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[1. Certification of Notice Posted for the Meeting]

[A. IncludEd: Follett Learning Materials Presenter: John Robertson]

[00:00:40]

>> THIS OPEN MEETING OF THE BOARD OF TRUSTEES IS AUTHORIZED IN ACCORDANCE WITH TEXAS GOVERNMENT CODE 551.001 THROUGH 551.146.

VERIFICATION OF NOTICE OF MEETING AND AGENDA ARE ON FILE IN THE OFFICE OF THE CHANCELLOR PER TEXAS GOVERNMENT CODE 551.1282, THIS MEETING IS BEING BROADCAST OVER THE INTERNET IN THE MANNER PRESCRIBED BY TEXAS GOVERNMENT CODE 551.128.

>> CHANCELLOR MAY: I CERTIFY THE MEETING WAS POSTED 551.054.

>> WE'LL BEGIN WITH A PRESENTATION FROM OUR CHIEF FINANCIAL OFFICER FROM THE FOLLETT GROUP.

>> I WILL EMPHASIS WHERE YOU HAVE NAMED THIS PROGRAM, INCLUDE ED.

WE'LL TROP THE IDEA OF FOLLETT.

THEY ARE OUR PARTNER.

THIS WAS AT THE REQUEST OF TRUSTEE JAMESON WHO LAST MONTH SAID, BRING US BACK A REVIEW OF WHAT WE'RE DOING ITH THIS WHEN WE TALKED ABOUT SOME OF THE THINGS GOING FORWARD.

THIS IS DOWN TO SIX SLIDES.

MAYBE SEVEN.

IT'S FRAUGHT THE ORIGINAL 40.

SO WE'RE GOING TO GO THROUGH THIS QUICK.

IF YOU HAVE ANY OTHER QUESTIONS WE NEED TO DO ON THIS, WE'LL BE HAPPY TO DISCUSS THOSE.

REMINDER, NEARLY 1 AND 5 STUDENT SAID SKIPPED A CLASS BECAUSE OF COURSE MATERIAL COST, MORE THAN ONE-THIRD DECIDED TO GO WITHOUT THE REQUIRED TEXTBOOKS.

AND 28% OF STUDENTS HAVE ALL THE LEARNING MATERIALS ON DAY ONE.

WHAT WE'RE LOOKING AT IS WHAT WE'RE TRYING TO DO IS IMPACT END RESULT WITH STUDENT SUCCESS BY ENSURING ALL STUDENTS HAVE LEARNING MATERIALS ON THE FIRST DAY OF CLASS, WE BELIEVE IT WILL IMPROVE GRADES, COURSE RETENTION AND COURSE COMPLETIONS, DECREASE AT TIMES A CERTIFICATE OR DEGREE, AND QUITE FRANKLY, END UP REDUCING THE AMOUNT OF DEBT.

THE GOAL, WE NEED TO HAVE AND BE ABLE TO MAKE AN IMPACT ON STUDENTS SUCCESS.

WE'RE GOING TO TRACK THIS.

WE'RE GOING TO WATCH AND TRY TO SEE HOW MUCH IS RELATED TO WHAT WE'RE DOING HERE.

WE ALSO WILL GAIN A PARTNER IN TRYING TO WORK TOWARDS O.E.R.

ADOPTION.

TWO AREAS WE CAN HELP REDUCE THE COST OF LEARNING MATERIALS IN THE FUTURE.

ONE IS MORE DIGITAL VERSION OF THE MATERIAL.

THE OTHER IS OPEN EDUCATIONAL RESOURCES.

WHICH ARE BASICALLY THINGS THAT COULD BE-- THEY MIGHT HAVE A SMALL COST ON THE OPEN MARKET.

OR THEY MIGHT BE FREE.

OVERALL IF ALL STUDENTS TODAY WERE BUYING BOOKS LIKE THEY WERE SUPPOSED TO BE, THEY WOULD SAVE OVER $27 MILLION ACROSS-THE-BOARD, WHETHER A PROMISE OR DUAL CREDIT OR EARLY COLLEGE HIGH SCHOOL STUDENT OR SO ON.

WE PUT THIS PROGRAM IN PLACE IN THE DUAL CREDIT AND EARLY COLLEGE HIGH SCHOOLS CURRENTLY.

WE'RE WAITING TO GO LIVE NEXT FALL ON CAMPUSES, WE HAVE STARTED THAT IN THE SCHOOL DISTRICTS ARE GETTING THE SAME 50% DISCOUNT WITH FOLLETT.

THEIR PURCHASING AGENTS ARE HAPPY BECAUSE WE DROVE DOWN THE BOOK COST WHICH ALLOWS OTHER THINGS.

>> CHAIR D. FLORES: SLIDE THREE, THE TOTAL ESTIMATE SAVINGS FOR STUDENTS, 27 MILLION PER YEAR?

>> PER YEAR.

>> CHAIR D. FLORES: THANK YOU.

>> ON OUR COMMITTEE, WE HAVE A GROUP OF PEOPLE WHO ARE WORKING.

THESE ARE OUR TERMS OF WHAT WE'RE DOING HERE.

LOGISTICS AND INSTRUCTION AND

[00:05:01]

TECHNOLOGY.

WE HAVE A GOOD TEAM WE HAVE PULLED TOGETHER.

AN EXPANDED TEAM ALSO OF THIS, THAT IS ABOUT 45 OR 50 PEOPLE ACROSS THE DISTRICT THAT MAKES IT A LITTLE BETTER.

THIS IS THE CORE TEAM THAT IS WORKING ON WHAT WE'RE GOING TO DO AS WE GO FORWARD.

A REMINDER WHAT WE SAID, AND THIS IS WHEN I CAME BACK AND SAID WE HAVE TO WAIT A YEAR BEFORE WE PUT THIS IN.

THIS IS THE SAME TIMELINE WE SHOWED YOU THERE. THE BIGGEST THING WE'RE GOING TO HAVE TO DO IS MOVING FORWARD WITH LEARNING MATERIAL ADOPTIONS ON TIME.

THAT IS ONE OF THE THINGS THAT REALLY HELPS US DRIVE THIS PROGRAM IS AKING SURE WE CAN GET THOSE LEARNING MATERIALS.

THAT ALLOWS THE BOOK SHORE PARTNER TO GO OUT AND ACQUIRE THOSE LEARNING MATERIALS OR NEGOTIATE THEM FOR US ON AN EARLIER BASIS RATHER THAN LAST MINUTE.

SO THAT'S GOING TO HELP WITH WHAT WE HAVE TO DO SO FAR.

>> CHAIR D. FLORES: THAT -- EVERYBODY INVOLVED IN ORDERING BOOKS, THEY KIND OF UNDERSTAND THAT FACTOR?

>> YES, MA'AM.

>> CHAIR D. FLORES: GETTING IN THEIR MATERIALS EARLY?

>> THEY ARE UNDERSTANDING IT MORE AND MORE.

WE HAVE IMPROVED UT THE REAL TEST IS GOING TO BE, WE HAVE A DEADLINE COMING UP HERE SHORTLY THAT WE'RE GOING TO HAVE TO HIT AS A TEST DURING THIS YEAR.

AND THEN F COURSE, AS WE GET CLOSER TO NEXT FALL, THE DEADLINESS OF WHAT WE HAVE, BEING ABLE TO MAKE SURE WE HAVE THE ADOPTIONS, THAT IS THE REAL DEADLINE.

IF SUMMER AND FALL WILL BE DUE THE LAST WEEK OF MARCH.

I HI HAVE FORGOTTEN THERE LAST .

>> THE END [INDISCERNIBLE] WHO GRADUATED FROM A DIFFERENT COLLEGE DISTRICT THAN OURS WHO NEVER BOUGHT A SINGLE TEXTBOOK.

SHE HAD A TWO-YEAR DEGREE.

THE LINE WOULD FO FORMALITY THE COPIER.

-- AT THE COPIER.

AND YOU WOULD MAKE A COPY AND PASS IT ON.

>> QUITE FRANKLY, SO MANY, ESPECIALLY OUR TRADITIONAL STUDENTS WHO COME OUT OF K-12, DON'T KNOW THEY HAVE TO BUY BOOKS IN COLLEGE.

IT'S A BARRIER.

WHAT WE'RE GOING TO BE ABLE TO DO IS TAKE IT AWAY.

PEOPLE WHO ARE GO THROUGH THIS TRANSITION, THERE WILL BE SOME ANGST.

BUT OVERALL I THINK WITH OUR LOW TUITION AND WHAT WE HAVE INCLUDING THE BASICALLY THEY ARE SAVING 50% ON BOOKS.

THE NUMBERS WE SHOWED YOU WAS THE AVERAGE COST OF LEARNING MATERMATERIALS ARE $41.

IF YOU ADD THAT TO THE $59 INDISTRICT TUITION, THAT'S 100 BUCKS.

LATER ON WE'LL TALK ABOUT RAISING TUITION TO $79.

WE'RE TALKING ABOUT A $21 DECREASE IN WHAT THEY ARE ACTUALLY PAYING OVER TODAY IF YOU WILL ON AVERAGE COSTS.

DIFFERENT PROGRAMS HAVE DIFFERENT COSTS, WE ALL KNOW NURSING BOOKS ARE A LOT MORE EXPENSIVE.

WE HAVE SOME OF THE DETAILS.

80% OF THIS IS EASY .

IN FACT, IT'S 90 OR 95%.

THOSE ARE THE CHALLENGES THAT WE WILL HAVE.

I DON'T SEE ANY CHALLENGE THAT WE'RE DOING THAT WE CAN'T OVERCOME WITH A LITTLE CREATIVITY TO MAKE SURE STUDENTS HAVE LEARNING MATERIALS ON THE FIRST DAY OF CLASS.

>> CHAIR D. FLORES: I SHARED THIS WITH JOE THAT A FACULTY MEMBER STATED A CONCERN ON THE E-BOOKS HOW STUDENTS WOULD ACCESS THEM BECAUSE A LOT OF THEM EITHER DON'T HAVE THE IPHONE OR DON'T HAVE IT CHARGED UP, ET CETERA, CAN YOU ADDRESS THAT?

>> ONE OF THE THINGS WE'RE LOOKING AT AND THAT WILL BE PART OF THE PILOT WE'LL WORK AT, MR. MARSHALL, IS LOOKING AT SOME READERS THAT WE CAN HAVE.

I WILL SAY IN TALKING ABOUT PRESIDENT DR. TAYLOR, THEY HAVE DONE STUDENT SURVEYS OR INTERACTION GROUPS.

AND ONE OF THE THINGS WAS IN THERE IS ALL THE DIFFERENT THINGS THEY MIGHT BE ABLE TO DO AS WE MOVE TOWARDS THIS AND HAVING THE DIGITAL MATERIALS.

WE'RE GOING TO HAVE FIGURE OUT THE DEVICE FOR THOSE THAT DON'T HAVE IT, WHAT IS THE CORRECT DEVICE THEY NEED TO BE ABLE TO DO THAT.

WE HAVEN'T FIGURED OUT THE DETAILS.

THAT WOULD PROBABLY BE SOMEWHAT OF A COST INCREASE WITH US.

BUT WE HAVEN'T FIGURED OUT IF IT'S THE STUDENTS OR WE'RE PAYING OR HOW MUCH FINANCIAL AID

[00:10:01]

WILL PAY.

RIGHT NOW FINANCIAL AID WILL PAY FOR A COMPUTER AS PART OF THE COST OF ATTENDANCE AND PELL GRANT.

THOSE TYPE OF THINGS.

IT'S GIVING THEM THE RIGHT THING.

IF THEY HAVE A READER AND ALL THEY CAN DO IS READ THE MATERIAL BUT CAN'T WRITE A PAPER, WE MAY HAVE TO LOOK AT THIS.

THIS IS AN AREA THAT COULD GROW.

>> WE'RE GOING TO NEED TO ADDRESS THE NEED.

>> CHANCELLOR MAY: THAT'S A GIVINGEN.

WHICH ROUTE WE GO.

WE TALKED SPECIFICALLY WITH CERTAIN VENDORS RELATED TO THAT GOING FORWARD.

BUT IT DOES NO GOOD TO GIVE YOU LEARNING MATERIAL ONS DAY ONE IF YOU CAN'T USE THEM.

SO THESE WILL GO HAND IN GLOVE.

>> CHAIR D. FLORES: IF YOU COULD UPDATE US ON THE [INDISCERNIBLE] IN TERMS OF WHAT --

>> WE WILL.

I MEAN, FRANKLY IT'S CHANGING FAST AND PRICE STRUCTURES ARE CHANGING.

>> CHANCELLOR MAY: AS TECHNOLOGY IS EVOLVING.

WE'LL BE UP TO THE WIRE IN MAKING A FINAL DECISION SINCE THAT CAN CHANGE.

>> CHAIR D. FLORES: AND THAT CAN CHANGE ONCE YOU MAKE THE DECISION, RIGHT? THERE ARE NEW THINGS THAT COME ONLINE.

>> TECHNOLOGY IS CHANGING CONSTANTLY.

WE MIGHT BE GETTING STUDENTS WITH CHIPS, YOU KNOW, AND DEVICES OR WHATEVER THEY CALL THEM.

>> CHAIR D. FLORES: WE TALKED ABOUT THAT THE OTHER DAY.

[INDISCERNIBLE]

>> I'M NOT.

AGAIN --

>> D. ZIMMERMANN: I'VE SEEN TOO MANY SCI-FI MOVIES THAT DIDN'T TURN OUT WELL.

>> I AGREE.

WE HAVE ON THE REGULAR AGENDA.

THE APPROVAL ON AN AMENDMENT TO FOLLETT CONTRACT, ADDING THIS PORTION.

WHAT WE'LL DO, FOLLETT WELL BILL US, WE'LL GET REVENUE FROM THE STUDENTS AND TUITION INCREASE AND PAY FOR THAT BILL.

THTHERE IS NO MONEY MADE ON THI.

WHAT WE'RE DOING IS DRIVING THE COST DOWN.

WE ELIMINATING FOLLETT COMMISSIONS ON BOOKS THREE, FOUR, FIVE YEARS AGO.

THE SAME PRINCIPLE HERE, IF A STUDENT IS PAYING $20 THAT ENDS UP GOING TO FOLLETT TO COVER THEIR COST OF PROVIDING THESE LEARNING MATERIALS, WHETHER THEY BE DIGITAL OR PRINT.

IT'S JUST A FLOW-THROUGH ON THEIR PART.

WE WILL WATCH THAT PRICE AS WE GO OVER TIME.

I STILL BELIEVE WE CAN DRIVE IT DOWN AS WE MOVE FORWARD.

>> S. WILLIAMS: ARE NOT COUNTING ON THAT

>> MOTION. YES.

>> D. ZIMMERMANN: THEY SHOULD BE.

>> QUITE FRANKLY, ONE OF THE FIRST DISCUSSIONS I HAD WITH DR.

MAY, I WANT TO PUT YOU OUT OF THE BOOK BUSINESS.

SAID THAT TO FOLLETT.

THE IDEA WAS HANDLING PHYSICAL BOOKS IS EXPENSIVE AND COSTLY.

IT'S PHYSICAL STORAGE.

THE ORDERING.

THE TAKING THEM BACK AND DEALING WITH ALL THAT THAT LONGER TERM, DIGITAL OR O.E.R., REDUCING THE COST TO WHAT STUDENTS ARE HAVING TO BEAR.

>> D. ZIMMERMANN: I HAVE A QUESTION.

TO ME, WITH KNOWING HOW QUICKLY DIGITAL IS CHANGING AND EVERYTHING, WE'RE LOOKING AT A

>> YES. AGREEMENT WE HAVE TO WRITE IN THERE AT ANY TIME WITH A 60-DAY NOTICE, I BELIEVE, ROB, IS WHAT WE PUT IN, IF WE WANT TO MOVE ONTO SOMEBODY ELSE OR TERMINATE THE CONTRACT, WE CAN.

>> D. ZIMMERMANN: OKAY.

I WANTED TO DATE

>> PART OF OF IT, WE'RE IN HIS RELATIONSHIP WITH THE IDEA WE'RE GOING TO STAY MARRIED FOREVER.

NOT REALLY, OMEBODY ELSE CAN COME ALONG AND HAVE A BETTER PRODUCT.

WE'RE READY FOR THAT.

I RESIST GOING DIRECTLY TO PUBLISHERS BECAUSE THERE IS A A LOT OF THEM AND MORE DIFFICULT TO MANAGE, TO ME.

THAT IS WHAT FOLLETT IS HELPING DO IS MANAGING THE PUBLISHERS FOR US.

FIVE YEARS FROM NOW, T THE SCENY MAY CHANGE.

>> D. ZIMMERMANN: I'M CONCERNED IN THREE YEARS IT MAY BE DIFFERENT.

>> IT MAY BE.

WE HAVE ENOUGH FLEXIBILITY.

>> CHANCELLOR MAY: THIS EVOLVED WITH A PARTNERSHIP AS WE LOOK AT HOW TO WORK TOGETHER ON THIS.

AND WHILE WE REALLY HELPED DESIGN THE COUNTRY TO DO THAT AS WELL.

>> WE'VE GOTTEN NATIONAL RECOGNITION ON THIS PROGRAM.

MAYBE NOT THE FIRST.

BUT WE'RE ONE OF THE LARGEST.

>> CHAIR D. FLORES: WE'RE GETTING TIRED OF WINNING.

>> D. ZIMMERMANN: IF I MIGHT ASK, IT SAYS FOR APPROXIMATELY 50% OF THE BOOK ADOPTIONS.

SO WE WOULD ONLY HAVE HALF?

[00:15:02]

>> NO.

>> DIGITAL VERSUS PRINT.

>> PRINT VERSUS DIGITAL ABOUT HALF OF THE ITEMS, IT'S ABOUT A 50/50, 48/52 TO BE EXACT.

>> THERE IS A PRINT AND DIGITAL SO WE HAVE BOTH TO DEAL WITH.

>> DIGITAL IS PREFERRED.

IF THE FACULTY ADOPTS, IF IT'S AVAILABLE IN DIGITAL, TOOL THATL BE THE METHOD.

PEOPLE CAN GET PRINT MATERIALS AT A VERY INEXPENSIVE AMOUNT AND IN CASE OF PEOPLE WHO HAVE DIFFERENT TACTILE LEARNING METHODOLOGY, THAT WE WILL AKE SURE THEY GET WHAT IS NECESSARY SO THEY CAN LEARN ALSO.

WE TRIED TO BE ALL INCLUSIVE ON THAT.

THAT'S NOT A PLAY ON WORD WITH THE TUITION WE'RE DOING.

BUT IT IS TRYING TO MAKE SURE ALL BASES ARE COVERED.

MY OOD FRIEND, OSCAR LOPEZ, ALWAYS REMINDS ME, WELL, WE HAVE TO REMEMBER THESE STUDENTS AND OTHERS.

THAT'S PART OF THE TEAM WE HAVE.

MAKING SURE THAT WE'RE COVERING THOSE TYPE OF THINGS.

>> D. ZIMMERMANN: I'M CONCERNED WITH THE DOLLAR' SENSITIVE STUDENTS WHO ARE GOING TO SAY -- YOU KNOW, WHAT HAVE YOU DONE TO ME? I CAN'T DO THIS.

>> THEIR, BUT I THINK THAT'S THE ONES TODAY.

LONGER TERM, LIKE I SAID, IT'S ALL INCLUSIVE TUITION.

PAYING $79 INDISTRICT, COMPARABLE TO $93 ACROSS THE STATE FOR LAST SPRING, I DON'T KNOW THE FALL NUMBERS YET.

BUT STATE WIDE AVERAGE FOR COMMUNITY COLLEGE IS $93.

I HINK THE -- WITHOUT BOOKS.

WITHOUT BOOKS, I THINK THE --

>>

>> CHARLETTA.

>> C. COMPTON: THIS TIME ON THE [INDISCERNIBLE] IT STARTS THE IN SEPTEMBER OF 2020.

NEXT YEAR.

>> NO, THAT'S JUST TO MAKE THE TIMELINE IS TO FINISH THE WHOLE THING BY FALL, FOR THE FALL SEMESTER OF 2020.

IT DOESN'T START NEXT FALL.

THAT'S THE END DATE.

>>

>> C. COMPTON: THIS SEPTEMBER?

>> YES, WE'VE ALREADY STARTED.

>> OKAY.

WHAT DOES BUNDLE LEARNING MATERIALS WITH TUITION MEAN?

>> IT'S WHAT WE'RE DOING NOW.

THAT FACT THAT TUITION WILL COVER ALL TUITION AND LEARNING MATERIALS.

IT'S BUNDLED TOGETHER INTO ONE, ALL INCLUSIVE TUITION RATE.

>> C. COMPTON: YOU ARE ASKING US TO APPROVE THIS TUITION INCREASE BUT I'M STILL OT UNDERSTANDING BUNDLED LEARNING MATERIALS WITH TUITION?

>> HAT'S JUST A TERM WE WERE USING AT THE TIME, INTEGRATING EVERYTHING TOGETHER.

>> C. COMPTON: COME BACK AND ASK US FOR ANOTHER TUITION?

>> NO, I'M HOPING WE CAN COME DOWN IF WE GO WITH THIS, IF PRICES KEEP GOING P OR LEARNING MATERIALS, WE HOPE BY GOING DIGITAL AND OER TO KEEP IT ON A LEVEL PLAYING FIELD.

PART OF THIS IS DOING, AND THAT'S WHY WE DELAYED THIS LAST YEAR.

THIS IS SO DEPENDENT N MY FACULTY FRIENDS TO WORK WITH US ON ANY AREAS OF HOW DO WE GET THESE ADOPTIONS ONTIME AND STANDARDIZE THEM AND WORK TOGETHER TO MAINTAIN THE THINGS FOR FACULTY TO BE ABLE TO TEACH STUDENTS WELL.

>> M. BRAVO: THE QUESTION IS WHY IS IT LISTED ON FEBRUARY?

>> THAT IS OUR ORIGINAL PLAN.

WHAT WE HAVE NOW, WE HAVE GOTTEN PARTLY BECAUSE WE'RE IMPROVING THE FOLLETT CONTRACT AT THIS BOARD MEETING, IT'S A QUID PRO QUO, THEY HAVE TO GO TOGETHER.

YOU CAN'T HAVE ONE WITHOUT THE OTHER.

WE CAN'T SIGN THE FOLLETT AGREEMENT --

>> CHANCELLOR MAY: BECAUSE WE START REGISTERING FOR FALL EARLIER AND EARLIER -- SPEAKERS]

>> WE HAVE TO HAVE IT ALL READY TO GO BY THEN.

OTHERWISE WE CAN'T DRIVE THE REGISTER BOARD YOUR CLASSES [INDISCERNIBLE].

>> THERE AS NO REASON TO WAIT UNTIL THE LAST MINUTE.

>> CHAIR D. FLORES: YOU SAID -- CHARLETTA ARE YOU DONE?

>> C. COMPTON: WELL, I HAVE QUESTIONS.

AND I'VE ALREADY ASKED ROB ABOUT THE TUITION INCREASE.

BECAUSE WHAT I'M UNDERSTANDING AT THIS POINT IS THAT YOU ARE PROPOSING THE TUITION INCREASE BASICALLY TO COVER THESE COURSE MATERIALS.

>> MMHMM.

>> AND EVERYBODY HAS ACCESS FROM DAY ONE UNLESS THEY HAVE A SPECIAL UNIQUE SITUATION?

>> MMHMM.

[00:20:01]

>> C. COMPTON: OKAY.

BUT THERE ARE OTHER PORTIONS WHEN YOU READ THE POLICY, IT TALKS ABOUT MANDATORY FEES AND THAT'S WHERE I'M CONFUSED.

[C. Approval of Amendment to Policy Concerning Tuition and Fees – FD (LOCAL) to Fund the Implementation of the All-Inclusive Learning Materials by Increasing Current Tuition Rates]

>> THE MANDATORY FEE SECTION, WE DON'T HAVE ANY, REALLY COMES FROM THE LEGAL SIDE.

AND --

>> C. COMPTON: CAN WE SKIP AND TALK ABOUT THE TUITION INCREASE? BECAUSE THEY KIND OF GO TOGETHER WITH THIS, IF YOU ASK ME.

>> LET ME ASK JOHN.

WE HAVE GOT TWO AGENDA ITEMS ON THIS.

THE SWITCHED INCREASE AND CONTRACT AMENDMENT.

DO YOU HAVE INITIAL PRESENTATIONS ON THOSE TWO? WE HEARD WHAT WE'RE GOING TO HEAR.

>> WE'RE HERE TO ANSWER QUESTIONS ON ANY OF THE AGENDA ITEMS.

>> C. COMPTON: NO.

IF OU LOOK AT AGENDA ITEM 3C ABOUT THIS IS WHERE THIS TUITION INCREASE IS.

THE PROPOSED INCREASE.

IT SAYS FEES MANDATORY.

WHAT I WAS ASKING ABOUT, WE DIDN'T HAVE ANY FEES.

WE JUST CHARGED FLAT TUITION AND NOW THEY ARE SAYING TUITION INCREASE TO COVER THE LEARNING MATERIALS BUT HEY REFERENCE A BUNCH OF FEES IN THE POLICY.

I'M CONFUSED.

AND THINKING IT MIGHT BE NEED TO BE-- I DON'T KNOW.

>> AND I ATTEMPTED TO ANSWER THE QUESTION BEFORE.

I POINTED OUT TO JOHN, THE LANGUAGE ON PAGE 7 OF MY BOARD BOOK, I DON'T KNOW IF THAT IS SUCCINCT WITH YOURS, RUSTEE COMPTON IS REFERRING TO FEES MANDATORY.

THE LANGUAGE IN BLACK IS EXISTING POLICY.

IT SAYS, IF WE TAKE OUT THE BLUE LANGUAGE THAT'S BEEN ADDED, MANDATORY FEES SHALL INCLUDE BUT NOT BE LIMITED TO STUDENT ACTIVITY FEES, LABORATORY FEES, PRIVATE LESSON FEES, PHYSICAL EDUCATION, REGISTERS, TECHNOLOGY AND OTHER MANDATORY FEES.

THAT LANGUAGE IS IN EXISTING POLICY.

JOHN TELLS ME WE HAVE NONE OF THOSE.

WE DO HAVE POLICY LANGUAGE THAT WOULD AUTHORIZE THOSE.

THE ONLY CHANGE RECOMMENDED FOR THE BOARD TO CONSIDER TONIGHT IS THE BLUE LANGUAGE, MANDATORY FEES SHALL BE ASSESSED FOR COLLEGE DISTRICT RELATED SERVICES AVAILABLE TO STUDENTS.

MANDATORY FEES MAY, AND IT LEAVES THE WORD, INCLUDING BUT ARE NOT LIMITED TO.

THOSE WERE CLEAN-UP CHANGES RECOMMENDED TO OUR EXISTING POLICY.

I ASKED TRICIA TO COME DOWN FOR THE 4:00 MEETING, THIS IS A TAZBY RECOMMENDATION BECAUSE OF THE TUITION INCREASE.

THE SENSITIVITY TO THE FEW ISSUE, I UNDERSTAND EMANATES FROM HISTORICAL EXPERIENCES HERE IN THE DISTRICT WITH A LAWSUIT OVER FEES AND OTHER THINGS.

MY UNDERSTANDING IS WE HAVE NO FEES, EVEN THOUGH WE HAVE POLICY IN EXISTING FD LOCAL WITHOUT RESPECT TO WHAT YOU ARE CHANGING OR BRIEFING HAS TO CHANGE THAT WOULD AUTHORIZE FEES.

WE DON'T ASSESS ANY, IS THAT RIGHT?

>> THAT'S RIGHT.

ALSO IN THE LAW WHEN WE DO REFUNDS BECAUSE STUDENTS DROP PER ADMINISTRATIVE CODE, IT'S REFERRED TO A REFUND BASED ON TUITION MANDATORY FEES, OPTIONAL FEES ARE NOT REFUNDED.

WE DON'T HAVE ANY OPTIONAL FEES.

THEY ARE NOT LISTED.

LEGALLY WE HAVE TO DEFINE WHAT MANDATORY FEES ARE.

I'M GETTING WAY TOO INTO THE DETAILS. THOSE ARE REQUIRED BE LAW.

IF WE DID HAVE THEM, WE WOULD HAVE TO THEN DETERMINE WHETHER OR NOT WE REFUNDED THOSE BASED ON A DROP SCHEDULE.

>> C. COMPTON: THIS SEEMS TO ME THAT OUR POLICIES SHOULD REFLECT WHAT WE ARE ACTUAL DOING.

AND WHAT YOU ARE SAYING IS THAT BECAUSE THE TAZBY LANGUAGE, YOU HAD TO INCLUDE SOME OF THIS STUFF IN HERE.

ARE WE REQUIRED TO DO THAT RATHER THAN JUST BASICALLY DO THE POLICY BASED ON OUR ACTUAL OPERATIONS AND WHAT WE DO?

>> WE DISCUSSED AND THAT'S ABOUT TAKING THIS SECTION OUT ON MANDATORY FEES.

BUT IF THIS BOARD EVER DECIDED TO HAVE THOSE FEES, THERE IS NO LISTING OF A DOLLAR AMOUNT IN THIS POLICY FOR THOSE FEES SO BASICALLY THEY ARE ALL ZERO.

BUT IF THEY WERE, THIS IS WHAT DEFINES THEM AS A MANDATORY FEE.

AND THAT'S THE PART TAZBY TALKS ABOUT YOU NEED TO LEAVE THEM IN THERE BECAUSE THAT'S IN ANOTHER LEGISLATION THAT DEFINES WHAT YOU DO WITH MANDATORY FEES AND

[00:25:02]

THE OPTIONAL FEES.

WE HAVE TAKEN OUT OPTIONAL FEE OUT OF THE POLICY BEFORE.

IT COMES BACK FROM THE LEGAL STANDPOINT, WHY YOU HAVE TO DEFINE MANDATORY FEES, EVEN IF YOU DON'T HAVE THEM.

>> IT'S AN OPERATIONAL NECESSITY IF WE HAD THOSE FEES, WE WOULD HAVE TO HAVE POLICY LANGUAGE TO SUPPORT THAT.

THE LAWSUITS I REFERENCED, WHICH WAS MEN MANY YEARS AGO, CONCERNED OPTIONAL FEES, IF I'M NOT MISTAKEN.

>> THE TECHNOLOGY FEE WAS A MANDATORY FEE.

WE DROPPED IT IN 2001.

>> C. COMPTON: IGETS CONFUSINGIM FUFFINGCONFUSING.

CAN'T YOU PUT SOMETHING THAT CLASSIFIES, AT THE PRESENT TIME, THE DISTRICT DOESN'T HAVE OR SOMETHING THAT MAKES CLEAR TO SOMEBODY COMING BACK READING IT.

BECAUSE WHEN I SAW, I SAID ARE WE PUTTING FEES BACK IN? AND THAT THE PART OR THE JUSTIFICATION FOR THE TUITION INCREASE?

>> CHANCELLOR MAY: IT SEEMS LIKE A SIMPLE ADJUSTMENT.

>> WE NEED TO TALK TO TAZBY.

>> THIS IS ALSO NOT THE LANGUAGE THAT GOES IN OUR CATALOG.

OUR CONTRACT WITH OUR STUDENTS IN WHICH E SIMPLIFY THAT MUCH AS YOU ARE TALKING ABOUT, TRUSTEE COMPTON, NOT HAVING THESE TYPES OF THINGS IN OUR CATALOG.

BOARD POLICY IS FOR US TO DISCUSS ABOUT HOW WE HAVE TO DO THOSE.

I AM HESITANT.

AND THAT'S WHERE WE WENT ABOUT TAKING IT OUT AT THIS POINT UNTIL WE TALK TO TAZBY WHY WE HAVE TO HAVE IT IN THERE.

>> C. COMPTON: I CAN UNDERSTAND, I WANTED TO BE CLEAR ON WHAT WE WERE PROPOSING TO DO.

BUT I WISH YOU WOULD GO BACK AND TAKE A LOOK AT THAT.

BECAUSE SEE NOW, JUST LIKE WE GOT INTO THAT LAWSUIT ABOUT THOSE FEES BEFORE, YOU START HAVING THREE DIFFERENT THINGS PRINTED THREE PLACES SAYING SOMETHING DIFFERENT AND A STUDENT OR SOMEBODY THAT IS TAKEN EXCEPTION TO SOMETHING, THEY GO BACK AND THEN IT COMPLICATES THE WHOLE SITUATION BECAUSE YOU ARE USING DIFFERENT LANGUAGE IN DIFFERENT PLACES AND EVERYTHING IS SAYING SOMETHING DIFFERENT OR OPEN TO DIFFERENT INTERPRETATIONS.

SO I THINK IT NEEDS TO BE CLARIFIED CONSISTENTLY THAT WE DON'T HAVE ANY FEES RIGHT NOW.

THAT COULD BE A FUTURE OPTION.

>> I APPRECIATE THE STATEMENTS MADE.

AND I UNDERSTAND THOSE.

AND I AGREE OUR LOCAL POLICY SHOULD BE REFLECTIVE OF THE PRACTICES WE ENGAGE IN AND CONSISTENT WITH WHAT WE DO.

FD LEGAL, A LEGAL POLICY THAT MANDATES OR REFLECTS WHAT THE STATE STATUTES AND OTHER LAWS REQUIRES, THAT HAS ANGUAGE REFLECTING FEES, REFLECTING OTHER THINGS, TUITION AS WELL.

WE'LL TAKE A GOOD LOOK AT IT.

BECAUSE I AGREE, IF THERE IS A WAY TO MAKE THIS CLEARER.

I WOULD SAY, AGAIN, IN OUR EXISTING POLICY TODAY, FD LOCAL, EVERYTHING IN BLACK IS IN THAT POLICY.

IF SOMEBODY WAS TO LOOK AT IT TODAY, IT WOULD HAVE THIS LANGUAGE IN IT WHETHER OR NOT WE NEED IT, WE'LL BRING BACK WITH CLARIFICATION.

BLACK AND RED, RED IS A DELETION.

BLUE IS THE NEW LANGUAGE.

>> CHANCELLOR MAY: ALREADY ADDRESSED IN THE CURRENT POLICIES.

>> THEY MAYBE A NOD TO WHAT JOHN WAS SAYING.

THE RECOMMENDATION WE RECEIVED WE NEED TO LEAVING IT FOR SOME REASON.

I'LL BRING BACK AN EXPLANATION.

>>

>> M. BRAVO: I HAD A QUESTION TO THE AMENDMENT ON THE AGREEMENT.

FOLLETT PROVIDED 225,000 ANNUALLY FOR OOK STORE CAPITAL IMPROVEMENT.

IDEALLY, STUDENTS WILL FOUGHT BE GOING TO BOOK STORES. I'M WONDERING WHAT CAN I IMPROVEMENT SAID.

IMPROVEMENTS.

>> THAT'S A SMALLER NUMBER.

WE'VE INCREASED THE NUMBER FOR SCHOLARSHIPS.

THEY STILL WILL GO THERE.

ONE, BOOK STORES STILL SELL SPIRIT ITEMS AND OTHER THINGS.

SODA AND SNACKS.

THEY ARE SEE STORE IN ADDITION TO A BOOK STORE.

IF THEY HAVE LESS SPACE FOR THAT, THEY MIGHT HAVE LESS SPATES FOR PHYSICAL BOOKS.

BECAUSE EVERYTHING IS GOING DIGITAL.

THEY MIGHT HAVE THE ABILITY TO CARRY OTHER PRODUCTS -- CARRY OTHER PRODUCTS.

[00:30:02]

AND PROVIDE MORE SERVICE TODAY STUDENTS.

THOSE ARE SOMEWHAT LIMITED BUT WOULD HAVE TO BE UPDATED.

WE MAKE THEM REVAMP, PUT IN NEW CARPET AND REVAMP THE DISPLAYS, KEEP THINGS MODERN.

WE'RE NOT HAVING TO PAY.

>> M. BRAVO: THE 25,000 FOR COURSE MATERIAL AND SCHOLARSHIPS, IS THAT THE PRINTED COPIES?

>> ANYTHING.

WE HAVE ALWAYS HAD A STUDENT COMES AND SAYS THEY CAN'T AFFORD SOMETHING, WE CALL THESE BOOK STORE SCHOLARSHIPS.

IT MAY BE, I CAN'T AFFORD THE BACKPACK AND SPIRAL NOTEBOOKS.

YOU CAN USE THE SCHOLARSHIP TO HELP THEM GET THOSE.

>> M. BRAVO: WE ALREADY HAVE THAT?

>> YES.

>> JOHN IS GOING TO REGRET CALLING ME UP.

I WANT TO CLARIFY A POINT.

THAT WAS A ESULT OF A RFP REQUEST FOR PROPOSALS IN 2015.

FOR BOOK STORE SERVICES WHICH FOLLETT WAS THE PROPOSERS RECOMMENDED AND APPROVED BY THE BOARD.

THAT HAS A TERM WHICH RUNS THROUGH 2026.

WE'RE NOT EXTENDING.

THAT RUNS THROUGH 2026.

I WANTED TO BE CLEAR THIS IS AN AMENDMENT TO ALLOW THE ADDITION OF THE LEARNING MATERIAL INITIATIVE.

>> CHAIR D. FLORES: OKAY.

TO TRUSTEE COMPTON'S POINT, WE HAVE NO FEES.

BUT WE'VE HAD THIS LANGUAGE ALL ALONG.

SO THAT OESN'T ME THAT BY HAVING THIS LANGUAGE, WE'RE GOING TO NECESSARILY GO TO A FEE STRUCTURE.

THAT HAS TO BE APPROVED BY THIS BOARD, CORRECT?

>> YES, MA'AM.

>> CHAIR D. FLORES: INSTEAD OF SAYING MANDATORY FEES SHALL, PUT IN THE WORD MAY INSTEAD?

>> WE'LL CHECK ON THAT.

I CAN'T REMEMBER WHAT THE LEGAL SAYS EXACTLY.

BUT PART OF IT TO LOOK AT THE LEGAL.

WE DON'T CHARGE THESE AND TAKE THE POLICY OUT, THEY MAY ADVISE US IT'S OKAY OR AGREE WITH LEAVING IT IN THERE.

>> I THINK THE POINTS MADE BY TRUSTEE COMPTON AND THE CHAIR ARE WELL TAKEN.

WE'LL DO A DEEP ANALYSIS AND COME BACK WITH A REMOVAL IF NOT NECESSARY.

BUT THERE IS NO ACTION THIS BOARD WOULD TAKE IF APPROVED AS PRESENTED THAT WOULD CREATE NEW FEES NOT ASSESSED IN THE DISTRICT.

WE'RE NOT GOING TO DO THAT.

>> CHAIR D. FLORES: ANOTHER QUESTION.

WHEN TRUSTEE COMPTON ASKED THIS MEANT WE WOULD NOT INCREASE TUITION? THE ANSWER WAS NO, WE WON'T INCREASE TUITION.

SHE ASKED SOMETHING ABOUT THIS IS NOT A TUITION INCREASE OR WE'RE NOT GOING INCREASE TUITION.

NO FOR THIS BUT THERE MIGHT BE YEARS DOWN THERE ROAD IT MIGHT BE NECESSARY.

>> WE'RE NOT ASKING TO, I MEAN THE ONLY PLAN IS THIS $20 INCREASE AND NO OTHER PLANS ON IT.

THE LAST TIME WE DID A TUITION INCREASE, WE ASKED FOR TWO DIFFERENT TIMES TWO YEARS APART.

2012 AND 2014.

THAT WAS PART OF THE BOARD'S PLAN TO DO THAT.

WE'RE NOT PLANNING ON COMING BACK IN TWO YEARS.

>> CHAIR D. FLORES: I HOPE NOTHING CRATERS.

>> I THINK TRUSTEE COMPTON'S POINT WAS TO THE EXHIBIT JOHN HAD UP, THE TIMELINE THAT CAN CONTEMPLATED THE TUITION INCREASE EFFECTIVE 2020 TO THE BOARD IN FEBRUARY.

THE DETERMINATION WAS MADE TO BRING IT IN OCTOBER, STILL EFFECTIVE IN FALL 2020.

>> C. COMPTON: WHAT IT LOOKED LIKE WAS THAT, AND I'M ASSUMING BUNDLING IS DECIDING WHAT MATERIALS GO WITH EACH CLASS.

BUNDLING WITH TUITION KIND OF LOOKS LIKE THEY COULD POSSIBLY COME BACK AND ASK FOR DDITIONAL TUITION ONCE THEY BUNDLE THE MATERIALS.

THEY ARE SAYING THEY'RE ASKING FOR THE INCREASE NOW.

THAT SHOULD HAVE COME OUT.

>> OR MOVED OUT TO WHERE IT IS.

WE HAVE A COMMITMENT FROM FOLLETT THERE IS NO INCREASE FOR NEXT YEAR.

WE'RE BOTH ON THE $20.

WE HAVE LIMITATIONSEN OWHAT THEY CAN DO ON INCREASES AND THE TERMINATION CLAUSE.

BEFORE WE GET OFF TUITION, IF TO BRAG ABOUT THE TUITION DECREASE.

ELIMINATING FOR OUT OF STATE STUDENTS THAT WERE TAKING ONLINE COURSES.

I'VE DONE THIS MUCH, MAYBE YOU ALL CAN HELP ME.

AS MUCH RESEARCH I CAN.

THE WE WE ARE WITH OFFERING THINGS NATIONWIDE, WE NEED TO SEE IT GO AWAY BECAUSE IT DOESN'T MAKE US COMPETITIVE.

[00:35:02]

PART TWO IS, WE SHORTENED THE LANGUAGE ON THE PAYMENT PLAN TO BE MORE FLEXIBLE.

WE PUT IN TOUCH NET THAT WORKS WITH THE STUDENT ACCOUNTING RECEIVABLE.

WE CAN OFFER MORE OF A VARIETY OF PAYMENT PLANS THAN BEFORE.

WHICH WE REALLY NEED ALL ALL THIS FLEXIBLE STARTS GOING ON.

AND MANY TERMS AND THER THINGS THAT ARE APPENING.

NOT SAYING WE'LL DO THAT.

BUT IT ALLOWS US TO THROUGH THE CHANCELLOR TO BASICALLY GIVE STUDENTS MORE.

THE PAYMENT PLAN OR PAYMENTS THEY CAN PAY FOR THEY GET PAID WEEKLY, THEY CAN MAKE PAYMENTS S WEEKLY.

WE CAN TIME THESE THINGS WHERE IT'S MORE CONVENIENT.

>> TELL US THE RATIONALE FOR OPERATING [INDISCERNIBLE] TUITION INCREASE WHEN IN REALITY IF IT'S FULLY PASSED, THIS IS FOR THE MANDATORY [INDISCERNIBLE].

THIS IS A MANDATORY INSTRUCTIONAL MATERIALS BE--

>> WE DON'T HAVE -- SPEAKERS]

>> P. RITTER: INCREASING FEES ON STUDENTS BY A THIRD ABOVE THE CURRENT TUITION TO PAY FOR SOMETHING. WHY DON'T WE CHARACTERIZE THIS AS A MANDATORY FEE.

>> WE HAVE ONE THROUGH THAT EXERCISE.

WE PRESENTED THIS AND COME BACK TO ONE, LET ME TELL YOU ANOTHER ADVANTAGE BY INCREASING TUITION, WE INCREASE OUR TEA PEG SET ASIDE TO HELP ECONOMICALLY DISADVANTAGED STUDENTS.

THAT IS A BY-PRODUCT SINCE WE HAVE TUITION ONLY WE FELT ALL ALONG THE IDEA IS WE WILL STICK TO THAT BAITS OF HAVING TUITION ONLY, AND NOW WE WE REFER TO IT AS ALL INCLUSIVE.

WE DON'T HAVE DIFFERENTIAL TUITION WHERE WE CHARGE MORE FOR NURSING OR VET TECH.

WE CHARGE ONE AVERAGE COST RIGHT ACROSS THE DISTRICT FOR ALL OUR PROGRAMS. AND SO TO HAVE A SEPARATE FEE ON THAT, THE WAY OTHERS HAD DONE IT AND WHAT LEGISLATION WAS OUT THERE THAT DEALT WITH THOSE AND QUITE FQUITEFRANKLY TO GO BACK TO THET IN 2001, THAT'S ONE OF THE REASONS WE WENT TO TUITION ONLY.

IT IS SO EMBEDDED IN EDUCATION CODE IS THAT WHAT THE BOARD CAN SETTLE AND CAN DO.

YOU CAN'T ARGUE THAT POINT.

>> THERE IS A SIGNIFICANT AMOUNT OF COMPLEXITY WITH RESPECT TO TO INCLUDING LEARNING MATERIALS.

IT'S RECOGNIZED BY THE FEDERAL REGULATIONS.

I THINK IT HAS RAMIFICATION FOR TITLE 4 FUNDING AND OTHER THINGS WE WANTED TO BE SPECIFIC.

WE NAVIGATED, WE USED D.C.

COUNCIL WHO NAVIGATED THIS WITH THE DEPARTMENT OF EDUCATION.

THE RECOMMENDATION WAS INCLUDED AS PART OF THE COST OF THE LEARNING MATERIALS IS PART OF THE COST OF TUITION AND ATTENDANCE.

IT'S DONE WITH A NOD TOWARDS THE REGULATION THAT EXIST.

PART OF A COST OF TUITION AND RECOGNIZED AS SUCH.

WE'LL BRING YOU A POLICY THAT INCLUDED OPT-OUT BECAUSE IT'S A REQUIREMENT OF A FEDERAL REGULATIONS, NOT BY COURSE, COULD OPT OUT OF THE ENTIRE COURSE.

THAT IS SOMETHING THAT IS NAVIGATED VERY CAREFULLY TO COMPLY WITH THE FEDERAL REGULATIONS, WE HAVE THAT POLICY AND PROCEDURE AND PLACE.

WE'LL HAVE THAT IN PLACE BEFORE FALL OF 2020.

>> C. COMPTON: TRUSTEE RITTER, YOUR CONCERN IS IF SOMEBODY ASKS WHY WE INCREASE THE TUITION, HOW DO WE EXPRESS IT AND DESCRIBE IT?

>> P. RITTER: I THINK THERE IS --

>> P. RITTER: THERE IS A WHOLE LOT OF COMPLEXITY I DON'T UNDERSTAND.

IF WE'RE GOING TO, THE BOARD IS GOING TO INCREASE TUITION BY A THIRD --

>> I TAKE ISSUE WITH THAT.

IT'S REALLY DECREASING THE --

>>

>> P. RITTER: WHAT THEY ARE GETTING IS INSTRUCTIONAL MATERIALS.

AVAILABLE, ANYTIME, ANY PLACE.

THAT'S A HUGE VALUE IF IT'S EMBEDDED IN TUITION.

--

>> C. COMPTON: I CAN SEE PEOPLE ASKING ABOUT, WHY WE'RE DOING AND WHAT THE EXPLANATION IS.

WE'RE LEGAL AND WE'RE GIVING THE PUBLIC AN EXPLANATION THAT DIDN'T MAKE SENSE.

AS TO WHY.

WE'RE JUST NOT -- WE DECIDED WE WANTED TO DO THIS.

WE HAD A REASON TO DO ITMENT

>> IT'S THE -- AND IT WOULD PROBABLY BE HELPFUL FOR THE TO PRODUCE TALKING POINTS FOR HE BOARD THAT THE --

[00:40:01]

>>

>> THE SAVINGS TO STUDENTS THAT WILL BE ARE REALIZED INCLUDING AND THERE IS CERTAINLY EMPIRICAL EVIDENCE THAT SHOWS HAVING LEARNING MATERIALS ON THE FIRST DAY IMPROVES SUCCESS.

>> CHANCELLOR MAY: THAT WAS REALLY THE DRIVER.

WHEN WE LOOKED AT THIS IN 2014, ONLY 43% OF OUR STUDENTS WERE BUYING MATERIALS FRO FOLLETT IN THE BOOK STORE.

SOME PERCENT GETTING THEM FROM SOMEWHERE ELSE.

THE PUBLISHERS KNOW EXACTLY HOW MANY BOOK AND MATERIALS AND BASICALLY WHERE THEY ARE THAT'S OUTS THERE.

THEY WERE TELLING US THAT 40% WERE NEVER GETTING THEM PERIOD.

IT VARIED BY PUBLISHER.

BUT ALL WERE PRETTY MUCH IN THAT RANGE.

WE ELECTED TO TAKE AWAY ANY LEARNING MATERIALS FROM THE BOOK STORE AND PASSED THAT ON.

THAT RESULTS IN A 6% [INDISCERNIBLE] TO REALLY HAVE AN IMPACT ON LEARNING OUTCOMES.

SO WE KNOW THAT STUDENTS RIGHT NOW SPEND ROUGHLY 27 MILLION OUT OF POCKET TOTAL FOR LESS THAN 50% TO GET ALL THE BOOKS.

BY THAT SAME AMOUNT, 27 MILLION, NOW 100% GOOD ALL THE BOOKS THAT IS OUT THERE.

IT'S SPREAD MORE WIDELY AND LOWERS THE COST PER INDIVIDUAL STUTES AND PROCESS.

I LIKE THE TUITION BECAUSE IT IS SIMPLE.

IT WILL TAKE A LITTLE EXPLAINING ON THE FRONT END.

BUT AFTER A YEAR, IT'S HOW MUCH IT COSTS.

AND IT'S A SIMPLE STORY.

WHWHEN I LOOK AT SOME OF, THE OTHER INSTITUTIONS AROUND THE STATE AND COUNTRY, I DON'T THINK THEY ARE AS TRANSPARENT AND HONEST ABOUT THEIR PRICING STRATEGIES AS WE ARE.

I THINK THIS IS THE INTEGRITIES WE WANT TO MAKE SURE WE ARE CLEAR.

AND --

>> D. ZIMMERMANN: IS THERE GOING TO BE AN OPT-OUT?

>> YES.

FOR TITLE FOUR STUDENTS.

>> D. ZIMMERMANN: OKAY.

ONLY TITLE IV.

>> CHANCELLOR MAY: 36% OF OUR STUDENTS.

>> JOHN, THESE TWO ACTIONS ARE GOING TO INCREASE THE REVENUES FOR US, THE TUITION.

>> P. RITTER: AND ALSO INCREASE OUR OBLIGATIONS TO A VENDOR IF WE DO THE CONTRACT AMENDMENT.

IS IT THERE ANY OF ERMANE TO THE CURRENT BUDGET OR THE NEXT --

>> ACTUALLY, IT WILL BE A NEXT --

>> P. RITTER: THIS IS A BUDGET AMENDMENT, WHAT ARE THE NUMBERS?

>> IT WILL START FOR FY21.

NO AMENDMENT.

IT WILL BE IN THE BUDGET IN HE FY21.

>> CHANCELLOR MAY: ROLLED INTO NEXT YEAR'S BUDGET ON THE REVENUE AND EXPENSE SIDE.

>> P. RITTER: ALL REV FROM THE FALL OF 2020 IS [INDISCERNIBLE]

>> THAT IS CORRECT.

>> P. RITTER: THE SAME WITH PAYMENTS TO FOLLETT?

>> CORRECT.

>> CHAIR D. FLORES: WHEN DO WE WANT TO COMMUNICATE TO THE STUDENTS THE CHANGE IN TUITION AND HAT THAT MEANS FOR THEM?

>> WE'RE WORKING WITH MARKETING AND WE'LL BUILD UP TO THIS.

AS I SAID, AFTER ABOUT THE FIRST YEAR, THE CHANGE OVER HAS A TIME PERIOD.

AFTER THE FIRST YEAR, I THINK PEOPLE ARE GOING TO REALIZE, I COME HERE AND GET MY BOOKS LIKE IN K-12.

IT'S A MATTER OF FACT.

AND I THINK THE REAL PEOPLE ARE GOING TO BE EXCITED JUST LIKE OUR SUMMER UNIVERSITY STUDENTS WHO TAKE COURSES.

YOU MEAN, I'M ONLY PAYING $79 AND GETTING BOOKS TOO? THERE IS A LOT OF TO ME, A LOT OF POSITIVE THINGS WHEN THEY SEE IT.

I QUITE FRANKLY, THERE ARE A NUMBER OF COLLEGES ROUND WHO ARE PUTS THESE TYPE OF PROGRAMS IN BECAUSE THEY UNDERSTOOD WHERE WE ARE IN UNDERSTANDING THE IMPACT ON HAVING AND THE STUDENT OUTCOMES.

NOT EVERYBODY DOES IT THE SAME.

EARLY COLLEGE HIGH SCHOOL PROGRAMS, EVERYONE DOES THEM DIFFERENT.

BUT PEOPLE ARE REALLY FOLLOWING OUR LEAD BECAUSE THEY KNOW HOW IMPORTANT IT IS FOR STUDENTS.

AND REDUCING THE PRICE OF LEARNING MATERIALS.

WESLEY SOME

>>

>> VICE CHAIR W. JAMESON: IT'S A ZERO NET AFFECT?

>> REVENUE INCREASE, [INDISCERNIBLE] BOTTOM LINE ZERO.

>>

>> YEP.

FOR US, REMEMBER WHEN WE TALK ABOUT THE TOTAL 27 MILLION, IT'S ALL STUDENTS, WHETHER THE ISD IS BUYING THE BOOKS OR STUFF LIKE THAT.

OUR CURRENT FOLLETT CONTRACT IS

[00:45:04]

ROUGHLY $13 MILLION.

I'M LOOKING TO SEE IF THAT'S THE AGREEMENT.

WE'LL BE SOMEWHERE IN THE 17 TO $20 MILLION RANGE AFTER PUTTING THIS IN.

IT'S HARD TO PUT A FIGURE UNTIL WE GET HISTORY.

MY GUESSTIMATES PUT IT IN THAT RANGE.

WE EXPECT TUITION UP BY 27 MILLION AND EXPENSES BACK UP AFFECT.ILLION AND HAVE NO BUDGE- I'LL SAY WE'RE INCREASING OUT OF DISTRICT AND OUT OF STATE A LITTLE BIT MORE THAN JUST THE

[B. Approval of Amendment to Agreement with Follett Higher Education Group, Inc. to Provide Digital and Print Course Material to Students]

$20.

THAT'S IN THE PROPOSAL.

BUT OUT OF OF DISTRICT AND OUT OF STATE HAVE NOT BE INCREASED OVER THE YEARS.

AND IDEA IS OUT OF STATE WE GET FOR THE MOST PART NO STATE APPROPRIATIONS OR TAXES AND OUT OF DISTRICT WE DON'T GET TAXES FOR.

WE ARE RAISING THOSE BY A FEW DOLLARS ON WHAT WE'RE DOING.

BUT IT'S NOT A LOT.

AND THAT'S PARTLY BECAUSE WE DON'T WANT TO BRING YOU TUITION INCREASES ON OUT OF STATE AND OUT OF DISTRICT STUDENTS.

>> D. ZIMMERMANN: 6B1 TALKS ABOUT AGREEMENT WITH FOLLETT HIGHER EDUCATION GROUP INCORPORATED.

TO PROVIDE DIGITAL AND PRINT COURSE MATERIAL TO STUDENTS.

READING THROUGH THAT IT TALKS THEM ABOUT RUNNING THE BOOK STORE.

>> THEY WILL.

>> D. ZIMMERMANN: THE BOOK STORE IS RUN THROUGH 2026.

IF THE DIGITAL COMES UP THAT WE FIND SOMEBODY ELSE WITH PRETTIER, BIGGER, BETTER, WE HAVE A CONTRACT WITH THE DIGITAL?

>> AGAIN, WE CAN CANCEL THE CONTRACT WITH 60-DAYS NOTICE ANYTIME.

I DON'T SEE IN THE NEAR-TERM FUTURE THAT WE'LL GO SOME OTHER SOURCING THAN A BOOK STORE MANAGER ARRANGEMENT TO BE ABLE TO MANAGE THE PUBLISHERS FOR US.

ULTIMATELY, ALL OF OUR LEARNING MATERIALS ARE ONLY GOING TO COME FROM PUBLISHERS.

>> THERE ARE OVER 300 WE USE RIGHT NOW.

WE DON'T WANT TO BUILD THE EXPERTISE TO DO THAT.

WHILE I THINK 48% ARE DIGITAL TODAY, THAT WILL INCREASE.

BUT THERE WILL ALWAYS BE--

>> 20%.

AT THE BEST, THERE WILL STILL BE 20% PRINTED.

>> D. ZIMMERMANN: BOOK STORE AND DIGITAL?

>> THEY ARE SUPPLYING LEARNING MATERIALS, WHATEVER DELIVERY METHOD IS NECESSARY FOR THE FACULTY ADOPTION.

>> CHANCELLOR MAY: IF THEY ARE DIGITAL, THEY ARE PUT ON THE DIGITAL BOOKSHELF.

IF HARD COPY, IN A BAG THEY PICK UP AT THE BOOK SCORE.

>> WE'RE RUNNING LATE.

TO YOU WANT TO SAY A FEW WORDS ABOUT THE OTHER ITEMS?

>> ONLY IF YOU WANT TO HEAR THEM.

WOULD YOU LIKE ROB TO TALK ABOUT THEM?

>> SPARE THEM THAT IF YOU WISH.

>> P. RITTER: I THINK WE HAVE A QUESTION.

>> OKAY.

THE OTHER TWO ITEMS, ONE IS WE'RE AT IT AGAIN.

WE'RE GOING TO DO A REFUNDING.

AS I TOLD YOU BEFORE, WE'VE DONE THE BIG MONEY.

THIS IS AN AMOUNT.

AND ALSO ALLOWS US TO ACCELERATE OUR DEBT.

WE'RE PAYING OFF A DEBT EARLY.

AND I PRETTY MUCH WILL START TO GET TO THE POINT OF RUNNING OUT OF THESE THINGS TO DO.

BUT THERE IS A FEW MORE IN THE FUTURE WE MIGHT BE ABLE TO DO SOMETHING WITH.

>> CHANCELLOR MAY: WE SAID THIS WOULD HAPPEN WHEN DOING THE BOND.

>> CORRECT.

AND THE BUDGET WE TALKED ABOUT THIS THAT WE WOULD BE DOING THAT.

THE OTHER IS WHICH WE'RE GOING TO BUILD THEN TO THE BUDGET BOOK IS WE FOUND OURSELVES WITH INSTITUTIONAL SCHOLARSHIP NEEDS FOR WHAT WE CALL ENTERPRISE SCHOLARSHIPS AND ALSO USING THE MONEY FOR PTK MEMBERSHIP SCHOLARSHIPS.

AS WE DID NOT HAVE ENOUGH MONEY IN THE BUDGET TO COVER THE CURRENT YEAR'S AMOUNT.

WE'RE ASKING THE BOARD.

IT'S ONE OF THOSE THINGS WE'RE REQUIRED TO DO TO MOVE THAT MONEY INTO INSTITUTIONAL SCHOLARSHIPS SO WE CAN COVER THIS YEAR.

THEN IN THE FUTURE, WE'LL MAKE SURE THERE IS BUDGET BOOK SECTION THAT HAS THE SCHOLARSHIP REQUEST IN IT.

>>

>> HAVEN'T HAD THE NEED.

YOU CAN READ THE HISTORY.

WE'VE HAD THESE OTHER SOURCES WE'VE USED.

AND WE, I THINK 2015 OR HELP ME TISKA, WAS THE LAST TIME WE ASKED FOR THE MONEY.

WE'VE GOTTEN TO THE POINTS WE PROBABLY WOULD UNLESS WE FIND ANOTHER SOURCE WE WANT TO PLOP THE MONEY IN AND NOT DO ANYTHING WITH IT.

EXCUSE ME FOR THE TECHNICAL TERM, PLOP.

>> CHAIR D. FLORES: THAT ITEM 3B, $275,000, HOW IS THAT APPORTIONENED TO THE COLLEGES? WHAT AMOUNT GOES TO THE COLLEGES?

>> WE BASE BASE IT ON, WE HAVE

[00:50:01]

AN ALLOCATION.

THE PTK MEMBERSHIPSIZE THE HARDEST FOR US TO FORECAST.

ONE COLLEGE MAY HAVE MORE THAN THE OTHERS.

WE DON'T WANT TOLD WE RAN OUT OF MONEY.

WE CAN'T AFFORD A PTK SCHOLARSHIP.

WE WANTED THE FLEXIBILITY OF BEING ABLE TO MOVE THE DOLLARS AROUND.

WE'RE NOT GIVING YOU A SPECIFIC ALLOCATION BUT A DOLLAR AMOUNT SO WE CAN WORK WITH THAT.

HOW DO WE COME UP WITH BASING THE ALLOCATION?

>> THE COLLEGES HAD INPUT AS TO HOW MUCH THEY FELT THEY WERE GOING TO USE.

SINCE 2015 BASICALLY BEEN ABLE TO SPIN DOWN AND NOW WE'RE AT THE POINT WE NEED TO REPLENISH.

SOME OF THE COLLEGES STILL HAVE RESIDUAL FUNDS LEFT FROM THE LAST TIME WE DID IT.

SO THEY ARE ASKING ANYWHERE FROM 10,000 TO 50,000 DEPENDING ON WHEN ENROLLMENT AND WHAT THEY ANTICIPATE THE ENROLLMENT TO BE.

AND THEN ECAUSE THE PTK MEMBERSHIP AND THE STUDENT BASE IS GROWING, SOME COLLEGES DO HAVE MORE NEEDS THAN OTHERS.

THE AMOUNT IS VARYING BY SCHOOL.

WE HAVE THE 85,000 TO REMENX THE P

* This transcript was compiled from uncorrected Closed Captioning.