Interinstitutional Faculty Senate Meeting

 

Friday, December 5, 2003, at Portland State University (Urban Center)

 

Present:  Elizabeth Boretz (EOU), Scott Burns (PSU Geology), Mina Carson (OSU History), Duncan Carter (PSU Liberal Arts and Sciences), Bill Danley (SOU Special Education), Elaine Deutschman (OIT Mathematics), James Earl (UO English), Peter Gilkey (UO Mathematics), Marye Hefty (OIT Communications), Laura Jones (SOU), Jim Lundy (OSU Transportation Engineering), Marny Rivera (SOU), Steve Teich (OHSU Library), Nathan Tublitz (UO), Bob Turner (WOU Biology), and Craig Wollner (PSU Social Science).

 

Absent: Nels Carlson (OHSU School of Medicine), Dan Edge (OSU Fisheries & Wildlife), Dick Fairley (OHSU Computer Science and Engineering), Solveig Holmquist (WOU Creative Arts/Music), Jim Tooke (EOU Mathematics Education), and Robert Zimmerman (UO Physics).

 

I.  Welcome by Bill Danley

 

II.      John Wykoff, Executive Director, Oregon Student Association

(Note:  Although Mr. Wykoff spoke at several different times to allow other speakers to present at their scheduled times, his ideas are summarized in one place here.)

A.      Reported on the last legislative session

1.     Stated little chance to do well because higher education was not at the top of the priority list.  Other essential services were placed far ahead.

2.     Mentioned that having tuition as a source of income hurt higher education in competing for funds because K12 doesn’t have such an income.

3.     Stated that the board made a mistake in selling “quality” as the higher education issue to the legislature.  Instead the board needed to talk about the lack of access in order to create a sense of urgency.  The board took the wrong approach and used the wrong message.

4.     Explained a credibility problem because the chancellor’s office represented OUS to the legislators, but the legislators would be much more influenced by the university presidents and students.

5.     Stressed that OUS needs to come before the legislature with a unified message.

B.      Reported on the Governor firing the higher education board members

1.     Shared rumor that Neil Goldschmidt said he would be on the higher education board if he could select the other members.  No clear plan seems to exist yet except an idea that Mr. Goldschmidt offers a way to bring money into the system.

2.     Shared the idea that OUS may be moving toward an acquisition model involving private dollars instead of an allocation model.

C.      Shared the chancellor’s success with effectively interacting and taking student issues forward to the legislature.  Gave Senate Bill 10 as an example of the risks the chancellor takes to support students.  Mentioned that students are supportive of the chancellor, but the student organization does not think his lobbying was effective in the last session.

D.      Shared Oregon Student Association priorities:  OUS funding, community college funding, Senate Bill 10, Oregon Opportunity Grant, and Child Care Block Grant Program.  Reviewed some of the successes with these priorities including $12M for the Oregon Opportunity Grant and $1M added to the Child Care Block Grant Program.

E.       Stressed the need for all schools and voices within OUS to come together.  “We must be unified with common goals.”

F.       Discussed the Governor’s “Asset” plan, which is his idea for adding funding into higher education and elevating the education discussion.  The problem is that this plan calls for significant funding for financial aid from private sources.

G.      Mentioned the importance of delivering messages from unexpected people to the legislature. For example, have students talk about faculty pay and faculty talk about access.

 

II.        Mary Kay Tetreault, Provost, Portland State University

A.   Shared her pride in the school’s planning process, which involved a committee drafting vision and values, and then focus groups of faculty and administrators refining these and determining the priorities of the school.  The following vision for the school was developed through this process.

1.     PSU’s vision:  “Our vision is to be an internationally recognized urban university known for excellence in student learning, innovative research, and community engagement that contributes to the economic vitality, environmental sustainability, and quality of life in the Portland region and beyond.”

B.    Shared ways the school is addressing priorities 1, 5, and 6 of the school’s nine priorities.  Priority 1:  “Attract and retain a faculty of distinction.  The strength of the University is based on its faculty and high quality programs.”  Priority 5:  “Develop our research and creative capacity consistent with PSU’s central role in knowledge creation and community engagement.  Priority 6:  “Provide leadership to create a nexus of educational institutions that enhance the community and contribute to economic development and sustainability.”

1.     Explained how the school’s access money is being transferred to places in the school that are experiencing growth.

2.     Talked about a revenue sharing plan.

3.     Mentioned that one way the school is trying to deal with the over 60 retirements of tenured faculty is by matching the funds of the provost and deans to fund positions.  (She mentioned this as an example of creative solutions to the budget problem.)

C.    Discussed the school’s focus on 1) student learning, 2) faculty vitality, and 3) multiplicity of faculty work.  These focus areas involve asking faculty to think about what they do best and how to meet the school’s priorities. 

D.   Outlined three other priorities for the institution:

1.     Sustainability on economic, social, and environmental levels.  PSU is working to become a sustainable institution.

2.     “Creative Industries—involves teaming with animation, movie industry, and creative industries.

3.     Established Center for Emerging Technologies—A center for bringing together faculty from different disciplines.

 

III.      Nohad Toulan, Dean, Urban and Public Affairs

A.   Presented the history of PSU’s urban campus

1.     In 1946 PSU established as an extension center and attracted many former soldiers on the GI bill. 

2.     In 1948 the original campus was destroyed in the Columbus Day flood.

3.     In 1952 Lincoln High School became the home for Portland State.

4.     In 1955 PSU became a four-year college

5.     In the 1960s the urban sites for the college were established.  Later to help stop the antagonism of the community because of the growth of PSU, the school agreed not to build beyond Market Street.

6.     In 1986 the school adopted the idea of a university district—a functioning, living district.

7.     1994 the University District Boundary Established.

B.    Presented some of the vision of PSU’s urban campus

1.     Described examples of partnering with business to share space (retail in the ground floor of the Urban Center Building).  The campus location downtown was once a problem and it is now an advantage.

2.     Described the plans for an assisted living center that can be teamed with the school’s aging research work.

3.     Shared the plans for a small urban village on a 4-acre hotel site, which will include student, faculty, and low-income housing for non-students. 

 

IV.      Tom Doyle, Bennet and Hartman Law Firm

A.   Presented an update on the PERS lawsuits

1.     Outlined the four pieces of litigation:1) Supreme Court petition, involving retirees and non-union employees; 2) federal; 3) class action; and 4) a 1970s case involving differences in male\female actuarial tables, in which the court issued a permanent injunction that female actuarial tables needed to have the same benefit as the male tables.  (This last litigation is a way for members in the PERS system to keep the same actuarial tables they hire in with.)

2.     Explained that the Supreme Court case involves the concept that in the recent legislative changes to PERS, the legislature is breaking their promise with employees, which is referred to as an “impairment of contract.”  For example, the original contractual promise was for an 8% guarantee, but the legislature has changed this.

3.     Reviewed a general timeline for the litigation, starting with the Supreme Court petition that should result in a decision in 2005.  The class action suit will not go forward until the Supreme Court case is finished.

4.     Explained that the State of Oregon’s Supreme Court has ruled previously that the benefits you begin your career with constitute a contract.

5.     Mentioned that PERS does not exist for new hires.  A new pension system exists.

6.     Stated that he believe the PERS problems will ultimately be solved at the legislative level and the litigation is a way of holding the “legislators' feet to the fire.”

7.     Stated that more information is available at www.bennethhatman.com

 

V.        Steve March, State Legislator District 46 Portland

A.   Discussed the built-in cuts to higher education if the temporary tax surcharge fails.  These cuts will include up to $12M in the second half of this biennium. 

B.    Stated that he sees no rush for a special session if the tax surcharge fails.

C.    Stated that taxpayers do not see that permanent tax reforms to businesses and others are in the surcharge bill.

D.   Mentioned the new retirement system passed in the legislature is “not bad.”

E.    Echoed others in stating that the OUS message should not come from the chancellor but from the universities.  “We are here to educate kids.”  The presidents of the schools need to carry this message.

F.    Stated that faculty can be effective by talking to their local representatives about higher education.

 

VI.      Denise Yunker, OUS Human Resources—Update on Benefits

A.   Stated the successor PERS plan is a good plan

B.    Discussed the Optional Retirement Plan (ORP) reduction in retirement benefit that resulted from the voter’s passage of Measure 29 in September.  This measure reduced the employer’s contribution rate to PERS accounts.  Because ORP and PERS contributions are tied together, ORP employer contributions were reduced from 11.71% to 4.27% of salary for Tier II and to 3.71% of salary for Tier I employees.

C.    Stressed the need for a bipartisan effort to de-couple the PERS rate and the ORP rate.  Asked for our help in doing this.  Mentioned the need for a letter to the legislature requesting this de-coupling.  The issue is two-fold:  1) the actual rates going into people’s retirements and 2) the wide fluctuations in the PERS account within a year.

D.   Discussed how PEBB is “changing its spots.”  It is moving toward an evidence-based model.  As it is designed now PEBB is unsustainable for the future.  Ms. Yunker sees a tremendous opportunity in the establishment of a health reimbursement program.

 

VII.  Jay Kenton, Vice President, Portland State University

 

Guest Jay Kenton, PSU Vice President for Creative Financial Planning:

 

Higher education’s problems include:

1.  People feeling overtaxed.  Some think that higher education (HE) is a private, rather than a public, good, and don’t want to pay for others’ education.

 

2. The current economic downturn (actually predictable at the beginning of every decade).  Some of the most profitable considerations in such times are given to the positioning of higher ed in order to avoid the negative repercussions of the economic climate.

 

 

A suggestion: College presidents should meet with legislators to hammer out a shared vision before any rulings on state support.  Higher ed must be viewed as an investment / solution, rather than a cost. 

 

PSU realizes that although business and industry are obvious potential candidates for funding, there is justifiable concern about the impact of accepting those funds on HE values.  In particular, HE must remain free to criticize corporate behavior.

 

 

With all this in mind, PSU is taking the following actions to avoid cutting programs and people in these hard times.

 

1.  Increasing student housing (a safety necessity for an inner city campus), which is expected to increase some revenue sources commensurately:

   --alumni giving via an increase in graduates feeling an allegiance to PSU

   --percentage of grad students (which will benefit research, which brings revenue)

   --attendance at athletic events.

 

2.  Adding retail businesses, including a brew pub and a night club.  Income from retail space allows funding for academic space.

                                                           

3.  Increased attention to recruitment of non-residents—for diversity not only of the student body, but of the financial base.

 

4.  Enhancing the physical aspects of the campus, which enhance the public’s perception, and thus giving; people want to contribute to a winner.

 

Saturday, December 6, 2003, at Portland State University (Urban Center)

 

Present:  Elizabeth Boretz (EOU), Scott Burns (PSU Geology), Mina Carson (OSU History), Duncan Carter (PSU Liberal Arts and Sciences), Bill Danley (SOU Special Education), Elaine Deutschman (OIT Mathematics), Peter Gilkey (UO Mathematics), Marye Hefty (OIT Communications), Laura Jones (SOU), Jim Lundy (OSU Transportation Engineering), Marny Rivera (SOU), Steve Teich (OHSU Library), Bob Turner (WOU Biology), Nathan Tublitz (UO), and Craig Wollner (PSU Social Science).

 

Absent: Nels Carlson (OHSU School of Medicine), James Earl (UO English), Dan Edge (OSU Fisheries & Wildlife), Dick Fairley (OHSU Computer Science and Engineering), Solveig Holmquist (WOU Creative Arts/Music), Jim Tooke (EOU Mathematics Education), and Robert Zimmerman (UO Physics).

 

I.  Report about Academic Council Meeting

A.   See IFS Web site for Dan Edge’s notes.

 

II.   Report about Last Two Board Meetings—Bill Danley

A.   Shared that when interviewed by the Oregonian reporter that this was the first time he had heard about the board firings.

B.    Shared an article in National Cross Talk (a publication of the National Center for Public Policy and Higher Education) entitled “Cause for Alarm” about how Oregon’s budget crisis leads to tuition hikes and academic program cuts.

III.  Optional Retirement Plan Reduction Discussion

A.    Discussed as a group the reason for the reduction in the Optional Retirement Plan and how IFS can bring this problem forward to the governor and legislature.

B.    Elaine Deutschman—asked us all to support AOF financially because AOF supports the faculty in issues like the PERS lawsuit.

C.    Jim Lundy—explained why the ORP reduction occurred.  State agencies borrowed $2 billion to pay for a PERS obligation.  This resulted in the employer contribution being reduced to 3.71% because the $2 billion paid the remaining obligation.  The ORP and PERS are coupled; therefore, whatever changes related to contributions occur in PERS will occur in ORP.  So, the ORP contribution was reduced to the PERS amount.

D.   Discussed drafting a letter from the presidents of the colleges, IFS, AAUP, and other college entities to the governor and chancellor about the need to correct this ORP problem and to de-couple ORP and PERS.

  1. Peter Gilkey will write the draft.
  2. Peter Gilkey and Mina Carlson will meet with Denise Yunker to learn more about the problem.
  3. Bob Turner will get state agency involvement.
  4. Bill Danley will inform the chancellor.

IV.  Discussion of OUS Board Changes

A.   Bill Danley—read the letter he sent to the governor about IFS nominations to the OUS board.

B.    Discussed the process by which IFS presented the governor with two nominations to the OUS board.  The process involved an IFS committee reviewing campus and IFS selections.  Craig Wollner (PSU) and Tublitz (UO) were nominated.  Peter Gilkey—“We set a deep and high standard by nominating you.”

C.    Mentioned the need to thank Geri Richmond when her term as the faculty member to the board is completed in January.

D.   Reviewed the importance of IFS establishing a relationship with Neil Goldschmidt.  Have the old and new IFS presidents meet with Mr. Goldschmidt and establish that IFS is available to serve his needs on the board.

E.    Craig Wollner shared his idea for a policy book communicating the consistent message and needs of OUS to the governor, legislators, and constituents.

V.             News from the Universities

A.   OHSU—The school has formed a committee to review its experience with Web filters for screening pornography sites (related to issues of academic freedom and acceptable use policies) and to submit a recommendation—take them off and keep them off.

B.    PSU—The Native American Center has opened.

C.    WOU—Negotiations for a new contract are underway.  The provost has resigned after 18 to 19 years at the school.

D.   Bob Turner—In future campus reports, include contacts made with legislators as a way to remind us to make these contacts.

E.    UO—Financial issues are causing conflicts between the administration and the faculty.

F.    SOU—The new provost is moving the strategic initiative plan forward.  The library is still being constructed.  A labyrinth is being built on campus.

G.   EOU—The new president (Khosrow Patma) is arriving on campus in the spring.  Part of his initial vision is to run the school more like a private school and bring in money from out-of-state sources.  EOU is cutting minors to deal with budget cuts.

H.   OIT—A compensation committee is reviewing issues of compensation.

I.      OSU—Elimination of tuition plateau is going into effect.  Cuts to extension services are still having impacts.

J.     Question to the group:  With the funding model capped at 72% of comparative institutions, how do we deal with the continuing growth in student numbers?

  1. PSU—Our assumption was to grow our way out of the cuts with more students.  Right now we are trying to change our proportion of graduate students to undergraduate students (more graduate students and international students).  The legislature will not wake up tomorrow.  We are now looking at everything we can to resolve the problem.  We funded the Portland Metropolitan Center with a jurisdiction tax.
  2. UO—We have chosen not to take more in-state students and to increase admissions standards.  Relying on endowments to hire faculty is not a good idea because in down economies, these faculty can lose their jobs.
  3. Duncan Carter—Changes in faculty culture are occurring as a result of these financial challenges.  The expectation when a new faculty member is hired is that that faculty member needs to bring in money.

K.   Group discussion:  With the changes in the board, IFS needs to work to be a force of communication for the faculty and the board.

VI.           IFS Schedule

·      February 6&7       Western Oregon University

·      April 2&3             University of Oregon

·      June 4&5               Oregon Institute of Technology

·      October 1&2         Oregon State University (If OSU has a home football game this weekend, the meeting will be changed to the next weekend.)

·      December 3&4      Portland State

 

VII.         Election of Officers and the Passing of the Gavel

Peter Gilkey—President

Bob Turner—President Elect and Vice President

Laura Jones—Secretary

Dan Jones—Academic Council Representative

 

VIII.       Resolution

IFS members thank Bill Danley for being extremely effective as president of IFS.