UNIVERSITY of MASSACHUSETTS BOSTON 100 Morrissey Blvd. Boston, MA 02125-3393

University Governance Faculty Council

http://www.umb.edu/faculty_staff/faculty_council Monday, September 11, 2017

1:30 - 3:30 PM Chancellor's Conference Room

Minutes

Members present: Steve Ackerman (HONORS); Jane Adams (CLA); Reyes Coll-Tellechea (CLA); Claudia Esposito (CLA); Valerie Karr (SGISD); Sun Kim (CNHS); Sharon Lamb (CEHD); Jay Lee (CM); Andrea Leverentz (CLA); Ana Lindsay (CNHS); Lusa Lo (CEHD); Julie Nelson (CLA); David Pantalone (CLA); Carrie Ann Quinn (CLA); Dan Simovici (CSM); Eduardo Siqueira (CPCS); Manickam Sugumaran (CSM); Kiran Verma (CM); Christian Weller (MGS); Roberta Wollons (CLA); Kevin Wozinak (CLA); Catalin Zara (CSM); Wei Zhang (CSM) Members absent: Robert Bowen (SFE); Linda Dumas (CNHS); Heike Schotten (CLA); Eve Sorum (CLA); Wei Zhang (CM) Representatives present: Robert Lublin (Representative to the BoT); Marlene Kim (FSU); Baila Mir (USG) Representatives absent: Michael Mahan (PSU); Vaibhav Sabharwal (GSA) Ex Officio members present: Barry Mills (Interim Chancellor); Emily McDermott (Interim Provost and Vice Chancellor for Academic Affairs); Kathleen Kirleis (Vice Chancellor for Administration and Finance) Meeting Minutes I. Approval of the agenda The order of agenda items was rearranged to accommodate teaching schedules for some of the presenters. Approved unanimously. II. Chair’s comments Manickam Sugumaran introduced the new interim chancellor, Barry Mills, interim provost, Emily McDermott, and three new Faculty Council members, Robert Bowen, Valerie Karr, and David Pantalone. Bob Bowen could not attend the meeting; Xong-Guo Xia attended in his place. The parliamentarian position is currently vacant, but will be appointed soon. III. Discussion on the budget crisis report Presentation of the report – Joseph Ramsey

Anneta Argyres was unable to attend the meeting. Joe Ramsey, a full-time, non-tenure-track faculty member in American Studies and English, made the presentation to the council. Copies of the executive summary and flyers announcing the official public release of the report were circulated to members. The report, “Crumbling Public Foundations: Privatization and UMass Boston’s Financial Crisis,” was produced by a committee comprised of faculty, staff, and student members who represent the Professional Staff Union, Classified Staff Union, Faculty Staff Union, Graduate Employee Organization, and PHENOM. The Faculty Council executive committee endorsed the report. The hope is that it can serve as a springboard for broader coalitions with UMass Boston-based groups and off-campus allies with specific action items that can be accomplished on campus and at the Board of Trustees and state legislature levels. UMass Boston administrators emailed the committee with questions and updated figures. The committee decided that even if the revised projections were accurate, they don’t affect the core arguments, analysis, and diagnosis of the report and proposed solutions. The figures may be incorporated into future revisions of the report. Professor Ramsey read the report’s executive summary. He emphasized the following points:

• The campus has had a positive net cash income up to and including FY16. • Full actuarial value of depreciation was deducted for the FY 15 and FY 16 operating budgets,

resulting in an overall negative net income. • The Commonwealth underfunds public higher education and public higher education capital

projects. • The combination of inadequate public funding and restrictive accounting created the current

financial crisis. Steps to remedy the budget crisis include:

• Current university administration o Cease the expansion of institutional support expenses, assess its recent rapid increase, and

take steps to bring this in line with other UMass campuses. • Board of Trustees and Massachusetts Legislature

o Immediately release UMass Boston of its obligation to achieve a positive net income while also accounting for the full actuarial value of depreciation.

o Identify funding (central office reserves and Commonwealth’s budget) to aid in the payments for rebuilding the Boston campus.

o Endorse the Fair Share Amendment and commit significant additional funds to the rebuilding of the campus.

A member asked what happens to the money factored as depreciation and whether it becomes part of the reserves of the university. Professor Ramsey said some of it paid the principal on existing capital projects, but there is a significant gap between what the committee has been told, where the money has been spent, and the amount deducted. The restrictive accounting practice creates the appearance that the campus is heading toward a major crisis by 2020 with a projected high $70 million deficit. The administration provided the committee with amended figures via email. A member asked if the committee considered how other public universities have handled this situation. Professor Ramsey said they did comparative analysis at the level of state funding, but not at comparable universities. He said there has been state disinvestment in public higher education. During the 1970s, the state covered 85 percent of the cost of a UMass Boston education, but now covers between 20 and 30 percent. In 2016, Massachusetts was 43rd in the nation for per-student state support as a percentage of tax income, which impacts the level of student debt and demographics of the student body. A faculty member mentioned two external reports that could be of some use to the committee:

• Chronicle of Higher Education, “25 Years of Declining State Support for Public Colleges,” March 2014

http://www.chronicle.com/interactives/statesupport (link includes tabs for articles, statistics, and graphs)

• Strategic Framework for Capital Investments in Massachusetts Public Higher Education, available in Appendix 1.

Professor Ramsey said the growth of institutional support is an issue. The number of upper level administration jobs at UMass Boston is more than three times the number at UMass Amherst and more than 18-20 percent higher than at UMass Lowell. Motion 1: Motion to endorse the report, “Crumbling Public Foundations,” a report submitted to the Faculty Council by the Coalition to Save UMB on September 11, 2017. Approved unanimously Motion 2: Motion to request the Interim Chancellor, in his efforts towards transparency, to make public his plan for budget consultation regarding what individuals, what committees, and what outside consultants will be looking at the finances on the campus, reviewing interest and principal payments, and assessing the rapid increase in upper administration (Institutional Support) expenses. A member commented that it was not clear how Barry Mills, interim chancellor, should be transparent. The chancellor responded that it was a fine motion and people should vote for it. The members responded with laughter. Approved unanimously Motion 3: Motion to request that the Interim Chancellor actively work to implement the first recommendation of the Save UMB report; namely, that UMB “immediately be released from the obligation to achieve a positive net income, and should not be required to include the full actuarial value of depreciation as a cash expense. The campus should be allowed to use reserves to make payments on the construction debt, and the BOT should release central office reserves to aid in the paying of this debt.” One member said that if depreciation is tied to new construction, it was a foreseeable expense that would be added to the budget, and asked if it was foreseeable that the campus would have had a budget crisis. He also asked why we are the only campus in crisis, considering that Amherst and Lowell have new buildings. Manickam Sugumaran, Faculty Council chair, said that UMass Dartmouth had similar trouble a few years ago and came out of it quickly. This is not something new among the four campuses. The interim chancellor said that depreciation is purely an accounting concept. If depreciation is about $30 million and we use the principal number and capitalized interest (interest on the debt the university borrowed that did not hit the income statements), that is why no one knew about the deficit; it was being paid with the university’s reserves. We are running negative or barely negative. The figures do not change the report’s conclusion that the state should bear a bigger burden of the university’s capital expenses, but it does change the facts that Faculty Council just voted on. The impression that the university is running cash positive is not correct. This does not cast aspersions on the people who wrote the report. It took upper administration time to figure this out with the way the numbers were being reported. He said the issue was foreseeable and could have been budgeted using surpluses from prior years, which is what Amherst and Lowell did. UMass Boston chose to spend money on programs, knowing the depreciation expenses existed. All private and non-profit institutions are required to do accounting that covers depreciation, something which Moody’s and other financial institutions consider when determining how much an institution can borrow. In education, new buildings do not create new revenue; they are replacements for worn-out facilities.

The interim chancellor said that given the amount of negative publicity the university has received, we should be making judgements based on an agreed-upon set of facts so that the facts are not confused in the public’s mind. If the facts get confused, then people won’t believe we are credible. The report must be credible on both the depreciation side and on the staffing side. We are not as overstaffed as the report suggests. The interim chancellor said that Anneta Argyres expressed an interest in sitting down with the administration to make sure the report’s facts are accurate. He said that it has been hard for the administration to get the facts. A member asked if a change in depreciation will change actuarial life. The interim chancellor said that if the substructure project were to cost $200 million (noting that it will cost more) and the actuarial life is 40 years, that will be an increase in depreciation on our books. This is a legacy project and there is a good argument to be made that someone else should pay for it. A member asked why the system office was unwilling to use reserves. The interim chancellor said he has heard nothing from the system office that the campus would be given relief. It would have to come from the budget of one of the other campuses, which would not be enthusiastically received. The other campuses are worried about the affect UMass Boston will have on their borrowing abilities, because borrowing is done system-wide, not university-wide. A member said that the university does not have full control over revenue and full control over expenses. It is difficult to plan for deficits when the campus has no control. Marlene Kim, FSU president, said that the president’s office has surpluses and reserves. The interim chancellor said that to the extent we show progress in closing the gaps we have created, he will be better able to make a case for support at the state and Board of Trustees levels. Their perception of the campus is one of uncontrolled growth and bad decisions. They want the university to get its house in order. Professor Ramsey said that an argument could be made about the special character of the student population:57 percent of undergraduates are first-generation college students; 57 percent are students of color; 51 percent are students of immigrants to the US. who speak English as a second language; and 48 percent have family incomes low enough to qualify for Pell grants. Students can’t absorb tuition increases, more work hours, and higher debt loads. We need the Fair Share Amendment, but we must fight for the needs of the population we serve. The interim chancellor said the facts are compelling, but outside people are looking at the ledger for financial discipline. A motion was made to table the motion. Approved: 11 Opposed: 12 Abstentions: 0 The motion was not tabled and the council moved to a vote on the original motion. Approved: 18 Opposed: 1 Abstentions: 4 Motion approved. Motion 4: Motion to request a response from the BOT on the “Fair Share Amendment” and whether UMass Boston can expect them to endorse it. Manickam Sugumaran will implement this motion. Approved unanimously. Motion 5: Motion to send Save UMB report to legislators in Massachusetts and to request plan from Interim Chancellor and Central Office with regard to lobbying legislature regarding: 1) provide funds in the

immediate-term to cover all the costs of replacing deteriorating buildings on the UMB campus, including fully funding the UCRR and substructure projects, and to 2) increase appropriations for public higher education until we are at least on par with the national average based on our state’s wealth. A member commented that some of the facts in the report are incomplete and need to be bolstered and revised. He agreed with the interim chancellor that the report should be perfect before being sent to the Massachusetts Legislature. A motion was made for a “friendly” amendment to strike “to send SAVE UMB report to the legislators in Massachusetts and” from Motion 5. Approved unanimously. The council voted on the amended motion. Approved unanimously. IV. Brief Reports

a) Manickam Sugumaran, Faculty Council Chair

No report submitted.

b) Barry Mills, Interim Chancellor

No report submitted.

c) Emily McDermott, Interim Provost and Vice Chancellor for Academic Affairs

Tenure-stream faculty: The deans have been told that we currently are not moving to new searches. When the budget picture is clearer in a couple of weeks, deans will be asked to make cases for critical and necessary replacement lines. In general, we are going to be very conservative this year on recruiting new tenure-stream faculty. Departments that had failed searches last year are authorized to renew those searches. We don’t want to incentivize anyone to accept a less than perfect candidate due to fear that the department will lose the line next year. NTT faculty: You are all aware of reductions in the NTT faculty force on campus. We are pretty much where we think we want to go on reductions and not looking for particularly significant decreases. We are looking to hold where we are and not go dramatically lower. We have saved money from these reductions and are hoping to stabilize at this level. That does not mean individual departments might not have to reduce the number because enrollments do not merit the number of NTT faculty. There will always be changes around the edges, but we aren’t looking for massive, across the board changes in NTT faculty. Research institutes: We are looking to see if any of the research institutes received state support that can move them toward a self-supporting model faster than they expected to have to move toward this model. The deans will hear more about this in the next few days. Academic program reviews: We will have academic program reviews and will consult with deans, Faculty Council, and various groups as we consider any form of reductions in academic programs that are not functioning as well as they should. Some programs might be put on moratorium. We will not be moving quickly on this. It’s more a “plan to plan” over the next few months.

Departmental curriculum review: The faculty say they feel helpless and should be partners in the savings, but don’t know how. Faculty can review curriculum to see if there are ways it is somewhat out of whack with reality. A particular course might not have enough students to offer it every semester, resulting in low enrollment that brings the threat of cancellation each semester. There are ways to look at curricula, and bring them into a more efficient world, that are academically and pedagogically responsible, but in a way that the dean will find fiscally feasible. I would ask you all to start departmental discussions about courses that are always facing cancellation. What can we do about these courses? What can we do to cooperate across departments? Are there research methods classes that can be shared between different graduate programs? Are there ways to save money and improve what we’re giving to students? _____________________________ A member disagreed that the university is going to be making hard decisions. Hard decisions have been made for years to close courses that students need and make them take courses they do not need. Programs are being run like retail businesses. One crisis is worse than the one before. The hard decisions will shape the careers of students and assistant professors. Marlene Kim, FSU president, said there are rumors from multiple sources that programs will be cut in October. Another open meeting would be helpful. The Massachusetts High Technology Council wants to spend $1 million to lobby against the Fair Share Amendment and is filing a lawsuit about the amendment. She said that the interim chancellor has a seat on the council and would send him more information.

d) Kathleen Kirleis, Vice Chancellor for Administration and Finance

The FY18 operating budget is being planned with a $5M deficit. Because the university was projected to have a $30M deficit at the time of last year’s Town Hall, significant work is necessary to be able to structure a budget to meet this target. Such work needs to be done in a way to minimize impact on academic programs and students. The focus is on lowering administrative overhead and examining activities ancillary to the core academic program. There is a focus on strategically reorganizing. Deans and Vice-Chancellors have been asked to submit proposed budget plans for what their areas would look like with a 10% reduction. This information is being used as part of the planning. Consultation has been taking place with the Budget and Long Range Planning Committee over the summer. Initial information presented to the Board of Trustees in July the following information: Revenues –planned for $432M, up $7.5M or 1.8% from FY17. Includes

• Student tuition – 45% of revenues – up 3% • State appropriation – 31% of revenues – up 1% • Grants and contracts – 13% of revenues – up 3% • Other revenue – 11% - down 3%

Expenses – planned for $436M, up 3.9M or.9% from FY17. Budgets still being developed for personnel and non-personnel costs, which are approximately 88% of the operating budget. Some of the areas being considered are:

• Research institutes – how to be self-sufficient • CAPS – what is the appropriate role of CAPS now that there is tuition retention

Ways to increase revenue with initiatives that are scalable are also being identified. Other planned costs:

• Depreciation – up $2M or 8.6% • Interest – up $474K or 3.7%

Further discussion with the deans and vice-chancellors is scheduled for this week. It is expected that final FY18 budgets will be in place shortly and that work on the FY19 budget will start later this fall. _____________________________ A member asked about the cost of personnel. The vice chancellor said they are working with the deans and have requested proposed budgets with cuts. Her office is also looking research institutes, tuition retention, and the role of the College of Advancing and Professional Studies.

e) Robert Lublin, Faculty Representative to the Board of Trustees

No report submitted

f) Marlene Kim, President of the Faculty Staff Union

1. We will be still bargaining this semester. We have not received information about salary

increases yet. 2. There are many rumors flying around regarding the budget cuts. The university has told us that

no decisions have been made, despite these rumors. • It would be good for the university to publicly say this, if this is true, to dispel these rumors. • It would be good for the university to hold another open meeting on the budget cuts and

what is going on, including: the process undertaken for determining the cuts, who is deciding on these cuts, and how faculty, staff and students can have a say in this matter.

3. The Fair Share Amendment is a ballot initiative that will raise $2 billion/year by taxing multimillionaires in Massachusetts an extra 4% on anything earned above $1 million to fund education (including higher education) and transportation in the Commonwealth. he Massachusetts High Technology Council has stated strong opposition to the Fair Share Amendment and plans to spend $1 million to fight this initiative by filing a lawsuit against it. Barry Mills has a seat on this Council, and we have urged him to use this seat to oppose the High Technology Council’s opposition to this Fair Share Amendment. We have not heard back from him on this. We urge the FC to pass a resolution to urge Barry and UMass Boston to argue against this High Technology Council position so that they drop this lawsuit.

g) Michael Mahan, President of the Professional Staff Union

Financial Crisis The Professional Staff Union (PSU) has the following statement: “On Thursday, September 14th at noon, along with other unions and students, we are releasing a report to the public, analyzing the UMass Boston fiscal crisis. It includes recommendations which we hope the campus administration, the Board of Trustees and the Legislature will take seriously. We believe the present path is destructive to our students and our mission.” Bargaining Update The Professional Staff Union contract expired on June 30, 2017. The PSU and university administration/management is still engaged in contract negotiations, dating back to late 2016. The issue of economic parameters is still not resolved, thus prolonging a timely contract settlement.

h) Baila Mir, Representative from the Undergraduate Student Government

No report submitted.

i) Vaibhav Sabharwal, Representative from the Graduate Student Assembly

No report submitted. V. Motion to approve the minutes of Monday, May 1 & May 8, 2017 meeting Approved unanimously. VI. Approval of the membership on Faculty Council Subcommittees: Budget committee: Renewal

a) Sharon Lamb (CEHD Counseling & School Psychology) b) Gillian MacNaughton (SGISD) c) Laurie Milliken (CNHS Exercise & Health Science) d) Alice Carter (CLA Psychology) e) Adenrele Awotona (McCormack Graduate School)

New members: a) Yong-Chul Shin (CM Accounting and Finance) b) Greg Sun (CSM Engineering) c) Laura Hayman (CNHS Nursing)

Gen Ed Subcommittees:

a) Lin Zhu, Department of Communication, College of Liberal Arts, to the Quantitative Reasoning Subcommittee;

b) Shannon McHugh, Department of Modern Languages, Literatures, and Cultures, to the Seminars Assessment Subcommittee.

Graduate Studies Committee

a) Greg Beck (CSM Biology) b) Laura Bozeman (SGISD) c) Edward Carberry (CM Management) d) Heidi Levitt (CLA Psychology) e) Arthur Millman (CLA Philosophy) f) Pamela Nadash (MGS Gerontology) g) Helen Poynton (SFE) h) Dan Simovici (CSM Computer Science) i) Jessica Whiteley (CNHS Nursing) j) Dr. Christian Chun (CLA Applied Linguistics)

VII. Status of the Healey grants Interim Chancellor Mills will support revival of the Healey grants. VIII. Motions from the academic affairs committee 1. Motion to approve the changes to the student code of conduct pertaining to student misconduct and the forthcoming residency housing.

Motion was tabled to the October meeting. 2. Motion to approve the Classroom Conduct Policy Motion was tabled to the October meeting. IX. Motions from the Graduate Studies Committee Motion 1 –New Courses CSM Physics 607 Experiments in Squishy Physics CM BUSADM 777 - Dissertation Seminar - Finance Track Approved unanimously. Motion 2 – Program Changes – CLA - Sociology

1. Reduce the minimum required number of dissertation credits from 12 to 6 2. Drop the requirement to complete two courses in one of three concentrations

Approved unanimously. Motion 3 - Program Change – CM Reorganize Accounting and Finance MS degrees to 10-course, 30 credits programs Approved unanimously. Motion 4 – Program Change – CLA Eliminate grade requirement for History master’s programs Motion was tabled to the October meeting because members of the history department were not available to discuss the program changes. X. Motion from the General Education Committee: Gerontology 325 for the Social and Behavioral Sciences Distribution. Motion was tabled to the October meeting. XI. New Business XII. Motion to adjourn. Appendix 1: Strategic Framework for Capital Investments in Massachusetts Public Higher Education (Continued on next page.)

Questions and Answers: Webinars 5/3 and 5/11