As published on Sunday, July 6, 2003
in the Honolulu Star-Bulletin

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Footnotes

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(1) “Regent Ikawa moved to appoint Evan S. Dobelle as the 12th President of the University of Hawaii at a salary of $442,000 effective July 1, 2001 through June 30, 2008. The motion was seconded by Regent Kobayashi.” [Minutes of Board of Regents, March 12, 2001]

(2) “The separation (president and UH Manoa chancellor positions) was to incur no additional costs and with the understanding that no movement would take place until reorganization plans, charts, and budgets were first approved by the Board.” [Minutes of Board of Regents, January 19, 2001]

(3) “No additional resources are being programmed for the staffing and operation of the UHM Chancellor’s Office.” [Minutes of Board of Regents, January 19, 2001]

“The proposed reorganization and implementation plan should meet the directives as expressed by the Board at its September 2000 meeting, with one exception. The Board had originally called for a budget on the assumption that significant transfers of funds would be required from systemwide support appropriations to Manoa as a result of the reorganization. Current budgets, however, already reflect most of the affected units within Manoa’s appropriation. Nevertheless, the administration will adhere to the Board’s requirement that this reorganization incur no additional costs to the University.” [Minutes of Board of Regents, January 19, 2001]

(4) Cost of Reorganization. See graphic in article.

(5) “The administration is lean, down 21 percent in actual funded administrative FTE positions. Actually, $1.89 million less in administrative costs than it was 10 years ago. There are few higher salaries representing the collapsing of positions that has allowed recruit for some of the best minds in higher education administration.” Dobelle, Evan. [Testimony at the Senate Committee on Ways and Means and Senate Committee on Education Information Briefing, January 27, 2003]

(6) “He (Dobelle) also told legislators that UH is spending about $1.9 million less in administrative costs than it did 10 years ago.” “Pay doubles for new UH dean.” Apgar, Sally. [Honolulu Star-Bulletin, March 16, 2003]

(7) Historical Report of Total Exec/Mgr Salary and FTE Data. [Morihara, David; Attachment to Response Letter to K. Mark Takai, February 27, 2003]

(8) “Cost of Administration. There have been statements about the cost of (the) administration being $1.89 million less than it was a decade ago at the University of Hawaii system. Can you provide the documentation showing this decrease in administrative costs? Response: There are fewer filled administrative positions (than) 10 years ago, but the overall cost has increased.” [Morihara, David; Response Letter to K. Mark Takai, February 27, 2003, Page 2]

(9) “In the wake of neglecting to consult the senate on the proposal, which the Board of Regents will vote on this Friday, Dobelle and Interim Vice President for Academic Affairs Deane Neubauer faced a proposed resolution for censure from the senate yesterday. After an hour of discussion, the senate tabled the resolution for censure - so that it can be discussed at a later meeting - in favor of a second resolution that asked the administration to consult them on future faculty-impacting endeavors. Frank Sansone, a liaison officer with the senate’s committee on administration and budget, which proposed the censure, said the administration never consulted the senate during the creation of the proposal. He said the censure vote was necessary because communication between faculty and administration “is an integral part of American higher education.” “Senate resolves Prez’s faux pas: Faculty Senate tables censure resolution; adds changes to reorganization.” [Fukumoto, Beth; Ka Leo O Hawaii, November 21, 2002]

(10) "It must be stated that the salaries and compensation being paid to excluded administrators at UH have increased very substantially over the last two years, while, at the same time, faculty members (who are being paid in the bottom 20 percentile, and below, in comparison with faculty at peer institutions) are facing a situation where they are anticipating no increases in salary in the next two fiscal years.” [Musto, J.N., Executive Director, UHPA; Testimony before the Senate Committee on Education and the House Committee on Higher Education. April 9, 2003]

(11) Calculation: $4 million divided by 2,800 full-time faculty could have resulted in a $1,428 raise for each of the 2,800 faculty members.

(12) “4. Evan S. Dobelle, University of Hawaii System, Total annual compensation: $599,500 ($442,000 base salary, $157,500 in deferred compensation if he completes his seven-year contract and is not offered another term, and a house and car).” “Private Funds Drive Up Pay of Public-University Presidents.” [Basinger, Julianne and Perry, Seth; The Chronicle of Higher Education]

(13) The Regents approved a salary of $395,000 per year for the new president. That figure is 18 percent less than the $465,872 average presidential salary of the public and private universities across the nation that UC uses for salary-comparison purposes. It is consistent with the $394,640 average presidential salary of UC’s public comparison institutions. . . The University of California, founded 135 years ago in 1868, today is widely considered the pre-eminent public university system in the world. UC enrolls more than 200,000 students and employs more than 160,000 faculty and staff.” [Reese, Michael; June 11, 2003, press release from the University of California]

(14) Dobelle, Evan. [Testimony at the House Committee on Higher Education informational briefing, January 7, 2003]

(15) Dobelle has been criticized for his hiring practices and salaries. At a session with legislators in January, he said his leadership style is to have a few key people with higher salaries and a lot of responsibility, rather than five or six people with lower salaries and the same responsibility but no one who is clearly accountable.” “Pay doubles for new UH dean.” [Apgar, Sally; Honolulu Star-Bulletin, March 16, 2003]

(16) Mr. Dobelle can’t imagine why anyone would see his hiring of Mr. Costello and Mr. Sloane as cronyism, which he says ‘is defined as hiring people you know who aren’t qualified.’” “Hiring Their Friends.” [Jacobson, Jennifer. The Chronicle of Higher Education. February 21, 2003]

(17) Sloane, James. [Disclosure of Financial Interest Form, 2002]

(18) “Before joining UH as chief financial officer in December 2001, Sloane founded Cambridge-based financial consulting company K@tapult, Inc. He previously served as chief operating officer for North America for Baring Asset Management. He has also been a partner at Handley International and managing director at Aetna Life and Casualty, where he was architect of a partnership with Bank of China and adviser to the speaker of the U.S. House of Representatives on reengineering and decision analysis.” [UH Website]

(19) Calculation: 30 years at 2 percent/year equals 60 percent of the highest three years, which is capped at $200,000 per year. 60 percent of $200,000 is $120,000 per year. Whereas, 60 percent of $85,000 is $51,000 per year.

(20) “UH logo controversy intensifies debate over priorities.” [Perez, Rob; Honolulu Star-Bulletin, April 27, 2003]

(21) "University of Hawai’i President Evan S. Dobelle today announced that the two final designs for the new system-wide identity will be withdrawn from consideration due to overwhelming concern from the community.” [Wester, Kate; press release from the University of Hawaii]

(22) “We have listened. Attached is a copy of the press release issued on April 30 regarding withdrawing the two designs.” [Costello, Paul; Response Letter to K. Mark Takai, May 1, 2003]

(23) “Specific branding/marketing assessment for each campus. UH Manoa: $986,292 adjusted to $749,582. UH Hilo: $111,415 adjusted to $84,675. Community Colleges: $402,293 adjusted to $305,743.” [Costello, Paul; Response Letter to K. Mark Takai, May 1, 2003]

(24) “UH President Evan Dobelle, who took over in July, has said he will personally raise funds from private sources to cover the renovation costs, possibly by naming rooms after donors who underwrite some of the costs.” “Dobelle residence fixes cost $1 million: Renovation funds will be raised from private donations, he says.” [Shapiro, Treena; Honolulu Star-Bulletin, November 2, 2001]

(25) “Dobelle said that he was concerned about where the money to pay for the projects would come from, and he insisted that it not be taken out of student fees and tuition. He said he has already raised $50,000 from a historical foundation interested in helping preserve the home.” “Dobelle house under scrutiny: Many critics question university approval for renovation funding.” [Shapiro, Treena; Honolulu Star-Bulletin, November 3, 2001]

(26) “I think that we got one donation of $50,000.” [Dobelle, Evan; Testimony at the Senate Committee on Ways and Means and Senate Committee on Education Information Briefing, January 27, 2003]

(27) “I haven’t made that a highest priority. We will begin to raise money, but I couldn’t make that a priority over scholarships for students. . . My commitment was to make that effort (to raise $1 million), but after 9-11 it just seems to me that I had to set priorities. But I don’t see any reason why ultimately we can’t do that. It’s very hard to raise capitol costs. We continue to ask but it not the major priority.” [Dobelle, Evan; Testimony at the Senate Committee on Ways and Means and Senate Committee on Education Information Briefing, January 27, 2003]

(28) “Finally, you inquired about fund raising efforts for College Hill. $112,270.07 has been provided by private sources for the College Hill project. The interior design services for the project were a contribution. In addition there is a foundation grant of $25,000 per year made to the President each year which he has designated for College Hill. . . As stated in his testimony to the Legislature earlier this year, President Dobelle does not feel that requests to donors for College Hill renovations are appropriate given the decline in the state’s economy based on the events in New York and the threat of war.” [Sloane, Elizabeth; Response Letter to K. Mark Takai, March 17, 2003, Page 1]

(29) “The remaining $150 million will be financed through a private fundraising campaign. . . In effect, we are offering a 1-to-1 match. For every dollar the state invests in the biomedical plan, the university will raise one.” [Dobelle, Evan; Testimony at the Senate Committee on Ways and Means and the House Committee on Finance Hearing on HB 13/SB 13, October 23, 2001]

(30) Discussion between Sen. Donna Mercado Kim and Dobelle:

Kim: “What happens if you don’t raise the $150 million matching funds?”

Dobelle: “I don’t think that way, senator. It’s not the way I think. We will raise the $150 million. . . Senator, it’s not a question that I will allow my staff to ask. We will accomplish (this) because we will will ourselves to do it.”

Kim: “I understand, but as a responsible legislator who often says that we need to have back up plans and reasonable plans to do things. In some event that you happen to not be here and we do not raise the $150 million matching funds, what would happen?”

Dobelle: “Again senator, I respectively suggest that we will raise the money.”

[Testimony at the Senate Committee on Ways and Means and the House Committee on Finance Hearing on HB 13/SB 13, October 23, 2001]

(31) “We will raise the funds (for the $150 million match). We are committed to the partnership. We have a commitment to raise the $150 million. I’ve spent almost 240 of the 570 days I’ve been president being in a hotel room somewhere in the country raising money. What will not happen is we will not be returning to the Legislature for the $150 million. We said we would raise it. We have every indication that there is an energized alumni base out there. We will raise it.” [Dobelle, Evan; Testimony at the Senate Committee on Ways and Means and the Senate Committee on Education Hearing, January 27, 2003]

(32) Senate Committee on Education and House Committee on Higher Education hearing, March 20, 2003

(33) “Fundraising plans for the Kakaako Biomedical Complex require a comprehensive and highly competent team of individuals working on shaping fundraising opportunities from a variety of funding sources. . . It is thus appropriate and expected that our plans include several major components to drive such a significant effort. . . This plan will be presented to the UH Board of Regents for their review and approval prior to any presentation to donor prospects. This preliminary fundraising plan will be refined as we expand our volunteer efforts and further our prospect research efforts for this campaign.” [Dobelle, Evan; Letter to Calvin Say, Dwight Takamine and K. Mark Takai, May 1, 2003. pp. 2-3]

(34) “In the 903 account (budget) it shows a shortfall of $439,000.” [Hong, Ted; In questioning Wick Sloane at the UH Board of Regents’ meeting, June 20, 2003]

(35)  Englert, Peter [Presentation to Legislators. June 18, 2003]

(36) “Subject: Temporary Suspension of Outgoing Mail. Effective immediately, Campus Mail Services will be temporarily suspending the processing of any outgoing mail until Monday, July 7. We are sorry for this short inconvenience. Thank you for your patience in this matter.” [Ohigashi, Glenn; Email to UH Manoa campus staff, June 27, 2003, 13:32:18]

(37) “Subject: Campus Mailroom Statement - June 30, 2003. Due to the depletion of the Campus Mailroom’s postage meter account, there will be a temporary suspension of outgoing mail requiring postage. Campus and outgoing mail (with stamps) service will not be affected. Service for outgoing mail requiring postage is expected to resume by July 2 or 3. Non-priority mail should be delayed until full service is restored. Departments with time-sensitive mail that requires immediate attention should contact the Campus Mailroom at 956-5246 to discuss mailing alternatives.” [Ohigashi, Glenn; Email to UH Manoa campus staff, June 30, 2003, 13:52:21]

(38)  Discussion between Regent Ted Hong and Sloane:

Regent Hong: “In the 903 account (UOH 903) it shows a shortfall of $439,000. . . Based on the assumption that the chief of staff and secretary positions are funded are only $187,625, which is less than is requested here. I know in your memo you talked about having $1 million in interest income to cover those expenses and I did tell you yesterday that I wanted to have you talk to us about that.”

Sloane: “The surplus shortfall in the accounting conventions determines what is paid for general funds versus other funds and as you know the university has multiple sources on income - and there is no requirement that all things have to be balanced with general funds. There were times that general funds have come down so one of the sources of income which has been available but which we are not projecting strongly for the future is interest on special and revolving funds.”

[Board of Regents’ meeting, June, 20 2003]

(39) Discussion between Regent Ted Hong and Sloane:

Regent Hong: “The 903 account are fixed costs?”

Sloane: “If you take salaries as fixed costs . . . yes.”

Hong: “But that interest that you talking about from that account . . . it fluctuates . . . correct?”

Sloane: “No . . . this is interest which has been earned in this fiscal year which is a carryover balance for the year coming.”

Hong: “But you are not going to get a million dollars for every year.”

Sloane: “No . . . this is not a way to do this, but as you pointed out, some of these positions are only going to be here for a year and so we are taking this one year time but we take seriously where this is heading us towards.”

[Board of Regents’ meeting, June, 20 2003]

(40) “The board of regents of the University of Hawaii is authorized to expend one hundred per cent of the revenues deposited in the fund for: (1) research and training purposes which may result in additional research and training purposes which may result in additional research and training grants and contracts; (2) facilitating research and training and the university; and (3) further deposit into the discoveries and inventions revolving fund and the University of Hawaii housing assistance revolving fund.” [Hawaii Revised Statutes, Section 304-8.1]

(41) “SECTION 3. Section 304-8.96, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows: “(a) There is established a housing assistance revolving fund into which shall be deposited [twelve per cent] a portion of the total indirect overhead funds generated by the university for research and training purposes in the prior fiscal year [.] as determined by the board of regents. The fund shall be used to: (1) Implement the University of Hawaii housing assistance master plan, in accordance with policies adopted by the board of regents; and (2) Account for all transactions of the university housing assistance program, including but not limited to revenues, expenditures, loans, and transfers.” [House Bill 730 (2001), Act 114]

(42) “Housing Assistance - $3,094,381.” [FY 2003 RTRF Allocation Summary, April 14, 2003]

(43) “For FY 2002, $423,600 was deposited in the Discoveries and Inventions Revolving Fund and $1,270,800 was deposited into the UH Housing Assistance Revolving Fund.” [Sloane, James R. W.; Letter to K. Mark Takai. April 22, 2003]

(44) “Please allocate $1,272,284 from FY 2003 UH System RTRF funds to the Housing Assistance Revolving Fund. Per Mike Unebasami’s memo to you of April 3, this amount will reimburse the fund for debt service paid in September and April of this fiscal year.” [McClain, David; Memorandum to James R. W. Sloane, June 17, 2003]

(45) Discussion between Sloane and K. Mark Takai:

Takai: “Are there any plans to use RTRF funds to fund any administration positions or expenses? Were there any expenditures from RTRF funds to fund any administrative positions or expenses in FY 2002?”

Response from Sloane: “Yes, we are currently funding the office of the Vice-President for Research through the RTRF. The FY 2003 allocation includes funding for the Vice-President, secretary, and related office expenses for five months at approximately $200,000. An additional $400,000 is being allocated for the annual financial audit required for receipt of federal funds.”

“For FY 2002, no administrative positions were charged to RTRF. A total of $479,188 was expended in the systemwide programs for administrative expenses in support of research and training activities. These expenses include legal services incurred directly attributable to research activities, institutional membership fees required for recognition as a research institution, annual software licensing fees, etc.”

[Memorandum from Sloane, James R. W, April 22, 2003]

(46) “There is established a housing assistance revolving fund into which shall be deposited a portion of the total indirect overhead funds generated by the university for research and training purposes in the prior fiscal year as determined by the board of regents.” [Section 304-8.96 (a), Hawaii Revised Statutes]

(47) “We found that the revolving fund has been used for questionable purposes. . . We found that the Research and Training Revolving Fund was used to pay for aesthetic improvements to the library. . . When asked about these questionable expenditures, the university’s chief financial officer stated that the revolving fund’s intended purpose is very broad. The officer clarified his belief that any expenditure could be related to research and training, except for expenditures pertaining to athletics. Although the fund’s original purpose is broad, we believe that the fund should be used for expenditures that directly relate to research or training.” [Higa, Marion; Review of Selected University of Hawaii Non-General Funds and Accounts, Report No. 03-04, March 2003, p. 15]

(48) “The use of the Research and Training Revolving Fund by the administration has been a major source of discontent among the faculty researchers at UH-Manoa who are the individuals primarily responsible for the creation of this revenue source through their federal grants and contracts. They are very dissatisfied about the possible misuse of these funds, and the auditor’s report only reinforces their continuing skepticism and concerns. . . These are the people who bring in the money, and they are seeing much of it spent in ways that they do not believe to be legitimate. This is bad for morale.” [Musto, J. N.; Testimony at the Senate Committee on Education and the House Committee on Higher Education Hearing, April 9, 2003.]

(49) “Aside from some housekeeping amendments, the only significant change is the addition of a definition for consultation with the Board. This amendment is intended to assist the Board and the administration in determining a preferred course of action when handling certain administrative matters. Amendments to this chapter would also clarify that the interpretation of Board policy rests with the Board.” [Minutes of the Board of Regents, October 18, 2002, p. 10]

(50) “‘In consultation’ and/or ‘consult with the Board’ means to obtain input, comment, advice and direction from the Board or the Board’s designee prior to making a recommendation to the Board for decision-making and in certain instances, prior to administrative action by the President or the administration.” [Board of Regents’ Administrative Procedures Information System, Chapter 1: General Provisions. Section 1-1 (i); (This provision was added by the Board of Regents on October 18, 2002.)]

(51) “Amendments to this chapter would also clarify that the interpretation of Board policy rests with the Board.” [Minutes of the UH Board of Regents, October 18, 2002, p. 10]

(52) “The interpretation of all Board policies rests exclusively with the Board. Where no policy has been established by the Board, the President shall consult with the Board prior to taking action, however, the President shall be free to exercise his/her judgment in taking action on emergency matters of major importance provided that in consultation with the Board of its designee, it is determined that a special meeting of the Board cannot be held in time to address the emergency. Therefore, every attempt shall be made to have the Board convene in special session. The President shall inform the Board of such circumstances, advising it prior to taking any action(s) where Board policy is silent.” [Board of Regents’ Administrative Procedures Information System, Chapter 1: General Provisions, Section 1-2 (a) (2) (e)]

(The above section was amended by the Board of Regents in October 2002. The old section reads as follows: “Where no policy has been established by the Board, the President shall be free to exercise his judgment in taking action on matters where immediate action is required that cannot await approval of the Board provided, however, that if emergency matters of major importance, the Board will be convened in special session.”)

(53) “Chapter IX: Personnel. The significant changes in this chapter occur primarily in the Executive/Managerial section where further clarity was needed on the appointment, assignment, and compensation of executive personnel. The amendments further clarify that all actions pertaining to executive employees as well as exceptions to policies requires the prior approval of the Board.” [Minutes of the Board of Regents, October 18, 2002, p. 11-12]

(54) “Consultant Contracts. Contracts to engage consultant services, including, but not limited to, consultants to study or review University programs and/or operations for the purpose of recommending courses of action which are anticipated to require changes in Board policies and/or have significant impact on policy, programs or operations, or have a systemwide impact, shall require the prior approval of the Board regardless of amount or source of funding. Consultant services shall include but are not limited to architects, engineers, designers, financial analysis, audit providers, and planners. Consultant contracts which are estimated to be $100,000 or less, consultant expenses included, and not expected to result in changes in Board policies and/or have a significant impact on programs, operations and contingencies as stated in this section, shall be approved by the President or the President’s designees. All consultant contracts in excess of $100,000, expenses included, shall require the prior approval of the Board of Regents. This requirement may not be circumvented by parceling the amount of the contract or by engaging the services of consultants through entities or organizations other than the University of Hawaii.” [Board of Regents’ Administrative Procedures Information System, Chapter 8: Business and Finance. Section 8-1 (c)]

(The above section was amended by the Board of Regents in October 2002. The old section reads as follows: “Consultant Contracts. Contracts to engage consultants to study or review University programs and/or operations for the purpose of recommending courses of action which are anticipated to require changes in Board policies and/or have significant impact on programs or operations, shall require the prior approval of the Board. Consultant contracts which are estimated to be $100,000 or less, and not expected to result in changes in Board policies and/or have a significant impact on programs, operations, shall be approved by the President or the President’s designees. All consultant contracts in excess of $100,000, shall require the prior approval of the Board of Regents.”)

Additionally, the Board also approved changes that require prior Board approval “regardless of amount and funding source” for all procurement that “will have a significant impact on policy, programs or operations or have a systemwide impact.”

“Procurement Procedures. Subject to the provisions set forth herein, the President is authorized to develop internal policies and procedures for the procurement of goods, services and construction in accordance with law and Board policy, provided such procedures are approved by the Board prior to implementation. Except as otherwise provided herein, the procurement of goods or services exceeding $500,000 shall require the prior approval of the Board unless, in consultation with the Board, it is anticipated that such procurement will have a significant impact on policy, programs or operations, or have a systemwide impact, in which cases, prior Board approval is required regardless of amount and funding source. The specified threshold may not be circumvented by parceling.” [Board of Regents’ Administrative Procedures Information System, Chapter 8: Business and Finance, Section 8-1 (e)]

(55) “Section 8‑7 Travel. . . The President shall provide a monthly travel report to the Board including total expenses of each trip and funding source(s). . . All travel on official University business financed by University funds, regardless of their source, shall be by the lowest possible air fare available. Exceptions to the requirement of travel by the lowest possible air fare may be authorized by the President or his/her designees who shall include information on all exceptions, regardless of funding source, in the monthly travel report to the Board. [Board of Regents’ Administrative Procedures Information System, Chapter 8: Business and Finance, Section 8-7 Travel]

(The above section was amended by the Board of Regents in October 2002. The old section reads as follows: “Section 8‑7 Travel. . . The President shall provide such reports as may be requested by the Board from time to time. . . All travel financed by University funds, regardless of their source, shall be by the lowest possible air fare available. Exceptions to the requirement of travel by the lowest possible air fare may be authorized by the President or his designees.”)

(56) “I’ve spent almost 240 of the 570 days I’ve been president being in a hotel room somewhere in the country raising money.” [Dobelle, Evan; Testimony at the Senate Committee on Ways and Means and Senate Committee on Education Information Briefing, January 27, 2003]

The authors welcome your comments.