Report of the Strategic Planning and Budgeting Committee (SPBC)

October 6, 2008

President Wilson convened the Strategic Planning and Budgeting Committee meeting at 11:45 am. Bill Walsh was welcomed to his first meeting. The notes from the previous meeting were accepted as modified to include Sustainability as one of the topics to be discussed at future meetings.

I. APBO Introduction

Dan Klotzbach explained the chart showing IWU's Accumulated Post-Retirement Benefits Obligation. The APBO is a liability that the University is required to report due to accounting regulations established in the early 1990's. The chart provides an estimate of IWU's future health care costs for retirees. Funds are not currently being set aside for this purpose and thus represent an unfunded liability. The amounts shown on the chart fluctuate based on a number of variables including inflation, medical rate trends, and the number of eligible employees. Since August 1, 2007, all new IWU hires have been made part of the Emeriti Program, a defined contribution program that does not have APBO implications. A very preliminary discussion ensued regarding possible ways to alleviate APBO increases in the future.

II. Tuition Policy

Before reviewing the tuition policy document, Dan Klotzbach explained various budget scenarios for the preliminary 2009-10 budget to provide a context. Various data elements were then reviewed, including comparative tuition data for the top 60 liberal arts colleges and our new aspirational peer group. Over the past four years, IWU ranked well below the peer averages for its comprehensive fee, both in absolute terms and in percentage increase. The peer group average never fell below a 6 percent increase, while IWU remained well under 6 percent over the same period. The Committee discussed the advantages and disadvantages of several increase scenarios for the 2009-10 academic year. There will be at least two more SPBC meetings before a final decision will be made regarding this policy. Admissions personnel will be attending the next SPBC meeting and will be asked to discuss how various increase proposals might impact our student recruitment and retention efforts.

III. Topics of Interest for Future SPBC Meetings

The President reminded the Committee that any additional topics of interest for future discussion can be conveyed to Michael Thompson by way of e-mail.

The meeting was adjourned at 1:10 pm.

Distributed to all faculty and staff: Nov. 3, 2008