(pages of minutes for Special Meeting No. 2 of 1991 are out of
sequence for the date.)
***************************************************************
                          Page 3271

                          The Senate of
                Michigan Technological University

   Minutes of Special Meeting No. 2 of 1991 (October 22, 1991)

     1. No roll call was taken at this meeting.

     2. Curtis Tompkins made remarks about the MTU administrative
        officer situation and about the resignation of Duane
        Stucky.  These remarks were essentially the same as in the
        article in the Michigan Tech Lode published on October 18,
        1991.  There were a few more details.

        Tompkins believes the Board is starting to pay attention
        to MTU affairs more seriously.

        MTU had a weak financial system which must be improved. 
        Tompkins at first wanted to see if MTU could get along
        without a Vice President for Operations and Finance, but
        now he believes we need a good financial manager.

     3. Questions from those assembled were discussed.

        a. What are the details of the financial difficulties?

           Cash flow shortfall caused by $3.3 million owed to
           vendors and $4.0 million borrowed on a line of credit
           from Superior National Bank to be repaid by November 1,
           1992.  We should not count on receiving the $3.2
           million held back by the State of Michigan.

        b. Where did the $2.4 million payment to Ventures come
           from?

           It may have come from the "plant fund" which includes
           reserves for sick leave, vacation pay, and retirements.

        c. What is the projection for the budget reduction
           exercise?

           We must have money to handle the cash flow
           difficulties.  Arthur Andersen & Co. says we need $5
           million.  This means probably reducing personnel.

           To remove fears, doubts, and uncertainties, everything
           should be figured out by October 31.  The cabinet plan
           should be announced on November 1.  The intent is to
           protect the livelihood of every employee.  On November
           1, the Board of Control Subcommittee on Management &
           Finance meets with Tompkins.

        d. Other points made were as follows:

           1.  The faculty needs to know what the cabinet
               discusses.  The Senate should organize the
               information flow from cabinet meetings.

           2.  Curtis Tompkins would like to have discussions about
               merit raises and criteria.  He says he does not like
               across-the-board cuts.

           3.  No one seemed to know about the budget, because
               there were walls built-up around the different
               areas.

           4.  The Senate should develop an annual review of
               Tompkins.
.