Coordingating Board for Higher Education Meeting Minutes 12-04

COORDINATING BOARD FOR HIGHER EDUCATION
Minutes of Meeting
December 2, 2004

The Coordinating Board for Higher Education met at 8:00 a.m. on Thursday, December 2, 2004, at the Holiday Inn Executive Center in Columbia, Missouri. Members present were:

Lowell C. Kruse, Chair
Dudley Grove, Secretary
Diana Bourisaw
Marie Carmichael
Sandra Kauffman
Kathryn Swan
Mary Joan Wood

Members absent were:

Robert Langdon
Earl Wilson, Jr.

Others attending the meeting included:

Trudy Baker, Administrative Assistant, Educational Policy, Planning, and Improvement Center
Becky Brennecke, Legislative Liaison
Sandra Crews, Senior Associate, Academic Affairs
Scott Giles, Director, Missouri Student Loan Group
Donna Imhoff, Budget Analyst
Janelle Jaegers, Director, Administration
Joe Martin, Deputy Commissioner
Jim Matchefts, Assistant Commissioner and General Counsel
Susanne Medley, Director, Communications and Customer Assistance
Brenda Miner, Executive Assistant to the Commissioner
Dan Peterson, Director, Financial Assistance and Outreach
Teala Sipes, Research Associate, Educational Policy, Planning, and Improvement Center
Robert Stein, Associate Commissioner, Academic Affairs
Laura Vedenhaupt, Administrative Assistant, Academic Affairs
Victoria "Y" Wacek, Research Associate, Academic Affairs
Leroy Wade, Director, Proprietary School Certification
John Wittstruck, Director, Educational Policy, Planning, and Improvement Center

Chair Kruse called the meeting to order.

Chair Kruse recognized Mrs. Sandra Kauffman for her leadership as chair of the Coordinating Board for Higher Education (CBHE) from 2002 to 2004. Mrs. Kauffman, a former school teacher, served on a local board of education from 1977 to 1986; served in the Missouri House of Representatives from 1986 to 1998; and held other leadership roles, including serving on the

Missouri Business and Education Partnership Commission. The higher education system became more focused and unified during her tenure as chair of the Coordinating Board for
Higher Education. She encouraged and supported the higher education community through the critical core budget reductions and contributed to the adoption of the Baldrige quality criteria by the CBHE in April 2003.

Chair Kruse welcomed Dr. Gregory G. Fitch, incoming commissioner of the Missouri Department of Higher Education, effective January 1, 2005. Dr. Fitch is currently president of the Utah College of Applied Technology.

Mrs. Swan moved that the minutes of the October 14, 2004 meeting be approved as printed. Mrs. Grove seconded the motion, and it passed unanimously.

Dr. Bourisaw moved that the minutes of the November 8, 2004 telephone conference meeting be approved as printed. Mrs. Grove seconded the motion, and it passed unanimously.

Report of the Commissioner

Mr. Joe Martin, deputy commissioner, provided a brief update on the interim period since November 15, 2004.

Mr. Martin noted that he had heard favorable responses on the Governor's Conference on Higher Education, including this year's expanded agenda, summit panelists, and break-out sessions. The events provided opportunities for discussions among legislators, the governor and governor-elect, the Department of Economic Development (DED), the Department of Elementary and Secondary Education (DESE), presidents and chancellors, and institution staff. Mr. Martin acknowledged the contributions of the institutions, specifically the Missouri Community College Association, who served as the fiscal agent, as well as the Department of Higher Education (MDHE) staff, who planned and carried out plans for the conference.

The MOHELA MDHE Cooperative Agreement between the Missouri Higher Education Loan Authority and the Missouri Department of Higher Education, designed to enhance and extend the partnership between the Department of Higher Education (DHE) and MOHELA, has been signed. The agreement provides for the following three main initiatives:

• A commitment by MOHELA to fund college scholarships for students in the GEAR UP Missouri program and other needy students;
• MOHELA's agreement to pay a guarantee fee on behalf of student borrowers who have loans with the Department of Higher Education as the guarantee agency and MOHELA, if the department is required to reinstate its guarantee fee; and
• The establishment of a non-profit foundation to award need-based scholarships and fund early outreach and awareness activities.

Mr. Martin provided a brief budget and legislative update. Mr. Martin stated that, within the next six months, the new administration will determine whether FY 2005 revenue projections are on track and whether or not adjustments or withholdings will be required for the remainder of this fiscal year. The CBHE has recommended a significant increase for FY 2006, recognizing institutions' needs in core funding, need-based financial aid, and also department needs. The adopted recommendations have been submitted to the governor and the General Assembly. The governor's recommendations will be issued in January. Although budget and state revenues are tight, the department will ensure that the General Assembly and the new administration are aware of higher education's needs, including issues of its fundamental budget structure and revenue process.

Mr. Martin provided an update on the development of higher education's need-based financial aid program, stating that following discussions with Dr. Fitch, department staff, representatives from the Council on Public Higher Education (COPHE), and the Missouri Community College Association (MCCA), the consensus is toward a two-tiered approach: 1) a short-term plan in which interested parties would join together to immediately consider possible alternatives to the current College Guarantee formula; and 2) a long-term plan.

Since the department has authority to internally adjust calculations of awards issued by the program, two solutions would not require statutory approval: 1) adjustment of the maximum award, and 2) adjustment of the cost of attendance. After data is collected, simulations will be performed using these adjustments to determine how the distribution of the funds in the program will be affected. With input from the department, results will be presented to interested parties for their agreement on how the funds should be redistributed and on incorporating these two mechanisms to deliver the funds in an agreeable manner that supports the direction higher education wants to go in terms of public policy.

The third solution requires statutory revision by removing the provision that requires the reduction of other need-based financial aid from the award. Other options may be possible as well. It is anticipated that data and discussions will be completed by end of January and presented to the CBHE at their February meeting.

The long-term plan includes the creation of a task force to study the long-term needs of the state's need-based financial aid programs, ensuring a simple and easy-to-administer program available to the neediest students, and that all interested parties have input and are involved in the decision-making process. Consideration should be given to whether consolidation of existing programs is an option or whether any new program should remain separate.

It is anticipated that results and recommendations of the taskforce would be available at the end of September and presented to the CBHE at their October meeting, providing time for drafting possible legislation for pre-filing on December 1, 2005. Membership to the taskforce, including the charge to the taskforce, could be presented to the CBHE for adoption at their February 2005 meeting.

The CBHE noted the importance of expanding the need-based financial aid proposal to encompass the total development of a good policy that supports the best interests of students, pertaining to all areas affecting their tuition and other costs in obtaining a higher education. The CBHE suggested that legislators, students, citizens of the state, high school counselors, representatives from the Missouri Counselors Association, and the president of the Missouri Chamber of Commerce should be represented on the taskforce. However, the taskforce must be manageable and function within timeframes.

Commissioner Candidate Review (Ratification of Conference Call Vote)

Dr. Jim Matchefts stated that during a teleconference meeting on November 8, 2004, the CBHE voted unanimously to accept and offer in a letter, signed by Chair Kruse on behalf of the Coordinating Board, the position of commissioner to Dr. Gregory G. Fitch.

Mrs. Swan moved that the Coordinating Board ratify its action of November 8, 2004, accepting the employment offer letter to Dr. Gregory G. Fitch and authorizing Chair Kruse to sign the letter and extend the offer on behalf of the Coordinating Board. Mrs. Grove seconded the motion, and it passed unanimously.

Mrs. Grove commended Chair Kruse, the Heartland Charitable Trust, Ms. Martha Davis, (consultant), Mrs. Carmichael, and Mrs. Swan for their leadership and commitment of time and energy throughout the search process and in achieving success. Chair Kruse noted that the grant from the Heartland Charitable Trust was intended to fund the commissioner search with the purpose of assuring, to the best of the board's ability, an exceptional leadership for the Department of Higher Education. As a result of the example established by Heartland Health, the Coordinating Board has decided that they will seek funding from foundations, corporations, and other entities that have special interests in advancing higher education to support and develop particular higher education projects in the future.

Proposed 2006 CBHE Meeting Dates and Locations

Ms. Brenda Miner presented the 2006 CBHE meeting dates and locations for approval by the Coordinating Board. Ms. Miner noted that after review of the evaluations from the 2004 Governor's Conference and discussions with the planning committee and Dr. Fitch, it may be necessary to change the date and format of the 2005 Governor's Conference, resulting in an additional recommendation to the Coordinating Board.

Ms. Miner expressed appreciation to the presidents and chancellors for hosting the CBHE meetings and providing an opportunity for the CBHE and department staff to meet on their campuses. The meeting coordinators at the institutions perform a tremendous service in arranging meeting rooms, providing meals, and managing a host of details.

Dr. Bourisaw moved that the Coordinating Board for Higher Education adopt the proposed 2006 meeting dates and locations. Mrs. Wood seconded the motion, and it passed unanimously.

Access and Affordability: Report to Lumina Foundation for Education

Dr. John Wittstruck presented the findings of the research study, Access and Affordability: Patterns of Financial Aid and Student Performance, conducted by the Educational Policy, Planning, and Improvement Center (EPPIC) and funded by Lumina Foundation for Education. The report of this study is located behind Tab B of the board book.

The study developed from conversations between Dr. Wittstruck, Dr. Debra Cheshier, and the vice-president of research at Lumina Foundation concerning MDHE's interest in 1) knowing how student financial aid affects student success and performance in higher education; and 2) knowing who the individuals are, who are applying for student financial aid, by preparing and completing the Free Application for Federal Student Aid or FASFA.

Knowledge obtained from this study includes:

• Student financial aid was distributed in at least 270 different combinations of institutional, state, and federal student financial aid among the categories of need, non-need, loan, and work at the six institutions that participated in the study (the four campuses of the University of Missouri, Missouri Western State College, and Southeast Missouri State University).
• This creates a situation whereby many low-income and first-generation students cannot know or determine which of the 270 combinations of financial aid they might qualify for.
• It is important that any need-based financial aid proposal simplify the administration and the application process for students seeking need-based financial aid.
• Institutional student financial aid is costly to institutions, and although they willingly provide it, it is not visible, predictable, or continuous.
• Over 80 percent of African American students had loan debts over $18,000, compared to an overall average of 60 percent of all students with an overall accumulated debt of $13,600. These averages do not include credit card debt, which is an increasing problem on campuses. Students from families earning less than $25,000 accumulate a debt of approximately $17,000. Middle-income students accumulate an average of $18,500 in debt.
• Gift aid increases the probability of a student graduating by 5 percent, eliminating a student's money worries and promoting concentration on studies.
• About one-half of the FASFA completers are first-generation college students relying on high school counselors for advice and guidance, and support services to help them complete the FASFA; making the department's GEAR UP and Early Awareness and Outreach programs more vital for these first-generation college students.
• Forty-five percent of FASFA applicants report family adjusted gross incomes of less than $35,000.

Dr. Wittstruck stated that several conditions may be contributing to the disproportion of student debt:

• The increasing cost of higher education requires students to borrow more money;
• Access to loan money is available at low rates; and
• Gift aid, while substantial, is not fulfilling all of the students' unmet needs.

Dr. Wittstruck believes that conversations about increasing state need-based financial aid are important and necessary. The current grant provides funding for dissemination of the information gathered from the study. Discussions have transpired with the institutional research community and presentations have been made to various organizations and groups throughout the state. Dr. Michael Podgursky, chair, Department of Economics at the University of Missouri -Columbia, Dr. Debra Cheshier, previous director of the Educational, Policy, Planning, and Improvement Center (EPPIC), and Mrs. Teala Sipes, research associate, (EPPIC), reported the findings at student financial aid workshops in Springfield, Kansas City, Columbia, and St. Louis. Conversations among MDHE staff and others about need-based student financial aid will be driven in part by the research findings in this study. In addition, the CBHE wants the information yielded from the study broadly communicated, especially to the legislature, adding to their knowledge and understanding of the situation.

Dr. Wittstruck stated that EPPIC received another grant from Lumina Foundation for Education extending through the next two years. Other institutions have been invited to join in this study. Community colleges are encouraged to participate, because they are the point of financial and local access to higher education in Missouri and could provide valuable information on how their students finance their education.

The CBHE is concerned about the high per person student loan debt reducing the buying power that supports a healthy economy for the state. The increasing poor population and the rising cost of tuition contribute to increasing loan debt, resulting in a drop in enrollment. Grant aid and tuition are two primary issues that the CBHE should have more control of in order to exert some impact on loan debt.

Dr. Fitch noted that the data collected in this study will provide tangible information, specifically related to the students, setting the parameters and chartering the direction of the MDHE staff. He was concerned whether the reluctance of the institutions to join the study was a result of time commitment or financial cost. Dr. Wittstruck noted that a limited dataset was selected for the initial study. It included an open enrollment institution, Missouri Western; a moderately selective institution, Southeast; and a selective institution, the University of Missouri System.

The institutions participating in the study represented nearly 48 percent of enrollment in the public four-year sector. Dr. Wittstruck and Dr. Podgursky believe the data can be utilized to provide projections and guidelines for determining the cost of need-based financial aid that is required to increase student participation in higher education.

Mrs. Carmichael commended the board of Missouri Southern State University-Joplin for recently voting to reduce tuition during this difficult time when many students cannot afford a higher education. In the past, other institutions that have reduced their tuition have experienced positive results with increased enrollment.

Chair Kruse stated that the Coordinating Board wants to focus on results and make recommendations around those results with long-term implementation. This will require the support of a citizenry with a much higher regard for higher education and a business community and legislature who will make higher education a priority. Long-term solutions will require a structure – a cultural change - which must be included in the long-term process. This complicated issue requires a simple solution that can be understood by all participating parties so they can work toward its achievement.

Mrs. Wood stated that student loan debt is only one of several debts families incur, including credit card debt, second mortgage debt, et cetera and therefore, fiscal responsibility needs to be included in the student financial aid program to control the situation.

Chair Kruse noted that need-based financial aid is a complicated issue involving poverty, accessibility to education, financial literacy, and availability of jobs. He was concerned that Lumina Foundation, in its quest to improve financial access, would continue to support the project over the long term with the restructuring of financing higher education in Missouri as it evolves in the future. He wanted to know how Lumina Foundation connected the data from the studies performed to the long-term, more complicated issue of obtaining financial access.

Dr. Wittstruck stated that the mission of Lumina Foundation for Education is to address issues surrounding financial access in educational retention and degree or certificate attainment, particularly among underserved student groups and adult learners, through research grants for innovative programs and communicative initiatives. Assembling this research database, built from the six different administrative record datasets, will help provide the analysis to inform discussions in the future.

The CBHE has always developed its policies based on fact, research, and information. The study has positioned staff to better inform the Coordinating Board on issues relating to financial access. A viable long-term research agenda, now being built, includes a joint effort with the Department of Elementary and Secondary Education and the Department of Economic Development that could be an investment that a foundation or corporation in Missouri would consider funding. Locating funding to support research and analysis to inform public policy is difficult, especially in fiscally-strained times.

Update on a Plan for Missouri's PreK-16 Activities and Efforts

This agenda item discusses Missouri PreK-20 partnerships, the potential role for a Coordinating Board for Early Childhood, and the importance of forming an intentional PreK-20 structure in Missouri.

Dr. Stein stated that PreK-20 agendas provide an opportunity for higher education and K-12 to serve as role models in types of collaboration and partnering discussed by governor-elect Matt Blunt at the Governor's conference. Dr. Stein shared data from several studies that emphasize the importance of Missouri PreK-20 work including the following:

• In some colleges, 75 percent of new students require remediation.
• Between 50 percent and 70 percent of students in remediation do not graduate.
• In 2018, the number of Missouri high school graduates will be similar to 2001.

The higher education system is failing these students in some way and it needs to improve.

Dr. Stein also provided information about PreK students.

• There are 370,000 children in Missouri under the age of five.
• Eighteen percent of children under the age of five live in poverty; 64 percent live with working parents.

Presently, early childhood workforce must complete only 12 annual clock hours of training. There is a movement in Missouri to upgrade early childhood professional training.

A study supported by a federal grant was the precursor to establishing a more coordinated, statewide effort for PreK, because the state's activities and responsibilities in this arena are so dispersed. Legislation passed last year called for the formation of a Coordinating Board for Early Childhood as an arm of the Children's Services Commission. Some of the responsibilities assigned in statute to the Coordinating Board for Early Childhood include:

• Develop a comprehensive, statewide, long-range strategic plan.
• Confer with public and private entities for the purpose of promoting and improving the development of children birth through five years of age.
• Identify legislative recommendations.
• Coordinate existing services and programs.
• Use research-based approaches to services and ongoing programs.
• Identify gaps.
• Establish a fund for the collection of public and private funds to support the work of the board.

Representatives from Health and Senior Services, Mental Health, Social Services, and Elementary and Secondary Education were named in legislation to be members of the Coordinating Board for Early Childhood. The Department of Higher Education and the Coordination Board for Higher Education were not identified for membership. Dr. Stein shared that he attended the last meeting of the Children's Services Commission, and indicated that higher education is interested in becoming involved and contributing to statewide discussions and initiatives targeting Missouri's young children.

Although the Coordinating Board for Higher Education has no authority over the PreK agenda for this state, the Coordinating Board can exert positive support and influence. The CBHE does have a direct role in oversight of the training of early childhood teachers, which includes approved guidelines for educational and career pathways in regard to transfer and articulation. Higher education also provides professional development for the early childcare workforce.

Chair Kruse learned through conversations with business community leaders and with Mrs. Swan, a member of the Missouri Chamber of Commerce Board, that several policymakers tend to prefer the Parents as Teachers model, because of its affordability and the natural atmosphere of parents and family raising the child as opposed to more formal childcare settings.

Mrs. Swan noted that the universal preschool is popular in some states, including New Jersey, because it offers long-term benefits in terms of reduced crime, increased employment, increased economic impact, and it offers preschool children the opportunity to receive the pre-literacy hours that are necessary for school success when their working parents cannot provide enough of this valuable time.

Chair Kruse serves on the Family Community Trust Board and stated that the board is comprised of eight state department directors and nine citizens who oversee the distribution of funds from each of the departments to about 21 communities, representing most of the major population areas in the state in terms of local funding for Pre-K activities. Bill Dent serves as staff for the group.

The ultimate goal of higher education is to have a seamless system of education from PreK through adulthood, recognizing the involvement of the business community as crucial to relay this information and support the initiative. Higher education will come closer to its goal when the business community realizes they can become a part of such a system, that it is affordable, and that the investment in early childhood can eliminate the problems of remediation, lack of articulation, lack of continuity, achievement gaps, et cetera that higher education has inherited.

While the higher education community is concerned about helping the neediest students of this state finance their education, it needs to be equally concerned that Missouri's neediest students are given a positive PreK environment in which to develop their potential. Coordinating Board members indicated that they welcome guidance from the Commissioner of Higher Education and his staff on realistic PreK issues in which the board can become involved and assume a contributing role. Dr. Stein noted that he is working on a project that will identify the various responsibilities and funding streams that are associated with and support early childhood initiatives in Missouri.

Discussion then focused on the advantages of designing an intentional structure for future PreK-20 work in Missouri.

Originally, Missouri's interest in PreK-20 activities emphasized the lack of a connection between the 12th grade level and higher education's expectations for students. Also emphasized was the importance to provide support to entering students so they are likely to persist through to graduation. Dr. Stein stated that Moberly Area Community College has a small grant to foster a statewide discussion about remediation activities occurring on two-year campuses. A primary challenge is to develop a customized approach to meet the needs of individual students. To serve all learners, students with special needs must also be included.

Whether working on remedial education initiatives or other PreK-20 activities, it is essential to have an intentional structure to assure continuity, consistency and ownership for a statewide approach. Intentional structures can be established through legislation, an executive order, or simply by a collaborative commitment of the State Board of Education, the Coordinating Board for Higher Education, and, if formed, the Coordinating Board for Early Childhood. The decision requires collaborative work and an agreed-upon approach for a prioritized and focused agenda. In addition, indicators of success should also be identified.

Mrs. Carmichael moved that the CBHE direct the commissioner to work with the State Board of Education and the new Coordinating Board for Early Childhood, upon membership appointment by the governor, to identify and implement the most important recommendations from previous studies and reports using an agreed-upon structure to coordinate efforts across these state agencies. Mrs. Swan seconded the motion, and it passed unanimously.

Information Items

The following information items were discussed.

Distribution of Community College Funds

Mr. Joe Martin stated that nearly $21.3 million was distributed to the community colleges during the last two months for state aid, maintenance and repair, and capital appropriations. In June, the community colleges proposed redistribution and reallocation of their funding mechanism. In January 2005, the payments will be re-calculated and reallocated pursuant to the formula that was adopted by the community colleges and by the Coordinating Board for Higher Education. The payments will reflect an annual amount that will be changed for the remaining six months of this fiscal year. Mr. Martin thanked Donna Imhoff, Patty Knaebel, Janelle Jeagers, and the fiscal staff for their efforts in distributing $130 million annually to the community colleges on a timely basis.

Financial Statements Audit of the MDHE Student Loan Program

Dr. Jim Matchefts noted that the audit firm of BKD, LLP was contracted to perform a financial statements audit of the MDHE Student Loan Program for FY 2003 and FY 2004. Some preliminary work has been done off-site, but it is expected that BKD will come on-site in January. After the State Auditor's office indicated they would not conduct this particular portion of the statewide single audit, staff proceeded through the state procurement process to hire BKD.

Dr. Matchefts presented this agenda item because it is a contract issue, and noted that department staff who regularly interact with the State Auditor's office will interact with BKD. The audit is paid for through the student loan operating fund.

Chair Kruse was concerned that, although the Coordinating Board does not appoint legal counsel or appoint auditors, it was fulfilling its fiduciary responsibility. Dr. Matchefts stated that it was the board's obligation to review the final reports, pursue any irregularities noted in the reports, and correct those issues. He did believe that although the CBHE was not directly involved in selecting the audit team, the CBHE was performing its fiduciary duties.

With respect to the loan program, the State Auditor's office performs an audit to determine whether the MDHE is complying with federal laws and regulations governing the loan program, examining certain aspects of the entire departmental operation, aside from the financial statements portion. The State Auditor's office continues to perform an audit of MDHE's federal funds as required by federal law. MDHE is being conservative and complying further than what is required by state law by retaining BKD to perform the services that the state auditor has dropped due to budget cuts and staffing limitations.

Chair Kruse suggested that having the auditors come before the Coordinating Board to present their findings might be a consideration in the future in respect to the Board's fiduciary responsibility on financial matters.

Results from the 2003 – 2004 Postsecondary Technical Education (RTEC) Survey

Dr. Wittstruck stated that the Coordinating Board adopted a state plan for postsecondary technical education in 1996, which indicated that an annual report would be prepared for the board and others in the state. The report describes the progress being made toward achieving a skilled workforce through this funding mechanism, how these programs contribute to the needs in this state for a skilled workforce, and provides an accountability of the funds expended.

The courses are high-cost and low-volume and it is often difficult to recruit students with enough math and science backgrounds for these technical education programs. Last year, 27,000 students, an increase of 300 over the previous year, participated in these technical education programs. The business and industry communities emphasize the necessity for more skilled workers in certain fields, such as nursing and health care. Last year, $84 million was spent supporting these programs, equipment, and faculty, with about $20 million of it funded from state appropriations.

Because these programs are local and regional, there are 773 duplicated programs in the community college sector, 160 of which are distinctively different. In the certificate, associate and apprenticeship programs, 4,300 students, an increase of 10 percent over the previous year, were graduated. There were 776 students who received specialized industry-based certification, an increase from 744 the previous year.

Dr. Wittstruck stated that, while it is not part of the State Plan for Postsecondary Technical Education, the two-year institutions are involved in three other programs, which are funded by the state: 1) the New Jobs Program provides industries the opportunity to bond or borrow money to increase workforce training. The bond is retired by not paying state income tax on those individuals who join the workforce; 2) state and federally funded customized training trained 12,014 individuals; and 3) contract training provided training to employees of 50 additional companies than in the previous year.

In answering the board's concern of whether or not higher education is meeting the needs of the state and the citizens of the state, Dr. Wittstruck stated that the needs are not being met, primarily due to the changing nature of how business and industry is conducted, and the skill levels and requirements needed to produce their products and services. For example, operation of certain machines and the robotics involved in the production of many products requires high-level math education and skilled training.

Mrs. Grove wanted to know the role of higher education beyond reporting the information, if colleges, universities, and high schools were aware of this need, and which entities were involved. Dr. Wittstruck stated that workforce development is identified in MDHE's strategic initiatives. Postsecondary technical education is an area of higher education that is extremely important to increasing participation with the completion of these types of certification programs. The Department of Higher Education is working with the Missouri Economic Research and Information Center in the Department of Economic Development (MERIC) in developing a combined dataset to allow for regional needs assessments. It is important to know the particular needs of each region.

The department is working with a group of citizens in Cape Girardeau who are concerned about providing access to education and training to support industry and business in their community. Reports will be issued in January for each region, which can greatly support new program approval, program review, determine if the appropriate programs are in the various regions, and if they are producing graduates with the degrees and certifications that are needed in the different regions of the state. Dr. Wittstruck stated that it is important for the DHE to maintain its support of the community colleges as they continue establishing partnerships with the businesses in their service areas, as well as with the public schools and other school districts.

Measuring Value-Added Student Learning Status and Next Steps

Dr. Stein stated that this is the pilot year for Missouri's experiment with measuring value-added student learning. A total of 23 institutions administered the Collegiate Learning Assessment (CLA) to entering students during the fall 2004 semester.

The number of fall students tested by institution ranged from 126 to as low as four. The target was approximately 100 students at larger institutions and 75 to 100 (no less than 50 students) at smaller institutions. As a result of briefings with the institutions, it has been learned that the on-line aspect of testing went reasonably well, but there were minor problems in terms of the connection with the hotline and with accidental logouts, which were quickly rectified. Overall, students and faculty reported that the tasks were engaging and interesting.

Several challenges have been identified, including student recruitment and motivation. Nationwide testing has shown that students have not been serious about low-stakes tests and are often not motivated. Generally, this is rectified with a reward structure, but Dr. Stein believes it is a larger issue, symbolic of a youth culture that looks to extrinsic awards rather than intrinsic rewards. This problem may eventually produce a society of new workers who want weekly bonuses or high rewards to serve as incentives to do their best work. Missouri's pilot project presents opportunities for genuine learning about motivation issues. Is there a way to change student culture so that students will be motivated to learn from the experience, so that participating in assessment is intrinsically valued? Frustration felt on some campuses is due to the perception that the results are not completely clear on what the benefits are for the students. The Council for Aid to Education (CAE) is aware of this problem and is working to change their administration and the design of the psychometrics of this test to become more useful on an individual student level.

The two-year sector expressed concerns that associate of applied science students do not have as full a complement in general education as the associate of arts students, although they are taking the same assessments. There may be reasons they perform differently.

The major concern and the largest challenge expressed by institutions is the mistrust or fear that the data will be used in a punitive way.

MDHE staff has submitted a concept paper, located in the board book behind Information Item Four, to the Kauffman Foundation in partnership with RAND's (CAE) and the Missouri Consortium on Value-Added Student Learning seeking $120,000. The concept paper outlines short-term and long-term benefits for the state and for the nation. Dr. Stein stated that the concept paper is presently under review and that calls from presidents and chancellors who have linkages with Kauffman would be appreciated. Dr. Stein acknowledged staff members Sandra Crews, senior associate, academic affairs, and Laura Vedenhaupt, administrative assistant, academic affairs, for their commitment to this project.

Update on the Committee on Transfer and Articulation

Dr. Stein stated that the Council on Public Higher Education (COPHE) and the Missouri Community College Association (MCCA) Steering Committee are discussing transfer and articulation in a different venue than the Committee on Transfer and Articulation (COTA). Steven Lehmkuhle, vice president for academic affairs, University of Missouri System, reported to COTA that the COPHE/MCCA steering committee would not circumvent COTA's work.

With a turnover in the legislature and with a new commissioner, higher education is at a crucial time to re-examine COTA and how it operates, what it is, and what is its charge. The current COTA engaged in an informal brainstorming session concerning their past work and future agendas. Initial items identified included the credibility of the COTA group, ownership of the transfer/articulation problems, and the enforcement of consequences that would come into play should there be abusers of the policies that have been adopted. Dr. Stein noted that many good things are happening with transfer and articulation and that these should not go unnoticed. Better use can be made of the data to inform the public about transfer and articulation in the state. It has been suggested that the state might want to develop a set of criteria to identify transfer-friendly institutions, which might serve as a “Good Housekeeping Seal” with higher education's involvement.

In regard to the progress and growth of dual credit, Dr. Stein stated that a study has not been performed since 1998, when headcount grew markedly. A separate study was performed on dual credit involving high school students receiving collegiate-level credit from courses offered in high school by high school faculty. Approximately 60 percent of high schools offer Advance Placement and dual credit courses.

The Coordinating Board supports the work of the Committee on Transfer and Articulation and believes it has as great an impact on affordability as do MDHE's loans. Dr. Stein noted that presidents and chancellors are on record wanting to develop a joint statement providing their support for transfer and articulation.

It was further noted that Pell dollars are being used to pay for the same coursework twice due to a lack of transfers. To gain more Pell dollars, it will be necessary to look into this, which could be integrated into the board's work on financial aid.

Proprietary School Actions

Dr. Stein stated that this information item involves standard appointments. He noted that 1) the John Thomas College case is pending with the Administrative Hearing Commission and that Dr. Matchefts is the department's legal representative for communication on that case; and 2) there is increased interest by out-of-state schools in wanting a physical presence in the state of Missouri to form collaborations and partnerships with the higher education institutions of Missouri. Dr. Stein stated that while it is good to encourage them to come, the department wants to make sure that Missouri's higher education institutions are working together collaboratively and not missing opportunities to work with each other. Dr. Stein acknowledged Mr. Leroy Wade, director of the Proprietary School Certification Program for his good work.

Appointments to the CBHE Proprietary School Advisory Committee

Dr. Stein stated this information item involves standard appointments. The committee was established with staggered membership terms providing a constant turnover for filling normal vacancies. The Proprietary School Advisory Committee provides input into the processes and practices of the Proprietary School Certification unit, pilots projects in conjunction with the Proprietary School Certification staff, and provides feedback on the operational functions of the Proprietary School Certification unit.

Academic Program Actions

Dr. Stein stated that this information item involves standard actions. He noted that the University of Missouri-Kansas City has requested that the deletion for the GRCT Diagnostic Sciences and Options program be removed from this item. The institution intends to submit a title change for this program.

Other Items

Dr. Gregory G. Fitch thanked the board, staff, and all those present for their hospitality, and their support and interest in higher education. The Governor's Conference was a culmination of excellent teamwork by staff. He stated that moving forward to better serve the citizens of this state will involve utilizing materials, data, and the commitments of all participants. Because higher education has an obligation to Missouri's citizens, the board will reaffirm its position and its credibility in this effort.

There being no further business to come before the board, Dr. Bourisaw moved to adjourn the meeting. Mrs. Grove seconded the motion, and it passed unanimously.

The meeting adjourned at 10:25 a.m.