October 18, 2000
PRESENT:  Giroux for Sherwood, White, Peed, Linker, Leech, Benham,
          Stewart, Larsen, Jost, Harkin, Nehrir, Mooney, Lefcort,
          McClure, Lansverk, Levy, Bogar, Bond, Jelinski, Kirkpatrick,
          McKinsey, Lynch, Fisher, Prawdzienski, Scott.

ABSENT:   Young, Hatfield, Morrill, Miller, Anderson, Kommers, Howard,
          McMahon, Locke, Butterfield, Griffith, Carlstrom.

The meeting was called to order by Chair Ron Larsen at 4:10 PM.  It
was determined a quorum was present.  The minutes of the October 4,
2000, meeting were approved as distributed.

Chair's report - Ron Larsen.
     - Two Strategic Planning and Budget Committee (SPBC) working
     groups are being organized.  Faculty Council members are
     encouraged to call the chair of one of the two and volunteer to
     be part of the group.  The groups and chairs are:
          - Strategic Planning - Chair:  Bruce McCleod (x4145)
          - Enrollment and Enrollment Management - Chair:  Sara Jayne
          Steen (x3768)
     - Geoffrey Gamble will be on campus full-time as MSU's President
     beginning December 4.
     - Ron has prepared a graph which shows general funding for
     MSU-Boozeman as well as in-state and out-of-state tuition.
     One-half of the tuition comes from out-of-state-students.
     In-state tuition is growing linearly while out-of-state tuition
     shows exponential growth.  Until this past year, the university's
     contingency fund was $200,000, equivalent to the tuition paid by
     twenty out-of-state students.  The contingency fund has been
     doubled, but is still a small part of the budget.
     - Candidates for Montana's seat in the U.S. House of
     Representatives will debate this evening at 7 PM in 103 EPS.  On
     November 1, there will be a forum for local candidates for
     Montana's legislature.  One question to ask each of them is
     whether they are in favor of the $500/student additional funding
     for the university system proposed by the Commissioner's Office.
     - Interim Provost Dave Dooley will attend Faculty Council on
     October 25 to report on the status of SPBC and plans for it this
     semester as well as on the reversion of faculty lines.
     Background information for the two issues was distributed
     (attached for members absent).

UGC Nominating Committee report.
     - Donald Mathre's name was presented as a nominee for a faculty
     position on the Athletics Committee.  Jack Jelinski moved the
     nomination be accepted by Faculty Council and forwarded to
     President Roark for approval.  The motion was seconded and

Faculty Affairs Committee report - David Scheerer.
     - The Committee is continuing to review Faculty Council standing
     committees for inclusion in the Faculty Handbook.

Working group on budget.
     - It has been suggested this be called a "budget information
     working group".
     - During discussion, the following consensus was reached:
          - The budget information working group will be organized
          through University Governance Council rather than Faculty
          Council, only.
          - Overlap with the SPBC budget working group is desirable to
          promote interchange of information.
          - Nominations for membership should be presented to UGC
          Steering Committee and should include faculty and contract
          professional employees (some of them from SPBC, if
          possible), and members of the administration.  The working
          group will be established by UGC Steering Committee from the
          nominations received.  The group should be as inclusive as
          possible, without becoming too large to do its work.
          - The charge is to find a comprehensible way to present
          MSU's budget and to identify the major issues that make the
          budget planning process such a problem. The group will
          report its results to University Governance Council, SPBC,
          the administration, and the public.
          - The working group is not intended to work toward
          resolution of the issues that make the budget so difficult
          to understand and budget planning problematic but to
          identify what these issues are.  This working group will
          move toward making greater transparency in the budget and
          the budgeting process.  (Working groups are intended to have
          a very narrowly defined scope and short time frame.
          Additional working groups may be created to push the work
          - The work of this group should be completed by the end of
          Fall Semester.
      - Jack Jelinski moved the above-mentioned points of agreement be
     accepted.  The motion was seconded and carried.

Discussion with Vice President for Administration and Finance Tom
     - Topics the Vice President was asked to address include: using
     the current authorization by the legislature to award faculty 3%
     raises during FY 01, building a better budget, and improving
     faculty involvement in the budgeting process.
     - MSU-Bozeman FY 2001 Budget Priorities and Status Executive
     Summary and MSU-Bozeman Preliminary FY 2001 Budget Development
     Plan and Priorities were distributed (attached for members
     - For FY 2001, there was an expectation of $2.7 million in new
     revenue ($2.2 million, actual), additional obligations totaling
     $3.3 million, and $3.5 million in proposed enhancements.
     - On the general fund side of the budget - even though authority
     was given for faculty raises, the funding for it was not totally
     provided.  The non-faculty personnel budget assumes a 3% vacancy
     savings, so this amount is removed from the legislature's funding
     of the university system.
     - During discussion, the point was made that there appears to be
     no review of prior year base allocations.  Instead, the focus is
     entirely on additional revenues and new proposed spending.
     - Lump-sum funding is given to the Board of Regents by the
     legislature.  The Regents then use a "cost of education"
     allocation to fund the units of the university system.  It is
     applied to resident enrollment, only.  Depending upon the
     enrollment mix at all schools at a given time, a unit may receive
     more or less funding.  The enrollment mix considers the
     student/faculty ratio of each curriculum and graduate enrollment,
     in addition to other factors.
     - The ratio of out-of-state to in-state students affects revenue
     from tuition, as does the number of credits each student carries.
     - During discussion, it was stated that faculty agreed to do more
     work through the PQO agreement, money for FY 2001 faculty raises
     was authorized by the legislature, and additional tuition was
     charged students.  The issue is priorities of the university.
     - It is implied in the distributed materials that the entire $74
     million budget was entirely obligated before budgeting began.
     - It appears the new MSU president is very keyed in on budgeting.

As there was no further business, the meeting adjourned at 5:10 PM.

Joann Amend, Secretary                            Ron Larsen, Chair