CONCORDIA UNIVERSITY

MINUTES OF THE OPEN SESSION
OF THE MEETING OF THE BOARD OF GOVERNORS

Held on Wednesday, 20 November 1996, immediately following the Closed Session,
in Room AD 308, Loyola Campus

Attendance

Present:     Mr. Reginald K. Groome, Chairman, Dr. Tannis Arbuckle-Maag, Mr. Alain Benedetti, Ms. Marianne Donaldson, Mr. Leo Goldfarb, Dr. Henry Habib, Mr. Ronald Lawless, Dr. Frederick Lowy, Rector and Vice-Chancellor, Ms. Hazel Mah, Sister E. McIlwaine Ph.D., Vice-Chairwoman, Mr. Donald W. McNaughton, Mr. Eric Molson, Chancellor, Mr. Jeff Nearing, Mr. Brian Neysmith, Mr. Benoit Pelland, Mr. Richard Renaud, Mrs. Miriam Roland, Mr. Jonathan Wener, Ms. Susan Woods

Officers of the University:     Dr. Charles L. Bertrand, Prof. Marcel Danis, Mr. Larry English, Me Bérengère Gaudet, Dr. Jack Lightstone

Absent:     Mr. Brian Aune, Dr. Michael Brian, Mr. Ronald Corey, Dr. Leonard Ellen, Dr. Terrill Fancott, Mr. Daniel Gagnon, Mr. Peter Howlett, Mr. Paul Ivanier, Ms. Sanyu Kiruluta, Dr. Lawrence Kryzanowski, Me George Lengvari, Mr. Jacques Ménard, Vice Chairman, Ms. Susan O'Connell, Mr. Jean-François Plamondon, Dr. Elizabeth Saccá, Mr. Humberto Santos, Mr. Robert Simioni, Mr. Brian Steck, Ms. Kathy Tsolakos, Ms. Lillian Vineberg

Guests:     Dr. Mohsen Anvari, Dean, Faculty of Commerce and Administration; Father Stanley Drummond, Mr. John Economides, Me André Gervais, Ms. Mildred Lande, Mr. Claude Taylor, Governors Emeriti; Me Bram Freedman, Legal Counsel

DOCUMENTS CONSIDERED AND ATTACHED TO THESE MINUTES

1.                 Call to Order

The meeting was called to order at 8:40 p.m.

1.1               Chairman's remarks

Mr. Groome announced that the October accreditation visit of the American Assembly of Collegiate Schools of Business (AACSB) with the Commerce and Administration Faculty was very successful. He congratulated the Faculty's Dean, Dr. Mohsen Anvari. Dr. Anvari told the Board that the accreditation team had indicated it would recommend, in February 1997, that Concordia's business school be accredited by the AACSB.

1.2               Approval of the Agenda

The Agenda was approved, with the understanding that Item #8 would be deferred, for decision in December.

1.3               Approval of the Minutes of the Open Session of the previous meeting of the Board (16 October 1996)

Upon motion duly moved and seconded (Pelland, Neysmith), it was unanimously RESOLVED:

2.                 Business arising from the Minutes

There was no business arising from the Minutes.

3.                 Approval of the final Operating Budget for 1996-97

In the absence of Budget Committee Chairman Brian Aune, Mr. Neysmith commented on the final operating budget, and moved the motion. Some explanatory remarks responded to questions from Governors. Dr. Lowy explained that the budget had been restored to the Conservatory of Cinematographic Art to ensure that the film library, whose collection is used extensively by students, will be maintained. He said the administration was studying alternate ways to meet that objective. Chief Financial Officer Larry English noted that approximately $1 million of the required cuts remained undistributed, but would be absorbed over the coming three-year period.

A Board member observed that the Report of the Ad Hoc Senate Finance Committee appeared to constitute conditional approval. He said it was not clear why the Board should have received the document, and asked whether the Committee had received satisfactory answers to the questions set out in the Report. Provost and Vice-Rector, Research, Jack Lightstone replied that Senate does not have the power to approve or reject the operating budget. The Report of the Ad Hoc Committee was provided to the Board for information only; normally, time allowing, it would have been submitted to the Budget Committee for discussion before being provided to the Board.

Mr. Neysmith said it was anticipated that between $12 and $17 million would be cut from the 1997-98 operating grant.

Upon motion duly moved and seconded (Neysmith, Renaud), it was unanimously RESOLVED:

4.                 Approval of the Report and Financial Statements of Concordia University for the year ended on 31 May 1996

Upon motion duly moved and seconded (Benedetti, Renaud), it was unanimously RESOLVED:

5.                 Approval of the Rapport financier annuel for the year ended on 31 May 1996

Upon motion duly moved and seconded (Benedetti, Pelland), it was unanimously RESOLVED:

6.                 Approval of the Statement of Salaries prepared in compliance with Bill 95

Upon motion duly moved and seconded (Benedetti, Lawless), it was unanimously RESOLVED:

7.                 Appointment of Concordia's external auditors for the current fiscal year

Upon motion duly moved and seconded (Benedetti, Renaud), it was unanimously RESOLVED:

8.                 Approval of the external auditors' fees for the fiscal year ended 31 May 1996

This item was deferred for approval at the December 1996 meeting.

9.                 Approval of a new copyright agreement with the Union des Écrivains et écrivaines du Québec (UNEQ)

Upon motion duly moved and seconded (Lowy, Habib), it was unanimously RESOLVED:

At the request of the Rector, Dr. Anvari was granted speaking privileges. He outlined the reasons for the Faculty's proposal to shift undergraduate international students in the Commerce and Administration Faculty from the government-funded stream into a self-financing stream. The proposal, which was approved by the Faculty Council and by the Office of the Rector, was primarily intended to increase Faculty revenues. Dr. Anvari explained that, although the University's costs associated with recruitment of foreign students were very high, the government grant to the University for foreign student enrolments was the same as that for Canadian nationals. While tuition fees of over $7000 were paid by foreign students, only $1660 per student was remitted to the University. He explained that the only way to capture the difference, which presently accrues to Québec, would be to privatize the programme. The University would forego the government subsidy in order to collect the full tuition fee.

Dr. Anvari told the Board that the Faculty had carried out studies whose results suggested substantial savings were available. Introduction of the self-financed stream would have to be achieved in several stages; the first stage would entail reporting currently enrolled students as part of a self-financing programme, and increasing their tuition fees. If the proposed fee increase was approved, each foreign student would pay about $400 more per year. Dr. Anvari explained that, with the Board's approval, the Faculty would undertake market research to determine whether additional fee increases would be supported. Ideally, the marketing study would be complete by April 1997. The results being favourable, proposed fee increases would be presented to the Board. The Dean said the self-financing approach is encouraged by the Ministry of Education. The Faculty already has two graduate programmes which are self-financing: the Executive MBA and the Aviation MBA.

A faculty member asked what this development would imply for other Faculties. Dr. Anvari answered that the basic research had been carried out for all four Faculties but, at present, the others did not wish to introduce self-financing. One Governor questioned the rationale for students to take undergraduate courses in the Commerce and Administration Faculty, if similar courses were offered at lower cost in other Faculties. Dr. Anvari replied that, as much as possible, arbitrage between Faculties would be discouraged.

Other faculty members were concerned that the differential fee structure would divide international students into two classes, without offering any special services. One member insisted the question should have been thoroughly discussed by Senate. Dr. Anvari and Dr. Lightstone pointed out that foreign students already pay variable rates arising from exemptions from the University's basic differential fee, or arrangements to pay their home university. Many students benefit from mutual fee waivers, for example, between the Québec government and francophone countries. The advantage of privatizing, Dr. Lightstone pointed out, is that it allows the University to control its own fee policies.

Several Governors applauded the Faculty's move toward self-financing. One emphasized that the Faculty's fees would still be low relative to the cost of a comparable education in the United States.

Upon motion duly moved and seconded (Lowy, Mah), it was CARRIED with one opposed (Arbuckle-Maag):

11.               Progress reports of the Advisory Search Committees

12.               Reports of the Standing Committees

12.1             Report of the Audit Committee

Committee Chair Alain Benedetti said there was nothing further to report.

13.               Report of the Rector

In his report, Dr. Lowy concentrated on two important subjects: release of the Maclean's "Universities 96" issue, and the announcement by Education Minister Pauline Marois that tuition fees for Québec students would not be increased. The Rector said that Concordia had not participated in the Maclean's survey in recent years, because of what were felt to be serious shortcomings of the survey methodology. This year, however, Concordia had rejoined, expecting to fare well in comparison with other Canadian universities. The results were disappointing, as Concordia again ranked last among comprehensive universities. If the statistics reflected badly on our performance, though, the feature article by Ann Dowsett Johnston was very positive, acknowledging the gains made at Concordia through intensive, critical self-examination, as well as our adaptability and innovative approach.

Although he said the survey does identify some areas in which the University could be improved, the Rector identified two conditions which mitigate against Concordia's success in Maclean's rankings. First, the high percentage of part-time and mature students in our student population produces a negative bias, both in the duration of students' studies before graduation and in the average grade level of students admitted. Secondly, the severely constrained financial situation of Québec universities gave Concordia a clear disadvantage in per student funding and library acquisitions. This problem is exacerbated by Concordia's substantial accumulated deficit which is a result of historical underfunding. No other Québec university is represented in the comprehensive category.

Regarding Madame Marois' announcement, the Rector said he was taken by surprise. As all Québec universities had advocated increasing tuition fees, it was anticipated that a modest increase would be permitted. Instead, the Minister increased fees only for out of-province students. Dr. Lowy told the Board he was extremely disappointed that the freeze on tuition fees had not been lifted, and very unhappy with the introduction of a differential fee structure penalizing other Canadian students. Québec was the first province to do so, and risked creating the perception that non-Québecers are not welcome to study here. Dr. Lowy emphasized that he did not object to the amount the province would charge, but to the principle which exempted Québec students from paying the increased rate.

The same day, 20 November 1996, a long study session was held in which the administration and Concordia students shared the view that provincial education policy put the future of higher education, and indeed of the province, at risk. Dr. Lowy reported that while many views were held in common, students strongly opposed tuition fee increases. A massive province-wide student strike was planned for 21 and 22 November. Dr. Lowy told the Board, as he had announced to the students, the University would stay open and classes would be held as usual.

14.               Report of the Vice-Rectors and the Chief Financial Officer

15.               Correspondence

There was no correspondence.

17.               Date of next meeting

The next meeting of the Board will be held at 8:00 a.m. on Wednesday, 18 December 1996, in Room GM 407-1, on the SGW Campus.

18.               Adjournment

There being no other business, the meeting adjourned at 9:50 p.m.

                                                                                                                                Me Bérengère Gaudet
                                                                                                                                Secretary of the Board of Governors