President Palms appointed Provost Odom chair of the committee earlier this year with the aim of taking a closer look at University cost cutting. Last-minute maneuvering by Gov. Hodges spared drastic budget cuts to higher education this year, but USC administrators anticipate another bleak year for state appropriations in 2002.

"The president is concerned about what our budget will be July 1, 2002, and whether we will be ready strategically, particularly if there is a cut," Odom said.

While Odom outlined several questions the committee should consider, he also reminded the 12 members that "there is no reason to rearrange the deck chairs if there is nothing to be gained financially."

The committee heard a brief report from Harry Matthews, director of Institutional Planning and Assessment, on revenue and expense data for individual academic units. His initial report, which will undergo further refinement, calculates tuition and fee revenue by each college based on credit hour production.

Future topics the committee will address include tuition waivers for graduate students, organizational reporting structure of several non-academic units such as McKissick Museum, Distance Education and Instructional Support, and University centers and institutes.

"I would like to plan several open meetings when any faculty, staff, or student could come, have their say, and express their concerns," Odom said. "I want this to be an open process."