September 2003 Board Meeting Minutes

Wednesday, September 17, 2003
Wells Fargo Place
St. Paul, Minnesota

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

Absent: Mary Choate

Call to Order
Chair Jim Luoma called the meeting to order at 1:05 p.m. and reported that a quorum was present. There were no changes to the agenda.
Chair's Report
a. Minutes of Board of Trustees Meeting of July 16, 2003
As there were no corrections to the minutes, Chair Luoma announced that the minutes stand approved as written.

b. Draft Minutes of Executive Committee Meeting of September 3, 2003
Chair Luoma reported that the draft minutes of the Executive Committee meeting are included for information in the Board packet.

c. Recognition of Trustee Emeritus Michael Redlinger
In recognition of his service and leadership on behalf of the students of Minnesota State Colleges and Universities from July 2001 through August 2003, Michael Redlinger was officially declared Trustee Emeritus. Chair Luoma also presented him with a plaque for his service as treasurer of the Board. Trustee Emeritus Redlinger stated that it has been a rewarding opportunity to serve as a Board member of Minnesota State Colleges and Universities and thanked the Board members and Chancellor McCormick for their support.

d. Other
Chair Luoma reported that Trustees Tyler Despins, Clarence Hightower and Ann Curme Shaw volunteered to participate in data testing for Internal Audit's Board-Level Indicators Report.

Chair Luoma reported that Trustees Mary Choate, Cheryl Dickson, Robert Hoffman and Ann Curme Shaw, along with Chancellor McCormick, will attend the Association of Community College Trustees (ACCT) Annual Convention in Denver, Colorado on September 17-20, 2003. Chair Luoma stated that Trustee Choate and Chancellor McCormick will give a presentation at the convention entitled, Promote or Perish: Advocacy in Troubled Times.

Chair Luoma reported that Trustee Andrew Boss is one of seven volunteers who will be inducted for serving as outstanding volunteers within the Twin Cities at the 2003 Twin Citian Volunteer Hall of Fame. Chair Luoma and Trustees Dickson and Shaw will be present to represent the Board of Trustees.
Trustee Reports
Trustee Tyler Despins thanked Chancellor McCormick and the Board for the warm welcome he has received. He also thanked Trustee Emeritus Redlinger for his support.

Trustee Vincent Ijioma reported that he attended Anoka Technical College for the Administrative Led Days on August 18, 2003.
Chancellor's Comments
Chancellor McCormick acknowledged and thanked Trustee Emeritus Redlinger for his contributions and welcomed newly appointed Trustee Tyler Despins. He also welcomed newly appointed Presidents Dr. Douglas Allen of Ridgewater College and Dr. Terrance Leas of Riverland Community College to their first meeting of the academic year.

Chancellor McCormick commented that he felt energized and excited at the possibilities of a new academic year. He emphasized what a privilege it is for him to serve the 235,000 students of Minnesota State Colleges and Universities.

Chancellor McCormick stated that the impact of the $191.5 million dollar cut to the state appropriation has been extremely difficult. He added that the presidents have struggled to balance their budgets, making difficult decisions with determination to serve well and be accountable with a positive outlook for the future.

Chancellor McCormick stated that he has met with Governor Tim Pawlenty to discuss strategic planning and progress on the Work Plan.

Chancellor McCormick spoke of the several challenges facing Minnesota State Colleges and Universities. He added that it is important to remain steadfast on the issue of high-tuition, high-financial aid. He added that this challenge reflects the plan-based interest in advocating for continued access and improvement of opportunities for all students, particularly those under-represented in higher education and those new to Minnesota. He added that this idea emerged as number one on the Citizens Advisory Commission report two years ago and has remained a focus of the strategic plan.

A second challenge is how to serve better the Twin Cities metropolitan area. The Chancellor added that he has had several discussions with presidents and that consensus is important to get past internal competition and to work together for the best use of resources on behalf of the students. Chancellor McCormick commented on the problem of how to serve the influx of what is predicted to be one million more citizens in the seven-county areas in the next twenty years. He added that this is an example of the Access and Opportunity issue challenging the institutions to meet the needs of the students and stakeholders. He said that great progress has been made with the Metropolitan Alliance and with the help of the institutions when appropriate.

Chancellor McCormick indicated that a third challenge is the idea of regionalization. He added that creating different regions for different purposes and relationships depends on the needs and the relationships of the campuses. Geographical regions may be right for some purposes but may be communities of common interest for other purposes. For instance, the need to meet the health care issue is a bigger issue than just one region. Chancellor McCormick commented that there has been much discussion on this issue, emphasizing the need to move forward.

Chancellor McCormick stated that a fourth challenge is system versus institutional autonomy. He said that there is a need to identify the areas to manage institutionally or campus by campus. He added that his hope is that the campuses become more diverse than alike, creating an energized system of diversity and uniqueness among campuses while at the same time having the power and advantage of an integrated system. The Chancellor added that progress has been made, but one of the challenges is sorting out the proper balance of functioning as a system and campuses acting with autonomy.

A fifth challenge voiced by Chancellor McCormick is the area of fundraising. Chancellor McCormick commented that he is encouraged by the consensus among the Minnesota State Colleges and Universities Foundation, the presidents and Office of the Chancellor staff on the approach to increase the capacity for fundraising throughout the system. Chancellor McCormick added that with the financial conditions of the State, raising funds from non-state sources has become increasingly important. The collaborative fundraising model presented by the Advancement Committee is a significant step in the right direction. Chancellor McCormick added that his intention is to join together with the Minnesota State Colleges and Universities Foundation Board to lead, model and motivate in addressing this issue.

Chancellor McCormick reported that other challenges requiring attention are Governor Pawlenty's job opportunity building zone and the importance of the P-16 initiative. The job initiative presents opportunities to stimulate economic development in greater Minnesota. In order to accomplish the goals of the project, the State will need programs that Minnesota State Colleges and Universities offer to produce the skills of the educated workers in revitalizing the economy. Chancellor McCormick added that it will require involvement and partnership with other higher education institutions to accomplish goals in the development of the economic vitality of the communities.

Chancellor McCormick commented on the growing importance of the P-16 initiative of education from pre-school through college to improve student preparation for and transition into college and work. Training the future teachers and educational leaders prioritizes the focus of this initiative.

Chancellor McCormick said that the session with Dr. Don Norris provided an interesting vehicle for the Board to learn about the role of technology in future educational endeavors. More in-depth discussions of the key issues will be forthcoming to provide insights in determining the direction of policy initiatives. Chancellor McCormick complimented Senior Vice Chancellor Baer for bringing the educational discussion to the Board.

Chancellor McCormick thanked everyone involved in the process of the acquisition of the Billy Graham Evangelical Association property located at 1300 Harmon Place in Minneapolis.
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, and Mr. Frank Viggiano, Executive Director, Minnesota State University Student Association (MSUSA), addressed the Board of Trustees.
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
Mr. Tom Greer, Vice 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.
Consent Agenda
a. Winona State University Real Property Acquisition
b. Minneapolis Community and Technical College Real Property Acquisition
c. Leadership Employment Agreement Authorization

Trustee Will Antell requested that consent agenda item a. Winona State University Real Property Acquisition be removed from the Consent Agenda. Chair Luoma stated that the item was removed from the consent agenda.

Trustee Ivan Dusek moved approval of agenda items b. and c. on the consent agenda. Trustee Robert Hoffman seconded and the Consent Agenda was approved unanimously.

Trustee Robert Hoffman moved approval for discussion of agenda item a. Winona State University Real Property Acquisition. Trustee Cheryl Dickson seconded and the motion carried unanimously.

Trustee Antell spoke against the acquisition of Winona State University Real Property. He was opposed to operating dollars being spent on capital projects. He further stated that he had hoped there would have been other ways to finance this acquisition as he feels it is a good purchase of property for Winona State University.

Following continued discussion the question was called. The motion carried with ten in favor (Trustees Daniel Coborn, Tyler Despins, Cheryl Dickson, Ivan Dusek, Robert Hoffman, Vincent Ijioma, Lew Moran, David Paskach, Ann Curme Shaw and Chair Luoma) two opposed (Trustees Will Antell and Clarence Hightower) and one abstention (Trustee Shaun Williams) (Trustee Boss departed the meeting prior to the vote).
Board Standing Committee Reports
a. Advancement Committee, Cheryl Dickson, Chair
1. Advancement Update
  Committee Chair Cheryl Dickson reported that the committee heard an update from Associate Vice Chancellor Linda Kohl and Deputy to the Chancellor John Ostrem. The update included a preview of new publications from the Public Affairs division and discussion and plans for the 2004 legislative session.
2. Recommendations for Fundraising Efforts at the System and Campus Levels
  Committee Chair Dickson reported that the committee heard a report and a plan of action from Minnesota State Colleges and Universities Foundation Chair Lee Hanson, former Chair Clint Larson and Trustee Emeritus Robert Erickson. Also presenting was Mr. James P. Daniel of Bentz Whaley Flessner, who conducted a study to examine opportunities for fundraising at the central system level.
  
  Chair Dickson moved to suspend the rules for action on this item. Trustee Williams seconded and the rules were suspended.
  
  Chair Dickson moved that:
  Recognizing the support of the foundation's work by the Chancellor and the Leadership Council, the Board of Trustees applauds and encourages the work of the Minnesota State Colleges and Universities Foundation.
  
  Further, the Board commends the collaborative fundraising proposal outlined in the foundation's report; and therefore, the Board of Trustees endorses the collaborative fundraising proposal outlined in the Minnesota State Colleges and Universities Foundation's report. Trustee Williams seconded and the motion carried.
3. Campus Visits, Business Leader Visits, Bonding Project Visits
  Committee Chair Dickson reported that the committee reviewed schedules and detailed information for visits to campuses, business leaders, bonding projects and legislative visits.
b. 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 current activities of the Information Technology Systems division.
2. Instructional Management System Recommendation
  Committee Chair Moran reported that the committee received a detailed presentation on both the selection process and the product selected for an instructional management system. Committee Chair Moran stated that the product and system selected, Desire2Learn, is the most capable and least expensive. He added that there will be a two-year schedule of implementation, with several institutions taking the lead to implement immediately.
c. Joint Meeting of Educational Policy and Finance/Facilities Policy Committees, Will Antell and Andrew Boss, Co-Chairs
1. Higher Education Funding and Financial Aid
  Committee Co-Chair Will Antell reported that the committee received an overview from Associate Vice Chancellor for Student Affairs Mike López, on higher education funding and financial aid in Minnesota. Mr. Bill Blazar, Senior Vice President, Minnesota Chamber of Commerce presented arguments in favor of the Minnesota Chamber's proposal to reduce legislative appropriations to public higher education
2. systems.
d. Educational Policy Committee, Will Antell, Chair
1. Academic and Student Affairs Update
  Committee Chair Will Antell reported that due to time constraints, Senior Vice Chancellor Linda Baer presented a brief update on Academic and Student Affairs.
2. Charter Schools Report
  Committee Chair Antell reported the committee heard a report from Senior Vice Chancellor Baer on the status of charter schools in Minnesota. Committee Chair Antell stated that the number of charter schools is decreasing and that this should be monitored closely. Senior Vice Chancellor Baer will provide additional information at the October meeting.
3. Metro Alliance Report: Working Together, 2003 Progress Report
  Committee Chair Antell reported that the committee heard a report on the most recent work and accomplishments of the Metro Alliance. Committee Chair Antell stated that there will be additional reports to the Board at future meetings.
4. Diversity and Anti-Racism Initiative Grant Update
  Committee Chair Antell reported that the committee heard an update by Associate Vice Chancellor Dolores Fridge on a grant received from the Otto Bremer Foundation on diversity and anti-racism.
5. Academic and Student Affairs Annual Progress Report
  Committee Chair Antell reported that due to time constraints, the Academic and Student Affairs Annual Progress report will be presented at the October meeting.
6. Minnesota National Guard Online Update
  Committee Chair Antell reported the committee heard an update on the progress of the Minnesota National Guard Online project. He commended the project that offers online education as an excellent opportunity for the Minnesota National Guard members while they are deployed on peacekeeping missions.
7. Sabbatical Report
  Committee Chair Antell reported that due to time constraints, Senior Vice Chancellor briefly reviewed the sabbatical report.
e. Finance/Facilities Policy Committee, Andrew Boss, Chair

Finance/Facilities Division Update
Committee Vice Chair Ann Curme Shaw reported that the committee heard an update from President Ann Wynia and Vice Chancellor Laura King, Leadership Council committee co-chairs on the action plan for Finance/Facilities presented at the Leadership Council in September.

f. Human Resources Policy Committee, Ivan Dusek, Chair

Human Resources Update
Committee Chair Ivan Dusek reported that the committee heard a Human Resources update from Vice Chancellor William Tschida.
*Proposed Amendment to Policy 1A.3 System Administration, Chancellor (Second Reading)
Committee Chair Dusek moved that the Board of Trustees approves the proposed amendment to Policy 1A.3, System Administration, Chancellor. Trustee Vincent Ijioma seconded and the motion carried unanimously.

g. Audit Committee, Daniel Coborn, Chair

Internal Audit Update Update
Committee Chair Daniel Coborn reported that the committee heard an update from Executive Director John Asmussen on the work of the Internal Audit.
An Assessment of Practices for Monitoring Satisfactory Academic Progress for Financial Aid Recipients
Committee Chair Coborn reported that the committee heard a report from Deputy Director Beth Hammer Buse, Internal Audit, on An Assessment of Practices for Monitoring Satisfactory Academic Progress for Financial Aid Recipients. As a result of problems experienced by Metropolitan State University with monitoring academic progress of financial aid recipients, an assessment was conducted by Internal Audit to assess the risk of similar problems at other system institutions. Associate Vice Chancellor for Student Affairs Mike López outlined procedures for recommendations for more specific requirements to Board Policy 2.9. Further review of Board Policy 2.9 will be presented at the October meeting of the Educational Policy Committee.
System-Level Accountability Framework: Student Participation Rate Data
Committee Chair Coborn reported that the committee heard a detailed report from System Director for Research Craig Schoenecker and Associate Vice Chancellor for Planning and Research Leslie Mercer on the System-level Accountability Framework approved by the Board of Trustees in June 2003. Committee Chair Coborn stated that although the report shows progress has been made, there is much work to be accomplished in serving underserved populations.
Legislative Audit Reports for Fiscal Year 2003
Committee Chair Coborn reported that the committee received an overview of audit results from Executive Director Asmussen on the Legislative Audit Reports for Fiscal Year 2003. The reports show that progress has been made and that there are issues that still need to be addressed.
Report on Timeliness of Academic Program Reviews
Committee Chair Coborn reported that the committee heard a report from Executive Director Asmussen on the Timeliness of Academic Program Reviews. Committee Chair Coborn stated that the Board of Trustees had delegated program approval responsibilities to Chancellor McCormick in March, 2001. Chair Coborn stated that the report was favorable and the program reviews are processed on a timely basis.
Internal Auditing Annual Report
Committee Chair Coborn reported that the committee heard a report from Executive Director Asmussen on the Internal Auditing Annual Report. Chair Coborn referred to the detailed report which highlights the activities carried out in fiscal year 2003.

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

Other Business
Chair Mary Choate expressed her gratitude for the opportunity to serve as Chair of the Board of Trustees. She thanked Chancellor McCormick for his support, encouragement and guidance during her term. Chair Choate thanked the Office of the Chancellor staff, the presidents and the board staff: Inge Chapin, Patty McCann and Laura Torgerud for their support.

Adjournment
Chair Luoma adjourned the meeting by consensus at 2:55 p.m.

Recorded by Ingeborg K. Chapin
Board Secretary