The Board of Trustees will meet on campus this weekend for the first time since May and address the continuing challenges presented by the University’s financial situation.
During its two-day gathering, Duke’s governing body will hear updates from the Duke Administrative Reform Team on the University’s financial state and from the Duke University Management Company on Duke’s investments, said Chair and Democratic N.C. Sen. Dan Blue, Law ’73. Blue said the Board will revisit the budget at all of its meetings.
“We’ll look at it and see what progress they’ve made,” Blue said. “Having looked at it over the summer and as [former] chair of the Business and Finance Committee, I know that they’re making good progress in demonstrating reductions.... I’m confident that the administration is making progress toward reaching those goals.”
He added that the Board will also hear a proposal for an addition to Keohane Quadrangle and a review of the Campus Sustainability Committee’s Climate Action Plan.
All parts of the Friday and Saturday sessions will be closed to the public, though President Richard Brodhead and Blue will be available for comment after the meeting concludes, said Michael Schoenfeld, vice president for public affairs and government relations.
Several other Trustees declined to comment Thursday.
Executive Vice President Tallman Trask, Provost Peter Lange and several other administrators will update the Trustees on the University’s progress in cutting $70 million from this year’s budget as part of an effort to cut $125 million over three years.
By trimming $125 million, the University will be able to account for reductions in its revenues and still continue funding important projects, Blue said.
He added that he expects DART to present specific areas in which reductions have occurred and to discuss the “direction and outcome” of future cuts.
The University is on track to meet its budgetary goals this year, Trask said, citing the elimination of the equivalent of about 400 jobs through early retirement, vacancy management and reductions in overtime.
Duke is also planning to cut $25 million from central administration, and Trask said those savings would be made through reductions in personnel, travel spending, paper publications and mailings.
Duke Student Government President Awa Nur, a senior, is a member of the Board’s Business and Finance Committee this year. Nur said she will focus on the effects potential budget cuts could have on students and their families.
“I want to... be sure that we don’t forget the individual families of all the students,” she said. “I hope DART will be vigilant and not put any undue burden on the individual families.”
The Board will also hear an update from DUMAC on Duke’s investments, such as the endowment, Blue said. The endowment and similar funds lost about 24.5 percent of their value during the 2008-2009 fiscal year, from a high of $6.1 billion.
The Trustees will consider the University’s spending money at this meeting as well, Blue said.
Blue said the Board will hear a report on the proposals resulting from the Climate Action Plan from Trask, Bill Chameides, dean of the Nicholas School of the Environment and Tim Profeta, director of the Nicholas Institute for Environmental Policy Solutions and a senior associate dean.
Trask said the Board will decide what environmental changes it will commit to and by when, but said the costs are difficult to estimate. Becoming carbon neutral could cost the University as much as $100 million, Trask said.
Although he had not yet seen cost estimates, Blue said he does not expect the Trustees to dismiss their environmental concerns based on the budget.
“The Board recognizes its responsibility to be stewards of the environment,” he said. “It’s still a laudable goal and something we will try to reach. Time might be an issue, but it should still remain on the front burner.”
The Board could also approve studying the construction of a new residence hall in Keohane Quad.
Blue said he sees many benefits to approving Duke’s request for $75,000 to study the feasibility of a 150-bed dormitory. He added that the project could allow the University “to keep the momentum of Duke going even in tough economic times.”
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