UCCSN Board of Regents' Meeting Minutes
May 22-23, 1982


Pages 90-95



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:

Budget Cumulative

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