Approval of the Minutes: Minutes from the meeting of November 6, 2007 were approved as distributed.

Remarks by the Provost

Dr. Johnson informed the Committee that next semester the leadership would be laying the groundwork for a strategic planning process. The plan includes kicking off the initiative with a Deans retreat. She would like the FBAC to be an active player in the process.

Fiscal Year 2009 Planning Assumptions

The Committee reviewed budget and planning assumptions for fiscal 2009 through 2019:

Maryland State aid has increased as the state fiscal condition has improved. FY 2009 assumes a statutory increase from $1,400.04 to $1,533.00 per capita for a total University allocation of $25.8 million.

Provisional facilities and administrative cost recovery rates are in place through FY 2009 of 64% for on- campus organized research, 26% for off-campus organized research, 32.2% for on-campus other sponsored activity and 18.8% for off-campus other sponsored activity.

Subject to approval by the Trustee Investment Committee, endowment payout growth would be 4% in FY 2009 and continuing at that rate of increase from FY 2010 through FY 2013.

Salary budget increase guidelines are 3.0%.

Fringe benefits planning rates are 32.5% in FY 2009 and FY 2010, 33% in FY 2011, 34.5% in FY 2012 and 35% in FY 2013; down considerably from last year's planning figures.

Linda Robertson updated the committee on issues at the federal level. Citing that policy makers lack confidence in higher education, she listed proposals for change on issues of endowment minimum payout, conflict of interest, accreditation reform, reporting requirements on community benefit, and tuition control. Actually enacted was a 35% cap on F&A that was attached to the FY08 Defense Appropriation Bill. Affecting only 6.1 accounts, the impact on JHU is expected to be about $500 thousand; however, it sets a bad precedent as no hearings were held and there was no evidence of abuse. Jim Kaufman discussed state issues and updated the Committee on the Special Legislative Session that addressed the State's structural deficit. He indicated that no cuts to Sellinger Aid were discussed at the Special Session but that the Governor must make additional cuts of $500 million to the state Budget. A referendum on slots will be on the November ballot. If passed, about half of the revenue will go to the Maryland Education Trust Fund and will be used to fund capital projects for K-12 and higher education.

Employee Benefits Update

Ms. Hayes distributed a handout on proposed fringe benefit rates for FY09-FY13 compared to those in last year's plan. Rates have gone down due to cost saving measures as well as a moderation in health cost increases. Several members of the Committee expressed concern with the University's ability to keep private the information received through the Health Risk Assessment. Members of the committee thought the communication about the Assessment as well as changes to benefit dollars were not as clear as necessary. Dr. Hough suggested to Ms. Hayes that she could use the FBAC as a focus group on future communications.

HopkinsOne Update

Ms. Reel and Mr. Tikka attended the meeting and updated the group on HopkinsOne. The team is currently focused on calendar year end readiness and shadowing PIs. Ms. Reel stated that communication has been an issue. Mr. Tikka expanded on the need for improved communication and training. Current strategies include deploying Business Solution Managers to fix problems and ensuring that HopkinsOne is meeting business needs around the institution. Fast Facts sessions have also been implemented as a communication tool. Next steps consist of continued faculty outreach including a reconstituted Faculty Advisory Committee with its first meeting in January, application improvements, and process change initiatives.

Respectfully submitted,
Linda R. Nathan

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Last updated 31Mar08 by dgips@jhu.edu