UH Board of Regents taking its duties seriously

The University of Hawaii Board of Regents takes seriously its duty to formulate policy and exercise jurisdiction over the operation of Hawaii’s only public university.

In the aftermath of the Stevie Wonder matter, the board conducted a self-study and has acted to improve operations and practices. While the Wonder matter was a tragedy and the Senate hearings painful, they have led to increased board accountability, oversight and engagement.

Greater use of committees has made it incumbent upon university management to bring up issues early in committee so that there is sufficient time for review and vetting before reaching the full board.

Improved fiscal responsibility is reflected in new executive and management salary controls. Board policy has been amended so that the personnel committee’s prior approval is required for salaries over $150,000, and personnel committee and board approval are required for all salaries or employment extensions above $150,000. A study of market salaries for comparable government and nonprofit positions is expected by end of January.

Administration is also, at the board’s request, reviewing the positions in public, governmental and media relations and assessing cost efficiencies in centralizing key functions. A report will be forthcoming in the second quarter of 2014.

For further accountability, the Budget and Finance Committee has requested that the next biennium budget be determined by revenue and expenditures on an operating basis.

The university’s successful implementation of the new financial system Kuali will enable the administration to provide revenue and expense statements for review and analysis.

In construction management and procurement, the administration is reorganizing the system Office of Capital Improvements and the Office of Facilities and Grounds at Manoa, with clear guidelines as to which office will be responsible for overseeing which projects.

OCI will oversee all new construction and renovation projects, and OFG at Manoa will oversee repair and maintenance projects and structural projects under $5 million.

Amended executive policies will require that all engineering and architectural plans be complete before a project is sent out to bid, leading to a reduction in change orders, and will stipulate that projects are to be managed according to budget. Construction contracts will contain meaningful liquidated damage provisions to reduce delays in completion. A project timetable will include tasks and responsibilities that must be completed prior to commencement of construction of a project, reducing cost overruns.

The 2014 UH Supplemental Budget request reflects the board’s priority of eliminating the university’s repair and maintenance backlog. The board has approved a moratorium on new construction with exemptions for projects needed to maintain accreditation or "in the pipeline" prior to the moratorium.

We expect to eliminate 30 percent of the $480 million backlog in three years and all backlog in 10 years.

The budget proposal asks the Legislature to fund the faculty pay snapback of $14 million and the faculty union pay raises of $19 million, allowing the use of tuition to back revenue bonds to pay for repair and maintenance backlog work.

There are good things happening at the University of Hawaii, such as sustained extramural funding coming into the state at $400 million annually; steady enrollment at 58,941 students; continuing public support with $66.3 million in donations in 2013; a 27 percent increase in diplomas awarded since 2008; and a healthy contribution to the economy of $3.6 billion — UH’s total economic impact — in 2012.

Let’s all work together to ensure this institution critical to our future remains strong and vibrant for generations to come.