Coordinating Board for Higher Education Meeting Minutes 03-00

The Coordinating Board for Higher Education met at 11 a.m. on Wednesday, March 29, 2000 at the CBHE office in Jefferson City. Members present were:

Ray Henry, Chairman
Lynn Ewing, Jr. Vice Chairman
John Bass, Secretary
Sandra Kauffman
Jim Summers, Jr.

Dudley Grove participated by phone. Absent were Marie Carmichael, Mary Findley, and Mary Joan Wood.

Also attending were:

Kala M. Stroup, Commissioner of Higher Education
John Wittstruck, Deputy Commissioner
Jim Matchefts, General Counsel
Cheryl Kesel, Public Information Officer
Joy Casada, Secretary to the Board

The Board addressed its response to public concerns regarding the Board's role in monitoring public institutions' personnel contracts. The Board noted that some of the practices recently subjected to public criticisms are disturbing in light of the December release of the citizen-based report of the Missouri Commission on the Affordability of Higher Education, "Toward an Affordable Future." Questions raised in the meeting centered around these areas:

• What are the powers of the college/university governing boards according to state statute?
• What is the Coordinating Board's authority regarding institutional personnel contracts and financial transactions?
• What statutory authority do the Attorney General and State Auditor have in such matters?
• What does the Board need to do today in regard to these issues?

The Board discussed the authority of institutional governing boards over internal affairs such as personnel contracts and financial transactions. The Board noted that Missouri law authorizes the governing boards to appoint and remove all university employees and to establish compensation levels for all employees. This authority is consistent with Missouri's decentralized system of public higher education and recognizes the autonomy of the individual institutions.

The Board discussed its own authority with respect to overseeing public higher education and, in particular, its role in submitting institutional budget recommendations to the Governor and the General Assembly. The Board recognized that its role in the budgetary process does not authorize it to review or monitor institutional personnel decisions or individual financial transactions. The Board's authority is directed to coordination of higher education, while responsibility for institutional governance remains with the governing boards. The Board noted that on several occasions this has been affirmed both in the House and the Senate.The Board noted that both the Attorney General and the State Auditor currently are investigating Dr. Elliott's contract, and that the State Auditor is also investigating certain personnel contracts at other public institutions. The Board acknowledged that these investigations are within the constitutional and statutory authority of the Attorney General and the State Auditor. The Board expressed its support for these investigations and is committed to reviewing the reports.

Individual Board members stated that they shared many of the concerns recently raised in public and the possibility that these contractual arrangements may establish some precedent for future contracts. However, the Board decided to wait for the official reports from the Attorney General and State Auditor to see what recommendations they might contain before making any further decisions regarding the contracts under investigation. The Board also agreed that it will consider in the future requesting that governing boards fully disclose the terms and conditions of all presidential contracts and submit copies of such contracts to the Board's office.

The Board voted unanimously to ask the legislature to reconsider its budget request for funds for trustee development training. The Board agreed that trustee development and education would be effective in assuring that trustees understand their accountability for public funds.