Repository: UIHistories Project: Board of Trustees Minutes - 1988 [PAGE 278]

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268

BOARD OF TRUSTEES

[May 14

Projected rate increases of 4 percent have been forecast for materials and parts; 5 percent for labor; and 7.5 percent for insurance. In addition, the need to cover replacement requirements for ground trainer equipment presents a special need for a rate increase beyond inflationary projections. Based upon these factors, overall Fiscal Year 1988 rate increases for use of aircraft operated by the institute are as follows: Proposed, Percent of FY 1987 FY 1988 Increase Cessna 310R (Staff Air Transport) $217/hr. $222/hr. 2.2 Sport (Flight Training) 54 56 3.7 Arrow (Flight Training) 71 73 2.8 Duchess (Flight Training) 100 104 4.0 Boeing (Flight Training) 87 90 3.4 HQler (Flight Training) 109 112 2.7 Cessna 152 (Flight Training) 42 44 4.8 Ground Trainers 15 20 33.3 Based upon the type of aircraft used in various aviation courses and on the extent to which ground trainers are used, the rates above require the following changes in fees charged for aviation courses for FY 1988: Course Aviation Aviation Aviation Aviation Aviation Aviation Aviation Aviation Aviation Aviation Aviation FY 1987 Fee $1 500 1 932 1 023 1692 1 817 1 990 1923 -01518 916 830 Proposed, FY 1988 Fee $1 580 2 028 1 072 1788 1 913 2 055 2 000 3 095 1591 963 870 Percent of Increase 5.6 5.0 4.8 5.7 5.3 5.3 4.0 n/a 4.8 5.1 4.8

101 120 121 130 140 200 210 211 (new) 220 222 224

All FY 1988 aviation increases have been reviewed and recommended by the University Planning Council. I concur,

On motion of Miss Smith, this recommendation was approved.

Establishment of Expense Fee, Correspondence Courses, Urbana

(17) Correspondence instruction at the Urbana campus is now carried out in the form of "Guided Individual Study" programs, involving packages of instructional materials and sometimes elaborate forms of communication between the instructor and individual students at a distance from the campus. The method relies heavily on the instructional materials and the funds needed for their purchase, preparation, and production. Some reallocation of funds has been carried out but the expense budget has been particularly susceptible to limited price increases for goods and services; these have fallen significantly behind inflationary increases.1 The correspondence program is not one of "full cost recovery," but tuition and fee charges generate between 80-90 percent of their cost Nonetheless, that fraction has declined as expenses have outpaced funds for cost increases.

1 Among the technological enhancements now in use are computer diskettes, electronic mail or other computer communications, and improved and expanded telephone communications.