Kentucky Community and Technical College System
Board of Regents Meeting Minutes

November 24, 1997
Elizabethtown Community College
Elizabethtown, KY

Chairman Martha Johnson called the meeting of the Kentucky Community and Technical College System Board of Regents to order at approximately 1:15 p.m. The following members were present: Marvin Russow, Cynthia Read, Richard Bean, John R. Banks Jr., Lorna Littrell, Diana Lutz, Donna L. Davis, Chuck O’Neal, Bobby McCool, Mark Powell, Jack Hanel, and Cindy Fiorella. It was noted that a quorum was present and that the news media had been notified of the meeting.

Chairman Johnson asked the audience to introduce themselves, and who they were representing.

Dr. Hanel made a motion to approve the minutes of the October 13, 1997, meeting. The motion was seconded by John Banks and was approved.

Election of Secretary to the Board of Regents

A motion was made by Cindy Fiorella that Cynthia Read be elected Secretary of the Board of Regents. The motion was seconded by John Banks. Nominations were closed, and Ms. Read was elected secretary.

Update on Council on Postsecondary Education

Dr. James R. Ramsey, chairman of the Statewide Transition Team and interim president of KCTCS, explained that the Council on Postsecondary Education has made recommendations concerning operating and capital budgets. Dr. Ramsey presented a handout on CPE activities, including budget recommendations for the 1998-2000 biennium; criteria for incentive funds created under the Kentucky Postsecondary Education Improvement Act of 1997; and an access plan to postsecondary education through the Commonwealth Virtual University and physical facilities. Dr. Ramsey talked about needs of the Commonwealth in relation to the location of community colleges and technical schools, and about financial aid for students. He told the board that legislation has been proposed to use Kentucky Lottery revenue to finance postsecondary education tuition scholarships. Dr. Ramsey talked about the 1997-98 budget and new tuition rates for in-state and out-of-state students. Ms. Lutz asked whether Kentucky would continue to have tuition reciprocity agreements with other states. Dr. Ramsey said such agreements are continuing.

Dr. Ramsey then reported on KCTCS’ capital budget request, which includes approximately $4 million for maintenance that will have to be matched dollar for dollar, plus $50 million for construction projects. KCTCS’ proposal will have to be submitted to the CPE, the Governor and the General Assembly for approval. He said that the CPE is recommending that the State Property and Buildings Commission, rather than individual institutions, issue all bonds for postsecondary education.

Mr. Bean asked for current annual maintenance expenses. Sandy Gubser said Kentucky Tech spends about $2 million to $3 million a year on maintenance; Dr. Jack Jordan added that the University of Kentucky Community College System spends $1 million to $1.5 million.

Accreditation Status Report

The board was informed about a letter from Wayne Brown and Harry Bowman of the Council on Occupational Education that confirmed approval of a substantive change in governance proposal from Kentucky Tech. Commissioner Delmus Murrell informed the board that the Tech system will have to seek approval of more changes pertaining to semesters and other issues.

Dr. Ben Carr told the board that the Southern Association of Colleges and Schools sent a fact-finding team to Kentucky in early November to study the UKCCS’ proposed substantive change in governance. SACS’ Commission on Colleges was expected to make a decision on the change in governance at its meeting in early December in New Orleans.

Presidential Search Status Report

Mr. Bean, Chairman of the Presidential Search Committee, distributed a folder from search consultant ACCT outlining the presidential search procedure. All applications will be reviewed by at least two members of the committee. On January 30, 1998, the committee will meet in Lexington to narrow the field of applicants to about 12. In late February 1998 the Search Committee will interview the semifinal candidates. The committee will then recommend finalists. The position of president is being advertised in state and national newspapers, and letters are being sent to prospective candidates.

Bryan Armstrong, chairman of the Communications Work Group, reported that a brochure containing information on the presidential search is being prepared and approximately 2,500 copies will be distributed with letters that are to be sent out.

Action on FY 1997-98 Community College Appropriation Ron Carson, Chairman of the Budget Committee, reported on (1) recommendation for the $8 million FY 1998 direct allocation to the community colleges (2) review of the KCTCS budget request and (3) review of Lees College funding issue.

Mr. Carson referred to the October board meeting, when he presented five options for spending the $8 million. Three of the five involved using the chancellor’s framework. Option 4A that was selected by the Statewide Transition Team to be presented to the Board of Regents. Option 4A provides for 7 percent raises for staff and 5 percent for faculty in the UKCCS. The increases are to be effective July 1, 1997. This will cost approximately $4.3 million. Option 4A also includes funding for administrative systems and to bring community colleges up to 95 percent of the funding level of their benchmark institutions.

Mr. Bean asked about Lexington Community College receiving part of the $8 million because LCC is staying with UK. Mr. Carson replied that LCC was included in first-year funding in House Bill 1 even though it will not be part of KCTCS. Chairman Johnson asked whether LCC needed to be included in the Student Information System and thus receive $125,000 since it would not be part of KCTCS. Mr. Carson said LCC would need the system and would have costs similar to other community colleges.

Dr. Hanel asked to what extent salaries had been studied and how UKCCS faculty salaries compare with those at benchmark institutions. Dr. Ramsey reported that, compared to benchmark institutions, UKCCS faculty salaries are the second highest in the state. Dr. Hanel asked how UKCCS faculty salaries compared to high school faculty salaries. Dr. Ramsey questioned whether it was relevant to compare high school and college salaries.

Dr. Hanel asked whether presidents’ salaries were included. Mr. Carson responded that they were in the base data. Ms. Littrell said the presidents’ salary increase for this year would reach 16 percent with the new raise. In response to a question, Mr. Carson said a 7 percent raise for presidents would cost $65,000 a year.

Under Option 4A, faculty would receive 5 percent raises and staff would receive 7 percent. Ms. Fiorella said she thinks staff favors Option 4A. She raised the issue of employees in the ledger 3, 4 and 5 accounts and how their raises would be funded. Mr. Carson said it would cost $500,000 to cover salaries for employees in the ledger 3, 4 and 5 accounts. He further reported that the nonrecurring funding for these employees could be covered out of the $1.6 million in equity adjustments, with the exception of Hazard and Henderson Community Colleges.

Dr. Hanel asked how the money would be allocated at the colleges for salary increases. A general discussion ensued on past practices and current options.

Ms. Fiorella made a motion that the board consider Option 4A. According to her motion, the raises for employees in ledger 3, 4 and 5 accounts would be covered out of equity adjustments. Mr. O’Neal seconded the motion.

Ms. Fiorella amended the motion to make the raises of 7 percent for staff and 5 percent for faculty across the board. Mr. Russow seconded the a mendment.

Dr. Hanel pointed out that, with an across the board increase, people at the top end of the pay scale would get the biggest raises. He said part of the money could be distributed across the board, with the rest distributed to help people at the lower end of the pay scale. A discussion ensued. A motion was made, but not seconded, to drop the across-the-board component of the raise.

It was noted that, under board bylaws, Dr. Hanel and Mr. McCool were not permitted to vote on the salary increases.

A voice vote was taken on Ms. Fiorella’s amendment. The motion passed.

Mr. Russow made a motion that equity adjustments for colleges be used to cover salary increases for the employees in ledger 3, 4 and 5 accounts. John Banks seconded the motion, and the motion passed. Mr. Russow amended the motion to reduce presidents’ salary increases to fully fund the ledger 3, 4 and 5 employees’ raises. The motion passed.

Ms. Fiorella made a motion to approve the original motion as amended. Her new motion was seconded by Ms. Read and passed.

Chairman Johnson recessed the meeting.

After the board reconvened, Ms. Littrell moved to reconsider the approved motion to take money from the administrative staff recurring need column of Option 4A to fund the raises for employees in ledger 3, 4 and 5 accounts. That would restore the presidents’ raises to 7 percent. The motion was seconded by Diana Lutz and was passed.

Lees College Campus of Hazard Community College

Ron Carson referred to a letter from William Engle III, chairman of the Board of Directors of Hazard Community College, wherein Lees College Campus was not included in the budget for Hazard Community College. It was requested that Lees College be considered in the upcoming budget. Mr. Carson recommended that this be included in the governor’s budget submitted to the General Assembly. It was agreed that a letter from Chairman Johnson be prepared asking that this request be included in the governor’s budget request to the General Assembly.

Action on Memorandum of Agreement

Mary Lassiter reviewed the agreement. Ms. Lassiter said debt for the Community College System would be issue by either the University of Kentucky or the State Property and Buildings Commission (SPBC). For the Technical Institutions Branch, KCTCS or the SPBC will issue debt.

Ms. Lassiter continued that if KCTCS requests a project, and UK approves the project as required by House Bill 1, KCTCS would ask UK to issue these bonds. UK would issue these bonds with the assistance of the Office of Financial Management and Economic Analysis (OFMEA). Then KCTCS would collect and administer the CCS tuition with the understanding that these revenues are pledged as security for the debt service.

Ms. Lassiter said the agreement shall be effective upon the affirmative completion of the regional accrediting agency’s substantive change process, but not later than July 1, 1998.

A motion was made by Mr. Russow to adopt the Memorandum of Agreement on Delegation and Assumption. The motion was seconded by Ms. Littrell, and the motion passed.

Transition Team Reports
Personnel System RFP Status

Sandy Gubser reported that the Personnel Work Group had met with the Hay Group consultants and progress was being made. The consulting firm will present to the board detailed plans for completion of the personnel transition policies, procedures and activities. By April 1 the consultants will present for review and adoption by the board a final product. In the meantime, there will be a rough draft recommendation available for review and comment by employees.

Dr. Jordan referred to the Student Information System, which needs to be rebid. The RFP is being reissued to include Kentucky Tech. This will take 60 to 90 days.

Information Update and Request for Endorsement -- Academic Programs Currently Before CPE

Dr. Ben Carr presented program proposals for approval by the board. KCTCS support was requested for two program proposals scheduled for January consideration by the Council on Postsecondary Education (A&B) and three that are expected to be considered in March (C, D, and E). The programs are (A) Hazard/Southeast Physical Therapist Assistant; (B) Madisonville Occupational Therapy Assistant; (C) Systemwide Technical Studies Program; (D) Owensboro Early Childhood Education; and (E) Prestonsburg Law Enforcement Technology. Two additional program proposals that are currently in the pipeline and are also expected to come forward in the spring are the Hopkinsville Agricultural Technology and Owensboro Associate Degree Nursing programs.

A motion was made by Mr. Bean to accept items A and B to be recommended to the CPE. The motion was seconded by Dr. Hanel and the motion passed.

Dr. Carr requested that Hazard Community College administration be allowed to reactivate the human services program. It was suggested that the Curriculum Committee study such requests and reach an agreement on how to handle them in the future.

Establishment of Standing Committees of the KCTCS Board of Regents

The following committees and members were agreed upon and appointed November 24, 1997, with the exception of the Search Committee, which was appointed October 6, 1997:

Executive Committee

• Martha Johnson, Chair
• Michael Hoseus, Vice Chair
• Cindy Read, Secretary
• Mark Powell, Finance, Administration and Technology Committee Chair
• Jack Hanel, Academic Affairs and Curriculum Committee Chair
• Lorna Littrell, Efficiency, Effectiveness and Accountability Committee Chair
• Richard Bean, Presidential Search Committee Chair

Finance, Administration and Technology Committee
Mark Powell, Chair
John Banks
Richard Bean
Cindy Fiorella

Academic Affairs and Curriculum Committee
Jack Hanel, Chair
Donna Davis
Marvin Russow
Diana Lutz
Cindy Read

Efficiency, Effectiveness and Accountability Committee
Lorna Littrell, Chair
Michael Hoseus
Bobby McCool
Chuck O’Neal

Presidential Search Committee
Richard Bean, Chair
Martha Johnson
Michael Hoseus
Lorna Littrell
Cindy Fiorella
Bobby McCool

Chairman Johnson commented that the Finance Committee needs to meet with Dr. Ramsey on the Capital Budget and the Virtual University items. The Curriculum Committee needs to study the Kentucky Tech quarter system versus the semester system; and review new UKCCS programs.

She further instructed the Efficiency, Effectiveness and Accountability Committee to look at benchmarks and what has been used in the past.

Ms. Read pointed out an inconsistency in the board bylaws in that faculty members are prohibited from voting on salary issues, while staff members are not. She suggested discussing the issue at the next board meeting.

Mr. Armstrong reported on the communications retreat that was held at Shakertown, the presidential search brochure and other items.

The next meeting of the KCTCS Board of Regents was scheduled for January 13 and 14, 1998, at Ashland Regional Technology Center.

A motion to adjourn was made by Mr. Bean and seconded by Mr. Powell. The motion passed. The meeting adjourned at 5:10 p.m.

Cynthia Read, Secretary