June 4-5, 1987
BOARD OF REGENTS
UNIVERSITY OF NEVADA SYSTEM
June 4, 1987
The Board of Regents met on the above date in Rooms 201-202,
Donald Moyer Student Union, University of Nevada, Las Vegas.
Members present: Mr. Daniel J. Klaich, Chairman
Mr. James Eardley
Mr. Joseph M. Foley
Mrs. Dorothy S. Gallagher
Mr. Chris Karamanos
Mrs. Joan Kenney
Mrs. Jo Ann Sheerin
Mrs. Carolyn M. Sparks
Mrs. June F. Whitley
Others present: Chancellor Mark H. Dawson
President William Berg, NNCC
President Anthony Calabro, WNCC
President Joseph Crowley, UNR
President John Gwaltney, TMCC
President Robert Maxson, UNLV
Mr. Donald Klasic, General Counsel
Dr. Warren Fox, Vice Chancellor
Ms. Mary Lou Moser, Secretary
The special meeting was called to order by Chairman Klaich at
9:20 A.M., on Thursday, June 4, 1987.
1. Denied Affiliation of Old College with the University of
Chairman Klaich stated the purpose of this special meeting
was to discuss the affiliation of Old College with the Uni-
versity of Nevada System. On April 17, 1987 the Board of
Regents met to consider a proposal from the Board of Trust-
ees of Old College requesting affiliation of its schools
of Law and Humanities with the University of Nevada System.
Regents previously had asked the Chancellor's staff to ex-
amine the proposal and to prepare a background feasibility
report. He commended Chancellor Dawson and Vice Chancellor
Fox for the comprehensive report distributed to the Regents
prior to the meeting. Mr. Dawson clarified a statement in
the report concerning the ability of UNS to incur debt.
Debt may be incurred providing the means by which that debt
will be repaid is known. Chancellor Dawson stated that Vice
Chancellor Fox had prepared the report, and had attended the
accreditation meeting of the American Bar Association (ABA)
in May when accreditation for Old College was being con-
Vice Chancellor Fox reviewed the meeting and the report. He
thanked Old College for its considerable participation co-
operation in the preparation of the report. Further, he
stated that this report reflects the thoughts of the Aca-
demic Council, the Presidents' Council and the members of
the Chancellor's staff. Questions from the Regents concern-
ing this issue also have been answered in this report. (See
report filed in the Regents Office.)
Highlights of the report are:
1. UNS studies in 1973 and 1980 recommended a law school
was not needed at that time.
2. UNLV's 1983 master plan included future establishment
of a law school.
3. The 1973 report stated that a law school with less than
300 students is possible, but very expensive. In 1986
Old College had enrolled 153 students in the Fall and
133 students in the Spring semesters. The estimates
for the number of students who might attend a law school
in Nevada are 250 per year, once that school is under
4. The accreditation for a law school at Old College was
denied, mainly because of the financial instability of
Old College. However, the denial was not based on fi-
5. Old College is awaiting a report from the Northwest Ac-
crediting Association, for accreditation of its Humani-
ties programs. The preliminary report listed a number
of strong points at Old College; however, the final
decision will not be made until sometime in the Summer.
If Old College does not receive accreditation at this
time, it must wait 2 years to re-apply.
6. A Reno building located on Second Street and which hous-
es Old College was donated by the Gannett Newspapers.
The original terms of the agreement state if the build-
ing is not used by Old College, it was to be sold with
the proceeds to go to the School of Journalism at UNR.
Gannett has now verbally agreed that the building can
be retained by Old College and sold to retire the debt.
7. An ABA survey shows the estimated annual cost of a law
school with 200 students is $2 million, for 500 students
it is $5 million, or an averge of $10,000 per student
per year. In addition to student costs are the build-
ings, libraries, etc. Upon questioning by Chairman
Klaich about the purposes for the building, Mr. Robert
List, a member of the Board of Trustees for Old College,
stated that at the time the gift was made, the building
was appraised at $5 million. Old College received a
gift of $1.3 million to make improvements; therefore,
the building is now valued at $6.3 million plus a law
library with an estimated value of $1.5 million.
8. Nevada has a number of students participating in the
WICHE program, wherein those students go out of State
to law schools. The number of WICHE students from
Nevada has been declining in the last few years, mainly
because of rising costs. The demand of students wishing
to participate in the WICHE program continues to climb
but the State appropriation is not keeping up with the
President Crowley stated he concurred in the findings of the
report and the recommendations. He stated the Humanities
program at Old College was excellent and UNR is interested
in exploring whether those programs could be incorporated
on its Campus.
Mr. List introduced the representatives of Old College pres-
ent. They include Mr. Warren Nelson, Chairman of the Board
of Trustees, Mr. John Flanagan and Mr. Bill Boyd, members of
the Board, Dr. Alan De Giulio, President of Old College, Ms.
Mary White Stewart, Dean of the School of Humanities, Mr.
Felix Stumph, Dean of the School of Law, and Mr. John Mc
Kissick, a student. Mr. List expressed thanks to the Board,
the Chancellor, the Chancellor's staff and the Presidents
for the time they have taken in the discussions on Old
Mr. List acknowledged that the debt at Old College is $3.8
million. He stated that Old College feels that Nevada does
need a law school and that enrollment would be approximately
240 students. Last year, 260 took the Nevada Bar Examina-
Mr. List related that there are two problems to be answered:
one is finances and one is the time frame for planning the
transfer of the School of Law to UNLV.
He stated accreditation has been more difficult and more
costly than the Board had originally thought. A law school
must be operating and prove the quality of its education
before accreditation and students cannot practice law unless
they graduate from an accredited law school. It is more
difficult for a private law school to attain accreditation
than a public school because of the finances; 72.4% of the
Old College graduates last year passed the Bar Exam. The
quality of the Board, the faculty and the students at Old
College is very high. All members of the Board of Trustees
Mr. List stated that if half of the students attending out
of State schools could be brought back to Nevada, they would
pay for the cost of the law school. He suggested leaving
the law school in Reno for 1 to 2 years because there is a
dedicated faculty and a number of students already in place,
and it would provide those students continuity in finishing
their law program. Problems he identified in the ABA ac-
creditation denial almost all related to dollars: higher
salaries for faculty and obtaining more senior faculty mem-
bers. Mr. List discussed tuition costs in various law
schools and, should UNS take over the law school, tuition
charges would need to be raised. He suggested charging
$7000 per student next year, allowing 150 students to en-
roll at UNLV, and the following year approximately 200 stu-
dents should be enrolled, thereby reducing the deficit
every year through this raise in fees. In this manner, pos-
sibly within 3 to 5 years, the debt then could be erased.
Mr. List stated he recognized the timing problem involved in
that Old College is requesting that UNS take over the pro-
gram immediately and begin courses in the Fall. He also
urged the Board to encourage Presidents Crowley and Maxson
to bring these programs to the Board for implementation
within that time frame.
Mr. List next discussed funding for the program and the
building. He suggested that UNS pay rent for its part of
the building at $300,000 per year, stating Old College would
help to raise the funds for this rental. This would also
give UNS the option to acquire the building at a future
Mrs. Sheerin questioned when Old College could reapply for
ABA accreditation and was told that the earliest would be
10 months from April 23-24, 1987. It would also require an
accreditation report and a visit to the school sometime in
Mr. Klaich asked if there was any relationship between the
Northwest and the ABA accreditation processes, and about the
fiscal note to accreditation. Dr. De Giulio related that
the two are not connected and further stated that the real
problem in the accreditation was that Old College did not
have the financial stability needed or required by the ABA,
but that a public school goes through its funding process by
the State. Further, he related that the ABA report also
stated that more space is needed for the law school, addi-
tional senior faculty should be acquired, additional library
materials and a full-time placement director are needed, as
well as higher salaries for their faculty.
Mr. Klaich was concerned about the ABA's comments on finan-
cial stability and questioned whether it would be the same
with the State of Nevada pumping funds into Old College.
Also, that there has been no support from the Governor, the
Legislature, or the State Bar Association of Nevada for the
System to acquire Old College. Mr. List replied that Old
College has not gone to the State Bar for support at this
time; however, its Board of Governors did give Old College
a resolution of support. The Nevada Supreme Court has also
given them support. The Governor in his Commencement speech
this Spring encouraged the continued operation of Old Col-
lege. As far as the Legislature is concerned, Lt. Governor
Bob Miller and State Senator William Raggio are members of
their Board of Trustees. Mr. List stated that he felt there
was a great deal of support for the continuation of Old
College. He further stated that they should have been be-
fore the Board of Regents a year ago, but did not realize
the difficulty of acquiring accreditation from the ABA.
Mrs. Sheerin stated that these very problems are the reason
UNS has such a stringent planning process for new programs.
She stated that in the process, each Campus must include a
budget for its program based on FTE funding, and explain how
a new program would affect other programs. She asked Dr.
Fox what kind of State funding UNS could expect to receive
from the Legislature. Dr. Fox replied that the funds neces-
sary have not been calculated; however, State resources are
tight and a law school would require a much lower student-
faculty ratio than other programs.
Mr. Eardley questioned the UNS 1980 study wherein no law
school was recommended and asked what had changed at this
time. Dr. Fox replied that that 1980 report stated the
State could benefit from a law school and the report only
considered attendance of full-time students, not part-time
students. Further, that report stated that the Board of
Regents could at any time decide in favor of a law school.
Mr. Karamanos left the meeting at 11:35 A.M.
Dr. De Giulio stated that there are currently 2750 prac-
titioners in the State of Nevada. About 1000 of those are
inactive or are from out-of-state. Approximately 200 prac-
titioners are added to the rolls each year.
Mr. Klaich questioned what changes had taken place between
1980 and 1987 that would now require a law school in the
State. Dr. De Giulio replied that the economics and popula-
tion increases are the main reasons. Mr. Klaich further
questioned whether, based on the material gathered to date,
a need has been stated for a law school. Dr. Fox replied
that only an in-depth study by UNS could probably truly
determine such a need.
Mr. Klaich questioned whether some of our students in Nevada
were not getting into law school. As nearly as can be de-
termined all full-time students are now going out-of-state.
A law school in Nevada would serve those students who wish
to go on a part-time basis.
Mrs. Gallagher stated that this was the first legislative
session where Legislators had not threatened to close the
Medical School. Informal discussions concerning a law
school were held with Legislators, but the concept was re-
ceived with a less-than-enthusiastic response. She felt it
would require a great deal of education within the State
before UNS could take on a professional law school, and that
the feelings within the Legislature would not be supportive
of a law school at UNS at this time.
Mr. List replied that he understands the concern of the
Board, but feels that there is substantial support within
the Legislature. He also stated there were substantial pri-
vate dollars to be found for a law school in the form of an
endowment, pledges for buildings, etc. Further, at this
time, the Legislature has great respect for the Board and
for its planning and accountability.
Mrs. Sparks stated that to take on a law school at this time
would add a great burden for funding and great risks would
have to be undertaken since these problems have not been
worked out within the System. She was concerned that the
respect for the Board would slip greatly if funding for
another major professional school was requested.
Mr. Foley stated he has always favored a law school in Ne-
vada and felt that the University needs additional profes-
sional programs. He further stated that tuition at other
law schools is extremely high for out-of-state and felt
that an in-state school could cut the costs for students.
He estimated that 25% of the Mc George Law School class is
from Nevada, and with a law school here most of those stu-
dents might stay in the State. He stated he didn't think a
law school in the System would cause any more problems with
the Legislature than currently exists and that all of the
schools within UNS are growing and improving and the Campus-
es are in a constant effort to improve these programs. He
urged the Board to look at this acceptance favorably, stat-
ing that it is a singular opportunity at this time to ac-
quire Old College and that it would be more costly to begin
a law school in a few years without the faculty and programs
that would transfer from there.
Mrs. Whitley said she felt the Board had a responsibility to
the State for the funding and for the students who wish to
attend Nevada schools and urged favorable consideration.
Mrs. Kenney questioned how UNS would pay back the $3.8 mil-
lion debt which is outstanding. Mrs. Whitley stated she
felt it would be up to the Administration and the staff to
determine this pay-back arrangement.
Mr. List stated that it wasn't necessary to come up with $3
million for the debt immediately, but that in the future UNS
could buy the building which would clear that debt.
In response to Mr. Klaich's question of continuing expenses
for Old College should UNS not make a decision at this meet-
ting, Mr. Warren Nelson stated that Old College had reached
the end. It has borrowed from the bank and the ABA keeps
raising the cost of accreditation and that they are facing
a $3.8 or a $3.9 million debt. Mr. John Flanagan stated
that Old College is prepared to go 30 days longer at the
In response to a question from Mrs. Sparks, Dr. De Giulio
said that there could be no quick accreditation for a law
school, that the transition from Old College would only lead
to an accreditation request by UNS.
Mrs. Sheerin stated that she felt a planning study was need-
ed before UNS could consider a law school and she was not
advocating that UNS consider this particular law school.
Dr. Maxson stated that he felt no additional planning could
be done before the June 30 deadline requested by Old Col-
lege. UNLV would, at a later time, use the planning proc-
ess already established within the System to bring forth a
new program, he said.
Mr. Eardley questioned when the last time the Legislature
had approved and funded new programs within the System. Dr.
Crowley reported that start-up funds of $300,000 for archi-
tecture and a Ph. D. in Biology at UNLV, are proposed from
Question 5 monies for new programs out of this Legislature,
but the last direct appropriation for any new program was
in 1977 when the Medical School expanded from 2 to 4 years.
Dr. Berg stated that new programs are a low priority with
the Presidents, and that the current programs need addi-
tional funding and expansion. Mrs. Sheerin urged the Board
to look at the whole picture of Old College and not just
Mrs. Sparks stated that she did not feel that it was really
fair to students for the Board to have to take over Old Col-
lege and pay increased tuition beyond the point of many
other law schools. Mrs. Sheerin stated that she felt Old
College was not charging $8000 a year for student tuition,
knowing full well they couldn't get it, but they are asking
the Board of Regents to do so. She stated that she did
not feel there were enough benefits to UNS to take on this
Mrs. Sparks questioned whether the law school and the hu-
manities schools could be separated. Dr. Crowley replied
that program planning would need to be done at UNR before
they could take the humanities program, but also funding for
that program would have to be found. He also said that UNR
does have programs in humanities, the program at Old College
is a different concept, and UNR is interested. The planning
for the humanities school would be relatively easy for UNR
to integrate immediately into its continuing education as
part of the general studies program. He stated that unless
a subsidy is found for the program, UNR would not be able
to incorporate the program. It would need a subsidy for 3
years and by the 4th year, he felt the program would be able
to stand alone. The cumulative deficit for those 3 years is
some $200,000 to $250,000. Old College has expressed in-
terest in providing these funds. Dr. Crowley stated that
the courses could be taught at UNR and would not be depend-
ent on the building at Old College.
Mr. Jeffrey Wing, and Old College student, questioned when
Nevada would have a law school. Mrs. Sheerin replied the
Campus needs a year or two to do the planning. Mr. Wing
replied he thought it would be advantageous to take over
the program now so that part-time students could be accom-
modated. Dr. Maxson stated that the law school question has
not been through his Campus planning process, that UNLV
would like to have a law school at some time in the future,
that his Campus people have spent endless hours since this
offer from Old College was presented, but he just does not
know how to make a transition of a law school within 30
days. There is the question of financing and accreditation.
Also, for accreditation, a building of 70,000 square feet,
all in one place, is required. That is the same size as
the Engineering building currently under construction on
the Campus at a cost of nearly $15 million. Further, he
stated that he felt the State should support any law school
and that it would be grossly unfair to ask students to pay
$8000 to $9000 per year for tuition.
Mr. List stated that he has contacted a number of people
concerning a fund-raising effort for Old College, but no
one will make a commitment unless the University will take
over the program. He asked for time to obtain firm commit-
ments for funding for a law school in the private sector.
Mr. Foley stated that he felt the Board would be remiss if
they did not allow Old College the opportunity to work with
these potential donors. Mr. List stated that he would need
a determination or a resolution by the Regents that they do
want a law school in order for any fundraising activity to
be successful. He stated that he felt he could raise $5
million up front and $10 million for capital construction
for a law school. Mrs. Sparks questioned that if the pri-
vate sector could come up with so much funding, how would
the Regents request from the Legislature State dollars to
operate the school once it was under way? Mr. List replied
that a law school is self-supporting after the first few
Mr. Foley moved approval to extend to September a decision
by the Board in order to give Old College time to commence
a fund-raising effort for a law school at UNLV. Mrs.
Mr. Eardley stated that it was a difficult position for the
Board and he did not feel the Board should impose on a Cam-
pus any program of these proportions. Mrs. Sheerin stated
that she felt it was a dilemma for the Board, and that they
are simply putting off a decision and that she was speaking
to defeat the motion. Mrs. Gallagher stated that she felt
the motion did not pose any sources of funding and she was
speaking against this motion. Dr. Maxson stated again that
he felt his Campus would have to go through the academic
process of program planning and he would not be willing to
take a program without the proper Campus planning. Mrs.
Gallagher stated that money isn't the only problem, but if
$15 million would solve the problem, would the faculty and
Dr. Maxson be able to go forward with a law school? Dr.
Maxson replied that he had never initiated this program,
that he has never initiated a program from the President's
office, that there is a process in place to do this, and it
would take the better part of a year for that process to be
completed. President Gwaltney of TMCC stated that it does
not have the funds to pick up any costs of the building.
TMCC is interested in the building and needs the space, he
said, but there are no funds to pay for rent.
Mr. List stated he felt that passage of this motion might
give them time to raise the $10 to $15 million necessary to
get a law school going. Mrs. Gallagher stated that it is
not fair to Old College, the Board of Trustees and the stu-
dents to consider this motion. She further stated she felt
Dr. Maxson would like a law school some day, and has gone
through the process and when he has the funding for such a
school, he would be most happy to take on that project. Mr.
Eardley stated that he wanted a law school in Las Vegas, and
when the law school is complete the Board should seek State
funding. Dr. Berg questioned whether a law school would
come above all of the other programs and planning the Presi-
dents' Council has done over the last several years for the
System as a whole.
Motion failed upon roll call vote:
Yea: Regents Foley, Whitley
Nay: Regents Eardley, Gallagher, Kenney, Sheerin,
(Mr. Karamanos was absent)
President Crowley asked for authority to proceed with the
negotiations for the humanities program. Mr. Nelson stated
that he hoped the humanities school could go to UNR and
would be very willing to negotiate and see whether they had
any funds to assist in the transfer to UNR. Mrs. List stat-
ed that he felt funds could be obtained and described sev-
eral agreements Old College has which might be considered.
Mr. Klaich stated that the humanities school was different
from the law school, that the program concerns are different
and that UNR already has an established humanities program
on its Campus. Dr. Crowley stated that if the funds are
available, he would refer the consideration of integrating
the program to the UNR Faculty Senate.
Mrs. Gallagher moved approval of Dr. Crowley being allowed
to negotiate with Old College for the acquisition of its
humanities program. Mr. Foley seconded. Motion carried.
2. Approved Allocation of Funds: Regents Scholar Program
The Regents Scholar Program was established by the Board of
Regents in 1983 to recognize outstanding scholastic achieve-
ment by Nevada students, and to encourage them to remain in
the State. For the last 3 years, the program has awarded
general elective credit to scholars. However, effective
this year, the program will award a 1-year (30-credit)
scholarship to students selected as Regents Scholars.
In 1986 the Board of Regents established an endowment fund
of $50,000 to support the Regents Scholar Program. This
endowment was created with the idea that additional funds
would be forthcoming from the Legislature. The legislative
funds have not materialized.
Mrs. Gallagher moved approval to allow the withdrawal of the
$50,000 endowment for the Regents Scholar Program and the
expenditure of $12,400 for these funds for 30 students for
the 1987-88 school year with the remaining amount to be
placed in a special account. Mrs. Kenney seconded. Motion
3. Discussion of Professional Salary Guidelines
Chancellor Dawson distributed a handout comparing the Arkan-
sas Study and the salaries of Administrators with the Sys-
tem. Mr. Dawson stated that the Board has adopted a goal
for all Administrators to be in the top quartile of the Ar-
kansas Study. At this time only the 2 University Presidents
are in that top quartile. Dr. Crowley stated that the fac-
ulty is roughly at the average of its comparison group. Dr.
Maxson stated that the faculty salaries are more in line
than the Administrators if one removes the 2 Presidents.
The Administrators are well below the average of the study
at this time. Mrs. Gallagher suggested that the Board
should move to place salaries at the average level first,
and then into the top quartile.
Dr. Maxson stated that the Presidents need flexibility when
hiring new personnel, and he gave as an example the hiring
of an Engineering Dean at UNLV. Part of that salary was
provided through private funds to achieve competitive level
for recruitment -- Chancellor Dawson stated that a 5% in-
crease is being sought from the Legislature for the faculty
which should move the faculty almost to the top quartile.
This 5% includes the 2% merit pool being considered by the
Legislature. Dr. Crowley related that the Senate and As-
sembly have agreed to include non-teaching personnel in the
merit pool, but is excluding positions of Deans and above.
Mr. Eardley stated that no defined salary schedule exists,
no automatic increments are provided for UNS professional
staff, an that UNS doesn't pay the total retirement for
UNS employees, while most other State agencies enjoy 100%
employer-paid retirement. A discussion ensued comparing
benefits of different State employee groups and he expressed
the need to examine the differences in benefits of the dif-
ferent groups. Mr. Eardley also questioned why UNS did not
receive longevity and merit steps for its employees as do
the school districts. Dr. Gwaltney stated that there was
a difference between University and Community College
counterparts, and the amount of pay received by these in-
dividuals, with pay for those in the Community Colleges
being lower than similar positions at the University level.
This lower salary relegates the Community College person to
a second-class citizen in his opinion.
The question of employer-paid retirement was discussed. Mr.
Dawson stated that he had been working with the System Com-
pensation Committee for the last 2 years urging them to ac-
cept employer-paid retirement for all professional employees
but each time it has been proposed, the Compensation Commit-
tee has rejected this proposal.
Dr. Calabro suggested that Nevada might be able to conduct a
Community College study on a national survey level, such as
the Arkansas Study does at the University level, which would
be of great service to all Community Colleges throughout the
Mrs. Gallagher moved approval to direct the Chancellor to
institute a plan to study salary policies and procedures.
Mr. Foley seconded.
Mr. Foley questioned whether it would help or harm the UNS
to be different from the public school system pay scales.
The meeting adjourned at 3:35 P.M.
Mary Lou Moser