M.A., M.S., & PH.D. IN HISTORY OF SCIENCE, OSU

Introduction

Oregon State University (OSU) requests authorization to offer master's degrees (both M.A. and M.S.) and the Ph.D. in History of Science. The history of science focuses on the study of the development of scientific thought, studies the relationship of science to its cultural context, and analyzes the place of scientific endeavor in society. This interdisciplinary field bridges the humanities, social sciences, and the natural sciences. OSU has long had course offerings in the history of science area at the undergraduate level and has offered graduate degrees granted under general science. In 1992, the existing program was moved from the Department of General Science (which was eliminated at that time) in the College of Science to the Department of History in the College of Liberal Arts. The proposed program, offering degrees through the College of Liberal Arts, would be the only one in the state of Oregon, and is greatly strengthened by the Thomas Hart and Mary Jones Horning endowment, which funds two chaired professors in the History of Science -- and also provides resources for visiting scholars and invited lecturers, enhancing library holdings, and subsidizing graduate students.

Staff Analysis

1. Relationship to Mission

The proposed program is directly related to OSU's land-grant mission. History of science is an interdisciplinary subject that brings together faculty and students from the natural sciences, technology, humanities, and the social sciences -- emphasizing both science and its applications. Research in the history of science informs knowledge development in science education, science policy, technology assessment, environmental science, natural resource management, and environmental ethics. Both undergraduate and graduate students benefit from history of science offerings. Courses in this area are an important component of the baccalaureate core, for example, and are utilized by many other programs, especially in areas such as science education and biology. Graduate students from a number of disciplines will also be able to make use of program offerings that will provide them with the historical, social, and cultural context for a range of science-related issues. Additionally, this program will provide graduate students with a minor in History of Science -- formalizing and accurately naming a minor that many students had previously labeled as an "integrated minor."

2. Curriculum

The existing History of Science program has been an intellectually stimulating force at OSU by providing a forum to promote interaction among individuals from different disciplines who are concerned about the social impact of science and technology and the cultural context of scientific work and technological innovation. This proposed program would formalize this activity into degree offerings at the master's and doctoral levels.

Master's Degrees (M.A. and M.S.). Both degrees require the completion of 45 hours of graduate credit. Candidates are required to have major field coursework consisting of 24 hours from a list of approved history of science courses -- and a minor field of 15 hours in science, history, or related field. The M.A. requires demonstration of reading knowledge of a foreign language. A thesis is required for either degree.

Doctoral Degree. The equivalent of three years of graduate work beyond the baccalaureate is required for the Ph.D., including a thesis. This work should include the equivalent of the requirements for the master's degree and additional work in the major and the minor. Two foreign languages are required.

3. Evidence of Need

OSU's request for this program is based on need as well as capacity. The need for historians of science exists on an intellectual level; scientists, science educators, and policy makers realize that many of the problems they face cannot be understood without taking into account the past. This field of study traces the history of scientific problems and issues and provides understanding of the social and cultural contexts in which such problems arise and are defined. In terms of employment, historians of science find homes in academic institutions, archives (government and private), museums, and government agencies and private organizations dealing with science policy and/or technology assessment. Advertisements recruiting historians of science appear regularly in journals, and the study of the history of science is becoming an integral part of science education, both for majors and non-majors. Employment prospects for OSU history of science graduates are promising. In a study of their graduates in the last ten years (80 percent of whom have been tracked), all have found employment. There are no other history of science programs in the state. OSU also possesses a particularly unique capacity to offer degrees in this area, and this capability is addressed in the sections below.

4. Quality of the Proposed Program

OSU has long been recognized as a national leader in the history of science. Paul Farber, professor and chair of the History Department, received his Ph.D. from Indiana University and has been at OSU since 1970. He is an internationally renowned history of science scholar and an OSU Distinguished Professor. In 1994, through the gift of a generous benefactor, OSU was able to greatly enhance its stature in this field with the establishment of the two endowed Thomas Hart and Mary Jones Horning Chairs in the Humanities; Mary Jo Nye and Robert Nye, both Professors of History, have held these chairs since that time. Mary Jo Nye received the Ph.D. from the University of Wisconsin (1970), served on the faculty at the University of Oklahoma (1970-1994), and has been the recipient of numerous awards, fellowships, and grants. Her scholarship interest areas include the history of chemistry, the history of the physical sciences, and scientific elites. Robert Nye received the Ph.D. from the University of Wisconsin (1969), was a faculty member at the University of Oklahoma (1969-1994), and has likewise been the recipient of numerous fellowships and grant awards. His areas of scholarship include history of the social sciences, European intellectual and cultural history, and the history of professional ethics. Farber and the Nyes comprise part of a long list of distinguished faculty members -- including scholars in the College of Liberal Arts, College of Science, and visitors in residence at the Center for the Humanities -- who contribute to offerings in the OSU History of Science program at the present time. Graduate education of the highest possible quality is anticipated with the establishment of this program.

5. Adequacy of Resources to Offer the Program

All requisite resources to successfully offer this program are now in place. The Horning bequest specifically provides 100 percent support for the two core faculty in this area and also stipulates funds for at least three graduate students, the enhancement of library holdings, and resources for invited lecturers. The Departments of History and Zoology will sponsor the time of two additional faculty as well as staff support. The College of Liberal Arts and College of Science will fund one additional graduate student as well as provide material and supplies. To complement the high-quality faculty, the library holdings in the history of science have been collected for over 25 years; included are the Linus Pauling Papers and the Atomic Energy Collection, works of national and international importance. No new state resources are needed to establish or maintain this program.

Program Review

The proposed program has been reviewed positively by all appropriate institutional committees, the Academic Council, and by an on-site external review team. The external review team consisted of Hamilton Cravens (Iowa State University), Frederick Gregory (University of Florida), and Robin Rider (Stanford University), who visited the OSU campus on November 1-3, 1995. The positive report produced during the external review stated, in part, that the program "has been clearly and carefully defined to meet a national as well as regional need," and that it "represents a significant concentration of talent and accomplishments in research, teaching, and innovative program-building at Oregon State University."

Staff Recommendation to the Board

Staff recommends that the Board authorize Oregon State University to establish a program leading to the M.A., M.S., and Ph.D. in History of Science effective fall term 1996, with a follow-up review of the program to be conducted by the State System Office of Academic Affairs in the 2001-02 academic year. The proposal should be placed on the consent agenda for final action at the June Board meeting.

BOARD ACTION:

A.A.S. IN EMERGENCY MEDICAL TECHNOLOGY & B.S. IN EMERGENCY MEDICAL SERVICES, OHSU

Introduction

Oregon Health Sciences University (OHSU) requests authorization to offer new instructional programs leading to an Associate of Applied Science (A.A.S.) degree in Emergency Medical Technology and a Bachelor of Science (B.S.) degree in Emergency Medical Services. Emergency medicine is a specialized field involving the initial recognition, evaluation, care, and disposition of patients in response to acute illness and injury. The objectives of the proposed program are to educate competent, compassionate, and customer-oriented care providers and enhance the delivery of health care outside the hospital and clinical settings.

Staff Analysis

1. Relationship to Mission

The proposed allied health degree programs in emergency medicine are directly related to the mission and academic plan of OHSU, that is, the education of physicians, nurses, and allied health personnel.

The A.A.S. degree program will foster increased joint interinstitutional collaboration, particularly with the community colleges in Oregon. The B.S. degree program will offer an easily articulated and vertical progression with the A.A.S. degree program and a smooth transition for students who have received their A.A.S. degree. Area Health Education Center (AHEC) staff are major players in the Emergency Medical Technology Consortium. With the A.A.S. degree program and AHEC staff participation, OHSU's "bridges" to the community college system are fortified.

The baccalaureate program has the potential to add to the outreach mission of OHSU as articulated/implemented through the AHECs. Some of the core baccalaureate coursework will need to be presented through the use of electronic bulletin boards, ED-NET, and short-term, intense institutes in order to serve the needs of students who wish to pursue the degree from outlying areas.

2. Evidence of Need

Advances in emergency medical therapeutics, the effects of managed care, and the evolution of complex systems to deliver prehospital care have redefined the provider of emergency care. Emergency Medical Services (EMS) agencies are now seeking individuals who can deal with ambiguity, display effective interpersonal skills, can work in teams, be positive contributors to an organization, be able to coach and educate fellow employees, and are computer capable.

These growing complexities of the jobs and system requirements are well-known to OHSU's Department of Emergency Medicine faculty physicians who supervise the activity of 90 percent of the paramedics in the Portland Metropolitan area and interact with administrators, supervisors, and line personnel on a daily basis. As such, the daily/weekly networking of faculty and program staff in street-level EMS operations validate the need for the development of both degree programs.

The OHSU baccalaureate degree program will be the only public program of its kind in Oregon.

3. Quality of Proposed Program

The A.A.S. degree, with a minimum core of general education requirements, has become the entry-level educational requirement in Oregon. The core curriculum of the baccalaureate program is intended to provide students with exposure to courses that have been identified by health care training and development professionals as desirable for health care workers and supervisors, such as customer service and quality improvement, teamwork, coaching, leadership and management, risk management, and organizational theory. Industry specific coursework in health economics, medical-legal issues, public health education and injury prevention, biostatistics, epidemiology, and evaluating medical literature would round out the core, providing students with a wider perspective with which to enhance their performance as front-line service workers. Preapproved elective courses would be taken in two focus areas, management and education, allowing graduates in those areas to qualify as management trainees and entry-level educators.

For Oregon students, the general education coursework of the freshman year will be completed at an EMT Consortium member community college. The Consortium community colleges who have agreed to the concept of a standardized EMT-Paramedic degree program include Chemeketa, Rogue, Treasure Valley, Central Oregon, Umpqua, and Portland. Portland Community College and Chemeketa have agreed to join with OHSU in conferring A.A.S. degrees; community colleges are presently investigating transfer and accreditation issues.

The majority of the core baccalaureate courses will be taken at OHSU. However, during the junior and senior years, preapproved elective coursework will be taken at PSU and within other programs at OHSU. Enrollment in the other elective courses will have to be preapproved by EMS program faculty to ensure consistency with the student's focus of study.

The OHSU Paramedic Education Program is currently accredited by the Joint Review Commission on Educational Programs for the EMT-Paramedic (JRC EMT-P), based in Euless, Texas. THE JRC EMT-P is recognized as the national accrediting body for paramedic programs by the U.S. Department of Education, American Medical Association, and National Registry of Emergency Medical Technicians. The Paramedic Program must additionally adhere to the administrative rules of the Oregon Health Division, EMS and Trauma Systems Section, which establishes and enforces administrative rules relative to paramedic education.

4. Adequacy of Resources to Offer the Program

The Paramedic Program is currently staffed by 1.5 FTE faculty, and 1.0 FTE administrative assistant. Portions of baccalaureate core courses will be presented by full-time faculty and affiliate faculty of the Department of Emergency Medicine. The Department of Emergency Medicine will provide an additional 1.0 FTE with "seed" money for a period of one year to implement the baccalaureate degree program. The baccalaureate degree program will be phased in incrementally within two years with the goal of making revenues generated through tuition as the primary financial basis for the program. Volunteer affiliate faculty have also offered their services gratis during the first year of implementation.

Program Review

The proposed program has been reviewed by all appropriate institutional committees and was reviewed positively by the Academic Council.

Staff Recommendation to the Board

Staff recommends the Board authorize Oregon Health Sciences University to establish programs leading to an Associate of Applied Science degree in Emergency Medical Technology and Bachelor of Science degree in Emergency Medical Services effective fall term 1996, with a follow-up review of the program to be conducted by the State System Office of Academic Affairs in the 2001-02 academic year. The proposal should be placed on the consent agenda for final action at the June Board meeting.

BOARD ACTION:

PRELIMINARY PROPOSALS FOR NEW GRADUATE PROGRAMS

In accordance with new guidelines approved by the Board in July 1995, the Academic Council and the Vice Chancellor for Academic Affairs have reviewed preliminary proposals for new academic programs. Four preliminary proposals for new academic programs leading to graduate degrees are presented, of which some require new funds. Three programs are collaborative or joint offerings. They all share the common foci of attempting to strengthen offerings at the graduate level, to meet increasing demand for advanced degrees in specific areas, and to provide greater access to qualified students. These preliminary proposals are explained in greater detail in the supplementary section of the Board's docket. The campuses, Office of Academic Affairs, and the Academic Council seek feedback and guidance from the Board with respect to the development of new graduate program areas.

Ph.D. in Radiation Health Physics, OSU

Oregon State University (OSU) proposes to offer a Ph.D. in the field of radiation protection, also known as health physics. This specialized field involves the integrated study of the physical and biological effects of ionizing and non-ionizing radiation, as well as the methods used to protect people and their environment from radiation hazards, while still enabling the safe and beneficial use of radioactive material. Graduates of this program would possess a strong background to begin teaching and/or research careers in this field.

OSU has offered degrees in this field since 1963 within the department of Nuclear Engineering, and the proposed Ph.D. would complement the existing B.S. and M.S. programs. During the past few years the program has expanded in terms of student enrollment, research activity, and in the number of faculty working in the field. Students and employers alike have expressed great interest in OSU developing a doctoral program.

Research activity at OSU has resulted in the construction of the world's only fully operational testing facility for evaluating the safety features of the next century's nuclear reactors. The addition of this Ph.D. program will help consolidate OSU's position as an international leader in research on the applications of nuclear science and technology. This proposed program would make OSU the only university on the west coast (and only one of three such programs west of the Mississippi) with a Ph.D. program in this field. This is quite significant given that many of the nation's nuclear sites are in nearby states.

No new resources are sought to implement the proposed program. The courses needed for the program are currently being taught, and the laboratory and library facilities required to support the program are currently in place. The enrollment in this doctoral program is expected to be five to ten students, with two to four graduates anticipated each year.

Master of Music in Performance or Conducting/Elimination of the Master of Arts in Teaching Music, PSU

The primary objective of the proposed program is to provide a graduate program in music leading to a Master of Music (M.M.) degree in Performance or Conducting. Portland State University (PSU) now offers two master's degrees in general music and pedagogy (Master of Arts in Teaching [M.A.T.], Master of Sciences in Teaching [M.S.T.]). These programs are accredited by the National Association of Schools of Music (NASM). Currently, 40 students are enrolled in PSU's master's of music program (24 full time and 15 part time). In 1994-95, PSU awarded nine master's degrees in general music consistent with production over the last five years.

PSU anticipates that 60 percent of the graduate music students would select the performance or conducting option to more closely align academic preparation with career interests and goals. If the proposed program is approved, the M.A.T. would be eliminated when the M.M. is operational, leaving two options: the M.S.T. and M.M. Students seeking certification in public school teaching and those who do not meet the more rigorous performance standards of the Master of Music would pursue the M.S.T. program.

This proposed graduate professional degree complements PSU's other music programs, extends the bachelor's degree in Music Performance, and would be highly desirable to performing musicians in the Portland metropolitan area seeking advanced education opportunities. As a major cultural center in the state, Portland offers a unique opportunity to be a training ground for the performing artist. PSU's Department of Music is only a few blocks away from the Portland Center for the Performing Arts. PSU already has close ties with the major performing arts groups and artists in the area including the Oregon Symphony, Portland Opera, and Portland Opera Orchestra. With almost 100 performing groups in the metropolitan area ranging from small chamber ensembles to large choral groups, dedicated students will have access to professional or semi-professional experiences so critical to their success.

No additional resources are required to offer the proposed program and accommodate ten additional students. All courses are presently in place with the exception of a course in Score Reading, which is currently offered as an independent study course.

Graduates will be prepared as professional performers and have employment opportunities in symphonies, opera organizations, and academic situations.

Joint Program in Master of Software Engineering

Four graduate institutions in the state of Oregon (Oregon State University, the University of Oregon, Portland State University, and the Oregon Graduate Institute) express an interest in developing a second joint Master of Engineering program (the Master of Engineering in Manufacturing Engineering was first) leading to the Master of Engineering in Software Engineering. Because planning discussions with industry partners are on a fast track, staff desires to provide the Board with preliminary information. The timely development and implementation of such a program would be seen as highly responsive to local and regional economic development needs. This course of study would be based on the recently implemented, practice-oriented Master of Engineering in Manufacturing Engineering program; would be developed with, and closely involve, partners in the private sector; and would focus on providing continuing graduate education for individuals already employed in the burgeoning field of software engineering. This program would make the best use of the faculty and facilities of all the participating institutions, would offer telecommunicated courses to distant sites, and would feature courses in the late afternoon and evening for the employed professional.

Intensive planning activities for this proposed program are currently underway, with the goal of having a preproposal document, including budget estimates, developed in the very near future. The group charged with planning has identified a number of specific task areas in order to produce a proposal and a program that will be attractive and acceptable to both academia and industry. These areas of planning include: (1) curriculum development in consultation with potential students and their industrial sponsors, (2) identification of such crucial program elements as course delivery locations, formats, facilities and infrastructure requirements, and program administration issues, (3) a market analysis to assure the value of the proposed program to the local software engineering community, (4) developing a strategy for funding that includes start-up and maintenance costs, and (5) documentation of the current capability on the campuses with respect to software engineering and related areas.

Joint-Campus Graduate Program in Environmental Science, Studies, and Policy

The University of Oregon (UO), Oregon State University (OSU), and Portland State University (PSU) express an interest in developing a comprehensive, joint-campus graduate program in environmental science, studies, and policy. In this area, the Board has seen increasing interest at the undergraduate level in the past two years -- and has approved a variety of programs on OSSHE campuses. In fact, in the decade of the 1990s, the proliferation of environmental programs on campus is a national phenomenon, not just an Oregon one. Not since the early 1970s (in the wake of the first Earth Day) has the study of the environment enjoyed such universal student and institutional popularity. A 1996 publication on the status of environmental education reports an estimate of over 400 environmental studies and sciences programs in institutions of higher learning in this country -- with the number growing yearly. Based on recent research by the Environmental Careers Organization, employment prospects are good for individuals with environmental graduate degrees. Federal and state agencies, consulting firms, and other private sector employers rely on staff with post-baccalaureate training.

This joint graduate program would draw upon the individual strengths of existing programs and enhance graduate student access to faculty members, classes, and facilities at all of these institutions, thereby enabling students to take advantage of the best in the State System in pursuing their graduate studies. The growing role of environmental science, studies, and policy is broadened and strengthened by involving all three institutions in a joint program and, in so doing, expands access to a rich curriculum and minimizes redundancy in the State System. OSU is presently authorized to offer baccalaureate degrees in Environmental Engineering as well as in Environmental Science; the UO offers the baccalaureate and master's in Environmental Studies; and PSU offers the baccalaureate in Environmental Studies as well as the doctorate in Environmental Science/Resources. This proposed joint-campus graduate program would link together individual graduate programs presently in place and thereby further both institutional and System objectives.

The three institutions involved in this planning effort suggest a menu of graduate environmental programs that are complementary in nature. Recognizing that the State of Oregon has the need for a steady supply of highly trained individuals in its environmental regulatory and resource agencies, OSU proposes to offer the M.A., M.S., and Ph.D. in Environmental Science. Students in the program will be trained across the disciplines of life, physical, and social sciences and concentrate in one of four specific tracks that include ecology, biogeochemistry, social sciences, or quantitative analysis. The UO proposes to offer a Ph.D. in Environmental Sciences, Studies, and Policy (ESSP). The interdisciplinary nature of this degree program would ensure that students will be exposed to the manner in which the natural sciences, social sciences, humanities, and policy studies each approach environmental topics. The program would prepare environmental professionals, researchers, and scholars; would bring together individuals having strengths from different disciplines and possessing a range of independent research capabilities; and would train students to apply their skills to a variety of environmental topics. Finally, PSU proposes two master's degrees: the M.S. in Environmental Science and the M.E.M. (Master of Environmental Management). The proposed master's degrees complement the existing campus baccalaureate and doctoral programs and aim to develop, for each student, a depth of knowledge and skills in a particular aspect of environmental science appropriate for mid-level employment or for later doctoral training.

The joint-campus program in environmental science, studies, and policy is unique for the following reasons: (1) It represents a grass-roots organizational effort of faculty from many different departments and programs on the three university campuses. The joint-campus program is designed to organize the complementary course offerings and relevant faculty expertise on the three campuses. (2) The joint-campus program emphasizes the sharing of resources (faculty, course work, instrumentation, etc.) among the three campuses. (3) The program provides an administrative framework to oversee admission of graduate students, faculty participation, advertisement and mentoring, and coordination of student and faculty research. Administrative responsibility and the directorship of the joint campus program would rotate among the campuses. 4) The program would administer a central budget for graduate assistantships and travel between the campuses. These funds would be augmented by departmental and program resources of each of the participating campuses.

At the Academic Council meeting on January 18, 1996, the provosts agreed that this preproposal would be offered to the Board for consideration with the understanding that additional attention to integration of this joint campus program would be pursued before a full proposal is brought forward for consideration. Discussions are ongoing on the three campuses, involving participating faculty, the graduate deans, and the provosts. Many of the issues with which they are dealing are common to collaborative programs, regardless of academic field or specialization.

Master's Degree in Physical Therapy and Occupational Therapy, OHSU, OSU, and OIT

Oregon Health Sciences University (OHSU), Oregon State University (OSU), and Oregon Institute of Technology (OIT) propose to jointly develop a master's degree program in Physical Therapy (PT) and Occupational Therapy (OT). The proposed program would prepare PT and OT practitioners who provide care and training for patients who are disabled by illness, accident, or are born with developmental disabilities.

The demand for physical therapists and occupational therapists is increasing at a faster rate than the entry rate of graduates from accredited training programs. The U.S. Bureau of Labor Statistics indicates that the growth rate in numbers of practicing physical therapists and occupational therapists by the year 2000 will be about 88 and 78 percent, respectively. Student access to PT and OT programs in Oregon is limited to a single private institution in the Portland area, Pacific University.

The combination of existing curricula and distance education technologies, with a professional sequence including clinical experience, would optimally use resources and expertise available on at least the three campuses mentioned. In addition, Eastern Oregon State College (EOSC) and Western Oregon State College (WOSC) have expressed an interest in this program to the extent campus resources permit. The community college sector is interested in the articulation of the physical and occupational therapy assistant programs. Finally, preliminary discussions with Pacific University indicate an interest in exploring the possibility of a public-private consortium.

The proposed collaborative program would also provide physical therapists and occupational therapists opportunities to obtain continuing education credits required by their professional associations to maintain licensure. The consortial nature of this proposal will readily lend itself to a geographically distributed model for continuing professional development, which would meet a strong need of current practitioners.

The proposed programs further the mission and strategic direction of the institutions by broadening the curricular offerings in the health care profession and responding to the health care needs of Oregon's rural and urban communities through collaborative programs. A careful needs assessment of both quantity and distribution of jobs for physical and occupational therapists across Oregon should and will be performed as part of the planning process and before the optimum class size and campus locations are determined. In preliminary discussions, both the AHEC program and the Portland Development Commission have indicated a willingness to assist in such a statewide assessment.

The current estimate is that at least 30 students would enter each of the two professional phases of PT and OT across the System, with broad regional opportunities for students to access the preprofessional programs.

Many of the courses, particularly in the preprofessional sequence necessary for the PT and OT programs, exist in complementary curricular offerings on all three campuses, and to some extent on all OSSHE campuses. However, combination of reallocations within existing budgets and new resources will be necessary to support the program, especially the professional sequence. A net increase in faculty FTE will be required, particularly as accreditation of the programs by national accrediting bodies is essential and requires that a significant cohort of the teaching faculty must possess specific degrees in PT and OT fields. An additional potential resource is the opportunity to shift dollars currently allocated each year to provide financial assistance to Oregon residents who attend private and out-of-state PT and OT schools (WICHE), and the additional tuition provided by the enrolling students, particularly in the professional graduate programs. Both OSU and OHSU are currently involved in facilities remodeling and faculty FTE allocations that would partially support the addition of this program.

Students completing a master's degree in PT or OT would be eligible to take either the licensing examination given by the Oregon Board of Physical Therapy or the American Occupational Therapy Certification Board. Jobs for physical therapists are projected to grow 40 percent between 1995 and 2005 in Oregon. Graduates are employed in Oregon's rural and urban hospitals, rehabilitation centers, extended care facilities such as nursing homes, home health agencies, public and private schools, and private practice. The average annual income range for physical therapists is $36,000 to $56,000. Additional opportunities for occupational therapists include programs for the developmentally disabled and at psychiatric centers.

Issues Related to Collaborative Programs

The Board has consistently communicated its desire for more cooperation and collaboration among the campuses in the development and delivery of new and existing academic programs, and the programs described herein make significant progress toward meeting that goal. However, experience with mounting joint-campus programs in the past five and more years indicates that many factors affect their success. As System campuses attempt program development in these areas, it may be useful for the Board to be advised of some of the questions and issues of collaborative planning, including the following:

1. The number of players who must necessarily be involved in joint program planning, development, and delivery is larger -- and they are separated by larger distances -- than those involved on the single campus level. Campus processes are multiplied by the number of campuses participating, communication is typically more complex, the time involved for decision making is much longer, and significant coordination of processes is required.

2. Programs may have different admission standards and criteria and different tuition and fees. Transferability for students is affected by differing institutional policies and procedures, although these differences may be justified. How will students view these differences? How will funding be affected?

3. Geographical distance is a barrier for faculty presenting courses and students desiring to take courses at another OSSHE campus. Just because a student is enrolled in a joint program doesn't mean that a specific course is realistically available. How can access be enhanced? Distance delivery is sometimes feasible, sometimes not.

4. The availability and efficacy of support services for students is complicated by proximity to the campus. How are issues of support services in joint campus programs best addressed?

5. To this point, the absence of a common academic calendar for the System has led to scheduling difficulties. Consensus has been reached in the Academic Council, however, that standardization must occur and be phased in as soon as possible.

6. Is it preferred policy for joint programs to be separate on each participating campus but linked together in a number of ways, or should at least some joint programs be fully integrated ones with the diploma awarded by a new joint entity?

7. What are the incentives and rewards for campus participation in the development, implementation, and maintenance of joint campus programs?

The list of issues above is incomplete, but illustrates the complex nature of the planning process and the issues related to the implementation of joint programs at undergraduate and graduate levels. Even with these difficulties, the faculty members and administrators are actively exploring mechanisms to build linkages among institutions in order to facilitate academic programs across the state. The linkages will be explicitly stated in the proposed joint-campus proposal and represent the first of many steps necessary to develop fully functional joint-campus activities.

(No Board action required)

OPTIONAL RETIREMENT PLAN

Staff Update

At the April 1996 meeting, the Board approved the Optional Retirement Plan and Trust Documents with the understanding that the Plan and Trust Documents would be placed on the consent agenda for the May meeting and that any final changes would be made prior to that meeting.

Based on the review and consultation with the Attorney General's Office, staff has made minor editorial changes to the Optional Retirement Plan Document. The Trust Document remains unchanged. After the Board acts, the Plan and Trust Documents will be submitted to the Internal Revenue Service for review.

Final versions of both the Retirement Plan Document and the Trust Document are included within the supplemental materials.

Staff Report to the Board

The 1995 Oregon Legislature passed House Bill 3395, which authorized the State System of Higher Education to offer a defined contribution retirement plan as an alternative to the Public Employees' Retirement System (PERS). In February the Board approved implementation of the Optional Retirement Plan.

Legal counsel and the project consultants recommend that the Board appoint a Retirement Plan Committee to administer the plan. Responsibilities of the Committee would include determining employee eligibility for plan participation, hearing appeals on questions of eligibility, authorizing fund transfers, directing beneficiary payments, and performing other administrative duties as outlined in the Plan Document, to be performed within the guidelines specified by existing OSSHE Administrative Rules. It is recommended that the retirement committee consist of three members: the Assistant Vice Chancellor for Human Resources (chairperson), OSSHE's Manager of Personnel/Payroll Operations, and one Benefits Officer from an OSSHE campus.

In addition, legal counsel recommends that the Board approve the Plan Document, which determines plan provisions, for submittal to the Internal Revenue Service for their approval. The Oregon Attorney General's Office, the William M. Mercer Company, and OSSHE staff were involved in developing the Plan Document. A copy has been provided to the Board. A member of the Attorney General's staff will be in attendance at the April Board meeting to respond to any Board questions about the Plan Document.

Finally, Section 401(a) of the Internal Revenue Code requires establishment of trustees to manage plan assets placed with mutual funds; two of the optional retirement plans are mutual funds. The trust can be administered internally or contracted with a third party. A copy of the Trust Document, which defines the trustees' duties and limits on trustees' liability, has been provided to the Board.

Staff Recommendation to the Board

Staff recommended that the Board approve the Optional Retirement Plan Document and the establishment of a Retirement Committee to administer provisions of the Optional Retirement Plan with membership as described above. The Board delegates authority to the Vice Chancellor for Finance and Administration to make any changes necessary in the Plan, to sign the Plan, and to undertake other actions necessary to implement the Plan in a timely manner. Staff recommended that the final Plan, containing any changes in the document currently before the Board, be placed on the May consent agenda.

Further, staff recommended that the Board approve establishment of an OSSHE Optional Retirement Plan trust, approve the Trust Document, and delegate to the Vice Chancellor for Finance and Administration authority to make any necessary changes in the Trust Document, to sign the Trust Document, and to appoint trustee(s). Alternatively, the Board delegates authority to the Vice Chancellor for Finance and Administration to contract for external trust services, if he so chooses. Staff recommended that the final Trust Document, containing any changes in the document currently before the Board, be placed on the May consent agenda.

Board Discussion and Action (April 19, 1996)

Vice Chancellor Ihrig summarized the optional retirement plan. He recommended the trustee be Controller Steve Katz.

Dr. Aschkenasy asked what the consequences would be if the Board did not make a decision at this meeting. Mr. Ihrig responded that it would delay the implementation of the decision of approximately 40 employees who wished to take advantage of this option. Dr. Aschkenasy, referring to the two hand-outs regarding this item, registered his concern about voting on an item about which he was not thoroughly familiar. Vice Chancellor Ihrig acknowledged that concern.

Ms. Puentes moved and Ms. Christopher seconded the motion to approve the staff recommendation. The following voted in favor: Directors Bailey, Christopher, Imeson, McAllister, Miller, Puentes, Rhinard, Willis, and Swanson. Those voting no: none. Dr. Aschkenasy abstained.

BOARD ACTION:

THIRD QUARTER REPORT ON INVESTMENTS

Staff Report to the Board

The third quarter investment report of the Pooled Endowment Fund of the Oregon State System of Higher Education for the period January 1, 1996, through March 31, 1996, is presented in three parts: (1) a summary report from the Common Fund that describes the performance results of the various funds used by the State System, (2) tables showing the market value and investment performance of the State System Pooled Endowment Fund through March 31,1996, and (3) an investment consultant's report from R.V. Kuhns and Associates, included within the supplemental materials.

COMMON FUND SUMMARY

Equity Fund - ($25.0 million market value) The Equity Fund returned 6.3 percent for the quarter, outperforming the 5.4 percent return of its benchmark, the Standard & Poor's 500 Index (S&P 500). For the past 12 months, the multi-strategy Equity Fund is up a strong 29.0 percent but trails the 32.1 percent return earned by the index, which has benefited during this period from its domestic stock focus and its concentration on large cap issues (which have led the market's advance over the past five quarters).

Led by the Growth Equity Fund, the Core Equity Fund, and the Hedge Fund, five of the fund's seven strategy allocations added value during the quarter. The fund's allocation to the Equity Income Fund detracted from performance modestly, as did its Global/International allocation.

In the short term, the Common Fund expects that the multiple strategies and multiple managers that are the foundation of the Equity Fund will serve it well through what may continue to be a turbulent market. In the longer term, the Common Fund believes members will benefit from the fund's diversification, which includes a 56 percent allocation to primary domestic equity strategies and 44 percent to diversifying strategies.

Bond Fund - ($12.8 million market value) The Bond Fund declined -1.5 percent for the past quarter but outperformed its benchmark, the Lehman Aggregate Index, which retreated -1.8 percent. For the past 12 months, the Bond Fund has returned 11.1 percent, 30 basis points over the benchmark's return.

The Bond Fund benefitted from its greater diversification, particularly in areas of the market that are less sensitive to interest rates. The fund's 13 percent private debt allocation returned 1.1 percent, and the 4 percent high-yield allocation returned 3.2 percent. Its allocation to the Global Bond Fund performed in line with the domestic market.

Calendar year 1995 was characterized by declining interest rates, benign inflation, and moderate economic growth. Over the course of the year, the yield on 30-year Treasuries declined 194 basis points. This year, interest rates reversed direction; and over the course of the quarter, long bond yields rose from 5.95 percent to 6.67 percent.

Real Estate - (12/31/95 market value $2,276,000) Through year-end 1995, Endowment Realty Investors I's (ERI I) total return since inception stood at 5.7 percent, which compares favorably with the 2.0 percent total return for the NCREIF Index (the real estate private equity benchmark) over the same period.

The past year was a very good one for ERI I's investors, as the fund returned 12.1 percent, comprised of 7.8 percent income and 4.3 percent appreciation. This compares to a total return of 6.8 percent for the NCREIF Index, which included an income return of 8.1 percent and a loss of -1.3 percent in appreciation.

At year-end 1995, ERI I sold its investments in two properties, Metro Corporate Campus II and Sand Hill Plaza, for $1.6 million in excess of the current appraised values. The sale of these properties, together with the sale of Park Place Apartments in 1994, represents the early stages of the liquidation of ERI I, which is scheduled to be completed by December 31, 2000.

The 1995 property appraisals show that the retail component led the fund's four property sectors, as its appraised value increased 7.6 percent primarily due to the increase in the value of the Saks Fifth Avenue Building in San Francisco. Following retail, the apartment sector's appraised value rose 4.3 percent, the office sector showed a slight decline, and the industrial sector showed a slight increase.

Endowment Energy Partners - (9/30/95 market value $660,000)

Through December 31, 1995, Endowment Energy Partners I (EEP) produced a net internal rate of return (IRR) since inception in 1989 of 13.3 percent. While producing good returns, 1995 performance was negatively impacted by soft prices, particularly for natural gas, which comprises about two-thirds of EEP's assets.

Beginning in December 1995, a number of factors resulted in sharply higher gas and oil prices, including higher demand from abnormally cold weather in the northeastern United States, low natural gas storage inventory and low oil inventories, and continued moderate but steady growth in demand for oil globally. The size of the price increases caught many investors by surprise; natural gas prices jumped by more than a $1.00 per mcf (metered cubic foot) between summer and year-end, and crude oil prices increased $2.50 per barrel over the same period. Energy fundamentals look solid for the long term.

Endowment Partners Fund - (9/30/95 market value $471,000) Through September 30, 1995, Endowment Partners Fund I produced a net internal rate of return (IRR) of 11.0 percent since inception in 1988. The fund has committed its $46 million to seven managers who have invested in 87 companies, principally in the services, manufacturing, and retailing industries.

There have been several realizations of note recently. Thomas H. Lee Company completed its previously announced sale of Thermoscan (infrared thermometers) to the Gillette Company. The fund's cost basis for Thermoscan shares is $12.80, and it received $31.82 a share in the transaction, not including a previously announced stock split. Thomas H. Lee also sold Banana Boat, a skin care products company, to Playtex for 1.8 times its original investment.

Clayton, Dubilier & Rice completed the previously announced sale of turbine manufacturer Allison Engine to Rolls Royce in December 1995, less than two years after investing $98.7 million in the company. The proceeds of the sale were $297 million, for a gross IRR of 105 percent.

Endowment Venture Partners-(9/30/95 market value $665,000) Endowment Venture Partners I's (EVP I) internal rate of return (IRR) rose to 17.8 percent during the third quarter, ending September 30, 1995, up from 15.8 percent three months earlier. EVP I partnerships go through full annual audits, which delays the December 31, 1995, results. EVP I is nearly fully invested; through December 31, 1995, the managers have called $78.2 million, or 89 percent, of capital. Distributions from managers have also been rising; $6.9 million was distributed in the third quarter and $6.0 million during the fourth. Since inception, EVP I has received cumulative distributions of $22.6 million, or about 29 percent of the total contributions made to managers. Through January 1996, EVP I had distributed $7.8 million to participants; and since the fund has now entered into its distribution phase, the Common Fund expects that number to grow significantly.

OSSHE INVESTMENT PERFORMANCE

The following tables present the investment performance results from the third quarter of 1995-96 for the OSSHE Pooled Endowment Fund.

INVESTMENT CONSULTANT'S REPORT

Included within the Board's supplemental materials is the investment consultant's report from R.V. Kuhns and Associates, with whom we have contracted to monitor and evaluate the investment performance of the managers. The Kuhns and Associates' report will be part of future quarterly investment reporting to the Board.

(No Board action required)

[Hard copy of docket had a table. It is not available in electronic format.]

REPORT ON SALE OF BONDS

At the March 1996 Board Executive Committee meeting, the Executive Committee approved the sale of Article XI-F(1) and Article XI-G bonds, to be issued through the State Treasurer, to finance projects for capital construction and facilities repair and renovation. At the April 1996 meeting, the full Board ratified the Executive Committee decision.

On May 1, 1996, the Board of Higher Education issued $56,038,000 in bonds. The sale included $44,680,000 of Article XI-(F)1 bonds and $11,358,000 of Article XI-G bonds. The average interest rate on the sale was 5.9 percent, with actual interest rates ranging from a low of 3.75 percent for 1997 maturities to a high of 6.0 percent for maturities in the years 2015, 2016, and 2026.

The sale of the bonds was very timely, given that information released the day after the sale caused interest rates to rise.

(No Board action required)

SEMI-ANNUAL REPORT ON CAPITAL CONSTRUCTION PROJECTS

There was significant activity between the previous report in October 1995 on Board-approved capital construction projects and April 30, 1996. The following table portrays the status of all legislatively approved capital construction projects at the seven colleges and universities of the State System. Some are listed as complete, meaning that they are occupied and all artwork, accounting, construction claims, and other transactions have been finished. Some of the projects reaching this stage during the past six months included the Parking Improvements at Oregon Institute of Technology; Knight Library Addition at the University of Oregon; the Forest Research Lab Renovation, Southern Oregon Experiment Station, Surplus Property Building (Seed Warehouse Replacement), Memorial Union Renovation Phase I, and the Langton/Women's Access project at Oregon State University; Harrison Hall at Portland State University; and the CAPITAL Center in the Beaverton/Hillsboro area.

With the completion recently of the OSU Memorial Union Renovation Phase I, Phase II of this project is now underway. Construction was recently completed on a portion of the Visual Arts Complex at SOSC. The $514,000 spent to date created a new sculpture studio within an existing building and funded schematic design for the entire complex. The UO's efforts to replace Amazon Student Housing continues with construction of several units underway. OSU has completed the design of the Kerr Library Expansion/Remodel project and recently awarded to an Oregon company the Construction Manager/General Contractor (CM/GC) contract for that project. Construction is scheduled to begin June 17, 1996.

Thirty-two projects with limitations totaling $181 million were approved by the Legislative Assembly for 1995-1997; their status is included in this report.

(No Board action required)

CURRENT CAPITAL CONSTRUCTION PROJECTS

Balances as of April 30, 1996

($ in thousands)
Coll/ Univ Project Name Fund Source Limit/Appn Balance Status
1989-1991 Projects
SYS Asbestos Abatement GF $ 2,062 $ 5 Now Open
OIT Parking Improvements Parking 500 0 Complete*
OSU Kerr Library GF, Gift 2,080 1,631 Balance of Limitation Canceled*
OSU Seed Warehouse Replc Inst. 580 0 Complete*
SOSC KSOR Satellite Stn Federal, Gift 419 19 Some eqpmnt on order
UO Knight Library Addtn GF, Gift 26,620 0 Complete*
UO Student Housing Housing 10,000 6,814 Balance of Limitation Canceled*
1991-1993 Projects
SYS Land Acquis, etc Various $ 440 $ 275 Now Open
EOSC Hoke Hall Addition BF, Housing 2,500 12 Now Open
OSU Envirn Computing Ctr Gift 2,000 34 Now Open
OSU FRL Lab Renovation Inst. Funds 230 0 Complete*
OSU Mitchell Gym. Rehab Gift 750 22 Now Open
OSU S. Oregon Exp Stn Gift, Inst. 500 0 Complete*
SOSC Campus Ped Safety Housing 235 96 Under Constr.
SOSC Parking Expansion Parking 150 5 Under Constr.
UO Museum Nat Hist Gift 1,570 1,570 In Planning
UO Longhouse Gift 545 545 No Activity
UO N. Campus Relocation Riverfront 2,225 2,225 On Hold
UO Communication Services Bldg Auxiliary 5,200 4,710 Bldg. Acq.
UO Chem Lab Renov. Gift/Grant 1,520 523 Under Constr.
UO EMU SELP SELP 667 78 Under Constr.
PSU Student Housing Housing 19,040 18,858 On Hold*
1993-1995 Projects
SYS Utility Renovation Various $ 1,726 $ 1,386 Open
SYS Safety Improvements Various 200 200 No Activity
SYS Academic Modern. Various 600 235 Open
SYS Handicap Improv. Various 939 739 Open
SYS Land Acquisition Various 750 450 Open
SYS Deferred Maint. GF,XI-G Bonds 23,340 5,342 Under Constr.
SYS Capital Center Various 6,200 0 Complete
SOSC KSOR Improvements Grant, Gift 450 450 No Activity
SOSC Stevenson Union Add. BF, Auxiliary 600 6 Under Constr.
SOSC Visual Arts Complex Gift 2,700 2,186 Part Under Cst.
SOSC Handicap Access Inst. 72 4 Under Constr.
OIT Child Care Facil. BF 200 198 In Planning
OSU Memorial Union Renov. Ph I BF,SELP,Inst 2,884 350 Complete*
OSU Seafoods Lab Grant, Gift 4,400 3,133 Contract Issued*
OSU Seafood Ed Center Grant 1,995 1,750 On Hold*
OSU Pharmacy Lab Renov. Gifts 850 850 Await Gifts
OSU Langton/Women's Access Inst. 322 0 Complete*
OSU Kerr/Kidder Energy SELP 1,371 1,306 Under Constr.
OSU Kerr Lib. Expan/Remod. Gift, XI-G Bonds 20,000 18,356 Contract Issued*
OSU Lab Theater Renov Gift 750 682 Under Constr.*
OSU Food Innovation Ctr Grant,Inst,Rent 8,775 8,775 Await USDA-CREES approval*
UO Law Library Add. Gifts 2,315 NA Limitation Canceled
UO Fac./Staff Child Care Gifts, Fees 1,240 1,180 In Design
UO OIMB Add/Alts Grant 1,500 1,500 Await Grant
UO Gilbert Hall Add/Alts Gifts 7,500 7,258 In Design
UO Amazon Housing, Ph II Housing 9,000 8,926 Under Constr.
UO International College GF/Hous- ing/Lott. 18,000 17,789 On Hold
UO Johnson Hall Access Inst 150 90 Under Constr.
PSU Harrison Hall Inst 2,554 0 Complete*
PSU Housing Rehab. Housing 4,475 4,249 On Hold
UO EMU SELP SELP 637 321 Under Constr.
1995-1997 Projects
SYS Repair/Renovation GF/Bonds/Other 28,750 20,650 Under Constr.*
SYS Safety Improvements Other 650 650 Open
SYS Utility Syst Rehab Other 8,500 8,500 Open
SYS Academic Modernization Other 4,200 3,800 Some in Constr.*
SYS Campus Handicap Imp Other 1,300 1,300 Open
SYS Seismic Improvements Other 1,000 1,000 Open
SYS Land/Various Impv Other 1,000 1,000 Open
SYS Facilities Planning Other 500 500 Open
OSU Kerr Library Expan Gifts/ Bonds 20,000 20,000 Contract Let*
OSU Forest Ecosystem Res Lab Fed/Gifts 20,000 20,000 Open
OSU Memorial Union Renov Bldg Fee 2,650 2,450 Under Constr.*
OSU West Dining Housing 4,855 4,650 Contract Let*
OSU West Hall Renovation Housing 8,285 8,000 Contract Let*
OSU Family Housing Housing 8,400 8,400 Open
OSU HMSC Visitor Center Federal 5,500 4,000 Under Constr.*
1995-1997 Projects (con't)
OSU HMSC Dock Upgrade Federal 4,200 3,200 Under Constr.*
OSU HMSC Housing Other 1,100 970 Some In Constr.*
OSU Valley Football Ctr Add Gifts 5,300 4,800 Under Constr.*
OSU Greenhouse Lottery 319 319 On Hold
WOSC Bsns/Math/CS/Forensic Other/ Lottery 3,500 3,500 On Hold
WOSC Training Center Other 7,700 7,700 On Hold
WOSC College Center Renovation Bldg Fee 2,250 2,180 Contract Issued*
SOSC Art Facilities, Ph II Gifts 3,065 3,065 In Design
SOSC Family Housing Housing 2,900 1,500 Under Constr.*
UO Law Center Library Gifts/ Bonds 9,400 9,250 In Planning
UO Longhouse Other 650 600 In Planning
UO EMU Safety Bldg Fee 4,150 4,100 In Planning
UO Family Housing Housing 6,000 6,000 Ph I Under Const
UO Riverfront Bsns Incubator Lottery 3,500 3,500 Await Funding
PSU Urban Center Federal/ Lottery 5,500 5,300 In Design
PSU Housing Rehabilitation Housing 2,000 2,000 Programming
EOSC Residence Hall/Dorian Housing 3,935 3,630 Rebidding*




* Indicates change in status since previous report.

Abbreviations: Inst.=Institution Funds; BF=Building Fee; GF=General Fund; SELP=State Energy Loan Program; Lott.=Lottery; HMSC=Hatfield Marine Science Center; BSNS=Business; CS=Computer Science