[1. Certification of Notice Posted for the Meeting]
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THIS OPEN MEETING OF THE BOARD OF TRUSTEES, IS AUTHORIZED IN ACCORDANCE WTH CODE 551.001, 551.146, VERIFICATION OF NOTICE OF MEETING OF AENDA ARE IN THE OFFICE OF THE CHANCELLOR.
THIS MEETING IS BEING BROADCAST OVER THE INTERNET, I ACCORDANCE WITH 551.058.
COULD YOU CERTIFY THE NOTICE OF THIS MEETING?
[2. Board Workshop: Higher Ed Bonds - Fiscal Responsibility Facilitated by Kennon D. Briggs, ACCT Consultant]
>> THIS MORNING IN THE EARLY AFTERNOON WE WILL BE SPEAKING ABOUT EVERYTHING FINANCIAL.
AND AS TRUSTEES, THAT'S ONE OF OUR PRIMARY DUTIES, OUR FIDUCIARY RESPONSIBILITIES.
IN MY 23 YEARS ON THE BOARD, I CAN'T REMEMBER US AS A BOARD EVER HAVING RECEIVED TRAINING ON THIS ISSUE.
SO WITH THAT, WELCOME, MR. BRAKES?
I WILL LET YOU SHARE WITH US WHAT YOU LIKE TO.
IT'S A PLEASURE TO BE HERE WITH YOU TODAY.
ACCT RETREAT CONSULTANT AND I'M DOING A COUPLE PRESIDENTIAL SEARCHES.
WE ARE FINISHING ONE NEXT WEEK, ELIZABETH CITY, AND I'VE BEN AWARDED IN WESTERN NORTH CAROLINA AT PIEDMONT.
WE ARE HAVING A ENORMOUS AMOUNT OF TURNOVER.
43 PRESIDENCIES IS TURNED OVER.
>> IS THAT BECAUSE OF AGE, OR WHAT?
THE TENURES TEND TO BE LONGER.
MOST ARE JUST AGING OUT OF THE PROFESSION.
IT'S CREATING CHALLENGE BECAUSE THEY DON'T COME WITH THE BREADTH AND DEPTH OF KNOWLEDGE WHICH BEGS THE QUESTION OF EXECUTIVE COACHING.
AS MY WIFE TELLS ME, FAKING RETIREMENT IN 2012, I SERVED FOR NOBA AND NOW PRESIDENT OF LANG TECH.
IF YOU GO BACK TO WHEN JOHN AND I HAD HAIR, I WORKED IN THE GOVERNOR'S BUDGET OFFICE, WORKED FOR GOVERNOR JIM MARTIN, CONGRESSMAN, AND JIM HUNT, KNOWN AS AN EDUCATION GOVERNOR AT THE TIME.
WHEN I WAS ASKED BY MY COLLEAGUES ABOUT THIS RETREATED TO, I GAVE IT SOME THOUGHT.
I'M ALSO A HUGE COLLEGE FOOTBALL FAN.
I LIKE ENEMY TIME WITH YOU TODAY AS A HIGH SCHOOL FOOTBALL PLAYER MAKING THE LEAP TO THE DALLAS COWBOYS.
ACROSS THE COUNTRY, THIS DISTRICT IS INCREDIBLY WELL RESPECTED FOR WHAT YOU DO, WHO YOU ARE, AND HOW YOU DO IT.
I'VE LEARNED THAT THROUGH ACCT AND THROUGH THE NORTH CAROLINA SYSTEM.
YOUR CANCELLOR, JOE MAY, IS VERY WELL RESPECTED IN THE NORTH CAROLINA SYSTEM.
THEY HAVE WATCHED HIS CAREER WITH ENVY AND AWE AND WHAT HE HAS ACCOMPLISHED IN LOUISIANA AND COLORADO.
THE FIRST TIME I EVER MET HIM WAS TODAY, SURE ENOUGH.
ONE COLLEGE CENTRAL PIEDMONT IN CHARLOTTE, PATTERNED THEIR SYSTEM AFTER WHAT YOU HAVE DONE HERE IN DALLAS.
DR. TONY ZIES, BUILT OUT CENTRAL PIEDMONT.
IT'S OUR SECOND LARGEST, ABOUT 18,000 F.T.E.
IT'S GOOD TO BE WITH YOU AND WE WILL SPEND TIME TOGETHER LOOKING AT THESE THINGS.
I THINK TALKING WTH JOHN AND THE CHANCELLOR AND MS. MOLINA, INCREDIBLY HELPFUL, WHICH I APPRECIATE.
WE WILL LOOK AT YOUR FIDUCIARY RESPONSIBILITIES.
I THINK IT'S VASTLY IMPORTANT TO UNDERSTAND HOW THAT PLAYS OUT AND I WILL LEAVE YOU WITH MATERIALS THAT I THINK WILL HELP YOU AS YOU LOOK AT YOUR
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GOVERNANCE STRUCTURE AND WE WILL TALK ABOUT SHARED GOVERNANCE AND WHAT THAT MEANS.YOU JUST PASSED A STAGGERINGLY LARGE BOND AND I APPLAUD YOU FOR THAT.
THINGS YOU LEARND IN NORTH CAROLINA HOW TO UTILIZE THAT MONEY, I WILL TAKE YOU SOME OF THAT WORK AS WELL.
FURTHER, WE WILL DO A CASE STUDY ON SOMETHING INSIDE OF INSTITUTION FOR A MULTI-CAMPUS DISTRICT.
AND THEN CHALLENGES AND OPPORTUNITIES.
MADAM CHAIR, AS WE GO DOWN THE PATHWAY OF TODAY, I BELIEVE IT'S IMPORTANT TO MAKE TWO CONSIDERATIONS.
THE FIRST IS, I BELIEVE HAVING WORKED WITH THE NORTH COLLEGE ASSEMBLY FOR 26-27 YEARS FROM -- BLESS YOU, FROM THE GOVERNER'S SIDE AND COMMUNITY COLLEGE SIDE, IF THERE'S SOMETHING ON YOUR MIND AT THE MOMENT, RATHER THAN LOSING THE THOUGHT, I WELCOME QUESTIONS ALONG THE WAY.
WHEN I FINISH A SEGMENT WE WILL HAVE SOME THOUGHTFUL DSCUSSION ABOUT HOW THAT PLAYS OUT, SO TO SPEAK.
I THINK IF YOU HAVE A QUESTION ALONG THE WAY, I WOULD ENCOURAGE YOU TO ASK IT, DON'T HOLD IT.
I'M GOING TO SHARE I THINK IT'S IMPORTANT TO KNOW ME BETTER.
I CURRENTLY CHAIR HE BOARD OF TRUSTEES OF THE UNIVERSITY OF NORTH CAROLINA ASHVILLE.
IT'S T THE STATE OF NORTH CAROLA LIBERAL PUBLIC ARTS INSTITUTION.
AS SUCH I HAVE SAT IN THE TRUSTEE CHAIR.
I GET TO HAND THE CHAIRMANSHIP OFF, THURSDAY OF THIS WEEK TO MY SUCCESSOR, I'M READY NOT TO BE CHAIR ANYMORE.
IT'S A GREAT JOB BUT IT'S A JOB NEVERTHELESS.
IN THAT ROLE AS CHAIR, I FACED FIDUCIARY, GOVERNANCE, PROGRAMMATIC INSTITUTIONS AND CHALLENGES.
WHATWHAT YOU DO AS A BOARD IS IMPORTANT.
WHAT YOUR CHAIR DOES IS ENHANCED.
YOU TRY TO SPEAK WITH ONE VOICE WHEN YOU GET TO A CERTAIN PLACE.
ONE THING WE TRY TO DO IN ASHVILLE BECAUSE IT'S A VERY DIVERSE INSTITUTION, WE MAY NOT ALWAYS AGREE ABOUT EVERYTHING WE DO BUT IN OUR DOING, WE TRY TO PUT STUDENTS FIRST.
WE BELIEVE THAT'S WHY WE'RE THERE FOR THE BENEFIT OF STUDENTS AND THE COMMUNITY.
AND SO WE THINK IN TERMS OF WHAT IS IN THE BEST INTEREST OF THOSE WE SERVE AND WE SERVE THE STUDENTS.
>> IS YOUR BOARD, AND I SAY THIS, EVER, THEY HAVE A STATEMENT THEY MADE EARLY ON WHEN YOU WERE THERE OR NOT THERE, AGREE TO DISAGREE?
>> IT'S NOT WRITTEN BUT BEING A PUBLIC LIBERAL ARTS INSTITUTION, DIVERSE OPINION AND THOUGHT IS ENCOURAGED IN THE DIALOGUE.
AS CHAIR, I PRESIDED OVER THAT.
WE TRY AT THE END OF THE DAY WHEN WE MAKE A DECISION, WE'RE ALL IN FOR THAT DECISION AND WE SPEAK WITH ONE VOICE.
AGAIN, YOU CAN'T HARDLY BE IN A LIBERAL ARTS INSTITUTION WITHOUT DIVERSITY OF THOUGHT.
>> ONCE A BOARD DECISION HAS BEEN MADE, THAT'S A DIFFICULT THING TO ACCOMPLISH WHEN YOU HAVE QUITE DIVERSE VIEWS FROM, YOU KNOW, FIDUCIARY, SOCIAL/LIBERAL ISSUES VERSUS RIDGEDLY CONSERVATIVE FINANCIAL OPINIONS. HOW DO YOU ACCOMPLISH THAT MEETING OF THE MINDS WHERE YOU CAN'T SPEAK WITH ONE VOICE WHEN YOU HAVE SUCH A DIVERSE GROUP OF PEOPLE?
>> I WILL SPEAK AS TRUSTEE AND CHAIR.
AFTER THURSDAY I GO BACK AND TAKE MY SEAT AT THE TABLE WITH EVERYONE ELSE.
I'LL USE AN EXAMPLE. BEFORE I HAD THE PLEASURE OF HIRING THE CURRENT CHANCELLOR, AFTER ONE YEAR OF SERVICE WE OFFICIALLY INAUGURATED.
THIS CHANCELLOR INHERITED THINGS FROM THE PREVIOUS CHANCELLOR, ONE WAS MARTIN LUTHER KING DAY SPEAKER. WHICH IS GOOD.
WE CELEBRATE THAT EVERY YEAR IN ASHVILLE.
BUT THE SPEAKER THAT HAD BEEN INVITED NOT BY THE NEW
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CHANCELLOR BUT THE PREVIOUS CHANCELLOR'S WATCH WAS SOMEWHAT CONTROVERSIAL.IN THAT CONTROVERSY IT WAS CREATING ANGST EVEN IN A COMMUNITY LIKE ASHVILLE.
SOME CONSERVATIVE, SOME LIBERAL.
WE HAVE VERY MIXED THOUGHT OF OPINION THERE.
AND THERE WAS A CONCERN THAT TTHAT WOULD BE DISRUPTIVE TO STUDENTS, INSTITUTION, AND MORE IMPORTANTLY TO THE COMMUNITY WE SERVE.
HOWEVER, THAT SAID, THE CHANCELLOR WAS PROACTIVE IN INVITING ME TO THE TABLE BEFORE THE DAY MEMBERS OF THE COMMUNITY TO EXPRESS THOUGHTS AND CONCERN AND SHARE THEM.
AND A PRIOR CONVERSATION WITH THE SPEAKER OF THE MLK DAY.
AND SO A LOT OF THOSE ISSUES WERE DISCUSSED, VETTED, THE INVITATION REMAINED EXTENDED.
THE PERSON CAME IN AND WE USED IT AS A LEARNING OPPORTUNITY TO GROW AS A BOARD, COLLEGE AND COMMUNITY.
I THINK THERE IS AN ATTENTIONALITY ABOUT THAT.
THAT YOU MAY NOT LSO GET TO THE SAME PLACE.
BUT I THINK EVERY VOICE HAS THE RIGHT TO BE HEARD, AT LEAST AT UNC ASHVILLE AND THAT'S HOW WE GOVERN.
THE SUBJECTS ARE ABOUT BEFORE YOU.
LET'S DIVE RIGHT IN. I'M WELCOME TO TAKE QUESTIONS AND COMMENTS.
I'M NOT GOING TO READ THE SLIDE.
I LEARNED IN APPROPRIATIONS IN GENERAL ASSEMBLY WHEN I MADE A POWERPOINT PRESENTATION, ONE OF THE MEMBERS SAID DO NOT READ THE SLIDES, I CAN READ THEM FOR MYSELF.
I HAVE COPIOUS NOTES AND I WOULD LIKE TO TALK IN THAT WAY.
WHAT IS A FIDUCIARY, WHAT RESPONSIBILITIES ACCOMPANY YOU AND HOW DO YOU SEE YOURSELF FULFILLING THAT GOAL? BY DEFINITION, A FIDUCIARY HAS PERSONAL RESPONSIBILITIES TO ANOTHER, IT MIGHT BE A PERSON, AN INSTITUTION, IT MIGHT BE TO EACH OTHER.
I BELIEVE YOUR MOST IMPORTANT RESPONSIBILITY AS A TRUSTEE IS TO E A FIDUCIARY FOR THE INSTITUTION.
IN A CASE OF A EDUCATIONAL INSTITUTION, THE RESPONSIBILITIES ARE SEVERAL, RANGING FROM FINANCIAL, WHICH IS PRIMARY.
TO REPUTATIONAL, YOU WANT TO PROTECT THE REPUTATION OF THE INSTITUTION.
IF I PICKED ONE OR TWO THINGS BESIDES FIDUCIARY THAT I THINK YOU HAVE RESPONSIBILITY FOR, IT'S TO HONOR AND FOLLOW THE MISSION AND FOLLOW YOUR STRATEGIC PRIORITIES.
I WILL TELL YOU, I SPENT A LOT OF TIME LOOKING AT YOUR 2019-20 STRATEGIC PRIORITIES.
I BELIEVE ME, I SEE A LOT OF STRATEGIC PLANS AS A CONSULTANT IN MY WORK.
I THINK ESTABLISHING PRIORITIES AND FOLLOWING THOSE PRIORITIES GIVES YOU A GOOD PLACE AS A BOARD FROM WHICH TO GOVERN.
THE MISSION AND STRATEGIC PRIORITIES.
THE FIDUCIARY ROLES ARE SEEN AS DUTIES, UNDERSTOOD TO BE BOTH LEGAL AND MORAL IN NATURE.
THE BIG THREE ARE THE ONES ON THE SCREEN.
THE DUTY OF CARE, THE DUTY OF LOYALTY AND OBEDIENCE.
AND I WANT US TO THINK WHY THESE THREE ARE IMPORTANT.
AS CHAIRMAN OF THE BOARD OF TRUSTEES AT UNC ASHVILLE, I SEE MY RESPONSIBILITY, DUTY OF CARE AS ACTING IN GOOD FAITH.
THAT COMES FROM YOUR MORAL COMPASS, SO TO SPEAK.
AND FRANKLY I USE ALL MY PROFESSIONAL SKILLS AND ALL OF THE MY ABILITIES AND EXPERIENCES IN SERVING THE BEST INTEREST OF THE COLLEGE.
>> CHAIR D. FLORES: EXCUSE ME.
WHAT ABOUT IN TERMS OF DUTY OF CARE ACTING IN GOOD FAITH WHEN THAT MIGHT BE WHAT I AS AN INDIVIDUAL TRUSTEE SEE THAT IS SOMEWHAT CONTRARY TO MAYBE A SMALL NUMBER OF MY CONSTITUENTS.
AND I LISTEN TO THAT SMALL NUMBER OF CONSTITUENTS.
>> BALANCE THAT? THAT'S A GREAT CHALLENGE ADMITTEDLY.
AND THANK YOU FOR BRINGING IT UP.
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ASHVILLE, NUMBER ONE TO CHECK OUR POLITICS AT THE DOOR.WE HAVE CONSERVATIVES, LIBERALS, GENDER AND ETHIC DIVERSITY.
I ASK LET'S CHECK OUR POLITICS AT THE DOOR.
I RESPECT THE FACT YOU ARE ELECTED, AS I RECALL.
WHEN YOU COME TO THE INSTITUTION, THE WAY I DESCRIBE IT AT ASHVILLE AND SAID IT IN THE LEGISLATURE IS I DON'T REALLY WANT, PER SE, REPUBLICAN AND DEMOCRATIC AND LIBERAL AND CONSERVATIVE FRIENDS AND I DON'T GET INTO TO RACE WITH THAT.
I WANT COMMUNITY COLLEGE FRIENDS.
I WANT THOSE WHO ARE FOCUSED ON SERVING THE INTEREST OF STUDENTS.
WHEREVER YOU COME FROM TO THAT PLACE IS YOUR OWN.
BUT WHEN IT COMES TO MEETING THE NEEDS OF STUDENTS AND SERVING THE BEST INTEREST OF THE INSTITUTION, I THINK THAT IS APOLITICAL BECAUSE STUDENTS COME AS STUDENTS, WHETHER ADULT LEARNERS, WHETHER FOR CREDIT, CONTINUING ED, HIGH SCHOOL STUDENTS.
I THINK, MADAM CHAIR, I TRY TO REMIND US TO CHECK THOSE THINGS WHEN WE WALK IN THE ROOM.
ALL THOSE POLITICS AND SOCIAL POSITIONS TRY TO EAVE THEM.
AND FOCUS ON RECOMMENDATIONS THAT COME FROM OUR CHANCELLOR, YOUR CHANCELLOR, OURS AT ASHVILLE OR THE STATE BOARD OF COMMUNITY COLLEGES THAT COME AS POLICY CONSIDERATIONS YOU WOULD ENTERTAIN THAT SERVE THE BEST INTEREST OF YOUR STUDENT BODY.
>> CHAIR D. FLORES: YOU KNOW THAT'S SOME REALLY GOOD INPUT FROM YOU.
BECAUSE I STRUGGLE WITH THAT IN TERMS OF THE DIFFERENT CONSTITUENCIES.
BUT I HADN'T HEARD IT WHILE I HAD HEARD IT BEFORE, I HADN'T HEARD IT S WELL PUT AS WHAT YOU JUST DID.
WE NEED TO FOCUS ON THE INSTITUTIONS, FOCUS ON COMMUNITY COLLEGE FRIENDS.
>> CHAIR D. FLORES: NOT THE LIBERAL, CONSERVATIVE, WHATEVER.
FOCUS ON COMMUNITY COLLEGE FRIENDS.
OUR MISSION IS QUITE VARIED AND DOES SERVE A WIDE ARRAY OF STUDENTS COMING FROM DIFFERENT WALKS OF LIFE.
IF WE WANT TO FOCUS ON ONE SEGMENT OF THAT, IT'S NOT SERVING THE INSTITUTION WELL.
I THINK YOU PUT HAT VERY WELL.
AND I THINK THAT'S A CRITICAL PIECE.
IN YOUR DUTY OF CARE, AND IN MY DUTY OF CARE, HERE'S THE THINGS I THINK ABOUT.
HERE'S WHAT YOU WILL SEE IN THE LITERATURE WHEN YOU GET YOUR BOOK LATER.
AND I'M GOING TO READ ROM THEM, FROM MY NOTES.
YOU HAVE TO BE PRESENT TO CONDUCT THE INSTITUTION'S BUSINESS AND THAT'S TIME CONSUMING.
WELL PREPARED, READY TO ACTIVELY PARTICIPATE.
KNOWLEDGEABLE IN THE MATTERS BEFORE YOU.
I SEND MATERIALS IN ADVANCE SO YOU HAVE AN OPPORTUNITY TO READ AND CONTEMPLATE.
MAINTAINING CONFIDENTIALITY OF MATTERS OF A RESOURCE NATURE.
YOU WILL DISCUSS THINGS OF A LEGAL AND YOUR COUNSEL IS HERE, THINGS OF A LEGAL NATURE OR HUMAN RESOURCE OR PERSONNEL MATTER.
THOSE THINGS STAY IN THE ROOM.
AND TO GO OUT AND DISCUSS THEM PUBLICLY IS SORT OF A BREECH OF THAT DUTY OF CARE.
AND THAT'S HOW I GOVERN MYSELF.
IN SOME OF THESE EXECUTIVE SEARCHES I'M DOING I HAVE 70 OR 80 APPLICANTS FOR A POSITION.
I SHARE THE CANDIDATE, IT'S CONFIDENTIAL FROM THE MOMENT YOU APPLY.
69 PEOPLE ARE GOING BACK TO THEIR OTHER JOB IF WE GET 70 APPLICATIONS.
WE WANT THIS TO BE TRULY CONFIDENTIAL.
WE CAN ONLY NAME ONE PRESIDENT.
YOU HAVE TO CONSIDER PART OF YOUR DUTY OF CARE TO BE A CONFIDENTIAL NATURE.
DOES THAT MAKE SENSE? AND I'M SURE YOU DO THAT.
A DUTY OF LOYALTY REQUIRES YOU TO ACT INDIVIDUALLY AND AS A BOARD IN A MANNER THAT SERVES THE BEST INTEREST OF THE COLLEGE AND ITS PUBLIC EDUCATIONAL PURPOSES RATHER THAN YOUR OWN SELF INTEREST.
A DUTY OF LOYALTY, YOU ARE LOYAL TO THE INSTITUTION.
AND YOU SET ASIDE SOME PERSONAL LOYALTIES.
MADAM CHAIR, THAT ETS A LITTLE BIT OF WHAT YOU WERE ASKING EARLIER.
YOU PUT THE INTEREST OF THE INSTITUTION OR STUDENTS ABOVE YOUR OWN.
I ASK MYSELF CONTINUALLY T UNCA, ARE YOU DOING THIS OUT OF THE SENSE OF WHAT IS BEST FOR YOU OR WHAT IS BEST FOR OUR STUDENTS?
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IF I CAN ANSWER THAT SECOND QUESTION HONESTLY, THEN I THINK I'VE FULFILLED MY DUTY OF LOYALTY .IN FACT, THE ONLY BENEFIT, THE ONLY BENEFIT TO ME, BECAUSE UNC ASHVILLE I WRITE A LOT OF SCHOLARSHIP CHECKS, I TRAVEL, I LIVE ON THE COAST, IT'S 370 MILES ONE WAY TO UNC ASHVILLE.
THE SERVICE, THE ELEMENT OF PUBLIC SERVICE IS GRATIFICATION FOR ITS OWN SAKE.
I DON'T MAKE ANYTHING DOING THIS.
I WAS APPOINTED BY THE BOARD OF GOVERNS TO DO IT.
THE NOTION OF LOYALTY IS, THERE IS NO HIGHER CALLING THAN TO SERVE STUDENTS AND OTHERS IN THE PUBLIC DOMAIN.
DOES THAT MAKE SENSE? SO I THINK THAT'S IMPORTANT.
THE FIRST ONE IS A DUTY OF OBEDIENCE IS TO MAKE SURE THE INSTITUTION STAYS IN ITS SWIM LANE.
OKAY, MAKE SURE IT STAYS IN ITS SWIM LANE.
OPERATING ACCORDING TO ITS BYLAWS, CHARTER, THE LAWS OF THE STATE, ITS EDUCATIONAL PURPOSE, ITS MISSION, ITS ACCREDITATION, BY SACCOC, AND IT HAS GOOD INTERNAL CONTROLS.
IF YOU ARE DOING YOUR DUTY OF OBEDIENCE, YOU MAKE SURE YOUR BYLAWS, MISSION, CHARTER, THOSE THINGS, THOSE ARE ALL THE WAY YOU OPERATE.
SORT OF KEEPS ONE IN THEIR SWIM LANE.
AND IT'S OKAY AT TIMES TO SAY, COUNCIL, ARE WE BUTTONED UP ON THIS ONE? I SAY I TURN TO COUNCIL ALL THE TIME AND SAY, I'M NERVOUS, ARE WE BUTTONED UP? YES, WE ARE OR NO E AREN'T.
>> S. WILLIAMS: EXPLAIN BUTTONED UP.
>> IN COMPLIANCE WITH THE LETTER AND SPIRIT OF THE LAW.
THE SPIRIT OF THE LAW TO ME IS HOW IT'S MADE.
COUNCIL, IS THAT FAIR? WITHIN THE LETTER ND SPIRIT.
LEGISLATIVE INTENT IS SOMETHING I LEARNED.
LEGISLATURE SPEAKS WITH MANY VOICES. IT DOES.
WHEN THEY GET TO THE FINAL SPOT HOW THEY MADE THE SAUSAGE IS HOW IT LOOKS IN LAW.
SO MR. WILLIAMS, THE SPIRIT AND LETTER OF THE LAW TO ME.
IF WE'RE IN COMPLIANCE WITH THAT, WE'RE BUTTONED UP.
IS THAT HELPFUL? GOOD QUESTIONS, YOU ALL.
THANK YOU, I WOULD RATHER THIS BE THIS WAY.
YOU WILL GET TIRED OF ME TALKING, I'M SURE.
MR. JAMESON, AS AN GUARDIAN AND AMBASSADOR FOR THE INSTITUTION.
AS A GUARDIAN AND AMBASSADOR, STANDARD.XPECTED TO SET HE- YOU REALLY ARE.
AND GOVERN SELFLESSLY IN THE BEST INTEREST OF STUDENTS.
I THINK IT'S AN HONOR TO BE ON THIS BOARD.
WHO WOULD HAVE EVER THOUGHT IN MY CASE THAT A FIRST GENERATION COLLEGE KID FROM RURAL NORTH CAROLINA WHOSE PARENTS NEVER WENT TO SCHOOL WOULD WIND UP BEING A TRUSTEE AT A UNIVERSITY.
WHAT MADE IT POSSIBLE? EDUCATION AND HARD WORK.
AND I TRY TO THINK ABOUT THAT AS I DO MY JOB AS TRUSTEE.
AND I THINK TO ME, NOT TO OVERSTATE THE CASE BUT TO ME THAT'S SORT OF THE WAY IT SHOULD WORK.
TALK ABOUT SHARED OVERNANCE A LITTLE BIT.
IS A BASIC PRINCIPLE IN HIGHERD- EDUCATION OF NCLUSION IN KEY AREAS OF THE COLLEGE OR INSTITUTIONAL RESPONSIBILITY AND HOW YOU MAKE DECISIONS.
IT'S A BASIC PRINCIPLE OF INCLUSION IN KEY AREAS OF THE COLLEGE OR INSTITUTIONAL RESPONSIBILITY IN HOW YOU MAKE DECISIONS.
YOU SHARE, YOU ARE THE POLICY MAKING ARM AND SITTING RIGHT BESIDE YOU AND BEFORE YOU IS YOUR CHIEF EXECUTIVE AND ADMINISTRATOR.
YOU SET POLICY, DR. MAY AND HIS TEAM, CARRY THAT OUT.
IN THE MIDDLE, YOU SHARE THAT.
YOU SHARE THAT RESPONSIBILITY.
DR. MAY AND HIS TEAM BRING BEFORE YOU WHAT THEY BELIEVE ARE THE BEST INTEREST OF THE INSTITUTION AND POLICY RECOMMENDATIONS.
IT'S YOUR JOB TO WORK THROUGH ALL OF THAT.
AND THAT SHARED GOVERNANCE, THAT'S GOVERNANCE THAT IS MUTUAL, PARTICIPATORY, CONVERSATIONAL.
I'LL TELL YOU FROM THE OUTSIDE IN, IT APPEARS TO ME YOU DO IT PRETTY DARN WELL.
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I CAN SHARE EXAMPLES IN THE NORTH CAROLINA SYSTEM WHERE THE DOESN'T WORK WELL.EITHER THE PRESIDENT FAILS OR CHANCELLOR, THEY ARE ONE IN THE SAME IN OUR SYSTEM, CALLED PRESIDENTS.
THEY FAIL TO KEEP THEIR BOARD INFORMED OR THERE ARE BOARDS WHO WANT TO CROSS OVER INTO THE ADMINISTRATION OF THE INSTITUTION.
I THINK THE BEST MODEL OF SHARED GOVERNANCE IS WHERE THERE IS CONSENSUS, WHERE THERE S MUTUAL TRUST, AND WHERE THERE IS COLLEGIALITY.
I BELIEVE THAT'S HOW IT WORKS BEST IN GOVERNING.
THERE IS A GREAT BOOK AVAILABLE, MS. FLORES, I MEAN, MS. MELENA, AT MY REQUEST, I ASKED THAT SHE WOULD TRY TO ACQUIRE IT.
I'M GOING TO LEAVE IT WITH YOU TODAY.
I LEARNED IF I CONTRIBUTE THAT NOW, IT MIGHT DISTRACT.
SO AT THE END OF THE AY, THIS WILL ELP OU AS YOU OVE FORWARD THINKING ABOUT SHARED GOVERNANCE AND ABOUT DUTY OF LOYALTY, CARE AND FIDUCIARY RESPONSIBILITIES.
>> CHAIR D. FLORES: I KNOW WE'VE BEEN UNDER SHARED GOVERNANCE FOR A LONG TIME.
CERTAINLY BEFORE YOU WERE HERE.
BUT AS A BOARD, I DON'T THINK WE'VE EVER GOTTEN A GOOD LAYOUT OF WHAT THAT LOOKS LIKE INSTITUTIONALLY.
YOU KNOW, THE DIFFERENT PIECES OF THAT SHARED GOVERNANCE.
MAYBE YOU COULD MAP IT FOR US.
YOU ARE TALKING ABOUT WITHIN THE INSTITUTION?
>> CHAIR D. FLORES: WITHIN THE INSTITUTION.
CERTAINLY, WE HAVE THE DIFFERENT EMPLOYEE ASSOCIATIONS.
BUT THEN YOU HAVE FOR EXAMPLE, THE COUNCIL AND OTHER COUNCILS SO KIND OF MAP IT OUT.
>> CHANCELLOR MAY: I WILL DO THAT.
>> CHAIR D. FLORES: THAT'S A TO-DO FOR LATER.
>> MR. BRIGGS, ARE PERSONNEL DECISIONS BELOW THE CHANCELLOR IN THE PURVIEW OF SHARED GOVERNANCE.
I'LL DESCRIBE MY EXPERIENCES IN THE NORTH CAROLINA SYSTEM, AS CHIEF OF STAFF I HAVE BEEN AN INTERIM PRESIDENT AND INTERIM CFO AT HALF A DOZEN.
I TOLD JOHN I'M NEVER DOING A CFO JOB AGAIN BECAUSE IT'S TRULY PUBLIC SERVICE AS ITS MOST CHALLENGING.
I'M GOING TO CHARACTERIZE THE 58 BECAUSE THEY ARE SOMEWHAT UNIQUE.
GENERALLY SPEAKING, IN THE NORTH CAROLINA SYSTEM, THE BOARD DELEGATE TODAY THE PRESIDENT, THE HIRING OF THE FACULTY AND STAFF.
THERE ARE TIMES WHEN THE MOST SENIOR POSITIONS ARE BROUGHT TO THE BOARD OR CONSIDERATION.
BUT GENERALLY SPEAKING, WHEN IT COMES TO THE HIRING OF THE FACULTY AND STAFF, THAT'S DELEGATED TO THE -- BY THE BOARD TO PRESIDENT OR CHANCELLOR.
AND AT THAT PLACE, THE PRESIDENT OR THE CHANCELLOR SPENDS A GREAT DEAL OF TIME FOCUSING ON THE VICE PRESIDENTS AROUND ACADEMIC AFFAIRS, TUDENT SERVICES, CONTINUING EDUCATION, INSTITUTIONAL EFFECTIVENESS, CFO OF COURSE, PENDS A LOT OF ENERGY TRYING TO IDENTIFY AND BRING THE RIGHT PERSON FORWARD.
SOMETIMES THEY MEET THE BOARD AND HAVE A CONVERSATION.
IT'S THE HIRING AUTHORITY, THE CHANCELLOR OR PRESIDENT.
WHEN YOU GET UNDERNEATH THAT, AND I'LL BE VERY CANDID.
WHEN YOU GET UNDERNEATHS THAT THE CHIEF ACADEMIC OFFICER AND DEAN'S AND DEPARTMENT HEADS GENERALLY KNOW BEST ECAUSE THEY KNOW THE SUBJECT MATTER AND THOSE KINDS OF THINGS.
THAT HIRING REALLY DOES TAKE PLACE AT THE VICE PRESIDENT'S LEVEL DOWN.
IT'S A MAJOR HIGHER, IT'S SHARED WITH THE PRESIDENT.
HE HAS ULTIMATELY APPROVING AUTHORITY.
THE CONTACT DONE BY THE PRESIDENT OR CHANCELLOR, THE VICE PRESIDENT IN COOPERATION ARE THE CFO AND GENERAL COUNCIL.
THAT'S THE NORM IN THE NORTH CAROLINA SYSTEM.
AT UNC ASHVILLE BY LAW THE CHANCELLOR HIRES ALL OF THE VICE CHANCELLORS.
BUT THE BOARD DOES MEET WITH THEM AND HAS CONVERSATION JUST TO GET TO KNOW THEM.
OUR CHANCELLOR NOW DOES THAT CHANCELLOR CABAL DOES THAT WITH US NOW.
I THINK THAT'S PART OF THAT EVEN IN THE CONCEPT OF SHARED GOVERNANCE, THE NOTION OF YOU ENTRUST AND EMPOWER YOUR CHANCELLOR OR PRESIDENT TO MAKE THOSE KINDS OF PERSONNEL DECISIONS. IF YOU LOOK AT THE SAC COC LANGUAGE, THE BOARD SHOULDN'T INTERFERE WITH THE HIRING OF THE INSTITUTION.
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IT DOESN'T MEAN THE PRESIDENT CAN'T CONSULTANT, THEY CAN FROM TIME TO TIME DEPENDING ON THE PREROGATIVE OF THE BOARD.HOW DOES THAT WORK IN A REAL SHARED MANNER? SOME COLLEGES, THERE IS A REPORT MADE TO THE PERSONNEL AND TENURE OR HUMAN RESOURCES COMMITTEE.
THIS IS THE ACTIVITY WE'VE HAD.
AND I THINK THERE ARE TITLE 9 THINGS AROUND TRYING TO MAINTAIN ETHIC AND GENDER DIVERSITY IF YOU WILL.
THERE IS A GOOD BACK AND FORTH.
BUT GENERALLY SPEAKING, THE BOARDS IN THE NORTH CAROLINA SYSTEM AND UNC SYSTEM THAT FALLS TO THE PRESIDENT OR CHANCELLOR, THE HIRING OF PROFESSIONAL STAFF, FACULTY AND THAT SORT OF THING.
>> WHAT I TAKE FROM THAT BASED ON OUR EXPERIENCE, NOT JUST IN NORTH CAROLINA BUT SYSTEMS ACROSS THE COUNTRY, IT IS NOT A GOOD GOVERNANCE PRACTICE FOR BOARDS TO E DELIBERATELY INVOLVED IN APPROVING CONTRACTS OTHER THAN THE CHANCELLOR AS THE DIRECT REPORT.
I THINK THERE IS AN OLD ADAGE, AND I'LL MAKE A REFERENCE TO IT A LITTLE BIT LATER IN SORT OF A COMICAL WAY.
AN OLD ADAGE, THE OARD HAS ONE EMPLOYEE, THAT IS YOUR CHANCELLOR, YOUR PRESIDENT.
AND SOME PRESIDENTS IN NORTH CAROLINA DON'T EVEN WANT A CONTRACT.
THAT WILL TELL THEIR BOARD, I DON'T WANT AN EMPLOYMENT CONTRACT BECAUSE IF YOU ARE NOT SATISFIED WITH MY JOB, IT'S ME YOU NEED TO DISPOSE OF, NOT THE PROFESSIONALS.
>> VICE CHAIR W. JAMESON: IT'S NOT INAPPROPRIATE FOR THE BOARD TO TRACK CERTAIN METRICS WITH RESPECT TO TO DIVERSITY OR INCLUSION OR ANY OTHER POLICY THE BOARD CARES ABOUT?
WE'RE GOING TO GO EEP ON THE FISCAL SIDE IN THE NEXT PRESENTATION.
I THINK NEVER IN THE HISTORY OF HIGHER EDUCATION HAS IT BEEN MORE IMPORTANT OR EXPECTED FOR THERE TO BE ACCOUNTABILITY MEASURES, PERFORMANCE MEASURES, METRICS AROUND THAT.
I'VE SEEN YOUR PERFORMANCE METRICS.
WE HAVE THEM IN NORTH CAROLINA, SINCE 2,000.
I THINK YOU SHOULD HEAR REPORTS OF THAT ETHIC GENDER DIVERSITY, WHY? BECAUSE YOUR STUDENTS ARE ETHICALLY AND GENDER DIVERSE.
IN HIRING STAFF IT'S HELPFUL FOR STUDENTS TO HAVE PEOPLE WHO LOOK LIKE THEM.
I BELIEVE THAT WITH ALL MY HEART.
I THINK IT'S THE NORM TO GET THOSE KINDS OF REPORTS AND IT'S FAIR TO ASK FOR THEM.
IT'S WHERE YOUR ONE EMPLOYEE AND YOU CAN I CONVERSATIONS AROUND AREAS THAT NEED ATTENTION.
IT SHOULD ALWAYS BE THIS IS WHERE WE NEED TO GO AND WE WOULD LIKE TO HAVE A CONVERSATION AROUND THAT.
>> VICE CHAIR W. JAMESON: THANK YOU.
>> S. WILLIAMS: ARE WE USING THE PRESIDENT AND CHANCELLOR INCE THEY ARE ONE IN THE SAME, WHEN YOU SAY THAT, IT'S BOTH OF THEM?
>> IT'S SYNONYMOUS, IN NORTH CAROLINA FOR COCKTAIL INFORMATION.
THE UNC SYSTEM HEAD IS CALLED PRESIDENT.
THAT WAS, THEY ARE CALLED PRESIDENT.
AND THE AMPUS, THE CAMPUS LEADERS ARE CALLED CHANCELLOR.
SO WHEN I MET CHANCELLOR MAY I HAD TO REMEMBER IT WAS CHANCELLOR AND NOT PRESIDENT BECAUSE THE COMMUNITY COLLEGE CHANCELLORS ARE CALLED PRESIDENT.
THEY ARE ONE IN THE SAME IN EVERY SENSE.
IT'S HOW A STATE ELECTS TO PROVIDE THE NOMENCLATOR.
YES, SIR, THEY ARE ONE IN THE SAME.
>> WE HAD A LOT OF CONVERSATION ABOUT METRICS AND TRACKING.
I THINK THAT'S AN IMPORTANT PART OF OUR JOB.
BUT YOU MADE ANOTHER STATEMENT THAT I THINK IS EVEN MORE IMPORTANT.
BECAUSE THESE ARE PEOPLE, NOT JUST THE CHANCELLOR BUT THE DEPARTMENT HEADS, THE PEOPLE WHO ARE N CHARGE OF FINANCE AND IN CHARGE OF LEGAL MATTERS.
THEY ARE PROFESSIONALS AT WHAT THEY DO.
AS A BOARD, WE HAVE TO BE, YOU KNOW, WE HAVE TO BE TRUSTING OF WHAT THEY TELL US TO UNDERSTAND THIS IS IN THE BEST INTEREST OF THE STUDENTS AND FOLLOWING OUR MISSION.
BUT THE OTHER PIECE OF FIDUCIARY RESPONSIBILITY THAT WE HAVE AS WELL IS TO THE TAXPAYER.
WHICH HAS NOT BEEN REALLY A PART OF THIS CONVERSATION YET.
OUR BALANCE IS, WE HAVE A LOT OF THINGS WE WANT TO DO.
WE HAVE GREAT IDEAS AND WE CAN BUT THAT'S OUR BALANCE.THINGS.-
>> BE AWARE OF WHAT THE TAXPAYERS ARE FUNDING.
WE HAVE A 72% POSITIVE BOND, IT
[00:35:05]
SOUNDS LIKE WE DID A PRETTY GOOD JOB.BY THE SAME TOKEN, WE HAD TO BE AWARE OF PROPERTY TAX ALUES AND ALL THE THINGS THAT AFFECT THE PEOPLE WHO PAY THE BILLS.
MAYBE YOU CAN DIG INTO THAT A LITTLE BIT.
IN FACT, I WILL HIT SOME OF THE THAT INTO MY NEXT SEGMENT.
25-YEAR-OLD OUT OF GRADUATE SCHOOL AT NC TATE.
I WAS A COUNTY MANAGER IN A POOR RURAL COUNTY.
I WAS THEIR VERY FIRST AND THEY MADE IT CLEAR TO ME THEY DIDN'T WANT A TAX INCREASE.
THERE WAS NOT GOING TO BE A TAX INCREASE, NO MATTER WHAT HAPPENS HERE.
I WAS THERE A YEAR AND A HALF.
AND A LARGER COUNTY CAME CALLING.
THE COUNTY IN THE EAST WAS ALL DEMOCRATIC.
THE COUNTY IN THE WEST WAS ALL REPUBLICAN.
THREE TIMES THE SIZE, SLIGHTLY MORE AFFLUENT.
THE COMMISSIONERS, T SAID, THERS NOT GOING TO BE A TAX INCREASE.
WE WENT THROUGH A PROPERTY REEVALUATION.
THERE IS A REEVALUATION OF REAL PROPERTY, REAL ESTATE.
WHAT I LEARNED TOO IN MY WORK AS A YOUNG COUNTIES MANAGER WITH THE BOARD OF COMMISSIONERS, ALL ELECTED OF COURSE, WAS IF I TRULY BROUGHT FORWARD THE NEED AND UNDERSTANDING AND THE RELATIONSHIP OF HOW THE PERSON WHO PAYS THE BILL BENEFITS, HOW DO THEY BENEFIT? THEY GO ALONG WITH THAT.
AND THERE WERE VERY MODEST INCREASES, INCREMENTAL TO THE TAX RATE.
I TRANSLATE SO YOU ARE ABSOLUTELY RIGHT.
YOU ARE ACCOUNTABILITY TO THE TAXPAYERS, DR. MAY IS ACCOUNTABLE TO YOU.
IN THAT SHARED TRUST AND GOVERNANCE RELATIONSHIP, I DON'T THINK THERE IS ANY BETTER INVESTMENT ECONOMIC DEVELOPMENT INVESTMENT, HUMAN CAPITAL INVESTMENT THAN POST-SECONDARY EDUCATION.
I THINK IT'S THE TIME THIS SHIFTS.
THERE IS A NEXUS CLEARLY BETWEEN EDUCATION AND EMPLOYMENT OPPORTUNITY.
I WILL TALK ABOUT THAT SOME TODAY.
BUT I THINK THAT YOU SHARE THAT COMMON NTEREST.
>> CHAIR D. FLORES: CERTAINLY WE WANT THE TRUST AND I THINK THERE WAS A GOOD COMMENT MADE AT THE LAST BOARD MEETING.
WE CERTAINLY NEED TO TRUST THOSE WHO WE HAVE HIRED AND THOSE WHO HE HIRED.
FOR PEOPLE OF COLOR, RUST IS A CHALLENGE, TRUST OF INSTITUTIONS IS A CHALLENGE. AND WE'RE STILL THERE.
WE'RE NOT COMPLETELY THERE ESPECIALLY IN REGARDS OUR HIRING.
BECAUSE THE METRICS IN THE HIRING HAVE NOT CHANGED IN OVER FIVE, 10 YEARS, THE PERCENTAGES ARE THE SAME.
WE AS A BOARD NEED TO COME UP WITH METRICS, SOLUTIONS, ET CETERA. WE NEED TO TRUST AND BE ALL IN.
FOR PEOPLE OF COLOR, SOMETIMES THAT'S DIFFICULT.
>> IT'S A GREAT POINT, MADAM CHAIR.
AM I MAY GO ONE STEP FURTHER, YOU MAKE A CRITICAL POINT.
I FINISHED ONE PRESIDENTIAL SEARCH.
I'M ABOUT TO CLOSE OUT A SECOND, LEADING A THIRD.
EVERY CANDIDATE THAT MADE THE SEMIFINALIST POOL HAS BEEN ASKED A VERY INTENTIONAL QUESTION AROUND DIVERSITY AND INCLUSION.
EVERYONE HAS ACKNOWLEDGED THE SAME CONCERN OF NOT MOVING HE NEEDLE AS FAR AS THEY CAN MOVE IT.
I HEARD THE DIFFERENCE BETWEEN DIVERSITY AND INCLUSION, DIVERSITY IS BEING ASKED TO THE PARTY.
INCLUSION IS BEING ASKED TO DANCE.
AND I THINK WHAT THERE IS AN INTENTIONALITY AROUND HIRING.
WE FOUND ASHVILLE, IT'S NOT JUST ABOUT HIRING, IT'S SUPPORTING THE HIRE YOU MAKE.
TO YOUR POINT, IT'S VERY WELL TAKEN.
AND I KNOW I'M CONFIDENT DR. MAY AND HISS TEAM, I KNOW PRESIDENTS IN NORTH CAROLINA HAVE BEEN CHARGEDDED BY BOARDS TO MOVE THE NEEDLE.
IT'S HAPPENING, NOT AS QUICKLY AS SOME WOULD HAVE LIKED.
>> D. ZIMMERMANN: SOME OF OUR INSTRUCTORS HAVE BEEN HERE 38, 42 YEARS.
YOU CAN LOOK THROUGH OUR RETIREMENTS.
SO WE GOT A CHANCE BUT AT THIS POINT WE AN'T THROW SOMEBODY OUT BECAUSE YOU DON'T FIT THE PROFILE.
BUT YOU AVE AN OPPORTUNITY EVERY TIME ONE IS ACANT.
[00:40:03]
>> CHAIR D. FLORES: I DON'T THINK ANYBODY WANTS TO THROW ANYBODY OUT.
IN TERMS OF THOSE WE NEED TO REPLACE BECAUSE SOME HAVE CHOSEN TO LEAVE OR GO ELSEWHERE FOR THEIR CAREER, WE NEED TO BE MORE INTENTIONAL ABOUT BRINGING IN WHAT LOOKS LIKE THE STUDENTS.
>> A COUPLE OF QUICK QUESTIONS TO PONDER BEFORE WE MOVE TO PRESENTATION NUMBER ONE AND TALK ABOUT FISCAL CCOUNTABILITY.
I WANT YOU TO THINK ABOUT TODAY AND AS YOU GO FORWARD AND IN THE LITERATURE, HOW YOU SEE YOURSELF FULFILLING YOUR ROLE AS A TRUSTEE IN SHARED GOVERNANCE, AS A FIDUCIARY, IN SHARED GOVERNANCE, IN ISCAL ACCOUNTABILITY.
I'M GOING TO CHALLENGE YOU ABOUT THAT A LITTLE BIT.
HOPEFULLY MAKE YOU UNCOMFORTABLE.
IN DETERMINING FACILITIES AND DELOITTEING BONDS.
DELOITTE -- I STARTED WITH FIDUCIARY AND SHARED GOVERNANCE BECAUSE THIS IS WHERE THE MANAGEMENT OF THE INSTITUTION, THE LEADERSHIP OF THE INSTITUTION, THE POLICY MAKING AROUND THE INSTITUTION, ALL THESE THINGS COME TOGETHER AROUND BUILDINGS AND PROGRAMS AND STUDENTS AND ALL THOSE KINDS OF THINGS.
AND HOW YOU USE MONEY, HOW YOU ARE ACCOUNTABLE.
THOSE ARE THE QUESTIONS I WOULD ASK YOU TO KEEP IN MIND AS WE WORK THROUGH OUR CONVERSATIONS.
FIDUCIARY ROLE, SHARE GOVERNANCE WITH OUR PRESIDENT.
SOUND RIGHT, CHANCELLOR? DOES THAT MAKE SENSE? READY TO MOVE ON? ALL RIGHT.
LET'S DO, LET'S GET INTO MY HAPPY PART OF THE WORLD.
>> S. WILLIAMS: IS OUR PRESENTATION TAILORED FOR A COMMUNITY COLLEGE OR GENERIC?
>> WROTE THIS SPECIFICALLY FOR DALLAS COUNTY COMMUNITY COLLEGE DISTRICT.
I CONSULTING WITH YOUR CFO, HAD TO GET A READ ON YOUR CHALLENGES AND OPPORTUNITIES.
I'VE NEVER DONE ONE QUITE LIKE IN THIS BEFORE AND NEVER THIS BIG.
>> S. WILLIAMS: MAYBE NEVER AGAIN.
IN TERMS OF SHARED GOVERNANCE AND FISCAL ACCOUNTABILITY WE'LL EXPLORE MONITORING COLLEGE FINANCIAL HEALTH AND UTILIZATION OF A RAINY DAY FUND.
THAT GETS BACK TO YOUR TAXPAYER ACCOUNTABILITY STUFF.
YOU DON'T HAVE ANY GREATER FIDUCIARY RESPONSIBILITY THAN HIRING YOUR CHANCELLOR.
BEHIND THE FISCAL AFFAIRS OF THE INSTITUTION.
YOU CAN GET A LOT OF THINGS RIGHT OR WRONG BUT YOU CAN'T GET THAT WRONG AS A BOARD.
IF WE APPLY THE PRINCIPLE OF SHARED GOVERNANCE AND FIDUCIARY RESPONSIBILITY TO BOTH FISCAL HEALTH AND ACCOUNTABILITY, IT'S AKIN TO YOU ARE DOING YOUR DUE DILIGENCE BUT STAYING AT ARM'S LENGTH.
DOING YOUR DUE DILIGENCE BUT STAYING AT ARM'S LENGTH.
THAT MEANS YOU DON'T GET INTO THE WEEDS ON FISCAL AFFAIRS.
I'LL EXPLAIN WHAT YOU SHOULD BY DOING.
BUT I KIND OF -- IT'S THE TRUST BUT VERIFY NOTION.
AS A CFO I EXPECTED MY SYSTEM PRESIDENT, MY FINANCE COMMITTEE CHAIR OF THE BOARD, THE COMMUNITY COLLEGE CFO'S, I EXPECTED THEM TO ASK ME QUESTIONS AND HOLD ME ACCOUNTABLE.
THERE IS NOTHING WRONG WITH THAT.
IT MEANS THAT THE BOARD THROUGH ITS FINANCE COMMITTEE MEETINGS AND THE WORK OF THE SESSIONS AND OTHER REPORTING PROCESSES, YOU SHOULD HAVE KNOWLEDGE OF THE FOLLOWING THINGS ALWAYS.
THE ANNUAL BUDGET, OPERATING REVENUES AND EXPENDITURES AT THE BEGINNING AND END OF THE YEAR.
YOU SHOULD GET PERIODIC REPORTS IN BETWEEN.
YOU SET A BUDGET, YOU REVIEW THE OUTCOMES IN YOUR ANNUAL FINANCIAL REPORTS.
YOU SHOULD KNOW WHAT'S GOING ON IN BETWEEN THAT TIME.
CAPITAL IMPROVEMENT PRIORITY AND PROGRESS.
YOU SHOULD KNOW WHERE YOU ARE IN YOUR BUILDING PROGRAM.
YOU SHOULD KNOW WHERE YOU ARE IN YOUR BUILDING PROGRAM.
AND ANY OTHER FISCAL MATTERS THAT THE BOARD ITSELF FEELS WORTHY OF DELVING INTO.
BUT IT ALSO MEANS THAT YOU ENTRUST YOU CHANCELLOR AND CFO WITH DECISION-MAKING AUTHORITY ON ISCAL AFFAIRS ONCE YOU HAVE APPROVED THE CAPITAL IMPROVEMENTS PLAN, THE BUDGET, ET CETERA. ONCE YOU PUT THOSE THINGS IN MOTION, YOU TRUST THEM
[00:45:01]
BOTH TO MANAGE THE AFFAIRS OF THE INSTITUTION WITHOUT INTERFERENCE.>> CHAIR D. FLORES: BY TRUSTING.
IF THERE IS SOMETHING GOING SERIOUSLY WRONG, WOULD THAT COME THROUGH ON AUDIT? THE FINANCIAL REPORTS? I MEAN HOW SOMEONE THAT IS NONFINANCIAL OR NOT HAVE A LOT OF DEPTH IN FINANCES, HOW WOULD SOMEONE LIKE ME KNOW THAT WE'RE ON THE RIGHT PATH OR THE WRONG PATH?
>> THAT'S WHERE THE PERIODIC REPORTING IS IMPORTANT.
THAT'S WHERE YOUR MONTHLY OR QUARTERLY EXPENDITURE REPORTS.
BUDGETSARE DAUNTING ONLY BY THE SIZE OF THE NUMBERS BECAUSE EVERY BUDGET HAS PERSONNEL EXPENDITURES, IT HAS EQUIPMENT EXPENDITURES, CAPITAL EXPENDITURES.
IF YOU SET THE BENCHMARK LINE, THE BASELINE WITH THE BUDGET AT THE BEGINNING OF THE YEAR, YOU GET PROGRESS REPORTS ON HOW THOSE FUNDS ARE BEING EXPENDED.
HOW MUCH EACH MONTH OR QUARTER.
IF THERE ARE ISSUES AROUND BUILDINGS THAT ARE COMING SLOWER ALONG THAN OTHERS.
THERE ARE UNANTICIPATED EXPENDITURES LIKE AN EMERGENCY.
I MEAN, THINK ABOUT THE COMMUNITY COLLEGES IN AND AROUND HOUSTON.
IF YOU DID, THOSE ARE THE KINDS OF THINGS YOU PUT SOMETHING IN MOTION, MONITOR IT THROUGH PERIODIC REPORTING AND ASK QUESTIONS.
>> CHAIR D. FLORES: LIKE THE ENRON SITUATION, BAD ALL THE WAY AROUND.
I IMAGINE THEY HAVE A BOARD OF DIRECTORS.
>> I GO BACK TO THE FIDUCIARY RESPONSIBILITY.
THAT BOARD WAS OT PAYING ATTENTION AND PERHAPS NOT BROUGHT THE INFORMATION.
I THINK THERE IS A DUAL LEVEL OF RESPONSIBILITY.
THE CHANCELLOR AND CFO OR CHIEF ACADEMIC OFFICER HAVE A RESPONSIBILITY TO BRING INFORMATIVE, ACCURATE, TIMELY INFORMATION AND THOSE SORTS OF THINGS.
>> CHAIR D. FLORES: OKAY, LET'S SAY THEY ARE NOT BRINGING THE FULL INFORMATION.
WOULD THAT COME THROUGH IN AN AUDIT?
>> CHAIR D. FLORES: LET'S SAY THAT ALL OF THEM ARE DOING THE WRONG THING.
>> CHAIR D. FLORES: AND WE'RE REQUIRED TO HAVE AN ANNUAL AUDIT WOULD THAT KIND OF BE OUR SAFETY CHECK? THE AUDIT?
THERE ARE FOLKS, THE INTERESTING THING, THIS ISN'T A ONE-STOP-LAYER OF GOVERNANCE.
YOU HAVE A STATE AUDITOR IN TEXAS.
YOU HAVE GOVERNMENTAL BOARDS WHO HOLD YOUR CFO TO A CERTAIN ACCOUNTING PRACTICE AND STANDARD OF CARE.
I HAVE A PARAGRAPH, YOU ASKED WAS THIS GENERIC.
I TOOK ENOUGH, YOU KNOW, MY WIFE SAYS I'M WORKING CHEAP BECAUSE THE TIME I SPEND ON THE PREPARATION.
I READ YOUR CAFR, CONSULTED ANNUAL FINANCIAL REPORT.
THERE IS MORE GOOD INFORMATION THAN ANY ONE I'VE SEEN BEFORE.
I READ YOUR O AUDIT, BUDGET REQUEST TO THE STATE GOVERNING BOARD, THE BUDGET REQUEST.
I READ YOUR LEGISLATIVE APPROPRIATION REQUEST.
I LOOKED AT YOUR BOARD MINUTES ONLINE OF YOUR FINANCE COMMITTEE MEETINGS.
NOW, THIS IS ONE CFO FROM NORTH CAROLINA WHO IS GOING TO GO BACK, PROBABLY NEVER HAVE ME BACK AGAIN BUT THAT'S OKAY.
BUT I WILL TELL YOU TO BE RECOGNIZED NATIONALLY FOR QUALITY OF REPORTING LIKE THIS INSTITUTION HAS BEEN, IT'S GOTTEN NATIONAL RECOGNITION FOR ITS REPORTING.
YOU ARE KIND OF IN THE 1% OF ALL COMMUNITY COLLEGES ACROSS THE COUNTRY.
AND I EAD EVERY ONE OF THE 58 AUDITS IN NORTH CAROLINA BECAUSE I WANT TO KNOW WHAT'S GOING ON IN THE SCHOOLS SINCE I QUOTE, RETIRED.
WE HAVE ONE SCHOOL ON SAC'S PROBATION.
WHEN I READ YOUR REPORT, I CALLED JOHN AND SAID, I'VE NEVER SEEN ONE QUITE THIS GOOD BEFORE.
I HAVE NO REASON TO SAY THAT UNLESS IT'S TRUE.
BUT YOUR CAFR, MADAM CHAIR, I'M GETTING TO MY POINT.
YOUR CAFR, YOUR CONSULTED ANNUAL FINANCIAL REPORT, I HAVE IT BEFORE ME.
WHEN I READ THROUGH THAT AND SEE YOUR RESERVES, YOUR PERCENT OF EXPENDITURES ON PERSONNEL, YOUR PAY OFF OF INDEBTEDNESS, IT'S A WEALTH OF INFORMATION AND I DON'IDON'T NEED TO BE A FISCAL T
[00:50:05]
TO GET THAT ROM IT.I JUST WANT TO SAY, I THINK THIS DISTRICT DOES A REALLY GOOD JOB ON FINANCIAL MANA MANAGEMENT AND REPORTING.
AND IT'S A LOT OF HARD WORK BUT THE INFORMATION IS THERE CLEARLY.
>> THERE IS A COUPLE OF STRUCTURAL ISSUES WITH RESPECT TO FINANCES I WOULD LIKE TO ASK ABOUT.
WE HAVE A PORTION CALLED PROVISIONS, WHICH ARE BASICALLY LARGE OR CERTAIN CATEGORIES OF EXPENDITURES, WE DON'T KNOW EXACTLY WHAT WE'RE SPENDING ON.
MILLIONS ARE RESERVED TO DO CERTAIN THINGS.
AND WITHOUT NECESSARILY COMING BACK TO THE BOARD.
HOW MUCH FINANCIAL AUTHORITY IS APPROPRIATE FOR A BOARD TO DELEGATE IN THAT MANNER IS NUMBER ONE.
NUMBER TWO, AT THE END OF ANY BUDGET CYCLE, IF A PLACE IS WELL MANNED AND EFFICIENCIES ARE REALIZED.
MY UNDERSTANDING IS THEY ARE SWEPT INTO THE RAINY DAY FUND.
>> WE'RE GOING TO TALK ABOUT THAT.
>> YOU CAN HOLD OFF ON THE LATTER ONE.
WHAT'S PROMOTE FROM THE BOARD FROM A STRUCTURAL PROCESS IN TERMS OF REALLY, I DON'T WANT TO SAY UNDESCRIBED DELEGATIONS BUT LARGE DELEGATIONS OF SIGNIFICANT FINANCIAL EXPENDITURE.
>> I THINK THERE IS A CORRELATION BETWEEN THE SIZE OF INSTITUTION AND THE DELEGATION AUTHORITY.
AND I'M GOING TO BE-- GIVE YOU MY VIEW OF THAT FROM THE NORTH CAROLINA SYSTEM AND OTHER SYSTEMS I'VE SEEN.
INTERESTINGLY, THE SMALLER THE INSTITUTION, THE TIGHTER THE CONTROL BY THE BOARD.
THE LARGER THE INSTITUTION AND MORE COMPLEX IT IS, THE GREATER THE DELEGATION.
AND I THINK THE WHY THAT IS THIS.
THIS IS MY 40 YEARS OF DOING THIS.
COMPLEXITIES OF ORGANIZATIONS NECESSARILY REQUIRE SOME DELEGATED AUTHORITY SO YOU ARE NOT SPENDING ALL OF YOUR TIME IN BUREAU ATTIC PROCESSES AND THE DELIVERY OF HE SERVICE NEVER TAKE PLACE.
WHAT DOES THAT MEAN, KENNON? IT MEANS YOU'VE GOT SEVEN CAMPUSES AND FIVE BRANCH CAMPUSES, IN ADDITION, AS I UNDERSTAND? THAT'S A BIG ORGANIZATION.
YOU HAVE TO EMPOWER AND ENTRUST, AND I THINK YOU GIVE LUMP SUM BUDGET TODAY EACH CAMPUSES IF THAT'S ACCURATE.
I THINK YOU EMPOWER AND TRUST THROUGH DELEGATION THAT AT ONE OF YOUR CAMPUSES, INCLUDING THE CENTRAL DISTRICT THE SUPPORT, REGISTRATION, FINANCIAL AID, ECONOMIC DEVELOPMENT, COMMUNITY OUTREACH, ALL THOSE THINGS YOU DO, ARE TAKING PLACE ON A CONTINUING BASIS.
AND I FIND THAT BOARDS TYPICALLY ARE MORE TRUSTING GIVING THE COMPLEXITIES OF THAT WITH LARGER OPERATIONS THAN SOME OF OUR SMALL COUNTIES WHERE THE BOARD WANTS TO MONITOR EVERY SINGLE DECISION AND IT STYMIES DECISIONS.
THEY CAN ADD PROGRAMS, DELETE PROGRAMS, THEY CAN SORT OF SPEND TO MEET AN EMPLOYER NEED FOR CUSTOMIZED TRAINING FOR THAT INDUSTRY ON A DIME.
BUT I THINK IF THERE ARE REPORTING REQUIREMENTS OR CONTINUING MONITORING AND REPORTING REQUIREMENTS ACK TO THE THE GOVERNING BOARD ON SO MANY THINGS, IT OGS THE DELIVERY OF THE THAT EDUCATIONAL TRAINING DOWN.
THAT'S MY OBSERVATION IN NORTH CAROLINA.
YOU HAVE TO DECIDE WHAT YOU ARE COMFORTABLE WITH AS A BOARD IN THAT DELEGATION.
AT UNV ASHVILLE, WE'VE DONE TWO THINGS ON MY WATCH AS TRUSTEE, ONE AS CHAIR.
WE DIDN'T HAVE AN EXECUTIVE COMMITTEE EMPOWERED WITH DECISION MAKING.
IN REAL TIGHT SITUATIONS, WHAT DOES THAT MEAN? IT MIGHT BE A CRITICAL HIRE.
WE PUT IN PLACE AN EXECUTIVE COMMITTEE SIX YEARS AGO, THE FIRST WE EVER HAD AND SAID THAT THE CHAIRMAN, VICE CHAIRMAN AND SECRETARY OF THE BOARD WOULD ACT WITH AUTHORITY IN THE BOARD'S
[00:55:01]
STEAD ON ANY CRITICAL DECISION MAKING WITH A CONTRACT, BUT THE CHAIR HAD TO USE DISCRETION WITH THE CHANCELLOR IN OUR CASE, THE CHANCELLOR, TO DETERMINE IF THE FULL BOARD NEEDED TO BE ENGAGED WITH THAT CONVERSATION OR COULD THAT ACT ON THAT MATTER AND REPORT IT BACK TO THE BOARD? AND THERE HAVE BEEN SOME OF THOSE AROUND DORM OPENINGS, GOD FORBID, AROUND A CAPITAL CONSTRUCTION PROJECT.THIS NEEDS TO GO TO THE BOARD.
I THINK, MR. RITER, I I I'M GIVG YOU THE LONG ANSWER BUT I BELIEVE YOU HAVE TO DECIDE AS A BOARD WHAT YOU ARE COMFORTABLE DELEGATING IN TERMS OF FISCAL, EMPLOYMENT, CONTRACTUAL AUTHORITY O YOUR CHANCELLOR AND TEAM AND HOW YOU WANT TO HEAR ABOUT THAT AND WHEN.
I THINK YOU OUGHT TO HEAR ABOUT IT.
YOU ARE A GOVERNING BOARD OR GOODNESS SAKE.
BUT I DON'T THINK YOU WANT TO GET SO ENGAGED THAT THE PROCESS OF EDUCATION AND THE ABILITY TO MOVE WITH ALACK RATE AND DISPATCH IS CUMBERSOME.
>> P. RITTER: DO YOU FEEL YOU HAVE THE AUTHORITY TO ACHIEVE THE OALS THIS BOARD HAS SET?
I THINK THE RESULTS HAVE SHOWN THAT WE'RE ABLE TO OVE IN A TIMELY FASHION WHILE ALSO APPROPRIATELY ENGAGING THE BOARD IN CONVERSATIONS AS IT RELATES TO DIRECTIONALLY WHERE WE'RE HEADED AT ANY ONE TIME.
THE BOARD HAS BEEN SUPPORTIVE OF THAT.
>> S. WILLIAMS: WHEN THE NAME ENRON POPPED UP A WHILE AGO, THE THING THAT CONCERNED ME, I WAS SERVING SEVERAL BOARD AT THE TIME.
NOT THINKING A WHOLE LOT, A LOT OF TIME YOU LOOK AND SEE WHO IS ON THE OARD AND SAY YES OR NO.
WHO WAS CHAIRMAN OF THE BOARD OF ENRON, I MEAN, OF THE BILL GRAHAM'S WIFE, WENDY, CAME OUT IN THE PAPER SHE WAS CHAIRING THE BOARD.
AND SHE DIDN'T HAVE ALL THE ANSWERS AT ALL.
THAT TOLD ME, WHATEVER HAPPENS, YOU CAN NEVER BE SO BIG YOU BETTER CHECK THINGS OUT.
>> MR. WILLIAMS, THAT IS SO RIGHT.
THAT'S WHY I INTENTIONALLY STARTED THE DAY WITH YOUR DUTIES OF CARE, LOYALTY, AND OBEDIENCE.
AND THEN THE SHARED GOVERNANCE CONVERSATION.
I THINK YOU AS A BOARD MEMBER, YOU ARE AN AMBASSADOR BUT YOU ARE A FIDUCIARY AND YOU HAVE TO KNOW WHAT'S GOING ON AT YOUR INSTITUTION.
BUT THAT ALSO MEANS PREPARING IN ADVANCE, PARTICIPATING, SHOWING UP, ASKING QUESTIONS, QUESTIONS ARE HEALTHY.
IN A PUBLIC DOMAIN, I MEAN WE'RE BROADCASTING THIS.
YOUR GUIDING LIGHT IN ALL OF THIS ARE A COUPLE OF THINGS.
I'M GOING TO GET BACK TO THE FINANCIAL STUFF.
YOUR GUIDING LIGHT IS OUR MISSION, BYLAWS, DELEGATED AUTHORITY TO THE PRESIDENT, AND THEN THAT ACCOUNTABILITY PIECE THAT COMES BACK WHEN YOU MEET.
YOU MEET IN COMMITTEES, I ASSUME.
DID YOU MEET AS A COMMITTEE OF THE WHOLE OR IN COMMITTEES?
>> CHANCELLOR MAY: WE HAVE COMMITTEES BUT I THINK GENERALLY THERE IS FULL PARTICIPATION.
AND WE CHANGED THAT AT ASHVILLE THAT WE SCHEDULE COMMITTEE MEETINGS AT CONVENIENT TIMES THAT EVERY TRUSTEE COULD SHOW UP AND HOULD.
>> S. WILLIAMS: WHAT YOU SERVE ON OR CONSULTING HAVE INSURANCE?
>> EVERY COMMUNITY COLLEGE BOARD IN NORTH CAROLINA HAS LIABILITY INSURANCE, YES, SIR.
WHEN IT COMES TO FINANCIAL HEALTH, I'M GOING TO DROP BACK.
I WOULD RATHER IT BE THIS WAY.
THIS IS THE KIND OF CONVERSATION I WANTED US TO HAVE.
IN THE AREA OF FINANCIAL HEALTH, IT'S MORE THAN A SERIES OF REPORTS.
TOR APPROVING MULTIPLE AGENDA TIMES.
IT INCLUDES AINTAINING HEALTHY FUND BALANCE AND MANAGING CASH
[01:00:04]
FLOWS.MONITORING ENROLLMENT AND STUDENT DEMAND THAT EFFECTS REVENUES.
YOUR ENROLLMENT EFFECTS YOUR TUITION.
YOU ARE PARTIAL PARTIALLY TUITIN AND STATE APPROPRIATION DRIVEN.
ESTABLISHING TUITION CHARGES THAT CONSIDER BOTH ISCOUNT RATES AND THE ABILITY OF YOUR STUDENTS TO AY.
NOW, FROM WHAT I UNDERSTAND IN DOING MY DEEP DIVE INTO THE DALLAS DISTRICT, YOU MAINTAIN A PRETTY LOW CREDIT HOUR CHARGE.
THE BEST FORM OF FINANCIAL AID IS LOW TUITION, IN MY MIND.
SETTING TAX RATES THAT REFLEX OPERATIONAL NEEDS AND DEBT SERVICE REQUIREMENTS.
I READ YOUR CAFR, 12 CENTS PER HUNDRED TAX RATE, THAT IS REALLY LOW.
BUT IT HAS TO BE SET IN SUCH A WAY YOU AMORTIZE YOUR DEBT AND YOU HAVE OPERATING REVENUES.
>> S. WILLIAMS: WHAT HAVE YOU SEEN?
>> INTERESTINGLY IN NORTH CAROLINA, TRUSTEES CAN'T INCUR DEBT AND CAN'T TAX.
YOU ARE IN A VERY GOOD POSITION HERE IN THIS STATE.
YOU HAVE A NICE HEALTHY BALANCE.
BECAUSE IN NORTH CAROLINA, THE STATE APPROPRIATIONS SO HEAVILY UNDERWRITE THE OPERATIONS OF ALL 58 COMMUNITY COLLEGES, IF THERE IS A RECESSION, OUR STATE FUNDING GOES DOWN AT THE TIME OUR DEMAND GOES UP.
IN YOUR CASE, YOU HAVE A THREE-LEGGED STOOL BETWEEN APPROPRIATION, TAX AND UITION.
AND BECAUSE YOU ARE IN A REALLY GOOD, STRONG GROWTH AREA, YOU ARE SORT OF INSULATED A LITTLE BIT FROM THAT IF THAT MAKES SENSE.
WE DON'T HAVE THE SAME BALANCE.
YOU HAVE A GOOD BALANCE IN THIS STATE IN THAT REGARD.
>> CHANCELLOR MAY: WE'RE FORTUNATE IN TEXAS AS AN URBAN INSTITUTION.
I WOULDN'T SAY SIMPLY BECAUSE OF THE CLIMBING TAX BASE AND WHAT'S HAPPENED.
>> CHANCELLOR MAY: IF YOUR STATE APPROPRIATION DROPS DRASTICALLY, WHAT DO YOU DO? STOP CAPITAL PROJECTS?
WE GREW 50,000FTE IN FOUR YEARS AND THE HEAD COUNT WAS PROBABLY 75,000 OR MORE.
I MEAN, IT GROWS TO PROBABLY A LEVEL OF QUESTIONING THE FISCAL, I MEAN, THE ACADEMIC INTEGRITY OF THE COURSE.
THAT'S THE ONLY WAY WE KEEP OURSELVES AFLOAT WITH MARKED TUITION INCREASE.
>> CHAIR D. FLORES: DURING THE TIME WHERE YOU HAD TO HAVE THOSE TUITION INCREASES, IT SOUNDS LIKE IT WAS SUBSTANTIAL, DID YOUR ENROLLMENT DECLINE?
>> NO, THERE WERE SO MANY PEOPLE DISLOCATED IN THE STATE, PRIMARY A MANUFACTURING STATE, THERE WAS SO MUCH DISLOCATION.
UNEMPLOYMENT, 15-20% THROUGHOUT THE STATE.
I'M GOING TO TALK ABOUT THE RAINY DAY FUND.
WE USED BUCKETS OF STUDENT FEES TO KEEP THE DOORS OPEN ND OPERATING.
AND BUT WE REALLY DRAMATICALLY RAISED TUITION.
THE DEMAND WAS, WE WERE THE ONLY STOP FOR A LOT OF PEOPLE.
AND THAT WAS A CLIFF BECAUSE IN 2012 WHEN THE MARKET TURNED AROUND AND PEOPLE WENT BACK TO WORK, WE DROPPED THE OTHER SIDE OF THE CLIFF.
THAT'S BEEN CHALLENGING AS WELL.
ANOTHER ONE OF YOUR FISCAL HEALTH INCLUDING MONITORING ACADEMIC PROGRAM OFFERINGS AND THEIR FINANCIAL VIABILITY IN ROI.
SOMETIMES YOU HAVE TO RESET ACADEMIC PROGRAMS. AND I'LL TALK ABOUT THAT LATER IN DETAIL.
BUT I WILL TELL YOU THERE ARE TIMES IF YOU DON'T TAKE A HARD IN THE CASE STUDY, IF YOU DON'T TAKE A HARD LOOK AT THE ACADEMIC OFFERINGS, YOU MAY PAY FOR THINGS THERE IS NO DEMAND FOR.
I'LL GO DEEP INTO THE CASE STUDY ON THAT ONE AND TELL YOU WHAT THE COMMISSION IS FACED WITH.
I WOULD SAY A LARGE MULTIDISTRICT CAMPUS HAS ADDED ACCOUNTABILITY.
WHILE YOU HAVE CONTROL OVER FISCAL POLICY AND ADMINISTRATION HAS CONTROL OVER THE DAY-TO-DAY FINANCIAL MANAGEMENT, I GUESS THE QUESTION BECOMES, TO YOUR
[01:05:03]
POINT, ALWAYS ONE STEP AHEAD OF ME IN ASKING THE QUESTION.WHILE THERE IS THE DELINEATION OF POLICY FOR THE BOARD, ADMINISTRATION FOR YOUR CHANCELLOR, THE QUESTION BECOMES HOW MUCH OPERATIONAL BUDGET AND FINANCIAL AUTHORITY SHOULD BE DELEGATED TO THE CAMPUSES? NOW AGAIN, I NOTE THAT YOU HAVE A LUMP SUM APPROPRIATIONS TO YOUR CAMPUSES.
IN MY MANY YEARS OF WORK, AS I SAID, YOU BEAT ME TO MY NOTES, I HAVE SEEN N MULTICAMPUS DISTRICTS IF YOU EXERCISE TOO MUCH CONTROL IN DECISION MAKING, OVERMANAGEMENT, YOU STYMIE THEIR ABILITY TO FUNCTION AND OPERATE.
I THINK THERE IS A HEALTHY BALANCE EVEN WITHIN THE INSTITUTION BETWEEN THE CHANCELLOR, THE CXO, CHIEF ACADEMIC OFFICER, STUDENT SERVICES VICE PRESIDENT IN HOW MUCH THEY CONTROL AND DELEGATE TO THE CAMPUSES.
BUT I BELIEVE THAT YOU TRUST YOUR CHANCELLOR, YOUR CHANCELLOR AND THEIR TEAM WORK WITH AND TRUST YOUR CAMPUS.
ARE THEY PRESIDENT OR VICE CHANCELLORS.
I THINK THERE IS A GOOD HEALTHY FLOW IN THE PROOFS IN HE OUTCOMES.
WHAT'S GOING ON WITH STUDENT SUCCESS, CREDENTIALING, COMPLETION, ENROLLMENT, DEMAND.
AND YOU GOT METRICS AROUND THAT.
I MEAN ACH CAMPUS HAS ITS OWN METRICS AS I RECALL.
THAT'S THE WAY IT'S SUPPOSED TO BE.
IF A CAMPUS IS FALLING OFF A LITTLE BIT, YOU ASK THE QUESTIONS.
IS IT LEADERSHIP, FACULTY, STAFF? WHAT'S GOING ON ERE?
>> CHAIR D. FLORES: IT'S SYSTEMIC WITH US.
>> CHAIR D. FLORES: IT'S SYSTEMIC, WE'RE WORKING TO ADDRESS THAT.
>> P. RITTER: THIS IS GOING TO BE AN INTERESTING AREA FOR US IN THE NEXT COUPLE OF BUDGET CYCLES.
WE'RE GOING TO VOTE THIS AFTERNOON ON.
>> CHANCELLOR MAY: MOVING FORWARD WITH UNIFIED ACCREDITATION FOR THE DISTRICT.
WHICH IS A SEPARATE ISSUE ENTIRELY FROM THE FISCAL MANAGEMENT AND WHAT LEVEL OF DELEGATION FROM THE BOARD TO THE CHANCELLOR BUT THEN WHAT LEVEL OF EMPOWERMENT DOWN TO THE CAMPUSES.
I DON'T KNOW, I'M SURE JOHN, TISKA AND THE PEOPLE WHO MANAGE IT HAVE GOOD IDEAS ON THAT.
IT SEEMS LIKE YOU COULD SWING TOO HARD TOWARD CENTRALIZATION IF GOING THAT DIRECTION ON ACCREDITATION WITH RESPECT TO TO FISCAL MANAGEMENT INNOVATION OF THE CAMPUS LEVEL, WHICH IS ONE OF THE PREDICATES FOR OVER 50 YEARS.
BUT AT THE SAME TIME, THERE IS IF YOU PUT THE MONEY DOWN THERE, YOU KNOW, HOW IS IT USED.
A QUESTION I ASKED EARLIER, WHAT HAPPENS WITH UNEXPECTED SURPLUS AT THE END OF THE FISCAL YEAR.
A LOT OF PROJECTS DON'T AVE A 12-MONTH TIMELINE.
YOU CAN CREATE PRESERVES INCENTIVES IF YOU ARE SWEEPING EVERYTHING AT THE END OF THE YEAR.
I DON'T KNOW, ANY FRAMING ON THOSE TYPES OF ISSUES YOU CAN OFFER MIGHT BE HELPFUL.
WELL, I THINK SORT OF BACK TO THE HEALTHY BALANCE, I HATE TO KEEP SAYING THAT.
I REALLY AM GOING TO SPEND TIME ON UTILIZATION OF THE RAINY DAY FUND.
WE'RE SORT OF PAST THE DAY AND I BELIEVE WE'RE PAST THE DAY, BECAUSE THIS IS IN FLUENT DISTRICT, MANY THAT ARE NOT SO AFFLUENT.
AND SO THEY STRUGGLE FROM YEAR TO YEAR.
WE TRIED TO CREATE A WAY FOR INSTITUTIONS WHEN, BACK TO THE POINT OF PERVERSE KINDS OF THINGS, NOT TO L USE IT OR LE IT IN MENTALITY, BUT THE ABILITY TO RETAIN THAT WITH REVEM INVESTMENTS.
THE APPROPRIATIONS, THE FUND BALANCESS, REINVESTMENTS IN THE INSTITUTION.
WHAT DOES THAT MEAN? NEVER BEFORE IN THE NATION'S HISTORY HAS THE VALUE F A POST SECONDARY CREDENTIAL CALLED INTO QUESTION.
IT COMES FROM MANY DIFFERENT ANGLES.
ABOUT SPENDING A LOT OF MONEY WITH LOW COMPLETION RATE.
THE COMPLEXITY OF SERVING STUDENT AND SO MANY CHALLENGES, IT GETS IN THE WAY OF EDUCATION.
THE NOTION AROUND STUDENT SUCCESS IS MAKING A STRATEGIC INVESTMENT.
SO IF YOU ASSUME YOU ARE NOT GOING TO HAVE NEW MONEY, YOU HAVE TO THINK ABOUT HOW DO YOU USE THE MONEY YOU HAVE?
[01:10:03]
HOW DO YOU REPURPOSE THE MONEY YOU HAVE NECESSARILY? ONE WAY TO DO THAT IS THE NOTION OF IF YOU HAVE ACADEMIC PROGRAMS OF WHICH THERE IS NO DEMAND R LOW YIELD OR NEGATIVE ROI, PULL THE MONEY BACK.IF YOU HAVE MONEY AT THE END OF THE YEAR AND YOU HIT GOALS BUT NOT THE REMAINDER, REPURPOSE MONEY INTO THAT.
MAYBE IN STUDENT SUCCESS YOU NEED CAREER OR SUCCESS COACHES AND MAKE INVESTMENTS IN THOSE THINGS.
THE WHOLE NOTION OF SOME CAMPUS AUTONOMY, FOR THAT COMMUNITY AND THAT LOCATION, THEY PROBABLY KNOW BEST WHAT THEIR CHALLENGES ARE WITH STUDENTS, COMMUNITY AND BUSINESS AND INDUSTRY.
WHY NOT CREATE A LITTLE INCENTIVE AROUND LETTING THEM RETAIN THOSE MONIES AND LET THEM REINVEST THOSE MONIES THAT MAKE A DIFFERENCE IN THAT OMMUNITY.
ALL THE COMMUNITIES ARE NOT THE SAME, I DON'T THINK.
I THINK THERE IS UNIQUENESS TO EVERY SINGLE ONE OF THE COMMUNITIES.
WHICH BEGS THE QUESTION ABOUT FACILITIES, WHICH I'LL TALK ABOUT.
I DON'T KNOW IF I'M MAKING SENSE.
>> CHAIR D. FLORES: SO MUCH SO WE ALREADY DO IT.
EACH CAMPUS RETAINS THEIR OWN FUND BALANCE.
>> CHAIR D. FLORES: BUT WITH CAVEATS. ONE IS A ONE-TIME EXPENDITURE.
IT'S THAT WAY IN OUR PERFORMANCE FUNDING AS WELL.
>> DO YOU THINK PERFORMANCE FUNDING AT THE CAMPUS LEVEL MAKES A DIFFERENCE AND CHANGES BEHAVIOR AND CAUSES A MORE EFFECTIVE ALLOCATION OF RESOURCES?
>> THE HOLE BODY OF LEGISLATURE, UNC IS GETTING DEEP INTO THAT.
WE'VE BEEN DOING IT AT COMMUNITY COLLEGES FOR 20 YEARS BECAUSE WE'RE NOT AFRAID.
THEY ARE EXPLORING THAT WHOLE NOTION OF PERFORMANCE FUNDING AND DOES IT DRIVE BEHAVIOR.
THE LEGISLATURE SAYS THE AMOUNT HAS TO BE MEANINGFUL.
NOW, MEANINGFUL IS NOT 80% OF YOUR BUDGET'S PERFORMANCE BASE AND 20% IS OPERATIONAL AND THAT SORT OF THING.
NEITHER IS IT 1 TO 2% WHERE IT'S NOT ENOUGH.
YOU START TALKING ABOUT WHAT IS MEANINGFUL, THE 5, 10% AROUND INCENTIVE PERFORMANCE FUNDING.
IF A PRESIDENT AND THEIR TEAM SEE THE NEXUS BETWEEN STUDENT OUTCOMES AND THOSE INVESTMENTS, IT ECOMES MEANINGFUL.
AND THEY CAN DRIVE BEHAVIOR WITH THAT.
I ALSO FEEL LIKE, AND THIS IS A LITTLE OFF SCRIPT FROM MY EXPERIENCE, MAYBE YOU WANT THAT TOO.
I ALSO FEEL HERE OUGHT TO BE A REWARD INCENTIVE FOR THOSE WHO MADE IT HAPPEN.
NOT JUST THE FACULTY OR STAFF, I MEAN BOTH.
IT TAKES EVERYBODY IN THE CAMPUS TO MAKE IT SUCCESSFUL.
>> CHANCELLOR MAY: IN TERMS OF COMPENSATION.
>> YEAH, NOT RECURRING BONUS, WE HAVE TRIED SOME OF THAT IN NORTH CAROLINA.
IT'S SOMETHING TO, YOU HAVE TO MAKE YOUR OWN CHOICES ABOUT.
WITH THAT DRIVE BEHAVIOR, THAT'S A THOUGHT.
>> CHAIR D. FLORES: THAT'S AN INTERESTING QUESTION ABOUT THE PERFORMANCE FUNDING.
BECAUSE CURRENTLY, WITHOUT QUESTION, THE COLLEGE HAVE BEEN ABLE TO KEEP THE FUND BALANCE, CORRECT? WHAT IF WE TOOK THE FUND BALANCE AND SAID, IF YOU ARE MEETING THE METRICS IN THESE AREAS, THEN YOU GET ALL OF YOUR FUND BALANCE BACK.
IF YOU ARE NOT, IF YOU ARE MEETING IT 20%, 30%, ET CETERA, THAT MIGHT BE A HUGE INCENTIVE PLUS MAYBE A BONUS THING.
BEGIN TO THINK DIFFERENTLY ABOUT THAT.
>> CHAIR D. FLORES: INSTEAD OF THEM AUTOMATICALLY KEEPING IT.
IF YOU ARE OT PERFORMING, YOU ARE NOT KEEPING IT.
>> CHANCELLOR MAY: THAT WOULD BE A PERFECT SEGUE TO DO SOMETHING LIKE THAT.
COMING FROM A 40-YEAR SALES BACKGROUND.
PERFORMANCE FUNDING IS A VERY IMPORTANT ASPECT OF THAT.
AND I THINK WE CAN DEVELOP METRICS THAT WOULD REINFORCE THE TYPES OF SUCCESSES THAT WE'RE LOOKING OR WITH SOME OF THAT.
>> CHANCELLOR MAY: NOT JUST AT THE CAMPUS LEVEL.
>> BEHAVIORS AND SUPPORT THE NETWORK OBJECTIVES.
>> CHAIR D. FLORES: WE MIGHT HAVE COME UP WITH A NEW INNOVATION SPECIFIC TO DCCCD WHO KNOWS.
>> I WOULD SAY, MADAM CHAIR, IF YOU GO TO THE NORTH CAROLINA COMMUNITY COLLEGE WEBSITE YOU WILL SEE THERE ARE UNIFORM
[01:15:01]
METRICS ACROSS THE ENTIRE SYSTEM.THERE ARE BENCHMARK TO HIT AND THEY ARE NOT ALL OR NOTHING.
THERE ARE PROGRESSIVE AND THE HIGHER YOU HIT THE FUNDING IS CENTRALIZED AT THE SYSTEM OFFICE LEVEL, NOT SAYING YOU SHOULD DO THIS.
LORD, WE MADE ENOUGH MISTAKESS FROM TIME TO TIME.
BUT THE FUNDING IS CENTRALIZED AT THE SYSTEM OFFICE LEVEL.
ALLOCATED TO COLLEGES ON THE FRONT END, SOME OF IT, NOT ALL.
IF YOU HIT YOUR METRIC 80%, YOU MIGHT HIT THE FLOOR.
100% OF YOUR METRIC, THEN YOU GET SOME OF THE LEFTOVERS, THE OTHERS DIDN'T GET THE METRIC FUNDING FOR.
YOU DETERMINE YOUR OWN DESTINY.
AS YOU HIT THAT IF YOU GO ABOVE 100%, YOU GET LEFTOVERS THAT OTHER SCHOOLS CAN'T ACCESS BECAUSE THEY DIDN'T HIT THE METRICS.
>> CHAIR D. FLORES: HOW IS THAT WORKING?
>> I'VE BEEN RETIRED FOR SEVEN YEARS.
I THINK IT -- I THINK IT WORKS AS WELL AS IT CAN.
I THINK THERE IS A CORRELATION BETWEEN LEADERSHIP AND SUCCESSFUL OUTCOMES.
AND I THINK IN SOME OF THE SPOTS IF YOU LOOKED AT THE LEADERSHIP THAT MIGHT BE A POOR REFLECTION OF THE OUTCOMES.
>> CHAIR D. FLORES: COULD ANY OF IT BE SYSTEMIC IN NATURE? HERE WE LEARNED WHERE OUR ERP AND DIFFERENT THINGS ARE REALLY BARRIERS TO --
>> CHAIR D. FLORES: COULD SOME IN THE NORTH CAROLINA SYSTEM BE SYSTEMIC.
>> HERE HAS BEEN MOVEMENT AND WORK OF FOOT, THE SINGLE PIECE OF THE ERP IS THE STUDENT SUCCESS MODEL, LACKING ACROSS THE COUNTRY.
THERE ARE FOLKS LIKE WORK DAY AND OTHERS WORKING ON THAT.
WORK DAY PROBABLY HAS THE BEST IN CLASS ON THE STUDENT SIDE ON THE ERP.
I DON'T THINK PRESIDENTS HAVE HAD GOOD DATA FEEDBACK AND T ANE ANALYTICS THAT GO ALONG THAT.
>> THERE ARE SEVEN METICS THE COORDINATING BOARD SETS.
THE LEGISLATURE GOT INVOLVED IN SETTING THE WEIGHT OF THE PERFORMANCE POINTS THAT ARE THERE.
THAT SAID, BUT THEN OUR BOARD ADDS SUBSTANTIAL AMOUNT OF DOLLARS TO THAT.
AND ADDITIONAL METRIC, WHICH ARE WAGES ON TOP OF THE USUAL 7.
I DIDN'T KNOW WE WERE GOING TO GO THERE BUT I'M GLAD WE DID.
SIX SUGGESTIONS ABOUT MONITORING FISCAL HEALTH.
ONE, THE MOST IMPORTANT, BE A THOUGHT PARTNER WITH YOUR PRESIDENT AND CFO, BE A THOUGHT PARTNER IN BUDGETING AND EXPENDING MONEY.
I TOLD MS. MELENA, I HAVE ALL THESE NOTES I HAVE.
I'M WELCOME TO SHARE MY SCRIPT WITH JUST YOU.
MR. WILLIAMS, YOU ASKED, WAS THIS TAILORED FOR YOU, I WROTE THIS FOR YOU.
THE WHOLE WEEK I'M AT A COLLEGE.
BUT IF THIS WOULD BE HELPFUL, DON'T STOP PAYING ATTENTION BECAUSE I'M WILLING TO DO THAT.
BEFOCUSED ON YOUR STRATEGIC PRIORITIES.
YOU WENT THROUGH TIME AND TROUBLE TO SET STRATEGIC PRIORITIES.
YOUR FUNDING SHOULD FOLLOW YOUR STRATEGIC PRIORITIES.
TWO, CONTINUALLY SK YOURSELF WHETHER YOU ARE MAKING AN ACADEMIC DECISION OR A SERVICE OR FACILITY DECISION.
CONTINUALLY ASK YOURSELF, QUOTE, DOES THIS EXPENDITURE SERVE THE BEST INTEREST OF STUDENTS, EMPLOYERS IN THE COMMUNITY.
THE NAME COMMUNITY IS IN YOUR NAME.
THE DALLAS COUNTY COMMUNITY COLLEGE DISTRICT.
COMMUNITY HAS AN INTENTIONAL MEANING.
DOES WHAT YOU ARE SPENDING AND APPROVING MAKE SENSE FOR STUDENTS, EMPLOYERS, THAT'S WHERE YOU ARE GOING TO SEND YOUR FOLKS OR ONTO COLLEGE TRANSFER PROGRAMS, ARTICULATION AGREEMENTS, AND THE COMMUNITY.
[01:20:03]
THREE, MONITOR ALL ASPECTS OF YOUR BUSINESS MODEL.EVERY COLLEGE HAS A BUSINESS MODEL.
REVENUES, TUITION, EFFICIENCIES, COLLABORATIVE OPPORTUNITIES, PUBLIC/PRIVATE, AND FACILITIES.
EVERYONE HAS A BUSINESS MODEL AROUND THOSE THINGS, REVENUES, EXPENDITURES, EFFICIENCIES, OPPORTUNITIES AND FACILITATE FA.
FOUR, WE TALKED ABOUT THIS EARLIER.
CONTINUING TO ASK FOR PERIODIC REPORTS AND DATA ANALYTICS.
I'M CONFIDENT JOHN AND HIS PEERS GIVE YOU THIS.
THAT CORRELATE MONEY AND OUTCOMES.
YOU NEED TO SEE HOW MONEY IS ACCOMPLISHING GOALS AND OBJECTIVES ALWAYS.
FIVE, AND JOHN MENTIONED THIS TO ME.
FIVE, ASK OUR ADMINISTRATION TO PROVIDE A RISK ASSESSMENT PERIODICALLY ON RESOURCES, COMMITMENTS, EXPOSURES, AND TOLERANCE LEVELS.
>> CHAIR D. FLORES: WHAT DO YOU MEAN BY TOLERANCE LEVELS?
>> WHAT KIND OF RISK ARE YOU WILLING TO TOLERATE IN A NEW OPPORTUNITY THAT YOU HAVE BEEN NOT EXPLORED BEFORE.
AND THAT'S A TWO-EDGE -- DON'T BE SO CONCERTED ABOUT MISSED OPPORTUNITIES, OR SO LIBERAL THAT YOU BECOME AN ENRON.
DON'T MISS THOSE OPPORTUNITIES.
AND FINALLY, AND THIS IS WHAT I TRIED TO TEACH MEMBERS OF THE GENERAL ASSEMBLY, HOW DO YOU TEACH LEGISLATURES THINGS, BUT I TRY.
TAKE A LONG-TERM VIEW OF BUDGETS.
BUDGETBUDGETS ARE STRATEGIC INVESTMENTS.
TAKE A LONGER-TERM VIEW OF THE OUTCOMES THAN JUST NE YEAR.
DOES THAT MAKE SENSE? BEFORE I DO RAINY DAY FUND, DO YOU WANT TO TAKE A BREAK, ADAM CHAIR? THESE MEMBERS HAVE BEEN HERE A LONG TIME.
>> THEY GAVE ME MINE AT ASHVILLE AT THE LAST MEETING.
I TRANSITIONED TO THE NEW CHAIR THURSDAY, YES, MA'AM.
>> CHAIR D. FLORES: I'LL NOT BE AUTHORITARIAN.
>> I NEVER MISSED BECAUSE THEY WOULD PUT YOU IN CHARGE OF A COMMITTEE.
>> ALL THE CHANCELLORS ARE IN THEIR 80S THAT HE'S HAVING TO REPLACE.
I WANT TO TALK ABOUT THAT A LITTLE BIT. I THINK THERE MAY BE OPPORTUNITIES HERE FOR YOU.
[01:25:01]
ENHISTORY IN 1991, BEFORE THE GREAT -- OTHER THAN THE GREAT DEPRESSION, THE GENERAL ASSEMBLY ENACTED THE SAVINGS RESERVE ACCOUNT, KNOWN AS THE RAINY DAY FUND.THE INK WAS BARELY DRY WHEN THEY REALIZED THEY FORGOT TO DESIGNATE A PROPER LOCATION FOR THE FUNDS, HOW THEY DEFINE UNRESERVED CREDIT BALANCE AND FOR WHAT PURPOSE THE FUNDS MIGHT BE USED.
ALL I DID WAS CREATE THE FUND AND PUT NOTHING ELSE AROUND.
THEY OMITTED T OAMENDED THE BIL.
OVER THE PAST 28 YEARS, IT INCREASED FROM 5% OF THE PRIOR YEAR'S GENERAL FUND OPERATING BUDGET TO 7.5%.
THEY HAVE INCREASED THE PERCENTAGE GOING INTO THE BUDGET.
>> IS THIS STATE GOVERNMENT AS A WHOLE?
>> STATE, SO I'M EXTRAPOLATING MY EXPERIENCE TO YOU.
I BELIEVE THERE IS RELEVANCE HERE.
THE CURRENT FUND BALANCE IN NORTH CAROLINA OF $24 BILLION STATE BUDGET, WHICH PROBABLY PAILS IN COMPARISON TO TEXAS IS ABOUT 1.8 BILLION, ENOUGH TO PAY OFF YOUR BONDS.
BUT NOTHING IN STATE LAW PREVENTS THE GENERAL ASSEMBLY FROM TRANSFERRING MORE MONEY INTO THE SWEEP AT THE END OF THE YEAR INTO THE RAINY DAY FUND, THE 7.5%, REPRESENTS A FLOOR.
FURTHER, THE GENERAL ASSEMBLY ANNUAL EVALUATE THE FUND AND ADEQUACY ASIT RELATES TO THE STATE OPERATING BUDGET.
HERE ARE FOUR THINGS THE FUNDS CAN BE USED FOR, IT TAKES TWO-THIRDS VOTE OF THE HOUSE AND SENATE.
THE PRESIDENT AND CFO TALK ABOUT THIS AND COMMUNICATE THAT TO YOU.
IN NORTH CAROLINA THERE ARE FOUR FUNDS THE FUND CAN BE USED FOR.
TO COVER GENERAL FUND REVENUE FROM YEAR TO YEAR.
WHEN YOU DON'T WANT TO AISE TUITION, IF YOU HAVE A SHORT FALL FROM ONE FISCAL TO THE NEXT YOU CAN TAKE SOME OF THE RAINY Y DAY FUND AND PLUG IT.
USE BUT YOU CAN.T IS THE BEST- SECOND, TO COVER THE DIFFERENCE BETWEEN BUDGET, REVENUE AND EXPENDITURES.
IN NORTH CAROLINA, THE CONSTITUTION REQUIRES US TO HAVE A BALANCED BUDGET.
CONSTITUTION SAYS THOU SHALL HAVE A BALANCED BUDGET AT THE CLOSE OF A FISCAL PERIOD, WHICH MEANS A FISCAL YEAR.
IF REVENUES ARE DROPPING BELOW EXPENDITURES YOU CAN SLOW SPENDING.
IF IT WAS A HUGE DEFICIT, YOU CAN TAKE MONEY O O OUT OF THE RY DAY FUND AND PLUG THE CURRENT YEAR SHORT FALL.
MADAM CHAIR, YOU HAVE A QUESTION?
>> CHAIR D. FLORES: YOU WENT ON, THE POINT I WAS GOING TO ASK A QUESTION.
HOWEVER, BASICALLY WE WORK WITHIN BUDGET, THERE IS NO IFS, ANDS OR BUTS.
BOTH AT THE DISTRICT LEVEL AND AT THE COLLEGE LEVEL.
I DON'T THINK WE'VE HAD A SCENARIO WHERE THERE IS A DROP IN REVENUE AND WE'VE HAD TO GO INTO THE RAINY DAY FUND DURING THE CURRENT FISCAL YEAR.
>> CHANCELLOR MAY: NO, I THINK COLLEGES MAY HAVE BEEN CLOSED ONCE OR TWICE.
BUT DISTRICTWIDE, NOT EVEN CLOSE.
>> CHAIR D. FLORES: EVEN A COUPLE OF COLLEGES HAVE GOTTEN INTO THAT POSITION, IT'S LOOKED VERY NEGATIVELY.
>> CHANCELLOR MAY: WE SOLVE IT.
>> THE THIRD USE IS COST IMPOSED BY A COURT ORDER OR ADMINISTRATIVE OFFICER OF THE COURT, MEANING IF A JUDGE RULES, YOU GOT TO SETTLE SOMETHING, RAINY DAY FUND OULD BE USED SINCE IT'S A NON-RECUER EXPENSE.
THE FOURTH IS AND THIS PROBABLY HAS RELEVANCE, I WOULD GUESS IN OTHER PLACES IN YOUR STATE, TO PROVIDE RELIEF AND ASSISTANCE FROM THE EFFECTS ON AN EMERGENCY.
NOW AN EMERGENCY IS DEFINED IN NORTH CAROLINA STATUTE AS WEATHER, LIKE A HURRICANE.
WE GET A LOT OF THOSE LIKE IN TEXAS, ALABAMA, GEORGIA, FLORIDA, AND LOUISIANA PARTICULARLY.
[01:30:01]
CYBERINCIDENT.A CATASTROPHIC CYBERINCIDENT OR A NATURAL DISASTER.
THERE ARE ONLY OUR USES OF THE RAINY DAY FUND IN THE STATE.
THAT SAID, THIS IS KENNON SPEAKING HAVING BEEN A CFO AND IN GOVERNING FOR A LONG TIME, WHY THE BALANCE HAS GROWN OVER THE PAST 28 YEARS, WHY WE AS A STATE DIDN'T USE THAT STRATEGIC RESERVE FOR NONRECURRING INVESTMENTS.
I THINK THE STATE WOULD HAVE BEEN PRUDENT ALONG THE WAY, AND I'LL GIVE A COUPLE OF EXAMPLES.
WE HAVE GROWN SO RAPIDLY WE'RE CHOKING OURSELVES FOR LACK OF INFRASTRUCTURE.
A BIG ONE IS INFORMATION TECHNOLOGY ENHANCEMENTS.
WE PUT AN ERP IN PLACE IN NORTH CAROLINA WHEN I WAS A BRAND-NEW CFO.
WE BEGAN IN 2000 AND FINISHED IN 2008.
IT'S THE FIRST TIME IT'S BEEN DONE FOR A WHOLE STATE SYSTEM IN U.S. HISTORY.
THE ESTIMATES TO REPLACE THAT SYSTEM THAT WE PUT IN PLACE FOR $100 MILLION IN 2,000, IS ABOUT $300 MILLION.
I THINK AS WE TALKED EARLIER ABOUT ERP'S, THEY CAN BE A GREAT BUSINESS TOOL OR A GREAT BARRIER TO CONDUCTING BUSINESS DEPENDING ON HOW YOU SEE IT.
WE GOT THAT PROBLEM ALL ACROSS COMMUNITY COLLEGE SYSTEM IN THE STATE AND OTHER BRANCHES OF GOVERNMENT, DEPARTMENT OF TRANSPORTATION.
I ONDER WHY WE DIDN'T USE MONEY OR PILOT PROGRAMS THAT HAD SCALABILITY.
I DON'T KNOW WHY THE GENERAL ASSEMBLY HAS NOT THOUGHT ABOUT STATEWIDE INITIATIVES TO FUND NON-REOCCURRING EVEN IN TIGHT YEARS. IT SEEMS TO ME YOU PILOT THINGS WHEN BUDGETS ARE TIGHT.
IF THEY HAVE SCALABILITY, YOU DO IT WHEN THEY HAVE MONEY.
YOU DON'T WHEN THEY DON'T HAVE MONEY.
YOU OUGHT TO BE IN A POSITION TO SCALE IT WHEN YOU HAVE IT.
>> WHAT CRITERIA SHOULD A BOARD USE IN EVALUATING WHETHER A PROJECT SHOULD BE FINANCED THROUGH THE RAINY DAY FUND AS OPPOSED TO CAPITALIZED IN A BOND PROGRAM?
>> ARE YOU GOING TO BE HERE THIS AFTERNOON TOO?
>> WELL, I WILL SAY, I WILL HIT THAT POINT NOW AND MORE LATER.
YOU KNOW, WHEN YOU USE YOUR OWN, IT'S LIKE MY LATE FATHER SAID ABOUT A MORTGAGE AND YOUR OWN CASH.
IF YOU MAKE MORE MONEY INVESTING YOUR OWN CASH, USE SOMEONE ELSE'S MONEY TO MORTGAGE.
IF YOU ARE GOING TO BARROW AT A HIGH RATE AND YOU HAVE CASH, BUY IT DOWN TO THE POINT IT MAKES IT REASONABLE.
I WOULD SAY TO YOU THAT IF YOU ARE SITTING ON A LOT OF CASH, A LOT OF RESERVE, WHETHER IT'S RAINY DAY FUND, WHETHER IT'S FUND BALANCE, WHATEVER YOU HAVE, AND YOU CAN DEPAY THE COST OF MONEY, DEFRAUDATION TO ME, IT'S A PRUDENT INVESTMENT.
MAYBE YOU CASH FLOW TO JUMP START AND DEFER THE BORROWING FOR A BIT.
I'M SHARING THAT WITH COMMUNITY COLLEGES WHO CAN'T TECHNICALLY BARROW MONEY, ON THE P3 SIDE.
YOU LOOK AT THE MONEY FROM A FINANCIAL PERSPECTIVE, IF YOU CAN DEFRAY ANY COST OF MONEY, DO IT AS LONG AS YOU POSSIBLY CAN.
DON'T DO IT BY PUTTING YOURSELF AT RISK.
I'M GOING TO -- BECAUSE I THINK THAT I LOOKED AT YOUR CAFR, YOUR INVESTMENTS, YOUR RAINY DAY FUND, FUND BALANCE, IT WOULD SEEM TO ME YOU MIGHT WANT TO THINK ABOUT DELAYING THE ISSUANCE OF BONDS AND GETTING THINGS STARTED WITH YOUR OWN CASH.
HONESTLY, AND I'LL GO DEEP WHEN WE TALK ABOUT FACILITIES AND BONDS, BUT HONESTLY, YOU ARE GETTING TO A GREAT PLACE WITH YOUR FACILITY MASTER PLANS, BOTH CAMPUS BASED AND DISTRICTWIDE.
AND IT TAKES TIME UPFRONT, ADVANCED PLANNING, DRAWINGS, SCHEMATICSES, DESIGN DRAWINGS, SELECTION OF ARCHITECTURES.
THERE IS A COST OF DOING THAT.
SOMETIMES YOU CAN NOT BARROW THAT COST IF YOU CAN SELF-FINANCE IT AND SAVE YOURSELF MONEY IN THE LONG RUN.
>> IT HAS NOTHING TO DO WITH THE NATURE OF A PROJECT.
ANY CAPITAL NONRECURRING PROJECT IN DECIDING WHETHER TO GO
[01:35:02]
INTERNAL FINANCE THROUGH RAINY DAY OR BARROW MONEY, IT'S TOTALLY COST OF CAPITAL ISSUE?LOOKING AT THE CFO, I THINK IT IS.
>> CHANCELLOR MAY: THAT'S EXACTLY WATT WE'RE LOOKING.
WITH THE IDF COST, WHICH WE USE BOTH OPERATING FUNDS MIC] -- WE'VE BEEN DELAYING ISSUING BONDS WHERE IT'S PRUDENT AS POSSIBLE TO DO.
ANOTHER THING WE TYPICALLY LOOK AT IS WHAT SHOULD BONDS PAY FOR.
THEY TYPICALLY HAVE A LONGER LIFE.
YOU WANT TO GIVE THE BEST RETURN ON INVESTMENTS SO YOU DON'T WANT TO SPEND BOND MONEY ON THINGS THAT ARE ONLY GOING TO LAST --
>> PART OF THE -- SORT OF GETTING INTO THE AFTERNOON SESSION.
BUT I WOULD SAY -- I'LL SAY IT NOW AND YOU WILL HAVE TO HUMOR ME IF I REPEAT IT, 'M 64, MY BRAIN AT 64 S DIFFERENT THAN AT 34.
I NEVER ALLOWED OUR COMMUNITY COLLEGES WHEN I WAS CFO TO USE BONDED INDEBTEDNESS TO EQUIP FACILITIES.
IT MAKES NO SENSE BECAUSE YOU ARE TAKING 20-YEAR INDEBTEDNESS AND BUYING FIVE-YEAR USEFUL LIFE EQUIPMENT.
THEY WERE NOT HAPPY WITH ME BUT WE PUT IN BRICKS AND MORTAR, RATHER THAN DEPRECIATED EQUIPMENT AND IT MADE A DIFFERENCE.
>> SOME STATES YOU HAVE NO CHOICE BECAUSE THE WAY THE BUDGETS ARE SET UP.
THAT'S WHAT THEY EXPECT YOU TO DO.
WHERE YOU CAN MANAGE THAT, THAT'S THE BEST APPROACH.
>> CHAIR D. FLORES: A QUESTION.
RIGHT NOW, THE ONLY CONSIDERATION OF WHETHER FUND BALANCE IS USED OR NOT IS THAT IT IS A ONE-TIME EXPENSE? OR ARE THERE OTHER CONSIDERATIONS?
>> CHANCELLOR MAY: WELL, THERE ARE TWO THINGS I THINK WE'RE TALKING ABOUT.
THE RAINY DAY FUND IS A LONG VIEW OF MAKING SURE WE'VE GOT RESOURCES, PRETTY MUCH FOR EXACTLY THE REASONS OUTLINED.
AND I THINK FOR THAT, IT'S REALLY AS WE'RE THINKING ABOUT IN CONJUNCTION WITH THE BONDS, WHAT IS THE BEST USE OF MONEY?
>> CHAIR D. FLORES: THAT'S ANOTHER QUESTION.
IN MY MIND, WE HAVE FUND BALANCE, THAT IS THE RAINY DAY FUND OR NOT? WE HAVE BOTH?
AND QUITE FRANKLY, WE SEGMENT, WE DO SEPARATE IT OUT.
WHAT IS LONG-TERM AND MORE SHORT-TERM.
>> BECAUSE THE BOARD OR IN POLICY, WE HAVE A 4-6 MONTH, WHICH WE'LL BRING BACK TO THE BOARD AND WE'RE GOING TO LOOK AT SOMETHING IFFERENT.
BECAUSE, I DON'T GET INTO ACCOUNTING ON THIS, BUT IT TALKS ABOUT HOW WE SET THE MONEY ASIDE.
WAND ALSO TALKING ABOUT WHAT ARE TTHE INTENDED USES OF WHAT WE WANT TO DO.
KENNON AS TALKING ABOUT HAVING SOMETHING IN A LOCAL POLICY THAT SAYS THESE ARE TO BE YOUR GUIDING PRINCIPLE, IF YOU WILL, OF HOW TO USE THOSE.
>> IT'S BEEN FUZZY BECAUSE WE TREATED CARRY BOARD AND I GUESS THE ACCOUNTING AUDIT IS WE -- TRACK IT DIFFERENTLY IF THEY ARE ROLLING FOR UNDESIGNATED DOLLARS, WE KNOW THAT'S SPENT.
BUT IT STILL SHOWS UP IN THE BUDGET.
>> TWO LINE ITEMS IN THE BUDGET.
>> WE'VE BEEN TALKING ABOUT THIS.
HOW TO WE CREATE CLARITY AROUND WHAT SHORT-TERM ND LONG-TERM.
>> THE CARRYOVER IS DESIGNATED PROJECTS THAT HAVEN'T BEEN COMPLETED IN THAT YEAR.
>> -- IF WE CAN LAY WITH THIS FOR A SECOND, IF WE MAY.
I THINK THERE IS THE NOTION OF IN CAPITAL PROJECTS, THEY DON'T BEGIN AND END WITH NICE CLEAN FISCAL YEARS.
IN THE CAPITAL FUND, CARRY THAT MONEY FORWARD.
UNTIL YOU DECIDE WHAT DO WE DO NOW IF YOU HAVE A BALANCE.
LET'S THINK ABOUT THAT CAPITAL SIDE.
IN YOUR OPERATING BUDGET, INCOMBERRANCES.
YOU HAVE TO PAY THAT EQUIPMENT AND BILLS OFF.
[01:40:03]
I'M TALKING ABOUT HE UNREDISTRICTED, UNDESIGNATED PIECES OF MONEY. YOU HAVE A GOOD AMOUNT OF MONEY.>> THAT'S WHAT WE'RE TALKING ABOUT.
>> LIKE LOUISIANA, WE WOULD HAVE TO STOP ALL EXPENDITURES AT THE END OF APRIL TO CLOSE OUT THE BOOKS BY JUNE.
ANY PURCHASING WHATSOEVER FOR A COUPLE OF MONTHS.
AND WE WEREN'T ALLOWED TO CARRY ANYTHING OVER.
HERE WE CAN MANAGE THE BUDGET MUCH BETTER.
>> IN HAVING RESERVES, RAINY DAY FUND AND OTHERS, LOWERS THE COST OF CAPITAL AND BOND MARKET.
BECAUSE OF THE -- LET ME ASK YOU THIS, THE STATUTORY CONDITIONS, UNDER WHICH THE RAINY DAY FUND CAN BE SPENT, DO YOU FIND THE COMMUNITY COLLEGES HAVE A PREAGREED SET OF CRITERION, I DON'T THINK WE HAVE THAT, DO WE? WE DON'T HAVE A BOARD POLICY SAYING THINGS LIKE, HEY, WE'RE NOT GOING TO SPEND BOND MONEY ON ASSETS THAT AVE A USEFUL LIFE OF LESS THAN 20 YEARS.
I MEAN, THIS SEEMS LIKE THERE IS A SERIES OF FINANCIAL PARAMETERS, WE OUGHT TO CONSIDER AND AGREE ON.
>> BEAUTIFUL EXAMPLE OF SHARED GOVERNANCE.
I THINK I HEARD, JOHN, CHANCELLOR, SAY THEY WILL BRING GUIDING PRINCIPLES AND POLICIES AROUND THAT.
MAYBE YOU SET POLICY AND THEY OPERATIONALIZE IT THROUGH THE ADMINISTRATIVE PIECE, THAT'S HOW IT TYPICALLY WORKS.
I MEAN, THAT 4 TO 6 MONTHS, EXCUSE ME.
WE HAVE SOMETHING IN NORTH CAROLINA CALLED A LOCAL --
>> I DON'T THINK IT'S A GOOD USE OF OUR MONEY.
>> I TOTALLY, THAT'S WHERE I WAS GOING.
THAT'S EXACTLY, IN NORTH CAROLINA, THE LOCAL GOVERNING COMMISSION SAYS GRACE OVERALL THE LOCAL GOVERNMENTS IN NORTH CAROLINA.
THAT'S A RELIC, A DINOSAUR FROM THE GREAT DEPRESSION WHERE CITIES AND COUNTIES WENT BANKRUPT IN NORTH CAROLINA.
NOW ALL THE FISCAL RESPONSIBILITIES REPORTING THROUGH THE STATE TREASURER.
I THINK THE CHANCELLOR IS EXACTLY RIGHT.
I THINK JOHN PROBABLY WOULD AGREE.
I DON'T WANT TO PUT WORDS IN HIS MOUTH BUT IN NORTH CAROLINA.
>> A 6 TO 8% FUND BALANCE IS RECOMMENDED.
THOSE THAT CARRY SIX MONTHS OF FUND BALANCE OR RESERVE, THE LOCAL GOVERNMENT COMMISSION WOULD SAY, WHAT ARE YOU THINKING? THAT'S NOT THE HIGHEST AND BEST USE OF THE MONEY.
IT CAN BE PERHAPS JUMP STARTING PROJECTS OR BUYING EQUIPMENT.
WHATEVER YOU DETERMINE TO BE GOOD NEEDS.
THAT'S WHERE YOUR CHANCELLOR AND CFO BRING FORWARD RECOMMENDED POLICY IDEAS AND AUTHORIZE EXPENDITURES.
AND THEN YOU DECIDE AND THEY ADMINISTER.
>> I THINK IT'S HEALTHY TO HAVE A SET OF FINANCIAL PARAMETERS AROUND USE OF RETAINING FUNDS.
>> THE WAY I THINK ABOUT THE RAINY DAY FUND, WE HAVEN'T TOUCHED IT.
BUT WE HAVE BEEN SPENDING -- AMOUNTS ON EXEMPTIONS, ALL OUR GROWTH IN TAV, WHILE KEEPING THE TAX RATE CONSTANT.
>> WE HAVE TO HAVE THE DEBATE.
>> YOU CAN'T SEPARATE -- MUST HAVE.
>> IT DEPENDS ON WHAT YOU WANT TO PROTECT.
WE'VE GONE ABOVE AND BEYOND PROTECTING THE TUITION.
WHEN WE SEE IT FALL, THE PRESSURE WILL BE ONTO RAISE TUITION SO A RAINY DAY FUND CAN HELP OUT THOSE THINGS.
>> CHAIR D. FLORES: IT'S 12:00.
WHERE DO WE WANT TO GO? DO WE WANT TO BREAK FOR LUNCH OR DO YOU HAVE A GOOD BIT TO COVER? I'M ASKING YOU?
>> HONESTLY, I THINK WE'RE AT A GOOD STOPPING POINT.
[01:45:03]
AROUND RAINY DAY FUND AS A GOOD SHARED GOVERNANCE OPPORTUNITY FOR THE CHANCELLOR AND THE CFO AND BOARD TO PUT PARAMETERS AROUND THAT AND THINK ABOUT HOW YOU WOULD USE THOSE FUNDS.I THINK THAT'S A GOOD STOPPING POINT TO LET YOUR FURTHER THE WORK.
>> D. ZIMMERMANN: IN SOME CASES DON'T WE USE THE RAINY DAY FUND FOR THE BOND BACKING?
>> IT'S REALLY RESERVED FOR BOND RATING.
>> VICE CHAIR W. JAMESON: IT HAS HELPED US IN THE PAST.
BUT IF YOU COMPARE US TO OTHER PEOPLE WHO BARROW AT THE SAME LEVELS WE BARROW AT, WE STILL HAVE A LOT MORE THAN I WOULDLD Y IT NECESSARY.
WE'VE BEEN ASKED BY THE RATING AGENCY, YOU ARE NOT EMPLOYING YOUR MONEY TO BEST USES SITTING ON THAT MUCH MONEY.
A RATING AGENCIES ARE REALLY SMART PEOPLE.
AND THEY LOOK AT YOUR WHOLE FINANCIAL PICTURE AND THEY KNOW IF YOU ARE DOING THINGS RIGHT AND IF YOU ARE MOVING YOUR CAPITAL THE WAY THAT OU ARE SUPPOSED TO BE MOVING IT.
AND QUITE FRANKLY, WE'RE NOT INVESTING APPROPRIATELY TO GET THE RETURNS WE WANT TO HAVE.
THIS IS NOT A FOR-PROFIT ORGANIZATION.
BUT WE HAVE TO THINK LIKE THAT THAT WE'RE INVESTING OUR MONEY APPROPRIATELY.
>> CHAIR D. FLORES: WE'RE BREAKING FOR LUNCH.
>> CHAIR D. FLORES: WE'RE READY TO CONTINUE UNTIL 3: 30, IS TATH CORRECT? WE HAVE AN AUDIT COMMITTEE MEETING AT 3:30.
WE CAN CALL A BREAK IN BETWEEN.
>> I THINK THAT WOULD BE A GOOD IDEA.
MADAM CHAIR, MEMBERS OF THE BOARD, WE'RE GOING TO SPEND TIME NOW TALKING ABOUT FACILITIES AND BONDS.
THE WAY WE'LL DO THAT I'LL TALK ABOUT THE L T THE LESSONS WE LEN NORTH CAROLINA.
I SURE LEARNED LOT WHEN WE PASSED A BIG BOND IN OUR STATE.
THE LINKAGE BETWEEN TRAINS AND FACILITIES.
WE'LL P3, WHAT PARTNERSHIPS MAKE SENSE.
WE HIT A LITTLE BIT THIS MORNING.
CONTEXT OF THE RAINY DAY FUND.
>> WILMINGTON, NORTH CAROLINA.
ONLY IN THE LAST THREE YEARS, I GREW UP IN DURHAM, MY WIFE IN CARRY.
WE SPENT A LOT OF OUR LIFE IN THE CHAPEL HILL AREA, WHICH HAS GROWN LIKE DALLAS, UNBELIEVABLE.
AND BUILT A HOUSE IN COASTAL NORTH CAROLINA THREE YEARS AGO AND HAPPILY EVER AFTER SO TO SPEAK.
>> D. ZIMMERMANN: IN YOUR FAKE RETIREMENT.
>> ADDED TWO HOURS TO MY RETIREMENT AND EVERYTHING I DO.
LET'S JUMP IN WITH SOME OF THE LESSONS LEARNED.
I WANT TO GIVE YOU A LITTLE BIT OF BACKGROUND.
AGAIN, NOT THAT NORTH CAROLINA HAS THE MARKET CORNERED ON ANYTHING IN THE WHOLE WORLD.
BUT I WOULD LIKE TO SHARE EXPERIENCES AND WHAT WE LEARNED THAT MIGHT BE BENEFICIAL TO YOU OR NOT AS YOU GO FORWARD WITH YOUR $1.1 BILLION.
THE GENERAL ASSEMBLY, MR. JAMESON, A COUPLE OF HUNDRED MILLION HERE, A COUPLE OF MILLION YEAR, PRETTY SOON IT'S REAL MONEY.
IN 1999, WE WRESTLED WITH NEEDS IN THE UNIVERSAL AND COMMUNITY COLLEGE SYSTEM.
I'LL SHARE THE UNIVERSITIES OR STATE ENTITIES, THE COMMUNITIES COLLEGES RE NOT, THEY ARE LIKE LOCAL SCHOOL DISTRICTS.
CHARTERED BY THE GENERAL ASSEMBLY.
CREATURES OF THE STATE BUT NOT STATE ENTITIES.
WE HAD WORSE SITUATIONS IN TERMS OF FACILITIES THAN THE UNC SYSTEM.
THE GOVERNOR AND GENERAL ASSEMBLY, GOVERNOR HUNT AT THE TIME IN THE GENERAL ASSEMBLY, AWARE OF THE IMPORTANT ROLE THAT WE PLAYED, WE IN COMMUNITY COLLEGES AND UNIVERSITY PLAYED IN ECONOMIC VITALITY OF THE STATE.
WORK TOGETHER TO PUT 3.$1 BILLION INITIATIVE ON
[01:50:01]
GENERAL OBLIGATION BOND ON THE BALLOT.REMEMBER, THIS IS 99-2000, THAT'S BEEN 20 YEARS.
WE KNOW WHAT'S HAPPENED IN 20 YEARS WITH CONSTRUCTION, INFLATION AND THAT SORT OF THING.
BECAUSE THE UNC SYSTEM COLLEGES WERE STATE ENTITIES THEY HAD GOOD FACILITY'S PLANS.
THEY REALLY KIND OF KNEW WHERE THEY WANTED TO GO AND THEY WENT TO THE LEGISLATURE AND ROLLED THOSE OUT TO THE LEADERSHIP, HOUSE AND SENATE.
INTERESTING, THE REACTION WAS WELL, IF YOU GET A PASSIVE BOND IN THIS STATE YOU NEED THE COMMUNITY COLLEGES TO HELP YOU.
BECAUSE WE TOUCHED A LOT OF COMMUNITIES IN NORTH CAROLINA.
WE HAVE 100 COUNTIES, A PRESENCE IN ALL 100.
58 COMMUNITY COLLEGES BUT FOOTPRINTS IN ALL WITH UNHUNDRED COUNTIES.
THE GENERAL ASSEMBLY SAYS YOU NEED THE COMMUNITY COLLEGE SYSTEM TO HELP YOU PASS A BOND.
OUR FACILITIES WERE IN POOR SHAPE.
MANY COLLEGES LESS FFLUENT DID NOT HAVE GOOD FACILITY'S PLANS.
OTHER THAN A FEW OF THE LARGER SCHOOLS, WE STRUGGLED WITH THAT.
SO WHEN THE BOND BALLOT WAS PUT BEFORE THE VOTERS IN 2000 IN OUR STATE, OUR PUBLIC UNIVERSITIES HAD ABSOLUTE CLARITY BOTH FROM A RENOVATION PERSPECTIVE AND A NEW CONSTRUCTION PERSPECTIVE.
BECAUSE THEY ARE TWO PIECES THERE.
THAT'S PERHAPS REPURPOSING THE SPACES YOU HAVE, MAKING NEW AND BUILDING THINGS YOU DON'T HAVE THAT YOU NEED, YOU THINK YOU NEED OR FORESEE BOTH.
WE WERE FLAT FOOTED IN COMMUNITY COLLEGES.
I WAS RELATIVELY NEW TO THE SYSTEM CFO JOB.
WE HAD NOT DONE A GOOD JOB OF MAPPING OUT WHAT WE NEEDED TO DO.
IN TERMS F ADVANCED PLANNING, THE STATE BECAUSE THE UNIVERSITIES WERE STATE ENTITIES THEY GOT ADVANCED PLANNING MONEY FROM THE GENERAL ASSEMBLY.
THAT ENABLES YOU TO CONCEIVE WHAT YOU WANT TO BUILD, SCHEMATIC DRAWINGS.
YOU MOVE TO A GOOD SPOT, NOT DESIGN DRAWINGS.
IF YOU HAVE FACILITY PLANS AND ADVANCED MONEY SO WE'RE WELL POSITIONED.
WE WERE NOT IN THAT LACE IN COMMUNITY COLLEGE.
IT WAS BURNING FOR US IN MANY RESPECTS.
WE HAD SUBSTANDARD FACILITIES IN SOME COUNTIES.
FOR US, THE COUNTY COMMISSIONERS AND EXEC EXECUTIVERS AND WE HADO TAXING AUTHORITY BUT THE COUNTIES DID.
OF COURSE THEY HAVE THAT AUTHORITY.
HAVING NEITHER FACILITY PLANS OR ADVANCED PLANNING IN 2000, THERE WAS A THIRD ITEM THAT WAS DIFFICULT DIFFICULT FOR US.
THE UNIVERSITY SYSTEM HAD DOCUMENTED NEEDS OF $7.1 BILLION.
WE ESTIMATED OUR NEEDS TO BE ABOUT, I DID, WORKING TRYING TO GO TOGETHER WITH THE COLLEGE WHAT THEY THOUGHT THEY NEEDED TO RENOVATE AND BUILD, I PREDICTED ABOUT A BILLION AND A HALF.
WHEN HE FINAL BOND REFERENDUM WAS DRAFTED IT WENT TO THE VOTERS, IT WAS A 3.$1 BILLION REFERENDUM, NEVER THAT MUCH IN THE STATE'S HISTORY, NOT EVEN HIGHWAY CONSTRUCTION.
UNIVERSITY WAS GETTING 2.5 BILLION, WE WERE GOING TO GET 600 MILLION.
MARK LANCASTER, SAID WHAT ARE WE GOING TO DO WITH $600 MILLION? $600 MILLION MORE THAN WHAT WE'RE DOING NOW.
WE TAKE IT. WHILE THE UNIVERSITY WOULD GO ON AND SPEND ABOUT 50% OF THEIR MONEY ON RENOVATION AND 50% ON NEW CONSTRUCTION, AND WE RECEIVED 600 MILLION, WE HAD HUGE PIN UP DEMAND.
LACKING GOOD PLANNING PROCESSES.
IT BECAME A CAMPUS BY CAMPUS STRUGGLE TO FIGURE OUT HOW TO TAKE A FINITE AMOUNT OF MONEY AND USE IT.
REMEMBER, WE WERE NOT STATE ENTITIES.
SO THEY CALLED IT A GRANT IN AID.
STATE WAS MAKING A BENEVOLENT BRANTGRANT IN AID.
THE QUESTION IS HOW WE DIVIDED THE PILE.
IF YOU HAVE 600 MILLION, HOW DO YOU DO THAT EQUITABLY? AND OUR STATUTE SAYS, EVERY DOLLAR THE STATE GIVES OUT TO THE STATE BOARD OF COMMUNITY COLLEGES HAS TO BE ALLOCATED EQUITABLY, BY MULTIPLE
[01:55:02]
ALLOCATION FORMULAS AS MANY PLACES DO.WELL, SO ACADEMIC PROGRAMMING AND OTHER SPACE NEED.
GIVEN THE VAST AMOUNT OF NEED AND LIMITED AVAILABILITY, WHERE WOULD YOU THINK THE MAJORITY OF FUNDS WERE SPENT? FACILITIES? WHAT KIND OF FACILITIES? YOU PUT YOUR DOLLAR FIRST IN RENOVATING SOMETHING THAT IS FALLING APART.
THIS IS RHETORICAL BUT I WANT TO PUT IT OUT.
OR PUT YOUR DOLLARS INTO NEW BUILDINGS WHEN YOU MAY NOT GET ANOTHER OPPORTUNITY TO DO THAT FOR A LONG TIME.
HOW DO YOU LEVERAGE YOUR DOLLARS? MEANING IF THE COUNTY IS ULTIMATELY RESPONSIBILITY WHAT KIND OF COUNTY PARTNERSHIPS OR PUBLIC/PRIVATE PARTNERSHIPS SHOULD YOU CONSIDER O LEVERAGE YOUR DOLLARS AND MAKE HAT 600 MILLION GO FURTHER? IT WAS A REAL STRUGGLE FOR US.
THE SMALLER, LESS AFFLUENT LOCATIONS, THE RURAL COLLEGES MOSTLY SPENT THEIR FUNDS ON RENOVATION AND REPAIR.
I HAD A PROVISION STUCK INTO THE LAW THAT SAID, NOTWITHSTANDING CURRENT STATE LAW THAT EVERY DOLLAR OF STATE MONEY HAS TO BE MATCHED ONE FOR ONE, THE POOR DISTRICTS DIDN'T HAVE TO MATCH ANYTHING.
THE WAY TO DO THAT WAS TO GET THEM TO SPEND THEIR MONEY -- GOOD AFTERNOON.
HOW ARE YOU? TO SPEND THEIR MONEY ON RENOVATION AND REPAIR.
AND THEY DIDN'T HAVE TO MATCH.
WHILE THE LARGER COLLEGES MOST PRINCIPLEY BUILT NEW BUILDINGS, IN BETWEEN, THERE WAS A BALANCE.
IN TERMS OF BUILDING BUILDINGS AND HOW TO DEAL WITH SPACES, OUR COLLEGES WERE TORN OVER THE NEEDS FOR STUDENT LEARNING SPACES VERSUS STUDENTS STUDY AND CONVENIENCE SPACES.
WHAT DOES THAT MEAN? WELL, DO YOU BUILD CLASSROOMS, SHOPS, LABS, COMPUTER LABS, THOSE KINDS OF THINGS? DO YOU BUILD OUT THOSE KIND OF SPACES OR STUDENT CENTERS, THE OLD LIBRARIES ARE NOW LEARNING RESOURCE CENTERS, WE DON'T CALL THEM LIBRARIES ANYMORE.
WHAT DO YOU SPEND LIMITED DOLLARS? AND THAT WOULD BECOME A CHALLENGE FOR US OVER TIME TO MAKE GOOD DECISIONS.
FOURTUITOUSLY, A LOT OF CLASSROOMS WERE BUILD AND RENOVATED.
WE WERE ABOUT SIX OR EIGHT YEARS IN DOING ALL OF THAT.
BY VIRTUE OF BUILDING CLASSROOMS HIT US JUST RIGHT FOR THE GREAT RECESSION WHEN WE GREW BY 50,000 WE NEEDED A LOT OF CLASSROOM SPACES.
FORTUNATELY, THAT BEGAN TO WORK ITSELF OUT.
>> WE GREW FROM 200,000 TO 250,000 CREDIT STUDENTS AND NONCREDIT STUDENTS, STATE WIDE, GREW TO 650,000 FROM 500,000.
PEOPLE WERE DISPARATE TO GET SKILLS, RETRAINING, ET CETERA.
AND I THINK THAT HAS APPLICABILITY IN ONE SENSE FOR YOU BECAUSE I'M GOING TO GO DEEPER.
I THINK THAT WE WILL TALK ABOUT YOUR OPPORTUNITY.
BUT I KNOW YOU HAVE GONE THROUGH THE FACILITY PLANNING PROCESS.
YOU HAVE GOOD FACILITY PLANS AND YOU ARE THINKING ABOUT HOW THAT ROSE TO THE SYSTEM LEVEL AND MEETS YOUR STRATEGIC PRIORITIES.
I GUESS I WOULD SAY YOU ARE AHEAD OF THE YIELD CURVE FROM WHERE WE WERE.
BUT I THINK YOU NEED TO BE COGNIZANT OF MONEY USED FOR RENOVATION REPAIR AND NEW FACILITIES.
DOES THAT MAKE SENSE? HOW YOU THINK STRATEGICALLY ABOUT BOTH OF THOSE CHALLENGES, THAT'S WHERE WE WERE.
AND WE RENOVATED A LOT OF SPACE AND LEVERAGED A LOT OF MONEY FROM COUNTIES AND PARTNERSHIPS.
WE BUILT A LOT OF CLASSROOMS AND INSTRUCTIONAL SPACES.
I'M NOT SURE IT MAKES SENSE TO BUILD COMPUTER LABS ANYMORE.
THEY END TO BE TO LEAST UTILIZED SPACES BECAUSE STUDENTS HAVE THEIR OWN DEVICE AND YOU PROVIDE CONNECTIVITY.
I THINK THAT'S A VASTLY UNDERUTILIZED SPACE.
SHOPS, LABS AND CLASSROOMS IS A BIG DEAL.
ALL RIGHT, EQUIPPING NEW FACILITIES.
YOU KNOW, THE OLD LESSON, IF YOU
[02:00:02]
BUILD IT YOU MUST EQUIP IT, OPERATE IT AND MAINTAIN IT.THAT'S JUST THE TIP OF THE ICEBERG IS BUILDING IT.
COMES ALL THAT OTHER STUFF BEHIND, THE OPERATIONS, EQUIPPING AND MAINTENANCE.
AS I SAID EARLIER THIS MORNING, I THINK MR. RITER ASKED THE QUESTION,I,ING AS A YOUNG CFO I WAS PRUDENT ENOUGH TO SAY YOU ARE NOT BUYING ANY EQUIPMENT WITH THE $600 MILLION.
I'M NOT GOING TO LET YOU SPEND MONEY ON SOMETHING WHOSE USEFUL LIFE DEPRECIATE FASTER THAN THE DEBT.
THERE WAS WHALING AND GNASHING OF TEETH AMONG PRESIDENTS AND CFOS.
BUT WE DID ALLOW THEM TO CARRY FORWARD UNEXPENDED FUNDS FOR EQUIPMENT AND LET THEM ACCUMULATE THE MONEY AND I PROTECTED IT EVEN DURING THE GREAT RECESSION.
IT'S SOMETHING I PERSONALLY TOLD THE ASSEMBLY, I KNOW THE STATE IS IN TROUBLE.
>> CARRYOVER FROM THE OPERATIONAL BUDGET?
IN-LIEU OF SPENDING BOND MONEY, WHICH IS NOT PRUDENT ON FACILITIES, I LET THEM CARRY FORWARD ACCUMULATED EQUIPMENT MONEY AND LET THEM INVENTORY THAT.
HOW DOES THAT MAKE SENSE? WELL, IF IT'S FURNISHINGS, IT'S FURNISHINGS, THAT DOESN'T DATE SO QUICKLY.
I DIDN'T WANT TO STOP BUYING COMPUTERS BECAUSE THAT TECHNOLOGY ROTATES QUICKLY.
I DID LET THEM STOCK PILE EQUIPMENT AND OTHER CASE GOODS AND FURNISHINGS FROM THE CURRENT OPERATING MONIES.
IN THE MAJORITY OF INCIDENCES, THAT WORKED WELL.
I SHARED DURING LUNCH WITH A COUPLE OF YOU FOR THE LITTLE SMALL COLLEGES I MADE SPECIAL ACCOMMODATION BECAUSE WE HAVE SMALL COMMUNITY COLLEGES IN OUR SYSTEM.
>> CHAIR D. FLORES: BY SMALL, WHAT DO YOU MEAN?
>> WE HAVE HANDFUL OF COLLEGES, MAYBE 10, THAT HAVE 1,500 FTE OR LESS, THE SMALLEST HAS 500.
IT PROBABLY NEEDS TO BE A MULTICAMPUS OF ANOTHER BUT THAT IS A POLITICAL CONVERSATIONISM YES, MA'AM.
AGAIN, IN OUR STATE UNITS OF LOCAL GOVERNMENT APPROPRIATE FUNDS FOR FACILITY OPERATIONS.
IN 2000, THE COMMISSIONERS AUTHORIZED A FACILITY TO BE BUILT AND NOT APPROPRIATE THE MONEY TO BUILD IT.
IT SEEMS TO ME HERE, I KNOW, THOSE ARE THE CHALLENGES OF BEING A CFO.
BUT I PUT IN A REQUIREMENT THAT IF IN FACT A COLLEGE RENOVATED A FACILITY OR BUILT A FACILITY BEFORE T THE STATE BOARD WOULD APPROVE IT BECAUSE THE STATE HAS TO APPROVE ALL CAPITAL PROJECTS, YOU DO THAT HERE.
WE HAD TO SEND THEM TO GET THEM APPROVED.
THE COUNTY HAD TO SIGN A CONSENT TO FUND INOPERATIONS.
WHAT DOES THAT HAVE ANY RELEVANCE TO YOU? I THINK IT'S TRUE THAT WHAT YOU RUN INTO IN RENOVATING OLDER FACILITIES ARE OPPORTUNITIES.
THOSE OPPORTUNITIES, SPECIALLY IF YOU ARE REPLACING OLD SYS SYSTEMS, HEATING, COOLING, PLUMBING, YOU MAY REALIZE OME SAVINGS FROM THAT.
AND THE SECOND THING THAT WE NEVER ALLOWED WAS PERFORMANCE CONTRACTING.
I DON'T KNOW IF YOU DO THAT HERE.
THAT IS ALSO A GOOD WAY WORKING WITH A PRIVATE SECTOR PARTNER TO UPGRADE HEATING AND COOLING SYSTEMS AND GET A RETURN TO YOU ON THE INVESTMENT AS WELL AS THEM.
YOU DON'T FRONT THE MONEY, THEY DO.
THEY PROVIDE FOR THE RENOVATIONS OF YOUR HEATING AND COOLING SYSTEMS. AND IT WORKS.
IT GENERALLY SAVES SOME MONEY.
THE OTHER THING I WOULD SHARE WITH YOU AND THIS TAKES OUR SITUATION AND TIES IT BACK TO DALLAS.
IN ORDER TO MAINTAIN, WE HAD A STATE TREASURER WHO SEVERED IN NORTH CAROLINA FOR A LONG, LONG TIME.
REALLY VERY SMART MAN WHO KEPT OUR TRIPLE A BOND RATING, WHICH YOU ENJOY.
AND WHO KEPT A 4% STATE DEBT CEILING CAP.
JUST WOULDN'T LET IT GO ABOVE 4%.
THE GENERAL ASSEMBLY MADE A BIG CONCESSION.
IN AGREEMENT FOR THE ISSUANCE OF THE 3.$4 BILLION REFERENDUM THEY ISSUED THE BONDS OVER A SIX-YEAR PERIOD.
IT BEGAN AT 2.2 MILLION AND ACCELERATED TO 524 MILLION IN THE LAST YEAR.
[02:05:01]
WAS BUYING DOWN EBT OVER HERE WHILE DEBT INCREASED OVER HERE.AND I THINK YOU HAVE GONE THROUGH REFUNDING XERCISES HE HERE.
VERY PRUDENT TO RIGHT SIZE YOUR DEBT AS YOU TAKE ON NEW DEBT AND DEAL WITH THE COST OF MONEY.
REMEMBER WHAT WE HAD THIS MORNING.
UNIVERSITY CAN BEGIN CASH FLOWING OF PROJECTS BECAUSE THEY ARE WELL AHEAD OF US.
WE TOOK BACK SEAT TO THE UNIVERSITY IN GETTING IN THE GAME FOR HAVING PROJECTS READY TO BUILD.
YOU MIGHT THINK ABOUT HOW YOU CASH FLOW SOME OF THESE THINGS EARLY.
THAT'S A GOOD LESSON LEARNED FROM US.
AND I THINK YOU ARE POSITIONED TO DO THAT AS YOU THINK ABOUT HOW YOU USE FUND BALANCE OR RAINY DAY FUND.
DOES THAT MAKE SENSE? I THINK THERE IS A GREAT OPPORTUNITY FOR YOU HERE TO PUT YOUR MONEY TO WORK.
I THINK THOSE ARE SOME THOUGHTS FOR YOU.
ALL RIGHT, SO IN SUMMARY, LESSONS LEARNED, IN THE FORM OF A TABLE FOR YOU.
YOU CAN CHECK THE MASTER PLANS BOX AND CHECK THAT ONE OFF THE LIST.
I DON'T KNOW IF THERE HAS BEEN ADVANCED PLANNING DONE BUT IT FACILITATES INTENTIONAL AND THOUGHTFUL -- GETS YOU A LITTLE BIT OF AHEAD BEFORE YOU SPEND SIGNIFICANT SUMS OF MONEY.
I THINK LINKING THAT TO THE STRATEGIC PRIORITIES YOU'VE ESTABLISHED FOR 19-20 IN THE STRATEGIC PLAN GOING FORWARD YOU NEED TO THINK ABOUT AND HAVE CLARITY ABOUT RENOVATION REPAIR VERSUS NEW CONSTRUCTION.
I REALLY WANT YOU TO THINK CAREFULLY ABOUT WHERE THOSE DOLLARS GO FIRST AND BEST.
IT AIN'T ALL BOUT BRIGHT AND SHINY, IT'S COPYING THE PHYSICAL PLAN CURRENT.
YOU KNOW WHAT I MEAN? IT'S LIKE BUYING EW FURNITURE BEFORE YOU PUT ON A NEW ROOF.
FOUR, THERE WILL ALWAYS BE CREATIVE TENSION ABOUT WHETHER TO BUILD ACADEMIC OR STUDENT SUPPORT SPACES.
WHAT WE'RE FINDING IN T THE LITERATURE AND AT ASHVILLE AND OTHER PLACES, SOMETIMES THEY SUPPORT SPACES, WHETHER THEY ARE LEARNING COMMUNITY OR HOSE CAN BE AS IMPORTANT AS CLASSROOM SPACES.
I WANT YOU TO THINK CAREFULLY ABOUT STUDENT SPACES AS MUCH AS TRAINING SPACES.
WE ALREADY AGREED ON NUMBER FIVE.
NUMBER SIX, WE EXPERIENCED THAT RENOVATION SOMETIMES FACILITIES CREATED ECONOMIES FOR US.
IT'S SOMETHING TO THINK ABOUT AS YOU REPLACE SYSTEMS. SEVEN, IF THERE IS SUFFICIENT CASH FLOW, CASH FLOW SOME OF THE PROJECTS YOURSELF.
I THINK FOR HAT IT'S WORTH THAT'S SOMETHING THAT IS SMART TO CONSIDER.
QUESTIONS OR COMMENTS, MADAM CHAIR, BEFORE I MOVE TO THE LINKING PROGRAMS?
>> CHAIR D. FLORES: ANY QUESTIONS OR COMMENTS?
LINKING ACADEMIC SKILLS, TRAINING, AND FACILITIES.
I I WANT TO TALK ABOUT THE OPPORTUNITY FOR DISTRICT AND COMMUNITY AND PROGRAM AND FACILITIES.
IF YOU ALLOW ME TO DO SO THERE.
AGAIN, I HAVE NOTES AND YOU WILL HAVE THEM LATER.
AS WE WERE POSITIONED 20 YEARS AGO IN NORTH CAROLINA WITH OUR 600 MILLION, YOU HAVE A TREMENDOUS OPPORTUNITY HERE.
A BILLION DOLLARS IS A LOT OF MONEY.
MAYBE NOT IN THE FEDERAL BUDGET DEFICIT BUT IT IS A LOT OF MONEY NONETHELESS.
THE STATEMENT MADE BY THAT, YOU HAVE GAINED THE PUBLIC'S TRUST.
YOU LOOK AT THE PERCENTAGE OF VOTERS THAT VOTED FOR THE BOND, THEY HAVE INVESTED IN YOU A LOT OF MONEY AND TRUST .
IN FACT, YOU ADVOCATING FOR AND WERE GIVEN THE OPPORTUNITY, I'M GOING TO QUOTE YOU, IN YOUR WORDS TO MAKE SIGNIFICANT INVESTMENTS THAT INVOLVE IDENTIFYING WHAT THE COMMUNITY NEEDS AND ANY GAPS THAT EXISTED WHICH WE NEED TO FILL.
THOSE ARE YOUR WORDS, I TOOK OFF THE PRESS RELEASE.
YOU ALSO SAID, THAT THE BONDS ELECTION REFLECTED THE STRATEGIC PRIORITIES WE SET FOR THIS DISTRICT.
IT'S ANOTHER QUOTE FROM YOUR WORDS IN THE PRESS RELEASE.
TAKE THE PUBLIC TRUST, THE NEEDS OF THE COMMUNITY, AND THE PRIORITIES YOU'VE SET AND YOU HAVE THE RIGHT PATHWAY.
[02:10:03]
THE PUBLIC EXPECTS SOMETHING TO COME FROM THIS FROM YOUR LEADERSHIP.BACK TO YOUR FIDUCIARY DUTY OF CARE.
WHAT IT INCLUDES HERE, THE FIDUCIARY DUTY OF CARE IN THIS SITUATION INCLUDES ACHIEVING AN OPTIMAL BALANCE BETWEEN ACADEMIC QUALITY, YOUR PROGRAMS, STUDENT INTERESTS, WHAT STUDENT SPACES ARE NEEDED, COMMUNITY INTERESTS, WHAT YOUR JOBS AND ECONOMIC DEVELOPMENT AND PHYSICAL ASSETS, BUILDINGS.
YOU ARE LOOKING FOR A BALANCE HERE BETWEEN QUALITY ACADEMIC PROGRAMMING, NEW OR CHANGED, STUDENT INTEREST, STUDENT FACILITY, STUDENT SPACES FOR STUDY AND MEETING, COMMUNITY INTEREST, IT IS ABOUT JOBS AND ECONOMIC DEVELOPMENT AFTER ALL, AND PHYSICAL ASSETS.
YOU ARE GETTING READY TO SPEND A LOT ON PHYSICAL ASSETS.
THINK ABOUT THAT HOLISTICICALLY.
FURTHER, IF YOU LOOK AT THE SACSCOC ACCREDITATION FOR INSTITUTIONS, YOU HAVE A LEVEL OF RESPONSIBILITY TO PLAY IN ACADEMIC AFFAIRS, MR. MAY, AND AS WELL AS IN FINANCIAL LEADERSHIP.
THIS IS PART OF THAT SHARED GOVERNANCE THING WE TALKED ABOUT THIS MORNING.
THAT 1.1 BILLION GIVES YOU A CHANCE O ENSURE THERE ARE HIGH-QUALITY ACADEMIC PROGRAMS GOING IN THE SPACES THAT LEND THEMSELVES TO GOOD LEARNING OUTCOMES AND STUDENT SUCCESS.
AND I THINK OU WILL GET FROM YOUR CHANCELLOR AND TEAM GOOD RECOMMENDATIONS FOR YOUR CONSIDERATION ABOUT HOW TO MAKE THAT OPTIMAL WORK COME TOGETHER.
THAT'S THEIR JOB TO BRING IT TO YOU AND IT'S YOUR JOB TO BE THE ARBITER OF THAT .
IN FACT, IN YOUR STRATEGIC PRIORITIES FOR 2019-20, WHICH I'M SURE YOU CAN QUOTE TO ME, BUT THEY WERE OF INTEREST TO ME.
IN THE FIVE AREAS OF FOCUS, TWO INTERRELATED ITEMS. THE FIRST WAS PROVIDE EDUCATION AND SCHOLARSHIP SUPPORT FOR SKILLS DEVELOPMENT FOR HIGH-DEMAND JOBS INCLUDING SHORT-TERM TRAINING OPTIONS LEADING TO LONGER-TERM CAREER DEVELOPMENT.
THE SHORT-TERM TRAINING OPTIONS GENERALLY LEAD TO FURTHER EDUCATION.
MAYBE IT'S AFTER A CERTIFICATE, MAYBE AN ASSOCIATE'S DEGREE.
AND THE SECOND THING, TO ALIGN WITH BUSINESS AND INDUSTRY WORKFORCE REQUIREMENTS.
IT SAYS TO ME, YOU ARE THE ONRAMP TO ECONOMIC PROSPERITY AND OFF RAMP TO EMPLOYMENT.
I GUESS I'M SAYING, ALL OF THESE THINGS COME TOGETHER WHERE LEARNING AND STUDENT SERVICES TAKE PLACE IN YOUR FACILITIES.
SO LET'S TALK ABOUT PROGRAMS AND FACILITIES.
BECAUSE THAT'S WHAT THESE ARE DESIGNED TO DO.
I THINK CHAN IN THE MIDST OF AN EDUCATIONAL PROGRAM REVIEW NOW? CAN YOU SHARE A LITTLE BIT ABOUT THAT WITH ME? I THINK IT HAS RELEVANCE.
>> CHANCELLOR MAY: TWO THINGS.
WE ENGAGED IN AN EDUCATIONAL MASTER PLAN SO THAT IF YOU THINK ABOUT THEY ARE ALL INTERRELATED.
THE EDUCATION MASTER PLAN DRIVES THE BUDGET, DRIVES THE FACILITIES.
SO EVERYTHING FLOWS OUT OF THAT.
AND THEN TIED INTO THAT IS OUR ANNUAL PROGRAM REVIEW PROCESS WHERE WE LOOK AT MARKET DATA WE HAVE LABOR MARKET INTELLIGENCE CENTER WHERE WE LOOK AT JOBS AND OPPORTUNITIES AND WHERE THE GAPS ARE BETWEEN THE PROGRAMS. THE BOARD REGULARLY HEARS UPDATES RELATIVE TO WHERE WE ARE AND WHAT'S HAPPENING IN THE WORKFORCE AND ECONOMY.
>> THAT'S THE WAY IT SHOULD FLOW.
THAT'S EXACTLY HOW IT OUGHT TO FLOW.
I THINK INCREASINGLY, COLLEGES ARE BEING ENCOURAGED TO DO EXACTLY THAT KIND OF WORK.
WE THINK WE'LL BUILD A HEALTH SCIENCES BUILDING, WHICH DOES HAVE LABOR MARKET RELEVANCE.
I THINK MORE AND MORE COLLEGES ARE ENCOURAGED OR RYING TO ENCOURAGE THEM TO INTEGRATE ALL THAT ACADEMIC PROGRAM THINKING, AS YOU, NOT THE ENVELOPE BUT CERTAINLY THE CONTENT.
>> CHAIR D. FLORES: IN PROGRAM REVIEW IS ANON GOING PROCESS, RIGHT? NOT SOMETHING WE DO ONCE AND FIVE YEARS LATER AGAIN.
>> CHANCELLOR MAY: THERE IS A CYCLE.
>> CHAIR D. FLORES: THE CYCLE, WE HAVE IT ON A CYCLE.
[02:15:01]
>> THERE IS ANOTHER BODY OF LITERATURE TOO AROUND THE NOTION THAT I LOOKED AT YOUR LABOR MARKET DATA AS WELL.
I WENT TO WEBSITES HERE IN DALLAS AND LOOKED AT THAT KIND OF INFORMATION.
THERE IS SOMETHING ELSE I WANT TO CHALLENGE YOU TO THINK ABOUT.
AND I'LL TALK ABOUT THE LABOR MARKET DATA MOMENTARILY.
I THINK YOU NEED TO THINK ABOUT, I DON'T KNOW HOW YOU DO IT EXACTLY BUT THINK ABOUT SPACES FOR JOBS THAT DON'T EVEN EXIST YET.
YOU HAVE TO THINK A LITTLE BIT FORWARD ABOUT WHAT YOU WILL BUILD.
WE WERE TALKING THIS MORNING ABOUT 1969, 50 YEARS AGO.
50 YEARS AGO, WE LANDED PEOPLE ON THE MOON FOR GOODNESS SAKE.
AND WE HAVE SENSE BUILT A SPACE STATION AND WE HAVE SHUTTLED PEOPLE BACK AND FORTH FROM SPACE.
I MEAN, SHUTTLE THEM, LITERALLY.
IF YOU LOOK AT THE KNOWLEDGE AND DEVELOPMENT IN THAT 50-YEAR SPAN AND THE JOBS THAT DIDN'T EXIST, EVEN MORE RECENTLY IS IT TOOK 150,000 LINES OF CODE TO SEND SOMEONE TO THE MOON.
THIS IS 1.2 MILLION LINES OF CODE.
AND THEY ARE JOBS THAT WILL EXIST THAT DON'T EXIST TODAY.
AND THESE FACILITIES YOU ARE GOING TO BUILD PRESUMABLY ARE 20-YEAR FACILITIES OR MORE.
SO YOU HAVE TO THINK ABOUT WHAT THOSE, HOW FLEXIBLE THOSE SPACES CAN BE, SHOULD BE, OUGHT TO BE FOR JOBS THAT DON'T YET EXIST FOR WHICH YOU WILL BE EDUCATING STUDENTS TO AKE THINGS IN THE DISTRICT.
>> CHAIR D. FLORES: WELL, SOME OF OUR BUILDING WON'T -- WELL, WON'T HAVE AS MANY WALLS? RIGHT? BECAUSE THEY HAVE THE MOVEABLE WALLS.
>> CHANCELLOR MAY: THAT'S PART OF THE DESIGN.
YOU LOOK AT A LOT OF THE BUILDINGS BUILT 50 YEARS AGO IN THE DISTRICT, YOU HAVE INTERIOR WALLS THAT ARE CINDER BLOCK.
YOU HAVE REALLY NOT DESIGNED FOR PERMEANCE, NOT AROUND THE OPPORTUNITY FOR CHANGE.
AND SO THAT'S WHY IN SOME CASES WE'VE SAID PROBABLY CAN'T REMODEL THE BUILDINGS.
WE JUST NEED TO TAKE THEM OUT AND REPLACE THEM.
I THINK THAT COST BENEFIT ANALYSIS IS IMPORTANT AS YOU THINK ABOUT PROGRAMMING THIS MONEY.
>> YOU COULD TAKE A LOT OF CUES FROM WHAT INDUSTRY IS DOING.
ESPECIALLY INNOVATIVE NEW COMPANIES DEALING MORE FUTURESTIC TYPES OF CAREERS, AND THE WIDE OPEN, COLLABORATIVE WORK SPACES, SO MANY THINGS TO DRAW FROM ON THAT.
WE CAN BENEFIT FROM THAT EXPERIENCE.
I THINK YOU CAST A BROAD NET AROUND THAT.
AND SEE WHAT'S GOING ON IN THE COMMUNITY.
IMPORTANT HERE, THE NOTION OF OPPORTUNITY COST.
LET ME PICK ON THAT JUST A LITTLE BIT FOR YOU ABOUT OPPORTUNITY COST WITH THIS MONEY.
AGAIN, I'M FOCUSED ON THE FACT THAT LORD, YOU GOT 1.1 BILLION, FOR THE WHOLE STATE I HAD 600 MILLION, BECAUSE YOU DO HAVE COMMUNITY COST.
ECONOMIC CYCLES ELL US, THERE IS GOING TO BE ANOTHER RECESSION AT SOME POINT.
I'M NOT INTERESTED IN TALKING ABOUT THE POLITICS BUT ENROLLMENT WILL GO UP.
PEOPLE GO TO COLLEGE WHEN TIMES ARE BAD AND GO TO WORK WHEN TIMES ARE GOOD.
ENROLLMENT WILL EXPLODE LIKE IT DID FOR US.
HERE'S A COUPLE OF THINGS TO THINK ABOUT IN TERMS OF DEMOGRAPHICS.
AS THE BABY BOOM AGES AND RETIRES, TWO THINGS HAPPEN.
ARE HAPPENING IN THIS SOCIETY, HEALTH CARE REQUIREMENTS GO UP, CLEARLY.
THERE IS A REMAND FOR HEALTH CARE.
I LOOKED FOR THE DATA IN THIS AREA, AND I'LL TALK ABOUT THAT.
THE SECOND THING AND THIS IS INCREASINGLY HAPPENING FOR FOLKS LIKE ME, SECOND CAREER EDUCATION AND TRAINING REQUIREMENTS PLACED ON COMMUNITY COLLEGES IN RECORD LEVELS.
MAYBE NONCREDIT AREAS, FOR OLKS WHO TAKE UP SECOND CAREERS AND NEED NEW SKILLS.
THEY WANT TO STAY IN THE MARKET.
THEY ARE NOT SURE WHAT THEY ANT TO DO.
THAT TRANSFER OF RESPONSIBILITY IS COMING TO COMMUNITY COLLEGES IN RECORD NUMBERS.
NEW SKILLS OR SKILL CERTIFICATIONS.
WHEN YOU THINK AHEAD THERE WILL BE A RECESSION.
AND THERE WILL, AS THIS POPULATION AGES, THE ADULT POPULATION, YOU ARE GOING TO BE TASKED WITH MORE HEALTHCARE PROVIDERS, YOU PRODUCING THEM.
[02:20:02]
SECOND CAREER WHO ARE FAKING RETIREMENT LIKE ME, DOES THAT MAKE SENSE? BE THINKING ABOUT THAT TOO.LOOKING AT THE DALLAS BUSINESS JOURNAL, I LOOKED AT THE BUSINESS JOURNAL IN DOING MY WORK INTEREST THIS, MR. WILLIAMS, BECAUSE IT IS TAILORED TO THE -- I SAW THE BUSINESS JOURNAL, QUOTED 65% OF THE JOBS REQUIRE POST SECONDARY CREDENTIAL AND 67% ARE IN HEALTH CARE AND COMPUTERS OR MATH, ONLY 25% OF POST SECONDARY CREDENTIALS ARE IN THOSE AREAS.
THERE IS A DELTA, IT BECOMES AN OPPORTUNITY.
I DON'T KNOW BUT I PREDICT YOU, OTHER THAN THE MD'S AND THAT LEVEL OF WORK, THE PA'S, YOU ARE PRODUCING A SUBSTANTIAL NUMBER OF THE HEALTH CARE WORKERS IN DALLAS COUNTY.
AND I THINK THAT'S ONLY GOING TO INCREASE.
THAT TRULY BEGS THE QUESTION ABOUT BUILDING HEALTH CARE SPACES.
THAT'S GOT TO BE ON YOUR AGENDA.
>> CHAIR D. FLORES: WITH THE $200,000 AMENITIES.
>> WELL, THE OTHER THING WE'RE DOING TOO IS DOING APPRENTICESHIPS IN HEALTH CARE.
DO YOU HAVE A CHALLENGE WITH CLINICAL SITES ANYWHERE, DR. MAY?
>> CHANCELLOR MAY: SURE, THERE IS A LOT OF COMPETITION, TWU HAS A PROGRAM, NORTH TEXAS STATE HAS A PROGRAM.
UT ARLINGTON HAS THE LARGEST IN THE NATION HERE IN TERMS OF NURSING.
WHILE THERE IS A GROWING, THERE ARE EIGHT MAJOR HOSPITALS SYSTEMS HERE.
WITH OVER 300 LOCATIONS IN THE AREA.
>> D. ZIMMERMANN: IF YOU WANT TO GET SICK, IT'S GOOD TO GET SICK HERE.
>> CHAIR D. FLORES: EVEN AT THAT WE'RE NOT FILLING THE NEED FOR THE CLOUD CARRIER.
>> CHANCELLOR MAY: ECHO SPACE IS A PROBLEM.
>> OUR YOUNGEST CHILD FINISHED PHYSICIAN ASSISTANCE EAST CAROLINA SCHOOL OF MEDICINE.
DUKE AND WAKE FOREST UNIVERSITY AND SOME OF THE PRIVATES ARE BUYING UP CLINICAL SITES.
SO THEY ARE STRUGGLING HAVING CLINICAL SITES TO PUSH PA STUDENTS TO GET THE PRACTICAL CLINICAL.
>> CHANCELLOR MAY: IT WILL DRIVE THEM SOMETIMES AN HOUR AWAY.
ANOTHER THOUGHT ABOUT FACILITIES, JUST THROWING THESE OUT.
RECENT ENROLLMENT, THE FASTEST GROWING MARKET IN HIGHER EDUCATION IS DISTANCE LEARNING.
THERE IS GREAT DEBATE IN THE ACADEMY ABOUT CADEMIC RIGOR, EDUCATIONAL QUALITY, LOSS OF PERSONAL CONTACT, THE DIGITAL DIVIDE.
ALL THAT CONVERSATION ABOUT WHO CAN ACCESS.
BUT THE FACT REMAINS THAT INCREASING NUMBERS ARE PURSUING REMOTE LEARNING.
WHETHER IT'S HYBRID OR COMPLETELY ONLINE, THE DEMAND IS HE.
SO HOW DO YOU RESPOND TO THAT? DO YOU BUILD MORE PHYSICAL CLASSROOMS INTENTIONALLY MOVE TO MORE VIRTUAL CLASSROOMS OR BOTH.
IT'S SOMETHING TO KEEP IN MIND BECAUSE THAT IS A RAPIDLY GROWING MARKET.
BECAUSE OF CONVENIENCE FOR WORKING ADULTS, QUITE FRANKLY WHO ARE TRYING TO HOLD DOWN A JOB AND RAISE A FAMILY.
THE SECOND THING TO CONSIDER IS HOW WILL YOU PROVIDE TRADITIONAL STUDENT SERVICES, TUTORING, COUNSELING, FINANCIAL AID, TESTING, TO STUDENTS ONLINE WHO MAY NEVER SET FOOT ON CAMPUS UNTIL IT'S TIME TO RECEIVE A CREDENTIAL? IT'S SOMETHING TO THINK ABOUT AS YOU THINK ABOUT BUILDING LEARNING SPACES, DO YOU DO VIRTUAL, TRADITIONAL, HYBRID CLASSROOMS? WHAT DO YOU DO? I THROW THAT OUT FOR CONSIDERATION.
TRADES PROGRAMS. THE TRADES, AS I CALL THEM.
IN NORTH CAROLINA, WADE COUNTY HAS A POPULATION OF 1.1 MILLION.
THE COUNTY I LIVE IN HAS A POPULATION OF 140,000 BUT THEY HAVE ONE THING IN COMMON FROM 1.1 MILLION TO 140,000, A POPULATION GROWING AT UNPRECEDENTE LEVEL, 3 TO 4%.
ONE COASTAL, ONE IN THE RESEARCH TRIANGLE.
[02:25:01]
HAVE SOMETHING SIMILAR, THAT IS THIS, THE MISMATCH BETWEEN CONSTRUCTION, HVAC, ELECTRICAL AND OTHER TRADES JOBS BETWEEN THE LABOR DEMAND AND LABOR SUPPLY, AND HOUSES ARE BEING BUILD SO FAST IN WAKE COUNTY AND RENOVATED FOR THAT MATTER FOR SALE AT A PREMIUM, AND N BRUNSWICK COUNTY, THE MARKET IS SLOWING NOT BECAUSE OF FUNDING OR DEMAND BUT BECAUSE OF SKILLED LABOR.WE'LL SEE THEM FRAMED AND SIT THREE MONTHS OR FOUR MONTHS BEFORE THEY GET A ROOF OR THE GUTS OF THE HOUSE.
AND I THINK THAT, AGAIN, LOOKING AT IT THE BIZ JOURNAL THERE IS A BUNCH OF GOOD PAYING JOBS HERE IN THE TRADE'S PROGRAMS .
IN FACT, IN WAKE AND BRUNSWICK COUNTY, IF YOU ARE A MASON, PLUMBING, HVAC, YOU MAKE $100,000 A YEAR IN TRADE'S PROGRAMS BECAUSE OF DEMAND.
SO I DON'T KNOW WHERE YOU ARE WITH YOUR TRADE'S PROGRAMS. BUT THOSE SPACES ARE IMPORTANT.
BUT THAT VALIDATES I THINK WHAT'S GOING ON A LOT OF PLACES.
>> D. ZIMMERMANN: THIS WAS THE PICTURE TAKEN AT THE GROUND BREAKING FOR THE NEW NORTH LAKE CAMPUS.
HOW ABOUT THAT? THAT'S ME IN THE MIDDLE.
>> I NEED TO TAKE IT TO NORTH CAROLINA AND SAY, LOOK WHAT THEY ARE DOING IN DALLAS.
>> D. ZIMMERMANN: I CAN GET ANOTHER COPY.
YOU, AS A BOARD AND CHANCELLOR, YOU KNOW ALL THE THINGS I JUST SAID.
BUT I THINK IT'S IMPORTANT TO THINK ABOUT IT AND HOW YOU USE THOSE RESOURCES WITH THE SPACES THAT YOU BUILD.
DOES THAT MAKE SENSE? YOU'VE BEEN GIVEN A GREAT OPPORTUNITY.
I'LL LEAVE YOU WITH A THOUGHT ON THIS PARTICULAR ITEM THAT I THINK HAS RELEVANCE, CHANCELLOR, THIS IS FOR YOU.
WHILE MANY COMMUNITY COLLEGES WENT THROUGH A PERIOD OF EMBRACING COMPLETION BY DESIGN FOR EQUIPPING TO GUIDE STUDENTS THROUGH PATHWAYS, HOW MANY HAVE ENGAGED PEDAGOGY BY DESIGN? HOW MANY HAVE TRULY EMBRACED PEDAGOGY BY DESIGN? MEANING, TEACHING AND LEARNING IN THOSE SPACES? IT'S AN INTERESTING THOUGHT.
IT'S SOMETHING I RAN ACROSS IN DOING SOME WORK FOR THIS THAT COMPLETION BY DESIGN WAS A GOOD WAY TO HELP STUDENTS WITH PATHWAYS TO SUCCESS.
DO WE DO THE SAME WITH FACILITIES, PEDAGOGY BY DESIGN? IS SOUNDS LIKE YOU ARE WORKING ON IT TO ME.
P3, I THINK YOU WANTED TO HEAR ME TALK ABOUT P3, MS. ZIMMERMANN? HERE WE GO.
THE THINGS WHAT YOU PERMITTED TO DO? THE TRADITIONAL P3 PARTNERSHIPS.
WHAT BUSINESS ARE YOU IN AND HOW DOES THE DRIVE P3? PREVIEWS.
I TOOK AT LOOK AT THE STATUTES IN NORTH CAROLINA.
THIS WILL MAKE YOU WANT TO HIT YOURSELF IN THE HEAD.
WHEN IT COMES TO PUBLIC/PRIVATE PARTNERSHIPS IN NORTH CAROLINA, I WENT BACK AND LOOKED AT 120 AND I HELPED WRITE SOME OF THAT LANGUAGE 25 YEARS AGO.
TRUSTEES ARE AUTHORIZED TO ENTER INTO PUBLIC PRIVATES PARTICIPATES, THE AGREEMENT IS APPROVED BY THE STATE BOARD, TRUSTEE LEASE LAND TO IT FACILITY ON THE LEASED LAND.
THE FACILITY IS JOINTLY OWNED AND USED BY THE PRIVATE ENTITY AND COMMUNITY COLLEGES.
THE TRUSTEES ARE NOT AUTHORIZED TO LEASE THE FACILITY UNDER A LONG-TERM OR CAPITAL LEASE FROM THE PRIVATE ENTITY LESSOR.
THE TRUSTEES ARE NOT ALLOWED TO FINANCE BY PHERRING NTO A INSTALLMENT WITH THE PRIVATE ENTITY.
HAVING HEARD THAT, HOW MANY P3 PARTNERSHIPS DO YOU THINK THE COMMUNITY COLLEGES IN NORTH CAROLINA HAVE DONE? NONE.
THE ONLY INSTANCE I CAN REMEMBER
[02:30:02]
DURING MY WATCH, WERE YMCA'S.>> CHAIR D. FLORES: HOW DOES THAT STATUTE MAKE IT POSSIBLE FOR P3? IT DOESN'T.
>> ACTUALLY, WE FINESSED IT IN A WAY IT DID.
AND I SHOULDN'T EVEN SAY IT BUT I'M GOING TO AND I'M RETIRED SO I CAN SAY IT NOW.
I WOULD -- WHEN THE YMCA'S IN NORTH CAROLINA OR HAMPTON ROADS AREA OR VIRGINIA WANTED TO DO THIS PARTNERSHIP WITH OUR COLLEGES, THEY WOULD SAY WE HAVE A TEMPLATE TO BUILD.
WE'LL SHARE THE SPACE WITH YOU FOR YOUR P.E. CLASSES AND HEALTH CLASSES, FOR EDUCATIONAL PURPOSES.
YOU WILL HAVE ACCESS FOR STUDENTS TO HAVE RECREATION.
AND WE CAN MAKE IT WORK AFFORDABLABLY AND SHARE THE MAINTENANCE AND OPERATION COST.
I WOULD TELL THE PRESIDENT AND CFO GO TO THE LOCAL LEGISLATIVE DELEGATION, GET A SPECIAL BILL TO AUTHORIZE YOU TO DO THIS.
IT LITERALLY TOOK THAT LEVEL OF INVOLVEMENT TO GET THAT TO HAPPEN.
I'VE GOT A GOOD LESSON FROM DR. MAY ABOUT SOME OF AUTHORITIES YOU HAVE IN TEXAS THAT WE DID NOT HAVE IN NORTH CAROLINA.
AND I WANT YOU TO REALLY THINK CAREFULLY AND INTENTIONALLY ABOUT HOW O AVAIL THOSE OPPORTUNITIES.
>> CHANCELLOR MAY: I WILL SAY OUR BOARD HAS ADOPTED A POLICY ON THAT IN STATE LAW.
SO LET ME GIVE YOU SOME OF THE TRADITIONAL MODELS, IF I MAY SINCE YOU HAVE A POLICY I OPPORTUNITY, YOU HAVE MONEY.
YOU ARE KIND OF SITTING IN THE CAT BIRD SEAT.
HERE'S THE TRADITIONAL PARTNERSHIPS.
STUDENTS OF TODAY WANT TWO DIVERGENT FOOD OPTIONS.
GRAB FAST AND FOOD, OTHERS WANT HEALTHY, LOCALLY SOURCED, NON-GMO HEALTHY FOOD CHOICES.
IN THE FRANCHISE FOOD, COMMUNITY COLLEGES ARE BRINGING INTO TO STUDENT CENTERS, LOTS OF THOSE FRANCHISE OPPORTUNITIES.
NAME BRANDS THAT PROVIDE FOOD AND BEVERAGES AND STUDENTS CAN GRAB AND GO.
A CAUTION IS BE CAREFUL ABOUT FRANCHISE FEES VERSUS COLLEGE PROFITS. YOU HAVE TO BE SMART ABOUT THOSE AND YOUR NET ON THE TAKE FROM THE GROSS.
THAT CAN BE MARGINAL OR LUCRATTATIVE.
HEALTHY CHOICES, WHAT WE SAW AT ASHVILLE, MILLENNIALS ARE INCREASINGLY ADVOCATING FOR NUTRITIONS FOODS AND WILLING TO PAY MORE.
HEALTHY OPTIONS HAVE BECOME AN IMPORTANT CHOICE .
IN FACT, WE RERENOVATED OUR FOOD SERVICE AT UNC ASHVILLE TWO YEARS AGO.
THE VENDOR SO WANTED THE CONTRACT THEY AGREED TO PAY FOR A LOT OF THE RENOVATIONS FOR LONGER TERM CONTRACT AND OUR STUDENTS SAID THEY WANTED HEALTHY OPTIONS AND 50% OF THE FOOD THEY WANTED HEALTHY OPTION, LOCALLY SOURCED, HEALTHY, NUTRITIOUS.
AND WE STILL HAVE GRAB AND GO BUT WE GOT A LOT OF MONEY FROM THE LONG-TERM CONTRACT WITH THE VENDOR TO RENOVATE THAT SPACE.
THERE ARE STUDENT STUDY SPACES IN THERE.
>> CHAIR D. FLORES: P3 POLICY AS A REFRESHER.
STUDENT CENTERS AND BOOK STORES.
COLLEGES HAVE INCREASINGLY DESIGN, BUILT AND RENOVATED THOSE SPACES TO INCLUDE STUDENT STUDY SPACES, AND PRIVATE ENTITIES HAVE HELPED WITH SOME OF THE THAT WORK.
TECH CAFÉS FOR STUDENTS, COFFEE OR SNACK WITH LEARNING STU LEARG OPPORTUNITIES HOT WIRED.
OUT SOURCE OPTIONS, INSTANCES WHERE COLLEGES HAVE -- THERE HAS BEEN FURNISHINGS AND EQUIPMENT PROVIDED WITH INNOVATIVE PARTNERSHIPS BECAUSE THEY WANT A FOOTPRINT AND HOLD IN THOSE PLACES.
MS. ZIMMERMANN MAY NOT LIKE THIS ONE.
RESIDENCE HALLS FOR LEARNING COMMUNITIES AND AFFORDABLE HOUSING.
[02:35:01]
WHILE WE'RE NOT TRADITIONALLY RESIDENTIAL INSTITUTIONS IN COMMUNITY COLLEGES, THERE IS A WEALTH OF LEGIS LITERATURE THAT SUGGESTED COLLEGE STUDENTS ARE MORE LIKELY TO STAY ENROLLED, PERSIST AND COMPLETE IF CONNECTED IN SOME WAY OTHER THAN COMING TO CAMPUS, TAKING A CLASS AND LEAVING.IF YOU CAN CONNECT THEM, THEY ARE FAR MORE LIKELY TO PERSIST AND COMPLETE.
HISTORICALLY THAT CONNECTION HAS FALLEN UPON THE STUDENT SERVICES STAFF AND FACULTY.
HOWEVER, KEEPING TUDENTS CLOSE TO LEARNING, CLOSE TO THE CA CAMPUS, IF YOU WILL, AND I UNDERSTAND YOU HAVE A LOT OF LAND UNDER YOUR CONTROL THROUGHOUT THE DISTRICT, KEEPING THEM CLOSE, GIVING THEM EMPLOYMENT OPPORTUNITIES, COLLEGE WORK STUDY KEEPS THEM CONNECTED MAYBE IN AN AREA THEY CAN LEARN AND GROW IN AS PART OF THIS DISCIPLINE.
AND ESTABLISHING LEARNING COMMUNITIES, SOCIAL NETWORKS AND STUDY GROUPS WITH THEIR PEERS GOES A LONG WAY TOWARD KEEPING THEM CONNECTED.
RESIDENCES HALLS PLAY AN IMPORTANT PART OF THAT AS WELL AS HOUSING.
IT'S SOMETHING YOU MIGHT WANTED TO KEEP IN MIND TOO AS YOU CONSIDER THEY ARE A WAY TO DO GROUND LEASES.
COUNCILOR? THEY ARE A WAY TO DO PUBLIC-PRIVATE PARTNERSHIPS WHERE THE PRIVATE CONSTRUCTS THE HOUSING, THEY MAY OPERATE AND MAINTAIN IT.
YOU GET A RETURN ON THE FOOTPRINT.
THERE IS LOTS OF WAY TO DO THAT.
I ENCOURAGE YOU TO THINK THROUGH THAT OPPORTUNITY IN P3.
>> CHAIR D. FLORES: ARE YOU FAMILIAR WITH ANY P3 PROJECTS THAT HAVE FAILED? IF SO, WHY?
>> I'M NOT AWARE OF ANY THAT HAVE FAILED.
I'M AWARE OF A COUPLE OF INSTANCES THAT I COULD POINT TO WHERE THEY HAVE BEEN WILDLY SUCCESSFUL.
AT NORTH CAROLINA A AND T STATE UNIVERSITY IN GREENSBORO, A AND T STATE UNIVERSITY, CHANCELLOR HEROLD, REMADE THE ENTIRE CAMPUS FROM A CAMPUS IN DESPERATE NEED OF FACILITY RENOVATION REPAIR WITH POOR DORM TORIES, TO PROBABLY THE MOST BEAUTIFUL, MODERN DORMS IN THE UNC SYSTEM THROUGH PUBLIC-PRIVATE PARTNERSHIP.
>> CHAIR D. FLORES: WHAT'S THE CAPITAL IN TERMS OF A P3, WHAT'S THE CAPITAL THE HIGHER ED INSTITUTION PUTS IN UPFRONT?
>> WE HAVE A STATE STATUTE THAT SAYS IF YOU WORK WITH A PRIVATE ENTITY ON A DESIGN/BUILD PROJECT, MEANING FROM START TO FINISH, WE SIT DOWN WITH THE FIRM AND THEY DESIGN AND BUILD IT, THEY HAVE GOT TO INVEST 50% OF THE COST UP FRONT, NOTWITHSTANDING YOUR MONEY.
IN SOME INSTANCES, THE DEVELOPER WILL PAY 100% OF THE COST OF CONSTRUCTION.
AND YOU GET A LONG-TERM, YOU GIVE THEM A LONG-TERM LEASE ON THE PROPERTY AND THEY PAY YOU A ROYALTY, A STIPEND BACK.
I THINK THE CAUTION IS THERE AND I KNOW WHERE YOU ARE GOING, MADAM CHAIR.
BECAUSE I THINK YOU HAVE TO B BE VERY INTENTIONAL.
THE PHYSICAL AGREEMENTS IN CONTRACTS NEED TO BE LONG-TERM, WELL THOUGHT OUT, WELL WRITTEN, AND IF THE ENTITY ABANDONEDS THE PROJECT OR YOU NEED TO HAVE A READDRESS FOR THAT.
YOU HAVE TO HAVE RE-DRESS FOR THAT.
I THINK THAT'S WHERE THE CHANCELLOR, CFO, JOINT COUNCIL WOULD BE VERY IMPORTANT.
I THINK THAT COLLEGES HAVE SEEN, COLLEGES AND UNIVERSITIES AND SOME CL COMMUNITY COLLEGES, QUIE FRANKLY IN FLORIDA, HAVE SEEN THE MODEL WORK BECAUSE OF THE NOTION COMMUNITY OLLEGES ARE NOT RESIDENTIAL ENTITIES HISTORICALLY.
KEEPING THE STUDENTS TIGHT AND CLOSE AND BOUND TO THE COMMUNITY, LEARNING BECOMING MORE EAR AROUND, THAN TAKING THE SUMMER OFF.
>> CHAIR D. FLORES: YOU ARE TALKING FLORIDA?
>> CHAIR D. FLORES: THAT'S WHY I WAS ASKING WHERE BECAUSE WE DID THE FIELD TRIP TO AN URBAN CAMPUS BEFORE.
IF THE BOARD WANTS TO CONSIDER POSSIBLY PROVIDING DORMS BEFORE WE WOULD GO DOWN HAT ROAD, MAYBE TAKING A FIELD TRIP.
[02:40:03]
IN TERMS OF P3 HERE IN TEXAS, WHAT WOULD BE THE AMOUNT THAT DCCCD WOULD PUT IN AND THE DEVELOPER?>> WE HAVE A LOT OF LATITUDE HERE ON -- THERE IS NO REQUIREMENTS OF THAT.
>> CHANCELLOR MAY: FRANKLY, P3S ARE GOING TO BE A LITTLE BIT DIFFERENT FOR US BECAUSE WE HAVE BONDING AUTHORITY TOO.
YOU GO OFF OF THEIR BONDING AUTHORITY OF THE OTHER ENTITY RATHER THAN YOUR OWN.
TRUTHFULLY, OUR STATUTE IS NOT AS THE FLEXIBLE AS THE NORTH CAROLINA STATUTE THAT KENNON SPOKE OF.
THERE IS MORE FLEXIBILITY IN TEXAS.
THE PROJECTS ARE MORE DESPERATE AS YOU CAN IMAGINE.
THEY CAN TAKE MANY DIFFERENT FORMS. IT'S DESIGNED TO BE AS FLEXIBLE AS POSSIBLE.
IF THE AGREEMENTERIZE NOT CAREFULLY CRAFTED AND THE PLANS FOR THE P3 IS NOT CAREFULLY THOUGHT OUT AND CONTEMPLATED, THEN AT THE BEGINNING, HEN THE POSES THE POTENTIAL TO BE UNSUCCESSFUL.
BUT IN TERMS OF, YOU KNOW, HOW MUCH WOULD WE PUT IN, IT WOULD DEPEND UPON THE NATURE OF THE PROJECT, UPON THE VISION FOR THE P3 QUALIFYING PROJECT UNDER TEXAS STATUTE.
>> CHAIR D. FLORES: IF WE'RE ASKED AS A BOARD EVENTUALLY TO CONSIDER APPROVAL OF A P3, IT WOULD BE HELPFUL O HAVE ALL THOSE DETAILS.
HOW MUCH MONEY WE'RE PUTTING IN, HOW MUCH THEY ARE PUTTING IN, IF IT'S LEASE.
>> THIS DISTRICTWIDE NOT ENTER INTO A P3 WITHOUT THE BOARD'S APPROVAL.
AND -- ALL OF THAT DETAIL WOULD COME TO THE BOARD IN FULL EXPLANATION OF THE MYRIAD DETAILS HOW IT'S DESIGNED.
I KNOW THERE WAS A REFERENCE TO THE BOARD POLICY THAT TRACKS THE STATE STATUTE.
THERE IS ALSO A VOLUMINOUS SET OF PROCEDURES E ADOPTED THAT FLOW FROM THAT POLICY THAT SET UP A VERY SPECIFIC PROCESS FOR REVIEW OF POTENTIAL P3 PROJECTS, ALL OF THE PARAMETERS, KEY STAKEHOLDERS AND CONSULTANTS REQUIRED .
IN FACT, UNDER THE TEXAS STATUTE ANY PROJECT IN EXCESS OF I WANT TO SAY, $5 MILLION.
ANY PROJECT IN EXCESS HAS TO BE APPROVED BY THE TEXAS AGENCY.
I THINK OUR IF MEMORY SERVICES AND PEARL LAA IS BRINGING IT.
WE WERE VERY CAREFUL IN PROPOSING A POLICY.
WE'VE BEEN CAREFUL IN ADOPTING AND PROPOSING REGULATIONS TO BE ADOPTED UNDER THAT POLICY TO MAKE SURE WE'RE AT CONSERVATIVE IN OUR APPROACH TO POTENTIAL P3 PROJECTS WHILE MAINTAINING THE FLEXIBILITY THEY OFFER.
BECAUSE THEY CAN BE TREMENDOUS OPPORTUNITIES IF DONE CORRECTLY.
>> CHANCELLOR MAY: LET ME MENTION, THE MOST IMPORTANT PART WE MUST INITIATE IT AND HAVE THE PLAN AND PUT OUT THE REQUEST ON OUR BEHALF.
WE WOULD HAVE THAT IN ADVANCE OF GOING OUT.
TEXAS LAW PROHIBITS SOMEONE SOLICITING US.
>> TEXAS IS A NON-SOLICITATION P3 STATE.
WE CAN SOLICIT A P3 BUT WE CANNOT BE SOLICITED TO PARTICIPATE.
>> CHAIR D. FLORES: I THINK THE STATEMENT HAS BEEN MADE P3, WILL THEY MAXIMIZE THE BOND DOLLARS TO FREE UP BOND DOLLARS FOR OTHER PROJECTS IN THE QUEUE BUT WE DIDN'T NECESSARILY PUT INTO FUND?
>> CHANCELLOR MAY: IT MAY BE OR IT MAY BE DOING SOME THINGS -- HOUSING WOULD BE A GREAT EXAMPLE.
WE DON'T REALLY WANT TO BE IN THE HOUSING BUSINESS.
BUT THERE ARE WAYS THAT PERHAPS WE DON'T.
BUT THERE ARE WAYS TO GET HOUSING THAT SOMEBODY ELSE OWNS AND OPERATES LAND WE AKE AVAILABLE.
>> CHAIR D. FLORES: WE WOULD NOT BE A LANDLORD OR HOUSING DEVELO-
>> CHANCELLOR MAY: IT MAY NOT BE ON OUR LAND.
WE COULD DO IT SEVERAL DIFFERENT WAYS.
>> THE MOST POPULAR P3 IS HOUSING.
AND THE MOST -- RECENTLY IS THE LIVING-LEARNING CENTERS.
MY EX, BLAND, DID A DEAL WITH TEXTEXAS A&M, THEY DO A STEM AND ENGINEERING PROGRAM TO THEN TRANSFER.
IT'S A WHOLE LIVING, LEARNING COMMUNITY.
AND THERE IS A PERIFERATION OF THOSE FORMS WHO DO THIS, HICH
[02:45:02]
ARE NO MONEY UT FROM US.AND THAT'S HAT WE DO WITH THE GRANT.
THEY MAKE THEIR MONEY, IF YOU WILL, AND PAY US OFF THE RENTAL RATES.
THE ONES I HAVE SEEN GO SOUTH IS WHERE PEOPLE OVERESTIMATED THE MARKET.
YOU COME THROUGH WITH THESE ON A CONSERVATIVE BASIS.
IF THE MARKETS SAYS 4, YOU BUILD 200.
THAT'S THE WAY YOU MAKE SURE A P3 BECOMES PROFITABLY.
>> CHAIR D. FLORES: IS IT POSSIBLE THROUGH P3 PARTNERSHIPS THAT WE CAN MAXIMIZE BOND DOLLARS? IS THAT AN ACCURATE STATEMENT OR NOT?
>> I THINK IN THE SIMPLEST SENSE, YOU CAN LEVERAGE BOND DOLLARS BY UTILIZING P3'S AND EXPANDING THE ABILITY TO USE THE MONEY IN A MORE EXPANSIVE FASHION.
ONE THING KENNON TOUCHED ON AND JOHN MENTIONED, WHEN YOU STRUCTURE A P3, YOU BUILD-IN PROTECTIONS FOR THE PUBLIC ENTITY ON THE BACK SIDE.
I'M NOT FAMILIAR WITH A GREAT MANY P'S THAT FAILED BECAUSE THEY ARE RELATIVELY NEW IN THE SCHEME OF THINGS.
AND HAVEN'T SEEN THEIR USEFUL LIFE TO THE END.
WHEN YOU CAREFULLY CRAFT THE AGREEMENTS ON THE FRONT END, YOU MAKE PROVISION FOR WHAT WOULD HAPPEN IF A CALAMITOUS EVENTS OCCURRED AND YOU PROTECT THE PUBLIC ENTITY ON BONDED INDEBTEDNESS OR ANYTHING INCURRED BY THE P3.
WE WOULD BE VERY CAREFUL IN THAT REGARD TOO.
>> CHAIR D. FLORES: AGAIN, IF WE'RE ABLE TO MAXIMIZE BOND DOLLARS THROUGH P3 PROJECTS THAT WE WOULD MOVE FORWARD ON, WOULD THAT FREE UP BOND MONEY TO THEN PUT ON THE LIST SOME OF THOSE PROJECTS WE COULDN'T PUT ON UNDER THE CURRENT ONE BECAUSE WE FREED UP DOLLARS?
WE HAVE 2 BILLION-DOLLAR LIST.
WE TOOK OUT ANY P3 IN THE $2 BILLION LIST AND SAID, NO, WE'RE TALK ABOUT GEOBOND MONEY.
PEOPLE HAD HOUSING AND OTHER THINGS IN THE MASTER PLANS AS POTENTIAL P3 OR BOND PROJECTS OR WHATEVER. WE SAID, WE'RE GOING TO WAIT AND LOOK AT THOSE.
THE FIRST PART WAS THE ELECTION.
SO IT DOES MAKE IT EASIER FOR US TO SATISFY THE REQUIREMENTS OF WHAT WAS ON THE WHOLE LIST.
HOWEVER, WE'RE STILL GOING TO GO THROUGH THE LIST ON AN ANNUAL BASIS AND DETERMINE WHAT MAKES SENSE TODAY.
THAT'S JUST PART OF THE PROCESS.
>> CHANCELLOR MAY: NO, I AGREE.
I THINK ON MOST OF OUR CAMPUSES, IN THE SHORT RUN WE PROBABLY WON'T BE LOOKING T P3'S BECAUSE WE'RE FOCUSED ON ACADEMIC BUILDING AND STUDENT SPACE AND MEETING THE NEED.
WHAT WE DO DOWNTOWN IS A WHOLE DIFFERENT THING BECAUSE THAT'S NOTHING IS THERE.
THERE IS OPPORTUNITIES TO O THINGS DIFFERENTLY THAN N THE CAMPUSES. THE LAND IS AVAILABLE AND OPPORTUNITIES DOWNTOWN, NEW TAX CREDITS ELIGIBLE FOR LAND DOWNTOWN.
YOU INCREMENTAL, TAX INCREMENT FUNDING ELIGIBLE.
IS AS WE LOOK AT SPACE, WHEN YOU GET IN THE SUBURBS, IT'S LESS AVAILABLE OUT THERE.
>> CHAIR D. FLORES: THAT RAISES ANOTHER QUESTION.
SINCE WE HAVE FUNDING OPPORTUNITIES, IF I'M INTERPRETING THAT FOR THE DOWNTOWN CAMPUS, WE HAVE 300 SOME ODD MILLION PUT ASIDE FOR THE EL CENTRO CAMPUS.
DOES THAT MEAN WE DON'T NEED TO USE IT ALL BECAUSE OF THE NEW TAX CREDITS AND OTHER THINGS YOU'VE ALKED ABOUT?
>> WELL, THAT GETS BACK TO THE FIRST QUESTION.
IF MONEY IS FREED UP, WE CAN USE THEM ON OTHER PROJECTS.
>> CHAIR D. FLORES: THAT'S WHERE I'M GOING.
>> CHANCELLOR MAY: YES, IT IS.
>> CHAIR D. FLORES: USING NEW TAX CREDITS.
>> CHANCELLOR MAY: THAT WOULD BE TRUE.
>> CHAIR D. FLORES: IT TURNS OUT, INSTEAD OF NEEDING THE 300 MILLION, FOR EL CENTRO, 50 MILLION IS FREED UP TO GO TO ANOTHER PROJECT.
LET'S ALSO TAKE HE 3P AND MAKE IT A PUBLIC/PUBLIC PARTNERSHIP.
NOT JUST A PUBLIC/PRIVATE PARTNERSHIP.
I CALL I P3, MEANING YOU PARTNER WITH OTHER GOVERNMENTAL ENTITIES, CITY, COUNTY .
IN FACT, WE'RE WATCHING IN NORTH
[02:50:01]
CAROLINA SOME PUBLIC/PUBLIC PARTNERSHIPS WHERE THE SCHOOL SYSTEMS ARE BUILDING EARLY COLLEGE HIGH CHOOL SPACES ON COMMUNITY COLLEGE CAMPUSES.BUT THAT MEANS YOU DON'T HAVE TO TAKE YOUR BOND MONEY AND BUILD A HIGH SCHOOL ON A COMMUNITY COLLEGE CAMPUS.
WHAT A BEAUTIFUL FIT FOR THE STUDENTS TAKING, IF I MAY FINISH MY THOUGHT.
WE HAD IN NORTH CAROLINA, 126 EARLY COLLEGE HIGH SCHOOLS.
SOME ARE PUBLIC SCHOOLS, SOME ARE HOSPITAL/PUBLIC SCHOOLS.
THEY ARE UNIVERSITY COOPERATIVE, LEADERSHIP ACADEMIES.
WE HAVE 24,000 STUDENTS IN NORTH CAROLINA IN EARLY HIGH SCHOOL COLLEGE PROGRAMS, AND GRADUATING LEFT AND RIGHT HAND OVER FIST.
BECAUSE COMMUNITY COLLEGES CAN'T NECESSARILY AFFORD AND THE COUNTY IS THE FUNDER, THEY MAY FUND K-12 ON A CAMPUS.
DURING THE TRADITIONAL DAY, STUDENTS TAKING HIGH SCHOOL AND COMMUNITY COLLEGE COURSES, WHEN THE SCHOOL DAY IS OVER FOR THE HIGH SCHOOL, THE SPACE IS AVAILABLE FOR NIGHT CLASSES.
SO YOU HAVE A PUBLIC/PUBLIC PARTNERSHIP.
I NEEDED TO GET THAT OFF OF MY HEART.
>> I DON'T HAVE A GREAT DEAL TO ADD.
THE TEXAS STATUTE CONTEMPLATED PUBLIC/PUBLIC PARTNERSHIPS AS WELL AS PUBLIC/PRIVATE.
AS WE TALK THE INNOVATION CENTER AND CAMPUS, IT'S TOO EARLY TO PUT A FINE POINT ON HOW MUCH MONEY --
>> CHAIR D. FLORES: I UNDERSTAND.
BUT THERE IS A POSSIBILITY THERE.
>> WOULD IT BE MORE THAT ALL THOSE ALTERNATE FINANCES, HE TIFF, TO ENHANCE THE PROJECTS WE'RE PROPOSING WITH A BETTER PROJECT THAN TO ACTUALLY SAVE MONEY TO FREE UP SOMEWHERE ELSE? OR EITHER WAY?
>> CHANCELLOR MAY: I THINK IT'S EITHER WAY ON THAT.
AND WE CERTAINLY DON'T WANT TO SPEND MONEY JUST BECAUSE WE HAVE IT FOR THAT -- THAT WOULDN'T BE PRUDENT.
WE NEED TO LEVERAGE WHAT WE HAVE.
BUT WE WORKED REALLY HARD TO, YOU KNOW, THE INITIAL LIST, WE GOT IT DOWN NOT THAT HARD TO ABOUT 1.4 MILLION, AND THAT LAST 300 MILLION WERE CUT, WERE THINGS WE NEEDED TO DO THAT'S ON THERE.
AS WE'VE GOT A LIST SHOULD SOMETHING FREE UP THAT WE COULD GO BACK AND APPLY THIS TO.
WE DIDN'T WANT TO TAKE THE RISK OF EVER BEING IN POSITION WHERE WE IOLATE THE PROMISE TO THE TAXPAYERS THAT WE WOULD NOT INCREASE TAXES.
>> CHAIR D. FLORES: QUESTION ON THE POLICY THAT THANKS FOR GETTING THESE COPIES FOR US.
THERE IS THE PUBLIC-PRIVATE PARTNERSHIP POLICY BUT THERE IS NOT A PUBLIC-PUBLIC POLICY.
ARE PUBLIC-PUBLIC PARTNERSHIPS ALLOWED IN THE STATE OF TEXAS?
IT'S CONTEMPLATED UNDER THE PUBLIC/PRIVATE.
THEY WORD ARE PUT IT TOGETHER.
>> CHAIR D. FLORES: EITHER THAT OR PUT THE PUBLIC-PUBLIC WORDING IN HERE TOO.
>> WE CAN PUT A PARAENTHETICAL.
>> IT'S A DEFINITION ISSUE AS OPPOSED TO A POLICY ISSUE.
I THINK THE POLICY LANGUAGE TRACKS HE STATUTE TO THE POINT, WE CAN LOOK AT THAT.
>> MADAM CHAIR, I WANT TO TALK QUICKLY ABOUT SOME OTHER PARTNERSHIPS TO THINK ABOUT.
I THOUGHT ABOUT EDUCATION AND CITY SUCCESS.
BUT YOU ALREADY HAVE GREAT ARTICULATION AGREEMENTS, I NOTICE WITH NUMBER OF PLACE, YOU HAVE A NUMBER IN PLACE WITH TEXAS UNIVERSITIES AND UNIVERSITY OF OKLAHOMA.
WE HAVE THE SAME IN NORTH CAROLINA.
ATHIS IS SOMETHING YOU MIGHT WAT TO THINK ABOUT F THERE ARE NEW HHIGH SCHOOLS GOING UP, AND YOU HAVE LAND, GET JOINT USE OF SPACE, WHICH IS NEAT AND MAKES A LOT OF SENSE.
LET ME TALK ABOUT ECONOMIC AND WORKFORCE DEVELOPMENT PARTNERSHIPS BECAUSE THOSE ARE IMPORTANT.
THAT P3 ENABLES START-UP BUSINESSES TO BE HOUSED IN COLLEGE FACILITIES AND PAY RENTAL FEES AT A BELOW-MARKET RATE.
OFTEN USED NOT IN VIOLATION, WE HAVE SOMETHING CALLED THE UM STEAD ACT, YOU CAN'T COMPETE WITH THE PRIVATE SECTOR.
HERE'S WHAT YOU CAN DO WITH THE INCUBATOR SPACES.
THESE MIGHT BE INTERESTING TO YOU.
YOU CAN ALLOW AN INCUBATOR AND COMMUNITY COLLEGES MAY PERMIT THE USE OF PERSONNEL OR FACILITIES N SUPPORT OF A PRIVATE/BUSINESS ENTERPRISE LOCATED ONLY ON A COMMUNITY
[02:55:03]
COLLEGE CAMPUS OR SERVICE AREA THAT INCLUDE: SALE OF PRODUCTS RAISED OR PRODUCED INCIDENT TO VIT CULTURE, GROWING GRAPES AND MAKING WINE, DISTILLATION, MAKING ALCOHOL, OR FERMENTATION, MAKING BEER.IN OUR STATUTE, YOU CAN HAVE IT HOUSED IN ONE OUR YOUR INCUBATORS FOR THE SALE OF WINE MAKING, LIQUOR MAKING AND FERMENTATION, WE TEACH THOSE AT NORTH CAROLINA.
SMALL BUSINESS INCUBATORS, PRODUCT TESTING SERVICES, VIDEO CONFERENCING SERVICES, OPERATION OF A MILITARY BUSINESS CENTER, AN EVENT VENUE, OR INTERACTIVE THREE-DIMENSIONAL TECHNOLOGY.
WHAT WE HAVE DONE IN NORTH CAROLINA THAT YOU MIGHT CONSICONSIDERIN SPACES IN A PUBE PARTNERSHIP IS TO HAVE INCUBATION FACILITIES THAT ENABLE START-UPS TO GET OFF THE GROUND.
>> CHANCELLOR MAY: WE HAVE HISTORICALLY.
IN THE PLANS IN THE FUTURE, ALTHOUGH, I WOULD SAY THAT SPACE IS REALLY GROWING OUT IN DALLAS.
WE WORK PUTTING IN EXPANDING COMMON DESK, YOU'VE GOT A COUPLE FUNDED BY MUNICIPALITIES THAT ARE HERE.
WE HAVE TO LOOK AT THAT PRETTY CLOSELY IN THE FUTURE.
BUT HISTORICALLY, THAT'S A PART OF WHAT WE HAVE DONE.
WHETHER OR NOT WE CAN BE COMPETITIVE.
ONE OF THE OTHER COMPETITIVE ADVANTAGES FOR THE BUSINESSES, IS THAT BECAUSE WE HAVE SPACE IN HUB ZONES AND OTHER THINGS TO THAT ADVANTAGE.
>> WE TALKED ABOUT CASH FLOW THIS MORNING.
SO I'M NOT GOING TO WEAR THAT OUT.
UNLESS THERE ARE QUESTIONS, WE'LL TAKE A QUICK BREAK AND COME BACK AND TO THE CASE STUDY AND WRAP IT UP AFTER
>> THE NEXT ONE WILL REQUIRE A LITTLE READING ON YOUR PART AT THE BEGINNING.
LET'S TALK ABOUT PROSPEROUS COMMUNITY COLLEGE, A HYPOTHETICAL INSTITUTION IN AMERICA.
I THINK YOU HAD IT BEFORE YOU.
I'LL ADVANCE IF SLIDE IF I WHEN YOU WANT.
LOOK UP TO ME WHEN YOU COMPLETELY FINISH READING THE TWO PAGES, THIS ONE, 12 AND 13 AND THEN WE'LL HAVE A CONVERSATION ABOUT PROSPEROUS COMMUNITY COLLEGE.
>> CHAIR D. FLORES: I NEED TO LOCATE THAT.
>> THE BOTTOM OF SLIDE 12 AND 13.
>> CHAIR D. FLORES: THANK YOU.
>> WE GOT FAST READERS IN THE ROOM.
I'M ONE OF THOSE VERY-WORD READERS.
WHAT WOULD THE LAST QUESTION, WHAT WOULD REVIEW OF INSTITUTIONAL AFFAIRS LOOK LIKE FOR PROSPEROUS COMMUNITY COLLEGE? AND THIS IS REALLY, I SAY IT'S HYPOTHETICAL.
IT IS, BUT IT'S SORT OF A COMPENDM OF THINGS I HAVE SEEN AND RUN ACROSS.
NO MATTER HOW GOOD YOU RE AS AN INSTITUTION, AND YOU ARE, IT
[03:00:01]
NEVER HURTS TO THINK ABOUT TAKING DIFFERENT VIEWS OF THINGS.DOES THAT MAKE SENSE? THAT'S WHY I DID THIS.
GOOD TO GREAT, IF YOU READ TIM COLLIN'S BOOK, THERE IS GOOD AND THERE IS GREAT.
IF YOU TAKE A LOOK, WHAT WOULD IT LOOK LIKE.
I'M GOING TO WALK YOU THROUGH SOME OF THIS.
WE AVE ABOUT 40 MINUTES AND THE LAST HING AND OPPORTUNITIES AND CHALLENGES.
LET'S TALK ABOUT THAT A MINUTE.
THE LARGEST INVESTMENT YOU SHOULD HAVE AT YOUR INSTITUTION OF COURSE IS INSTRUCTION.
$200 MILLION OF THIS INSTITUTION'S BUDGET IS MISSION DRIVEN, DIRECT BENEFIT TO STUDENTS.
GUIDED PATH WAY, DEMAND FOR SKILL LABOR.
LET ME TALK TO YOU ABOUT WHAT HAPPENED AT PROSPEROUS COMMUNITY COLLEGE.
THE PRESIDENT CHALLENGED AND CHARGED THE CHIEF FINANCIAL OFFICER, ASSOCIATE VP FOR ONED, AND ACADEMIC DEAN'S WITH LOOKING AT THE PORTFOLIO.
TO LOOK AT ROI, MAKE SENSE SOMETIMES.
FTE TRENDS, WHERE ARE HE DEMANDS.
COMPLETION RATES BECAUSE YOU ARE OFFERING IT DOESN'T MEAN PEOPLE ARE COMPLETING PROGRAMS. LABOR MARKET AND EMPLOYER DATA.
OCCUPATIONAL OUTCOMES AND DEAN'S RECOMMENDATIONS.
NOW, THE PRESIDENT WANTED TO HEAR FROM THE DEAN'S BECAUSE OF THE OWNERSHIP FACTOR.
YOU DON'T WANT ANYBODY TO CHANGE TO NECESSARILY.
WE'RE NOT TALKING ABOUT CHALLENGING THE PEDAGOGY OR CONTENT.
DO WE KEEP THE PROGRAMS? HOW DO WE LOOK AT THEM? WHAT'S HAPPENING TO TEACH OR PREPARE FOR THE WORKFORCE R TRANSFER.
THE BUSINESS APPROACH, TOOK A LOOK AT THE FOLLOWING.
WHERE THE PROGRAMS WERE HIGH OR LOW DEMAND.
AND WHETHER THERE WERE HIGH OR LOW COST.
AND THAT WAS SORT OF PUT INTO A GRID.
BUT THE LOW DEMAND PROGRAMS, WHETHER THEY WERE HIGH OR LOW COST WERE CAREFULLY SCRUTINIZED.
IF THEY ARE LOW DEMAND, YOU HAVE TO ASK YOURSELF, SHOULD WE DO THEM OR IS THERE A COMPELLING REASON WE CONTINUE TO DO THEM.
THE FINDINGS WERE INTERESTING.
ABOUT 16% OF THE-- THESE ARE ALL CREDIT PROGRAMS, BY THE WAY, THEY ARE NOT CONTINUING EDUCATION NON-CREDITS.
ABOUT 16% OF THE CREDIT OFFERINGS, 19 HAD A NEGATIVE RETURN ON INVESTMENT AND LOW DEMAND.
THAT'S LOW-HANGING FRUIT FOR ME FROM THE CFO'S PERSPECTIVE.
IF YOUR DEMAND IS LOW AND YOU ARE LOSING MONEY, WHY DO YOU KEEP THE PROGRAMS.
AT THAT IF IT'S A SLIDE RULE CLASS, OKAY FINE, I CAN UNDERSTAND GETTING RID OF THAT.
IF IT'S JUST NOT THAT ANYBODY KNOWS THAT YOU'VE EVEN GOT IT, SOMETIMES A LITTLE BIT OF ADVERTISING CAN BRING THAT UP.
>> YOU ARE AS SMART A BOARD AS I WORKED WITH.
MR. RITER WAS AHEAD OF MY, YOU ARE ALMOST AHEAD OF ME.
IF YOU WILL ALLOW ME, I PROMISE I'LL ADDRESS THIS.
YOU DIDN'T NEED ME TO COME, THIS IS A GREAT BOARD, SIR.
25% OR 30 PROGRAMS HAD LOW DEMAND BUT A POSITIVE RETURN ON INVESTMENT.
SO THE OPTIONS ROI WOULD BE ALL OF YOUR FACULTY COSTS, ALL OF YOUR SUPPLY AND MATERIAL COST.
THE EQUIPMENT, I ACK THAT OUT.
BECAUSE EQUIPMENT IS EQUIPMENT.
CLEARLY, IT CAN MAKE FOR A HIGH-COST PROGRAM.
BUT USUALLY LABOR AND HIGH COST MAKES IT EXPENSIVE.
YOU HAVE TO HIRE SOMEBODY TO TEACH IT AND SUPPLIES TO DO IT.
I OOK EQUIPMENT OUT BECAUSE IT MESSES THE WATER UP.
>> CHANCELLOR MAY: THERE ARE LOW DEMAND PROGRAMS AND HIGH ROI, HOW IS THAT POSSIBLE?
>> I WAS A LIBERAL ARTS UNDERGRAD.
I WENT WILDLY ANOTHER DIRECTION IN GRAD SCHOOL, PUBLIC ADMINISTRATION.
IF I CAN PACK A LOT OF STUDENTS, I'M A LIBERAL ARTS STUDENT, IF I CAN PACK A LOT OF STUDENTS IN ENGLISH, HISTORY, SOCIOLOGY, ANTHROPOLOGY, MY LABOR COST IS
[03:05:02]
LOW BUT RETURN IS HIGHER.IT CAN BE LOW COST R HIGH DEMAND.
CONVERSELY IF YOU HAVE AN EXPENSIVE PROGRAM TO OFFER BECAUSE YOU TEACH AN ALLIED HEALTH PROGRAM, BECAUSE THERE IS COMMUNITY DEMAND FOR CERTAIN OCCUPATIONS IN THAT STRATA, YOU HAVE HIGH COST BUT YOU COULD HAVE VERY LOW PARTICIPATION.
PART OF THE IT COMES BACK TO WHAT YOU ARE TALKING.
>> CHAIR D. FLORES: OR LOW PARTICIPATION BECAUSE WE CAN ONLY TAKE A CERTAIN NUMBER OF STUDENTS.
>> RESTRICTED BY LICENSURE RANGE. YOU CAN ONLY TEACH SO MANY AT A TIME.
29% AT BOTH GROWING ENROLLMENTS AND A POSITIVE ROI.
I'M THINKING YOU TO FEED THOSE THINGS.
IF YOU GOT BOTH GROWING ENROLLMENT AND MAKING MONEY ON THE PROGRAM, THAT'S A NO-BRAINER.
AND ROUGHLY 30% HAD A HIGH NEGATIVE ROI, HIGHLY NEGATIVE ROI, REALLY LOSINGS MONEY BUT ENROLLMENT WAS BEGINNING TO GROW.
BASED UPON THAT ANALYSIS, THE DEAN'S WERE CHARGED WITH DETERMINING WHETHER TO RECOMMEND FOR THE 19-LOW-DEMAND NEGATIVE ROI ROGRAMS TO A, SUBSIDIZE NEGATIVE ROI WITH INDUSTRY SUPPORT OR EXTERNAL FUNDING.
THAT SAYS, YOU KNOW, WE MAY HAVE SOME LOW DEMAND, EGATIVE ROI.
DO WE KEEP THEM ON LIFE SUPPORT? DO WE FIND MONEY? I MEAN, IT SEEMS LIKE WE'RE DOING A LOT OF WORK TO KEEP THESE PROGRAMS. SO YOU HAVE TO HAVE A VERY DELIBERATE CONVERSATION.
IDENTIFY WHAT INITIAL RESOURCES THEY ARE LACKING TO MAKE THEM SUCCESSFUL AND GO FORTH.
WHAT WE'RE FINDING IN COMMUNITY COLLEGES, SOMETIMES WE SPLIT THINGS INTO INDIVIDUAL CERTIFICATES OR INDIVIDUAL DIPLOMAS.
WHEN IF YOU PUT THEM TOGETHER, YOU MIGHT ACTUALLY HAVE A DESCENT PROGRAM, LIKE REVERSE ENGINEERING OR DEVEST.
SUNSET, STOP DOING IT AND USE THE MONEY SOMEWHERE ELSE.
AN EXAMPLE OF ONE OF THESE, YOU ARE GOING TO BE SHOCKED.
AN EXAMPLE OF ONE OF THESE AT PROSPEROUS COMMUNITY COLLEGE WAS AIR CONDITIONING, HEATING, REFRIGERATION TECHNOLOGY.
HOW COULD THAT BE? HOW COULD THAT BE? THE LABOR MARKET DATA SAID, THERE IS DEMAND.
SO HOW IN THE WORLD CAN YOU HAVE LOW DEMAND AND NEGATIVE ROI? YOUR FACULTY AREN'T CHEAP.
THEY CAN MAKE MORE DOING IT THAN TEACHING IT.
MY WIFE THE NURSE WITH MAKE MORE PRACTICING THAN TEACHING.
SHE KEPT SAYING, ARE YOU SURE YOU WANT ME TO TEACH? NO, YOU KEEP PRACTICING NURSING.
YOU START LOOKING AT THE REASONS WHY IT COULD BE LACK OF AWARENESS, LACK OF EMPLOYMENT OPPORTUNITY, LACK OF RECRUIT: LACK OF, LACK OF.
THE POINT IS AS YOU DO THE GOOD WORK IN YOUR PROGRAM REVIEW, SOMETIMES YOU WILL KEEP PROGRAMS BECAUSE THEY ARE FRONT PORCH OR ONRAMP PROGRAMS. THEY MIGHT GET SOMEONE IN THE COLLEGE WHO OTHERWISE MIGHT NOT.
OR YOU HAVE AN EMPLOYER, WHILE THEY DON'T HAVE LARGE NUMBERS, THEY NEED THESE SKILLED TRAINED LABOR AND YOU ARE THE COMMUNITY'S COLLEGE.
SOMETIMES YOU WILL TAKE A LITTLE BIT F A LOSS TO DO IT.
THEY LOOKED AT PROGRAM REALIGNMENT, WORKFORCE DEMAND.
HERE'S ONE THAT 'LL TALK ABOUT.
A NEW FOCUS ON COURSE SCHEDULING AND CLASSROOM ASSIGNMENT.
MAYBE THE CLASSES WEREN'T OFFERED AT A TIME CONVENIENT TO WORKING ADULTS.
THEY LOOKED AT AN ANALYSIS OF FACULTY RELEASE TIME, REASSIGNMENTS, AND TEACHING OVERLOADS.
THE CLOSER ALIGNMENT OF THE ACADEMIC PORTFOLIO WITH INSTITUTIONAL PRIORITIES AND REVISITED ONLINE OPTIONS.
I GUESS TO SAY THAT AS YOU ARE THINKING ABOUT BONDS AND YOUR STRATEGIC PLAN AND WHERE YOU ARE HEADED, THINKING ABOUT LABOR MARKET ANALYSIS, IT'S EVER-MORE IMPORTANT AS PROSPEROUS COMMUNITY COLLEGE FOUND OUT AND SUNSETTED A NUMBER OF PROGRAMS AND OOK MONIES AND REPURPOSED THEM INTO OTHER ACADEMIC AREAS.
IT DOESN'T REFLECT POORLY ON THE INSTITUTION.
[03:10:03]
INTENTIONAL AND THOUGHTFUL.AFTER ALL, IT'S THE BIGGEST AMOUNT OF MONEY AT ANY FUNCTION IT'S HEALTHY.
>> FIRST OFF, IN OUR TRANSFERS LEADING US THROUGH THE FACULTY LOAD AND WORKFORCE ALEADERALIGNMENTEXERCISES -- INSTRUCTIONAL PROGRAM REVIEW, WE HAVE SO MANY STUDENTS WHO TAKE CLASSES THAT DON'T LEAD TO DEGREES.
THEY ACCUMULATE UNNECESSARY CREDIT.
BY LOOKING AT ENROLLMENT GROWTH AND ROI, DO YOU CAPTURE THE FACT THAT THERE IS A LOT OF WASTED TIME IN THE CLASSROOM BY STUDENTS? UTILITY OF A COURSE INTO THAT ANALYSIS?
>> I THINK THERE ARE A COUPLE OF WAYS.
I ALMOST WISH I HAD A PAD SO I HAD SCRIBBLE DOWN THE QUESTIONS YOU RAISED.
ONE THING WE FOUND IN THE NORTH CAROLINA SYSTEM, WE CALLED THEM BASKET FULL OF COURSES WITH REALLY NOTHING LEFT.
THEY CHURNED AND TOOK COURSES.
WE TRIED A COUPLE OF THINGS, BASIC SKILLS LITERACY.
DO YOU DO LITERACY BASIC SKILLS? IF YOU GIVE THEM A BITE AT THE APPLE TAKING LITERACY COURSES, SOMETHING THEY REALLY THINK THEY WANT TO DO, LET THEM TRY IT.
THEY PERSIST IN LITERACY AND CAN'T WAIT TO GET INTO THOSE DISCIPLINES.
SECOND THING, A MOVEMENT ACROSS THE COUNTRY IS SHORTENING THE NUMBER OF CREDIT HOURS TO DEGREE.
UNIVERSITIES AVE DONE THIS FOR SOME TIME.
WHERE THEY SAID, WHAT IS MAGICAL ABOUT TAKING 124 CREDIT HOURS? CLEARLY, IN ENGINEERING OR MEDICINE OR SOMETHING, OU HAVE TO HAVE THOSE, YOU HAVE TO TAKE A CERTAIN NUMBER OF HOURS.
BUT DO YOU REALLY NEED ALL THE OTHER HOURS TO ACCUMULATE, IF YOU WILL? RIGHT? SO THERE HAS BEEN A REVISITING OF HOW MANY HOURS ARE TRULY REQUIRED TO MASTER THE MATERIAL.
PEOPLE COME TO COMMUNITY COLLEGES HOPEFULLY WITH A FOCUS TO GET A MARKETABLE SKILL, MARKETABLE CREDENTIAL AND THAT SORT OF THING.
AND TRUTHFULLY, SOMETIMES YOU HAVE TO SAY WHAT WE'RE TEACHING IS JUST NOT RELEVANT TO THE MARKET RIGHT NOW IN CERTAIN THINGS.
LIBERAL ARTS YOU DO A CORE OF LLIBERAL ARTS AND HUMANITIES.
WHAT DO WE NEED TO FOCUS ON AS THE TRUE REQUISITE CLASSES THAT IMPART THE KNOWLEDGE.
IT'S AN EVOLUTIONARY THING IN COMMUNITY COLLEGES AND UNIVERSITIES HAVE HAD TO START DOING SOME OF THAT WORK TOO.
DOES THAT MAKE SENSE? DR. MAY, THAT'S WHAT I'VE SEEN.
BUT WE'VE REDUCED THEM ALL TO 0 HOURS AT THIS POINT.
BELIEVE IT OR NOT, YOU GET TO THIS 68 TO 72 IT SEEMS TRANGE.
THOSE ADDITIONAL COURSES CAN WEIGH.
AND I THINK PATHWAYS HAVE DONE, I THINK GUIDED PATHWAYS.
>> CHANCELLOR MAY: IT'S HELPED.
OBVIOUSLY OBVIOUSLY, I MEAN THERE ARE A LOT OF REASONS TO DO IT THAT WAY.
STUDENTSTHAT TRANSFER WITH AN ASSOCIATES DEGREE WILL OUT PERFORM STUDENTS GENERALLY, AND GRADUATE FASTER WITH A HIGHER GPA AND HAVE IT DONE WITH LESS DEBT.
THE OTHER PIECE OF THAT IS, YOU ARE ONLY, YOUR PELL GRANT TIMES OUT AT 145 SEMESTER HOURS.
WE WANT TO MAKE SURE THE STUDENTS ARE NOT PICKING UP ADDITIONAL COURSES, NOT BEING ABLE TO COMPLETE THE BACHELOR'S DEGREE IF THAT'S THE GOAL BY HAVING MORE HOURS THAN REQUIRED.
MS. ZIMMERMANN WAS BOTHERED BY THE WORD PURIFICATION.
SALARIES AND BENEFITS ARE THE LARGEST SINGLE XPENSE, HUMAN
[03:15:02]
CAPITAL.HUMAN CAPITAL, PEOPLE ARE THE MOST VALUABLE RESOURCE.
ATTRACTING, DEVELOPING AND RETAINING HIGH QUALITY.
THAT COMES FROM YOUR STRATEGIC PRIORITIES.
WHAT WE'RE TALKING ABOUT IS A SPAN OF CONTROL ANALYSIS, LAYERS THIRD BULLET IS IMPORTANT IF YOU GO THROUGH, QUITE FRANKLY, THE INSTRUCTIONAL PROGRAM REVIEW AND YOU FIND THAT YOU NEED TO DISCONTINUE SOME OF WHAT YOU ARE TEACHING, THE MARKET PLACE NOW SUGGESTS BECAUSE THESE ARE VALUABLE, THEY HAVE BEEN WITH THE INSTITUTION, THEY HAVE GREAT SKILLS, MAYBE THEY CAN TEACH SOMETHING DIFFERENT.
>> CHAIR D. FLORES: MAYBE THEY HAVE THE 18-HOURS IN THE DISCIPLINE.
SOME PEOPLE HAVE -- I MEAN, THERE ARE PEOPLE WHO TEACH POLITICAL SCIENCE, SOCIOLOGY AND HISTORY BECAUSE THEY TOOK THOSE COURSE IN COLLEGE, QUITE FRANKLY, AND HAVE A MASTERS.
I'LL DROP THAT FROM THE FUTURE PRESENTATION.
IT'S A BORROWED WORD FROM PROSPEROUS COMMUNITY COLLEGE.
LET'S TALK ABOUT THOSE THREE QUICKLY.
SPAN AND CONTROL ANALYSIS STAFFING RATIOS AND ORGANIZATIONS.
EVERYBODY FAMILIAR WITH THE SPAN AND CONTROL CONCEPT? OKAY.
SO SPAN AND CONTROL IS HOW MANY PEOPLE IS SOMEONE SUPERVISING? ALL RIGHT? SO LET ME TALK A LITTLE ABOUT THAT.
GENERALLY LARGER SPANS OF CONTROL ARE FOUND IN LARGER ORGANIZATIONS, MEANING LARGE ORGANIZATIONS, YOU MIGHT HAVE ONE PERSON SUPERVISING MANY.
THERE IS MINIMAL AND INFREQUENT CHANGE IN THE WORK.
THERE IS A CLEAR COPE OF WORK AND A HIGH USE OF TECHNOLOGY.
YOU MIGHT HAVE A SUPERVISOR, MANAGER, AN ASSOCIATE DEAN, SOMEONE WHO IS OVERSEEING A LARGE NUMBER OF PEOPLE.
>> CHANCELLOR MAY: WHEN YOU SAY SPAN OF CONTROL, THE DIRECT REPORTS AN INDIVIDUAL MANAGER HAS OR --
>> THE NUMBER OF DIRECT REPORTS THAT A SUPERVISOR HAS.
>> CHAIR D. FLORES: YOU ARE NOT TALKING ABOUT A DEPARTMENT? WHERE THERE IS DIRECT REPORTS TO THE DEPARTMENT HEAD AND UNDER THE DIRECT REPORTS, THOSE ARE LAYERS OF MANAGEMENT?
>> I'LL TELL YOU THE PRESIDENT AT PROSPEROUS COMMUNITY COLLEGE HAD THE SAME QUESTION.
WANTINGTO KNOW DO WE HAVE A LOT OF ONE-TO-ONE REPORTING RELATIONSHIPS? AND SOMETIMES THE OLD CHART WILL TELL YOU THAT AND SOMETIMES IT WON'T.
OR DO WE HAVE A LOT OF SUPERVISORS, AND MULTIPLE PEOPLE AS DIRECTLY REPORTING TO.
HOW ARE WE BREAKING OUT OUR SUPERVISOR RESPONSIBILITIES? BECAUSE YOU CAN EAT UP A LOT OF EXPENSE IN MANAGEMENT THAT YOU MAY OR MAY NOT NEED.
BUSINESS INDUSTRY DOES THIS ALL THE TIME.
SOMETHING FELT OFF TO THE PRESIDENT.
IT WAS A LARGE INSTITUTION BUT HAD A LOT OF ONE TO ONE AND ONE TO TWO EMPLOYER TO SUPERVISOR RATIOS.
IN TERMS OF WORK COMPLEXITY, THE SIMPLER TAX BEING MANAGED BY LARGER NUMBERS OF SUPERVISORS, WHICH MAKE NO SENSE.
WHILE A STUDY, THERE WAS A STUDY COMMISSION TO DETERMINE HOW TO ADDRESS THAT CONCERN, AND WHAT BECAME CLEAR IS THAT LACKING INTERNAL MOBILITY IN ORDER TO MOVE UP IN THE ORGANIZATION AND THE OPPORTUNITY FOR ADVANCEMENT, PEOPLE HAD BEEN PLACED ONES OR TWOS OVER THE OTHER GIVING THEM A SUPERVISOR RESPONSIBILITY AND YOU AN PAY THEM MORE.
>> CHAIR D. FLORES: MAKE MORE MONEY?
THAT'S NOT NECESSARILY TO THE BENEFIT OF THE INSTITUTION.
I DON'T KNOW HOW IT SERVES STUDENTS ANY BETTER, WHICH IS ONE OF THE PRINCIPLES.
BUT IT DOESN'T NECESSARILY SE SERVE.
IN TERMS OF LAYERS OF MANAGEMENT, IF THE SPANS OR CONTROL ARE NARROW, THERE MUST BE MULTIPLE LAYERS OF MANAGEMENT.
AND WHAT THE PRESIDENT CAME TO REALIZE, I BELIEVE, WAS EVEN IN AFFLUENT AND HIGHLY FUNCTIONAL INSTITUTIONS THAT ARE OPPORTUNITIES FOR EFFICIENCIES.
IT BEGS THE QUESTION, WE NEVER STOP LOOKING HOW TO BE MORE EFFICIENT.
NEVER STOP LOOKING FOR THOSE OPPORTUNITIES.
JUST BECAUSE WE HAVE RESOURCES DOESN'T GIVE US AN OUT FOR LOOKING AT INSTITUTIONAL EFFICIENCIES.
>> D. ZIMMERMANN: IT MAKES BETTER SENSE THAN PERIFICATION.
>> BASED ON YOUR EXPERIENCE, WHAT ARE THE TOP THREE AREAS WHERE LARGE, MULTICAMPUS URBAN DISTRICT CAN OOK FOR EFFICIENCIES?
[03:20:03]
MULTICAMPUS, LARGE, URBAN, SUBURBAN.YOU HAVE TO BE CAREFUL NOT TO REPLICATE ADMINISTRATIVE FUNCTIONS AT EVERY SINGLE LOCATION.
IF THIF IT THERE IS ECONOMIES OF STAFF, DO YOU NEED THE SAME COMPLIMENT OF CFO AND STAFF AT EVERY SINGLE CAMPUS? DO YOU? I DON'T KNOW.
DO YOU NEED A BUDGET MANAGER FOR EACH DIVISION LIKE YOUR ACADEMIC DIVISION OR YOUR STUDENT SUCCESS DIVISION OR TECHNOLOGY DIVISION, DO YOU NEED A BUDGET MANAGER EMBEDDED OR DO YOU HAVE THAT ALL REPORT TO THE CFO OF THE SYSTEM? I THINK ON THE ADMIN SIDE, THE REPLICATION OF SUPPORT POSITIONS, ADMINISTRATIVE POSITIONS AND THOSE KINDS OF THINGS CAN LEAD TO WEAK ECONOMIES OF SCALE.
THAT'S BEEN MY EXPERIENCE IN LOOKING AT SMALLER INSTITUTIONS, WHETHER THERE IS ONE BUDGET SHOP INSTEAD OF SIX BUDGET SHOPS.
SO I THINK THAT TO ME IS AN OPPORTUNITY FOR EFFICIENCY.
I WOULD BE QUICK TO COME BACK AND SAY, HOWEVER, THAT YOU SERVE STUDENTS ONE AT A TIME.
YOU DON'T SERVE FTE, YOU SERVE STUDENTS ONE AT A TIME.
AS SUCH, YOU MIGHT NEED TO REPLICATE AND PROBABLY SHOULD THOSE GOOD STUDENT SUPPORT SERVICES AT EVERY DUCATION.
WITHOUT FINANCIAL AID AND COACHING AND MENTORING, I NEVER WOULD HAVE MADE IT THROUGH GRAD SCHOOL.
>> THAT'S BEEN MY EXPERIENCE WITH LARGE AND URBAN, SUBURBAN, MULTICAMPUS INSTITUTIONS.
>> THAT'S NOT NECESSARILY EXCLUSIVE TO ADMINISTRATIVE FUNCTIONS.
I WAS GOING TO SAY THIS AND DID NOT.
HOW MANY DEANS DO YOU NEED? I'M NOT PICKING ON FACULTY.
I'M WHATEVERS ON THE STAFF SIDE DO YOU REALLY NEED? I THINK THAT'S WHERE LAYERS OF MANAGEMENT AND SPAN OF CONTROL VIEW, AT LEAST FOR PROSPEROUS COMMUNITY COLLEGE, THEY REALIZED THEY COULD PROBABLY HAVE, I'LL SAY IT THIS WAY.
IF HUMAN CAPITAL IS THEIR MOST VALUABLE ASSET, WOULDN'T IT AKE MORE SENSE TO INVEST IN ATTRACTING, DEVELOPING AND COMPENSATING, IGHLY-MOTIVATED PEOPLE, FEWER OF THEM THEN IT DOES HAVE GREATER NUMBERS AND NOT COMPENSATE THEM QUITE AS WELL.
I THINK IT'S A MANAGEMENT KIND OF -- DOES THAT MAKE SENSE?
>> CHAIR D. FLORES: COULD YOU REPEAT THAT PLEASE?
IF HUMAN CAPITAL IS THE MOST VALUABLE ASSET IN A EDUCATIONAL INSTITUTION AND IT IS.
DOES IT MAKE MORE SENSE TO ATTRACT, DEVELOP AND MAINTAIN, KEEP, RETAIN, YOUR HIGHLY-MOTIVATED, DIVERSE PEOPLE? AND HAVE FEWER OF THEM THEN TO HAVE MORE NUMBERS AND COMPENSATE THEM LESS WELL? THERE IS A BALANCE BETWEEN NUMBERS AND YOU'VE INVEST AND GROW AND DEVELOP YOUR PEOPLE.
THAT'S ONE OF YOUR PRIORITIES.
OR YOU NEED TO BE CAUTIOUS ABOUT OVERHIRING OR OVERSTAFFING OR MULTIPLE LAYERS OF MANAGEMENT.
AND YOU CAN'T PAY AS WELL IF YOU BURN THE MONEY UP OVER HERE VERSUS-- YEP.
>> CHAIR D. FLORES: FOR PERSONNEL FALLS UNDER THE FINANCE COMMITTEE.
>> CHAIR D. FLORES: IN TERMS OF GETTING INFORMATION TO THE BOARD ON RECOMMENDATIONS IF THE CHANCELLOR FEELS THE NEED TO COME FORWARD TO US.
DO YOU THINK THAT'S SOMETHING THAT MERITS LOOKING AT AS A FINANCE TEAM? I KNOW WE CAN'T DO A LOT BECAUSE WE DON'T HAVE A CHART.
BUT I LIKE SOME OF THESE POINTS BEING MADE.
>> WELL, ACTUALLY I HOPE YOU WILL TAKE ACTION LATER TODAY THAT DIRECTLY IMPACTS THIS DURING THE BOARD MEETING SINCE WHAT WE'RE REALLY DESCRIBING BECOMING ONE INSTITUTION DOES CHANGE, IT REQUIRES A CHANGE IN THE ORGANIZATIONAL STRUCTURE AND THE RESPONSIBILITIES OF INDIVIDUALS.
WE HAVE NO CHOICE TO GET THIS BECAUSE THE --
>> TO SHOW OURSELVES AS INDEPENDENT.
WE HAVE TO GO THE OPPOSITE WAY AND PROVE THAT WE'RE IN FACT ONE.
[03:25:01]
>> CHANCELLOR MAY: THAT'S GOING TO CHANGE SOME OF THE POSITIONS WE'RE TRYING TO FILL AND STRUCTURE OUT THERE RIGHT NOW.
>> P. RITTER: IT SEEMS LIKE WHAT WE'RE TALKING ABOUT IN TERMS OF PERSONNEL IS A CATEGORY POLICY ISSUE THAT IS NOT DISSIMILAR FROM THE CATEGORY POLICY ISSUES WITH BUDGETING.
AND ALSO, ACADEMIC STRUCTURE AND LOAD IS KIND OF A THIRD AREA.
ACCREDITATION IS A PART OF THE OF THAT.
I MEAN, THERE IS PROBABLY FOUR OR FIVE STRATEGIC AREAS OF POLICY DEVELOPMENT ATTENDANT TO MOVING TO A NETWORK MODEL.
THESE ARE THE CONSEQUENCES OF -- AND POLICY OF MANAGEMENT ISSUES I THINK NEED TO BE CONTEMPLATED IN THE NETWORK MODEL.
LOOKING AT SOME OF THESE BIG BUCKETS WE'RE STARTING TO DISCERN IN THIS CONVERSATION, MIGHT BE A GOOD WAY TO DO SOISM.
PLANNING AND OT JUST FINANCE, ACADEMIC AND OTHER PROGRAMS AS WELL.
>> AND AGAIN, GOING BACK TO THAG LIKE NURSING RIGHT NOW WHERE WE OPERATE THREE DISTINCT NURSING PROGRAMS, THAT CAN'T SURVIVE.
SO WE'LL HAVE TO GO BACK IN AND TAKE A LOOK AT SOME OF THESE IN THE SHORT RUN.
SOME OF THIS WILL SHAKE OUT ITSELF THROUGH ATTRITION OR SOME OTHER THINGS THAT WILL HAPPEN.
BUT YOU ARE CORRECT, THERE WILL BE A DAY WHEN WE'VE GOT TO SIT DOWN AND REALLY LOOK AT THAT.
I SAW YOU SMILE EARLIER, SONNY.
DO WE NEED SEVEN OF EVERYTHING? THAT'S THE QUESTION.
AND SOME THINGS UNDER THE EXISTING MODEL, YES.
I MEAN, IT'S SIMPLY REQUIRED TO DO IT.
WE'RE NOT DOING IT FOR THAT REASON.
WE'RE DOING IT TO ENSURE BETTER STUDENT SUCCESS, HELP THEM GRADUATE FASTER AND ON TIME AND EARN THE DEGREE THEY ARE PAYING FOR IN THE PROCESS.
BUT THERE WILL BE OTHER OUTCOMES THAT ARE GOING TO BE IMPORTANT AS WELL.
>> DO WE'VE ANY BENCHMARK DATA BASED ON THE OTHER INSTITUTIONS ON SPAN AND CONTROL ISSUES?
>> CHANCELLOR MAY: I DON'T HAVE OF ANYTHING --
>> I THINK THAT'S SOMETHING THA-
>> CHAIR D. FLORES: IS IT THE PEOPLE IN THE PUBLIC HEARING OUT THERE --
I'M NOT AWARE OF COMPARATORS BUT I THINK IT'S AN EXERCISE THAT WOULD SERVE US WELL.
AS WE MOVE TO A ONE-COLLEGE SYSTEM MODEL AS THE CHANCELLOR INDICATED, THERE IS INHERENT EFFICIENCIES THAT WILL REVEAL THEMSELVES.
A SPAN OF CONTROL STUDY I THINK WOULD REVEAL AND INFORM A LOT OF POLICY DECISIONS WE NEED TO MAKE AS WELL.
WE WOULD BE COMMITTED TO LOOKING AT ALL OF THAT.
>> CHANCELLOR MAY: THE TIMING IS GOOD.
I DO THINK THIS WOULD PROBABLY FOLLOW THE SHIFT IN THE PRESENTATION.
AND AT THAT POINT, THEN WE HAVE A STRUCTURE THAT WE'RE BUILDING TOWARD.
>> THAT WOULD BE IN THE SCOPE OF THE BCG WORK, WE MADE A BIG COMMITMENT TO?
>> CHANCELLOR MAY: I SEE IT AS FOUR PIECES OF IT.
WE'VE GOT CERTAINLY THE FACULTY LOAD AND WHAT THEY ARE DOING.
THE SECOND PIECE WOULD BE THE UTILIZATION OF SPACE AND THE CLASSROOMS ITSELF WITHIN THE ORGANIZATION.
THEN AS WE REALLY LOOK AT ARE WE ALIGNED PROGRAMMATICALLY THE RIGHT WAY? WE'VE BEEN LOOKING, I GUESS OPERATIONALLY SO.
BECAUSE WE'VE OPERATED AS SEVEN COLLEGES HISTORICALLY, THAT MEANS ONE COLLEGE HAS CHOSEN NOT TO OFFER ANY CLASSES ON FRIDAY.
WELL, ARE WE GOING TO NEED TO ALIGN THOSE AND HOW WILL THAT IMPACT SCHEDULING AND FACULTY ASSIGNMENT AND CLASSROOM UTILIZATION GOING FORWARD.
SO THOSE ARE KIND OF THE BIG BUCKETS THAT WE'RE LOOKING AT.
AND THEN, OBVIOUSLY, WE WANT TO BE COMPETITIVE IN THAT SPACE.
THERE ARE ROUGHLY 44 INSTITUTIONS IN NORTH TEXAS THAT OPERATE IN THIS SPACE.
WHETHER THEY E 22, TWO-YEAR COLLEGES OR PUBLIC/PRIVATE INSTITUTIONS TO COMPETE WITH.
WE WANT TO REALIZE WE'RE NOT ALONE IN THE MARKET.
>> GOOD QUESTIONS, GOOD DISCUSSION.
HOPEFULLY THAT PIECE WAS HELPFUL.
I'M GOING TO MOVE, MADAM CHAIR,
[03:30:03]
TO CAMPUS UTILIZATION.SO HERE WE'RE TALKING ABOUT FACILITIES, OPTIZATION AND SCHEDULING.
YOU HEARD THE ERM, MANAGEMENT WHILE WALKING AROUND.
THE PRESIDENT AND FO WERE APT TO VISIT THEIR MULTIPLE CAMPS, SPONTANEOUSLY VISIT, WALK AROUND.
KNOWING THAT ENROLLMENT WAS RELATIVELY FLAT THAT WAS A PRECEPT BEGINNING WITH THIS.
AND THAT WAS A COUPLE OF HUNDRED MILLION DOLLARS OF NEW CONSTRUCTION IN PLAY.
AND A LONG-RANGE FACILITY'S PLAN THAT SUGGESTED MORE TO BE INVESTED.
THEY WANTED TO SEE FOR THEMSELVES AND WHAT DO YOU THINK THEY SAW? BASED ON WHAT THEY SAW, AND I'M NOT TELLING YOU, THE PRESIDENT COMMISSIONED A UTILIZATION STUDY.
THE SPACE INVENTORY, AND UTILIZATION STUDY.
THE SCOPE OF THE WORK INCLUDED AN EXAMINATION OF CLOCK HOUR USE OF CLASSROOMS, LABS, COMPUTER LABS, AUDITORIUMS, LECTURE HALLS FOR DESIGNATED AND NON-DEBTED SPACES FOR TRADITIONAL PEAK AND NONPEAK HOURS.
HOWEVER, THE RESULTS WERE DISTURBING.
GENERALLY, RESTRICTED SPACES WERE ESS UTILIZED THAN OPEN SPACES.
OVERALL UTILIZATION RATES WERE LOW.
HARDLY SUFFICIENTLY TO JUSTIFY BUILDING A LOT OF NEW STUFF.
THEY HELD OFF ON THE LONG-RANGE PLAN UNTIL THE CONSTRUCTION ND PLAY YIELDED OUTCOMES THEY COULD SEE THE SPACE.
COMPUTER LABS WERE THE LEAST USED SPACES ON CAMPUS.
BECAUSE OF STUDENTS USING THIS AND IN THERE YOU WILL FIND A APPLE LAPTOP.
THE COLLEGE DISCOVERED THE SPACES FOUND SPACES NEVER ON THE BOOKS BEFORE.
ONE ADDITIONAL THING THE COLLEGE DISCOVERED WHICH HAS APPLICABLE TO THIS DISTRICT WAS THE COMPLETE MISMATCH, NOT THAT YOU HAVE ONE, BUT A MISMATCH BETWEEN CLASSROOM SIZE, ACADEMIC PROGRAMMING, AND AVAILABILITY.
NOW, FOR BUILDINGS BUILT LONG TIME AGO, THERE WAS SORT OF A STANDARD CLASS SIZE.
>> CHANCELLOR MAY: THAT DESCRIBES OUR BUILDINGS, BY THE WAY.
OFTEN TIMES EMPTY SEATS BECAUSE OF POOR COURSE FEEL SOME CLASS SECTIONS WERE CRAMMED TO OVER CAPACITY.
THE PROJECT USED TO RESET THE THINKING AROUND CAPITAL PROJECTS, REPURPOSING OF AGED SPACES OR INTENTIONAL USE OF SPACE.
THE NOTE IS TO GET YOU TO THINK ABOUT AND YOU ARE CLEARLY, AS YOU SPEND YOUR 1.1 PLUS BILLION, WHATEVER THE NUMBER IS.
WHETHER YOU'VE DONE IT R NOT, ONE THING THAT THE PRESIDENT HAS HIRED AN OUTSIDE GROUP TO DO IS TO TOTALLY REVISIT CORE SCHEDULING.
TRY TO MATCH, IF YOU WILL, CLASSES IN DEMAND AND WHEN THEY ARE IN DEMAND, PEAK OR NONPEAK, TAKE BARRIERS OFF OF RESTRICTED SPACES, BECAUSE PEOPLE THINK THEY OWN THE SPACE.
AND IT'S ABSOLUTELY TRUE THAT THERE IS A CORRELATION BETWEEN STUDENT SUCCESS AND FACILITY UTILIZATION.
SCHEDULING MAKING A BIG DIFFERENCE.
BEING ABLE TO COME ON CAMPUS, HIT A COUPLE OF CLASSES AND GO TO THEIR JOB OR GO HOME TO THEIR FAMILY.
THAT IS A REALLY IMPORTANT SCIENCE EVOLVING IN STUDENT SUCCESS IS UTILIZATION AND SCHEDULING.
>> YOU MADE THE COMMENT EARLIER THAT IF PEDAGOGY IN CLASSES ARE CLEARLY IN THE FACULTY DEMAND.
BUT CONTINUED PROGRAM EXISTENCE, WHETHER IT CONTINUES OR NOT, ADMINISTRATION ISSUES.
IT SEEMS LIKE CORE SCHEDULING MIGHT BE SOMEWHERE IN THE MIDDLE.
WHERE DO YOU LACE IT ON THE CONTINUUM?
>> HISTORICALLY, GREAT QUESTION.
HISTORICALLY, SCHEDULING WAS IN THE DOMAIN OF THE ACADEMIC FOLKS ABSENT CONVERSATIONS WITH THE FACILITY FOLKS OR ADMINISTRATION.
WHAT YOU HAD WAS IN THE ACADEMIC DOMAIN, AND I'M THE PRODUCT OF GREAT FACULTY, THEY TRIED THE BEST THEY COULD WITH WHAT THEY HAD TO WORK WITH ANYWAY.
BUT THE POINT HISTORICALLY HAS
[03:35:03]
BEEN IN THE DOMAIN OF ACADEMICS.THEY WOULD BE, THAT'S MY CLASSROOM SPACE.
OR YOU TEACH THIS HERE, YOU TEACH THIS HERE WITH LITTLE VOICE FROM FACULTY TO THE ADMINISTRATION.
WHAT I PROPOSE TO PROSPEROUS COMMUNITY COLLEGE WAS WHY NOT HAVE ACTUALLY SCHEDULING EMBEDDED IN THE FACILITY SIDE OF THE HOUSE WITH THE ACADEMIC CONVERSATION HELD CO-TERMINUSLY.
SO YOU ARE GETTING WHAT SPACES DO WE HAVE ND WHAT DO WE NEED AND HOW CAN WE BEST BUILD THAT AROUND STUDENTS INSTEAD OF THOSE WHO DELIVER INSTRUCTION.
DOES THAT MAKE SENSE? IT HAD NEVER BEEN DONE AT THIS INSTITUTION.
>> IT'S A HARD TRANSITION TO PULL SCHEDULING OR THE CRITERIA FOR SCHEDULING TO EXCISE STUDENT NEEDS AS OPPOSED TO --
>> WHEN SOMEBODY WANTS TO TEACH.
>> I WOULD SAY PART OF THE CHALLENGE HISTORICALLY HAS BEEN SOME OF THE TECHNOLOGY THERE.
>> CHANCELLOR MAY: YOU LOOK BACK, IT WAS MAINLY A PAPER AND PENCIL KIND OF PROCESS.
AND WITH REPLICATING PREVIOUS YEARS ON THAT, I THINK THAT'S A LOT OF THE WORK.
WE JUST ARE STANDING UP OUR CLASSROOM MANAGEMENT PIECE OF THAT, HAVING INVENTORIED ALL OF THAT.
ROLLING OUT THIS FALL, JOHN, ON THAT.
THE PEOPLE SIDE OF THAT, BECAUSE THE SYSTEMS AREN'T INTEGRATED AND BELIEVE OR NOT, SCHEDULING APPLIES TO FACILITIES WHEREAS YOU HAVE THE WHOLE H.R. SIDE WHERE YOU MATCH THAT UP.
BUT YOU HAVE TO CONSIDER A PATH WAY OF STUDENTS AT THE SAME TIME.
THEN YOU'VE GOT TO TAKE INTO ACCOUNT STUDENT NEEDS, WHICH WE DON'T ASK RIGHT NOW AS PART OF THAT.
SO THAT'S KIND OF WHAT WE HAVE BCG WORKING ON FOR THE NEXT FEW YEARS TAKING THESE COMPONENTS AND HELPING US BECAUSE THERE IS NOT A PACKAGE OUT THERE THAT DOES THIS.
AS WE'VE TALKED ABOUT IN OTHER AREAS, BECAUSE OF OUR SCALE AND COMPLEXITY, CERTAINLY SOME OF THIS WILL GET EASIER WITH A SINGLE PRESENTATION.
SOME OF IT, WE STILL HAVE A LOT OF WORK TO DO.
AND THAT ASSUMES WE'RE OFFERING THE RIGHT PROGRAMS TO GET --
>> CHANCELLOR MAY: THERE IS REALLY FOUR COMPLETE DISTINCT BUCKETS RELATING TO SCHEDULING AND ASSIGNMENT.
IT'S THE SPACE, PEOPLE, CURRICULUM, AND PATH WAY, AND IT'S WHAT THE STUDENTS NEED THAT WE HAVE TO PAY ATTENTION TO.
AND THEN HOPEFULLY WE GOT THE RIGHT THING.
ALL THOSE HAVE TO COME TOGETHER IN ORDER TO GET IT RIGHT.
SO STEP ONE IS INVENTORY EVERYTHING.
WE'VE IDENTIFIED THE CLASSROOM.
PART OF THAT IS SPOT ON IS THAT SPECIAL USE CLASSROOMS ARE ALWAYS A -- WASTE IS A STRONG WORD.
THEY ARE LESS EFFICIENT IN TERMS OF THE USE.
AND THAT'S ACTUALLY HAPPENED OVER THE YEARS AS WE'VE SEEN TECHNOLOGY.
YOU LOOK AT THE ORIGINAL CLASSROOMS IN THE DISTRICT.
THERE WEREN'T A LOT OF SPECIALIZED CLASSROOMS. YOU HAD WET LABS AND OTHERS.
NOW, THAT'S REALLY CREPT INTO A LOT OF DIFFERENT AREAS.
AND WE'VE NOT LOOKED AT IT HOLISTICALLY EITHER.
WHERE IN SOME CASES YOU COULD GET BY WITH LARGE SPACE DEDICATED TO TECHNOLOGY.
AND FREE UP OTHER AREAS FOR OTHER THINGS.
>> CHANCELLOR MAY: I THINK THAT'S PART OF THE WORK WE'VE BEEN DOING WITH FACILITIES.
WE'RE PROBABLY TWO YEARS AWAY FROM SEEING SOME OF WHAT WE NEED TO SEE.
AS WE WORK THROUGH THIS -- MIC]
I KNOW YOU HAVE ANOTHER MEETING.
I'M GOING TO LEAVE THE LAST TOPIC UNDONE.
IT'S ONE YOU CAN READ FOR YOURSELF.
WHAT TO OFFER AND WHERE TO LOCATE IT.
COLLEGES IN THE MIDST OF ONE OF THE FASTEST RESOURCES IN THE REGION.
WHAT DO WE DO? HERE WE GROW, AS FAR AS I'M CONCERNED IS A QUESTION I TRIED TO MAKE OBVIOUS IN OUR CONVERSATIONS TODAY.
I WORKED HARD TO SAY, HERE YOU GROW, BECAUSE YOU ARE ABOUT TO.
WITHIN MY THOUGHTS, THE COLLEGE IS GROWING, ENROLLMENT STUDENT DEMAND, THIS COLLEGE.
EMPLOYERS IN THE REGION NEED SKILLED LABOR FROM THIS COLLEGE.
[03:40:01]
CAPITAL TO ADDRESS BOTH, STUDENT DEMAND AND SKILLED LABOR.I CAN TELL THAT TODAY I WROTE IT BEFORE I MET WITH YOU.
WHO UNDERSTANDS FIDUCIARY RESPONSIBILITIES AND SHARED GOVERNANCE.
YOU SEEM TO ENJOY WITH YOUR CHANCELLOR.
I THINK THAT'S A GOOD SUBJECT.
>> CHAIR D. FLORES: WE LIKE TELLING HIM WHAT TO DO.
>> AND YOU CLEARLY HAVE SOMETHING THAT'S HARD WON, EASILY LOST, THE PUBLIC TRUST.
DO NOT DISCOUNT THE IMPORTANCE OF THE VOTE OF CONFIDENCE YOU RECEIVE FROM THE PUBLIC. THAT'S HUGE.
THEREFORE, THE QUESTION BEGGING TO BE ASKED IS, WHAT DO WE BUILD? WHERE DO WE BUILD IT? WHAT WILL WE TEACH IN IT? AND WILL ITS USE LEAD TO SUCCESSFUL OUTCOMES FOR STUDENTS, EMPLOYERS AND THE COMMUNITY? I'M NOT HERE TO ANSWER THAT QUESTION.
I'M ONLY HERE TO ASK THE QUESTION.
AND HOPEFULLY GET YOU TO THINK ABOUT THOSE KINDS OF THINGS.
THE LAST THING I'LL SAY TO YOU BECAUSE YOU CAN READ THE CHALLENGES AND OPPORTUNITIES LATER IS THIS.
I HAVE SEEN IN NORTH CAROLINA, AND I BET IT'S TRUE IN DALLAS, THAT THERE ARE IN FACT SOME AREAS THAT DON'T ENJOY THE SAME PROSPERITY AS OTHER AREAS.
AND IT S CLEARLY PART OF THE MISSION OF THIS INSTITUTION, THANK YOU, MA'AM, PART OF THE MISSION OF THIS INSTITUTION TO CREATE THOSE PATHWAYS AND ECONOMIC MOBILITY FOR ALL THE PEOPLE IN THE DISTRICT.
I JUST DON'T WANT YOU TO LOSE SIGHT OF WHAT WHAT WE BUILD, WHERE WE BUILD AND WHAT WE'LL TEACH IN IT.
WITH THAT, MADAM CHAIR, MEMBERS OF THE BOARD, THE CHALLENGE AND OPPORTUNITIES I'LL LEAVE TO YOU.
THERE ARE THING ARE THINGS I THOUGHT WOULD BE USEFUL AND HELPFUL.
WE HAVE BOOKS FOR YOU, THANKS TO MS. MELENA AND THE COLLEGE.
I ASK OF YOU IN THANKING YOU FOR THIS WONDERFUL OPPORTUNITY TODAY, IF YOU WOULD FILL OUT THE EVALUATION FORM THAT Y EMPLOYER, ACCT REQUIRES.
I'M CONFIDENT YOU WILL GIVE ME STRONGLY DISAGREES ON ALL THE STATEMENTS, WHICH IS OKAY.
BUT AS TRULY, MADAM CHAIR, MEMBERS OF THE BOARD, CHANCELLOR MAY AND FRIENDS, IT'S BEEN A PRIVILEGE TO BE WITH YOU TODAY.
I HOPE I'VE ADDED JUST A LITTLE VALUE, BUT CERTAINLY MY FIRST TRIP TO DALLAS, I'VE COME TO THE RIGHT PLACE NO DOUBT.
AND I THANK YOU FOR WHAT YOU DO AS A BOARD.
>> CHAIR D. FLORES: WE CERTAINLY THANK YOU.
AND I THINK WE'VE RECEIVED A LOT OF GOOD INFORMATION TODAY.
YOU CERTAINLY CLASSIFIED THINGS FOR ME IN TERMS OF FIDUCIARY.
I THOUGHT IT WAS JUST FINANCIAL, IT'S MORE THAN FINANCIAL.
WE LOOK FORWARD TO TALKING TO YOU AGAIN.
WE'RE GLAD YOU ENJOYED DALLAS, IN TERMS OF BEING HERE.
I DON'T THINK YOU'VE -- EXCEPT FOR THE AIRPORT.
>> MY WIFE OFTEN ASKS ME IN MY TRAVELS, YOU'VE BEEN.
THANK YOU VERY MUCH FOR THE OPPORTUNITY.
>> S. WILLIAMS: WHAT DID YOU KNOW ABOUT US BEFORE YOU TOOK THE GIG?
BUT I DID, AS I SHARED WITH SOMEONE EARLIER, I HAD THE PRIVILEGE AS A GRADUATE STUDENT TO DO A PROJECT FOR ICHARD KNIGHT WHEN HE WAS THE TOWN MANAGER OF ARBOR, NORTH CAROLINA, LOOKING AT PUBLIC SAFETY, POLICE AND FIRE CONSOLIDATION.
HE CAME TO DALLAS AND DID A GREAT JOB.
MARGARET IS ONE OF MY GOOD FRIENDS.
>> CHAIR D. FLORES: YOU'VE GOT THE EVALUATION IN THE FOLDER, I THINK IT'S THE SECOND SHEET IN THE FOLDER.
AND ONCE YOU FILLED IT OUT, WE'RE GOING TO TAKE A FIVE-MINUTE BREAK.
SO THE CHAIRS CAN BE REARRANGED AND WE CAN MOVE INTO THE AUDIT
* This transcript was compiled from uncorrected Closed Captioning.