Bendapudi said UofL’s cash on hand status has been a concern, but credited CFO Dan Durbin and his team for making up some ground. SACS’ response is expected next week and if it is a good report, UofL will not have a major review for another 10 years.

“SACS told us this is the most transparent and thorough report they’ve received. We were upfront with them because there is no other way,” Bendapudi said. “I’m optimistic.”

The president also provided an update on UofL’s strategic planning process. asking employees for their input on what needs to be included in the plan to make UofL a great place to learn, work and invest. Bendapudi reminded senators that it is also important to increase our focus on research.

“We have a great opportunity to be an urban research university but we have got to increase our research productivity,” she said.

From January through June, more details will emerge on the timeline, metrics, etc. that will go into the strategic plan.

In other news, a search will be underway in January for an EVP of research. The goal is to have someone in place by fall 2019.

The EVP for health affairs search has been paused because of ongoing issues on the HSC campus.  

“The HSC campus is a great point of pride, but there are financial implications and the losses and challenges can be impactful for the rest of the university. We’re trying to figure out how we handle Jewish Hospital (closing),” she said. “I can assure you there are a lot of good people doing a lot of good for the university with these issues, but until we have more clarity, we’re going to wait (on the EVPHA search).”

Bendapudi also noted that she is continuing to work on streamlining reporting lines so we’re better able to function as a university “as a whole.”

“In the past, we’ve had each leader making decisions that were good for their unit, but perhaps not good for the university as a whole, so we’re working on reporting lines and trying to bring us all together, including athletics and HSC,” she said.

Bendapudi reassured faculty senators that the Bobby Petrino buyout did not include “one penny” from the academic budget.

“I’m very pleased with the financial checks we’re putting into place,” she said. “It’s also important that we are bringing people in who understand the big picture – that it’s not a win-at-any-cost mentality.”

Finally, Bendapudi noted that UofL is making progress in fundraising.

“I feel much more optimistic today than a month ago. I am confident in the team we’re putting into place,” she said.

As far as fundraising goes, Brad Shafer, interim VP for University Advancement, said he is working to correct some major issues in the department, including lack of resources.

“There has been significant dysfunction in the advancement office and lack of activity,” he said. “For a university our size, we should have 70 to 75 development officers. When I came on board in July, we had 13.”

Shafer said donors are telling him that they’re not going away, they’re just waiting for conversations to happen again. Under his leadership, corporate foundation and planned giving is moving under a central function, and he is also adding six areas that didn’t previously exist, such as parents, international and women’s philanthropy.

“Phase one is filling out the leadership team so that every college has at least one senior development officer. Phase two is filling out those teams; so the Speed School, for example, should have four to five people,” Shafer said. “Phase three, we’re fully staffed for a capital campaign. Hopefully that will start in the next two years.”

Shafer would like to add development seminars that educate and coach faculty and staff on how to help with the fundraising process.

Provost Boehm also provided a report, reiterating how positive the SACS visit was. There are two searches underway, including School of Music dean and CIO.

Boehm said UofL’s participation in the Powered by Publics program, announced last month, is aimed at improving college access, closing the achievement gap and helping students earn a degree by 2025.

“We are going to focus on evidence for retention and success versus throwing everything at the wall and seeing what sticks,” Boehm said.

A committee has been formed to clean up the Redbook. Boehm said this hasn’t been done in about eight years.

“We need a clean set of policies to govern us,” she said.

The meeting opened with a memorial to Dr. Thomas Crawford, a chemistry professor who passed away on Nov. 1.

“He taught me every good thing I know about administration work,” said Professor Dale Billingsley.

Krista Wallace-Boaz provided the chair’s report, noting that Faculty Senate leadership will begin work with HR and possibly the ombudsman to create a “toolbox” for faculty members through mini trainings. Some of the topics will include academic bullying, having difficult conversations and mentoring.

Provost Beth Boehm has also asked the Faculty Senate to explore ideas regarding faculty/student mentorship program. The chair and vice chair, along with a subcommittee, will develop initial ideas for the program, aimed at improving retention rates. Wallace-Boaz also reminded faculty senators to recognize signs of students who may be in distress, .��

There were two Redbook items, including the first reading of revised unit bylaws for the Kent School of Social Work, and the second reading for revised unit bylaws for the School of Public Health and Information Sciences. The SPHIS changes were approved.

The SGA approved their budget and met with Provost Beth Boehm recently to work on retention initiatives. The group is also working to extend feminine hygiene products to all bathrooms across campus.

During the Staff Senate’s November meeting, John Elliott, VP of HR, provided an update on two policies that are under review, and noted that the university’s compensation process is dated and the office is working to update those. Staff senators also heard from Bob Knaster, executive director of Auxiliary Business Services, about the transition to Canon print services, and Police Chief Gary Lewis about his safety initiatives. .��

Reports from the Academic Programs, Redbook and Bylaws, Planning and Budget and Human Resources Advisory committees are . The Faculty Athletics Representative report is .

The next Faculty Senate meeting is Jan. 9 in Chao Auditorium from 3-5 p.m.

The budget includes $14 million for student-based initiatives, including $5 million for student recruitment, $5 million for student success and retention initiatives and almost $4 million for additional financial aid.

In-state undergraduate students will see a 3.5-percent tuition and fee increase, to $11,460 per year, which includes a 50-percent cut in the student athletics fee, from $50 to $25 per semester. In-state graduate students will experience a 3.6-percent increase, to $12,684.

UofL President Neeli Bendapudi stressed that officials worked to keep increases low and to direct additional funding to services and programs that benefit students.

The university also will experience a 5-percent cut to its general fund budget, which equates to a 1.7-percent cut to its overall budget. Deans, vice presidents and other campus leaders will determine how to make the cuts in their units.

“This budget is not ideal, but we have to work with the financial resources we have,” Bendapudi said. “We are focused on protecting and improving the education and the university experience for all our students.” 

UofL continues to deal with diminishing state funding, a huge budget deficit created by a previous administration and a push from the Southern Association of Colleges and Schools to improve its liquidity, or cash on hand.��The state appropriation for UofL dropped 5 percent, from $132.8 million to $126.7 million.

“I ask for your patience and support as we make changes to strengthen the university while dealing with our fiscal reality,” Bendapudi said in a recent note to faculty and staff.��Calling the current budget a “short-term fix,” she promised that long-term solutions will be developed with the students’ best interests in mind.��

The trustees also heard an update on the university’s financial picture from interim CFO Susan Howarth. Howarth says UofL’s cost cutting efforts are working and there is “good news” in the numbers. UofL is meeting its budget targets and on pace to meet its goal of spending $10 million less than the 2016-17 fiscal year in each of three categories: compensation, procurement and other cost savings.

“We feel very comfortable about meeting these goals,” Howarth said.

Howarth says first quarter revenues are running ahead of last year’s and a slight drop in the size of the freshman class has been offset by an increase in enrollment at the Brandeis School of Law.

The board also took two actions designed to address the two remaining concerns of the Southern Association of Colleges and Schools, UofL’s accreditation agency:

• Approved memoranda of understanding between the university and both the UofL Real Estate Foundation and Pediatric Medical Office Building, Inc.
• Approved a resolution in support of administrators currently filling interim roles

Also, faculty members Susan Jarosi and Rob Keynton appeared before the full board expressing concerns about the board’s plan to conduct a closed search for the next UofL President. Jarosi and Keynton head the Presidential Search Faculty Consultation Committee and laid out reasons the board should conduct a more open search process, reveal the three finalists and bring them to campus for meetings with faculty, staff and students before a final decision is made. Due to time constraints there was no discussion following the presentation, but board chair David Grissom invited the faculty members to appear at the next meeting for a question and answer session.��

Senate committee elections were held, and an action item was approved to add a graduate certificate in biostatistics. All courses already exist as part of the master’s program, so no additional resources are needed to launch the certificate program.

Chair Enid Trucios-Haynes presented highlights from the chair’s report, which is available .

She noted her efforts urging board of trustees’ chair David Grissom to advise the campus community about the planned framework for the presidential search process, which he has reported will be a closed search throughout the process. The BOT has received numerous responses to his proposal, including from faculty, chairs, deans and the AAUP.

The Faculty Senate Executive Committee also responded and, after a lengthy discussion, it was motioned and approved that the senate endorse the XC’s letter, which reads:

Dear Members of the Board of Trustees,

The Executive Committee of the Faculty Senate is thoroughly opposed to the decision of the Board of Trustees to conduct a closed Presidential search. We feel that severely limiting the input from faculty and other constituents will damage the efforts to cultivate greater transparency, undermine the importance of shared governance, and negatively impact the future working relationship and trust between the faculty and senior leadership.

We believe that more input from constituents, particularly faculty, will assist the search committee throughout the process by providing important institutional history, and thus result in a better outcome. This more inclusive representation would also help restore the confidence of the University’s donors. We urge the Board to reevaluate the search process, and open the search once finalists are selected, allowing faculty, staff and students to interact on campus with each of the finalists. We also strongly recommend that the search committee be expanded to include a broader representation of campus and community constituents, along with a robust engagement of the .

Collaboration is essential to restoring the morale of the faculty, and greater collaboration will serve to unify the administration, students, staff and faculty so that we, the community of the University of Louisville, can focus on moving forward with our values, goals and initiatives.

Sincerely,

The Executive Committee of the Faculty Senate & The Faculty Senate

Todd Mooradian, dean of the College of Business, was introduced to the Senate. He has been in the post for a little less than a year and provided some of his background, including his proximity to higher education throughout his entire life, growing up near the campus of the University of New Hampshire.

Mooradian outlined three of his priorities in the decanal role, including promotion of a culture of inclusiveness, innovation and efficiency.

“I want to the school to embrace and celebrate each individual and invest in their success wholeheartedly. We’re also spending a lot of time thinking about value propositions so the community embraces us more,” he said. “We’re working hard to engage the community and finding ways to contribute to Louisville, Kentucky and the world. I am so pleased to be a part of an institution that gives students a public service opportunity.”

Report: Interim president Dr. Greg Postel provided an update on a variety of issues, including SACS. Last week, SACS sent six visitors to campus to gauge UofL’s progress in addressing the organization’s concerns that initiated probationary accreditation status last year. Specifically, SACS representatives were looking at 10 issues and UofL was cleared on eight of them.

The two that remain a concern have to do with the university’s affiliated entities and the qualification of administrators.

Postel said a memorandum of understanding is being created to define UofL’s relationship with the UofL Real Estate Foundation. He added that many searches are underway for administrative positions and he hopes to name a few permanent positions soon to help with the second concern.

More information about the SACS visit is .��

Postel noted that September marked UofL’s biggest research month in the history of the institution, led by Dr. Roberto Bolli’s $13.8 million grant from NIH to study a promising new heart failure treatment.

He pivoted to donor activity, which he described as “good, surprising,” and noted that the Advancement Office is working on enhancing stewardship efforts and programmatic support.

Postel provided an update on UofL Hospital, describing it as “busy, busy, busy.”

“The hospital is full. It hired 108 nurses in two months. Prior to July, it couldn’t hire a nurse to save itself, so that just shows the kind of work UMC is doing,” he said.

Postel discussed the budget, noting that 2016-17 is done and favorable. It will be available next week. The 2017-18 budget, meanwhile, is balanced, including the $48 million deficit.

“We’re right on target in every category,” he said. “I’m obsessed with finding new revenue streams. My biggest worry right now is how much education could be a victim to a decrease in state appropriations. It’s not a matter of ‘if,’ it’s a matter of ‘how much.’ But it’s reason for us to get motivated to find ways to stand on our own,” Postel said. “This is why we’re focusing on priority setting and hosting open forums to get faculty and staff to help us understand our priorities.”

Finally, Postel touched on the athletics scandals taking place, nothing the NCAA appeal for the prostitution scandal is in process and expected in mid-December. He said he is not optimistic because of the more recent FBI allegations against the men’s basketball team.

“The real issue here is reputational. To see another hit is painful,” he said. “There is nothing good about this (FBI) story. We are working very hard to stay current about the information as it comes in. The university is not a target in this, we are viewed as a victim. But that means we will have financial and reputational exposure again.”

Postel said he received about 3,000 emails last week about this scandal via email.

“It’s important to note that none of the decisions being made are personal. They’re all being made to protect the university,” he said.

Report: Interim Provost Dr. Dale Billingsley provided a brief update that will be available online soon. He mentioned the diversity plan is now available online and individual units will be required to work on their own plans soon. He also noted that there have been requests for more support for tuition revenue sharing plans for new programs and his office is working on getting a single template launched to tuition revenue sharing plans are transparent.

Report: Brian Bigelow, Title IX and ADA Coordinator, introduced himself to the Faculty Senate, having been in his position for the past 15 months. He provided an overview of what the university’s responsibilities are in response to last month’s changes to Title IX, introduced by Secretary of ����ֱ�� Betsy DeVos.

“There are new regulations, but we don’t know what they say yet and we don’t know how long it will take for them to go into effect,” he said. “In the meantime, it doesn’t affect UofL specifically. We’re in a holding pattern, but we’re alert to changes coming down the pike.”

Other reports are available online:

The next Faculty Senate meeting is Nov. 1, 3-5 p.m. in Ekstrom Library’s Chao Auditorium.

“It’s important we have an active dialogue to make sure we are understanding what it is we want for this university going forward,” he said.

Postel opened the forum with an introduction of a new social media campaign, #WeAreUofL, launched last week in the midst of the news about an active FBI investigation into the men’s basketball program.

“What this means is this is our university. We are tough. We are resilient. We’ve gotten through all types of problems and we’ll get through these,” he said.

Updates on SACS and athletics

Prior to introducing the panel of UofL leaders, Postel provided updates on the SACS accreditation process and the latest news from athletics. Last week, SACS sent six visitors to campus to gauge UofL’s progress in addressing the organization’s concerns that initiated probationary accreditation status last year. Specifically, SACS representatives were looking at 10 issues and UofL was cleared on eight of them.

The two that remain a concern have to do with the university’s affiliated entities and the qualification of administrators.

Postel said a memorandum of understanding is being created to define UofL’s relationship with the UofL Real Estate Foundation and the Pediatric Medical Office Building to close the first loop. He added that many searches are underway for administrative positions and he hopes to name a few permanent positions soon to help with the second concern.

More information about the SACS visit is .��

On the athletics side, Postel said the “bombshell” news about the FBI investigation has consumed a lot of time and he is very concerned about how it is going to play out.

“I’m not going to downplay this. I love this place and it makes me sick that we have to continue to dodge things that hurt our reputation like this,” Postel said. “There is a lot that we still don’t know. It is an ongoing criminal investigation.”

Postel added that he is working to make the best decisions to protect the university and its reputation and that these decisions are not being made in a vacuum.

“There are no personal issues here. I am having many thoughtful conversations with the boards and we are approaching these issues as a team to acknowledge what is necessary to protect the University of Louisville,” he said.

2020 Plan

Postel then pivoted to the panel, brought together to examine UofL’s progress and discuss ideas for the future related to the five pillars in the 2020 plan.

• ����ֱ��al excellence: Interim Provost Dale Billingsley led the conversation on educational excellence, soliciting ideas on how to best increase enrollment while simultaneously increasing our graduation rate.

Professor Al Futrell suggested using distance education as a strategy to do both: “Distance education has played a major role in helping us get to where we are now. We need more of a focus on it as a legitimate strategy,” he said.

It was also suggested to increase a focus on our international student program. The graduation rates of international students are higher and “if we provide them with a good undergraduate experience, they may be more likely to choose UofL for their graduate studies.”

A concern was raised about who is going to teach all of these extra students if we hit ambitious enrollment goals in the next few years, since faculty resources are already compromised.

A suggestion was made to create a committee to focus on innovative ways to retain and develop adjunct faculty, since about 70 percent of classes are taught by adjuncts.

• Research, scholarship and creative activity: Bill Pierce, EVP for Research and Innovation, noted the dramatic increase in research output from 1997 through 2007-08 and said if UofL would like to continue in the top tier of research institutions, a business plan needs to be devised. He added that the IPR site is a major opportunity for the university.

“Most research institutions in metropolitan areas would kill to have 40 acres of land contiguous to their engineering school,” he said.

It was also suggested that the university focus more on undergraduate research as much as graduate research. This would overlap other priorities, such as educational excellence and recruitment of faculty.

• Diversity, opportunity and social justice: Mordean Archer-Taylor, vice provost for diversity, said there is a compelling interest in diversity, as it intertwines with all of the pillars. Also, a diversity plan has been approved by the CPE and the board of trustees and will be online soon. She noted it is a live document and is focused on the diversity of students and our workforce, as well as cultural competency programs.

• Community engagement: Ralph Fitzpatrick, interim VP of community engagement, noted that UofL is a national leader in community engagement. His goal is to become a national model. He provided a brief overview of some of successes in this area, including the Brandeis Human Rights Advocacy Program, which was recently named as an exemplary designee by the Engagement Scholarship Consortium and the Association of Public and Land-grant Universities as an outstanding model of community engagement. Fitzpatrick also said UofL is in the midst of helping with the major revitalization of the Russel neighborhood in West Louisville, and is heavily involved in health care projects, especially for indigent communities.

“We are a major player in helping to strengthen regional economies and revitalize neighborhoods. We are a national leader. I believe we can become a national model. We stand ready,” Fitzpatrick said.

• Creative and responsible stewardship: Finally, Bryan Robinson, interim vice president of advancement, said his department is getting back to the basics of accountability and transparency. The team is improving the information flow to donors, including annual reports, and it is communicating more closely with deans and faculty to understand unit priorities and how endowment should be spent. The department created an office of stewardship to fulfill this objective.

Postel concluded the forum with a financial update, noting that UofL finished ahead of budget for 2016-17, and is on budget for 2017-18.

“We are just scratching the surface today,” Postel said. “We will continue to obtain input and spend time and consideration to decide what makes sense and find resources to make it possible.”

.��

The senate approved the qualifications and qualities of an A+ University President, including:

• Visionary with a focus on strategic planning
• Terminal degree
• Commitment to academic excellence
• Experience in academic leaderships
• Experience with demonstrated knowledge of sources of income, revenue and managing fiscal affairs.

The full list is .��This list was pulled from feedback from all staff employees via a survey on Survey Monkey.

Another ad hoc committee created a new mission statement for the Staff Senate:

“The University of Louisville Staff Senate, as a partner in the Shared Governance structure, is an advocate for the interests and concerns of staff, in support of the University community and its mission.”

The statement was approved.

Report: Dr. Greg Postel, interim president

Postel opened his PowerPoint presentation with an overview of the UofL Hospital/James Graham Brown Cancer Center management transition, which was completed without incident July 1. Postel said 2,500 employees now work for UMC, which has a “strong” balance sheet and a balanced budget. Also, employee enthusiasm and engagement over the transition is “profound.”

“There were a number of people outside cheering when they were changing the signs. They’re excited about the opportunity to manage their hospital,” he said. “This is a real economic engine for the University of Louisville. This is one example of how to bring into our control and asset and a growth opportunity versus a cut.”

Postel provided a quick overview of the four construction projects underway – Belknap Academic Building, Swain Center renovation/expansion; Pediatric Medical Office Building; and Papa John’s Cardinal Stadium.

“I’m most excited about the academic building. It will include all of the things that go into making sure our students excel,” he said.

All projects remain on track for completion about a year from now.

Postel wanted to reiterate to the Staff Senate that the administration is not immune to the budget issues, noting that a number of positions will go unfilled, such as his chief of staff and the Chief Administrative Officer.

“The office of the president is down to four people. We had over 20 a year ago,” he said.

There are a number of appointments and searches underway:

• President, interim, Board of Trustees process
• Provost, interim, no search plan
• EVPHA, interim, no search plan
• Chief of Staff, will not be filled
• CAO, will not be filled
• VP of Advancement, interim, no search plan
• VP of Community Engagement, interim, no search plan
• VP of HR, interim, no search plan
• CFO of HSC, national search completed
• CFO of Belknap, interim, national search underway
• COO, interim, under consideration
• Ombudsman, search conducted by provost
• VP, ERM, under consideration

Postel provided an update to UofL’s SACS accreditation status, noting the leadership had an “excellent” meeting in June with SACS. Postel and a few other administrators are going to visit SACS in Georgia to talk about anything extra the university can do to ensure the September site visit is successful.

“It is a way for us to be proactive and for us to get our faces out there,” he said.

One of his biggest concerns is the financial stability of the university.

“SACS will want to see that we have a balanced budget. This institution has not had a balanced budget in years and they’re going to make sure we’re sticking to this. I’m very focused on this. “Now is not the time to be lax on expenses and revenue,” Postel said.

Postel said he has received a lot of feedback from donors and members of the public about the recent NCAA ruling about the men’s basketball team.

“This is frustrating, but it’s a part of our life and we have to get past it. There were four sets of findings and they were not appealing. This is a bad story and we’re not making excuses,” he said.

UofL is not appealing any of the findings.

“We want to send a message to the community loud and clear that we’re not trying to make light of anything that happened,” Postel said.

UofL is, however, appealing two of the penalties: vacation of wins/titles and financial claw back from conference proceeds.

“It’s hard to find precedent with these penalties. We are appealing these two with a ‘non-emotional’ justification. We feel that there were errors made in the way these penalties were decided. Some of the players ended up not even playing for UofL, for example,” Postel said. “We have to balance being fair but accepting our punishment.”

The appeal process will run at least until the fall, when the next hearing is scheduled.

Postel said there is not much to update on the UofL Foundation’s forensic audit. The board of trustees continues to study the report and a detailed discussion will take place at the next board meeting, July 20. This, he said, will kick off additional conversations.

The Jewish Hospital/Frazier Rehabilitation Center are on the market. These are KentuckyOne Health’s largest facilities and UofL owns the ground and much of the programming that takes place there (about half of the admissions).

“We’re trying to understand what we can do that produces no-to-minimal risk for the university but is in the best interests of the community because these facilities provide a big safety net for many, many people,” Postel told the Faculty Senate a week prior. “Two of the three busiest ERs in the city are for sale and as a service we can’t look away, but we can’t do something at the peril of the university.”

Finally, UofL will “reassess” the current, “extremely conservative” budget in the fall to see if we can change strategies.

“Will we have to be as harsh about hiring? Procurement? We should be able to know more by then. Nothing is going to be easy or popular,” Postel said. “But we are busy trying to make this as painless and short term as possible. I am also confident we are going to have donors back again and soon. We’re all in this together.”

Postel conducted a Q&A after his presentation, fielding many questions about the 6-percent procurement tax that has been proposed to each unit to help reach a $10 million procurement savings.

“I think it’s for the birds, but it’s a step that is being taken to kick off this savings effort. It may very well morph into something different, but this is a start,” Postel said.

Postel added that the procurement tax will be assessed soon and encouraged faculty and and staff to cut back on purchases and buy only what is needed.��

Report: Jeanell Hughes, AVP of HR

Hughes said the HR Tours launched in the spring have been well attended. HR is currently developing reports on attrition so we will know where we are month to month. The department is also developing a compensation report.

A program is being developed for any RIF employees that allows them to put their resume into a pool to be notified should any opportunities come up across campus. It is an opt-in program.

Hughes noted that July 21 is her last day with UofL.

Report: Faculty Senate

Dr. Bob Staat provided the Faculty Senate report from the week prior, which is . Staat is retiring Dec. 31.

“It has been a great pleasure serving in this role. You learn what’s really going on at this university with this group,” he said.

Chair Will Armstrong provided the Staff Senate Chair’s Report, also .��

Also at the meeting, new senators were welcomed and committee reports were provided, including �����Ի� .��

The treasurer’s report indicates that there is $2,347.53 in the general fund as of the end of May. The SHARE fund is $14,712.47, and the tech fund is $1,674.

The Staff Senate will not meet in August. The next meeting is Sept. 11 at 2:30 p.m. in Chao Auditorium.

Trucios-Haynes presented a statement of the executive committee for endorsement. It reads:

“The forensic audit of the University revealed significant issues regarding administrative transparency. The Executive Committee of the Faculty Senate continues to strongly encourage the University of Louisville Foundation to enhance faculty involvement in board governance by creating a permanent, ex-officio voting Faculty Representative on the Board of Directors. This increased faculty participation will strengthen the commitment to transparency and accountability of the Foundation’s business. We believe that robust shared governance at the University of Louisville Foundation might have led to greater oversight because of the unique perspective and investment faculty have in University matters.”

Trucios-Haynes put the endorsement of this statement up for a vote and it was passed unanimously.

She also said there are a number of RFP committees underway, including banking, print services and employee assistance program, and the faculty consultation committee to the presidential search held its second meeting last month.

The ad hoc budget committee also recently met for a second time to discuss strategic initiatives and the widespread impacts of the hiring freeze/frost. Trucios-Haynes said a major concern is the role faculty members play when there are less faculty available to teach, and the committee’s priority is to ensure this does not become the “new normal.”

Report, Dr. Dale Billingsley, interim EVP and Provost

Billingsley reported that the ombudsman search will conclude soon, and Dr. Bob Staat will continue in that role until Aug. 1 to ensure a smooth transition.

The Law School dean search has concluded and Colin Crawford will start Dec. 31. Professor Lars Smith will fill in until Crawford is on campus. Billingsley also reported that the Law School is expecting 150 students for the fall semester, about 60 more than last year.

The nursing and Speed dean positions have been posted and the goal is to have those searches underway in the fall.

SIGS Dean Beth Boehm and School of Music Dean Christopher Doan are up for the 5-year reviews.

Billingsley also reported that the Board of Trustees approved Redbook changes in its June meeting to bring it into compliance with SACS’ expectations. The scope of SACS’ September visit to campus has been expanded to address “financial stability issues,” in light of the Foundation audit.

The budget advisory committee continues to review requests for general funds and is tracking all open positions to ensure UofL hits a $10M savings target. There are five areas exempt from the hiring freeze/frost:

• Instructional impact
• External compliance and internal policy
• Safety and Security
• Essential patient care
• Contractual obligations

Billingsley noted there has been some confusion about funding sources, adding that general funds represent about 40 percent of the captures from attrition.

Enrollment is about 300 students behind this time last year – equating to about $3 million in revenue – though professional and graduate schools are doing well. Other institutions are reporting lower enrollment, too, with the University of Kentucky down about 7 to 8 percent.

“All of the incoming freshmen are excited and eager to be here. I’m hopeful that positive energy will be enough to overpower some of the negative stuff the staff and faculty are feeling,” Billingsley said, noting that those feelings are justified given the current situation. “The enthusiasm is there, but people are perplexed. Hopefully the positive energy from the incoming freshmen will help sustain us through the hard times. The bad times will end.”

Billingsley concluded his report by discussing his concern for the Trump administration’s federal aid plan, which primarily targets PELL and SGO grants.

“This is the financial aid these students use to get out of the poverty cycle,” he said. “If the budget does not change, we will have to adjust to reinforce the closing of that socio-economic gap.”

Report, Lee Smith, interim COO, and Mark Watkins, AVP for Business Services

Smith reported that his department is tasked with helping to find $20 million in savings – $10 million of that from the operational budget and $10 million from procurement.

From the operational budget, Smith said a variety of opportunities have been identified, such as IT costs (for example, paying for licenses that were not being used), energy management and supply costs. There are a handful of RFPs in progress, including managed print and wired and wireless internet that should also trim costs.

For procurement, Smith said we spend about $320 million to external companies. He said we will recoup some savings en route to that $10 million goal in the next year by applying a 6-percent surcharge to procurement activity at units.

Watkins added that there are 10 prioritized areas to find procurement savings, including computers, software, furniture, catering services and more.

“Our $3.2 million catering services bill is dispersed through many providers. The goal is to get that down to six preferred caterers,” he said, as an example.

A task force has been created to help with this initiative.

An extensive Q&A followed their report, with many expressing concern over the “procurement tax.” Smith said, “Our judgement is this is the best path forward for us right now.”

Dr. Greg Postel, interim president

Postel opened his PowerPoint presentation by stating that there is so much going on right now, “I don’t think it’s a time when over communication is possible.”

His first slide provided an overview of the UofL Hospital/James Graham Brown Cancer Center management transition, which was completed without incident July 1. Postel said 2,500 employees now work for UMC, which has a “strong” balance sheet and a balanced budget. Also, employee enthusiasm and engagement over the transition is “profound.”

“There were a number of people outside cheering when they were changing the signs. They’re excited about the opportunity to manage their hospital,” he said. “This is a real economic engine for the University of Louisville. This is one example of how to bring into our control and asset and a growth opportunity versus a cut.”

Postel provided a quick overview of the four construction projects underway – Belknap Academic Building, Swain Center renovation/expansion; Pediatric Medical Office Building; and Papa John’s Cardinal Stadium.

“I’m most excited about the academic building. It will include all of the things that go into making sure our students excel,” he said.

All projects remain on track for completion about a year from now.

There are a number of appointments and searches underway:

• CFO, national search underway
• CAO, position will not be refilled
• COO, proposed internal search
• AVP HR, an interim appointment will be followed by a search
• VP for advancement, an interim appointment will be followed by a search
• VP for community engagement, an interim appointment will be followed by a search
• HSC CFO, complete
• Director of the James Graham Brown Cancer Center, complete
• Brandeis School of Law dean, complete
• School of Nursing dean, national search to start in the fall
• Speed School dean, national search to start in the fall
• Ombudsman, search concluding

Postel provided an update to UofL’s SACS accreditation status, noting the leadership had an “excellent” meeting in June with SACS. Postel and a few other administrators are going to visit SACS in Georgia to talk about anything extra the university can do to ensure the September site visit is successful.

“It is a way for us to be proactive and for us to get our faces out there,” he said.

One of his biggest concerns is the financial stability of the university.

“SACS will want to see that we have a balanced budget. This institution has not had a balanced budget in years and they’re going to make sure we’re sticking to this. I’m very focused on this. “Now is not the time to be lax on expenses and revenue,” Postel said.

Postel said he has received a lot of feedback from donors and members of the public about the recent NCAA ruling about the men’s basketball team.

“There were four sets of findings and they were not appealing. This is a bad story and we’re not making excuses,” he said.

UofL is appealing two of the penalties: vacation of wins/titles and financial claw back from conference proceeds.

“It’s hard to find precedent with these penalties. We are appealing these two with a ‘non-emotional’ justification. We feel that there were errors made in the way these penalties were decided. Some of the players ended up not even playing for UofL, for example,” Postel said. “We have to balance being fair but accepting our punishment.”

The appeal process will run at least until the fall, when the next hearing is scheduled.

Postel said there is not much to update on the UofL Foundation’s forensic audit. The board of trustees continues to study the report and a detailed discussion will take place at the next board meeting, July 20. This, he said, will kick off additional conversations.

The Jewish Hospital/Frazier Rehabilitation Center are on the market. These are KentuckyOne Health’s largest facilities and UofL owns the ground and much of the programming that takes place there (about half of the admissions).

“We’re trying to understand what we can do that produces no-to-minimal risk for the university but is in the best interests of the community because these facilities provide a big safety net for many, many people,” Postel said. “Two of the three busiest ERs in the city are for sale and as a service we can’t look away, but we can’t do something at the peril of the university.”

Finally, UofL will “reassess” the current, “extremely conservative” budget in the fall to see if we can change strategies.

“Will we have to be as harsh about hiring? Procurement? We should be able to know more by then. Nothing is going to be easy or popular,” Postel said. “But we are busy trying to make this as painless and short term as possible. I am also confident we are going to have donors back again and soon. We’re all in this together.”

There is no Faculty Senate meeting in August.��

Postel opened his presentation discussing the long-awaited forensic audit which, at that time, had not yet been released. He has since released a new statement, .��

The audit, he said, was expensive and comprehensive, but “we knew it’s what we had to do to move forward.”

“A lot has changed so we won’t have to worry about recurrences. We have done a lot of preparatory work to prevent this from happening again, that is the good news,” he said. “We will continue to be transparent on what did occur and how we are making sure these do not recur.”

In addition, this week (Thursday), Postel anticipates the board will approve the 2017-18 budget. There is one change to this work and that is an immediate 3-month hiring freeze. The decision on this was abrupt because we fell short of enrollment projections and attrition expectations.

“We projected a 400-student increase for retention and enrollment and it looks like we’ll be closer to 200,” Postel said, adding that we are losing second- and third-year students.

He also received a new letter from SACS noting that the site visit in September will be expanded. SACS wants to fully understand the nature of the relationship between the UofL and UofL Foundation, which is “no surprise,” according to Postel.

“They have a lack of understanding of $67 million in transactions that happened without the board’s approval. That’s the bad news. The good news is that large portions of this have been paid back and we have documents in place to prevent this from happening again,” Postel said. “But they want to see that.”

Another issue brought up in the SACS letter that “concerns Postel the most” is the university’s ability to demonstrate financial stability.

“This is the biggest reason institutions get in trouble with SACS,” he said, noting that UofL had an operating loss of $21 million in 2014-15 and of $46 million in 2015-16.

“SACS made it clear their intent is to study other revenue (in addition to unrestricted cash). But the foundation is tapped out and revenue next year is a fraction of what it was,” he explained. “To continue to take operating losses is not an option for us. There are times we have to do things to protect the university and the best way to deal with this is to hit the brakes and clamp down on hires and show we’re being overly conservative.”

Postel said shared governance will remain a priority through continued budget work.

Postel also said the NCAA ruling about the basketball program is expected this week.

“We have been honest. We have apologized. We have tried not to make excuses,” he said. “We’ll see if they accept our self-imposed penalty or if they add to it.”

Finally, UofL Hospital is transitioning from KentuckyOne Health to UMC, with a July 1 completion date. Postel said the hospital is busy and the nursing shortage is getting better and “people are in very good spirits about this (transition).”

Postel closed by talking about his recent trip to Washington, DC, where he was able to meet with all of Kentucky’s elected officials.

“They showed me uniform support and it was encouraging to establish dialogue with them,” he said. “They all wanted to talk about the sustainability of the university and are interested in the research and other work we’re doing.”

Interim provost Dale Billingsley also spoke to the Faculty Senate. He said there are exceptions to the hiring freeze: the ombudsman role, as it is required in the Redbook; and the Speed and Nursing dean searches. He stated that the Budget Advisory Committee will review additional requests for exceptions.

He also talked briefly about the QEP program that was developed as part of the re-accreditation process to help second-year students find their major.

“The intention is to address that group of students across the board through a range of student services and to keep them in an area where they both have the capacity for and interest in,” he said.  This program is designed to assist these students and address retention issues.

A report was provided by Dr. Bob Staat, interim ombudsman. UofL hopes to have someone permanently hired in that role by July. During his stint, Staat reported 185 interactions – 60 percent faculty; 40 percent staff. The only two units without an interaction with his office were SPHIS and law. Staat’s full report is .��

Cedric Powell, law professor and Faculty Grievance Officer, also provided a report, outlining the dispute resolution process. He noted that from September 16 through June 7, there were 12 faculty grievances, including three “type 1” disputes and one “type 2” dispute. His full report is also .��

Enid Trucios-Haynes provided the Chair’s Report, including the announcement that the Faculty Senate Executive Committee will focus on addressing the issues before the Board of Trustees’ new ad hoc committee on tenure and nepotism. She also introduced a proposed statement of the Faculty Senate, unanimously adopted, to reiterate the importance of shared governance in light of this new committee. It reads:

“The Faculty Senate of the University of Louisville asserts that it is critically important to have broad faculty input, consultation, and advice on all matters related to tenure and promotion. Faculty primacy in this area is long recognized as vital to protect academic freedom.

“On May 18, 2017, the Board of Trustees created an Ad Hoc Committee on Tenure and Nepotism Policy to review current tenure policies and practices. The principles of shared governance require a process for wide faculty involvement, recognizing the summer workload for faculty on ten-month contracts who engage in research, scholarship and related work during June and July, often away from campus. Additional faculty groups should include tenured, tenure-track, term and part-time faculty, representing a wide range of programs from basic sciences to fine arts, as well as the AAUP chapter at UofL. We propose that the Faculty Senate Executive Committee, comprised of elected representatives from nearly all of these groups, provide this essential consultation.”

Trucios-Haynes said the chair of the Board of Trustees has assured her there will be an opportunity for all constituencies’ input for next steps.

Staat also provided an update on the Council of Postsecondary ����ֱ��, as he serves as part of the tuition work group. He gave a PowerPoint presentation on the cost of tuition, which has remained relatively unchanged throughout the years even as state support has decreased. Kentucky is one of only seven states that has decreased its state support for higher education.

The only other report provided at the June 7 meeting was by the executive committee and it is .��

The next meeting is July 5 at 3 p.m. in the Chao Auditorium of the Ekstrom Library.

The $1.238 billion budget includes $512 million in general funds, which support most of the university’s instructional and operational activities. Those funds come primarily from tuition and fees and from state appropriations. Non-general funds, primarily produced through affiliated corporations such as the UofL Research Foundation, the UofL Athletic Association and the UofL Foundation, will total about $726 million.

The budget addresses four priorities:

• Resolving a structural imbalance in the operating budget. The budget emphasizes efficiency in administrative operations, trimming travel expenses and implementing a hiring “frost” to more closely scrutinize the need to refill vacant positions.
• Keeping college affordable. The budget keeps tuition flat for all students and increases overall financial aid by $1.3 million. It also includes $2.5 million for the Credit for Credits program, in which students who complete at least 30 hours in an academic year receive a $526 credit toward the next year’s tuition. Students in the program will pay less in 2017-18 than they did last year.
• Strategic allocations. Using a $12 million reallocation pool from a 3 percent across-the-board budget cut in the past year, the university will direct funding toward targeted areas including academic quality and student recruitment.
• Establishing a firm financial foundation for future years. The budget includes a revised forecast of revenues and expenses, as well as savings realized through administrative efficiencies and capture of vacant salary lines.

Postel noted that while the budget is tight, it will enable the university to continue moving forward.

Interim CFO Susan Howarth told the board that the university has taken actions to offset a projected $48 million shortfall in 2017-18. Those actions included reducing operational costs by $9 million to $10 million, realizing $10 million in efficiencies and economies of scale in the university’s procurement practices, saving $10 million through the hiring “frost” and using $17 million in one-time funds from the university’s partnership with KentuckyOne Health. The KentuckyOne funds will be replaced through operational efficiencies as a result of the transition of management of University Hospital and the James Graham Brown Cancer Center to University Medical Center.

Also at the meeting, Kentucky Council on Postsecondary ����ֱ�� President Robert King provided an orientation session on board membership. King stressed that trustees’ loyalties must lie with the institution rather than with any particular university leadership. He also weighed in on UofL’s current SACS probation, stating that he is “confident that all the things you’re doing … will take you off probation.”

In other action, the board approved:

• Creation of an ad hoc committee on tenure and nepotism policy
• Construction of a television production studio. Athletics will fund construction of the $8 million facility, which is required as part of UofL’s membership in the ACC
• A long-term ground lease and development of the Churchill Park property near the Lynn Soccer Stadium. The property will be used for soccer practice fields.
• A motion to empower Postel to negotiate terms of a revised Yum! Center lease with the Louisville Arena Authority.

Elections

Election results for Faculty Senate officers are as follows:

Enid Trucios-Haynes, Chair

Krista Wallace-Boaz, Vice Chair

Roger Bradshaw, Executive Committee

Academic Programs Committee: Rob Barker, Dno Demuth, Jasmine Farrier

Committee on Committees and Credentials: Dwayne Buttler, Susan Peacock

Part-Time Faculty Committee: Tim Crawford and Mary Makris (tie)

Planning and Budget Committee: Reg Bruce, David Owen

Redbook Committee: Beth Willey

Academic Technology Committee: Murali Ankem

Parking Advisory Committee: Tom Simmons

Staff Senate Rep: Avery Kolers

Student Conduct Hearing Board: Elizabeth Grossi, Martin Hall

Student Grievance Committee: Lynn Boyd, Robert Detmering

Regular meeting

Dr. Billingsley provided a number of updates to the Faculty Senate, including news that the 2018 budget is where it needs to be at this time. UofL will host three public workshops in May prior to the next Board of Trustees meeting, which will allow for feedback before the full, final budget is presented to the board in June.

Each unit has and will continue to be informed monthly of their progress on deficit reduction. The budget committee has been expanded to include Faculty and Staff Senate representation, among others.

The search for a new ombudsman has been reduced to three finalists. A final recommendation will be made to the provost on May 17.

Dean searches continue as well. Colin Crawford has been named the new dean of the Brandeis School of Law, pending board approval, and will begin Jan. 1. Law professor Lars Smith will fill the role in the interim. A new search for the Speed School dean will begin in the fall with “an aggressive timeline.” Gail DePuy will take on the acting dean role in the interim. Finally, the School of Nursing dean search will begin in the fall.

SACS work, according to Billingsley, is moving forward as usual, with nothing new to report.

From the enrollment front, applications and admissions are up 11 percent compared to last year. Students, surveys have shown, are not deterred by the SACS accreditation status. Underrepresented minority student numbers and mentored scholarship numbers are both strong at this point.

UofL is currently exploring a winter online session, but there is no follow up news to report at this time. The University of Kentucky has such a program and has generated thousands of registrations throughout the past few years.

There are two policies faculty should be diligent about due to either SACS or federal requirements – posting syllabi on Blackboard prior to the course and posting book orders before the first day of registration.

“These aren’t just a requirement by SACS and the federal government. They’re also a benefit to students,” Billingsley said.

Finally, Billingsley encouraged faculty to attend graduation next week, stating it is “an important year for students to know their teachers are there to support them.”

Dr. Postel opened his remarks by expressing appreciation to faculty for another successful semester. He also provided an update from the latest CPE meeting in Frankfort, including the growing recognition of deferred maintenance on state campuses across Kentucky, estimated to be around $8 billion.

“We have been giving attention to that at UofL and have been looking at ways to put in requests to the state to consider a bond issue of some kind to help defray the cost of deferred maintenance on this campus,” Postel said. Other campuses agree and they are looking at perhaps a larger, coordinated request for a bond issue that is partly, “hopefully,” funded by the state, and partly funded by donors.

“This is the state’s property and at some point they have to understand how it’s going to be maintained, so I thought that was an interesting conversation,” Postel said.

Another point was brought up about the state’s budget, which was about $113 million behind what was anticipated for Q3, or just over 1 percent, for the general funds budget. Things could change for Q4 to get the budget back in line. However, if that doesn’t happen, the governor has the ability to use about 25 percent of the rainy day fund to heal the general funds shortfall. This would still leave a deficit of about $60 million, which could potentially threaten the higher education budget. Postel said they will be watching this closely and will know more in the next few weeks.

Postel noted some positive news from UofL, including production of the state’s only Truman Scholar, the multiplicity of Fulbright Scholars and the success from the athletics programs. Additionally, he noted success with recruitment for hiring the law school dean, the new CFO of the HSC campus and the new director of the James Graham Brown Cancer Center.

Coming up, Postel expects May and June to continue to be busy, courtesy of the initial budget presentation to the Board of Trustees on May 18, and with two “big announcements” coming out within the first two weeks of June – the NCAA ruling on the men’s basketball team and the UofL Foundation forensic audit report.

“Both of these will attract a lot of media attention regardless of the outcomes,” he said.

Also, June will mark the final days for Kentucky One Health’s management of UofL Hospital, which will revert back to UMC management on July 1.

“This is a really big deal,” Postel said. “There are literally hundreds of people working on this transition. It is a good thing for UofL. Management will be focused on gaining efficiencies like never before and profitability will be able to better sustain all of our activities on the HSC campus.”

Postel also touched upon the budget process, saying it is “starting to get to a point where we’re about ready to conclude and begin presentations for the board for their deliberations and hopefully approval.

“It has been a tough process, but we have had incredible involvement and a lot of help from deans and faculty and staff on both campuses.”

Postel said everyone involved in the process has been focused on minimizing the impact on employees and programming. Opportunities have been located within the operations of the university, where we have modernized and become more efficient, which has saved us close to $20 million for the 2017-18 year.

“The beauty of this is it is done without the loss of jobs, it enhances functionality, and it also saves us money in the next year and also in the ongoing years,” Postel said. “We are now trying to create a budget not just to get the budget approved, but to build on the budget in future years.”

Postel added that we are holding firm on avoiding mass RIFs and programmatic closures and that the hiring frost may not be as widespread as initially predicted.

“We don’t want to ever live through this kind of process again. This is not the kind of process that builds long-term stability and growth,” he said. “We now have to sharply turn our focus to revenue generation and that will be through the medical complex, a better and larger UofL hospital, through a revised approach to development, and also a focus on a strategic plan of future.

“We’ve lived through this process and we’re going to be OK, but I don’t want anybody to think I’m happy about having to go through this.”

Other business

The Faculty Senate meeting also included the Redbook Committee’s second readings of the Speed School Personnel Policy and Procedures and the Kent School Bylaws, both of which passed.

There was no report from the Student Government Association.

The Staff Senate reported that its elections are coming up – June 12. The body has also created two new ad hoc committees, one focused on strategic plans and bylaws, and the other on presidential qualities.

Standing committee reports include:

Academic Programs: The committee is exploring a new BS in interdisciplinary studies, focused on neuroscience. Members are not ready for a report at this time.

Part-time Faculty: .��

Executive Committee: .��

Faculty Athletic Representative: .��

Faculty Senate’s next meeting is June 7 at 3 p.m. on the HSC campus. The location will be announced later.