Coordinating Board for Higher Education Meeting Minutes 12-00

December 7, 2000

The Coordinating Board for Higher Education met at 10:30 a.m. and 3:30 p.m. on Thursday, December 7, 2000 at the Holiday Inn Select Executive Center in Columbia. Members present were:

Lynn M. Ewing, Jr. Chair
Marie Carmichael, Vice Chair
John Bass, Secretary
Mary Findley
Dudley Grove
Ray Henry
Sandra D. Kauffman
Mary Joan Wood

Jim Summers, Jr. was absent.

Also attending were:

Kala M. Stroup, Commissioner
Robert Stein, Associate Commissioner for Academic Affairs and Planning
Terry Barnes, Asst. Commissioner for Community Colleges & Technical Education
Joy Casada, Secretary to the Board
Jim Matchefts, General Counsel
Dan Peterson, Deputy Director for MOSTARS
Dale Swoboda, Senior Associate for Fiscal Affairs
Leroy Wade, Director for Proprietary School Certification

There being a quorum present, Chair Ewing called the meeting to order and welcomed those in attendance. A list of guests attending the meeting is attached. (Attachment A)

Minutes of the October 12, 2000 CBHE Meeting

Mrs. Grove moved that the minutes be approved as submitted. Mrs. Wood seconded the motion, and it was unanimously passed.

Minutes of the November 9, 2000 CBHE Conference Call

Dr. Julio Leon addressed the board and reiterated his concern that Missouri Southern State College and Missouri Western State College were not recommended for adjustments to their base budgets. Dr. Leon urged the CBHE to continue discussions in this regard and expressed his hope that the situation will be reexamined in the future. Commissioner Stroup added that the staff is committed to working with the leadership of both institutions, Missouri Southern and Missouri Western.

Mrs. Findley moved that the minutes be approved as submitted. Mrs. Kauffman seconded the motion, and it was unanimously passed.

Report of the Commissioner

Commissioner Stroup reported that the staff is very involved in briefing Governor-elect Holden's transition team as well as working with Governor Wilson's staff. The Governor's executive budget is taking shape now and staff is also working with the Office of Budget and Planning in developing the higher education budget. Dr. Stroup also noted that the Missourians for Higher Education met with new legislators last night in Jefferson City and had a very good meeting.

Report of the Committee on Trusteeship Development

Mrs. Wood stated that on Wednesday the CBHE conducted its fourth trusteeship development workshop. Approximately 29 trustees and college and university presidents participated. The morning session, which was specifically for new trustees, provided an overview of higher education in the state and information regarding the role and responsibilities of new trustees. The afternoon sessions addressed technology, ethics, and affordability.

Proposed 2002 CBHE Meeting Dates

Dr. Henry moved that the Coordinating Board for Higher Education adopt the proposed 2002 meeting dates. Mrs. Grove seconded the motion, and it was unanimously passed. The 2002 meeting dates are February 7, April 12, June 7, October 11, and December 6.

Missouri/Kansas Reciprocal Agreement

Commissioner Stroup stated that a five-year exchange agreement with the Kansas Board of Regents has been finalized. The arrangement provides 491 out-of-state waivers in architecture for Missouri residents studying at Kansas State University or the University of Kansas in exchange for 80 out-of-state tuition waivers for Kansas students at the University of Missouri-Kansas City School of Dentistry, plus 20 waivers at the University of Missouri-St. Louis School of Optometry.

The procedure for the assignment of waivers to Missouri students will remain unchanged under the new agreement; that is, continuing students in good standing will have priority for waivers. New students and any others without waivers will be rank ordered by the admitting institution on the basis of academic potential and financial need. Available waivers will be assigned to this group on the basis of rank ordering until they are exhausted. The new agreement is from July 1, 2001 to June 30, 2006 and contains essentially the same technical provisions as the current agreement.

Commissioner Stroup commented that the University of Missouri should be recognized for their good citizenship in participating in this agreement which in some ways is costly to them.

Mrs. Kauffman moved that the Coordinating Board for Higher Education endorse the Missouri/Kansas Reciprocal Agreement. Mrs. Grove seconded the motion, and it was unanimously passed. (Attachment B)

Annual Report of the CBHE Proprietary School Certification Program

Mr. Leroy Wade presented an overview of the CBHE Proprietary School Certification Program. The update was divided into the following sections: Statistics and Characteristics; Proprietary School Advisory Committee; Current Initiatives; and Emerging Issues and Challenges.

Statistics and Characteristics

Mr. Wade noted that the enrollment for 1999 was 51,547 students. About 59 percent of those students were students enrolled for on-site classroom instruction. Approximately 1,310 programs were offered. In 1999, the private career schools graduated 22,092 students. Fourteen percent received degrees and 86 percent certificates. Ninety-six million dollars in financial aid was received by 17,926 students. The default rate was 11.6 percent for the 16 schools that participate in the federal loan programs. Forty-one percent of the students are 30 years of age or above and 41 percent are in degree programs. Ninety-three percent are high school graduates or had a GED. Fifty-one percent are male and 23 percent were minorities with about 19 percent African American. Seventy-one percent of the 1999 graduates are employed in the field of study and about 8 percent are pursuing additional training. As of December 1, 2000 there were 119 schools certified to operate under the proprietary school certification program. That figure represents 152 instructional sites. Thirty-seven new applications were received in FY 2000. Of that amount 21 were approved. Fourteen site visits were made and the staff processed 406 new or revised programs. Nine schools closed.

Proprietary School Advisory Committee

Mr. Wade commented that the CBHE Proprietary School Advisory Committee is a very important part of how the proprietary school program is administered in that it provides a large amount of assistance and guidance to the staff. The advisory committee consists of seven members and the staff tries to maintain a mix of people who are owners of the schools as well as those who serve as administrators. Appointments also strive for diversity in geographic distribution, accreditation, and program type and level.

Current Initiatives

The addition of two new staff positions a couple of years ago has been extremely helpful and has improved the timeliness of the application review and enables the provision of technical assistance to the schools. It has also increased the number of site visits that have been performed. The new administrative rule for the program should become effective by May 1, 2001. That will allow time to implement the new rule for the next certification year that begins July 1. Application information and materials are being updated to incorporate the broader work of the CBHE so that the best practices, guidelines, and initiatives are a part of this program also. The data collection area is being enhanced to incorporate electronic forms and electronic submission to the department to help speed that process and provide some way for institutions to do that in a most economic fashion.

Emerging Issues

Mr. Wade reported that they are struggling to deal with the changing nature of education. There are so many new opportunities for access to education and so much emphasis on continuous learning enhancement. Change is occurring at a very rapid pace. The program is working with different types of institutions and with the same institutions offering education in different ways. Mr. Wade commented that they have tried to address these new forms of on-line training in the new regulations. Another emerging issue is quality assurance and informed choices. Students are receiving so much information on-line that it is important for the program to assist them in making informed choices and provide some basic quality assurance for Missouri citizens.

In response to the growing understanding of the importance of adequate preparation for work to a strong economy, changes in the workforce development system have prompted changes in institutional focus and program requirements. The implementation of the federal Workforce Investment Act is already having a tremendous impact on the proprietary school sector. The need to share resources and forge partnerships in order to make our citizens successful in the transitions of their working lives can only increase.

In conclusion, Mr. Wade noted that the goal of the activities undertaken as part of the Proprietary School Certification Program is to ensure that private career schools are well positioned and capable of fulfilling their institutional missions and of assisting in the achievement of the board's agenda for change in postsecondary education in Missouri. These institutions have a crucial role to play in providing geographic and programmatic access to a broad range of postsecondary education programs, in ensuring that quality teaching and learning occur across all sectors of postsecondary education, and in maintaining a balanced and efficient system of higher education for our citizens.

Appointments to the CBHE Proprietary School Advisory Committee

Mr. Wade stated that at the end of 2000, two vacancies will occur on the Proprietary School Advisory Committee. The retiring members are Mr. Dennis Townsend, Electronics Institute (Kansas City) and Ms. Barbara Simon, Missouri College (St. Louis). Both of these individuals have served full three-year terms on the committee. Ms. Joan Meyer and Mr. Christopher Gearin have been appointed to fill these vacancies. Their appointments become effective January 1, 2001 and extend through December 31, 2003. Ms. Meyer is the campus vice president (director) of the Kansas City campus of National American University. National American (formerly National College) is a bachelor's degree granting institution offering programs in business administration, management, and information technology. The institution is accredited by the North Central Association of Colleges and Schools. Mr. Gearin is the president of Hickey College (St. Louis). Hickey College is an associate degree granting institution providing programs in the areas of accounting, administrative assistant, legal secretary/paralegal, and computer applications. Hickey College is a part of the Bradford Schools' system and is accredited by the Accrediting Council for Independent Colleges and Schools.

Recommended Targeted Service Initiative Plans and Distribution of FY 2002 (Year One) Funds for the State's Twelve Community College Districts

Dr. Terry Barnes reported that at its October 12, 2000 meeting the CBHE approved the four targeted service initiatives and action strategies for enhancing community college education in Missouri from FY 2002 through FY 2006. Those four initiatives are:

• Increase college attendance and participation rates among high school graduates from public high schools located in the taxing districts, as well as GED graduates residing in the area;
• Create a few very high quality centers of programmatic excellence in technical education;
• Develop, establish, and operate a statewide Internet-based associate of arts (AA) degree; and
• Promote economic development through education and training of employees, serve employers through collaboration and partnerships with the Department of Economic Development's efforts to implement the federal Workforce Investment ACT (WIA-1998), and increase participation in college by the clients using the state's one-stop career center workforce development delivery system.

Also at the October 12 meeting, the board approved a budget request of approximately $5 million in FY 2002 that would fund single or multiple proposals to implement the approved targeted service initiatives and related action strategies submitted by each community college. The staff was directed to review the proposals based on merit, and recommend to the board at this meeting individual college's action plans and a recommended distribution of mission enhancement funds directed toward achieving the targeted service initiatives. On November 1, 2000 the CBHE staff and seven designated representatives from the Department of Elementary and Secondary Education, Division of Adult and Vocational Education, and Department of Economic Development, Division of Workforce Development began reading each community college's proposal. In all, the twelve community college districts submitted 54 different proposals totaling $12,439,871 for one or more of the eligible action strategies. The readers were careful to assess each proposal and arrive at a reasonable rank ordering, according to the criteria listed in this agenda item summary. A total of $4,820,000 was recommended for community colleges' targeted service initiatives. Ten community colleges were recommended for funds ($1,420,000) under the action strategy dealing with increasing college participation rates among high school graduates. Eight community colleges were recommended for funds ($630,000) to increase the college participation rate of GED graduates. Nine community colleges were recommended for funds ($520,000) to increase the college participation rate of one-stop career center clients. All twelve community college districts were recommended for funds ($1,050,000) to further provide employers with employee training and education activities.

Two AAS degree programs (totaling $700,000) were recommended as a center of programmatic excellence in technical education. Crowder College ($250,000) was selected to expand its state licensed and nationally accredited AAS degree program in bio-industrial and bio-environmental technology. Metropolitan Community Colleges ($450,000) was recommended for its proposal to add a new AAS degree program in Automated Manufacturing Technology, which would provide an important training and education center for the Kansas City manufacturing sector. Metropolitan Community Colleges has been recommended by the presidents and chancellors and the CBHE staff to serve as the coordinator and administrator for FY 2002 for the community colleges' primary role in the development and implementation of the initial stages of an Internet-based AA degree. Funds in the amount of $500,000 were recommended for this initiative.

Dr. John Keiser indicated that Southwest Missouri State University's West Plains campus was fully in support of the public community colleges' targeted service initiatives and requested, where possible, that the West Plains campus also be included in future planning and implementation of programs and services. Commissioner Stroup said that the staff will include all two-year providers in statewide planning.

Dr. Henry made the following motions:

• that the CBHE approve the proposed distribution of funds scheduled for FY 2002 (Year One) as shown on the attached table (Attachment C);
• that the CBHE approve the individual community college plans for implementing the FY 2002 Targeted Service Initiative action strategies as attached (Attachment D);
• that the Coordinating Board for Higher Education direct the commissioner of higher education to request from each community college president/chancellor a refinement of each of the approved and funded FY 2002 Targeted Service Initiative proposals to be submitted by June 30, 2001;
• that this action does not imply or obligate the Coordinating Board for Higher Education to fund future Targeted Service Initiative requests, and that future requests for funding shall be evaluated based on accountability measures such as previous year's past performance, need, and proposal merit;
• that the Coordinating Board for Higher Education concur with the Missouri community college presidents and chancellors and approve Metropolitan Community Colleges as the coordinating administrator and fiscal agent for the Missouri community college on-line AA degree consortium for FY 2002; and
• that this action not be a substitute for the board's policies on the review of new certificate and associate degree programs. Instructional programs that have not been approved must complete this process and receive the commissioner's approval before being implemented.

Mrs. Grove seconded the motions, and they were unanimously passed.

Designation of Academic Programs for the Advantage Missouri Program

Mr. Dan Peterson stated that the purpose of the Advantage Missouri Program is to provide a loan forgiveness program for students enrolled in designated academic programs at the one- and two-year certificate, associate degree, and baccalaureate degree level that prepare them to become employed in designated high demand occupational areas in Missouri. The legislation assigns specific responsibilities to the Coordinating Board for Higher Education for the development and administration of the program. One of those responsibilities requires the board to annually designate occupational areas of high demand in the state. The board shall also designate the degree programs or certifications directly leading to employment in the designated high demand areas.

During the first two years of the program, the CBHE designated three occupational clusters related to computer technology, advanced manufacturing, and biomedical/biotechnology as being in high demand. Those same three high demand areas were designated at the board's June 2000 meeting as the high demand areas for the 2001-2002 academic year. The staff was also directed to request from all approved Missouri postsecondary institutions an updated listing of academic programs at the one- and two-year certificate, associate, and baccalaureate degree level related to the designated high demand areas. Staff has collected and reviewed program inventory information from participating institutions and is recommending program eligibility.

During the 2000-2001 academic year, the staff received applications for more than 1,825 students. Based on the FY 2001 $2.9 million appropriation, more than 1,126 students enrolled in 41 approved Missouri postsecondary institutions have been approved for awards. At its October 2000 meeting, the CBHE recommended a $4.6 million appropriation ($2.9 million core and $1.7 million increase) for the Advantage Missouri Program for the FY 2002 operating budget request. It is anticipated that these funds will be available for the 2001-2002 academic year, and should the board approve the updated program inventory contained in this item, the application process for the 2001-2002 academic year will begin in January 2001. To ensure an efficient ongoing administrative process, the annual designation of the high demand occupational areas for the 2002-2003 academic year will be presented to the board at its June 2001 meeting. It is planned at this time that the final list of academic programs identified by participating institutions and recommended by staff will be submitted to the board for approval at its December 2001 meeting so that the application process for the 2002-2003 academic year can remain on schedule and begin in January 2002.

Mr. Peterson reported that the staff is currently building an in-house data system to track student recipients while they are in school and once they are out of school and enter the workplace. It is tentatively planned to show outcomes for the first two years of the program at the June 2001 board meeting.

Mrs. Kauffman moved that the Coordinating Board for Higher Education designate the academic programs listed in Attachment E for the Advantage Missouri Program for the 2000-2001 academic year. Mr. Bass seconded the motion, and it was unanimously passed.

Update on the Missouri K-16 Coalition

Dr. Robert Stein stated that three years ago at the Governor's Conference on Higher Education Missouri took a major step forward in officially launching a coalition to work on K-16 initiatives. The coalition is a partnership of the Coordinating Board for Higher Education, the State Board of Education, and the University of Missouri Board of Curators. The coalition is committed to the design and recommendatoin of educational policy that supports high academic achievement for all students. It is important to acknowledge that what happens in K-16 is a joint responsibility between K-12 and higher education. This movement is sweeping the nation. The importance of working collaboratively with K-12 partners was highlighted in the National Report Card by emphasizing preparation as one key element in grading higher education. Missouri's first K-16 project was focused on mathematics. K-16 work requires a sustained commitment. The coalition is now positioning itself for future K-16 projects.

Mrs. Carmichael reported that the K-16 coalition is moving forward in its work. At their respective October board meetings, all three partners reaffirmed their commitment to work collaboratively on Missouri's K-16 issues. President Pacheco, Commissioners King and Stroup have met and the three staffs are working on the next initiative. The main thrust of the new initiative that will be launched in February will be eliminating achievement gaps. The task force will be charged with designating strategies to enhance and sustain a quality teaching workforce, as the single most important factor in improving student performance is the quality of classroom teachers.

Mrs. Carmichael stated she was particularly pleased that Governor-elect Holden emphasized so strongly the importance of improving the quality of the state's teacher workforce in his speech earlier in the day at the Governor's Conference on Higher Education. She read the following excerpts from his speech.

"Teacher preparation is a natural partnership between K-12 and higher education and the founding issues of many of our colleges and universities. I will need your help to ensure that everything is being done that we possibly can do to attract top students in teacher education programs and that the training is top-notch."

Within the context of teacher quality, the coalition will be looking at curriculum alignment. A strong and well-aligned curriculum is essential for improved student performance. Dr. Stein noted that closing achievement gaps in performance of underserved groups will be emphasized.

Remaining Higher Education FY 2002 Budget Items

Dr. Long stated that the higher education FY 2002 budget request approved by the CBHE at the October 12 board meeting contained five decision items that needed further refinement or correction. Those items were Linn State Technical College Capital, Campus Technology Infrastructure; Four-year Maintenance and Repair, Community College Targeted Service Initiatives; and Four-year Base Budget Adjustment.

Linn State Technical College Capital

At the October board meeting, the capital request on behalf of Linn State Technical College was pending further discussions among the CBHE staff, representatives of the state divisions of Budget and Planning and Design and Construction, and representatives of Linn State. The discussions subsequently took place and focused on Linn State's concern that the FY 2001 appropriation of $5,828,681 (being held until resolution of the Article X law suit) is insufficient to complete the truck center and necessary campus-wide infrastructure improvements as conceived in the FY 2001 capital request. The shortfall results from both better estimates of the true cost of constructing the truck center and infrastructure projects and the Budget Office's misinterpretation of total project costs (they had incorrectly applied the required 20 percent local contribution twice). CBHE staff, the state budget office, and Linn State Technical College have agreed that permitting the entire FY 2001 appropriation to be used for the truck center can best solve this problem. When coupled with the required 20 percent local match, the state appropriation of $5.8 million will be sufficient to complete the truck center as originally approved by the CBHE in its FY 2001 budget request. For FY 2002, the CBHE staff recommends $2,900,000 for campus-wide infrastructure to cover items presented as part of the FY 2001 request and other emergency needs that have recently arisen. If supported by the Governor and the General Assembly, this approach will enable Linn State Technical College, over two years to complete the truck center as originally approved by the CBHE and to develop the infrastructure needed to support current campus physical requirements and planned future capital projects.

Campus Technology Infrastructure

At the October board meeting, the CBHE approved an FY 2002 campus technology infrastructure budget request of $5,500,000 for public four-year institutions and $3,250,000 for public two-year institutions. CBHE staff has worked with representatives of these public institutions and has developed institution-specific distributions of the previously approved funds. The recommended distribution to four-year institutions uses information reported by each institution on the actual number of classrooms, faculty, and students. The recommended distribution to two-year institutions uses the same method except that a statewide average of classrooms per FTE is used as one of the allocation variables. An average was determined to be more equitable because of important differences among the missions of two-year institutions related to technical education and associated space requirements and faculty/student ratios. The recommended allocations of funds are presented in Attachment F and are supported by the president of Linn State Technical College, the Presidents and Chancellors Council of the Missouri Community College Association (MCCA), and the Council on Public Higher Education for Missouri (COPHE).

Four-year Maintenance and Repair

In working with the State Budget Office, it was determined that inaccurate data were used to calculate the maintenance and repair request for Southwest Missouri State University and the University of Missouri System. Corrected data reduce the overall request from $12,076,062 adopted at the October board meeting to $9,961,207 and, in accordance with the agreed upon formulas, require a different distribution among four-year institutions. Small modifications in the inflation request for Southwest Missouri State University and the University of Missouri System are made to reflect more accurate data.

Community College Targeted Service Initiatives

At the October board meeting, the CBHE approved a FY 2002 budget request of $5,000,000 million for community college service initiatives. An allocation of $4,820,000 of these funds was previously presented under Tab E.

Four-year Base Budget Adjustment

At the October board meeting, the CBHE approved a base budget adjustment of $3,889,670 for Southwest Missouri State University ($1,944,835 in FY 2002). The board directed staff to review the process used to arrive at the recommendation. This review has been completed and included further consultation with national experts, reexamination of national and Missouri peer finance data, development of a chronology of the base budget adjustment process, and a meeting with the presidents of Missouri Western State College and Missouri Southern State College at which the entire process and rationale underlying the staff recommendation was reviewed and input from the presidents was received.

The process used to review the recommendation was shared with the board via correspondence and a conference call held on November 9, 2000. After thorough discussion, the CBHE came to consensus that it reaffirms the base budget adjustment request adopted at the October board meeting. The board concluded that the recommendation is fair and consistent with board policy and COPHE positions on this issue. The recommendation for an adjustment to Southwest Missouri State's base budget is supported by a number of factors, including comparison to a national list of more than 200 public comprehensive masters degree granting institutions throughout the nation and its position as Missouri's lowest funded masters granting institution. The adjustment to the per FTE funding level of the next lowest per student funded masters degree granting institution is conservative, reasonable, and consistent with mission difference between baccalaureate and masters degree granting institutions.

Missouri Western State College and Missouri Southern State College were also compared to more than 100 public baccalaureate institutions nationwide and an adjustment to their base budgets is not recommended. This does not indicate that the board considers these institutions over-funded and does not adversely affect their participation in any future funding initiatives approved by the board. In fact, the board expressed its commitment to ongoing review of the current system of funding public higher education. However, the board recognizes that state support represents about 60 percent of four-year institutions' budgets and that other sources of financial support are influenced by institutional choices including amount of tuition and discounting, and admissions practices that do not reach the institutions' agreed upon level of selectivity.

Dr. Henry stated that it has been suggested that the board would like for the staff to examine the formula thoroughly and that perhaps it could be improved, not just for one institution but for everybody. He asked the staff to see whether or not there may be inequities. He also asked the institutions to examine their own contributions. He feels that it needs to be clarified to the institutions that they need to examine their own financial practices and see how they might enhance their situation.

Commissioner Stroup noted that this is the first time that the staff has performed a complete financial analysis of the institutions. One of the important questions raised by this analysis is that when institutions have autonomy to make decisions, as they should have, then should the state make up the shortfall that these decisions might cause. The staff is struggling with this question and will seek the board's wisdom in resolving these matters.

Mrs. Kauffman moved that the FY 2002 budget request for higher education adopted by the Coordinating Board for Higher Education on October 12, 2000 be amended to incorporate the modifications and additions regarding maintenance and repair funding at public four-year institutions, targeted service initiatives at public community colleges, campus technology infrastructure funding, and the Linn State Technical College capital request as presented in this board item (Attachment F). Mrs. Wood seconded the motion, and it was unanimously passed.

Information Items

The board received the following information items:

• Academic Program Actions
• Second State Aid/Technical Education Payment for Community Colleges, FY 2001
• 2001 Conference on Transfer and Articulaiton
• Proprietary School Certification Actions and Reviews
• Biennial Report Regarding English Language Proficiency of Graduate Teaching Assistants
• Fall 2000 State Student Assistance Program Awards

Mrs. Kauffman commented that she does not remember ever seeing the Biennial Report Regarding English Proficiency of Graduate Teaching Assistants when she was a legislator and suggested that it be shared with legislators, especially those on the Higher Education Committee.

Mrs. Grove stated that while the Fall 2000 State Student Assistance Program Awards lists the number of students who receive awards under the various MOSTARS' programs it would also be helpful to see the number of students that are eligible for funds but for which funds are not available. This information would be helpful in addressing the affordability issue.

Other Comments

Mrs. Kauffman complimented the staff upon a job well done in putting together the Governor's Conference.

Adjournment

There being no further business to come before the board, the meeting was adjourned at 3:50 p.m.

__________________________
Lynn M. Ewing, Chair

___________________________
John Bass, Secretary