i SPECIAL MEETING OF THE BOARD OF TRUSTEES July 8, 1972 Present: Trustees Carrigan, Hartman, Huff, Martin, Stevens, and Thompson; President Wharton, Executive Vice President and Secretary Breslin, Provost Cantlon, Vice Presidents Muelder, Nonnamaker, Perrin, Scott, and Wilkinson, Attorney Carr, Assistants Ballard, Spaniolo, Wilkie. Absent: Trustees Merriman and White. President Wharton called the special meeting of the Board of Trustees to order at 8:30 a.m. in the Heritage Room, Kellogg Center, for the purpose of discussing the proposed University! budget guidelines for 1972-73. 1972-73 Budget Prior to the discussion of the budget, President Wharton presented two informational items: (1) Dr. Wharton's letter to Trustee Stevens dated July 7, 1972 relative to his inquiry concerning the discontinuation of the step increases for clerical-technical employees, and (2) a report of the University Subcommittee on University Policy. Dr. Wharton indicated that the report of the East Lansing Subcommittee was not complete. He commended Elliott Ballard and Vice President Muelder•..for their work on this committee. President Wharton then asked Provost Cantlon and Vice President Wilkinson to present the tentative outline for the 1972-73 budget. The budget estimates are as follows: MICHIGAN STATE UNIVERSITY Budget Estimates for 1972-73 Revenues 1971-72 Original 1971-72 Reduction 1972-73 Estimated Net Change Student Fees $ 30,209,000 $29,779,000 $ 30,361,000 $ 582,000 State Appropriation 65,318,000 64,011,640 70,839,000 6,827,360 Federal Morrill-Nelson 298,000 294,000 200,000 (94,000) Application Fees 325,000 325,000 325,000 Departmental Receipts 1,850,000 1,850,000 1,850,000 Recovery of Indirect Cost 2,747,000 3,181,000 3,000,000 (181,000) Equity 500,000 500,000 500,000 $101,247,000 $99,940,640 $107,075,000 $7,134,360 • Special Meeting of the Board of Trustees, continued July 8, 1972 1972-73 Budget 1972-73 Projected Expenditure Increase Fixed Increases: Insuran.ee, Sewage, Fire Protection, Fuel, Health Center and Electricity- Fringe Benefits (Social Security, Disability Insurance, Hospitalization) Legislated Allocations for Medical Programs Committed and Required Allocations: Academic: Special Salary Adjustments Faculty Grievance Office Center for Laboratory Animal Resources Science Development Disadvantaged Students Human Ecology A.P. Study (Estimated cost of changes) C.C.T.V. Studio Costs in Life Sci. II Registrar & Admissions A.E.C. Matching Funds Other (less than 25,000. each) Non-Academic: Personnel Office E.O.P. Reorganization A.P. Study (Estimated cost of changes) Data Processing University Development Office Other (less than 16,000 each) Financial Aids Restore 1971-72 Budget Reductions:* Academic Repairs, Alterations, Improvements, and Maintenance Proposed Compensation Adjustment —- 4% Projected Expenditure Increase Assuming 4% Raises Funds Available Projected Deficit Reduction Necessary to Balance Budget Academic Non-Academic $ 473,000 493,000 $ 966,000 1,383,000 743,308 319,000 100,000 1,162,308 $125,000 40,000 60,000 60,000 100,000 71,000 50,000 35,000 20,000 20,000 162,308 $ 70,000 36,000 50,000 50,000 30,000 -83,000 650,940 655,420 $1,306,360 1,306,360 2,925,000 7 ,742,668 7 ,134,360 $ 608,308 501,980 106,328 jsos^jp^ The Trustees spent considerable time discussing the salary increases for University employees- Trustee Stevens indicated that he would like to see formal Board action at some future date establishing floors for academic rank. Trustee Carrigan requested that when large increases were recommended for individuals additional information be made available to the Trustees relative to the criteria used in the recommendation. On motion of Trustee Hartman, seconded by Trustee Thompson, the Board voted unanimously to approve the budget guidelines as outlined by the administration for the 1972-73 budget, and approved a 4% salary increase. |Adjourned. President Secretary