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REPORT OF COMMITTEE ON BUDGET AND FINANCE

Mr. Wilson, chair of the Committee on Budget and Finance, presented the

committee’s report.

2000-2001 Supplemental Budget Request

In his comments regarding the 2000-2001 Supplemental Budget Request,

Mr. Wilson said:

In January and again today, the board considered a comprehensive budgetary plan for
submission to the General Assembly. The plan will be considered during the 2000
legislative session. The plan addressed three pressing issues:

The plan called for a new need-based financial aid program resulting from a
comprehensive board study

•

The plan provided a means to address the faculty salary and compensation gap
identified in the board’s study of faculty salaries

•

The plan recommended the establishment of a new system-wide capital facilities fee
that, when matched by the General Assembly, would provide financing for a $750
million two-year capital plan.

•

Finally, the plan incorporated important board priorities that were not funded during
the first year of the biennium as well as several revisions and refinements, particularly
to the request for enrollment changes. The plan further recommended tuition
increases for the 2000-2001 academic year.

•

The President has recommended that the board defer action on the capital facilities fee
portion of the plan, pending an initiative led by NCCBI for the benefit of the University
and the Community Colleges. Deferring action on this component of the plan would also
allow the Joint Select Committee on Higher Education Facilities Needs to begin its work.
The NCCBI initiative and the work of the Joint Select Committee would provide
important information for the board to consider before determining the best approach to
meet the University’s capital needs.

In the Budget and Finance Committee meeting yesterday the committee agreed to accept
the President’s recommendation to defer action on the capital facilities fee. Following
the President’s presentation and discussion, the committee concurred and accepted the
President’s recommendation to defer consideration of the capital facilities fee plan or
some variation thereof until a future date. Thus, the committee did not consider a capital
facilities fee plan.

Mr. Wilson reported that the recommendations endorsed by the committee included the

President’s plan related to faculty salaries and student financial aid. Concerning tuition for the

2000-2001 year, he asked members to retrieve the handout entitled “2000-2001 Supplemental