(Vol. xxviii, No. 6)

The Faculty Senate agenda is posted weekly on the Web, at 2540 Buzzard, outside the Conference Room in the Library.

I. Call to order by James Tidwell at 2:00 p.m. (Conference Room, Booth Library)

Present: J. Allison, J. Best, J. Coons, C. Eberly, P. Fewell, G. Foster, N. Furumo, R. Gholson, B. Irwin, G. Lockart, N. Marlow, J. Tidwell, M. Toosi, L. Walker, A. Zahlan. Guests: T. Abebe, J. Daugherty, J. Laible, T. Sloup.

II. Approval of the minutes of September 22, 1998.

Motion (Foster/Irwin) to approve the minutes of September 22, 1998.

Yes: Allison, Best, Coons, Fewell, Foster, Furumo, Irwin, Lockart, Marlow, Tidwell, Toosi, Zahlan. Abstentions: Gholson, Walker.

III. Communications

A. Copy of "Issues Affecting Funding of General Education and Other Instruction," version #4, September 1, 1998, and various comments about the proposal from N. Key, A. Zahlan, and C. Evans.

B. E-mail from Herb Lasky concerning plan for Pemberton Hall

C. E-mail from Robert Fischer concerning vacancy on Library Advisory Board

D. Minutes of Council on Academic Affairs-September 17, 1998

E. E-mail from Bill Addison concerning Fall Forum

F. E-mail from Reed Benedict concerning Fall Forum

IV. New Business

A. EIU Foundation-Jon Laible, Executive Officer of the Foundation. The Foundation is a not-for-profit corporation separate from the University, called a University-Related Organization (URO). It was founded in 1953 by H. Ogden Brainard to receive gifts and bequests in various forms. Noncash gifts are converted to cash and invested in an endowment. The funds are used to provide scholarships, grants, and to support various activities of departments. The Foundation originally consisted of 100 members; today there are 130, and the goal is to increase membership to 200. These members are people who care about Eastern-faculty, staff, alumni, and friends. Being a member does not bring with it a particular fixed amount of giving although members are encouraged to contribute. Membership terms are five years with a possibility of reappointment. The business of the Foundation is conducted by the Board of Directors which consists of nine Foundation members and ex officio members (President, VPBA, Nancy Page, Bill Warmoth, and Keith Branson). The officers of the Board are President-Jon Laible, Vice President-Barbara Hill, Secretary-Maggie Hollowell, and Treasurer Steve Grissom. Laible also holds the position of Executive Officer, but this is separate from the office of president. The Executive Officer is the fiscal agent for the funds and liaison with the Foundation and with the University. The Foundation has no professional fund raising staff at this time. If there was such a person, he/she would likely be the executive officer. Gifts to the Foundation include gifts as a result of Telefund and other special campaigns, larger gifts, deferred gifts, and bequests and wills. The Foundation's assets, as of June 30, 1998, were about $30 million, including $18 million in the endowment, $2 million in farms, $400,000 in charitable gift annuities, $8 million in unitrusts, and $1.6 million in cash. Earnings were 11.5% in 1996, 18.3% in 1997, and 17.6% in 1998. Funds are invested 15% in U.S. large capital stocks, 5% in mid capital, 21% in small capital, 14% international, 10 percent emerging market equities, 29% in U.S. fixed income, and 6% in emerging markets (fixed). The Foundation invests for the long-term. Scholarships paid were $260,000 in 1996, $294,000 in 1997, and $323,000 in 1998. Of the earnings, 4.25% is paid out in scholarships, .75% for administrative fees, 3% for inflation, and 1% for expenses of the investments. Because this a long-term investment, the goal is to have an 11% gain over time so that there can be payouts even in the bad years. These rates are very close to what other universities do. In the question/discussion period following Laible's remarks, key issues included

There are no investments in hedge funds.

There is no policy regarding social responsibility.

It was asked if there was a plan to hire a new Executive Officer. If the University gets a good person for Major and Deferred Gifts, this may be the Executive Officer for the Foundation. The people who work for the Foundation are hired by the University. All Board positions are volunteer. The Foundation has no employees.

When asked if the Foundation found the consultant's recommendation of a VP of Development with duties similar to those of Falk logical, Laible replied, that speaking for himself, he found that both logical and desirable.

The increase in the Foundation's holdings is due both to the success of the markets and an increase in gifts.

The Foundation does not try not to compete with University Development, nor do they want segments of the University competing with one another. Development works on annual funds. There is no major gifts operation now. Hilke and Falk continue to follow up on their previous contacts.

The Foundation has a responsibility to the Fund and the wishes of the donors.

Only gifts to the Foundation can be set up with annuities; gifts to the University cannot be done this way.

The Foundation serves as a conduit for such campaigns as Telefund and Panther Club.

Most of the funds are limited as to what can be done with them.

The Foundation is necessary to the University to maintain the integrity of the funds donated.

To change an endowment (for example the amount given for the Distinguished Faculty Award), it is necessary to go back to the original donor or dependents. If there are none living, then the Foundation Board can make a decision to change, but it must be consistent with the original intent.

B. Jolyn Daugherty presented a resolution from the Student Senate. "Whereas recycling is a problem for the University, and whereas we are working towards the goal of 40% waste management, and whereas we wish to reduce paper waste, therefore be it resolved that student senate recommends that administration, faculty, staff, and students print on both sides of paper." The Executive Committee will come up with a resolution that will address concerns expressed by senators.

V. Old Business

A. Fall Forum-Tuesday, October 13, 1998, 2-4 p.m. in Charleston/Mattoon Room of the University Union.

Motion (Allison/Walker) that the Faculty Senate offer a Fall Forum to discuss issues of shared governance and issues of threats to the quality of instruction.

Yes: Allison, Best, Coons, Eberly, Foster, Furumo, Gholson, Irwin, Lockart, Marlow, Toosi, Walker, Zahlan. Abstentions: Tidwell.

Major points of discussion included

Quality of education is not meant to be a discussion of general education.

It needs to be understood that Faculty Senate supports Unit B faculty. They are very competent and overworked. The danger is the recruiting of Unit B faculty to replace Unit A faculty.

Threats to the quality of instruction could also include the physical plant.

This forum is timely. Input from it could be helpful to faculty members on the Presidential Search Committee.

Faculty wishing to speak at the Forum should contact James Tidwell, Journalism (cfjat).

B. Committee Reports

1. IBHE Faculty Advisory Committee. Nancy Marlow reported on the September 11 meeting. There was a panel discussion on Education for the 21st Century: A Citizens' Agenda for Illinois Higher Education. Panel members included Karen Becker, Richland Community College, Kathleen Kelly, IBHE; Dan Lewis, Northwestern University; Walt McMahon, University of Illinois at Urbana/Champaign. The Citizens' Agenda is a major strategic planning initiative from IBHE and a "new way of thinking about higher education." It is a result of information gathered from students, employers, the general population, and opinion leaders. It is to be adopted by the IBHE at its December meeting. Budget allocation will be tied closely to these strategic goals and the colleges' contributions to achieving those goals:

Increase the educational attainment of Illinois citizens.

* Extend access to higher education.

* Assure that college is affordable.

* Enhance access and success for members of underrepresented groups.

* Improve the quality of education.

* Enhance responsiveness to students, employers, communities, and the state.

* Strengthen school-college partnerships.

* Improve productivity in Illinois colleges and universities.

The IBHE FAC web page (linked to Faculty Senate page) www.iit.edu/~fac

2. Executive Committee.

* The Noel Levitz survey has been completed. The full report is lengthy and will be placed in the library. Faculty Senate will receive an executive summary. Overall it was very positive.

* $530,000 in equipment money has been released from the Provost to the Deans. Funds will be released to hire 4 technology specialists for the colleges.

* The tuition change to a credit hour basis will go before Student Senate tomorrow. This could mean $700,000 in additional money-beyond what a 3% increase in tuition would yield. These funds would provide increased funding for general education, increased funding for the honors program, and funding for classroom refurbishing.

* CUPB will be meeting around the first of October.

* Lisa Huson and Chair Tidwell will set up meetings with the appropriate chairs of Student Senate, Staff Senate, CUPB, CGS, COTE, CAA, and the Athletics Board to discuss the open meetings issue. These are all public bodies under the statute. The President's Council is not because it has no official status with the Board of Trustees.

3. Nominations Committee. They have met and make the following recommendations to Senate:

* Apportionment Board-R. Sutliff, Technology

* Parking Advisory Committee, J. Williams, Psychology

* Parking Appeals Committee, A. Grant, Economics

* Publications Board, M. Kashefi, Sociology and Anthropology

* University Union Advisory Board, V. Stephen, Elementary and Middle Level Education

* Council on Faculty Research (Allied Health), R. Throneburg

* Newton Key, History, was appointed to a full 3-year term to replace Fern Kory whose 3-year term had not started.

Motion (Foster/Allison) to approve the nominations.

Yes: Allison, Best, Coons, Eberly, Foster, Furumo, Gholson, Irwin, Lockart, Marlow, Tidwell, Toosi, Walker, Zahlan.

4. Elections Committee. There was one petition for the library slot on CUPB from William Gibbs. There will be a mail election for the Library.

Motion (Eberly/Foster) to approve William Gibbs candidacy.

Yes: Allison, Coons, Eberly, Foster, Furumo, Gholson, Irwin, Lockart, Marlow, Tidwell, Toosi, Walker, Zahlan.

5. Student-Faculty Relations. The Pemberton Hall issue has come up. They are working to set up a conferencing system to allow the members to use e-mail to keep in contact.

6. Faculty-Staff Relations. Teresa Sims has been asked for names of Staff Senate's subcommittee.

7. Associate VPAA Search Committee. Gary Foster reported that they will be meeting tomorrow to tabulate the evaluations and feedback and will meet again on Friday.

C. Faculty Representation on BOT. Senator Zahlan drafted a letter to be presented to Koerner requesting a faculty liaison on the BOT.

VI. Adjourn at 4:12 p.m. (Walker)

Future Agenda Items

BOT-Vice Chair Carl Koerner will meet with the Senate October 6

Solicitation of credit cards on campus

General Education policy statement draft

Respectfully submitted,

Nancy D. Marlow, Recorder