AGENDA

 

FINANCE & ADMINISTRATION COMMITTEE

 

February 20, 2002

June 19, 2002

 

 

Executive Session

 

Approval of the Finance & Administration Committee Minutes for the January 16May 15, 2002 Meeting

 

 

22.       Commissioner’s Consent:

 

      a.   Operating Fund Quarterly Reports for the Six-Month Period Ending December 31, 2001

 

      b.   Endorsement of New Set of Peers Institutions for Eastern Connecticut State University

 

3.   Action Item:

 

a.   Proposed Common Core of Institutional Performance Indicators for Connecticut Public Higher Education

 

3.   Information Item:

 

      a.   Asset Protection Program Results

 

4.   Other

Endorsement of Second Annual Accountability Report for Higher Education

 

4.   Information Item:

 

      a.         Highlights

 


 

FINANCE & ADMINISTRATION COMMITTEE

BOARD OF GOVERNORS FOR HIGHER EDUCATIONTUITION POLICY REVIEW COMMITTEE

 

RECORD OF MEETING

 

Department of Higher Education

Hartford, CT

February 20, 2002June 21, 2002September 26, 2002

 

 

Members Present:      W. Bevacqua, J. Kemler, A. Meyer, F. Ridley, A. VertefeuilleSen. Cappiello, K. Guay, P. Halvorson, Sen. Hartley, W. Johnson, L. McHugh, M. Meotti, D. Yoia, L. Zollo

 

Other BGHE

Present:                                                            J. Bates, D. Brennan, J. Bates, D. Brennan, L. Cohen, D. Leib, V. Lewis

 

1.   Call to Order:

 

Vice Chairman Meyer BevacquaMeotti called the meeting to order at 10:049:353:45 p.m. a.m.

 

Vice Chairman Meyer requested that J. Bates and L. Cohen be temporary members of the Finance & Administration Committee in view of absent members.

 

2.   Approval of the Finance & Administration Committee Minutes for the November 21May 15,, 20021 Meeting

 

On a motion made by J. BatesA. Meyer, seconded by A. VertefeuilleF. Ridley, the Committee unanimously voted to approve the minutes of the January 16May 15, 2002 meeting.

 

23

3.   Commissioner’s Consent Calendar

 

On a motion made by A. Vertefeuille, seconded by J. Bates, the Committee unanimously voted to move the Operating Fund Quarterly Reports for the Six-Month Period Ending December 31, 2001 to the Commissioner’s Consent Calendar.

 

On a motion made by A. Vertefeuille, seconded by J. Bates, the Committee unanimously voted to move the Endorsement of New Set of Peer Institutions for Eastern Connecticut State University to the Commissioner’s Consent Calendar.

 

3.   Action ItemCharge to Committee from Board of Governors:

 

W. Bevacqua reviewed the charge from the Board of Governors to the Tuition Policy Review Committee. 

 

3.   Chairman’s Remarks and Committee Member Introductions:

 

Chairman Meotti, President of CT Policy & Economic Council, Inc., introduced himself and briefly explained his interest in the review of the Connecticut tuition policy.  He stated that the Committee has to address some serious issues of tuition.  It would benefit everyone if there was a well understood policy about what underlies state support for higher education in Connecticut.

 

There was an introduction of Committee members.  In addition, Jacqueline E. King, Director at the Center for Policy Analysis at the American Council on Education was introduced. She will serve as a case study writer for the national Lumina project.  Commissioner Lewis reported that the Department of Higher Education Board of Governors was approved to received a grant to thatsupports the workings of the Tuition Policy Review Committee.  This grant will provide some financial help and the opportunity to enter in the national dialogue and get a federal perspective on higher education policies.  The Department , through the work of Jacqueline King and others, will participate simultaneously with the four other states to share Connecticut’s issues and progress:  .  The other case states are Florida, Missouri, Oregon and Arizona. 

 

4.   Summary of Current BGHE Tuition Policy and Related Background Materials:

 

Commissioner Lewis presented a summary of the current Board of Governor’s Tuition Policy and related background materials.  She explained why the Committee formed, state structural deficiencies and what it means for CT higher education.  She also reported on what national studies report, factors affecting tuition increases nationally and major components of the Board of Governor’s Tuition and Fee Policy.

 

5.   Discussion:

 

Chairman Meotti asked members to talk in a general sense about the issues that the Committee would like to address to help shed light on the broader policies at stake.  The following is a summary of the key issues and questions that were raised during the discussions.  These will be used to develop a framework for listing of key elements that will be organized in a framework for upcoming meetingsdiscussions: 

 

·        Give constituent units opportunity to speak to committee present specifics about how they make decisions in regard to tuition and student financial aid.  What are the current policies in place?

·        Need to examine Wwhat has caused the tuitions to rise at almost three times the rate of inflationary growth?.  What are the factors in why tuitions are escalating at a much more rapid rate than cost-of-living growth?

·        Need to focus attention on some of the administrative costs - transparency of to the expenditure base of higher education.  What are the administrative costs both currently and historically,  and how does Connecticut compare with peer institutions? What are salary levels and how to they compare?

·        What are the costs associated with faculty workload currently and historically, y and how does Connecticut compare with peer institutions?  Is personnel the biggest cost driver?  When looking at administrative costs, IT costs should be broken out.

·             

·        What are IT costs and what impact have they had on cost increases??

·        What are the constituent units’ ideas in keeping education accessible,  while preserving the infrastructure of education and making it the most competitive?  

·        Need to look at the three separate roles of the constituent units.  How are they different?

·        Need to address fees (including full-time vs. part-time fees).  Are they different among the constituent units and should they be kept separate?

·        Need to address differentiation.  Should there be a difference in rates for different programs, different levels or job shortage areas?  Do the constituent units differentiate now and, , if so, how, and or where do they want expect to do so in the future?

·        Need to look at the issue of address policy on need-based aid only or  or need based and merit aid. 

·        Need to address faculty workload.  How many courses are faculty required to teach?  Are there differences among constituent units?

·        Are there Need to determine those course offerings or programs that are no longer attracting students?. 

·            Need to address bond issue in relation to education.  Is the state building more (physical facilities) that it can afford to sustain? 

·        Need to look at operating and capital investments, historically.  Is more money being put towards capital improvements?

·        Need to understand the impact of what policy decisions have an impact on financial aid.  Need to be able to model changes to determine effects on families by looking at how numbers move by either changing state subsidy or tuition. 

·        Need to look at the demands made by the clienteleal.

·        Right now, Tthere is an increased demand for higher education in Connecticut; therefore, the budget deficit needs to be filled on a permanent basis before there is a decrease in enrollment and tuition won’t cover the deficit.  Tuition has gone up because the state is not meeting the percentage that it used to per student.  How can higher education get Connecticut needs to figure out how to get a bigger slice of the pie. 

·        Need to examine Need to look at student enrollment and demographic projections – from 1989-2008 to get a historical perspective.

·        Can Connecticut learn anything from the Need to take a lesson from State of California?.

·        Need to address issue of flexibility.  Does the state need to take back control of how money is spent?

·        Should students pay to play sports?

 

Chairman Meotti stated any additional thoughts can be added from now until the next meeting.  If members have any additional thoughts, they can be brought to the attention of Mary K. Johnson, Associate Commissioner, Finance and Administration, either by phone or email. 

It was suggested that the constituent units address many of these issues possibly at the next meeting.

 

6.   Future Meeting Schedule

 

 

The next two meetings will tentatively take place on November 18th and December 17th at 3 p.m.  Commissioner Lewis reported that it is hoped by the Board of Governors that the Committee could make preliminary recommendations by January 2003 for upcoming discussions regarding tuition and fee adjustments for the next academic year.

 

a.   Proposed Common Core of Institutional Performance Indicators for Connecticut Public Higher Education

Endorsement of Second Annual Accountability Report for Higher Education

 

M. Johnson reported that in response to recommendations of the Board of Governors for Higher Education and feedback received from the legislature, the Department of Higher Education in conjunction with the Performance Measures Task Force (PMTF) has revamped the accountability framework.  The objective of the redesign was to streamline the accountability report by reducing the overall number of measures being reported, addressing issues of consistency in measurement and focusing on the most critical external indicators.  The new framework structure consists of the following three levels of indicators:  state-level indicators, common core of institutional indicators and institution specific indicators.  The first phase of the redesign has been completed with the identification of a set of ten common core indicators arrayed across the six statewide goals.  M. Johnson reviewed the recommended common core of institutional performance indicators.  It is anticipated that a list of state-level and institutional specific indicators will be brought to the Board in September.

 

There was some discussion regarding the need for the PMTF to continue to look for more relevant measures that support goals four and five, economic development and the needs and problems of society.  It was further suggested that the possibility of performing student and employer satisfaction surveys five years out be evaluated. 

 

On a motion made by A. Meyer, seconded by F. Ridley, the Committee unanimously voted to endorse the set of Common Core of Institutional Performance Indicators for the constituent units and public institutions of higher education as provided in Attachment A.

 

5.   Information Item

 

      a.   Asset Protection Program Results

 

The Asset Protection Program was created to facilitate the repair, maintenance and preservation of the public's significant new investment in higher education facilities.  The project objective was to determine the present condition of our public higher education facilities systemwide (22.5 million gross square feet in over 500 buildings) through a comprehensive facility condition assessment that involved a physical survey of the buildings and its component systems by a team of qualified engineers.  VFA, Inc., provided this service to the Department of Higher Education.  Representatives from the VFA were introduced.  Lisa Raffin, Project Director, VFA, presented information about the VFA and the services they provide.  Tom Bart, Project Manager, VFA, spoke specifically about the project and presented the results.  He reported on project scope, building statistics, classifications, deficiency costs, costs by priority, etc.  The amount for all deficiencies listed by priority level total over $141 million for the 69 buildings covering 4.0 million square feet that were assessed.  Details are available for those who would like further information.

M. Johnson presented the second annual accountability report for higher education.  She reported that thise repor

 

harter Oak State CollegeOSCOn a motion made by A. Vertefeuille, seconded by J. Bates, the Committee unanimously voted to transmit Connecticut’s second annual accountability report for higher education to the Education Committee and to the higher education community at-large.

 

84. Information Item

 

a.   Highlights – FY 2001-03 Mid-Biennial Operating & Capital Budget Adjustments for Higher Education

 

M. Johnson summarized the highlights of the FY 2001-03 mid-biennial operating & capital budget adjustments for higher education.  She reported that the Governor’s recommended general fund budget calls for $594.3 million for FY 2003, a reduction of $16.3 million from the original appropriation of $610.6 million.  It provides modest operating increases largely related to new facilities and the restoration of New England Board of Higher Education dues.  M. Johnson reviewed FY 2002 and FY 2003 adjustment summaries, and a summary of FY 2001 surplus reductions.

 

On the capital budget side, M. Johnson reported that the Governor made no adjustments to FY 2003 authorizations.  However, he is recommending the extension of UConn 2000 under a new program, 21st Century UConn.  In addition, the Governor renewed his commitment to extend both the Connecticut State University System and Community-Technical College System Capital Investment Plans for an additional five-years.

 

M. Johnson stated that the Appropriation Subcommittee on Higher Education will be held on Monday, February 25th.

 

5    Executive Session – Personnel Matters

 

On a motion made by A. Vertefeuille, seconded by A. Meyer, the Committee unanimously voted to enter Executive Session at 11:25 a.m. with Commissioner Lewis in attendance for discussion on personnel matters.

 

The Committee returned to public session at 11:30 a.m.

 

66..                                                       Adjoournment:

 

 

The meeting was adjourned at 11:3010:495:00 p  a.m.

 

Respectfully submitted,

 

 

 

Mary K. JohnsonMary K. Johnson

Secretary

 

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