPP) initiatives t o increase diversity in science, technology, engineering and mathematics disciplines. SUPPORT H U M A N RESOURCES During 2007-2008 the university experienced increases in the support staff workforce by 155 employees, including an increase of 72 women employees (64.3 percent of the workforce). While overall White support staff increased, the number of overall minority support staff remained at 932 (15.1 percent). Regular new hires decreased by 12 (2.0 percent) from 610 to 598. The number of self-identified employees with a disability decreased by 3 from 124 t o 121 (2.0 percent of the workforce). The support staff workforce consists of 129 (2.1 percent of the workforce) U.S. veterans, 94 (1.5 percent) Vietnam era veterans, 36 (0.6 percent) other eligible veterans, 5 (0.1 percent) disabled veterans and 2 (0.03 percent) recently separated veterans. I Native panicflatil erican lnd - TOTAL MINORIN White ALL TOTAL Men Women 2" 932 5,234 6,166 2,204 3,962 "." 15.1 84.8 35.7 64.3 - A 932 4,978 6,011 2,121 3,890 ". r 15.5 82.8 35.3 64.7 DIVERSIlY and INCLUSION INITIATIVES The following are examples of activities engaged in throughout the university community that support diversity and inclusion at MSU. Information is organized according t o the five strategic imperatives identified in the Boldness by Design initiative. Enhance t h e student experience b y continually improving t h e quality of academic programs and t h e value of an MSU degree for undergraduate and graduate students. "Community Partnerships, Civic Engagement, and Multicultural Teacher Education: Teaching for Social Justice through Service Learning," project in the College of Education aimed at improving the preparation of undergraduate teacher candidates t o work effectively with diverse learners through revising the service learning component of TE250, an early teacher preparation course. The Peace and Justice Project in the College of Arts and Letters is aimed at promoting undergraduate student interest in the Peace and Justice Specialization, particularly among minority students. The Students for Peace and Justice Club initiated a film discussion series and prepared papers for presentation at a national undergraduate conference at the University of Notre Dame. The American Sign Language (ASL) Communiw opened during fall semester 2008 in Snyder-Phillips Hall, which became the hub for many academic and cultural events that focus on deafness, welcoming and bringing together students who are deaf or hard of hearing with others across campus who use or study the language. The African Studies Center continued t o work with the Office of Study Abroad to increase opportunities for students from disadvantaged backgrounds to participate in study abroad programs in Africa. MSU received three (3) Fulbright-Hays Group Project Abroad awards t o sponsor first-generation, Pell Grant eligible students from across the U.S. t o participate in MSU semester programs in Senegal and South Africa. The Charles Drew Science Enrichment Laboratory in the College of Natural Science, which includes as a part of its mission increasing the representation of underrepresented minorities in the sciences, became an official Living-Learning Community built to increase cohesion of the freshman class cohort. Initiatives were also implemented t o repurpose an endowment to use as a catalyst along with alumni support t o build private sector support for research scholarships for juniors and seniors. The Institute o f Agricultural Technology (IAT), in the College of Agriculture and Natural Resources, arranged an agreement with Lansing Community College, t o offer its students in specific programs the opportunity to enroll in one of the specified IAT programs and earn a Certificate from IAT and an associate's degree from LCC. IAT will transfer in the general education credits from LCC as part of the credits for awarding the certificate. Given the fairly large number of minority students at LCC, the agreement could increase the current 8 percent enrollment of minority students in IAT. Retention, Engagement, Academics, and Performance Program (REAP, College of Agriculture and Natural Resources) was implemented in 2008 to offer CANR undergraduate students with a GPA less than 2.0 additional assistance towards graduation. At the end of spring semester 2008, 80 percent of the participating students earned a semester GPA greater than 2.0, seven of which earned 2.5 and 3 earned 3.0. . Disability in a Diverse Society, sponsored by International Studies and Programs, is a model study abroad opportunity for students with disabilities and those interested in the area that has led t o increase the participation of students in study abroad. Page 6 of 10 The College of Music and the Wharton Center co-funded the commission and world premiere of "Serenade: To Hearts Which Near Each Other Move for Symphony Orchestra and Chorus" by Adolphus Hailstork, an MSU graduate and one of the most prominent African-American composers in the United States. Faculty and Organizational Development hosted several workshops whose themes were diversity and inclusion: "Students Speak: Lesbian, Gay ond Transgender Students a t MSU" which consisted of a panel of MSU experts to gauge the degree to which MSU classrooms are inclusive, and MSU as a place that welcomes all students, regardless of their sexual orientation. "InterculturalComplexityandSensitivity: Taking Seriously the Perspectives of Others,"focused on what is required for faculty and students to integrate multiple capacities: empathy, sensitivity, tolerance of ambiguity, awareness of self, awareness of others and cognitive complexity. This sessions explored how these capacities are related, and utilized student interview data that demonstrated levels of maturity and development, and national and international data on student attitudes toward "others who are different." ASMSU Student Assembly passed bill 644-66 that addressed the controversy of Free Speech and resolved Student Assembly t o actively pursue a workshop on Hate Speech and Free Speech in the MSU community. A diverse group of potential peer educators interested in being trained to facilitate workshops offered in the residence halls were recruited by the Sexual Assault and Relationship Violence Program. The training workshops were designed t o increase cultural competence, build bridges between diverse peer educators while also preparing them for interactions with students from diverse socio-economic backgrounds, cultures and sexuallgender orientation. International Volunteer Action Corps (IVAC), in the office for the Assistant Provost for Academic Student Services and Multicultural Issues, created bridges between international and domestic students t o build meaningful relationships across cultures, and engage in a variety of program strategies for this purpose. MSU students participated in several projects and programs that were sponsored by IVAC during the report year: service projects at the Refugee Development Center, Woldumar Nature Center and YouthVille Center in Detroit. "Student Parents on a Mission" sponsored by the Family Resource Center in collaboration with Spartan Child Development Center continued programming support for students with children to enhance retention and graduation of student parents. University Outreach and Engagement's Center for Community and Economic Development, supported graduate and undergraduate students in community and economic development projects. The Community Evoluotion Research Center has developed a graduate training program to build student skills in areas of program evaluation and community collaboration. CERC will support this work, particularly in communities with diverse and low-income populations. Campus Planning and Administration leads the university's efforts t o select and place public art throughout the campus that is created by a variety of internationally acclaimed artisans from different cultural backgrounds. English and Braille signage have been installed under the public art to accommodate a diverse population of individuals. Enrich Community, Economic and Family Life through research, outreoch, engagement, entrepreneurship, innovation and diversity. University Outreach and Engagement engaged in a variety of campus community partnerships. Wiba Anung (Early Star) is a four-year research partnership between the MSU UOE and Native American Institute, the Michigan Inter-Tribal Council, Grand Traverse Band of Ottawa and Chippewa Indians and Sault Ste. Marie Tribe of Chippewa Indians and Bay Mill Community College, aiming t o improve educational and social outcomes for young children in tribal Head Start and Early Head Start programs. Promoting Academic Success (PAS) is a four- year research partnership of MSU, Lansing School District and Capital Area Community Services Head Start that aims to improve educational and social outcomes for boys of color. The Communiw Evaluation and Research Center is evaluating the "Building the Safety Net" (BSN) Project to document the extent t o which it has met its capacity-building goals. The BSN project targets six Domestic Violence and Sexual Assault service agencies in Detroit, trying to expand culturally responsive DVSA services for Arab-American, Asian-American and Latino populations to improve the organizational structures of agencies and build a network with other human services providers. EldercarelAging and Parenting Education Series are provided by the Family Resource Center in support of MSU family caregivers and MSU employees with children. University Services completed a natural gas contract with Charlevoix Energy Trading (American Indian business) providing supply opportunities on a regular basis to the Power Plant. The Kellogg Hotel and Conference Center hosted the "Empty Plate" dinner to raise funds for the Greatel Lansing Food Bank. Expand International Reach through academic, research, and economic development initiatives and global, national, and local strategic alliances. Education for Global Citizenship (EGC) in the College of Education is a bilingual, bi-cultural and dual pedagogy program that incorporates the best educational practices of both the East and the West t o help students become fluent in the languages and cultures of both China and the United States. . Libraries collaborated with Humphrey Scholars, international Fulbright Scholars, visitors from the premier science high school in Shiga. Japan, and a "reverse" study abroad program through the English Language Center that were mostly undergraduate women from Dubai. Tours were conducted in Mandarin and English and a script has been developed for a Mandarin audio tour of the Libraries produced in 2008. The Residential College in the Arts and Humanities hired tenure stream and fixed term faculty with teaching and research expertise in areas, including Chicano/Latino Studies, Asian-American and Asian Studies, African American and African Studies, African and American Indian Ethnomusicology and Francophone Literature. University Housing and the Department o f Residence Life collaborated with the Office o f International Students and Scholars t o ensure that incoming international students were greeted and welcomed t o MSU in a supportive fashion. Strengthen Stewardship by appreciating and nurturing the university'sfinancial assets, campus infrastructure, and people for optimal effectiveness today and tomorrow. Michigan State University was awarded a five-year, $3.98 million ADVANCE grant from the National Science Foundation t o increase the representation and advancement of women in academic science and engineering careers. A key strategic goal of the NSF is to cultivate a world-class, broadly inclusive science and engineering work force, in part through "Increasing the Participation and Advancement of Women in Academic Science and Engineering Careers" program, also known as ADVANCE. MSU's ADVANCE project, titled "Advancing Diversity through Alignment of Policies and Practices (ADAPP)," is designed to attract, retain and promote the best possible faculty by improving the campus environment for all people. The Honors College created two new scholarships t o attract and retain a diverse population of students. Honors Enrichment Scholarships are intended for students who earned a 3.5 grade point average in their first semester at MSU and have been a part of campus academic enrichment programs, i.e., College Achievement Admissions Program, Aanii, the Charles Drew Science Enrichment Laboratory, the Summer Business Institute, Vetward Bound or the College Assistance Migrant Program. Diversity Leadership Awards was designed t o recognize students who are advancing the ideals of inclusion through their academic or co-curricular work. Facultyand Organizational Development sponsored a "needs and challenges" study of mid-career faculty and their chairs to examine whether they experienced special challenges relative t o racelethnicity, gender, sexual orientation and age. The study received the Robert F. Menges Award for Outstonding Research in Faculty Development by the Professional and Organizational Development Network in Higher Education. . The Division of Housing and Food Services expanded the Green Cleaning Program and initiatives throughout the division. This initiative included purchasing cleaning products and equipment that met applicable certifications, coupled with improved cleaning procedures. "Project Bloom" in cooperation with the MSU Extension Lenawee County4-H program and the Lenawee Intermediate School District, engaged children and young adults with different abilities through horticulture therapy. Horticulture therapy, barrier-free environments and therapeuticgardens are created for working, learning and relaxation. Transportation Services (Physical Plant) introduced electric vehicles for general and service type transportation needs on campus. for Inclusion and Intercultural Initiatives, in collaboration with the Theatre Department, launched a The Office new initiative, "Transforming Theotre Ensemble", which is an interactive theatre group that uses drama t o explore multicultural dimensions of teaching, learning and working in a diverse environment. Performances are designed for faculty, administrators, students and staff to initiate dialogue about and to promote awareness and understanding of diversity and inclusion. A new diversity education and development certificate series entitled, "Building Blocks for Diversity," was designed by the Office for Inclusion and Intercultural lnitiatives and offered to MSU employees through Human Resources Development. This three-part series provides participants the opportunity t o explore their individual attitudes and biases toward diversity and inclusion, and better understand the connection between bias and workplace productivity. Michigan State University is committed t o facilitating access to university instruction, communication, research, and business processes, while enhancing community building for the broadest possible audience. It is this commitment that led t o the new MSU policy on Web accessibility, which was announced on July 1,2008 and effective May 15,2009. Unless granted an exception, the policy on Web accessibility applies t o all university Web pages used to conduct core university business or academic activities. The Office for Inclusion and Intercultural lnitiatives created the Intercultural Education Network (IEN) t o bring together faculty and staff members whose job responsibilities include designing, coordinating and implementing education and development opportunities relative to diversity and inclusion. The IEN collaborativeiy examines educational efforts that are intended to support inclusion at MSU and enhance cross- cultural understanding. The expectation of IEN is to enable members t o gain awareness of the various educational programming activities offered across the university; evaluate tools designed t o measure the effectiveness of intercultural education programs; and t o share an understanding of the goals, outcomes and impact of these efforts within the MSU community. MICtIIGAN STATE ' E R S I T Y U T I \ Party: License: LICENSE AGREEMENT T E R M SHEET Biophotonic Solutions, Inc. Amendment to exclusive license agreements effective June 30,2004 and December 29, 2006 to use the additional technologies in all fields described below for commercial purposes. Term: Extending to the expiration of the last to expire of the patents Technology: MSU Invention Disclosure No. 00086 "Optimal Laser Desorption and Ionization Source for Mass Spectrometry;" MSU ID TEC2004-0052 "Binary Laser Pulse Shaping;" MSU ID TEC2004-0114 "Nonlinear Optical Identification Tagging and Subsurface Scanning Reader;" MSU ID TEC2005-0041 "Methods for Systemic Delivery of Low-Level Laser Radiation;" MSU ID TEC2005-0056 "Laser Selective Excitation;" MSU ID TEC2005-0099 "Femtosecond Laser Output Optimization; " MSU ID TEC2006-0013 "Two-Photon Detection of Cancer at the Molecular Level;" MSU ID TEC2006-0014 "Novel Pulse Stretcher for Chirped Pulse Amplification;" MSU ID TEC2006- 0043 "Laser-Based Identification of Stereoisomers;" MSU ID TEC2006-0055 "Laser Source for Material Processing;" MSU ID TEC2006-0091 "Laser and Environmental Monitoring System; " MSU ID TEC2006-0092 "Control System and Apparatus for Use with Ultra-Fast Laser-MIPPS Software;" TEC2006-0094 "Phase Characterization and Correction for Ultrashort Pulses;" MSU ID TEC2006-0139 "Control of Plasmonic Waveguiding;" MSU ID TEC2006-0140 "Microscope for Molecular Imaging;" MSU ID TEC2007-0029 "Dispersion Compensation for Lasers;" MSU ID TEC2008-0028 "Direct Measurement of Spectral Phase for Ultrashort Laser Pulses;" MSU ID TEC2009-0032 "Laser Based Method for Pathogen Detection;" MSU ID TEC2009-0033 "Autocorrelation Laser Pulse Measurement Using Phase Modulator;" MSU ID TEC2009-0034 " Autocorrelation Laser Pulse Measurement Using Phase Modulator with Novel Programming Function;" MSU ID TEC2009-0045 "Ultrafast Protein Activation;" MSU ID TEC2009-0076 "Pulse Compression Method;" and any continuation, continuation-in-part, and divisional patent applications and issued patents derived from any of the foregoing. Technology's Potential Commercial Utilization: Scientific, clinical, and industrial instrumentation; communications; homeland security; and laser devices Payment Terms: Payment of $1,000 upon signing; a running royalty ranging from 3.0% to 5%; and 33% on sublicensing revenue. The agreement will include revised annual minimums. Use of University FacilitieslServices/Personnel: No University facilities, services, or personnel will be utilized by Biopbotonic Solutions, Inc. under the terms of the License Agreement. Organization Type: Michigan-based small business Personnel Interest: Dr. Marcos Dantus, a Professor in the Department of Chemistry, and his immediate family own or have an option to buy an equity interest of more than 1% of the company. Dr. Dantus is also an officer in Biophotonic Solutions, Inc. A p p e n d i x K LICENSE AGREEMENT TERM SHEET Party: KTM Industries, Inc License: Amendment to an Exclusive License effective March 3 1,2004 to use the additional technologies described below for commercial purposes Term: Extending to the expiration of the last to expire of the Patents Technology: MSU Invention Disclosure No. 02075 "Engineered Starch Foams with Enhanced Water Resistance, Flexibility, and Cushioning Properties;" MSU ID 02078 "Extruded Starch Foam as an Insulation Material;" MSU ID 02079 "Biodegradable Additives for Manufacturing Non Brittle Foamed Starch Sheets;" MSU ID 0208 1 "Improved Processing Method for the Production of Less Dense and More Flexible Foamed Starch Packaging Sheets;" MSU ID 03013 "Water Resistant Natural Polymer Coatings for Soluble Foamed Starch Materials;" and MSU ID TEC2005-0012 "Amphiphilic Starch-Polyester Biodegradable Graft Copolymers, the Method of Preparation thereof, and Its Use in Water Resistant Starch Foams" as described and claimed in the Patents and Improvements thereto. Technology's Potential Commercial Utilization: Foam toys and packaging materials Payment Terms: Initial fee of $10,000 for additional technology. Additional technology will carry the same payment terms as in the original license agreement. The agreement will include revised annual minimums. Use of University FacilitieslServices/Personnel: No University facilities, services, or personnel will be utilized by KTM Industries, Inc. under the terms of the license agreement. Organization Type: Michigan-based small business Personnel Interest: Dr. Ramani Narayan, a Professor in the Department of Chemical Engineering & Material Sciences, and Dr. Marcos Dantus, a Professor in the Department of Chemistry, each owns or has an option to buy an equity interest of more than 1% of the company. Dr. Narayan is a director and Dr. Dantus is an officer of KTM Industries, Inc. Appendix L LICENSE AGREEMENT TERM SHEET Party: License: Bio Plastics and Polymers, LLC Amendment to an Exclusive License effective March 31,2004 to use the additional technologies described below for commercial purposes. Term: Extending to the expiration of the last to expire of the Patents Technology: MSU Invention Disclosure No. 95002 "Reactive Extrusion Polymerization and Grafting of E-Caprolactone in the Presence of Starch;" MSU ID 94080 "Biodegradable Compositions Based on Reactive Blends of Starch and Aliphatic Polyesters;" MSU ID 04014 "Vegetable Oil Based Esters Using Ozone Mediated Chemistry;" MSU ID 04132: "Bulk Reactive Extrusion Polymerization of 1,4-Dioxan-2-One Producing Thermal Stabilized 1,4 Dioxan-2-One (Co)polymers;" MSU ID 04136 "Biodegradable Inorganic Filled Thermoplastic Polyester Composites and a Process of Manufacture Using Reactive Extrusion Processing;" MSU ID 06080 "Improved Biodiesel Additive and Method of Preparation Thereof;" MSU ID 08026 "Biodegradable Thermoplasticized Starch-Polyester Reactive Blends for Thermoforming Applications;" MSU ID TEC2009- 0007 "Moisture Curable Natural Oil and Fat Compositions and Preparation Thereof;" MSU ID TEC2009-0061 "Compatible Blends of Polylactic Acid and Polyhutylene Adipate Co- Terephthlate for Blown Film Applications" as described and claimed in the Patents and Improvements thereto. Technology's Potential Commercial Utilization: Environmentally friendly polymers Payment Terms: Initial fee of $70,000 for additional technology. Additional technology will carry the same payment terms as in the original agreement. The agreement will include revised annual minimums. No University facilities, services, or personnel will be utilized by Bio Plastics and Polymers, LLC under the contemplated agreement. Organization Type: Michigan limited liability company based in Okemos Personnel Interest: Dr. Ramani Narayan, a Professor in the Department of -I.--:--, T!--:---:-- 0. nr-*-..:-,- 0 - : ----- - - A I.:- Appendi:: M Party: License: LICENSE AGREEMENT TERM SHEET Biopolymer Innovations, LLC Amendment to an Exclusive License effective March 3 1,2004 to use the additional technologies described below for commercial purposes. Term: Extending to the expiration of the last to expire of the Patents Technology: MSU Invention Disclosure No. 03042 "Engineered Cellulose and Starch Carboxylates for Ocular Drug Delivery;" TEC2008- 0040 "Novel starch copolymer compositions for ocular drug delivery systems;" and MSU ID No. TEC2008-0041 "Novel starch copolymer compositions for ocular lubricant" as described and claimed in the Patents and Improvements thereto. Technology's Potential Commercial Utilization: Ocular drug delivery Payment Terms: Initial fee of $10,000 for additional technology. Additional technology will carry the same payment terns as in the original agreement, namely one percent (1%) running royalty on sales, 25% on all sublicensing revenues, and legal reimbursements for the term of the agreement. The agreement will include revised annual minimums. Use of University Facilities/ServiceslPersonnel: No University facilities, services, or personnel will be utilized by Biopolymer Innovations, LLC under the contemplated agreement. Organization Type: Michigan limited liability company based in Okemos Personnel Interest: Dr. Ramani Narayan, a Professor in the Department of Chemical Engineering & Material Sciences, and his immediate family own or have options to buy an equity interest of more than 1% of the company. Dr. Narayan is also an officer of Biopolymer Innovations, LLC. Appendix N LICENSE AGREEMENT TERM SHEET Party: License: Term: Technology: Claytec, Inc. Exclusive license for commercial purposes Ending at the expiration of the last to expire patent MSU Invention Disclosure No. TEC2007-0088, entitled "Mesoporous Metal Oxide - Polymer Mesocomposites," and any continuation, continuation-in-part, and divisional patent applications and issued patents derived from any of the foregoing. Technology's Potential Commercial Utilization: Mesostructures-based materials Payment Terms: Payment of $1,000 upon signing; a running royalty ranging from 3.0% to 4.0%. The agreement includes annual minimums and commercialization milestones. Use of University Facilities/Services/Personnel: No University facilities, services, or personnel will be utilized by Claytec, Inc. under the terms of the License Agreement. Organization Type: Incorporated Michigan-based small business Personnel Interest: Dr. Thomas J. Pinnavaia, a Professor in the Department of Chemistry, and his immediate family own or have an option to buy an equity interest of more than 1% of the company. Dr. Pinnavaia is also an officer of Claytec, Inc.