WAYNE STATE LJNIVERSl1Y...Lobelia Samavati, associate professor, for fractional 25% tenure per...

WAYNE STATE LJNIVERSl1Y

Board of Governors

OFFICIAL PROCEEDINGS

June 26, 2013

Regular Meeting

The meeting was called to order at 3:00 p.m. by Governor Massaron in Rooms BC in the McGregor Memorial Conference Center. Secretary Miller called the roll. A quorum was present.

Board Members Present: Governors Dingell, Driker, Dunaskiss, Massaron, O'Brien, Nicholson, Pollard, and Trent; and President Gilmour

Also Present: Provost Winters; Vice Presidents Lessem, Lindsey, Nork, Ratner, Ripple, Staebler, and Wright; and Secretary Miller

APPROVAL OF CONSENT AGENDA

ACTION - Upon motion by Governor Dingell and seconded by Governor Pollard, the Consent Agenda was approved as presented. The motion was adopted unanimously.

Board of Governors Meeting

A Approval of the Official Proceedings of the May 1, 2013 Regular Meeting and the June 5, 2013 Special Meeting

B. Personnel Recommendations

Budget and Finance Committee

C. Chatsworth Tower Apartments Life Safety, Technology, and Mechanical System Upgrades

D. College of Engineering - Various Teaching Laboratory Renovations E. Frederick C. Matthaei Physical Education Center Basketball Office Suite Expansion F. Macomb Advanced Technology Education Center (A-TEC) Construction Authorization G. Alex Manoogian Hall Second Floor Renovation H. Science and Engineering Laboratory Classroom Building Design Authorization I. Revisions to Common Trust Fund Statute

2 Official Proceedings - June 26, 2013

Approval of the Official Proceedings of the May 1, 2013 Regular Meeting and the June 5, 2013 Special Meeting

ACTION - Upon motion by Governor Dingell and seconded by Governor Pollard, the Official Proceedings of the May 1, 2013 Regular Meeting and the June 5, 2013 Special Meeting were approved as submitted. The motion was adopted unanimously.

Personnel Recommendations

ACTION - Upon motion by Governor Dingell and seconded by Governor Pollard, the personnel recommendations were approved and action authorized in accordance therewith. The motion was adopted unanimously.

The personnel recommendations are as follows:

School of Business Administration

Scott Julian, associate professor, for tenure per University year in the Department of Management and Information Systems, effective August 19, 2013.

College of Education

Mariane Fahlman, for promotion from associate professor to professor, effective August 19, 2013.

College of Engineering

Nathan Fisher, associate professor, for tenure per University year in the Department of Computer Science, effective August 19, 2013.

Timothy Gates, associate professor, for tenure per University year in the Department of Civil and Environmental Engineering, effective August 19, 2013.

Chandankumar Karrem, associate professor, for tenure per University year in the Department of Computer Science, effective August 19, 2013.

Yeau-Jian Liao, Engineering Technology, for promotion from associate professor to professor, effective August 19, 2013.

Ekrem Alper Murat, associate professor, for tenure per University year in the Department of Industrial Systems and Engineering, effective August 19, 2013.

Weisong Shi, Department of Computer Science, for promotion from associate professor to professor, effective August 19, 2013.

Yong Xu, Department of Electrical and Computer Engineering, for promotion from associate professor to professor, effective August 19, 2013.

Official Proceedings - June 26, 2013

College of Fine, Performing, and Communication Arts

Dora Apel, Department of Art and Art History, for promotion from associate professor to professor, effective August 19, 2013.

Lillian Black-Williams, for appointment as professor with tenure per University year, in the Department of Communication, effective July 1, 2013. Professor Black will serve as chair of the Department of Communication.

Fred Vultee, associate professor, for tenure per University year in the Department of Communication, effective August 19, 2013.

Kelly Young, associate professor, for tenure per University year in the Department of Communication, effective August 19, 2013.

Law School

Linda Beale, for promotion from associate professor to professor, effective August 19, 2013.

College of Liberal Arts and Sciences

Lisa Alexander, associate professor, for tenure per University year in the Department of Africana Studies, effective August 19, 2013.

Matthew Allen, associate professor, for tenure per University year in the Department of Chemistry, effective August 19, 2013.

Diane Cabelof, associate professor, for tenure per University year in the Department of Nutrition and Food Science, effective August 19, 2013.

Derek Daniels, associate professor, for tenure per University year in the Department of Communication Sciences and Disorders, effective August 19, 2013.

Alexander Day, associate professor, for tenure per University year in the Department of History, effective August 19, 2013.

Edward Golenberg, Department of Biological Sciences, for promotion from associate professor to professor, effective August 19, 2013.

Emily Grekin, associate professor, for tenure per University year in the Department of Psychology, effective August 19, 2013.

Smiti Gupta, associate professor, for tenure per University year in the Department of Nutrition and Food Science, effective August 19, 2013.

Eric Hiddleston, associate professor, for tenure per University year in the Department of Philosophy, effective August 19, 2013.

Jeremy Kodanko, associate professor, for tenure per University year in the Department of Chemistry, effective August 19, 2013.

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Sharon Lean, associate professor, for tenure per University year in the Department of Political Science, effective August 19, 2013.

Danielle McGuire, associate professor, for tenure per University year in the Department of History, effective August 19, 2013.

Jeffrey Pruchnic, associate professor, for tenure per University year in the Department of English, effective August 19, 2013.

Sarah Trimpin, associate professor, for tenure per University year in the Department of Chemistry, effective August 19, 2013.

Nicole Trujillo-Pagan, associate professor, for tenure per University year in the Department of Sociology, effective August 19, 2013.

Ualbay Umirbaev, professor, for tenure per University year in the Department of Mathematics, effective August 19, 2012.

Mark VanBerkum, Department of Biological Sciences, for promotion from associate professor to professor, effective August 19, 2013.

Claudio Verani, Department of Chemistry, for promotion from associate professor to professor, effective August 19, 2013.

Tatsuma Wada, associate professor, for tenure per University year in the Department of Economics, effective August 19, 2013.

Lee Wurm, Department of Psychology, for promotion from associate professor to professor, effective August 19, 2013.

Zhixian Zhou, associate professor, for tenure per University year in the Department of Physics and Astronomy, effective August 19, 2013.

School of Medicine

Judith Arnetz, professor, for fractional 50% tenure per University year in the Department of Family Medicine and Public Health Sciences, effective August 19, 2013.

Jennifer Beebe-Dimmer, associate professor, for fractional 50% tenure per University year in the Department of Oncology, effective August 19, 2013.

Patricia Brown, Department of Internal Medicine, for promotion from associate professor ( clinical) to professor ( clinical), effective August 19, 2013.

Cathryn Bock, associate professor, for fractional 50% tenure per University year in the Department of Oncology, effective August 19, 2013.

Jacob Burmeister, Department of Radiation Oncology, for promotion from associate professor ( clinical) to professor ( clinical), effective August 19, 2013.


Deborah Ellis, Department of Pediatrics, for promotion from associate professor to professor, effective August 19, 2013.

Shirish Gadgeel, Department of Oncology, for promotion from associate professor (clinical) to professor ( clinical), effective August 19, 2013.

Elisabeth Heath, Department of Oncology, for promotion from associate professor (clinical) to professor ( clinical), effective August 19, 2013.

Csaba Juhasz, Department of Pediatrics, for promotion from associate professor to professor, effective August 19, 2013.

Omar Khan, for appointment to professor with tenure per University year, in the Department of Neurology, effective April 1, 2013. Professor Khan will serve as chair of the Department of Neurology.

Mary Ann Kosir, Department of Surgery, for promotion from associate professor ( clinical) to professor ( clinical), effective August 19, 2013.

Leonard Lipovich, associate professor, for tenure per University year in the Department of Neurology, effective August 19, 2013.

Karen List, associate professor, for tenure per University year in the Department of Pharmacology, effective August 19, 2013.

Dawn Misra, Department of Family Medicine and Public Health Sciences, for promotion from associate professor to professor, effective August 19, 2013.

Patrick Mueller, associate professor, for tenure per University year in the Department of Physiology, effective August 19, 2013.

Brian O'Neil, for appointment as professor with tenure per University year, in the Department of Emergency Medicine, effective April 1, 2013. Professor O'Neil will serve as chair of the Department of Emergency Medicine.

Sanjay Revankar, Department of Internal Medicine, for promotion from associate professor (clinical) to professor (clinical), effective August 19, 2013.

Wael Sakr, professor, for fractional 50% tenure per University year in the Department of Pathology, effective August 19, 2013.

Lobelia Samavati, associate professor, for fractional 25% tenure per University year in the Department of Internal Medicine, effective August 19, 2013.

Timothy Stemmler, Department of Biochemistry and Molecular Biology, for promotion from associate professor to professor, effective August 19, 2013.

Ulka Vaishampayan, Department of Oncology, for promotion from associate professor ( clinical) to professor ( clinical), effective August 19, 2013.

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Jeffrey Withey, associate professor, for tenure per University year in the Department of Immunology and Microbiology, effective August 19, 2013.

Rudolph Valentini, Department of Pediatrics, for promotion from associate professor ( clinical) to professor ( clinical), effective August 19, 2013.

Kezhong Zhang, associate professor, for tenure per University year in the Department of Immunology and Microbiology, effective August 19, 2013.

College of Nursing

Judith Fouladbakhsh, associate professor, for tenure per University year, effective August 19, 2013.

Debra Schutte, for appointment as associate professor with tenure per University year, effective August 19, 2013.

April Vallerand, for promotion from associate professor to professor, effective August 19, 2013.

Eugene Applebaum College of Pharmacy and Health Sciences

Fei Chen, Department of Pharmaceutical Sciences, for promotion from associate professor to professor, effective August 19, 2013.

Malcolm Cutchin, for appointment as professor with tenure per University year, in the Department of Health Care Sciences, effective July 1, 2013. Professor Cutchin will serve as chair of the Department of Health Care Sciences.

School of Social Work

Elizabeth Dungee-Anderson, for appointment as associate professor with tenure per University year, effective March 4, 2013. Professor Dungee-Anderson will serve as associate dean.

Chatsworth Tower Apartments Life Safety, Technology, and Mechanical System Upgrades (Budget and Finance Committee)

Chatsworth Tower Apartments, located at 630 Williams Mall, is a nine-story Italian Renaissance apartment building built in 1929. It was acquired by the University in 1961 and is used to house both graduate and undergraduate students. A comprehensive building assessment performed in 2012 identified several issues, including fire alarm and fire suppression systems, and obsolete data cabling. The scope of the proposed project includes 1) expansion of the current fire alarm and fire suppression systems in the basement to provide coverage for the entire building; 2) the mechanical units in the stair wells will be replaced with new code-compliant equipment supplying the stair wells and corridors on each floor, and will include required smoke and fire dampers; and 3) the data


fiber network will be extended throughout the building to provide access to each apartment unit New ceilings and lighting will be installed in the main corridors to conceal the infrastructure that provides these new services.

ACTION - Upon motion by Governor Dingell and seconded by Governor Pollard, the Board of Governors authorized the President, or his designee, to solicit bids and award contracts to design and construct various upgrades to Chatsworth Tower Apartments life safety, technology, and mechanical systems for a project cost of not to exceed $1,850,000. Funding for this project will be provided from Housing Auxiliary Operating Budget ($1.2 million) and the reserve for non-general fund equipment and facilities ($650,000). The balance in this reserve is $5.4 million at June 10, 2013. The motion was adopted unanimously.

College of Engineering - Various Teaching Laboratory Renovations (Budget and Finance Committee)

During the fall of 2012, the Accreditation Board of Engineering and Technology (ABET) conducted its periodic review of the College of Engineering and its programs. Its final report recommended numerous facility improvements required to support accreditation. This project addresses the upgrading of the classroom laboratories in the Engineering, Manufacturing Engineering, and Bioengineering buildings. Work includes equipment repair or replacement, technology upgrades, epoxy floors, removal of obsolete casework and utilities, and electrical improvements in ten separate labs. Four other teaching labs require more extensive renovations of architectural, electrical, and mechanical systems.

ACTION - Upon motion by Governor Dingell and seconded by Governor Pollard, the Board of Governors authorized the President, or his designee, to proceed with the design, solicitation of bids, and the award of contracts to construct various teaching laboratory renovations within the College of Engineering for a project cost not to exceed $1,200,000. Funding for this project will be provided from the Provost's Academic Program investments budget ($712,000), the College of Engineering operating budget ($238,000), and from the deferred maintenance reserve ($250,000). The deferred maintenance reserve balance was $1.1 million at June 10, 2013. The motion was adopted unanimously.

Frederick C. Matthaei Physical Education Center Basketball Office Suite Expansion (Budget and Finance Committee)

The Frederick C. Matthaei Physical Education Center was constructed in 1965 and provides space for the Athletic Department's administrative offices and facilities, as well as for the College of Education's Department of Kinesiology. The current basketball offices are inadequate in size to accommodate existing coaches and staff, and provide no seating for visitors, including recruits to the basketball programs and their families. The proposed building expansion will add 2,555 square feet to the north side of the building to provide an office suite for both women's and men's basketball. The suite includes six offices, a reception area and a film room, and will be instrumental in continuing to grow and strengthen both very successful programs. The current basketball offices will be reassigned to other sports.

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ACTION - Upon motion by Governor Dingell and seconded by Governor Pollard, the Board of Governors authorized the President, or his designee, to solicit bids and award contracts to design and construct an expansion of the Matthaei Building to house offices and other facilities for the men's and women's basketball programs at a cost not to exceed $585,000. The project will e funded entirely by private donations to the Athletic Department.

A separate but related project to move an existing waterline that runs along the North side of the building and repair and/or replace concrete sidewalks and landscaping will also be completed at a cost not to exceed $180,000. Funds for this project will come from the deferred maintenance reserve which had a balance of $1.1 million at June 10, 2013. The motion was adopted unanimously.

Macomb Advanced Technology Education Center (A-TEC) Construction Authorization (Budget and Finance Committee)

In February 2013, the Board authorized the administration to proceed with design phase activities for the Macomb Advanced Technology Education Center (A-TEC) on the site of a former Farmer Jack grocery store purchased in 2011. The architectural program for the project includes an entry lobby, five classrooms, five state-of-the-art computer labs, one "white box" battery technology lab, and four dry lab spaces. Faculty and administrators from the schools and colleges involved in the programs were consulted regarding technology, infrastructure, and classroom configuration requirements. The project is expected to be completed by August 2014. The new facility is being designed in accordance with U.S. Green Building Council's 2009 LEED standards for new Construction and Major Renovations, and will be certified as Silver.

ACTION - Upon motion by Governor Dingell and seconded by Governor Pollard, the Board of Governors authorized the President, or his designee, to award contracts to construct the Macomb Advanced Technology Education Center (A-TEC) in Macomb County for a project cost not to exceed $12,000,000. This value includes $750,000 which the Board approved on February 6, 2013 for design phase. Funding for this project will be provided from the sale of Series 2013 General Revenue Bonds and Extension Center carry-forward balances. The motion was adopted unanimously.

Alex Manoogian Hall Second Floor Renovation (Budget and Finance Committee)

The Alex Manoogian Hall, located at 906 West Warren Avenue, was constructed in 1970 and is one of the University's primary general-purpose classroom buildings. Several renovation and upgrade projects have been completed in recent years, including the complete renovation of the first floor. The proposed project addresses renovation of the second floor, including replacement of the heating and cooling distribution system, expansion and upgrading of the fire alarm and suppression system, new electrical distribution, ceilings, lighting, finishes, and furniture, installation of audio-visual technology, and abatement of spray-on asbestos fire-proofing material applied to the steel frame of the building when it was originally constructed.


ACTION - Upon motion by Governor Dingell and seconded by Governor Pollard, the Board of Governors authorized the President, or his designee, to proceed with the design phase activities for the renovation of the second floor of Manoogian Hall for a cost of not to exceed $400,000. Funding for this project will be provided from the sale of Series 2013 General Revenue bonds. The motion was adopted unanimously.

Science and Engineering Laboratory Classroom Building Design Authorization (Budget and Finance Committee)

On February 6, 2013, the Board of Governors authorized the sale of general revenue bonds to finance several capital construction projects, including a new Science and Engineering Laboratory Classroom Building. The scope of the proposed project includes the design of a new 45,000 square-foot building that would accommodate up to 30 instructional laboratories for several academic departments, including Physics, Biology, Chemistry, Nutrition & Food Science, and Engineering. A joint faculty/administration task force convened to evaluate the scope and program content for the proposed building. Output from the task force will be considered when developing final design and program parameters for the new building.

ACTION - Upon motion by Governor Dingell and seconded by Governor Pollard, the Board of Governors authorized the President, or his designee, to solicit proposals and awed contracts to program and schematically design a new Science and Engineering Laboratory Classroom Building at a cost not to exceed $750,000. Design documents must be complete by October 2013 and will be used to support a project funding request to be submitted to the State of Michigan as the University's top propriety FY 2015 Capital Outlay project. Funding will be provided from the sale of Series 2013 General Revenue bonds and State Capital Outlay funds, if awarded. The motion was adopted unanimously.

Revisions to Common Trust Fund Statute (Budget and Finance Committee)

The Common Trust Fund statute establishes the University's policy for the distribution of endowment fund earnings to various individual endowment fund spending accounts. The University has a fiduciary responsibility to support not only the current fund beneficiaries, but also future beneficiaries from the erosion of purchasing power due to inflation. This is achieved by reinvesting a percentage of earnings within the fund to maintain its purchasing power. The current distribution rate is 5.0%, based on the assumption of 8.0% annual investment return and an inflation rate of about 3.0% per year. However, the Foundation's investment advisor, New England pension Consultants (NEPC), projects that the annual investment returns will be in the 7.0% range for the foreseeable future, and advises that the distribution rate be reduced. Therefore, the administration is recommending that the rate be gradually decreased to 4.5% over a period of time. Recently, other universities have also reduced their endowment spending rates, among them the University of Michigan from 5% to 4.5% and the University of Pittsburgh to 4.25%.

ACTION - Upon motion by Governor Dingell and seconded by Governor Pollard, the Board of Governors approved the revised Common Trust Fund statute (WSUCA 2.73.05) as presented, with changes becoming effective October 1, 2013. The principal change is to reduce the annual distribution rate from 5.0% to 4.5%. The motion was adopted unanimously.

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The revised Common Trust Fund statute reads as follows:

The University will maintain a pooled fund through its endowment fund held by the Wayne State University Foundation. This fund will be known as the Common Trust Fund, and it will be for the purpose of pooling all liquid assets of endowment funds (true endowments, funds functioning as endowments, term endowments, living trusts, and similar assets) for investment purposes, unless a donor of an endowment specifies that such assets be maintained and invested separately and the President or his/her designee agrees to such special arrangement.

The investment objective of Wayne State University is to generate an annual total rate of return for the fund sufficient to produce .the following results on average, over long periods of time:

(1) Provide periodic distributions as determined by the Wayne State University Board of Governors.

(2) Inclusive of the above, grow the value of the corpus of the Common Trust Fund over longer periods of time equal to the rate of inflation (CPI); and

(3) Inclusive of (1) and (2), preserve the corpus of the Common Trust Fund with the goal of growing the real value of the Common Trust Fund.

The above financial results should be sought without incurring a level of rate-of-return volatility materially greater than that generally associated with peer institution assets. Since the University has transferred its endowment funds to the Wayne State University Foundation, the University expects that the Foundation will adopt an investment policy that incorporates these objectives.

Generally, new endowment fund cash and/or securities will be placed in the Common Trust Fund as of the last day of the quarter unless a significantly large endowment is received. Then the assets will be placed in the Common Trust at the earliest possible date. The value of the Common Trust Fund will be appraised as of the last day of the quarter, or an earlier date in the case of significantly large endowments (equivalent to no less than 5% of the total endowment fund), and units of participation will be assigned to the new endowment fund(s) on the basis of the total market value of the Common Trust Fund and the total outstanding units of participation before the inclusion of the new fund.

Subtractions from the principal, when necessary and allowable, will be made on the last day of the calendar quarter, at which time a reappraisal is to be made as described above.

Income and capital gains from the Common Trust Fund will be distributed quarterly to each participating endowment fund on the basis of the number of units of participation in accordance with section 2.73.05.070, unless there are different requirements based upon exceptions in existing memorandums of agreement.

The annual amount of the distribution will be 4.5% of a moving average of the market value of the endowment fund. Of this annual distribution, 4.05% will be transferred to


the beneficiary or spending account and .45% will be transferred to an administrative account as a fee to support the Division of Development and Alumni Affairs fund raising activities. The quarterly distribution amount of the market value of the endowment fund to be distributed to each individual endowment fund will be 1.0125%, and the administrative fee to support the Division of Development and Alumni Affairs fund-raising activities will be .1125% of the market value of the endowment fund.

The moving average is to be determined by dividing the twelve most recent quarterly market valuations by twelve. If there is no beneficiary or spending account, the distribution will be added to the principal. For quasi endowment funds, upon the request of the University official who has signature authority over the beneficiary or spending account, unspent funds in these accounts may be added back to the principal, provided the donor agreement does not prohibit this action.

PRESIDENT'S REPORT

President Gilmour reported that he recently spoke at a meeting of the Detroit Economic Club which was held at the WSU campus and chaired by Governor Dingell. About 250 people attended and were served lunch outside the McGregor Memorial Conference Center beside the reflecting pool. President Gilmour spoke about the need for business support for higher education and said it was a good way to highlight Wayne State University.

BOARD COMMITTEE REPORTS

President Gilmour reported that two standing committees met during the morning session.

The Personnel Committee had one informational report. The Affirmative Action Status Report provided data regarding employment of academic and non-academic staff, discrimination and harassment complaint processing, and the University's efforts at supplier diversity for 2012.

The Budget and Finance Committee received an informational report on the Contingency Reserve, which showed that no transfers were requested and the balance remained at $216,029. Several other actions were approved as part of the Consent Agenda.

Three additional items - the FY 2014 tuition and fee rates, the FY 2014 General Fund budget, and the FY 2014 Auxiliary Fund budgets - were also discussed in committee and presented to the full Board for separate consideration. The Board voted on all three items in one motion. Governor Massaron asked that the statements made by the Board members during the Budget and Finance Committee be included as part of the record of the Board of Governors meeting.

Eugene Driker

The students and all others who are interested in this tuition question should understand the efforts that the administration and the Board of Governors have put into considering the situation we find ourselves in trying to resolve it in the most sensible way possible. I enrolled in this institution 58 years ago. I was the beneficiary of the low tuition, and my wife was in the 1950s. My son and his wife were graduates of the Medical School and were

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beneficiaries of low medical school tuition in the 1990s. Nobody is more sensitive to the impact of increasing tuition than I am because I had to pay it when I worked my way through this school, and my wife and various members of my family went through the same process. So I feel this up close and personal. But what I remember vividly when I graduated the Law School in 1961 is that not even the top student in my class could get a job at any downtown Detroit law firm in 1961. That was because the reputation of the University was not where it should have been. Now, every downtown Detroit law firm is run by graduates of the Wayne State University Law School and heavily populated by them. And the reason that that has happened is not through magic; it is because over the years the reputation of the Law School as part of the University has increased dramatically, and that is because we have had better faculty, better facilities, better libraries. So the employers finally woke up one day and said that this is a great university with a great Law School. I mention the Law School only because that is where I graduated from. The same is true about the Medical School, the Engineering School, the Nursing School, and the Pharmacy School, the entire University.

The value of a diploma from this University depends upon what an employer sees as the value of the education that has been received from the University. Employers are not going to applaud a student and say "I want to hire you because the university you graduated from had the lowest tuition in the state." That is not the criteria that the employer uses. The employer wants to know what is the quality of the education of the graduate sitting before her or him, and that is entirely based on the quality of the faculty, the quality of the labs, the quality of the libraries, the quality of the facilities. And we cannot maintain, let alone increase, the quality by being the cheapest product around. That does not do it in a field where quality counts so much. We cannot be the Costco of universities and figure that our graduates are going to be greeted at the door by employers throughout Detroit and southeastern Michigan and around the state and around the country.

So what we are doing today, we understand that this is going to inflict some real burdens on students, and it is not done cavalierly. But I do not think anybody is more sensitive and more knowledgeable about budget matters than Professor McIntyre, who knows a lot more about the University budget than I do because he spends a lot more time studying it. To hear him talk about the need confirms to me the wisdom of supporting this recommendation, as difficult as it may be, because we cannot cut our way to a future here. We have got to intelligently spend our resources to be sure that the University maintains and enhances its quality so that people, when they walk across the stage and get that piece of paper, say "I got something of value that is going to translate into a job or a career."

It is deeply disturbing to me, and Professor McIntyre alluded to this, that there is not a greater recognition in various places throughout this state that Wayne State University educates the children of Michigan taxpayers and is being punished for doing so. About 94 percent of our students come from Michigan homes. Some of our sister institutions have almost half of their students coming from out of state. That translates into capturing an enormous amount of out-of-state tuition that balances their budgets. We have never done that. We have tried to focus on educating the children of Michigan residents, and our graduates, by and large, remain here. So there is an interesting statistic that we just looked at that although we only get 14% of the entire state appropriation for higher education, we are now graduating about 45% of the medical doctors from all the state universities. So the state is getting a payoff of more than 3 to 1 in terms of doctors produced by Wayne State University versus the investment they put in Wayne State University. And you look at similar numbers in the Pharmacy School, in the Nursing School. The resources that are given to


Wayne State University versus the number of graduates we are producing in much-needed disciplines is simply out of whack. It does not recognize the contribution that we make to this state.

So, I hope the students who are represented by two members of this committee understand that we are not blithely saying, "Well, let's just pass the increased cost down to the students." First and foremost, we are increasing financial aid by 11 %. And when we use the word "financial aid," it is important for everybody in the room to understand we are not talking about loans, but about outright grants. This is money that is given to students that does not have to be paid back. And we are going to increase that by 11% to help the students overcome what is clearly a hefty increase in tuition. But if we do not do this, if we do not take this step at long last - which frankly we have been skating around for some years, hoping that funds would come from other sources and that hope, at least to date, has not been fulfilled. We have to do this now. For the 10 years I have been on the Board, we have ignored something called "deferred maintenance," a term that kind of barely explains an enormous amount of money that is needed to keep the buildings, equipment and facilities here in top shape. And what a pity it is to invest tens of millions of dollars in a building and then not maintain it. That does not make a lot of good sense. In my recollection, and Jim Sears can correct me if I am wrong, my recollection is that the national standard is to invest 2. 5% a year in maintaining the buildings and our investment is less than half of that. So we are not even maintaining what we are building right now; that does not make good sense. So, I support this, recognizing that it is the least pleasant alternative, but I believe it is necessary for the future of the University.

Governor Dingell

I would first like to say that this has been one of the most difficult of times since I have been on the Board. I have seen my colleagues reflect upon the decisions made today, and I want to say that there has been no conflict, no harsh words. Many of my colleagues have not slept for weeks. They understand what the impact of this is no matter which decision we make. Our resources are not at the same level as Michigan or Michigan State, but we have an equal responsibility to maintain our institution and the same high research Carnegie classifications. I think it is critical to this institution, Detroit, Southeastern Michigan, and the state that we do so. Our peer institutions - both Michigan and Michigan State -have an out-of-state student component that pays a much higher tuition that helps cover the cost, and their tuition levels are far above those at Wayne State and well above the average of the other 15 Michigan universities. Our problem, as we are looking at it today, is that we must sustain Wayne State's leading research role based on the tuition income of the non-research Michigan universities. We are dealing with the fact that our state legislature has decided that higher education is not a high priority for Michigan, despite the fact that the business community of Michigan and institutional leaders have recognized that our research universities are the primary engine for the state's economic growth.

We find ourselves right now - I have said this to my colleagues and I will say this publicly today - having to face the limitations on our basic funding source, student tuition. That limitation dictates that we must begin under the new president to examine the question of what is the right size for Wayne State University. We need to examine whether or not we need to be doing all the things that we are presently doing. Such an examination needs to be done very carefully under the very strong leadership of our new president. It needs to answer the question, What are the basic priorities of this university. Are there things that are

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more or less important to our diverse mission? And are there things that, while they are valuable of themselves, we cannot afford to keep doing them given the funding limitations that we face in the future. I said this to my colleagues - it is a word I used coming out of the auto industry - we must right-size this institution. We cannot go down the same path that I saw and that others have seen in the auto industry and that we 're seeing Detroit in right now. We cannot ignore what is happening in the real world. Our tuition has gone down, and we need to try and turn that around. But we have serious things happening here, and we are going to have to make difficult decisions for the university given our reality.

This is the hardest thing I have ever done. I deeply respect my colleagues and no Board member who is sitting here thinking about this today has a good option for a decision on this matter. I cannot vote on that tuition increase today because of what it means to the working families of Michigan. But I do so not happily because I understand my vote means continued diminished resources to Wayne State with potentially devastating consequences to this institution, Southeast Michigan, and I believe to Michigan. I believe that the level of support in Lansing is too low and that the level of tuition that we are talking about is a terrifying burden to many of our students. So I am not happy about anything that I am doing today. I and my colleagues are really suffering as we try to do this, and I believe a strategic plan for the future of this university is going to be critical in the months ahead.

Governor Massaron

I am going to try not to repeat what other people have said. I am supporting the proposal of the administration with regards to the tuition increase because I really do believe that under the leadership of President Gilmour and folks in the administration we have had an opportunity over the last weeks to examine the economics at WSU better than we have had before, at least for the 13 years that I have been on the Board. We appreciate the leadership of President Gilmour in that respect, but we were also in the situation where it was necessary to do that. With the decline in state support it is absolutely necessary because the low tuition structure is not sustainable in going forward. With our responsibility under the constitution of the state, we have to end up with docking the budget and having a structure that sustains this university as a research university. Because of the cuts that we have had to sustain with the historic disinvestment in higher education in Michigan, we have been right-sizing the university. Perhaps we could have done it in a more organized fashion. But ever since I have been on the Board, we have been cutting; I don't remember us adding.

So we have been doing that as carefully as we could, and I think that we will continue doing that with the new president. It is important to note that this has a serious impact with regards to tuition. It is important that we understand that our obligation is not just simply to the students this year, and the following year, but that our obligations are even longer than that. We have existed since 1868 and we will be around in 2068, and we will have an effective urban research university in Detroit, Michigan; and we will have a rebirth of Detroit of which Wayne is one the major leaders. Those are all the commitments that we have and what we are trying to sustain by making this decision. So I support the recommendations and I appreciate, President Gilmour, the decisions that you made to lead us through. It is an extremely difficult and unhappy situation, but in the end it can make us optimistic about the future, not pessimistic.


Governor Dunaskiss

I will not have the opportunity to vote on this during the committee because I am not a part of it, but I will be asked to vote later this afternoon. I want to begin by saying that I also respect my colleagues and the administration for the work they have done, not only in cutting the budget in the last several years, but for how difficult this decision. I have been on this Board for 18 years and I have been in education for 30 years. My primary concern is the disinvestment in education. I think back to 150 years ago when a sixth grade education was ample for living in an agricultural society. About 100 years ago move that to twelfth grade and that was adequate in society to get a good job in the industrial age. I think now that our state and our federal governments need to start thinking about education as a K-16 proposition. A high school education is not enough for most jobs. And although college education's only worth is not to find a job, it is a primary responsibility. So our state and the federal government have to start looking at education at a four-year university as essential for students, and they need to start investing in that, not only K-12 because they are reducing there, but also in our four-year institutions.

So I looked at that and I looked also at the burden that we will be placing on our students. Again I know that my fellow Board members do not look at this lightly but the history of higher education recently has been to continue to increase tuition, and I guess I am at a point where I can say, Stop it, it's enough. I have to say that I can no longer look at raising tuition on students as the only way to solve the problem. Now, combined with that is for me not to say I have had enough, but for me personally to start looking at what I can do to work with legislatures and with state government, and start sending that message that we have to do something to change the structure of how we fund our universities. So, I cannot vote for it today, not because I do not think it is necessary and not because I do not think this university has done everything they can to reduce its cost. I do believe they have. But I am just at the point in my involvement in education where I have to say stop, and I have to look at what I can do to turn this university around.

Governor Nicholson

Maybe not as eloquently as my peers, but I will be voting for this proposal from the administration. And it comes down to a few things and I think what I see is education is a very competitive market and what I see is the previous governors and administration have done a fantastic job of keeping Wayne State University's tuition below its peers. But for the future of quality of education, I think we need to reinvest the money back into the institution. For 2014 the no-tuition-increase is not really sustainable, and I agree with Governor Massaron that you cannot cut your way to prosperity. There was a chart that was very interesting in Rob's report on the change in the pace, and that showed that the user seems to be paying more than the state. And I think everyone in this room, whether it is administrators, professors, staff, the police must understand that when they interact with the student. They are your new customer; it is not Lansing anymore. And so I would encourage everyone to refocus on them as the customer because I do not see a trend of government reinvesting in university education over the short term. I think the likelihood is that students in universities will pay for the cost of education. And you should demand for the very best education the very best customer service.

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Governor Trent

I have agonized over the decision to vote for this proposal for tuition increase and I want to explain why I am supporting it. As we all know, and it has been mentioned many times today, Michigan has disinvested in higher education for many years, and our state appropriation for this year is the same as it was in 1989 not adjusted for inflation. Meanwhile Wayne State's tuition rate has been unofficially low when compared to Michigan's two other research universities. Because of cuts in state funding, declining enrollment and other factors, the university will make massive cuts beyond our $19 million we have already cut for our fiscal year 2014 budget without this increase. As been mentioned before, we have already cut $50 million from our last three budget cycles.

I have consistently expressed my great concern about Wayne State's 9% six-year graduation rate for African American students. Among the investments that we will make now is the creation of the Office of Multicultural Affairs for the first time in the university's history. This office will be in charge of creating strategies to address graduation disparities for students of color. I am passionate about both the university's urban mission and research mission. If we are to honor our research mission and compete for research projects, the university has to invest now. We also need revenue to address the various metrics that cause Wayne State University to be punished by the legislature in the first place. No one is happy with the university's low 6-year graduation rate and we need to direct more resources to our effort to boost retention, enrollment, and graduation rates. Because we understand that in addition to being a high activity research university, Wayne State also has an urban mission, it boosted our grants for financial aid by 11% to mediate the impact on the tuition hike to students who need help most. Wayne State University is Michigan's hometown university; 90% of our students are from Michigan and 75% of our grads stay here. We are and will remain Michigan's research university of opportunity, but we need to step up our game and I am happy to be a part of that process.

ACTION - Upon motion by Governor Pollard and seconded by Governor Nicholson, the Board of Governors approved the recommendations for the FY 2014 tuition and fee rates, the FY 2014 General Fund budget, and the FY 2014 Auxiliary Fund budgets as presented. The motion was adopted with a vote of 6-2. Governors Dingell and Dunaskiss voted No.

The texts of the individual motions are presented below.

FY 2014 Tuition and Fee Rates

ACTION - upon motion by Governor Pollard and seconded by Governor Nicholson, the Board of Governors approved the FY 20134 tuition rates and mandatory fees as presented. In summary, the base tuition and fees for Wayne State University are increased by 8.9 percent for resident full-time (students taking 15 hours per semester) for undergraduates, and 4.0 percent resident for graduate programs.

In terms of mandatory fees, WSU requires all students to pay a registration fee (per semester), a fitness center fee (per semester), and a student services fee, formerly called the Omnibus fee (per credit hour). The registration fee is


increased by 6.0 percent, while the fitness center fee remains unchanged. The student services fee rate will increase by 6.0 percent for both undergraduates and graduates.

Further, the Board of Governors authorized the President or his designee to make adjustments to the rates for special programs or where otherwise appropriate.

The motion was adopted with a vote of 6-2. Governors Dingell and Dunaskiss voted No.

The tuition and fee rates for the various categories and levels for FY 2014 are as follows:

Category & Level

Undergraduate - Lower Division

Tuition Rates All schools ( other than listed below) Business Administration Engineering and CLASS - Sciences Fine, Performing, and Communication Arts

Other Student Fees (per semester) Engineering Support Fee -Full-time Engineering Support Fee - Part-time Sciences Support Fee - Full-time Sciences Support Fee - Part-time Honors Support Fee - Full-time Honors Support Fee - Part-time

Undergraduate - Upper Division

Tuition Rates All schools ( other than listed below) Business Administration Engineering and CLASS - Sciences Fine, Performing, and Communication Arts Nursing

Other Student Fees (per semester) Engineering Support Fee -Full-time Engineering Support Fee - Part-time Sciences Support Fee - Full-time Sciences Support Fee - Part-time Honors Support Fee - Full-time Honors Support Fee - Part-time

All Undergraduate - Lower and Upper Divisions

Mandatory Fees

Resident Non-Resident

$326.00 $746.65 348.45 769.10 331.65 752.30 348.45 769.10

$100.00 $100.00 50.00 50.00 50.00 50.00 25.00 25.00 50.00 50.00 25.00 25.00

$384.25 $883.60 418.95 918.30 389.90 889.25 418.95 918.30 616.85 1,116.20

$350.00 $350.00 175.00 175.00 100.00 100.00 50.00 50.00 50.00 50.00 25.00 25.00

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Student Services fee (per credit hour) Registration fee (per semester) Fitness Center fee (per semester)

Graduate Programs

Tuition Rates All Graduate programs (other than listed below) Business Adm., Engineering, Library Science Fine, Performing and Communication Arts Law (LLM Program) Medicine Nursing Pharmacy and Health Sciences

Mandatory Fees -- All Graduate Programs Student Services fee- (per credit hour) Registration fee (per semester) Fitness Center fee (per semester)

Professional Programs

Tuition Rates Law (J.D. Program) Medicine (M.D. Program) Pharm. D.

Mandatory Fees Student Services fee (per credit hour) Student Services fee (M.D. program per credit hour) Registration fee (Law, Pharm. only per semester) Student Support fee (M.D. program) Fitness Center fee (per semester)


$29.30 192.35 25.00

$554.15 618.45 581.85 908.85 690.30

1,007.95 630.05

42.15 243.30

25.00

908.85 597.10 630.05

42.15 27.20

243.30 550.00

25.00

$29.30 192.35 25.00

$1,200.35 1,287.70 1,227.70

998.75 1,303.20 1,645.45 1,267.65

42.15 243.30

25.00

998.75 1,242.60 1,267.65

42.15 27.20

243.30 550.00

25.00

The University instituted several changes to the tuition and fee structure due to program costs and market conditions of specific programs.

• A tuition differential for undergraduate Science majors in the College of Liberal Arts and Sciences; for undergraduates in the Colleges of Business and Nursing; and for both undergraduate and graduate students in the College of Fine, Performing, and Communication Arts.

• A student support fee for students in the College of Engineering and in the Honors College, and for science majors in the College of Liberal Arts and Sciences.

• Elimination of the Graduation application fee. This fee will now be part of the Graduation Registration Fee.

• The implementation of the "Great Lakes" tuition policy for undergraduate non-resident students who reside in a state (Minnesota, Wisconsin, Illinois, Indiana, Ohio, Pennsylvania, New York) or province (Ontario) that borders a Great Lake. These rates will be effective for Fall 2013 and will be 110% of the approved resident rates. This policy replaces the Good-Neighbor Policy for undergraduate students only.


The administration also implemented three tuition policy changes:

• The Registration Fee, the Open Registration Fee, and the Late Registration Fee will be refundable.

• The University's Non-Attendance Policy is revised. The Registrar is authorized to cancel tuition and fees for students in their first term of attendance who can document that they never attended classes.

• The authorization of the waiver of tuition and fees for students participating in the Summer Bridge Program. The waiver applies only to students in their first term of enrollment in the eight-week intensive portion of the program which runs during the Spring/Summer term. It does not apply to subsequent terms in the program.

Additional detailed information on WSU's tuition and fee policies can be found in the document, "Statement of Tuition and Fee Regulations", on the Office of the Registrar's web site, (www.reg.wayne.edu/students/tuition and fee regulations.php).

FY 2014 General Fund Budget

During the Budget and Finance Committee meeting, Mr. Kohrman presented the University's budget situation for FY 2014. Because of the fluidity and uncertainty of both revenues and expenditures, a detailed chart was not presented as in previous years. Mr. Kohrman explained that the State appropriations essentially remained at last year's level of $183 million, with an increase of only .29% or $535,000. This is the same dollar amount as 25 years ago, not adjusted for inflation. For the past ten years, WSU has relied on enrollment growth and tuition increases to balance the budget. Recently, however, enrollment has declined and tuition restraint has prevented substantial tuition increases. In addition, indirect cost recovery is also expected to decrease slightly for FY 2014. Despite these uncertainties, the revenue budget was set at $576 million.

In terms of expenditures, the FY 2014 budget must cover basic inflationary increases and provide funding for critical investments in retention, research, and other campus-wide critical areas. It must also increase financial aid by about 11 % to help relieve the tuition burden caused by the increase. With revenue severely curtailed and most expenditures fixed, all units of the University will take a base budget reduction of 5.5%, for a total of $18,861,000. This will mean that over the last three years, units will have taken a total of $50 million in budget reductions.

ACTION - Upon motion by Governor Pollard and seconded by Governor Nicholson, the Board of Governors approved the FY 2014 General Fund budget, its projected revenues and expenditures, and the budgets for individual University units and specifically funded programs as summarized. Also, the Board of Governors authorizes the President to implement the budget management procedures, and budget-related policies with such modifications as may be deemed necessary during the fiscal year.

Further, the Board authorizes the President to make budget adjustments and/or recommend tuition adjustments to the Board in sufficient amount to offset an initial or subsequent state appropriation funding adjustment from the projected amount as shown in the proposed FY 2014 General Fund budget.

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The motion was adopted with a vote of 6-2. Governors Dingell and Dunaskiss voted No.

FY 2014 Auxiliary Activity Budgets

ACTION - Upon motion by Governor Pollard and seconded by Governor Nicholson, the Board of Governors approved the FY 2014 budgets for the Auxiliary Activity units as presented. The motion was adopted with a vote of 6-2. Governors Dingell and Dunaskiss voted No.

Total auxiliary activities revenue and expenditures for FY 2014 are as follows ( dollars in

thousands):

Category

Revenues: Beginning Net Assets Operating Revenue

Student Tuition and Fees Auxiliary Revenues

Total Operating Revenue

Non-Operating Revenues Gifts Other

Total Non-Operating Revenues

Total Revenues

Expenditures and Transfers: Auxiliary enterprises

Compensation Operating Expenses General Fund Support

Expenditures

Transfers Out/(ln) Debt Service Plant and Other

Subtotal Transfers

Total Expenditures and Transfers

FY 2014 Proposed Budget

($6,294.6)

1,655.3 39,403.7

$41,059.0

1,697.5 12.0

1,709.5

$42,768.5

11,574.6 17,736.4 (4,444.3)

$24,866.7

11,966.7 6,191.0

$18,157.7

$43,024.4


Operating surplus / (Deficit) Ending Net Assets

($255.9) ($6,550.5)

REPORTS AND RECOMMENDATIONS FROM THE UNIVERSITY ADMINISTRATION

The Interim Provost and the vice presidents submitted the written informational reports listed below describing activities in their divisions. The reports are on file in the Office of the Secretary. President Gilmour noted that at each meeting he has been impressed by the accomplishments of the faculty and students at Wayne State.

• Academic Affairs Informational Report - Student, Faculty and Academic Staff Achievements - Interim Provost Winters

• New Awarded Research Grants Report -Vice President Ratner

• Division of Research Information -Vice President Ratner

• Report on Waivers Approved to Board Statute 2.41.01.140 -Vice President Ratner

Conflict of Interest Contract

Vice President Ratner requested the Board's approval for a University contract with an outside organization whose founder and director is a full-time faculty member in the School of Medicine. This creates a potential conflict of interest. Michigan Conflict of Interest law requires specific sunshine procedures in order for a University employee, or a company owned by a University employee, to contract directly or indirectly with the University. The law requires disclosure of any pecuniary interest in the contract, and the disclosure must be made a matter of record in the Board's proceedings, including the name of the parties involved, and the terms of the contract. The contract must be approved by the Board with a vote of not less than two-thirds of the full membership of the Board in open session. The disclosures required by the Conflict of Interest law are shown below:

(i) The parties involved in the contracts are Wayne State University and the MRI Institute.

(ii) The contract will provide that:

(a) The University shall perform an NIH research subcontract in the amount of $255,832 (including standard NIH overhead costs). The University will retain ownership of discoveries and related technology resulting from the Research Program;

(b) The term of the subcontract will extend through January 31, 2015 unless extended by the parties or NIH. The agreement may be terminated by the University in the event of an uncured breach of the agreement by the MRI Institute;

(c) During the course of the project, the MRI Institute may utilize facilities at WSU with compensation to WSU for such use; and

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(d) An employee of WSU will function as principle investigator, other WSU employees will perform the subcontract work and no part of the subcontract funds will support Dr. Haacke's work related to the prime contract.

(iii) Because the MRI Institute is not a for-profit entity and has no stock or liquid assets, it is unclear whether Dr. Haacke has any pecuniary interest in this situation or the ability to financially benefit from the lnstitute's success. The Institute has no investments or stock. In the event of dissolution of the Institute, any remaining funds must be given to another 501 ( c )3. WSU's pecuniary interest consists only of the amounts to be provided under the subcontract during a three-year period. WSU facilities and services will be provided in the course of carrying out the subcontract and two WSU employees will be assigned to the project and supported by the subcontract budget.

ACTION - Upon motion by Governor Pollard and seconded by governor Dingell, the Board of Governors authorized the President or his designee to enter into a subcontract agreement with the Magnetic Resonance Imaging Institute for Biomedical Research (hereinafter "the MRI Institute") relating to a grant from the National Institutes of Health. The motion was adopted with the following roll-call vote: Governor Dingell - Yes Governor Driker- Yes Governor Dunaskiss - Yes Governor Massaron - Yes

Governor Nicholson - Yes Governor O'Brien - Yes Governor Pollard - Yes Governor Trent- Yes

• Government and Community Affairs Report -Vice President Lindsay

• Economic Development Report

Vice President Staebler noted that the RFPs for the second phase of the South University Village project were due at the end of last week. He said five were especially noteworthy, and he hopes to have some graphics to show the Board at a subsequent meeting.

Development and Alumni Affairs Report

Vice President Ripple provided a few updates to his written report. The Division's chief task is to find alternative ways to bring revenue to the University, and establishing contacts with alumni has a direct impact on the Division's success. The gift officers now meet with more than 400 alumni and friends every month and conduct meaningful conversations about the importance and value of investing in Wayne State. As a result, annual giving has increased by more than 30% since last year, with the average gift more than $100. Although the amount may not seem substantial, annual giving is actually a bellwether for future significant giving, in that most major donors start out as annual donors.

Mr. Ripple reported on a few significant gifts that were received after the written report was completed. The Dumesnil Scholarship in Music had been an annual gift, and has now been permanently endowed at $4.4 million. It helps nearly 350 students, providing direct tuition support to music students. Dr. and Mrs. Gary Armstrong, both WSU alumni, just made a significant gift of $100,000 to support student scholarships in the School of Business Administration. Professor Larry Mann of the Law School made a generous gift to the Trial Advocacy Program, essential to prepare WSU law students in their field. Finally, one of the


College of Education alumni established a planned gift of $800,000 to endow scholarships for Counselor Education.

Dissolution of the Elaine C. Driker Endowed Fund for the Detroit Orientation Institute

ACTION - Upon motion by Governor Nicholson and seconded by Governor Dingell, the Board of Governors approved the dissolution of the endowed fund as presented, and the transfer of the funds to establish a new endowed scholarship in the Irvin D. Reid Honors College. The motion was adopted unanimously.

President Gilmour noted that, although an endowment fund was dissolved, the funds will be transferred to establish a new endowment fund to assist students in the Honors College. He thanked Governor and Mrs. Driker for their generosity.

Establishment of Endowment Funds

Vice President Ripple presented the endowment funds listed below for approval.

ACTION - Upon motion by Governor Nicholson and seconded by Governor Dingell, the Board of Governors established endowment funds that total $524,898.29 for the purposes presented. The motion was adopted unanimously.

1. The Dr. Tapan Data Endowed Student Research Fund in Civil Engineering to promote research and provide tuition support to students in civil engineering with the Transportation Research Group at the WSU College of Engineering $25,000

2. The Elaine C. Driker Endowed Scholarship to recognize scholastic achievement, encourage continued progress and provide assistance to students in financing their education in the Irvin D. Reid Honors College. $62,173.29

3. The Faculty of Pharmacy Endowed Scholarship to recognize scholastic achievement, encourage continued progress, and provide assistance to students in financing their education in the Pharm.D. program at the Eugene Applebaum College of Pharmacy and Health Sciences. $100,000

4. The Jane Fitzgibbon Endowed Student Award in the Department of Communication to recognize scholastic achievement, encourage continued progress, and provide assistance to students in financing their education in the College of Fine, Performing, and Communication Arts. $25,000

5. The Christopher T. Leland Endowed Scholarship in Creative Writing to recognize scholastic achievement, encourage continued progress, and provide assistance to students in financing their education in the College of Liberal Arts and Sciences.$25,000

6. The Dr. Judith T. Lipinski and Mr. Peter M. Gladysz Endowed Scholarship to recognize scholastic achievement, encourage continued progress, and provide assistance to students in financing their education in the School of Medicine. $25,000

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7. The University Art Collection Endowed Acquisition Fund to assist the University Art Collection in acquiring new works of art for Wayne State University. $262,725

BOARD OF GOVERNORS MEETING SCHEDULE, 2013-2014

Secretary Miller presented the schedule of meetings for 2013-2014, and asked for the Board's approval.

ACTION - Upon motion by Governor Dingell and seconded by Governor Pollard, the Board of Governors adopted the Schedule of Meetings for 2013-2014 as submitted. The motion was adopted unanimously.

The schedule of meetings of the Board, its standing committees, and the Executive Committee, for the period September 2013 through June 2014, is as follows:

September 20, 2013 November 22, 2013 February 7, 2014 March 21, 2014 May 2, 2014 June 27, 2014

Unless noted otherwise, the time schedule for the above meetings will be as follows:

10:30 a.m ... .. 12:00 p.m ... . 3:00 p.m ..... .

Board standing committee meetings Executive Committee meeting Board of Governors meeting

The additional dates listed below will be used only if a meeting of the Executive Committee is deemed necessary. Such a meeting would start at 9:00 a.m. on the following dates:

August 25, 2013 February 28, 2014 April 4, 2014

June 6, 2014 July 25, 2014

All meetings will be held in the McGregor Memorial Conference Center-Alumni House complex, unless indicated otherwise in the notice of meetings.

EXECUTIVE COMMITTEE REPORT

The meeting was President Gilmour's last formal Board meeting, and Governor Dingell expressed her personal gratitude as well as that of the Board of Governors and the University community for his having taken on the position three years ago. She said his leadership, wisdom, and insight have been invaluable to the University, and she continued with the following statement:

As President Gilmour's term of office draws to a close, the Board has considered a number of options to identify suitable way to recognize Allan's contributions to the campus - his outstanding leadership, his humor and grace, and his dedication to


leading this University even through times of extreme personal and difficult hardship. He brought stability to the University in times of considerable challenge and reaffirmed our faith in this institution and the students and faculty and employees we serve. Allan arrived at a time when Wayne State was in a difficult transition. In his calm ways and steady hand, he helped get Wayne State focused right where it needed to be. He put greater focus on our students, the most important part of our community. He listened and responded to the students, and students now have better services and better processes and hopefully more support to be successful. He brought us through some very difficult budget situations. and also without fail helped improved operations across the University. He helped secure the renewal of our contract with the NIH to host the Perinato/ogy Research Branch at Wayne State University, bringing $166 million to our institution over the next 10 years. Even more important than that funding are the Jives that will be saved by the research done at the PRB. Allan Jed the effort to establish the Multidisciplinary Biomedical Research Building on Wayne State's North campus. We broke ground on it this fall and it will be the largest construction project in the history of Wayne State. It will attract talent from around the nation, stimulate the local economy, and push forward the boundaries of knowledge.

We want future generations of Wayne State students to recognize Allan's contributions and his dedication to this University and the faith that the Board has had in his leadership. For this reason we would like to change the name of Ferry Mall to Gilmour Mall. This area of the campus is directly across from the Law School, adjacent to the Alumni House, the President's apartment, and the McGregor Conference Center - the place of so many meetings Allan will never forget. And also here is the McGregor reflecting pool which has been restored because of Allan's leadership, a place that has had deep meaning for Allan and where he has spent a significant amount of time of his presidency.

Governor Dingell concluded her statement with the following recommendation from the Executive Committee:

ACTION - Upon motion by Governor Dingell and seconded by Governor Pollard, the Board of Governors thanked President Gilmour for his service to the University and renamed Ferry Mall to Gilmour Mall, effective immediately. The motion was adopted unanimously.

Governor Dingell thanked Eric Jirgens, President Gilmour's partner, for having shared him and for having joined with him in becoming a significant advocate for Wayne State during the last three years.

President Gilmour was stunned and gratified by the recommendation. He said that Wayne State University has opened horizons for both him and Eric that they would never have encountered before. The circle of people in academia does not intersect greatly with automotive executives or interior designers, and he thanked everyone for making them feel welcome. The President said he has had a very fortunate life and career, first at Ford Motor Company and then on a variety of corporate and nonprofit boards that gave him an opportunity to work with interesting people. It was after a second career at Ford that he met Governor Dingell at a reception, where she asked if he would be interested in being interim president of Wayne State University.

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He said that these last three years have been the capstone to a wonderful professional career and have been so interesting and valuable in many ways. It was interesting to be at convocation and at graduation and see how students change during that time. He is impressed with the dedication of the faculty to their students, research, and to learning, as well as the dedication and responsiveness of the staff. President Gilmour said he realizes the problems that the tuition increases may cause, but he advised students not to hesitate to ask the staff and counselors at WSU for help and alternatives to continue their education.

Some of the most interesting moments President Gilmour experienced were at Alumni Association meetings. Often the first comment was "If not for Wayne, I would not be ... ", and it was fascinating to experience that gratitude and to see the excitement when alumni hear about or see the changes on the campus. Most people want Wayne State to succeed. They know what the University does and they want it to continue.

President Gilmour said the contract he agreed to in January 2011 indicates it is time for him to go. He is now 79 years old, and he never expected to be at Wayne long enough to tackle the strategic and long-term planning issues that need to be worked on and resolved. He believes the University will have a perfectly capable person to do so in his successor, Dr. Roy Wilson. There are many challenges left both in budget and strategic planning. The search committee led by Governors Pollard and Dunaskiss did a wonderful job, as did the search consultant and the Board members who followed up with interviews and reference tracks to find the person ideally suited for this University and clearly excited and eager to move ahead with the job. The President said his recent health difficulties made him realize even more that it is important to leave and let vibrant and more intense people move in. He was grateful to the Board for having allowed Dr. Phyllis Vroom to serve as Deputy President during this time; she proved to be of great help to him. They will continue working through the end of July when the new administration takes over on August 1. President Gilmour noted that in 2009 Dr. Vroom established an endowed scholarship in her name in the School of Social Work. The endowment is still underfunded, and President Gilmour plans to make a gift to bring it closer to the required $25,000 level, in appreciation of her help during his tenure. He praised her sound judgment, wisdom, and organization, and said he could not have found a better colleague to have worked with.

President Gilmour said he will not be here to conduct the University, but will read with interest and pride about the progress this institution and its people make. He intends to make a bequest to the University of $1 million, comprised of his after-tax compensation plus the value of some of the benefits he received; one-quarter of the bequest will be in a separate fund under his partner Eric's name. Before the estate plan matures, the pay-out rate from the endowment fund of 4.5%, or $45,000 a year, will be given to the University each October 1. Those funds will be designated for students primarily in their senior year who have a good academic record but have run into financial problems and may be in danger of not graduating. This will improve the graduation rate, and will be good both for the students and for the University. The legal papers have not been completed, but the remainder of the bequest will be fairly general, since the University must decide how it will use the proceeds in the future.

In closing, President Gilmour again thanked the Board of Governors and the University community for the experiences and opportunities during the past three years.


ADJOURNMENT

There being no further business, the meeting was adjourned at 3:44 p.m.

Respectfully submitted,

ecretary to the Board of Governors

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