A meeting of the Finance Committee of the Board of Trustees convened at 9:39 a.m. on Friday, June 11, 2021, on the Purdue University campus in West Lafayette, Indiana. The meeting was held in Stewart Center, Room 214, to allow for social distancing amid the COVID-19 pandemic. Restrictions were placed on the number of observers in the room, and other members of the media and the public who wished to observe the meeting virtually were provided such instructions. Everyone in the room was wearing a mask.

All committee members were present in person or, where specifically noted, by means of electronic communication pursuant to the Electronic Meeting Policy: Don Thompson, chair (virtually); Sonny Beck; Malcolm DeKryger; and Michael Klipsch. All other trustees were present: Michael Berghoff; JoAnn Brouillette; Vanessa Castagna; Theresa Carter; Gary Lehman; and Noah Scott.

Officers and administrators in attendance were: Mitch Daniels, president; Jay Akridge, provost and executive vice president for academic affairs and diversity; Chris Ruhl, chief financial officer and treasurer; Jim Almond, senior vice president, assistant treasurer, and assistant secretary; Steve Schultz, general counsel; Trent Klingerman, deputy general counsel (virtually); Janice Indrutz, corporate secretary and senior executive assistant to the Board; Ron Elsenbaumer, chancellor, Purdue Fort Wayne (virtually); and Tom Keon, chancellor, Purdue Northwest (virtually).

I. APPROVAL OF MINUTES

Upon proper motion duly made and seconded, the Finance Committee voted unanimously to approve the minutes of its meeting convened on February 5, 2021.

II. APPROVAL OF TUITION AND FEE CHANGES

Trustee Thompson recognized that tuition and fees were an integral part of the overall budget, and he asked the Committee for a robust discussion where needed. He then called on Ms. Eva Nodine, associate vice president for finance, to discuss the proposed tuition and fee changes for fiscal years 2022 and 2023. Ms. Nodine informed the Committee that the Office of the Chief Financial Officer and Treasurer endeavored to be transparent and efficient with regard to management of tuition and fees. She also reminded the Committee that the state required the university to set its tuition and fees every two years, with the required public hearing held on June 1, 2021.

Ms. Nodine outlined the recommendations for tuition and fee changes for the West Lafayette, Fort Wayne, and Northwest campuses. She indicated that fiscal years 2022 and 2023 would be the ninth and tenth years that tuition on the West Lafayette campus would remain frozen, with proposed tuition increases for the Fort Wayne and Northwest campuses in line with Indiana Commission for Higher Education recommendations. Ms. Nodine explained the reasons for increasing some existing fees and implementing new fees.

Trustee Thompson said it was important to note that differential fees had been part of the overall cost to students for many years and were implemented so as not to burden all students with the costs of specific programs, and he said any increases should be absolutely merited. Ms. Nodine then informed the Committee that a review of the fee structure had been undertaken. She noted findings of the review and outlined phases for simplifying the fee structure.

Upon proper motion duly made and seconded the Finance Committee voted unanimously to recommend full Board approval of the proposed tuition and fee changes. Supporting materials were filed with the minutes.

III. APPROVAL OF FY22 BUDGET

Ms. Nodine respectfully requested approval of the fiscal year 2022 operating budget for the West Lafayette, Fort Wayne, and Northwest campuses. She reviewed the components of the operating budget and stated that goals and objectives were consistent with previous years with regard to student affordability, fiscal responsibility, strategic investments, and transparency. Ms. Nodine outlined key assumptions and discussed the drivers for operating revenue and expenses, both which, she said, reflected recovery from the COVID-19 pandemic. In response to questions from President Daniels and Chairman Berghoff, Provost Akridge discussed the number of faculty and advisors to be hired and expressed his appreciation for the substantial investment to provide students with the academic experience they expect. Trustee Thompson observed that, during the pandemic, Purdue was able to maintain faculty and staff salaries and invest in new initiatives while many other institutions had to decrease expenses in these areas out of necessity, and he expressed his belief that Purdue was in a strong position with a strong plan.

Ms. Nodine summarized the proposed operating budget as $2.591 billion in revenue and $2.517 billion in expenses, with a $74 million, or 3%, surplus. To conclude her recommendation, she outlined risks to the budget as well as opportunities that would positively impact the budget.

Trustee Thompson recognized that the pandemic impacted the regional campuses as well as the West Lafayette campus. He also acknowledged a letter from the Purdue Fort Wayne chapter of the AAUP (American Association of University Professors), which provided feedback about the proposed tuition increase at PFW, and he expressed his understanding that Chancellor Elsenbaumer was very attentive to Purdue Fort Wayne’s tight budget. Chairman Berghoff thanked Ms. Nodine and her team for organizing the operating budget information in a way that was readily understood. Upon proper motion duly made and seconded, the Finance Committee voted unanimously to recommend full Board approval of the FY22 operating budget. Supporting materials were filed with the minutes.

IV. ADJOURNMENT

By consent, the meeting adjourned at 10:11 a.m.