REPORT OF THE CHANCELLOR: Julius Erlenbach. The state is facing a projected $1,500,000,000 shortfall. The University has been asked to proceed with 10% budget reduction following the guidelines and definitions of the Legislative Audit Bureau. At the same time the governor has led the System president to believe selected increases are possible. $40,000,000 may be available to hire new faculty and academic staff. $15,000,000 may be available for financial aid for students in the lower quintiles. None is firm. More will be known in February. There is lots of fluctuation in first year enrollments. At this point we are down 40 students compared to last year. Campaign Superior is in excess of $8,000,000 with some significant possibilities pending.

REPORT OF THE PROVOST: David Prior. President Bush has proposed cutting $450,000,000 from Talent Search and Upward Bound components of the Trio Program. A Science and Math consortial proposal (STEM) is being developed and includes UW-Superior. Enrollment Management is making good progress. By April 1, there will be a proposal for sections of Math and English for the fall. An Outline of Our Strategic Work was distributed to Senators.

Chair--David Carroll. Faculty Chair Carroll shared a brief update on Implementation Groups. Two more slots are needed to fill the assignments. The Charter Review assignments are also in preparation.

A new model of advisement (SOAR) is under development and will be on the agenda for a future Faculty Senate meeting. It provides for a larger number of sessions with fewer students in each session as well as stipends for faculty doing advisement during the summer.

Faculty Representative--Nick Sloboda. No Faculty Representative report, but Senator Sloboda emphasized the looming 10% cut. Senators were encouraged to send letters to the Governor expressing grave concern. Motion (M. Einerson/G. Toivola) to send a letter protesting travel policy changes to the governor was approved.