Coordinating Board for Higher Education Meeting Minutes 10-12-06
COORDINATING BOARD FOR HIGHER EDUCATION
MINUTES OF MEETING
October 12, 2006
The Coordinating Board for Higher Education (CBHE) and Presidential Advisory Committee (PAC) met at 9:00 a.m. on Thursday, October 12, 2006 at St. Charles Community College.
Members present were:
Kathryn Swan, Chair
David Cole
Lowell C. Kruse
Jeanne Patterson
Duane Schreimann
Anthony Thompson
Gregory Upchurch
Presidents present were:
Henry Givens, Jr., Harris-Stowe State University
Carolyn Mahoney, Lincoln University
Julio León, Missouri Southern State University
James Scanlon, Missouri Western State University
Dean Hubbard, Northwest Missouri State University
Ken Dobbins, Southeast Missouri State University
Michael Nietzel, Missouri State University
Barbara Dixon, Truman State University
Aaron Podolefsky, University of Central Missouri
Elson Floyd, University of Missouri System
Thomas George, University of Missouri-St. Louis
Don Doucette, Missouri Community College Association
Steven Kurtz, Mineral Area College
John McGuire, St. Charles Community College
Marsha Drennon, State Fair Community College
John Cooper, Three Rivers Community College
Don Claycomb, Linn State Technical College
CBHE Chair Kathryn Swan 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.
Introduction and Greetings
Chair Swan welcomed everyone to the meeting and expressed appreciation on behalf of the board to St. Charles Community College for hosting the CBHE and PAC meetings.
St. Charles Community College President John McGuire welcomed the CBHE, MDHE staff, representatives of Missouri's colleges and universities and other guests to St. Charles Community College .
Committee Reports
Audit Committee
Mr. Duane Schreimann, chair of the audit committee, said that the committee has received three audits that need to be reviewed by the committee. Mr. Schreimann noted that he will be working with MDHE staff member Dr. Jim Matchefts to schedule an audit committee meeting to discuss the audits. The committee will have a report at the December CBHE meeting.
Student Loan/Financial Aid Committee
Chair Swan noted that the student loan/financial aid committee report will be covered during a subsequent agenda item on the work of the State Student Financial Aid Committee.
Strategic Planning Committee
Ms. Jeanne Patterson, chair of the strategic planning committee, said that during a later portion of the board meeting, CBHE members and presidents and chancellors will have an opportunity to engage in a visioning exercise, that is, what is an idealized future state for higher education in Missouri .
Commissioner Search Committee
Mr. Gregory Upchurch, chair of the commissioner search committee, provided an update on the commissioner search process. The committee has utilized the criteria for the previous commissioner search to solicit nominations and résumés of potential commissioner candidates. The committee, working with the executive search consultant hired by the board, is in the process of screening résumés, with interviews to be held soon. Mr. Upchurch noted that the committee's goal is to have a new commissioner in place by January 2007.
Presidential Advisory Committee
Presidential Advisory Committee (PAC) Chair James Scanlon provided an overview of the items on the agenda for discussion among PAC members. He introduced Ms. Debra Hollingsworth, Chair of the Mathematics, Engineering, Technology and Science (METS) Alliance and Ms. Mary Beth Luna from the Governor's office, who provided a presentation on the report of the Mathematics, Engineering, Technology and Science (METS) Alliance.
Mathematics, Engineering, Technology and Science (METS) Alliance Presentation
After presenting highlights from the report and recommendations made by the governor's METS Alliance, Ms. Hollingsworth and Ms. Luna engaged the CBHE and presidents and chancellors in a conversation about the importance of this initiative. The full report of the METS Alliance is included with these minutes as Attachment B. Presidents and chancellors expressed support for the work of the Alliance and a commitment of higher education institutions to be advocates for METS initiative.
Higher Education Strategic Planning
PAC Chair Scanlon thanked presidents and chancellors for their input during the strategic planning visioning exercise. The intention of the exercise was to open the discussion to envisioning opportunities for the system of higher education to impact the condition of Missouri and its citizens in the next five to ten years.
This morning's discussion provided the basis for creation of a comprehensive strategic plan that will take place with the assistance of a working group of institution representatives from each sector over the next few months. It is critical to the success of the strategic plan that the presidents remain engaged and take ownership in the development of the plan that will ultimately result in moving higher education in Missouri forward.
Approval of Minutes
Chair Swan clarified a typographical error that occurred within the minutes of the September 26, 2006 open meeting.
Mr. Schreimann moved that, with the announced correction to the September 26 open meeting minutes that the minutes of the CBHE meetings held between June 14, 2006 and September 26, 2006 be approved as printed. Mr. Lowell Kruse seconded the motion and it passed unanimously.
Proposed CBHE Bylaw Revision
Dr. Jim Matchefts, Assistant Commissioner and General Counsel, stated that at the June 2006 board meeting, the CBHE chair instructed staff to suggest revisions to Article V, Sections 2 and 3 of the CBHE Bylaws that would clarify logistical issues associated with the timing of committee assignments made by the CBHE board chair.
The proposed amendment was discussed at the CBHE retreat on August 10, 2006 as required by Article XI of the bylaws.
Mr. Schreimann moved that the Coordinating Board for Higher Education adopt the amendments to the CBHE Bylaws Article V, Sections 2 and 3 as printed. These amended bylaws shall immediately replace the existing bylaws and shall continue to serve as the fundamental set of guidelines for the conduct of business by officers and members of the Coordinating Board for Higher Education. It is further recommended that the chair direct MDHE staff to copy and distribute the amended bylaws to each board member, as well as to make additional copies available to other interested parties. Mr. Kruse seconded the motion and it passed unanimously.
State Student Financial Aid Committee Update
Mr. Leroy Wade, MDHE Liaison to the State Student Financial Aid Committee began his presentation by acknowledging the dedicated work of the state student financial aid committee having committed a tremendous amount of time that has resulted in the committee reaching consensus on the proposal that is now before the CBHE for consideration.
The primary benefits of this proposal are that it is easy to understand, award eligibility is portable across all eligible institutions, and eligibility for an award is predictable. The federally calculated expected family contribution (EFC) used as the basis of the proposed program is well-known by students, families and financial aid administrators as most students must complete a Free Application for Federal Student Assistance (FAFSA). The proposal establishes a relatively simple and understandable method for aid distribution because both eligibility and award levels are calculated based directly on EFC, without the need for additional complicated calculations or adjustments. Students and their families can be reasonably confident of their eligibility, once they have completed the FAFSA, owing to the establishment of a uniform cutoff of eligibility across all educational sectors. Finally, award eligibility is portable across institutions and sectors, even though award amounts vary depending on the student's EFC and the sector attended.
Funding for the new program would be provided by combining the current appropriations available through the Charles Gallagher Grant and the Missouri College Guarantee programs, replacing these programs with a single need-based student financial aid program. An important issue identified early in the committee's work was, that while the Charles Gallagher Grant program has been a successful program, the award amount has not increased in more than 20 years. In addition, the dual programs create tension across educational sectors. If a single program could be created that has the broad support of all sectors, the program is more likely to be successful. Funds from the two existing need-based programs, approximately $25 million, would be combined with the recommended funding increase of an additional $25 million to produce a projected funding total of $50 million. Although the proposed program would be flexible enough to reflect changing fiscal realities, it will become difficult to achieve accessibility goals if a sustained investment is not made.
One of the primary pieces of the proposal includes an adjustment for Pell eligibility. Maximum award amounts are intended to reflect a relatively constant proportion of the average tuition in each eligible sector of education. These maximum awards are then reduced at lower need levels by a percent of the student's EFC and at the higher need levels by a percent of the federal Pell grant received by the student. This "tapered" approach allows the program to provide aid to students with the highest levels of need (in order to increase those students' access to the state's higher education system) while providing aid to students of moderate income levels (in order to maintain a desirable level of choice across institutions and educational sectors).
Dr. Ken Dobbins, President, Southeast Missouri State University asked the board to consider requesting that an emergency clause be included as part of legislation filed in order to allow MDHE and institutions to distribute any new money allocated for the program in FY 2008 to students in the fall 2007. Consideration should also be given to preparing for an accelerated implementation phase of the new program to allow for timely distribution of funds to students in fall 2007. Dr. Dobbins suggested that the institutions would be willing to support the MDHE with resources and staff necessary to ensure a smooth transition phase.
Mr. Wade reiterated the need for an effective transition to the new program, with adequate communication to students and families and financial aid administrators. Changes made to the administration and delivery of a new, need-based financial aid program will require significant programming changes at MDHE.
Dr. Elson Floyd, President, University of Missouri offered assistance with respect to technical requirements necessary to address programming challenges faced by the MDHE.
Dr. Matchefts noted that MDHE's IT staff, which is now under the direction of the Office of Administration (OA), and will need to be brought into the discussion. Some decisions about IT resource allocation will need to be discussed with OA prior to undertaking such a project.
Dr. Robert Stein, Acting Deputy Commissioner, expressed appreciation for the offers of assistance and the support demonstrated by the presidents and chancellors relating to this issue. He expressed the department's commitment to fully exploring options available that would ensure a smooth transition and implementation of any changes to the current structure of the state need-based student financial assistance programs.
Dr. Don Doucette, President, Missouri Community College Association (MCCA) Presidents/Chancellors Council expressed support on behalf of the community college presidents for the committee's proposal and commended the work of the committee. Additionally, the community colleges would also support any reconsideration of the proposed provision relating to a student's Pell eligibility.
The proposal to establish a new single state-funded need-based student financial assistance program to replace the two existing primary need-based financial aid programs (Charles Gallagher Student Financial Assistance Program and the Missouri College Guarantee Program) is a bold and challenging step. It is not, however, a new idea as other studies of Missouri 's financial aid system have recommended such a consolidation.
Mr. Wade also reviewed the committee's proposed changes to the operation of existing financial assistance programs. Amendments to the related administrative rules are necessary for the proposed changes to become official. The committee is recommending amending the definition of a part-time student in the Marguerite Ross Barnett Memorial Scholarship Program to specifically define a half-time and three-quarter time student. The second proposed change would require a 2.5 grade point average to be eligible as a renewal student for all state student financial assistance programs.
The recommended changes to the administrative requirements for several existing programs address a critical need, intended to make progress in streamlining and simplifying the financial aid process. While one of the changes impacts a program that would be replaced by the proposed new need based program, proceeding with the change now will ensure a level of consistency in those programs, regardless of the enactment of the legislation establishing the new program.
Mr. Wade read the following recommended action, "It is recommended that the board adopt the attached proposed framework for the establishment of a single need-based student financial aid program and that the leadership of the Coordinating Board and the Missouri Department of Higher Education work with educational leaders, government policy makers, and the CBHE State Student Financial Aid Committee to coordinate 2007 legislation with the understanding that additional revisions may be necessary to address unresolved issues associated with adjustments for Pell recipients.
It is also recommended that the board approve the attached amendments to its administrative rules and direct the Commissioner of Higher Education to initiate the rule revision process through the Office of the Secretary of State as soon as possible."
During discussion of the recommended action, Ms. Jeanne Patterson moved to strike "Commissioner of Higher Education" from the motion and insert, "Acting Deputy Commissioner of Higher Education" in its place. Mr. Schreimann seconded the motion to amend the action and it passed unanimously.
Also during discussion of the recommended action, Mr. Schreimann moved for the following amendment to be added to the recommended action, "It is further recommended that, following due investigation, related 2007 legislation, if appropriate, contain an emergency clause." Mr. Upchurch seconded the motion to amend the action and it passed unanimously.
The board unanimously approved the adoption of the amended recommended action.
Department of Higher Education FY 2008 Budget Overview
Ms. Donna Imhoff, Assistant Commissioner for Fiscal Affairs and Operations, provided an overview of the FY 2008 budget priorities for both the Department of Higher Education (DHE) and the state student financial assistance programs.
The DHE has experienced decreases of approximately 64 percent in general revenue funding since FY 2001. The department has also experienced FTE losses from 34.95 FTE in FY 2001 to 12.57 FTE in FY 2007. Therefore, in FY 2008 the department is requesting five additional staff to more adequately meet its statutory obligations and policy mandates, as those obligations and duties continue to increase despite the reduction in resources.
The DHE is also requesting additional funds of $37,500 for contract services that would support special projects for the department in a cost-effective manner.
The final priority contained in the department's FY 2008 request is to reduce the department's reliance on loan (federal) funds to pay FTE salaries. MDHE is requesting approximately $233,759 annually in general revenue funds for this purpose. In total, the department is requesting an additional $526,024 in new general revenue funding.
The department will also ask for additional funding for need-based financial aid. Currently, two of the state-administered scholarships for need-based aid, the Missouri College Guarantee program and the Charles Gallagher Student Assistance program serves a limited number of eligible applicants. Because of the large number of unfunded students in both of these programs, an additional $9 million is being requested for the Missouri College Guarantee program and $18 million is being sought for the Charles Gallagher Student Assistance program.
A request is also being made for an increase to merit-based aid. The Academic Scholarship program (Bright Flight), will need an additional $372,000 in FY 2007 and 2008 in order to maintain full funding of the program to help meet the increase in eligible students.
Recommendations for Adjustments to Public Institutions Operating Appropriations
Ms. Imhoff acknowledged the discussions that have taken place in recent days regarding an alternate funding approach in FY 2008 for the public institutions of higher education. Based on unified support among presidents and chancellors of the state's public institutions, the board will consider moving forward with a new funding distribution model that has recently emerged and which is significantly lower in the aggregate than the original budget recommendation included in previously distributed board materials.
Chair Swan expressed the board's appreciation for the collaborative efforts among and the unanimity that has resulted with respect to this funding mechanism. Chair Swan offered presidents, chancellors, and the CBHE an opportunity to comment on the board's revised recommendation as they have not had an opportunity to see the revision prior to the meeting.
Dr. Barbara Dixon, President, Council on Public Higher Education (COPHE) expressed support on behalf of the public four-year presidents and chancellors for the recommended action.
Dr. Doucette, President, MCCA Presidents/Chancellors Council expressed appreciation for the efforts of the CBHE and MDHE and is pleased to join in supporting the effort to work together to speak with a collective voice to benefit the state system of higher education. The community colleges will meet to discuss the FY 2008 funding request in order to resolve outstanding concerns expressed by the community college sector. Pending the outcome of the meeting, the CBHE may need to meet to adjust the FY 2008 budget recommendation.
Dr. Don Claycomb, President, Linn State Technical College expressed support for the recommendation.
Mr. Schreimann noted that performance funding remains a priority of the board and a focus of conversations with the governor's office. He emphasized that the design and implementation of a performance-based funding mechanism that results in greater accountability and transparency of higher education institutions will continue to be a focus and priority of the board during upcoming budget cycles.
Mr. Upchurch stated that tuition restraint continues to be part an integral piece of this conversation as well. He acknowledged that an effective tuition restraint policy must be dealt with at the institution level or at the legislative level; however, CBHE members remain committed to maintaining and improving higher education affordability and access. Agreement on the funding model is a first step. Mr. Upchurch encouraged everyone to continue to work together in this same spirit to address the tuition restraint piece.
Mr. Lowell Kruse moved that the that the Coordinating Board for Higher Education acknowledge the extensive cooperative work of public college and university presidents and chancellors with legislative leaders in formulating an agreed upon distribution model for the FY 2008 budget recommendation for public colleges and universities.
Mr. Kruse further moved that the CBHE approve a FY 2008 appropriation request for additional funding totaling $109,724,612 . It is important to note that there remains an unresolved issue raised by community colleges concerning the total amount of their portion of this funding model. Community colleges have agreed to work with legislative leaders to resolve this issue and will present an addendum for CBHE consideration.
This approval is predicated upon the presidents and chancellors working with MDHE and CBHE to design, develop, and implement funding guidelines for both short- and long-term needs for higher education. CBHE strongly encourages the presidents and chancellors to consider the following factors when designing a new set of funding guidelines including, but not limited to, performance funding, FTE sensitivity, periodic equity adjustments, maintenance and repair needs, institutional missions, relationship between state support and tuition policies, capital needs and other related factors.
Additionally, the presidents and chancellors should work with the leadership of the MDHE in the coming months to propose a performance funding model that includes measurable performance funding indicators for each institution associated with institutional missions. Indicators linked to METS should be given strong consideration. A status report should be provided to the CBHE by its February 2007 meeting.
Finally, members of the CBHE and leadership of the MDHE should work with the governor's office and with members of the General Assembly to reach an agreement on both a short- and long-term approach for meeting higher education's needs. Ms. Patterson seconded the motion and it passed unanimously.
Recommendations for Public Four-year Institutions Operating Appropriations
Ms. Imhoff noted that the public four-year institutions operating appropriations request of $829,318,166 has been revised to reflect the adjusted funding recommendation approved by the board in the previous item.
Mr. Upchurch moved that the Board approve the FY 2008 four-year institutions appropriation request including University of Missouri Related Programs , as presented, for submission to the Governor and General Assembly. Mr. Schreimann seconded the motion and it passed unanimously.
Recommendations for Linn State Technical College Operating Appropriations
Ms. Imhoff noted that the recommendation of $5,510,528 for FY 2008 has been adjusted to reflect the funding recommendation approved by the board in Tab E.
Mr. Schreimann moved that the Board approve the FY 2008 Linn State Technical College appropriation request, as presented, for submission to the Governor and General Assembly. Mr. Kruse seconded the motion and it passed unanimously.
Recommendations for Public Community Colleges Operating Appropriations
Ms. Imhoff noted that the recommendation of $152,111,759 for FY 2008 has been adjusted to reflect the funding recommendation approved by the board in Tab E. This request also addresses the appropriations line item roll up that the department and the community colleges have requested take place in the house bill over the last several years, so that the appropriations item appears as a single line item-one for general revenue funding and one for lottery proceeds.
Mr. Cole moved that the Board approve the FY 2008 community college appropriation request, as presented, for submission to the Governor and the General Assembly. Mr. Schreimann seconded the motion and it passed unanimously.
Recommendations for MDHE Operating Appropriations
Ms. Imhoff highlighted key points relating to the FY 2008 MDHE request for operating appropriations. Specifically, the request includes an increase of five additional FTE in Coordination; the appropriation request also includes proprietary school administration and grant and scholarship administration within the department. The administration request including the increase is $1,314,728.
Ms. Imhoff also noted that the federal GEAR UP grant administration request includes an increase in program distribution as additional scholarships awarded will be increased because the student cohort moving through the program will graduate from high school in spring 2007 and being attending college in fall 2007. The request is $1,397,572.
Ms. Imhoff summarized the administration request for the MDHE student loan program. The student loan revolving fund portion of the guarantee agency operating fund needs to increase as there will not be enough spending authority in FY 2007 to be able to purchase defaulted loans and pay accrued interest. A supplemental request will take place in FY 2007 for $40 million and a new decision item for FY 2008 will be for $40 million will put the total request at $125 million.
Mr. Upchurch moved that the Board approve the CBHE FY 2008 internal appropriation request, as presented, for submission to the Governor and General Assembly. Mr. Kruse seconded the motion and it passed unanimously.
Recommendations for State Student Financial Assistance Programs
Ms. Imhoff noted the revision to the recommended action for the FY 2008 funding request for the state student financial assistance programs. The recommended action was revised to reflect additional proposals that could evolve in the coming weeks that could potentially address funding needs for the state's need-based student financial programs.
Mr. Kruse moved that the Board approve the CBHE FY 2008 Student Financial Assistance appropriation request, as presented, for submission to the Governor and General Assembly.
Additionally, the CBHE recognizes that additional funding proposals may evolve for increased need-based aid to more fully address the affordability and access needs of the state. Mr. Schreimann seconded the motion and it passed unanimously.
Recommendations for Public Four-Year Institutions' and Linn State Technical College's Capital Improvements
Chair Swan took an opportunity to publicly remind the members of the board that community colleges submitted a FY 2008 request for capital improvement funding. Further, it is her belief that the issues surrounding community college capital are complex and thus require further attention. To that end, the leadership of the board and the MDHE are committed to working with community college presidents during the coming months in the development of a clear board policy on community college capital.
Chair Swan asked Ms. Becky Brennecke, legislative liaison, to proceed with the presentation regarding the FY 2008 recommendations for the public four-year institutions' and Linn State Technical College 's capital improvements request.
Ms. Brennecke stated that there are 14 capital project recommendations for the four-year institutions and Linn State Technical College included in the attachment behind Tab K. This listing was assembled based on the requests of each institution and prioritized utilizing the board policy guidelines, which include consideration for mission and construction type with a priority for renovation over new construction and other elements.
The FY 2008 total recommendation is $400,617,748. Many of these projects have been on the list since FY 2001, when funding was appropriated, but withheld, and as a result are now in dire need of funding.
Most of the projects have a local match portion. In total, institutions have pledged over $144 million dollars for these projects. When applicable, the OA guideline requiring a 20 percent local match for new construction projects or the portion of a project that adds new square footage was implemented in this recommendation.
Ms. Brennecke noted the portion of the agenda item that speaks directly to the Lewis and Clark Initiative capital list. On September 25, 2006, the CBHE issued a statement recognizing the importance of the Lewis and Clark Discovery Initiative. While there are many similarities among the two lists, it is recognized that the Lewis and Clark Discovery Initiative List was developed from an economic development viewpoint, and therefore accounts for some of the differences. Although differences do exist, it is important to recognize that both have the common goal of providing benefits to Missouri 's higher education system.
Mr. David Cole moved that the Board approve the FY 2008 capital improvement recommendations for the public four-year institutions and Linn State Technical College for submission to the Governor and General Assembly. Mr. Schreimann seconded the motion. The motion passed with Mr. Anthony Thompson abstaining from the vote.
Dr. Doucette acknowledged the statement Chair Swan made and expressed his hope that during the coming months there will be a process developed by the CBHE and MDHE in an effort to recognize capital requests for community colleges. The community colleges look forward to the opportunity to share with the CBHE the compelling reasons for submitting capital requests on behalf of the community colleges.
Consent Calendar
Items 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 form the consent calendar by any member of the board, if further discussion is necessary. Chair Swan asked if there were any questions or comments with regard to the items contained on the consent calendar; there were none.
Report of the Commissioner
Acting Deputy Commissioner Stein noted the official name change of Central Missouri State University to the University of Central Missouri. The Board of Governors approved the name change on September 20, 2006.
Acting Deputy Commissioner Stein announced that the trustees of institutions with schools of education, along with trustees of community colleges will be receiving an invitation for an upcoming conference, ?Teacher Quality: How Trustees Can Help.? This mid-states conference will be on November 14, 2006 in Kansas City . He asked presidents and chancellors to encourage their trustees to consider attending this conference, which is being co-sponsored by the MDHE.
Adjournment
There being no further business to come before the board, Mr. Kruse moved for adjournment, Mr. Schreimann seconded the motion and it passed unanimously. The Coordinating Board for Higher Education meeting adjourned at 12:35 p.m.
Respectfully submitted,
Brenda Miner
Executive Assistant to the Commissioner
Attachment A
Roster of Guests
Coordinating Board for Higher Education
October 12, 2006
Name - Affiliation
Jessica Ash-Schulte - Department of Higher Education
Constance Bowman - Harris-Stowe State University
Becky Brennecke - Department of Higher Education
Carla Chance - St. Louis Community College
Jeanie C. Crain - Missouri Western State University
Cliff Davis - Ozarks Technical Community College
Kenneth Dean - University of Missouri-Columbia
Bill Gamble - ICUM
John Ganio - St. Louis Community College
Charles Gooden - Harris-Stowe State University
Debra Hollingsworth - METS Alliance
Donna Imhoff - Department of Higher Education
Paul Kincaid - Missouri State University
Steve Knorr - University of Missouri
Jeff Lashley - Mineral Area College
Stephen Lehmkuhle - University of Missouri
Brian Long - Council on Public Higher Education
Mary Beth Luna - Office of the Governor
Jim Matchefts - Department of Higher Education
Michael McManis - Truman State University
Brenda Miner - Department of Higher Education
Greg Myles - Department of Higher Education
Marty Oetting - University of Missouri
Ann Pearce - Central Missouri State University
Dave Rector - Truman State University
Greg Sandbothe - Department of Higher Education
Vicki Schwinke - Linn State Technical College
William Shoehigh - University of Phoenix
Dwyane Smith - Harris-Stowe State University
Robert Stein - Department of Higher Education
Beth Tankersley-Bankhead - University of Missouri
Leroy Wade - Department of Higher Education
Paul Wagner - Missouri Senate
Beth Wheeler - Missouri Western State University
Rose Windmiller - Washington University
Paula Wolken - Department of Higher Education
Phil Wright - University of Central Missouri
