A meeting of the Finance Committee of the Board of Trustees convened on Thursday, June 11, 2020, at 4:27 p.m. 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 visitors in the room, and 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: Don Thompson, chair; Sonny Beck; Vanessa Castagna; and Michael Klipsch. All other trustees were present: Michael Berghoff; JoAnn Brouillette; Malcolm DeKryger; Gary Lehman; Noah Scott; and Thomas Spurgeon. Trustee Castagna attended by video pursuant to Article III, Section 3, of the Bylaws and the Electronic Meeting Policy.

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; Janice Indrutz, corporate secretary and senior executive assistant to the Board; and Ron Elsenbaumer, chancellor of Purdue University Fort Wayne.

I. APPROVAL OF MINUTES

Upon proper motion duly made and seconded, the Finance Committee voted unanimously to approve the minutes of its December 6, 2019, meeting.

II. FOR PURDUE FORT WAYNE: APPROVAL OF TUITION AND FEE CHANGES

Assistant Treasurer Almond requested approval to reduce PFW’s nonresident domestic tuition and fees to 150% of the resident rate for undergraduate students from the contiguous states of Illinois, Michigan, Ohio, and Kentucky. Mr. Almond also requested approval to reduce the tuition and fees for online programs for nonresident domestic undergraduate students to 150% of the resident rate. He provided explanations for the requests and said the changes would be effective in Fall 2020. In response to a question from Trustee Klipsch, Chancellor Elsenbaumer said more and more prospective students from contiguous states, especially Kentucky, were applying for admission to PFW, and reducing the tuition and fees as proposed would attract even more students. Upon proper motion duly made and seconded, the Finance Committee voted unanimously to recommend full Board approval of the tuition and fee changes for the Purdue Fort Wayne campus. Supporting materials were filed with the minutes.

III. APPROVAL OF FY21 BUDGET

Treasurer Ruhl informed the Committee that Provost Akridge and he had recently penned a letter to the campus community to provide an update on the university’s financial plans amid the COVID-19 pandemic. He said the plans had been prepared with the best information and data currently available to effectively deliver teaching, discovery, and engagement and keep the campus community safe. He added that targeted, thoughtful expense reductions were put in place to counter expected reduced revenue as a result of the pandemic and avoid more significant actions in the future. Mr. Ruhl then called upon Ms. Eva Nodine, senior director of financial planning and analysis, to discuss the substance of the FY21 operating budget.

Ms. Nodine reviewed the types of expenses and income included/not included in the annual budget, and she informed the Committee that the budget had been adapted to consider the impact of the COVID-19 pandemic. She outlined a number of goals and objectives for the FY2021 budget, which included maintaining the priority of student affordability and committing to funding the Protect Purdue implementation to allow students to safely return to campus, as well as protecting employees’ jobs, salaries, and benefits. Ms. Nodine outlined how the systemwide operating revenue would be negatively impacted by the pandemic over the next 12-18 months, and she discussed very strategic actions to be taken to reduce expenses and mitigate the decreased revenue in order to implement nine elements of the Protect Purdue plan. Ms. Nodine illustrated the budget by campus, for an overall revenue total of $2,366,000,000 and overall expenses of $2,372,000,000, and she identified budget risks and opportunities. In response to a question from Trustee Klipsch, Ms. Nodine said that the second year of using the new budget system had created efficiencies and made it easier to track and trend expenses.

Upon proper motion duly made and seconded, the Finance Committee voted unanimously to recommend full Board approval of the systemwide FY21 budget. Supporting materials and a copy of Ms. Nodine’s presentation were filed with the minutes.

Trustee Thompson thanked and congratulated the administration, faculty, and staff on the systemwide FY21 budget, calling it a major feat.

IV. ADJOURNMENT

By consent, the meeting adjourned at 4:46 p.m.