Coordinating Board for Higher Education Meeting Minutes 12-01
December 6, 2001
The Coordinating Board for Higher Education met at 7:30 a.m. at the Kansas City Marriott Downtown on Thursday, December 6, 2001. Members present were:
Marie Carmichael, Chair
John Bass
Diana Bourisaw
Adam Fischer
Dudley Grove
Mary Joan Wood
Absent from the meeting were Mary Findley, Sandra Kauffman, Vice Chair, and Jim Summers, Jr., Secretary.
Also attending were:
Kala M. Stroup, Commissioner
John Wittstruck, Deputy Commissioner
Joe Martin, Associate Commissioner for Fiscal and Legislative Affairs
Robert Stein, Associate Commissioner for Academic Affairs and Planning
Lynn Hearnes, Assistant Commissioner for MOSTARS
Joy Casada, Secretary to the Board
Nancy Devino, Director, Missouri Learners' Network
Judy Gehrke, Research Associate for Fiscal Analysis
Jim Matchefts, General Counsel
Dan Peterson, Director of Student Financial Assistance for MOSTARS
Leroy Wade, Director of Proprietary School Certification
Wei Zhou, Research Director
There being a quorum present, Chair Carmichael called the meeting to order. A list of guests attending the meeting is attached. (Attachment A)
Minutes of the October 11, 2001 CBHE Meeting
Mrs. Grove moved that the minutes be approved as submitted. Mr. Bass seconded the motion, and it was unanimously passed.
Report of the Commissioner
Commissioner Stroup commented that there are a lot of representatives from the life sciences industry attending today's Governor's Conference on Higher Education, which will be focusing on the life sciences.
The House Interim Subcommittee of the Appropriations Education Committee will be presenting its report and has a hearing scheduled for December 11, 2001. Dr. Evelyn Jorgenson, president of Moberly Area Community College will appear before the committee to discuss Moberly Area Community College's role in outreach with technical education as a prototype of what all the community colleges are doing. The higher education budget hearings before the House Appropriations Committee on Education will begin on Tuesday, December 18, 2001 and will conclude on Thursday, December 20, 2001.
Commissioner Stroup informed the board that their handout packet contained an update on the Lincoln University and State Fair Community College situation in Jefferson City. At its February 2001 board meeting, the CBHE adopted clarifying comments to assist with resolution of this conflict.
Proposed 2003 CBHE Meeting Dates
Mrs. Grove moved that the Coordinating Board for Higher Education adopt the proposed 2003 meeting dates. Dr. Bourisaw seconded the motion, and it was unanimously passed. The 2003 meeting dates are: February 6, April 10, June 5, October 9, and December 11.
Adjustments to the FY 2003 Budget Recommendations
Mr. Martin reported that since the board approved the FY 2003 Higher Education appropriations request at its October 11, 2001 meeting, there have been some minor revisions. These revisions result in an adjustment to the total state appropriation request from $1,320,064,658 to $1,324,822,974, an adjustment of $4,758,316. The changes are primarily due to mathematical corrections.
Revisions to the FY 2003 community college budget request formula result is an adjustment to the total state appropriation request for the community colleges from $174,585,960 to $174,139,068, an adjustment of $446,892. Revisions to the FY 2003 four-year institutions' budget request formula result in an adjustment to the total state appropriation request for the four-year institutions from $899,012,257 to $898,978,665, an adjustment of $33,592. This adjustment is a result of several changes that occur within the performance section, Block B, of the funding formula and result in a net adjustment of $33,592 in the amount recommended for performance funding. Revisions to the FY 2003 CBHE internal budget request result in an adjustment to the total state appropriation request for CBHE internal items from $187,312,675 to $192,551,472, an adjustment of $5,238,800.
Mr. Fischer moved that the FY 2003 state budget request for higher education, adopted by the Coordinating Board for Higher Education on October 11, 2001, be amended to incorporate the above revisions. Mr. Bass seconded the motion, and it was unanimously passed.
Subdistricting Plan for the Junior College District of East Central Missouri
Dr. Wittstruck commented that at its October 11, 2001 meeting, the Coordinating Board for Higher Education received from the Board of Trustees of the Junior College District of East Central Missouri a resolution calling for the formation of a subdistricting committee. The CBHE appointed three representatives to the subdistricting committee and charged the committee to proceed with the adoption of a subdistricting plan to be submitted to the Coordinating Board for Higher Education for its approval or disapproval. On November 12, 2001, the subdistricting plan was submitted to Coordinating Board staff for review. The subdistricting plan sets forth three subdistricts from a 2000 Census district population of 83,559. Subdistrict One, with a population of 27,617, is to be represented by two trustees, and has an average population of 13,809. Subdistrict Two with a population of 28,058 is to be represented by two trustees, and has an average population of 14,029. Subdistrict Three with a population of 27,884 is to be represented by two trustees, and has an average population of 13,942. All trustees are to reside in the subdistrict they represent and shall be elected by votes of electors of the subdistrict in which they reside. The CBHE staff is of the opinion that the subdistricting plan meets the subdistricting committee's intent to make each subdistrict "substantially equal" according to provisions set forth in Section 178.820 RSMo.
Mr. Bass moved that the Coordinating Board for Higher Education approve the subdistricting plan for the Junior College District of East Central Missouri as submitted on November 12, 2001 by Dr. Karen Herzog, president of East Central College, in accordance with the provisions set forth in Section 178.820, RSMo. He further moved that the board direct its staff to notify the Board of Trustees of the Junior College District of East Central Missouri of its approval of the subdistricting plan, and to convey its appreciation to the chairman, and members of the subdistricting committee for their service. Mrs. Grove seconded the motion, and it was unanimously passed.
Proposed 2002 Legislative Initiatives
Commissioner Stroup stated that the second regular session of the 91st Missouri General Assembly convenes on January 9, 2002. Each legislative session involves a number of legislative proposals that have an impact on the state's system of higher education. CBHE staff will be monitoring legislation and producing weekly reports for the presidents and chancellors and board members describing legislative developments. At this point, there is only one known legislative proposal affecting the state's system of higher education, which is being brought to the board's attention. This proposal comes from the Board of Regents of Northwest Missouri State University to change the composition of that board. The change is to increase the number of regents from seven to nine. The two additional members would be selected from any of the seven college districts included in Section 174.010, RSMo, provided that no more than one member be appointed from the same congressional district. This proposal was first presented to the Coordinating Board on December 9, 1999. After discussion with CBHE in 1999, President Hubbard withdrew the proposal until the Northwest Missouri State University Board of Regents could review and endorse the legislation. The Northwest Missouri State University Board of Regents has approved a proposal to place before the Coordinating Board and the Missouri General Assembly legislation that would change the composition of the Board of Regents.
Dr. Dean Hubbard stated that the Northwest Board of Regents believes that this change will bring the institution in line with the majority of other regional four-year institutions that have members from across the state appointed to their governing boards. Northwest serves the entire state through its roles defined through mission enhancement with its expanded electronic campus, the Missouri Academy of Math, Science and Computing and the continued application of quality in education. Northwest and its students would benefit by having individuals from these sectors (who primarily reside outside of the traditional 19 county service area) serve on its Board of Regents. There are many alumni and key leaders who would bring tremendous expertise, resources and cultural diversity to Northwest through service on the Board. The motion adopted by the Northwest Missouri State University Board of Regents is "The Board of Regents of Northwest Missouri State University pursuant to Section 175.050 shall now be composed of nine members, six of whom shall reside in the district in which the University is situated with at least one member of the board being a resident of Nodaway County and two additional members selected from any of the seven college districts as contained in Section 174.010, RSMo, provided that no more than one member be appointed from the same congressional district."
Mrs. Grove moved that the Coordinating Board for Higher Education endorse the proposed legislative change regarding the composition of the Northwest Missouri State University Board of Regents as described above for consideration during the second regular session of the 91st Missouri General Assembly. Mrs. Wood seconded the motion, and it was unanimously passed.
Commissioner Stroup reported that Governor Holden will soon announce that Northwest Missouri State University is the winner of the Missouri Quality Award. This is the second year that Northwest has won the award. Board members congratulated the entire university on this earned recognition.
Annual Report of the CBHE Proprietary School Certification Program
Mr. Wade presented an overview of the CBHE Proprietary School Certification Program. He noted in presenting his remarks that he would like to tie his remarks to what the proprietary program does for the board's planning objectives, particularly relating to system strength, student success, and public engagement.
Mr. Wade stated oversight of the proprietary school certification program was assigned to the Coordinating Board for Higher Education in 1983 and the program became operational in 1985. Only one amendment has been made to the program statute. In 1991, some minor adjustments were made to some of the standards and changes were made to some of the exemption categories to try to tighten the criteria for those categories.
During FY 2001, a total of 121 schools were approved to offer instruction in Missouri. When branch locations are included, there were a total of 143 instructional locations. An additional 18 non-Missouri private career schools were approved for purposes of student recruitment. Approximately 1400 programs contain a wide range of program types and program levels from very short, very technical, very occupationally specific two-week certificates through doctoral level programs offered by other types of institutions.
Mr. Wade described private career education in Missouri's system of higher education as they provide a different approach to educational delivery and an alternative to the traditional forms of postsecondary education. Capacity is another role as there are over 50,000 students enrolled in this sector. Flexibility and adaptability are other roles of private career education as they can move into areas very quickly to adapt their programs and their institutions to fit the market needs and workforce demands. Private career schools also play a complementary role within the state system by serving an area that is not being served.
Mr. Wade reported the CBHE has a very dynamic and unique system in terms of the data collected and data available concerning this sector which very few other states have. There are 57,000 students enrolled in these certified institutions. Of those, about 34,000 students are in classroom based types of traditional programs, 22,000 in correspondence and business education (that number is very high because one of the largest correspondence schools in the country is located in the Kansas City area). About 26 percent are members of an ethnic minority, about 20 percent are African-Americans, about 35 percent are degree-seeking students, 90 percent are either high school graduates or GED. Seventy-seven percent of these students are beyond the traditional college attendance age with the majority of them are in the 23 - 35 year-old range. There is still a sizeable number that are over 35. A small number of schools, out of the 121 total, participate in the financial aid programs with about $111 million awarded in 2000. About 62 percent of that amount is in loans.
Approximately 23,500 students graduated from a certified school. Twenty-five percent are from an ethnic minority, 14 percent were awarded degrees. More students were enrolled in the technical/mechanical areas. Allied health programs consisted of 19 - 20 percent of the graduates with 16 percent coming from the precision technology areas. The overall graduation rate was about 74 percent for students who entered during the calendar year 2000 so these rates would apply to mostly shorter programs. The "At Risk" graduation rate was 82 percent. This indicates that students who were not successful in other kinds of formal education are able to succeed at a rate much above what the other students do in the proprietary sector. Three out of four students find a job in the area in which they are being trained and about 6 - 8 percent continue their education in other areas.
Mr. Wade commented that the proprietary certification program provides Missouri's citizens with access to quality postsecondary education and job oriented training systems. That is done through a meaningful and rigorous oversight process. They also want to help foster an understanding of the contribution to both the state and the citizens of certified schools. The program works very closely with an advisory committee. This committee is set in statute and is one of two statutory advisory committees to the CBHE. The staff shares with the committee a lot of information about the board's work and initiatives and the committee provides a sounding board and feedback about how this sector views these issues and how they are affected by them.
The three major functions of the program are consumer protection, technical assistance, and public information. Consumer protection consists of new and existing certification processes, school closure/record maintenance, and compliance/site reviews. Technical assistance consists of providing assistance during the startup process and ongoing support and training. Public information is an area of growing interest and is an area that will require hard work to help the citizens of Missouri understand what their options are and how to make informed choices. The program's Internet site is being used for this purpose and the staff is looking at some other ways to disseminate information. The staff currently prepares a report for each board book that contains all program actions since the previous CBHE meeting.
Mr. Wade closed by summarizing how the work of the proprietary school certification program relates to the planning initiatives and objectives, and system and institutional integrity. They are trying to provide a meaningful gateway so institutions that come into the state are prepared to deliver quality education to the citizens of Missouri. There is a need to continue to work on collaboration and coordination both among institutions and with other state agencies. The certification program attempts to disseminate information to the public so they are able to make informed decisions about their postsecondary education choices.
Mr. Fisher asked if an institution is not certified is it able to do business in Missouri. Mr. Wade responded that by statute, an institution cannot offer instruction in the state without certification to operate. Sometimes there are institutions that run counter to that and the staff does its best to identify those and do everything possible to bring them into compliance with the law. However, if an institution operates in Missouri without certification, the staff can go to the Attorney General and seek legal action.
Appointments to the CBHE Proprietary School Advisory Committee
Mr. Wade commented that at the end of calendar year 2001, two vacancies will occur on the Proprietary School Advisory Committee (PSAC). The retiring members are Ms. Karen Watkins, TelTemps Training Resources (St. Louis) and Ms. Ruby Harriman, Daruby School (St. Louis). Ms. Watkins was recently appointed to complete the unexpired portion of a vacant term and she has been reappointed to a full three-year term. Ms. Harriman has served a full three-year term on the committee. Mr. Turner Brooks has been appointed to fill this vacancy. These individuals have been selected through processes and criteria consistent with the board's June 7, 2001 policy to ensure diverse representation in appointments to committees.
Mr. Brooks is the director of student financial assistance for Vatterott Colleges, based in St. Ann, Missouri. Vatterott College is a multistate private career school operating six campuses in Missouri as well as campuses in Illinois, Iowa, Nebraska, Oklahoma, Tennessee, and Ohio. The school is accredited by the Accrediting Commission for Career Schools and Colleges of Technology. In his current position, Mr. Brooks provides leadership and direction for the administration of financial aid programs at all Vatterott College campuses nationwide as well as serving as the liaison with the Missouri Department of Higher Education for certification program compliance. Mr. Brooks has been involved in private career education for more than 15 years and has been an active member of a number of professional associations. He is a graduate of Vatterott College.
Ms. Watkins is the executive director of TelTemps Training Resources, Inc., located in St. Louis, Missouri. TelTemps was originally certified to operate as a private career school in 1999 and provides short-term, industry specific training for entry-level positions in banking and the call center industry. Ms. Watkins was the primary person responsible for the establishment of TelTemps as a training provider in St. Louis and continues to be its primary administrative person. She is active in several professional associations as well as in the St. Louis community through membership in several civic organizations. Ms. Watkins received a Bachelor of Science in Business Administration from Truman State University and a Master of Business Administration from Southern Illinois University at Edwardsville.
Other Business
Mr. Bass asked the commissioner to provide the board with a compendium of all correspondence regarding the Lincoln University and State Fair Community College collaboration. If this issue is not resolved by the Chief Academic Officers' Conflict Resolution Committee and the two institutions, the matter will be brought before the Coordinating Board. Chair Carmichael commented that it is very troubling when there are institutions that are engaged in disputes that do not seem to be moving toward resolution. She feels the board has an obligation to resolve this matter at its February meeting. Commissioner Stroup responded that staff will prepare this information for the board. She reminded the board that at its February 2001 meeting, clarifying comments were approved to assist with resolution of this conflict.
Mr. Fischer asked if the conflict resolution committee cannot resolve the matter would the committee then make a recommendation to the CBHE. Dr. Robert Stein responded that the committee is a mediation committee not an arbitration committee. On November 14, the committee met with the two presidents involved and two staff members from each institution. Since then the two presidents have met. Staff has not been officially notified of what occurred at that meeting. If the two institutions do not reach resolution the Chief Academic Officers' Conflict Resolution Committee will make a report to the board.
Mr. Bass inquired as to how the conflict resolution was chosen. Dr. Stein responded, that as directed by policy, it is chosen by the chief academic officers of the public two- and four-year institutions. The committee consists of: Dr. Dan Larsen, vice president for academic affairs at St. Charles Community College, who is the head of the two-year CAOs; Dr. Stephen Lemkuhle, vice president for academic affairs at the University of Missouri and head of the four-year CAOs; Dr. John Rucker, dean of instruction at Crowder College; and Dr. Jane Stevens, provost, at Southeast Missouri State University.
Mrs. Grove commented that this is a broader issue than just these two institutions because there are other areas of the state where multiple institutions are coming in and trying to serve an area. She said this discussion between Lincoln and State Fair is an opportunity to fully utilize the process set up by the CBHE so that everyone feels there is a way to work through disagreements or conflicts. Mrs.Grove stated that she understands the economic needs of institutions in trying to meet their bottom line budgets but that the goal is to have a diverse system that has capacity, that is flexible, adaptable, complimentary, meets market needs, and is niche focused. She further commented that she hopes the board and the institutions, despite the conflicts and questions, are educating students so that people have the highest quality of life and that Missouri achieves its maximum potential as well. We are not here to build empires, but to be collegial and work together and to get above whatever the history has been and really work for the students.
Information Items
The board received the following information items:
Academic Program Actions
Proprietary School Certification and Reviews
Update on the CBHE Committee on Transfer and Articulation
Update on the Missouri K-16 Coalition
State Aid Payments and Capital Reimbursements to Community Colleges, FY 2003
Fall 2001 State Student Assistance Program Awards
Chair Carmichael announced that the K-16 Task Force on Achievement Gap Elimination will meet on December 14 in Jefferson City to discuss its draft report on Closing Achievement Gaps.
Adjournment There being no further business to come before the board, Mrs. Wood moved that the meeting adjourn. Dr. Bourisaw seconded the motion, and it was unanimously passed. The meeting adjourned at 8:45 a.m.
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Marie Carmichael, Chair
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Jim Summers, Jr., Secretary
