1. Call to Order

Chair Margery Overton called the meeting to order at 1 p.m.

2. Introduction of the Speaker

Chancellor Woodward gave a brief introduction of the speaker, Representative Rick Glazier, Chairman of the Appropriations Subcommittee on Education.

3. Remarks by Rick Glazier

Representative Glazier commented on the budget overview issues facing next year.

Representative Glazier indicated that he expects the 8% tuition increase for next year to go through across the board. While the economy is said to improve, it is not easy to tell this to the 11% unemployed in North Carolina. The NC sales tax revenue is about 11.5% down from last year, and income tax withholding is about 3.5% down.

In terms of education funding he sees a continuation of requests for outcome data.  Last year’s guidelines for cuts in the budget were guided by three questions:

• Is the activity part of the core mission of the institution?
• How effective is the activity in contributing to that core mission?
• If the activity’s outcome cannot be measured, how long until the institution has the means to measure in place?

Outcome data and tracking data will continue, among other things the 4 and 5 year degree completion rates, faculty teaching and other workload indicators, as well as administrative efficiency indicators. Measuring will be required program by program; collaboration across universities will be encouraged.  Legislators do not want to micro-manage, but they like to see line-by-line efficiency measures. At the same time we do keep in our mind that we want to have engaged and enlightened graduates who are good citizens. This requires humanities and art programs. Scholarship funding has a high priority, and he indicated the risk that the Escheats Fund may soon be depleted, causing great concern as this currently provides a major funding source for scholarships.

• Education Budget (Enrollment Growth)
  • 6,000 more students this year than last year
  • 11% unemployment—real work of financial aid
  • 44 million additional dollars to cover additional students
  • Additional resources for NCSU’s Engineering and Vet School

• Health (major priorities)
  • Cancer Center just opened at UNC
  • Expanded the Dental School at UNC and a new Center at ECU
  • Additions to NCSU’s Veterinary School
  • Created and opened a Heart Center at ECU
• Tuition
  • Not campus based next year—likely an 8% increase
• Revenues
  • 1% below target for the first quarter
  • Recession conditions remain through next fiscal year
  • Sales tax down—withholding tax down from the year before

• Ongoing Issues
  • Need to look at all institutions missions—probably too much deference given to local administrations.

• More questions about productivity
  • Degree completion
  • Teaching work loads
• Review of Admin Efficiencies
  • Cannot undercut job that needs to be done—deference to student services

• Pre K – 20 Data System
  • What percent of students from which school succeed?
  • Better job of collaborating
  • Distance/online learning capacities
  • STEM – teaching and research

• Financial Aid
  • Aid from the Escheats Fund—used up in about 2.5 years

Questions/Concerns:

• Where do you draw the line in terms of micro-managing schools?
• Professional Development – will tuition waivers be reinstated?
• Looking at increasing demand for data at the K-12 system, this led to lower quality of education – how can we prevent metrics from doing damage?
• Are we looking at actual tax reform or just at tax increases?
• Will furloughs come back?  Response:  Will not say that they are off the table.
• 5% permanent reduction – is that it, or is more to come?  Response:  The Governor is not going to know until we get through the holiday seasons.
• Looking 20 to 30 years into the future, this is an important area for graduate students and research – what data is needed to get funding for such activities? Response:  Placement rates of graduate students and income over five years and more.
• Question about the relationship between faculty and legislature.

4. Remarks from Chancellor Woodward

Chancellor Woodward commented on the Chancellor Search.  He reported that the finalists could be identified by early spring and that the new Chancellor could be in place some time in the spring.  If the person is a sitting Chancellor, he or she would likely come on board at the beginning of the next fiscal year.

5. Remarks from Provost Arden

Provost Arden hopes NC State’s 10% reduction will be all for this year.

Provost Arden stated that he thinks next year will be a good time to restart compact planning.  He also thinks that faculty and faculty positions are the basis of a good university, and that there is a lot on the table as we move forward.

Provost Arden mentioned four strategic areas:

Health and Well-Being

• Energy and Environment
• Educational Innovation
• Engaged and Enlightened Graduates

6. Concluding Remarks

Chair Overton thanked everyone for attending the meeting.

7. Approval of the Minutes of the March 23, 2009 General Faculty Meeting

Secretary Hergeth asked for approval of the minutes.  The minutes were unanimously approved.

8. Adjournment

A motion passed to adjourn the meeting at 2:20 p.m.