Coordinating Board for Higher Education Meeting Minutes 10-98

October 8, 1998

The Coordinating Board for Higher Education met at 10:45 a.m. on Thursday, October 8, 1998 at the University of Missouri-Rolla. Members present:

Ray Henry, Chairman
Connie Campbell, Vice Chairman
John Bass, Secretary
Marie Carmichael
Bryan Cook
Lynn M. Ewing, Jr.
Mary Findley
Jim Summers, Jr.
Mary Joan Wood

Also attending were:

Kala M. Stroup, Commissioner
Eldon Wallace, Associate Commissioner for Fiscal Affairs
John Wittstruck, Associate Commissioner for Policy Analysis and Data Services
Terry Barnes, Assistant Commissioner for Community Colleges and Technical Education
Robert Stein, Assistant Commissioner for Academic Affairs
Joy Casada, Secretary to the Board
Cheryl Kesel, Public Information Specialist
Shelly Lamb, Administrative Assistant to the Commissioner
Tracy McDaniels, Administrative Intern
Karen Misjak, Director of Missouri Student Assistance Resource Services
Dan Peterson, Deputy Director of Missouri Student Assistance Resource Services
Vera Stanojevic, Senior Associate for Academic Affairs
Dale Swoboda, Research Associate for Fiscal Affairs
Leroy Wade, Director for Proprietary School Certification
Paul Wagner, Research Associate for Fiscal Affairs

There being a quorum present, Chairman Henry called the meeting to order. A list of guests attending the meeting is attached. (Attachment A)

Expression of Appreciation

Chairman Ray Henry expressed his and the board's appreciation to Chancellor John Park and his staff for their hospitality and for hosting the meeting.

Minutes of the June CBHE Meeting

Mrs. Carmichael moved that the minutes be approved as submitted. Mr. Bass seconded the motion, and it was unanimously passed.

Report of the Commissioner

Commissioner Stroup also expressed her thanks to Chancellor Park and his staff for their excellent work in hosting the CBHE meetings. She called the board's attention to her activity report included in the board book. Dr. Stroup reported that the staff has been busy meeting with institutional representatives, analyzing the financial information, and preparing the FY 2000 budget.

Report of the CBHE Presidential Advisory Committee

Chancellor Wayne Giles reported that the CBHE Presidential Advisory Committee met earlier in the day. The committee heard presentations on both the operating and capital appropriations recommendations for FY 2000. Both the two- and four-year institutions endorsed the operating budget. The four-year institutions endorsed the capital improvements budget. Dr. Giles stated that the community colleges had some concern regarding the method of distributing maintenance and repair funds to community colleges. Half the funds authorized by statute would be allocated by formula and half distributed by the board on a project proposal basis. The community colleges expressed the need for their additional involvement in the procedures for allocating funds dedicated to individual proposals. Dr. Marianne Inman, representing the independent colleges, expressed disappointment in the level of funding for the Charles Gallagher Student Assistance Program.

The advisory committee also heard reports on the proposed Missouri Commission on the Affordability of Higher Education and the Advantage Missouri Program. Dr. Wittstruck presented a brief report on the September 21 Presidents' Conference on Telecommunications. Dr. Ed Elliott will present a more detailed report at a later date.

The advisory committee also announced their 1999-2000 officers. They are:

Dr. Marianne Inman, Central Methodist College, Chair
Dr. Manuel Pacheco, University of Missouri, Vice Chair
Dr. Vivian Blevins, St. Louis Community College, Secretary

Establishment of Date for Trustees' Workshop

Dr. Campbell reported that, building on phase one of the board's trusteeship development plans, and in order that new trustees will have some knowledge and expertise as board members, a new trustee workshop will be held in June 1999. The possibility of advanced training and leadership development for trustees is being explored.

Report of the Presidents' Conference on Telecommunications

Dr. Wittstruck stated that Dr. Ed Elliott, President of Central Missouri State University, who cosponsored the conference, was unable to attend today's meeting and will make a full report at the CBHE December meeting. Dr. Wittstruck noted that the discussions at the conference were very lively and informative. A number of recommendations that need to be pursued as follow-up to the board's actions on a telecommunications-based delivery system were made.

Dr. Campbell moved that the Coordinating Board for Higher Education appoint, in consultation with the Commissioner of Higher Education and the CBHE Presidential Advisory Committee, a standing advisory committee to advise and make recommendations to the board in order to advance the higher education agenda in the use of technology in the acceleration of learning and in the use of advanced technology in providing greater access to higher education opportunities in Missouri. Dr. Cook seconded the motion, and it was unanimously passed.

FY 2000 (Year Four) Postsecondary Technical Education Plans, Budget Requests, and Recommended Distribution

Commissioner Stroup pointed out that this item is the distribution of technical education funds, which is a component of the budget that the board will act on later in the meeting. Dr. Barnes commented that the request would provide for the fourth year of a planned five-year cycle of funding for the State Plan for Postsecondary Technical Education. He presented information on the status of results and accomplishments to date which provide programmatic and geographic access to postsecondary technical education. Dr. Barnes stated that postsecondary technical education and related general education instruction is being delivered in at least 60 communities including the main campuses of community colleges.

Commissioner Stroup pointed out that it was the hope of the board when the State Plan for Postsecondary Technical Education was initiated in FY 1997 that some technical programs at selected community colleges would be identified as centers of excellence. This FY 2000 budget request identified funds for technical programs at Metropolitan Community Colleges to become centers of excellence. The budget request includes an additional $1 million to enhance Metropolitan's electronics training programs from industrial electricity to advanced electronics engineering technology, including potentially offering a component in microcomputer chip manufacturing. Metropolitan is also developing new programs in telecommunications and network systems engineering technology.

Mrs. Carmichael moved that the Coordinating Board for Higher Education commend the community colleges and other institutions associated with each Regional Technical Education Countil (RTEC) for their efforts in prioritizing programmatic initiatives related to the implementation of the State Plan for Postsecondary Technical Education for FY 1997 (Year One), FY 1998 (Year Two), and FY 1999 (Year Three). Mrs. Carmichael further recommended that the CBHE approve the budget recommendation and proposed distribution of funds for FY 2000 (Year Four) as shown on the attached table. (See Attachment B). She also recommended that the Coordinating Board for Higher Education direct the commissioner of higher education to request from each college president/chancellor representing a Regional Technical Education Council (RTEC) proposal, a refinement of the proposed FY 2000 programmatic initiatives to be submitted in June 1999.

Mr. Bass seconded the motion, and it was unanimously passed.

These recommendations are not a substitute for the board's policies on the review and approval of new academic programs contained in the postsecondary technical education proposals. Academic programs not approved must complete this process and receive the commissioner's approval before being implemented.

Progress Report on the Implementation of the Linn State Technical College Five-year Master Plan

Dr. Barnes reported that this item contains Linn State Technical College's third quarterly progress report for 1998 on its five-year master plan. Highlights of the report are that Linn State Technical College has:

• Formalized a shared governance model and implementation process within the statutory authority of the Board of Regents;
• Developed a policy that requires all one- and two-year certificate programs to include a general education component;
• Continued to monitor the progress of faculty members employed with less than a baccalaureate degree. As of the beginning of the fall semester, 1998, of a total of 72 full-time instructors, only 19 lack a bachelor's degree, 33 possess a bachelor degree, and 20 are master degreed;
• Sent a letter to the CBHE informing the board that as of June 30, 1999 the administrative office management program, including the executive and medical options, and the accounting program will be discontinued;
• Employed Ms. Cheryl Probst as instructor of the new networking systems technology program, and enrolled 20 full-time students for the initial fall 1998 semester;
• Enrolled nine full-time students in the Integrated Manufacturing Technology program operated at Mexico;
• Continued to monitor the construction progress of the Mexico Advanced Technology Center;
• Continued to explore the feasibility of constructing college-owned residence halls for LSTC students; and
• Provided the 1998 fall semester enrollment report for each program offered.

Chairman Henry inquired if the institution had everything they need from the CBHE in regard to clarification of its mission.

Programmatic Initiatives Related to Institutional Mission Review and Enhancement for FY 2000

Commissioner Stroup presented an overview of the board's mission review and enhancement activities. The commissioner's presentation indicated where the various institutions are in their mission review cycle, each institution's admission and degree category, each institution's mission, the mission enhancements/investments, mission review criteria, and a mission enhancement funding summary.

Harris Stowe State College (Cycle Two, Year Two)

Dr. Wittstruck reported that the mission of Harris-Stowe State College is that of a moderately selective baccalaureate degree granting institution offering degree programs in selected applied professional fields to meet the needs for higher education in the city of St. Louis. Harris-Stowe has proposed a FY 2000 mission enhancement plan that is consistent with the board's objectives and includes the following initiatives:

• hiring new faculty for special education degree program options in both elementary and secondary education and in accounting and management information systems;
• implementing a baccalaureate two-plus-two program in hospitality management with St. Louis Community College;
• strengthening the college's liberal arts core curriculum by hiring additional faculty to teach mathematics, English, and physical science and to develop a new applied professional interdisciplinary studies degree program;
• strengthening the academic infrastructure of the college by the addition of a media services technology assistant and a local area network (LAN) manager for academic computing;
• improving the academic preparation of the college's entering freshman class and the academic success of continuing students by hiring a dual admissions officer and academic advisor; and
• improving the college's competitiveness for new faculty by raising the average salary the college is currently able to offer prospective new faculty and staff.

Mr. Bass moved that the Coordinating Board for Higher Education approve the Harris-Stowe State College FY 2000 mission enhancement activities to enhance the college's agreed upon mission. Dr. Cook seconded the motion, and it was unanimously passed.

Truman State University (Cycle Two, Year Two)

Dr. Wittstruck commented that in 1985, the Missouri General Assembly passed legislation, which designated Northeast Missouri State University, now, Truman State University, as a statewide public institution of liberal arts and sciences. The university submitted a five-year plan describing how it would proceed to implement its new statutory mission to the Coordinating Board in 1987. Truman State has proposed a FY 2000 mission enhancement plan that is consistent with the board's objectives and includes the following initiatives:

• adding new faculty to teach in the university's liberal studies and residential college programs;
• establishing additional sections for the university's extended freshman transition course which introduces new students to the Truman Experience;
• expanding the visiting distinguished scholars program to include the opportunity for 25 students to participate as Distinguished Undergraduate Scholars;
• adding professional academic advisors to integrate further the university's residential college curriculum with the academic curriculum;
• continuing to compete with other nationally recognized public and private liberal arts colleges and universities for outstanding faculty who demand competitive salaries;
• expanding and enhancing the university's unique library collections and strengthening the institution's instructional technology infrastructure needed to enhance and maintain a nationally recognized liberal arts and sciences teaching and learning culture; and
• improving the university's natural science instructional facility through the renovation and expansion of Science Hall.

Dr. Campbell moved that the Coordinating Board for Higher Education approve Truman State University's FY 2000 mission enhancement activities to enhance the university's agreed upon mission. Mrs. Carmichael seconded the motion, and it was unanimously passed.

Lincoln University (Year Two)

Lincoln University's mission is to be a master's level institution with open enrollment admissions serving mid-Missouri and focusing on access to learning success. Dr. Wittstruck pointed out that in initial conversations with Lincoln in determining its mission some of the challenges were the need to strengthen its academic infrastructure, strengthen its academic and student support services, and enhance its 1890 land-grant function. Lincoln University has proposed a FY 2000 mission enhancement plan that is consistent with the board's objectives and includes the following initiatives:

• establish a College for General Studies to provide general student academic support and house four units of the university: (1) Center for Academic Enrichment; (2) Center for Academic Advisement and Student Outcome Assessment; (3) Center for General and Interdisciplinary Study; and (4) The Center for Teaching and Learning;
• centralize general student support services (financial aid, admissions, registration, and retention) in an Enrollment Management Center;
• enhance distance learning/continuing education to provide courses, seminars, workshops, programs, and conferences for businesses, state and local government agencies, and nontraditional students from mid-Missouri and in rural areas as part of its 1890 land-grant mission, including those participating in activities offered by the member institutions of the Southeast Educational Consortium;
• expand current research and establish new Cooperative Research initiatives to improve the social, economic, and physical well-being of minorities, low income, and small farm families in the Bootheel; and
• enhance Cooperative Extension activities to increase the college-going rate among Missouri's minority high school students through new urban youth development projects in Kansas City and St. Louis and expand the university's Summer Academy to include 45 more students, the majority of whom reside in the Bootheel.

Mr. Bass moved that the Coordinating Board for Higher Education approve Lincoln University's FY 2000 mission enhancement activities to enhance the university's agreed upon mission. Mrs. Findley seconded the motion, and it was unanimously passed.

University of Missouri (Year Two)
University of Missouri Central Administration
University of Missouri-Columbia
University of Missouri-Kansas City
University of Missouri-Rolla
University of Missouri-St. Louis
University Outreach and Extension

Dr. Wittstruck noted that the University of Missouri's mission enhancement plan consists of four themes. They are:

• Meeting future needs of the state in research and graduate education;
• Strengthening the linkages among teaching, research, and service;
• Strengthening research and programs in life sciences; and
• Focusing on leadership development in undergraduate and graduate professional programs.

There are three areas that generally describe mission enhancements for the campuses. The various campuses do, however, approach these areas in different ways. The three areas are: to promote partnerships; enhance the quality of teaching and learning; and to expand and strengthen accessibility to nationally recognized graduate and professional programs. The focused discipline areas that are identified in the mission enhancement plans include life sciences at UMC, urban and public affairs at UMSL, engineering technology at UMR, and life and health sciences at UMKC. The University of Missouri has proposed a FY 2000 mission enhancement plan that is consistent with the board's objectives and its Blueprint for Higher Education and includes the following initiatives:

System-wide Initiatives

• expanding access to, and doubling the enrollment in, the statewide cooperative Ed.D. in educational leadership program by the participating public master's degree-granting universities delivering the program at designated Telecommunication Community Resource Centers (TCRC's) and other sites;
• research related to improving and maintaining the quality of Missouri water; and
• Advancing the university's telecommunications and research support network.

University Outreach and Extension

• expanding the university's ability to bring the instructional, research, and service resources of the university's faculty to bear on community-based needs identified through statewide needs assessment and supported by the university's outreach development fund; and
• expand the university's network of Telecommunication Community Resource Centers (TCRC).

University of Missouri-Columbia

• providing additional support for graduate student stipends and continuing to reduce reliance on graduate teaching assistants for undergraduate instruction;
• increasing the involvement of undergraduates in research projects with senior faculty;
• strengthening learning experiences for high quality students through expanded activities offered by the Honor College, residential learning communities, leadership development training, and extracurricular activities;
• increasing research on food and fiber systems that lead to increased crop and food production;
• applying new research to improved nutrition, rural health, and patient care;
• establishing a competitive initiative among the faculty to strengthen and enhance the university's disciplinary and interdisciplinary research and graduate education programs in selected areas consistent with the university's approved mission and which have the potential to improve the national and international reputation and stature of the university in identified fields;
• expanding applied research efforts that address needs in agriculture, natural resources, business, and media; and
• implementing national and international academic and research partnerships through technology and improved communications that advance the intellectual stature and further promote national and international recognition for the university and the state of Missouri in the effort to secure the university's position as a world leader in applying information technology to research and graduate-level study.

University of Missouri-Kansas City

• improving the quality and number of competitive research proposals submitted and awarded in areas related to its focused mission initiative; health sciences, visual and performing arts, and urban affairs;
• recruiting and retaining top- quality graduate students;
• enhancing the campus library collections, technology, and staffing consistent with a graduate degree granting and research university;
• strengthening graduate education and research with an urban focus in the biological and health sciences, law, business and public administration, and social work; and
• increasing the national ranking of the master's of fine arts degree and achieving national eminence for the Conservatory of Music.

University of Missouri-Rolla

• providing learning opportunities for students to improve in areas related to communication, teamwork, and research; and
• strengthening degree programs and research in infrastructure engineering, manufacturing engineering, materials engineering, environmental engineering, geotechnical engineering and science and instructional technology.

University of Missouri-St. Louis

• enhancing financial support for graduate students, the Pierre Laclede Honors College, and for low income students to study aboard;
• strengthening programs in health (nursing and optometry), science (biotechnology and psychology), and technology (computer science, management information systems and communication). The Mercantile Library will be enhanced to support the development of a Center for Transportation Studies and the Sue Shear Institute for Women in Public Life will be funded;
• enhancing the CBHE approved master's of social work program; and
• continuing the partnership with St. Louis Community College and developing new partnerships with East Central, St. Charles, Jefferson, and Mineral Area community colleges in offering articulated courses and baccalaureate degree completion programs for the associate degree programs offered by these institutions.

Mr. Bass expressed his concern with media reports that UMC is reducing its scholarships for minority students. Dr. Brady Deaton, UMC provost, responded that this action was one of several decisions made which affect all of the university's financial aid programs. These actions do not affect continuing students or their award amounts but will impact new students in fall 1999. The reductions were not targeted to only scholarships for minority students. They were reduced at the same margin as other student financial aid programs. There followed a lengthy discussion on this matter.

Commissioner Stroup stated that one of the board's goals for the University of Missouri system is to have more nationally recognized graduate programs. Some board members have requested more specific identification of academic programs targeted for investment.

Mrs. Carmichael moved that the Coordinating Board for Higher Education approve the University of Missouri's FY 2000 mission enhancement activities to enhance the university's agreed upon mission. Mrs. Findley seconded the motion, and it was unanimously passed.

Central Missouri State University (Year Three)

Dr. Wittstruck stated that Central Missouri State University is the state's professional applied science and technology university. Central's multi-year mission enhancement proposal included initiatives that would; strengthen the university's academic technology infrastructure, enhance existing and provide for the development of new baccalaureate and master's degree programs in advanced fields of professional applied science and technology, strengthen the state's corps of area vocational technical school and community college technical education instructors, and enhance the university's technology for distance education and its public television station. Central Missouri State University has proposed a FY 2000 mission enhancement plan that is consistent with the board's objectives and includes the following initiatives:

• revise, enhance, and expand the delivery of existing baccalaureate and master's degree programs in professional applied science and technology; including working toward accreditation for the new programs implemented with FY 1999 mission enhancement funding;
• develop curriculum and learning materials for the electronic delivery of courses and programs via the Internet, instructional television, and CD ROM;
• continue to address the professional development and in-service training needs of the state's area vocational and community college technical education faculty;
• equip the Center for Academic Technology to meet the continuing education and technology-based course delivery needs of faculty and students;
• equip and maintain electronic teaching facilities in outreach centers for business and industry;
• increase the broadcast capabilities and service area of CMSU's public television and radio stations; and
• partner with State Fair Community College in providing access to selected baccalaureate-level courses to residents residing in the Lake of the Ozarks region of the state.

Mrs. Wood moved that the Coordinating Board for Higher Education approve the Central Missouri State University FY 2000 mission enhancement activities to enhance the university's agreed upon mission. Mr. Bass seconded the motion, and it was unanimously passed.

Northwest Missouri State University (Year Three)

Dr. Wittstruck conveyed that the greatest challenge to Northwest is to provide an enhanced role in ensuring access to higher education throughout the northwest region of Missouri. Much of the mission enhancement plan for Northwest and the funding that is being requested is targeted to helping the institution be more responsive to the needs of northwest Missouri and to enter into partnerships and collaboration with other Missouri institutions to help meet the needs of people in northwest Missouri. Northwest Missouri State University has proposed a FY 2000 mission enhancement plan that is consistent with the board's objectives and includes the following initiatives:

• adding three new faculty positions to increase the capacity of the Center for the Application of Information Technology to Learning that will enable the center to develop 40 to 50 new modular course projects per year;
• offering a statewide conference on information technology and learning;
• fully implementing the trimester calendar with a 15 week session in summer 2000;
• beginning implementation of the Academy of Mathematics, Science, and Computers for high school juniors and seniors;
• preparing a proposal for the National Baldrige Award for Quality Management and entertaining a Baldrige Quality Award Examiners site visit team; and
• adding a coordinator for electronic curricula and digital library resources to the Northwest Consortia staff who will, among other things, work to bring through the consortium, the University of Missouri's master's of social work and master's of library science to northwest Missouri.

Commission Stroup commented that the board has expressed its wishes to see a detailed report on Northwest's modular course projects before the board considers the university's mission enhancement plan for FY 2001.

Dr. Campbell moved that the Coordinating Board for Higher Education approve Northwest Missouri State University's FY 2000 mission enhancement activities to enhance the university's agreed upon mission. Mrs. Carmichael seconded the motion, and it was unanimously passed.

Southeast Missouri State University (Year Three)

Dr. Wittstruck reported that Southeast's mission review indicated that the greatest challenge to Southeast is in serving the region and responding to the educational needs of clientele in southeast Missouri. Southeast Missouri is an area of the state that has a modest number of institutions so Southeast Missouri State University has an extremely important role through programs that it delivers in partnership with other institutions. Southeast Missouri State University has proposed a FY 2000 mission enhancement plan that is consistent with the board's objectives and includes the following initiatives:

• enriched experiential learning opportunities for students in every academic program;
• new advanced manufacturing technology-related programs including a new baccalaureate engineering technology program;
• expanded evening and weekend programs;
• increase and expand support for the Sikeston Area Higher Education Center;
• additional courses, program, and services offered in partnership with the members of the Southeast Educational Consortium; and
• new recruitment and retention programs designed to further diversity the student body; particularly students studying in fields of mathematics and the sciences.

Mrs. Findley moved that the Coordinating Board for Higher Education approve Southeast Missouri State University's FY 2000 mission enhancement activities to enhance the university's agreed upon mission. Mr. Bass seconded the motion, and it was unanimously passed.

Determination of Appropriation Levels for Off-campus and Out-of-district Sites

Dr. Barnes noted that in the late 1980s and early 1990s the board had only one avenue for promoting geographic and financial access to higher education, which was House Bill 1456. Now the CBHE has several statutory vehicles and funding strategies at its disposal in terms of how the board advances the goals for increased access to higher education incorporated in the Blueprint for Higher Education. These sources consists of the four-year colleges and universities mission enhancements, the State Plan for Postsecondary Technical Education, MOREnet, MOBIUS, and SB 553 ("Hop-over legislation) in addition to HB 1456 sites.

HB 1456 enables the board to recommend funding for the public two- and four-year institutions to deliver both degree and non-degree credit programs for an AA, AAS, and bachelor's degrees to communities located off-campus and some distance away from the main campus of the institutions. Nine of these centers have been established. They are the Bootheel Higher Education Center in Malden, Perryville, Nevada, Cassville, Lebanon, Rolla, Camdenton, Mexico, and Kirksville.

The State Plan for Postsecondary Technical Education specifically addressed the need for geographic and programmatic access especially with regard to high skill and high wage technical programs. The plan identified fifteen communities as regional trade centers or communities in which there were emerging industrial centers that would benefit from increased funding for local access of postsecondary technical education. The fifteen communities consists of Branson, Cape Girardeau, Chillicothe, Hannibal, Jefferson City, Joplin, Kirksville, Lebanon, Maryville, Nevada, Rolla, Sikeston, St. Jospeh, and West Plains.

Some of those sites were also RTEC sites, home campuses for four-year institutions, RTEC sites for community colleges using the area vocational technical schools, and some are 1456 sites. Legislative developments that have increased geographic access to higher education have included the creation of the Mexico Advanced Technology Center, the Sikeston Higher Education Center, and the Northeast Missouri Technical Center in Edina.

In the spring of 1998 the legislature passed SB 553 (hop-over legislation) which revises existing statutes that relate to how public school districts can annex themselves into existing community college districts. This legislation provides the first opportunity for local communities to contribute to the cost of instruction and be represented in the decision making.

Dr. Barnes stated that all these initiatives need to be combined into an integrated public policy regarding the financing of existing and necessary additional off-campus sites to enable effective and efficient delivery of such instruction. The question is to what extent does state subsidies discourage a community's potential commitment to support annexing themselves into a community college district or how much of the state's total appropriation should go to support off-campus and out-of-district instruction. Another question is what kind of incentives can the CBHE use to convince public school districts to annex themselves into a community college district.

In order to solve this dilemma the board is being asked to limit the amount of future appropriations to these off-campus and out-of-district sites to 50 percent of total site cost until such time as a policy can be determined.

Chairman Henry pointed out that the 50 percent cap would still be above the amount of state aid that many of the institutions are receiving for operation of their programs.

Commissioner Stroup reported that the staff struggled with this up until the point the board book was mailed and prefers to approach this matter from an incentive point of view. The recommendation before the board was to limit new growth only until a set of policy recommendations and incentives are developed.

Board members Dr. Henry and Mrs. Carmichael both raised the fairness issue of some districts receiving the services that community colleges provide without having to pay taxes to support the community colleges.

Dr. Evelyn Jorgenson, President, Moberly Area Community College (MACC) addressed the board and stated that MACC charges an out-of-district tuition rate which is higher than the in-district tuition rate. Students living in community college taxing districts benefit from a lower tuition rate. In her opinion, HB 1456 provides an incentive for those communities to vote in favor of the "hop-over" legislation. Dr. Jorgenson indicated that until communities become aware of the benefits of community colleges providing higher education to them, and until there is a taste of what good things can happen with community colleges establishing off-campus sites, they may not be willing even to consider annexing. Dr. Jorgenson believes that a HB 1456 site enables a community to understand the benefits of community colleges and would be more motivated to consider the annexation of the local school district(s) to a community college district.

Mr. Summers moved that the Coordinating Board for Higher Education limit its total funding recommendation from HB 1456, mission enhancement, and postsecondary technical education to support an off-campus or out-of-district instructional site, to fifty (50%) percent of the cost to deliver instruction in that community by single or multiple providers of higher and postsecondary technical education. This policy shall be in effect until such time as the Commissioner of Higher Education and staff in consultation with community college presidents and chancellors, affected four-year college and university presidents and chancellors, affected four-year college and university presidents and chancellors, the governor, and legislators proposes a set of policy recommendations and incentives that encourages local school districts to annex to established community colleges. Mrs. Findley seconded the motion, and it was unanimously passed.

Missouri Commission on the Affordability of Higher Education

Dr. Vera Stanojevic noted that public anxiety about college prices and a trend of annual tuition increases in some sectors of higher education prompted the United States Congress to convene the National Commission on the Cost of Higher Education. The wide ranging recommendations of the National Cost Commission lay out an ambitious agenda for both state legislatures and institutions of higher education. Governor Carnahan who has proposed public policy initiatives to assist needy students has noted this public concern. In a letter to Chairman Henry he encouraged the CBHE to establish the Missouri Commission on the

Affordability of Higher Education.

Dr. Cook moved that the Coordinating Board for Higher Education appoint a Missouri Commission on the Affordability of Higher Education. He further moved that the commission hold its initial meeting in conjunction with the 1998 Governor's Conference on Higher Education and present its report with recommendations to the board and Missouri higher education community at the 1999 Governor's Conference on Higher Education. Mr. Ewing seconded the motion, and it was unanimously passed.

Dr. Henry suggested that the commission should have a total of about twenty members from a broad spectrum of people in the community. The groups that would be represented are: legislative leadership (2), governor's office (1), governing board members including the CBHE (2), business leaders (4), faculty member (1), student member (2), parent (1), news media (1), presidents, chief financial officers, financial aid experts which could include representative from all sectors and CPAs (6). Dr. Henry asked the institutional presidents make nominations for membership on this committee and submit them to the commissioner before the end of October.

Advantage Missouri: Occupational Areas of High Demand and Related Degree Programs

Dr. Wittstruck commented that this is a loan forgiveness program passed by the 89th General Assembly and signed by Governor Carnahan. The legislation directs the board to designate occupational areas of high demand in the state and designate professions and skill areas directly related to the areas of high demand and the degree programs or certifications directly leading to employment in such areas. If a student pursues a course of study in one of the state's public or private institutions, and agrees to work in that occupation in the state of Missouri and documents that employment, the student can then receive one year of his loan forgiven for each year of work in the state of Missouri. The board is charged to annually review and approve the list of high demand occupations. The board shall consult with the Department of Labor and Industrial Relations, Department of Economic Development, and private and public agencies and individuals with expertise related to labor markets, geographic and demographic analysis, and solicit input from interested parties throughout the state. A resource team consisting of individuals who have expertise in occupational supply and demand and have access to various public and private employers has been established to determine the occupational areas of high demand in the state. The team identified computer, advanced manufacturing, and biomedical/biotechnology related occupations as being in high demand for the initial implementation of this program.

Mrs. Carmichael moved that the Coordinating Board for Higher Education designate computer, advanced manufacturing, and biomedical/biotechnology related occupations as being in high demand for the initial implementation of the Advantage Missouri loan forgiveness program. She further moved that the Coordinating Board direct its staff to request from all eligible postsecondary education institutions a listing of programs at the two-year certificate, associate, and baccalaureate degree level that are identified with those occupations for review by the Advantage Missouri Resource Team. The team will use this information to develop a listing of occupationally related programs for review and final approval by the board at its February 1999 meeting. Mrs. Carmichael also moved that the Advantage Missouri Resource Team continue its work to refine the selection criteria and annually provide the board with updated information as required by Section 173.781 RSMo. Mrs. Wood seconded the motion, and it was unanimously passed.

Update on Missouri K-16 Coalition Activities

Mrs. Carmichael, CBHE representative on the coalition, reminded the board that the goal of the Missouri K-16 Coalition is to improve mathematics performance in K-16. This is a timely endeavor because Missouri is not producing enough people in math related fields in higher education. The TIMSS test results have just been released and the results indicate that Missouri's performance should be improved. The results from the Missouri Assessment Program are consistent with this conclusion. In order to achieve success in raising student performance, cooperation between higher education and K-12 is necessary. The coalition adopted two policy statements to send forward to the State Board of Education and the Coordinating Board for Higher Education. One calls for the establishment of a common database among the Department of Elementary and Secondary Education, the Department of Higher Education, and the University of Missouri. A common data base will improve Missouri's available information concerning education and student progress by using common data definitions, linking their databases, and developing a common research agenda. The second policy statement recommended by the coalition emphasizes the importance of designing early warning systems to facilitate the timely remediation of student deficiencies.

Mrs. Carmichael, who was a member of the Missouri team that attended a national working institute on K-16 initiatives this past summer, presented a report on behalf of the Missouri team. The report describes a policy framework working paper for the coalition to use as it develops its recommendations. The following five themes were included:

• student achievement in mathematics
• curricular expansion
• mathematics competency in teacher preparation
• teacher certification
• professional development

Mrs. Carmichael noted that one of the things the Missouri team learned at the national meeting was that the most successful states are those that have included rewards, consequences, and incentives in their policy statements.

Progress Report on Funding for Results

Dr. Stein commented that Missouri's Funding for Results initiative is designed to promote and acknowledge results by reinforcing institutional achievement, recognizing student performance, responding to state and national priorities, and refining institutional missions. The CBHE includes both incentives and investments with an emphasis on results in developing its annual budget request. At its June 1998 meeting, the board approved the FFR elements to be used as incentives in the FY 2000 budget request. Also in June the board instructed the staff to:

• work with institutions for the timely submission and accuracy of performance data
• develop a recommended allocation structure for each FFR element
• consider ways to emphasize completion of associate degrees for transfer students
• review the definition of success rates by mission category concerning number of hours completed and targeted goals.

The recommended allocation structure for each FFR element is found under Tabs Q and T which present the FY 2000 budget recommendations for public four- and two-year institutions respectively. For FY 2000 incentives for successful transfer have been expanded to include the public four-year institutions. Previously, only public two-year institutions were rewarded for this FFR element. The incentive for four-year institutions is linked to completion of an associate degree prior to transferring.

Concerning freshmen success rates, the staff considered several definitions related to the number of hours completed and the GPA attained. The staff is recommending that the number of hours used for freshmen success rates remain at 24 with an attainment of a 2.0 GPA or greater by the end of their first-year. To lower the number of hours or GPA would send the wrong message.

Changes are being recommended, however for the target goals assigned to each admission category. These target goals which drive the allocation structure, were designated in 1992 without the knowledge of actual performance. Staff now has the benefit of student performance data that illustrate the importance of student preparation for freshmen success rates. Differences between actual performance and target goals are greatest for open enrollment students and smallest for highly selective students. Based on the board's interest in rewarding improvement the staff has recommended using revised target goals as follows: open enrollment institutions - 55 percent; moderately selective institutions - 70 percent; and selective institutions - 80 percent. The target goal for highly selective institutions remains at 90 percent. The recommended changes in target goals are for the FY 2000 budget only. The board will have an opportunity at the April 1999 meeting to discuss whether to change the wording of this goal in its integrated strategic plan.

Dr. Stein stated that Missouri has been named as one of five states to be included as a case study in a major grant to the Rockefeller Institute from the Pew Charitable Trust.

Update on Review of General Education for Transfer Students

Chancellor Eleanor Schwartz, Chair of the CBHE Committee on Transfer and Articulation (COTA), addressed the board. She reported that in April 1998 the board approved the revised Credit Transfer Guidelines with the exception of section A1 dealing with general education. The board approved the Principles of Good Practice for Transfer and Articulation in June 1998. At this time the board charged COTA to review and invite comments on the general education section; to structure a process for the statewide review of general education in the context of transfer and articulation and with an emphasis on proficiencies; and to provide regular reports concerning the status of the review.

Dr. Schwartz reported that COTA met several times over the summer and decided to appoint a General Education Steering Committee (GESC) which will serve as a task force to lead the statewide discussion and analysis of general education for transfer students and advise COTA. The higher education community submitted nominations for this committee. Twenty-one members were selected to serve on the GESC. Dr. Donald S. Doucette, Vice Chancellor for Education and Technology, Metropolitan Community Colleges, and Dr. Frederick T. Janzow, Dean of University Studies, Southeast Missouri State University, were appointed to serve as co-chairs of GESC.

The charge to the GESC is attached. (Attachment C) The state does not intend to prescribe a single statewide general education curriculum; rather, each institution will determine its particular approach to the delivery of a general education program within the CBHE's broad-based, agreed-upon parameters. It is expected that the steering committee will present its initial report to COTA at its December meeting, held in conjunction with the Governor's Conference on Higher Education, and a second report for presentation at the February 1999 Annual Statewide Conference on Transfer and Articulation.

Dr. Frederick Janzow informed the board that GESC held its first meeting on September 28 and listened to the concerns, issues, and rumors that members had heard. After extensive discussion, GESC members received an official charge and discussed the processes that would be used during the statewide review. It was emphasized that the review would be an open and actively inclusive process with a commitment to resolving differences of opinions. GESC will go around the state and seek input and advice regarding Section A1 and the transfer process from all stakeholder groups prior to finalizing its recommendations.

Comments Related to the Budget Process

Commissioner Stroup explained that over the summer months the individual institutions present their budget requests to the staff. The staff analyzes the requests in relationship to the board's policies and the Blueprint for Higher Education and makes its recommendations accordingly.

Mr. Wallace reported that the budget concentrates as much as possible on funding the strategic initiatives contained in the Blueprint for Higher Education. See Attachment D for amount requested for each initiative.

Recommendations for Public Four-year Institutions' Operating Appropriations, FY 2000

Mr. Wallace presented a brief summary of the increases in this item for the four-year institutions. A recommendation of $1.5 million is recommended to assist the UMKC medical school cope with increasing costs. The recommendation for the University of Missouri Hospital and Clinics at the Columbia campus contains an increase of $2.5 million to assist with funding increasing medical costs at that campus. Both recommendations are intended to allow the university to control the cost of tuition and fees for medical students.

Dr. Campbell moved that the FY 2000 general revenue and other fund recommendations for the public four-year institutions, including the University of Missouri Related Programs be approved as presented for submission to the governor and General Assembly. Mr. Ewing seconded the motion, and it was unanimously passed. (See Attachment E)

Recommendations for Public Four-year Institutions and Linn State Technical College Capital Improvements, FY 2000

Mr. Wallace explained that depending on the final outcome of the Kelly v. Hanson lawsuit regarding the calculation of total state revenues, some or all of the $135.7 million appropriated in FY 1999 for higher education capital improvement projects might not be available for those projects. If the FY 1999 appropriations are redirected to taxpayer refunds, the staff recommends that the affected FY 1999 projects remain the top priorities for capital improvement funding, ahead of any FY 2000 projects. If the FY 1999 appropriations remain intact, then the attached prioritization of fourteen FY 2000 projects is recommended. The Coordinating Board has previously recommended the first four projects for FY 2000 and each has also received an initial appropriation. The remaining ten projects have received a staff recommendation because they are the top campus priorities for those institutions.

Mrs. Findley moved that the capital improvement recommendations for FY 2000 be approved, as presented for submission to the governor and the General Assembly. Dr. Cook seconded the motion and it was unanimously approved. (See Attachment F)

Recommendations for Linn State Technical College Operating Appropriations, FY 2000

Mr. Wallace summarized the various decision items and components in the Linn State Technical College operations appropriations request for FY 2000. Dr. Henry noted that the program development items contained in this request were included in Linn State's five-year master plan.

Mrs. Wood moved that the FY 2000 general revenue recommendations for Linn State Technical College be approved as presented for submission to the governor and General Assembly. Mr. Summers seconded the motion, and it was unanimously passed. (See Attachment G)

Recommendations for Public Two-year Institutions' Operating Appropriations, FY 2000

Mr. Wallace stated that the FY 2000 maintenance and repair request would continue the present funding at the statutory 5 percent level on the most current year's state aid appropriation. The total percentage authorized by Section 163.191 RSMo is 10 percent or $11,719,638. One-half of this amount, or $5,859,819, would be allocated among the 12 community college districts according to a formula model. The remaining $5,859,819 would be placed into a pool for distribution by the CBHE to the highest priority projects based on criteria approved by the board in June 1998.

Mr. Bass moved that the staff recommendations for FY 2000 community college appropriations be approved as presented for submission to the Governor and the General Assembly. Mrs. Wood seconded the motion, and it was unanimously passed. (See Attachment H)

CBHE Internal Budget Appropriations Request, FY 2000

Mr. Wallace pointed out that this request includes $40,000 for expenses related to professional development of governing boards, including the Coordinating Board. There is a request of $20,000 to fund the CBHE's share of the Missouri K-16 initiative that had been previously funded through the internal budget. Increased staffing expenses in the amount of $93,000 are recommended for proprietary school certification. Dr. Stroup said that this is one of the fastest growing segments of postsecondary education and there has never been adequate funding for staffing the certification process. Mr. Wallace commented that in the event the massage therapy schools are not moved to the Division of Professional Registration, an additional $47,000 would be needed for this program. An amount of $3,401,845 for the second year of the Common Library Platform is also included in the CBHE internal budget. Some additional staffing is recommended for administering the new scholarship programs.

Dr. Campbell moved that the CBHE FY 2000 internal budget request be approved as presented for submission to the governor and General Assembly. She also moved that a supplemental request for FY 1999 of $280,000 for the Academic Scholarship Program be approved as presented. Dr. Campbell further moved that a supplemental request for FY 1999 of $150,000 be approved to begin development and implementation of statutory changes and program growth in grants and scholarships mandated by the General Assembly. Mrs. Carmichael seconded the motion, and it was unanimously passed. (See Attachment I)

Attachment J contains a summary of the Department of Higher Education Operating Budget for FY 2000.

Information Items

The board received the following information items:

• Academic Program Actions
• Planning for 1999 Statewide Conference on Transfer and Articulation
• First State Aid/Technical Education Payment for Community Colleges, FY 1999

Closing Remarks

Chairman Henry commented that the task of preparing a fair and balanced higher education budget is an extremely difficult one for the staff and the board. The board appreciates the fact that all sectors of higher education have indicated that they will support both the operating and capital appropriations requests. If higher education presents a united front to the legislature much more can be accomplished.

Adjournment

There being no further business to come before the board, the meeting was adjourned at 2:14 p.m.

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Ray Henry, Chairman

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John Bass, Secretary