AP Assembly
Minutes
Thursday, October 16, 2008
Reitz Union, Room 282, 4 p.m.
Call to Order—Christine Schoaff, at 4:00 p.m.
APA President's Report—None
Program—Dr. Bernard J. Machen, President of the University of Florida began his presentation with an acknowledgment of the APA's 5th anniversary. Dr. Machen presented service plaques to the APA founders Cheri Brodeur, Carol Kem, Vernon Kisling, June Nogle, Allan Preston and Jani Sherrard. Ryan Mills was also recognized for five years of serve as the APA’s volunteer webmaster. All former and current APA Board members were also informally recognized.
As summarized below, Dr. Machen went on to discuss a variety of subjects under the title "UF Update":
- Overall Economic Picture
Dr. Machen first discussed the economic state of the University. Dr. Machen stated that the economic problems in the State of Florida mirror those of the nation and world. He stated that as a business the University is pretty solid. The problem is that the state is the major funder and the state economy is dismal. Throughout the presentation, Dr. Machen eluded to the implications of the upcoming presidential election as a turning point in the nation’s economy. - Bond Indebtedness
Dr. Machen stated that bond indebtedness was almost non-existent on campus and that he is working with bond counsel to minimize exposure. - Working Capital
Dr. Machen stated that the University had good working capital of $500-600 million. - Retirement (ORP v. FRS)
Dr. Machen stated that the FRS is in good shape since it is invested conservatively. - Budget Cuts
Dr. Machen reviewed the University’s history of budget cuts—$40 million last year, $40 million this year, plus an additional 10% announced to the next fiscal year (which equates to another $60 million in recurring general fund dollars). Dr. Machen cautioned against alarm regarding the future budget cuts since they are not effective until the next fiscal year. He stated that the University’s goal is to minimize the negative impact on faculty and staff while maintaining transparency. Dr. Machen stated that the University must still consider revenue generating options such as higher tuition. - Health Insurance
Dr. Machen stated that the health insurance premiums have been stable for the last several years and the current rates are good through the current fiscal year but likely to increase going forward. - Hiring
Dr. Machen stated that the University’s hiring freeze was no longer in effect, but that employment decisions are still being monitored because the outlook is not clear. - Endowment
Dr. Machen stated that UFICO was hired in 2004 to run the University endowment and that the value has doubled. Last year the University’s endowment was in the top 10% in the country. Dr. Machen stated that the endowment is still in good shape despite its drop 8.2% since June. - Fundraising
Dr. Machen discussed the Florida Tomorrow Campaign which has raised $758 million. Initially the campaign was ahead of the curve, but giving has slacked off because of the uncertainty of the economy. - Student Recruitment
Dr. Machen stated that the University continues to recruit high level students, but noted the higher level of competition for admission based on fewer slots. Dr. Machen stated that there was an 800 slot reduction in enrollment last year. - Employment
Dr. Machen opined that that University was at a plateau after losing lots of administrative figures and faculty members. He blamed the departures on a University culture that lacks optimism about the future. Dr. Machen stated that the University is fighting to paint a positive picture which was the impetus for the 3% salary increase for faculty. Additionally, $2 million has been set aside for faculty enhancement (sabbatical).
During the question and answer section, Dr. Machen addressed a variety of subjects as summarized below:
- Opportunity Scholarships
Dr. Machen addressed a question concerning opportunities for faculty and staff to contribute to scholarships for first generation college students. Dr. Machen stated that sponsorship opportunities are available at the cost is $6k per year per student. - Bright Futures Scholarships
Dr. Machen addressed a question concerning the reaction in Tallahassee to Senator Oelrich’s proposal to end the Bright Futures program. Dr. Machen stated that the legislature is concerned about the program because of its popularity. The larger problem, however is prepaid tuition. Dr. Machen stated that a tuition realignment is needed. - Enrollment Reduction
Dr. Machen addressed a question concerning the future of student enrollment reduction. Dr. Machen stated that the University has pledged to reduce the entering undergraduate class by 1k for the next four years. He explained that student transfers took the brunt this year because acceptance letters had already been sent to the high school seniors by the time the cap was implemented. The College of Engineering took a big hit on transfers. However, the College of Agriculture was not affected since it is a unique program. - Graduate Student Increase
Dr. Machen addressed a question concerning the potential for increase in graduate student enrollment. Dr. Machen answered affirmatively, stated that the graduate student health insurance program was launched to enhance support to graduate students. - Faculty Raises
Dr. Machen addressed a question concerning the date faculty should expect to receive their 3% raises. Dr. Machen stated that some faculty member received their increases on October 1st, but it is retroactive to September 18th. Dr. Machen stated that the faculty union had signed the salary article which means the faculty in the union will be receiving their increases soon. - Impact of Community College Degrees
Dr. Machen addressed a question concerning the impact of the bachelor degrees conferred by the community college system on the UF population. Dr. Machen stated that there would be limited growth opportunity at the undergraduate level, but he wasn’t sure if a degree from Santa Fe was worth anything. - Distance Learning
Dr. Machen addressed a question concerning opportunities for UF degrees to be awarded outside of Gainesville through distance learning, etc. Dr. Machen stated that such opportunity was huge. - Health Science Center and Shands
Dr. Machen addressed a question concerning the future relationship of the HSC and Shands. Dr. Machen stated that a quality agreement was already instituted. He stated that the two entities must work as one. Dr. Machen stated that a new Senior Vice President was being recruiting with the goal of synergy. Dr. Machen stated that presently Shands reports to him and the College of Medicine reports to Doug Barrett. He stated that there is no interest in bringing Shands back under state rule. - Lottery Income
Dr. Machen addressed a question concerning the potential for lottery income increasing UF revenues. Dr. Machen stated that the lottery income was down and that it was not a sufficient source of support for higher education.
Adjournment—Christine Schoaff, President at 4:50 p.m.