January 2003
Board Meeting Minutes

Thursday, January 23, 2003
World Trade Center
St. Paul, Minnesota

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

Absent: Mary Choate, Daniel Coborn and Vincent Ijioma

1. Call to Order
   Vice Chair Jim Luoma chaired the meeting in the absence of Chair Mary Choate. Vice Chair Luoma called the meeting to order at 2:00 p.m. and reported that a quorum was present. There were no changes to the agenda.
   

2. Chair's Report

   a. Presentation of Gifts to Minnesota State Colleges and Universities
   Vice Chair Luoma presided over the presentation of gifts to Minnesota State Colleges and Universities.
   
   Lakota Ceremonial Shirt
   In the fall of 2002, Dr. Steven Crow, Saint Cloud State University, presented Chancellor McCormick with a Lakota Ceremonial Shirt, which was made by artist and historian Charles Fast Horse, a member of the Oglala Sioux tribe. The shirt, which is a beautiful work of art, will remain a gift to all who are a part of Minnesota State Colleges and Universities, including our trustees, administrators, students, staff, faculty and alumni. Mr. Fast Horse addressed the Board of Trustees and Chancellor McCormick and thanked them for honoring his work. Chancellor McCormick accepted the shirt on behalf of Minnesota State Colleges and Universities.
   
   Bookcase Designed and Crafted by American Federation of State, County and Municipal Employees
   With materials donated by the American Federation of State, County, and Municipal Employees (AFSCME) Council 6, and labor donated by Rochester Community and Technical College, Employees Vern Bell and Larry Tucker designed and built a custom-made bookshelf that will be located on the fourth floor of the Office of the Chancellor. The bookshelf will showcase publications by the many talented staff, students, alumni and faculty of the Minnesota State Colleges and Universities. Mr. Bell and Mr. Tucker addressed the Board of Trustees and Chancellor McCormick, noting the contribution of several individuals. Chancellor McCormick accepted the bookshelf on behalf of Minnesota State Colleges and Universities.
   
   *b. Board Approval of Honorary Memberships
   Vice Chair Luoma explained that Chancellor McCormick has been awarded two honorary memberships in local organizations, the Minneapolis Club and the Town and Country Club, because of his role as chancellor of the Minnesota State Colleges and Universities system. In order to comply with Minnesota Statutes section 43A.38, it is requested that the Board of Trustees authorize acceptance of these honorary memberships by the chancellor on behalf of Minnesota State Colleges and Universities.
   
   Trustee Michael Redlinger moved that on behalf of Minnesota State Colleges and Universities, Chancellor James H. McCormick is authorized to accept honorary memberships with the Minneapolis Club and the Town and Country Club, and to pay usage expenses, including authorized meals and meeting rooms, and minimal fees associated with the memberships, in accordance with system policy and procedure. These memberships shall be used solely in support of Minnesota State Colleges and Universities, and shall not be available for personal use by the chancellor or others. The chancellor shall provide an accounting annually to the Board. Except as otherwise determined by the Board, this approval shall continue in effect for any subsequent annual renewals of the honorary memberships during the appointment of Chancellor McCormick. Trustee Andrew Boss seconded and the motion carried unanimously.
   
   c. Minutes of the Board of Trustees Meeting of December 18, 2002
   As there were no corrections or additions to the minutes, Vice Chair Luoma announced that the minutes stand approved as written.
   
   d. Report of the Executive Committee Meeting of January 8, 2003
   Vice Chair Luoma reported that the Executive Committee met on January 8, 2003. There were no action items. The committee reviewed the draft agenda for the January Board of Trustees meeting and discussed the plans for the February 19-20, 2003, Board of Trustees retreat. Chancellor McCormick reported on budget concerns, campus visits and his continuing visits with legislators. President Bradshaw reported on the Leadership Council activities.
   
   e. Other
   Vice Chair Luoma reported that the "Sixth Annual Foundation Thank You Luncheon" was held today, January 23, 2003, at 317 Washington Street in Saint Paul. Vice Chair Luoma thanked the Office of the Chancellor staff and the presidents for their role in planning the luncheon.
   

3. Trustee Reports
   Trustee Ann Curme Shaw reported attending a meeting of the House Higher Education Finance Committee along with Chair Choate on January 13, 2003. Trustee Shaw also commented that she would like to connect the Academic and Student Affairs division with the Junior Achievement program for volunteers to interface with students in teacher education degree programs.
   

4. Chancellor's Comments: James McCormick.
   Chancellor McCormick announced that the current financial conditions facing Minnesota State Colleges and Universities are the most challenging in the recent history of Minnesota in both higher education and in the State of Minnesota.
   
   Chancellor McCormick stated that the demand for higher education has never been greater. Enrollment is far ahead of the previous year. Minnesota State Colleges and Universities will address a reduction with a combination of cuts at all levels and spending reserves. Chancellor McCormick commented that the institutions will likely spend most of their reserves to get through the end of the year. Institutions that do not have sufficient reserves will need to make administrative cuts.
   
   Chancellor McCormick stated that the system is not alone in facing this dilemma. He has visited with colleagues across the country and will assist, consult and borrow to acquire the best tactics demonstrated by our sister systems as they experience similar difficulties.
   
   a. Chancellor's Quarterly Report
   Chancellor McCormick presented the Quarterly Report for the quarter ended December 31, 2002.
   
   Chancellor McCormick stated that despite the budget difficulties, he will move ahead with the agenda committed to last July, remaining on track for this fiscal year. Tuition will not increase this year and hopefully there will be no lay-offs this year or the next.
   
   Chancellor McCormick commented on the leadership involvement from the presidents, faculty and staff as they strive to accomplish the goals and commitments.
   
   Chancellor McCormick stated that while the next biennium would be difficult, it is important to keep the work plan and vision in place as we invest in our most precious resource, the people of Minnesota. Chancellor McCormick commented that he is grateful for the support he receives from the members of the Board.
   
   

5. Joint Council of Student Associations
   The following representatives of student associations addressed the Board of Trustees: Amy Sowada, Director of Communications, Minnesota State College Student Association (MSCSA); Brent Glass, Executive Director, MSCSA; Yorgun Marcel, Chair, Minnesota State University Student Association (MSUSA); and Frank Viggiano, Executive Director, MSUSA.
   

6. Minnesota State Colleges and Universities' Bargaining Units
   The following representatives of the bargaining units addressed the Board of Trustees: Karen Foreman, President, American Federation of State, County and Municipal Employees' (AFSCME) Minnesota State Colleges and Universities Policy Committee; Jeanne Cornish, President, Minnesota State University Association of Administrative and Service Faculty (MSUAASF).
   

7. Consent Agenda
   a. Transfer of Facilities to the Revenue Fund
   b. Northwest Technical College Reorganization
   
   Trustee Will Antell moved approval of the Consent Agenda. Trustee Robert Hoffman seconded and the Consent Agenda was approved unanimously..
   

8. Board Standing Committee Reports

   a. Finance/Facilities Policy Committee, Andrew Boss, Chair

   1. FY 2004 Revenue Fund Fees and Spending Plan (First Reading)
      Committee Chair Andrew Boss reported that the committee reviewed the FY 2004 revenue fund fees and spending plan. This will be an action item at the March Board meeting.
      

   2. FY 2004-2009 Capital Budget Update
      Committee Chair Boss reported that the committee reviewed the FY 2004-2009 capital budget update.
      

   3. Hibbing Community College Campus Master Plan
      Committee Chair Boss reported that the committee reviewed Hibbing Community College's campus master plan.
      

   4. FY 2002 Audited Financial Statements
      Committee Chair Boss reported that committee reviewed the FY 2002 audited financial statements and that the committee will review the statements in more depth at the March Board meeting.

   
   b. Human Resources Policy Committee, Ivan Dusek, Chair

   1. Personnel Implications of the Budget Forecast
      Committee Chair Ivan Dusek reported that Vice Chancellor Bill Tschida provided a summary of the budget forecast as it related to personnel.

   
   c. Technology Committee, Lew Moran, Chair

   1. Minnesota State Colleges and Universities Information Technology Infrastructure Planning
      Committee Chair Lew Moran reported that the committee reviewed the information technology infrastructure planning process.
      
      
   2. The Johnson Center for Virtual Reality at Pine Technical College
      Committee Chair Moran reported that the committee received a demonstration of The Johnson Center for Virtual Reality.

   
   d. Educational Policy Committee, Will Antell, Chair

   1. Academic and Student Affairs Update
      Committee Chair Will Antell reported that the committee received an update on Academic and Student Affairs by Linda Baer, Senior Vice Chancellor for Academic and Student Affairs.
      
      
   2. Postsecondary Planning: A Joint Report
      Committee Chair Antell reported that the committee reviewed the postsecondary planning joint report.
      
      
   3. Accountability Report to the Minnesota Legislature
      Committee Chair Antell reported the committee reviewed a report on accountability to the Minnesota Legislature.
      
      
   4. Proposed Amendment to Policy 3.12, Academic Program Suspension and Reinstatement; to Include Deletion of Policy 3.13, Academic Program Closure and Amendment to Policy 3.14, Program Approval (First Reading)
      Committee Chair Antell reported that the committee reviewed the proposed amendment to Policy 3.12, Academic Program Suspension and Reinstatement to Include Deletion of Policy 3.13, Academic Program Closure and Amendment to Policy 3.14, Program Approval. This will be an action item at the March Board meeting.
      
      
   5. Proposed Amendment to Policy 3.17, Degrees, Diplomas and Certificates (First Reading)
      Committee Chair Antell reported that the committee reviewed the proposed amendment to Policy 3.17, Degrees, Diplomas and Certificates. This will be an action item at the March Board meeting.

   
   e. Advancement Committee, Robert Hoffman, Chair

   1. State Legislative Session Committee
      Chair Robert Hoffman reported that the committee received an update on the legislative session from John Ostrem, Deputy to the Chancellor for Legislative Affairs.
      
      
   2. Legislative Session Public Relations Plan
      Committee Chair Hoffman reported that the committee received a presentation from Associate Vice Chancellor Linda Kohl on the public relations plan.
      
      
   3. Gifts and Grants Report
      Committee Chair Hoffman reported that the committee received the gifts and grants report.
      
      
   4. Federal Relations Update
      Committee Chair Hoffman reported that the committee received a report on the Federal relations activity.
      
      

9. Requests by Individuals to Address the Board
   There were no requests to address the Board.
   
   

10. Other Business
    There was no other business to come before the Board of Trustees.
    

11. Adjournment
    Vice Chair Luoma adjourned the meeting by consensus at 3:21 p.m.