Coordinating Board for Higher Education Meeting Minutes 12-05

COORDINATING BOARD FOR HIGHER EDUCATION
MINUTES OF MEETING

February 9, 2006

The Coordinating Board for Higher Education (CBHE) and Presidential Advisory Committee (PAC) met at 9:00 a.m. on Thursday, February 9 at the Truman State Office Building in Jefferson City.

Members present were:

Lowell C. Kruse, Chair
Martha Boswell
Diana Bourisaw
Marie Carmichael
Jeanne Patterson (via conference call)
Duane Schreimann
Kathryn Swan
Gregory Upchurch

Presidents or their representatives present were:

Aaron Podolefsky, Central Missouri State University
Constance Bowman for Henry Givens, Jr., Harris-Stowe State University
Carolyn Mahoney, Lincoln University
Julio León, Missouri Southern State University
James Scanlon, Missouri Western State University
Kichoon Yang for Dean Hubbard, Northwest Missouri State University
Frank Einhellig for Michael Nietzel, Missouri State University
Barbara Dixon, Truman State University
Stephen Lehmkuhle for Elson Floyd, University of Missouri
Bruce Bulbacz for Guy Bailey, University of Missouri-Kansas City
Glen Cope for Thomas George, University of Missouri-St. Louis
Dan Steadman for William McKenna, Jefferson College
Don Doucette for Jackie Snyder, Metropolitan Community Colleges
Steve Kurtz for Terry Barnes, Mineral Area College
Evelyn Jorgenson, Moberly Area Community College
Norman Myers, Ozarks Technical Community College
John McGuire, St. Charles Community College
Brent Bates for Marsha Drennon, State Fair Community College
Larry Kimbrow for John Cooper, Three Rivers Community College
Donald Claycomb, Linn State Technical College

CBHE Chair Lowell Kruse called the Coordinating Board for Higher Education and Presidential Advisory Committee meeting to order. A list of guests is included as Attachment A.

The presence of a quorum was established with a roll call vote.

Chair Kruse welcomed everyone to the meeting and encouraged active participation and discussion by the presidents and chancellors. The format and layout of the meeting continues to be modified in an effort to arrive at a setting that is conducive to open and productive communication between the CBHE and PAC members.

CBHE Chair Kruse turned the meeting to President James Scanlon, Chair, Presidential Advisory Committee.

Presidential Advisory Committee

FY 2007 Budget Update

Commissioner Gregory Fitch explained that following an internal search by a screening committee and himself, Ms. Donna Imhoff, who currently serves as the MDHE budget analyst, has been promoted to assistant commissioner for fiscal affairs and operations. The promotion will be effective on February 16, 2006. Commissioner Fitch said that Ms. Imhoff has been responsible for many of the duties associated with this new position since July 1. Commissioner Fitch stated that Ms. Imhoff is a well-qualified, professional member of the MDHE team and expressed his confidence that she will be successful in her new position.

Ms. Imhoff provided an update on the status of the FY 2007 higher education budget request. She began by providing the board with the governor's budget recommendations as they relate to higher education.

• Recommendation for a two percent increase from the FY 2006 core for the public two- and four-year institutions. If funded, the recommended two percent increase would trigger the community college equity funding formula. This formula takes a percentage of the increase in funding from all community colleges and redistributes those funds to the community colleges that fall below 85 percent of the mean of state appropriations per FTE for Missouri community colleges.

• Recommendation for community college appropriations consolidated into General Revenue and Lottery proceeds funds would appear as a single line item in the House bill. This is a technical issue in the appearance of the appropriation; it does not have any funding impact.

• Unemployment compensation funds would be transferred to Linn State Technical College and the four-year institutions from the Office of Administration. The institutions would become responsible for expenses relating to payment of unemployment compensation.

• New decision item requests for University of Missouri-related items were not recommended for funding.

• A four percent pay plan increase for state employees, with additional raises for certain position titles.

• Increase $1E (estimated) in federal and other funds to $225,000E for Coordination Administration.

• State agencies' individual information technology groups would be transferred entirely to the Office of Administration, DHE will keep one FTE (office support assistant) and associated dollars ($26,000) along with retaining $150,000 in Missouri student loan program E&E.

• The Office of Administration would take over costs associated with fuel and utilities from state agencies. A transfer of $14,225 in general revenue is proposed along with $34,828 from the guaranty agency operating fund to the Office of Administration.

• Recommendation to fulfill the request of the Midwestern Higher Education Compact (MHEC) for increased state dues payment; including a supplemental request for FY 2006 of $7,500. MHEC increased states' dues payments in FY 2006; however, the Compact has allowed Missouri to maintain its dues at $82,500. MHEC has 10 member states in the Midwest and is committed to advancing higher education through interstate cooperation and resource sharing. During 2004-5, Missouri saved approximately $4.8 million through its MHEC membership.

• The final core reduction to the Advantage Missouri Program will occur. The program will be completely phased out after this year, although the MDHE will continue to monitor recipients of Advantage Missouri funds, as some recipients of those funds continue to work in fields that are designated in the Advantage Missouri Program.

• A recommended core cut to the State Anatomical Board. The State Anatomical Board supports this recommendation and will pay its own expenses through fees assessed to the state's medical schools.

The MDHE presented HB 3 to the House Appropriations-Education Committee on January 23, 2006. Committee members had a number of questions relating to the Missouri student loan program. On February 7, 2006 the House Appropriations-Education committee marked-up HB 3; no amendments were proposed and by a vote of 16-1 HB 3 passed out of the committee. HB 3 will now head to the House Budget Committee.

Summary of Proposed Legislation Related to Higher Education

Commissioner Fitch provided an update and status on some of the pending legislation related to higher education:

SB 580, Sponsored by Senator Charlie Shields-Would formalizes collaborative relationship between the departments of economic development, elementary and secondary education, and higher education to achieve a more efficient and effective educational system. This legislation would formalize and strengthen the existing relationships between the Departments of Higher Education, Economic Development and Elementary and Secondary Education. This proposal has been called unique in the nation by the Midwestern Higher Education Compact.

SB 590, Sponsored by Senator Gary Nodler-Grants additional authority to the CBHE including binding arbitration authority and the ability to impose fines against institutions.

SB 641-Sponsored Senator Delbert Scott-Requires all contributions to MO$T be held for 12 months. The MO$T program is currently undergoing significant changes including transitioning from TIAA-CREF as the program's manager to a new consortium of companies that will manage the state's college savings plan.

SB 654-Sponsored by Senator Gary Nodler-Establishes the Associate Degree Transfer Incentive Scholarship Program. Dr. Don Doucette, Metropolitan Community Colleges, clarified the intent of the legislation in that the program would provide funding to public four-year institutions in order to provide continuing scholarship aid to students with an associate's degree transferring to a four-year institution. The legislation has the support of both the Council on Public Higher Education (COPHE) and the Missouri Community College Association (MCCA) Presidents/Chancellors Council.

The presidents and chancellors emphasized the need to eliminate any misperceptions about the intent of this legislation, as well as speaking collectively in support of the bill.

CBHE Chair Kruse asked Commissioner Fitch to communicate CBHE and Presidential Advisory Committee support for SB 654 to the appropriate legislators.

SB 662, Sponsored by Senator Jason Crowell-Increases the amount of the Bright Flight scholarship from $2,000 per year to $4,000 per year.

SB 673, Sponsored by Senator Chuck Graham-Requires one voting member of the board be a student at the University of Missouri, Missouri State University, and Truman State University.

Commissioner Fitch provided an overview of draft legislation that Representative Carl Bearden intends to file relating the establishment of the Access Missouri Scholarship, as well as provisions regarding higher education funding. As proposed, the Access Missouri Scholarship is a one year, nonrenewable scholarship award of $1,000 which students could utilize to attend a four-year higher education institution of their choice. One element of the legislation includes the implementation of institution performance measures. The legislation identifies five performance measure elements (two institution specific elements, two related to the state higher education system, and one Carnegie level element). Data collection requirements are also outlined within the legislation, as well as the framework for the development of partnerships among institutions, and the establishment of a joint committee of higher education. MDHE staff have been working with Representative Bearden and his staff to address questions relating to the administration of the proposed scholarship program, as well as providing information relating to the other major components of the legislation.

Members of the Presidential Advisory Committee expressed concern about the proposed funding structure within the bill, but acknowledged the importance of moving toward adequate funding for state student financial assistance programs.

Review of and Update on State Student Aid Task Force Recommendations

Mr. Dan Peterson, Director of Financial Assistance and Outreach provided an update on the work of the State Student Aid Task Force.

One of the nine recommendations the Task Force has proposed is to reduce eligibility for renewal of state student financial assistance from 10 semesters to 8 semesters. The intent is to free up some funding that could be redirected to other state student financial assistance programs. As a result of feedback the Task Force has received regarding this recommendation, the Task Force has decided to set aside this recommendation at this time.

At the December CBHE meeting, the board adopted the Task Force report and directed the commissioner and MDHE staff to move forward with developing an implementation plan for the recommendations. The board requested an additional report at the December 2006 CBHE meeting on the status of implementation of the recommendations.

Mr. Peterson noted that Rep. Bearden will be attempting to move two of the Task Force's recommendations forward in his legislation concerning student financial assistance and higher education finance: amending the Missouri College Guarantee Program statute to eliminate the high school eligibility requirements and changing the renewal criteria for both the Bright Flight Scholarship and the Charles Gallagher Scholarship Program so that both programs require a 2.5 grade point average for a renewal award.

The next meeting of the Task Force is February 10, 2006. The Task Force will continue to address equitable distribution of need-based aid across all sectors of higher education.

Minutes of the December 8, 2005 CBHE Meeting

Dr. Diana Bourisaw moved that the minutes of the February 9, 2006 CBHE meeting be approved as printed. Mr. Gregory Upchurch seconded the motion and it passed unanimously.

Proposed 2007 CBHE Meeting Dates and Locations

Dr. Bourisaw moved that the Coordinating Board for Higher Education adopt the proposed 2007 meeting dates and locations. Mr. Duane Schreimann seconded the motion and it passed unanimously.

Crowder College and Missouri Southern State University Agreement on Associate Degree Delivery

As part of the 2004 legislation which allowed Missouri Southern State College to change its name to Missouri Southern State University-Joplin (additional legislation in 2005 allowed the institution to remove "Joplin" from its name) (MSSU), the institution is required to discontinue all associate degrees by July 1, 2008, unless approved for continuation by the CBHE. MSSU and Crowder College, along with MDHE staff, have been working to identify which programs MSSU will discontinue and which programs MSSU will continue to deliver. MSSU currently offers 11 associate degrees.

Following a joint review and analysis by the institutions, an extensive joint agreement has been signed by the two institutions noting that four associate degrees and three options are targeted by MSSU for deletion, while seven associate degrees are targeted for retention. The agreement also outlines when admission to discontinued programs will cease and when the programs will be officially removed from the MSSU program inventory. In addition, Crowder College has indicated that students in discontinued programs will easily be able to make the transition to Crowder programs.

Clearly, both MSSU and Crowder College have worked collectively to arrive at a solution that will ensure that the needs of the students, region, and state will be met. Commissioner Fitch acknowledged both institutions for their collaborative efforts on this issue.

Ms. Kathryn Swan moved that the Coordinating Board for Higher Education commend Dr. Julio León, president of Missouri Southern State University; Dr. Stephen Gates, president of Crowder College; the boards of each institution; and the respective staff at each institution for their dedication and leadership in forging a model collaborative agreement.

Ms. Swan further moved that the Coordinating Board for Higher Education approve the program deletions, program retentions, program changes, and stipulations outlined in this board item.

Ms. Marie Carmichael seconded the motion and it passed unanimously.

State Student Financial Aid Program Processing for 2006-2007

The Missouri College Guarantee Program provides need-based scholarships to eligible Missouri citizens. Since the appropriation for the College Guarantee Program has remained constant at approximately $8 million over the last four years and additional funding for FY 2007 is not anticipated, fewer students will continue to receive scholarship funds. In 2005, facing the same challenge, MDHE staff worked with the Council on Public Higher Education (COPHE) and the Missouri Community College Association (MCCA), as well as with representatives of the Independent Colleges and Universities of Missouri (ICUM) to address the issue. As a result of these discussions and based on the recommendation of MDHE staff, the CBHE approved using the 2004-05 maximum cost of attendance ($13,935) and the maximum award ($6,200) for the 2005-06 academic year.

As the CBHE State Aid Program Task Force continues its work and with no additional funding for the College Guarantee Program anticipated for FY 2007, MDHE staff is proposing to continue using the same cost of attendance ($13,935) and the same maximum award ($6,200) for the 2006-07 academic year. In December 2005, MDHE staff recommended this action to the subcommittee of COPHE, MCCA, and ICUM that worked on this issue previously to see if these groups would continue to be supportive of maintaining the same process for the 2006-07 academic year. MDHE staff did not receive any opposition to this request.

This will allow the MDHE to continue to maximize the use of current program funding levels so that the maximum number of eligible students receive College Guarantee Awards.

In the legislation being drafted by Representative Bearden dealing with state student financial assistance, a provision has been included that would freeze the cost of attendance and maximum awards for the Missouri College Guarantee Program at the 2004-2005 academic year level.

Dr. Bourisaw moved that MDHE staff continue to use the 2004-2005 maximum cost of attendance ($13,935) and maximum annual award ($6,200) for processing the Missouri College Guarantee Program awards for the 2006-2007 academic year. Mr. Schreimann seconded the motion and it passed unanimously.

Recertification of Institutional Eligibility to Participate in the Charles Gallagher Student Financial Assistance Program and Other State Student Financial Assistance Programs

For all current approved institutions to continue participating in state student financial assistance programs, they must be recertified for institutional eligibility every three years. Participating institutions were last certified in 2002. This recertification process which began in October 2005, requires the distribution and completion of an institutional application for recertification, a review of the institution's compliance with the data collection requirements of the Coordinating Board for Higher Education, approval by the Coordinating Board, and notification to each institution from the commissioner regarding the board's action.

Ms. Carmichael moved that the Coordinating Board for Higher Education approve the institutions listed in the attachment for recertification to participate in the state student financial assistance programs administered by the Coordinating Board for Higher Education until February 2008. Mr. Schreimann seconded the motion and it passed unanimously.

Missouri/Kansas Reciprocal Agreement

Dr. Stein provided background regarding the history and success of the Missouri/Kansas Reciprocal Agreement. The CBHE has statutory authority to coordinate reciprocal agreements between Missouri and out-of-state institutions. Dating back to 1989, Missouri and Kansas have utilized an agreement whereby Missouri residents have had access to architecture programs at the University of Kansas and Kansas State University at in-state tuition rates. In turn, Kansas residents have paid in-state tuition rates to participate in the dentistry program at the University of Missouri-Kansas City. Since 1989, modifications to the agreement included lowering the number of available dentistry seats in exchange for making seats available in optometry at the University of Missouri-St. Louis.

The current Missouri/Kansas Reciprocal Agreement, which provides 491 architecture waivers for Missouri and 80 dentistry and 20 optometry waivers for Kansas, expires on June 30, 2006. Under a newly negotiated five-year agreement, signed by the Kansas Board of Regents and the University of Missouri, Missouri will retain access to 491 architecture seats, while Kansas will have access to 5 additional dentistry seats and 8 fewer optometry seats, all at in-state tuition rates. Upon approval of the CBHE, Commissioner Fitch is prepared to sign the agreement.

Dr. Bourisaw made a motion that the Coordinating Board for Higher Education endorse the new five-year Missouri/Kansas Reciprocal Agreement. Ms. Swan seconded the motion and it passed unanimously.

Consent Calendar

Items placed on the consent calendar are recurring issues or are a routine part of the CBHE's and the MDHE's operation. Any or all items may be withdrawn from the consent calendar by any member of the board, if further discussion is necessary.

Mr. Schreimann moved that items found behind Tabs H, I, J, and K on the consent calendar be approved as printed. Ms. Swan seconded the motion and it passed unanimously.

MDHE Administrative Services Update

Ms. Imhoff provided the board with an overview of the MDHE's administrative support group. The group, which is composed of five staff, has been involved in many projects to improve service and performance, while reducing agency costs. The administration group is responsible for providing various services within the department including mail service, accounting functions, human resource functions, implementation of a personnel policy manual committee, implementation of office safety procedures, as well as fulfilling the agency's receptionist duties.

Commissioner Fitch and board members expressed their appreciation for the hard work and team effort of the MDHE administration group.

Committee on Transfer and Articulation Update

Dr. Stein provided the board with an update on the activities of the CBHE's Committee on Transfer and Articulation (COTA). Designing an effective and efficient transfer and articulation system remains a priority of the CBHE. In support of that priority, COTA has been actively pursuing several initiatives:

• Appointment of a chief academic officer subcommittee to review CBHE admissions policies associated with the high school curriculum and recommend appropriate updates to the policies.

• Discussions with licensed vendors offering technology enhanced products to help students and institutions navigate and monitor transfer pathways.

• Support for the development of individual articulation agreements between proprietary institutions and public institutions.

• Development of a report card on transfer practices is under consideration.

• Provide ongoing clarification of the CBHE's Dual Credit Policy.

Math/Science Update

Dr. Stein shared with the board that Governor Blunt will convene a math/science summit on April 25 in Jefferson City. The summit is an effort to bring educators, businesses and private organizations together to discuss ways to improve student knowledge in the areas of math, engineering, technology, and science (METS) to better prepare tomorrow's leaders for the global economy. Planning for the summit, which is being carried out in coordination with the governor's office and a planning committee representing business/industry, education, and state agencies, has been underway for several months and is intended to set a new standard for collaboration among state leaders in business/industry, education, and government.

As presently structured, the invitational summit will begin with a small governor's roundtable with key business and education leaders. In the afternoon, a larger group will convene in work groups to further refine an action plan.

The summit will serve as both a catalyst for immediate results, as well as providing the opportunity to identify long-term solutions that will address challenges with Missouri's approach to education reform.

Update on Structure for Annual Reports on Higher Education Centers Operated by Southeast Missouri State University and Three Rivers Community College

At the December 8, 2005 CBHE meeting, the CBHE directed the commissioner to collect data annually about all off-campus and out-of-district higher education centers operated by Southeast Missouri State University (SEMO) and Three Rivers Community College (TRCC).

In response to the board's direction, Dr. Stein and his staff developed a six-part survey requesting information relating to general site information, program specific information, course specific information, retention information, institutional financial information, and financial aid information. This data collection effort is intended to be carried out annually until the board determines to sunset the requirement for SEMO and TRCC.

In order to obtain baseline information, data has been requested for FY 2005; a second request for an update will be sent in April for FY 2006 data. The intent of this data collection effort will serve to inform future decision making concerning the status of those centers within the parameters of state law and public policy.

Community College Out-of District Programs Inventory Review

The CBHE has oversight for decisions by community colleges to deliver certificate and academic degree programs outside their taxing districts. MDHE staff recently became aware of discrepancies that exist between the state's academic program inventory for certificate and degree programs offered by community colleges outside their taxing districts. Dr. Stein provided an overview to the board concerning the process being used by MDHE staff and the community colleges to reconcile the discrepancies. Dr. Stein noted that although the MDHE initiated this review, the community colleges recognize the importance of maintaining an accurate program inventory that serves as reference for prospective students, administrators, and state policy makers and have been very responsive to requests for information.

As a result of the survey, MDHE staff is working with four community colleges to resolve self-reported discrepancies. MDHE staff is analyzing the discrepancies to determine the origins of any sites or degree programs that have not received formal program approval by the CBHE. Program recognition or other strategies for the reconciliation of the official program inventory will then be further explored with community college presidents and chancellors.

Dr. Stein noted that MDHE staff will be conducting a similar review with institutions from other educational sectors.

Report of the Commissioner

Commissioner Fitch provided the board with an overview of Governor Blunt's Lewis and Clark Discovery Initiative and the proposed sale of a portion of the assets of the Missouri Higher Education Loan Authority (MOHELA), the proceeds of which would support this initiative. Under this unique public-private partnership, the asset sale would fund higher education capital projects, create the Missouri Opportunity Scholarship Fund, the Missouri Discovery Alliance Endowment, and the Missouri Endowed Professorship Initiative. Commissioner Fitch emphasized the positive economic impact this initiative would have on the state.

Ms. Carmichael noted that over the years MOHELA has made presentations to the CBHE about the programs, activities, and services MOHELA offers in support of borrowers. Mrs. Carmichael said that it has been distressing to the CBHE that in light of the tremendous borrower benefits MOHELA is able to offer students, that some state institutions choose not use MOHELA. With the governor's proposal, state higher education institutions are positioned to benefit financially from those institutions that have supported MOHELA over the years. Mrs. Carmichael encouraged non-participating institutions to take another look at the services and benefits MOHELA offers students.

During the discussion, a copy of a House Republican press release dated February 9, 2006 was distributed. The release outlined a proposal for the use of the proceeds from the sale of MOHELA assets. The proposal includes funding for community college maintenance and repairs, as well as directing funds toward state debt reduction. Board members expressed concern that any financial benefits realized from the sale of a portion of MOHELA's assets should be utilized to support higher education.

Chair Kruse asked Commissioner Fitch to draft a response on behalf of the board to be communicated to the governor's office in recognition of the potential partnerships that would be created through the initiative and the proposal's support for economic development.

Adjournment

There being no further business to come before the board, Dr. Bourisaw made a motion for adjournment, Mr. Schreimann seconded the motion and it passed unanimously. The Coordinating Board for Higher Education meeting adjourned at 12:05 p.m.

Respectfully submitted,

Brenda Miner
Executive Assistant to the Commissioner