Repository: UIHistories Project: Board of Trustees Minutes - 1972 [PAGE 23]

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1970]

UNIVERSITY OF ILLINOIS

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including those registered for credit, be exempted from the McKinley Hospital portion of the Hospital-Medical-Surgical fee, effective September 1, 1970. I recommend approval. O n m o t i o n of M r . C l e m e n t , t h i s r e c o m m e n d a t i o n w a s a p p r o v e d . AUTHORIZATION TO W I T H H O L D STUDENT TUITION TO SUPPORT T H E ILLIN1 U N I O N . URBANA (15) When the bonds were sold to finance the addition to the Mini Union at Urbana-Champaign in 1963, the bond indenture provided that the University will adopt such rules and regulations to fix and maintain student service charges, rates, rents, fees, and charges, as will assure maximum use of the facilities, and will provide revenue sufficient to pay the cost of operating and maintaining the facilities and maintain the required debt service provisions. Because of the increases in all costs, particularly labor, the total operating expenses, including debt service, are in excess of total revenues by approximately $180,000 for the year ended June 30, 1970. This is the first time since the Mini Union opened in 1941 that income or retained earnings were not sufficient to cover expenses and debt service. T h e University is authorized to withhold general student tuition to the extent necessary to support revenue bond projects. Accordingly, the President of the University, with the concurrence of the appropriate administrative officers, recommends that the Board authorize the withholding of $180,000 from general student tuition or as much thereof as may be needed to meet the covenants of the resolution authorizing issuance of bonds for the Mini Union at Urbana-Champaign for the fiscal year ended June 30, 1970. This recommendation is made on the assumption that revenues will be increased beginning prior to the 1970 fall term and in future fiscal years to cover the estimated expenses, including debt service. (The $180,000 represents approximately three per cent of the total annual operating budget of the Mini Union at Urbana-Champaign.)

On motion of Mr. Swain, this recommendation was approved.

SEPARATE F U N D TO PROVIDE FINANCIAL A I D . URBANA (16) On February 18, 1970, the Board approved in principle the creation of a separate fund to be developed from the collection of $2.00 per student per semester, for the purpose of providing financial aid funds for needy students. At its March 18 meeting the Board received a report stating, "It appears that the development of a specific plan for implementation, and formal action upon it by the Board of Trustees, should now await the forthcoming action of the Board of Higher Education in April." The Board of Higher Education did not act to support the University's request for a supplemental budget increase to provide state funds to match those received and deferred further action pending a state-wide study of the general question of financial aid to students. Although the Board of Higher Education did not act to support the University's request for matching state funds, it is consistent with the plan recommended that the collection of $2.00 per semester, including the summer session, be authorized for not more than a four-year period, with the understanding that if matching state funds are not provided by September, 1971, the program will terminate with the collection for the 1971 summer session. Plans for the implementation of the collection and refund procedures have been prepared. Briefly stated, each student registered on-campus will be required to pay $2.00 each semester and summer session at the time of registration. Two weeks after registration those students who desire a refund will be able to obtain it. The refund period will last through November 30 in the fall, April 30 in the spring and July 30 in the summer. T h e collection will be waived for all off-campus registrants. The funds collected will be used to supplement existing financial aid funds for needy students under current programs administered by the Financial Aids Office and the Graduate College Fellowship Office. The President, on recommendation of the Chancellor, requests approval of the above plan for implementation of the collection and refund of $2.00 per student.