In its Oct. 22-24 meeting, the University of Vermont board of trustees chewed over ambitious new academic initiatives, settled on a financing strategy for a long-in-the-works greening project, and learned of the admissions challenges facing the university, and higher education generally, in a threatening demographic and financial climate.

The meeting began with an audible sigh of relief from board chair Ian Boyce that the financial picture UVM faces in the current academic year is so improved over last year's outlook. "What a difference a year makes," he said in his board chair's report, while cautioning that UVM and higher ed generally "aren't out of the woods yet."

President Daniel Mark Fogel picked on the theme of challenge, touting the many superlatives — from historically high ALANA enrollment to record numbers of Green and Gold and National Merit Scholars — that describe the incoming first-year class, but citing also a troubling statistic. For the first time ever, Fogel said, the average expected family contribution — derived from a complex formula embedded in the federal financial aid application — of returning students declined compared with the previous year's average. That reflection of the effects of the recession has put financial aid needs higher than were projected, by 1 percent of the total budget, and means that "targeted cuts" are to come.

Boyce and Fogel also highlighted two academic initiatives both said are essential to the university's continued rise and to sustained financial strength: a focus and invest strategy unveiled earlier in October called Spires of Excellence and a new general education requirement that was discussed in detail during the EPIR meeting.

"Nothing wilts faster than laurels when sat on," Fogel said, arguing that continued innovation is needed despite the glowing accolades the university has recently received. He was gratified that, concerning both Spires and the general ed requirement, "there is widespread recognition within the academic community that these are appropriate and indeed indispensable next steps in UVM's advance."

Chris Lucier, vice president for enrollment management, addressed the topic of strategic tuition pricing at the Committee of the Whole meeting. In a discussion with board members, Lucier and Fogel clarified the rationale for UVM's historic "high tuition, high aid" model of tuition pricing, which gives the university the flexibility to charge a relatively high price for those who can afford it and distribute the extra resources to needy students in the form of financial aid.

Lucier also foreshadowed the university's plan to increase merit aid — financial aid given to students who are academically talented, come from diverse backgrounds, or have other characteristics the university deems desirable — an essential tool many colleges use to shape an incoming class, which UVM has underutilized in the past, he said.

BFI focuses on Aiken

The Budget, Finance and Investment Committee focused on the selection of a funding mechanism to pay for the $13.4 million Greening of Aiken project. With committee members in agreement on the need to renovate 28-year-old Aiken Hall, home to the Rubenstein School of Environmental and Natural Resources, discussion turned to whether the project should be funded with a one-time cash payment or a long-term bond package. Susan Hudson-Wilson and John Snow were in favor of dipping into the university's reserve funds and having the Rubenstein School fundraise $1.6 million in addition to the $3.4 million it already raised to pay for the project. Those in favor of using a long-term loan said they didn't want to leave the university vulnerable by dipping into its $30 million unencumbered cash reserves, and wanted to take advantage of low interest rates and federal Build for America Bonds. In the end, committed members voted to pay for it using long-term financing with three members voting for the cash option.

BFI members passed a recommendation by the administration to set its FY 2011 State Capital request at $2 million. Some committee members thought the request was too low with Snow expressing concern that the university might potentially be "leaving money on the table" if it didn't at least try for a higher amount. Richard Cate, vice president for finance and administration, said the administration came up with the $2 million figure based on a number of economic factors including a "strong political indication" from some individuals in Montpelier.

Committee members were informed that Summer Session enrollment increased in 2009, resulting in a "positive cash influx" due to a reduced tuition rate. Committee members kept Summer Session rates 15 percent below that of regular academic year tuition by voting for a corresponding increase that put in-state tuition at $414 per credit hour and out-of-state tuition at $1, 046 per credit. BFI members also voted to reaffirm the university's current debt-ratio policies, which included an adjustment to its viability ratio to account for future liability associated with employment post retirement medical benefits.

General education discussion in EPIR

Aside from the university-wide requirement that undergraduates must earn six credits in approved diversity courses, UVM lacks a general education standard that spans all of the schools and colleges. That fact puts the university out of step with the majority of the nation's higher education institutions, Brian Reed, associate provost for curricular affairs, told members of the board's EPIR Committee.

Reed is chair of a work group charged by Interim Provost Jane Knodell with exploring key questions surrounding general education and designing a system for consideration at UVM.

Similar efforts to establish a general education requirement at UVM failed in 1979 and 2002 because of an inability to build a consensus among schools and colleges and within the Faculty Senate. Reed said he is optimistic this effort will be successful because of a greater sense among faculty that it is needed.

Reed also noted that the Internet is affording the working group the ability to run a process that is highly transparent and inclusive. Draft documents and meeting schedules are available at uvm.edu/provost/generaleducation, and an e-mail account, gened@uvm.edu, has been established to field questions. Several town-meeting-style forums will be held in November to give the university community the opportunity to learn more and speak out on general education questions.

Christopher Lucier, vice president for enrollment management, briefed the committee on the university's participation in the US-Sino Pathways Program. The initiative will build UVM's undergraduate international student population through a direct link to students from China. Lucier estimated approximately 50 Chinese students will enter UVM next fall through the program, a figure that will rise to 100-110 new students annually.