Coordinating Board for Higher Education Meeting Minutes 06-07
COORDINATING BOARD FOR HIGHER EDUCATION
MINUTES OF MEETING
June 14, 2007
The Coordinating Board for Higher Education (CBHE) met at 9:00 a.m. on Thursday, June 14, 2007 at Bryan College in Springfield.
Chair Kathryn Swan called the meeting to order. A list of guests is included as an attachment.
The presence of a quorum was established with the following roll call vote:
|
Present |
Absent |
Martha Boswell |
|
X |
David Cole |
X |
|
Lowell C. Kruse |
X |
|
Jeanne Patterson |
|
X |
Duane Schreimann |
X |
|
Kathryn Swan |
X |
|
Gregory Upchurch |
X |
|
Mr. Brian Stewart welcomed the CBHE, MDHE staff, and visitors to Bryan College. Mr. Stewart expressed appreciation to the Board for holding a meeting at a private career college and provided a brief history of Bryan College. Mr. Stewart introduced members of the Missouri Association of Private Career Colleges and Schools (MAPCCS) who were in attendance: Mr. George Holske of Metro Business College, Ms. Joan Ellison of Pinnacle College, and Ms. Michelle Holland of National American University.
Chair Swan thanked Mr. Stewart, his staff, and the MAPCCS members for their hospitality and stated that the opportunity to visit with MAPCCS members and to learn more about the proprietary sector was appreciated.
Committee Reports
Audit Committee
Mr. Duane Schreimann reported that the committee had reviewed two audits. The BKD audit of the Missouri Student Loan Program for 2005-2006 held no findings or concerns. The second audit, conducted by the State Auditor on the Student Financial Assistance program, had four recommendations:
- Seek legislation to revise the current methodology to determine need for the Gallagher program
- Increase efforts to verify student eligibility
- Review and improve policies on cut-off dates for determining eligibility, estimating funding, and returning funding from ineligible applicants
- Improve the Financial Assistance for Missouri Undergraduate Students (FAMOUS) system
Mr. Schreimann advised that some of the recommendations would be more difficult to address due to funding and personnel issues. Commissioner Robert Stein commented that Recommendation 1 is moot due to the enactment of the new Access Missouri program. For Recommendation 2, the MDHE is working with institutions for assistance in determining eligibility through the use of internal auditors. Mr. Leroy Wade, Assistant Commissioner, will discuss policies regarding eligibility and funding estimates for the Access Missouri program during his presentation, and returning funding from ineligible applicants is detailed in the new law (SB 389). The MDHE is also on target for improvements to the FAMOUS system.
Mr. Lowell Kruse stated that the Board should record its concern that the MDHE is unable to carry out its responsibilities in regard to the audit findings due to lack of adequate resources. Commissioner Stein stated that the MDHE is committed to working with legislators and the Governor’s Office on establishing the need for additional FTE and to communicating department needs early in the process. The department would appreciate support from Presidents and Chancellors on this initiative.
Student Loan/Financial Aid Committee
Chair Swan stated that Mr. Wade would cover information on this committee in his report.
Strategic Planning Committee
Commissioner Stein reported that the committee had postponed development of a new coordinated plan for higher education in Missouri. This decision was based on the need to focus on the legislative session and SB 389. With the session complete, the Board and the MDHE will re-establish an approach to the development of a coordinated plan.
Action Items
Approval of Minutes
Mr. Schreimann moved that the minutes of the April 12, 2007, CBHE meeting be approved as printed.Mr. Kruse seconded the motion, and it passed unanimously.
Report of the CBHE Nominating Committee and Election of Officers
Mr. Kruse, Chair of the Nominating Committee, reported that, according to CBHE by-laws, the current Board officers were eligible to serve another term. Each officer was approached by a member of the Nominating Committee, and each agreed to serve for a second term. Chair Swan opened the floor to additional nominations for each position; no other nominations were received.
Mr. Kruse moved that Kathryn Swan, Greg Upchurch, and Duane Schreimann be elected to serve another term as Chair, Vice-Chair, and Secretary, respectively. Mr. David Cole seconded the motion, and it passed unanimously.
2007-2008 Committee Assignments
Chair Swan stated that the Board would review current committee assignments and would make final assignments prior to the August CBHE retreat.
State Student Financial Aid Update
Mr. Wade updated the Board on the progress made on fast-track implementation for the Access Missouri program. The project is currently on schedule and within budget. Reprogramming of the electronic delivery system is nearly complete after which the testing phase will begin, and system implementation is anticipated by mid-August. However, the law will not go into effect until August 28, 2007, so disbursement of funds will not occur until the first week of September.
Mr. Wade commended the Information Technology Services Division, the MDHE staff, and the Tier Technologies staff for their support, dedication, and willingness to put in long hours to ensure this project is completed on time.
Preliminary projections for awards under the new program were forwarded to the financial aid community to assist in the development of aid packages for students. Mr. Wade stressed that the projections were preliminary in nature and that, as this is the first year of the Access Missouri program, award calculations were made using conservative estimates. As FAFSA and enrollment numbers are revised later this summer, the MDHE will re-evaluate the award projections and will set final award amounts in August.
Mr. Schreimann asked about the criticism from the state auditor that a significant amount of financial aid went to private rather than to public institutions.
Mr. Wade responded that the MDHE disburses funds based on statutory guidance. While the Gallagher and Guarantee programs used cost of attendance as a criterion to establish need, the Access Missouri program’s provisions base aid on expected family contribution (EFC).
Commissioner Stein asked Mr. Wade to comment on the rationale of the Student Financial Aid Task Force in supporting this program.
Mr. Wade stated that in his opinion the task force saw two positives: a move away from cost of attendance and toward a process that is driven more by family need; in addition, the new program is easier to administer and for students and families to understand.
Mr. Upchurch asked if students who attend proprietary/private career colleges would be eligible for Access Missouri grants. Mr. Wade responded that proprietary schools are not included.
Mr. Wade explained that the two proposed rules in the board book require Board action because the next CBHE meeting would not be until October. The two rules relate to institutional and student eligibility and attempt to clarify expectations of institutions, the MDHE, and the CBHE. The second rule also defines full-time students and initial and renewal recipients.
Mr. Upchurch moved to recommend that the Coordinating Board direct the Commissioner of Higher Education to file the attached Proposed Rulemakings as emergency rules as soon as possible after the effective date of the enabling legislation and to seek an effective date for those rules that is as early as possible under the related statutory provisions. Mr. Schreimann seconded the motion, and it passed unanimously.
Community College Capital Funding Policy
Ms. Donna Imhoff, Assistant Commissioner, briefed the Board on the actions of the policy working group. The group reviewed community college capital processes in other states and agreed that Missouri statutes allow for capital funding at community colleges.
The working group proposed revisions to the current capital funding policy. The revisions include clarification that maintenance and repair funds are part of an institution’s operating budget, that community college capital requests should be on a list separate from the public four-year and Linn State Technical College requests, and that the policy would apply to all public institutions.
Ms. Imhoff advised the Board of the working group’s discussion on the requirement for matching funds. Some recommendations offered were to request 100% funding for capital projects, to request up to three times the local match or 50% funding, whichever is less, or to request a 25% match from community colleges. The group could not reach a consensus on this issue. As a compromise, section II(8) of the revised policy explains that customary matching funds requirements should be considered on capital funding request; however, an institution’s ability to access local funds and the nature of the project should also be weighed. The revised policy would be applicable to capital requests beginning in FY 2009.
Chair Swan noted that the CBHE would appreciate knowing all funding sources for capital projects.
Mr. Paul Wagner, Deputy Commissioner, stated the working group had shared the proposed policy revisions with the Higher Education Funding (HEF) Policies Task Force. There is a possibility that recommendations from HEF to the board may change the capital funding policy beginning with the FY 2010 budget requests.
Dr. Don Doucette thanked the Commissioner and the CBHE for the Board’s follow-through on its commitment to review the policy.
Mr. Cole moved that the Coordinating Board for Higher Education adopt the revised Guidelines for Selecting Priorities for Capital Improvement Projects as recommended by the members of the community college working group. In addition, it is noted that for FY 2009 and subsequent years, community colleges along with all other public institutions will be invited to submit capital requests for consideration by the Coordinating Board for Higher Education. Mr. Kruse seconded the motion, and it passed unanimously.
Commissioner Stein stated that the MDHE would put together a request to institutions to follow a standardized format for capital funding requests.
Off-Site Instructional Activity Surveys – Southeast Missouri State University and Three Rivers Community College
Mr. Wagner briefed the Board on FY 2005 and FY 2006 data received from the two institutions. Overall findings suggest that there continues to be demand for services at both institutions’ off-site locations, that continued data collection is necessary to build trend lines, and that there is no indication that expenditures at these locations are unreasonable.
Mr. Schreimann moved that the Coordinating Board commend both institutions for their cooperation in the collection and submission of comparable data detailing off-site/out-of-taxing district instructional activity in the region in FY 2005 and FY 2006. It is further recommended that the Coordinating Board adjust its initial reporting timeline, which directed that data be reported annually by July 1, to direct that annual reports for each fiscal year be provided and reported to the CBHE by November 1 beginning with November 1, 2007, for FY 2007 data; and encourage both institutions to continue to work to strengthen educational attainment in southeast Missouri, and to seek collaboration with each other and with other entities where possible. Mr. Kruse seconded the motion, and it passed unanimously.
Mr. Schreimann departed at 10:30am.
Consent Calendar
Items on the consent calendar are recurring issues or are a routine part of the CBHE's and the MDHE's operations. Any or all items may be withdrawn from the consent calendar by any member of the board if further discussion is necessary. Chair Swan requested that Tabs B, C, and E be pulled from the consent calendar for discussion.
Academic Program Actions
Commissioner Stein announced that additional program changes for the University of Missouri – Kansas City were approved after the board book had been published. The approved changes are for the BBA, Business Administration degree and included inactivating the option in Computer Information Systems, reactivating the option in Marketing, and adding options in Entrepreneurship and Enterprise management. These changes will be added to the electronic board item on the MDHE website.
COTA Update
Mr. Wagner briefed the Board on the status of four-year signatories for the Associate of Arts in Teaching (AAT) degree. Currently, seven public and six independent four-year institutions have signed onto a statewide articulation agreement for this degree. The Committee on Transfer and Articulation (COTA) continues to work with institutions to move forward to help address unresolved issues.
Dr. Doucette thanked everyone involved in the collaborative effort to launch this degree and articulation agreement. Dr. Doucette stated that the degree addresses a particular state crisis, which is the need to increase the number and quality of teachers in Missouri.
Dr. Evelyn Jorgenson, Chair of COTA, thanked the task force that worked on the AAT degree and articulation agreement and thanked participating institutions for their input and support.
Commissioner Stein stated that some institutions have not yet replied to the request for signatories. It would be helpful if questions and concerns raised by faculty and administrators in relation to this degree would send those concerns in writing to the department. COTA and the MDHE will work together to contact those institutions to address those concerns.
On behalf of the CBHE, Chair Swan commended the committee for its work and its focus on students and on meeting crucial needs of the state.
METS Coalition Update
Chair Swan advised the Board that planning for the next METS Summit is underway and that a media event may occur on October 4, 2007 in Jefferson City.
Other Consent Notes
Mr. Kruse moved that items on the consent calendar be approved. Mr. Cole seconded the motion and it passed unanimously.
Presidential Advisory Committee
Chair Swan acknowledged Dr. Jim Scanlon for his service to the CBHE and the Presidential Advisory Committee (PAC) during his tenure as Chair of PAC. The new Chair, Dr. John McGuire of St. Charles Community College, opened the PAC meeting.
New Higher Education Funding Policies Update
Commissioner Stein introduced Ms. Brenda Albright, independent consultant and former deputy director of higher education in Tennessee, who will provide a national context regarding higher education funding.
Ms. Albright began by outlining major national trends affecting higher education funding: political expectations, demand for services, cost to students, and state budgets.
Governors and legislators have increasing expectations of higher education especially in regard to accountability, performance, and collaboration. Accountability includes meeting the development needs of the state, performance includes transfer and graduation rates, and collaboration includes strong working relationships with businesses and the community.
National enrollment projections show enrollments increasing by up to 20%, with many of these being first generation students. Politicians are expecting this increase to be handled through technology and efficiency of operations.
The cost to students for attending postsecondary institutions is increasing. There has been a major shift of who pays for higher education. Tuition has outpaced inflation by approximately 30 – 35%, and many families across the nation do not believe that higher education is within their financial reach.
States are also facing budgetary pressures including tax relief for citizens and demands on state resources, especially funding for health programs.
Kentucky is one state that is addressing educational needs with financing policies. An important component of Kentucky’s approach is identifying five overarching questions that are designed to guide the state in achieving its goals. Kentucky has made a major investment in higher education; the legislature has even issued bonds to support institutional endowments as they believe their investments will result in a better life for all of their citizens.
Ohio is also making progress in funding to meet educational needs. Ohio had funded institutions by credit hours and has now moved to a more holistic funding view. Institutions were enrolling increasing numbers of students as enrollments drove funding, but graduation rates did not meet expectations. Ohio’s higher education leadership signed an agreement to speak with one voice to the legislature and to support higher education proposals.
Ms. Albright stated that one of the most important characteristics of any higher education funding policy is that the policy has credibility with political leadership and with institutions. Credible policies are those that address the needs of the state, that are clear in purpose, take into account the mission of individual institutions, are fair and equitable, and are based on rational data and information.
Mr. Wagner updated the Board on the progress of the Higher Education Funding (HEF) task force. The task force is operating under a one-year timeline to complete a proposal for revised policies for the CBHE that may be used for the FY 2010 budget. The task force is interested in continuing to engage an external facilitator to make the best use of the time that remains.
Several issues received a general consensus. There is a need to recognize that at different times the task force will be faced with different audiences and that HEF must be able to communicate effectively with these audiences. To meet this requirement, HEF is developing a glossary of common terms in order to avoid misunderstandings.
Dr. Scanlon stated that the discussions thus far have been necessary and collegial, and he thanked Mr. Wagner and Ms. Imhoff for their efforts on behalf of HEF.
Dr. Albright shared some of her observations regarding Missouri’s current direction in higher education funding. This is the right time for Missouri to be addressing these issues, and the opportunity should not be allowed to pass by. She is impressed with the task force’s open communication and the empathy that members have shown to the challenges faced by other institutions. Dr. Albright encouraged the task force and higher education to speak with one voice, and stated that the first steps have been positive but that a year is not very long to complete this important work.
Dr. McGuire commended the task force for its work thus far and encouraged members to maintain focus during the significant challenges ahead.
Omnibus Bill Implementation
Ms. Zora AuBuchon briefed the board on steps the department is taking to implement the provisions of SB 389. The matrix in the board book identifies the provisions, timelines, MDHE unit assignments, and the current status of implementation. The matrix will be placed on the MDHE website and will be kept current as tasks are achieved.
Mr. Upchurch asked if the MDHE had adequate staff to carry out the provisions of the law. Ms. AuBuchon replied that MDHE staff will do what needs to be done to implement the provisions. Commissioner Stein stated that the fiscal note related to SB 389 had requested five additional FTE and additional funding. Though the FTE and funding were not approved this legislative session, the MDHE and the CBHE will continue to work with legislators and the Governor’s Office to address the needs of the department.
Dr. Scanlon asked what obligations institutions have regarding obligations such as placing consumer information on the website. Ms. AuBuchon stated that there are no deadlines for institutions until the department promulgates rules on applicable provisions.
Dr. McGuire stated that some institutions have policies that instructor evaluations or ratings are to be used solely for personnel and annual evaluations. Ms. AuBuchon stated that the law requires institutions to post faculty evaluations where feasible.
Commissioner Stein stated that this provision involves more than evaluations, and institutions should begin looking at ways to meet the requirements and make the information accessible to the public. In addition, the MDHE would appreciate any constructive suggestions regarding rules that may need to be promulgated for implementation of SB 389.
Final Summary of Legislation – 94th General Assembly
Ms. AuBuchon stated that only two key higher education related bills passed this session, one of which is SB 389. The second bill is HB 327, the Economic Development Omnibus Bill. Language in this bill provides for the creation of vocational school districts in southeast Missouri. Should the bill be signed, the MDHE will assist in the form and content of an assessment survey of the educational needs of the area and ensure the most efficient use of resources.
A separate bill was passed that requires all new electronic video instructional materials to be either open or closed captioning. Dr. Dobbins asked if videos produced for internal use would be required to comply with this provision. Ms. AuBuchon replied that she did not know the answer.
Commissioner Stein thanked Ms. AuBuchon for her work this session and stated that she would be re-evaluating the MDHE’s website postings of bills. The department welcomes any constructive sessions regarding bill tracking and organization.
Items for Discussion, Consideration, and Possible Vote
Annual Report of the MDHE Proprietary School Program
Mr. Wade provided the Board with background information on proprietary school categories, structure, and oversight functions as well as the current performance of the proprietary certification program. For FY 2006, the MDHE certified 170 main and branch campuses to operate within the state and processed more than 1,100 program additions and revisions. During 2005, more than 76,000 students attended a certified proprietary institution and were enrolled in 2,052 programs. The estimated financial contribution of proprietary schools in 2005 was nearly $300 million. Mr. Wade reminded the board the program is not fee-funded; fees from proprietary schools flow into the General Revenue fund. Recently fees accounted for approximately $135,000.
Mr. Wade acknowledged the Proprietary Certification program staff: Rita French, Dory Hamburg, and Jessica Ash-Schulte. Mr. Wade also acknowledged the contributions of the Missouri Association of Private Career Colleges and Schools.
Mr. Wade advised the Board regarding issues facing the proprietary unit.; First, the new Joint Committee on Education will examine the feasibility of allowing proprietary school students to become eligible for state financial assistance such as Access Missouri grants. In addition, effective July 1, 2008, out-of-state public institutions currently certified to operate will receive an exempt status. Those institutions will be transitioned into the program approval process used by in-state public institutions. Currently three institutions fall into this category.
The Proprietary Certification unit continues to urge schools to seek improvements in their overall performance regarding admissions and retention so that consumers have complete and accurate information with which to make enrollment decisions. Likewise, program staff continues to conduct reviews of new and revised programs to ensure quality standards are met and to avoid substandard or diploma mill degrees.
With the continued increase in the number of institutions seeking certification, recertification, or exemption, staffing of the program remains a concern.
Lender Inquiry Update
Mr. Wagner briefed the Board on the results of a survey developed in response to a request by Governor Blunt regarding lender relationships to institutions and financial aid offices. The results do not reveal any evidence of serious wrongdoing or patterns of unethical behavior that would necessitate detailed follow-up.
In addition to responses regarding preferred lender lists and conflicts of interest, the survey indicated several areas that would benefit from a best practices document. MDHE staff will work with institutions to compile statements of best practices in Missouri and the nation that will be shared with the Governor and with institutions.
Mr. Upchurch asked if there had been any consideration of sending a similar survey to major lenders. Mr. Wagner replied that the MDHE had followed the Governor’s request for information from institutions. The institutions that responded were appreciative of the tone and professionalism of the MDHE survey, which was designed in conjunction with staff in the Missouri Student Loan program.
Chair Swan expressed appreciation for the MDHE’s willingness to take on this additional responsibility.
FY 2008 Budget Update
Ms. Imhoff briefed the Board on the status of House bills related to higher education funding. House Bill 16 is the supplemental bill for FY 2007. This bill includes increases to the Gallagher and College Guarantee programs and was signed by the Governor on May 22, 2007. Capital projects, funded through the Lewis and Clark Discovery Initiative, were also included in this bill. However, as HB 16 funding expires at the end of the fiscal year, capital projects funds were also included in House Bill 17, which is a two-year re-appropriations bill. These funds would become available on July 1, 2007, and would not expire until June 30, 2009. This bill has not yet been signed by the Governor.
The higher education appropriations bill, HB 3, includes a cost of living raise for employees as well as increased funding to public institutions and to the GEAR UP program. This bill has not yet been signed by the Governor.
Dr. Brady Deaton asked the purpose of the funds for GEAR UP. Ms. Imhoff explained that although the GEAR UP program ends this year, those students who enrolled in the program will be attending postsecondary institutions in the fall and funds are needed for scholarships.
Dr. Doucette asked if any of the funding is in jeopardy as two of the bills have not been signed. Ms. Imhoff indicated that she was not aware of any concerns regarding the bills, but line item vetoes remain a possibility. Ms. Mary Beth Luna stated that the Governor is going through all budget bills over the next two weeks and decisions will be made before the July deadline.
MDHE Marketing Plan
Ms. Julie Meyer, Director of Marketing and Customer Assistance, briefed the board on the marketing plan for the MDHE. The department is launching a new logo and tagline that are to be incorporated into letterhead, promotional items, posters, and publications and were designed to be appropriate for use by all units within the department. Ms. Meyer explained that the models used for the publications covers are students at Missouri institutions. The images are owned by the MDHE.
Mr. Upchurch asked if the logo and tagline have been reviewed by a trademark attorney. Ms. Meyer responded that while the marketing staff performed a comprehensive search to ensure the logo and tagline were not infringing on another trademark, an attorney was not consulted.
Ms. Meyer advised that the new MDHE website is scheduled to go live on July 1, 2007, and provided CBHE and PAC members with a screen shot of the main web page. Dr. Julio Leon asked where information regarding items such as the core curriculum and college preparation would be housed. Ms. Meyer stated that the items available for viewing at this meeting do not offer a comprehensive view of the capabilities and arrangement of the web site.
Dr. Deaton and Dr. Alan Marble commended Ms. Meyer on her team’s work.
Report of the Commissioner
Commissioner Stein reminded the Board that he has been Commissioner for nearly six months and that he continues to promote the goals of access, affordability, and accountability. SB 389 will assist the department in moving those goals forward.
One goal for the Commissioner was stability in the department. During the past six months, the department has had 34 personnel items, including title changes, new hires, and personnel reorganization. The Commissioner commended MDHE staff for their hard work and expressed deep appreciation for their efforts.
Commissioner Stein reported that he had been appointed as co-chair of the Campus Security Task Force, and that the task force will submit its report to the Governor in August. Institutions should expect to receive an email encouraging campuses to continue to speak out and share information through July 2. By July 12th, a draft report of recommendations will begin the vetting process. The Commissioner discussed several issues being considered by task force subcommittees and advised presidents and chancellors to send comments and suggestions to Mr. Adam Hanna at the MDHE.
Upcoming meetings include the P-20 Council on June 26th, a CBHE retreat in August, a joint meeting with the State Board of Education on September 6, and a joint meeting with MOHELA on December 6 in conjunction with the December CBHE meeting.
Commissioner Stein reminded Presidents and Chancellors regarding opportunities at the MDHE for faculty fellows as well as student interns.
Commissioner Stein, Chair Swan, and MDHE staff members participated in a meeting in Cape Girardeau regarding the needs and opportunities of the area and how education institutions and the business community can work together to provide programs that meet those needs and take advantage of those opportunities.
Adjournment
Chair Swan stated that Mr. Stewart has a video on Bryan College that will be played during lunch and invited Presidents and Chancellors to view the video before departing.
Due to the lack of a quorum, Chair Swan recommended adjournment upon consent of the board members present. The meeting adjourned at 12:30pm.
Roster of Guests
Coordinating Board for Higher Education
June 14, 2007
Name - Affiliation
Brenda Albright - Professional Consultant
Jessica Ash-Schulte - Missouri Department of Higher Education
Zora AuBuchon - Missouri Department of Higher Education
Wendy Baker - Missouri Department of Higher Education
Constance Bowman - Harris-Stowe State University
Ann Brand - St. Louis Community Colleges
Carla Chance - St. Louis Community Colleges
Cliff Davis - Ozarks Technical Community College
Rita French - Missouri Department of Higher Education
John Ganio - St. Louis Community Colleges
Charles Gooden - Harris-Stowe State University
Constance Gulley - Harris-Stowe State University
Dory Hamburg - Missouri Department of Higher Education
Donna Imhoff - Missouri Department of Higher Education
Brian Long - COPHE
James Kellerman - MCCA
Michael McManis - Truman State University
Ann Pearce - University of Central Missouri
Marcia Pfeiffer - STLCC – Florissant Valley
Greg Sandbothe - Missouri Department of Higher Education
Bill Shoehigh - University of Phoenix
Dwayne Smith - Harris-Stowe State University
Rochelle Tilghman - Harris-Stowe State University
Laura Vedenhaupt - Missouri Department of Higher Education
Leroy Wade - Missouri Department of Higher Education
Paul Wagner - Missouri Department of Higher Education
