Meeting Minutes
Meeting Minutes: November 21, 2006
Members Present: David Slavsky, Alan Raphael, William Honig, Tim McGuriman, John Frendreis, Wayne Magdziarz, William Laird, Thomas Hickey
- Review of Minutes
The minutes from the October 12, 2006 meeting were reviewed and approved. - Committee Charge and Membership
Alan Raphael was introduced as a new faculty representative on the committee. A detailed orientation with Mr. Raphael will be scheduled at a later date. A review of the rates increases approved by the BOT and new governance rules, including election of a chair, will take place at January meeting. -
Review of Budget Package
It was noted that there were no significant changes to budget assumptions since the last committee meeting. Administration is seeking UPC endorsement of 4% tuition increase and other budget assumptions.Bill Laird reported on a meeting with Dean Lee at SSOM where the decision to maintain a 3% tuition increase for FY 07 was held, as well as a discussion around using SSOM participation in School as Lender program as a way to reduce student debts.
Mr. Laird confirmed that tuition increases are based on the University’s needs and what market will bear.
The Board of Trustees Finance committee package includes a scorecard with a snapshot of budget information with detail included, as well as a tuition comparison for the current year.
It was explained that the tiered tuition pricing structure is intended to move LUC up in the tuition ranking had been accomplished and will be phased out over next three years.
John Frendreis reported that Rome tuition is less due to a decrease in expenses required to teach in Rome and based on market comparisons. Rome tuition has been discounted 25% for fall and 15% for spring. Profits generated in Rome will be used for capital investments there and the purchase of a new building. Financial aid is still applied to students accounts for study in Rome while gift funds have also been set up to support travel by students. There is a 50% effective discount rate at the Rome Center.
It was reported that the Luc 4 year graduation rate is approximately 52%, 5 years = 60% and 6 year rate between 67% and 68%.
Enrollment numbers are generated through a process that includes each Dean who is advised on proposed tuition increases so it can be factored into school’s recruitment considerations. Enrollment is currently reaching capacity and growth is slowing down. Mr. Slavsky recommended the development of a strategy to reduce ratio of science to non-science majors.
There is a ½ point per year reduction strategy for the discount rate in Financial aid planned but savings not reflected in budget as they have not been implemented as yet.
Student Affairs conducted a review of LUC housing stock to adjust rate increases to market.
Tom Hickey reported that the budget includes a safety valve by budgeting certain expenses, at 100% that will not be spent.
Bill Laird confirmed that 3% budgeted for corporate reserves and projected results of operations have been sufficient thus far. Endowment is currently $329m.
$7.7m has been reserved for cardiac devices lawsuit. Funds will be put back into capital budget if lawsuit settled in LUC favor.
Tom Hickey confirmed that a staple set of benchmark was used for budgeting purposes which includes urban peer schools and other Jesuit institutions.
There being no further business, the meeting was adjourned.