Board of Trustees Meeting Minutes
Wednesday, December 18, 1996
World Trade Center
Saint Paul, Minnesota
Trustees Present: Morrie Anderson, Nancy Brataas, Kathleen Caffey, Dennis Dotson, David Erickson, Robert Erickson, Christine Fritsche, Randall Knudson, Stephen L. Maxwell, Gary Mohrenweiser, William Smoley, Denise Stephens, William Ulland, Michael Vekich
Trustees Absent: Archie D. Chelseth
a. Approval of October 16, 1996, Board of Trustees meeting minutes; November 20, 1996, meeting minutes; and December 4, 1996, meeting minutes
Trustee Maxwell moved approval of the: October 16, 1996, Board of Trustees meeting minutes; November 20, 1996, meeting minutes; and December 4, 1996, meeting minutes. Trustee Mohrenweiser seconded.
Chancellor Eaton requested inserting the word "student" before "consultative" in the motion relating to tuition strategy on page four of the December 4, 1996, meeting minutes.
Trustee David Erickson moved to amend the December 4, 1996 meeting minutes by inserting "student" before the word "consultative" in the motion relating to tuition strategy on page four. The amendment was accepted by Trustee Maxwell, and the amended motion passed unanimously.
b. Executive Committee Report, November 6, 1996, and December 4, 1996
Chair Ulland reported that the Executive Committee met on November 6, 1996, and December 4, 1996. On November 6, 1996, the Executive Committee reviewed the October 15-16, 1996, board and committee meeting agendas, the special board meeting on the biennial budget hearing on November 20, 1996, televising board meetings, and scheduling two board retreats with Richard T. Ingram, president of the Association of Governing Boards. The committee also met in closed session to discuss labor negotiations.
Chair Ulland reported that the Executive Committee met again on December 4, 1996, to review the December 17-18, 1996, board and committee meeting agendas, and scheduling a tour of Motorola University (Schaumburg, Illinois) for trustees interested in technological advances in electronic education.
a. Pine Technical College Presentation
Chancellor Eaton introduced President Gene Biever, Pine Technical College. President Biever presented an overview of Pine Technical College, whose mission as an institution of higher education is to serve individuals and society by providing occupational, educational and ethical expertise which enhances personal development, increases economic opportunity for both employees and employers and contributes to the community. Pine Technical College=s vision is to be the leader in providing quality educational services through collaboration and technology. Pine Technical College believes in and is committed to three values:
- Students first
- Personal and professional development for staff
- Partnerships with business, industry, agriculture, agencies and educational institutions.
Pine Technical College has 28 business and industry advisory boards with 448 members. The Employment and Training Center serves five counties and has approximately 1,600 participants. Continuing education courses have served 80 businesses. Secondary partnerships include 20 sites and five colleges participating in the "School to Work Tech Prep" program, "Work Link," and "Postsecondary Education Option" for 200 students. Pine Technical College has 25 distance education sites. Management programs served 355 businesses during 1995-1996.
President Biever explained that through a partnership with the Minnesota Department of Corrections, Pine Technical College has had a working relationship with Moose Lake Correctional Facility at Willow River since 1987, providing hour-based courses, trade and technical programs, two agribusiness programs and one management program currently serving approximately 250 inmates. Discussions are under way with the Minnesota Department of Corrections to determine the educational needs for inmates of a new correctional facility between Pine City and Rush City that is to be completed by spring of 2000.
b. Legislative Update
John Kaul, Deputy to the Chancellor for Government Relations, distributed the new legislative committee assignments for the 1997 Legislature. Mr. Kaul noted that there have been many changes in the make-up of the legislature recently. He also observed that the turnover in the last decade exceeded 71 percent in the House and 61 percent in the Senate.
Mr. Kaul summarized some of the more prominent issues before the Minnesota Legislature this session. Issues competing with MnSCU's legislative agenda include: welfare reform, property tax reform, juvenile crime, K-12 reform, rainy day fund and the stadium. Higher education issues include: metro area, allocations, HESO's role, emergency bonding, Rochester, and the virtual university. Mr. Kaul reported that MnSCU has created an organization, that will be composed of legislators, called "Friends of MnSCU," that would meet three to four times during the legislative session to foster support for MnSCU's agenda.
c. Memo to Minnesota
Chancellor Eaton explained that "Memo to Minnesota" was distributed to persons who attended the MnSCU town meetings in September and October, 1996. The document summarizes the strategic planning process, including discussions at the town meetings and is a summary of the town meetings MnSCU held across the state in September and October 1996.
The Board of Trustees had approved a motion in July 1996 for MnSCU to convene a meeting of leaders of higher education systems to discuss tenure. Chancellor Eaton announced that she and Chair Ulland will attend the tenure meeting hosted by the American Association of State Colleges and Universities in Washington, D.C., on January 17, 1997, and will report back to the board at a future date.
Chancellor Eaton announced that she had spoken with Mark Yudof, incoming president of the University of Minnesota, and looks forward to meeting with him once he has settled into his new post.
a. Educational Policy Committee
- Proposed Amendment to Policy 2.2 - State Residency Requirements for On-Campus Students (second reading) Trustee Anderson moved approval of the amendment to MnSCU policy 2.2 - State Residency Requirements for On-Campus Students and repeals the following three carry-forward policies: CC IV.01.02 (Resident Status), TC 22.214.171.124 (Resident Status) and SU 5.2 (Resident and Non-resident Tuition Status). Trustee Fritsche seconded the motion and it passed unanimously.
- Proposed Policy 3.17 - Degrees, Diplomas and Certificates (second reading)
Trustee Anderson noted a correction to the Technical College carry-forward policy number in the motion on page 54. Trustee Anderson moved approval of policy 3.17 - Degrees, Diplomas and Certificates and repeals Community College carry-forward policy III.02.09, Technical College carry-forward policy 126.96.36.199 & Standards for Awards Policy, and the State University carry-forward policy 4.1. Trustee Vekich seconded and the motion passed unanimously.
- New Program Approval: Master of Science in Engineering at Mankato State University
Trustee Dotson moved approval of Mankato State University's request to offer a new Master of Science Degree in Engineering. Trustee Robert Erickson seconded and the motion passed unanimously.
- Reports to the Legislature
Trustee Anderson announced that the Minnesota Legislature requires MnSCU to submit summary reports on actions taken in a number of different areas as part of its biennial budget submission. Reports in the following nine subject areas were reviewed by the Education Policy Committee: Semester Conversion; Career Information and Placement Data; Work Skills Upgrade Program; Administrator Interaction with Students; Instructional Technology Grants; Akita; Facilities Use; Joint Project for Distance Learning; and Accountability.
Trustee Anderson reported that the committee amended the motion by requesting additional information relating to the Akita report.
Trustee Anderson reported that the Educational Policy Committee moved approval of an amended motion to accept the summary reports by requesting staff to prepare an evaluation of the Akita Campus, due in six months, focusing on: 1) current overhead and instructional operating costs covered by Minnesota and identifying ways to reduce expenses; 2) the accreditation process for recognition by the Japanese Ministry of Education (Monbusho); and 3) potential impact of Minnesota's investment on trade or other economic relationships with Japan.
Trustee Anderson moved approval of the amended motion to accept the summary legislative reports and directs that they be included in the biennial budget submission document. The motion was seconded by Trustee Caffey and carried unanimously.
- Update on SCOPE
Trustee Anderson reported that the SCOPE report would be an agenda item at the January meeting.
b. Fiscal Policy Committee
- Allocation Model
Trustee Vekich reported that the Fiscal Policy Committee recommended approval of an amended motion relating the to the MnSCU Allocation Model.
Upon motion by Trustee Vekich and seconded by Trustee David Erickson, the Board of Trustees unanimously approved the allocation model as recommended by the chancellor and attached as Exhibit A. The Board further directs that the chancellor will return to the Board in September 1997 with a FY1999-2003 plan developed with the following principles: 1) the plan will distribute state appropriation only; tuition revenues will remain with the institutions; 2) the plan will calculate institutional costs on the basis of dollars per weighted student credit hour calculated with state appropriation only: 3) the plan will include provisions to move all institutions offering more than 50,000 weighted student credit hours within +/- 5 percent of the statewide average: 4) the plan will include provisions to move all institutions with less than 50,000 weighted student credit hours within +/- 10 percent of the statewide average; 5) benchmarking information will be collected which allows comparable institutions to be compared on the basis of cost; 6) benchmarking information will allow examination and annual adjustment of the weighting factors used in the model based on actual experience; and finally 7) the plan will provide for an increase in the performance-based and reallocation pools from 3 percent to 6 percent in FY 1999. It is the Board's intention to review the allocation model annually.
- MnSCU 1998-1999 Summary Budget
Vice Chancellor for Finance/Chief Financial Officer Laura King reviewed the MnSCU 1998-1999 Summary Budget. In addition, as requested by the Fiscal Policy Committee, she distributed a letter outlining remaining board agenda items concerning the FY98 budget and legislative events and target dates for the Implementation Plan.
Upon motion by Trustee Vekich, seconded by Trustee Knudson and carried (with Trustee Anderson abstaining), the Board of Trustees approved the MnSCU 1998-1999 Summary Budget.
Trustee Vekich commended the chancellor and staff for their commitment and hard work in preparing MnSCU's first budget.
- Gift of Property to Minneapolis Community College
Minneapolis Community and Technical College president, Diann Schindler, and vice president for administration and planning, Phil Davis, spoke on behalf of the gift of property from the Minneapolis Community and Technical College Foundation to MnSCU. Also speaking on behalf of the gift was Tom Wells, president of the Minneapolis Community and Technical College Foundation and a member of the Wells Family.
President Schindler reported that the property, valued at approximately $350,000, is a mansion adjacent to the Minneapolis Community and Technical College. It is on the National Register of Historic Places and was designed by the same architect who designed the Governor=s mansion in Saint Paul.
Trustee Vekich moved approval to accept the gift of real property, known as the Wells Family College Center, located at 1403 Harmon Place in Minneapolis, from the Minneapolis Community and Technical College Foundation, Inc. Trustee Fritsche seconded and the motion passed unanimously.
- Update on FY 1997 Budget
Chancellor Eaton reviewed the FY 1997 Institutional Update. Total estimated revenues for FY 1997 are $996,801,320. Year-to-date expenditures are $368,439,862, representing 37 percent of the total budget expended. Faculty/staff headcount is 17,572.
Trustee David Erickson commended Vice Chancellor Laura King and staff for all their hard work.
c. Board Operations Committee
- Update on Policy Development
Trustee Smoley reported that John Ostrem, Deputy to the Chancellor for Legislative Affairs, presented an update on board policy development to the Board Operations Committee. As of December 1996, the Board of Trustees has adopted 53 policies and carried forward 63 former policies from the community colleges, technical colleges and state universities. The process of developing, adopting, and distributing policies is a primary responsibility of the Board of Trustees, and requires extensive attention by each of the standing committees of the board. Distribution of policies to colleges and universities is through the MnSCU home page on the Internet.
- Televising Board Meetings
Trustee Smoley reported that the committee heard a report from Chris Roberts, Deputy to the Chancellor for Public Affairs, on televising board meetings. There was a discussion about the costs of televising board meetings, and issues such as openness and access. The cost of a three-hour broadcast is $6,200, while a two-hour broadcast is $4,700, exclusive of any MnSAT overhead or equipment expenses.
Trustee Smoley reported that this item would be on the agenda at the next meeting.
d. Facilities Committee
- Facilities Committee 1997 Work Plan
Trustee Robert Erickson reported that the Facilities Committee 1997 Work Plan is focused on building the core informational and planning foundation necessary to lead MnSCU=s future facilities planning and management efforts. The 1997 work plan spans the calendar year and includes joint meetings with the Fiscal Policy Committee (to develop the preliminary 1998 Capital Budget Guidelines, final 1998 Capital Budget Proposal and Student Housing Development Policy), and Educational Policy Committee (Space Utilization Survey Guidelines).
- Proposed Policy 5.6 - Board Policy on Resource Recovery & Environmentally Responsible Practices (first reading)
Proposed Policy 5.6 - Board Policy on Resource Recovery and Environmentally Responsible Practices requires the colleges and universities to maintain recycling at or above FY 96 levels and continue to implement environmentally responsible practices. The board agreed to change the word "shall", page 150, paragraph 4, first sentence, to "may."
e. Audit Committee
- Status Report on 1996-1997 Audit Plan and Discussion of Audit Planning
Trustee Brataas reported that the Audit Committee briefly reviewed the status report on the 1996-1997 audit plan and discussion of audit planning. Detailed discussion will take place when Lee Kerschner, Executive Vice Chancellor/Chief Operating Officer, is present.
Chancellor Eaton thanked Dr. Dennis Hefner (Vice Chancellor for Academic and Student Affairs) for his service to the system and students and congratulated him on his new position as president of Fredonia College in New York state.
William Ulland, Chair Board of Trustees
Recorded by Inge Chapin