The University

1
The Universitys Structure and Governance

• Dr. Robert F. Pack
• Vice Provost for Academic Planning and Resources
  Management

2
Commonwealth System of Higher Education

• Pitt is part of the
• Commonwealth System
• of Higher Education,
• including
• State-owned institutions
• State-aided institutions
• Community colleges and
• State-related institutions
• Each sector has a unique mission

3
Commonwealth System of Higher Education

• State-owned institutions
• The State System of Higher
• Education has its roots from the
• State Normal Schools and teacher
• colleges. The School Code of 1911
• called for the purchase of normal
• schools, and by 1921, the present configuration
  of the 14 state-
• owned institutions was established. In 1982, Act
  188 was signed
• into law establishing the Pennsylvania State
  System of Higher
• Education on July 1, 1983, including the 13
  former state colleges
• and Indiana University of Pennsylvania.

4
Commonwealth System of Higher Education

• State-aided institutions
• The State-aided institutions have been granted
  their status through the offering of programs
  that have been deemed to meet the public
  interest and are not being met by a
  State-supported institution and receive a direct
  Commonwealth appropriation. This designation
  presently includes eight institutions emphasizing
  certain medical, technological and arts
  specialties, such as Drexel University,
  Pennsylvania College of Optometry, Philadelphia
  College of Osteopathic Medicine, Thomas Jefferson
  University, the University of Pennsylvania, and
  the University of the Arts.

5
Commonwealth System of Higher Education

• Community Colleges
• Community colleges were officially
• authorized by The Community
• College Act of 1963 to establish
• institutions offering two-year,
• postsecondary, college parallel,
• certificate granting, associate degrees or adult
  education programs
• within reasonable commuting distances of every
  citizen of the
• Commonwealth. There are currently 14 community
  colleges in
• Pennsylvania.

6
Commonwealth System of Higher Education

• State-related institutions
• -- The Pennsylvania State University was
  chartered in 1855 as the Farmers High School of
  Pennsylvania. It broadened its mission through
  the Morrill Land-Grant Act and became The
  Pennsylvania State University in 1953. It now
  has 24 locations statewide.

7
Commonwealth System of Higher Education

• State-related institutions
• -- The Pennsylvania State University
• -- Temple University was chartered as Temple
  College in 1888, was incorporated as Temple
  University in 1907, and was granted state-related
  status by the legislature in 1965. Today, Temple
  University has five campuses in central and North
  Philadelphia, and its nearby suburbs, as well as
  campuses in Harrisburg and international campuses
  in Rome and Japan.

8
Commonwealth System of Higher Education

• State-related institutions
• -- The Pennsylvania State University
• -- Temple University
• -- The University of Pittsburgh was established
  as The Pittsburgh Academy by a charter of the
  Pennsylvania legislature in 1787. It was a
  private institution through much of its history.
  The current name was designated in 1908.
  State-related status was granted to the
  University in 1966. Today, the University of
  Pittsburgh system consists of its 132-acre main
  campus, located in the Oakland section of
  Pittsburgh, and regional campuses in Bradford,
  Greensburg, Johnstown, and Titusville.

9
Commonwealth System of Higher Education

• State-related institutions
• -- The Pennsylvania State University
• -- Temple University
• -- The University of Pittsburgh
• -- Lincoln University was chartered in 1854 as
  the Ashmun Institute as the first institution
  found anywhere in the world to provide a higher
  education in the arts and sciences for male youth
  of African descent. Lincoln was granted
  state-related status in 1972.

10
Commonwealth Funding
FY 2003 Budget
Educational General 143,982,000
Dental Clinic 1,083,000
Public Health Practice 263,000
Rural Ed Outreach 962,000
Disadvantaged Students 337,000
Lab Improvements Equip 2,375,000
Information Technology 2,375,000
Student Life Initiatives 475,000
Program Initiatives 2,517,000
TOTAL OPERATING 154,369,000

• The Commonwealth provides the University an
  annual appropriation. In FY 2003, these funds
  amounted to 154,369,000, or 28 of the operating
  budget. In terms of overall impact, however, the
  total appropriation accounts for only 13 of the
  total revenues of the University.

11
Academic Administration Structure

• The Board of Trustees oversees University
  governance.
• The Chancellor has authority on all planning and
  budgeting.

Board of Trustees
12
Academic Administration Structure
13
Academic Administration Structure
14
Collegiality and Shared Governance

• The University has a wide range of organizations
  that participate in governance activities
• University Senate
• Staff Association Council
• Student governments
• Advisory groups and review committees
• Faculty in academic units determine curriculum,
  graduation requirements, approve the granting of
  degrees, etc. through the authority granted them
  by the Board of Trustees.

15
Collegiality and Shared Governance

• University Senate consists of full-time faculty,
  selected administrators, student and staff
  representatives, and others.
• Senate Council is composed of elected faculty
  members and representatives of the
  administration, students, and staff.
• Faculty Assembly is a representative body of
  elected faculty.
• http//www.pitt.edu/univsenate/index.html

16
Collegiality and Shared Governance

• Standing committees of the University Senate span
  a wide range of issues.
• Admissions and Student Aid
• Anti-discriminatory Policies
• Athletics
• Benefits and Welfare
• Budget Policies
• Bylaws and Procedures
• Commonwealth Relations
• Community Relations

• Computer Usage
• Educational Policies
• Library
• Plant Utilization and Planning
• Student Affairs
• Tenure and Academic Freedom
• University Press

17
Collegiality and Shared Governance

• The purpose of the Senate is to create and
  maintain communication channels among University
  constituencies.
• Recommendations from Senate bodies are made to
  the Chancellor or other appropriate officer.
• The Senate Budget Policies Committee has a unique
  role in planning and budgeting.
• Each academic unit in turn has its own traditions
  and structures of academic administration that
  embody the institutional commitment to
  collegiality and shared governance.

18
Collegiality and Shared Governance

• The Staff Association Council is a representative
  body of elected staff that address issues
  relating to salaries, benefits, safety,
  grievance, and affirmative action, among others.
• Student groups are those representing
  undergraduates, CGS students, and graduate and
  professional students.
• http//www.pitt.edu/sac/

19
Management Decision Making

• The University has management processes that
  oversee faculty promotions, new program
  development, etc.
• The Planning and Budgeting System (PBS) is the
  principal structural guideline governing decision
  making as it relates to major strategic budgetary
  issues at the University.
• PBS was created in 1992 to
• increase openness and sharing of information
• expand participation in the decision making
  process, and accountability
• improve the ability of administrators, faculty,
  staff, and students to make sound decisions and
• enhance the University by setting and achieving
  higher performance standards.

20
Strategic Goals Allocation of Resources

• The Board of Trustees develops the goals of the
  institution.
• Each unit at each organizational level of the
  University provides more specificity to the
  institutional goals.
• Resources are then allocated in support of unit
  goals.
• The essence of planning and budgeting is the
  balance between top-down and bottom-up
  management decision making.

21
University Budget Process

• Like goal-setting, budgeting at the University is
  a strategic process.
• In one stream, the operational budgets of units
  derive from an upward flow, as departmental
  budgets come together to create unit and
  responsibility center budgets.
• In the other stream, the University Planning and
  Budgeting Committee recommends annual
  institutional budget parameters to Chancellor.
• For example, the UPBC recommends incremental
  compensation increases and functional
  applications, while the units determine how
  salary funds will be distributed to individual
  faculty and staff.

22
University Budget Process

• The UPBC develops annual parameters with regard
  to major revenue and expenditure components.
• For example, tuition revenues are determined to
  provide revenues, but within an environment of
  maintaining access (i.e. scholarships,
  competition, differential tuition rates, etc.)
• As another example, funds for salary increases
  are recommended to keep the University
  competitive, but in an environment of constrained
  revenues and other budgetary demands. These
  other needs include strategic investments in
  academic priorities, student life enhancements,
  equipment, information technology development,
  utilities costs, and insurance increases, among
  others.

23
University Budget Process
FY 2003 ( thousands) Unrestricted Restricted TOTAL
Tuition Fees 360,261 0 360,261
State Appropriation 171,932 0 171,932
Federal, State Local Grants Contracts 96,515 322,665 419,180
Gifts, Private Grants Contracts 12,644 65,729 78,373
Endowment Income 8,096 16,407 26,503
Sales Services 43,411 11,065 54,476
Total EG 692,859 415,866 1,108,725
Auxiliaries Other 130,787 24,861 155,648
TOTAL REVENUES 823,646 440,727 1,264,373
24
University Budget Process
FY 2003 ( thousands) Unrestricted Restricted TOTAL
Instruction 259,374 55,258 314,632
Research 47,466 316,598 364,064
Public Service 7,392 11,917 19,309
Academic Support 96,260 12,981 109,241
Student Services 61,425 4,861 66,286
Institutional Support 72,248 27,547 99,795
Plant Operation Maint 53,179 188 53,367
Student Fin Support 75,967 11,377 87,344
Total EG 673,311 440,727 1,114,038
Auxiliaries Other 150,335 0 150,335
TOTAL EXPENDITURES 823,646 440,727 1,264,373
25
Planning Budgeting Initiatives

• Within the overall annual budget process, the
  UPBC identifies funds for academic and student
  life initiatives
• These funds are allocated to support a wide range
  of activities throughout the University
• - creating new academic programs (Computer
  Engineering)
• - investing in selected programs of high quality
  (Philosophy)
• - implementing strategic plans (information
  technology)
• - developing the library collection
• - supporting student life initiatives
  (recreation facilities)
• - strengthening student support services (Pitt
  Pathway)
• - enhancing the capacity to raise private funds
  through the capital campaign
• -developing the City as Your Campus concept
  (Pitt Arts)

26
Capital Budget Process

• Like the operating budget process, the capital
  budgeting process is highly strategic.
• Resource allocation to capital projects is guided
  by the Universitys Ten-Year Facilities Plan.
• Projects are funded by a combination of
  Commonwealth capital funds and University debt,
  either Educational and General or Auxiliaries.
• Recent priorities have included recreation,
  residence life, research laboratories,
  classrooms, renovations to existing facilities,
  and selected new construction.

27
Results of Strategic Approach
Fall 1995 ? Fall 2001
7,700 Number of Applicants 15,900
1100 Average SAT 1170
83 Freshman Retention Rate 88
79 Acceptance Rate 60
22 Freshmen Top 10 High School Class 34
28
Lessons Learned

• Set clear goals and pursue them relentlessly,
  even when progress may be difficult.
• Maintain unrelenting focus on core academic
  mission and commitment to quality.
• Invest to maintain quality of programs and
  quality of student experience.
• Maintain discipline.