Montana Board of Regents

 of Higher Education 

Minutes

 

Regular Meeting

 

July 7-9, 2004

 

Salish Kootenai College

P. O. Box 117

Pablo, MT 59855


These Minutes were approved unanimously by the Board of Regents at the September 22-24, 2004 meeting in Butte, MT


Academic / Student Affairs Items

System Issues

Administrative/Budget Items

Consent Agenda


THURSDAY, July 8, 2004

 

The Full Board convened at 7:30 a.m.

ROLL CALL

Roll Call indicated a quorum present.

 

Regents Present:  Mike Foster Vice-Chair, Kala French, Lynn Morrison-Hamilton, Richard Roehm, Mark Semmens, and Superintendent of Public Instruction Linda McCulloch, ex-officio.  Also present was Commissioner Sheila M. Stearns

Regents Absent: John Mercer Chair, excused, Lila Taylor, excused, and Governor Judy Martz ex-officio, excused.


President Joseph McDonald offered an invocation, and Lloyd Irvine welcomed everyone to the SKC campus and thanked President McDonald for bringing the campus into existence.  He said every community needs to have a community college for those who cannot attend the larger campuses.

    Acting Chair Mike Foster introduced Kala French, the newly appointed Student Regent.  He also welcomed Pam Joehler, the newest staff member at the Office of the Commissioner.  She replaces Laurie Neils.  Mr. Foster announced that Sue Hill has also retired and Kathy Crego from UM is taking her place.


APPROVAL OF MINUTES

      Regent Hamilton MOVED for APPROVAL of the Minutes of the May 19-21, 2004 meeting in Great Falls/Havre, MT

      The Minutes were APPROVED unanimously on a 5-0 vote.


ACADEMIC/STUDENT AFFAIRS ITEMS

a.

Collaborative Radiologic Technology - ITEM 123-1001-R0504 - Proposal to approve an AAS:  Radiologic Technology at The University of Montana – Missoula College of Technology and an AAS:  Radiologic Technology at the Montana Tech of The University of Montana College of Technology as a collaborative program    Summary    Proposal

   Regent Semmens MOVED for APPROVAL of Item a.

President Dennison explained the intent of this proposal is partly to be on-line, with development by both campuses.  It will decrease the cost of the courses.  Provost Muir indicated they have been working for two years in pursuit of accreditation and expect to have it in hand in a year or so.

   Item a. APPROVED unanimously on a 5-0 vote.

b.

Historic Preservation Technology - ITEM 123-1502-R0504 - Proposal to approve an AAS degree in Historic Preservation Technology; Montana Tech of The University of Montana   Proposal

   Regent Roehm MOVED for APPROVAL of Item b.

Chancellor Gilmore noted the community had requested Tech to offer this course.  Butte has a historical area that is in the process of being changed.  There is a lot of interest in the community for preservation of those sites.  Chancellor Gilmore said there are a limited number of positions for employment in the field, but they will offer this for people who have an interest but are not necessarily interested in employment.  The program would run as a cohort model for a limited number of years and then be cancelled, and would not affect accreditation.

  Item b. APPROVED unanimously on a 5-0 vote.

c.

Networking Technology - ITEM 123-1501-R0504 - Proposal to move the AAS degree in Networking Technology and the Network Technician certificate from options under Computer Technology in the COT Business Department to the COT Information Technology Department; Montana Tech of The University of Montana    Proposal

  Regent Roehm MOVED for APPROVAL of Item c.

  Item c. APPROVED unanimously on a 5-0 vote.

d. Report from the Nursing Coordinating Group

Regent Roehm gave a summary of the written report which was attached to the Agenda.  He explained that the two proposals on this Agenda were already in process before the new agreement between the Board of Regents and the State Board of Nursing was put in place to coordinate their processes.  Regent Foster noted that the Montana Hospital Association survey, and the Helena clinical survey are good examples of cooperation between community/business and the MUS.  Deputy Commissioner Barber indicated he had a format that might help the campuses cover more details in their contracts with providers for clinical slots.  Regent Roehm reported a few issues affecting how many, and what kind of nurses the system needs to produce are: 1) the high debt load forcing students to leave for larger cities on graduation to pay the loans; 2) some rural communities bring nurses in from the Philippines or Pakistan; and 3) demographic changes creating a need for more geriatric nurses than maternity.

    Regent Foster noted there should be a clear message to the Montana Hospital Association to continue to keep the Board of Regents informed on what they are doing so they can make better decisions.  Deputy Commissioner Barber pointed to the $27,000,000 which health care facilities are paying to cover their nursing shortages with traveling nurses, overtime pay, etc.  He also indicated there has been no discussion about the vacancy problem in the rural critical care hospitals.  Commissioner Stearns recommended the Board consider the new committee structure and how this issue and teacher education will fit under one of them.  Superintendent Linda McCulloch stated K-12 has also been most interested in the shortage of health care workers.  She indicated that HOSA has many chapters in rural Montana areas and are being coordinated under a health specialist.

e. Establish AS in Nursing - ITEM 122-1008-R0104 - Approval to convert the currently approved Associate of Applied Science program in Practical Nursing to a Certificate Program in Practical Nursing and establish an Associate of Science Degree leading to licensure as a Registered Nurse; The University of Montana-Missoula College of Technology    Summary    Proposal

Regent Roehm MOVED for APPROVAL of Item e.

Item e. APPROVED unanimously on a 5-0 vote as amended removing the tuition surcharge and contingent on approval by the Montana Board of Nursing.

f.

Establish AS in Nursing - ITEM 119-1901-R0503 – Approval to convert the currently approved Associate of Applied Science program in Practical Nursing to a Certificate Program in Practical Nursing and establish an Associate of Science Degree leading to licensure as a Registered Nurse; The University of Montana-Helena College of Technology  Application   Budget   Letter 1 from Carroll College   Letter 2 from Carroll College   

Regent Roehm MOVED for APPROVAL of Item f.

Item f. APPROVED unanimously on a 5-0 vote and contingent on approval by the Montana Board of Nursing.

g. University College - ITEM 123-2005-R0504 - Authorization to Reorganize Five University-wide Programs into an Administrative Structure entitled University College; Montana State University-Bozeman   Cover    Summary   Proposal

Regent Roehm MOVED for APPROVAL of Item g.

Item g. APPROVED unanimously on a 5-0 vote.

h.

Treatment of Childhood Trauma - ITEM 123-1010-R0504 - Authorization to establish the Montana Center for the Investigation and Treatment of Childhood Trauma; The University of Montana-Missoula   Summary    Proposal

Regent Semmens MOVED for APPROVAL of Item h.

This program will train individuals to deal with post-traumatic stress syndrome at school campuses.  Additionally, graduate students will be provided with research and field experience.  After working through this program, a member of the Cree Tribe will return to Rocky Boy to counsel students there.  The Blackfeet have also asked for training.

Item h. APPROVED unanimously on a 5-0 vote.


Following a ten-minute break, the Board reconvened at 9:20 a.m.

Regent Foster explained that the executive session scheduled for the previous day had been delayed to the September 23-24, 2004 meeting due to the absence of several Regents at this meeting.


i. MIEA Resolutions - Michael Munson, Student Representative – Informational Item – Regent Roehm

Following a presentation of these Resolutions, Regent Foster asked OCHE to respond to them at the September 23-24, 2004 meeting.  Commissioner Stearns indicated they would respond to those that apply to them, but others are inappropriate for their response.  In response to a question from Regent Hamilton, Ms. Munson indicated they intend to present these Resolutions to the Board of Public Education at their next meeting, to obtain a response from them on the ones that relate to BPE.

END ACADEMIC/STUDENT AFFAIRS ITEMS


DISCUSSION WITH CAMPUS CEOs  

            (President Dennison, Chancellor Sexton, Chancellor Ulrich, President McDonald, President Karas)

Over the course of several meetings, all of the CEOs, on a rotating basis, will have an opportunity to talk with the Board about important higher education issues, trends and directions, and concerns related to their campuses.  The Commissioner will determine the rotation.

 

Please see attached reports

The University of Montana-Missoula

President Dennison referred to the time and energy put into the budget initiatives by people on the campuses and in the Commissioner’s office, and said that after fourteen years of working with the legislature, not much has been accomplished.  During meetings in France and Germany, President Dennison said it was quite clear they have the same issues.  The British are ahead in moving to find alternative revenue streams for higher education.  Previously, Europe had almost no tuition, but now does.  He indicated they call it the Americanization of education.  President Dennison stated that Australia is also charging tuition.  Thirty to 35% of international students paid full fees, which has kept them solvent.  One British institution developed a huge telescope for their students, and now markets the telescopes to other universities.  President Dennison indicated they must argue to the legislature that the investment makes good sense, but he believes they need to consider ways in which the institutions can become self-sufficient.  He recognizes that whatever the campuses want to develop will need to come before the Board with a business plan for approval.  He has been in discussions with a private group about establishing campuses in China.  They can’t leave the country but they want education.  The privates need partners who provide degrees, and the campus also needs to go for accreditation.  This is a collaborative effort and UM will control the curriculum, realize revenue, and create opportunities for students to teach English and other courses.  Another idea, which is not finalized, is the development of a retirement community around the university.  President Dennison said it is being done elsewhere.  They would market it to alumni with an agreement that when they leave the property, they retain some of the earnings, but the rest is left to the campus.  He believes that where they are able, they should do some of these innovative things, but with careful oversight.  He does not want to forget education and become too far involved in capitalization.  Regent Roehm suggested a conversation with the Congressional Delegation to better identify the students MUS is trying to bring in and to eliminate some of the barriers that have been raised in the last couple of years.

 

Montana State University-Billings

Chancellor Sexton reported that on June 25th, the Foundation announced the first comprehensive capital campaign for the campus.  The goal is $21 million and they now have $14 million in hand.  The campaign kicked off when the market was at the bottom.  36% of the campaign will go to endowments for scholarships, 33% into capital projects, and 31% to college specific projects for the colleges on campus to move forward.  The campaign will be completed by 2007 and they expect to exceed their goal.  Chancellor Sexton referred to Policy 223.1 on Honorary Degrees, which permits the two doctoral granting institutions, MSU and UM to offer Honorary Doctorates.  He asked the Board if they would permit the other campuses to offer Honorary Degrees including Doctorates.  He believes it would be extremely helpful to them, and he would like to have that opportunity available.  He made a second request to the Board in regard to the missions of the campuses.  He would like the Board to reconsider the allocation model for FY06 and 07 to make modest allocations for research efforts on all of the campuses.  Chancellor Sexton believes that MSU-Billings could accomplish a lot of things.  Another concern the campuses have are certain state policies, more so than Board policies, that inhibit doing business with the private sector.  Chancellor Sexton believes they should be reconsidered, especially considering where the Shared Leadership initiatives will take MUS, particularly in technology.  He believes the MUS needs to partner with the private sector to achieve greater efficiency at the least cost, but the current environment does not permit it.  Chancellor Sexton’s last suggestion regarded the expectation from Shared Leadership that MUS will respond more proactively and aggressively to the needs of the work force, and much more by the two-years.  He expressed doubt that any CoT has core equipment in its training programs that isn’t ten to twelve years old.  The system wants to provide cutting edge training with antique equipment.  He recommended a bonding initiative for two years to bond capital improvements of perhaps $1.5 million.  He believes this would send the message to students and Montana businesses that MUS also is willing to invest to improve the quality of work force training.

    Regent Semmens said he would appreciate details on the policies that Chancellor Sexton thinks should be addressed.  He said the Board needs to realistically assess and communicate the resources required to achieve the objectives of Shared Leadership, to ensure that a gap doesn't develop between expectations and the ability to achieve those expectations with the available resources.  Regent Roehm recommended to the Commissioner the issue of role and scope for the campuses, which were dropped during Restructuring.  He now hears a request to consider research at the four-year campuses, and permission to award honorary degrees.  He asked the Commissioner to pursue the issue of the best use of allocated funds, and campuses pushing to fulfill their own perspectives.  He did not expect her to have this for the September meeting, but when she was able to do so.  Regent Hamilton asked about allocations for research, since she understood that most research was grant funded.  She asked if the campus did not have funds to write grants.  Chancellor Sexton replied that all faculty are expected to do research as part of their positions to stay on the cutting edge. MSU-Billings is working with St. Vincents on research, and a grant will be developed through Big Sky Economic Development.  At the same time, with Shared Leadership it would be appropriate for the Board to show their approval and interest with this investment.  Regent Foster suggested they could sit down and flesh out their ideas on research.  He also wanted to know what policies Chancellor Sexton was referring to that create barriers to the MUS working with the private sector.

 

The University of Montana-Western

Interim Chancellor Ulrich shared a handout on evolving strategies at UM-Western.  They want to stabilize and increase enrollment to about 1500 FTE.  Fixed costs will be spread over more students.  The Experience One recruitment has been going very well, and freshman applicants are up to 371 compared to 252 the previous year.  Non-resident enrollment is up 71%.  They have a successful rodeo and other programs that draw these new students.  In FY05, all freshmen will go through the Experience One program.  They have had expanded communication with the community and campus on the Experience One, with one on one discussions, and regular newsletters and there is now only minimal opposition.  The natural horsemanship program received a lot of national attention in the horsemanship world.  He announced they have selected a new Chancellor from a very strong pool, Richard Storey.  He has more than 25 years working with block programming.  He will arrive on Sunday and will attend the meeting on July 19.  Regent Foster stated this was a terrific report on the success at UM-W.  He asked if the information had been shared with the community, and Chancellor Ulrich indicated they have sent newsletters.  Regent Semmens indicated it would be welcome news in the community that the Experience One program shows promise as a niche for The University of Montana-Western.

    Commissioner Stearns reported that WICHE had offered funding to a team from Montana to attend their workshop on recruitment and retainment strategies to be held in Minneapolis.  Regent Hamilton, Bruce Marks, Susan Patton from MT Tech and the Commissioner will be attending on August 19 and 20.

 

Salish-Kootenai College

President Joe McDonald provided a handout prepared by Bob Peregoy.  Their complete IT curriculum is on-line and has great potential.  One teacher lives on a ranch in Medora and teaches from there, while another taught from Australia.  They have been reaccredited for ten years.  President McDonald indicated there is a balance that needs to be kept on commitment of resources, faculty load, and relationships between foundations and the campuses.  He said there are seven tribal colleges and they are not exclusive but accept everyone in their communities.  SKC has 60 non-beneficiary students applying for admission to the nursing program who will be turned away because of no space.  Some will apply elsewhere, and some will wait until next year to reapply.  The tribal colleges are required by law to maintain at least 51% native students, and the last graduating class had 46% non-beneficiary students.  He requested the aid of the Board in obtaining funding from the Appropriations Committee to cover the non-beneficiary students.  He also reported that Rene Dubay has visited all of the TRIO program participants and keeps them on track.  He noted there are 36 tribal colleges in the nation, the newest being in Arizona.  There is an organization covering the world scene on indigenous peoples and they found that around the world, indigenous people are in the same condition at Native Americans.  He mentioned those groups from Norway, Taiwan, Japan, Siberia, Australia and New Zealand.  Commissioner Stearns indicated that SKC and President McDonald are a national treasure.  He is Dean of the National Tribal Colleges, has honorary degrees from both campuses, and as new tribal colleges are established across the country, they turn to him for guidance.  Regent Semmens thanked President McDonald and his staff for the data they provided on non-beneficiary students.  He indicated the Budget Committee has endorsed this view and will do what they can to help.

 

Flathead Valley Community College

President Jane Karas said that Flathead Valley Community College is a comprehensive AA, AS, APS and certificate institution and many of their graduates transfer to four-year institutions, including UCLA without loss of credits.  They also have partnerships with four-year campuses to share degrees, and therefore can offer four-year and Master degrees.  President Karas indicated that as well as hosting the Elderhostel program, the campus also involves the high schools in a program for students to take college courses, meeting monthly with high school counselors.  As part of the effort to provide programs needed by local businesses, they now provide an HVAC program, as well as partnering with the Department of Commerce to provide super host training.  FVCC has seen an enrollment growth of 27%, causing the need to rent temporary storage, rent space from the hospital, and the implementation of interactive TV, which was facilitated by Senator Burns.  Commissioner Stearns asked President Karas why she would have concerns if a college of technology would call itself a community college.  She replied the biggest issue is the CoTs are offering what the community colleges offer.  Further, Code and Statute define a community college, with a different funding formula, and there could be confusion in the local community who might think they have a community college.

Office of Public Instruction

Superintendent Linda McCulloch reported their top budget priority is Indian Education for All which was mandated by the Legislature without funding.  All students must learn about the unique culture and heritage of Native Americans.  She wants to see the achievement gap closed, since Native students test lower than white students, and almost 50% do not graduate from high school.  Last year K-12 was awarded $50,000 and they maximized every dime of it.  This subject cannot be one chapter in a book for one year.  Many students have never touched relics of the Indian culture, so OPI is preparing a traveling display for hands-on training around the state.  Other states are looking at Montana to see how it implements Indian Education for All.  They will have a working summit on October 15 and 16 to create a definitive plan of action.

END DISCUSSION WITH CEOs


Return to Top

Following a five-minute break, the Board reconvened at 11:05 a.m.

SYSTEM ISSUES

a.

Committee and Meeting Structure – ITEM 123-110-R0504 – Amend Policy 201.7 By-Laws ART VII. Committees.  (Committee and Meeting Structure for the Board) – Regent Mercer

Vice Chair Mike Foster reported that Chairman Mercer had proposed four committees:  Budget and Audit Oversight, Academic/Student Affairs, Management, and Workforce Development.  He envisions the Regents would provide to him and the Commissioner information about which committee would be of interest to each of them, remembering to balance their time between this job, and their other walks of life.  Chair Mercer believes the Nursing Coordinating group would fall under the Workforce Development Committee, and that Committee would reach out and involve various industries, with the same arrangement for the other committees.

Regent French MOVED for APPROVAL of Item a.

Regent Hamilton said she had a number of concerns, but felt it was unfair to raise issues with Chair Mercer being absent, and requested the help of the Commissioner and staff.  In reference to the Budget and Audit Oversight Committee, Regent Hamilton indicated the Board has the responsibility to determine what is delegated to Staff to do.  Some of the items she believes are more in the realm of management responsibilities.  She said most of her concerns are in the language.  The same holds true for the proposed Academic/Student Affairs Committee.  Regent Roehm said the Board should have general oversight, but many of the things outlined for the Academic/Student Affairs Committee are functions of Management.  He had the same concerns with the proposed Management Committee, believing that review of salaries, staff items and format were no problem, but the Board should only have general oversight of bargaining by providing general direction to Management.  He felt Workforce Development was redundant.  Regent Semmens said they need to decide what really needs to be a standing committee.  He believes that the Management and Workforce Development committees should be as needed.  He suggested they could have two standing committees, with the creation of subcommittees under those as needed.  Regent Semmens made one specific comment on the sixth bullet in the Academic/Student Affairs Committee, which doesn’t make sense for the Board to review all proposals since some don’t need a deep look.  He said it should not be the role of the Committee to approve or disapprove, but to review and make recommendations on significant proposals.  He supports moving forward with standing committees but would rather err to the general than the specific.  He asked if they should defer this item to the September, 2004 meeting and to visit with staff and Chairman Mercer between now and then to address these issues.  Vice Chair Foster indicated that unless there were other comments, it would be wise for Regent French to withdraw her motion and suggested that any Regent with concerns communicate with each other and Chair Mercer.  He urged them to use the time wisely in communicating their needs, and then it would be taken up at the September meeting.  Commissioner Stearns said she would work with staff and the Board to complete a draft document for the September meeting, which would have a better chance of conclusion.  Vice Chair Foster reminded the Regents to consider which committees they wanted to serve.

Regent French WITHDREW her motion.

Regent Roehm reminded the Board that two or three meetings ago, they had voted and adopted the Academic/Student Affairs committee as he had proposed.  His point was that a lot of people had gone through it and he believed it would be a good place to start although it didn’t venture into the management side.

Item a. was DEFERRED to the September 23-24, 2004 meeting.

b.

Trust Lands – ITEM 123-109-R0504 - Administrative Assessments on University Land Grant Income:  Board Options – LeRoy Schramm   Attachment 1   Attachment 2   Attachment 3

Legal Counsel LeRoy Schramm gave a brief background of this item.  Following an extended discussion of the pros and cons of all possible actions, Regent Roehm made the following motion.

Regent Roehm MOVED to direct Chair Mercer and Commissioner Stearns to arrange meetings as necessary with Senator Barkus and the PEPB to share the memo from LeRoy Schramm in order to negotiate a settlement with the Legislature.  If it becomes clear by the September meeting there will be no resolution, the Board may then seek an opinion from the AG, or may proceed to litigation.

Regent Hamilton said she appreciated the Board wanting to be measured in their actions, but believes this is another stall tactic.  The Board has the responsibility to make hard decisions and she will vote against it.

  Motion APPROVED on 4-1 vote with Regent Hamilton dissenting.


At 12:00 p.m., the Board recessed for lunch with student leadership followed by a meeting with classified staff representatives.

The Board reconvened at 1:30 p.m.


Vice Chair Foster announced that Regent Roehm was absent and excused for the balance of the meeting.

SYSTEM ISSUES continued

c.

Report on the Quality Project – Informational – Roger Barber

Deputy Commissioner Roger Barber told the Board they now had a possible definition of quality as presented.  Vice Chair Foster asked if Mr. Barber would provide the names of the members of the Quality Committee and that people who see them can give them input.  Regent Semmens thanked Mr. Barber and the committee for their work on this daunting task.  He had a couple observations from materials he had read that measure inputs compared to outputs.  One is graduation rates with an employer satisfaction survey.  He also mentioned access and affordability, as well as success with distance learning.  Regent Hamilton asked if the committee was considering the faculty aspect of quality as far as preparation, accomplishments and publications.  Deputy Commissioner Barber indicated that at the suggestion of faculty members, they had inserted the second bullet on innovative research, and the advancement of a body of knowledge.  Regent Semmens indicated Item 2 seemed to relate entirely to the research institutions and said it seemed some could relate more broadly to faculty that can’t be gauged by research and patents.  Regent Hamilton noted that students looking at campuses look at the caliber of students they will be joining.  She believes there should be something included for admissions standards.  President Dennison said scholarships would be a good addition, which includes fiscal and intellectual resources.  He said there is also the economic capital.  Another one to add would be access to continuing education by Montanans.  Dean Mary Moe noted that creative endeavor was not included, nor were benchmarks for citizenry.  Commissioner Stearns indicated these were good additions, but she reminded the Board when they first undertook this issue, the purpose was to ask the legislature to provide more funding because quality was at risk.  This requires more clarity on what quality is – which could be internal or external.  She indicated there are a variety of people who are not versed in the terminology used by the system.  Commissioner Stearns believes it must be shown to the legislature that if there is quality Montana as a whole benefits.  The final version of this item will be on the September 23-23, 2004 meeting agenda.

END SYSTEM ISSUES


Return to Top


Vice Chair Foster provided an update from the joint meeting with the PEPB the day before.  Of the six suggested initiatives, the three that were settled on were workforce training, access to post-secondary education, and distance learning.  This was not necessarily the order of priority.  There was also an unanimous vote on a resolution that calls for the legislature, MUS and the Board to continue efforts to work more closely together on mutual issues.  Finally, there was unanimous agreement to continue the agreement between PEPB, the Board of Regents and the MUS on the accountability goals and reporting, and it will expire in January 2005.  Commissioner Stearns indicated that it was agreed the reporting would be biannually rather than annually.  Vice Chair Foster indicated this was the last meeting of the PEPB this year, as they now go to the bigger committee, and then move to the legislative session.  Commissioner Stearns noted there will be mutual discussions between Dave Gibson of the Governor’s Office, Bob Person in OCHE, and herself almost immediately to focus on what would be the first item for a committee bill, or which budget initiatives would fit and get them into the appropriations process.  They will continue to stay in close contact with Eddye McClure.  She mentioned that when Pam Joehler left the Legislative division to work for OCHE, Alan Peura was hired as her replacement.  Regent Semmens asked if there would be legislation called to move the initiatives forward, or if only three groups needed to endorse these, the PEPB, Shared Leadership and the Board.  Commissioner Stearns indicated all this would happen, but since the Board will next meet after the September 14 meeting of the committee for approval of bills, perhaps a conference call meeting should be held beforehand.  She also reported they have begun a state tour of 15 cities for community meetings on Shared Leadership.  Included are legislators from the area, civic leaders, business leaders, and local citizens.  The meeting in Miles City competed with a golf tournament, yet legislators came to ask questions. There has been a positive response to this outreach.


ADMINISTRATIVE/BUDGET ITEMS

a.

UM Responses to Athletic Panel Report – Informational – President Dennison   Attachment A    Attachment B   Attachment C    Attachment D   Attachment E   Attachment F   Attachment G

President Dennison gave a rundown on the Responses provided the Board, and indicated one change on page 7 of Attachment A.  He will also provide an updated version of Attachment F showing more detail.  Pam Joehler gave a brief explanation of the Responses from the Commissioner’s Office that were provided the Board.

b. Updated Athletics Financial Plan; Montana State University-Bozeman - Informational Item  Organizational Chart

President Gamble had said before that the Athletics Fund would be balanced this year and would remain balanced.  However there have been stiff cost increases, which outstripped those planned for in 2002, particularly the cost of health benefits.  Additionally, several decisions were made over the last year that increased expenditures, a couple of those being safety and general welfare issues.  President Gamble indicated they have put more thought into a long term plan, and there will be a small contingency reserve left when they finally balance the budget.  President Gamble indicated they learned from the experience at UM, and found two items they had not been doing themselves, but they have changed the procedures to do them in the future.  Regent Semmens asked if President Gamble was confident of booster support.  He replied he did have some concerns, and had the NCAA’s auditors come to prove the theory.  Regent Semmens noted there was a fivefold increase in expenditures over five years.  Vice Chair Foster indicated some of the increased costs are out of the control of the campus, but others were caused purely by a conscious decision on the part of the campus.  He indicated he would continue to have concerns where they make conscious decisions and continue to have a deficit, and this being a sizeable deficit, asked President Gamble to be cognizant of that as they move forward.  He said if the money isn’t there, they shouldn’t spend it as if it were.  He repeated they did not want to go through this same thing again.

c. Update on FY03 Reported Negative Fund Balances – Laurie Neils/Pam Joehler

Pam Joehler gave a brief overview of the written report provided to the Board.

d. Long Range Building Priority List – ITEM 124-103-R0704  - Long Range Building Priority List – Rod Sundsted

Rod Sundsted explained that this item is a component of the budget process.  He cited one change to the document for the UM-Missoula College of Technology.  The construction amount should be changed from $41.0M to $24.5M.  President Dennison stated the Helena College of Technology received planning money the last time around, but they now have been moved down the priority list.  In that context, he believes it will be important to think of bond issues for the equipment as well as the buildings.  President Dennison said he saw no reason to believe the College of Technology requirements are lower than other campuses.

Regent Hamilton MOVED approval of Item d.

Regent Semmens noted the pressing and real imminent building needs of the Colleges of Technology, which on a positive note is good due to increased enrollment in the two-years.  However, Great Falls College of Technology is bursting at the seams, and there are similar needs in Helena, Missoula, and Billings.  He asked if it made sense to work with Dave Gibson to advance two-year campuses, and to propose a two-year education facilities and equipment funding.  The MUS has become a victim of its own success.  Now there is the need for resources to accommodate the needs of those facilities.  Regent Semmens asked if the Colleges of Technology could seek local mill levies, or could obtain bonded authorizations at the local level.  If not, he suggested giving thought to some creative, locally based mechanism to solve this issue.  Vice Chair Foster believes it all goes hand in hand.  He indicated that in ongoing discussions with legislators and leaders this needs to be in the discussion.  He believes the Board needs to take the time to explain to PEPB or other legislators and leaders so they understand this is an important component of the whole picture.  Commissioner Stearns indicated this may be another item for Shared Leadership.  She indicated PEPB asked if the Board wanted anything drafted for a committee bill.  This did not necessarily mean they would support what was presented.  The Commissioner stated that the MUS has 60% of all the state buildings in Montana.  Maintenance is not only an MUS problem, but also a statewide problem.  Vice Chair Foster indicated that time is short until the Executive Budget is put together, and the newly elected Governor will have a little time to tweak it.  This would behoove the Board to discuss the issues of budgets with both candidates.  Regent Semmens said he believed both gubernatorial candidates are focused on the issue of need and opportunity of two-year education in the state.  Rather than throwing in the towel, he believes they could package the budget in terms of the two-year education facility and equipment needs being the result of the success of MUS in this area.  He said interest rates are at a historically low point, and the bonds will go lower when the short-term interest rate is increased.  Dean Mary Moe stated that at the Great Falls College of Technology they have been forced to do a lot of night classes, larger class sizes, and distance education.  She reported that faculty are suffering fatigue from the long hours and heavy loads.

  Item d. APPROVED unanimously on 4-0 vote.

Regent Semmens requested the Commissioner and Rod Sundsted to give further thought to the idea of a bonded program for the needs of the two-year campuses, and to come back with ideas at the September 23-24, 2004 meeting.


Following a ten-minute break, the Board reconvened at 3:25 p.m.


e. Affiliated Foundations Policy - ITEM 122-109-R0304 – Amend Policy 901.9 Campus Affiliated Foundations

Regent Hamilton MOVED approval of Item e.

  Item e. APPROVED unanimously on 4-0 vote.

f. Foundation Operating Agreement - ITEM 123-2007-R0504 – Foundation Operating Agreement; Montana State University-Bozeman

Regent Hamilton MOVED approval of Item f.

  Item f. APPROVED unanimously on 4-0 vote.

g. Foundation Operating Agreement - ITEM 123-2703-R0504 – Foundation Operating Agreement; Montana State University-Billings

Chief Legal Counsel Leroy Schramm indicated the two previous items needed to be amended from biannual to annual reporting since the Board had changed the Policy in Item e.

Regent Hamilton MOVED approval of Item g.

Item g. APPROVED unanimously on 4-0 vote.

h. Joint Venture Format – ITEM 123-111-R0504 – Format to be used with Policy 407 - University System/Employee Joint Ventures; Montana University System   Form

Legal Counsel LeRoy Schramm indicated the language at the beginning of the form had been tightened up to protect confidential information or trade secrets which might be protected by state or federal privacy laws.  The form will provide uniform reporting and will be placed as an appendix to the policy so the campuses will have access to it.  Anticipating that the form will be modified over time, LeRoy Schramm asked the Board to endorse the form rather than actually approving it so that changes would not have to be brought before the Board.

Regent Hamilton MOVED to make the form an Administrative form

Regent Semmens MOVED Endorsement of this form for use with intellectual property joint ventures

Regent Semmens said that at some meeting before the Session, it would be helpful to have a 45-minute session with Leroy Schramm, Tom McCoy and his people to get a better understanding of this issue and what should be included in each proposal.  Perhaps it should include minimum royalties, milestones and payments.  He believes this issue will get increasing attention.  LeRoy Schramm indicated it was a good idea, as this policy was created in response to legislation that mirrors the wording of the policy, and it is appropriate for the Board to add more requirements if they so desire.

  Motion to Endorse APPROVED unanimously on 4-0 vote.

i. Increase Authorization on Skaggs Building – ITEM 124-1001-R0704 – Increase in Authorization for Addition to Skaggs Building; The University of Montana-Missoula   Attachment

Regent Semmens MOVED for APPROVAL of Item i.

  Item i. APPROVED unanimously on 4-0 vote.

j. Increase Authority for Chemistry/Biology Building - ITEM 124-1503-R0704 - Authorization to increase spending authority previously granted by ITEM 118-1501-R0303 to renovate two rooms (approximately 1700 sq. ft) in the Chemistry/Biology Building to accommodate the interim home of the National Center for Health Care Informatics; Montana Tech of The University of Montana    Attachment

Regent Hamilton MOVED for APPROVAL of Item j.

 Item j. APPROVED unanimously on 4-0 vote.

k. Name the Classroom Building " Daniel G. Block Hall" - ITEM 124-1601-R0704 - Authorization to Name the Office Classroom Building the Daniel G. Block Hall, The University of Montana – Western

Regent Semmens MOVED for APPROVAL of Item k.

 Item k. APPROVED unanimously on 4-0 vote.

l. Space Issue for Office of Commissioner – Informational – Regent Hamilton

Regent Hamilton reported that the SAF Board had asked staff to look at other opportunities or other models to house the SAF, GSL and OCHE programs together, and after due diligence have been unable to identify any possibility.  In June, the SAF Board voted to ask the Commissioner to work to secure other space for OCHE and GSL.  Regent Hamilton said the implications are for significant increases in the cost of rent and utilities.  Commissioner Stearns commented that SAF owns the building and is out of space.  OCHE and GSL lease from them on very favorable terms.  It will be necessary to alert the Budget Office that there may not be such favorable rates in the future.  She reported that OCHE has also grown in terms of the numbers of people administering grants. Rod Sundsted noted there are options outlined in his memo.  He said there needs to be a placeholder for more lease funds.  It will not be possible to find comparable to what OCHE is paying now.

m. Annual Campus/Agency Budget Update – Informational – Rod Sundsted   MUS Summary   Campus Attachments

No Action was Required on Item m.

END ADMINISTRATIVE/BUDGET ITEMS


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CONSENT AGENDA

Staff Items:

Regent French segregated Item b. of Staff Items from the Consent Agenda.

a.

ITEM 124-100-R0704 – Staff; Office Commissioner of Higher Education
c. ITEM 124-1500-R0704 – Staff; Montana Tech of The University of Montana
d. ITEM 124-1500A-R0704 – Staff; Montana Bureau of Mines and Geology
e. ITEM 124-1501-R0704 – Authorization to Confer the Title of Professor Emeritus of Environmental Engineering upon Thomas G. Waring; Montana Tech of the University of Montana
f. ITEM 124-1502-R0704 – Authorization to Confer the Title of Professor Emeritus of Mathematical Sciences upon Dennis R. Haley; Montana Tech of The University of Montana
g. ITEM 124-1600-R0704 – Staff; The University of Montana-Western
h. ITEM 124-1900-R0704 – Staff; The University of Montana-Helena College of Technology
i. ITEM 124-2000-R0704 – Staff; Montana State University-Bozeman
j. ITEM 124-2001-R0704 – Authorization to Confer the Title of Professor Emeritus of Mathematics upon Gary Bogar; Montana State University-Bozeman
k. ITEM 124-2002-R0704 – Authorization to Confer the Title of Professor Emeritus of Nursing upon Helen Jacobson Lee; Montana State University-Bozeman
l. ITEM 124-2003-R0704 – Authorization to confer the Title of Professor Emeritus of Anatomy upon Dwight E. Phillips; Montana State University-Bozeman
m. ITEM 124-2400-R0704 – Staff; Cooperative Extension Service
n. ITEM 124-2700-R0704 – Staff; Montana State University-Billings
o. ITEM 124-2800-R0704 – Staff; Montana State University-Northern
p. ITEM 124-2850-R0704 – Staff; Montana State University-Great Falls College of Technology

Labor Agreements/Other

a.

ITEM 124-102-R0704 - Approval of the Tentative Agreement with the Montana District Council of Laborers; Office Commissioner of Higher Education   Memo    Agreement

Academic/Student Affairs Items

a.

LEVEL II Memo (Presented to the CAOs at this meeting)

b. Level I Memo
c. Perkins Report – ITEM 124-101-R0704 - Quarterly Perkins Report; Office Commissioner of Higher education   Attachment
d. Update on Canadian Access at 150% of resident tuition; Montana Tech of The University of Montana

Administrative/Budget Items

a.

Expend Student Computer Fees - ITEM 124-1602-R0704 – Authorization to Expend up to $50,000 of Student Computer Fees; The University of Montana-Western
b. Computer Fee Employment Allocation – ITEM 124-1002-R0704 – Student Computer Fee Employment Allocation; The University of Montana-Missoula

Regent Hamilton MOVED for APPROVAL of all Consent Items except for Item b. of Staff Items.

 With the exception of Item b. of Staff Items, the Consent Agenda items were APPROVED unanimously on 4-0 vote.

Staff Items continued:
b. ITEM 124-1000-R0704 – Staff; The University of Montana-Missoula

Regent Hamilton MOVED for APPROVAL of Item b.

Commissioner Stearns noted corrections to Item b. on pages 8, 14 and 20.   Vice Chair Foster indicated Chair Mercer requested he convey his concerns on a couple of increases – one for Charles Maes and one for Marie Porter.  He wanted to know where the money would come from.  President Dennison indicated those were interim increases for a short period of time while Wayne Hogan was gone.  Those salaries were returned to their original amounts.  The funds were from the departure of Wayne Hogan.

 Item b. was APPROVED unanimously on 4-0 vote 

END CONSENT AGENDA

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The Meeting recessed at 5:00 p.m.



FRIDAY July 9, 2004

 

The board reconvened at 8:40 a.m.


STUDENT REPORTS

Please see attached reports.

 

END STUDENT REPORTS


    Open Forum for Public Input on MONTANA UNIVERSITY SYSTEM ISSUES

MCA 2-3-103. Public participation ...The agenda for a meeting, must include an item allowing public comment on any public matter that is not on the agenda of the meeting and that is within the jurisdiction of the agency conducting the meeting. However, the agency may not take action on any matter discussed unless specific notice of that matter is included on an agenda and public comment has been allowed on that matter…

NO PUBLIC INPUT

CONTINUATION OF UNFINISHED ITEMS 

 

Note:  Items not completed by the end of the meeting will be carried over to the next regularly scheduled meeting.

President Dennison provided the Board with Schedule A and Attachment F (updated) for the Responses to the Athletic Panel.  He will have a report at the November 18-19, 2004 meeting dealing with the issue of royalties.


DISCUSSION WITH CAMPUS CEOs continued

 

President Dennison handed out the latest Graduate Survey for The University of Montana-Missoula.

 

Darrel Hammon, President of Miles Community College reported that Jim Lucas was selected as the distinguished alum at Miles Community College.  He has been involved for over 50 years with the college.  President Hammon also noted that they have exceptional athletes and MCC won the MONDAK four years in a row, as well as the regional golf tournament this year and went to the nationals in Arizona.  One student took third in the nation.  He thanked Chancellor Sexton and MSU-Billings for the partnerships they have made possible.  MCC received funds from FIPSE to put together a program for LPN to RN completion in Billings and Glendive.  The first six graduate this year and a full slate of ten enters this fall.  They are limited to ten by the Montana Board of Nursing.  This fall they will deliver the program to Glendive and Sidney with 32 slots.  Miles Community College also has partnerships with the high schools and colleges, the Eastern Montana Health Network, and the Health Care Center in Sidney which helps with staff and equipment.  Without that aid, their programs could not go on.  MCC is also working with the UM College of Technology in Missoula to deliver other health care programs for Eastern Montana.  The majority of their graduates are staying in Montana, and like Salish-Kootenai, they have a waiting list for their programs.  President Hammon indicated that close to 40% of their graduates this year already had degrees.  He noted that all of Eastern Montana has a declining population.  Their in-district students pay $80 per credit whereas out-of-district students pay $100 per credit.  He also reported that the new dorms have been a great recruiting tool.  Dean Michaels of the School of Business Administration at MSU-Billings called President Hammon to report that some of his best students come from Miles Community College.

 

Terry Hetrick, President of Dawson Community College updated the Board on two items.  There is no exact date yet, but they will have the groundbreaking ceremony in the next couple of weeks.  The contracts with the construction company are not yet signed, but they will be passed to the Commissioner.  A contingent from DCC visited campuses and farmers to gauge interest in the Farm and Ranch Management programs.  In Plentywood, there were no applicants, but there may be in spring.  This week and next they are interviewing applicants and hope to have three or four sites in operation.  They continue to contact ranchers and farmers to enroll.  These programs make a significant difference to farmers in dealing with current hurdles.  They are learning software for their everyday farm accounting.  They have enrolled over 70 people since fall of 2000, and after one semester, the attrition is nearly zero.  He indicated they will probably ask to expand to another site or two next spring.

 

END DISCUSSION WITH CAMPUS CEOs


Commissioner Stearns thanked Bruce Marks and GSL for helping SKC to sponsor this meeting.  She mentioned some of her extensive travel around the state and what she had been learning about the connection between research stations and value-added agricultural production.  In regard to term limits, she asked if anyone on the campuses was doing research on the consequences as per a request from a legislator.  Cathy Conover indicated they are at Bozeman, and there may be some follow-up studies.  Commissioner Stearns congratulated George and Jane Dennison on their 50th anniversary.  Vice Chair Foster thanked Linda McCulloch for attending the entire meeting, and he also thanked Joe McDonald for hosting the Board at such a wonderful facility, and for providing unique entertainment and hospitality.
With no further business to come before the Board, the meeting adjourned at 9:35 a.m.

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