October 2003 Board Meeting Minutes

Wednesday, October 22, 2003
Wells Fargo Place
St. Paul, Minnesota

Trustees Present: Jim Luoma, Chair, Will Antell, Andrew Boss, Mary Choate, Tyler Despins, Cheryl Dickson, Ivan Dusek, Clarence Hightower, Robert Hoffman, Lew Moran, David Paskach, Ann Curme Shaw and Shaun Williams

Absent: Daniel Coborn and Vincent Ijioma


  1. Call to Order
    Chair Jim Luoma called the meeting to order at 1:07 p.m. and reported that a quorum was present. He announced that a closed session for an update on contract negotiations would be added to the agenda.

  2. Chair's Report
    a. Minutes of Board of Trustees Meeting of September 16, 2003
    As there were no corrections to the minutes, Chair Luoma announced that the minutes stand approved as written.

    b. Minutes of Board of Trustees Meeting of September 17, 2003
    As there were no corrections to the minutes, Chair Luoma announced that the minutes stand approved as written.

    c. Draft Minutes of Executive Committee Meeting of October 1, 2003
    Chair Luoma reported that the draft minutes of the Executive Committee meeting are included for information in the Board packet.

    d. Recognition of Immediate Past Chair: Trustee Mary Choate
    Chair Luoma recognized Trustee Mary Choate for her leadership as Chair of the Board during the past two years. He stated that the Board has grown into a policy-making body that has earned the respect of all of the constituents of Minnesota State Colleges and Universities. He thanked Trustee Choate and presented her with a plaque in honor of her service and leadership.

    e. Other
    Chair Luoma stated that there have been discussions with Governor Pawlenty's administration regarding new initiatives, "bold ideas" that will be proposed to the Governor for consideration as he plans legislative and budget strategies for the years 2004 and beyond.

    Chair Luoma stated that many of the Governor's priorities, particularly in the areas of rural revitalization and workforce development, are closely aligned to the priorities of Chancellor McCormick's Work Plan and that these also are the priorities of many legislative leaders.

    Chair Luoma emphasized the importance of working with the Governor and the Legislature stating:

    • It presents the opportunity to reinforce value and service to the people of Minnesota.
    • It creates the potential for new state investment to help implement the strategic plan.
    • It showcases creative, future-oriented thinking and the commitment to students, employers and the taxpayers.

    He added that to seize this opportunity the Chancellor and staff have asked the presidents and others to suggest ideas about how to strengthen the ability to respond to the needs of the state and also to the 235,000 students. They also have solicited the input of state agency heads and many friends in the community, including members of the Citizens Advisory Commission.

    Chair Luoma stated that as we refine our thinking into "bold ideas," it is essential that we leverage the power we have as a system to accomplish what we set out to do. Whatever we propose ought to follow some guiding principles. It should:

    • Make us more nimble and able to respond to immediate needs.
    • Be consistent with our current priorities and direction.
    • Build on our existing strengths and prior investments.
    • Reinforce the need for the restoration of our funding base.

    He added that there are a number of strengths on which to build foundations already in place. For example, online learning is an area where investments have been made and are ready to expand. Likewise, areas such as teacher preparation, workforce development and the ability to respond rapidly to changing needs in critical industries are some of the areas to explore with the Governor and Legislature.

    Chair Luoma asked that all think hard, think big and think creatively. Despite the financial challenges, he believes that now is the time to take the opportunity to step forward.

    Chair Luoma asked the Board members for their support to pursue these conversations over the next several weeks to identify some areas in which Minnesota State Colleges and Universities' interests might align with those of the Governor and Legislature. The Board of Trustees agreed to offer their support.

    f. 50th Anniversary Minnesota's Farm Business Management Program
    Chair Luoma recognized the Minnesota State Colleges and Universities Farm Business Management Program's 50th Anniversary. He spoke of his own experience in farming growing up in northern Minnesota. He stated that part of the mission of Minnesota State Colleges and Universities is to support Minnesota by anticipating and meeting the needs of the current and future workforce. He added that he is very proud of the support to the farming industry upon which Minnesota was built.

    Chancellor McCormick stated that he and Senior Vice Chancellor Linda Baer participated in the 50th anniversary celebration of Farm Business Management Programs on July 6, 2003, at Breezy Point Resort in Brainerd, Minnesota. Also attending the celebration were Speaker Steve Sviggum, Minnesota House of Representatives; Senator LeRoy Stumpf, Minnesota Senate; and Mr. Steve Wenzel, State Director, USDA Rural Development. At the celebration, Speaker Sviggum and Senator Stumpf presented special resolutions in honor of the anniversary.

    Chancellor McCormick introduced Senator LeRoy Stumpf, Mr. Steve Wenzel, and Mr. Jim Boerboom, Assistant Commissioner, Minnesota Department of Agriculture.

    Senator Stumpf thanked the Board and Chancellor McCormick and stated that he was pleased to be present on behalf of the Minnesota Senate. Senator Stumpf stated that the Farm Business Management Program has had much value in greater Minnesota. He commented that he was a participant in the program and found it very useful. He added that the farm economy throughout the nation dropped significantly during the early 1970's and many farmers sought help from the program to become more efficient and productive.

    Senator Stumpf read the Senate resolution dated July 6, 2003, commemorating Farm Business Management Education through Minnesota State Colleges and Universities, observing 50 years of Farm Management for Minnesota farmers and their families.

    Chancellor McCormick introduced Mr. Steve Wentzel. Mr. Wentzel stated that it was an honor and privilege to attend and added that he grew up on a family dairy farm that is still in operation today. He read a resolution signed by Speaker of the House, Steve Sviggum, which was presented at the July 6, 2003, celebration.

    Mr. Wentzel also read a letter from the President of the United States, dated April 22, 2003, congratulating Minnesota State Colleges and Universities in recognition of the 50th anniversary of the Farm Business Management Program.

    Vice Chair Robert Hoffman introduced Mr. Jim Boerboom. Mr. Boerboom stated that he has had many personal experiences with the Farm Business Management Program. He added that it is a model that is unique in Minnesota and will continue for many years to come. Mr. Boerboom read a letter from Minnesota Governor Tim Pawlenty that was presented at the 50th Anniversary celebration in July.

    Chancellor McCormick introduced Senior Vice Chancellor Linda Baer. Senior Vice Chancellor Baer stated that the Farm Business Management Program serves approximately 4,000 students per year. Ninety-two percent of farmers in the program recommend the program to other farmers. She stated that students and their lenders reported an average annual increase in net farm income of $5,000 per farm as a direct and immediate result of their participation in the program. Senior Vice Chancellor Baer introduced Mr. John Murray, state director of management programs, who has been with the program for 37 of the program's first 50 years.

    Mr. Murray thanked the Board and Chancellor McCormick and others involved in the celebration of the program. He stated that the program was recognized at the Association of Career and Technical Education with an award of merit.

    Senior Vice Chancellor Baer concluded the recognition stating that this is a great example of how Minnesota's investment in people has contributed to a better, stronger Minnesota.

  3. Trustee Reports
    Trustee Ivan Dusek reported that he attended the Association of Community College Trustees (ACCT) Annual Convention 2003, September 17-20, in Denver, Colorado.

    Trustee Ann Curme Shaw reported that she also attended the ACCT Annual Convention 2003.

    Trustee Cheryl Dickson reported that she attended the ACCT Annual Convention 2003. She also took part in the Academic Quality Improvement Program (AQIP) meeting with Hennepin Technical College in Chicago, Illinois, October 16-18.

    Trustee Mary Choate reported her attendance at the ACCT Annual Convention and gave a presentation with Chancellor McCormick entitled, Promote or Perish: Advocacy in Troubled Times. Trustee Choate added that Representative Joe Opatz was present at the convention and joined in the presentation with Trustee Choate and Chancellor McCormick.

    Trustee Tyler Despins reported that he attended the Minnesota State University Student Association (MSUSA) Fall Meeting in Winona on September 20-21.

  4. Chancellor's Comments
    Chancellor McCormick welcomed the public and members of the Minnesota State Colleges and Universities System who were present at the Board meeting. He commented that the legislators he has visited have been supportive of the Farm Business Management Program. He acknowledged and thanked Deena Allen, Associate Vice Chancellor, Academic Resources, for her advocacy and support to the program, and he also recognized and thanked Mr. John Murray for his dedication and work.

    Chancellor McCormick presented the first quarterly update for the academic year 2003-2004. He stated that a summary is enclosed in the Board packet, but a detailed 150-page report is available at request. Chancellor McCormick added that each president is closely following the Strategic Plan toward meeting the objectives of the report.

    Chancellor McCormick spoke of the budget situation adding that he has met with each president and commented on their perseverance and renewed sense of energy and enthusiasm to move forward. He added that Senior Vice Chancellor Baer and staff are working very hard on forming new ideas growing out of the Strategic Plan. He commented that the system is becoming more nationally recognized in part due to the participation of the Board at the conventions and seminars, noting that Trustee Mary Choate is a Board member for the Association of Community College Trustees (ACCT).

    Chancellor McCormick commented on the campus and business visits stating the importance of gaining the support of the business community especially in the coming fiscal year.

    Chancellor McCormick stated that Minnesota State Colleges and Universities is a high quality, low cost provider. Enrollment has increased by 3.3 percent in the fall of 2003 compared to 2002. He stated that with the budget cuts, more must be accomplished with less. He added that there is a need to better advertise the Minnesota State Colleges and Universities System.

    Chancellor McCormick explained that he would briefly review the highlights of the report.

    • The System has increased its efforts to ensure a welcoming campus climate and higher rates of recruitment and retention.
    • There is improved coordination of Federal relations that has led to increased funding.
    • The presidents have expanded private fund-raising through external sources making it a high priority on their work plan.
    • Services to students from pre-school through college have been improved by means of the P-12 schools, the Department of Education and others.
    • The System continues to take significant roles in community development and economic vitality.
    • The System continues to be responsive to the state's workforce needs and the enhancement of workforce effectiveness.
    • Institutions are continuing to collaborate across a wide range of levels to improve the quality of programs and services.
    • Numerous institutions are setting aside dollars for classroom technology and new initiatives.
  5. Joint Council of Student Associations
    a. Minnesota State College Student Association
    Ms. Missi McLaren, President, Minnesota State College Student Association (MSCSA), addressed the Board of Trustees.

    b. Minnesota State University Student Association
    Mr. Sam Edmunds, State Chair, Minnesota State University Student Association (MSUSA), addressed the Board of Trustees.
  6. Minnesota State Colleges and Universities' Bargaining Units
    a. American Federation of State, County and Municipal Employees

    Ms. Karen Foreman, President, American Federation of State, County and Municipal Employees (AFSCME), addressed the Board of Trustees.

    b. Minnesota State University Association of Administrative and Service Faculty
    Ms. Jeanne Cornish, President, Minnesota State University Association of Administrative and Service Faculty (MSUAASF), addressed the Board of Trustees.

    c. Inter Faculty Organization
    Mr. Jim Pehler, President, Inter Faculty Organization (IFO), addressed the Board of Trustees.

    d. Minnesota State College Faculty
    Mr. Larry Oveson, Co-President, Minnesota State College Faculty (MSCF), addressed the Board of Trustees.
  7. Consent Agenda
    There were no items for the consent agenda.
  8. Board Standing Committee Reports
    a. Finance/Facilities Policy Committee, Andrew Boss, Chair
    1. Finance/Facilities Division Update
      Committee Chair Andrew Boss reported that the committee heard an update from Vice Chancellor Laura King on the negotiations and the due diligence process on the acquisition of the property for Minneapolis Community and Technical College and Metropolitan State University. The committee heard that the second phase of the administrative systems project is continuing which focuses on alternative options for Human Resources and payroll systems. The Seamless and Minnesota Online projects are continuing. Capital budget is a top legislative priority, and materials are being prepared for the various bonding projects.
    2. Allocation Framework Tutorial
      Committee Chair Boss reported that the committee heard a presentation on the allocation framework and had a discussion on the issues surrounding the implementation of the allocation framework. Over the next several months, a strategy to implement the allocation framework will be developed and presented to the Board for review and approval. Chair Boss stated that a suggestion was made that there be one-on-one visits between the Trustees and Finance/Facilities staff to gain more detail on the allocation framework.

    b. Joint Meeting of Education Policy and Finance/Facilities Policy Committees, Will Antell and Andrew Boss, Co-Chairs
    1. Higher Education Funding and Financial Aid
      Committee Chair Will Antell reported that the committee heard a report from Associate Vice Chancellor Mike López on the higher education funding, tuition and financial aid issues. A resolution has been prepared for consideration, and Trustee Ann Curme Shaw will review and suggest changes to the resolution for consideration at the next Joint Meeting of Education Policy and Finance/Facilities Policy Committees.

    c. Human Resources Policy Committee, Ivan Dusek, Chair
    1. Human Resources Update
      Committee Chair Ivan Dusek reported that committee heard an update from Vice Chancellor William Tschida on the search for a president of Normandale Community College. A search committee has been named and will be chaired by President Cheryl Frank of Inver Hills Community College. There was also an update on negotiations with the bargaining units.

    d. Educational Policy Committee, Will Antell, Chair
    1. Academic and Student Affairs Update
      Committee Chair Will Antell reported that the committee heard an update from Senior Vice Chancellor Baer on the Academic and Student Affairs division. St. Cloud State University received a $5 million dollar teacher education grant along with school district 742. Inver Hills Community College received a grant to accelerate the post-secondary learning for urban schools. Dakota County Technical College received a $400,000 national science foundation grant.
    2. Academic and Student Affairs Annual Progress Report
      Committee Chair Antell reported the committee heard a summary and overview from Senior Vice Chancellor Baer on the Academic and Student Affairs annual progress report and had a discussion highlighting future goals and priorities.
    3. Proposed Amendment to Policy 2.6, Intercollegiate Athletics (First Reading)
      Committee Chair Antell reported that the committee reviewed the proposed amendment to Policy 2.6, Intercollegiate Athletics. This will be an action item at the December meeting.
    4. Proposed Amendment to Policy 3.10, Academic Program Improvement, and Deletion of Policy 3.11, Academic Program Accountability
      Committee Chair Antell reported that the committee reviewed the proposed amendment and deletion to Policy 3.11, Academic Program Accountability. This will be an action item at the December meeting.
    5. Charter Schools Update
      Committee Chair Antell reported that the committee heard an update and had a discussion on the issues of the charter schools.
    6. Financial Aid Satisfactory Academic Progress
      Committee Chair Antell reported that the committee reviewed an action plan and risk assessment for responding to financial aid satisfactory academic progress from Associate Vice Chancellor Mike López and Director of Internal Auditing John Asmussen.
    7. Nursing and Healthcare Education
      Committee Chair Antell reported that the committee had a discussion regarding a $6 million funding request to the state legislature to increase enrollment in nursing and healthcare education programs.

    e. Advancement Committee, Cheryl Dickson, Chair
    1. Advancement Update
      Committee Chair Cheryl Dickson reported that the committee heard an update from Deputy to the Chancellor John Ostrem on the recent travels with Chancellor McCormick to the business communities and campuses. There was an update on the bonding visits with legislators and a report on the recent public relations and marketing awards won by the colleges, universities and Office of the Chancellor. There was a final report on Trustee Emeritus Bob Erickson's successful bike tour to raise funds for part-time students. There was a report from President Joseph Sertich of the Northeast Higher Education District on the priorities of the Leadership Council Advancement Committee.
    2. Fund-Raising Staffing and Resources
      Committee Chair Dickson reported that the committee heard a report from Vice Chancellor Tschida on staffing for the Minnesota State Colleges and Universities Foundation.
    3. Proposed Amendment to Board Policy 8.3, College or University-Related Foundations (First Reading)
      Committee Chair Dickson reported that the committee reviewed the proposed amendment to Board Policy 8.3, College or University-Related Foundations. This will be an action item at the December meeting.

    f. Technology Committee, Lew Moran, Chair
    1. Information Technology Update
      Committee Chair Lew Moran reported that the committee heard an update from Vice Chancellor Ken Niemi on the current issues related to Information Technology.
    2. Instructional Management System Contract Update
      Committee Chair Moran reported that the committee heard an update from Vice Chancellor Niemi on the current status of the instructional management systems (IMS) initiative, focusing particularly on the Desire2Learn contract negotiations and implementation.
    3. Security Update
      Committee Chair Moran reported that the committee heard a security update from ITS Security Director Bev Schuft.
  9. Requests by Individuals to Address the Board
    There were no requests to address the Board.
  10. Other Business
    Following a brief recess the Board of Trustees convened in a closed session to hear an update on bargaining negotiations. No action was taken.
  11. Adjournment
    The Board of Trustees reconvened in open meeting at the conclusion of the closed session, and Chair Luoma adjourned the meeting by consensus at 4:05 p.m.

Recorded by Ingeborg K. Chapin
Board Secretary