Meeting Notes from July 24, 2000
Present: E. Horsch, T. Rogers, I. Cheney, D. Lassila, A. Quinn, H. Hiner, J. Pickens, B. Keen, M. Hendricks
Guests: M. Haapapuro, J. Meldrum, J. Seppala
Rogers opened the meeting reporting for Group 1 and giving that group's summary of solicited input research faculty on the effect of fringe benefits rates on MTU's research competitiveness on externally funded grants and contracts. The informal Research Advisor Group (RAG) which has formed on campus has drafted a seven-page paper with one item being fringe benefits issues. Based on this collective input, several ideas and concerns were then discussed, with a common theme being the inevitable reduction in graduate student numbers, faculty summer time, and research staff caused by rising non-research costs (such as fringe benefits multipliers on salaries). Rogers asked if the committee should narrowly focus, in the report to the Provost and in the planned Forums, on the fringe benefits issue or include all factors identified by concerned research faculty (e.g., increasing overhead rate, rising tuition, a semester schedule not conducive to proposal writing, etc.) Quinn and Hendricks felt the committee should note the other items as well since the fringe benefit rate change is just "the last straw" that has brought the frustration of many research-active faculty and staff to the forefront. Quinn noted that the RAG report implies incorrectly that the University is overcharging on the Indirect Costs when it is actually low in that area. Hendricks pointed out that the Tuition Reduction Incentive Program (TRIP benefit) is excluded in the fringe benefit rate right now.
Group 2 report by Pickens and Lassila included hand-outs of the benefits (total) at MTU and split out with examples from different classes of employees. The committee plans to present this information to the campus community in the planned Open Forums in August. Several possible fringe rate scenarios will also be presented to promote discussion of alternatives. Discussion of what cost elements should and should not be included in a "one-fringe-rate-for-everyone" approach followed. For the upcoming Forums the plan is to present two versions, one fringe rate for everybody with everything (i.e., all incurred fringe benefits costs) in it, and another model in which faculty summer salaries are fringed at the true cost of about 20.5% and everyone else has a lumped rate. Approaches based on detailed employee classifications (such as the University of Michigan model), or on tracking individual employee costs, will not be presented or recommended as they are time-consuming administratively.
Group 3 had not met separately since the last Committee meeting and did not report to the collective membership. The subcommittee has already submitted a draft document that can be used in the Forum presentations.
The Academic Forum is planned for August 1, at 10am and the Senate sponsored open forum is set for August 2, at 10am. Next meeting (Monday at 8:30am, Room 510, Admin. Building) will work out the presentation and handouts which will be available at the Forums.
Submitted by: Helene Hiner