MINUTES

THE BOARD OF DIRECTORS OF THE

KANSAS UNIVERSITY ALUMNI ASSOCIATION

FRIDAY, JANUARY 15, AND SATURDAY, JANUARY 16, 2016

ADAMS ALUMNI CENTER

Present: Richard E. Putnam, Chair John W. Ballard III Luke B. BoboAaron R. BrinkmanDonald R. BradaJames E. BredfeldtKevin E. Carroll (Friday only)Marci K. DeuthDebi Dennis DuckworthGregory E. EkJohn H. JeterCory L. Lagerstrom (Friday only)Jill Simpson Miller Camille Bribiesca Nyberg, Immediate Past ChairCindy Emig PenzlerLori Anderson PieningMark C. RandallEllen O. RemsingAlbert I. Shank Jr. Scott R. Seyfarth, Chair-ElectJerry D. SkillettTimothy T. Trump

Heath Peterson, PresidentBrad Eland, Vice President of Alumni ProgramsEmily Ellison, Alumni Programs Coordinator for

OperationsWilliam S. Green, Senior Vice President for Information

SystemsBryan E. Greve, Senior Vice President for Hospitality

ServicesTeri Harris, Vice President of MembershipHeather Plante Hawkins, Executive Assistant to the

President and Donor Relations Coordinator

Kelsey Hill, Alumni Programs Coordinator Paige Pendarvis Hofer, Student Programs CoordinatorDavid Johnston, Vice President of Marketing and Internet

ServicesJacey Krehbiel, Alumni Programs CoordinatorCalvin McConnell, Associate Development Director for the

Alumni Association at KU EndowmentMichelle Miles Lang, Director of Alumni ProgramsJoy Larson Maxwell, Director of Legacy RelationsDanny Lewis, Director of Alumni ProgramsJodi Nachtigal, ControllerDwight S. Parman, Senior Vice President for Finance

and Human ResourcesJennifer Jackson Sanner, Senior Vice President for

Communications and Corporate SecretaryBen Shepley, Director, Adams Alumni CenterLaura Stephens, Assistant Director of Hospitality ServicesAngela Riffey Storey, Vice President for Donor Relations Dan Storey, Staff Photographer and VideographerStefanie Shackelford, Vice President of Alumni RecordsTegan Thornberry, Assistant Director of MembershipBetsy Winetroub, Director of Kansas City ProgramsSusan Younger, Creative Director

Absent: Carrie W. CoulsonMissy Hodge McCarthyShelle Hook McCoyDave B. RolandDanielle Lafferty Hoover, Assistant Director of Kansas

Programs-Wichita

CALL TO ORDER:

Mr. Putnam called the meeting to order at 1:15 p.m. and asked for a motion to approve the minutes from the meeting held September 11-12, 2015. Dr. Jeter made the motion, seconded by Dr. Brada, and the Board unanimously approved the September minutes.

EXECUTIVE COMMITTEE REPORT:

Mr. Putnam briefly outlined the results of the Board’s self-evaluation. As in other recent surveys, the overall comments were positive, he said, with helpful suggestions regarding increased communication between Board meetings and the need to provide members earlier notice of committee agendas and other details. Mr. Peterson and the staff have responded and will continue to add improvements, including the addition of staff photos

to accompany all written reports. Mr. Putnam said he welcomed additional conversation regarding the length, format and room setup for meetings.

Mr. Putnam and Mr. Peterson reported on staff additions and promotions:

• Calvin McConnell is the Association’s new development officer at KU Endowment. He succeeds Mrs. Storey, who in September moved to the Association as vice president of donor relations. Mr. McConnell previously worked for the KU Office of Admissions. • Mr. Eland is now vice president of alumni programs, and Mr. Peterson thanked him for his leadership. He has overseen programs since Aug. 1, when Mr. Peterson became interim president.

• Mrs. Lang now directs academic programs, filling Mr. Eland’s former role. She has earned respect across campus, Mr. Peterson said, during her eight years as director of the Kansas Honors Program. In February, Mrs. Lang and Mr. Eland will start the search process for a KHP coordinator who can begin training in the summer as the staff and volunteers prepare for events during the 2016-’17 academic year.

• Mrs. Hawkins now coordinates donor relations in addition to her duties as executive assistant to the president. She has assisted in stewardship of Presidents Club donors in recent years, and her responsibilities will increase as the number of donors continues to grow and Mrs. Storey implements a more detailed stewardship program.

Mr. Putnam thanked members of the search committee for their thorough review of candidates last fall and their recommendation that Mr. Peterson become the Association’s president. He said the Association was fortunate to have Mr. Peterson and an experienced staff in place when campus protests and discussions of diversity and inclusion began the very week that Mr. Peterson was named president.

Mr. Putnam thanked Board members who shared their views during the campus discussions, explaining that Mr. Peterson reported alumni concerns to Chancellor Bernadette Gray-Little and campus leaders and offered the Association’s assistance. Teresa Clark, president of the KU Black Alumni Network, also wrote a letter of support to the Chancellor, which she shared with Mr. Peterson.

The Executive Committee also discussed the staff’s plans to update the Association’s 2012-2017 Business/Strategic Plan, which former president Kevin Corbett and former national chair Jay Howard had developed with the Board and staff. Mr. Peterson and senior staff members will meet January 18 to begin creating a new document, which will outline goals for the next three years. Mr. Carroll recommended that the staff create an annual “score card” for the Board to measure progress and refine goals if necessary.

Mr. Putnam also reported that the Executive Committee had discussed the best procedures for reviewing the Association’s employee handbook. The Audit Committee has periodically reviewed the handbook, and Dr. Bredfeldt had suggested that the

Executive Committee also participate in the review process, especially regarding matters that do not involve financial issues, because the Executive Committee has the authority to act on the Board’s behalf between general meetings. Mr. Putnam said the Executive Committee had agreed with Dr. Bredfeldt. Reviews of the handbook will begin with the Audit Committee, which will make recommendations to the Executive Committee for final consideration.

Mr. Putnam shared the latest developments regarding the Alumni Center’s future expansion. The two water tanks adjacent to the Alumni Center parking lot will remain in their current location because the City of Lawrence cannot afford the cost of moving them to the west side of Oread Avenue. With this option eliminated, Mr. Peterson developed a proposal for a new Task Force on Master Strategic Facility Planning to resume intensive study of the remaining options for expansion. He recommended that Mr. Carroll, who was the first director of the Alumni Center in 1983, chair the task force. Most recently, Mr. Carroll supervised the expansion of the Atlanta Athletic Club as its chief operating officer and general manager. The Executive Committee approved the formation of the group, and Mr. Putnam thanked Mr. Carroll for agreeing to lead the task force, which will include Board and staff members.

In response to a question from Dr. Jeter, Mr. Putnam affirmed that the Association has received a $2 million pledge for expanding the Alumni Center to provide additional student programs. Mr. Peterson added that another donor, who has designated a $20 million estate gift for the Association, also has endorsed the plans for expansion.

FINANCE COMMITTEE REPORT:

Mr. Ballard reviewed the January 14 Finance Committee meeting and thanked Mr. Parman, Mrs. Nachtigal and other staff members for their outstanding work. Mr. Parman presented the financial statements as of and for the five-month period ending November 30, 2015, which reflect a modified cash-basis loss from operations, but the loss is smaller than predicted. The loss totaled $84,849, compared to a budgeted loss of $114,414 before capital expenditures, resulting in a positive budget variance of $29,565. A loss from operating activities is typical during the fall, Mr. Parman explained, because of the cyclical nature of the Association’s finances.

Mr. Parman also reported that unrestricted gifts had increased since the November 4 hiring of Mr. Peterson as president, and he expects that trend to continue. Fifteen new donors joined the Presidents Club in December.

The committee also reviewed the Association’s insurance coverage, which includes a new cyber security policy to protect against fraud or a breach of the alumni database. KU Endowment also carries cyber security insurance coverage to protect the database, which both organizations share, and Mr. Seyfarth recommended that each organization be added as additional insureds on the other’s policy.

Mr. Parman also reported that KU’s information technology department vigilantly monitors “phishing” attempts to trick organizations into releasing passwords, and the IT staff immediately notifies the campus of any widespread phishing schemes. Dr. Jeter commented that the culprits behind “phishing” are becoming more sophisticated, and he recommended that staff receive training in cyber security.

The Finance Committee also discussed KU Endowment investment policies and practices. James Clark, Endowment’s new treasurer and senior vice president for investments, will be invited with the Alumni Association’s Finance and Audit committees to review these policies at some point in the near future.

Regarding the financial statements, Mr. Brinkman asked about the reduced expenses for public relations, travel and printing. Mr. Parman replied that the savings in printing occurred largely because of the timing of membership campaigns, and the reductions in public relations and travel resulted from the use of new Key Performance Indicators, which monitor the progress of all alumni networks toward specific, measurable goals. The KPIs help staff manage expenses efficiently and focus spending on the larger, more critical geographic markets, Mr. Parman said.

FAR ABOVE CAMPAIGN UPDATE:

Jerome Davies, KU Endowment senior vice president for development, thanked Mr. Peterson and Mr. Parman for their report to Endowment’s executive committee regarding the Alumni Association programs that are supported by Endowment’s annual $500,000 grant. Mr. Peterson and Mr. Parman demonstrated to the committee members that “there can be no greater investment than in the relationships cultivated by the Alumni Association,” according to Mr. Davies.

Mr. Davies reported that since the Far Above campaign surpassed its $1.2 billion goal in December, fundraising has continued, and the total raised is now more than $1.5 billion. The Board applauded the news. He credited the Alumni Association for its support of the campaign, which was vital to its success, he said, adding that the Association’s five “brand pillars” provide an impressive summary of the Association’s work to advocate for KU, communicate to Jayhawks in all media, recruit students and volunteers, serve KU and fellow alumni, and unite all Jayhawks. Many gifts to the campaign resulted from the relationships that Alumni Association staff and volunteers have cultivated in recent years, Mr. Davies said. He shared a few campaign highlights:

• $1.2 billion of the $1.5 billion raised thus far is in cash or will be in hand within six years. Only $267 million is deferred through bequests.

• Until the campaign ends on June 30, 2016, Endowment will continue to seek funds to support student scholarships as well as faculty and staff.

• One-third of KU’s current faculty members are older than 65, so recruitment of new faculty will be a top priority for the University.

Mr. Ek asked about the ratio of endowed funds to spendable funds included in the $1.5 billion raised, and Mr. Davies replied that 60 percent of the gifts are endowments. He noted that, because of the many construction projects currently underway at the University, spendable funds are in great demand. Mr. Carroll commented on the tremendous backlog of deferred maintenance at KU and other Kansas Board of Regents universities, and asked how KU and Endowment leaders plan to prevent the eventual repair and maintenance costs required for new projects from adding to the backlog in the future. Mr. Davies explained that in 2012 the Regents established a policy requiring that all new buildings include endowed funds for future repairs and renovations. He cited the example of KU alumnus and former Kansas legislator Carl Krehbiel, who set aside money to maintain the Krehbiel Scholarship Hall as part of his gift to fund the project because he understood the state’s ongoing challenges regarding deferred maintenance.

Mr. Seyfarth inquired about the future of residence halls, especially with the growth of large private apartment developments near campus. Mr. Davies said the University would add residence halls to accommodate an anticipated growth in enrollment, especially among international students, and to replace outdated campus residential options, including Stouffer Place (which will be razed), Oliver Hall and Jayhawker Towers. In fact, KU’s Central District project will include a 675-unit apartment building. In early January, the University sold bonds to fund a $350 million project to include the apartments, a new student union to replace the Burge Union, parking garage and, most important, an Integrated Sciences Building to replace the obsolete research and teaching facilities in Malott Hall, KU’s longtime hub for the sciences, which was built in 1950. Mr. Davies explained that the Central District project is an innovative public-private partnership, known as “P-3,” which public universities around the nation are considering as state funding continues to decline. As part of the P-3, KU created the KU Campus Development Corporation, a nonprofit corporation organized as a Limited Liability Company, or LLC. The bonds were issued by the Wisconsin Public Finance Authority, and a private firm, Edgemoor Infrastructure and Real Estate LLC, will oversee the construction, operations and maintenance of the Central District property, which KU will lease over 30 years. Revenue from the parking and residential facilities and increased tuition from enrollment growth will fund the lease payments.

Mrs. Piening asked about the challenge of educating state legislators who mistakenly believe that private funds from the Far Above campaign can replace state appropriations for public universities. Mr. Davies said that KU Endowment has purposely avoided public fanfare regarding the campaign’s success, and the foundation maintains a low profile despite its ranking among the top public-university foundations nationally.

Mr. Ballard asked whether the University’s experience with the P-3 for the Central District had been positive thus far, and Mr. Davies replied that Chancellor Bernadette Gray-Little studied the concept for a year before deciding that the University should proceed; in fact, she concluded that KU would incur a greater risk if it did not pursue the P-3 opportunity. He further explained that Kansas statute currently requires these partnerships to be approved only by the Regents. KU leaders have secured Regents’

approval, and both KU and the Regents have kept the Legislature informed throughout the process. Even so, there is concern that some legislators might want to seek approval in the future or try to put limitations on the Central District project that would impede its progress in meeting the three-year deadline for completion (and the one-year deadline for the new apartments to open).

Mr. Ballard commented that in recent conversations with Doug Girod, KU Medical Center executive vice chancellor, Dr. Girod has emphasized that P-3s are an entrepreneurial necessity for the Medical Center and researchers to pursue advances in drug discovery and treatment.

AUDIT COMMITTEE REPORT:

Reporting on behalf of Mr. Ek, Mr. Parman said the Association filed its Internal Revenue Service Form 990 on November 15, after the Audit Committee’s final review of the document. In addition, the independent auditors’ report for fiscal year 2015, which the Board had accepted in September pending the completion of Agreed-Upon Procedures as part of KU Endowment’s audit, was finalized with no additional changes.

PROGRAMS AND SPECIAL EVENTS COMMITTEE REPORT:

Mr. Brinkman commended Mr. Eland and the alumni programs staff for their continued successful collaboration on major events, especially the Rock Chalk Ball last April in Kansas City and the Jayhawk Roundup October 3 in Wichita. The Roundup raised $62,000—20 percent more than in 2014. Mr. Brinkman thanked Mrs. Nyberg and her husband, Glenn, for chairing the Roundup and Mr. Ek for recruiting a record number of sponsors. He said Mrs. Hoover, who led staff efforts on the Roundup, had participated in the committee meeting via telephone from Wichita because her second child is expected to arrive any day.

Mr. Brinkman reported that after thoroughly researching various options, staff members have decided to use a mobile bidding system at this year’s Rock Chalk Ball on April 23 at the Overland Park Convention Center. The Association will encourage participants to download a mobile application that enables them to bid on auction items using their smart phones. The Association will provide advance instructions via email; during the event, staff members, Student Alumni Leadership Board volunteers and representatives of the app company will provide on-site assistance and additional tablets and smart phones for participants who need help with their bids. The app providers estimate that the number of bids will increase and the checkout process at the end of the night will be much more efficient. Mr. Seyfarth and Mr. Skillett attested that mobile auction bidding had dramatically increased proceeds from fundraising events in their communities.

Kansas City area alumni John and Suzy Holt and Shanna and Joey Grant will co-chair the ball, and Topher Enneking will serve as master of ceremonies. Mr. Enneking has become well known as a poet and narrator of the “Welcome to KU” video.

Mr. Eland reported that staff members are studying other universities’ programs that provide online opportunities for alumni to identify and organize affinity networks. These programs would be in addition to the Association’s current five affinity networks (Black Alumni, Hispanic Alumni, Band, Veterans and the Endacott Society). The Association perhaps could restrict online access to dues-paying members. Online affinity also could provide opportunities to gather additional data, update records and identify potential reunion groups, he said. Staff members will report on their findings.

Reunions are another topic of study, Mr. Eland said. Through the years, as university enrollments nationwide have increased, attendance at class reunions has continued to decline. Alumni now tend to identify with their academic programs, living groups or other affinity groups rather than with their graduating classes, he explained. After gathering data from peer alumni associations, staff members will propose alternatives for future reunions. In the meantime, the Association will combine this year’s 50-year and Gold Medal Club pinning ceremonies during the reunion weekend April 15-16, he said.

Mrs. Maxwell shared legacy recruitment news. The Office of Admissions and the Association have held 14 of 15 winter receptions for admitted prospective students and their families. She thanked Mr. Carroll, Mrs. Duckworth, Mrs. Piening and Mr. Putnam for hosting events in Atlanta, Houston, Austin and Omaha. The final reception will be January 31 in Kansas City, where Tom and Debbie Ward will host. Mrs. Maxwell explained that 52 percent of students who attend these events ultimately enroll at KU. She attributed the success to the fact that current KU students attend the receptions while they are home during winter break, and they are the most effective recruiters. Their enthusiasm and eagerness to return to campus make a big impact on prospective students. Mrs. Maxwell also reported that since the Association created her staff position in 2012, enrollment of legacy students has steadily increased.

• In 2009, 15.8 percent of all KU students were legacies (3,337 students).

• In 2015, 23.3 percent of all KU students are legacies (4,482 students).

CAMPUS REPORT FROM JESSIE PRINGLE, STUDENT BODY PRESIDENT:

Ms. Pringle, a second-generation Jayhawk, is a senior from Chanute. She took office in April 2015, along with seven other executive staff members of Student Senate. She explained that the Senate’s chief responsibility is to determine student fees for the next academic year and which campus programs will receive support. Fees are currently $455.50 each semester. As student body president, Ms. Pringle is also the liaison between University leaders and members of the Kansas Board of Regents, and she currently chairs the Regents’ student advisory board. She highlighted several of the Senate’s accomplishments. Since last April, student leaders have:

• helped determine features of the new Burge Union that will be part of the Central District; the building will include the Sexual Assault Prevention and Education Center; KU Legal Services for Students, and a Reflection Room for students of all faiths;

• established a Native American Advisory Board;

• worked with the Regents to survey students statewide regarding the 2017 change in Kansas gun laws that will allow concealed carry on all campuses.

In response to a question from Dr. Brada, Ms. Pringle shared the gun survey results:

• 55 percent of students statewide favor amending the laws to prohibit guns.

• 70 percent of KU students favor prohibiting guns, but a majority of respondents at Kansas State, Fort Hays State and Pittsburg State favor allowing guns as of July 1, 2017, or extending the exemption for colleges and universities past July 2017.

• 42 percent of respondents statewide said gun laws would affect their decision to attend college in Kansas.

• 60 percent of KU students responding said the laws would affect their college choice.

Following a question from Dr. Jeter, Ms. Pringle outlined the recent campus protests and discussion of diversity and inclusion. She explained that the Student Senate’s executive committee had voted to begin impeachment proceedings in the spring semester against her, the student body vice president and the chief of staff because of allegations that the officers had failed to address multicultural issues on campus. (Note: In January, the Senate reversed course and halted the impeachment process.) The campus controversy has provided valuable lessons, Ms. Pringle said, and she is especially grateful to Chancellor Gray-Little for her leadership, wise counsel and support.

COMMUNICATIONS, MARKETING AND RECORDS COMMITTEE REPORT:

Mrs. Miller reviewed the committee’s discussion, which included the impressive results from the Association’s live online broadcast of the McCollum Hall demolition November 25, the Kansas Alumni magazine readership survey, and plans to promote the fiberglass Jayhawks created by three artists as part of the KU 150 celebration. Highlights included:

• Association staff members teamed with Treetop Productions and KU Information Technology staff to produce a live webcast of the McCollum Hall demolition. The broadcast, included interviews with University staff and students, prompted 15,000 visits to the Association’s website, a new record. Daily visits typically average about 1,500.

• 2,400 people watched the broadcast live, and #KUmccollum became a trending topic on Twitter.

• Staff members who worked on the project included Mr. Johnston, Dan Storey, Debbi Johanning, Kara Rodriguez, Michael Wick and Mrs. Maxwell. They worked with

colleagues from KU Housing, Design & Construction Management, University Archives and KU Info.

• The video has received more than 9,000 views to date on YouTube.

• The Kansas Alumni readership survey garnered a 7 percent response.

• 93 percent of respondents rated the magazine “Excellent” or “Very Good.”

• 85 percent read the magazine “Always” or “Often.”

• 70 percent of readers responding are 50 and older.

• 80 percent said they prefer the print edition of the magazine.

• 49 percent said they would likely read or share additional online content.

• 86 percent “like” or “love” the annual color calendar.

• The KU 150 fiberglass Jayhawks will be on display for the Presidents Club reception January 30.

• Mrs. Younger and local artists Stephen Johnson and Cathy Ledeker created the birds, which will be on display at the Edwards Campus and the Rock Chalk Ball before returning to the Alumni Center for exhibition at Commencement and in the summer.

• The Association will investigate the best options for selling the Jayhawks: via live auctions at the Rock Chalk Ball and Jayhawk Roundup, online auctions via the website, or through a raffle.

REVENUE DEVELOPMENT COMMITTEE REPORT:

Mr. Lagerstrom reviewed discussion from the group’s first meeting since expanding its name and scope beyond membership recruitment and retention. The committee will provide strategic guidance to help the Association maintain and increase revenue from membership, private giving, advertising, sponsorship and royalties, he explained. The committee will:

• Focus on member recruitment and retention, targeting the base of the membership pyramid of annual members and recent graduates, which aligns with the long-term campus strategy to connect with students as soon as they arrive on campus.

• Strive to increase revenue through corporate support, including a sponsorship platform, expanded advertising and royalties, and plan for potential changes in the Association’s current bank card contract with INTRUST, which expires in 2020.

• Coordinate with the University’s new effort to pursue corporate sponsorships.

• Develop metrics and use data to evaluate current revenue streams and develop new opportunities to generate funding for alumni programs.

DEVELOPMENT REPORT:

Mr. McConnell, who recently joined the staff of KU Endowment after serving as assistant director of freshman admissions for the KU Office of Admissions, distributed an overview of fundraising through the first six months of the fiscal year (see attachment):

• Total fundraising has reached $571,535.

• Membership in the Presidents Club has grown to 542, compared to 510 in January 2015.

• Through KU Endowment’s Far Above campaign, gifts to the Alumni Association total $37,401,861. This includes more than $26.8 million in planned gifts and $10.5 million in outright gifts, pledges, realized bequests and life income gifts.

STATE FAIR OBSERVATIONS:

Mr. Putnam asked Dr. Brada to share his concerns regarding the University’s booth and displays at the Kansas State Fair in September in Hutchinson. Dr. Brada, a Hutchinson native and longtime leader and participant in the fair, said the annual event draws 90,000 to 100,000 attendees, and he believes KU can do a much better job of consistently engaging the public by providing handouts, presentations, giveaways and, most important, enthusiastic and friendly representatives who can converse with participants and share insights about the University—especially with prospective students and their families. He shared photos of the KU, Kansas State, Emporia State and Pittsburg State displays and activity.

Mr. Peterson said the staff would work with campus colleagues and alumni volunteers in the Hutchinson area to ensure that the University’s presence at the fair is more compelling. He reported that he and Mr. Eland and met recently with Carl Lejuez, the new dean of the College of Liberal Arts and Sciences, who expressed interest in collaborating with the Association at the fair.

The meeting adjourned at 4 p.m. and reconvened at 9:15 Saturday morning.

NOMINATING COMMITTEE REPORT:

Mr. Seyfarth, who chairs the committee, reminded Board members that the deadline for nominations is March 1. Currently the Board includes 26 members, and the bylaws limit the group’s size to 30. Six members will conclude their terms of service on June 30.

Mr. Seyfarth listed the following needs in terms of geographic representation: Arizona, Colorado, Florida, St. Louis and Washington, D.C. In terms of diversity, he encouraged nominations of Hispanic and Asian alumni as well as women. The Nominating Committee will review the professional expertise of remaining Board members to ensure that new directors work in fields currently not represented. Last spring, the committee chose to forward the nominations of four alumni for consideration this year.

The Nominating Committee will meet sometime between March 15 and April 30 to select a slate of nominees, which the full Board will consider for election at the May meeting. In addition to Mr. Seyfarth, the committee includes: Mr. Putnam (ex-officio), Dr. Jeter, Mr. Ek, Mr. Skillett and Ms. Coulson.

Mr. Seyfarth also explained that the committee will nominate the 2016-’17 chair of the Association as well as the chair-elect. Mr. Putnam asked Board members to submit their nominations for chair-elect to Mr. Seyfarth.

The committee also will select a new alumni representative to the KU Memorial Unions board to succeed Jane Harding Pohl, whose term ends in May. David Mucci, KU Memorial Unions director, often suggests alumni for the committee’s consideration, Mr. Seyfarth said. All members of the Chancellor’s Athletics Advisory Board are continuing their terms, so no alumni nominations will be necessary this spring.

LEGISLATIVE AFFAIRS UPDATE:

Tim Caboni, KU vice chancellor for public affairs, and Kelly Reynolds, director of state relations, reported on the University’s legislative priorities and the outlook for the 2016 session, which began January 12. Ms. Reynolds, a KU alumna and Wichita native, joined the Office of Public Affairs staff in August after working in state relations for Wichita State University.

Mr. Peterson reported that Ms. Reynolds met with members of the Jayhawks for Higher Education Steering Committee November 4 to discuss the University’s Central District project, and she and Mr. Caboni and the Association’s staff will meet with the committee throughout the session via conference calls. The Association and Public Affairs staff also will send general email updates to all JHE members.

Ms. Reynolds said she is honored to serve as her alma mater’s voice in the Statehouse, and she noted that because KU’s vast array of programs and services touch the entire state, the University is part of discussions in nearly every legislative committee. She also emphasized that during the recent efficiency study of the state budget by outside consultants, KU was the only state entity highlighted as a model of efficiency.

Ms. Reynolds said that much of her daily work occurs outside the House and Senate chambers and her success depends on building strong relationships with lawmakers and government relations officers from other Regents universities. Mr. Caboni said KU is

fortunate that Ms. Reynolds already has an impressive record from her work for WSU and strong relationships with legislators and her colleagues from other universities.

Because of the state’s strained budget and uncertain outlook for state revenues, the University will emphasize only two funding priorities in the current session:

• stable funding for the University as part of the block grant for the Regents system

• $3.4 million in merit-based salary enhancements for Medical Center faculty and staff

She shared a summary of facts (see attachment) related to these priorities:

• State appropriations per student, after adjustments for inflation, have decreased 40 percent over the past 16 years.

• Many Medical Center employees have not received annual merit raises in six of the past seven years.

• 62 percent of faculty in the School of Health Professions are paid less than the national salary average.

• 72 percent of School of Nursing faculty are paid less than the national average.

Mr. Caboni emphasized that, despite the overall trend of declining state funds for public universities, it is important to remember that the Legislature cut KU’s budget only once in the past five years, and KU received enhanced funding for two important initiatives:

• the hiring of 12 Foundation Professors, who are critical to the University’s research mission and to KU’s continued membership in the prestigious Association of American Universities

• construction of the new Health Education Building on the Medical Center’s Kansas City campus

Ms. Reynolds said that, considering the bleak budget outlook for the state, the University will strongly urge legislators to hold funding stable, but she acknowledged that salary increases for Medical Center professionals will not be possible this year. KU can hope to raise awareness of the need to address the salary disparities in future years, she said.

Mr. Ek asked about the challenges of demonstrating the need for state funding amid KU Endowment’s successful Far Above campaign. Ms. Reynolds noted three key messages that alumni can help emphasize:

• The vast majority of donors restrict their gifts to support programs they care about.

• The state must fulfill its duty to support higher education adequately.

• Donors’ gifts help lift the University to greater prominence—often in partnership with public funds. Mr. Caboni cited the example of the Health Education Building, which was made possible by $25 million in state funds, a $25 million grant from the Hallmark Family Foundation, and $25 million in gifts from other private donors.

Mr. Putnam inquired about the role of the Regents in legislative advocacy, and Ms. Reynolds explained that, as the governor’s appointees to oversee higher education, the Regents approve budget proposals for all six universities. Most recently the Regents extensively reviewed the details of KU’s Central District project, a $350 million public-private partnership (or P-3) to construct an Integrated Sciences Building, residential and dining halls, a new Burge Union for students, and parking facilities between 15th and 19th Streets and Naismith Drive and Iowa Street.

Dr. Brada asked how public funding for higher education compares with funding in other states, and Mr. Caboni said that during the Great Recession, funding for higher education declined in all states except for Wyoming, North Dakota and Alaska, which benefited from increased oil and gas production. Now that the national economy has recovered from the recession, many states are reinvesting in higher education. Only Kansas, Wisconsin and Louisiana have continued to reduce funding, Mr. Caboni said. However, higher education fares better in Kansas than in Colorado, where funding for public universities and colleges represents only 3 percent of the overall state budget.

In response to a question from Mr. Trump, Mr. Caboni said that state funds now account for only 15 percent to 18 percent of KU’s budget. About 30 percent of the budget comes from tuition revenue, Mr. Caboni said. Mr. Shank and Mrs. Piening commented that there is a widespread public misconception that tuition dollars support more of the budget.

Following Dr. Jeter’s question about faculty salaries at the Medical Center, Mr. Caboni said the Medical Center’s budget structure is far different than the University’s budget because of the relatively small number of students enrolled. The Medical Center cannot increase enrollment sufficiently to fund faculty salary increases, so there is no means for providing increases other than through cutting programs. As a result, KU cannot recruit faculty and staff to the Medical Center because the salaries are not competitive. Mr. Ek asked whether the KU Endowment campaign could fund raises for faculty and staff, and Mr. Caboni said that private gifts can support professorships but not merit increases.

Mr. Bobo asked how the U.S. funding model for higher education differs from others in the world, and Mr. Caboni explained that for many decades the U.S. has been known for innovations and providing widespread access to higher education, especially through efforts such as the G.I. Bill following World War II. China is now copying the U.S. model, Mr. Caboni said. In much of the world, governments fund about 80 percent of higher education, but taxes are considerably higher and far fewer students can gain access to postsecondary education.

As a follow-up to the previous day’s conversation with Ms. Pringle, student body president, regarding the Regents’ survey of students and faculty opinions of Kansas gun laws, Dr. Brada asked Ms. Reynolds to comment. She said that because House and Senate overwhelming approved the legislation several years ago, she did not foresee any changes in the law, which will allow concealed guns on college and university campuses beginning July 1, 2017. The Regents will develop a system-wide policy, she said, and individual campuses will create their own policies regarding those buildings in which guns will be prohibited and screening will be installed. Mr. Caboni said that KU would likely prohibit guns in Allen Field House and Memorial Stadium, but installing screening equipment in all academic buildings would be cost-prohibitive. Faculty members have expressed grave concerns about guns on campus and the potential impact on teaching. Campus discussions will continue, he said.

Mr. Putnam thanked Mr. Caboni and Ms. Reynolds. Staff members will share Ms. Reynolds’ email address with all Board members, he added.

The Board adjourned to executive session at 10:15 a.m.

Respectfully submitted,

Jennifer Jackson SannerCorporate SecretarySenior Vice President for Communications