[00:00:02]
WELL, WE ARE GOING TO CALL TO ORDER OUR FINANCE COMMITTEE MEETING, AND I HAVE TO READ ALL THIS APPROPRIATE STUFF.
DO WE HAVE A QUORUM, MR. CHANCELLOR? WE DID, YES.
THAT'S GOOD. THEN I WILL DO THE REST.
WE DIDN'T. I WASN'T GOING TO READ THE REST OF.
IN ACCORDANCE WITH CHAPTER 5516 IS OUT OF THE MEETING.
I CALLED FOR THE FINANCE COMMITTEE MEETING OF THE BOARD OF TRUSTEES OF DALLAS COLLEGE FOR APRIL OF 2022 AT 1:01 P.M..
MEMBERS OF THE PUBLIC WHO HAVE FOLLOWED THE INSTRUCTIONS OF THE DALLAS COLLEGE BOARD OF TRUSTEES WEBSITE FOR REGISTERING TO SPEAK DURING THE PUBLIC COMMENT PORTION WILL BE GIVEN 5 MINUTES TO SPEAK.
THIS COMMITTEE MEETING IS BEING BROADCAST OVER THE INTERNET AND AN AUDIO RECORDING AND TRANSCRIPT OF THIS MEETING ARE BEING MADE AND WILL BE AVAILABLE TO THE PUBLIC ON THE BOARD'S WEBSITE AFTER THE MEETING AT A LATER DATE.
[2. Certification of Notice Posted for the Meeting]
AND JENNIFER, YOU HAVE CONFIRMED THAT WE HAVE A QUORUM.THE CONCERN THAT IT'S BEEN POSTED IN ACCORDANCE WITH LAW.
I CERTIFIED THIS MEETING WAS POSTED ACCORDING TO SECTION 5511054, THE TEXAS GOVERNMENT.
CAN WE HAVE ANYONE TO SPEAK? NOTHING. ALL RIGHT.
I TOLD JOHN EARLIER THAT SINCE I SUGGESTED THAT THE DEPARTMENT HEAD SHOULD GIVE US A MINUTE OR TWO OF ANY OVERVIEWS THAT YOU MIGHT HAVE THAT YOU MIGHT WANT TO SHARE WITH US, IT'S NOT PART OF THE PROGRAM TODAY.
YOU GOT THAT BLANK LOOK ON YOUR FACE.
SO WELL, WE'VE GOT A SHORT SCHEDULE, SO I LIKE IT.
BUT I WILL TURN IT OVER TO SCOTT AND LET HIM INTRODUCE JESSIE.
[4.1. Doing Business at Dallas College: Vendor Partner TJ's Painting]
AND WE'LL DO THAT FIRST.AND JESSICA AND I WILL GET STARTED ON THE BUDGET STUFF OF WHAT WE'RE DOING AND THEN WE'LL MOVE. PUERTO RICO.
ALL RIGHT. I'LL LET YOU OFF THIS POINT.
JUST I JUST WANTED TO TAKE A SECOND TO RECOGNIZE A ONE OF OUR PARTNERS HERE.
HERE IN THE COLLEGE. AS YOU ALL KNOW, MY TEAM IS SPECTACULAR.
THEY DO THINGS THAT NOBODY ELSE WANTS TO DO, AND THEY DO IT WELL.
BUT THERE ARE TIMES WHEN WE NEED HELP.
WE DON'T HAVE THE EQUIPMENT AND MANPOWER TO DO SOME THINGS.
AND ONE OF THOSE AREAS ON A LARGE SCALE IS THE TEAM.
SO IF YOU LOOK THROUGH THE COLLEGE, THERE IS AND WAS A LOT OF PAINTING, POWER WASHING.
AND SO I WENT TO LOOK FOR A PARTNER.
RIGHT. AND SO, OF COURSE, WHEN I LOOK FOR A PARTNER, RIGHT, I WORRY ABOUT UNDER-UTILIZED BUSINESSES AND BUSINESSES, MINORITY BUSINESSES, THAT KIND OF THING.
SO AND THEN THERE'S A HOST OF OTHER CRITERIA THAT HAS TO BE THERE, TOO.
SO ARE THEY GOING TO HAVE THE FINANCIALS? DO THEY HAVE A CO OPERATIVE AND ALL THIS STUFF? RIGHT. SO I WAS LUCKY ENOUGH TO BE SEARCHING AROUND AND I LANDED UPON JAPAN.
SO I CALLED THE NUMBER AND I INTRODUCED MYSELF AND I SAID, HEY, YOU GOT A BUNCH OF STUFF THAT NEEDS TO BE PAINTED. WHAT DO YOU GUYS THINK? AND THEY SAID, ABSOLUTELY RIGHT.
SO I STARTED IN MOUNTAIN VIEW, AND THAT'S KIND OF HOW THIS ALL WENT ABOUT TRUSTEE GOING THROUGH THERE AND SAW THEIR WORK AND SAID, WHO DID ALL THIS? AND SO I TOLD THEM THE STORY ABOUT THIS COMPANY.
AND THEN MY TEAM, WHEN THEY GET A HOLD OF SOMETHING GOOD, IT SPREADS LIKE WILDFIRE.
THEY START SOUNDING ANYTHING PAYMENT.
CALL HIM. SO NOW HE'S WORKING ON, I DON'T KNOW, FOUR OR FIVE OF THE CAMPUSES AND DOING GREAT. AND AGAIN, A LOCAL HUB TECH BUSINESS THAT THE COLLEGE IS HELPING.
I THINK HE WANTED TO JUST TALK A LITTLE BIT ABOUT HOW WE HELP THIS COMPANY.
SO, FIRST OF ALL, THANK YOU FOR LETTING ME BE HERE TO SPEAK TO YOU ALL.
SO BUT IT ALSO GAVE ME THE OPPORTUNITY.
I'VE ACTUALLY BEEN TRYING TO WORK WITH DALLAS COLLEGE FOR A LITTLE BIT AND GOT THE OPPORTUNITY. ACTUALLY, I MET SCOTT YEARS AGO AT A RVCA MEETING AND HE MENTIONED SOMETHING ABOUT THE CO-OP, DIDN'T KNOW WHAT IT WAS, SO I JUST KIND OF WROTE IT DOWN IN MY NOTES AND I WENT HOME KIND OF GOOGLED IT AND I WAS LIKE, I NEED TO GO.
SO THEN SO I WENT LIKE TRYING TO GET A CO-OP, WHATEVER THAT WAS.
AND THEN I FINALLY WAS ABLE TO DO THE TIPS CO-OP, AND THEN I'VE HAD A LOT OF OPPORTUNITIES COMING THROUGH THERE.
AND THEN SCOTT SAW US THROUGH EMAIL, AND THEN THAT'S HOW WE'VE BEEN ABLE TO WORK TOGETHER.
AND THROUGH THAT FIRST PROJECT WE'VE BEEN ABLE TO IT'S KIND OF ROLLED INTO MORE PROJECTS, GIVEN THE OPPORTUNITY TO WORK CONSIDERABLY AROUND RICHLAND ON A COUPLE OTHER CAMPUSES SIMULTANEOUSLY AND HELP US BUILD CAPACITY AND REALLY GIVEN THIS OPPORTUNITY TO GROW.
[00:05:03]
AND I APPRECIATE IT TOO, BECAUSE IT'S HARD FOR PEOPLE, KIND OF HEAVY PEOPLE TO EMPLOY.SO PAINTERS, WE HAVE 15 THAT WE KEEP ALL THE WAY.
AND THEN IN SUMMER WE REALLY RAMP UP AND PUT A FEW MORE JOBS OUT.
BUT WE KEEP 15 TO, I WOULD SAY, 15 TO 24 TIME.
AND THEN IN SUMMER WE KIND OF ROUNDED OFF DEPENDING ON HOW MUCH WORK WE HAVE AND HOW MUCH WE'RE GETTING. OH, HAVE YOU BEEN IN BUSINESS? SIX YEARS. SIX YEARS? THAT'S FANTASTIC.
I CAN TELL YOU THAT WHEN I TOOK MY TOUR OF MOUNTAIN VIEW, THOSE BUILDINGS WERE YELLOW, HORRIBLY DIRTY YELLOW.
AND IN THIS PARTICULAR PICTURE, THE RISERS THERE WERE JUST COMPLETELY BLACK.
JUST THIS TEAM CAME IN AND CLEAN UP.
AND THESE PICTURES DON'T REALLY DO JUSTICE TO THE TEAM.
SO IF YOU DON'T KNOW HOW HARD IT IS TO PAINT, IT'S AMAZING, YOU KNOW, ALL THE STUFF THAT'S IN THE WAY THAT THIS IS WHERE EACH ONE HAS THEIR PICTURE.
SO HE PAINTED THIS WHOLE GYM, DID A SPECTACULAR JOB.
CAN YOU IMAGINE THE PREP WORK? IT WAS GREAT. SO HE'S DONE A SPECTACULAR JOB FOR THE COLLEGE, AND I APPRECIATE HIM BECAUSE THAT'S MY TEAM.
WE'VE HELPED HIS BUSINESS AND IT'S JUST THE HANDRAILS WERE ALL FLAKING OFF THAT THEY WERE JUST UGLY AND NOW THEY LOOK LIKE THEY'RE BRAND NEW.
TO PAINT A PIECE AROUND PIPE IS A SKILL.
I MEAN, THEY DO A PHENOMENAL JOB.
AND SO, YOU KNOW, WHATEVER WE HAVE TO DO, WE PROBABLY KEEP HIM AS BUSY AS HE WANTS TO BE RIGHT NOW. BUT BUT WE NEED TO KNOW HOW WE MAKE THIS TYPE OF QUALITY VENDOR AVAILABLE TO THE GENERAL PUBLIC. I DON'T KNOW IF IT'S LIKE WE SEND A LETTER THAT SAYS THIS IS WHAT HE DID FOR US AND YOU SEND IT TO THE CHAMBER OF COMMERCE.
PEOPLE ARE. BUT WE WE JUST NEED TO TAKE ONE LITTLE EXTRA STEP TO ALWAYS JUST GIVE A LITTLE BIT MORE. YOU GAVE A LOT TO US.
WE NEED TO GIVE A LITTLE BIT MORE TO YOU TO MAKE YOUR BUSINESS SUCCESSFUL, BECAUSE WHAT YOU REALLY HAVE IS YOU GOT FOUR OR FIVE PEOPLE WHO WORK FOR YOU.
THEY'RE YOU FIVE YEARS FROM NOW AND THEY'LL BE LEAVING AND THEN WE'LL WE'LL KNOW WHO THEY ARE. AND THAT'S WHAT HAPPENS IN THE TRADE, RIGHT? I MEAN, YOU WORK FOR SOMEBODY ELSE FOR A WHILE AND YOU LEFT AND HE'S LEGACIES, COOPERATIVES AND OTHER INSTITUTIONS.
SO THE COOPERATIVE IS BIGGER THAN BALANCE.
SO HE'S HE'S BEEN ABLE TO DO A WORK WITH OTHER OTHER COMPANIES AND OTHER INSTITUTIONS, MUNICIPALITIES, ETC., BECAUSE OF THE PARTNERSHIP WE HAVE.
THANK YOU. THAT'S GREAT. NO, GO AHEAD.
I WAS GONNA SAY, WHAT IS OUR CPA AND THE COOPERATIVES, IF YOU CAN JUST.
BLACK CHAMBER CONTRACTORS, ASSOCIATION.
THAT'S WHERE WE FIRST. AND THEN THE CO-OP WOULD BE THE COFFEE IN PARTICULAR WAS CALLED CENTERS. IT'S CALLED A LOCAL PURCHASING SYSTEM.
IT'S JUST A COOPERATIVE THAT EASES THE RIGORS OF PROCUREMENT, THE FORMAL BUSINESS, ETC..
AND THERE'S BEEN TALK ABOUT THE STATE OF TEXAS HAS GROUPS OF DIFFERENT COMMODITY CODES THAT WE CAN ACCESS, THAT THEY HAVE ALREADY VETTED THEM AND THEY KNOW THAT THEY MEET THE CRITERIA AS FAR AS US BEING ABLE TO PROCURE FROM THEM AND THEREFORE WE DON'T HAVE TO COME BACK TO BOARD TO GET APPROVAL.
WE CAN GO THROUGH THESE STATE CONTRACTS AND THERE'S A VARIETY OF THOSE.
IT JUST MAKES IT EASIER FOR BUSINESSES TO DO BUSINESS WITH PUBLIC INSTITUTIONS.
THAT'S GREAT. WHAT IS WORKING ON WITH PURCHASING TO ESTABLISH A WHAT'S CALLED JOB ORDER CONTRACT IN WHICH ALLOWS US TO USE ESPECIALLY VERY SMALL BUSINESSES THAT ARE JUST TRYING TO GET STARTED, THAT DON'T HAVE THE ABILITY TO GO THROUGH THE FORMALIZED BIDDING PROCESS AND BIDDING A $10 MILLION PROJECT.
THAT'S ONE THING. BUT WHEN YOU'RE DEALING ON GETTING HOW MUCH HAVE YOUR PROJECTS RANGED FROM A FEW THOUSAND TO SEVERAL THOUSAND AND PROBABLY FROM LIKE SMALL LIKE 5 TO 10, SO LIKE 70, 80.
YEAH. AND SO EVEN SOME OF THOSE MAYBE SMALLER THAN THAT.
BUT SCOTT, THEN ONCE WE'VE GONE THROUGH THE FORMALIZED PROCESS OF ESTABLISHING THIS POOL, IF YOU WILL, BY COMMODITIES OF WHAT THEY CAN DO, THEN SCOTT CAN BASICALLY JUST AWARD THOSE AND LESS BY PURCHASING.
HE CAN HAND THOSE OUT WITHOUT GOING THROUGH THIS FORMAL THE FORMAL PROCESS THAT WE'RE REQUIRED TO. THERE ARE DOLLAR LIMITS WE LOOK AT.
WE DON'T WANT TO BE DOING THIS ON BIG DOLLAR THINGS, BUT IT IS THE MOST EFFICIENT AND EXPEDIENT WAY AND QUITE FRANKLY, THE BEST WAY TO HELP THE ECONOMY HERE OF PEOPLE TRYING TO MOVE UP.
HOW MUCH IS YOU HOW MUCH IS YOUR CAPACITY CHANGED IN THE LAST LITTLE BIT? HAVE YOU GOTTEN BIGGER AS WE'VE BEEN HAVING TO HIRE MORE OF MORE AND MORE PAINTERS?
[00:10:01]
WE'LL SEE WHAT WE DO IN TERMS OF THAT, BECAUSE THAT WAS GOING TO BE MY YOU SAID YOU WERE ABLE TO BUILD YOUR CAPACITY.SO THAT WAS GOING TO BE MY QUESTION BY HOW MUCH HAVE YOU BUILT YOUR CAPACITY? A MINUTE AGO, YOU SAID YOUR JOB WAS RUN AROUND 10,000.
NOW YOU CAN TAKE THOSE INTO 70 TO 80000 RANGE.
IS THAT THE HIGHEST AMOUNT OF JOB THAT YOU'VE BEEN ABLE TO SECURE? SO IS IT ALL DEPENDS ON THE TIMELINE.
SO SPECIFIC JOBS HAVE SPECIFIC TIMELINES AND THEN DEPENDING ON THAT AS WELL, HOW MANY GUYS WILL GO ON THE PROJECT OR PUT ON THE PROJECT.
BUT WE'LL TAKE ON WE'VE BEEN ABLE TO TAKE ON.
I WANT TO SAY WE DEFINITELY HAD TO BUILD A BIGGER CREW AND MANAGE AND HAVE MORE OF A BACKLOG FOR PROJECTS.
SO THIS MEANS IF WE GET TOO MUCH BACKLOG, THEN WE KNOW IT'S AFFECTED BY THAT OR JUST THE ONGOING EXECUTION, REGULATORY TALK AND ALL THIS.
WHAT WAS THE BIGGEST CHALLENGE THAT YOU HAD IN GROWING YOUR BUSINESS? I WANT TO SAY IT WAS LIKE OUR NETWORK LIKE A LOT.
BUT IT WAS GOING TO BE THE HARDEST PART WOULD BE LIKE NETWORKING, BUT THEN LIKE KNOWING EXACTLY WHAT YOU HAVE TO DO TO WORK WITH A SPECIFIC ENTITY.
LIKE AS FAR AS LIKE, OH, MY FINANCIALS AREN'T THERE NOW I'VE GOT TO WORK ON THAT.
LIKE, OH, LIKE I NEED A RESUME OF PROJECTS OR I'LL HAVE TO GIVE THEM A BUNCH OF REQUIREMENTS. IT'S KIND OF THOSE TYPE OF THINGS, I THINK, WHERE THE HEART IS BECAUSE PEOPLE LIKE IT. IT'S KIND OF ONE OF THOSE THINGS WHERE IT'S LIKE WHOEVER YOU WORK WITH, WELL, WE NEED THE OPPORTUNITY TO HELP YOU WORK THROUGH WHAT WE DO, DO YOU KNOW WHAT I MEAN? AND THEN LIKE THE BONDING AND THEN KIND OF ALL THE PAPERWORK, LIKE THE BACK END STUFF. OH, THE DIFFERENT ORGANIZATIONS THAT I HAVE HERE.
HAVE YOU FOUND THOSE TO BE BENEFICIAL TO YOUR BUSINESS AND OFFERED YOU SUPPORT AND RESOURCES THAT HAVE HELPED PEOPLE? SO LIKE ON THE BONDING, WE MET ANOTHER GUY FROM THE ART SPACE.
HE DOES ALL MY BONDING AND I WOULD SAY I MET HIM AT SCOTT AT RVCA AND LIKE WE HAD TO DO OUR WORK TO LIKE WE CAN, LIKE A LOT OF PEOPLE THINK YOU JUST SHOW UP AND GET WORK, BUT YOU HAVE TO SHOW UP AND FOLLOW UP AND THEN LIKE KEEP SHOWING UP IN ORDER FOR THEM TO EVERYBODY TO KNOW YOUR FACE AND THEY KNOW LIKE, OH, THIS GUY DOES.
SO EVERY TIME THEY SEE YOUR FACE, THEY'RE LIKE, THIS IS WHAT HE DOES.
VERSUS JUST SHOWING UP ONE TIME AND THEN SAYING LIKE, OH, THIS DOESN'T WORK.
SO YOU KIND OF GO AND YOU GET LIKE LITTLE LIKE LITTLE NUGGETS FROM HERE AND THERE, AND YOU KIND OF JUST HAVE TO DO YOUR OWN RESEARCH TO FIGURE IT OUT.
I HAD HEARD THAT EXPRESSION ON THE ONE OF THOSE NUGGETS.
DO YOU DO YOU ONLY DO COMMERCIAL WORK BECAUSE I HAVE A LISTING NEEDS PAINTING RIGHT NOW.
DO WE DO? LIKE WE PROBABLY PAINTED ONE HOUSE LAST YEAR AND ON THIS YEAR WE'VE PROBABLY DONE MORE THAN ONE HOUSE.
YOU CAN'T AFFORD IT. VERY NICE.
GOOD FOR YOU. CONGRATULATIONS.
THAT'S GREAT. AND WE HAVE BUSINESS CLASSES HERE.
[4.2. FY 2021-22 Spring Budget Update]
ONE OTHER ITEM THAT'S ON THE REGULAR AGENDA TODAY IS BOND COUNSEL, HIS ADVISERS, TO BRING BACK WHAT WE CALL A REIMBURSEMENT RESOLUTION.THIS DOES NOT THE BOARD IS NOT ADMITTING TO ANY DEBT FORGIVENESS.
WHAT IT IS, IS A PROACTIVE ABILITY.
IT'S BASICALLY THE SAME ONE THAT WE HAD THAT WE DID TWO YEARS AGO.
AND BOND COUNSEL BASICALLY SAYS YOU NEED TO HAVE REFRESH THIS THING EVERY COUPLE OF YEARS OR SO. LATER IN THE REGULAR AGENDA, WE HAVE THIS REIMBURSEMENT RESOLUTION.
QUITE FRANKLY, SAME ONE WE DID TWO YEARS AGO.
AND WHEN WE WERE FIRST ISSUING THE BOND WHEN WE DID THE 2019, BUT WE DID THIS YEAR.
SO IT'S JUST TIME TO REFRESH THAT AND BRING IT UP TO DATE.
THERE'S NO IT DOESN'T EXPIRE NECESSARILY, BUT BOND COUNSEL HAVE SAID DO IT EVERY TWO YEARS. AND THAT'S WHAT WE'VE DONE.
IT'S BEEN TWO YEARS. SO JOHN STARTED WITH YOU ON OUR WILL AND THANKS A LOT.
CAN YOU JUST TAKE A QUICK CAN YOU TAKE QUESTIONS ON THAT NOW OR DO YOU WANT TO.
GO AHEAD. ALL RIGHT. I JUST WANT TO MAKE SURE THAT I'M UNDERSTANDING IT, REALLY.
YOU HAVE IT ON THE RECORD, TOO, THAT THIS REIMBURSEMENT RESOLUTION I MEAN, IT'S NOT
[00:15:02]
COMMITTING US TO ANY PROJECTS.IT'S IT'S THE TYPE OF THING THAT IF WE FIND OURSELVES IN THIS SITUATION THAT WE DON'T ANTICIPATE DUE TO THE FRIVOLOUS LITIGATION, YOU KNOW, THAT WE CAN'T ISSUE BONDS.
WE STILL HAVE THE CAPACITY, THE FINANCIAL CAPACITY, EVEN WITHOUT BONDS, TO COVER UP TO $450 MILLION WORTH OF PROJECTS.
IS THAT RIGHT? WELL, WHAT IT ALLOWS US TO DO PROACTIVELY IS IT BASICALLY SAYS WHEN YOU ISSUE DEBT, YOU CAN REPAY YOURSELF WITH THAT DEBT FOR ANY EXPENSES YOU INCURRED ALONG THE WAY, BOTH IN SOFT COST AND HARD COST.
BUT IT IS NOT A COMMITMENT THAT WE ARE ISSUING BONDS.
IT JUST A WAY FOR LIKE I SAID, WE'VE HAD ONE.
MY GOSH, YOU KNOW, I GUESS I FIRST DID ONE WHEN I CAME HERE 11 YEARS AGO, BUT WE PRETTY MUCH ISSUED A NEW ONE BASED ON THE 2019 BOND STUFF BACK THEN.
NOW WE'RE JUST REFRESHING THAT SAME ONE WE DID BACK THEN.
SO, I MEAN, WE ANTICIPATE WINNING THIS FRIVOLOUS LAWSUIT THAT HAS COST TAXPAYERS MILLIONS OF DOLLARS AND DELAYS HIGHER MATERIAL COSTS AND HIGHER.
YES. YES. BUT IN THE EVENT THAT WE DON'T, WE CAN STILL COVER THE FOUR AND $50 MILLION WITHOUT ISSUING BONDS.
RIGHT. I MEAN, THIS AND PROJECTS THAT YOU THAT WE PURSUE WOULD BE SPECIFICALLY AUTHORIZED WITH OUR EXISTING FINANCIAL CAPACITY, EVEN IF WE DON'T HAVE THE ABILITY TO ISSUE BONDS.
RIGHT. THAT'S NOT WHAT THIS REIMBURSEMENT RESOLUTION IS FOR.
THIS REIMBURSEMENT RESOLUTION IS TO PAY YOURSELF BACK WITH AUTHORIZED DEBT FOR EXPENSES INCURRED ON CONSTRUCTION PROCESS.
BUT IF WE CAN'T PAY OURSELVES BACK, WE STILL YOU KNOW, WE HAVE THE RESERVES AND THE OTHER FINANCIAL ASSETS THAT TO FINANCE THESE PROJECTS.
CORRECT. BUT YOU DON'T HAVE YOU DON'T NEED A REIMBURSEMENT RESOLUTION YOURSELF BACK WITH YOUR OWN MONEY. WE WELL, LET ME EXPLAIN TO ALSO WHAT WE WOULDN'T DO IS IF THAT DIDN'T HAPPEN AND WE DIDN'T HAVE THE BOND MONEY AVAILABLE, THEN THEY WOULD BE COMING BACK WITH WITH A PROPOSAL THAT WOULD GO TO REVENUE BONDS.
WE WOULDN'T REALLY BE LOANING THE MONEY, SO WE WOULDN'T HAVE TO PAY IT BACK.
THIS IS A WHOLE LOT OF LIKE FOR YOU GUYS THAT ARE IN A CAMPAIGN RIGHT NOW.
IF YOU LOAN YOUR CAMPAIGN SOME MONEY, YOU HAVE TO FILL THE FORMS OUT PROPERLY TO BE ABLE TO REIMBURSE YOURSELF WHEN YOUR FRIENDS CONTRIBUTE MONEY AND TO REPAY YOUR CAMPAIGN.
I MEAN, IT'S IT'S A MATTER OF A LEGAL THING ABOUT PREPARING THAT.
WHAT IF BUT THE WHAT IF WON'T EVEN OCCUR.
BECAUSE IF WE DON'T HAVE BOND MONEY, WE'RE NOT GOING TO LOAN OURSELVES 400 OR 200 OR NOTHING. WE'RE GOING TO COME BACK TO WHAT THE FINANCIAL ADVISOR SAID, AND WE'RE GOING TO APPROVE REVENUE BONDS TO DO THE NECESSITY THAT WE CAN DO AND SUPPORT WITH REVENUE SO THAT SO THEY ARE TOTALLY TWO DIFFERENT EXERCISES.
AND WE'RE DOING THIS TAKING THIS ACTION ON ADVICE OF BOND COUNSEL AND COUNSEL.
THANK YOUR FINANCIAL ADVISORS.
SO NOTHING NOTHING IS ANY ADDITIONAL COMMITMENT OR NOTHING CAN CAN OBLIGATE US IN ANY FORM OR FASHION UNTIL HE COMES BACK AND SAYS, I'M GOING TO GO FORWARD.
AND IF HE DOES THAT, WE ALREADY HAVE HAD ADVICE OF COUNSEL THAT WE'RE NOT GOING TO BORROW FROM OURSELF, WE'RE GOING TO SELL REVENUE BONDS AND THERE'LL BE A POT OF MONEY THERE, THE SAME AS IF IT WAS GO BOND.
AND THIS RESOLUTION COVERS EITHER SOURCE OF OF ANY TYPE OF DEBT.
THANK YOU. OKAY, LET'S GO ON TO THE BUDGET OF THIS.
BECAUSE WE HAVE IN JUNE A COUPLE OF MEETINGS THAT WE HAVE WHICH WE CALL THE BUDGET WORKSHOPS. SO LOOKING FOR A DIFFERENT NAME.
BUT IT IS ONE OF THOSE THINGS THAT WE WANT TO GIVE YOU AN UPDATE OF WHERE WE ARE SO FAR THIS YEAR. AND I TURN IT OVER TO ASK AND LET HER TALK ABOUT EVERYTHING THAT WE HAVE GOING ON. AND I'LL BE THE COLOR COMMENTATOR AS WE GO.
THE MORNING STARTED OFF KIND OF GIVING YOU ALL A PREVIEW OF ALL THE WONDERFUL, EXCITING STUFF THAT WE HAVE GOING ON THROUGHOUT OUR ORGANIZATION.
AND SO HERE WE COME, THE BORING PEOPLE TO TELL YOU ALL HOW WE'RE PAYING FOR IT.
SO FIRST OF ALL, I WANT TO DO SOMETHING A LITTLE BIT DIFFERENT.
I WANT TO BE RESPECTFUL OF OUR TIME THAT WE STARTED LATE AND THE PEOPLE THAT ARE COMING BEHIND US. SO I KNOW YOU ALL HAVE HAD AN OPPORTUNITY TO LOOK THROUGH THIS PRESENTATION.
DO YOU HAVE ANY QUESTIONS THAT YOU WOULD LIKE ME TO ADDRESS AS I GO THROUGH HERE? AND THEN THAT WAY I KNOW WHAT TO CONCENTRATE ON? I HAVE A COUPLE ON SLIDE SIX, THE NO COST EXTENSION OF ADDITIONAL YEAR GRANTED WITHOUT REQUEST. I DON'T KNOW WHAT THAT MEANS.
AND THEN ON THE SLIDES WHERE YOU'RE SHOWING A DEFICIT, IF YOU COULD EXPLAIN WHAT THE DEFICITS MEAN AND THEN ON EXPENSIVE REVIEW.
SLIDE 15 UNDER OPERATING OPERATING EXPENSES, YEAR TO DATE, 39.4%.
[00:20:08]
HOWEVER, 58% OF THE CALENDAR, WELL, THE OPERATING YEAR FISCAL YEAR HAS LAPSED.SO WHAT DOES THAT MEAN IN TERMS OF KIND OF NOT TRACKING WITH WHERE WE ARE IN THE FISCAL YEAR? ALL RIGHT.
SO I THINK THAT'S THE GIST OF MY QUESTIONS.
ANY OTHERS HELPS YOU GET THROUGH IN A PRODUCTIVE WAY? IF YOU CAN HIGHLIGHT ANY SAVINGS THROUGHOUT YOUR PRESENTATION RELATED TO THE ONE KIND OF CONSOLIDATION SLIDE OR SLIDE 12, WE'LL SPEND SOME TIME ON THAT QUITE A BIT.
ALL RIGHT. BUT DON'T SKIP YOUR TEAM NOW.
SO THROUGHOUT THE YEAR, WE PROBABLY TOUCH SOMEWHERE IN AN OPERATING BUDGET OF ABOUT THREE QUARTERS OF $1,000,000,000.
AND JOHN AND I DON'T DO THAT RIGHT.
WHEN WE TALK ABOUT BUDGET, WE HAVE A LARGER FINANCE TEAM, BUT WE DO HAVE A SPECIFIC CORE TEAM THAT IS DEDICATED JUST TO OUR BUDGET, AND THAT'S THESE INDIVIDUALS RIGHT HERE.
SO I WANT TO PUBLICLY ACKNOWLEDGE THE HARD WORK THAT THEY DO DEALING WITH A LOT OF THE DIFFERENT SCHOOLS AND THE WORK GROUPS.
YOU WILL HEAR US USE THE TERM HUB FREQUENTLY WHEN WE TALK ABOUT BUDGETS.
AND BASICALLY WHAT HUBS HAVE BEEN DESIGNED TO IS TO TAKE THE PLACE OF COLLEGE ALLOCATIONS. SO EVERY SCHOOL AND EVERY WORK GROUP IS IS ASSIGNED TO A HUB, RICHLAND BROOKHAVEN, CEDAR VALLEY, BECAUSE THAT IS THE WAY OUR ERP SYSTEM WAS DESIGNED.
IT'S DESIGNED TO BE LOCATIONAL.
SO WE HAD TO THEN PUT EVERYTHING TOGETHER IN A IN A BUCKET WHERE THEY COULD ACTUALLY MANAGE IT. SO YOU'LL HAVE THE SCHOOL OF EDUCATION, THEIR HUB IS BROOKHAVEN AND SO ON THROUGHOUT ALL THE OTHER SCHOOLS.
AND SO THEREFORE WE HAVE THESE BUDGET MANAGERS THAT ARE DEDICATED TO THOSE HUBS AND HELPING THOSE TEAMS DEVELOP AND ADMINISTER THEIR BUDGETS.
EVERY BUDGET MANAGER HAS TWO JOBS A SCHOOL UP IN A LOCATION AND EVEN MORE B STUDENT SERVICES AND OPERATIONS AND OTHER.
SO THEY HANDLE A WIDE VARIETY OF IT.
WE'VE GOT A MATRIX ORGANIZATION NOW BEING ABLE TO HAVE TO DO TWO THINGS.
THANK GOD. BOTH SIDES. THREE TO.
SO WHAT HAVE WE DONE SINCE SEPTEMBER ONE? WE HAVE MAINTAINED OUR TRIPLE-A BOND RATING, AND THAT DOES HAVE A VALUE FOR US.
AND I'LL GIVE YOU AN EXAMPLE OF WHAT THAT MEANS.
SO WE ANTICIPATE THIS FIRST TRANCHE OF OFFERINGS THAT WE WANT TO DO FOR BONDS, $350 MILLION. IF WE HAD A LESSER BOND RATING, LET'S SAY A DOUBLE DAY OR MAYBE LESS, WE WOULD BE COSTING THE TAXPAYERS AN ADDITIONAL $4 BILLION IF WE WERE TO ISSUE THAT WITHOUT THIS CURRENT WITHOUT THIS CURRENT RATING THAT WE HAVE.
AND I LIKEN THAT TO LET'S SAY WE'RE BUYING A HOME OR WE'RE BUYING A CAR.
RIGHT. YOU ALL HAVE BEEN IN THAT POSITION.
WE ALL KNOW YOU HAVE A 600 CREDIT SCORE VERSUS A 720 CREDIT SCORE AND YOUR PERCENTAGE LOOKS A LITTLE BIT DIFFERENT WHEN YOU WALK IN THAT DOOR.
I CAN DRIVE THAT SAME VEHICLE AND IT MAY COST ME $200 MORE THAN IT MAY COST YOU.
YOU KNOW, DEPENDING ON WHAT YOUR CREDIT RATING IS.
IT'S THE SAME WAY FOR US WHEN WE GO INTO THE BOND WORLD.
AND AGAIN, THAT'S IMPORTANT. THE SOUND FISCAL STEWARDSHIP AND MANAGEMENT OF THIS BOARD AND OF THE COLLEGE ALLOWS FOR THAT TRIPLE-A BOND RATING THAT WE TALKED ABOUT BEFORE, THAT NOT EVERY INSTITUTION GETS THAT TYPE RATING YET, YET MAINTAINS IT LIKE WE HAVE AND LIKE WE DO ALL THESE YEARS.
THAT'S WHY I'M DOING IT RIGHT.
IT'S NOT AN EXPENSE, IT'S AN INVESTMENT.
AND INVESTMENTS PAY AND EXPENSE COST.
WELL, AND THAT'S HUGE SAVINGS TO THE TAXPAYER, BECAUSE IF WE WERE NOT FISCALLY CONSERVATIVE AND MANAGED OUR MONEY WELL, WE WOULDN'T HAVE THE TRIPLE-A BOND RATING.
SO FOR THOSE WHO LIKE TO SAY WE'RE WASTING TAXPAYER DOLLARS AND TAXPAYER DOLLARS ARE JUST GOING OUT THE DOOR, ETC., ETC., HERE'S A REALLY GOOD EXAMPLE OF WHERE WE'RE DOING EXCELLENT WITH TAXPAYER DOLLARS.
SCOTT GAVE A PRESENTATION LAST MONTH ON THE FACILITY CONDITION AROUND OUR ORGANIZATION.
SO WE HAVE A SIGNIFICANT INVESTMENTS THAT WE'VE MADE THERE.
WE ALSO PROVIDE DIFFERENT SOURCES OF FUNDS AND HE'S ABLE TO UTILIZE IN ORDER TO ACCOMPLISH THOSE PROJECTS THAT HE DISCUSSES WITH US.
OVERALL, WE HAVE $62 MILLION IN TAXPAYER SAVINGS FROM OUR BOND FUNDINGS, AS WELL AS $3.3 MILLION THAT WE HAVE SAVED FOR OUR OVER 65 AND DISABLED PERSON BY INCREASING THAT EXEMPTION THAT YOU ALL REMEMBER WE DID YEAR BEFORE LAST.
SO IF WE DIDN'T OPERATE AS WELL, OUR FINANCES AS WELL, TAXPAYERS WOULD POTENTIALLY PAID OUT 62 MILLION MORE.
THAT'S CORRECT, BECAUSE OF WHAT WE HAD TO PAY UP.
AND WE'VE HAD TWO INCREASES IN THE EXEMPTION, I THINK, OVER THE PAST SIX YEARS.
YES. THE LAST ONE WE DID WAS TWO YEARS AGO.
SO THAT'S 3.3 MILLION PER YEAR THAT THE TAXPAYER SAVE AS A RESULT OF THOSE EXEMPTIONS.
YES THAT'S EMERITUS CROWD AND THE ENTITIES IN DALLAS COUNTY THE TAX THE WHOLE AREA WE ARE THE HIGHEST WE HAVE THE THE MAXIMUM OF THE HOMESTEAD EXEMPTION
[00:25:07]
AND THE MOST GENEROUS PENSIONS.RIGHT, RIGHT, RIGHT. YOU'RE TAKING ME BACK.
ALL RIGHT. LET ME GO TO THE DUCT TAPE.
THERE IS A CONSTITUTIONAL AMENDMENT AND THE ELECTION COMING UP THAT RELATES TO THE FREEZING OF OVER 65 SCHOOL TAXES.
I'VE EVEN CALLED THE LEGISLATORS WHO RUN IT.
MUST BE BETANCOURT. AND WHAT MAKES YOU SCARED IS THAT EVERYBODY VOTED FOR IT.
THAT REALLY MEANT NOBODY UNDERSTOOD IT.
SO. BUT YOU NEED TO PAY ATTENTION TO IT.
AND BEFORE IT'S OVER, I UNDERSTAND IT, BUT I PERSONALLY, IT'S A VERY POSITIVE EFFORT.
BUT IT RELATES TO THIS EXACT THING YOU JUST MENTIONED.
SO ANOTHER FEATHER IN OUR CAP, IF WE WILL, AS WE TALK ABOUT OUR TAXPAYER SAVINGS, IS THAT WE HAVE ALREADY PAID OFF OUR 2020 TAX NOTES.
SO THAT'S $30 THAT WE DID NOT EXCEED A LONG PERIOD OF TIME IN WHICH WE WOULD HAVE COST ADDITIONAL INTEREST IN ORDER TO PAY THOSE.
SO WE'VE TAKEN CARE OF THAT, TOO.
SO OUR $18 MILLION IN SAVINGS FOR MY DALLAS COLLEGE REORGANIZATION AND WE WILL TALK ABOUT THOSE POINTS AS TO WHAT THAT MEANT WAS REINVESTED IN $25 MILLION IN SCHOLARSHIPS.
AND AGAIN, WE TALKED ABOUT OUR FINANCE TEAM.
I WANTED TO REALLY THIS LAST POINT IS FOR THEM IS TO REALLY THANK THEM FOR THEIR DILIGENCE AND BEING MINDFUL OF THE CASH THAT THEY HANDED.
WHEN WE DID STUDENT DISBURSEMENTS FOR VACCINES, THEY HANDLE CASH IN EXCESS OF $2 MILLION TO OVER 12,000 STUDENTS.
AND WHEN WE DID THE AUDIT, WHEN THE AUDIT WAS DONE, THERE WAS ONLY A $200 UNDER OVER CASH THAT THEY DO WHEN THEY GO BACK AND AUDIT THOSE RECORDS.
SO AND TO THE POINT WHERE WE THINK ABOUT IT, OUR CASHIERS PROBABLY HAVE A TOTAL OF ABOUT $1,500 THAT THEY DEAL WITH ON A REGULAR BASIS.
AND THEY TOOK THIS KIND OF CASH AND THEY MADE THIS COMMITMENT TO THE STUDENTS TO GET THAT MONEY TO THEM. AND THAT'S WHAT WE DID.
OKAY. SO WHAT'S OUR ROLE IN FINANCE? OUR ROLE IN FINANCE IS TO ENSURE INSURANCE SUSTAINABILITY, MAKING SURE THAT WE'RE NOT BUILDING OFF A CLIFF TRUSTEE REFERENCE POINT, MAKING SURE WE'RE NOT BUILDING OFF A CLIFF AND WE ARE IN A VERY STRATEGIC POSITION WHERE WE SIT IN THE ORGANIZATION IS THAT WE CAN SEE EVERYTHING, WE SEE EVERYTHING THAT FOLKS ARE DOING, WHAT THEY WANT TO ACCOMPLISH, AND THEN WE ALSO TRY TO MAKE THOSE CONNECTIONS, RIGHT? IT'S NOT OUR POSITION TO TELL OUR COLLEAGUES HOW TO DO THEIR BUSINESS, BUT WE TRY TO ADVISE THEM ON HOW TO DO IT WELL, YOU KNOW, AND THEN ALSO MAKE CONNECTIONS SO THAT THEY KNOW WHAT'S HAPPENING IN OTHER ORGANIZATIONS, OTHER AREAS OF THE ORGANIZATION, SO THAT IF THERE'S ONE INITIATIVE THAT'S HAPPENING OVER IN ACADEMICS AND THEN THERE'S SOMETHING ELSE THAT WE HAVE HAPPENING OVER IN ANOTHER SECTION, WE'RE MAKING THAT, THAT CONNECTION.
SO FOR INSTANCE, WE HAVE STARLING.
STARLING IS OUR I DON'T KNOW WHAT OUR OUR LEARNING DEVELOPMENT ARM.
RIGHT. AND THEY ACTUALLY WE ACTUALLY MARKET THE MATERIALS THAT THEY CREATE TO OTHER ORGANIZATIONS, TO OTHER INSTITUTIONS OF HIGHER EDUCATION.
OUR I.T GROUP HAD A NEED FOR CYBERSECURITY TRAINING AND SO BECAUSE WE KNEW THAT THIS WAS HAPPENING WHEN THEY CAME AND ASKED FOR MONEY FOR A CONSULTANT, I SAID, TALK TO STERLING, YOU KNOW, AND SO THAT'S THE WAY THAT WE'RE ABLE TO KEEP SOME OF THIS IN-HOUSE, YOU KNOW, AND I KNOW TRUSTEE COMPTON, YOU HAD TALKED ABOUT THAT LAST MONTH ABOUT WHAT ARE WE DOING ABOUT UTILIZING OUR IN-HOUSE TALENT.
AND SO THAT'S ONE OF THE WAYS THAT WE'RE ABLE TO MAKE THOSE STRATEGIC CONNECTIONS SO THAT THE LEFT ARM KNOWS WHAT THE RIGHT ARM IS DOING.
TREASURY MANAGEMENT, THAT'S ANOTHER THING.
SO A COUPLE OF TIMES A YEAR, WE SIT DOWN WITH OUR TREASURY MANAGER AND WE TALK ABOUT CASH FLOW, WHAT'S OUR NEEDS, WHAT DO WE HAVE TO RAMP UP SO THAT WE'RE MANAGING OUR PORTFOLIO IN A WAY THAT IS PROVIDING US THE CASH TO PAY OUR BILLS? THAT'S HOW WE KEEP THAT TRIPLE-A BOND RATING.
WHO'S THE TREASURY MANAGER? JOHN PARKER WE HAVE A COUPLE OF DIFFERENT THINGS THAT WE'RE DEALING WITH IN OUR ENVIRONMENT WITH POST PANDEMIC, DECREASED ENROLLMENTS, SUPPLY CHAIN INTERRUPTIONS, THAT LAST ONE IS PROBABLY AFFECTED MORE SO IN CONNECTION WITH THE FIRST BULLET POINT.
RIGHT WHEN WE TALK ABOUT WHAT'S HAPPENING POST PANDEMIC, BECAUSE WE KNOW THAT THERE IS A SIGNIFICANT EFFECT ON OUR GLOBAL ECONOMY RIGHT NOW, WE HAVE SUPPLY CHAIN INTERRUPTIONS THAT IS CAUSING A CHANGE IN THE COST.
YOU KNOW, CONSUMERS ARE JUST PAYING MORE FOR THINGS, RIGHT? WHETHER IT'S A WIDGET OR SERVICE, IT'S COSTING US MORE THAN IT COSTS THAN IT USED TO COST US PRE-PANDEMIC.
AND SO DALLAS DALLAS COLLEGE IS WE'RE NOT IMMUNE TO THAT BECAUSE WE'RE A CONSUMER AS
[00:30:01]
WELL. SO IT DOES COST US MORE THAN IT COST US TWO YEARS AGO.THE OTHER CHALLENGE THAT WE HAVE IN FINANCE IS EDUCATING AND EDUCATING OUR COLLEAGUES ON BUDGET AND PROCUREMENT PROCESSES.
WE HAVE A LOT OF NEW LEADERS IN PLACE.
WE HAVE CHANGED SOME OF THE THE PROCESSES ON HOW WE'RE DOING THINGS BECAUSE OF ONE COLLEGE. AND SO THERE HAVE BEEN SOME CHALLENGES.
IT'S NOT ALL BEEN ROSY, YOU KNOW, AND SO THEREFORE WE DO HAVE THOSE CONVERSATIONS ABOUT HOW CAN WE REFINE THESE PROCESSES, HOW DO WE COMMUNICATE THIS OUT SO THAT EVERYONE KNOWS HOW TO DO THINGS? WHERE DO I GO AND ASK FOR SOMETHING? HOW DO I GET IT IF IT WASN'T BUDGETED? SO WE HAVE THOSE THOSE CONVERSATIONS ABOUT REEDUCATING OUR COLLEAGUES AND WE HAPPEN TO GO TO THE PROCUREMENT SYSTEM THE NEXT WEEK.
BUT, YOU KNOW, IF WE DIDN'T REALLY HAVE A WHOLE LOT OF TIME TO TRAIN PEOPLE, WHY DO WE TRAIN THEM THAT REEDUCATED ON THESE PROCUREMENT PROCESSES? BUT IT'S STILL AN ONGOING THING, PLUS NEW PEOPLE AND NEW LEADERSHIP ROLES THEY JUST GOT TO BE TRAINED ON. NOBODY'S HEARD ABOUT THIS THING WE'RE DOING CALLED AN ERP IMPLEMENTATION. IT'S NOT ON ANYBODY'S RADAR AT ALL AND FINANCE IS ONE OF THE FIRST MODULES THAT'S BEING PUT IN.
SO WE GET TO DO ALL THIS GREAT WORK AND AN ERP IMPLEMENTATION IS FUNDED.
SO FEDERAL RELIEF FUND, IN ADDITION TO ALL OF OUR REGULAR OPERATING MONIES, OUR CAPITAL FUNDS, WE'VE HAD THESE FEDERAL RELIEF FUNDS THAT WE'VE HAD TO BE RESPONSIBLE FOR, ALSO COMPLIANCE AND REPORTING.
DR. WATKINS AND HER GROUP, THEY DO THE ADMIN, THE CONTRACT ADMINISTRATION ON THAT, GRANT ADMINISTRATION ON THAT.
BUT THEN OUR FINANCE TEAM IS RESPONSIBLE FOR WORKING WITH THEM TO GET THE REPORTING AND THE DISTRIBUTION OF THOSE FUNDS OUT THERE.
THIS IS WHAT WE WERE JUST SPEAKING OF.
SO THERE'S A $280 MILLION AWARD THAT WE GOT FOR CARES ACT FUNDING.
SO TRUSTEE FLORES, TO YOUR COMMENT, THE ONE THE THE NO COST EXTENSION FOR ONE YEAR ADDITION TO ONE, THEIR ADDITIONAL NO COST EXTENSION THAT WAS GRANTED TO ALL ALL EDUCATION AGENCIES SO THAT WE COULD HAVE TIME TO SPEND GET THAT MONEY SPIN DOWN PAST THE DATE THAT WAS INITIALLY SET INTO THE PROPOSAL WITHOUT ANY INSTITUTION REQUESTING IT.
THAT WAS JUST A DECISION BY THE FEDERAL GOVERNMENT AND THE SBA, ALSO IN THEIR RELATED FUNDS, EXTENDED THE START PAYMENT DATE FOR ANY OF THE SBA ASSISTANCE.
SO ALL OF THAT TYPE OF EXTENDED MONEY HAS BEEN DELAYED A YEAR FOR REPAYMENT.
SO WE'VE GOT ABOUT 70% OF IT SPENT AND WE DO HAVE A SPENDING PLAN SO THAT WE CAN SPEND DOWN THE REST OF IT.
POINTING HERE, THE SAFETY AND SECURITY AWARENESS TECHNOLOGY IS BEING UNDERTAKEN BY OUR SECURITY TEAM AS WELL AS OUR BUSINESS CONTINUITY TEAM, JUST MAKING SURE THAT THEY KNOW WHO'S ON CAMPUS, WHERE THEY ARE IN CASE OF SOME TYPE OF EMERGENCY.
AND WE NEED TO IMPLEMENT SOME SAFETY PROCEDURES THAT THAT IS HAVE BEEN SOMEWHAT TALKED ABOUT FOR SOME TIME WITH CHIEF HILL.
AND WHEN WE REFLECT BACK ON THE TRAGEDY THAT THAT HAPPENED IN 2016 AT EL CENTRO, THAT WE DIDN'T HAVE A GREAT WAY TO KNOW WHO ALL WAS IN THE BUILDING AND THE CHALLENGE FOR THE LAW ENFORCEMENT COMMUNITY IN THAT.
AND SO THIS SORT OF INITIATIVE WILL HELP WITH THAT.
WELL, EVEN A SCHEMATIC OF THE BUILDING, RIGHT.
YOU DIDN'T HAVE. THAT WAS A WHOLE DIFFERENT THING.
YEAH. WE HAD TO DUST ONE OFF TO BE ABLE TO SHARE.
THAT HAS IMPROVED. THEY'RE ALL DIGITIZED AND THEY'RE ALL PART OF A I CAN'T EVEN SPEAK TO IT BECAUSE I DON'T USE IT.
BUT THEY HAVE THE ABILITY TO BE ABLE TO CALL THESE THINGS UP AND LOOK AT THEM NOW.
SO THANKS TO THE TECHNOLOGY THAT ALLOWS US TO HAVE THE 100% MONITORING OF ANYBODY ROLLING INTO THE CAMPUS, AND IF THEY'VE BEEN SOMEBODY WHO WAS SUPPOSED TO BE ON THE CAMPUS, THEY CAN BE IDENTIFIED IMMEDIATELY.
I MEAN, THE TECHNOLOGY IS THERE.
IN FACT, IT'S PERFECTLY KIND OF ONE OF THOSE EXAMPLES WHERE IF WE HAD SOMETHING LIKE THAT THAT WE PERFECTED AND PUT INTO PLACE THERE, NOT ANOTHER HIGHER EDUCATION CAMPUS THAT WOULD WANT THE SAME THING.
SO TECHNOLOGY IS IS STUFF THAT WE JUST HAVE TO REALLY CONTINUE TO GO AFTER TO ADD TO TO MAKING US BE THE PEOPLE WE ARE.
AND YEAH, WE'RE GOING TO BE CRITICIZED SOMETIMES FOR BEING TOO PROGRESSIVE, BUT I'LL TAKE THAT. IF YOU'RE NOT GROWING, YOU'RE DYING.
SO WE HAVE TO CONTINUE TO MOVE FORWARD.
ABSOLUTELY. DO WE HAVE A TECHNOLOGY OR AN APP THAT TELLS US AT ANY ONE TIME HOW MANY PEOPLE ARE IN OUR FACILITY? THAT'S WHAT THAT'S WHAT THIS INITIATIVE CAN DO FOR US.
[00:35:04]
AND YOU'VE ALREADY IDENTIFIED THOSE WHO CAN PROVIDE THAT.I DON'T THINK THEY'VE GONE UP WITH RFP FOR THAT YET, BUT I THINK IT'S UNDERWAY.
THEY'RE DEVELOPING IT. COULD YOU SEND ME INFORMATION ONCE THAT'S DONE? I THINK WE WANT IT TO PROVIDE AN OVERVIEW OR JUST KIND OF, AGAIN, JUST INFORMATION OR WE HAVE GUIDELINES FOR WHAT OUR SOURCES OF REVENUE CAN BE USED FOR.
AND WE TALKED ABOUT, I THINK THE FIRST TIME YOU ALL SAW THIS IS BACK IN THE SUMMER.
SO WE JUST WANT TO BRING IT AGAIN.
WE KNOW THAT YOU'RE NEW TO THIS ONE, SO WE WANT YOU TO PROVIDE THIS INFORMATION FOR YOU.
WE'VE HAD NO CHANGE IN EITHER OF OUR THREE SOURCES TO DATE AND STILL ARE ON TRACK FOR WHAT WE PROJECTED TO BEGIN WITH UNDER STATE APPROPRIATE TUITION AND TAXES.
YOU GOING BACK RIGHT THERE, OF COURSE, IS ESTIMATED 3.6% DECREASE.
THAT WAS YES, THAT WAS ON OUR BIENNIUM ALLOCATION FROM THE PRIOR TWO YEARS.
SO THIS WAS OUR FIRST YEAR OF THAT BIENNIUM AND IT WAS A 3.3% DECREASE.
AND AGAIN, IT WAS DUE TO OUR LOWER CONTACT HOURS BECAUSE OF CODE IT, BECAUSE THE CALCULATION WAS BASED ON OUR HEAD COUNT AND OUR ENROLLMENT, NOT HEADCOUNT, BUT OUR OUR CONTACT HOURS DURING 2020.
AND THAT WAS THE YEAR OF COVID.
AND SO WE WERE ABLE TO UTILIZE AND MAKE OURSELVES WHOLE WITH THE COVID RELIEF MONEY THAT WE GOT FROM THE GOVERNMENT. WE MADE OUR STATES WHOLE FOR THAT DECREASE FOR THIS NEXT BIENNIUM. DIDN'T THE LEGISLATURE OR LBB DO SOME SORT OF HOLD HARMLESS FOR K-12 INSTITUTIONS DUE TO ENROLLMENT DECLINES OR BUT NOT FOR HIGHER ED? CORRECT. LAST SUMMER, WE PRESENTED THESE NEXT THREE SLIDES AS PERCENTAGES OF THE PIE.
THIS SEASON, WE WANTED TO PRESENT IT TO YOU AS FAR AS DOLLARS, BECAUSE WE WANT IT TO AGAIN ADDRESS OUR SOURCES OF REVENUE AND WHAT WE COULD USE THOSE REVENUE DOLLARS FOR.
SO STATE APPROPRIATIONS, THAT'S OUR FIRST LEG OF THE STOOL AND $91 MILLION AGAIN IN STATE APPROPRIATIONS. OUR INSTRUCTION COSTS ARE ALWAYS PRIORITIZED FOR STATE APPROPRIATIONS BECAUSE THAT'S THE ONE THING.
ACCORDING TO OUR GUIDELINES, REMEMBER AND I'LL GO BACK JUST A LITTLE BIT HERE, CONSTRUCTION COSTS THAT STATE APPROPRIATIONS, CONSTRUCTION COSTS, ACADEMIC SUPPORT AND STUDENT SERVICES.
SO CONSTRUCTION COSTS ARE PRIORITIZED.
SO HERE OUR INSTRUCTION BUDGET IS $194 MILLION, NOT INCLUSIVE OF BENEFITS.
THIS IS JUST OUR OPERATING COST.
HOWEVER, OUR STATE APPROPRIATIONS IS $91 MILLION.
SO IF ALL WE HAD TO WORK ON WAS STATE APPROPRIATIONS, WE WOULD NOT BE ABLE TO FUND OUR TOTAL INSTRUCTION BUDGET.
AND THAT'S A COMMITMENT BY THE LEGISLATURE TO COMMUNITY COLLEGES TO FUND THE INSTRUCTIONAL COST. BUT IT'S BEEN CONTINUALLY THEY'VE BEEN CONTINUALLY DECREASING THE HISTORIC COMPACT.
YOU GO BACK TO MY AGE, IT GOES BACK TO THE POINT WHERE IN DOCUMENTED YOU TALK ABOUT THIS AND I KNOW JUST THE MIDDLE ABOUT HOW WE SHOULD BE FUNDED FOR 70 80% OF OUR OUR BUDGET IS FROM THE STATE APPROPRIATION AND IT PAID FOR INSTRUCTIONAL COSTS AT THAT TIME AND AND WORK. AND THAT'S HOW MANY THINGS WERE SET UP.
NOT ANYMORE. THERE'S 20%, LESS THAN 20% OF OUR TOTAL REVENUE BUDGET AND DOESN'T HAPPEN.
SO BY THIS DEFICIT, THAT'S NOT BUDGET SPEAKING.
THAT MEANS THAT'S THE SHORTFALL.
SO BUT IT'S ALSO A STRATEGIC MOVE BECAUSE AT THE STATE LEVEL, THEY DON'T WANT TO SAY THEY'RE RAISING TAXES, BUT REALLY THEY ARE RAISING TAXES BECAUSE THEY'RE MAKING THE LOCAL AGREEMENT. THAT'S RIGHT.
AND SO WE'LL GET TO THAT ON THIS THIRD SLIDE ABOUT THE IMPACT OF THIS ON THE ON OUR LOCAL ECONOMY. SO WE TALK ABOUT A DEFICIT.
SO THIS IS NOT A BUDGETARY DEFICIT.
THIS MEANS THIS IS A DEFICIT TO US.
RIGHT. AND SO WHAT HAPPENS TO THAT DEFICIT? IT ROLLS OVER TO OUR NEXT SOURCE OF REVENUE, WHICH IS TUITION.
SO NOW WE GET TO 120, $23 MILLION IS OUR TUITION BUCKET, IF YOU WILL.
SO WE AUTOMATICALLY START OFF AS DEFICIT WITH THAT BECAUSE WE HAVE FINISHED COVERING OUR INSTRUCTION COST.
SO NOW THAT LEAVES US WITH A BALANCE OF $20 MILLION.
NOW, WHAT'S OUR NEXT PRIORITIZATION? ACADEMIC SUPPORT? $33 MILLION IS OUR ACADEMIC SUPPORT BUDGET.
WE'RE AT A $13 MILLION DEFICIT, SO WE STILL GOT TO FINISH FUNDING EVERYTHING.
SO WHERE WE GO, WE GO TO OUR LOCAL ECONOMY, OUR LOCAL REVENUE.
TAXES. THE HAND IS OUR LARGEST PERCENTAGE OF OUR REVENUE SOURCE.
[00:40:01]
SO THAT MEANS THEY NOW HAVE TO TAKE CARE OF EVERYTHING ELSE.SO THEY FINISH TAKING CARE OF THE DEFICIT THAT WE HAVE FROM ACADEMIC FROM ACADEMIC SUPPORT. NOW WE GO TO STUDENT SERVICES.
JOSEPH CAN CONTINUE HOUNDING MY DOOR, SAYING, GIVE ME MY MONEY.
AND SO NOW WE HAVE A BALANCE OF 20 TO 200 MILLION ROUGHLY.
AND SO NOW INSTITUTIONAL SUPPORT.
LET'S PAUSE HERE AND TALK ABOUT WHAT IS INSTITUTIONAL SUPPORT MEAN? INSTITUTIONAL SUPPORT IS NOT ONLY THE BODIES, THE CHANCELLOR, THE CFO, OUR GENERAL COUNSEL. IT'S ABOUT THEIR WORK, RIGHT? YES. THERE ARE PEOPLE THAT ARE THAT ARE IN THOSE ROLES TO OVERSEE THAT WORK.
BUT THERE'S WORK THAT THEY HAVE TO DO AND THEY'RE CONSIDERED INSTITUTIONAL SUPPORT BY OUR STATE REPORTING REQUIREMENTS.
AND SO WE ALSO HAVE UNFUNDED MANDATES AS PART OF WHAT WE HAVE TO COVER THAT IS NOT COVERED BY OUR STATE APPROPRIATIONS OR BY OUR TUITION.
SO NOW IT FLOWS OVER INTO OUR LOCAL REVENUE.
AND THEN SOME OF THOSE UNFUNDED MANDATES THAT WE LISTED HERE ARE TUITION WAIVERS.
MORRIS EARLIER TALK ABOUT OUR EMERITUS PROGRAM.
WE DO HAVE TUITION WAIVERS FOR OUR SENIORS.
THERE'S AN AVERAGE OF 39 STATE MANDATED TUITION WAIVERS THAT WE HAVE TO PAY FOR.
AND THIS IS THE MONEY THAT WE USE TO PAY FOR THOSE.
AND THEY THEY'VE PROVIDED THESE TUITION WAIVERS.
IT'S 39 DIFFERENT TUITION RATE WAIVER THE LEGISLATURE HAS.
YES, BUT THEY'VE NOT PROVIDED ANY FUNDING FOR 39 WAIVERS AND NO FUNDING FOR THEM.
THERE'S DO WE HAVE A NOTION THAT RELATIVE TO OTHER COMMUNITY COLLEGES IN TEXAS, THAT OUR INSTITUTIONAL SUPPORT COSTS ARE NOT EXCESSIVE OR WE'RE NOT? I MEAN, THERE'S ALWAYS THIS DISCUSSION, OKAY, WHAT IS WHAT IS IMPORTANT PUT INTO CLASSROOM INSTRUCTION VERSUS OVER OVERHEAD, WHICH A LOT OF PEOPLE DEFINED AS STUDENT SERVICES? AND WHAT YOU'RE TALKING ABOUT IS SUPPORT.
I MEAN, WE DO WE KNOW THAT WE'RE NOT.
UNDERFUNDING ACADEMIC SERVICES IN THE CLASSROOM INSTRUCTION WITH THE LEVEL OF INSTITUTIONAL SUPPORT THAT WE BUDGET FOR TODAY NOT COMPARED OURSELVES, AT LEAST NOT FOR THE LAST COUPLE OF YEARS.
WE'VE NOT COMPARED OURSELVES TO OUR PEERS, BUT WE CAN PROVIDE THAT FOR YOU WHEN WE COME BACK IN JUNE, IF YOU WANT. I THINK IT WOULD BE INTERESTING.
I THINK BE GOOD TO KNOW. I MEAN, JUST TO JUST TO REMIND THE TAXPAYERS, HEY, YEAH, WE'RE DOING ALL THESE PROGRAMS. I MEAN, WE'RE KIND OF LEARNING THAT ALL THESE THINGS THAT THE COMMUNITY IS ASKING FOR. BUT, YOU KNOW, IT'S NOT COMING AT THE EXPENSE OF OUR CORE MISSION OF CLASSROOM INSTRUCTION AND PUTTING EXCELLENT FACULTY IN FRONT OF STUDENTS AND THAT TYPE OF THING. RIGHT. WE HAVE.
I WANTED TO ASK, WHAT IS THE NORM PERCENTAGE FOR THESE TYPE OF EXPENSES? ABOUT 15%, THAT'S MAYBE 15% OF YOUR OVERALL BUDGET IS USUALLY DEDICATED TO INSTITUTIONS.
IN ONE WAY, YOU COMPARE COMPARING INSTRUCTIONAL COSTS AND ACADEMIC SUPPORT IS A PRETTY GOOD NUMBER TO COMPARE TO OTHER OF OUR PEERS AND SO ON.
I'LL SAY WE'RE NOW OUT OF THAT PEER RANGE BECAUSE OF THE THINGS WE'VE DONE IN THIS PAST YEAR OF SUCCESS.
COACHES AND OTHER PEOPLE, COLUMNISTS ABOUT WHAT WE DO.
INSTITUTIONAL SUPPORT, I WILL GUARANTEE, IS THE PLACE EVERYBODY PLAYS WITH THE NUMBERS.
AND IT IS THE HARDEST THING TO GET A GOOD COMPARISON TO BECAUSE THE BAD NEWS IS NOBODY BREAKS OUT THE DETAIL BECAUSE IT INCLUDES POLICE.
WHAT IS YOUR POLICY ON POLICE? WHAT ABOUT IT? NONE OF THE INSTITUTIONAL SUPPORT NUMBERS FINANCIALLY ARE DISCLOSED BY THE COLLEGES IN ANY PUBLICATION THEY MAKE.
I HAVE TO GO BACK TO MY PEERS AND SAY, HOW MUCH DO YOU SPEND? AND THEN IT'S THEY MAY GIVE ME THE NUMBER THAT'S COMPARABLE TO US.
THEY MAY HAVE A DIFFERENT WAY OF CALCULATING WHAT THEY'RE SPENDING.
SO IT'S HARDEST NUMBER TO EVER COMPARE TO.
I WAS GOING TO SAY IT'S ALL IN THE REPORTING, RIGHT? BECAUSE JOHN MENTIONED IT HISTORICALLY.
WE HAD COLLEGE ALLOCATION I.T.
EXPENSES WERE SPREAD OUT IN THE BUDGET OVER DIFFERENT ACTIVITY, OVER DIFFERENT FUNCTIONAL AREAS. WELL, NOW THAT WE ARE CENTRALIZED WE JUST MAINTAIN I.T AS A COLLEGE SERVICE, BUT THEY FALL UNDER INSTITUTIONAL SUPPORT WHEN WE DO REPORTING.
SO THEN WE WOULD SAY LIKE WHAT PERCENTAGE OF, OF IT IS FOR ADMINISTRATION VERSUS ACADEMICS? SO THAT'S ANOTHER WAY THAT WE WOULD HAVE TO LOOK AT THAT AND BE ABLE TO MAKE THAT DETERMINATION. AS FAR AS HOW WE WANTED TO REPORT IT, IF YOU JUST WANTED TO LOOK AT A RAW NUMBER, THAT RAW NUMBERS WOULD BE A LITTLE DECEIVING.
I MEAN, SHE JUST DIDN'T KNOW IF THE STATE FINANCIAL REVIEW THAT JOE IS TO ON ONE OF THE DEALS WE DISCUSSED THE OTHER DAY IN OUR BOARD MEETING WAS THAT A UNIT ON OPERATIONS,
[00:45:01]
THEY'RE GOING TO BE GATHERING THIS TYPE OF INFORMATION STATEWIDE THAT WOULD GIVE YOU THE BENCHMARKS THAT THAT WOULD HELP US SEE THIS.AND TO SOME DEGREE, I'M ON THAT GROUP, TOO.
IT'S ALL IN THE SECRET IS ITS OWN THE WAY 50 DIFFERENT DISTRICTS THROUGH 50 DIFFERENT WAYS OF ACCOUNTING AND WHILE IT'S ALL LEGAL, WHAT THEY DO WHERE THEY PUT THINGS AND HOW THEY HOW THEY SHOW THEM ON THOSE REPORTS VARIES DRAMATICALLY.
BESIDES THE SIZE DIFFERENTIAL, YOU KNOW, WE'RE DEALING WITH TEN COLLEGES THAT HAVE OVER A 10,000 FTE, THE OTHER 40 HAVE UNDER 10,000 FTE.
AND THAT JUST MAKES A LOT OF COMPARISON.
YOU ALWAYS SEE I TALK ABOUT THE BIG SIX THAT WE COMPARE TO.
WELL, EVEN WITH THAT BIG SIX, LONE STAR, IT'S DIFFERENT FROM HOUSTON AND ALAMO ARE PROBABLY CLOSER TO US WITH OUR MIX OF PROGRAMS AND AND SIZE AND OTHER THINGS THAT WE DO.
I MEAN, THAT'S THE REAL PROBLEM IS ALL 50 ARE UNIQUE AND THAT'S JUST ONE OF THE YEARS I'VE BEEN STUDYING THIS STUFF AND TRYING TO DO EXACTLY WHAT YOU HAVE.
AND WHILE I GET CLOSE, THAT'S ALL I CAN DO IS GET CLOSE.
WELL, HISTORICALLY, WHAT THEY'VE TRIED TO DO IS PUT A SET SOME OF WHAT THEY CALLED CORE OPERATIONS, YOU KNOW, SOME EVEN A MILLION AND A HALF OF DOLLARS SET ASIDE FOR EACH INSTITUTION, FOR CORE OPERATIONS.
AND AS JOHN SAID, FOR SOME OF THOSE SMALL INSTITUTIONS THAT MAY COVER MUCH OF THE CORE OPERATIONS FOR AN INSTITUTION OF OUR SIZE QUARTERLY, THAT AMOUNT DOESN'T.
SO THEY'VE NOT LOOKED AT IT IN PROPORTIONAL SHARE.
AND PART OF THAT IS BECAUSE, AS WE'VE TALKED ABOUT BEFORE, THE FIVE DIFFERENT BUSINESS MODELS, THESE MIXES THAT THE TISK HAS BEEN SHOWN ON, THESE THREE SLIDES VARY SO GREATLY BETWEEN INSTITUTION ACROSS THE STATE.
SO I DON'T WANT US TO LOSE SIGHT OF THE $33 BILLION THAT WE HAVE REMAINING, IF YOU WILL, FROM OUR LOCAL REVENUE, BECAUSE THAT'S THE MONEY THAT GOES DIRECTLY TO BENEFITS STUDENTS WHEN WE PROVIDE SCHOLARSHIPS.
WELL, HOW DARE WE HAVE ANY MONEY TO HELP STUDENTS? BECAUSE WE'RE SUPPOSED TO HAVE NO TAXES.
WE'RE NOT GREAT ON EAR TESTED SCHOLARSHIP TUITION DISCOUNTS.
I MEAN, THAT'S GONE UP VERY SIGNIFICANTLY IN THE PAST FIVE OR SIX YEARS, HAS IT NOT, BECAUSE OF OUR EARLY COLLEGE TEST? WAS IT IN SOME WAYS? I MEAN, YOU THROW THAT NUMBER OUT THERE, THAT'S ABOUT THE NUMBER THAT OF REVENUE GROWTH THAT WE'VE ENJOYED AS A COLLEGE AS A RESULT OF GROWTH IN THE TAB.
RIGHT. SO SO THE DEGREE THAT WE'VE GOTTEN NEW PROPERTY TAX REVENUE BACK AT THE SAME RATE, WE'RE INVESTING THAT MONEY IN OUR STUDENTS.
CORRECT? YES. THE FUTURE OF DALLAS COUNTY.
SO AND NOT JUST IN IN DIRECT SCHOLARSHIPS, BUT ALSO IN PROGRAMS AND THEN SERVICES THAT WE OFFER. YEAH. SO OUR REVENUE, THIS IS JUST A HIGH LEVEL OF OUR REVENUE.
OUR REVENUE IS TRACKING EXACTLY WHERE WE ANTICIPATED THAT WE WOULD WHEN WE GAVE PROJECTIONS BACK IN THE SUMMER.
OUR EXPENSES, LET'S DO A SUMMARY OF OUR STATE.
SO WE TALKED EARLIER ABOUT OUR BOND REFUNDING AND THE $62 BILLION THAT WE SAVE TAXPAYERS OVERALL IN OUR REFUNDING.
WELL, WE ALSO CAN TALK ABOUT THE FACT THAT THERE'S AN ADDITIONAL $2.5 BILLION THAT WE SAVED IN DEFEASANCE BECAUSE WE PAID OFF THE 2018 AND 2019 BONDS.
THEN WE HAVE ANOTHER $5 BILLION OR SO THAT WE'VE DONE IN GENERAL OPERATING EXPENSES DUE TO STRATEGIC SOURCING.
AND THEN WHEN I TALK ABOUT RENEGOTIATION OF DALLAS COLLEGE PRODUCTS AND SERVICES, SO STRATEGIC SOURCING, OUR PROCUREMENT DEPARTMENT HAS REALLY BEGAN TO DO A GREAT JOB OF PUSHING BACK IN THE MARKETPLACE AND JUST REALLY TALKING ABOUT, HEY, THIS IS WHAT YOU ALL OFFERED US. BUT, YOU KNOW, WE'RE DALLAS COLLEGE MAKE US YOUR BEST OFFER.
AND SO THAT'S WHAT WE'RE, THAT'S WHAT WE'RE DOING NOW.
AND THEN WE'RE RENEGOTIATING OUR POSITION IN THE MARKETPLACE ALSO.
SO WHEREAS WE USED TO BE THE LEAST EXPENSIVE GAME IN TOWN FOR A LOT OF THINGS, WE HAVE STARTED TO REALLY LOOK AT HOW WE'RE PLACE, WHAT VALUE WE'RE PLACING ON OURSELVES, BECAUSE IT'S DIFFERENT WHEN YOU'RE INEXPENSIVE VERSUS CHEAP, RIGHT? AND SO WE HAVE BEEN CHEAP TO THE POINT WHERE WE HAVE BEEN A DETRIMENT TO OURSELVES AND NOT GAIN THE REVENUE THAT WE COULD GAIN IN ORDER TO PROVIDE THE THAT THE LEVEL OF SERVICE THAT WE WANTED TO PROVIDE.
SO NOW WE HAVE TO RENEGOTIATE OUR POSITION AND MAKE SURE THAT WE ARE MARKETING OURSELVES ACCORDINGLY. EVEN EXAMPLE LEASES, FOR INSTANCE, WE HAVE FOLKS THAT LEASE DIFFERENT SPACES AND FROM US.
CORRECT. AND MAYBE THEY PAY $40 FOR AN ENTIRE DAY FOR PROPERTY.
WELL, THERE'S NOWHERE I THINK THAT YOU CAN GO AND PAY $40 TO RENT FOUR OR FIVE CLASSROOMS. SO NOW WE'RE RENEGOTIATING WHAT THOSE THOSE CONTRACTS LOOK LIKE.
I THINK ANOTHER ONE WOULD BE DR.
[00:50:02]
WILKINS. TO A LARGER SCALE, DR.WILKINS GROUP HAS STARTED TO TAKE A LOOK AT WHAT OUR INSTRUCTIONAL AGREEMENTS LOOK LIKE WITH DIFFERENT INSTITUTIONS.
RIGHT. SO WE HAVE AN AGREEMENT WITH CONSTRUCTION EDUCATION FOUNDATION.
THAT AGREEMENT HAS HAS KIND OF BEEN A MINIMAL MOVES AND NOW THEY REALLY TIGHTEN IT UP.
THEY MADE SURE THAT THE RATES THAT WE'RE THAT WE'VE NEGOTIATED ARE MORE COMPETITIVE, YOU KNOW, AND THEREFORE, IT'S PROVIDING US AT LEAST AND WE'RE NOT TRYING TO GAIN A PROFIT.
WE'RE TRYING TO COVER OUR COST.
RIGHT. SO NOW WE WILL THAT'S JUST STARTING.
WE WILL HAVE A $50,000 CONTRIBUTION FROM THE ISD THAT REALLY GO TOWARD HELPING FACILITY COST FOR THEM BEING ON OUR PROPERTY BECAUSE THAT AGAIN IS AN OVERHEAD EXPENSE.
I DON'T WANT US TO EVER GET INTO THE BUSINESS OF GOUGING PEOPLE TO MAKE US.
IT'S REASONABLE AND AFFORDABLE.
BUT WE, AS YOU SAY, COVER OUR PROBLEMS, MAINTAIN OUR INTEGRITY.
BUT I FEEL LIKE RIGHT NOW COMPANIES ARE TAKING ADVANTAGE OF PEOPLE BASED ON WHAT'S GOING ON. AND THEY'RE RAISING NOT BECAUSE THEY NEED IT, BUT THEY KNOW THEY CAN AND DRIVE, MAN.
HOBSON AND AS A RESULT OF THAT, PEOPLE ARE HURTING PEOPLE WHO CAN'T AFFORD THE PRICE, SOME OF THESE HIGHER PRICES.
SO AS I SAID, I HOPE WE DON'T EVER GET INTO THE BUSINESS OF PURE GREED GOUGING THE TAXPAYERS. SO FOR INSTANCE, WHEN WE TALKED ABOUT RENEGOTIATING OUR SPACE, WE TALKED TO OUR REAL ESTATE ADVISORS ABOUT WHAT IS THE GOING RATE FOR SQUARE FOOTAGE, YOU KNOW, RELEASE. AND THEY GAVE US A PRICE RANGE UP TO 22 OR $25.
WELL, WE CAME IN AROUND $18, YOU KNOW, SO WE WEREN'T MAXING OUT IN THE MARKET, BUT WE WANTED TO POSITION OURSELVES WHERE WE COULD AT LEAST COVER OUR OVERHEAD.
WELL, BUT IN TERMS OF THAT, BECAUSE YOU HAVE A LOT OF COMMUNITY GROUPS, NONPROFITS THAT WANT TO USE OUR SPACE, I HOPE THAT'S NOT APPLIED TO THEM.
IT'S APPLIED TO COMMERCIAL LEASES, MEANING LIKE WHEN AMAZON WANTED TO USE SOME INSTRUCTIONAL ROOMS, ETC..
THANK YOU. AND THE OTHER QUESTION.
MOVING RIGHT ALONG. ALL RIGHT.
SO WHEN WE HAVE SAVINGS, WE ALSO HAVE REINVESTMENTS AND REALLOCATIONS.
AND WE JUST WANT TO THINK ABOUT IT AS HOW DO WE DO OUR PAYCHECKS AND WE GET A RAISE WHEN WE GET AN ANNUAL RAISE.
I HAVE ANOTHER $200 AND THIS IS JUST MY MONEY TO TAKE IT TO CHUCKY CHEESE.
RIGHT. WE REINVEST THAT MONEY.
WE PUT THAT MONEY SOMEPLACE ELSE WHERE IT'S GOOD USE.
K, WHETHER WE INVEST IT AND SAY WE'RE GOING TO UPGRADE OUR VEHICLE AND GO SOMEWHERE.
AND SO THAT'S WHAT WE'VE DONE WITH THE SAVINGS THAT WE'VE HAD FROM DALLAS COLLEGE.
IT'S GONE SOMEWHERE AND IT MAY NOT REALLY BE A WE MAY NOT BE ABLE TO SHOW IT AS A DOLLAR FOR DOLLAR. BUT OVERALL, WHEN WE DO THE OTHER PRESENTATIONS AND YOU CAN SEE THAT THE ENHANCED SERVICES THAT WE OFFER, YOU KNOW, WE'RE IMPROVING OUR TECHNOLOGY, THE NUMBER OF PEOPLE THAT WE HAVE TO BE ABLE TO HELP OUR STUDENTS AND WE'RE PROVIDING MORE SPECIALIZED SERVICES. THIS IS WHAT WE'RE DOING WITH THOSE DOLLARS.
SO WE'VE TALKED ABOUT SOME OF THE THINGS HERE.
YOU WILL GET A BOARD ITEM, I BELIEVE, NEXT MONTH BECAUSE THE RFP WAS COMPLETED FOR THE CALL CENTER. SO THAT WAS ONE BIG INITIATIVE THAT WE TALKED ABOUT THIS YEAR.
AND WE WANTED TO MAKE SURE THAT WE MENTIONED THAT THAT WAS ACTUALLY IN THE BUDGET, BUT WE TRY TO DO AS MUCH PLANNING AS WE CAN IN THE BUDGET, BOTH PUTTING AND BEING TRANSPARENT WHEN SOMETHING COMES IN AT AN AMOUNT TO EXCEED WITHIN A CERTAIN PERCENTAGE WHAT WE ANTICIPATED, WE WILL BRING THAT ITEM BACK TO YOU.
SO I THINK THAT I WAS IN THE BUDGET BOOK FOR ABOUT $1,000,000 AND THE SOLUTION CAME IN AT $2 MILLION. SO THAT WILL COME BACK TO YOU.
BUT WE DO AGAIN, BECAUSE OF ALL THE SAVINGS WE HAVE, WE DO HAVE THE MONEY TO FUND THAT.
REMIND ME OF THE THRESHOLD THAT COMES BACK TO WHERE WE RAISE IT NEXT YEAR, 250,000, OR IF WE HAVE NOT MADE IT A LINE ITEM WHERE WE HAVE DISCLOSED THAT AMOUNT TO YOU.
AND SO THIS WAS A LINE ITEM, BUT THE AMOUNT EXCEEDED THE POINT WHERE WE FELT WE NEEDED TO BE TRANSPARENT ENOUGH AND BRING THAT BACK TO YOU.
WHAT PERCENTAGE OF STUDENTS THAT ARE ELIGIBLE FOR THE DARK GOLD PASS TAKE ADVANTAGE OF IT? WE'VE HAD THAT.
WE JUST HAD THE CONVERSATION WITH THEM LAST WEEK.
WE THEY IT'S NOT A IT'S NOT A CLEAR SYSTEM FOR US TO BE ABLE TO KNOW THE STUDENTS THAT ACTUALLY THE STUDENTS THAT WE ISSUE IT TO VERSUS VERSUS THE USAGE, THEY'VE NOT BEEN ABLE TO PROVIDE THAT DATA TO US.
I JUST HAD A CALL WITH THEM A COUPLE OF WEEKS AGO, AND THAT WAS ONE OF THE QUESTIONS WE ASKED. AND THE ONE PIECE THAT'S REALLY MISSING THAT I'VE BEEN INTERESTED IN FOR THE LAST
[00:55:01]
COUPLE OF YEARS, WE'VE HAD THIS IS RIDERSHIP.HOW OFTEN DO OUR STUDENTS GET ON, GET ON THE BUS, GET ON THE TRAIN OR WHATEVER? WE'RE STILL WORKING ON THAT AND PASS ON THEIR PHONE AND THEREFORE GET ON THEIR PHONE THE INFORMATION THAT WE CAN WITH ANALYTICS WITH YOU.
BUT I JUST THEY HAVEN'T THEY HAVE NOT BEEN ABLE TO GIVE US THAT INFORMATION YET.
I COME BACK AND THANK OUR INFORMATION TECHNOLOGY GROUP EVERY TIME I VISIT OTHER PLACES THAT MAYBE DON'T HAVE IT.
SO I'M REAL THANKFUL FOR ALL THE DATA THAT WE'RE ABLE TO GET TO AND SLICE AND DICE.
SO LET ME JUST STOP THERE BEFORE I GET IN TROUBLE.
WELL, BECAUSE BECAUSE IF WE DON'T HAVE STUDENTS USING UP TO THAT $3 MILLION AMOUNT, WHAT WE LOOK AT, IF WE LOOK AT THE ELIGIBLE STUDENTS AND THEN HOW MANY ACTUALLY GET A GO PASS OR A DEKALB AND WHAT THEY WOULD HAVE TO PAY FOR THE PUBLISHED START RATE.
IT STILL WOULD COST STUDENTS DOUBLE WHAT WE SPEND HERE ON THE $3 MILLION.
SO FROM THAT STANDPOINT, BUT, YOU KNOW, INQUISITIVE MINDS AND I REALLY WANT TO KNOW BUT WHAT'S OUR WHAT'S OUR UTILIZATION OF THOSE? DON'T ASK HOW MUCH, HOW MUCH? SO WE'RE STILL PRESSING FOR THAT INFORMATION.
WOULD IT HELP TO TALK TO SOME BOARD MEMBERS, DART BOARD MEMBERS, SO THAT DART STAFF GET PUT MORE OF A PRIORITY? WE'RE TRYING TO GO THROUGH DEPARTMENTAL.
WELL, SOMETIMES THAT DOESN'T HELP.
AND SO WELL, AS JOHN KINDLY SAY, I THINK I THINK THEY'RE TRYING TO GET A BETTER HANDLE ON THEIR DATA AND THEIR TECHNOLOGY TO SUPPORT THE DATA AND UTILIZATION SO THAT THEY CAN SHARE IT WITH US. I CAN'T IMAGINE THE DART CAN TELL YOU THE ACTIVITY OF A PASS.
YEAH. ENHANCED PROFESSIONAL DEVELOPMENT.
HOW MUCH IS EACH ONE OF THOSE? OH, I DON'T KNOW.
I'D HAVE TO GO BACK AND BREAK THAT OUT AND LOOK AT IT.
BUT THIS I DON'T KNOW THE AMOUNT, BUT THIS 800,000 AMOUNT IS THE ADDITIONAL MONIES THAT WE PUT INTO PROFESSIONAL DEVELOPMENT AS A WHOLE.
THESE ARE JUST SOME EXAMPLES OF PROFESSIONAL DEVELOPMENT THAT WE WOULD DO.
HOW LONG IS IT GOING TO TAKE FOR YOU TO GIVE ME SOME TIME? I CAN LOOK AT MY OFFICE TOMORROW AND SEND.
THE LEADERSHIP INSTITUTE FOR ADMINISTRATORS IS THAT IN RESPONSE TO JUST.
NO, NO. THAT HAS NOTHING TO DO WITH THAT.
THAT'S SOME OF WHAT WE WERE TALKING ABOUT EARLIER TODAY THAT DR.
JOSEPH REFERENCED AND THE SHERI REFERENCED WITH SOME OF THE SENIOR LEADERSHIP TEAM AT VARIOUS LEVELS. BUT, NO, IT DOESN'T HAVE ANYTHING TO DO WITH WITH WHAT HE HAD DONE.
NO, I HAVE NOT I HAVEN'T THOUGHT ABOUT IT.
BUT IT WILL COME BACK TO THE BOARD FOR CONSIDERATION.
YEAH. IF WE GO FORWARD WITH IT.
BUT I MEAN HERE'S, HERE'S THE REALITY IS, IS THAT WE'VE BEEN DOING SOME OTHER THINGS ALREADY THAT, THAT AT THIS POINT I HAVEN'T SEEN THE NEED TO EVEN ENTERTAIN THE WHY.
AND THIS IS WHAT IS THE EFFECT ALSO THE TRAINING FOR ADMINISTRATORS GOING THROUGH. WHAT IS THAT ABOUT? DO YOU KNOW WHAT I'M TALKING ABOUT? YEAH, THAT'S KIND OF PART OF WHAT SHERI WAS REFERENCING THIS MORNING.
SO AS WE WERE TRYING TO MOVE IT THROUGH, I DON'T KNOW IF I'M WILLING TO HEAR FROM YOU.
I DON'T UNDERSTAND YOUR ABANDONMENT.
NOT YET. WELL, IT'S STILL ON THE CLOCK IN MY HEART.
YEAH, IT'S STILL ON THE CLOCK.
SO IN RESPONSE TO A LOT OF THE CONCERNS THAT WE HAVE HEARD ABOUT THE REORGANIZATION AND TRYING TO GET ON THE SAME PAGE AND ALL OF THAT, WE ASK ALL OF OUR ADMINISTRATORS, SO ABOUT 277 ADMINISTRATORS TO GO THROUGH THE LEADERSHIP INSTITUTE.
AND IT WAS A THREE DAY INSTITUTE WHERE THERE WERE ALL KINDS OF TOPICS COVERED, EVERYTHING FROM COMMUNICATION TO MANAGING A MEETING TEAM, BUILDING BETTER TEAMS, EMOTIONAL INTELLIGENCE.
AND AS DR. JOSEPH REFERENCED, WE DID PROBABLY ABOUT 14 SESSIONS OF THOSE AND THE FEEDBACK WAS EXCELLENT ON THAT.
AND SO THEY'RE TRYING TO PUT THOSE CONCEPTS IN PLACE AND WORK THROUGH THAT.
SO THAT'S WHAT THAT WAS ALL ABOUT.
[01:00:03]
OKAY. DO YOU REMEMBER WHERE YOU HEARD? AGAIN, A HIGH LEVEL OVERVIEW OF OUR EXPENSES, OUR EXPENDITURE TO DATE.TRUSTEE FLORES YOU REFERENCE OPERATING EXPENSES BEING 34%.
SO IF YOU LOOK, WE DO HAVE ANOTHER LINE ITEM HERE.
SO THESE THREE LINE ITEMS OR RATHER I WOULD SAY THE SERVICE AND OPERATING EXPENSES REALLY IS JUST ALMOST WHERE THE MONEY WAS BUDGETED VERSUS WHERE IT WAS ACTUALLY SPENT.
SO BY THE TIME THEY GO THROUGH, WE DO BUDGET ADJUSTMENTS THAT THAT MONEY WILL RIGHTSIZE ITSELF. SO IT COULD JUST BE THE FACT THAT THEY SPENT THE MONEY IN ONE PLACE AND IT SHOWING UP SOMEPLACE ELSE.
HOW OFTEN DOES SOMETHING LIKE THAT HAPPEN? ALL DAY LONG. THAT'S ALL.
ALL DAY LONG. SO HOW DO YOU ALL KNOW WHAT YOU NEED TO CORRECT IN TERMS OF WHAT YOU HAVE? AS THE REQUEST FOR THE EXPENDITURE COMES THROUGH THE BUDGETING, THEY LOOK TO SEE WHERE THEY'RE ASKING TO SPEND THE MONEY AND THEY TELL THEM, YES, YOU HAVE MONEY THERE OR NO YOU DON'T, OR WE CAN PULL IT FROM THIS PLACE.
SO IN OTHER WORDS, THAT'S NOT SOMETHING UNUSUAL.
NOT AT ALL. THAT'S LIKE IF I WANTED TO BUY PENCILS INSTEAD OF ORDER OUT OF THE PENCIL LINE OFFICE.
YES, THAT'S WHAT I DID OUT OF THE COMPUTER.
RIGHT. SO TO THAT POINT, YOU'VE GOT ALL OF THIS.
AND SO TO THAT POINT, AGAIN, WHEN WE TALK ABOUT THE FORM ON TRIPLE CD, THE WE WERE OVERLY CONSERVATIVE, WRITE OVERLY CONSERVATIVE, THAT WE INUNDATED OURSELVES WITH BUREAUCRACY AND THINGS. AND SO WE HAD PROBABLY, YOU KNOW, 17 LINES OF SUPPLIES.
IS IT A SUPPLY? IS IT A PLUMBING SUPPLY KNOW? IS IT AN OFFICE SUPPLY? AND SO IF YOU DID NOT SEND OVER THAT PENCIL REQUEST IN THE RIGHT SUPPLY OR THAT REQUEST FOR A WRENCH IN PLUMBING WHICH YOU WERE USING IN TO THAT IT WOULD GET SENT BACK TO YOU.
AND SO WE HAVE GONE THROUGH THE TEDIOUS TASK OF COLLAPSING AND SAYING, GET SUPPLIES.
RIGHT. WE DON'T CARE WHAT KIND IT IS, WHAT YOU'RE DOING, IT SUPPLIES.
AND SO THAT'S SOME OF THE TASK THAT THE FINANCE GROUP IS GOING THROUGH IS THAT THEY'RE LOOKING AT OUR CHART OF ACCOUNTS AND HOW THEY'RE GOING TO NOW MOVE THAT INTO THE NEW ERP SO THAT IT'S MORE EFFICIENT.
AND IT CUTS DOWN SOME OF THIS BECAUSE THOSE THINGS WOULD GO BACK AND FORTH TO FOLKS BECAUSE, YOU KNOW, AGAIN, WHAT YOU MET TO MAKE SURE IT'S IN THE RIGHT MIND SO WE JUST COLLAPSE IT. SO THEREFORE, WHEN YOU ALL SEE THINGS LIKE THIS, THERE ARE PROBABLY 50 OTHER LINES THAT GO WITH EACH ONE OF THESE THAT WE'VE COLLAPSED.
SO THAT'S SOMETHING THAT THE RESTRUCTURING HAS BEEN HAS ALLOWED US TO REALLY FOCUS ON, IS THAT BUREAUCRACY? I MEAN, WE'RE A LARGE, COMPLEX INSTITUTION, BUT WHEN WE WERE DOING THINGS MULTIPLE DIFFERENT WAYS AND IT CAUSED MANY DIFFERENT LAYERS ALONG THE WAY, THAT'S SOMETHING THAT THIS RESTRUCTURING HAS BEEN ABLE TO SIMPLIFY.
WHERE ELSE? WHERE ELSE HAVE WE REALLOCATED SOME OF OUR COLLEGE SAVINGS? WE'VE DONE IT INTO ENERGY, INTO MATERIALS FOR STUDENTS BECAUSE WE'RE SPENDING AN ADDITIONAL $5 MILLION THIS YEAR THAT WE DIDN'T SPEND LAST YEAR DUE TO COST INCREASE.
AND AGAIN, THIS WAS INTENDED TO BE NOT A PASS THROUGH TO STUDENTS.
RIGHT. THAT THE $20 INCREASE THAT WE DID A COUPLE OF YEARS AGO WAS GOING TO COVER THIS COST. BUT NOW WE HAVE AN INCREASE.
SO THERE MAY BE SOME OPPORTUNITY FOR US TO HAVE A CONVERSATION AT A HIGHER LEVEL ABOUT DO WE KEEP THIS ADDITIONAL COST AS AN ORGANIZATIONAL COST THAT WE'RE GOING TO BE IMPACTING WITH THIS? OR DO WE NOW CONSIDER, AGAIN, A TUITION INCREASE IN ORDER TO COVER THIS ADDED BENEFIT FOR STUDENTS? BUT WE DON'T HAVE A TOP ANALYSIS.
I'LL PUT THAT OUT THERE AS SOMETHING COMING FORWARD.
WHAT IS THAT INCREASE OF $2.75 PER STUDENT? THAT IT WAS $20 PER STUDENT AND NOW IT'S 20 TO 75 FOR STUDENT PER CREDIT HOUR.
THEIR COSTS HAD INCREASED MORE THAN WHAT IF YOU REMEMBER, ABOUT FIVE YEARS AGO, WE WERE ACTUALLY PROJECTING WHAT THAT WAS GOING TO BE BASED ON WHAT THEY WERE CURRENTLY DOING.
THE FACULTY WAS ADOPTING AND EVERYTHING AT THAT TIME.
IT HAS BEEN A MUCH MORE ROBUST SYSTEM THAN WHAT WE EXPECTED.
GREG AND I ARE THE TWO CULPRITS IN CRIME ON THIS, AND WE WILL BE TALKING TO FOLLETT ABOUT WHAT WE CAN DO ABOUT NEW COST PROJECTIONS AND BOTH NEED TO REDUCE THAT DOWN BECAUSE THAT WAS ONE OF OUR IDEAS.
AND WE CAN TAKE SOME STEPS TO TRY TO REDUCE ITS COST AND HAVE A LOWER COST.
BUT IT DIDN'T HELP DIGITAL PUBLISHERS DIDN'T HELP THEIR BOTTOM LINE.
A LOT OF PEOPLE. BUT IT'S NOW TIME TO RENEGOTIATE.
AS TIME, WE WANT TO PROVIDE A REVIEW OF OUR CASH RESERVES.
[01:05:06]
HERE AGAIN, WE'RE TALKING ABOUT TRUSTEE RIDDER.WHAT WE HAD THE CAPACITY TO SELL FINANCE.
SO WE SELL FINANCE RIGHT NOW, $114 MILLION FOR OUR CAPITAL PROJECTS.
AND SO IF WE WERE TO MOVE FORWARD WITH AN ISSUANCE OF BOND ISSUANCE AND TALKED ABOUT THE REPAYMENT, THIS IS WHERE WE WOULD REPAY SOME OF THAT MONEY THAT WE'VE BEEN IN ORDER TO REPLENISH OUR CASH RESERVES.
BUT AGAIN, AS YOU CAN SEE, WE'RE STILL IN A VERY, VERY HEALTHY POSITION IN ORDER TO BE ABLE TO DO THAT, SELF-FINANCING, BECAUSE WE'VE ALREADY COMMITTED TO THE AMOUNT THAT WE ARE REQUIRED TO HAVE CASH RESERVES BY FOR POLICY, AND THEN WE STILL HAVE THE EXCESS PLUS WE'VE EXPENDED THE AMOUNT OF CASH.
SO WE'RE STILL VERY HEALTHY AS FAR AS WHAT OUR RESERVES POSITION IS, WE HAVE FEWER CASH RESERVES TODAY THAN WE DID A COUPLE OF YEARS AGO BECAUSE OF OUR POLICY CHANGE FROM 4 TO 2%. YES, WE WENT FROM 4 TO 6 MONTHS DOWN TO TWO MONTHS.
AND SO THAT HAS FREED UP OUR OPPORTUNITIES TO BE ABLE TO DO A LOT MORE FUNDING OF THINGS OF ONE TYPE OF EXPENSES.
AND AGAIN, WE ONLY DO CASH RESERVES FOR FOR ONE TIME EXPENDITURES.
WE DON'T USE IT TO PROP UP OPERATING BUDGET.
I'LL GET BACK TO THE TREASURY.
THERE IS A SECOND QUARTER UPDATE IN THE BOARD PACKET TODAY, BUT THIS WAS JUST A PICTURE, JUST LIKE NICE COLORS.
WE TALKED ABOUT OUR TRIPLE-A BOND RATING.
JOHN AND I HAD A CONVERSATION WITH S&P A COUPLE OF WEEKS AGO.
YOU KNOW, THEY PRETTY MUCH TOLD US THAT THAT'S DECLINED.
THEY JUST ALSO REAFFIRMED WITH THE DROP THAT YOU HAVE ANYTHING THAT YOU WANTED TO PROVIDE ON LAWSUIT. AND WE'VE ALREADY DISCUSSED THAT THEY TALKED ABOUT BOND ISSUANCE AND REPAYMENT. HAS THERE BEEN ANY CONCERN IN THE BOND RATING AGENCIES ABOUT OF ROME DECLINES? AND, I MEAN, DO THEY SEE US SNAPPING BACK AND NOT FOR US.
THE ONLY THING THAT REALLY EVER HURTS US ON OUR BOND RATING IS THAT THEY BREAK THE WHOLE INDUSTRY LOWER AND WHICH WE WOULD GET CAUGHT UP IN THAT WE'RE ONLY ABOUT ONE OF 25 COMMUNITY COLLEGES WITH A TRIPLE-A RATING.
BUT IF THEY ALL OF A SUDDEN CAME OUT, IT'S SOMETIMES THESE RATING AGENCIES DO SAY, I DON'T LIKE THE AIRLINE, I DON'T LIKE HIGHER ED OR WHATEVER, AND THEY COULD LOWER THE HULL.
AND WE HAVE A VERY STRONG ECONOMIC OUTLOOK THAT THEY HAVE WITH US.
SO THAT IS BASICALLY WHAT THEY TOLD US.
AND AS FAR AS ENROLLMENT, DECLINING ENROLLMENT, WE ARE ON THE LOWER SIDE OF WHAT THE NATION'S THE NATIONAL AVERAGE IS.
SO THEY'RE NOT CONCERNED ABOUT OUR POSITION.
WE IMPLEMENTED A STRATEGIC FUNDING PROGRAM.
SO AS REQUESTS ARE MADE THROUGH THE INITIAL BUDGET PROCESS, OF COURSE, THERE ARE ALWAYS EXCESS THINGS THAT KIND OF FALL OUT ON THE ON THE OUTSKIRTS OF THAT THAT WE'RE NOT ABLE TO NECESSARILY FUND IN THE MEDIA BUDGET, BUT WE DO SET ASIDE MONIES FOR THAT.
AND THEN THERE IS A FORM THAT IS DONE THAT PEOPLE PUT IN TO REQUEST THE ADDITIONAL ITEMS THAT THEY WOULD LIKE.
THERE'S A COMMITTEE THAT BEDS THEM AND THERE'S A DIVERSE COMMITTEE THAT VETS THEM, NOT JUST FINANCE. AND THEN WE PRIORITIZE THEM.
AND THEN, BASED ON THE AMOUNT OF MONEY THAT WE HAVE AVAILABLE, IS HOW WE FUND THOSE INITIATIVES. AND SO JUST FOR EXAMPLE, YOU SAY WHAT IS THE HEALTH SCIENCES RECEIVED THREE ULTRASOUND MACHINES.
YOU KNOW, THEY WEREN'T BUILT INTO THEIR REGULAR BUDGET, BUT THEY GOT THREE NEW ULTRASOUND, THREE ULTRASOUND MACHINES.
THAT TECH PROGRAM GOT A LARGE ANIMAL VENTILATOR.
OUR EMS PROGRAM GOT A LOT OF NEONATAL SUPPLIES IN ORDER FOR THEM TO TEACH THOSE CLASSES.
SO THOSE ARE THE TYPES OF THINGS THAT WE TALK ABOUT STRATEGIC FUNDING, ONE TIME EXPENSES THAT WE USE THESE FUNDS FOR.
HOW MUCH SHOULD WE PUT INTO STRATEGIC FUNDING THIS BUDGET YEAR AND TELL YOU PUBLICLY, WHAT'S THAT? I CAN'T TELL YOU.
BUT EVERYBODY WILL WANT TO KNOW.
THEY'LL SAY YOU HAVE X AMOUNT OF DOLLARS AND YOU DIDN'T SPEND IT ALL AND YOU CAN GIVE IT ALL TO US. SO WE KIND OF KEEP THAT NUMBER TO OURSELVES.
WELL, ANOTHER WAY TO LOOK AT THIS IS THERE IS 30, $40 MILLION MORE REQUESTS THAN WE COULD FUND. SO REALLY, THERE'S NONE.
YOU KNOW, THERE'S MORE OF THEM REQUEST MORE REQUESTS.
THERE'S MORE REQUESTS THAN WE HAVE.
SO LET'S USE THE NUMBER OF $5 BILLION.
SO WHAT'S THE AVERAGE PROJECT FUNDED? AND IS THERE A THRESHOLD, A MAXIMUM WHICH YOU CAN'T FUND ABOVE BOARD? NO. SO IF I SAID I HAD A BUDGET OF $5 MILLION FOR JUST FOR STRATEGIC FUNDING, WE LOOK AT THE PROJECTS. SO AGAIN, TWICE A YEAR.
AND IF WE SAY WE'RE GOING TO DEVOTE TWO AND A HALF MILLION DOLLARS TO THE FIRST ROUND OF STRATEGIC FUNDING AND THEN TWO AND A HALF MILLION TO THE SECOND ROUND, OF COURSE, WE MAY GET SIX OR $7 MILLION IN THAT FIRST ROUND AND SO WE CAN'T AFFORD TO FUND THOSE.
SO AGAIN, THAT'S WHERE THE COMMITTEE WILL THEN PRIORITIZE THOSE.
AND THEN WE DO JUST BASICALLY IT'S JUST A CUT OFF.
WE ONLY HAVE THIS MUCH MONEY THAT WE CAN SPEND.
WHEN I GET TO THAT NUMBER, THEN THAT'S THE ONES THAT THE REST OF THEM KIND OF FALL OUT.
YOU KNOW, THERE IS NO SECRETS AGAIN.
NOW IT'S CALLED THE CFO DISCRETION.
[01:10:10]
THIS IS JUST WHERE OUR BUDGET WHERE WE ARE IN OUR BUDGET CYCLE RIGHT NOW.AND SO WE DID THESE NEW SUMMARIES, STATE OF THE COLLEGE WHERE WE CAN GO THROUGH THOSE.
NOBODY HAD ANY QUESTIONS ON THEM WHERE WE ALLOWED WE TALKED WITH EACH EVERY BUDGET MAN TO TALK WITH EACH GROUP. YOU KNOW, THEY DEFINED WHAT THEIR STRATEGIC PRIORITIES WERE, WHAT THE HIGHLIGHTS WERE THAT THEY HAVE FOR THIS YEAR, AND WHAT SOME OF THE CHALLENGES WERE.
AND THEN THIS IS BASICALLY EXAM SIZE.
HERE'S WHAT EVERY GROUP IS TRYING TO DO AND THEN THEIR FINANCES TO HOW WE SUPPORTED THEM.
ARE THERE ANY OTHER QUESTIONS? WE'RE RUNNING A LITTLE BIT OVER TIME, BUT THAT'S OKAY.
TREASURY UPDATE. WELL, THIS LITTLE SIDE THING THAT SAYS PAGE 28 OF 46, IT SAYS EXECUTIVE SUMMARY INSTRUCTION.
YES. SO HIGHLIGHTS THAT FIRST BULLET.
ONE IN THREE STUDENTS IS A DOE CREDIT STUDENT.
SO I HEARD AND I SHARED THIS WITH THE CHANCELLOR, BUT I GUESS IT'S MORE A QUESTION TO YOU, DR.
LOHMAN. WHEN ARE WE GOING TO GET AN UPDATE ON HOW MANY STUDENTS, EARLY COLLEGE OR DUAL CREDIT STUDENTS ON OUR CAMPUSES? PERCENTAGE OF THEM VERSUS REGULAR STUDENTS? YEAH. SHAUN AND I TALKED ABOUT THIS THE OTHER DAY AND WE'VE JUST BEGUN TO LOOK AT THAT.
AND IT ALSO FOLLOWS FALLS IN LINE A LITTLE BIT WITH WHAT CISCO WAS TALKING ABOUT AS WE ARE EVALUATING OUR AGREEMENTS WITH ISB IS THEY HAVE DIFFERENT NEEDS, DIFFERENT THRESHOLDS, SOME NEW PHONE LINES OR DIFFERENT DROPS, AND SOME NEED LARGER PHYSICAL SPACES THAN OTHERS. SO WE'RE WE'RE LOOKING AT ALL OF THOSE AS WE THINK ABOUT WHAT THOSE AGREEMENTS LOOK LIKE.
BUT WE HAVEN'T THOUGHT ABOUT IT IN TERMS OF THE PERCENTAGE OF WHICH TYPE OF STUDENTS ON CAMPUS, AT WHICH TIMES.
SO SO WE'VE JUST GOT TO KIND OF LOOK AT THAT.
SO IT'LL BE ANOTHER MONTH OR SO BEFORE WE GO.
AND I UNDERSTOOD THE NUMBERS THAT WERE TOLD TO ME CORRECTLY THAT ONE OF THE CAMPUSES, 80% OF THE STUDENTS BETWEEN EIGHT AND THREE ARE THE EARLY COLLEGE HIGH SCHOOL STUDENTS ARE P-TECH STUDENTS.
SO I THOUGHT THAT WAS WHILE WE WANT MANY MORE, I THOUGHT THAT WAS A LITTLE BIT SHOCKING AND OFF BALANCE.
I DON'T KNOW IF THAT'S ACCURATE OR NOT.
YEAH. I DON'T KNOW IF THAT'S GUESS WHAT I'M SAYING, I DON'T KNOW IF I SHOULD CORRECT ME, BUT BUT BUT THAT THAT IS A BUSINESS THAT HAS A LARGE NUMBER OF HIGH SCHOOL PARTNERS THERE. BUT I THINK THAT ACTUALLY EVERYONE I THINK THAT'S JUST HIGHLY SPECULATIVE.
I THINK IT'S VERY HARD TO ASCERTAIN EXACT NUMBERS RIGHT NOW AS WE'RE RETURNING FROM THE PANDEMIC, BECAUSE IF YOU WIN AT ANY GIVEN POINT DURING THAT TIME, OUR HIGH SCHOOL STUDENTS, EARLY COLLEGE, HIGH SCHOOL TECH, TECH WOULD HAVE BEEN WHO YOU SAW BECAUSE THEY WERE MANDATED TO RETURN IN THAT WAY.
AND THEY'RE VERY MUCH FUNDED BASED ON THEIR ATTENDANCE BEING BUTTS IN SEATS, AS THEY SAY.
BUT WE REALLY HAVE TO LOOK AT THAT MORE CLOSELY AS WE BEGIN TO ALIGN NOT ONLY THEIR NEEDS, BUT BE RESPONSIVE TO THE ENROLLMENT PATTERNS OF OUR REGULARLY MATRICULATING STUDENTS TO ENSURE THAT WE'RE HAVING A SCHEDULE THAT MEETS ALL OF THE NEEDS OF THE STUDENTS AND THEN GET A MORE HOLISTIC PICTURE.
SO WHILE WE'VE BEEN GATHERING NUMBERS AND INFORMATION, IT'S NOT GREAT BECAUSE IT STILL JUST INCLUDES LARGELY WHO RETURNED AND CAMPUS AND MASS, WHICH WAS THOSE EARLY COLLEGE, HIGH SCHOOL, P-TECH STUDENTS.
SO WE'RE WORKING ON GETTING YOU SOMETHING, BUT WE WANT IT TO BE MOST ACCURATE OR AS ACCURATE AS POSSIBLE, GIVEN OUR CONSOLIDATION, BUT ALSO GIVEN WHERE WE'RE AT IN THE SPACE AND TIME SO THAT WE CAN BE REFLECTIVE AND PROTECT FROM IT.
GREAT, BECAUSE I THINK IT'S NOT HEALTHY FOR US TO HAVE A HUGE IMBALANCE ON EITHER SIDE.
I MEAN, IT'S GREAT. WE HAVE A LOT MORE EARLY COLLEGE STUDENTS, BUT BY THE SAME TOKEN, WE DON'T WANT TO SACRIFICE OUR REGULAR STUDENT POPULATION.
THAT'S WHY WE'RE BUILDING DEDICATED FACILITIES ON OUR CAMPUSES FOR OUR KIDS AND EARLY.
YES, THAT IS OUR DESIGN PROGRAM.
ONE OF OUR NEWER DESIGN PROGRAMS IN THE KIDS FEATURES WHERE THE USER EXPERIENCE AND DESIGN PROGRAM USER EXPERIENCE IS A DESIGN PROGRAM DESIGNED TO PROVIDE THE USER
[01:15:05]
EXPERIENCE AS A DESIGN PROGRAM FOR WEBSITES.RIGHT BEFORE THE SHOOTING? YES. THIS IS LONG FOR ME.
SO YOU HAD TO GO THROUGH A SIMPLE FIVE EMOTIONS? YES, BECAUSE THIS WAS OUR FIRST LAUNCH OF IT TO WORK WITH OUR INDUSTRY PARTNERS TO PRODUCE THAT CREDENTIAL.
IT WAS A NEW PROGRAM FOR SOME INDUSTRY PARTNERS.
THAT WOULD BE GREAT BECAUSE, YOU KNOW, IF YOU DON'T MIND, NOT TO MENTION THIS, THIS AREA WAS ONE OF WHEN WE CONSOLIDATED THIS DALLAS COLLEGE, WE HAD 13 DIFFERENT CREDENTIALS IN THE BROAD LANDSCAPE OF DIGITAL MEDIA DESIGN, VISUAL COMMUNICATIONS.
AND THEN WE HAD ON THE VILLAGE TO LAUNCH THIS NEW UX UI, WHICH IS ABOUT USER EXPERIENCE, AND IT'S A DESIGN CONCEPT AROUND HELPING WEB DESIGNERS DESIGN FROM WHAT LAYMAN PERSPECTIVE IS, HOW TO USE IT.
TO SPEAK MORE TO THIS, THROUGH THAT WORK THAT SHAWNDA CHARGED THE SCHOOLS WITH, THEY TOOK THOSE 13 DIFFERENT DEGREES AND BROUGHT THEM DOWN TO ONE SINGLE DEGREE THAT HAS THREE DIFFERENT TRACKS OR STILL BE A DIGITAL MEDIA TRACK.
THEY'LL BE A VISUAL COMMUNICATIONS TRACK.
AND THEN THIS NEW ONE WILL BE UX UI, WHICH IS KIND OF A FOR LACK OF A BETTER KIND OF CUTTING EDGE. SO YOU ACTUALLY UI IS AN ACRONYM FOR WHAT THEY CALL USER EXPERIENCE, USER AND USER. WHAT DOES THAT MEAN? SO IT'S DESIGNING FROM THE LENS OF YOU AS THE END USER.
WHEN YOU GO TO A WEBSITE, IT'S WHAT YOU EXPERIENCE.
NOT SO MUCH WHAT A WHAT A SOFTWARE DEVELOPER OR A WEB DESIGNER WITH EXPERIENCE SAID IT'S PRETTY COOL. SO I'VE GOT A COUPLE MORE QUESTIONS.
DOES THAT ANSWER YOUR QUESTION? I DID SOME LAST STUFF I WAS ASKED TO DO ON THAT, BUT IT SOUNDS LIKE YOU'VE CONSOLIDATED AND CONDENSED IT, BUT YOU'RE OFFERING A LOT OF DIFFERENT COMPONENTS THAT HAVE TO DO WITH THE WEB.
YEAH. GOT IT. SO THIS DAY, IT'S VERY GOOD.
AND IF I NEED MORE THAN TWO QUESTIONS, I'M GONNA TAKE FIVE.
SO I DON'T KNOW THAT THIS BELONGS IN FINANCE, BUT SINCE IT'S HERE IN TERMS OF WORKFORCE AND ADVANCEMENT AND THEN CENTRAL OPERATIONS, CENTRAL OPERATIONS, ANYTHING RELATED TO THE CAMPUSES NOW IS HANDLE OUT OF CENTRAL OPERATIONS.
CORRECT. ANYTHING WITH FACILITIES, TECHNOLOGY, PHONE? YES. OKAY.
SO IT'S NO LONGER, YOU KNOW, LIKE MOUNTAIN VIEW WOULD GET A SQUARE FOOTAGE ALLOCATION INTO THEIR BUDGET, JUST NOT THAT WAY.
SO THEY'RE SUPPOSED TO WORK OUT OF THE COMMUNITY AND BUILD RELATIONSHIPS TO BE ABLE TO DETERMINE WHAT ARE THE NEEDS, ETC..
BUT THEN YOU HAVE PRESIDENTS THAT ARE SUPPOSED TO BE DOING THAT SAME THING.
SO WHAT IF ONE ONE STEPS ON THE TOES ONE, THEN ANOTHER ONE KIND OF INTERPRETS IT THAT WAY. SO HOW ARE WE MAKING SURE THAT WHAT THE PRESIDENTS ARE DOING AND WHAT THE WORKFORCE IS DOING IN TERMS OF DIFFERENT POSITIONS ALIGNED AND THERE'S NOT THIS POSSIBLE, WHATEVER.
SO GREAT QUESTION. SO A COUPLE OF THINGS AROUND THAT.
ONE IS UTILIZING SALESFORCE AND SO THAT AS THOSE LEADS, AS THOSE CONTACTS ARE GENERATED BY ANY SIDE ALONG THE WAY, THOSE ARE BEING INPUT INTO SALESFORCE.
SO EVERYBODY CAN KIND OF SEE WHAT EVERYBODY IS DOING, EVEN IN THE OLD STRUCTURE OR THE OLD SYSTEM FROM CAMPUS TO CAMPUS, THERE WAS STEPPING ON TOES THAT WOULD OCCUR THAT MAYBE RICH ONE HAS A CONTACT WITH AT&T, ESPECIALLY SERVICE AREA.
YEAH, EXACTLY. AND SO SO SO SALESFORCE IS HELPING US DO THAT.
THE OTHER THING IS, IS THAT OUT OF PIPERS WORKFORCE TEAM, THERE'S INDIVIDUALS THAT ARE THAT ARE ASSIGNED TO SUPPORT THE WORK OF THE PRESIDENTS.
SO IT'S A LITTLE BIT OF A BUDDY SYSTEM KIND OF THING TO KIND OF MAKE SURE THAT THE RIGHT HAND DOES KNOW WHAT THE LEFT HAND IS DOING.
OKAY. SO THERE'S AN AWARENESS THAT THAT COULD BE AN OVERLAP AND POSSIBLY.
YES, YES, IT NEEDS TO BE IMPROVED OR WHATEVER.
YEAH. AND IT'S STILL YOU KNOW, PIPER'S NOT HERE TODAY, BUT I THINK SHE WOULD TELL YOU IT'S STILL A WORK IN PROGRESS.
BUT AT LEAST WE'VE GOT SOME SYSTEMS IN PLACE TO ACCOUNT FOR ANOTHER ONE.
[01:20:02]
MORE AND MORE QUESTION.IT WAS DECIDED TO STICK YOU OVER.
23 ARE ADJOURN.
* This transcript was compiled from uncorrected Closed Captioning.