(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. .