Susan Howarth discussed the 2017-18 operating budget, noting that it “became clear the university had financial issues” in January. UofL ended FY16 with a deficit and therefore developed a pro forma approach for the first time to ensure a “more positive situation” at the end of this year and next year.

She said administrators are optimistic about ending this year with a surplus because of “significant” accounts receivables from KentuckyOne.

The budget that was presented to the Board of Trustees in May showed a $40 million deficit, $5 million coming from the general fund side and the rest from the clinical side, Howarth said. A budget re-set was done in March that “took care of most of the general fund problem.”

“The HSC problem didn’t get there overnight and it won’t be solved overnight. But we’ve got a plan and we need to execute it in the next year,” she said.

UofL’s initial enrollment projections fell short and enrollment numbers are down 200 from last fall. These are not incoming freshmen, however, but rather students that are not returning after their first or second years. Retention will be a priority in the coming fiscal year. (Note: The budget has since been presented and approved by the .)

“The 2018-19 budget will be committed to a strategic plan and going forward,” she said. “It’s been tough it’s tough to understand how and why this could happen, but we will eventually be in a much better place.”

Jeanell Hughes said the HR effectiveness survey generated a great response rate, including thousands of comments. Most of these comments focused on training, development and career opportunities. Survey results will be added to the HR website.

A modified computer loan program will be announced soon, Hughes said.�� HR is working through the details on a recently announced hiring freeze. Some senators asked if RIFs will continue from the budget crisis and Hughes noted that RIFs are a continuing process at this institution at any time.

Lee Smith said the employee migration to the Office365 email system is ongoing. He added that four major construction projects continue on campus and are on time and budget.

Money saving efforts continue, especially in the area of procurement. Smith notes that software purchases is an example of where we can save money, by reviewing and combining individual licenses to enterprise licenses for example.

“We are close to having our initial recommendations around procurement and will roll them out next fiscal year,” Smith said.

A printer/copier RFP is out, and a wired/wireless RFP will be issued soon.

A senator raised concerns about the cost of parking going up and Smith noted that UofL is below the benchmark for parking. UofL has also not raised its parking prices in six years.

A handful of senators challenged the increase in parking prices, noting that salaries are also below benchmark. Smith said the increase averages about $1.40 a month and that they were sensitive to increasing the cost too much, particularly for staff and students.

For “other business,” general discussion was held with several senators expressing disappointment over the recently released UofL Foundation audit results.��

Dr. Bob Staat provided the Faculty Senate report. More information is .��

Vickie Tencer provided the vice chair annual report, which is available in full online. She also noted that the search for a CFO is ongoing and the first review of applicants .

Parliamentarian Melissa Long Shuter opened the officer elections for the 2017-18, including introductions from senators Wendy Metcalf and Sabrina Haug, who were both running for secretary/treasurer.

After a vote, Haug was named to the position of Secretary/Treasurer again. Will Armstrong and Vickie Tencer remain chair and vice chair, respectively, running with no opposition.

Other committee reports include:

Credentials and Nominations proposed seating of newly elected senators.

The Policy, Economics and Development report is .��The focus this year has been on the university’s RIF policy to ensure it is in line with other schools and it favors training, development and hiring opportunities for internal candidates.

The Staff Grievances committee reported no grievances have been filed since the last meeting, and three total were filed during the year.

The SHARE committee report is . Chair Bonnie Dean said the committee’s main focus is to raise awareness and money. SHARE has signed on to join internal campaigns, such as Cards All In. SHARE has received revenue of more than $3,400 during the past year and the fund stands at just more than $14,700. One application was received and approved for $265.

The Staff Morale and Community Outreach committee report is .��An updated Staff Senate website is in the works, and a Facebook page and Twitter account have been launched. Nineteen senators were recognized for perfect attendance in the past year.

The annual treasurer’s report is . The technology fund stands at $1,674. The Staff Senate general fund balance at the end of May was $3,805.87.

The next Staff Senate meeting is July 13 at 2:30 p.m. in Chao Auditorium.

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.