Repository: UIHistories Project: Board of Trustees Minutes - 1994 [PAGE 59]

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1994]

UNIVERSITY OF ILLINOIS

47

director of cash management and investments, reported that the pool of funds will be reviewed in all aspects within the next six months. President Ikenberry commented that the endowment, controlled by the University of Illinois Foundation and managed by some of these managers, had doubled in the last five years. Next, Mr. Margison reported on the University's Endowment Farms, noting that they are separate from the University's endowment. He indicated that the current book value of these is $9 million. He also mentioned that a new appraisal of all the farms is now underway. He said he expected the appraisal to be approximately $23 million. He informed the board that the Trust Farms Office is a part of the College of Agriculture and that the staff in this office supervises the farm managers. The farm managers share 50 percent of the profit made by each farm. The purpose of maintaining these farms is to provide sites for transferring techniques being taught in the College of Agriculture to a farm setting. Following this, Douglas Beckmann reviewed the items recommended to the board in the regular agenda. He indicated that the changes being made in banks to do certain kinds of University business would create savings for the University. This committee meeting adjourned at 10:15 a.m.

MEETING OF THE BOARD AS A COMMITTEE OF THE WHOLE

When this meeting commenced, Mr. Boyle was in the chair, having joined the meeting at 9:30 a.m. He asked President Ikenberry to make a few remarks about one of the items in the board's agenda — the recommendation for the University's budget for Fiscal Year 1996.

Review of Budget for Fiscal Year 1996

President Ikenberry gave a preview of the budget for FY 1996, noting that each budget is prepared in a context and that this year the context is more positive than the University has had in about five years. He then asked Vice President Sylvia Manning to summarize the priorities of the budget proposed for the next fiscal year. Dr. Manning described the three main emphases in this budget: (1) unavoidable costs — utilities, general cost increases, operations and maintenance costs for new buildings, and the employer contribution to Medicare for employees; (2) regaining competitiveness in salaries — she noted that this was the highest priority. She explained that salaries for faculty are linked to strengthening academic programs; and (3) improvement of teaching and curricula — it was indicated that this includes upgrading of classrooms in terms of repair and remodeling and adding needed technology. Also included are more efforts to recruit minority students, particularly in graduate programs. For the capital budget, renewal and remodeling of facilities are the highest priorities.