May 22-23, 1982
BOARD OF REGENTS
UNIVERSITY OF NEVADA SYSTEM
May 22, 1982
The Board of Regents met on the above date in the Alumni Lounge,
Jot Travis Student Union, University of Nevada, Reno.
Members present: Mr. Robert Cashell, Chairman
Mr. John R. Mc Bride, Vice Chairman
Mr. James L. Buchanan, II
Ms. Frankie Sue Del Papa
Mrs. Lilly Fong
Mrs. Dorothy Gallagher
Mr. John Tom Ross
Mrs. June Whitley
Member absent: Mr. Chris Karamanos
Others present: Chancellor Robert M. Bersi
President William Berg
President Joseph Crowley
President Jack Davis
President James Eardley
President Clifford Murino
Also present were Faculty Senate Chairs and Student Association
The meeting was called to order by Chairman Cashell at 8:20 A.M.
1. Budget Contingency Plan for FY 83
On May 6, 1982 Governor List requested all State agencies to
prepare a contingency plan calling for reductions of up to
10% of their budgets for FT 83 in response to what now ap-
pears will be a shortfall in State revenues. The University
System, recognizing the seriousness of the State revenue
situation, agreed to cooperate in this effort.
The following Budget Contingency Plan for FY 83, as prepared
by the Presidents, was presented for consideration:
Action Reductions $ %
1. Reduce operating
expenditures $1,350,000 $1,350,000 1.0%
2. Transfer expenditures
from state to non-state
sources 900,000 2,250,000 3.1%
3. Eliminate equipment
acquisitions 135,000 2,385,000 3.3%
4. Eliminate or modify
programs 115,000 2,500,000 3.5%
5. Freezing of vacant and new
professional and classified
positions 1,100,000 3,600,000 5.0%
6. Action through declaration
of financial exigency * 10.0%
*Due to the UNS 1982-83 contractual relationships with
its employees, further budget reductions would require
the State of Nevada's economic condition to deteriorate
to a point where the UNS would be compelled to declare
a state of financial exigency.
Director of Financial Planning, Mr. Ron Sparks, explained
that financial exigency could occur only if the State appro-
priation to the System were frozen in some degree. This
declaration would be necessary to attain the addition 5%
after items 1 through 5 had been enacted, and could include
such items as reduction in contractual salaries, work fur-
loughs, program modifications and program eliminations.
Upon questions by Regent Fong, it was pointed out that it is
not the intent to freeze all vacant positions in the System,
that some of these positions will be filled depending upon
the needs and prioritites of the various institutions; and
that the Presidents may have to include in cutbacks some of
those programs which are the least productive and cost ef-
Regent Del Papa stated that she wanted the faculty and
others in the System to realize that this is not an easy
decision for Regents to make and that they will certainly
do all they possibly can to be certain that all State agen-
cies and groups contribute a fair share to any State emer-
When asked to give a brief overview of the current State
budget situation and the reason for this proposed contin-
gency plan, Mr. Sparks related the following:
The projections indicate at the present time that the
State will probably begin next fiscal year (July, 1982)
with about a $42 million unappropriated balance in the
State General Fund.
If revenues were spent as currently appropriated by the
Legislature, that $42 million will decline by about a
$5 million deficit by the end of the current fiscal
year (June, 1983). In order to avoid a deficit, and, of
course, the State of Nevada, by Constitution, cannot
have a deficit budget, the Legislature in all likelihood
will ask that a 1977 appropriation by the State Retire-
ment Board of $20 million be returned. That 1977 ap-
propriation was made with the contingency that should
there be an emergency, the funds would be returned.
Providing the $20 million Retirement Board appropriation
is returned, there will then be an approximate balance
of between $15 and $20 million at the end of next year.
The key point, and the most critical point, that most
seem to overlook, is that Nevada will probably spend
about $40-50 million more next year than it earns. This
means that the first call on any new money, after next
year, must first go to meet that $40-50 million deficit.
It will take about a 12-13% increase in revenue to cover
this amount, while revenues have been increasing only
about 7 1/2% each of the last two fiscal years.
The current request for contingency planning is only
just the beginning if the aforementioned does become
reality: if revenues do not increase greater than the
7-1/2 percent, if services aren't cut back, or if the
revenue structure isn't changed.
President Crowley expressed concern and asked for a clari-
fication that if only a portion of the 10% reduction was
necessary, whether all institutions would be affected. He
pointed out that his concern is that in the proposal, all
institutions shared in item 1, but almost all of items 2 and
3 were from UNR, who could thus suffer a substantially dis-
proportionate cut than would others.
Regent Ross thanked the Administrators and Mr. Sparks for
their efforts in having worked out the contingency plan.
All Regents expressed a desire that the plan will not have
to be implemented.
Mr. Mc Bride moved that the contingency plan be approved as
proposed, providing that a full 10% cutback was required,
but that if less than the full 10% is sufficient, that all
institutions then share proportionately in the reductions.
Motion seconded by Mrs. Gallagher, carried without dissent.
2. Budget Transfer Authority
Current Board of Regents Budget Transfer Policy delegates
to each President the authority to transfer up to $10,000
into or out of each operating account, while the current
Board of Regents Bylaws, approved March, 1982, provide for
delegating to each President the authority to transfer funds
without an upper limit.
Vice Chancellor Dawson explained that while Presidents do
have the authority to transfer funds without the upper limit
by virtue of the Bylaws, the matter was placed on the agenda
because it is a major deviation from the current practice.
Chancellor Bersi further stated that a quarterly report of
transfer activities would be submitted for Board review, and
that his staff would be monitoring transfers on a daily
Ms. Del Papa moved for approval. Motion seconded by Mrs.
Mr. Buchanan objected to such authority being given the
Presidents, stating that he felt this was an erosion of
Board authority. Mrs. Fong also disagreed with the move,
reminding the Board of past experiences in this same area.
Ms. Del Papa, Chairman of the Budget Committee, stated she
had discussed the situation with the Presidents and Chan-
cellor's staff and felt the Presidents needed the flexi-
bility to manage their own Campuses and that there was suf-
ficient control for the Board to be able to determine the
proper handling of funds. Mrs. Whitley declared that if
the Board was going to give a person responsibility, that
the authority to act should also be given.
It was further pointed out by Mr. Dawson that the current
policy of the Controller's Office will not allow accounts
to show a deficit; therefore, Presidents needed the flexi-
bility to be able to authorize transfers to handle accounts,
such as utilities, when the need arises, without waiting a
month to six weeks for the item to appear before the Board.
Motion carried with Mr. Buchanan voting no and Mrs. Fong
3. Signature Authority for Deputy Controller
Vice Chancellor Dawson requested approval for signature
authority for Mr. Art Roberto, newly appointed UNS Deputy
Controller, in addition to that previously authorized for
UNS Controller Janet Mac Donald.
Mr. Mc Bride moved approval of the request. Motion sec-
onded by Ms. Del Papa, carried without dissent.
4. Appointment of Dean, College of Engineering, UNR
President Crowley recommended the appointment of Dr. Peter
A. Krenkel as Dean of the College of Engineering, UNR, ef-
fective July 1, 1982, at a salary of $54,000 with the rank
of Professor, with tenure, in the Department of Civil Engi-
neering. Background material on Dr. Krenkel was distributed
to the Regents and is filed with the permanent minutes.
Mr. Mc Bride moved for approval. Motion seconded by Mrs.
Fong, carried without dissent.
5. Appointment of Acting Director, Water Resources Center, DRI
President Murino recommended approval of the appointment of
Dr. Paul R. Fenske as Acting Executive Director, Water
Resources Center, DRI, effective July 1, 1982, to replace
Dr. Peter A. Krenkel.
Mrs. Fong moved for approval. Motion seconded by Mrs.
Gallagher, carried without dissent.
Vice Chancellor Dawson asked for consideration of an emergency
item, noting that the Board of Regents had in April, 1982, es-
tablished the University of Nevada System Foundation Trustees.
At that time, the Board had not been apprised of the need to
establish the Board of Regents Endowment Development Account
Fund within that Foundation.
Mr. Buchanan moved to accept this matter as an emergency item.
Mrs. Gallagher seconded. Motion carried.
Mrs. Fong moved to establish the Board of Regents Endowment
Development Account Fund within the UNS Foundation. Motion
seconded by Ms. Del Papa, carried without dissent.
The meeting adjourned at 8:50 A.M.
Mary Lou Moser
Acting Secretary of the Board