Coordinating Board for Higher Education Meeting Minutes 12-99

December 9, 1999

The Coordinating Board for Higher Education met at 3:30 p.m. on Thursday, December 9, 1999 at the Renaissance Hotel in St. Louis. Members present were:

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

Also attending were:

Kala M. Stroup, Commissioner of Higher Education
John Wittstruck, Deputy Commissioner
Brian Long, Associate Commissioner for Fiscal & Legislative Affairs
Robert Stein, Associate Commissioner for Academic Affairs & Planning
Terry Barnes, Asst. Commissioner for Community Colleges & Technical Education
Janet First, Administrative Assistant
Cheryl Kesel, Public Information Specialist
Shelly Lamb, Administrative Assistant
Jim Matchefts, General Counsel, MOSTARS Senior Associate
Karen Misjak, Director for MOSTARS
Blake Naughton, Research Associate (Proprietary School Certification)
Dan Peterson, Deputy Director for MOSTARS
Richard Presberry, Senior Associate (Early Awareness & Outreach) MOSTARS
Mike Pullis, Faculty Fellow
Cleo Samudzi, Senior Associate for Academic Affairs
Dale Swoboda, Senior Associate for Fiscal Affairs
Leroy Wade, Director for Proprietary School Certification
Paul Wagner, Research Associate (Fiscal Affairs)
Andy White, Research Associate (Academic Affairs)
Wei Zhou, Research Director

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

Minutes of the October CBHE Meeting

Mrs. Findley moved that the minutes of the October 7, 1999 CBHE meeting be approved as submitted. Mr. Ewing seconded the motion, and it was unanimously passed.

Report of the Commissioner

Commissioner Stroup thanked the staff who assisted with planning the Governor's Conference for the incredible job they did. The conference theme was "Toward an Affordable Future," which was the name of the report of the Missouri Commission on the Affordability of Higher Education. Another highlight of the conference was the release of the Missouri K-16 Coalition report on mathematics. Approximately 400 college administrators, governing board members, legislators, and faculty participated in the conference.

The commissioner described the contents of the handouts distributed to the board. The packet included the following information:

• Two follow-up reports to the August board retreat: "Status Report on Time to Degree Completion of Baccalaureate Degree Recipients at Missouri Public Four-year Institutions" and "Minority Participation and Success in Missouri Higher Education";
• A compilation of questions received regarding dual credit and the staff responses;
• The Department of Higher Education Fiscal Year 2001 Operating Budget, Capital Budget, and Strategic Plan, which contains some minor corrections that were made as a result of reviewing the budget with the Division of Budget and Planning;
• A listing of Missouri higher education projects that received funding in the federal FY 2000 spending bills; and
• A tentative schedule for the 2000 Transfer and Articulation Conference.

Proposed 2001 CBHE Meeting Dates

Mr. Ewing moved that the Coordinating Board for Higher Education adopt the proposed 2001 meeting dates as listed. Mrs. Findley seconded the motion, and it was unanimously passed. The 2001 meeting dates are February 8, April 12, June 7, October 11, and December 6.

Report of the Missouri Commission on the Affordability of Higher Education

Dr. James Olson, Chair of the Missouri Commission on the Affordability of Higher Education presented "Toward an Affordable Future," the report and recommendations of the commission. He expressed the hope that the report will be of assistance as the board continues to provide leadership for Missouri higher education in the 21st Century. On behalf of the commission members, Dr. Olson thanked the board for the privilege of working on this important subject during this past year. He stated that he was impressed over the year with the progressive, far-sighted leadership provided by the CBHE in developing strategic initiatives to help maintain both the affordability and the quality of higher education in Missouri.

Chairman Henry, on behalf of the CBHE, expressed appreciation for the hard work that Dr. Olson and the commission members put into the preparation of the report. He commented that it is the intention of the board to move ahead with implementing the report's provisions that have the greatest potential to benefit all students enrolled in the state's system of higher education.

Mr. Bass moved that the Coordinating Board for Higher Education accept the report of the Missouri Commission on the Affordability of Higher Education, titled Toward an Affordable Future. Mr. Bass further moved that the Coordinating Board express its sincere thanks for the dedication and service the commission members contributed to advancing Missouri's interest in maintaining an affordable system of higher education. Commission members are listed in the attached report. He also moved that the Coordinating Board direct the Commissioner of Higher Education to prepare an implementation plan for the commission's recommendations. Mrs. Findley seconded the motion, and it was unanimously passed. (Attachment B)

Report of the Missouri K-16 Coalition

Mrs. Marie Carmichael thanked Dr. Mel George for his assistance and leadership in moving the coalition discussions forward. Mrs. Carmichael observed that the coalition's report is a very balanced report in terms of the responsibility that is given to both higher education and K-12 for raising standards in mathematics and teacher preparation and professional development. She also noted that the challenge for the board will be to implement the broad-based recommendations in the report into public policy that will result in the kind of improvement that everyone is hoping for in K-16.

Mrs. Carmichael moved that the Coordinating Board for Higher Education receive the Report on Mathematics in Missouri issued by the Missouri K-16 Coalition. The dedication and commitment of coalition members to enhance student performance in mathematics at all educational levels has been invaluable. The exemplary service of these key business, legislative, and educational leaders, especially the exceptional leadership of Dr. Melvin D. George, is to be commended. Coalition members are listed in the attached report. Mrs. Carmichael further moved that the CBHE staff work with the staff from other sponsoring boards to develop an implementation plan and information campaign in support of the coalition's recommendations. She also recommended that the staff systematically evaluate and report to the board its progress in meeting these objectives. Mrs. Findley seconded the motion, and it was unanimously passed. (Attachment C)

Annual Report of the CBHE Proprietary School Certification Program

Mr. Leroy Wade presented an overview of the CBHE Proprietary School Certification Program. He reported that the enrollment in the proprietary school sector for 1998 was 52,434 students. About half of those students were resident students enrolled for on-site classroom instruction as opposed to correspondence or distance kinds of education. Approximately 1,200 programs were offered. In 1998 the private career schools graduated 20,849 students. Fifteen percent received degrees. For award year 1997-98 there was approximately $83 million in financial aid awarded to 16,292 recipients. The default rate for the sixteen schools in the program that participate in the Federal Student Loan Programs was 15.9 percent. Forty-one percent of the students were 30 years of age or above. Ninety-five percent were high school graduates or had a GED. Forty-three percent were in degree programs. Fifty-one percent were female and 22 percent were minorities. About 69 percent of graduates are employed in the field and about 10 percent are pursuing additional training.

As of December 1, 1999 there were 115 schools certified to operate under the proprietary school certification program. That figure represents 151 instructional locations. About 37 new applications were received in FY 1999. Fifteen site visits were made last year and the staff processed 269 new or revised programs. Ten schools closed.

The Coordinating Board's primary goals for the Proprietary School Certification Program are to ensure a state system of high-quality nonpublic postsecondary education and to maintain a balance of institutional types and missions across the state system of higher education. In order to adequately pursue these goals, the proprietary school certification program must evolve and change. Over the past several years a number of steps have been taken to improve the performance and responsiveness of the program to the needs and demands of Missouri's citizens. These steps include the implementation of the site visit process, institutional workshops and training sessions, and improved availability of information through program publications and the department's World Wide Web site.

Since last year's report to the board, two initiatives have been particularly important in improving the program's ability to fulfill its dual role of consumer protection and information dissemination. One of those initiatives, increased staffing for the program, has greatly improved the timeliness of review of new applications and improved the level and quality of information new applicants receive during the review process. The additional staff has also made possible expanded liaisons both within the agency and with external groups through the assignment of staff to these functions. The other initiative continues an emphasis on involvement in planning and coordination. Mr. Wade stated that the recognition of student learning that occurs at private career schools, through transfer of credit or other evaluative means, is one of the universal concerns for institutions in this sector. Although the Coordinating Board has made great strides in including the private career schools in its planning and policy development process, much work continues to be needed and the emphasis on partnerships and seamless transitions will be essential to accomplishing that end.

Some of the emerging issues and challenges facing the proprietary school certification program include the changing nature of postsecondary education. Examples of new instructional models and delivery systems that present new challenges to the board's proprietary school certification program and the state's system of higher education described by Mr. Wade include the University of Phoenix, Florida Metropolitan University, and Jones International University. Other issues and challenges include the review and revisions of program regulations, revisions of data collection methods/requirements, and workforce development initiatives. As staff develop strategies to address these challenges, particularly through amendment of program regulations, there will be ongoing involvement of the affected institutions and the Proprietary School Advisory Committee. Additional board action will also be required to accomplish the needed changes.

In conclusion, Mr. Wade observed that the goal of the activities undertaken as part of the proprietary school certification program are to ensure that private career schools are well positioned and capable of fulfilling their institutional mission 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 Missouri citizens.

Appointments to the CBHE Proprietary School Advisory Committee

Mr. Wade noted 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. At the end of 1999, three vacancies will occur on the committee. Those members whose terms of appointment expire include Paul Dodge, Missouri Tech (St. Louis); George Holske, Metro Business College (Cape Girardeau, Rolla, and Jefferson City); and Holly Rose, Tom Rose School of Dog Grooming and Training (High Ridge). Commissioner Stroup has appointed Karen Gotsch, director of Allied Medical College (formerly Al-Med Academy) of St. Louis, which is an associate degree granting institution specializing in the preparation of graduates to enter allied health occupations to serve on the committee. Also appointed was Thomas Hollands, founder, owner, and chief executive officer of the Missouri Welding Institute located in Nevada. Missouri Welding Institute was established in 1994 and is a nondegree granting institution providing training to prepare students to become professional welders. Mr. Holske, who was appointed to complete the remainder of an unexpired term has been reappointed for a full three-year term, is the owner and chief executive officer of Metro Business College, with campuses in Cape Girardeau, Rolla, and Jefferson City. Metro Business College offers associate degree and certificate programs in general business and allied health fields. All appointments become effective January 1, 2000 and extend through December 31, 2002.

Status Report on the Missouri College Guarantee Program

Mr. Dan Peterson stated that in 1998 the Missouri General Assembly passed, and Governor Carnahan signed into law, legislation creating the Missouri College Guarantee Program. The program provides scholarships to eligible Missouri residents attending approved Missouri postsecondary institutions. Scholarship awards are based on high school academic achievement and financial need as defined by statute.

Funding for this program comes from two major sources; the Missouri Gaming Commission Fund and state general revenue appropriations. The Missouri Gaming Commission transferred $9 million into the Missouri College Guarantee Fund for FY 1999 and FY 2000. Another $2.7 million (the Bridge Scholarship Program funds) in general revenue was transferred by the General Assembly for FY 2000. Out of the total $11.7 million currently available in the fund, the FY 2000 appropriations bill makes $4 million available for scholarships for entering freshmen only beginning with the 1999-2000 academic year. For FY 2001, the CBHE has requested that the remaining FY 2000 Bridge Scholarship Program appropriation be transferred to the Missouri College Guarantee Fund. An additional $4.5 million from the Missouri Gaming Commission Fund will be transferred to the fund for FY 2001 making the total amount available in the Missouri College Guarantee Fund for FY 2001 $17.8 million. The phase-in plan that was suggested by the 1999 Missouri General Assembly only allows a FY 2001 maximum spending authority of $7.4 million for eligible freshmen and sophomores. The board has requested that the spending authority be increased to $10.7 for FY 2001 for eligible students in all class levels.

Mr. Peterson reported that the staff utilized existing internal data files and databases to identify and determine student eligibility for the 1999-2000 academic year. As a result, there was not a new paper application process that students or participating postsecondary institutions had to complete to apply for the program. Students with the highest demonstrated financial need based on calculations in accordance with the statutory provisions, have priority when determining program awards. The maximum award for the 1999-2000 academic year is $4,500 which is based on the amount of fees charged a full-time student at the University of Missouri campus with the largest enrollment, and a standard book allowance determined by the Coordinating Board for Higher Education, less any other federal or state need-based, nonrepayable student financial assistance or any A+ Program student financial incentives. Currently 1,723 Missouri residents are receiving $1.8 million in first time College Guarantee Program awards at 56 approved Missouri postsecondary institutions for the fall 1999 semester.

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

Dr. Don Claycomb reported that one of the final processes related to the self study and visit by the North Central Association (NCA) evaluation team in April 2000 is the requirement that Linn State Technical College solicit public comments from external constituents related to the quality of the institution including its academic programs. One of the means that LSTC is using to accomplish this requirement is making an announcement at this meeting and having a printed announcement in the board agenda book. Dr. Claycomb stated that publicizing this requirement through the CBHE meeting is an opportunity to give statewide coverage to an audience who is probably the most interested. He thanked the board for the opportunity.

Proposed 2000 Legislative Initiatives

Dr. Long reported that this item contains a proposed change in the composition of the Board of Regents at Northwest Missouri State University. Northwest currently has a six-member board of regents. All are required to reside within the university's statutory service area with one required to reside within Nodaway County. The proposed change would add two additional members to the board selected from any of the seven college districts as contained in RSMo, Section 174.010, provided that no more than one member be appointed from the same congressional district.

President Dean Hubbard addressed the board and stated that Northwest is not seeking a statewide mission; however, as a result of the board's mission review and enhancement Northwest has assumed a leadership role in certain areas. As a corollary to Northwest's development and sharing with its sister institutions technology enhanced learning modules that enrich and accelerate learning, the institution has become a preferred sight for many high technology industries as they search for computer and other information technology employees. Dr. Hubbard feels Northwest would benefit if an executive from this sector could serve on the Northwest Board of Regents. Another example of an additional board member is related to Northwest's leadership in promoting the use of quality management in education. Some of the Missouri business leaders in quality management could be of great help to Northwest as they build on the Missouri Quality Award and reach for the Malcolm Baldrige National Quality Award. Dr. Hubbard said that Northwest also needs representation from across the state on its board to help develop the Missouri Academy of Math, Science, and Computing that will open on its campus next fall to serve a select group of outstanding high school juniors and seniors from across the state.

Mr. Summers asked Dr. Hubbard if the Northwest Board of Regents has taken action on this item to determine whether or not they feel that it would be appropriate. Dr. Hubbard responded that he has taken this to the Northwest board both in writing and orally and that no one has objected but that they have not taken official action. Mr. Summers stated he would be more comfortable with supporting the issue if the Northwest board would vote positively to proceed with the action. Dr. Hubbard commented that his board has a meeting scheduled for next week and that he will take this matter to them for action at that meeting.

Mr. Ewing 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 subject to approval or recommendation by the Northwest Missouri State University Board of Regents communicated to the CBHE. Dr. Campbell seconded the motion, and it was unanimously passed.

Dr. Long discussed two recommendations from the Report of the Missouri Commission on the Affordability of Higher Education that may yield future legislation. One is that the standardized student renewal criteria which includes the number of credit hours completed and grade point average should be consistent with the administration of all state merit based financial aid programs. This is not a recommendation for consolidation of scholarships but simply a more consistent approach to renewing scholarships. Instead of seeking legislation at this time, the staff would like to have a wider discussion among the higher education community regarding the implications of such an action. The second recommendation is that the state of Missouri coordinate student financial aid programs to increase state funding for need-based financial aid for pursuing the first two years of postsecondary education. The recommendation contains the following principles to be implemented in such programs:

• Financial aid would follow students (Missouri residents only);
• Eligible institutions would include approved two-year, four-year, public, independent, vocational, and private career schools;
• Aid awards would be at least $2,250 initially, and future increases should be linked to an appropriate index;
• An additional $1,000 could be awarded if matched by institutional funds;
• Aid would be applied to part-time students on a proportional basis;
• Aid programs should address the needs of all students; and
• The design of aid programs should minimize the amount of student debt accumulated in the first two years of postsecondary education.

The staff would like to review and evaluate the current scholarships according to the above principles and bring this item to the board at a future date.

Other legislative proposals discussed by Dr. Long included:

• A recommendation from The Report of the Missouri K-16 Coalition that the Missouri General Assembly adopt legislation explicitly identifying the state's interest in raising mathematics achievement levels. Such legislation would establish a grant program through the State Board of Education to help integrate algebraic thinking into elementary, middle, and junior high school classes. Senator Roseann Bentley has expressed interest in introducing that legislation.
• Dr. Long noted that the Department of Elementary and Secondary Education is currently drafting legislation that would make some changes in the current charter school law.
• The Missouri Community College Association has adopted an official position that they are going to pursue legislation to change the way that the local match is calculated on maintenance and repair items.
• Senator Steve Ehlmann and Representative Charles Gross of St. Charles have filed legislation that affects community college funding. The legislation would essentially switch part of the state support for community colleges to an FTE basis based on student count.
• Representative Craig Hosmer of the Springfield area has filed legislation that would require the CBHE to inform the Division of Professional Registration when loans guaranteed by the Missouri Department of Higher Education go into default. The Division of Professional Registration would move to revoke the licenses of individuals who are in default on their student loans.

The Missouri House has appointed an Interim Committee on A+ Schools. Dr. Terry Barnes and Dr. Russ McCampbell presented testimony at that committee's first meeting. The committee will meet again to prepare a report that could be presented to Speaker Gaw prior to the start of the legislative session.

In response to a question from Dr. Campbell there was some discussion on ways that DESE and the CBHE could work together more systematically on legislative issues.

Adjournment

There being no further business to come before the board, the meeting was adjourned at 4:15 p.m.

______________________________
Ray Henry, Chairman

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John Bass, Secretary