Approved Minutes For Meeting On December 16, 2009

Date: December 16, 2009

Program:

1. The meeting was called to order by the Chair, Jake Baggott. Visitors and guests were welcomed and introduced.

2. Roll CallMembers Present: Tuesday Ashner, Jake Baggott, Steve Buhman, Carla Coppi, JP Dunn, Pat Eckert, Jon Geiger, Dana McKenzie, Layla Murphy, Amy Rose, Sue Tin, Sharon Walters, Gloria Yuncker.

Members Absent: Natalie Branca, Janet Douglas, Barbara Nowack, Mike Reiman, Rod Sievers.

Proxies: Layla Murphy for Allison Sutphin, Sharon Walters for Verne Goode, Gloria Yuncker for Barbara Lokaitis.

Visitors and Guests: Tracy Bennett, Carl Ervin.

3. MinutesThe minutes of the meeting on November 18, 2009, were approved as presented.

4. Adoption of Meeting Agenda: J. Baggott announced that he will be unable to stay after he gives his chair report, so JP Dunn will conduct the remainder of the meeting. JP Dunn moved to adopt the agenda; seconded by P. Eckert. Motion carried.

5. Reports

5.1 Chair 
J. Baggott reported he attended three meetings since the Council last met, and the issues discussed were much the same at each meeting. At the Board of Trustees meeting, there was much discussion about the hiring of Rita Cheng as the new chancellor. One Trustee expressed strong feelings against the hiring, though J. Baggott believes it was more out of concern for the budget. The other Trustees, however, voiced support for the decision. J. Baggott commented that he is very pleased with the hiring of R. Cheng and is anxious for her to begin in her position. The next meeting was held on December 11 with the constituency heads, deans and vice chancellors. President Poshard had called the meeting to discuss the budget situation. J. Baggott indicated he sent an e-mail to the listserv, as did the President, reporting on the discussion that took place. The President will have ongoing meetings with that same group, and J. Baggott indicated he will report back to keep everyone informed.J. Geiger commented that concerns have been raised that A/P staff may be targeted if furloughs or layoffs are instituted because they are not unionized. J. Baggott responded that there was discussion about those possibilities; however, General Counsel Jerry Blakemore made it clear that it is not possible to take those actions because of all the union contracts. J. Baggott was left with the understanding that there are no specific plans for layoffs that are targeted to any particular group or that there are plans for layoffs at this point. J. Geiger asked if it was possible that union employees could be paid without paying the non-union employees. J. Baggott responded that he asked a similar question because he works in an area that has many auxiliary-funded operations (restricted funds), and they have the resources to make payroll. He asked how it would be handled if the University continues to be short on state funds, but has sufficient funds to pay the employees who work in the auxiliaries. Duane Stucky (Vice President for Financial and Administrative Affairs) explained that there is no reason that [all payrolls] could not be met. T. Bennett commented that she has not heard discussions about differentiating between union and non- union employees when it comes to meeting payroll. She has always heard that it would be all or none. Furloughs would be a different story, should that occur. J. Baggott added that if layoffs were to occur, there is much planning that would need to happen before there is any real measurable effect. The exception would be if the Board of Trustees were to announce some sort of emergency (financial exigency). He had asked if there was an expectation that such a declaration would occur, and no one indicated that was a possibility.T. Ashner asked if the idea was raised about asking for volunteers for furloughs. Those people who can afford to might be willing to take a week furlough on a volunteer basis. S. Walters pointed out that there are retirement and health benefits to consider, such as whether someone taking a week furlough would be covered by insurance. T. Ashner indicated her research showed that the University would simply prorate out that one week. T. Bennett commented that she could not imagine it would be worth [the trouble] for all the universities in the state, who are in the same financial crisis, to go through CMS to remove and then add back to their insurance all those employees who might be furloughed.J. Geiger asked if there was anything constituents could do [with respect to contacting legislators] so that [layoffs and/or furloughs would not occur]. S. Buhman suggested sending legislators the message that if they do not do something immediately to prevent [layoffs/furloughs], then no one will vote in November for anyone who is currently in office. J. Baggott believes the President is [aware of the concerns] and has preferred to represent the University's interests in an official capacity. J. Baggott mentioned to the President that a grassroots effort could be easily generated if and when he (the President) believes it is appropriate. The President has expressed confidence that the state will make the payrolls; however, if the state does not change the situation by the end of this fiscal year, then next fiscal year will be far more difficult, particularly since the 7% in federal stimulus funds will not be there.J. Baggott noted that all these same issues were discussed at the constituency heads meeting. The new chancellor plans to engage herself at some level much sooner than June 2. She has already met with several staff members, and he is looking forward to speaking with her as soon as he can. S. Buhman asked if there was any mention of implementing "golden parachutes" for those people close to retirement. J. Baggott responded that he has not heard any meaningful discussion [regarding early retirement incentives]. When it was attempted several years ago, the idea was that the position would either not be filled or the person hired would come in at a lesser salary. However, that did not occur. Most of those positions were replaced and often at a higher salary. Additionally, it would cost too much for the retirement system, as well as the University, to pay out those benefits. Even to lay people off would be costly. J. Baggott noted that he did ask the President whether there had been any discussion-- should payroll run short-- about giving those who are well paid a partial check until funds are available to make up the difference. This might allow the [lower-paid staff] to meet their needs. The response was that doing so would not save enough money to make a meaningful difference, though J. Baggott believes it might be an important message in terms of morale before having to lay off someone. He told [the President] that, based on the feedback he has received, staff would prefer furloughs over someone losing her/his job. C. Coppi suggested it might be time to become vocal [about furloughs over job loss]. She recalled that the Council was opposed to the salary increases this past fiscal year, and despite ultimately supporting the resolution, it was with that caveat. She suggested that before there is talk of layoffs or furloughs, which will decrease current salaries, perhaps [there should be no discussion about raises for FY11]. T. Ashner mentioned that staff need to educate the public that the current financial situation is the fault of the legislators and not the University. It is the legislature (past and present) that has not appropriately taken care of the state's budget. P. Eckert agreed, pointing out that comments such as shutting down Saluki Way and using that money [to pay the University's expenses] shows that people are ignorant of what "restricted funds" means. There is much educating that needs to be done so that the public understands that it is a cash flow problem the University is not being funded. Additionally, there are other state grants that the University receives in addition to its normal appropriation that she believes are also not being paid. There are people working on grants who believe they can go ahead and spend that money; however, it is a state grant, and the state is not paying those bills, so the University is fronting that money as well, which is compounding the problem.

5.2 Board of Trustees - - [Given under Chair report]

5.3 Human Resources (HR) - None.

5.4 Representatives to University Committees

5.4a Ombudsman Advisory - Carl Ervin 
C. Ervin submitted and reviewed his report (included as appendix 1 to the minutes). He noted that the main concern of the University Ombudsman Office at this time is the possibility of being designated as an "office of notice," which is in conflict with the office's operating principles of confidentiality. If that were to occur, [the A/P Staff Council] may be asked to write a general letter in support of the office's past practices.

5.4b Recreational Sports and Services Advisory - Paul Bennett P. Bennett submitted his written report (included as appendix 2 to the minutes).

5.4c University Joint Benefits - Vanessa Sneed/John Massie V. Sneed and J. Massie submitted their written report (see appendix 3to the minutes). The Council briefly discussed the large debt from unpaid health insurance claims from 2008 and 2009. P. Eckert questioned whether it was legal to withhold premiums from employee paychecks when those funds are being used [to help pay the state's debt]. JP Dunn pointed out that, technically, it is not legal for the state to take money from the pension fund, but that is happening. T. Ashner noted that a government entity cannot be sued; so even though it is illegal, [the state] cannot be sued. P. Eckert pointed out that employees are paying their share of the health premiums and pensions, but the state is not paying its share.

5.5 Standing Committees

5.5a Executive Committee 
JP Dunn reported the committee met and reviewed the agenda for December, as well as the minutes from the November 18 meeting. There was discussion on: i) the proposed changes to the Operating Paper with respect to term limits; ii) the campus budget--the question was raised as to what the salary level cutoff might be if there were layoffs or furloughs; and iii) the commencement ceremonies, which will go on as scheduled.

5.5b Committee on Committees - None.

5.5c Constituency Relations 
S. Buhman reported that the A/P Excellence Through Commitment Awards have been cancelled for this year. A. Rose noted that she has not been contacted about the cancellation. T. Ashner responded that the Chancellor only just made the decision, and it will only be for this year. She suggested A. Rose may want to contact Kevin Bame's office and let them know that they need to get the word out about the cancellation; there may be individuals who are working on putting together nominations. A. Rose indicated she would do so. She believes if the awards are cancelled, the Chancellor should notify everyone as soon as possible, including sending a message via his listserv.

5.5d Operating Paper 
T. Ashner asked if there was any discussion in Executive Committee about the changes to the Operating Paper with respect to Springfield representation. JP Dunn responded that there was brief discussion, and it was decided to look into the issue further before making any decisions.

5.5e Staff Benefits - None.

5.5f Staff Welfare 
C. Coppi reported that she plans to contact Natalie Branca regarding her A/P committee service, as well as send her good wishes from the Council.

6. Old Business

JP Dunn reported the discussion regarding the proposed chancellor's budget policy committee will be postponed until January.

7. New Business - None.

8. Announcements - None.

9. Adjournment