The University’s Structure and Governance

1. The University’s Structure and Governance Dr. Robert F. Pack Vice Provost for Academic Planning and Resources Management

2. Commonwealth System of Higher Education • Pitt is part of the Commonwealth System of Higher Education, including: • “State-owned” institutions; • “State-aided” institutions; • Community colleges; and • “State-related” institutions • Each sector has a unique mission The University's Structure and Governance

3. Commonwealth System of Higher Education • State-owned institutions The State System of Higher Education has its roots from the State Normal Schools and teacher colleges. The School Code of 1911 called for the purchase of normal schools, and by 1921, the present configuration of the 14 state- owned institutions was established. In 1982, Act 188 was signed into law establishing the Pennsylvania State System of Higher Education on July 1, 1983, including the 13 former state colleges and Indiana University of Pennsylvania. The University's Structure and Governance

4. Commonwealth System of Higher Education • State-aided institutions The State-aided institutions have been granted their status through the offering of programs that have been deemed to meet the “public interest” and are not being met by a State-supported institution and receive a direct Commonwealth appropriation. This designation presently includes eight institutions emphasizing certain medical, technological and arts specialties, such as: Drexel University, Pennsylvania College of Optometry, Philadelphia College of Osteopathic Medicine, Thomas Jefferson University, the University of Pennsylvania, and the University of the Arts. The University's Structure and Governance

5. Commonwealth System of Higher Education • Community Colleges Community colleges were officially authorized by The Community College Act of 1963 to establish institutions offering two-year, postsecondary, college parallel, certificate granting, associate degrees or adult education programs within reasonable commuting distances of every citizen of the Commonwealth. There are currently 14 community colleges in Pennsylvania. The University's Structure and Governance

6. Commonwealth System of Higher Education • State-related institutions -- The Pennsylvania State University was chartered in 1855 as the Farmers’ High School of Pennsylvania. It broadened its mission through the Morrill Land-Grant Act and became The Pennsylvania State University in 1953. It now has 24 locations statewide. The University's Structure and Governance

7. Commonwealth System of Higher Education • State-related institutions -- The Pennsylvania State University -- Temple University was chartered as Temple College in 1888, was incorporated as Temple University in 1907, and was granted state-related status by the legislature in 1965. Today, Temple University has five campuses in central and North Philadelphia, and its nearby suburbs, as well as campuses in Harrisburg and international campuses in Rome and Japan. The University's Structure and Governance

8. Commonwealth System of Higher Education • State-related institutions -- The Pennsylvania State University -- Temple University -- The University of Pittsburgh was established as The Pittsburgh Academy by a charter of the Pennsylvania legislature in 1787. It was a private institution through much of its history. The current name was designated in 1908. State-related status was granted to the University in 1966. Today, the University of Pittsburgh system consists of its 132-acre main campus, located in the Oakland section of Pittsburgh, and regional campuses in Bradford, Greensburg, Johnstown, and Titusville. The University's Structure and Governance

9. Commonwealth System of Higher Education • State-related institutions -- The Pennsylvania State University -- Temple University -- The University of Pittsburgh -- Lincoln University was chartered in 1854 as the Ashmun Institute as “the first institution found anywhere in the world to provide a higher education in the arts and sciences for male youth of African descent.” Lincoln was granted state-related status in 1972. The University's Structure and Governance

10. Commonwealth Funding • The Commonwealth provides the University an annual appropriation. In FY 2003, these funds amounted to $154,369,000, or 28% of the operating budget. In terms of overall impact, however, the total appropriation accounts for only 13% of the total revenues of the University. The University's Structure and Governance

11. Academic Administration Structure • The Board of Trustees oversees University governance. • The Chancellor has authority on all planning and budgeting. Board of Trustees

12. Academic Administration Structure

13. Academic Administration Structure

14. Collegiality and Shared Governance • The University has a wide range of organizations that participate in governance activities • University Senate • Staff Association Council • Student governments • Advisory groups and review committees • Faculty in academic units determine curriculum, graduation requirements, approve the granting of degrees, etc. through the authority granted them by the Board of Trustees. The University's Structure and Governance

15. Collegiality and Shared Governance • University Senate consists of full-time faculty, selected administrators, student and staff representatives, and others. • Senate Council is composed of elected faculty members and representatives of the administration, students, and staff. • Faculty Assembly is a representative body of elected faculty. • http://www.pitt.edu/univsenate/index.html The University's Structure and Governance

16. Standing committees of the University Senate span a wide range of issues. Admissions and Student Aid Anti-discriminatory Policies Athletics Benefits and Welfare Budget Policies Bylaws and Procedures Commonwealth Relations Community Relations Computer Usage Educational Policies Library Plant Utilization and Planning Student Affairs Tenure and Academic Freedom University Press Collegiality and Shared Governance The University's Structure and Governance

17. Collegiality and Shared Governance • The purpose of the Senate is to create and maintain communication channels among University constituencies. • Recommendations from Senate bodies are made to the Chancellor or other appropriate officer. • The Senate Budget Policies Committee has a unique role in planning and budgeting. • Each academic unit in turn has its own traditions and structures of academic administration that embody the institutional commitment to collegiality and shared governance. The University's Structure and Governance

18. Collegiality and Shared Governance • The Staff Association Council is a representative body of elected staff that address issues relating to salaries, benefits, safety, grievance, and affirmative action, among others. • Student groups are those representing undergraduates, CGS students, and graduate and professional students. • http://www.pitt.edu/~sac/ The University's Structure and Governance

19. Management Decision Making • The University has management processes that oversee faculty promotions, new program development, etc. • The Planning and Budgeting System (PBS) is the principal structural guideline governing decision making as it relates to major strategic budgetary issues at the University. • PBS was created in 1992 to: • increase openness and sharing of information; • expand participation in the decision making process, and accountability; • improve the ability of administrators, faculty, staff, and students to make sound decisions; and • enhance the University by setting and achieving higher performance standards. The University's Structure and Governance

20. Strategic Goals & Allocation of Resources • The Board of Trustees develops the goals of the institution. • Each unit at each organizational level of the University provides more specificity to the institutional goals. • Resources are then allocated in support of unit goals. • The essence of planning and budgeting is the balance between “top-down” and “bottom-up” management decision making. The University's Structure and Governance

21. University Budget Process • Like goal-setting, budgeting at the University is a strategic process. • In one stream, the operational budgets of units derive from an upward flow, as departmental budgets come together to create unit and responsibility center budgets. • In the other stream, the University Planning and Budgeting Committee recommends annual institutional budget parameters to Chancellor. • For example, the UPBC recommends incremental compensation increases and functional applications, while the units determine how salary funds will be distributed to individual faculty and staff. The University's Structure and Governance

22. University Budget Process • The UPBC develops annual parameters with regard to major revenue and expenditure components. • For example, tuition revenues are determined to provide revenues, but within an environment of maintaining access (i.e. scholarships, competition, differential tuition rates, etc.) • As another example, funds for salary increases are recommended to keep the University competitive, but in an environment of constrained revenues and other budgetary demands. These other needs include strategic investments in academic priorities, student life enhancements, equipment, information technology development, utilities costs, and insurance increases, among others. The University's Structure and Governance

23. University Budget Process

24. University Budget Process

25. Planning & Budgeting Initiatives • Within the overall annual budget process, the UPBC identifies funds for academic and student life initiatives • These funds are allocated to support a wide range of activities throughout the University - creating new academic programs (Computer Engineering) - investing in selected programs of high quality (Philosophy) - implementing strategic plans (information technology) - developing the library collection - supporting student life initiatives (recreation facilities) - strengthening student support services (Pitt Pathway) - enhancing the capacity to raise private funds through the capital campaign -developing the “City as Your Campus” concept (Pitt Arts) The University's Structure and Governance

26. Capital Budget Process • Like the operating budget process, the capital budgeting process is highly strategic. • Resource allocation to capital projects is guided by the University’s Ten-Year Facilities Plan. • Projects are funded by a combination of Commonwealth capital funds and University debt, either Educational and General or Auxiliaries. • Recent priorities have included recreation, residence life, research laboratories, classrooms, renovations to existing facilities, and selected new construction. The University's Structure and Governance

27. Results of Strategic Approach The University's Structure and Governance

28. Lessons Learned • Set clear goals and pursue them relentlessly, even when progress may be difficult. • Maintain unrelenting focus on core academic mission and commitment to quality. • Invest to maintain quality of programs and quality of student experience. • Maintain discipline. The University's Structure and Governance