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News from the Corporation 2006

February 25, 2006

Dear Members of the Brown Community,

I write to you with news of the Brown Corporation meeting, held this weekend.

DIVESTMENT FROM COMPANIES DOING BUSINESS IN SUDAN

Last summer I asked the Advisory Committee on Corporate Responsibility in Investing (ACCRI) to review the situation in the Sudan and make a recommendation to me concerning divestiture from companies doing business in the Sudan. Over the summer and early fall, the ACCRI, a standing committee composed of faculty, students, and alumni, reviewed the situation and sent me a set of recommendations. Over this same period, a group of students from STAND (Students Taking Action Now: Darfur) prepared an extensive analysis of the situation in the Sudan and the individual companies doing business there. Both ACCRI and STAND have conducted careful research and we are grateful for their work on this important issue.

The Corporation approved my recommendation that they exclude from Brown University’s direct investments, and require the University’s separate account investment managers to exclude from their direct investments, those companies whose business activities can be shown to be supporting and facilitating the Sudanese government in its continuing sponsorship of genocidal actions and human rights violations in Darfur. In addition, the Investment Office will share with all investment managers the University’s desire to adhere to this investment philosophy.

This is a critically important and strong statement by the University community regarding our abhorrence of the genocidal actions being supported and undertaken by the Sudanese government. We thus declare our solidarity with the peoples of the Darfur region of Sudan whose struggle to live in peace, freedom, and security is an issue of pressing global concern.

The administration will proceed to assemble and provide information to the Corporation’s Advisory & Executive Committee regarding companies whose business activities in Sudan can be shown to meet the criteria for supporting and facilitating the Sudanese government in its continuing sponsorship of genocidal actions and human rights violations in Darfur. We anticipate that as circumstances and events in that region of the world unfold, the list of companies excluded from direct investment will need to be monitored and may be subject to change. The administration, with input and advice from ACCRI, will monitor the situation and make recommendations as necessary to the Advisory & Executive Committee.

THE FY07 BUDGET

The Corporation acted on my recommendation endorsing the budget for the 2006-2007 year developed by the University Resources Committee. The budget continues to support the Plan for Academic Enrichment and our collective vision for Brown. Among other investments, the Corporation approved a budget that will improve faculty compensation, fund a net increase of fifteen to twenty-five faculty over current levels, support our need-blind admission policy, and increase financial support for transfer and resumed undergraduate education students. The budget increases our graduate student stipends to more competitive levels and provides additional support to our athletic programs and student activities.

The FY07 budget also continues our investments in upgrading the physical infrastructure of the campus; offers targeted support for the library to be more responsive to the needs of Brown faculty and students; expands the use of technology in both academic and administrative areas, including funding the expansion of wireless internet service to residence halls, classrooms, and public spaces; and provides resources to attract and retain the staff who support our programs and our community. Modest increases to the student activities fees for undergraduates and graduate students, as requested by their respective student governments, will provide increased funding for student organizations. The Corporation also approved the recommendation that the first-year orientation fees charged to entering students be eliminated.

The URC report also makes clear, however, that there will be constraints on the growth in revenue and resources available for the next five to seven years.

You know from earlier communications that the University is experiencing a significant escalation of utility expenses across the board. In the current year, we are faced with expenses for utilities that exceed the budgeted amounts by more than $3 million. The projected impact in future years is even greater. We have asked the community to conserve energy to the maximum extent possible, and we are implementing changes to operations and policies to moderate our overall energy utilization. While those efforts are essential and will continue, even in the best case scenario we will have higher than forecast expenditures.

Rapidly rising costs in a number of other areas, including health care, property insurance, and building construction and maintenance, are similarly onerous. This fall we also reconfigured the Banner student information systems project and provided additional funding to ensure its success. Within the next two years, this will add $1.5 million to the University’s operating budget. On the income side, while the pledges to the campaign have been extremely strong, the projected payments are actually coming in later than originally anticipated. Although we will benefit from these pledges later in the campaign, this means that for the next few years we will have less additional endowment income than anticipated and fewer dollars in hand for capital projects.

These realities are requiring us to be cautious in our planning.

The University must face this challenge and develop a multi-year financial plan that not only supports the Plan for Academic Enrichment, but also creates a stable financial base to support Brown over the long term. The Plan for Academic Enrichment is our great strength in these difficult times. Through the hard work and deliberations of faculty, staff, and students, the plan has clearly established priorities for the University. Among those priorities, financial aid for students and increasing the size of the faculty have both been identified by the community as our most essential investments in the present and future of the University. We have made great progress on both fronts over the past several years, but much remains to be done. We remain fully committed to both priorities and will take whatever steps are necessary to preserve our ability to continue to augment financial aid and to expand the faculty.

Yet the financial environment will require us to make choices. The plan helps us here as well, as we have well vetted, agreed-upon priorities in place upon which to rely. Over the next several months the relevant advisory committees will be examining those and other emerging priorities (for undergraduate education, housing, and strategic growth) in the context of our available resources and advising me on any savings we may be able to achieve in the coming years. Alternatives in the timing of initiatives, the scope of investments, and the necessity of certain undertakings will be considered. Some reallocation may be essential if we are to continue to move forward to achieve the fundamental goals of the Plan for Academic Enrichment. The provost will enlarge on those approaches with the relevant committees and come back to me with advice and recommendations.

ESTABLISHMENT OF A PROFESSORSHIP

The Corporation approved the establishment of the Joukowsky Family Professorship in Archaeology, effective immediately. This professorship was generously funded by Artemis A. W. Joukowsky ’55 LHD’85 P’87 and Martha Sharp Joukowsky ’58 LLD’85 P’87 as part of their commitment to establish the Institute for Archaeology and the Ancient World. Eligible faculty members can be affiliated with any number of departments, but their principal interest must be in archaeology and/or the ancient world. The chairholder will also have an appointment in the institute.

ACCEPTANCE OF GIFTS AND OTHER ACTIONS

The Corporation formally accepted a number of significant gifts to Brown, including:

  • From an emeritus trustee and parent, a gift of $5 million, $4 million of which will endow and establish a professorship in the Department of History; $500,000 will be allocated to the Brown Annual Fund and $500,000 to the Brown University Sports Foundation.
  • From the Walter Annenberg Foundation, a gift of $3 million for the Annenberg Institute to promote innovation and progress in small schools and to develop leadership to sustain school reform.
  • From a trustee and parent, a gift of $2,515,000 for the following purposes: $1,000,000 for the Nelson Fitness Center; $750,000 for financial aid; $750,000 for the Brown Annual Fund; $10,000 for the Brown University Sports Foundation; and $5,000 for the Watson Institute.
  • From an alumnus and parent, a gift of $2.5 million, $2.2 million of which will create an endowed flexible research fund in environmental sciences and environmental studies; $300,000 will support the Brown Annual Fund.
  • From parents, a gift of $2 million for the Creative Arts Building.
  • From an emeritus trustee and parent, a gift of $1.6 million to be added to an existing fund to endow and create a professorship in contemporary African studies and/or environmental studies.
  • From an alumnus and parent, a gift of $1.1 million, of which $1 million will be added to an existing fund to endow and create an assistant professorship of history; the remaining $100,000 will be earmarked for current-use funds for the Department of History.
  • From parents, a gift of $1 million to fund renovations at the Thomas J. Watson Sr. Center for Information Technology for the Department of Computer Science.
  • From an alumnus, a gift of $1 million for the following purposes: $375,000 for an endowment for Commerce, Organizations, and Entrepreneurship; $250,000 for the Brown Annual Fund; $250,000 for a scholarship; $100,000 for an endowment for the student entrepreneurship program; and $25,000 for current-use program support.

The Corporation approved the appointment of Stephen M. Maiorisi as vice president for facilities management, effective immediately. Steve has served as both acting vice president and director of design and construction since last summer and has worked at Brown since 1996. Prior to coming to Brown, he served as a project architect at the architectural and engineering firm of Robinson Green Beretta in Providence. Steve is a registered architect and has a degree in architecture from Catholic University.

STRATEGIC DISCUSSION SESSION

During its strategic discussion session, the Corporation heard an engaging presentation from Dean of Engineering Clyde Briant and his faculty and student colleagues regarding the exciting research and teaching taking place in the Division of Engineering.

During the same session, the Corporation also spent a substantial amount of time discussing the future direction of the College. As we approach the four-year mark for the Academic Enrichment Initiatives and the second anniversary of the Corporation’s adoption of the full Plan for Academic Enrichment, this is an appropriate moment to reflect and to look forward. We can reflect on what we have accomplished to date and look forward to focusing our planning and our energies on the challenges we wish to address in the years ahead. In that context, I have been spending much of my time recently thinking about the issues and opportunities that will make the most meaningful difference for Brown. It is becoming increasingly clear to me and to others that we have an opportunity and a need to review the opportunities afforded our undergraduate students.

Brown's history of innovation in undergraduate education is a cornerstone strength of our university. Undertaking a coherent and coordinated set of initiatives in undergraduate education will secure the unique position Brown now holds and enable us to achieve even greater preeminence in this area. I am asking the faculty to consider what improvements we might make in undergraduate life at Brown. Important questions include Brown's profile as an international university, the suitability of advising and student support, the quality of housing and facilities, retention and recruitment in science and engineering, and so on. As the search for a new dean of the College begins, such a discussion is timely and will inform that selection process and outcome. The conversation that the Corporation had on this topic this weekend will continue with faculty and students, including, among others, the members of the College Curriculum Committee, the College Advisory Board, the Undergraduate Council of Students, the Faculty Executive Committee, the Medical Faculty Executive Committee, and the faculty at large. I invite any member of the community interested in these questions to join in these conversations and/or send your thoughts and ideas to the provost.

Finally, members of the Faculty Executive Committee, the Medical Faculty Executive Committee, the Staff Advisory Committee, the Undergraduate Council of Students, the Graduate Student Council and the Medical Student Senate, along with faculty and students from the Division of Engineering, joined the Corporation for dinner on Friday evening. This dinner was primarily an opportunity for informal conversation and interaction. Fostering opportunities for faculty, students, staff, and members of the Corporation to get to know each other is a priority, and the dinner was an engaging and enjoyable occasion to do so. Attendees also heard Professor Ken Miller ’70 speak about his experiences lecturing about evolution and intelligent design over the past several years.

More information about these and other actions of the Corporation at this weekend's meeting, as well as the full report of the University Resources Committee, may be found in the University press releases linked below.

Sincerely,

Ruth J. Simmons

Brown Votes to Divest from Sudan in Response to Genocide http://www.brown.edu/news/2005-06/05-084.html

Corporation Approves 8.2% FY07 Budget Increase, Sets Tuition and Fees http://www.brown.edu/news/2005-06/05-083.html

http://www.brown.edu/Administration/Provost/committees/urc/URC06.pdf

Corporation Accepts Gifts, Approves Appointments http://www.brown.edu/news/2005-06/05-085.html