Montana Board of Regents of Higher Education 

 

Minutes

 

Regular Meeting

January 17-18, 2002

 

Helena College of Technology of UM

1115 Roberts

Helena, MT 59601


These minutes were approved unanimously as amended at the 

March 21-22, 2002 meeting of the Board in Havre, MT.

ACADEMIC/STUDENT AFFAIRS COMMITTEE

ADMINISTRATIVE/BUDGET COMMITTEE

THURSDAY, JANUARY 17, 2002

 

The full Board convened at 7:30 a.m. with the pledge of allegiance, and immediately went into Executive Session.

 

Following the Executive Session the Work Session convened at 9:10 a.m.   Regent Jasmin was not present for either the Executive or Work Session

 

       During the Work Session, Regent Semmens moved for approval of the Communications Plan outlined before them with the K-12 partnership being included in the partnership section of the document and the first idea being strengthened.

       The motion was approved unanimously.

 

       During the Work Session, Regent Hamilton moved that the Board of Regents authorize the Commissioner to implement the Communications Plan within the budget that is available currently by either an added position in the Office of the Commissioner of Higher Education or contracted services.  Funds would have to be reallocated from the campuses to cover this.  The limit imposed would be $80,000.

       The motion was approved on a 4-2 Vote with Regents Hur and Mercer dissenting.

 

The Work Session recessed at 11:00 a.m. for separate Committee Meetings.  The Work Session was to be completed during New Business on Friday.

 

The Committees Convened at 11:00 a.m. and adjourned at 12:15.


 

The Full Board Convened at 1:20 p.m. - Roll Call indicated a Quorum Present  

 

ROLL CALL

 

Regents Present: Lynn Morrison-Hamilton, Christian Hur, Ed Jasmin Vice-Chairman (via conference phone), John Mercer, Richard Roehm, Mark Semmens, Margie Thompson Chairwoman, Superintendent of Public Instruction Linda McCulloch, ex officio, and Commissioner Richard Crofts, ex officio.

 

Regents Absent:   Governor Judy Martz, ex officio

 

 

APPROVAL OF MINUTES 

 

 

       Chairwoman Thompson MOVED for APPROVAL of the Minutes of the October 19, 2001 Conference Call Meeting as circulated and the minutes of the November 15-16, 2001 Regular Meeting in Bozeman as circulated. 

      The Minutes were APPROVED unanimously as amended.

 


 

CONSENT AGENDA

Staff Items:

a.

ITEM 114-1000-R0102 - Staff; The University of Montana Missoula

b.

ITEM 114-1500-R0102 - Staff; Montana Tech of the University of Montana

c.

ITEM 114-1900-R0102 - Staff; Helena College of Technology of the University of Montana

d.

ITEM 114-2000-R0102 - Staff; Montana State University-Bozeman

e.

ITEM 114-2300-R0102 - Staff; Agricultural Experiment Station

f.

ITEM 114-2400-R0102 - Staff; Cooperative Extension Service

g.

ITEM 114-2700-R0102 - Staff; Montana State University-Billings

h.

ITEM 114-2800-R0102 - Staff; Montana State University-Northern

i.

ITEM 114-2801-R0102 – Authorization to Confer the Title of Professor Emeritus of Languages on Professor David Westenskow; Montana State University-Northern

j.

ITEM 114-2850-R0102 - Staff; Montana State University, Great Falls College of Technology

 

Other:

a.

ITEM 114-101-R0102 – Nominations to the Student Loan Advisory Council; MGSLP  MEMO

b.

ITEM 114-107-R0102 - Approval of tentative agreement with United Association of Plumbers and Pipefitters; Montana University System  MEMO

c.

ITEM 114-108-R0102 - Approval of tentative agreement with Print, Publish and Media Sector of the Communication Workers of America, Local 1470, and Graphic Communication International Union, Local 242-C; Montana University System  MEMO

d.

ITEM 114-109-R0102 - Approval of tentative agreement with International Association of Machinists and Aerospace Workers; Montana University System  MEMO

e.

ITEM 114-110-R0102 - Approval of tentative agreement with Pacific Northwest Regional Council of Carpenters; Montana University System   MEMO

f,

ITEM 114-111-R0102 - Approval of tentative agreement with Montana University System Maintenance Painters Union; Montana University System  MEMO

g.

ITEM 114-112-R0102 - Approval of tentative agreement with The University of Montana-Missoula College of Technology Faculty Association; Montana University System  MEMO

h.

ITEM 114-113-R0102 - Approval of tentative agreement with Montana State University-Northern Federation of Teachers; Montana University System   MEMO

i.

ITEM 114-117-R0102 – Approval of Tentative Agreement with AFSCME Local 2235 Montana State University-Northern; Montana University System   MEMO

 

        Regent Hamilton MOVED to APPROVE all items on the Consent Agenda as amended

         Motion APPROVED unanimously.

 


 

STUDENT REPORTS

 

Andy Parker - President, MAS 

Mr. Parker recognized Jennifer Gerondale who was the Treasurer for MAS and was recently called to active duty in Salt Lake City for the 2002 Olympics.  She did a great job as Treasurer and has been succeeded by Bryce Anderson.   He then reported on the MAS meeting of the previous night.  MAS will be having its annual retreat from Friday through Sunday.  They will be updating the constitution for MAS, and they discussed the turnover in student government and what can be done to alleviate it.  They discussed the goals and priorities for the legislative session, and he reported that they will add to the list the items which they discussed with the Regents at lunch today.   Mr. Parker noted that they also discussed credit transferability and the issue of course challenging.  They also wanted to have more student input into the university budgeting process.

 

Andy Parker - President, ASMSU

At Montana State University over the last two months, the students have mostly enjoyed their Christmas Break but classes began yesterday.

    During December the students some of the renovations to the third floor of Renne Library and are happy with them.  There are new study rooms for group study, and more study space in the general area.  Overall, the students are pleased, and are eager for completion.

    The ASMSU Day Care Center was the focus of an architecture project on campus last semester.  A group of Architecture students used the Day Care Center’s landscaping as a class topic and presented it to the Day Care teachers and ASMSU Senate in December.  Their input for landscaping and outdoor concepts for the ASMSU Day Care Center were exciting and the presentation was excellent.  The Director of the Day Care Center is applying for grants to fund the actual project.

    Montana State University students did well academically last semester, with 2,107 names appearing on the Dean’s List, 361 of those also being on the President’s List (students that achieved a 4.0 GPA).

    He further reported that Ryan Johnson of MSU was named Academic All American of the year.  He had a 4.0 GPA, and set the rushing record for a season, and it is anticipated he will set a career record next season.  MSU is happy that the relations between athletics and academics is improving with the efforts they have been making.

 

Christopher Peterson – President ASUM 

Mr.  Peterson reported that ASUM will unveil its new 21-passenger Park-N-Ride bus at the end of this month.  The bus will run on bio-diesel fuel, which will be recycled fry oil taken from the University Center food Court.  The bus will help ease the crowding that passengers have faced this year due to its popularity.  The service is free and funded exclusively through student fees generated by ASUM.

    He also reported that ASUM has a new Vice President.  Matthew Hayes Lindsay stepped down from his position as Vice President after an offer of an excellent position with Senator Baucus’ Re-election campaign.  Heather O’Loughlin of Great Falls has been sworn in as his replacement and has taken over with admirable ease.

    For the third straight year, the ASUM senate has pledged its support for extending health benefits to Montana University System’s same-sex partners.  The resolution passed the ASUM overwhelmingly.  ASUM stands by the simple fact that this is an issue of equal pay for equal work.

    KBGA, the student run radio station at The University of Montana has been selected to be part of a satellite radio system.  KBGA was selected based on its 365 day broadcasting and quality of programming.

    Curry Student Health Services obtained a $200,000 grant allowing a team to put together a program on preventing violence against women.  

    He also noted that the football team went to Chattanooga and won the national title.

 

Dan Geelan – President ASMSU-N 

Mr. Geelan reported that the Christmas party was great.  Students and Staff that facilitated and organized it were overwhelmed by the attendance.  It was estimated that perhaps 250 people would attend, but the final count was 535.  The proceeds collected on the dinner were donated to the Havre Food Bank.

    The “Club To Be Named Later” is up and running.  It is located in the Student Union Building.  They have been providing Karaoke and dance music two nights a week.  They will continue that along with other activities through the end of the Spring term.  Student Senate is very excited about the future success of the club.  During the last general election the idea for the club came from feedback on a survey done on campus.

    MSU-Northern is initiating a New Student Advising Center.  Part of the service offered to students will be advising and guidance directly relating to ensuring those students are aware of the importance of timely completion of their degree requirements.  ASMSUN government along with the other campus student governments has concerns about the timely completion in light of the recent abolishment of the credit cap.

    Members of ASMSUN will travel to Great Falls & Lewistown campuses to ensure that those student voices are heard and have an opportunity to ask questions of their student government.  They have just recently had Northnet hookups with those campuses to give those students the opportunity to communicate with student government.  During the visits they will treat the students to pizza.

    ASMSUN Program Council Coordinator Amy Warburton’s term ended in December.  Amy did a fantastic job in the 13 months she provided and organized activities.  Amy’s enthusiasm for her job and her efforts are going to be missed greatly.  Brandy Thomas has taken the elected position and has already coordinated the next semester’s activities.

Enrollment at Northern continues to grow and students continue to express excitement about the direction the campus is going with improvements, the radio station and the new activities available.

 

Jake Fuller – President ASHCT 

Mr. Fuller reported that Helena College of Technology is in the process of hiring a permanent Dean and CEO.  There are five finalists, and there has been interest and input from the community, the media, staff and students.

    Architects recently made a presentation in the Student Center on the projection drafts, with questions and answers and comment cards for the new building being planned on campus.  Important dialogue occurred between the designers and the students, faculty, and staff regarding the needs of the school.

    The annual Christmas celebration was a success with a live Santa who made an appearance in response to a Student Senate donation to the Melody House.  They are currently gearing up for one of the biggest events of their year, the Valentine’s Dance.  

    ASHCT supports investing in the long term in an effort to enhance expansion and longevity.  They have taken measures to support the personnel that make the system work as well as to attract capable candidates in the future.  As a whole, HCT is taking big strides in the right direction.

 

April Keith – President, ASMSU-GF CoT 

Ms. Keith reported that during their last meeting, the senators’ lounge was officially opened.  To celebrate they had an open house and used the opportunity to recruit new senators.

    At the end of last semester student government was extremely busy putting together gifts for the giving tree.  The tree is sponsored by SEAP (Student Emergency Aid Program).  SEAP provides assistance to students for emergency financial problems that jeopardize their enrollment.  At Christmas the Giving Tree is used to help them with the expenses of gifts for their spouses and children (and even grandchildren).  SEAP organizes and approves the applications, wraps all the sponsored gifts, purchases gifts for any person who was not sponsored, and arranges distribution.  There were about 25 applications this year compared to 10 last year.

    Vice President Neal DuBois accepted a wonderful job in Reno, NV and transferred there to continue his education.  He will be greatly missed.  His dedication and contribution to student government were far above the call of duty.  In his place the senate has elected Sara Anderson.  Ms. Anderson is a drafting and design student.  She has been involved in student government for a year and a half.  She also is work study for the maintenance department.  She sits on the Safety Committee and is not a stranger to leadership.  During her high schools years in Dutton, she was President of various clubs, and helped organize numerous activities.

    It is time to plan the faculty and staff appreciation picnic, to recruit new members for senate, assist in the planning and preparation of the graduation ceremony, and to work with Dr. Moe to facilitate a Resolution Committee.

    Ms. Keith clarified her report of last meeting on the security issues on campus.  The students are mainly concerned about the safety of their cars and the possessions in them.  Student government is working with Administration to determine if a problem truly exists and if it does the extent of the problem and possible solutions. 

 

Senator Tony Delmoe reported for Shawn Isakson – President, ASMT

Mr. Delmoe reported that Montana Tech graduated over 80 students in the month of December.  Spring semester began last Monday after a brief Christmas break.  Registration numbers will not be available for at least two weeks.

    The renovation of the HPER expansion is coming along well.  The entire framework is completed, the walls are completed with drywall, and the painting is complete.  The ceiling needs to be raised to accommodate taller athletes using some of the equipment.  The HVAC is 90% complete.  The projected opening date is in early to mid February.

The ASME (Mechanical Engineering) design team has been working hard on the human powered vehicle for this year’s competition to be held during the month of April in Reno, NV.

    Football coaching staff have been recruiting and have already signed 4 players from Montana (2 from Butte, 1 from Thompson Falls and 1 from Frenchtown).

    The Healthcare Informatics is moving along at a steady pace during the approval process.  It is expected that the degree will be officially accepted by the Faculty of MT Tech this semester with classes to start as early as Fall, 2002.

On-line courses continue to expand.  Collaboration with The University of Montana-Missoula has brought an on-line Philosophy course to the school.

    MT Tech has moved into the Helena area and now offers 300 and 400 level business courses there.  This move was a collaboration between Montana Tech and the Helena College of Technology.  It permits Helena residents to continue business education in their own city without having to attend Carroll College.

    KMSM, Montana Tech’s student run radio station will be switching its broadcasting frequency from 106.9 FM to 107.1 FM sometime this semester.  The switch came after a deal was struck with a commercial radio station who wished to purchase KMSM’s 106.9 frequency so that they could make their own 106.9 frequency more powerful, thus reaching more areas.  Consultation with the Federal Communications Commission (FCC) revealed that any commercial radio station has greater authority and power than a local public radio station.

 

Bryce Anderson –  Vice President, ASMSU-B 

Mr. Anderson reported that Jennifer Gerondale was called to active duty at the 2002 Winter Olympics in Salt Lake.  She therefore stepped down from her position as President of ASMSU-B.  Mr. Anderson indicated he will assume the position of President for the remainder of the 2001-2002 Academic School Year.  ASMSU-B Senate nominated and appointed Senator Dana Price as the Vice-President for the remainder of the Academic Year.

    Student government held its spring retreat the first weekend in January, presenting issues that need to be discussed during the next semester.  The senate is looking forward to an active year, holding regular open session meetings at 5:30 p.m. on Monday evenings during Spring Semester.  Student government is also currently looking to have new brochures published for legal services provided by ASMSU-B Attorney, Elwood English.  ASMSU-B also sponsored a tree at the Festival of Trees in Billings during the holidays and represented the school in the Holiday Parade.  After the last Board of Regents’ meeting they held an open forum for discussion with the Chancellor.

    MSU-Billings is entering its Winter Fest Week in January with numerous activities for the students.  The activities calendar is posted in the elevators of the LA Building and around campus.  Career Services will also have their career fitness fair on the 21st of February.

 

Kim Dolan –  President, ASUM-Western 

Ms. Dolan was unable to attend the meeting, but did provide a written report for her campus.  She reported the student government held a special election on December 6, 2001 to give students the opportunity to voice their opinions on the fate of the school yearbook (Chinook) and a new ASUM-W Constitution.  The Constitution was approved as was an increased fee for the yearbook.  That fee will go from $18 per year to $20 per semester.

    Student government is also looking at ways of targeting off-campus students to get them more involved in campus activities.  Ideas that were gathered over the last semester will be implemented during Spring Semester.

    Ms. Dolan indicated also that student senate thanked the Board of Regents for elimination of the Credit Cap.

 

David Morris –  President, ASMCC

Mr. Morris reported that Student Senate put together Thanksgiving baskets for the non-traditional students at Miles Community College.  The baskets contained turkeys and other holiday foods.

    The Computer Department organized an intern program for their students.  They built a new computer lab where the old one was.  They put in new furniture, installed new machines, software programs, etc.  The students did about 90% of the work themselves.  Their instructor, Don Warner guided them through any problems they encountered.

    Student Senate will move into their new office at the end of this month.  It will provide more space for them, but they still need to move over the phones and equipment.  

    The nursing program has been approved to change from an Associate of Applied Science to an Associate of Science degree.

    Mr. Morris reported that student government treasurer, Robert Edwards was called to active duty last semester but has now returned to campus and reassumed his duties as Treasurer and is back into his classes.

 

END STUDENT REPORTS

 

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Chairwoman Thompson indicated that Superintendent of Public Instruction, Linda McCulloch is a regular at the Board of Regents’ meetings and she forgets to welcome her.  She noted that the entire Board appreciates her attendance.  She noted that Ms. McCulloch also attended the Regents’ retreat.

 

Superintendent McCulloch handed out informational packets to the Regents covering 1) an invitation to participate in A Conversation on Creating Regional Professional Development Opportunities and 2) the updated version of  CSPAC Chapter 57 of the Administrative Rules of Montana.  She indicated that those rules had not been completely reviewed since 1972, but had undergone periodic adjustments.


 

COMMISSIONER'S REPORT

 

The Commissioner commented on two subjects:  the recent national report on college affordability and the use of accountability measures.

1.  The report of the Lumina Foundation entitled “Unequal Opportunity” was released on January 7, 2002 and received some commentary in the State of Montana.  He attached the pages that deal with Montana from the report.  The higher education community has given this report mixed reviews and many have commented on its flawed methodology.

According to the report, only The University of Montana – Western is deemed “affordable” for low- and median-income independent students.   For dependent students, only MSU – Billings and UM – Western are found to be affordable among MUS campuses.  Such conclusions, of course, fly in the face of the evidence that MUS has many such students on all of its campuses.

    The problems with the study include the following:

 

The flaws of the study aside, MUS should appreciate the attention the report brings once again to college affordability.  Policy makers should once again note that the potential for higher education opportunity is limited by where a student lives, the type of institutions available, and the amount of support provided to institutions and students by the State.

 

2.    The Legislature has created an interim subcommittee to consider public policy goals for higher education in the State of Montana and the possibility of accountability measures for the Montana University System.  At its meeting last week, the subcommittee decided to use the strategic plan of the Board of Regents for its starting point in the determination of public policy goals for higher education in the State.  While asking its staff and the Office of the Commissioner to begin to develop accountability measures, the subcommittee also would appreciate a continuing dialogue with the Board of Regents.

    To provide some context for consideration he reported on the results of a survey on states’ use of performance indicators in higher education.  The survey, conducted by the State Higher Education Executive Officers organization, found that 37 states were using measures of institutional performance in some way to respond to public and political demands for accountability.  According to the survey, the most common performance indicators were:

 

The director of the SHEEO organization has summarized out of the survey the common elements of effective accountability systems.  They:  work to improve performance, not punish failure; establish a few, clear, significant, measurable goals; monitor progress publicly; employ both intrinsic and extrinsic incentives; utilize every tool available; build capacity, and invest in results.

    The Senior Management of the Montana University System has suggested the following as a pilot project to test our use of accountability measures:

 

Chairwoman Thompson commented that the accountability and credibility of MUS is again brought into question by this report.  However, Lumina is only one year old and that should be pointed out and made known.  Regent Semmens indicated that the statewide policy and goals being established by the governor’s office are being based on the Strategic Plan adopted by the Board of Regents.  Most members feel that this is an example of more and better interaction with the legislature.  Chairwoman Thompson inquired if the other regents will receive minutes of the Legislative Interim Subcommittee on Post-Secondary Education meeting.  Regent Semmens indicated minutes were taken, but he had not received them.  He said the Commissioner will take care of it.  Regent Hamilton asked how the continuing dialogue between the Sub-committee and the Board mentioned in his report was going to be accomplished.  Regents Semmens indicated that the Strategic Plan is the starting point.  They will meet again in March, and when the final version with comments and suggestions is distributed it will be brought to the Board.  In establishing accountability measures the Regents agreed that it would be counter-productive to adopt such sweeping measures that they would be paralyzed and become dysfunctional.  It was suggested that time be taken by Senior Management to pick out from other states’ accountability indicators what the priorities are for Montana.  That could then be presented in a proposal to the Board for consideration at the March meeting.

 

END COMMISSIONER'S REPORT


 

CAMPUS REPORTS

 

President George Dennison, UM-Missoula introduced Paul Williamson the new Dean at the College of Technology in Missoula.  In addition to his written report, he noted that he had passed around an announcement on the inaugural members of the Montana Campus Compact’s Community Partners Program.  This program links volunteerism with higher education by providing education awards to citizens who serve a minimum of 300 hours with community organizations.  For more information on this please see their web site at http://www.umt.edu/mtcompact/com_part.htm.  President Dennison also announced that on February 28 they will bring on-line the automated library, and that Salish Kootenai College will be included in this system.  It will be compatible with other library systems.  Report


Ron Sexton, Chancellor of MSU-Billings reported that on Monday they had a very successful EDAG round table in Billings.  He thanked Mary Moe for her help in organizing it.  There were 100+ participants from K-12, the tribals colleges, business, industry, several legislators, and Regent Roehm and they all had good ideas and suggestions.  This will all be posted on the MSU-B web site.  He also reported that President Gamble was on campus on Monday and made a good presentation to the Billings Rotary.  Chancellor Sexton reported that the anticipated 3000 on-line students turned into 3500.  The first ACT testing center is nearly ready to open and will be available to Montanans.  They have focused on manpower training and development.  He also alerted everyone that they will be hosting an international business conference that might be of interest.  However, attendees might need to take tents since the city is also hosting the bowling competition and they expect 60,000 participants during that period.  He reported that the Center for Applied Economic Development is making a study to see who is benefiting from it.  They have received $100,000 as a partnership for the softball complex from Cenex.  Other refineries have helped this way in the past, but it is the first time for Cenex.  He reported that the Business Incubator is already running at near capacity.  That wasn’t expected to happen for another six to eight months.


Stephen T. Hulbert, Chancellor, Western Montana College of The University of Montana Campus Report


W. Franklin Gilmore, Chancellor, Montana Tech of The University of Montana Campus Report


Rick Gray, Interim Dean/CEO of Helena College of Technology Campus Report  


President Geoff Gamble, MSU-Bozeman Campus Report


Alex Capdeville, Chancellor, Montana State University-Northern Campus Report


Mary Moe, Dean of MSU-Great Falls CoT introduced their new Associate Dean, Dr. William Tapp from Wharton Junior College in Texas.  Report


Terry Hetrick, President of Dawson Community College.  Report


Dr. Jane Karas, Vice President/Dean of Instruction Flathead Valley Community College Campus Report

 

END CAMPUS REPORTS

 

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COMMITTEE REPORTS

ADMINISTRATIVE/BUDGET COMMITTEE

SUBMISSION AGENDA

a.

ITEM 112-114-R0901 – Revised Policy 204.3 – Commissioner of Higher Education; Duties; Office of the Commissioner of Higher Education AS AMENDED Deferred from November 15-16, 2001 meeting

Regent Semmens MOVED for APPROVAL to MOVE item a. of the SUBMISSION AGENDA to the ACTION AGENDA of today’s meeting and to be approved as an Action Item today.

Motion APPROVED unanimously.

b. ITEM 113-108-R1101 – Revision of Policy 940.13 – Veterans’ Fee Waiver; Montana University System AS REVISED   MEMO and substitute policy

Regent Semmens MOVED for APPROVAL to MOVE item b. of the SUBMISSION AGENDA to the ACTION AGENDA of the March 21-22, 2002 meeting with Staff to determine the estimated cost of the expanded waivers and to provide that information to the Regents at the March meeting.

Motion APPROVED unanimously.

c. ITEM 114-104-R0102 – Information Technology Policies; Montana University System  Policy

 Regent Semmens MOVED for APPROVAL to MOVE item c. of the SUBMISSION AGENDA to the ACTION AGENDA of the March 21-22, 2002 meeting with staff soliciting additional input from students before that time.

 Motion APPROVED unanimously.

 

ACTION CONSENT AGENDA

 

a.

ITEM 114-118-R0102 - Authorization of Institutional Name Changes from Helena College of Technology of The University of Montana to The University of Montana – Helena College of Technology, and from the Montana State University College of Technology – Great Falls to Montana State University – Great Falls College of Technology; Montana University System

b.

ITEM 114-1001-R0102 Certificate of Completion, Center for Student Success, Series E 1998  Facilities Improvement and Refunding revenue Bonds; The University of Montana-Missoula

   Regent Semmens MOVED for APPROVAL of all items on the ACTION CONSENT AGENDA

   Motion APPROVED unanimously.

 

ACTION AGENDA

 

a.

ITEM 113-110-R1101 – New Policy on Montana University System/Employee Joint Ventures; Montana University System  MEMO

b.

ITEM 114-102-R0102 – Revise Regents Policy 501.1 - High School Honor Scholarship to allow high schools to award High School Honor Scholarships up until June 30th of the award year; MGSLP  Revised Policy

c.

ITEM 114-103-R0102 – Revise Regents Policy 940.13, Procedures:   Section 3.  Continued eligibility for fee waiver  Revised Policy

d. ITEM 114-105-R0102 – Montana Family Education Savings Program - Program Enhancements; Montana University System
e. ITEM 114-1002-R0102 – Increase Purchase Price Within Property Acquisition Zone; The University of Montana-Missoula
f. ITEM 114-1003-R0102 – Renovation of McGill Hall for the Media Arts Program; The University of Montana-Missoula

Regent Semmens MOVED for APPROVAL of items a. – f. on the ACTION AGENDA

Motion APPROVED unanimously.

g. ITEM 114-1004-R0102 - Electronic Scoreboard for Washington-Grizzly Stadium; The University of Montana-Missoula

Regent Semmens indicated that with this item the Sheet on Questions and Answers as well as Attachment “A” were to be part of the record, with Attachment “A” also being part of the contract.  He noted that the University will make final approval on the equipment configuration and specifications.  The cost of removal and disposal of the old system is a line item in the installation budget and will be borne by Virtu.  Virtu will also solicit bids from all manufacturers of each major system component versus a turnkey project quote.  All negotiated final price quotes will be submitted to the University Athletics department with recommendations on product features, benefits and costs.  Virtu’s position in the industry permits them to receive wholesale price quotes versus retail.  They will act as the general contractor for product components, system integration and installation and will be the liable party.  The cost of those responsibilities are included in the cost breakdown and will be presented to the University.  In event of default the University will have first right to cure.  The University has the right to approve advertising content within reason.  The workmanship will be warranted and done by licensed and bonded subcontractors.  However, no work will begin until full commitments have been made by advertisers to cover the existing $507,000 being generated now.  These commitments generally run from 10 to 15 years.  The final terms are more favorable to the University of Montana-Missoula than to other universities.  There is no up front cost which would be typical and Virtu will see no return until after the University has received the first $507,000 of revenue.  Following payment of debt service Virtu will take 20% commission on the balance of revenues in excess of these costs and 50% of the surplus with the other 50% going to the University.  University of Montana Athletic Director Wayne Hogan stated that he has checked with other universities who have had Mr. Pugh install these systems, and all have been very satisfied with the quality of the workmanship and products.  Mr. Hogan stated that, based on what he has been told, he believes Virtu and Mr. Pugh have a good reputation and appear to be capable of performing the commitments required by the contract.

Regent Semmens MOVED for APPROVAL of item g. on the ACTION AGENDA with Attachment A being made a part of the contract.

Motion APPROVED unanimously.

h. ITEM 114-2001-R0102 – Authorization to Remove Auxiliary Units from Revenues Pledged to Repayment of Bonds to be used for Other University Purposes; Montana State University-Bozeman

Regent Semmens MOVED for APPROVAL of item h. on the ACTION AGENDA with MSU-Bozeman to obtain approval of Bond Counsel.

Motion APPROVED unanimously.

i. ITEM 114-2002-R0102 – Authorization to Replace Outdoor Track Facilities; Montana State University-Bozeman

Regent Semmens MOVED for APPROVAL of item i. on the ACTION AGENDA AS AMENDED

Motion APPROVED unanimously.

j. ITEM 114-2003-R0102 – Authorization to Paint Existing Areas of Auxiliaries Services; Montana State University-Bozeman

       Regent Semmens MOVED for APPROVAL of item j. on the ACTION AGENDA.

      Motion APPROVED unanimously.

 

 

At 3:40 p.m. the Board Recessed to meet with Faculty representatives.

 

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FRIDAY, JANUARY 18, 2002

The Full Board reconvened at 8:30 a.m.

Regent Jasmin did not join the meeting today.

 

Open Forum for Public Input on MONTANA UNIVERSITY SYSTEM ISSUES

 

There was no public comment.

END PUBLIC COMMENT

COMMITTEE REPORTS continued

ACADEMIC/STUDENT AFFAIRS COMMITTEE

ANNOUNCEMENTS

Level 1 Memo


NOTICES OF INTENT

a. NOTICE OF INTENT – Approval of a Certificate in Environmental and Natural Resources Law; The University of Montana-Missoula
b. NOTICE OF INTENT – Addition of an Option in Forensic Anthropology to the Bachelor of Arts Degree in Anthropology; The University of Montana-Missoula
c. NOTICE OF INTENT – Addition of an Option in Cultural and Ethnic Anthropology to the Bachelor of Arts Degree in Anthropology; The University of Montana-Missoula
d. NOTICE OF INTENT – Addition of Option in Forensic Anthropology to the Master of Arts Degree in Anthropology; The University of Montana-Missoula
e. NOTICE OF INTENT – Approval of Masters and Doctoral Degrees in Toxicology; The University of Montana-Missoula
f. NOTICE OF INTENT – Approval to Establish a Center for Structural and Functional Neuroscience; The University of Montana-Missoula
g. NOTICE OF INTENT – Approval of Proposal to Add the Associate of Applied Science Degree in Equine Studies; The University of Montana-Western
h. NOTICE OF INTENT – Authorization to Create a Doctor of Philosophy Degree in Animal and Range Sciences; Montana State University-Bozeman
i. NOTICE OF INTENT – Authorization to Create an Undergraduate Minor in Coaching Science; Montana State University-Bozeman
j. NOTICE OF INTENT – Authorization to Implement the Master of Science Degree in Athletic Training; Montana State University-Billings

Regent Roehm MOVED for APPROVAL to MOVE all items on the NOTICE OF INTENT AGENDA to the SUBMISSION AGENDA for the March 21-22, 2002 meeting.

Motion APPROVED unanimously

 

SUBMISSION AGENDA

a.

ITEM 114-301-R0102  - Approval of Proposal to Add a Certificate Program in Heavy Equipment Maintenance; Flathead Valley Community College

Regent Roehm MOVED for APPROVAL to MOVE item a. on the SUBMISSION AGENDA to the ACTION AGENDA for the March 21-22, 2002 meeting.

Motion APPROVED unanimously

b.

ITEM 114-401-R0102 - Approval to rename Associate of Applied Science in Nursing to Associate of Science in Nursing; Miles Community College

Regent Roehm MOVED for APPROVAL of Item b. as an ACTION ITEM today.

Motion APPROVED unanimously

c. ITEM 114-1005-R0102 - Approval to Transfer the Department of Social Work from the College of Arts and Sciences to the School of Pharmacy and Allied Health Sciences; The University of Montana-Missoula

d.

ITEM 114-2004-R0102 – Mission / Vision Statement; Montana State University-Bozeman

Regent Roehm MOVED for APPROVAL to MOVE items c. and d. on the SUBMISSION AGENDA to the ACTION AGENDA for the March 21-22, 2002 meeting.

Motion APPROVED unanimously

 

ACTION AGENDA

 

a.

ITEM 113-105-R1101 – Approval of Changes to Level II Procedures; Office of the Commissioner of Higher Education REVISED

b.

ITEM 113-106-R1101 - Academic Policy on Continuous Enrollment for Transfer Students; Montana University System REVISED

c.

ITEM 113-107-R1101 - Degree Check Sheet Requirement; Montana University System REVISED

d.

ITEM 113-1901-R1101  - Approval of Proposal to Add an Associate of Applied Science Option for Small Business Management Technology and a Small Business Entrepreneurship Certificate of Completion to the existing Accounting Technology program; Helena College of Technology of The University of Montana

e.

ITEM 113-2005-R1101 – Authorization to Establish a National Science Foundation Center for Learning and Teaching in the West; Montana State University-Bozeman and The University of Montana-Missoula (submitted by Montana State University-Bozeman)

f.

ITEM 113-2702-R1101 Authorization to reorganize the College of Education and Human Services; Montana State University-Billings

Regent Roehm MOVED for APPROVAL of all Items of the ACTION AGENDA AS AMENDED.

Motion APPROVED unanimously

     

 

OTHER

 

a.

Updated Transfer Report   Attachments

Please see attached revisions to MUS 2002 Transfer Project Outline

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The campus CEOs were requested to list their budget priorities.

Chancellor Sexton indicated he would like additional financing for the Montana Tuition Assistance program.  He believes it is necessary to build the dollars available to Montana resident students to help more of them attend college.  He said that funding for the MAP program will be expensive.  There is an implicit commitment to staff development and that will need support.  Staff salaries are important.  They are at the bottom of the food change, and their salaries need to be looked at since competition is increasing for those people.  He also believes that the Board needs to give greater support to two-year education.  He also noted that they have funded much of their investment in infrastructure and technology through student fees.

Chancellor Capdeville said they had suffered from a lack of planning but they are wrapping up their strategic plan the first of February.  Some issues for their campus are recruitment, infrastructure and residence life.  He indicated they are working with MSU-Bozeman on that issue.  Wiring for technology is a problem and Cowan hall was wired last year through student fees.  They have shortages in the libraries and salaries are a big issue.  He indicated that in Havre they do not have the same access to adjunct faculty that can  be found in the larger cities like Missoula.

Dean Gray indicated they are working on their new facility, and if it is approved by the legislature and everything works out well, it still won’t be ready until fall of 2004.  They need ways to compensate for a lack of space, especially since they have put in a new program and anticipate growth in students.  They are using creative means to accommodate the needs until the new facility is ready.  Currently they don’t have much in the way of weekend classes but that will be expanded, as will distance education classes.  They have constantly sought funding for new programs as they bring those programs up on a shoestring.  They are short of staff and one of the unfilled key positions is Outreach Director.  Currently he, the Academic Dean and others on campus are doing the duties of that position but they are unable to do it aggressively.  They are also advertising for a Director of Admissions and Marketing.

Chancellor Hulbert indicated he was in agreement with President Dennison on the concept of a bottom-up approach rather than a top-down model for budgeting.  He said the bottom-up approach would allow them to talk about two year programs, and help to serve site-bound people.  He indicated that no matter what the approach, Western will come out the same since they are the smallest campus, enrollment has been flat and they have an FTE driven model.  New programs and equipment are difficult to obtain.  But he appreciates the opportunity to describe his needs through the bottom-up approach.

Chancellor Gilmore indicated the most critical area would be to fund the entire pay plan through the appropriated budget, but they are trying to increase tuition enough to cover parts of it.  He said it is critical that there be a recognition that there is a base budget that must be provided.  It is the base cost of running the institution and it must be guaranteed in the base for each institution.  Each campus also needs to be looked at for Information Technology, equipment needs as well as other things.

Regent Semmens said it is essential that in preparing for the next legislative session and developing priorities, that the focus should not be bottom-up or top-down, but that it should be worked as a system being responsible to all constituents.  He hopes the approach will be as described by Associate Commissioner Sundsted with present law adjustments.  He would like to indicate to the legislature that MUS can help to move the state forward with key initiatives beyond present law such as 1) expanding and improving programs tied to market and employment demands, 2) rural development initiatives such as experiment stations, ag extensions, etc., 3) expanding two-year education programs and training, 4) investing in initiatives to improve resident student access, and 5) creative financial programs to improve technology, equipment and facilities to improve quality and productivity.  Regent Mercer said he would love to talk a lot more about this, but there is a Board of Education that sets issues for education.  There is a timeline to have information in to the Budget Office.  He stated that the Board will talk, and the staff will produce and submit a budget and then the Board will agree, and he doesn’t believe that with the way the Board conducts meetings they will ever get to these things.  He indicated they can’t ignore present law, and that they need to justify the return on investment for what they already have, and then show the need for adjustments because they could be doing better.  He suggested starting with priority proposals and putting them on the Agenda cooperatively with the Board of Education.  Chairwoman Thompson said she would be the first to admit the whole process is very mind boggling.  The Board of Education should have met twice last year but did not.  She indicated they will be meeting in February.  The sub-committee from OPI and the Board of Regents will work together on budgetary needs.  She also noted that Amy Carlson would like to move the September meeting to July.  She suggested it would be nice to have an easier and more inclusive way to handle the process.  The Regents also need to identify why they are going to the legislature for the funds.  Regent Semmens agreed that they needed to put time lines in place with action items they can agree on.

 

Report and Discussion of Montana University System Economic Development Efforts

 

Please see attached Community College Reports on Economic Development Efforts

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OLD BUSINESS

 

Update on Negative Fund Balances  Reports – Laurie Neils

a.

 

Ms. Neils referred to the updated documents provided and noted that a couple of the accounts, particularly in current unrestricted for MT Tech and UM-Western were caused mainly by voluntary retirements.  She indicated there should be no concern over those.  The payments are being made as outlined by the Board.  However, other accounts are troublesome and the campuses have a commitment to bring them into balance.  Regent Semmens inquired if President Dennison planned to make the Athletics program self supporting.  President Dennison indicated he knows of no athletic program in IAA that is self supporting, but at the end of 2003 there will be no recurring deficits.  Chairwoman Thompson noted that UM’s Continuing Ed fund balance deficit seemed to be getting larger and larger.  President Dennison agreed that it did for a time, but they now have a plan to reduce it.  He indicated this deficit was not the fault of the person managing the program.  In the latter part of the decade, they moved the enrollments into the regular programs.  That left Continuing Ed as a stand alone, and they did not have the time or personnel to develop alternative markets to replace the lost revenue.  If they are unable to turn this around, the program will be eliminated.  Regent Semmens asked President Gamble if the reductions to the General Operating Fund deficit were going to be built into the budget.  President Gamble indicated they are already built in.  Regent Semmens inquired further about the Athletics deficit.  President Gamble indicated they will clear the deficit by the end of next year, and the Athletic Department was faced with a challenge in preparation of its next five year plan since he accepts no miracles in the plans.  The new proposal looks good and he will provide a full report at the next meeting.

b.

ITEM 114-116-R0102 - MUS FY 02 Budget Modifications - Estimated Tuition Revenue; MUS

Associate Commissioner for Fiscal Affairs Rod Sundsted indicated that the item presented authorizes the five campuses to reflect updated estimates on enrollment.  The original budgets used their best estimates using a number of factors.  In the past they regularly came before the Board for adjustments, but during the last two biennia enrollment was below projections causing the campuses to have excess authority.  This now shows some positive planning improvements.  Included with the item is the updated enrollment by campus, along with tuition collections and proposed uses for the funds collected.  For most of the campuses this was caused by the enrollment numbers, but Great Falls had artificially too low an estimate and they reduced expenditures to match it, and now have an excess.  Regent Semmens indicated he also appreciated conservative planning.  Regent Mercer inquired about the marginal cost of students and what it means about the tuition policy.  In pointing to UM-Missoula he said that if you look at the $1.6 million that came in from unbudgeted students and see how it was used, $84,000 was put toward additional class sections, $50,000 to summer school, but the balance was for other than caused by additional students.  He suggested that perhaps the $134,000 is the actual cost of educating students.  What interests him is he would not want the Governor’s Budget Office or the Legislature to think that is all the marginal cost of a student is.  He said he is interested in attracting more students from Montana instead of just from out of state.  These numbers suggest the Board needs to look at the tuition policy because there may be more value to marginal students than just what they are paying.  They would help MUS because the marginal cost is lower and help Montana by staying here and bringing in business from outside.  He suggested discussing this issue at the next Work Session.  Another issue he questioned was who decided where the priorities were for these additional funds.  Was it decided at the campus, by the Board or the Commissioner, and were other priorities skipped over?  He is not opposed to this action today, but feel they should look at this in the future.  President Dennison commented that the marginal cost fails to take into consideration what was removed from the budget to meet the lower, more conservative estimated budget, and this replaces it.  Another item neglected was the $126,000 in graduate fee waivers.  That is an investment to bring them to campus.  There is another $200,000 which is committed to super tuition for certain programs.  All of these areas relate to the priorities established by the Regents and the campus as they plan their budgets.  Two percent is for contingencies, and  $400,000 is what they expect to pay out on retirements.  UM-Missoula pays out $1 million a year for accrued annual leave and 25% of accrued sick leave.  That will go on for a long time.  The infrastructure deferred maintenance and $100,000 for recruitment are included.  Those priorities are what guide their decisions and these adjusted budgets were approved with an unanimous vote by the committee which includes students who are full voting members.  Regent Hamilton indicated that President Dennison’s long range strategic plan covers all of these which are related directly to Board directions.  Regent Mercer indicated he is on the Board too, and should have a say in what is done.  He said the added students don’t cost as much as they think.  Regent Hur said it sounds like breaking down variable vs. fixed costs.  Regent Mercer indicated he was not looking for a breakdown, but wanted to look at how it was presented and he could take the dollars to use to benefit MUS.  Regent Hamilton reminded the Board of their involvement in establishing the priorities for the system, and that they have approved the strategic long range plans of the campuses in the past, and this shows they are doing as they said.

Regent Hamilton MOVED for APPROVAL of Item b. of  OLD BUSINESS.

Motion  APPROVED unanimously

 

END OF OLD BUSINESS


 

Chairwoman Thompson welcomed Representative Dave Lewis and Erik Burke to the meeting.

 

     Paul Polzin of the Bureau of Business and Economic Research at UM-Missoula gave a presentation on the Montana Economy.  On the morning of September 11, 2001, the economy was slowing and was about to enter a recovery phase from a very mild recession.  There was no negative GDP growth at that time.  The projections were that the economy would slow, bottom out and then turn up.  The WTC event was an important economic event.  It represented a loss of $20 billion in property alone.  Overall loss was about $90 billion compared to other events such as the Los Angeles earthquake with a loss of $25 billion, Hurricane Andrew with $25 billion and the floods in the Midwest with $23 billion in losses. Although the overall U. S. economy was hard hit by the events of September 11, both in business and consumer confidence, Montana’s economy fared much better.  The state is lacking in many of the industries hardest hit, with the exception of the travel industry.  Although this is not the tourist season, business travel to Montana has slowed affecting hotels, rental cars, and restaurants.  Factors that have slowed the Montana economy in the first part of 2001 were businesses closing due to high electricity costs.  During the summer, Montana’s economy had stabilized.  It is now forecast the Montana economy will increase slightly more slowly than in 2001 at about 1%.

 

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It was agreed that between now and the next meeting, Chairwoman Thompson and Commissioner Crofts would work on a plan addressing the issues and concerns raised on the development of budgets.  

 

Regent Semmens also recommended getting together with several of the Regents, and Dave Gibson from the Governor’s office and brainstorming for ideas and solutions to selling the MUS.  He also suggested input from the campus CEO’s and from outside the system, and creating something to bring to the next meeting to make it more productive.

 

NEW BUSINESS 

a.

Appeal

Regent Hur MOVED for APPROVAL to hear the appeal in Executive Session at the next meeting.

Motion  DEFEATED on 4-2 vote with Regents Hamilton, Roehm, Semmens, and Thompson dissenting.

Regent Hamilton MOVED to DENY  hearing the appeal.

Motion  CARRIED on 4-2 vote with Regents Hur and Mercer dissenting.

 

Following discussion of the appeal process it was agreed to re-evaluate the policy on what issues would be appealable to the Board of Regents.

b. ITEM 114-106-R0102–Leadership College; Montana University System  Memo
Regent Mercer indicated the objective of the Leadership College is to educate state and local people on issues in government, with round table discussions on controversial issues.  It would bring people together, train for the future and bring the MUS into contact with various people.  It has already been chartered and is financially hooked onto a foundation, or some other group.  When the governing board met, they felt the university people would be the best resource to assist in developing things to do, such as budgeting, marketing, etc.  And the MUS is the best resource to provide space.  Regent Mercer asked the Board to give authority to donate space, and to authorize, urge or give permission to University Relations people to work with the college and provide assistance in setting up the organization.  He stated he felt that even if UR was overworked, this would be the best thing they had to do.  Regent Roehm indicated his concern is the cost associated with this and that Jane Jellinski at MSU has the same concern.  Regent Mercer said it is an investment, not an expense.  He expects the space to be contributed free, and the UR people to contribute their expertise.  President Gamble indicated there is nothing in the proposal that causes him great concern except for the resource issues.  He understands it asks UR people from all the campuses to put together a marketing plan and business package to see if it will work.  But he requested the expectations be defined early on to give them a concept of depth and scope.  President Dennison feels that it should be supported by the Board of Regents and that the requests for space or assistance should be the burden of any of those asked.  All are expected to give some community service and they can choose where they want to apply it.  Regent Hamilton thanked the campuses for their support.  She noted however, that with the term limits in place, there are several groups already doing what the Leadership College proposes to do.  She mentioned the Local Government Center at MSU-Bozeman.  She had spoken to Jane Jellinski  there, and she was enthusiastic about this proposal and was willing to work with them.  Regent Hamilton also noted that there is funding available at the national level.  When considering these projects, it is necessary to find the appropriate partners.  There is expertise on the campuses which is an excellent opportunity.

Regent Semmens MOVED for APPROVAL of the Leadership College

Chairwoman Thompson indicated she spent a lot of time going through the list of board members and speaking with others.  Some of the concerns she has heard is that the concept is excellent, but the execution is a bit fuzzy.  She agreed with what she heard, and as far as partnerships or collaboration are concerned, there are a lot of entities in EDAG and she wondered why this couldn’t fit in there.  She noted that the faculty pledged their support in July, but when she looked at the Governing Board there was no one from Higher Education, with perhaps one person from K-12.  The other problem is the funding.  She asked if they would hook up with Montana Community Foundation 501-C-3 or a pass-through fund.  She felt the Board should look at separating this into two things.  There is no budget attached.  Some people will supposedly volunteer for awhile, but there will still be travel expenses.  Regent Mercer indicated he was the person from Higher Education on the Board.  He also mentioned Joyce Silverthorn and Eric Feaver.  He indicated he launched this idea at his first meeting, the Board told him to go ahead and work on it, but didn’t seem to be interested in it.  The people on the Governing Board are interested.  He is hoping to have a partnership with EDAG.  They might contribute to help finance it.  The execution is fuzzy because it isn’t set up yet.  He indicated that MUS might make it a little less fuzzy.  He is trying to give freedom to those who actually have to do it and experiment with it.  He wants to preserve its independence from MUS.  The funding would pass through rather than using a 501-C-3 or attaching it to the University.  It could be hooked to the Montana Community Foundation.  He indicated they would have to raise funds, but there is no budget attached because they don’t know what it will be.  If the Board of Regents agrees to give their support, there will be no expense incurred by the system that they don’t give voluntarily.  If at any time the MUS feels it is not beneficial they can stop helping.  There will be no bill to them.  They are asking only for space and expertise.  Regent Hamilton indicated that the campuses regularly offer their facilities to non-profits for no charge.  However, the Board does not assign duties to staff and they do not assign facilities.  They request the help of the campuses and Management should be allowed to offer what they can provide in staff support and space.  Regent Roehm indicated he would expect periodic reports on the activities, problems, and successes of the College.  In response to being asked about giving the Leadership College to the Local Government Center, Regent Mercer indicated that it would be perceived by others that “this is just another university thing,” but he “wanted it perceived that the university is just part of it.”  Chairwoman Thompson indicated that in 1997 there was a Round Table discussion by WICHE with funding from the Kellogg Foundation which might also be a funding source for this.  She indicated that the ideas from those Round Tables were the same concept of this proposal.  Unfortunately, the people they were trying to reach were not in attendance.  She asked Regent Mercer if there were some creative, unique ways to get people to learn about the College.  He indicated that his vision could change, but he suggested having classes at MSU this fall and also at another campus.  There would be a two day session with a curriculum covering such things as the structure of government, how to be a legislator, etc.  He indicated that with marketing assistance it would be sent to local government and he wants to put a hook in it with a hot topic, something controversial that would bring the media and others.  There is a desire among those in government and those interested in government to know more about it.  It would also give contact between all the groups.  Regent Hamilton indicated that the Board supports the concepts and the desire to partner but has skepticism about this proposal without an idea for a budget.  She said it might turn around and bite the Board.  If Regent Mercer goes out and says he tried it but couldn’t get the support he needed and it didn’t work, is he going to come back to the Board and complain about it?  Regent Mercer indicated he is trying to do it at the Board level to have the Board leading the MUS.  He is asking for assistance because it will help MUS and the state.  He indicated that if he did not get the help he had asked for, he would call the Board on the carpet and he would say there was no help or the help was no good.  He said he wants to use MUS because it would be good for them, but the real reason is they have the best people to make it go.  He said it wouldn’t fail for a lack of good ideas, but for a lack of attendees.

 

Motion was APPROVED on 5-1 vote with Chairwoman Thompson dissenting.

c.

ITEM 114-114-R0102 – New Policy on Negative Fund Balances; Montana University System

Regent Mercer indicated he was disturbed by the negative fund balances and thought it wise to create a policy to maintain positive fund balances and to deal with negative balances.  Regent Semmens indicated that it will be impossible to ever be without negative fund balances.  They happen in any large business or state agency from time to time.  He stated this policy acknowledges that will happen, but if they are chronic this policy has a plan for correction.  Regent Hamilton indicated this was a good policy, but that point 1 would be more appropriate as an explanation to the Policy rather than being part of it.  The policy should start with Item 2 and that she wants it changed to read “chronic and material” rather than chronic or material.”  Regent Semmens indicated that clearly there would be accounts that did not reach the $100,000 limit.

Regent Mercer MOVED to approve item c. WITH the changes NOTED.

Item c. of New Business was  APPROVED unanimously as amended.

d.

ITEM 114-115-R0102 – New Policy on Use of Timber Sales Revenues, Establishment of Balance Budget Reserve Accounts; Montana University System

Regent Mercer explained that this policy would give the proceeds to each campus rather than the permanent fund so that the money could be put to work immediately on such things as deferred maintenance and the list established by the Board.  He said the funds are significant and will make a difference on the campuses.  He also commented that the huge administrative fee which is taken up front needs to be addressed.  He suggested using the funds to cover the chronically negative fund balances.  Chairwoman Thompson said that making the funds available for negative funds would give people incentive to continue negative funds and she isn’t willing to do that.  She agreed with trying to eliminate the administrative charges which were illegal in other states.  Regent Semmens indicated he supports using the funds for deferred maintenance but does not support putting into the policy that it be used for negative fund accounts.  President Gamble is more compelled to use the funds on deferred maintenance than on deficits since good management means there should be no deficits.  He added that the policy the Regents just passed said there were to be no deficit funds.  They already have plans in place to eliminate their negative funds and believes they need to have the discipline to bring the budgets in line.  He would demand that of his people anyway.  President Dennison indicated he would prefer to put the money into an account and spend the interest.  He believes that when there is an opportunity to build an endowment it should be done.

Regent Mercer MOVED for APPROVAL of Item d. of  New Business after REMOVING everything under Procedures

Item d. of New Business was APPROVED as amended on a 5-1 vote with Regent Hamilton dissenting.

e.

Board of Regents Meetings: An Alternative Format; Regent Mercer

Item e. of New Business was deferred to the March 21-22, 2002 meeting with work by the subcommittee to be completed before that time.


With no further business to come before the Board, the meeting adjourned at 12:55 a.m.


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