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>>> THIS OPEN MEETING OF THE BOARD OF TRUSTEES IS AUTHORIZED IN 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.
[1. Certification of Notice Posted for the Meeting ]
CHANCELLOR.>> MR. CHAIR, I CERTIFY THAT THIS MEETING WAS POSTED PURSUANT TO THE CODE.
>> IT'S BEEN A LONG TIME SINCE WE MET.
WE'LL HAVE OUR BOARD MEETING LATER.
DO YOU WANT TO GIVE AN OPENING ON WHAT WE ARE ABOUT TODAY?
WE ARE GOING TO GATHER THE MASTER PLANNING WITH THE CAPITAL PLAN FOR GOING FORWARD AND THAN THAT WILL OF COURSE LEAD RIGHT INTO WHAT WE [INAUDIBLE] AS WE GET READY.
I WILL BE ON THE -- I WILL SCHEDULE THIS FOR AUGUST.
IN AUGUST WE WILL ALSO BE HEARING FROM [INAUDIBLE].
[2A. Network Educational and Facility Master Plan Process Presenters: John Robertson & Justin Lonon]
>> WE ARE GOING TO REVIEW A COUPLE LITTLE THINGS FIRST.
MARY HAS GIVEN YOU A NICE ONE-PAGE HAND OUT OF THE GUIDING PRINCIPLES WHICH WHAT WE ARE GOING TO TALK ABOUT THIS MORNING.
WE'LL HAVE THEM DONE VERY SHORTLY.
THE EDUCATIONAL PLAN, THE CAPITAL PRIORITY PLANS ARE TO GIVE YOU A VIEW OF WHAT WE ARE WORKING ON.
THIS IS GOING TO BE SOMETHING WE ARE DOING ANNUALLY AND IT WE ARE FLEXIBLE TO DO WHATEVER NEEDS TO BE DONE.
WITH HAT IN MIND, YOU HAVE ON THE SHEET THAT'S PROBABLY [INAUDIBLE] AND COME BACK TO YOU WITH A SLIGHTLY DIFFERENT STATEMENT.
WE RETAIN A HIGH QUALITY DIVERSE NOW FACULTY AND STAFF, THAT WE NEEDED TO DO SOME QUALIFIERS ON IT.
WHAT YOU HAVE THERE IS A STATEMENT THAT READS ATTRACT STAFF THAT SUPPORT THE NETWORK CONCEPT, PRIORITIZE STUDENT SUCCESS AND COMPLETION AND PREPARE STUDENTS FOR THE COMPLEXITIES OF WORK AND LIFE.
I THINK THAT TRUSTEE RITTER HAS MANY THINGS IN THE TERMS OF LEADERSHIP.
I ALSO SEE THE OPPORTUNITY TO DEAL WITH THE ISSUES WE KNOW STUDENTS ARE DEALING WITH INCLUDING FOOD SECURITY, THE MENTAL HEALTH ISSUES.
THEY ARE ALL ENCOMPASSED IN THAT PREPARE FOR COMPLEXITIES OF WORK AND LIFE.
THE OTHER PIECE OF IT, THE HIGH QUALITY RESONATES WITH THE THINGS THAT WE ARE LOOKING FOR IN TERMS OF PROFESSIONAL PREPARATION, EXPERTISE AND CAPACITY IN THE ROLES.
THIS IS NOT LIMITED TO ONE FAS -- FACET OF OUR GROUP.
>> IF I MIGHT ADD, WHAT DOES EMPLOYEE SUCCESS LOOK LIKE?
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I DON'T SEE -- YOU KNOW, I -->> WE HAVEN'T DONE THAT STATEMENT WITH THAT ONE.
FOR OUR PARTICULAR STUDENT SUCCESS THAT IS WE HAVE TO EAL WITH THE ISSUE OF EMPLOYMENT ON A SEPARATE CATEGORY.
>> WE ARE HELPING DEFINE WHAT WE MEAN BY EMPLOYEE SUCCESS.
>> WE TRIED TO PUT THESE INTO PRIORITIES BUT THEY ARE --
>> AND WE ARE NOT FORGETTING ABOUT THE PRIORITIES AT ALL.
>> YOU CAN PROBABLY PUT THAT ON THE MATRIX AND SHOW HOW.
>> LIKE YOU DID WITH THESE STRATEGIC PRIORITIES ON THE RIGHT-HAND COLUMN.
>> WAS THERE ANY IMPLICATION OF THE ORDER?
>> YOU MIGHT MAKE STUDENT SUCCESS NUMBER ONE.
IT'S NOT A CREATING RANK ORDER.
ANY ONE OF THESE -- AS WE WALK THROUGH THE PROCESS [INAUDIBLE] AS A PRIORITY --
>> YOU KNOW, FOR THE FOUNDATION THEN PRIORITY TO THE FACT THAT EVERYTHING IS HOLDING IT UP.
THEN YOU'RE NOT GETTING INTO THIS IS NUMBER ONE, NO, THIS IS NUMBER ONE, THIS IS MORE IMPORTANT THAN THIS.
>> I DIDN'T EVEN THINK ABOUT THE -- WHAT IS BEING USED IS GUIDING PRINCIPLES WHICH IN AND OF ITSELF DOESN'T INDICATE A PRIORITY. THESE ARE THINGS WE LOOK AT.
WE'LL CERTAINLY TAKE IT UNDER CONSIDERATION.
>> GOING TO TALK NEXT ABOUT THE EDUCATIONAL MASTER PLAN.
JUSTIN AND I WILL GIVE AN OVER VIEW OF WHAT WE ARE LOOKING AT.
THE FIRST IS TO DO A DEFINITION OF WHAT WE BELIEVE AN EDUCATIONAL PLAN IS.
>> SO THE GUIDING PRINCIPLES AND THE FRAME WORK TO PULL THE VISION, THE MISSION, THE STRATEGIC GUIDANCE ALL TOGETHER THROUGH A COMMON SORT OF WAY AND ALIGN THOSE PRIORITIES SO TO MAKE SURE WE'RE MANAGING NEEDS FOR BUSINESS AND FROM STUDENTS.
THAT'S KIND OF THE BROAD VIEW OF IT.
SO THE EDUCATIONAL MASTER PLAN LOOKS AT THE COMPETING PRIORITIES AND APPROACHES THAT WE ARE TAKING ALONG WITH RESOURCES WHILE TRYING TO BRIDGE ALL THESE THINGS TOGETHER AND FACILITIES PLANNING.
SO MUCH OF THE CONVERSATIONS WERE HAD OVER A PERIOD OF MONTHS LEADING TO HOW DO WE PUT ALL THIS TOGETHER AND HAVE A COMMON VIEW AND A COMMON EYE AND LOOKING AT COMPETING VARIABLES ALONG THE WAY.
SO, YOU KNOW, AS YOU HAVE LOOKED AT THE SEVEN MASTER PLANS YOU'LL SEE THAT THERE ARE SOME COMPETING VARIABLES AND THAT OBVIOUSLY BECOMES IMPORTANT WHEN WE GET INTO THE CONVERSATION ABOUT FINANCIAL RESOURCES.
BUT, YOU KNOW, WE LOOK AT THE OVER ALL NEEDS AND WHERE DO THEY
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CONFLICT OR THE IMPACT, FOCUSING ON THE RIGHT THINGS TO MAKE SURE THAT WE ARE ALIGNING WITH BUSINESS AND INDUSTRY AND THE CERTAINLY, DUPLICATION OF EFFORTS IS SOMETHING THAT HAS COME UP BEFORE AND DUPLICATION OF PROGRAMS. WHAT THIS WILL DO IS HELP US LOOK AT THAT IN TERMS OF THE PROGRAM ALIGNMENT.WE ARE LOOKING AT A RIGHT SIZE PERHAPS, EFFICIENT PROGRAMS AND THEN SEEING WHETHER THERE'S CONFLICT.
YOU KNOW, RIGHT NOW WE HAVE SOME REAL WORK TO DO WITH ALL OF THAT AND IDENTIFY THE BEST AY TO DO THE EDUCATIONAL MASTER PLAN.
>> RIGHT THERE [INAUDIBLE] SO HOW [INAUDIBLE] THERE ARE ISSUES AND INITIATIVES, EFFORTS THAT WE HAVE IN A MANNER VERSES WHAT IS [INAUDIBLE].
>> STRATEGIC MEETING HAT WE HAD, IT WAS ONE OF THE THINGS WE TALKED ABOUT.
I THINK WE'VE BEEN TALKING ABOUT THAT, THE INDIVIDUAL PLANS TOGETHER AND DEVELOPING THE FRAME WORK TO BE ABLE TO HAVE THIS NETWORKED PRIORITY OF WHAT WE ARE TRYING TO ACCOMPLISH AS A DISTRICT.
>> AND, AGAIN, IT DOES BEGIN TO TRULY OPERATE AT ALL [INAUDIBLE].
IT WILL BE INTERESTING WHAT WE HEAR --
THAT DIRTY C WORD AROUND HERE.
WE ARE CERTAINLY MINDFUL OF EVEN THAT LANGUAGE WITH PEOPLE THROUGHOUT THE DISTRICT.
THIS REALLY IS ABOUT JUST HAVING AN APPROACH AND HOW IT SHAKES OUT IN TERMS OF CENTRALIZED AND DECENTRALIZED BUT T IS REALLY TAKING THOSE STEPS TO SAY WHERE DOES IT MAKE SENSE WHERE WE HAVE ONE AREA OF FOCUS AND THAT COULD BE -- WE'LL SEE AS WE GET INTO THIS BUT CENTRALIZATION COULD BE A NETWORK APPROACH.
IT COULD BE, YOU KNOW, SOMETHING MORE --
>> A VISION AT THE COLLEGE LEVEL.
>> THAT WORD JUMPED OFF THE SLIDE HEN I SAW IT TOO AND IT I WAS GOING TO KEEP MY MOUTH SHUT BUT SINCE OU DID --
>> THE CENTRALIZED -- OKAY, THE LIGHTENING BULB COMING DOWN FROM LAMAR AND EVERYBODY, THAT'S NOT GOING TO WORK.
SO -- BUT IF EVERYBODY IS SORT OF ON BOARD WITH THE NETWORK CONCEPT, THINKING OF IT MAYBE WE CAN [INAUDIBLE] MAYBE WE CAN CREATE INCENTIVES.
>> HE USED THIS DEFINITION FROM WEBSTER AND WHATEVER AND YOU ARE CORRECT THAT CENTRALIZED PRIORITIES DOES NOT MEAN DISTRICT TELLS EVERYBODY WHAT TO DO.
THIS IS A GROUP EFFORT BUT IT'S A NETWORK AND THAT'S THE WORD I WANTED TO USE IN THERE, THE NETWORK OF PRIORITIES.
>> WE MIGHT WANT TO CONSIDER THAT BECAUSE YOU'RE RIGHT, THE C WORD IS A DIRTY WORD JUST LIKE IN THE MINDS OF IN THE D WORD, DIVERSITY IS A DIRTY WORD.
>> AND THEN AS WE LOOK AT SOME OF THE DRIVERS IN THIS PROCESS, AGAIN, TO HAVE THIS COMMON APPROACH AND FOCUS AND DIRECTION SO THE DISTRICT WIDE GOALS, PRIORITIES AND OVER ALL APPROACHES ARE ALIGNED AND SO OTHER C WORDS, CONSISTENT AND COLLABORATIVE PROGRAM REVIEW WHICH WE HAVE BEEN ENGAGED IN AN EFFORT PROGRAM REVIEW, YOU KNOW,
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FOR SEVERAL MONTHS NOW THAT WILL GIVE US A LEG UP AND A HEAD START AS WE ENGAGE IN THIS EDUCATIONAL MASTER PLAN AND PROCESS BECAUSE WE HAVE BEGAN TO PULL DAY I DAY -- DATA AND HAVE TEAMS LOOKING AT SOME OF THESE THINGS ALREADY.>> AGAIN THE WORD CENTRALIZED SCARES ME BECAUSE NIMBLE IS A WORD THAT WE HEARD HOW MANY TIMES.
MARY, HOW MANY TIMES HAVE YOU SAID THE WORD NIMBLE?
>> THE WHOLE IDEA OF CENTRALIZED, TO ME IT SEEMS LIKE THAT IS GOING TO BE YET ANOTHER SYMBOL IF IT'S CNTRALIZED.
>> IF WE USE NETWORK STRATEGIC EDUCATIONAL DIRECTION I THINK THAT WE'LL HAVE THE C WORD -- HE'S ALREADY DONE IT?
>> BUT ALSO CAN YOU HELP DEFINE THE REFINED APPROACH TO DEFERRED MAINTENANCE?
>> STARTING [INAUDIBLE] WE DO THEM ANNUALLY BUT WHAT WE WANT TO DO IS REALLY START TO REVIEW THIS AGAIN IN THE PROCESS.
WE DON'T JUST WANT TO DO THAT THAT ONE TIME AND THEN SIT THERE AND NOT BE APPROACHED.
ALL THESE THINGS BECOME A PROCESS.
WE ARE GOING TO DO THEM ANNUALLY.
PRIORITY OVER ALL IN THE -- OVER ALL IN THE BIG PICTURE THE OVER ALL THINGS WON'T CHANGE BUT CERTAIN THINGS CAN COME UP DURING THE YEAR THAT CAN CHANGE SOME OF THOSE PRIORITIES.
WE WANT TO HAVE THAT FLEXIBILITY THAT WE DON'T JUST MAKE ONE LIST AND THAT'S ON AN ANNUAL BASIS.
>> THIS IS LIKE GROUPS AND PAVING PARKING LOTS AND PA PAINTING.
>> WE ARE GOING TO BE LOOKING AT PRIORITIES. THAT IS THE FIRST THING THAT WE HAVE TO DO IN THE DEFERRED MAINTENANCE LIST.
THIS IS A LIST OF WHAT THEY NEED.
THOSE [INAUDIBLE] IN THAT AREA.
WHEN WE DID IT WE HAD THIS $86 MILLION LIST AND WE ARE TAKING TIME TO FINISH THAT, WHEN WE FINISH IT WE'RE GOING TO HAVE ANOTHER $86 MILLION.
THAT'S TOWARDS LOOKING AT THOSE AND MAKING SURE THAT ANNUAL PRIORITIES ARE STILL -- IT'S MORE WORK THAN WHAT WE'VE DONE BEFORE BUT IT'S THAT CRITICAL.
>> BE A LITTLE MORE SPECIFIC BY PUTTING THE WORD ANNUAL IN THERE.
>> AND YOU WILL TALK ABOUT THAT IN THE BUDGET LATER, RIGHT?
>> BUT SEE THAT'S JUST -- YEAH.
>> ONE OF THE THINGS WE ARE GOING TO BE DOING ALSO IS LOOKING FOR STANDARDS LIKE THAT.
THIS FITS IN WELL WITH THE SUSTAINABILITY-TYPE APPROACH.
RECOMMENDED LIFE CYCLE OF CERTAIN CRITICAL KEY ELEMENTS.
BOILERS, CHILLERS, AIR HANDLERS, PARKING LOTS, WHATEVER.
WHAT SHOULD BE OUR LIFE CYCLE F LOOKING AT THOSE THINGS AND MAKING SURE THAT WE ARE FITTING TO THAT.
WE HAVE SOME SITUATIONS WHERE WE'VE GOT THE SAME CRITICAL THINGS.
>> [INAUDIBLE] THAT NEEDED TO BE DONE BUT T GOT PUT OFF AND PUT OFF AND PUT OFF.
NOW THAT'S A BOND ISSUE, MORE OF A CAPITAL NEEDS ISSUE BUT STILL NEEDS TO BE DONE.
>> IF IT'S A LEAKY ROOF, IF YOU HAVEN'T FIXED IT IN 10 YEARS JUST FACE IT, YOU JUST NEED TO RIP IT DOWN.
>> THIS NEXT SLIDE YOU'VE PERHAPS SEEN BEFORE IN SOME OF HIS NETWORK TALKS AROUND THE DISTRICT AND IN THE COMMUNITY ABOUT DIFFERENT COMMUNITY COLLEGE M MODELS AND THE HISTOR OF COMMUNITY COLLEGES AND HOW THE MODELS HAVE CHANGED AND GROWN AND HOW MANY SYSTEMS STARTED.
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WE STARTED WITH COLLEGES OFFERING AT HE TIME IN A BROAD SENSE AND THEN THE NETWORK MODEL WHICH MOVING TO AND SOME ELEMENTS WE ARE ALREADY THERE, CERTAINLY THE FOCUS IS TO BE LOOKING AT THE APPROACH, THE FOCUS OF HOW DO WE NEED TO SERVE THE COMMUNITY AND SOLVE PROBLEMS BY COLLABORATING AND IN PARTNERSHIP WITH OTHERS.SO, YOU KNOW, THE GRAPHIC REALLY TELLS THE STORY THE BEST, THE STUDENT IS IN THE MIDDLE OF EVERYTHING THAT WE ARE DOING BECAUSE WE WANT TO BE INSTITUTION CENTRIC.
>> YOU KNOW, I THINK MOST OF US ALL GREW UP WITH A COMPREHENSIVE COLLEGE MODEL.
THIS IS A PARADIGM TO A DIFFERENT ODEL OF WHO -- I REMEMBER THEM SAYING THE COLLEGES DON'T HAVE NEEDS, THE DISTRICT DOESN'T HAVE NEEDS, THE COMMUNITY HAS NEEDS, STUDENTS HAVE NEEDS.
WHAT WE ARE DOING BEHIND THE NETWORK MODEL IS WHAT WE ARE GOING TO NOW.
THIS IS A SHIFT FOR A LOT OF PEOPLE TO MAKE THAT CHANGE.
[INAUDIBLE] UNDER THE COMPREHENSIVE MODEL.
I THINK WE FIRST STARTED ON THIS JOURNEY TWO TO THREE YEARS -- I'M PUTTING WORDS IN YOUR MOUTH BUT IT WASN'T GOING TO HAPPEN OVER NIGHT.
THIS IS A PARADIGM SHIFT OF WHERE WE ARE TRYING TO MOVE.
>> YOU'RE TALKING ABOUT A BOLT.
THAT WAS A LIGHTNING BOLT COMMENT. AS THE CHANCELLOR CAME IN HE LOOKED AT WHERE THE NEEDS REALLY LIED.
CERTAINLY INTERNALLY THERE WAS BUZZ ABOUT WAIT A MINUTE, WHAT DO YOU MEAN THE COLLEGE DOESN'T HAVE NEEDS, THE DISTRICT DOESN'T HAVE NEEDS.
THAT BEGAN THE SHIFT IN THIS DIALOGUE IN CONVERSATION.
>> YEAH, WE KIND OF DID THAT FORMALLY TWO YEARS AGO.
>> AND SO THIS JUST REPRESENTS SOME OF THE MANY INITIATIVES GOING ON.
SO THERE ARE EFFORTS TO -- SOME FROM THE COLLEGES, SOME FROM DISTRICT OPERATIONS.
IT'S AN [INAUDIBLE] TO HELP LEAD THAT ON BEHALF OF ALL OF THE DISTRICT.
SOME OF THESE OTHER THINGS ARE LED BY OTHERS IN THIS BUILDING.
SO WE DO OUR BEST INITIATIVES TOGETHER BUT EDUCATION IS AT THE CENTER OF ALL OF THIS.
YOU SEE THIS GRAPHIC REPRESENTS THE PRIORITIES AND THE STRATEGIC PRIORITIES TO HAVE ONE OVER ALL FOCUS WITH THE GUIDING PRINCIPLES FUELLING THOSE.
>> THESE BALLOONS ARE NOT MEANT TO ENCOMPASS EVERYTHING.
YOU CAN SEE THE GUIDING PRINCIPLES ARE.
THAT'S WHY WE SPENT SO MUCH TIME ON IT AND TALKED ABOUT IT AND WILL REVIEW IT.
>> I THINK AS WE DEVELOP AT LEAST FROM THE EDUCATIONAL PLAN AND CAPITAL BUDGET PLAN THAT WE ARE TALKING ABOUT TOGETHER, I THINK YOU WILL START TO SEE OW THIS IS WRAPPED TOGETHER.
>> BUT WHAT ARE THE METRICS OF SUCCESS?
>> WHAT ARE GOING TO BE THE METRICS OF SUCCESS, THE DELIVERABLES? I NEED A MEASURE IF IT IS GOING TO BE WORKFORCE DEVELOPMENT [INAUDIBLE] THE GOALS AND THE PRIORITIES.
>> AS YOU'LL SEE WHEN WE GET INTO THIS PART OF OUR CONVERSATION TODAY IS TO ENGAGE IN EXPERTISE AND GET A CONSULTANT TO HELP US THROUGH.
SO CERTAINLY THERE ARE SOME METRICS THAT WE HAVE DISCUSSED, THAT WE HAVE PUT IN THE PROGRAM REVIEW PROCESS.
THERE'S SPECIFIC METRICS AS A PART OF ALL OF THAT TO HELP US EVALUATE WHICH PROGRAMS, WHERE
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WE ARE WITH EACH OF THESE METRICS.>> I KNOW THAT WE CERTAINLY BENEFITTED BY HAVING A CONSULTANT TO LOOK AT THE FACULTY ISSUES BECAUSE I DON'T THINK THAT WE WOULD HAVE GOTTEN AN OBJECTIVE AND COMPREHENSIVE LOOK IF IT WAS DONE [INAUDIBLE] UNDER THE [INAUDIBLE] ACCOMPLISH SUCCESSFULLY THAT MAYBE WE HAVE A CONSULTANT HELP US ESTABLISH THE METRICS OF SUCCESS, WHAT THE SUCCESS IS.
>> WE WORKED ON THIS AND WE SAID WE NEED AN EDUCATIONAL PLAN TO HELP DRIVE THE MASTER PLAN PROCESS.
I'LL ADMIT IT, WE RESEARCHED, BORROWED FROM OTHERS THIS CONCEPT.
THIS IS NOT HOW THINGS ARE NORMALLY DONE.
MOST PEOPLE HAVE [INAUDIBLE] AND THE NETWORK THIS CONCEPT.
QUITE FRANKLY IF WE COULD DO IT, IT WOULD ALREADY BE DONE.
>> I THINK IT WOULD BE -- EXCUSE ME.
>> I THINK IT WOULD BE GOOD FOR THIS SLIDE IF WE KIND OF HAVE IT CLOSER IN THE BOARD ROOM.
HOPEFULLY THE OTHER TRUSTEES WILL AGREE.
IT ENCAPSULATES WHERE WE ARE GOING.
YOU KNOW, I HAD TROUBLE REMOVING STUDENT SUCCESS AND [INAUDIBLE] BUT I FORGOT THE TERM FOR IT.
THE STRATEGIC PRIORITY IS THE GUIDING PRINCIPLES.
I THINK THAT JUST ENCAPSULATES THE DIRECTION WE ARE TRYING TO GO AND THE LAYERS OF THAT DIRECTION APPROACH.
YOU KNOW, PPROACHED AT WHAT STAGE.
>> I'M GETTING A LITTLE CONFUSED BECAUSE WE HAVE ALL THESE PLANNING [INAUDIBLE] ONE OF TOP OF ANOTHER.
WE HAVE THE NETWORK CONCEPT, WE HAVE STRATEGIC PRIORITIES AND GUIDING PRINCIPLES.
AT SOME POINT WE NEED TO SIMPLIFY THIS A LITTLE BIT OR RATIONALIZE THIS A LITTLE BIT.
THERE'S JUST A WHOLE BUNCH OF STUFF GOING N HERE.
I DON'T HAVE A NOTION ABOUT HOW TO DO IT BUT I'M --
>> THERE'S PEOPLE WHO DO THIS ON THE [INAUDIBLE].
AS MARY SAID, THIS IS A WORK IN PROCESS ON THE GUIDING PRINCIPLES AND THAT'S WHERE WE CAN PULL ALL THESE THINGS TOGETHER.
WHAT IS REDUNDANT, WHAT NEEDS TO BE IS HOW DO WE PULL THEM ALL TOGETHER.
I'M GOING TO SHOW YOU SOME EXAMPLES IN THE MODEL LATER IN THIS PRESENTATION. IT'S USING THE STRATEGIC PRIORITIES AND THE GUIDING PRINCIPLES TOGETHER TO FINISH THIS STUFF.
WE ARE VERY CAWARE WE NEED SOME HELP.
>> TRUSTEE RITTER, I THINK THAT'S FRANKLY A [INAUDIBLE] COMMENT GIVEN THAT HISTORICALLY WE TREATED EVERYTHING AS A [INAUDIBLE] WE'VE DONE THE ACADEMIC WORK AND SOMETIMES NOT EVEN -- WE ARE LOOKING AT WHAT OUR PARTNERS NEEDED IN TERMS OF SCHOOL DISTRICTS AND OTHERS AND UNIVERSITIES.
SO WHAT I THINK IS THAT WE CAN'T --
>> THAT'S WHAT HAS LED TO SOME OF THE EDUCATIONAL -- YOU'RE ACTUALLY SEEING IT DECLINE IN THE RATE OF INDIVIDUALS WHO GRADUATE FROM HIGH SCHOOL AND MOVE ON AND GET A PST-SECONDARY CREDENTIAL.
I THINK PART OF THAT SIMPLY BECAUSE PEOPLE ARE [INAUDIBLE] A COMMON GOAL AND AGREE ON THE -- WHETHER IT BE THE PRIORITIES,
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[INAUDIBLE] AND BE A LITTLE BIT MESSY S WE MOVE FORWARD AND SORT IT OUT.THAT'S WHAT -- I THINK THAT'S WHY IT HASN'T BEEN DONE, IT GETS A LITTLE MESSY IN THE PROCESS.
THE LINES ARE BLURRED AS TO WHERE -- HOW THINGS CONNECT.
THAT'S KIND OF AUDI[INAUDIBLE] AS WELL.
WE LOOK AT WHAT WE HAVE TO NOT ONLY MEET THE INDIVIDUALS AND MEMBERS OF OUR COMMUNITIES BUT DO IT IN AN EFFECTIVE WAY.
>> PLEASE HELP ME SEE THE LAYERS.
[INAUDIBLE] JUST REALLY HELPS ME.
>> AND SO THAT -- BACK TO THE EARLIER CONVERSATION ABOUT PRIORITY, WE CAN CONTINUE TO WORK TO REFINE THAT IF IT'S THIS GRAPHIC OR ANOTHER THAT MAY HELP.
OVER ALL THE EDUCATIONAL MASTER PLAN WILL CREATE A RAME WORK FOR EACH OF THESE THINGS, TO HELP US OPERATE UNDER THE NETWORK AND THE PROGRAM DEVELOPMENTS AND SOME OF THAT WE'VE BEGUN.
WITHIN OUR OVER ALL HUMAN RESOURCES PLANNING, ALIGNING OUR HUMAN RESOURCE CAPITAL.
IDENTIFY -- YOU KNOW, THIS IS ONE AREA HERE WE HAD SOME CONVERSATION RECENTLY AMONG EXECUTIVES ABOUT WHAT REALLY CONSTITUTES A SIGNATURE PROGRAM AND SO THAT WILL HELP US IDENTIFY WHERE WE NEED TO BE AND OTHER AREAS THAT PERHAPS WE NEED TO WIND DOWN.
>> WLL, CERTAINLY THERE ARE SOME LIKE OUR CULINARY PROGRAM AT EL CENTRO.
WE CERTAINLY ALKED AT THIS TABLE ABOUT HAS CAPACITY TO GO AND TO BECOME EVEN MORE OF A SIGNATURE PROGRAM KNOWN [INAUDIBLE].
>> THE DEFINITION I USE IS IF I HAD TO NAME THE TOP -- IF I HAD TO NAME A CULINARY PROGRAM PEOPLE KNEW OF CORDON BLU.
WE HAVE A PROGRAM THAT'S KNOWN NATIONWIDE, DISTRICT WIDE.
PEOPLE ARE COMING TO US TO SEE HOW WE DO IT.
>> WELL, IF YOU LOOK AT THE HEALTHCARE INDUSTRY I FEEL IT'S A GREAT, GREAT EXAMPLE OF THAT.
THERE'S SOME THINGS HAT WE JUST NEED TO DO EVERYWHERE ALL THE TIME.
>> TRANSFER PROGRAMS, THERE'S CERTAIN OTHERS RELATED TO JOBS AND SKILLS AND TRADES THAT JUST SIMPLY NEED TO BE AVAILABLE.
THERE ARE OTHERS THAT FRANKLY THE STANDARDS ARE HIGH N THAT WE NEED TO INVEST IN, MUCH LIKE IN HEALTHCARE.
THERE'S ONLY -- MOST NETWORKS USUALLY HAVE ONE PEDIATRIC TRAUMA CENTER, THEY HAVE ONE PLACE THAT CAN HANDLE THAT.
THEY HAVE ONE PLACE FOR BURN CENTERS AND THE LIKE SO THAT THEY REALLY CAN [INAUDIBLE] THAT'S WHAT WE ARE TALKING ABOUT HERE PROBABLY FOR 80 TO 90% OF THE POPULATION.
THERE ARE SOME THAT WE NEED TO REALLY OTHER WISE [INAUDIBLE] THEY CAN'T BE [INAUDIBLE] AND BE SUCCESSFUL.
>> THAT'S WHAT I WAS WONDERING ABOUT.
YOU'RE LOOKING AT PROPOSING INVESTING MORE IN THOSE PROGRAMS VERSES OTHER PROGRAMS AND DO YOU USE THAT IN QUALITY FOR -- BY TAKING RESOURCES AWAY ROM THE OTHER PROGRAMS?
>> HOPEFULLY WHAT WE ARE OFFERING EVERYWHERE NEEDS TO BE HIGH QUALITY AND MAKING IT AVAILABLE.
THERE'S SOME AREAS THAT FRANKLY COULD BE A HIGH QUALIFY QUALIF QUALITY PROGRAM WHERE WE NEED TO INVEST MORE.
OUR OTHER PROGRAM AREAS TAKES MORE THAN 20 CHAIRS IN A CLASSROOM AND A WHITE BOARD TO MAKE IT WORK.
WE HAVE TO INVEST IN THE PROGRAM
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AND ON A LARGER SCALE WHERE IT MAKES MORE SENSE ECONOMICALLY IF WE ARE ABLE [INAUDIBLE].>> KEEPING IN MIND THAT OTHER PROGRAMS -
>> -- YOU DON'T WANT TO SACRIFICE THE QUALITY OF THEM.
IF YOU'VE GOT A PROBLEM WITH ENROLLMENT PEOPLE CAN SEE THAT THOSE ARE NOT -- YOU KNOW, EVEN THOUGH IT MAY NOT BE --
>> BUT PERCEPTION COULD BECOME THAT THOSE PROGRAMS ARE NOT AS HIGH QUALITY AND SOMEBODY ELSE IS OFFERING THE SAME PROGRAM SOMEWHERE ELSE THAT'S BETTER TO GO TO.
>> I THINK THAT'S A BALANCE TO THAT.
I DON'T THINK THAT WOULD BE GOOD IF THAT HAPPENED.
>> YOU DON'T WANT YOUR 80 ND 90% OF THE TUDENTS --
>> -- IN THE IN THE TOP QUALITY PROGRAM AND YOU'RE DIVERTING FROM THE SNCHL -- [INAUDIBLE].
>> I LOOK AT TARRANT HO HAS A PREVENTION PROGRAM.
GREAT FACILITIES WHAT THEY HAVE DONE.
THEY RECENTLY DID A VERY GOOD BUILDING ON THEIR INDUSTRIAL TRADES WITH THEIR HVAC CENTER AND STUFF LIKE THAT.
WHAT WE ARE TALKING BOUT IS MAKING SURE THAT WE GET -- WE DON'T SPREAD THE RESOURCES OUT NECESSARILY TO WHERE WE HAVE SO-SO PROGRAMS. IT'S BETTER TO HAVE A HIGH QUALITY PROGRAM ACROSS THE DISTRICT RATHER THAN HAVING SO-SO PROGRAMS. YOU CAN'T FORGET -- TRUSTEE COMPTON IS RIGHT, YOU CAN'T FORGET ABOUT EVERYTHING ELSE THAT WE ARE DOING.
I WILL HELP WORK WITH YOU ON THAT.
>> THAT WHEN WE START IN A PROGRAM AREA THAT EVERYBODY GOES I WANT ONE OF THESE TOO.
WE REALLY CAN'T AFFORD TO DO THAT.
>> WHAT WE NEED TO DO IS DECIDE DIRECTION, WHERE WE ARE GOING TO INVEST, HELP THAT EFFORT BE HIGHLY SUCCESSFUL IN A COST EFFECTIVE WAY KNOWING THAT IF WE START WATERING THE SOUP SO TO SPEAK THAT WE'LL IMPACT THE QUALITY.
>> I THINK HISTORICALLY IN THE DISTRICT WITH --
NOT A CHANGE OF DIRECTION BUT I DON'T THINK WE'VE LAID IT OUT AS [INAUDIBLE].
I HAVE A HARD TIME RECONCILING THAT SLIDE WITH THE GUIDING PRINCIPLES.
JOHN, THE WAY THIS IS ROLLING OUT -- YOU AND I HAVE TALKED ABOUT IT.
WE HAVE THREE REALLY DISTINCT -- I DO SHARE YOUR OVERSIGHT PROC PROCESSES IN ALL THAT TYPE OF STUFF.
SECOND, HOW WE MANAGE OUR LIST AND OUR PEOPLE, OUR CADEMIC PROGRAMS AND THOSE TYPES OF THINGS AND THEN WE TIE THEM TOGETHER WITH THE BUDGET WHICH FORMS DECISIONS ON THINGS LIKE THE TAX RATES AND THE GUIDING PRINCIPLES WITH THE DCCD WE USE THE PHRASE MASTER PLAN THAT HAS THOSE THREE ELEMENTS.
[INAUDIBLE] THE INTANGIBLE PART.
WE ARE SEEING THE EDUCATION MASTER PLAN IS OW INCLUSIVE AND PROVIDES A WHOLE BUNCH OF STUFF THAT'S NOT [INAUDIBLE].
YOU KNOW, HOW DO YOU UNDERSTAND THESE DISTINCTIONS? I THINK THEY MATTER.
THEY MATTER IN TERMS OF OUR PROCESS AND HOW WE APPROACH ISSUES RELATED TO FACILITIES, RELATING TO OUR WORKFORCE AND RELATING TO OUR BUDGET.
THIS IS OVER LAY THAT SEEMS CONFUSING TO ME QUITE FRANKLY BECAUSE I THINK OF THE EDUCATION MASTER PLAN AS BEING A COMPONENT OF THAT BUT IT'S HARD TO SAY IT'S ENCOMPASSING OF EVERYTHING.
>> THE WORD I USE IS THE EDUCATIONAL MASTER PLAN HELPS DRIVE THE DECISION THAT WE ARE GOING TO MAKE ON THESE THINGS.
WHAT DO WE NEED IN HUMAN RESOURCES FOR FACULTY FUNCTIONS AND SO ON.
WHAT IS OUR DUCATIONAL MASTER PLAN THAT HELPS CREATE THAT FRAME WORK FOR MAKING SOME OF
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THOSE DECISIONS, REAL ESTATE DECISIONS THAT WE DO.DO WE PUT ADDITIONAL LOCATIONS IN PACES? DO WE NEED MORE REAL ESTATE? I WOULD HOPE THE EDUCATIONAL MASTER PLAN COULD SAY IF YOU ARE GOING TO PUT THIS PROGRAM IN HERE ALL THE STUDENTS ARE LOCATED IN THIS PART OF THE CITY AND WE DON'T HAVE ANYTHING THERE, THAT'S PROBE -- PROBABLY NOT GOING TO HAPPEN BUT IT'S THOSE TYPES OF THINGS THAT HELPS US DEVELOP WHAT WE SEE.
I'LL SAY WE HAVEN'T REALLY DONE THIS BEFORE SO A LOT OF THIS IS GOING TO BE WORKING WITH A CONSULTANT AS MUCH AS WE ARE FINDING OUT BUT AS WE WORK WITH COLLIER ON WORKING ON THE CAPITAL PART OF THIS, THAT'S WHAT WE REALIZED WAS DO WE KNOW WHERE WE ARE GOING.
THE EDUCATIONAL MASTER PLAN HELPS TO BUILD THAT.
>> I DON'T REALLY SEE THE DIFFERENCE BETWEEN THE NETWORK PASTER PLAN AND THE EMP.
EVERYTHING THAT'S IN THE GUIDING PRINCIPAL PAGE IS ALSO UNDER THE EDUCATIONAL MASTER PLAN.
WHERE IS THE DISTINCTION? I MEAN, THIS IS A SUB CATEGORY OF THE MASTER PLAN OR IS IT REALLY THE SAME THING?
>> I THINK THE ANSWER TO THAT IS YES ON BOTH QUESTIONS.
I'LL SAY BECAUSE WHAT WE ARE TRYING TO DO IS TIE ALL THIS TOGETHER.
IT'S WHAT IS DRIVING THE OPERATING BUDGET, WHAT IS DRIVING THE CAPITAL PLAN IS A FORMALIZED DISTRICT WIDE NETWORK EDUCATIONAL PLAN BECAUSE IT'S A COMPONENT OF THE WHOLE MASTER PLANNING PROCESS.
>> THE GUIDING PRINCIPLES AND FORM, WHAT NEEDS TO BE IN THE FRAME WORK AND THEN THE PROCESS UNDER THE FRAME WORK WE HAVE HUMAN RESOURCE PLANNING.
MAINTAIN HIGH QUALITY, ET CETERA, ET CETERA.
SO ME WE ARE PLANNING [INAUDIBLE].
TWO YEARS AGO WE WEREN'T TALKING ABOUT THOSE.
IF WE ARE DEALING WITH THAT AND THAT'S BUILT IN TO OUR EDUCATIONAL MASTER PLAN IT'S THEN GOING TO EFFECT OUR OPERATING BUDGET AND OUR CAPITAL BUDGET.
THAT'S THE BIGGEST REASON WHY I'M PUSHING THIS HAS TO BE ON AN ANNUAL BASIS. AS WE DEVELOP THESE, AS WE CAN STAY NIMBLE TO DO THOSE THINGS THAT WE WANT TO BE ABLE TO DO THAT EDUCATIONAL MASTER PLAN WILL BE -- AND ONE OF THE QUESTIONS FOR THE EDUCATIONA MASTER PLAN IS HOW MANY CAN WE HAVE, HOW MANY PROGRAMS CAN WE HAVE TO HELP FRAME WHAT WE ARE GOING TO DO IN THE OTHER CASES.
WE KNOW IT TAKES CLASSROOM SPACE, WE KNOW IT TAKES ADMINISTRATIVE SPACE TO BE ABLE TO DO THOSE THINGS.
SO IT'S NOT -- IT HAS TO BE PART OF THE OVER ALL PLAN.
WHEN I WAS IN THE BUSINESS WORLD THE PLAN DROVE HE OPERATING BUDGET AND THE OPERATING BUDGET DROVE THE CAPITAL BUDGET -- I'M A MANUFACTURING PERSON, WHAT YOU NEEDED TO IMPROVE TO FORMULATE THAT BUSINESS PLAN OF WHAT YOU WERE GOING TO DO.
I DON'T WANT TO CALL IT A SALES PLAN BECAUSE THAT TENDS TO CHEAPEN IT BY WHAT WE DO WITH THE PLAN.
WHAT ARE WE GOING TO DO AS A DISTRICT TO MEET THE NEEDS OF THE COMMUNITY, THE STUDENTS AND BUSINESSES.
>> THAT'S KIND OF WHY I'M NOT IN DSAGREEMENT THAT WE NEED TO INTEGRATE AND WORK ACROSS ALL AREAS.
>> PROBABLY STILL NEED TO CLARIFY THAT LANGUAGE.
I THINK THAT SOME OF THESE PROBABLY HAVE DIFFERENT MEANINGS TO SOME OF US THAN OTHERS.
>> I LOOK AT THAT AND I THINK THAT'S KIND OF WHAT IS - WHERE WE ARE IN THIS.
SO WE NEED TO KIND OF WORK THAT BECAUSE NO ONE IS GOING TO ARGUE THAT WE NEED TO TAKE INTO CONSIDERATION PRIORITIES, WHICH DIRECTION WE ARE GOING.
WE ONLY HAVE LIMITED RESOURCES.
WE ARE GOING TO START DOING MORE EARLY COLLEGE IN HIGH SCHOOLS, THEN WHAT ARE WE NOT DOING OVER HERE IN ORDER TO MAKE THE BUDGET WORK AND THAT FRAME WORK SO THAT WE ARE THINKING ABOUT FROM AN EDUCATIONAL SIDE WHAT THE NEEDS ARE AND WHAT WE ARE GOING TO UNVEST.
THAT ULTIMATELY DETERMINES OR BUDGET NEEDS AND RESOURCES AND WHAT WE NEED TO ALLOCATE TO GET THERE.
IF YOU BEGIN TO LOOK AT THIS AS
[00:45:02]
THE FOUNDATION FOR WHAT WE ARE GOING, THAT EVERYTHING IS PRY ORL ORL-- PRIORITIZED ON A -->> ARE YOU SAYING WE DON'T NEED --
>> SOME UNDERSTANDING ABOUT OUR --
>> Y PERSONALLY -- I AGREE WITH EVERYTHING YOU SAID.
TO ME HAVING AN INTEGRATED NETWORK MASTER PLAN MAKES A LOT OF SENSE. THERE'S THREE MAY MAJOR COMPONENTS OF THE MASTER PLAN, THE ACADEMIC COMPONENT AND [INAUDIBLE] AND THE BUDGET COMPONENT.
THE EDUCATION MASTER PLAN IS THE ACADEMIC COMPONENT.
THIS IS NOT REAL ESTATE, IT'S NOT CAPITAL.
THAT DOESN'T MEAN HAT THESE THREE STATEMENTS DON'T ALK TO EACH OTHER OR INFORM EACH OTHER.
IN TERMS OF THE BARD'S ROLE --
>> THE PROCESS FROM THE EDUCATION COMPONENT UNDER THE EDUCATION BECAUSE THAT'S WHERE THOSE KINDS OF ISSUES LIVE.
>> JUST A WORD OF CAUTION THAT I'VE HEARD OVER THE YEARS, ESPECIALLY WHEN I WAS SERIOUSLY ENGAGED IN THE WORKFORCE, I'VE ALWAYS BEEN TOLD BY MORE EXPERIENCED AND SEASONED PEOPLE IS YOU WANT TO [INAUDIBLE].
>> THE FIRST TIME WE GO THROUGH THIS I BELIEVE IT'S GOING TO TAKE SOME TIME BUT IT AUGHT TO BE PART OF THE ANNUAL PROCESS OF WHAT WE -- IS HOW TO TIE ALL THIS TOGETHER AND KEEP IT SIMPLE SO THAT IT DOESN'T TAKE MUCH TIME.
IN TERMS OF -- ARE YOU SAYING TAKE THE EDUCATIONAL MASTER PLAN OUT OF THE OVER ALL NETWORK PLAN?
>> NO, I'M SAYING THAT -- I LIKE THE IDEA OF AN INTEGRATED NETWORK MASTER PLAN WITH THREE COMPONENTS, ABILITIES COMPONENTS, ACADEMIC/HR/FACULTY LOAD IN THE SECOND OMPONENT AND THAT'S WHAT I THINK.
YOU KNOW [INAUDIBLE] AND THEN THE THIRD COMPONENT BE THE BUDGET WHICH -- 3
>> I THOUGHT BY CONSENSUS WE HAD DECIDED THAT THERE'S FOUR BUDGETS, NOT LUMPING PERSONNEL INTO ACADEMICS BECAUSE THEY ARE NOT FOCUSED ON THE ACADEMICS.
>> IN TERMS OF THEIR ACADEMIC [INAUDIBLE] BUT IN THEIR ROLE IT'S NOT SPECIFICALLY ACADEMIC.
>> WELL YOU CAN AY THE SAME THERE MAY BE SOME PLATFORM PROCESSES WITH HR AND I.T. THAT NEED TO BE CONSIDERED BUT WE GOT THE BUDGET.
>> SO WE -- BECAUSE MONDAY WE HAD ASKED BY CONSENSUS I THINK THAT THEY INCLUDE WORK ON FOUR BUDGETS BUT NOW YOU'RE FOCUSING ON THREE BUDGETS SO WE NEED TO DECIDE IS IT THREE OR FOUR BUDGETS.
WE NEED TO LOOK UNDER THE GUIDING PRINCIPLES, THESE THINGS H HERE.
>> I THINK THAT WE WORK ON ALL THE BUDGETS FRANKLY.
>> YOU NEED TO THINK WITH ONE MIND.
ARE WE TALKING ABOUT THREE OR FOUR OF THEM?
>> ACADEMIC, FACILITIES, PERSONNEL AND BUDGET THERE'S NOT A COMMA BETWEEN PERSONNEL AND BUDGET.
>> IN GRAMMAR THE LAST COMMA HAS BEEN REPLACED BY THE AND.
>> THAT WAS SOME 20 OR 30 YEARS AGO.
>> SOME WAS BROUGHT UP THAT OU HAVE TO HAVE THE COMMA BEFORE THE AND.
IN TERMS OF HOW LANGUAGE AND GRAMMAR HAS EVOLVED THE LAST COMMA BECOMES THE AND.
>> THAT'S WHY UNDEREDUCATIONAL -- THE EDUCATION MASTER PLAN I DO NOT UNDERSTAND HOW THE FACILITIES MANAGEMENT FITS IN THERE.
MAYBE LET ME GIVE YOU SOME FRAME WORK FOR IT.
WHAT IT DOES IS -- WE DON'T KNOW IN ADVANCE WHAT WE ARE GOING TO PUT IN THE FACILITIES
[00:50:02]
PROGRAMMATICALLY.>> OR HOW TO KEEP THEM UP OR SO FORTH.
SO THE ISSUE THERE IS MAYBE IT CREATES NOT NECESSARILY A FRAME WORK BUT IT INFORMS ALL THE VARIOUS DECISIONS THAT WE HAVE TO MAKE, WHETHER IT BE AROUND OUR HUMAN RESOURCE PLAN, WE HAVE TO ALIGN THEM.
>> FACILITIES MANAGEMENT TO ME TALKS ABOUT CHANGING THE LIGHTBULBS, MAKING SURE THE DOORS OPEN AND CLOSE, MAKING SURE THE BUILDINGS ARE USABLE.
IF WE ARE LOOKING AT THE WAY WE ARE USING SPACE, THAT WOULD BE MORE OF AN ACADEMIC PLANNING, ACADEMIC USE OF OUR SPACES.
>> YEAH, WHEN WE TALK ABOUT --
>> BUT MANAGEMENT TO ME IS TAKING OUT THE TRASH AND MAKING SURE EVERYTHING IS WORKING.
>> EVERYTHING IS WORKING ALSO IN THE CLASSROOMS.
>> AKING OUT THE TRASH AND MAKING SURE THE LIGHTBULBS -- BUT THAT SHOULDN'T BE IN THE EDUCATION PLAN.
>> EACH ONE OF OUR BUCKETS COULD HAVE ALL THESE.
>> THAT'S NOT WHAT THAT IS REFERRING TO.
WHAT IT IS REFERRING TO IS WITHIN THE COLLEGE WE HAVE COMPETING INTERESTS FOR SPACE.
HOW DO WE MANAGE THOSE FACILITIES AT ANY ONE TIME? HOW O WE MAKE A DECISION DO WE GIVE 10,000 SQUARE FEET TO THIS PROGRAM? LET ME SUGGEST WE HAVE SOME CLASSIFICATION AND NOMENCLATURE ISSUES TO WORK THERE.
>> WHY DON'T WE COMMIT THAT THROUGH AND BRING IT BACK.
>> KIND OF LIKE A GLOSSARY OF TERMS?
>> WE ARE TRYING TO GET BETTER ON THOSE.
>> BUT PROGRAM SPACE MANAGEMENT IS SO MUCH BETTER THAN FACILITY SPACE MANAGEMENT.
>> THINK THE POINT OF ALL THIS BEING WHEN WE PUT TOGETHER THE FACILITY MASTER PLAN IT WAS NOT LOOKING AT ANYTHING BUT THE FACILITIES.
IT DID NOT CONSIDER THE PROGRAMS, IT DID NOT CONSIDER THE PROGRAMS IN THERE.
IT DID WAS LOOK AT WHAT IS THE CONDITION OF THE SPACE, HOW DO WE PROJECT OUT HISTORICALLY, WHAT IS GOING TO HAPPEN FROM A GROWTH PERSPECTIVE.
WHAT WE DIDN'T FIGURE AND S PART OF WHAT MARY PUT UP LAST WEEK IS THAT WE NOW HAVE MOST -- MOST OF THE PROGRAMS HAVE LAB SPACE, MOST OF THE HINGS HAVE CHANGED THAT ARE FUNDAMENTALLY DIFFERENT TODAY AND YOU CAN'T LOOK AT HOSE ANYMORE.
YOU CAN'T JUST ASSUME WE ARE GOING TO NEED MOSTLY CLASSROOM WITH CHAIRS, TABLES AND WHITE BOARDS TO WORK AND THEREFORE WE HAVE TO MAKE IT -- ACCOMMODATE WHAT THE NEEDS ARE.
>> WE JUST NEED TO BE SURE THAT STAFF IS WORKING ON THIS AND THAT WE ARE CLEAR AS A BOARD ON WHAT WE WANT THEM TO, WHO -- THEM TO WORK ON.
>> WE DO NEED TO CONTINUE TO BRING THIS BACK BOTH ON THE EDUCATIONAL WORKFORCE SIDE AND THE --
>> DO YOU WANT TO TAKE A SHOT AT READING WHAT YOU THINK THE BOARD WOULD WANT?
THE WHOLE INTEGRATED MASTER PLAN THAT WE ARE PUTTING IN PLACE.
WE HAVE AN IDEA OF WHAT IS COMING DOWN TO PIPE, WHAT DO WE SEE, WHAT DO WE -- WHAT PROGRAMS ARE WE DESIGNATING COMING DOWN THE PIPE, HOW CAN WE START TO PLAN FOR THAT RATHER THAN JUST GOING WITH HATEVER COMES OUT THE PIPE, THAT SOMEONE COMES IN AND TALKS TO DR. MAY TOMORROW AND SAYS WE NEED TO PUT IN ROBOTICS, BUT HAS THAT BEEN THOUGHT THROUGH IN OUR PLAN ANDD HOW DOES IT EFFECT THESE AREAS.
WE'VE BEEN USING THE WORD MASTER PLAN TO -- IN SUB CATEGORIES AND USING THEM IT GOES TOGETHER INTO THAT.
I ALSO SAY WE ARE CHARTING NEW GROUND HERE THAT WE HAVEN'T DONE BEFORE.
WE NEED AN EXPERT TO COME IN AND HELP US WITH THIS SO WE CAN BRING SOME OF THESE DEAS BACK TO THE BOARD TO BE SURE THAT WE GET CLARIRITY ON IT.
[00:55:03]
ANALOGY, WEAVING THE STRINGS OF A FOUNDATION AND THEN THERE'S A WEB.AS WE ADD TO IT THAT INCLUDES WHAT WE ARE DOING WITH EDUCATION, WHAT WE NEED TO DO WITH OUR PERSONNEL TO GET THEM READY FOR WHAT THE EDUCATION PLANS WITH OUR FACILITIES ARE, WHAT DO WE NEED [INAUDIBLE] SO IT BECOMES ALSO A WORK IN PROGRESS BUT IT'S SOMETHING THAT PRESENTS WHAT WE ARE AND WHAT MATTERS.
IT'S ALWAYS ITEMS THAT ARE THE FOUNDATIONAL ONES.
IF IT DIFFERS FROM IT, THEN THAT'S WHERE WE GOT TO STOP AND SAY, IS THIS IN LINE WITH WHAT WE WANTED TO DO AS OUR GUIDING PRINCIPLES.
I DON'T THINK -- I THINK THAT WE PROBABLY DO HAVE THE [INAUDIBLE].
BUT THE GUIDING PRINCIPLES ARE THE FRAME WORK AND THE THINGS THAT ARE WEAVING INTO OUR INTEGRATED MASTER PLAN FOR THE NETWORK COME UP AGAINST THOSE.
JUST AS A WAY TO THINK ABOUT IT.
>> SO I WOULD SAY I THINK THIS IS -- I MEAN, IT WAS A HELPFUL CONVERSATION FOR US BECAUSE IT IS THE FIRST TIME WE'VE DONE THIS, TO TAKE THE STEP BACK AND HAVE THE BROADER VIEW IS A VERY DIFFERENT IN DENTIFYING NEXT STEPS.
THIS SLIDE HERE REALLY IS THE PROCESS BY WHICH WE WOULD DO THAT.
MOST OF HE -- YOU KNOW, IF WE HAVE -- WE HAVE THE NOD TO EN ENGAGE.
WE BELIEVE THAT IN THE FALL WE COULD HAVE THE DRAFT ELEMENTS OF THIS TOGETHER BY WHICH WE COULD ENGAGE IN THIS CONVERSATION.
IN ANOTHER COUPLE OF SLIDES WE'LL GET INTO THE STEPS BY WHICH TO DO THAT.
SOME OF THESE ELEMENTS, AGAIN, WE HAVE PIECES PULLED TOGETHER SO THIS REALLY IS TRYING TO THREAD THE NEEDLE AND NIT IT ALL TOGETHER.
>> WE DON'T NEED A CONSULTANT TO DO ALL THE DATA.
WE HAVE OUR HISTORICAL ENROLLMENT DATA.
IT'S HELPING PULL THOSE THINGS TOGETHER.
>> SO A COUPLE OF SLIDES AGO WE LOOKED AT THIS GRAPHIC THAT LOOKS AT THE OUT PUTS THAT WE HOPE ALL OF THIS WILL INFORM TO DRIVE THOSE ELEMENTS ON THE RIGHT.
THE NEXT STEPS, WE'LL PULL TOGETHER OUR STAKEHOLDERS, SYSTEM DEVELOPMENT OF THIS, SELECT THEM AND THEN AGAIN PULL THE STAKEHOLDERS [INAUDIBLE] AN THEN DEVELOP THE PROCESS BY WHICH WE WILL DO ANNUALLY.
SO, AGAIN, WHILE THIS CONVERSATION TODAY MAYBE GETS A LITTLE DEEP AS WE HAVE TO WORK THROUGH WHAT IT IS [INAUDIBLE].
>> WHAT DO YOU HAVE ALLOCATED TO ONE PROCESS?
>> WE DON'T KNOW WHAT IT WILL COST.
WE DO HAVE SOME RESERVE DOLLARS IN HE BUDGET TO BE ABLE TO HANDLE THAT BUT WE HAVE NOT GONE OUT IN THE MARKETPLACE AND SINCE WE HAVEN'T DONE THIS BEFORE I'M NOT EVEN SURE HOW MUCH IT'S GOING TO COST TO KEEP SOME OF THIS AROUND 200 TO $250,000.
>> DO YOU HAVE AN OVER ALL BUDGET FOR THIS THAT YOU'RE GOING THROUGH?
>> YES, WE'VE PUT DOLLARS IN THE BUDGET FOR -- I'M GOING TO TALK A LITTLE BIT LATER.
IT'S AN AMOUNT AND IT'S THIS -- AN AMOUNT FOR A CONSULTANT TO HELP US [INAUDIBLE] COLLIER AND THE LAST PART --
>> COLLIER IS IN THE BUDGET FOR $250,000 RIGHT NOW.
I'M NOT SURE WHAT AN EDUCATIONAL PLAN WILL COST.
I'M HOPING WE CAN EVEN KEEP IT LESS THAN THAT.
WE DON'T NEED -- THE COLLEGES HAVE DEVELOPED SOME THINGS, WE JUST NEED A REFINEMENT IN HOW WE
[01:00:01]
TIE THAT TOGETHER.WE DON'T NEED TO SPEND -- I CERTAINLY DON'T WANT TO BE SPEND AGO YEAR GOING THROUGH THIS.
THIS SHOULD BE ABLE TO BE DONE IN LESS THAN THREE MONTHS TO GIVE US THE FRAME WORK OF WHAT WE ARE DOING.
THEN WE'VE GOT TO TEST IT DURING THE YEAR.
WE HAVE TO SEE HOW THIS PROCESS WORKS SO WE ARE NOT PLANNING ALL THE TIME AND BEING ABLE TO KEEP IT GOING.
SO THAT'S WHAT WE'VE GOT SO FAR.
>> THE PLANNING ALL THE TIME [INAUDIBLE].
>> QUITE FRANKLY THAT'S THE RUB, HOW DO YOU GET THOSE STRATEGIC GOALS THAT YOU WANT TO ACCOMPLISH WHEN PEOPLE AVE REAL JOBS.
WE ARE ALL FIRED UP ABOUT DOING IT BUT WE HAVE TO MAKE THIS TO WHERE IT'S SIMPLE. THAT IS GOING TO BE PART OF WHAT WE ARE DOING.
WE SPEND A LOT OF TIME ON THE OPERATING BUDGET RIGHT NOW.
IT'S BEEN A PET PEEVE WITH ME ON THE OPERATING BUDGET.
WE HAVE TO SIMPLIFY THOSE THINGS.
>> AND WE HAVE SPENT TIME, THE THREE OF US ESPECIALLY HAVE SPENT TIME TALKING TO OTHERS THAT HAVE ENGAGED IN THIS.
WHILE WE HAVE -- OUR SYSTEM PROVIDES SOME [INAUDIBLE] WE THINK THAT WE CAN GET THIS DONE WITH THE CONSUL TALENT IN A RELATIVELY SHORT AMOUNT OF TIME.
>> IS THIS THE TYPE OF WORK THAT THE BOSTON CONSULTING GROUP DOES AS WELL WITH WHAT THEY HAVE DONE WITH US?
>> WE THINK THERE'S OTHERS THAT HAVE SPECIALIZED IN THIS BETTER THAT LOOKS AT THIS.
WE'VE BEEN TALKING TO OTHER COLLEGES AND LOOKING AT WEBSITES ON WHO DOES A BETTER JOB.
THEY ARE GOOD, THEY ARE MORE -- BOSTON CONSULTING CAN DO A LOT OF THINGS BUT I THINK THIS IS MORE SPECIALIZED AND A LITTLE OUT OF THEIR AREA.
WE ARE NOT LETTING COLLIER DO IT EITHER.
THIS IS IN OUR AREA OF THINGS TO DO.
WE REALLY DON'T HAVE ANYBODY ON BOARD RIGHT NOW THAT WE HAVE USED BEFORE.
WE HAVE TO TEST THE MARKET WITH PROBABLY SOMEBODY NEW. IT'S NEW TO US.
WHAT WE ARE LOOKING AT IS THOSE WHO HAVE ALREADY USED THEM AND GOTTEN GOOD RESULTS.
>> SO FAR HOW MUCH TIME HAS BEEN DEVOTED TO WHAT HAS BEEN DONE SO FAR?
>> ON COLLIER OR ON THE EDUCATION --
>> BITS AND PIECES BUT OVER ALL HOW LONG HAVE YOU BEEN IN THIS PLANNING PROCESS?
>> WELL, WE STARTED WITH COLLIER WORKING WITH US FROM A REAL ESTATE STANDPOINT.
THE COLLEGE'S MASTER PLANS ACTUALLY STARTED ALMOST FOUR YEARS AGO.
IN TERMS OF THE COLLEGES BEGINNING WORK ON THE MASTER PLAN?
>> THAT'S WHEN THEY SAID THAT WE ARE GOING TO DO MASTER PLANS AND THE BOARD AGREED TO THAT.
THEN WHEN I GOT THE JOB I REALIZED THERE ASN'T A PRIORITY TO IT AND WORKED WITH CLYDE AND SAID LET'S GET A PRIORITY.
ONE OF THEM DIDN'T GET STARTED AND I'M NOT GOING TO NAME THEM BUT THEY HAVE AN EXCELLENT MASTER PLAN NOW.
I REALIZED IF WE KNEW WHAT WE KNEW TODAY WE WOULD HAVE DONE ALL THIS FROM DAY ONE IN THIS PLANNING PROCESS.
A LOT OF THE REASON THAT WE ARE CHANGING IS BECAUSE WE ARE MOVING FROM THAT COMPREHENSIVE COMMUNITY COLLEGE CONCEPT TO THE NETWORK CONCEPT.
SO IF WE KEEP DOING WHAT WE'VE DONE IN THE PAST WE ARE GOING TO DEVELOP THE SAME MODEL THAT WE'VE HAD BEFORE AND THAT'S NOT WORKING UNDER THE NETWORK MODEL.
I'M TALKING LIKE I'M REAL CLEAR ON THIS BUT I'M LEARNING MORE EVERY DAY.
THAT'S WHY I'M TRYING TO USE SOME EXPERTS ABOUT THIS TO HELP US MOVE THIS PARADIGM SHIFT INTO THIS NETWORK MODEL AND TO ALL THE TYPE OF UDGETING THINGS THAT WE DO.
I WISH I COULD SAY THAT I COULD GO LOOK [INAUDIBLE] THEY'RE NOT.
THEN CO -- CONSULTANTS WILL COST THOUSANDS AND THOUSANDS OF DOLLARS.
DO YOU HAVE NYBODY THAT WOULD SHARE WITH US?
>> THEY HAVE AND THEY HAVE SHARED WITH US BUT IT'S FOR THEIR SPECIFIC ORGANIZATION.
IT DOESN'T MEET OUR BUSINESS, ITS DOESN'T MEET UR INDUSTRY, IT DOESN'T MEET OUR COMMUNITY AND DOESN'T NECESSARILY MEET OUR STUDENTS LET ALONE THE PHYSICAL LOCATIONS OF THEIRS MAY BE DIFFERENT THAN WHAT WE HAVE.
ALL THAT KIND OF COMES TOGETHER IN WHAT WE ARE DOING.
>> TRUSTEE WILLIAMS, THEY TEND TO -- IT'S THE YOU APPROACH THEY ARE TAKING THAT WE ARE REALLY LOOKING AT.
TO ONE -- NO ONE IS WORKING AT THE SCALE THAT WE ARE OR THE COMPLEXITY OF IT. AGAIN, WE ARE SEEING SOME GOOD THING THAT IS WE'LL PROBABLY BE ABLE TO ADAPT TO WHAT WE ARE TRYING TO ACHIEVE. THAT'S ONE REASON WHY IT'S SO NEW.
>> I DON'T THINK ANYBODY LIKES THE IDEA OF THE XTRA MONEY FOR
[01:05:01]
A CONSULTANT, HOWEVER, WOULD IT BE PENNY WISE -- WHAT IS THE TERM? ESPECIALLY WHEN WE ARE WORKING ON A PARADIGM SHIFT TO BETTER SERVE THE STUDENTS THAN WE ARE TODAY AND MOVING FORWARD.THAT'S WHY IN SOME INSTANCES WE NEED -- WE DO NEED TO BRING CONSULTANTS IN THAT HAVE BEEN WORKING ON THESE THINGS.
WE SAID REPEATEDLY THIS IS NEW TO US.
>> ONE OF THE CONSULTANTS THAT I WAS LOOKING AT SAID THE JOB IS TO UT US IN PLACE AND THEN PUT THEMSELVES OUT OF BUSINESS WITH US.
WE ARE NOT LOOKING TO GIVE THEM OFFICE SPACE.
THE SAME THING WITH BOSTON CONSULTANTS AND COLLIERS.
THEY HAVE QUITE FRANKLY OPENED OUR EYES TO HOW WE ARE DOING THINGS -- HOW WE COULD DO THINGS BETTER.
>> I HAVE ANOTHER QUESTION, IF YOU HAVE TO MAKE A GUESS TO COMPLETE THE PROCESS [INAUDIBLE].
>> I'M GOING TO GO INTO A NEXT STEP HERE.
THIS SHOULD TAKE LESS THAN -- AN EDUCATIONAL PLAN WE ARE BELIEVING WE WOULD TELL THE CONSULTANT WE WANT IT DONE IN THREE MONTHS.
>> NOW PART TWO OF THAT IS AT THE SAME TIME WHAT WE ARE GOING TO WORK ON -- I'M GOING TO TALK ABOUT THIS NEXT IS THE CAPITAL ORGANIZATION MODEL THIS CHELPS O PRIORITIZE ALL THOSE MASTER PLANS.
YOU NEED THE EDUCATIONAL PLAN TO MATCH THAT UP AGAINST.
WE CAN PRIORITIZE THE CAPITAL PROJECTS IN AND OF THEMSELVES BUT IF THAT'S NOT THE DIRECTION WE ARE GOING FROM AN EDUCATIONAL STANDPOINT, IF EVERYBODY IS ASKING FOR PERFORMING ARTS BUILDING IT COMES BACK THE QUESTION DO WE NEED A SIGNATURE PERFORMING ARTS PROGRAM OR A MEDIUM ACROSS ALL CAMPUSES.
WE NEED TO START WITH STUDENT DEMAND.
THAT'S WHAT WE ARE TRYING TO DO, WHAT IS STUDENT DEMAND, BUSINESS DEMAND, INDUSTRY DEMAND.
SO WHAT WE NEED TO BE ABLE -- WE NEED TO -- TO PURPOSELY ANSWER YOUR QUESTION, WE NEED TO DRIVE AS WE'VE SAID BY NEXT SPRING TO HAVE THE EDUCATIONAL PLAN, THE BOARD TO REVIEW AND MAKE SURE WE ARE ON THE DIRECTION THAT THE BOARD WANTS US TO TAKE.
THAT'S NEXT SPRING TO HAVE ALL OF IT DONE.
BEFORE THEN I REALIZE THERE ARE GOING TO BE TO BE THINGS THAT A GOING TO COME UP DURING THE YEAR AND WE ARE NOT GOING TO STOP AND NOT DO ANYTHING.
HOWEVER, WE ARE GOING TO TRY TO START USING MANY OF THOSE TO RUN THROUGH THIS PROCESS, HOW DOES IT WORK.
WE'VE ALREADY DONE SOME TESTS.
THE NEXT PART OF WHAT I'M GOING TO TALK ABOUT, WE'VE DONE SOME TEST CASES HOW THINGS WORKED THROUGH THIS POCESS.
NOW WHAT WE HAVE TO DO IS GO BACK AND START PULLING ALL THIS STUFF TOGETHER.
WE NEED THAT PRIORITIZED LIST BY NEXT SPRING.
>> ARE WE GOING TO BE ABLE TO DO ALL THE THINGS WE HAD, ALL THE INITIATIVES THAT -- ARE WE GOING TO BE ABLE TO DO ALL T THTHESE THINGS IN THIS NETWORK OR IS THAT MORE THAN WE SHOULD BE DOING?
>> WELL, THE FACT IS THEY DO ALL NIT TOGETHER.
>> I THINK THE PROBLEM IS WE -- RIGHT NOW AS LONG AS WE ARE OPERATING INDEPENDENTLY AND THOSE WHO DON'T CONNECT WITH EACH OTHER FRANKLY WE -- I THINK THAT'S [INAUDIBLE].
SO I THINK EVERY TIME WE SEE SOMETHING DISCONNECTED YOU CAN ALMOST PUT A DOLLAR SIGN BY THAT TOO BECAUSE HAT INCREASES OUR COST IN THE PROCESS AND FRANKLY DOESN'T ALWAYS LEAD TO THE RESULTS THAT WE ARE TRYING TO ACHIEVE.
>> I ASKED THAT QUESTION BECAUSE IF THE SOLUTION IS THE NETWORK AND THE INTEGRATION OF ALL THESE THINGS TOGETHER THEN IT HAS TO BE DONE QUICKLY.
I MEAN, WE HAVE A LOT OF THINGS GOING ON PLUS YOU HAVE TO RUN, YOU KNOW, COMMENTS AT THE SAME OF ALL THIS PLANNING TO TEST
[01:10:04]
THESE INITIATIVES THAT WE HAVE WITHIN THIS AND TO PULL IT ALL TOGETHER AND TO COME UP WITH A BUDGET THAT CAN BE APPROVED IN THE NEXT FEW MONTHS.>> DEPENDS ON HAT -- WHEN IS SPRING? SPRING SEMESTER STARTS IN JANUARY.
>> I DON'T GO SEMESTERS. WHEN WE TALKED ABOUT IT WE SAID N OUR PLANNING, OUR TENTATIVE TIME LINE THAT WE SAID TO THE BOARD IS IF WE ARE GOING TO HAVE THE GENERAL OBLIGATION BOND ELECTION IT WOULD BE MAY OF 2020.
TO BE READY FOR THAT YOU NEED TO KNOW WHAT PROJECTS YOU'RE GOING TO HAVE A YEAR BEFORE.
SO WE ARE STARTING WITH THE END OF MIND SAYING IF THAT'S WHAT WE ARE GOING TO DO.
THAT DECISION HAS NOT BEEN MADE YET.
THAT'S WHY WE'VE GOT TO GO THROUGH THIS AND PULL THOSE TOGETHER, ONE, TO FIGURE OUT WHAT THAT AMOUNT NEEDS TO BE AND WHAT WE WANT TO DO AS A DISTRICT TO ACHIEVE ALL THOSE THINGS.
WE ARE GOING TO FIND OUT IF -- AT A POINT WE CAN'T DO EVERYTHING.
THAT'S WHERE THE PRIORITIZATION IS.
TRUSTEE JAMESON, WE HAVE TO LOOK AT OUR BUDGET MODEL THE WAY WE DO.
WE'VE DONE SOME IMPROVEMENTS TO THAT BUDGET MODEL.
WHEN WE START PULLING ALL THESE OTHER THINGS TOGETHER WE MAY FIND THAT THERE'S OTHER THINGS THAT WE NEED TO DO IN THAT BUDGET THAT WILL SUPPORT THESE OTHER THINGS THAT WE ARE TALKING ABOUT.
>> I BELIEVE THAT THERE'S SEVERAL THINGS THAT COME UP THAT WE'LL HAVE TO LOOK AT WHAT TO DO IN TERMS OF EARLY HIGH SCHOOL COLLEGE ADMINISTRATIVE SPACE.
I KNOW THERE'S OTHERS THAT ARE GOING TO COME UP.
WE STARTED ON THE I.T. POLICE AND PUBLIC SAFETY PLAN ALREADY.
A LOT OF THESE THINGS ARE GOING TO COME UP.
WILL WE HAVE THE FLEXIBILITY TO EITHER TALK ABOUT THE BUDGET THOUGH, THE OPERATING BUDGET, DO WE USE REVENUE BONDS, DO WE USE SOME OTHER PARTNERSHIPS AND OTHER PEOPLE'S MONEYS TO DO SOME OF THIS? SO NOT EVERYTHING HAS TO GO INTO A DEBT SERVICE CATEGORY.
WE CAN DO SOME OF THOSE OTHER THINGS THAT ARE IN THERE THAT ARE POSSIBLE AND THAT'S HOW WE -- THAT'S WHY WE'VE GOT TO HAVE THIS UP FRONT OF WHERE ARE WE GOING.
ONE OF THE THINGS WE DO IS WE GIVE YOU AN ANNUAL BUDGET.
WE ARE NOT LOOKING IN THE THREE TO FIVE [INAUDIBLE] ALL OF THIS HAS TO PUT OUT TO A THREE TO FIVE YEARS TIME HORIZON.
WHAT DO WE SEE COMING DOWN THE PIPE? HOW DO WE DECIDE THE BUDGET AND THE [INAUDIBLE] I'LL GO BACK TO THE 2004 BOND ISSUE.
WE BUILT A MILLION SQUARE FEET.
WE DIDN'T PROVIDE IN THE OPERATING BUDGET TO RUN THE PLACE.
>> I CAME ON BOARD AS THE PROJECT FINISHED AND I WAS PRESENTED WITH THAT ISSUE, HOW ARE WE GOING TO AFFORD TO OPEN THESE PACES.
PLACE THAT RAN -- THAT WERE DOING THE SAME THING AT THE SAME TIME.
THE SCHOOL I CAME FROM DID THE SAME THING.
I'M LEARNING FROM MY MISTAKES THANK GOODNESS AND THAT'S SOMETHING I DON'T WANT NOW TO HAPPEN SO WE TIE THIS TOGETHER IN THIS INTEGRATED PLAN SO IT WORK.
IF WE DON'T WANT TO DO THE EDUCATIONAL PROGRAM BECAUSE THERE'S TOO MUCH SPACE, TOO MUCH BUDGET COMMITMENT, WHATEVER THAT IS, WE HAVE A PROCESS FOR LOOKING AT THAT THAT THIS BOARD GETTING TO REVIEW.
>> WE HEARD FROM DCG AND THE WHOLE THEME THERE WAS TO TRY TO GET SOME CONSISTENCY AND --
>> WE ARE GOING THE MOVE INTO CAPITAL.
YOUR THOUGHTS ON HOW COLLIERS AND YOU AND THE TEAM HAVE BEEN WORKING THROUGH EVALUATION OF DIFFERENT MASTER PLANS THAT HAVE COME FROM THE COLLEGE CAMPUSES? THIS IS AN IMPORTANT PART OF THIS INTEGRATED PLANNING PROCESS.
WE'LL HEAR MORE ABOUT IT LATER.
WE'LL SPEND AS MUCH TIME ON IT AS OU WANT.
THE THINGS WE ARE GOING TO DO.
WE'LL JUST TALK ABOUT WHAT THE OBJECTIVE OF THAT PRIORITIZATION MODEL IS.
I'LL SPEND TIME ON DEFERRED MAINTENANCE.
WE NEED TO BE HAVING THESE DISCUSSIONS ESPECIALLY AS IT'S 3 GOING TO IMPACT THE OPERATING BUDGET.
I UNDERLINE MYSELF AND THE WORD
[01:15:05]
DRAFT CRITERIA.JUST LIKE THE EDUCATIONAL PLAN, WE ARE WORKING ON THESE THINGS RIGHT NOW SO WE CAN HAVE SOME GOOD -- WE HAD GREAT FEEDBACK OVER THE LAST HOUR ON THE EDUCATIONAL PLAN. THAT'S REALLY HELPING US.
WE'LL DO THE SAME THING HERE AS WE ALK THROUGH THIS.
IT'S TO DEVELOP A MODEL, A TEMPLATE FOR ASSESSING ALL THOSE INDIVIDUAL PROJECTS WE HAVE TO PUT A COMMON THEME TOGETHER FOR THEM, THAT WE CAN THEN ALIGN THEM WITH OUR OVER ALL NETWORK PRIORITIES.
WE NEED TO HAVE -- HERE'S THE GOOD C'S. ESTABLISH A CLEAR AND CONSISTENT PROCESS THAT WE HAVE THAT DOES NOT TAKE A LOT OF TIME TO ANALYZE, JUSTIFY AND PRIORITIZE POTENTIAL EXPENDITURES ON CAMPUS FACILITIES AND TO ASSESS OTHER REAL ESTATE DEVELOPMENT PRIORITIES.
HAVING AN ESTABLISHED PROCESS WILL SPEED DECISION TIME, ALIGN INVESTMENTS AND IMPROVE THE COORDINATED EFFORT AND PRIORITY SETS -- SETTING ACROSS THE CAMPUSES.
WE EXPECT TO GET A BUSINESS CASE TEMPLATE AND PRIORITIZATION MATRIX AND OVER ALL LEVELS OF SPENDING ON DEFERRED MAINTENANCE VERSUS NEW PROJECTS.
WE FOR THE FIRST TIME IN THIS DISTRICT'S HISTORY -- FIVE OR SOME YEARS AGO WE SET ASIDE AN AMOUNT ON A LIST OF $86 MILLION WORTH OF DEFERRED MAINTENANCE PROJECT IN THE BUDGET.
THAT WAS THE FIRST TIME WE HAD REALLY EVER DONE THAT, THAT WE SAID THERE IS THESE EEDS AND WE NEED TO SET ASIDE MONEY FOR THAT.
SINCE WE'VE DONE THAT WE HAVE $18 MILLION TO DO A DIFFERENT TYPE OF DEFERRED MAINTENANCE.
IT'S ON THE TECHNOLOGY INFRASTRUCTURE WHICH QUITE FRANKLY IS STILL DEFERRED MATE NA -- MAINTENANCE.
TECHNOLOGY IS AN INTEGRAL PART OF WHAT WE DO.
EXPERTS SAY THAT YOU AUGHT TO BE SETTING ASIDE 2 TO 2.5 OF REPLACEMENT VALUE OF YOUR FACILITIES.
IN ROUND NUMBERS THAT'S 24 TO 248 D-- 24 TO $28 MILLION FOR U.
$28 MILLION IS WHAT THE NATIONAL ASSOCIATION FACILITIES MANAGERS SAY YOU SHOULD DO.
THAT ALSO EQUATES QUITE FRANKLY TO WHAT DEPRECIATION IS.
WE DO NOT PUT DEPRECIATION IN OUR BUDGET. THAT'S ACROSS HIGHER ED, THAT'S NOT JUST US.
HIGHER ED DOES NOT BUDGET DEPRECIATION.
>> ON FACILITIES AND EQUIPMENT.
>> I THOUGHT WE DID IT ON EQUIPMENT?
>> DEPRECIATION IS NOT IN THE OPERATING BUDGET.
>> [INAUDIBLE] BECAUSE WE DIDN'T EVER DEPRECIATE THAT.
>> MISSING EQUIPMENT -- WELL, WE DO HAVE THRESHOLDS FOR DEPRECIATE BUT THAT'S ANOTHER ST AT A DIFFERENT TIME.
DEFERRED MAINTENANCE IS WHAT ARE YOU PUTTING BACK INTO YOUR FACILITIES SO THEY DON'T GET TO THE WAY THAT WE HAVE SEEN SOME OF THEM AS WE'VE DONE THE TOURS.
ONE OF THE OTHER THINGS THAT'S RECOMMENDED IS WE SET ASIDE AN SAD DECISIONAL 1%.
THAT AUGHT TO BE USED TO KEEPING FACILITIES UP TO DATE SUCH AS CLASSROOM AND INSTRUCTIONAL-TYPE FACILITIES.
THAT WE STAY UP O DATE WITH 3 WHERE THINGS ARE.
MANY OF YOU HAVE SEEN IN THE MASTER PLANS THAT WERE PRESENTED THERE'S A LOT OF DURATION TO GET TO HOW WE TEACH TODAY.
WE BUILT THE BUILDINGS 50 YEARS AGO FOR HOW CLASSES WERE TAUGHT THEN.
IT'S A DIFFERENT COLLEGE TODAY.
FOR THE MOST PART THE FACILITIES THEMSELVES ARE NOT SET UP TO DO THE THINGS THE WAY WE DO IT.
SO PART OF WHAT THEY RECOGNIZE IS THAT'S WHAT --
[01:20:02]
YEARS, FOR INSTANCE IS DIFFERENT THAN WHAT THE INSTRUCTORS PRECEPT TO THEIR CLASS.NOT JUST PRESENT BUT INTERACT.
MOST OF THAT MATERIAL IS HOUSED ON THE INTERNET. IT'S NOT SO MUCH THE CLASSROOM BUT THE ADDITIONAL INFRASTRUCTURE, CAPACITY, LARGE LIBRARIES OF VIDEO CONTENT THAT HAS TO BE PURCHASED.
FOR INSTANCE, NBC TODAY YOU CAN GET ACCESS TO ALL THEIR NEWS FROM THE MOMENT THEY BEGAN AS A NEWS ORGANIZATION BACK IN THE EARLY [INAUDIBLE] A SUBSCRIPTION COST HAS TO BE APPLIED TO EVERY CLASSROOM.
THEN THERE'S ACTIVITIES WITHIN THE CLASS ROOM WHERE THE STUDENTS ARE PARTICIPATING WITH OTHER GROUPS ACROSS EITHER THE BUILDING, ACROSS THE DISTRICT OR ACROSS THE WORLD, AROUND THE WORLD, WITH RECORD TO INTERACTIVITY, ACTIVITIES, EXERCISES, GROUP PROJECTS WHERE THEY ARE EXPOSED TO HOW OTHER INSTITUTIONS ARE DOING THINGS AND THEY ARE DOING THINGS IN TECHNOLOGY THAT MAINTAIN THOSE CONNECTIONS.
SO THE SAME THINGS WE ARE USING HERE TO MAKE SURE THAT WE CAN BROADCAST OUR MEETINGS, THEY ARE ALSO GAINING MORE AND MORE USED CLASSROOMS. SO THESE THINGS TEND TO BREAK AFTER FIVE OR SIX YEARS.
THE TECHNOLOGY IN THE CLASSROOM IS WHAT E CALL TEACHER STATIONS WHERE THEY HAD INTEGRATED MEDIA AVAILABLE TO THEM, WHETHER DVD, INTERNET OR SOUND.
IT WAS BOUGHT ONCE AND THEN WE WAIT FOR IT TO BREAK.
SO BHIEL YOU'RE G -- WHILE YOU'E GETTING REPLACEMENTS THAT CLASSROOM IS NOW UNUSABLE IN THE WAY IT WAS BEFORE.
WHAT WE SHOULD BE DOING IS HAVING A REGULAR RECYCLE OF THAT EQUIPMENT SO YOU'RE REPLACING IT BEFORE IT BREAKS OR BEFORE IT DIES.
AS IT GOES OUT OF UNCTIONALITY AND FEATURES -- NEW TECHNOLOGY TYPICALLY LASTS FIVE TO SEVEN YEARS.
YOU SHOULD BE REPLACING IT THAT SIXTH YEAR.
THAT TAKES A PRACTICED APPROACH ACROSS THE DISTRICT WHEN RIGHT NOW THE RESPONSIBILITY S PLACED ON THE BURDEN OF THE INDIVIDUAL COLLEGES TO MAKE THOSE DECISIONS AND TO FIND IT WITHIN THEIR BUDGET TO MAKE THOSE DECISIONS.
THIS APPROACH WILL ALLOW THEM TO GIVE THE SAME CONSISTENT APPROACH TO OUR STUDENTS IN THE CLASSROOM AS WE -- AS THEY MOVE FROM ONE CAMPUS TO THE NEXT.
IT'S NOT -- IT IS A VERY DIFFERENT CLASSROOM.
MY FIRST CLASS I TAUGHT IN 1990 AND THE CLASSES I TAUGHT TWO YEARS AGO, WE STAYED ON THE PHONE ALMOST THE WHOLE ENTIRE TIME WE WERE IN THE CLASSROOM ENVIRONMENT.
THAT PHONE NEEDED CAPACITY TO TRADE INFORMATION WITH EACH OTHER IN THE CLASS ROOM AND OTHER PLACES WE WERE TRYING TO GET ACCESS TO.
>> TRUSTEE RITTER, ALSO I THINK IF YOU THINK ABOUT THE TRADITIONAL CLASSROOMS THEY INVOLVE MORE TECHNOLOGY.
IF YOU THINK ABOUT IT AND RECALL MOUNTAIN VIEW GOING INTO THE NURSING LAB WHERE WE HAD MANNEQUINS COSTING THREE QUARTERS OF MILLIONS DOLLAR OR SOME OF UP TO A MILLION DOLLARS IN THERE TO ENSURE THAT WE ARE PROVIDING THE PROPER TYPE OF EDUCATION AND TRAINING.
SO THOSE REQUIRE INFRASTRUCTURE THAT SIMPLY WAS NOT BUILT INTO OUR CLASSROOMS AND BUILDINGS AT THE TIME THEY WERE DESIGNED.
I MEAN, EVEN WELDING IS A STIMULATION LAB.
YOU HAVE THINGS THAT YOU -- HISTORICALLY YOU NEEDED A DIFFERENT SPACE FOR IT.
>> SO TAKING INTO CONSIDERATION WHAT YOU SAID ABOUT THE 2.5% AND THE ADDITIONAL 1%, WHAT DOES THAT MEAN ANNUALLY?
>> THE 2 TO 2.5% IS $24 TO 28 MILLION AND THE 1% IS ANOTHER $12 TO $15 MILLION.
TOTALLY I'M GUESSING IF WE WERE DOING WHAT WE EED TO DO -- AND IT INCLUDES ALL AREAS HERE.
WE TALKED ABOUT SOME OF THIS THAT MIGHT BE CONSIDERED TECHNOLOGY BUT IT'S REALLY A PLAN TO HANDLE ALL THE FACILITIES AND THE EQUIPMENT.
MOST OF OUR CASES IS WE ARE NOT REPLACING FURNITURE EITHER TO THE NEW TECHNOLOGY.
I WENT TO SCHOOL WITH ARM BANDITS, THE DESK WITH THE LITTLE WRITING SPACE ON IT.
>> I WASN'T TRYING TO BRING RUSTY IN THAT CONVERSATION BUT I WAS DATING MYSELF WHEN WE BUILT OUR BUILDINGS.
NOW A SMALL GROUP -- YOU KNOW, YESTERDAY -- OR YESTERDAY. I SLEPT.
MONDAY ONE OF THE THINGS MARY PUT ON THE BOARD WAS FROM LINKEDIN AND ALL THOSE NEW -- IN 2018 ALL THOSE NEW JOBS.
WELL WHAT THE BUSINESS NEEDED WITH UZ -- WAS THE LEADERSHIP.
[01:25:03]
HOW DO YOU DEVELOP THOSE? SMALL GROUP.HOW DO THEY WORK TOGETHER AS TEAMS? THIS IS WHAT BUSINESS WANTS, NOT ONLY PEOPLE HAVE A DEGREE AND THE TECHNICAL SKILLS TO DO THIS BUT HOW THEY GET ALONG WITH EVERYBODY ELSE.
HOW CAN THEY DO TIME MANAGEMENT? HOW CAN THEY PRIORITIZE WHAT THEY ARE SUPPOSED TO BE DOING? WE HAVE TO BUILD THAT INTO THE CLASSES THAT WE TEACH CURRENTLY, NOT SOMETHING YOU TAKE AFTER YOUR GRADUATE.
WE GO ACK TO THE STATEMENT OF LEARNING THE COMPLEXITY OF WORK AND LIFE AND WHAT WE ARE TRYING TO PULL TOGETHER.
>> WHAT'S OUR DEFERRED MAINTENANCE IN THIS YEAR'S BUDGET?
>> SO WHAT YOU'RE SUGGESTING IS WE GO FROM $18 MILLION TO $40 3 MILLION AND -- YOU KNOW, IN THIS UPCOMING BUDGET?
THAT'S WHAT YOU ARE PROPOSING FOR [INAUDIBLE] THAT DECISION OR THAT RECOMMENDATION WE'LL NO LONGER HAVE A DEFERRED MAINTENANCE LIST IN THE SENSE THAT COLLEGES ARE GOING TO PROPOSE THINGS AND --
>> THERE WOULD BE O BACKLOG, WE WILL NEVER HEAR ABOUT DEFERRED MATE -- MAINTENANCE AGAIN.
LIKE I TOLD MY KIDS, AS LONG AS THEY TEAR UP THE HOUSE E HAVE TO DO DEFERRED MAINTENANCE.
THEY PUNCH A HOLE IN THE SHEET ROCK ROCK THEN --
>> I THINK THE PIECE IS DEFERRED VERSES ON GOING MAINTENANCE.
>> A SMART PERSON I WORKED WITH YEARS AGO, DEPARTMENT OF MAINTENANCE, I SAID I HAVE A BOX OF DOLLARS I CAN SPEND ON MAINTENANCE.
TODAY 80% IS FIRE FIGHTING AND 20% IS PM, PRESEVENTIVE MAINTENANCE.
HE SAID IF I COULD REVERSE THAT I SPEND THE SAME AMOUNT OF DOLLARS BUT BECOME MORE PROFICIENT.
DO WE WAIT UNTIL SOMETHING IS BROKE AND THEN WE ASK FOR THE MONEY TO FIX IT OR ARE SCHEDULING WHAT WE NEED TO DO SO WE AVOID THOSE COSTLY MISTAKES? SOMETIMES YOU MIGHT SPEND SOMETHING FIVE YEARS BEFORE YOU NEED TO.
IT DOES SAVE YOU MORE MONEY BY PLANNING THAT INTO YOUR -- WHEN YOU'RE CHANGING YOUR TECHNOLOGY, CHANGING BOILERS THEY ARE A LIFE SAFETY ISSUE.
WHAT IS THAT LIST OING TO BE? $40 MILLION.
WE ARE GOING TO DEVELOP THE LIST WITH THE COLLEGES, PRIORITIZE IT.
THERE'S A SYSTEMATIC WAY TO DETERMINE WHAT IS THE MOST DIFFICULT THING THAT YOU NEED TO DO, LIFE, HEALTH AND SAFETY ARE THE MOST CRITICAL.
THOSE ARE THE THINGS THAT TAKE PRIORITY.
>> WE HAVE THE CURRENT INFRASTRUCTURE TO ALL WHAT TIM IS DOING DEFERRED AINTENANCE IN TERMS OF ROTATING OUT, UPDATING TECHNOLOGY? WE DON'T HAVE THAT IN PLACE YET.
IF YOU WANT TO TALK TECHNOLOGY I'M GOING TO LET HIM TALK.
BUDGET WISE WHAT WE ARE GOING TO FIND OURSELVES IN IN THIS IDEA -- IN DEFERRED MAINTENANCE IT'S PROBABLY NOT THE RIGHT WAY TO DO IT.
IT'S KEEPING OUR FACILITIES AND TECHNOLOGY AND THINGS THAT WE OWN UP TO DATE, WHETHER IT BE FURNITURE, COMPUTERS, BOILERS, CHILLERS AND AIR HANDLERS.
SO IT'S A WRAP AROUND PROJECT.
THAT'S WHAT IS IN THESE DOLLARS.
RIGHT NOW WE ARE NOT SETTING ASIDE ENOUGH MONEY.
WE'VE GOT TO GO THROUGH AND PRIORITIZE THIS.
I ACTUALLY BELIEVE WITH TIM HAT YOU GET ON THE REGULAR SCHEDULE PROGRAM AND YOU CAN REDUCE THE AMOUNT OF MONEY THAT YOU SPEND ON THESE TECHNOLOGIES, BAY THINGS AT REVERSUS AUCTIONS RATHER THAN WAITING UNTIL IT BREAKS AND BUYING ONE. THERE'S WAYS TO ACTUALLY SAVE MONEY OVER TIME OPPOSED TO SPENDING MORE.
>> YOU KNOW, [INAUDIBLE] WE'VE DECIDED ON THAT AMOUNT WHEN WE GOING THROUGH SOME FUNDING ISSUES.
YOU KNOW YOU WERE ON THE BOARD AND SO FORTH.
I THINK [INAUDIBLE] AT THAT TIME OF DEFERRED MAINTENANCE AND WE KNEW FUNDING IT AT THE LEVEL 3 THAT WE REALLY SHOULD FUND IT, YOU ALWAYS GOT SOMETHING BEING ADDED TO THAT LIST.
[01:30:01]
I'D LOVE TO SEE US INVEST MORE MONEY IN THAT DEFERRED MAINTENANCE BECAUSE WE UND UNDERFUNDED THOSE PROJECTS AND PRIORITIES AND SO FORTH.A LOT OF THIS IS WE HAVE BEEN OPERATING IF CRISIS MODE.
>> WHEN SOMETHING BREAKS DOWN AND WE HAVEN'T PLANNED FOR IT WE HAD TO TAKE OME OF THE DEFERRED MAINTENANCE.
THAT'S A VERY TROUBLESOME AREA TO ME.
WE NEED TO LOOK AT MAKING SOME MORE INVESTMENT IN THAT.
THE OTHER WAY I SEE THAT YOU CAN KIND OF CATCH UP IS IF WE ALLOCATE ABOUT $80 MILLION EVERY YEAR.
YOU KNOW, UNDERSTANDING THAT DIFFERENT THINGS ARE STILL GOING TO BE ADDED.
YOU KNOW, IF YOU GOT $80 MILLION AND YOU'RE ONLY SPENDING $16 MILLION A YEAR, YOU KNOW, AND THINGS ARE CONSTANTLY BEING ADDED THEN THAT'S -- I MEAN, THAT DOESN'T CATCH UP OR GET ANYWHERE NEAR.
WERE YOU GOING TO SAY SOMETHING?
>> EVEN IF WE GET 80 WE WILL NEED 90.
SO THERE'S ALWAYS PLENTY -- THERE WILL ALWAYS BE A LONG LIST.
>> I THINK WHAT IS IMPORTANT IS DEVELOPING GOOD STANDARDS THAT WE HAVE THAT HELP DEFINE THAT DEFERRED MAINTENANCE AND WHAT ARE THE PRIORITIES.
WHAT IS IN HERE IS WE LOOK AT -- WE FORECASTED ON A FIVE-YEAR BASIS WITH THE ONE TIME THAT YOU'RE TALKING ABOUT.
WE NEED THE ANNUALLY UPDATE THAT AND THE PRIORITIES COULD CHANGE.
SOMETHING COULD COME UP THAT COULD BE A SAFETY ISSUE ON THE LIST BEFORE.
WE NEED TO BE ADDRESSING THOSE THINGS.
WE NEED TO MOVE IT TO A HIGHER PRIORITY.
>> IF I NIGHT, WHEN WE WERE LOOKING AT THE PRESENTATION THEY WERE TALKING ABOUT NEEDING TO DEMOLISH BECAUSE THEY'RE NOT FIXABLE.
NOW IF WE NEED TO DEMOLISH A BUILDING THAT WOULD NOT BE DEFERRED MAINTENANCE.
>> WE WOULDN'T -- CORRECT. WE WOULD NOT -- THAT'S PART OF THIS, TO TIE ALL THIS TOGETHER ON WHY WE HAVE TO LOOK AT IT.
ONE OF THE OTHER THINGS IN HERE IS MAKING SURE WE HAVE GOOD FACILITY CONDITION INDEXES ON OUR BUILDINGS THAT WE KNOW WHAT STATE THEY ARE IN.
THEY -- I'M NOT GOING TO GO OUT AN AN LIMB AND SAY I'M GOING TO TEAR A BUILDING DOWN BUT THERE PROBABLY ARE THOSE BUILDINGS THAT YOU'RE THROWING GOOD MONEY OUT TO BAD.
>> IS T CHEAPER TO JUST REBUILD THE BUILDING OR TRY TO FIX THE BUILDING THAT YOU HAVE?
>> SEE DEFERRED MAINTENANCE AT THE POINT THAT SOMEONE WOULD TRY TO FIX SOMETHING THAT WAS BASICALLY NOT FIXABLE THAT THE WHOLE IDEA OF DEFERRED MAINTENANCE -- IF WE DEFER IT LONG ENOUGH, YES, TEAR IT DOWN.
THEY WILL LAST 100 YEARS IN YOU MAINTAIN THEM.
CHANGE THE OIL ON YOUR CAR EVERY 3,000 TO 5,000 MILES AND IT WILL GO 100,000.
>> WE HAVE SOME BUILDINGS WE HAVE TO DO THAT WITH.
THAT'S WHY WE HAVE TO LOOK AT THE FUTURE OF MAKING SURE THAT WE DO KEEP THESE FACILITIES UP TO DATE SO WE DON'T LET THEM GET INTO THE CONDITION THAT THEY ARE IN.
>> LIKE MAINTENANCE ON YOUR BODY.
>> PAY ME NOW OR PAY ME LATER.
LET ME ASK YOU, YOU KNOW THAT ADA AWSUIT THAT WE HAD WHERE WE HAD TO DO THESE DIFFERENT THINGS, HAVE WE FINISHED OUT THOSE PROJECTS?
YOU KNOW, THEY CHANGE THE RULES EVERY WEEK.
WE GOT THAT FIRST LIST AND MR. PORTER WORK BEING THE FACILITIES DIRECTOR HAVE IDENTIFIED SOME OTHER THINGS THAT HAVE CHANGED SO THERE'S STILL MORE BUT IT'S NOT THE HUGE LIST THE $12 MILLION THAT WE HAD BEFORE.
WE GOT THE MAJORITY -- YES, MA'AM, WE GOT THE MAJORITY OF THOSE DONE.
HOWEVER, AS WE GO INTO BUILDINGS WE'LL FIND OURSELVES WITH NEW CODE ISSUES AND OTHER THINGS THAT COME UP ALL THE TIME.
IT'S ALWAYS SO MUCH FUN DEALING WITH THE CODE REQUIREMENTS.
>> AS WE ACCOMPLISH THIS STUFF DO E HAVE TO GO BACK TO THE FEDERAL GOVERNMENT AND THEY HAVE TO COME OUT AND MAKE SURE THAT WE HAVE DONE -- YOU KOW, I'D LIKE TO HAVE AN UPDATE ON THAT.
WE HAVEN'T HEARD ANYTHING ABOUT IT IN A WHILE.
[01:35:03]
>> CONTINUING OBLIGATION TO HAVE THE CERTIFICATION OF THOSE IMPROVEMENTS THAT WERE MADE BUT I'LL DOUBLE CHECK WITH CLYDE PORTER ND SEE WHERE WE ARE.
>> I DON'T KNOW IF WE NEED [INAUDIBLE].
>> I HAVEN'T GOTTEN A NASTY LETTER.
>> I THINK HISTORICALLY ON THAT WE PUT TOGETHER A PLAN, WE SUBMIT IT TO THE APPROPRIATE AGENCY, WE PUT A DATE CERTAIN BY WHICH WE WILL HAVE THINGS ACCOMPLISHED IN THERE AND BASICALLY THEY DON'T AUDIT THAT BUT THEN THEY WILL LOOK AT SOMEBODY WHO COMES BACK AND FILES ANOTHER SUIT OR ANOTHER COMPLAINT.
>> IF I REMEMBER RIGHT WE ALLOCATED $12 MILLION INITIALLY.
>> YES, MA'AM, THAT'S CORRECT.
WE ARE UNDER A NEW OBLIGATION.
>> ACCESSIBILITY ISSUES RELATED TO DIGITAL CONTENT.
WE HAVE 18 MONTHS NOW TO ADDRESS SO WE ARE WORKING ON THAT.
THE FEDERAL GOVERNMENT WILL HAVE OVERSIGHT WITH RESPECT TO THAT.
WE'VE GOT TO REPORT BACK TO THEM ON THAT.
I'LL DOUBLE CHECK ON THE BUILDING IMPROVEMENTS THAT WERE MADE.
>> BUT THAT'S NORMALLY IN THE -- FILE IN A LETTER.
>> IF YOU COULD PROVIDE THE BOARD WITH AN UPDATE ON THAT PARTICULAR ISSUE.
>> WE HAVE THE BOARD THAT MADE THE DECISION.
WE DON'T WANT TO -- WHAT KIND OF MONEY WOULD THAT MAKE?
>> I HAVE NOT COMPILED THE FULL LIST.
WHEN COLLIER OOKED AT THE INFORMATION THEY WERE LOOKING AT SOME OF THE MASTER PLAN THAT INCLUDES DO OR DSC OR WHATEVER.
A LIST WAS APPROACHING $200 MILLION.
THAT COULD BE A WISH LIST OF ALL KINDS OF THINGS IN THERE.
THAT'S ONE OF THE THINGS WE RECOGNIZED WE REALLY NEED TO DO IS TO DETERMINE THAT PRIORITIZATION OF THOSE MODELS.
THEN FROM HIS POINT WE ARE GOING TO START ON THE STANDARDS IN TERMS OF THE 2 TO 2.5% AND THE 1%.
>> WELL, I HAVE THE SAME QUESTION TO.
YOU KNOW, THE -- DEFERRED MAINTENANCE SUFFERED FROM MAJOR PROJECTS.
WHAT IS ON THAT DEFERRED MAINTENANCE LIST WILL DEPEND UPON WHAT KIND OF MAJOR PROJECT FACILITY DECISIONS WE MAKE.
IF WE NEED TO HAVE A COMPONENT OF OUR CAPITAL BUDGETING PROCESS, WHICH WE ARE NOT GOING TO DO THIS YEAR BUT WE ARE GOING TO DO IN FUTURE YEARS THAT -- YOU KNOW, EVEN YOU SAID THAT FINANCING COULD CATCH UP AND THEN DO THE PLANNING PROPOSED ON BOTH FACILITIES AND I.T. THAT YOU GUYS ARE YOU CAN -- ARE TALKING ABOUT.
I THINK THAT MAKES A LOT OF SENSE.
>> CERTAINLY TAKING INTO MIND 3 THE CAPITAL PROGRAM AND HOW MUCH THAT ELIMINATES THE NEED FOR NDECONTAMINATE NATE -- MAINTENANCE.
>> LET THOSE IMPROVEMENTS GO TO POD.
>> DOWN THE ROAD BUT LET'S GET CAUGHT UP.
>> IN OTHER WORDS, GIVE US THAT OPTION TO SAY YAY OR NAH ON THAT.
>> ONE OF THE THINGS WE'LL TRY TO BUILD INTO THIS IS AS WE MAKE SOME OF THESE IMPROVEMENTS THAT WE DON'T SPEND AS MUCH MONEY, WHETHER IT'S UTILITIES OR WHATEVER ELSE WE CAN REINVEST SOME OF THAT ONEY AND THAT CREATES THE AVAILABILITY TO BE ABLE THE FUND THESE THINGS.
IT'S NOT JUST INCREASING THE COST STRUCTURE OF THE DISTRICT.
>> I THINK PART OF IT IS CREATING SOME CONSISTENCY ON WHAT THE PRIORITIES ARE.
FOR EXAMPLE, WE KNOW THAT SOME OF THE COLLEGES DO PREVENTIVE MAINTENANCE WORK ON THEIR ROOFS, OTHERS DON'T.
SO WE END UP SAYING WHAT ARE WE
[01:40:12]
GOING TO DO AS FAR AS PREVENTIVE DOLLARS NOW IN THE PROCESS.THAT JUST SAVES US DOLLARS IN THE LONG RUN.
YO YOU WAIT UNTIL THE ROOF IS LEAKING AND THEN IT'S AT AN INCONVENIENT TIME, WE HAVE CLASS GOING ON, WE CAN'T SCHEDULE WHERE WE CAN DO REPAIRS EASILY.
IT CREATES OTHER COST ISSUES THAT RE RELATED TO T IF WE DOEFRNT -- DON'T SCHEDULE THOSE OUT.
>> THE OTHER QUESTION IS WHEN DO YOU EXPECT THAT YOU'RE GOING TO BE BE ABLE TO BEGIN TO BUILD IN THE $40 MILLION IN ALLOCATION TO MEET THE STANDARDS OF 2.5% AND ADDITIONAL 1%?
>> I WOULD PREFACE THAT THAT WE NEED TO SEE HE LIST FIRST AND WHAT WE HAVE AND WHAT WE CAN DO.
WHAT THE INTENT WOULD BE IS START TO MOVE TOWARDS HAT INCREMENTALLY BY INCREASING WE ARE.
WE ARE PUTTING ENOUGH MONEY ASIDE TO DO ALL THIS.
>> TWO TO THREE YEARS YOU'RE SAYING?
>> I WOULD START WITH THE 2020 BUDGET BECAUSE WE WILL PROBABLY NEED TO BE RAISING THAT FROM THE $18 MILLION UP TO $22 MILLION TIME FRAME -- OR AMOUNT THEN GRADUALLY SEE THOSE INCREASES OVER TIME.
>> I DON'T HAVE THE ANSWER TO THAT YET.
PART OF IT DEPENDS ON THE LIST AND HOW FAST THIS BOARD WOULD LIKE TO GET THAT DONE.
TRUSTEE RITTER HAS TALKED ABOUT THERE'S WAYS TO O OUT THERE AND FIX A LOT AT ALL ONCE.
MAINTENANCE HACK IS ANOTHER ABILITY TO DO THAT.
THAT'S GETTING THAT LIST AND PRIORITIZING HOW YOU WANT TO HANDLE THIS ISSUE, HOW MUCH OF IT DO WE DO IMMEDIATELY.
BY THE LISTING YOU CAN TELL THAT WE'VE GOT $50 MILLION THAT WE NEED TO DO IMMEDIATELY AND WE ARE NOT WILLING TO WAIT THREE YEARS TO GET THERE.
>> SO HERE'S TWO THINGS, ONE IS A WILLINGNESS TO ADDRESS THE BACKLOG, DEFERRED MAINTENANCE, WHATEVER YOU WANT.
>> AND FIGURE OUT AN APPROPRIATE MEANS OF FINANCING THAT.
THE SECOND THING IS MOVING DIRECTIONALLY TOWARDS A GREATER BUDGET ALLOCATION FOR ON GOING INVESTMENTS IN OUR FACILITIES.
>> EVERYBODY -- IS THAT -- OKAY.
LET'S TALK ABOUT WHAT OUR DRAFT IS FOR THE CRITERIA OF THE CAPITAL BUDGET PRIORITY MODEL THAT WE ARE DOING.
WE ARE GOING TO BASED ON THE BOARD'S STRATEGIC PRIORITIES.
WE ARE ALSO GOING TO DO SOMETHING THAT HELPS EXPLAIN WHAT WE ARE REALLY TRYING TO DO.
WE DON'T REALLY DO THIS WELL TODAY BUT WHAT WE CALL -- I'M NOT GOING TO SPEND A LOT OF TIME HERE BECAUSE THIS IS AN OPERATIONAL ISSUE BUT WE WILL HAVE A TEMPLATE THAT WE WILL USE FOR PEOPLE TO REQUEST AND EXPLAIN THE PROJECTS THAT THEY ARE DOING SO THAT THIS WILL HELP US -- WE WILL USE THIS ON BOTH CAPITAL AND DEFERRED MAINTENANCE TYPE PROJECTS.
TELL US WHAT THEY ARE DOING AND WHAT THE EXPECTED BENEFITS ARE OUT OF IT.
WHAT WE ARE GOING TO LOOK AT IS THIS MATRIX WHICH I REALIZE IS A LITTLE DETAILED FOR UP HERE IF YOU LOOK AT IT, WE HAVE THE STRATEGIC PRIORITIES DOWN THE LEFT-HAND SIDE AND THE GUIDING PRINCIPALS ACROSS THE TOP.
ALL OF THIS EXCEPT THE STRATEGIC PRIORITIES ARE IN A DRAFT FORMAT RIGHT NOW.
EACH OF THESE CELLS WILL GET SCORED.
SO WE WILL BE LOOKING AT HOW DOES THIS PROJECT MATCH TO WHAT WE ARE TRYING TO DO FROM THIS STRATEGIC PRIORITIES AND THE GUIDING PRINCIPLES.
THAT'S WHAT WE ARE PROPOSING AS THE METHOD.
WE HAVEN'T FINISHED DEVELOPING THIS YET.
THIS IS A WORK IN PROCESS. THIS IS JUST TO GIVE YOU AN IDEA.
EACH OF THOSE CELLS WOULD HAVE SIMPLE SCORING MECHANISM, ZERO, NO IMPACT, ONE, LIMITED OR SOME IMPACT OR TWO, HAVE A HIGH IMPACT ON THE STRA -- STRATEGIC PRY OI PRIORITY -- PRIO PRIORITIES.
I TESTED IT, THE NORTH LAKE CONSTRUCTION TRADE BUILDINGS.
SCORED HIGH THROUGH THESE PRIORITIZATION MODELS.
NOW WHO WILL DO THE SCORING ON -- ON THE TEST CASE I DID.
>> ARE YOU SURE THERE WAS NO BIAS?
[01:45:02]
>> NO, I CAN'T SAY THAT BUT AT LEAST IT WAS BETTER THAN -- NO OFFENSE TO CHRISTA, I KNOW SHE WOULD BE FAIR.
WHAT WE ARE TRYING TO DO IS TRYING TO MAKE SURE AS THE PEOPLE WHO ARE WORKING ON THIS THAT WE CAN SAY THIS APPLIES OR THIS DOESN'T.
WE STILL HAVE SOME WORK TO DO.
PART OF THIS IS TAKING THESE ACTUAL PROJECTS -- WE THEN TAKE A PERFORMING ARTS BUILDING WITH NO HELP.
THEN WE HAD A REMODEL OF INSTRUCTIONAL SPACE AND IT SCORED REAL HIGH.
WHAT WE ARE LOOKING AT IS WE HAVE TO TEST THIS MODEL.
WHAT WE WILL HAVE -- I DON'T WANT TO GET INTO LET'S SCORE THEM ZERO THROUGH TEN, WE START GIVING TOO MANY CHOICES.
WE WANT THIS TO BE SIMPLE AND MAKE QUICK DECISIONS.
>> THERE'S ULTIMATELY [INAUDIBLE] THERE'S NOT INTENDED TO BE A CUT OFF SWITCH.
LISTING HOW WE PRIORITIZE THESE TO WHAT ACTUALLY MAKES SENSE TO OUR STRATEGIC PRIORITIES IS -- WILL BE DROPPED WORKING WITH THE COLLEGES ON WHAT THESE PRI PRIORITIZATIONS ARE.
WE'LL HAVE A REVIEW COMMITTEE.
WHEN ASKING ABOUT HOW LONG THIS PROCESS WILL TAKE WE HAVE TO START ON THIS NOW.
TWO REASONS. ONE, IT'S GOING TO HELP US TEST THE MODEL, WHAT WORKS AND WHAT DOESN'T WORK.
WHAT ARE WE DOING? WHAT IS A HIGH PRIORITY PROJECT THAT SCORED LOW? WHAT DID WE MISS? WE HAVE TO START WORKING THROUGH THIS PROCESS NOW AS WE DEVELOP THAT LIST FOR NEXT YEAR.
THE BIGGEST THING IS GOING TO BE WORKING WITH THE COLLEGES AND SAYING PICK YOUR BIGGEST FIVE PRIORITIES AND LET'S TEST THEM.
LET'S TEST IT THROUGH THIS MODEL AND THEN LET'S SEE HOW IT MATCHES UP AS WE DEVELOP THE EDUCATIONAL PLAN, HOW DOES IT MATCH AGAINST WHAT WE ARE EXPECTING WITH WHERE WE ARE SUPPOSED TO BE GOING FROM AN EDUCATIONAL PLAN.
AGAIN, THIS IS AN ANNUAL THING.
WE HAVE TO GET THIS TO WHERE WE ARE LOOKING THREE TO FIVE YEARS OUT.
WE DO IT EVERY YEAR BUT WE ARE CONSTANTL LOOKING TO -- NOT TO DO ONE.
WE DID A COUPLE TEST CASES OH -- OF WHAT WE HAD.
WE KNOW THAT IT -- [INAUDIBLE] IF IT'S GOING TO WORK PERFECTLY.
>> WE'VE GOT SOME VERY IMPORTANT STRATEGIC PRIORITIES.
YOU GUYS HAVE TO GET THROUGH THE LEGISLATURE.
WE HAVE 40,000 -- THAT'S NOWHERE ON HERE BUT [INAUDIBLE]
>> IF YOU'RE GOING TO [INAUDIBLE] OUT SEEMS LIKE THERE'S SOME OTHER THINGS THAT ARE A MATTER OF COMMUNITY IMPERATIVE THAT NEED TO BE THERE AS WELL OR MAYBE [INAUDIBLE].
I THINK AS WE LOOK AT -- MAKE WE HAVE SOME THINGS ON THERE THAT SHOULDN'T BE.
MAYBE THEY SHOULD ABIDE BY THAT TOO.
>> TRUSTEE RITTER, WHAT WE HOPE WILL HAPPEN WITH THIS MATRIX PROJECT IS THAT WE SHOULD BE ABLE TO MEASURE IT AGAINST WHERE WE ARE HEADED, THE PRINCIPLES AS WELL AS YOUR PRIORITIES TO SAY, OKAY, THIS NE FITS OR IT NEEDS TO BE DEVELOPED. I THINK THE EARLY CHILDHOOD THING, MUCH LIKE CONSTRUCTION TECHNOLOGY, WOULD JUST BLOW THIS THING OFF T THE CHARTS BECAUSE OF THE IMPACT AND THE NEED AND THE HIGH DEMAND.
WE STOP AND SAY IT'S SOMETHING THAT CAME IN.
IT MAY BE -- AMAZON IS A GOOD ONE.
IT'S GOING TO MEAN LOOKING AT THE PRINCIPLES THAT CITY WITHIN YOUR PRIORITIES AND MAKING GOOD DECISIONS ABOUT IT. IT'S NOT
[01:50:02]
JUST A CASE OF FOLLOWING A PIPELINE TO DO SOMETHING.>> UMPQUA T -- I'M TROOI -- IM TRYING TO FIGURE OUT HOW HIGH QUALIFY AND STAFF WILL SCORE IN A DIVERSE PROCESS.
>> I USED THE EARLY CHILDHOOD EDUCATION PROGRAM AS -- YOU KNOW, SOMETIMES WE ARE LOOKING TO IMPROVE DIVERSITY OF STAFF AND IMPROVING INCLUSION ACROSS THE COMMUNITY.
WHAT ARE WE DOING AS WE GET PEOPLE JOBS AS THEY DO IT? EARLY -- THE EARLY CHILDHOOD EDUCATION PROGRAM WILL PROBABLY HAVE A VERY DIVERSE STUDENT BASE AND THEY'RE GOING TO BECOME INSTRUCTORS AND TEACHERS THAT GO BACK OUT INTO THE MARKETPLACE TO HAVE JOBS IN IMPROVING DALLAS AS A WHOLE.
THE DIVERSITY IS ON THE STRATEGIC PRIORITY AND IT'S ALWAYS ON THE [INAUDIBLE].
WE NEED TO DECIDE WHERE IT'S GOING TO GO.
AGAIN, THIS IS A WORKING MODEL THAT WE ARE WORKING ON.
WE'VE GOT SOME CLEAN UP TO DO.
I HOPE TO HAVE -- QUITE FRANKLY I HOPE SOMEBODY COMES ALONG IN FIVE YEARS AND MAKIES IT EVEN BETTER THAN WHAT WE HAVE.
I DON'T THINK YOU TO THINK THAT WE ARE GOING TO GET THIS PERFECT RIGHT OUT HE BAT.
THIS IS NOT JUST THE DISTRICT DOING THIS. THIS IS GOING TO BE THE TEAM OF THE COLLEGE PRESIDENTS AND ESPECIALLY THEIR VICE PRESIDENTS GROUP AS WE HAVE BEEN WORKING ON THIS.
WE ARE PULLING THESE TEAMS TOGETHER.
THAT'S WHERE WE NEED THIS -- IF WE ARE GOING TO INTERNALIZE THIS PROCESS THAT'S THE PEOPLE WE NEED TO HAVE.
I HOPE TO EVENTUALLY HAVE THEM COME AND TALK TO YOU-ALL ABOUT WHAT THEY ARE DOING ON THESE THINGS.
IT TAKES ABOUT HALFWAY INTO THE PARAGRAPH OUT SAYS IS THERE A PROJECT CURRENTLY UNDER CONSIDERATION THAT WOULD ADDRESS STUDENT SERVICES STICKINESS OR ANOTHER NON-ACADEMIC.
>> KEEPING THE STUDENTS AROUND.
>> MAKES THEM WANT TO SPEND TIME.
>> THEY DON'T JUST COME HERE AND TAKE THEIR 50 MINUTE CLASS AND GO HOME.
WHAT DO WE HAVE TO KEEP THEM TO GET PART OF THAT COLLEGE EXPERIENCE? THAT HELPS IN RETENTION AND COMPLETIONS AND MOVING THROUGH TO GETTING DEGREES, HOW STICKY THEY ARE IN THE COLLEGE.
>> IT'S SOMETHING AS SIMPLE AS HAVING ENOUGH PLUGS FOR CHARGERS, TO HAVE A SPIDER EB OF CONNECTIVITY.
>> I MEAN, THE [INAUDIBLE] NOT AN INTERACTIVE AREA.
COLLEGES HAVE DONE A LOT OF THINGS INCLUDING MORE SPACE.
>> MORE OF A STARBUCKS EFFECT.
>> I THINK IT'S A GREAT POINT.
THEY WANT TO BE ABLE TO BUILD FRIENDSHIPS.
YOU THINK IT'S A REALLY [INAUDIBLE].
>> THE NETWORK MODEL SHOWS HOW WE ARE --
>> MAYBE IT'S HAVING TO REPURPOSE LATER ASSETS.
THINKING THROUGH THAT STUFF, THAT TYPE OF THING.
>> THAT'S A GREAT [INAUDIBLE] FROM A DESIGN POINT WE -- LIKE FOOD PANTRIES.
[01:55:01]
WE HAVE SOME COLLEGES THAT KIND OF SHOE HORNED INTO SOME SPACE.THAT IN AND OF ITSELF SAYS STUDENT NEEDS TO BE TAKEN INTO CONSIDERATION.
YOU HEARD F [INAUDIBLE] NEED FOR HOUSING BECAUSE WE HAVE HOME HOMELESS NEEDS, FOOD INSECURITY, MENTAL HEALTH NEEDS AND WHAT KIND OF FACILITIES [INAUDIBLE].
SO I THINK AS WE LOOK AT THESE MATRIX THEY WILL HELP US IN MAKING DECISIONS.
>> SO WHAT WE'LL HAVE TO DO HERE ON THIS IS WE'VE GOT A TEAM THAT WORKS WITH COLLIER BUT WE NEED A LOCATION AND DISTRICT REPRESENTATION TEAM TO COME TOGETHER ND FINALIZE SOME OUT COMES TO THE CAPITAL PLANNING, FINAL DRZIZE -- FINALIZE THE PROCESS AND THE METRICS.
WE HAVE A MEETING AT THE END OF THE MONTH WITH COLLIER.
IT STARTS TO WORK ON THAT THAT DEVELOPMENT -- OR THAT TOTAL LIST IS.
>> [INAUDIBLE] CRITERIA OF METRICS.
>> THE PART WE HAVE TO DO IS MORE OF OUR OWN TEST CASES BUT WHAT IT ACTUALLY MEANS, EXAMPLES AND SO ON ON TYPES OH -- OF THINGS WE HAVE IN THERE.
>> THE STAKEHOLDERS, HOW ARE YOU GOING TO [INAUDIBLE].
>> THE FIRST IS THE DIRECTOR OF FACILITY.
THEY NEED TO BE WORKING THE EDUCATIONAL PLAN.
ALL OF THOSE TEAMS NEED TO BE TALKING AND COMMUNE -- AND COMMUNICATING ALL THIS WITH THEIR PRESIDENTS.
WE PULL IT TOGETHER AND THEN WE'LL HAVE TO FORM LOCATIONAL REPRESENTATIVE TEAM OF ALL [INAUDIBLE].
>> IN TERMS OF [INAUDIBLE] STAKE HOLDERS THAT WE ARE INTENTIONAL INCLUDING STAFF THAT ARE [INAUDIBLE] BECAUSE THEY HAVE THE DIRECT ACCESS TO WHAT THE STUDENTS ARE FACING.
>> ONE OF THE VERY GOOD THINGS THAT THEY DID WAS CLAIM STAKE STAKEHOLDERS.
WE'VE ALREADY DONE IT IN MANY CASES WITH THE MASTER PLANS AND THAT IS WHAT MESSED THEM UP.
WHAT WE HAVE TO BE ABLE TO DO ON THE PRIORITY LIST ON THE COLLEGES IS THEY PULL A LOT OF THESE THINGS.
THIS IS HOW IT LOOKS FOR FEEDBACK.
>> THE REASON I SAY THAT IS WHEN WE DO THESE INITIATIVE EFFORTS WE'VE BEEN [INAUDIBLE] --
I THINK THAT'S EALLY IMPORTANT.
>> A COUPLE OF OTHER INDIVIDUAL COLLEGE MASTER PLANS IS HOW -- GIVE US SOME CRITERIA.
[02:00:15]
[INAUDIBLE] FIGURE OUT HOW TO DO THAT.THEN THE OTHER THING IS SINCE [INAUDIBLE] WE ARE NOT JUST LOOKING AT -- WE ARE LOOKING AT ACROSS THE NETWORK.
WE HAVE TO LOOK AT COLLABORATIVE PROJECTS AND ALL THAT.
I THINK IT'S CROSS FUNCTIONAL TEAM THE LOOK AT IT.
IT IS LOOKING AT ALL OF OUR ASSETS AND TRYING TO -- AUDIEN[INAUDIBLE] THERE ARE THO ISSUES AS -- WE CAN'T USE THAT SPACE BECAUSE -- AUDIAUD[INAUDIBLE] SO IT IS -- WE WILL EVELOP THOSE TYPE OF THINGS.
>> YEAH I MEAN, WE ARE -- YOU SAID THIS IS GOING TO BE A YEAR PROCESS BUT THAT MIGHT E APPROPRIATE.
>> I CAN GET THROUGH IT IN 30 MINUTES IF YOU'D LIKE TO.
[2B. Funding Capital Budgets - Project Financing Presenter: John Robertson ]
[02:05:30]
>>> ANYTHING I SAY TODAY IS IN THE FUTURE AND I WANT TO TALK ABOUT SOME OF THEM, WHAT THEY DO, THE PERCENT FOR THE BOARD FOR THE FUTURE.
I'M AN AGE OLD ACCOUNTANT THAT COMES FROM [INAUDIBLE].
>> WHAT YOU DO IS YOU [INAUDIBLE] PROPERTY.
IT STEMS FROM DEBT SERVICE RATIO.
IF YOU'RE NOT PLEDGING PROPERTY TAXES, OUR STATE APPROPRIATIONS AND THESE THINGS.
IT'S JUST THE REVENUE STREAM THAT COMES FROM OTHER PLACES.
YOU MUST MAINTAIN 1.5 TYPES THE -- TIMES TO DEBT SERVICE RATIO.
I WOULD EXPECT TO GET ONE NOTCH BELOW OUR AA ARC -- AA ARC -- AAA RATING.
WE WOULD BE THE SAME AS THE U.S.
GOVERNMENT ON REVENUE BONDS IF WE GOT A REVENUE IN THEM.
WHAT'S OUR CAPACITY? TO STAY AT THAT FOUR TIMES RATIO WE COULD DO 200 TO 250 MILLION EASILY.
IT'S ALSO 15 TO 18 ON DEBT SERVICE.
>> WE USE THEM HISPATOHISTORIC?
YOU GOT ON THE BOARD AND APPROVED IT.
>> WE HAVE SUCH A GOOD FRIENDSHIP.
DOWN THE ROAD WE WANT TO CONSIDER REVENUE BONDS.
WE HAVE TO BALANCE THE BUDGET NOW. THERE'S ALL -- WE NEED TO LOOK AT IT SO WE CAN FISCALLY MANAGE JUST LIKE WE ALWAYS HAVE THE DISTRICT.
>> WE'VE DONE IT TWICE, LESS OR MORE WHERE WE'VE ACTUALLY PAID OFF DEBT AND IT RESULTED IN A SAVINGS TO US.
>> SINCE I'VE BEEN HERE WHAT WE'VE DONE IS WE'VE PAID OFF THE REVENUE BONDS WITH CASH AND SAVED THAT MONEY.
WHAT WE HAVE DONE WITH THE OTHERS IS WE HAVE DONE REFUNDING OF THOSE BONDS TO REDUCE THE INTEREST COSTS, IN THIS CASE IT WAS GO BONDS TO THE TAXPAYERS SO THAT WE SAVED THEM MONEY OVER TIME.
WE ARE ACTUALLY GOING TO DO ANOTHER ONE, SMALL.
WE'VE DONE THE BEST ONES WE CAN BUT WE ARE GOING TO DO ABOUT A $9 MILLION SAVINGS TO TAXPAYERS IN FY19.
>> CAN YOU GIVE US A CHEAT SHEET ON THAT?
[02:10:01]
>> IN RAISING THE INS FOR LAST YEAR FOR TAXES, THAT ALLOWED US TO PAY OFF MORE?
PART OF THAT WHEN YOU'RE LOOKING AT IT [INAUDIBLE].
THAT TAV IS -- THAT'S THE TAX RATE.
SO THERE'S -- OUR TARGET RATE IS TO KEEP THAT AT $0.02.
THAT'S WHAT WE'VE BEEN KEEPING IT OVER TIME.
IF I CAN KEEP IT THERE I CAN SAVE TAXPAYERS MONEY OVER THE TIME PERIOD.
I KNOW THE LAST TWO FISCAL YEARS AND WE ARE GOING TO DO $9 MILLION IN FY19.
$50 MILLION IN INTEREST THAT WE'VE SAVED BY MAINTAINING THAT $0 $0.02 TAX RATE.
IT WILL DEFINITELY BE AT .02, MAYBE A FRACTION LOWER.
>> WHAT ARE WE CURRENTLY USING OUR
>> IT'S OUR REVENUE TODAY THAT'S A VERY SMALL AMOUNT.
MOST OF THAT COMES FROM OUR OPERATING BUDGET THAT WE TRANSFER AND SET ASIDE TO HANDLE THOSE THINGS.
>> IT IS TRULY THE AUXILIARY REVENUE THAT'S THE REVENUE THAT'S COMING FROM OUTSIDE SOURCES, WHICH IS A SMALL AMOUNT FROM THE BOOKSTORES ON THEIR SPIRIT ITEMS, THE VENDING MACHINES AND OTHER LITTLE SOURCES.
THAT'S NOT ALL OF OUR REVENUE THAT WE GET.
TISH, DO YOU REMEMBER HOW MUCH THAT EXTRA REVENUE IS OFF THE TOP F YOUR HEAD?
I KNEW IT WAS GOING AND I THOUGHT I REMEMBERED THAT'S HOW WE SUPPLEMENTED.
>> THE AUXILIARY REVENUE BUDGET WE ARE FUNDING $900 MILLION, 1.2 MILLION IN THE BUDGET FOR FY19 THIS YEAR BECAUSE WE NEED TO SUPPORT THE STUDENT ORGANIZATIONS MORE.
>> THE TOTAL INCREASE IS 1.2 M 1.2 MILLION BUT THAT WAS TRANSFERRED LAST YEAR TO INCREASE --
>> THE NUMBERS ARE JUST THOUSANDS -- YOU SAY PLEDGE THE REVENUE STREAM AND SAY 25% TUITION.
PROPERTY TAXES ARE NOT LISTED.
SO PROPERTY TAXPAY REVENUES ARET AN UNDERLYING SUPPORT FOR SORT OF THE -- IT'S NOT THAT WE ISSUE REVENUE BONDS BUT WE ARE NOT ASKING TAXPAYERS FOR ANYTHING, WE ARE MANAGING OUR INCOME STREAM?
>> WHAT I'M TRYING TO TELL YOU HERE IS WHAT -- SO WHEN YOU LOOK AT REVENUES THE ONLY REVENUES YOU CAN REALLY LOOK AT ARE TUITION.
I CAN ONLY PLEDGE 25% OF THAT $100 MILLION WORTH OF TUITION.
AUXILIARY A COUPLE MILLION DOLLARS AND OUR INVESTMENT INCOME WHICH IS ACTUALLY GOING UP THIS YEAR IS ONLY GOING TO BE ABOUT $3 OR $4 MILLION. THAT'S ALL THAT WE CAN PLEDGE TO KEEP THE DEBT RATIO 1.5 TIMES.
THAT'S WHAT LIMITS THE AMOUNT OF DEBT SERVICE WE CAN HAVE.
WE'VE ALWAYS HAD FOUR TIMES OR BETTER.
>> MAX OUT REVENUE BNDS, ISSUE 250 MILLION AND THEN WE HAVE 18 MILLION A YEAR IN DEBT SERVICE.
ARE WE GOING TO STRUCTURE OUR BUDGET SO IT WOULD HAVE DEDICATED TIES TO THE REVENUE SOURCE?
>> NOT REVENUE BUT WE NEED TO SET ASIDE $18 MILLION TO PAY THE DEBT SERVICE.
>> BUT THE DEBT SERVICE IS PAID OUT OF ANY REVENUE.
>> WHAT WE DEDICATE AND WHAT THEY -- I HAVE TO KEEP US WHERE WE DON'T GET OUT OF.
[02:15:01]
ONE OF THOSE THINGS THAT ACTUALLY GET ME IN REAL BAD TROUBLE.WE WATCH THESE COVENANTS VERY CLOSELY.
>> I MEAN, OBVIOUSLY THAT'S THE QUESTION FROM A PLANNING AND EXPENDITURE POINT OF VIEW FOR THIS PARTICULAR PURPOSE IS ERY NARROW.
>> I'LL TALK A LITTLE BIT ABOUT A WAY AROUND HIS HERE IN A MINUTE.
MAINTENANCE TAX NOTES, FOR NEW FACILITIES, CAN'T USE IT TO ACQUIRE LAND.
IT CAN ONLY BE USED ON EXISTING FACILITIES TO PLEDGE A PORTION OF YOUR PRETAX REVENUES.
WE HAVE TYPICALLY NOT GONE OVER3 MORE THAN 20.
MORE THAN LIKELY IT'S 10 YEARS.
WE DON'T HAVE ANY SO THERE'S NO CURRENT RATING BUT IT SHOULD BE THE SAME AS OUR REVENUE BONDS IF WE WERE TO ISSUE REVENUE BONDS ONE NOTCH BELOW AAA AND SO COULD WE -- YOU KNOW, THEY ARE TYPICALLY USED FOR MAINTENANCE-TYPE PROGRAMS BECAUSE THEY HAVE TO BE ON EXISTING FACILITIES AND THEY ALSO USUALLY COME FROM THE OPERATING AX REVENUE.
I JUST LEARNED IN TRAINING LAST WEEK THAT ACTUALLY YOU CAN COMMIT A PORTION OF THE INS FUND TO PAY FOR TAX NOTES.
YOU BASICALLY CAN DO EITHER ONE.
>> WHAT'S OUR CAPACITY -- WE HAVE NO -- WHAT'S OUR CAPACITY?
>> I HAVEN'T REALLY FIGURED THAT OUT YET BECAUSE WE HAVEN'T DONE IT. THAT'S ONE OF THE REASONS I'M BRINGING AN EXPERT IN.
>> IT DEPENDS ON THE MATURITY.
I NEED TO TELL YOU 10 YEARS, 20 YEARS AND 25 YEARS.
I DIDN'T DO THAT FOR THIS PRESENTATION.
>> SO THERE'S NOT A HARD AND FAST STANDARD LIKE THERE IS ON REVENUE BONDS?
TYPICALLY WE -- YOU CAN DO THE SAME TING.
YOU CAN GO FOR HISTORY HERE OF WHAT WE O ON THOSE.
WE JUST DON'T REALLY HAVE A WHOLE LOT OF HISTORY OF WHAT WE'VE DONE OR HISTORICALLY HOW WE DO THOSE THINGS.
YOU CAN RUN UP TO THE EDGE ON THAT.
THAT'S WHAT WE NEED TO DO FOR DEFERRED MAINTENANCE.
THAT'S HOW WE LOOK AT USING THEM TOGETHER SO WE CAN THEN SEE WHAT DO WE REALLY WANT TO ACCOMPLISH, WHICH IS ANOTHER REASON.
>> SO THAT NUMBER IS SOMEWHERE IS BETWEEN ZERO AND 300 MILLION.
BUT, AGAIN, IT EFFECTS THE BUDGET.
I'LL DO IT WITH SOME DIFFERENT MATURITIES.
I'LL DO IT TWO WAYS, HERE'S WHAT THE IMPACT IS TO THE OPERATING BUDGET IF WE WENT OUT OF THE PROPERTY TAXES ON THE M AND O ACCOUNT AND I'LL LOOK AT WHAT IT DOES IF IT WAS ON THE INS AND WE WERE HAVING TAXPAYERS PAY FOR IT.
THERE'S SO MANY OPTIONS WITH MTMS IT'S HARD BUT I'LL HUNKER IT DONE AND GIVE YOU SOMETHING.
>> DON'T GIVE US THE OPTION SO THEN THE BOARD CAN DECIDE IF THEY WANT TO -- IF WE WANT O MOVE FORWARD.
>> THIS IS -- JOHN IS DOING THE PRIMER TODAY.
I'M GOING TO COME IN LATER TO HELP YOU WITH MORE DETAILED QUESTIONS.
OFTEN REFERRED TO AS G.O. BONDS, TAX BACK BONDS.
YOU PAY A PORTION OF THE TAXES.
THIS MUST BE APPROVED BY THE VOTERS.
YOU CAN GO UP TO 30 YEAR MATURITY. HISTORICALLY WE'VE BEEN 20 YEARS OWEVER WE HAVE A BOARD POLICY THAT SAYS OUR AVERAGE MUST NOT EXCEED 20 YEARS -- 25 YEARS.
I WILL SHOW YOU SOME NUMBERS HERE IN A MINUTE AND YOU'LL SEE HOW THIS DROPS BECAUSE WE'VE BEEN PAYING EVERYTHING OFF EARLY.
IT CAN BE USED FOR NEW LAND, CONSTRUCTION, INFORMATION TECH TECHNOLOGY.
G.O. BONDS DO NOT EFFECT THE OPERATING BUDGET BECAUSE IT IS SEPARATE.
TAXPAYERS PAY IT BUT IT IS NOT PART OF WHAT WE HAVE.
[02:20:01]
SO THEY REALLY TEND TO LOOK AT DEBT ALMOST LIKE INVESTMENTS BUT FROM THE OTHER WAY AROUND.HOW DO I WANT ANY OR ALL OF MY DEBT THAT I HAVE AVAILABLE? CURRENTLY E HAVE $228 MILLION PRIN PRIN PRIN PRIN PRINCIPAL PRINCE -- PRINCIPLE OUTSTANDING.
WE COULD BE AT $0.50 IF WE WANTED TO. IT'S THAT RATION -- RATIO. WE TARGET A RATE OF $0.02.
HERE'S OUR CURRENT DEBT SERVICE OVER TIME.
YOU CAN SEE IT REALLY STARTS TO DROP OFF AND COME 2029 IT BASICALLY GOES TO NOTHING.
WE HAVE A HUGE DROP COMING UP HERE IN 2021.
BASED ON PROJECTIONS OF WHAT WE THINK THE TAV WOULD DO, 10 YEARS, AND KEEPING THE TAX RATE AT $0.02 THE LIGHT BLUE BAR COULD MEAN DEBT SERVICE.
I'M NOT GOING TO CALCULATE THIS OUT.
WHAT THIS MEANS IS WE HAVE MORE THAN ENOUGH AVAILABLE CAPACITY TO DO A LOT OF THINGS.
>> BUT THAT WOULD HAVE TO GO BACK TO THE VOTERS.
>> EVEN IF WE DON'T INCREASE THE TAX RATE IT WOULD HAVE TO GO BACK.
>> EVERY ISSUE OF G.O. BONDS HAS TO BE APPROVED.
ONE THING ABOUT G.O. BONDS IS YOU CAN SELL THEM.
WE CAN ISSUE -- WE CAN GET THE VOTER APPROVAL FOR $100 MILLION, A ROUND NUMBER -- I THINK WHEN WE DID THE 2004 WE SOLD IN THREE OUR FOUR DIFFERENT ISSUES.
ONE WAS 1$100 MILLION, ONE WAS $150 MILLION.
YOU HAVE TO SELL THEM RIGHT AWAY.
A G.O. BOND YOU CAN GO TO THE VOTERS AND THEN YOU HAVE UP TO 10 YEARS AFTER THAT TO ISSUE THE BONDS.
SO THE THEORY IS FIGURE OUT HOW MUCH YOU NEED AND GO ASK FOR IT AT ONE TIME.
>> CAN YOU GIVE US A BALL PARK HOW G.O. BONDS EFFECT TAXPAYERS?
>> WE HAVE OUR M AND O RATE FOR THE OPERATING BUDGET.
IF YOU HAVE NO DEBT YOU HAVE NO INS [INAUDIBLE].
WHEN WE DID THE BOND WE OLD THE VOTERS IT WOULDN'T BE OVER $0.025.
WHEN YOU DECIDE HOW MUCH TO ISSUE AND WHEN IT'S ISSUED WILL DETERMINE WHAT THAT RATE IS BECAUSE IT'S A MATTER OF TAKING THE DEBT SERVICE THAT YOU'RE GOING TO HAVE FOR THE NEXT YEAR AND DIVIDE IT BY THE TAV, JUST LIKE THE M AND O IS DETERMINED.
SO AS THE TAXABLE ASSESSED VALUE INCREASES -- SORRY, I WAS USING MY ACCELERATE CROW NUMB -- YOU CAN DROP S IF I CAN PAY IT OFF EARLY AND MAINTAIN THE RATE.
HAVE AN EXTRA THOUSAND DOLLARS, PUT IT IN. THAT'S WHAT WE DO WITH THOSE TYPE OF THINGS.
SO BY MANAGING THE RATE AND KEEPING IT THE SAME I'M ABLE TO SAVE TAXPAYERS A LOT.
WHAT IS GOING TO HAPPEN OVER TIME WITH THAT CAPACITY IS IT CAN GET TO THE POINT THAT IT COULD START TO GET TO BE ZERO AGAIN.
WE CAN ISSUE $600 MILLION WITHOUT BATTING AN EYE.
WE WANT TO DO MORE THAN A BILLION OR A BILLION OR MORE WE ARE PROBABLY TO HAVE SOME MATURITIES IN 20, 25 YEARS BUT WE WOULD STILL BE UNDER OUR AVERAGE AN WE PROBABLY ISSUE THAT OVER 6 YEARS.
REMEMBER I TOLD YOU THAT WE HAD
[02:25:03]
A 10-YEAR TIME FRAME? WE COULD TAKE UP TO 10 YEARS TO ISSUE THOSE.TO GET THERE E PROBABLY WOULD HAVE TO HAVE $4 MILLION TO MAKE SURE THAT I MAINTAIN THAT $0.023 OVER TIME.
IF WE ISSUED IT ALL AT ONCE I DON'T THINK THAT WE COULD GET ALL THE PROJECTS DONE, IF YOU ISSUE IT ALL AT ONCE THERE'S A RISE IN THE INS RATE, THE TAXPAYER RATE.
WE TRY TO KEEP EVERYTHING LEVEL AND JUST A PHILOSOPHY.
DEBT SERVICE JUMPS SO MUCH THAT TAV WOULD NOT BE HIGH ENOUGH TO SUPPORT A LEVEL.
>> IF YOU ISSUE IT ALL AT ONCE WHAT WOULD IT CAUSE THE INS O DO?
I'LL BRING IN AN EXPERT O DO IT.
>> THE REASON FOR THAT QUESTION IS AN CONSTRUCTION S INCREASING A LOT HOW DO WE OFFSET MAYBE THAT ALL AT ONCE? WOULD IT REALLY MAKE SENSE AS YOU COMPARE TO TERMS OF COST TO THE TAXPAYER?
>> THAT WOULD INCLUDE OUR 3 FORECAST OF WHAT INTEREST RATES ARE GOING TO DO AND WHAT ARE THE INTEREST RATES ON THE LONG-TERM VERSES SHORT-TERM GOING TO DO.
I'LL TELL YOU I'M 100% RIGHT BECAUSE I'VE BEEN WRONG EVERY SINGLE TIME.
SO WE KNOW THAT THEY ARE GOING UP.
YOU KNOW WHAT, WE'VE GOT WHAT IS BASICALLY CALLED A FLAT YIELD CURVE.
LONG TERM RATES THANK OODNESS TO THE HOUSING MARKET HAVE MAINTAINED AND HAVE NOT GONE UP AS FAST AS SHORT TERM RATES HAVE GONE UP.
THIS IS WHERE I REALLY NEED TO EXPERTS.
WE HAVE NOT USED BUT BY BOARD POLICY WE ARE ALLOWED TO USE A PUBLIC FACILITY CORPORATION, WHICH IS A 501C3.
THE DISTRICT BOARD AND THE PUBLIC CORPORATION ARE THE SAME.
SO WE WERE TO SET UP A PUBLIC UTILITY CORPORATION THE BOARD WOULD BE THE BOARD THAT RAN THAT AND WOULD ISSUE THE DEBT AND THEN WE WOULD LEASE IT BACK.
>> IT'S IN OUR BOARD POLICY TOO.
>> THAT'S ALL WE USE IN THE TWO OTHER STATES THAT I'VE BEEN IN.
>> FACILITY BUT THOSE COULD BE EXTERNAL AS WELL.
>> WHAT THIS DOES IS IF WE GOT TO A POINT WHERE AS MUCH AS WE WANTED TO USE ON REVENUE BONDS THIS IS A NONREVENUE BOND CAPACITY.
YOU COULD ISSUE THE REVENUE BANDS UP TO THE MOST YOU WANT TO AFORD AND THIS WOULD GIVE YOU AN ALTERNATIVE. IT'S THERE AVAILABLE TO YOU.
THE DISTRICT HAS -- THE SIX LARGE COMMUNITY COLLEGES, I THINK AT LEAST THREE OF THEM ARE USING PUBLIC FACILITY CORPORATIONS.
>> THE CAPACITY OF THE PFC IN TERMS OF TOTAL CAPITAL.
>> WHATEVER [INAUDIBLE] OPERATING.
WE ARE MAKING LEASE PAYMENT TO A PUBLIC FACILITY CORPORATION AND THEY ARE PAYING THE DEBT.
SO YOU'RE -- THE LEASE PAYMENTS YOU'RE MAKING ARE BASICALLY EQUAL TO THE DEBT SERVICE OF THE PFC.
WE HAVE BOARD POLICY THAT ALLOWS THIS.
NOTHING HOKEY. IT'S JUST A DIFFERENT WAY OF DOING THESE THAT ALLOW YOU TO INCREASE CERTAIN REVENUE BOND CAPACITIES.
YOU DON'T WANT TO LOOK AT G.O.
BONDS OR MAINTENANCE TAX NOTES OR OTHER THINGS.
NOT IN -- I DON'T KNOW IF YOU CAN USE THEM FOR NEW LAND PURC PURCHASES.
DO YOU KNOW OFF THE TOP OF YOUR HEAD?
>> UNDER FEDERAL LAW YOU CAN USE THEM FOR ANY LEGAL PURPOSE.
>> THIS IS THE PAGE WHERE I HAVE SAID I'M GOING TO BRING EXPERTS IN LATER.
THIS IS THE PAGE WHERE I CAN REALLY USE THEM MORE THAN ANYTHING ELSE.
I'VE HAD A LOT OF HISTORY BONDS, REVENUE BONDS AND MGMS BUT HERE
[02:30:03]
WE'VE NEVER DONE THEM.>> THE EXPERTS, WOULD THAT BE OUR FINANCIAL ADVISERS OR ARE THEY ARTICULARLY IN THESE DIFFERENT METHODS OR WOULD THAT BE SOME OTHER TYPE?
>> PO BONDS, REVENUE BONDS AND PUBLIC FACILITY CORPORATION OUR FINANCIAL ADVISER COULD PEAK TO THESE.
THEY CANNOT SPEAK TO NEW MARKET TAX CREDITS. THAT'S NOT THEIR AREA OF EXPERTISE.
IT'S A COOPERATIVE AGREEMENT BETWEEN TWO OR MORE PUBLIC AND PRIVATE ENTITIES THAT'S TYPICALLY ALONG THEIR TERM NATURE TO COMPLETE TIDIANE CHEIK DIAW -- COMPLETE IT.
IT STILL EFFECTS BORROWING WE ARE NOT DOING -- THERE ARE SOME REAL ADVANTAGES TO DOING P3S.
WE NEED A DEVELOPMENT ADVISER.
THIS IS SOMETHING WE ARE GOING 3 TO BE TURNING AN RFQ OUT ON RECENTLY.
WHEN YOU START - WE NEED HELP.
WE CAN TALK TO A CERTAIN LEVEL BUT THESE -- THE DEVIL IS IN THE DETAIL ON THESE THINGS AS TO HOW THEY ARE STRUCTURED AND WHAT THEY DO.
WE ALSO HAVE TO HAVE BOND COUNCIL LOOK AT THEM, OUR GENERAL COUNCIL LOOK AT THEM.
WE NEED -- WE ARE GOING TO BE AT THE POINT WHERE WE NEED THEM TO EXPLAIN THEM ALL TO US, HELP US LACK FOR POTENTIAL FOR THAT HE HAS CAPITAL PROJECTS WE DO, WHICH ARE REPUBLICAN -- CANDIDATES AND WHICH ONES WE SHOULD STEER CLEAR OF.
>> IN TERMS OF WHAT YOU SAID ABOUT LEVERAGE CAPITAL COSTS, WHAT'S THE BENEFIT TO THE PRIVATE PARTNER? WHERE DO THAT I -- WHERE DO THEY RECOOP THEIR COSTS?
THEY HAVE DONE THEM IN THE PAST.
THE TWO COMMON PLACES ARE PARKING STRUCTURES, WHERE THERE'S A CHARGE TO THEM OR STUDENT HOUSING.
THEY HAVE ALSO DONE THEM IN CLASS ROOM BUILDINGS WHERE [INAUDIBLE] WHAT THEY ARE DOING ON THE INSTRUCTIONAL SIDE.
YOU CAN ALSO DO THEM IN AREAS IF THEY HAVE ENOUGH SCALE I GUESS TO GET DONE WITH RETAIL, FOOD SERVICE AND OTHER TYPES OF THINGS AS WELL.
THE UNIVERSITY OF TEXAS HAS PARKING STRUCTURE, HOUSING, RETAIL SPACE AND FOOD IN THE SAME PROJECT AND FACILITY, FOR EXAMPLE.
>> I'M STILL NOT UNDERSTANDING THEY --
>> THEY WILL ACTUALLY RUN THE STUDENT HOUSING.
THEY MAY DO THAT FOR 30 YEARS.
UNTD PROVIDES THE LAND AND THE STRUCTURE IS PAID OFF AND AT SOME OINT [INAUDIBLE].
>> INCURS NO COST IN TERMS OF --
>> ALSO IN NEW MARKET TAX CREDITS THE GOOD NEWS IS -- THE DOWNSIDE IS THOSE CAN BE SOLD ON A TRANSACTION BASIS.
YOU MAY BE DEALING WITH ONE PARTNER UP FRONT AND THEN THEY WOULD HAVE THEMSELVES THE PAPERS ON THAT DOWN THE ROAD.
>> THE PAPERS BUT NOT THE FACILITY.
EVERY SINGLE ONE IS UP FOR NEGOTIATION. THAT'S WHAT MAKES IT HARD IS DO YOU WANT TO SIT HERE AND SAY WE DO IT THIS WAY.
NO, EACH ONE COULD BE DIFFERENT.
THAT'S WHY THE DEVIL IS IN THE DETAILS.
YOU HAVE TO HAVE SOMEBODY WHO KNOWS. ROB AND I ARE PROBABLY THE TWO BEST PEOPLE IN THE WORLD BUT WE ARE NOT --
>> THE STATUTE IS ANY P3 THAT HAS AN INVESTMENT VALUE OF $2 MILLION OR MORE YOU HAVE TO USE AN OUTSIDE CONSULTANT TO REVIEW THAT PROJECT.
WE HAVE BUILT THAT INTO OUR DISTRICT POLICY AS WELL.
IF WE THOUGHT THAT WAS IMPROVING THE COURSE OF BUSINESS WE WOULD DO THAT ANYWAY.
A LOT OF THEM NOW INVOLVE -- I CAN THINK OF A COUPLE. ONE OF THEM IS PLAN FOR YOU IN DALLAS THAT INVOLVES ESSENTIALLY THEY
[02:35:02]
HANG ON TO THE LAND AND USE IT FOR RETAIL.>> YOU GOT TO REMEMBER THE PRIVATE DEVELOPMENT PARTNERS TURNING AN INVESTMENT CYCLE IS MUCH SHORTLY THAN THE INSTITUTION.
THEY KNOW WHAT THEY NEED TO GET IN TERMS OF RETURN OF INVESTMENT AN MOVE ON FROM THE PROJECT.
THEY WOULD GET THEIR BENEFIT OR THEIR RETURN OF INVESTMENT OUT OF IT ON THE FRONT END. IT'S A -- FROM PROJECT TO PROJECT IT MAY BE A PORTION ALLOCATED IN ONE P3 PROJECT AND LLOCATED A DIFFERENT WAY IN ANOTHER JUST DEPEND DEPENDING ON THE PART NER.
>> IT'S NOT LIKE A VENTURE CAPITAL?
>> THERE'S A LOT OF SIMILARITIES.
THEY ARE MAKING AN INVESTMENT TO GETTING A RETURN ON THAT INVESTMENT.
IT SERVES AN IMMEDIATE NEED FOR THE DISTRICT AND A LONGER TERM NEED FOR THE DISTRICT AS WELL.
THERE ARE NOT FOR PROFIT FIRM THAT IS DO THIS TO HELP PROFIT ENTITIES SO THEY THEN INCUR THE BOND INDEBTEDNESS ON BEHALF OF THE ORGANIZATION AND USE REVENUE STREAMS TO PAY IT OFF.
>> THERE'S FLEXIBILITY AND INNOVATION. THERE ARE PUBLIC PARTNERSHIPS, THERE'S PUBLIC/PRIVATE PARTNERSHIPS.
I MEAN, THEY COULD TAKE ANY NUMBER OF WHAT YOU'RE TRYING TO DO AND COLLABORATE.
>> SO THEY -- THEY GET THEIR RETURN FOR INVESTMENT IN THE QUICKEST WAY POSSIBLE FOR THEM BUT IN A WAY THAT'S NOT DETRIMENTAL OR NEGATIVE TO US?
>> THEY INCUR THE RISK GENERALLY SPEAKING.
>> SO LIKE A PROJECT AT THE UNIVERSITY OF OKLAHOMA, THAT'S LIKE A THIRD FULL.
SO THE UNIVERSITY DOES NOT INCUR THE LIABILITY FOR THAT, THAT'S ALL ON THE --
>> I'VE WORKED ON A NUMBER OF THESE WHEN I WAS IN PRIVATE PRACTICE AND YOU DO, YOU BUILD A GOVERNMENT AL ERNTITY OR INSTITUTE FOR HIGHER EDUCATION.
THEY ARE MOTIVATED FOR THEIR RETURN ON INVESTMENT OVIOUSLY.
>> YOU MAKE SURE THERE'S NO DETRIMENT BY THE COLLEGE OR DISTRICT, THERE'S NO RISK.
WE WOULD HAVE A DOWNTURN IN THE ECONOMY, SOMETHING THAT WOULD MAKE A MIXED DEVELOPMENT LESS VAUL VALUABLE OR ATTRATTRACTIVE.
THEY CALCULATE THAT AND IT ALL GOES INTO NEGOTIATIONS.
>> THE GOOD NEWS IS E HAVE DANCE PARTNERS, THE PEOPLE KIND.
>> AND MY DANCE PARTNER CAN'T SOLICIT US, WE HAVE TO SOLICIT THEM UNDER THE STATE SATUTE.
IN OTHER WORDS, THEY CAN'T COME TO US AND ASK US TO DANCE, WE HAVE TO GO TO THEM.
>> WE HAVE TO DETERMINE THE PROJECT FIRST.
>> WHEN THEY ARE COMING TO Y'ALL WHAT THEIR AREAS OF INTEREST ARE AND CAPABILITIES ARE, ET CETERA SO IF WE MOVE IN THAT DIRECTION YOU ALREADY KNOW SOME OF THESE PLAYERS.
>> [INAUDIBLE] IN THE SENSE OUR POLICY CON TEMPERATURE -- CONTEMPLATES THAT WE HAVE PROJECTS SUITABLE FOR A P3.
WHO MIGHT BE INTERESTED IN COLLABORATING WITH US IN A P3?
>> WE KICKED AROUND A COUPLE OF IDEAS TO HELP [INAUDIBLE].
>> AT THE TIME WHERE THE PARTNER COMES OUT OF THE THE PROJECT IT'S UP TO US TO MANAGE THEM.
>> OTHERS -- THERE'S USUALLY SEVERAL WAYS YOU WRITE INTO THAT.
YOU HAD OPTIONS OR WHERE YOU WANT.
THEY ARE GOING TO WANT TYPICALLY A CERTAIN TIME PERIOD AND AFTER THERE WOULD [INAUDIBLE] SO THEY ARE RECOOPING SAY WHAT IS A SALE, LEASE BACK.
[02:40:02]
REVENUES IN TWO DIFFERENT WAYS.ONE LET'S SAY IT WAS A PARKING STRUCTURE, THEY WOULD THEN GET THE MONEY FOR THE PARKING AT AN AGREED RATE.
THE COLLEGE MAY DECIDE TO GET A MANAGEMENT FEE, WHICH IS ANOTHER WAY TO GET REVENUE FROM IT TO RUN THE STRUCTURE.
>> THOSE ARE THE TWO MOST COMMON, PARKING STRUCTURES, HOUSING WHEN THEY ARE DOING THAT.
IT'S EITHER A MANAGEMENT FEE OR THERE'S SOME ALLOCATION FROM THE REVENUE FROM IT.
IT MAY NOT BE 100% TO THE DEVELOPER ON THE FRONT END.
THEY ARE BEARING THE DEBT BUT IT MAY PHASE OUT OVER TIME SO MAYBE AFTER FIVE YEARS IT'S 75% TO THE DISTRICT, 25% TO THE DEVELOPER.
IT AN BE STRUCTURED ANY WAY IT MAKES SENSE.
YOU HAVE TO WORK THOSE DETAILS OUT ON THE FRONT END.
>> WE DO WANT THAT EXPERT OR DEVELOPMENT ADVISER TO FIND TO COME -- WE FIND TO COME IN, THEY WILL MEET AT LEAST WITH THE FINANCE COMMITTEE THAT WE ARE LOOKING AT.
WE HAVE TO HIRE THAT EXPERT FIRST.
WE'VE GOT TO GO OUT IN THE MARKETPLACE AND LOOK FOR THESE DEVELOPMENTS AND LONG TERM CHECK THEM OUT.
TO EXPLAIN THESE THINGS TO THE - BOARD.
SO WE ARE KEEPING THIS AT A HIGH LEVEL.
>> I DON'T THINK THEY WANT TO HEAR THAT.
>> THEY HAVE HEARD EVERYTHING.
>> [INAUDIBLE] WILL ROGERS COL COLISEUM [INAUDIBLE] THEY WORKED AT A [NAUDIBLE] IN PARTNERSHIP WITH THE STOCK HOW AND IN PARTNERSHIP WITH -- SO THERE'S --
>> SOMETHING THE COLLEGES HAVE NOT REALLY BEEN -- THEY HAVE BEEN AROUND FOR A WHILE. I THINK IT WAS 2001.
THEY ACCOMPLISHED A REVITALIZATIONAL IN LOW AND IMPART OF YOUR VEHICLISHED -- IMPOVERISHED COMMUNITY.
THEY GET PAID OUT OF HOW THEY DO THIS.
LOOK AT THE PROJECTS BROUGHT O THEM AND DECIDE HOW TO ALLOCATE THEIR ALLOCATION.
ON A $3 MILLION PROJECT WE MIGHT GET $500,000, WE MIGHT GET A MILLION DOLLARS, YOU MIGHT GET SOMETHING.
BASICALLY -- THAT'S FREE MONEY.
>> IT'S USUALLY A [INAUDIBLE] OF THE INTENT PROJECTS DEPENDING OHHEN T -- ON THE PENTITY.
FOR EXAMPLE, WE JUST HAD A CONVERSATION.
THEY DO IT AS A GIVE BACK TO THE COMMUNITY.
SO THEY BASICALLY CUT HE LOSS OF THE FACILITY.
I YOU -- I MEAN, IF YOU HAD A $3 MILLION PROJECT YOU ONLY NEED $2 MILLION TO BORROW ON TO DO THAT MPROJECT GENERALLY SPEAKIN.
THERE'S VERY -- I ONLY WANT TO HELP WITH -- I WANT TO -- THEY HAVE SOME VERY SPECIFIC THINGS THAT THEY LOOK AT INVESTING IN THE COMMUNITY IN.
>> LIKE THE EXAMPLE ABOUT AT&T,WHAT'S THE BEN EFIT TO THE?
>> THEY GET A LITTLE BIT OFF OF IT OR --
>> IS THAT WHERE THE FEDERAL COMES IN? IT'S A FEDERAL PROGRAM?
>> YEAH BUT FEDERAL MEANS THAT TAX TAX DOLLARS ARE BEING HANDED IN THIS NEW MARKET TAX CREDIT TO THESE GROUPS AROUND -- AND IT ALL DEPENDS ON YOUR LOCATION TOO.
YOU CAN BE IN A LOCATION AND NOT GET TAX CREDIT MONEY AT ALL.
>> THERE'S PEOPLE IN THE DR DISTRICT NOT IN THE NEW MARKET AREA.
>> AND THEN THIS BECOMES -- THEY CAN TRADE THAT PAPER ON SOME -- HEY GET IT, THEY SELL IT AND THEN THEY [INAUDIBLE].
>> WE WOULD LIKE TO DO IT WITH3
[02:45:10]
AN EXPERT IN THIS AND LET THEM COME IN.>> ANY PROJECTS THAT ARE IN LOW INCOME OR IMPOVERISHED COMMU COMMUNITIES?
LIKE ANOTHER $50 MILLION BY THE FEDERAL GOVERNMENT.
THAT'S 26, 28 MILLION IN THERE.
>> SO WE MIGHT AS WELL HAVE THE MARKET AND SEE.
WE CAN ALWAYS FUND ANY TYPE OF AMOUNT FROM THE OPERATING BUDGET.
WE COULD INCREASE M AND O TAX RATE.
THAT'S WHAT TARRANT DID AND HAVE A PAY AS YOU GO FOR CAPITAL PROJECTS.
I DON'T EALLY RECOMMEND THIS BECAUSE TO A CERTAIN DEGREE THERE'S PROBABLY MORE NEEDS THAN WE HAVE MONEY WE COULD RAISE FROM TAXPAYERS.
AS TARRANT DID, THEY RAISED THEIRS 12 YEARS AGO, 15 YEARS AGO.
THEY DID IT TO DO SOME CAPITAL PROJECTS INSTEAD OF DEBT.
IF YOU TALK TO THEM NOW THEY WISH THEY HAD NEVER DONE THAT.
IT'S BEEN VERY -- SEVERE TO WHAT THEY NEED TO.
>> ON THAT THIRD BULLET, UNDER THE IRST BUDGET, FUNDS REDUCED.
>> WELL, ACCOUNTANTS ARE STILL LEARNING HOW TO WRITE.
OF COURSE ONE OF THE THINGS WE ARE ALWAYS LOOKING FOR.
AGAIN, ALMOST THE FIRST WEEK DR. MAY WAS HERE WE WERE LOOKING AT THINGS AND SAYING WHY DIDN'T WE GET PEOPLE TO DONATE THERE.
THAT'S A NEW WAY OF LOOKING AT STUFF.
SO WE ARE ALWAYS GOING TO BE LOOKING FOR THAT.
WHAT PUBLIC PARTNERSHIPS DO WE HAVE WITH -- AS WE DEVELOP THESE PLANS WITH CITIES AND COUNTIES AND MAYBE GET SOME OF THE THINGS WE WANT TO GET DONE. WE WERE TALKING ABOUT HOUSING EARLIER AND MAYBE THERE'S SOME WAYS HAT THEY -- WHAT WE ARE DOING TODAY IS WE ARE DOING AN INTERIM FINANCING.
YOU ISSUE A SHORT TERM DEBT IT TYPICALLY CARRIES A 50 TO 100 BASIS POINT PREMIUM, MEANING A HALF A PERCENT TO A PERCENT MORE AND IF WHAT WE ARE DOING RIGHT NOW WITH THE I.T. PROJECT IS WE ARE FUNDING OUT OF RESERVES THAT WE HAVE AND WE CAN BE THE LOWEST COST TO CAPITAL FOR THAT.
AT THE POINT WE NEED TO REPAY OURSELVES WE'LL ISSUE THE DEBT, THE REVENUE BONDS WE TALKED ABOUT, THE I.T. PROJECT BUT ISSUE THEM AT A LATER DATE AND WE'LL JUST PAY OURSELVES.
THIS IS THE WAY THAT WE CURRENTLY ARE DOING THAT.
IF WE GET INTO A VERY LARGE PROGRAM WE NEED TO AFFORD TO BE ABLE TO DO THAT.
WE JUST HAPPEN TO BE IN A VERY GOOD FINANCIAL SITUATION.
>> THROUGH OUR RESERVES NOW THAT WE USE?
>> WE HAVE OVER $200 MILLION AND MOST OF THE TIME WE ARE SITTING ON -- SOME OF THEM ARE COMMITTED BUT WE ARE SITTING ON INVESTMENT WISE BETWEEN $350 MILLION AND 400 MILLION.
>> OF THAT AMOUNT WHAT IS [INAUDIBLE]
THE PROJECTS ARE JUST GETTING DOING.
WHAT WE HAVE ESTIMATED IS UP $100 MILLION IS WHAT WE HAVE AVAILABLE TO PLEDGE TO INTERNAL BORROWING AND NOT SEVERELY IMPACT OUR RESERVE CAPACITY.
THE PROCESS AND THE PARTICIPANTS, WE HAVE OUR DISTRICT BOND COUNCIL WHO REPRESENTS US.
THAT'S IN ADDITION TO ROB WHO LOOKS AT THIS.
THEY ARE A SPECIALITY LAW FIRM GROUP.
THEY DELIVER AN OPINION ON THE LEGALITY AND THE TAX EXEMPT NATURE AND THEY ALSO REVIEW WHAT IS CALLED OUR INITIAL STATEMENT.
THE STATEMENT IS BASICALLY OUR PERSPECTIVES IF YOU WILL WHEN WE ISSUE THAT.
THE DISTRICT WORKS ON THE FINANCIAL ADVISER TO DO THAT.
FINANCIAL ADD -- ADVISER, CONSULTANT RELATIONSHIP TO THE DISTRICT AND THEY WORK ON THE TIMING, THE TERMS, OTHER SIMILAR THINGS.
THEY PREPARE HOW THE SCHEDULE IS SO WE CAN SEE HOW IT ALL WORKS.
THEY ALSO WORK WITH OUR RATING AGENCIES AND OUR INVESTORS.
AN UNDERSTOOD -- AN UNDERWRITER
[02:50:06]
WORKS WITH THE INVESTORS.WE SELL BONDS TO VERY LARGE MONEY MARKET FIRMS -- OR NOT MONEY MARKET BUT INVESTMENT BANKS AND INSURANCE COMPANIES.
THEY GO AND [INAUDIBLE] WHERE MAYBE ONE GROUP WILL BUY THEM ALL.
WE USUALLY USE -- YOU HAVE MULTIPLE TEAMS TO HELP MARKET THOSE.
UNDERWRITER NAME IS THEY ARE UNDER THAT BOND ISUANCE. THEY ARE ON THE HOOK FOR IT.
THEY CAN'T GET THE MARKET RATES, THEY ARE GOING TO BUY THEM.
SO UNDERWRITING IS ACTUALLY UNDERWRITING ISSUANCE OF THOSE BONDS.
THEY ALSO HAVE THEIR OWN COUNCIL OF THE UNDERWRITERS.
LASTLY, WE HAVE THE INVESTORS.
>> DO INVESTORS IN OUR BONDS GET THE SAME TAX ADVANTAGE AS MUNICIPAL BONDS?
>> YEAH, WE ARE ISSUE TAXABLE BONDS.
THEY PAY A HIGHER RATE ISSUING TAXABLE BONDS.
>> WHO SELECTS THE BOND COUNCIL AND FINANCIAL ADVISER?
>> THE RECOMMENDATION OF THE BOARD.
IN FACT, IT ACTUALLY [INAUDIBLE] WHAT YOU'VE DONE AND WHAT YOU'RE TRYING TO DO.
HOWEVER WE'VE HAD THE SAME FINANCIAL ADVISER FOR A NUMBER OF YEARS AND IT WOULD BE PRUDENT FOR US JUST LIKE WE DO WITH AUDITING TO ISSUE AN RFQ, RFP FOR FINANCIAL ADD VIE -- ADVISERS AND LOOK IN THE MARKETPLACE.
WE ARE HAPPY WITH WHO WE HAVE BUT T'S ONE OF THOSE -- THAT IS AN RFP THAT WE PROBABLY AUGHT TO DO HERE.
YOU CAN CHANGE THEM EVERY FIVE YEARS.
LIKE WE'VE TRIED -- RATING AGENCIES LOOK FOR A CERTAIN CONTINUITY IN WHO YOU'RE USING OR LSE THEY THINK THAT YOU'RE SHOPPING.
SO YOU'VE GOT TO BE -- THERE'S A DANCE IN THERE TO WATCH.
THEY TYPICALLY LIKE TO SEE THAT YOU'VE HAD THE SAME BOND COUNCIL.
THE BOND COUNCIL MAY MEAN THEY DON'T LIKE WHAT THEY HAVE SEEN.
>> WE'VE HAD THE SAME ONE FOR PRETTY CLOSE TO 20 YEARS.
I KNOW HEY WERE HERE WHEN I CAME ON THE BOARD IN 2000 THAT THEY WERE HERE.
>> THEIR NAMES HAVE CHANGED AND THE PEOPLE HAVE CHANGED BUT WE STARTED WITH ONE AND THEN IT WAS BOUGHT BY SOMEBODY ELSE AND THEN BOUGHT BUT SOMEBODY ELSE AND IT WAS FIRST SOUTHWEST AND NOW TOP SECURITY BOUGHT FROM SOUTHWEST.
YOU KNOW, IT HAS BEEN PRETTY MUCH THE SAME PEOPLE.
IF YOU WENT BACK AND LOOK YOU SEE NAME CHANGES.
IN ESSENCE THAT'S ALL IT'S BEEN.
>> IN TERMS OF BOND COUNCILING OR FINANCIAL ADVISERS, BACK IN 2000 THE COUNCIL [INAUDIBLE] SINCE CONCEPTION BUT THE FINANCIAL ADVISERS WE DID CHANGE FINANCIAL ADVISERS.
>> UH-HUH. WE HAVE WEST ADVISERS AND THEN PARK HILL, ALL THOSE THINGS.
I'LL TELL YOU THIS, I HAVE QUESTIONS ALL HE TIME OF BOND COUNCIL.
WITHIN 24 HOURS THEY ARE BACK TO US.
THEY ARE EXCELLENT WITH WHO THEY HAVE REPRESENT U. SAME THING ON OUR FINANCIAL ADVISER SIDE.
IT'S JUST THE POINT THAT THE FINANCIAL ADD VUZ -- ADVISER YOU SHOULD LOOK AT IT EVERY SO OFTEN.
>> YEAH, BECAUSE YOU HAVE TO REALLY UNDERSTAND THESE THINGS.
BECAUSE WE'VE HAD DIFFERENT PEOPLE I THINK -- I WON'T SAY THAT WE HAVE REALLY DONE OUR DUE DILIGENCE. THAT'S WHY WE REALLY NEED TO FORMAL LIZE THAT PROCES IT'S AN IMPORTANT POINT TO PICK THE TEAMS YOU DO WANT AND IT HAS TO MESH WITH THE BOSS, VIA THE BOARD AND WHAT THEY HAVE.
[02:55:05]
>> WE WOULD BE LOOKING AT PROBABLY GOING THROUGH THAT PROCESS AND WE MIGHT GET TO THE POINT OF ISSUING SOME DEBT.
WE HAVE RECENTLY GONE OUT IN THE MARKET.
HELD OR RECEIVED AND PAID THE BOND.
THEY PAY IT TO THE PEOPLE WHO OWN THE BOND.
TEXAS ATTORNEY GENERAL, I KNOW YOU KNOW WHAT THAT IS, THEY GET TO REVIEW ALL OF OUR LEGAL DOCUMENTS.
THEY ARE SAYING, YES, WE HAVE THE AUTHORITY TO ISSUE THESE BONDS.
THE ATTORNEY GENERAL IS INVOLVED T THIS.
MY BEST FRIEND, THE RATING AGENCIES, THEY LOOK AT OUR CREDIT WORTHINESS.
WE GET N AAA RATING ON OUR G.O.
IF WE HAD REVENUE ONDS WE WOULD PROBABLY USE THOSE SAME THREE AND WE ARE ONE NOTCH BELOW AAA.
>> THERE'S ALSO A GRAMMATICAL ISSUE.
>> JUST FOR THE BOARD, MY ONLY U.
INTERNATIONAL SPACE STATION -- MY ONLY INSTITUTIONS ARE AAA.
IT PROBABLY DOESN'T SAVE US MUCH BUT IT'S AT LEAST THREE BASIS POINTS OF PERCENTAGE RATE THAT WE GET WITH THE AAA. MORE THAN ANYTHING T'S JUST HOW CREDIT WORTHY WE ARE.
THAT'S EEN TOUGH TO MAINTAIN ESPECIALLY WITH MOODIES.
OVER ALL THEY DON'T HAVE A HIGH OPINION OF HIGHER ED.
THE BIG REASON IS BECAUSE THEY LEFT THEM HIGH AND DRY.
SO MOODY IS NOT A RELEVANT MODE FOR HIGHER ED.
THEY LOOK AT US VERY FAVORABLY.
>> IT WOULD BE GOOD TO KNOW WHO.
>> JUST QUICKLY, NECESSARY STEPS FOR SALE BNDS.
FIRST OF LL, Y'ALL HAVE TO DECIDE. WE WORK WITH THE FINANCIAL ADVISERS O DETERMINE BEST MEANS OF WE DO A BOARD REVIEW.
THE ADMINISTRATION, THE ADVISERS AND BOUND COUNCIL DRAFT DOCUMENTS ECESSARY FOR THE ISSUANCE.
APPOINTMENT OF UNDERWRITER, THE OFFICIAL STATEMENT, RATING REVIEW AND ASSIGNMENT, SALE PROCESS, BOARD ACTUALLY APPROVES THE BONDS SALE.
IT'S A DECISION WE WANT TO CALL A SPECIAL MEETING BUT IT STILL IS.
THE BOARD IS APPROVING THAT BOND SALE.
>> THIS IS THE SAME PROCESS FOR OUR REFUNDS THAT WE HAVE GOT.
>> YOU HAD A LOT OF QUESTIONS.
I THINK THIS WAS AN AREA OF THE DISTRICT'S OPERATION AND ASSETS AND VALUES TO UNDERPIN OUR DEBT.
YOU AVE GIVEN US AS A BOARD A LOT OF OPTIONS AND WE ARE GRATEFUL FOR THAT.
>> WE ARE SCHEDULED TO COME BACK AT 1:00.
>> LET'S COME BACK AT 1:15 AND WE'LL PICK BACK UP THEN.
>>> HOW YOU GOING TO TOP THAT?
>> YOU'RE GOING TO GIVE ME THE OPPORTUNITY.
[03:00:04]
>> HAT TIME DO WE START, 1:30? I'M READY.
[2C. FY19 Operating Budget Presenters: John Robertson & Tiska Thomas 1) Comparison to Peers 2) FY19 - Budget ]
>> I'D LIKE TO START THIS, WE ARE GOING TO TALK BUDGET THIS AFTERNOON.
FIRST OF ALL I'M GOING TO DO WHAT YOU'VE SEEN BEFORE BUT I WANT TO DO A REMAIINDER OF IT BECAUSE WE'VE UPDATED IT.
SOMETIMES THE KEY DISTRICTS IN THE STATE ARE LINKED TO THE BIG SIX, US, TARRANT, AUSTIN, HOUSTON, ALAMO.
I WANT TO START -- THERE'S A FAUX PAS.
WE'LL GO THROUGH THOSE FAIRLY QUICKLY.
HOWEVER, IF YOU HAVE QUESTIONS YOU CAN ASK.
TISH IS GOING TO RELIEVE ME AND -- BECAUSE I THINK WE ARE IN THE 7TH INNING OR SO.
THEN SHE'LL O OVER THE BUDGET AND THEN WE'LL HAND YOU THE BUDGET WE HAVE FOR NEXT YEAR AND SHE'LL GO OVER IT.
I PREFER NOT TO DO A PAGE BY PAGE AT THIS POINT.
YOU CAN BRING BACK YOUR QUESTIONS.
WE'LL ANSWER QUESTIONS AT THE SECTION LEVEL.
SO WE'VE UPDATED SOME OF THESE NUMBERS BUT JUST AS A REMINDER, OUR PEER GROUP IS THE SIXTH LARGEST COMMUNITY COLLEGES IN THE STATE.
IF YOU NOTICE, NUMBER SIX IS ABOUT HALF OUR SIZE, AUSTIN.
SO IN SOME [INAUDIBLE] BUT BECAUSE THEY ARE IN A LARGE URBAN SCHOOL AREA WE INCLUDE THEM.
ONE INTERESTING NOTE, [INAUDIBLE] OKAY.
TO THE LEFT OF THAT BAR AT 10,000 [INAUDIBLE].
A LITTLE PROJECTION OF WHAT WE'VE SEEN WITH HISTORY AND GOING OUT TO 2026 IS WHAT WE EXPECT WE ARE GOING TO CONTINUE TO BE, THE LARGEST PERCENTAGE OF OUR REVENUE BASE, STATE RIATIONS WILL CONTINUE TO DROP OFF AND TUITION IF WE MAINTAIN THE INCREASES HERE IT WILL BE [INAUDIBLE] PORTION.
>> WELL, I DON'T HAVE TO SAY THAT.
>> YESTERDAY I DIDN'T SAY A WORD.
THAT WAS THE PROBLEM. THIS IS A MIXTURE AS A PERCENTAGE OF EVERYBODY'S REVENUE.
THE PEOPLE ON THE GRAPH ARE TOTALLY STUDENT DEPENDENT.
THE PEOPLE ON THE LEFT-HAND SIDE ARE MORE BALANCED FROM THE GOOD MIX BUT WE ARE NOT VER CHARGING IF YOU WILL ON TUITION AND WE ALL KNOW WHAT IS HAPPENING WITH STATE APPROPRIATIONS SO WE ARE NOT GOING TO REALLY CONTINUE THERE.
TO BE A THIRD, A THIRD, A THIRD, THAT WENT OUT [INAUDIBLE] AGO.
YOU HAVE TO HAVE GOOD TAXES TO
[03:05:10]
DO [INAUDIBLE]>> STATE APPROPRIATION AND TAXES.
THOSE TOTAL -- THE TOTAL OF THOSE --
>> OF JUST THOSE THREE -- NOT THE OVER ALL BUDGET.
THE TOTAL OF THOSE THREE ITEM SOCIAL SECURITY A PERCENT OF THE TOTAL.
SO STATE APPROPRIATIONS, THOSE THREE ITEMS TOTAL.
[INAUDIBLE] THEY DEPEND UPON TUITION.
THE PERCENTAGE OF LOSS FOR THEM SO SO BIG --
>> INVESTMENT MONEY IS NOT IN THERE, AUXILIARY.
>> I DON'T THINK VERY HIGHLY OF WHAT WE ARE DOING WITH -- [INAUDIBLE].
>> WE INTENTIONALLY KEEP IT AT A MODERATE LEVEL.
PELL GRANTS GO FURTHER AND WE CAN COVER MORE OF THE COST.
THE OTHER PIECE TOO, YOU SEE STATE FUNDS REPRESENT ABOUT THE SAME PERCENTAGE.
WHAT ARE OUR PERCENTAGES IN TOTAL OF THE [INAUDIBLE] THE TUITION.
>> AND I KNOW YOU HAVE IT HERE BUT LIKE IN THE --
>> THE DIFFERENT FOR APPROPRIATIONS OR FTE IS WHAT PROGRAM THAT YOU HAD.
DO YOU REMEMBER SEVERAL YEARS AGO THE LEGISLATURE -- THERE WAS A CHANGE TO THE METHODOLOGY IN WHICH WE GET STATE APPROPRIATIONS. IT'S CORE -- THERE'S A CORE AMOUNT, A FLAT AMOUNT.
THERE'S STUDENT SUCCESS POINTS.
THEN THERE'S CONTACT HOUR FUNDING.
IT USED TO BE ALL CONTACT HOUR FUNDING AND THAT'S WHEN WE WERE ALL ABOUT THE SAME.
I DON'T KNOW IF YOU REMEMBER BEING THE SMALLEST? THEY GET MORE FTE BECAUSE OF THE CORE BASE. IT'S DIVIDED BY FEWER STUDENTS.
YOU'LL ALSO SEE THEY ACTUALLY DO A PRETTY GOOD JOB ON THEIR STUDENT SUCCESS PLANS, BETTER THAN US.
SO NOW THERE'S A LITTLE BIT DIFFERENT -- IT'S A PRODUCT MIX
[03:10:01]
STILL IN HERE BECAUSE THEY ARE FUNDED AT A HIGHER RATE LIKE TRANSFER PROGRAM AND SO ON.THERE'S STILL MIXED ELEMENT BUT THERE'S ALSO SOME OTHER ELEMENTS THAT GO INTO WHY THEY DIFFER FROM WHERE THEY ARE.
THE BIG DEAL IS WE ARE REALLY RIGHT IN THE MIDDLE OF WHERE EVERYBODY ELSE IS.
>> HOW S THE CORE FUNDING CALCULATED?
>> THEY DECIDE ON FLAT AMOUNT.
THIS YEAR -- FOR THIS YEAR IT ACTUALLY WENT UP.
>> NO, I MEAN HOW [INAUDIBLE] YOU SAY AUSTIN'S CORE FUNDING IS HIGHER.
>> NO, THEIR CORE FUNDING IS THE SAME AS OURS BUT BECAUSE THEY HAVE A SMALLER NUMBER OF STUDENTS ON A PER FTE BASIS IT LOOKS LIKE IT'S MORE. IT'S NOT PER FE, IT'S A CORE. EVERYBODY GETS THE SAME AMOUNT.
IT USED TO BE $500,000 A YEAR.
>> WELL, THIS YEAR IT WAS LIKE $1.2 BILLION IS WHAT THEY SET ASIDE FOR CORE FUNDING AND THEN THEY JUST DIVIDED IT AMONG THE COLLEGES.
>> EVERY DISTRICT GETS THIS 1.5 -- IS THAT --
IF YOU'RE A RANGER AND YOUR TOTAL BUDGET IS $6 MILLION YOUR PERCENT OF TATE FUNDING BECAUSE OF CORE FUNDING IS INCREDIBLY HIGH BECAUSE THAT $1.5 REPRESENTS A BIGGER PERCENTAGE OF IT.
IF YOU'RE A DALLAS COMMUNITY COLLEGE DISTRICT $1.5 MILLION DOESN'T GO ALONG WAY.
>> PER COLLEGE OR PER DISTRICT?
>> SO WE GET $1.5 FOR OUR CORE FUNDING AND CISCO GETS $1.5 MILLION.
>> WE [INAUDIBLE] SO THAT YOU CAN SEE WHY THIS TUITION --
>> S THERE ANY [INAUDIBLE] IN THE LEGISLATURE TO PERFORMANCE-BASED? IS THERE ANY -- LOOK AT CHANGING THE CLCULATION.
>> WELL, THERE'S GREAT INTEREST AMONG COMMUNITY COLLEGES.
SO THE LEGISLATURE DID IN THE KEEP ITS COMMITMENT TO INCREASE THAT.
SO THE COLLEGE ASSOCIATION HAD PRIORITY TO GET A BIGGER PIECE OF THE DOLLARS GOING
[03:20:27]
[03:20:34]
THEY HAD THEIR OWN TREASURY, HAD THEIR OWN BUDGET GROUP, SERVICES THAT ARE CRUCIAL TO THE DISTRICT.SO I THINK TWO PARTS IN THERE.
ONE, WE HAVE BEEN REALLY GOOD FISCAL.
WE'VE ALWAYS BEEN VERY GOOD FISCAL MANAGERS.
THAT'S PART OF WHAT WE HAVE HERE WITH THE SIZE.
SO AS THEIR EXPENSES CATCH UP THE BOTTOM -- NEXT TIME I'LL LOOK AT THIS.
>> JUST THE THINGS WE ARE PUTTING IN PLACE.
NOT ONLY BECOME MORE EFFICIENT, WE ARE GOING TO BECOME LESS COSTLY.
I THINK THAT WE ARE PRETTY EFFICIENT IN THE WAY IT IS NOW.
ALL THE THINGS WE HAVE BEEN TALKING ABOUT DOING WE ARE DOING.
OFFERING THE COURSE TO FINISH OUT THEIR COMPLETIONS AND THEIR DEGREES AND NO MORE.
I MEAN, EVERYTHING THAT NEEDS TO BE OFFERED BUT NOTHING MORE.
>> I DON'T UNDERSTAND THESE NUMBERS DOWN HERE.
>> THEY ARE -- IF YOU TAKE ALL OF THIS --
>> WHAT DOES THAT [INAUDIBLE].
>> F THE AVERAGE IS 2,000 THE 500 LESS IS 1,500.
>> SO TAKE ONE FULL TIME STUDENT --
>> OR IN THIS CASE WE ARE ABOUT $750 LESS THAN THE AVERAGE.
>> SMALLER COLLEGES ARE MUCH MORE EXPENSIVE PER FTE AS WE JUST TALKED ABOUT EARLIER.
>> IN DISTRICT TUITION, WE ARE STILL THE LOWEST TUITION RATE IN THE STATE.
COLLIN RECENTLY RAISED THEIRS.
I EXPECT THEM TO RAISE THEIRS AGAIN HERE SHORTLY.
ALL THE BONDS THEY ISSUED AND STUFF, THEY KNOW HAVE TO PAY FOR THE OPERATION.
THE MAINTENANCE AND ELECTRICITY AND UTILITIES AND EVERYTHING TO RUN THEM.
>> WHAT IS THE ENROLLMENT IN COLLIN RIGHT NOW?
>> SAY WE ARE 86,000 CREDIT STUDENTS, THEY ARE ABOUT 30 -- NOT ON YOUR LIST OVER THERE.
>> NO, THEY CAN'T BE THAT MUCH BECAUSE AUSTIN IS ONLY 20.
>> THEY ON'T MAKE THE BIG SIX IN THEIR COMPARISON.
>> EVEN LIKE TRYING TO INCLUDE AUSTIN IN OUR COMPARISON BECAUSE THEY ARE ABOUT HALF OUR SIZE.
IT'S LONE STAR, ALAMO AND HOUSTON ARE PROBABLY OUR BEST COMPETITION.
[03:25:01]
OUR COMPARISONS.WHEN I'M REALLY LOOKING OOK AT -- LOOKING AT THE DETAILS OF WHAT IS GOING ON HOUSTON IS TWO OF THE BIGGEST THAT I LOOK AT FOR WHO WE COMPARE TO.
>> WHAT ABOUT [INAUDIBLE] APPROPRIATE VALUES, PLUS COMMERCIAL PROPERTY VALUE.
>> BUT THE RESIDENTIAL IS GOING TO BE --
>> HIGHER PER PARCEL THAN OURS, YEAH.
>> IS THERE ANY CIRCUMSTANCE LIKE A FEDERAL FUNDING OR STATE FUNDING WHERE LOW TUITION -- I MEAN, LOW STUDENT PARTICIPATION AND FINANCING EDUCATION COSTS THE DISTRICT MONEY? ARE E EVER CHARGED?
>> PROBABLY IN [INAUDIBLE] NOT GETTING STATE FUNDING TO OFFSET ANY OF THAT.
SO YOU PRETTY WELL ARE HAVING TO.
IN TERMS, NOT REALLY ON PELL GRANT SIDE COMING IN.
WE ARE WITHIN A RANGE OF PROBABLY THE MONEY THAT THE STUDENT GETS BUT NOT REALLY.
THEY STILL ARE GOING TO GET AROUND $3,700 FOR COMING TO US AS A FULL TIME STUDENT, WHICH MORE THAN COVERING THE 17,070 FOR TUITION DURING THAT YEAR.
IT ENABLES US TO KEEP IT AFFORDABLE AND IT ALSO ENABLES US TO HOPEFULLY REDUCE THE NEED TO BORROW SO THAT THEY ARE NOT INCURRING MORE DEBT ALONG THE WAY.
SO I WOULD SAY, YOU KNOW, JOHN AND I GO BACK AND FORTH WITH THIS BECAUSE ON ONE HAND YOU WANT TO HAVE PEOPLE PAYING THEIR FAIR SHARE AS THEY ARE GOING THROUGH AND ON THE OTHER WE REALLY ARE TRYING TO IMPROVE A VERY DIFFICULT TO SERVE POPULATION.
I MEAN, THE -- IF WE DIDN'T INTERVENE IN SOME WAY.
SO I THINK AS WE ARE SEEING EVIDENCE THAT THIS IS WORKING, THE PAY OFF FOR US IS INCREASED ENROLLMENT, INCREASED STUDENT SUCCESS.
I WOULD SAY AS YOU CAN SEE ON THE NEXT SLIDE OUR NET IS ACTUALLY THE LOWEST BECAUSE, AGAIN, COLLIN CHARGES A BIGGER CHARGE.
>> AND WE HAVE A LARGE -- ALAMO IS RIGHT NEXT TO US.
BOTH PELL GRANTS EFFECTS THAT NET.
THIS IS WHAT STUDENTS ON AVERAGE PAY OUT OF POCKET.
NOT EVERY TUDENT BUT ON AVERAGE WE ARE THE LOWEST.
THE STUDENTS ACTUALLY HAVE TO PAY.
THAT'S A GOOD THING TO BE ABLE TO SAY.
WE'VE SAID THIS BEFORE ABOUT [INAUDIBLE].
AND THAT HAS HAD AN A BIG D -- HAS A BIG IMPACT ON PELL.
>> IF WE LOOK AT THESE NUMBERS WITH PELL, MAYBE WE HAVE DONE IT BECAUSE ONE OF [NAUDIBLE] THAT'S LESS THAN 600 CONTACT HOURS PELL DOES NOT COVER THOSE.
SO IF YOU'RE IN CONSTRUCTION YOU [INAUDIBLE].
I KNOW WE BUNDLE THOSE INTO ASSOCIATE DEGREES WHERE WE CAN.
THERE ARE PROGRAMS IF YOU ARE NOT ELIGIBLE.
COMPARING TO A MAINTENANCE AND OPERATION, AGAIN, THIS TAX RATE, THIS IS ABSOLUTE TAX RATE.
THIS IS NOT TOTAL TAX RATE, THIS IS THE TAX RATE THAT COMES INTO OUR OPERATING BUDGET THAT WE COMPARE TO ALL 50 DISTRICTS JUST TO GET IT.
WE ARE STILL -- YOU KNOW, FROM OUR TAX RATE WE ARE STILL A BARGAIN FROM THE TAX RATE ABSOLUTE PERCENTAGE ITSELF.
>> AND IN TERMS F BEING AN IMPORTANT BODY [INAUDIBLE].
[03:30:03]
ABOVE THE [INAUDIBLE].DON'T WE HAVE A POLICY ABOUT THAT?
WE TRY TO -- CHALLENGES BECOME THE STATE HE - CONTINUES TO REDUCE.
>> ON THE TAX REVENUES PER FTE, WE ARE STILL HERE.
WE HAVE TARRANT WHO CHARGES VERY HIGH RATE COMPARED TO US AND AUSTIN AT A VERY HIGH LEVEL OF PER FTE.
>> YES, THAT'S EXACTLY THE REASON.
IF YOU WERE TO COMPARE TOTAL TAX RATES WE ARE A LOT CLOSER.
THEY USUALLY CONCENTRATE AT M AND O BECAUSE IT'S THE TRUEST THING THAT EVERYBODY CHARGES.
LIKE TARRANT DOESN'T BUT LONE STAR HAS BIG DEBT SERVICE.
>> THEY HAVE A HUGE DEBT SERVICE AND THIS YEAR THEY ARE ACTUALLY GOING TO INCREASE THEIR TAX RATE.
>> YOU TAKE CONTROL OVER MORE HOURS.
THE MIXTURE OF PART TIME STUDENTS AND HOW MANY ARE TECH BASIS.
>> A REMINDER, TOTAL TAXES ON THE AVERAGE COUNTY IN THE CITY OF DALLAS.
>> A SLIDE I HAVEN'T SHOWN YOU BEFORE IS COMPARISONS FOR FTE FOR TUITION, STATE APPROPRIATIONS AND TAXES AND PUTTING IT ALL ON ONE STACKED BAR GRAPH, HOW WE COMPARE.
WHAT IS INTERESTING IS TO LOOK AT THAT BROWNISH GRAY BAR THAT'S IN THERE, THE TAXES AND HOW THAT COMPARES ACROSS.
TUITION NUMBER RANGES BUT THE DIFFERENCE BETWEEN ALL THESE IS REALLY THAT TAX RATE.
WHEN YOU COMPARE US TO ALAMO, OURSELVES, HOUSTON AND LONE STAR, WE ARE ALL PRETTY MUCH WITHIN THAT SAME.
AS A POINT TO THAT, IT'S A LITTLE BIT DIFFERENT.
THIS IS EXPENSES PER FTE, NOT TOTAL.
EDUCATIONAL EXPENSES, WHICH INCLUDES INSTRUCTION, PUBLIC SERVICE, [INAUDIBLE] SERVICES, LIBRARIES.
>> DO I BACK OFF THAT STATEMENT THEN?
>> INSTRUCTION, SUPPORT AND STUDENT SERVICES.
>> AND WHAT COMPRISING ACADEMIC SUPPORT?
>> THINGS LIKE LIBRARY DEANS, OVER HEAD.
>> I'M TRYING TO FIGURE OUT -- I UNDERSTAND LIKE LOOKING AT SLIDE 15 WHY AUSTIN AND TARRANT ARE VERY HIGH COMPARED TO OTHERS.
WHY ARE THEIR COSTS SO MUCH HIGHER ON SLIDE 18?
>> AUSTIN IS BECAUSE OF WHAT THEY PAY THEIR ADJUNCTS BECAUSE
[03:35:04]
THEY HAVE A -- THEY HAVE THE ST STATES [INAUDIBLE]>> 4% OF THE COST ON AVERAGE, SOMETHING LIKE THAT.
SO IF YOU SEE A HIGH NUMBER IT'S ALMOST ALWAYS PERSONNEL, SOMETHING TO THAT NATURE.
>> THESE ARE PERSONNEL COSTS THAT --
>> WE ARE IN THE SAME LABOR MARKET PER FTE.
>> THAT MAY NOT BE THE ADJUNCT ISSUE BUT IT'S A PERSONNEL ISSUE.
>> EVEN THE BIG SIX FOR BEING STRUCTURED.
>> EXPENSES AND TIMES YOU'LL COUNT EDUCATIONAL EXPENSES, MAYBE YOUR CONTINUING ED.
>> IT'S UP TO THE INSTITUTION TO REPORT THESE THINGS.
SO FACULTY GENERALLY STRAIGHTFORWARD.
>> BUT EVERYTHING ELSE THAT'S THERE.
SO IT'S DIRECTIONAL BUT NOT NECESSARILY GIVES YOU [INAUDIBLE].
>> ON PAGE 19 WE TALK ABOUT THE TOTAL DEBT AND EASE OBJECTLY G-- OBLIG OBLIGATIONS.
WE INCLUDED LEASE BECAUSE IT'S A DEBT LIKE ANYTHING ELSE.
WE HAVE $6,500 TOTAL DEBT OBLIGATION PER FTE.
AUSTIN WHO HAS BEEN ON [INAUDIBLE] IS THE LEADER AT 41 AND HOUSTON IS ALMOST UP THERE.
AGAIN, WHAT WE COULD AFFORD, THIS IS WHAT THE COMPTROLLER USING ON HIS TRANSPARENCY WEBSITE IS WHAT OUR DEBT PER CAPITA AND PER STUDENT.
IT'S SOMETHING WE PULL STRAIGHT FROM THEIR AREAS.
>> WHAT ABOUT WHEN WE GET TO [INAUDIBLE] YOU CAN'T GO THERE BECAUSE IT'S --
>> BUT THEY DO A SIMILAR CALCULATION OF WHAT THEY DO.
THEY DO ALL KINDS OF CALCULATIONS.
THEY USED TO PUBLIC THEIR DECISIONS AND HOW THEY CAN IMPACT RATING.
THEY DON'T REALLY LOOK AT OTHER PEOPLE'S INFORMATION, THEY DEVELOP -- THEY TAKE IT AND DEVELOP ALL THEIR OWN.
>> SO THERE'S NO AMOUNT, NO PERCENTAGE ABOVE -- DEBT PER FTE THAT SAYS THIS IS TO ABSORB IT, THIS IS TO --
>> THE COMPTROLLER DOES NOT BUT WHEN YOU LOOK ON THAT IT'S CALLED DEBT AT A GLANCE PAGE YOU CAN DO IT BY CITY, COUNTY, ISD, COMMUNITY COLLEGE.
WHEN YOU LOOK AT DALLAS IT PULLS -- THEY DETERMINE TO BE OUR PEERS. THEY'RE SOMEWHAT OF A SIZE AND LOCATION.
AT SOME POINT I HOPE TO BRING IT TO YOU AND GO OVER IT.
THE COORDINATING BOARD HAS A CONDITION INDEX. IT IS A SET OF MEASUREMENTS THAT MEASURES ALL 50 DISTRICTS AND RATES THEM AS WHERE WE ARE.
WE HAVE INDICATORS -- OUR INDICATORS ARE IN GREEN.
THERE'S ABOUT A DOZEN INDICATORS.
SOME SCHOOLS HAVE YLLOW, SOME SCHOOLS HAVE RED.
WE ARE AT THE TOP OF THE HEAP ON THAT ALL THE TIME.
SO WE ARE IN REALLY PRETTY OOD
[03:40:01]
SHAPE ON THAT.PARTLY A LOT OF DETAILED INFORMATION THAT FRANKLY THEY STARTED WITH IT YEARS AGO AND THEY ADJUSTED IT TO KEEP TRACK WE STARTED WITH WHAT WE CALL - GASBY 68, UNFUNDED IABILITY OF THE PENSION PLAN.
IT'S GETTING ADDED TO ALL THE AGENCIES BOOKS.
THIS YEAR WE ARE UNFUNDED LIABILITY OF ERFS.
WE WILL TOTALLY WIPE OUT ALL NET POSITIONS [INAUDIBLE].
THE POSITION INDEX HAS NOT BEEN CHANGED.
>> I DON'T THINK IT'S ALL THAT -- REMEMBER, WE HAVE THE SECOND LOWEST TUITION AND FEE RATE IN THE STATE.
WE HAVE THE LOWEST OUT OF POCKET COST PER STUDENTS NET TUITION.
WE HAVE EXCELLENT PROPERTY TAXES. IT'S ACTUALLY GOING TO BE A SUGGESTION THAT WE END EXEMPTION.
WE HAVE THE SECOND LOWEST DEBT AND LEAST OBLIGATORS.
OUR TAXES ON THE AVERAGE HOME BILL ARE LESS THAN 5% OF THE TOTAL TAX BILL.
WE HAVE THE SECOND LOWEST [INAUDIBLE].
A LITTLE BIT QUICK, I'LL LEAD INTO WHAT --
>> HOW DO WE -- AS A DISTRICT HOW DO WE GET CREDIT? I'M TALKING ABOUT IN POPLE'S EYES, THE PUBLIC, HOW DOES THE PUBLIC --
>> YOU KNOW, I SPEAK ON THIS TOPIC TO A LOT OF BUSINESS GROUPS.
BEYOND THAT WE DON'T REALLY DO TOO MUCH TO -- WE ARE TRYING TO WORK ON THAT.
OUR FINANCE CHAIR RITTER HAS SAID -- WE HOPEFULLY WILL COVER SOME OF THAT IN MISS THOMAS'S PRESENTATION.
WE ARE TRYING TO TURN IT MORE 3 INTO WHAT DO WE DO TO THE COMMUNITY.
TALKING ABOUT WHERE WE ARE DOESN'T HELP MUCH.
WHAT WE ARE GIVING BACK TO THE COMMUNITY AND WHAT ARE WE -- YOU KNOW, WE GAVE $16 MILLION BACK IN TUITION SCHOLARSHIPS TO DUAL CREDIT AND EARLY HIGH SCHOOL STUDENTS.
WE ARE MOVING AHEAD WITH THE PROGRAMS TO EDUCATE PEOPLE.
THOSE ARE THE TERMS WE NEED TO TALK IN AS TO WHAT WE ARE DOING.
I'VE BEEN REMINDED GET THIS BOARD AN ELEVATOR SPEECH.
I DON'T THINK IT DOES GOOD TO --
>> I FOUND THIS YEAR SOMETHING THAT DOES [INAUDIBLE] THE HIGHER ED COMMITTEE AS WELL AS THE NEW PUBLIC SCHOOL, FINANCING COMMITTEE THAT IS THERE.
FROM THE HOUSTON AREA, THEY RAN THE TAX AND WE ARE DOING OUT ALL OVER THE STATE, AS A GOOD USE OF RESOURCES.
THAT'S MAINLY BECAUSE WHAT WE ARE DOING.
HE HAS BEEN INCORPORATING THAT INTO HIS TALKS AS HE TALKS ABOUT THAT AS HAVING A LOT OF VALUE ON WHAT TAXPAYERS ARE PUTTING INTO --
>> WHAT YOU'RE SAYING ABOUT WHAT WE ARE GIVING BACK AND HOW WE ARE [INAUDIBLE] AS WE WERE DISCUSSING, [INAUDIBLE].
[03:45:07]
>> ON SIDES [INAUDIBLE] THAT THE SOUTHWEST.
SO WHEN YOU START TO LOOK AT THE IMPACT OF SOME OF THAT AS YOU 3 LOSE A BIGGER PERCENTAGE OF YOUR ENROLLMENT IT WILL IMPACT THE BUDGET AS WELL IF WAYS THAT WE ARE TRADING OFF FOR TUITION.
>> HERE'S WHAT IS INTERESTING, THIS IS IS THE SAME PRESENTATION I SHOWED LAST YEAR FOR FY18 BUDGET.
WE ARE DOING THIS SAME THINGS OF WHAT WE ARE TRYING TO DO TO ALIGN WITH WORKFORCE NEEDS.
THESE ARE ALL IN THE THINGS THAT WE TALKED ABOUT THAT WE ARE TRYING TO DO.
IT CONTINUES INTO THIS YEAR'S BUDGET.
WE HAVE LISTED THE TYPES OF THINGS LAST YEAR AND THIS YEAR.
SOME OF THESE HAVE CHANGED A LITTLE BIT.
FOR THE MOST PART WHAT WE ARE DOING IS THIS YEAR IS A CONTINUATION OF WHAT E STARTED LAST YEAR OR THIS CURRENT FISCAL YEAR.
WE STARTED THE FOOD PANTRIES AT OUR COLLEGES. WE ARE WORKING ON THE MENTAL HEALTH INITIATIVES.
IN ALL THE THINGS IT'S PROBABLY ONE OF THE BEST INDICATORS OF KIDS GOING ONTO GETTING A HIGHER EDUCATION CONVENTIONAL IS IMPROVING WITH ALL THE HELP WE ARE GETTING FROM COMMIT AND ALL THE HIGH SCHOOLS AND WHAT THEY ARE DOING.
THOSE THINGS ARE WORKING IN THE RIGHT AREAS.
WE ARE LOOKING FOR MODEL E EFFICIENCI EFFICIENCIES.
WE ARE CONTINUING ON WITH THE I.T. INFRASTRUCTURE AND ERP PROJECT AND THE SAFETY AND SECURITY.
WE HAVE GOT A SYSTEM WHERE WE HAVE BUDGET DOLLARS THAT REWARD OUT COMES AND WE ARE GOING TO CONTINUE TO WORK ON THE PROGRAM AND COMPLETE THE MASTER PLANS.
IT NEEDS TO BE INTEGRATED. THIS IS WHAT E TALKED ABOUT EARLIER.
WE HAVE TWO DEFERRED MAINTENANCE PROJECT THAT IS WE NEED TO CONSULT WITH TO DETERMINE THE OPERATING BUDGET SET ASIDE.
SO WORKING ON DEVELOPING THE MASTER PLAN, DEVELOPMENT OF A ROLLING FIVE-YEAR CAPITAL BUDGET AND THIS IS ALL GOING TO BE BASED ON THE GUIDING PRINCIPLES AND THE BOARD'S STRATEGIC PRIORITY.
COMPOSITION, WE WILL CONTINUE TO MAINTAIN COMPETITIVE DECISIONS IN THE MARKETPLACE.
THEY ARE DOING THEIR ANNUAL REVIEWS.
THEY JUST -- I THINK TWO MORE YEARS AND THEY FINISH EVERYBODY.
OR IS EVERYBODY FINISHED NEXT YEAR? ANYWAY, THEY ARE CONTINUING ON WITH THE ANNUAL REVIEW OF OUR COMPARABLE POSITIONS IN THE MARKETPLACE.
THEY ARE MOVING TOWARDS THE COMPETITION-BASED JOB DESCRIPTION AND PERFORMANCE EVALUATIONS.
WE ARE GETTING A LITTLE BIT CLOSER.
WANT TO CONTINUE TO IMPROVE COUNTY POPULATIONS THAT WE SERVE AND WE STARTED THE REQUIREMENT OF 19 HOURS OF INDIVIDUAL PROFESSIONAL DEVELOPMENT THROUGH EACH YEAR.
SO THERE'S AN ISSUE THAT'S ALWAYS BEEN ISTED THAT WE'VE NEVER REALLY [INAUDIBLE] WHEREAS WHEN YOU'RE BRINGING IN NEW PEOPLE TO A POSITION THEY ARE GETTING HIRED IN AT AN AMOUNT GREATER THAN THOSE ALREADY IN THE POSITION.
THAT HAPPENS MORE AMONG THE PROFESSIONAL SUPPORT STAFF.
SO THAT CAUSES PEOPLE TO BE UNHAPPY.
WHY DOES SOMEONE FRESH OFF THE STREET COMING IN AND ALREADY MAKING MONEY AND I'VE BEEN HERE FIVE YEARS, TEN YEARS, WHATEVER.
SO IN TERMS OF FACULTY LOAD WE ARE TRYING TO -- IN THAT REGARD WHEN WILL WE ET --
I NOW WE TOOK THAT UP ABOUT TWO YEARS AGO AND REALLY DID A DEEP DIVE AND TRIED TO GET THOSE SALARIES AT THE LEVEL.
>> AND SO I'LL HAVE TO GET -- GO BACK IN AND LOOK AND SEE IF THERE'S BEEN ANY SLIPPAGE THERE.
THE REALITY IS WE SET A MARKET RATE, WE BENCHMARKED AGAINST WHAT IS OUT THERE AND WE TRIED TO PAY -- YOU KNOW, WE INCREASED OVER THE LAST SEVERAL YEARS OUR STAFF.
I KNOW IT WAS LESS HAN AVERAGE ONE YEAR, 9.8% ONE YEAR.
[03:50:02]
WE DID A LOT OF INCREASES TO GET THAT UP.LET ME GO BACK AND TAKE A LOOK AT THAT.
>> IT'S NOT US, IT'S A BUSINESS, IT'S EVERYWHERE.
THE HARDEST THING IN HAVING TO LISTEN TO MY 28-YEAR-OLD COMPLAIN ABOUT IT LAST WEEK, T IS A DIFFICULT SITUATION BUT YOU HAVE TO REALLY GET BETTER ABOUT MOVING FORWARD WHETHER IT'S THROUGH PROMOTION OR SKILLED DEVELOPMENT AND SO ON.
LONGEVITY IN AND OF ITSELF IS NOT A REASON TO BE --
>> I'VE GOT IT ON THE ADMINISTRATIVE LEVEL TOO.
I TRY NOT TO LET IT HAPPEN IN MY AREA BUT IT DOES HAPPEN.
>> I KNOW THAT LIKE IF THERE'S AN ADMINISTRATOR ALREADY HERE LET'S SAY, FOREVER, A VP, AND ONE IS MAKING A CERTAIN AMOUNT AND THEN ANOTHER ONE IS HIRED ON AND MAKING 12 OR 13% MORE AND WE ARE SAYING ALL THINGS BEING EQUAL [INAUDIBLE] TO EQUALIZE THE SALARY?
OF COURSE WE ALSO -- YOU KNOW, WE TRY TO PEG IT I BELIEVE EXTERNAL FOR THE POSITION.
THERE'S ALWAYS GOING TO BE PEOPLE HAT TURN US DOWN BECAUSE WE DON'T INCREASE -- YOU KNOW, WE ARE NOT AT THE TOP IN TERMS OF SALARY BUT WE ARE NOT AT THE BOTTOM EITHER.
>> WE NEED TO MAKE SURE THEY ARE WITHIN THAT RANGE THAT WE'VE IDENTIFIED.
WE NEED TO COMPLETE SOME OF THOSE.
>> I'M NOT CONVERSING WHAT HAS BEEN DONE AT THIS POINT.
WE WILL CERTAINLY TAKE A LOOK AT THAT.
I THINK AS JOHN SAID, THERE'S A CERTAIN AMOUNT OF COMPRESSION THAT IS INEVITABLE ANY TIME WE ARE DOING THAT.
WE CERTAINLY -- I THINK THAT ALSO GOES PART AND PARCEL WITH WHAT WE NEED TO BE COMMITTED TO AND WILL BE COMMITTED TO AND GIVE THEM AN OPPORTUNITY TO ADVANCE WITHIN THE DISTRICT AND WITHIN THE ORGANIZATION.
IT IS SOMETHING WE ARE ALSO VERY KEEN TO DO.
>> SO YOU'RE SAYING WE ARE TRYING TO DO IT TO TRY TO STAY COMPETITIVE IN THE MARKET FOR NEW HIRES. DOES THAT APPLY TO [INAUDIBLE]?
>> I THINK IT'S A COMPREHENSIVE REVIEW OF THOSE POSITIONS.
>> WE WENT BACK AND REDID THE RANGE TWO YEARS AGO.
NOW AS WE INCREASE THOSE RANGES WE INCREASED THE BOTTOM AND WE INCREASED EVERYWHERE.
>> IN A PERFECT WORLD YOU HAVE TO COMPARE EXPERIENCE, KNOWLEDGE BASE AND OTHER THINGS THAT THE PERSON WHO IS COMING IN TO THE PERSONS THAT ARE HERE.
AGAIN, LONGEVITY IS NOT THE ONLY REASON --
LET'S SAY ALL OTHER THINGS BEING EQUAL, YOU KNOW, THE PERSON WALKING IN OFF THE STREET VERSES THE ONE THAT HAS BEEN HERE FIVE OR TEN YEARS THE ONE COMING IN OFF THE STREET DOESN'T HAVE ANY INSTITUTION MODEL OR EXPERIENCE BUT THEY ARE MAKING MORE MONEY.
THE REASON I BRING THIS UP, IT'S ALWAYS BEEN AN ISSUE WHEN I WAS AN EMPLOYEE AND TWO SINCE I'VE BEEN ON THE BOARD.
>> YOU HAVE THE SAME PEOPLE LOOKING AT IT.
[INAUDIBLE] EXERCISE OR PROJECTS FOR THEM TO TAKE A DEEP DIVE IN TERMS OF COME PENN STATE -- COMPENSATING THOSE ALREADY HERE.
>> THERE'S FIRMS THAT SPECIALIZE IN THERE.
I DON'T DISCOUNT THAT HAPPENS.
A LOT OF TIMES I HEAR IT WE LOOK INTO IT.
WHAT I FIND IS THERE ARE OTHER -- FOR EXAMPLE, A LOT OF PEOPLE EQUATE THE PAY RAISE TO NUMBER OF WORKLOAD. IT'S NOT.
IT'S ABILITY OR INDEPENDENT THINKING OR THERE'S A LOT OF OVER FACTOR THAT IS -- FACTORS TO GO INTO THAT.
[03:55:01]
THOSE PAY RAISES IT WAS RAISE AT A HIGHER LEVEL TO AT LEAST PUT THEM AT THE BASELINE AS ANYONE NEW COMING IN SO THERE WAS NOBODY COMING IN HIGHER THAN AN INCUMBENT.>> BUT YOU DO HAVE -- FOR NEW HIRES YOU CAN HIRE UP TO -- I THINK IT'S APPROVE.
THE PRESIDENT APPROVES A CERTAIN AMOUNT AND THE CHANCELLOR IS A CERTAIN AMOUNT, HOW MUCH? IS IT 25%?
>> TYPICALLY HR [INAUDIBLE] I THINK IF WE WOULD BE BETTER SERVED TO TAKE A REALLY DEEP DIVE AND OBJECTIVE DIVE AND AN OBJECTIVE LOOK TO MAKE SURE THAT WE ARE BEING FAIR AND -- TO ALL OF OUR STAFF.
>> I DON'T WANT TO SPEAK BECAUSE IT WOULD BE A DISSERVICE TO WHAT S BEING DONE HERE BECAUSE I'M NEW TO THE ROLE. WE WILL FIND OUT WHAT WE CAN HAVE TO ADDRESS THAT AND THE RESOURCES WE MIGHT BRING TO BEAR.
>> A COUPLE YEARS AGO WE DIDN'T ALLOW NEW PEOPLE COMING IN MAKING MORE THAN THE PEOPLE HERE.
IN THE REAL WORLD, IN BUSINESS, YOU NEVER LET AN EMPLOYEE COME OFF THE STREET AND MAKE MORE THAN YOUR INCUMBENT.
YOUR COMPETITION WILL MAKE YOU DO BETTER.
I CAN'T HIRE WESLEY IN MAKIING DHAR -- CHARLOTTE IS MAKING.
IT COST US A TON OF MONEY TO BRING EVERYBODY UP BECAUSE WE HAD TO.
>> YEAH, I THINK THAT WE TRY TO BE AS FAIR AND -- AS WE COULD.
>> BUT THEN AGAIN YOU BRING SOMEONE IN AT 25% ABOVE BASE.
PERCENTAGE WISE THAT'S WHAT I'VE HEARD.
>> DON'T THINK THAT IS -- I'M PRETTY CERTAIN THAT'S NOT CORRECT.
>> YEAH, IT HAS 250D -- HAS TO DO WITH A RANGE.
>> A QUESTION ON A DIFFERENT MATTER, YOU AND I TALKED ABOUT THIS A LITTLE BIT, WE ARE DEVELOPING A CAPITAL BUDGET BUT THAT'S NOT GOING TO BE IN BETWEEN 19 YET.
JUST DESCRIBE WHERE WE ARE IN THAT PROCESS AND WHY -- WHY THAT IS IMPORTANT AND HOW WE ARE MOVING.
>> YOU KNOW, LAST YEAR I WAS UNDER THE PLAN WITH WHERE WE WERE ON CAPITAL PLANS AND MASTER PLANS AND EVERYTHING THAT WE WOULD HAVE A CAPITAL BUDGET FOR THIS YEAR.
HOWEVER AFTER WE STARTED WORKING WITH CONSULTANTS AND LOOKING AT IT WE STARTED MOVING INTO THIS IDEA THAT WE NEED AN EDUCATIONAL PLAN AND OTHER THINGS FOR THAT CAPITAL BUDGET.
SO I DO NOT HAVE A CAPITAL BUDGET FOR YOU THIS YEAR.
THINGS WILL PERCOLATE UP DURING THE YEAR THAT WE'LL HAVE TO TALK ABOUT IT.
WE ARE NOT TELLING EVERYBODY THEY HAVE TO STOP UNTIL WE ARE DONE.
MONEY THAT WE ARE TALKING ABOUT IN ALL THE PROJECTS WE'VE SEEN THAT WE TAKE THE MAJORITY OF THOSE AND WE DO THEM RIGHT BY LOOKING AT THE DRIVERS THAT DEVELOP THAT ROLLING FIVE-YEAR BUDGET.
SO WE DO NOT HAVE -- WE HAVE AN OPERATING BUDGET THIS YEAR BUT WE DO NOT HAVE THE CAPITAL BUDGET.
AS WE MOVE THROUGH WE WILL HAVE ONE THIS YEAR AS WE DEVELOP THE EDUCATIONAL MASTER PLAN WITH ALL THESE PROJECTS.
WE WILL BE BRINGING THAT PROJECT IN.
THAT'S WHAT WE WILL WORK ON IN THE FUTURE.
>> ANY OTHER QUESTIONS BEFORE WE MOVE TO THE NEXT SEGMENT?
>> JOHN ALREADY COVERED ALL MY STUFF.
SO OUR BUDGET DRIVERS AND PRIORITIES ARE BASICALLY DERIVE FROM OUR STA -- STRATEGIC
[04:00:06]
PRIORITIES, OUR INTEGRATED NETWORK, BEING A MAJOR PROVIDER FOR THE TALENT SUPPLY CHAIN.OUR TREND FOR ENROLLMENT GROWTH IS JUST BASICALLY OVER 2% FOR THE LAST COUPLE OF YEARS.
>> SO WHAT WE SAW THIS YEAR, WE DID SEE A HIGHER PERCENTAGE OF GROWTH IN OUR CREDIT STUDENTS AS OPPOSED TO OUR CE STUDENTS.
>> WHAT'S THE BEST WAY TO MEASURE IN TERMS OH -- OF THE BUDGET PROCESS? IN THE PRIOR PRESENTATION WE SAW FTE FULL CREDIT.
THAT WAS IN THE 40-SOME-ODD AND THEN WE'VE GOT A [INAUDIBLE] THAT'S 75 OR 80.
>> FOR OUR BUDGET WE ARE LOOKING AT DOLLARS.
WE ARE BASICALLY JUST LOOKING AT DOLLARS AND WHAT WE GET IN TUITION FOR THESE STUDENTS FOR THE CLASSES THAT THEY ARE TAKING.
SO HAT CAN VARY DEPENDING ON THE LOAD THAT THE STUDENT IS TAKING AND IT ALSO VARIES ON WHETHER OR NOT IT IS A REIMBURSEMENT COURSE IF WE ARE GETTING STATE PROPOSITIONS FOR IT A POSED TO NON-REIMBERSABLE.
>> SO LAST YEAR AT THIS TIME WE WERE LOOKING AT DECLINING ENROLLMENT, DID WE WANT TO -- YOU KNOW, SHOULDN'T THERE BE SOME CORRESPONDING DEDUCTIONS? COMPARED TO LAST YEAR -- THE WAY WE MEASURED LAST YEAR, ARE WE INCREASING ENROLLMENT OR DECREASING ENROLLMENT THIS YEAR?
>> SO THIS YEAR WE ARE INCREASING ENROLLMENT DUE TO OUR EARLY COLLEGE HIGH SCHOOL STUDENTS.
>> OUR DISCUSSION LAST YEAR WHEN WE WERE TALKING ABOUT IT S TUITION IS NOT INCREASING.
THE NUMBER OF KIDS WERE ACTUALLY INCREASING.
IT IS AN AGE OLD THING THAT IS DETERMINE -- WHAT DO YOU TALK ABOUT IN THE BUDGET BECAUSE YOU GET STATE APPROPRIATIONS, YOUR TUITION BY SEMESTER CREDIT HOUR, YOUR TAXES HAVE NOTHING TO DO WITH THE STUDENT BASIS ON A PER FTE.
SO WE RIED TO ALWAYS MAKE THOSE IN THERE.
THE BUDGETS -- AS I SAID, THE BEST THING WE DO IS JUST LOOK AT ABSOLUTE DOLLARS AS WHAT IS GOING ON.
THE -- WE ARE TRYING TO GIVE SOME MEASUREMENT THAT WE SEE THIS TREND HAPPENING.
WHETHER THEY ARE PAYING OR NOT THAT'S WHAT WE ARE PROJECTING IS THE HEAD COUNT.
>> WE'VE ACTUALLY BEEN TRENDING UP EVERY YEAR YEAR OVER YEAR FOR AT LEAST THE LAST FOUR, FOUR AND A HALF YEARS.
YOU KNOW, I KIND OF RECALL THE TUITION REVENUE WAS DOWN A BIT.
>> BUT THAT ACTUAL ENROLLMENT WAS UP.
SO I THINK E WERE UP 2% LAST YEAR ROUGHLY.
WHICH IS A LOT OF PEOPLE IN OUR SITUATION.
>> WHERE DID EARLY COLLEGE HIGH SCHOOLS KICK IN?
THEY HAVEN'T FULLY KICKED IN YET.
>> WE'VE GOT GROUPS THAT ARE JUST OW -- THAT WILL BECOME JUNIORS THIS YEAR SO WE'LL GET THE FIRST OUT OF THOSE AS WE FOLLOW NEXT YEAR BY ANOTHER.
THERE'S 2500 IN COHORT -- NO, 3 THERE'S MORE THAN THAT.
WE'LL PICK UP ANOTHER -- THIS FALL WE SHOULD GROW ABOUT 3,000 OUT OF THAT THIS FLL.
THEN THAT SHOULD KICK IN WITH AT LEAST ANOTHER [INAUDIBLE] NEXT FALL AS WE GROW THAT OUT.
>> WHILE WE ARE CERTAINLY GOING TO SEE OUR ENROLLMENT GO UP BECAUSE OF EARLY HIGH SCHOOL STUDENTS ARE WE PROJECTS AMONG OTHER STUDENTS THAT [INAUDIBLE] THE REASON I'M ASKING THAT IS BECAUSE WE ALWAYS HEAR ABOUT HOW SO MANY PEOPLE ARE MOVING INTO THIS AREA BUT DO WE SEE ANY UPWARD TREND IN ENROLLMENT TREND WITH --
>> ESSENTIALLY LOOK AT OUR NUMBERS AND YOU SEE A NET TUITION INCREASE WHICH MEANS WE ARE ACTUALLY GETTING PAYING STUDENT, PAID BY SOME SOURCE, SCHOLARSHIPS OR FEDERAL FUNDS.
SO BOTH IS GOING UP BECAUSE THE WAIVERS AND SCHOLARSHIPS ARE ALSO GOING UP BY $3 MILLION.
[04:05:04]
ABSOLUTE TUITION INCREASE OF THOSE PAYING BUT ALSO WHO -- THE AMOUNT OF WAIVERS -- SCHOLARSHIPS GOING UP IS ALSO INCREASING.>> [INAUDIBLE] SO WE CAN UNDERSTAND WHERE THAT GROWTH IS COMING FROM.
IT'S IMPORTANT TO IMPACT US POSITIVELY.
WE ALSO NEED TO MAKE SURE THAT WE ARE STILL DOING EVERYTHING WE CAN FOR THE GENERAL POPULATION AND HAVE THE MARKET THAT WE WANT.
I DON'T THINK THAT WE HAVE EVEN IDENTIFIED WHAT WE WANT OUR MARKET TO BE.
THE WHOLE PURPOSE OF THE TUALLY- PROMISE.
THE PROMISE IS NOT JUST FOCUSED ON EARLY COLLEGE HIGH SCHOOL.
IT'S REALLY LOOKING AT THE THREE QUARTERS THAT -- TO THE GREAT EXTENT THAT ARE.
WE ALREADY HAVE AN EARLY PATHWAY FOR THE EARLY HIGH SCHOOL STUDENTS RIGHT ON IN.
THE THREE-QUARTERS THAT WEREN'T IN THERE WE DIDN'T.
>> SO E'RE -- THIS FALL IT'S OUR ABILITY TO REALLY CONVERT THE INTEREST.
YOU KNOW, WE KNOW RIGHT NOW WE'VE GOT A LOT OF INFORMATION ON WHO IS INTERESTED IN COMING TO SEE US OUT OF THESE HIGH SCHOOLS.
THE KEY IS WHAT IS OUR ABILITY TO TRANSLATE THAT INTO AN ENROLLMENT.
SUMMER IS GOING TO BE INCREASINGLY IMPORTANT IN THE FUTURE WITH SUMMER PELL. I DON'T THINK IT'S ALL THE PEOPLE ACTUALLY TAKING ADVANTAGE OF A SUMMER PELL, I THINK IT WENT UP -- QUADRUPLED ALMOST AND WE ARE SEEING AN INCREASE.
IT DOESN'T APPEAR THAT A LOT OF THOSE CAME RIGHT OUT OF HIGH SCHOOL NTO OUR PROGRAM.
SO THAT'S ONE THAT WE WILL ALSO HAVE TO WORK ON.
>> YOU'RE RIGHT, AND I KEEP REFLECTING BACK [INAUDIBLE]
>> ND THAT'S WHY [INAUDIBLE] MARKETING. THIS HAS GOT THIS IS GETTING STUDENTS ENROLLED.
>> ARE WE SEE ENROLLMENT THROUGH OUR OTHER CAMPUS-BASED PROGRAMS PRIMARILY? HOW ABOUT CONTACT HOURS? IS THAT GOING UP? I MEAN, IS IT -- IS EVERY WAY 3 THAT WE MEASURE STUDENT PRESENCE AND ACCESS TO EDUCATION GOING UP? THERE'S
>> WE HAVE TO FIGURE OUT THE PLAN.
>> I WANT TO SAY C IS NECESSARILY GROWING.
IT HAD SOME PERIODS WHERE IT GREW.
WHEN THE ECONOMY GETS BETTER IT TENDS TO SUFFER A LITTLE BIT MORE THAN CREDIT DOES.
INTERESTING ANALYSIS AS JOHN HOPPER DID FOR US THE OTHER NIGHT, IS A COMMON WAY OF LOOKING AT THINGS.
OUR NET TUITION, SINCE 2012 TO 2017 AS A PERCENTAGE OF REVENUE CHANGED AND WHEN YOU LOOK AT WAIVER, SCHOLARSHIPS HAS NOT CHANGED.
SO WHAT WE ARE SEEING THERE IN ABSOLUTE DOLLARS IS THE RATIOS E] WHAT IS SURPRISING ABOUT THE RATIO IS WE REMAIN OBTAINING A HEALTHY INDICATOR BECAUSE IT STAYED -- IT WAS ONE-TENTH OF A POINT OFF OVER A FIVE-YEAR COMPARISON.
I'M GOING TO BE VERY INTERESTED TO SEE '18 AND '19 AND HOW WE DO IT. IT'S QUICK AND DIRTY.
THINGS WE LOOK AT TO SEE HOW WE ARE DOING SAID, OKAY, WE ARE INCREASING THE AMOUNT OF WAIVERS AND SCHOLARSHIPS THAT WE ARE GIVING STUDENTS BUT OVER ALL THE TOTAL HEALTH -- THE TOTAL AMOUNTS OF GROSS TUITION WERE ALSO INCREASING.
SO IT WAS A GOOD QUICK -- IT WASN'T TELL THE WHOLE STORY ON EVERYTHING BECAUSE IT'S LARGE MAGNITUDES OF INFORMATION BUT IT WAS A NICE QUICK COMPARISON SAYING WE ARE NOT GIVING AWAY.
>> I THINK OTHER AREAS WHERE WE ARE SEEING REALLY GOOD TRENDS ARE ADULTS WHO ARE ADULT EDUCATION PROGRAMS. THAT'S GONE FROM ZERO I THINK THIS YEAR TO
[04:10:02]
13,000 THAT WILL -- ALMOST THREE YEARS I GUESS AT THIS POINT.SO, YOU KNOW, THE TRENDS ARE LOOKING GOOD DESPITE A GROWING ECONOMY.
I THINK THAT -- WE ARE GOING DEEPER THAN WE HAVE DONE IN THE PAST.
EVEN DUAL REDIT IS A NON-EARLY COLLEGE HIGH SCHOOL.
SO AS WE LOOK AT THOSE NUMBERS, THERE'S A NUMBER OF THING THAT IS WILL BE HAPPENING AT ONE TIME THAT ARE PRETTY POSITIVE.
>> SO OVER ALL OUR TOTAL ESTIMATED OPERATING REVENUE IS $471 MILLION, AN INCREASE OF $34 MILLION.
WE DIDN'T HAVE ANY CHANGE F STATE PROPOSITIONS.
WE ARE IN THE LAST YEAR OF OUR BUY IN TUITION.
WE HAD A SLIGHT INCREASE THERE.
TAXES, OUR TAB WENT UP BY IS $1% NETTING US $29 MILLION.
I BELIEVE THE TAB INCREASED $26 MILLION.
I THINK THAT WE'LL SEE THAT ON THE NEXT -- $26 BILLION.
I THINK THAT WE'LL SEE THAT ON THE NEXT SLIDE.
OTHER REVENUE, HICH IS OUR JUST GENERAL INCOME THAT WE GET ROM MISCELLANEOUS COLLEGE ACTIVITIES INCREASED BY $1.6 MILLION.
SO OUR QUICK SUMMARY, WE ARE LOOKING AT A 7, ALMOST 8% INCREASE IN OUR OPERATING REVENUE.
>> ONE OF THE SURPRISING POINTS IN THERE IS INVESTMENT INCOME.
HAVEN'T SEEN AN INCREASE IN THAT SINCE I'VE BEEN HERE.
SO WE'VE ACTUALLY SEEN THE RATES DOUBLE.
WE ARE A LITTLE MORE CONSERVATIVE EVEN THAN WHAT OUR PORTFOLIO MANAGER IS RECOMMENDING SIMPLY DUE TO, YOU KNOW, UNDER PROMISE AND OVER DELIVER IN THAT AREA ESPECIALLY.
WHEN WE PREPARED HE FY18 BUDGET THIS YEAR LAST YEAR WE WERE PROBABLY, YOU KNOW, LESS THAN 100 BASIS POINTS ON WHAT OUR RETURNS WERE AT THAT TIME.
HOWEVER, WE ARE PROBABLY OVER 200 BASIS POINTS NOW.
WE'VE HAD SOME MATURITIES THAT HAVE COME IN AT THAT LEVEL.
SO WE DIDN'T REALIZE THE FULL EFFECT OF THAT EXTRA INVESTMENT INCOME THIS YEAR BUT WE SHOULD SEE IT IF THE MARKET STAYS STATIC FOR THIS COMING YEAR.
SO THAT'S WHY WE SEE THAT TYPE OF GROWTH THERE.
>> WHERE IS THE EARLY COLLEGE HIGH SCHOOL TUITION MONEY APPEAR HERE?
>> WE DON'T TUITION FOR EARLY COLLEGE HIGH SCHOOL.
WE ONLY GET THE STATE APPROPRIATIONS.
WE HAVEN'T RECEIVED THAT UNTIL NEXT YEAR.
>> SO THAT COMES IN IN THE CONTACT HOUR?
>> IN THE STATE APPROPRIATION?
>> SO NOWHERE IN THE REVENUE CHARTS DOES IT SHOW UP AS A TUITION OR AS A DOLLAR AMOUNT? G
>> WELL, IT DOES SHOW UP ON THIS NEXT SLIDE.
IT DOES FACTOR IN ON GROSS TUITION AS YOU CAN SEE AT $136 MILLION.
HERE IN THE MIDDLE OF THIS SLIDE YOU'LL SEE WHERE WE HAVE TUITION WAIVERS AND SCHOLARSHIPS AT 19 MILLION. WHICH IS THE $3 MILLION INCREASE THAT JOHN SPOKE OF EARLIER.
THAT IS A DIRECT RESULT OF THE DUAL CREDIT AND THE EARLY COLLEGE HIGH SCHOOL.
>> SO IF WE USE THE NET TUITION FIGURE OF THE ENROLLMENT INCREASE OF REVENUE --
>> THAT'S WHERE I WAS TRYING TO GET AT.
>> WE CHANGED THE MONTHLY FINANCIAL REPORT THIS YEAR TO SHOW GROSS TUITION MINUS THE WAIVERS AND SCHOLARSHIPS AND THEN A NET TUITION. WE WANTED YOU-ALL TO SEE THE IMPACT OF WHAT WE ARE DOING AS WE -- WHAT THEY CALL IN THE PRIVATE UNIVERSITY AREA TUITION DISCOUNTING, WHICH IS WHAT IS BEING PROVIDED BY OTHER SOURCES.
>> SO ANOTHER HIGHLIGHT ON THIS SLIDE IS THE OPERATIONAL THAT WE GIVE FOR EARLY COLLEGE HIGH SCHOOL.
SO WE GIVE THE SCHOLARSHIPS DIRECTLY TO THE STUDENTS SO THAT'S TO THEIR BENEFIT.
WE ALSO GET A $3.5, WHICH IS A $1.2 MILLION INCREASE TO THE COLLEGES TO HELP THEM OFFSET THOSE COSTS THAT THEY HAVE FOR OPERATING THOSE EARLY COLLEGE HIGH SCHOOLS.
>> AGAIN, WHEN YOU START THE PROGRAM YOU DON'T GET STATE PROPOSITIONS EXCEPT FOR THOSE STUDENTS WHAT WHAT WE CALL A BASE YEAR.
WE ARE JUST NOW STARTING THE BASE YEAR PROCESS.
SO WE WILL NOW TART COUNTING ALL THESE EARLY COLLEGE MIDDLE SCHOOLS WHICH MANY OF THEM HAVE THREE YEARS OF STUDENTS GOING INTO THEM IN WHICH THEN IN THE NEXT BUY IN WE WILL START.
[04:15:01]
>> FOR THE ONES HERE FOR 2017 WE WON'T GET THEM FOR 2018 BECAUSE THAT'S NOT WHAT THEY ARE COUNTING.
>> WELL, WE DIDN'T -- T'S NOT.
WE JUST DID SHOW THE TYPE OF DISCOUNTS THAT WE DO IN SUPPORT OF THE STUDENT SCHOLARSHIPS IN ADDITION TO THAT.
>> IT SHOWS THE SUPPORT OF THE EARLY HIGH SCHOOL PROGRAMS ON HERE.
>> THAT'S FOR ALL SEVEN COLLEGES.
>> IT'S IMPORTANT FOR A COUPLE OF REASONS WHEN WE LOOK AT THIS.
FOR EXAMPLE, THE LEGISLATION THAT WAS PASSED REQUIRES THE STUDENTS NOT TO PAY ANYTHING IN ORDER TO PARTICIPATE, WHICH MEANS THAT WE'VE GOT TO COME UP WITH STRUCTURES BETWEEN US, THE SCHOOL DISTRICT TO MAKE THAT HAPPEN.
IT WAS ACTUALLY CONTROVERSIAL BECAUSE THEY EXPECTED THE STATE TO PUT THE DOLLAR S IN TO DO THAT.
SO WE NEED TO SHOW OUT THAT WE ARE COVERING THOSE COSTS.
>> IT'S A RECEIVVENUE THROUGH COLLEGE.
WHAT WE ARE TRYING TO SHOW HERE IS THE SIDE BAR. THAT'S WHAT THIS BOTTOM LINE IS. IT'S NOT REVENUE.
WE NOT ONLY HAVE $19 MILLION WORTH OF TUITION WAIVERS AND SCHOLARSHIPS WE ARE ALSO FUNDING $3.5 MILLION TO THE COLLEGES TO HELP OFFSET THE COST OF THOSE EARLY COLLEGE HIGH SCHOOL PROGRAMS SO THEY DON'T HAVE TO DO OUT ON THEIR OWN.
>> TEXAS PUBLIC EDUCATION GRANT.
THAT'S THE -- THAT WAS A REQUIRE. FROM THE LEGISLATURE YEARS AGO THAT WE -- THAT WAS A REQUIREMENT FROM THE LEGISLATURE YEARS AGO THAT WE USED TO HELP FUND 6% OF OUR TUITION TO GO TO PEOPLE WHO CAN'T AFFORD TO GO TO COLLEGE.
WE ACTUALLY USED 10% C HERBS SIDE AND 6% ON THE CREDIT SIDE.
SO YOU'RE RIGHT THIS IS NOT A 3 REVENUE PER SE WHAT WE ARE TRYING TO DO IS BRING THESE TOGETHER SO YOU CAN SEE THE FULL IMPACT.
>> THIS IS FOR HOW MANY EARLY COLLEGE HALES?
>> SO HERE WE HAVE OUR LOCAL SUPPORT.
THE AVERAGE HOME VALUE [INAUDIBLE].
EVEN THOUGH WE HAVE THIS INCREASE I KNOW THAT YOU LIKE TO SEE THIS ART HEAR SO WE CAN SHOW WHAT THE ACTUAL IMPACT IS TO THE TAXPAYER.
AS YOU CAN SEE IT'S JUST UNDER $20 A YEAR IS WHAT THIS INCREASE IN THE TAV IS FOR THE HOMEOWNER.
>> ALL OF THESE ARE ESTIMATED NUMBERS.
WE TAKE THE PRELIMINARY NUMBER THAT THE APPRAISAL DISTRICT GIVES US.
WE KNOW WE CAN GUESS AT WHAT IT WILL GO DOWN TO BUT WE NEVER KNOW UNTIL JULY 25TH WHEN THE S CERTIFIED NUMBERS COME OUT FOR SURE WHAT IT WILL BE.
>> IN TERMS OF THE AVERAGE -- THE IMPACT, THE DOLLAR IMPACT, WHAT IS THE AVERAGE HOME PRICE, IT'S GOING TO BE $255,000?
I'M WALKING IN THE ROOM RIGHT AS YOU WERE GOING OVER THERE.
HOW MUCH MORE IN TAX DOLLARS DOES THAT MEAN IT'S GOING THE ADD TO HOMEOWNERS?
DISTRICT EFFECT TO THE HOMEOWNER.
SO HAT MEANS THAT THOSE THAT ARE PAYING -- WHOSE HOME IS
[04:20:02]
VALUED AT $255,000 WILL BE PAYING ABOUT $20 MORE IN TAXES PER YEAR?>> SO THAT'S $100,000 -- THAT'S WHERE THE MAJORITY LEVEL OF YOUR POVERTY PEOPLE ARE, THEY WILL SEE NO INCREASE IN THEIR TAXES?
>> THAT'S ONE OF THE REASONS WE ARE GOING TO PROPOSE EXEMPTIONS SO THOSE TYPICALLY ON A FIXED INCOME -- IT'S ONE OF THE EXEMPTIONS WE CAN DO.
THEY GET 20% OFF IF THEY HAVE A HOMESTEAD.
AND THEN IF THEY ARE OVER 65 OR DISABLED BECAUSE WE SEE THE TAV GOING UP WE WANT TO INCREASE THAT ALSO TO TRY TO HELP IN THOSE SITUATIONS WITH PEOPLE ON FIXED INCOMES.
>> I KNOW TRUSTEE ZIMMERMANN AND RIGHTLY SO IS ALWAYS ADVOCATING FOR THOSE AT THE LOWER END OF THE INCOME LEVEL.
IS IT SAFE TO SAY THAT ARE GOING TO SEE VERY MINIMAL INCREASE PROPERTY TAXES?
>> I MEAN, I THINK THAT WOULD BE A SAFE ASSUMPTION THAT WE COULD SAY THAT.
HERE E ARE LOOKING AT SOMEONE'S HOME VALUE THAT'S $255,000 AND IT'S ONLY $20.
A HOME THAT WOULD BE LESS WOULD SEE THAT MUCH OF A CHANGE.
>> THE PROBLEM IS WE DON'T HAVE INFORMATION ON.
THE AVERAGES LOOK AT MEDIAN AND STANDARD DEVIATION.
YOU DON'T KNOW WHAT YOU'RE REALLY DEALING WITH. WHAT WE DON'T KNOW ARE THE INCREASES ON -- BY HOME PRICES.
LIKE ALL THOSE UNDER $100,000, WHAT WAS THE AVERAGE, 100 TO 150.
WE DON'T GET THAT INFORMATION.
ARE DOING THIS.ERAGES WHEN WE - IN THE DIRECTION TO THE QUESTION, I'M NOT SURE WHAT IS HAPPENING ON THOSE THAT ARE LESS THAN $100,000 BECAUSE ITS ALL DEPENDS ON WHAT THE APPRAISAL DISTRICT DID IN THEIR AREA ON REVALUING THEIR RATES.
IF WHAT THEY DID -- IF IT WENT UP 8% AND IT WAS ALL OUT OF HIGHLAND PARK, YOU KNOW -- YEAH.
>> WE DON'T GET THAT GRANULE INFORMATION.
AFTER ITS CERTIFIED WE GET THAT.
WE DON'T HAVE THAT WHEN WE DO THE BUDGET.
IT'S SOMETHING WE HAVE TO GO BACK LATER AND IS FOR THESE REPORTS.
WE TRY TO LOOK AT THOSE THINGS AS TO WHETHER OR NOT THEY HAVE HOMESTEAD.
WE ADVERTISED GETTING THE EXEMPTIONS AS MUCH AS WE CAN ON OUR TRANSPARENCY WHEN SITE.
THE TAX OFFICE DOES, THE APPRAISAL DISTRICT DOES.
THEY AKE IT BY YOU STOP BY THE OFFICE AND PICK UP THE FORMS. WE TRY TO MAKE IT AS EASY AS POSSIBLE FOR PEOPLE TO DO IT.
IF NAY DON'T TAKE THE INITIATIVE THEY ARE LOSING A HUGE EXEMPTION.
>> THE TAXABLE VALUE VERSES THE MARKET VALUE INCLUDES THE RESIDENTIAL CAP?
>> SO THAT -- BUT NO EXE EXEMPTIONS, JUST THAT 10% CAP?
>> WHICH HAS -- WE BOTH TALKED ABOUT THAT.
I'LL BRING IN AN APPRAISAL DISTRICT PERSON IN HERE.
THERE'S SO MANY WAYS AROUND THAT.
IT DOESN'T INCLUDE THE LAND, IT DOESN'T INCLUDE -- IT ONLY INCLUDES 10% INCREASE ON YOUR --
>> SO NOT LIKE A STORAGE BUILDING.
>> AND YOU COULD BE -- THE 10% DOESN'T COUNT.
>> IF YOU HAD A HOME VALUE [INAUDIBLE] AND IT WENT TO $120,000 YOU'RE GOING TO SEE A --
>> THE PERSON WHO HAD AN $80,000 HOUSE WILL STAY AT 80.
>> WHAT THEY DO, WE LOOK AT IT BY AREA BECAUSE WE CAN LOOK AT THE INCREASES BY CITY, BY SCHOOL DISTRICT.
THEY ARE OVER LAPPING AND THEY DO DIFFERENT THINGS AND THEY HAVE DIFFERENT MIXTURES.
IT'S REALLY TOUGH TO TRY TO 3 FIGURE OUT WHAT IS HAPPENING IN THE VARIOUS SOCIAL ECONOMICS OF3 THE ALUES OF HOMES.
>> AND WE KNOW THAT 60% OF THE PROPERTY TAXES COME FROM BUSINESSES.
>> WE SAY 55% BUT IT'S ANYWHERE BETWEEN 55 AND 60 IN ANY GIVEN YEAR.
>> AND ANYBODY WHO RENTS PAYS HIGHER RENT EVERY TIME THE TAXES GO UP.
>> HERE WAS THE INTERESTING THING THIS YEAR, FOR THE FIRST TIME THE -- THE APPRAISAL DISTRICT DEALS WITH PARCELS OF LAND.
[04:25:01]
>> IT INCREASED SIGNIFICANTLY.
>> THAT MEANS THEY ARE U BUSTIG UP PROPERTY DOWNTOWN OR WE ARE DEVELOPING.
WE'VE SEEN NEW CONSTRUCTION BEING AT OVER $6 MILLION FOR THE LAST COUPLE OF YEARS.
IT WAS $6.9 BILLION FOR THIS YEAR.
THE NUMBER OF PARCELS INCREASED.
THAT WAS VERY INTERESTED TO ME, MEANING THAT KIND OF GIVES YOU AN IDEA.
A PARCEL INCREASE TO ME IS [INAUDIBLE] THAT THINGS ARE BEING DIVIDED UP TO BE SOLD.
>> THOSE WHO HAVE COMMERCIAL PROPERTY AND GET THEIR APPRAISAL THEY ALSO HAVE THE RIGHT TO APPEAL?
>> EVERYBODY HAS THE RIGHT TO APPEAL.
>> SO IT'S NOT NECESSARILY THAT THEY WOULD UTOMATICALLY JUST A ACCEPT THAT THEY COULD NOT APPEAL.
SO IT'S POSSIBLE THAT THEIR AVERAGE INCREASE IS GOING TO BELESS -- BE LESS THAN WHAT WE ARE SIGH -- SAYING.
>> THAT'S WHAT MAKES OUR JOB HARD, ESTIMATING.
I NEVER KNOW OW MANY PEOPLE ARE GOING TO PROTEST.
I NEVER KNOW HOW MANY WILL SELL.
WE HAD THE LARGEST AMOUNT OF UNSETTLED WHAT IS CALLED VALUES THAT THEY HAVE EVER HAD IN THEIR HISTORY.
NOT JUST NUMBER, DOLLAR AMOUNTS.
THEY -- DALLAS DOES A GREAT JOB.
DALLAS COUNTY DOES A FANTASTIC JOB GETTING TO DISPUTE IT.
ESPECIALLY ON THE RESIDENTIAL SIDE.
MAY NOT LIKE IT BUT THEY GET THEM SETTLED.
ON THE COMMERCIAL SIDE MORE PEOPLE SUE.
SO THEY WILL GO TO ARV -- EXCUSE ME, THE APPRAISAL REVIEW BOARD AND NOT LIKE IT AND THEY HAVE THE RIGHT TO TURN AROUND AND BRING SUIT.
COMMERCIAL PEOPLE TYPICALLY DO THAT.
WE ALREADY TALKED ABOUT OUR AFFORDABLE EDUCATION, OUR IN THE KNOW RATE THAT'S BEEN THE SAME FOR THE FIFTH STRAIGHT YEAR.
WHAT WE WANT TO DO THIS YEAR IS LAST YEAR, YOU KNOW, WE BROUGHT IT FROM $50,000 TO $69,000.
THERE IS NO STATE CAP ON THIS EXEMPTION ALTHOUGH THERE'S A STATE CAP OF 20% ON THE HOMESTEAD EXEMPTION.
SO COMBINED THIS WILL BE AN EXTRA $900,000 IN TAXPAYER SAVINGS FOR THE COMBINED SAVINGS OF THE PAST TWO YEARS OF $2.8 MILLION.
>> THIS WOULD PUT US AT THE HIGHEST LEVEL.
>> THE COUNTY AND THE CITY IN PARKLAND ARE PROBABLY NOT GOING TO BE HAPPY WITH US.
>> I'M ASSUMING THERE'S FOLKS THAT WON'T BE HAPPY ABOUT IT.
>> I MEAN, IT'S $2.8 MILLION IN TAXPAYER SAVINGS BUT WE ARE GETTING $29 MILLION MORE.
>> WELL, THIS DOESN'T EVEN INCLUDE SOME OF THE OTHER THINGS THAT WE DO ANNUALLY WHERE WHAT DO YOU CALL -- IT'S NOT ENTERPRISE ZONES.
>> ARE THERE ANY OTHER EXEMPTIONS IN OUR CONTROL OTHER THAN THE 65 AND DISABLED?
>> THE HOMESTEAD AND THAT ONE.
>> THE HOMESTEAD WE ARE AT THE MAX.
THERE'S SOME THAT ARE LEGISLATIVE THAT ARE CONSIDERED MANDATED.
WHAT WE TALK ABOUT HERE ARE THE LOCAL CONTROLS AND HERE ARE EXCEPTIONS AND THINGS THAT ARE AVAILABLE TO FIREFIGHTERS, VETERANS AND THEIR CHILDREN.
>> HOPEFULLY PARTICIPATING IN THAT.
>> THE ONES WE ARE -- THE MANDATED WE HAVE TO.
>> THE COUNTY MAKES A DECISION?
WE DON'T -- I DON'T TAKE ANY CREDIT FOR THAT WHEN WE TALK ABOUT THIS.
WHAT I TALK ABOUT ALWAYS IS WHAT
[04:30:02]
I CALL THE LOCAL EXEMPTION.>> 65 AND DISABLED OR REDUCING THE RATE, WHAT MEANS ARE AVAILABLE TO THIS BOARD TO RETURN DOLLARS TO THE TAXPAYERS IF WE CHOOSE TO DO SO?
>> THINGS LIKE EARLY COLLEGE HIGH SCHOOL PROGRAMS AND PROMISE PROGRAMS.
>> THE HOMEOWNERS AND TAXPAYERS.
>> THERE'S REALLY NO OTHER MECHANISM YOU HAVE.
THAT'S WHY I LOOK AT THE AMOUNT THAT WE ARE GETTING AND THE INCREASE OF WHAT WE ARE RETURNING BACK TO THE COMMUNITY AND THE THINGS THAT WE ARE DOING WITH THESE HIGH SCHOOL PROGRAMS AND WHATEVER.
THOSE ARE TYPICALLY RESIDENTIAL.
>> [INAUDIBLE] WE WAVE TUITION, THERE ARE OTHER THINGS.
>> I CAN GIVE YOU A IST OF ALL OF THEM.
>> OTHER THAN LOWERING THE TAX RATE THERE'S REALLY NOTHING IN OUR CONTROL.
IN TERMS OF ACTUAL DOLLARS, WE ARE AT THE MAXIMUM.
>> DOLLAR AMOUNT OF THE BONDS WE WILL PAY OFF IN 2018 AND 2019.
>> SO WE WILL HAVE A LINE ITEM EXPENSE IN OUR BUDGET OF $31.6 MILLION TO TAKE DEBT OFF OUR BOO -- BOOKS?
>> NO. BECAUSE WE ARE REFUNDING AT CHEAPER RATES ON THE MA CHUR -- MATURITY CYCLE.
SO WE ARE AYING CASH FOR A PORTION OF THEM NEXT YEAR.
>> THAT'S JUST A PROPER EBT MANAGEMENT.
THAT'S NOT A REFINANCING YOUR HOUSE.
>> BUT REGARDLESS OF ANY INCREASE N THE TAB WE SHOULD DO THAT ANYWAY.
>> I WORRY ABOUT WHO -- TWO THINGS, THIS WAS A PROBLEM WITH THE EDUCATION -- LEGISLATURE AND THE LOCAL GOVERNMENT, WE ARE GETTING MILLIONS OF DOLLARS TO INCREASE PROPERTY TAXES.
YOU KNOW, THE - WE ARE BASICALLY OTHER THAN THE INCREASE IN EXEMPTION ALLOWING THAT BACK INTO OUR OPERATING BUDGET.
IT'S TO DO IMPORTANT WORK AND THINGS WE HAVE TO DO.
IT'S INCUMBENT UPON US -- DO WE NEED TO LOOK AT A REDUCTION IN M AND O AND RETURNING SOME OF THAT DOLLAR VALUE BACK? IF WE DON'T HAVE THAT KFSHGS -- CONVERSATION THE RISK IS THE LEGISLATURE IS GOING TO TAKE THAT AWAY FROM US.
IT DOESN'T MEAN THAT IT CAN'T HAPPEN AGAIN.
I WANT TO BE IN THE POSITION TO SAY THAT IN THE DISTRICT [INAUDIBLE] WHEN IT CAN RETURN DOLLARS TO TAXPAYERS.
THIS IS NOT GOING TO GO OVER FOREVER.
WE ARE BUILDING OPERATING COSTS INTO OUR BUDGET.
WHEN THIS GOES THE OTHER WAY WE ARE GOING TO HAVE TO CUT.
IN THE T.A.B. GOES DOWN WE WILL -- YOU KNOW, WE ARE NOT ENTERTAINING THAT CONVERSATION AT THE BOARD.
>> YEAH, WE HAVEN'T DISCUSSED IT.
I THOUGHT ABOUT THAT, AS A BOARD CAPPING IT.
RIGHT NOW IT'S 7.99% SUBJECT TO ROLL BACK.
[04:35:01]
ISOLATION THOUGH OF TUITION.SO F WE ECIDE ON ONE HAND WE WANT TO HOLD BACK OVER HERE WE ARE GOING TO HAVE TO DO OME THINGS ON THE OTHER SIDE AS WELL.
RIGHT NOW WHAT WE ARE DOING IS DISCOUNTING TUITION AND PROVIDING NO COSTS TO -- AS THE BENEFIT.
AS WE'VE EEN FROM THE CHART WE SHOWED EARLIER, WE ARE IN THE POSITION TO DO THAT WHEN HALF THE DISTRICTS IN THE STATE ARE.
THEY RELY ON UITION AS THEIR REVENUE SOURCE.
SO IN SOME WAYS WHILE IT -- ULTIMATELY WE NEED THAT DISCUSSION BETWEEN THE TWO.
WE ARE KIND OF I THINK -- I THINK THE INTENT WAS TO HAVE THAT ND LOOK AT IT AT SOME POINT.
WE WANT TO SHIFT THAT RESPONSIBILITY -- I MEAN, LET'S FACE IT, IT'S A BURDEN ONE PLACE OR ANOTHER.
WHERE DO WE WANT TO I GUESS PUT THE BURDEN RELATED TO THE BENEFIT?
>> YEAH, THAT'S -- YOU KNOW, IF WE SEE A DECLINE IN T.A.B.
LOOKING AT M AND O INCREASES, TUITION INCREASES AND HOW DO WE BALANCE BETWEEN THOSE TWO IS A CONVERSATION WE HAVE TO HAVE.
WHAT I'M SUGGESTING THAT DO WE WANT TO CONTINUE AS BOARD TO HAVE THE M AND O RATE AS AN UNADJUSTED VARIABLE.
YOU KNOW, IT'S GOING TO BE -- WE ARE GOING TO BE IN A LOT TOUGH EVERY POSITION TO RAISE -- YOU KNOW, IF WE HAVE TO RAISE IT LATER, IF WE NEVER LOWER IT WHEN WE HAVE THE OPPORTUNITY TO DO SO.
WE ARE INSTITUTIONALIZING COSTS.
WE HAVE MORE IMPORTANT THINGS TO DO.
WHAT WOULD M AND O DECREASE OF $5 MILLION TO THE TAXPAYERS LOOK LIKE?
>> 50EACH TENTH OF A CENT IS 2.5 MILLION IN REVENUE.
>> WE CAN'T TALK ABOUT THAT EXCLUSIVELY OUTSIDE OF WHAT WE DO WITH THE GENERAL OBLIGATION AS WELL.
THERE'S THREE THINGS THAT GET BLENDED WHEN WE LOOK AT TAX RATE, BONDING AND OUR ABILITY AND TUITION ARE ALL TOGETHER.
THAT'S SOMETHING THAT WE CAN ABSOLUTELY DECIDE HOW WE WANT TO HANDLE THAT IF WE WANT TO DO THAT DIFFERENTLY THAN BEFORE.
>> JUST TO PUT SOMETHING OUT THERE, BECAUSE I THINK TRUSTEE RITTER RAISES A GOOD ISSUE, LET'S SAY THE BOARD WAS TO 3 DECIDE THAT WE WILL NEVER ACCEPT MORE THAN 5% INCREASE FOR US PER YEAR.
>> WE WILL OPERATE UNDER WHATEVER HAPPENS.
WE WOULD PROBABLY GO BACK AND CUT THE NUMBER OF EARLY COLLEGE HIGH SCHOOLS THAT WE ARE LOOKING AT STARTING UP.
WE BASED THAT KIND OF ON THIS BUDGET TO GROW THAT THIS YEAR.
SO IT DOES EFFECT OUT WHAT WE CAN DO.
WE LAID OUT THERE'S 107, WE ARE AT 31 ADDING THEM EACH YEAR.
THAT'S ABOUT $75,000 - THAT'S ABOUT 750 A POP. SO AS WE LOOK AT THAT, THESE ARE NOT GOING TO BE AN ISOLATION OF THINGS.
THEY WILL HAVEN -- HAVE AN IMPACT.
>> MINIMUM COULD WE LOOK AT IT AS AN OPTION THAT WE SERIOUSLY CONSIDER? DO WE SAY THESE ARE GOOD TIMES WE WANT TO ADVANCE ON AND WE WILL KEEP OPERATING AS WE HAVE BEEN?
>> THAT'S A GOOD STATEMENT RIGHT THERE.
>> JUST LOOK AT IT AS AN OPTION FOR US TO BE ABLE TO CONSIDER AND MAKE THAT DECISION.
>> KIND OF RUN THAT, LOOK AT WHAT THAT DOES TO THE BONDING.
>> WE ARE GOING TO TALK ABOUT THAT IN THE LAST SLIDE.
I TAKE THE INCREASES IN TAX REVENUE ERY SERIOUSLY.
I UNDERSTAND HOW WE ARE DOING IT.
I ALSO TAKE THE PROGRAMS THAT WE ARE DOING AND KEEPING AS I'VE HEARD THE BOARD KEEPING THE TUITION RATE LOW AND VERY AFFORDABLE.
I ALSO SEE WHAT IS COMING DOWN THE PIPE.
WE TALKED ABOUT DEFERRED MAINTENANCE EARLIER AND NOT HAVING ENOUGH FOR THAT.
WE TALKED ABOUT WHAT F WE DO HAVE A EVENUE BOND.
SO IF YOU DO THAT AND WHILE THAT'S NOT TODAY -- WE ARE NOT DOING THAT TODAY.
SO IT MEANS AT SOME POINT IN THE FUTURE IF THE T.A.B. -- WHICH JOHN HOPPER -- I'VE NEVER DONE IT THIS WAY.
[04:40:53]
>> PEOPLE CAN'T AFFORD IT AND PRICES START O DROP.
THIS YEAR IT WAS COLLABORATION THAT DIDN'T TOTALLY IT THE TODDLE.
WE ARE NOT GOING TO SEE THE T.A.B. I WANT CR-- INCREASES TH BEV HAD.
>> WE WERE IN THOSE TIMES WHEN THE RECESSION HIT, TO GREAT RECESSION WHEN WE REALLY HAD TO DECREASE FUNDING BECAUSE WE WEREN'T GETTING THE T.A.B.
>> WELL, WE CUT FUNDING AT THE SAME TIME.
>> HOWEVER, DURING THE GOOD TIMES HOW WOULD IT HAVE THE RIPPLE EFFECT IF THIS BOARD WERE TO SAY -- LET'S SAY THE INCREASE IS 12% ABOVE, 10% ABOVE BUT THIS BOARD WILL NOT LOOK AT THE PERCENT. GIVE US OPTIONS, A SUGGESTION.
>> WE ARE NOT TALKING AT GIVING IT ALL BACK OR HALF OF IT BACK.
>> GIVE MORE THAN $2 BILLION OF IT BACK.
AND I THINK WE CAN FIGURE OUT HOW TO DO THAT WITHOUT JEOPARDIZING THINGS LIKE EARLY COLLEGE.
>> I'M JUST SAYING THAT AS WE BUDGET OUT WE DO LOOK TO BE AVAILABLE AND WE MAKE DECISIONS BASED ON THAT JUST LIKE YOU DO AT HOME.
I MINE MINE -- I MEAN, YOU MAY DECIDE WHEN YOU BUY A NEW CAR AND WHEN YOU DON'T AND THINGS ON THAT NATURE.
WE STILL LIKE WHICH WE DID FOR THE FIRST TIME LAST YEAR APPROVING A BUDGET IN AUGUST.
WE WILL BRING THE BUDGET WITH OUR BEST -- WITH OPTION ONE, OPTION TWO.
WE WILL TAKE THAT AND ACCEPT THE BUDGET BY WHICHEVER OPTION YOU ARE TELLING US TO DO.
>> NOT NECESSARILY LOOK AT A CAP THIS YEAR BUT NEXT YEAR SO AFTER FY19 THIS TIME WE ARE GOING TO MOVE FORWARD IF THE BOARD MAKES THAT DECISION.
THEN AGAIN WE ARE ALSO LOOKING AT IMPLEMENTING SEVERAL STRATEGIES.
YOU'LL SAID IT EARLIER TODAY, IT'S GOING TO REALIZE SAVINGS.
MAYBE THAT'S WHERE WE NEED SOME OF THAT OFFSET. IT'S 9 MILLION IN SAVINGS TO THE DEBT SERVICE TO THE TAX.
>> BASICALLY IF WE GIVE A LITTLE BIT BACK IT'S DOING TO LOOK SO MUCH BETTER IF WE GO BEGGING FOR MORE WITH THE BOND.
GIVE A LITTLE BIT BACK THAT WAY WE CAN SAY THAT WHEN IT WAS GOOD WE DIDN'T -- WE DIDN'T TAKE IT.
WE ARE AT THE POINT NOW WHERE THIS IS WHERE WE ARE AND THIS IS WHAT WE NEED.
TO ME I THINK THAT WOULD BE ONLY FAIR.
>> WELL, THE $5 MILLION OR $7 MILLION.
>> SOME PORTION OF $29 MILLION.
>> ARE YOU TAKING ABOUT PENNIES OR DOLLARS?
IT WOULD DEPEND WHAT EACH ONE WOULD GET BACK. THERE'S NO WAY TO CALCULATE.
>> I THINK IN TERMS OF DOLLARS.
IF WE GOT -- IF WE'VE OT $29 MILLION BECAUSE OF INCREASE IN T.A.B. YOU KNOW, WE AUGHT TO CONSIDER THAT MONEY AND CONSIDER GIVING MORE BACK.
THAT WOULD BE 20 OR 50% OF THAT WHICH IS 7, 8 OR $10 MILLION.
IN THE CONTEXT OF A $450 MILLION
[04:45:06]
OPERATING BUDGET.>> ON AVERAGE YOU'RE TALKING THAT GUY'S $20 INCREASE AND MAKING IT $18 IF YOU GIVE BACK 10%.
FOR A $250,000 HOME IT'S ONLY A SMALL INCREASE. MY POINT IS, YOU GIVE BACK NOTHING AND SAY WILL SAY I WANT AN INCREASE AND ONLY COMING BACK WITH AN INCREASE IF IT'S NECESSARY LATER ON.
I DON'T SEE THE NEED TO GIVE BACK $2 OUT OF $20.
>> BUT IF YOU'RE RUNNING A $50 MILLION APARTMENT COMPLEX, IT WORKS OUT O BE MAYBE A COUPLE OF LESS DOLLARS PEOPLE HAVE TO PAY IN HIGHER RENT AND THERE'S LOTS OF FOLKS WHO ARE ON THE BOTTOM WHO RENT THAN OWN HOMES.
>> THE WHOLE IDEA THAT NOT GOING P AS MUCH THAN WE WOULD HOPE THAT THE RENTS WOULD NOT GO UP AS MUCH.
>> AND CERTAINLY -- YOU WOULD HELP ME THE MOST WITH THIS.
IN TERMS OF THE PROPERTY OWNERS, I DON'T -- IF THEY ARE GOING TO HAVE A RENT INCREASE IT'S NOT ONLY GOING TO BE DRIVEN GI -- BY TAXES.
IT'S NOT JUST GOING TO BE THE TAX ISSUE.
THEY WOULD SAVE A COUPLE DOLLARS BUT THEY WILL INCREASE ECAUSE OF THE WHOLE PICTURE.
THANK YOU FOR HELPING ME SEE THAT.
>> WELL, EVERYBODY IN DALLAS COUNTY --
>> INFLATION RATE HAS NOT BEEN BAD.
>> I WOULD BE CONCERNED ABOUT TUITION INCREASE.
I THINK IT'S A MINIMAL -- I SEE WHAT YOU'RE SAYING.
IF WE WANT TO HELP TAXPAYERS BUT I THINK A LOT OF AXPAYERS IN DALLAS DON'T REALIZE HOW MUCH THEY PAY TOWARDS DCCD BUT OUR STUDENTS ARE DEFINITELY GOING TO FEEL THEIR TUITION INCREASES.
SO I THINK WE GOT TO BE SENSITIVE TO THAT.
YOU KOW, IF WE WERE IN A $29 MILLION T.A.B. DECLINE YEAR TO YEAR I WOULD JUST DEAL WITH IT.
YOU KNOW, THE -- I THINK WE WOULD BE IF A ETTER POSITION TO MAKE THAT DECISION IF WE GAVE -- YOU KNOW, MORE SIGNIFICANT POSITION IF WE WENT BACK TO WHERE WE HAD IT.
GIVE US A VERY STRONG ARGUMENT OF FISCAL RESPONSIBILITY.
[INAUDIBLE] E ARE ONLY AT 4%, WE COULD BE 2% BUT WE SHOULD STILL KEEP THE TAXPAYER IN MIND.
>> HOW MUCH DO I GET? [INAUDIBLE] WHAT'S IN IT FOR ME?
THEN YOU WONDER -- THEN YOU GOT TO ASK THE QUESTION, LOOK AT THE VOTERS IN THE NEXT BOND ELECTION AND HOW MANY WILL BE VESTED IN THE MISSION OF THE DISTRICT AND PERCEIVE THAT VLUE.
>> IF WE CAN MAKE OURSELVES LESS GRASPING WHEN [INAUDIBLE] ASK OF THE TAXPAYER IT WOULD BE EASY TO SAY 4% OF YOUR T.A.B.
WAS GIVEN BACK OR 2% OR WHATEVER IT WAS.
THE WHOLE IDEA TO ME -- TO ME I THINK THAT WE COULD BUILD A VERY NICE BOND CAMPAIGN ABOUT GIVING -- COULD HAVE TAKEN.
[04:50:09]
>> OUR SUPPORT OF THE ECONOMY [INAUDIBLE] WE ARE ALSO INCREASING THE PROGRAMS FOR SKILLED WORKERS IN CRITICAL FIELDS AND THIS YEAR WE ARE PUTTING TOGETHER A COMMITTEE.
I THINK THE COMMITTEE IS ALREADY IN PLACE.
DOCTOR LONDON IS CHAIRING IT FOR THE PROGRAM FOR EARLY CHILDHOOD EDUCATION.
THEN SUPPORTING DALLAS PROMISE.
WHAT DOES THIS MEAN FOR THE STUDENTS? WE HAVE AN INCREASE OF $18 MILLION TO AUXILIARY THEN WE ARE DOING INITIATIVES FOR STUDENT SUCCESS AND AFFORDABILITY, THE $19.3 MILLION IN TUITION WAIVERS AND SCHOLARSHIPS.
WE TALKED ABOUT THE ADDITIONAL SUPPORT FOR EARLY COLLEGE HIGH SCHOOL, INVESTMENT OF $2.5 MILLION FOR THE GUIDED PATHWAYS AND THE ADVISERS.
WE ARE CONTINUING OUR EFFORTS TOWARDS REMOVING STUDENT BARRIERS WITH THE DART PROGRAM AND THEN THIS YEAR WE ARE DOING ANOTHER PILOT OF DIGITAL LEARNING MATERIALS.
WE IMPROVED MOBILE CONNECTIVITY FOR THE STUDENTS THROUGHOUT THE DISTRICT.
SO OUR EFFICIENCEFFICIENCIES, T RITTER YOU ASKED ABOUT THIS.
WE TALKED ABOUT THE E PROCUREMENT SYSTEM.
I BELIEVE THAT'S COMING TO YOU-ALL TODAY FOR APPROVAL.
>> JUST EFFICIENCIES, IS THAT COST SAVINGS?
>> WELL, NOT NECESSARILY COST SAVINGS.
WE DO SEE SOME SAVINGS IN SOME OF THESE AREAS LIKE HE SUSTAINABILITY.
WE HAVE DECREASED UTILITY COSTS.
THESE REALLY MORE ARE JUST EFFICIENCIES WHERE EITHER IT'S EMPLOYEE WORKLOAD OR WE WERE TAL TALKING ABOUT THE PATHWAYS FOR THE STUDENTS, MAKING THINGS EASIER FOR THEM TO GET AROUND AND NAVIGATE WHAT WE HAVE DOING ON IN THE DISTRICT TO GET THE SERVICES THAT THEY NEED.
>> LOSING PR PEOPLE IN THE PROCESS.
AGAIN, IMPROVING THE QUALITY OF PUBLIC SAFETY BY REDUCING BOTH REDU REDUNDANTCY AND THE PROCESS.
IT'S CUMBERSOME, COSTLY AND [INAUDIBLE]
>> AND IT CAN BE A COST SAVINGS TOO BECAUSE SOMETIMES IT HAS BEEN TIME CONSUMING THAT WE LOSE OUT ON SOME OF THE COSTS, THE PRICE ESCALATES BY THE TIME WE GO BACK TO FINALIZE OME OF THOSE THINGS.
>> SUSTAINABILITY IS WHERE WE AWARDED THAT BY ALLOWING THE MONEY BACK INTO THE INSTITUTION THAT CREATED THE SAVINGS SO THEY COULD DO MORE FOR COST SAVING AND EFFICIENCY.
>> I DON'T KNOW EXACTLY HOW [INAUDIBLE] WE CONSIDER THOSE INCREMENTAL RESOURCES TO PUT INTO PROGRAMS OR EXEMPTIONS R WHATEVER.
EFFICIENCIES COULD BE DOLLARIZED TOO.
I BELIEVE THAT THIS A WELL RUN OPERATION AND YOU'RE MAKING GOOD BUSINESS DECISIONS AND YOU'RE FINDING EFFICIENCIES.
YOU ARE REALLOCATING RESOURCES IN WAYS TO SUPPORT THE MISSION.
>> WE ARE DOING THESE THINGS BUT WE ARE RECORDING THAT.
>> SOMETIMES THAT'S OUT OF THE BAG.
>> THEY GET THAT BUT IT'S KEEPING THE DOLLARS TOGETHER.
>> IT'S NEVER GENERALLY A CLEAN CUT EITHER.
YOU KNOW, IF HERE'S -- YOU DO IT BUT THERE'S SOME TRANSITION AND IT ALWAYS SEEMS LIKE IT GETS LOST.
>> I MEAN, LOOK AT THE SLIDE -- LOOK AT THIS SLIDE HERE.
THEY ARE [INAUDIBLE] THEY ARE PRIMARILY INVESTMENTS TO REDUCE ENERGY COSTS.
[04:55:04]
THERE'S DOLLAR VALUES ATTACHED TO THESE THINGS. IT'S NOT SO MUCH THAT WE KNOW EVERY PENNY OR NICKEL BUT WE HAVE TO GO AGAINST TOUGH STORIES.WE HAVE TO ILLUSTRATE HOW WELL THIS PLACE IS RUN.
START TALKING ABOUT THE REAL NUMBERS.
COLLEGE ALLOCATION HAS INCREASED ABOUT $17 MILLION OVER FY18.
WE HAVE WHAT WE CALL THE ENROLLMENT-DRIVEN ALLOCATION WHICH IS THE COLLEGE PROJECTIONS THAT IS THEIR REVENUE OF $9.7 MILLION THERE.
WE INVESTED AN ADDITIONAL $2.3 MILLION FOR OUTCOME-BASE FUNDING.
THEN WHAT WE CONSIDER TO BE THE BOARD PRIORITIES OR DISTRICT INITIATIVES THAT WE INVEST AND THAT'S $5.
THE OUTCOME-BASED UNDING UPDATE, THIS SLIDE BASICALLY JUST SHOWS A THREE-YEAR GROWTH RATE THAT WE HAVE IN THESE METRICS.
THESE WERE THE SIX METRICS AND LAST YEAR WE BROUGHT YOU A DETAILED PRESENTATION ABOUT WHAT WE WERE DOING AND HOW THAT WAS BECOMING A PORTION OF THE COLLEGE ALLOCATION.
DEVELOPMENTAL EDUCATION, ALMOST 13%.
WHAT ARE YOU MOST HAPPY WITH? WHERE DO YOU THINK THAT WE NEED TO FOCUS MORE? Y
>> YOU KNOW, FROM MY PERSPECTIVE I CARE ABOUT THINGS A LOT.
I CARE ABOUT THE GAINFUL EMPLOYMENT PIECE, ARE WE GETTING STUDENTS TO GRADUATE WITH MAKING LIVING WANTINGS AND -- LIVING WAGES AND JOBS IN OUR COMMUNITY? IS THERE PROGRAM ALIGNMENT? THESE ARE SOME -- A LOT OF THING THAT IS GO INTO IT.
I WOULD PUT NEXT UP THERE IS THE TOTAL OF DEGREES AND CERTIFICATES.
YOU KNOW, WE DON'T SEE THAT ALIGNING YET, GROWING AT THE PACE THE JOBS ARE GROWING IN OUR COMMUNITY AS WE SEE.
WE KNOW THAT NOW 65% OF THE JOBS -- THAT ONE IS RELATED TO THE EMPLOYMENT PECE.
IF WE HAVE THOSE ALIGNED WE WILL SEE THAT GOING FORWARD.
THE TRANSFER THE PROBABLY DOING WHAT WE ARE SHOWING ON THIS LIST.
THE REASON BEING, THE COORDINATING BOARD ACTUALLY DOESN'T COUNT AS A SUCCESSFUL TRANSFER, AN EARLY COLLEGE HIGH SCHOOL STUDENT WHO GETS THE ASSOCIATE'S AGREE AND GOES TO A FOUR-YEAR COLLEGE.
THAT OCCURS AFTER WE GET THE DEGREE BEFORE THEY GRADUATE.
AT THAT POINT THEY DON'T COUNT ON OURS AS A TRANSFER.
THAT'S PROBABLY SEVERAL THOUSAND BETTER THAN INDICATING THERE AS WE LOOK AT IT.
COURSE COMPLETION IS JUST INTERNALLY A CONCERN.
AS WE LOOK AT THAT NOT THAT IN AND OF ITSELF IT TELLS US A COMPLETE STORY, LIKE COMPLETION OR GAINFUL EMPLOYMENT BUT IT'S AN EARLY INDICATOR OF A PROBLEM WITH AN INDIVIDUAL.
IF THEY DON'T FINISH THE FIRST COURSE THEY ENROLL WHAT DO YOU THINK THE ODDS OF THEM EVER GETTING A CERTIFICATE OR DEGREE OR JOB? IT'S ZERO.
THEN THE YEAR OVER YEAR RETENTION ALSO IS RELATED TO THE OTHER TWO.
I WOULD CALL THESE -- AS WE GET DOWN THESE LAST THREE ON HERE ARE REALLY MILESTONE PERFORMANCE INDICATORS.
IN OTHER WORDS, THEY LEAD TO THE UPPER THREE BUT YOU -- WHAT REALLY MATTERS ARE THOSE THREE AT THE TOP OF IT.
ALONG THE WAY WE WANT TO LOOK AT TO SEE IF IN FACT WE APPEAR TO BE DIRECTIONAL CORRECT IN TERMS OF WHAT WE ARE DOING.
>> AGAIN, THESE ARE POINTS -- OUR WEIGHTED POINT SYSTEM THAT WE USE.
$51,000 IS NOT THE TOTAL NUMBER OF DEGREES AND CERTIFICATES.
THIS IS NOT THE WEIGHTED POINTS.
WE GET BONUS POINTS OR WHAT WE CALL INCENTIVE POINTS FOR SPECIAL POPULATIONS AND CERTAIN HIGH DEMAND DEGREES.
SO THAT'S WHAT YOU'RE LOOKING AT HERE.
SO THESE POINTS WENT UP SO THEIR TOTAL FUNDING THIS YEAR WENT UP.
THAT'S WHY YOU ARE SEEING A $2.4 MILLION INCREASE IN THEIR ABSOLUTE DOLLARS.
[05:00:01]
YOU COULD HAVE THE SAME NUMBER IN CERTIFICATES BUT IF YOU -- ONE YEAR TO THE NEXT UT IF YOU HAVE AN IMPROVEMENT IN A POPULATION IN THOSE NUMBERS OF DEGREES THAT WOULD GET YOU MORE POINTS IN OUR SYSTEM.SO WE'VE -- REMEMBER, WE WENT THROUGH ALL OF THIS, YOU KNOW, WHEN WE WERE DOING THE OUT COME BASED FUNDING.
ALL WE ARE DOING IS SHOWING YOU THE POINTS WENT UP.
DON'T SE THESE NUMBERS OR PUBLISH THESE FOR DEGREES. THIS IS OUR MECHANISM FOR AWARDING THE DOLLARS.
THAT'S THE TOTAL NUMBER OF POINTS THAT WE HAVE.
>> UNFORTUNATELY THAT'S NOT THE CASE.
>> WE NEEDED TO STAY ON SOMETHING AND NOT [INAUDIBLE].
>> ON SLIDE 12 WHERE YOU ARE SHOWING THE INCREASE IN COLLEGE ALLOCATION, DOES IT COME [INAUDIBLE]?
>> OH, THAT WOULD HAVE BEEN A SLIDE PREVIOUS.
HOW MUCH OF THIS ACTUALLY COMES FROM THE INCREASE [INAUDIBLE].
>> DO YOU WANT ME TO GUESS OR DO YOU WANT TO GUESS.
>> SOME OF THAT IS A PAST GROUP.
>> WE TOLD THE COLLEGES WHEN WE STARTED THIS OUTCOME BASED FUNDING WE DID NOT INCREASE THE TOTAL PERCENT OF HE BUDGET AS WE ARE TRYING TO MOVE TO BECAUSE WE ARE IN THE SECOND HALF.
THEY INCREASE THEIR POINTS IN TOTAL.
WE TOLD THEM THEY WOULD GET AN INCREASE IN THEIR BUDGET ALLOCATION FOR THIS OUTCOME THAT'S WHAT THIS YEAR SHOWS.
>> AND WHEN THEY ARE GETTING THOSE DOLLARS?
>> IF WEWE PASS IT AUGUST 8TH ACTUALLY START TO WORK ON IT.
Y'ALL DIDN'T ASK US TO MOVE IT UP.
IT IS SUCH AN OPERATION -- Y'ALL WANT TO PASS THE BUDGET TODAY? OH, IT'S NOT ON THE AGENDA.
>> I DO WANT TO TALK ABOUT THE OUT COME BASED FUNDING.
EARLIER YOU PUT UP A NUMBER FROM THE STATE.
I THINK IT WAS 8.7 MILLION THAT WE RECEIVED.
>> THE STATE AMOUNT WE GET IS THE SAME AS THE PRIOR YEAR.
>> BUT OF THAT -- OH, THAT'S 87 MILLION.
SO ABOUT $7 MILLION OR $8 MILLION OF THAT IS THE PERFORMANCE FUNDING?
>> YEAH, BUT LET ME FINISH MY POINT.
THE POINT ON THAT IS THE STATE ONLY DOES A VERY SMALL PERCENT.
WE ARE OING ABOUT OVER 10% OF OUR BUDGET.
>> [INAUDIBLE] IT'S MORE LIKE 20%.
>> E TALKED ABOUT ICREASING THAT.
>> IF YOU LOOK AT ONLY THE COLLEGE BUDGET THAT'S ONLY 10%.
>> SO MOVING IN THE DIRECTION OF INCREASE -- THE LOCAL RESOURCES WE DISCUSSED LAST -- THEY ARE INCREASING OVER TIME, OVER A BUDGET CYCLE THE AMOUNT OF [INAUDIBLE].
WELL, WE ARE INCREASING HERE IN REALTIME.
>> AAIN, IT HAS TO COME FROM SOMEWHERE.
SO WHETHER WE INCREASE THAT AMOUNT WHAT WE DECIDED TO DO IS HAVE IT FOLLOW PROBABLY ON A TWO-YEAR BASIS IN THAT WE WOULD ACTUALLY LOOK AT INCREASING THAT PERCENTAGE OUT COME BASED FUNDING AS A TOTAL ON AN EVERY OTHER YEAR BASIS COMBAUZ -- BECAUSE IT FOLLOWS THE TATE CHAIN.
THAT'S AN ELECTION WE MADE JUST LOOKING T IT.
IT WAS COLLEGES TO GO TO FAST.
>> LET ME EXPAND ON THAT A LITTLE BIT TOO.
[05:05:01]
BROKEN UP INTO THESE THREE SECTIONS.SO WHILE WE MAY HAVE INCREASED THE OUT COMES BASED FUNDING AS A PERCENTAGE IT MAY NOT HAVE TURNED OUT TO BE EXACTLY LIKE THE 15 OR 16% BECAUSE THE OTHER ALLOCATION ALSO INCLUDES PRIOR YEAR SALARY ADJUSTMENTS.
IT BUMPS THAT NUMBER UP. WHEN YOU LOOK AT THE TOTAL -- IF YOU TOOK ALL THE REST OF THAT OUT THEN, YES, YOU WOULD PROBABLY SEE THE OUT COME BASED FUNDING.
WHEN YOU LOOK AT IT AS A WHOLE -- AGAIN, WE HAVE OTHER ALLOCATION THAT'S $72 ILLION OF THEIR BUDGET AND THAT'S THE DISTRICT THINGS THAT WE ARE FUNDING.
SO IT MAKES THAT NUMBER LOOK A LITTLE DISPROPORTIONATE.
WHEN WE PUT THIS IN PLACE, THE DOLLAR AMOUNT LAST YEAR, AT THE DOLLAR VALUE PER POINT, WE HAVE TO KEEP IT STATIC AND NOT JUST ADD MONEY TO THE BUCKET FOR THE SAKE OF ACTING TO THE BUCKET TO PASS IT OUT.
WE NEVER WOULD REALIZE WHERE THEIR PERFORMANCE WAS.
THEY WERE PAID THE SAME POINT PER POINT LAST YEAR AND THIS YEAR SO WE COULD REALLY SEE HOW MUCH THEY INCREASED OR DECREASED, YOU KNOW, ON THIS.
>> I WANT TO MAYBE COMMENT ON THE REVENUE. THAT'S TO THE COLLEGES.
THAT DOESN'T NECESSARILY MEAN THAT WE GOT ALL THAT REVENUE.
SOME OF THAT WOULD COME ALSO FROM TAX DOLLARS BECAUSE WE ARE PUTTING THAT THROUGH.
>> BECAUSE THAT'S HOW WE MAKE THE COLLEGES WHOLESOME, THE SCHOLARSHIP.
SO WHEN WE TALK ABOUT THAT BEING AN INCREASE, THAT'S A BIG PLACE WHERE THE [INAUDIBLE].
THAT DOES NOT ACTUALLY [INAUDIBLE] INCREASES.
>> IT'S FUNDING LIKE HEAD COUNT AND ENROLLMENT AND THOSE TYPES OF THINGS.
>> I WOULD LIKE TO BRING THAT BACK AND SHOW YOU.
I WAS THINKING THAT WE WERE --
>> WE SAID ULTIMATELY WE WOULD LIKE TO BE MORE AROUND 25% OF 3 THE TOTAL BUDGET AND OUTCOME BASED FUNDING.
WE WERE TALKING ABOUT A TIME PERIOD TO GET TO THAT I THINK QUITE RANKLY ENDED UP BEING TOO AGGRESSIVE WHERE WE NEED TODAY GO.
>> WE GOT TO 25% BECAUSE THE POINTS WENT CRAZY. THAT'S A DIFFERENT STORY.
WHEN YOU HAVE TO MEET THOSE GOALS I THINK THERE'S AN IMPORTANT ART OF TIMING OF THAT.
YOU THINK THAT IT IS AN IMPORTANT THING TO COVER.
>> OR FIND AS OUR OUT COME BASED FUNDING.
>> IT'S HIGHLY CORRELATED TO THAT.
[INAUDIBLE] THAT'S PRETTY IMPORTANT.
>> WE DON'T DO THE THREE-YEAR AVERAGE LIKE THE STATE, WE DO 3 INCENTIVE POINTS WHICH THE STATE DOESN'T REALLY HAVE.
THEY KIND OF TO IN SOME CASES.
WE ARE TRYING TO FOCUS OUR OUT COME BASED ON WHAT WE ARE TRYING TO DO HERE IN DALLAS.
>> TO SOME EXTENT, IT'S A ZERO SUM GAME BUT WE DON'T REALLY DO IT THAT WAY.
THEY HAVE A POT OF MONEY AND IT'S ZERO.
THEY ARE GOING TO ALLOCATE EVERY PENNY OF THAT.
SO SOMEBODY -- WHAT WE HAVE DONE [INAUDIBLE] SEE, OTHER COLLEGES
[05:10:01]
WHAT THEY EARNED UNDER THE ULES THAT WERE THERE SO IN THIS CASE WE ARE INCREASING THE BUDGET TO ACCOMMODATE THAT.THAT MAY -- WE MAY WANT TO DO THAT DIFFERENTLY.
>> ONCE YOU SHOW US [INAUDIBLE] QUESTION THEN THE RECOMMENDATION IS TO INCREASE 25% OF [INAUDIBLE].
>> I THINK WE CAN -- I HAVEN'T SEEN THIS YET, JOHN, SO YOU MAY HAVE DONE IT.
WHAT WE WANT TO DO IS MAKE SURE THAT THE COLLEGES ARE IN A POSITION TO MANAGE.
IF WE DO TOO MUCH AT ANY ONE TIME THEY MAY TAKE A HIT ON THE BUDGET THAT RANKLY WOULD GIVE THEM ANOTHER -- THAT'S KIND OF THE BALANCE.
WE DON'T WANT IT TO BE [INAUDIBLE] WE WANT IT TO BE [INAUDIBLE].
>> I -- WHAT I NDERSTOOD [INAUDIBLE].
I'M THINKING ABOUT THE SAME THING THAT IS PERTAIN TO THEM.
I DON'T THINK JUST LUMPING ALL THIS STUFF UP UNDER HE SERVICES GIVES A TRUE PORTRAYAL BETWEEN THE TWO.
SO I WAS WONDERING IF WE COULD EXPLORE MAYBE [INAUDIBLE].
>> YEAH, I THINK THAT THE IDEA THERE IS THAT --
>> YOU KNOW, I THINK MOST PEOPLE WHEN THEY SEE BOARD SERVICES ARE WONDERING, WELL, IS OUR BOARD --
>> I DON'T THINK THAT IT TELLS A TRUE PICTURE.
>> I THINK THE NTENT IS CARRYING OUT THE WISHES OF THE BOARD.
WE ARE TALKING ABOUT THIS WEEK, A COUPLE OF DAYS, DIRECTIONALLY ARE WE RIGHT, ARE WE FOCUS ON THE RIGHT THINGS, BEING ENFORCEMENT, ACCOUNTABLE AND SPENDING THE DOLLARS IN THE RIGHT WAY? EVERYTHING HERE IS DRIVEN BY THE BOARD AND OPERATIONAL SIDE DELIVERS THE SERVICES.
I SEE WHERE YOU'RE COMING FROM.
>> SO WHAT'S IN THAT -- WE HAVE $47 MILLION FOR BOARD SERVICES.
>> CHANCELLOR IN ALL THE REPORT, IN ALL THE ORGANIZATIONS --
>> OPERATIONS DISTRICT SERVICE CENTER.
>> YOU'RE RIGHT, IT EVEN GETTING INTO SOME OPERATIONS SUCH AS THE CURRICULUM MANAGEMENT, E -- EVALUATIONS.
>> THERE'S PROBABLY MORE IN THERE.
I SIGH THOSE THINGS AS NOT THE BOARD.
>> I CAN WORK FOR $47 MILLION.
>> WELL, WE NEED A [INAUDIBLE]
>> EVERYBODY WANT TO RUN TO THIS JOB WOULDN'T THEY?
>> THEY WOULD SAY ET THE BOARD OUT.
>> I JUST DON'T THINK THAT THAT'S A TRUE DEFINITION OF PORTRAYAL OF THAT TITLE TO DIFFERENTIATE ABOUT THE COST OF HAVING A BOARD VERSES THINGS THAT DIRECTLY BENEFIT THE DISTRICT.
>> SOME OF THE PRESENTATIONS THAT WE SAW EARLIER, I WAS LOOKING AT THEM, AND IT SAID DISTRICT EXPENSE, DISTRICT THIS AND DISTRICT THAT.
YOU WONDER WHETHER THIS -- SHOULD WE CALL THESE NETWORK EXPENSES? THEY ARE NOT -- THEY ARE TO SUPPORT THE POWER OF THE SYSTEM BUT THEY ARE CNTRALIZED.
WE MIGHT JUST WANT TO THINK ABOUT SOME OF THE BUDGET NOMENCLATURE.
[05:15:01]
SHARED SERVICES AND SOME OF THAT.SOME OF THE BOARD IS ALL ABOUT GOVERNANCE.
THE BOARD OPERATIONS ARE A SMALL PIECE OF THAT. IT'S ALMOST NOT WORTH BREAKING IT OUT.
WE'LL CALL IT CENTRAL SERVICES, SHARED SERVICES, SOMETHING ELSE.
>> SORRY, WE GOT OFF TRACK A LITTLE BIT.
SO HERE WE JUST HAVE A HIGH LEVEL SUMMARY OF THE THREE MAJOR UNITS.
YOU CAN SEE HERE WHERE WE A $34 MILLION INCREASE THAT WE HAVE, HOW THAT'S BROKEN OUT.
WE'VE KIND OF TOUCHED ON THEM.
WE TALK ABOUT THE INCREASE IN THE COLLEGE ALLOCATION FOR OUTCOMES BASED FUNDING, THE WAIVERS AND SCHOLARSHIPS, OUR INVESTMENT IN NEW TECHNOLOGY THROUGHOUT THE DISTRICT.
WE ARE IMPLEMENTING A CYBER SECURITY UNIT WHICH I THINK YOU ALL HAVE BEEN BRIEFED ON.
THE PILOT PROGRAM FOR FALLETTE FOR TEXTBOOKS TO STUDENTS AS WELL AS ADDITIONAL -- AS WELL AS AN ADDITIONAL SUPPORT FOR GUIDED PATHWAYS AND STUDENT SUCCESS.
>> WHAT IS THE [INAUDIBLE]? I'M THINKING [INAUDIBLE].
IF YOU LOOK AT SLIDE 14, THE PRIORITIES, THIS NEXT SLIDE HERE IS JUST THE SUMMARY OF WHAT IS IN THAT 10.5 MILLION.
OUR INVESTMENT TO PROGRAMS, THE $1 MILLION FOR JOB PROFILE, WHICH IS THE MARKET ADJUSTMENTS AND SO ON.
$500,000 FOR THERE IS PROMISE AND THE $2.5 MILLION FOR THE PROGRAM TRANSITION.
>> SO WHERE DOES THAT -- THAT'S THE [INAUDIBLE] STUFF?
>> SO WHAT IS THE $2.5 MILLION? WHAT ARE WE OING TO BE DOING THIS YEAR WITH THAT MONEY?
>> WE HAVE GOT THAT MAPPED OUT.
THEY HELPED US TO PULL TOGETHER THE OVER ALL PLAN AND THE TIMELINE ON THAT.
SO THAT'S GETTING READY FOR THAT.
THERE WILL BE SOME POLICY IMPLICATIONS THAT WE GET INTO AND SO FORTH.
>> JOHN, DID YOU SAY THAT WAS LIKE A MAXIMUM THAT WE ARE ALLOWED TO INVEST IN THAT?
>> WE ARE GOING TO HAVE DETAILS AS WE BRING IT FORWARD.
WE ARE WORKING ON THAT RIGHT NOW.
AT LEAST WHERE ARE WE GOING TO BE SPENDING THAT MONEY AND HOW MUCH IS PERSONNEL, HOW MUCH IS ACC ACC ACCREDITATION.
>> I LIKE THE WAY YOU BROKE -- I MEAN, SLIDE 15, THE PRIORITIES LINE ON SLIDE 14, CAN YOU DO THAT -- YOU KNOW, THE BIG COST ITEMS ARE OPERATIONS ND SERVICE AND BOARD SERVICE.
CAN YOU GIVE US A LITTLE BIT OF A BREAK UP OF THAT?
I MEAN, THERE'S -- THERE'S $32 MILLION IN ADDITIONAL COSTS.
SO IF YOU WANT TO PULL OUT YOUR HAND OUT FROM EARLIER, WE CAN JUMP AHEAD TO THAT REAL QUICK AND THAT WILL HELP YOU.
>> [INAUDIBLE] THAT'S WHERE THE DOLLARS ARE.
>> SO OVER ALL WE HAVE THE $18 MILLION IN THE PLANNED PUBLIC SAFETY, EARLY COLLEGE HIGH SCHOOL, PROGRAM DEVELOPMENT, DALLAS PROMISE AND OUR CAPITAL IMPROVEMENT AND STRATEGIC EDUCATIONAL PLANNING CONSULTANTS. THESE WERE THE THINGS THAT WE TALKED ABOUT EARLIER TODAY IN THE PRESENTATION THAT JOHN GOT TO HAVE SOME CONSULTANTS COME IN AND HELP US WITH SOME OF THOSE ADVISORY SERVICES.
SO THOSE ARE LIKE THE IG U -- ITEMS THAT WE ARE LOOKING AT.
>> WE ARE TALKING ABOUT GETTING SOMEBODY TO HELP US WITH TAX CREDITS.
[05:20:02]
THINGS LIKE THAT.I'M REALLY GUESSING IN THE DARK BECAUSE WE'VE NEVER DONE THIS.
QUITE FRANKLY, THE TAX CREDITS ARE PROBABLY NOT GOING TO COST US ANYTHING.
THE DEVELOPMENT ADVISORY FOR THE P3S, THE EDUCATIONAL PLAN AND THEN WHAT IS ALSO INCLUDE IN THAT IS THE PHASE THREE AND THE PHASE FOUR FROM THE COLLIERS PLAN.
I'M NOT SURE THAT WE ARE GOING TODAY -- I THINK THAT WE HAVE A HIGH AMOUNT ESTIMATED IN AS THOSE BUT BY HAVEN'T DONE THAT.
THE FACILITY EDUCATION, WE HAD COLLEGES DO GOOD FACILITY INDEX.
IT'S HARD TO DO IT AS FAR AS MAINTENANCE AND DETERMINE WHICH BUILDING [INAUDIBLE].
ONE OF THE THINGS I THINK Y'ALL ARE GOING TO VISIT IN -- WE ARE TRYING TO SET UP WHEN YOU GO TO NEW YORK IS TO LOOK AT THIS CAMPUS GTEWAY, WHICH IS HOW ARE PEOPLE DOING MIXED USE DEVELOPMENT AROUND THE COLLEGE WHERE WE TALKED ABOUT SOME OF THE PRESENTATIONS WE'VE DONE ABOUT IT LIKE IN EAST FIELD, THE FRONT DOORS.
ONE OF THE THINGS TO DO THAT, IT'S A LITTLE BIT -- WE NEED SOMEBODY TO LOOK AT A COUPLE OF OUR LOCATIONS TO -- IT'S PROBABLY AN URBAN PLANNER TO FIGURE OUT WHAT WOULD WE DO THERE SO WE COULD GIVE YOU AN IDEA.
REAL HIGH LEVEL SKETCH OF WHAT ONE MIGHT BE.
SO ABOUT 70% OF OUR BUDGET IS PERSONNEL.
SO WE'VE GIVEN YOU A SCHEDULE HERE TO SHOW OUR PLAN FOR FY19.
SO WE ARE ROUGHLY A FULL TIME STAFF FACULTY AND ADMINISTRATORS ABOUT 3700 ON A HEAD COUNT.
>> IF WE WERE TO GO THIS YEAR TO THE CONTACT HOUR --
>> THAT'S SOMETHING -- SOME OF THE OTHER THINGS THAT WOULD BE -- WHILE WE COULD --
>> THIS IS WHEN WE WOULD ROLL THAT OUT.
SO THESE ESTIMATES WERE JUST BUSINESS AS USUAL.
NOT FACTORING IN ANY TO HAVE THE RECOMMENDATIONS FROM MONDAY.
>> DOCTOR MAY, I THINK THAT WE CAN GO THROUGH OUR PLAN OF WHAT WE WANTED TO DO FOR 19 BUT SOMETHING LIKE CONTACT HOUR BASIS WE HAVE TO WAIT UNTIL FY20 TO GO INTO EFFECT. MAYBE THE SPRING BUT USUALLY -- THERE MIGHT BE A REASON TO DO IT IN THE SPRING BUT USUALLY SO WE CAN MEASURE WHAT HAPPENED FROM ONE FISCAL YEAR TO THE NEXT.
I THINK WE WOULD TRY TO DO IT ON A FISCAL YEAR BASIS.
>> I REALIZE THERE'S NOT A REAL WINNING TIME TO DO IT.
>> WE'VE ALREADY GOT FACULTY CONTRACTS GOING.
>> A LOT OF THIS IS JUST RECLASSIFICATIONS OF CERTAIN POSITIONS BUT WE ARE JUST NOT REPLACING SOME OF --
>> I WAS -- ON THE RETIREMENTS YOU'RE NOT GOING TO [INAUDIBLE].
>> WE DIDN'T FIRE A BUNCH OF PEOPLE.
>> WE CLASSIFIED SOME ADMINISTRATORS TO STAFF.
YOU'LL SEE THAT ALSO REFLESCTED IN THE NUMBERS HERE.
>> WE HAVE A THREE TO ONE RATIO OF FACULTY, DOES THAT [INAUDIBLE]?
>> IS THAT -- THAT SEEPS VERY HIGH. -- THAT SEEMS VERY HIGH.
I'LL PULL YOU SOME TRANSFORMATION TO TRACK THAT.
WE SAID BEFORE WE MIGHT BE ON THE LOWER SIDE OF THE NUMBER OF FACULTY WE HAVE BUT IN THE LARGE MAGNITUDE NUMBERS WHEN I FIRST STARTED TO HIGHER ED I HEARD THE OLD-TIMERS TALK, E DON'T NEED YOUR ADMINISTRATORS WE USED TO RUN THIS WHOLE COLLEGE WITH ONE DEAN AND A BUNCH OF FACULTY.
DIDN'T HAVE THE DEPARTMENT OF ED, DIDN'T HAVE THE COORDINATING BOARD, ALL THESE AGENCIES THAT RAN AROUND AND TOLD US HOW THE RUN THE SCHOOL.
I'M GETTING ON MY SOAP BOX AGAIN.
IT'S SAD THAT WE DON'T RUN THIS INSTITUTION WITH A DEAN AND A BUNCH OF FACULTY.
[05:25:03]
SOUND REASONABLE, 8.5% FOR THIS GROUP?>> I DON'T KNOW ABOUT THE PERCENTAGE PORTION. AS FAR AS THE HARD DOLLARS WOULD GO, THAT'S ENCOMPASSING THE APPROVED COMPENSATION INCREASES AND JOB MARKET EVALUATIONS, SCHEDULE ADJUSTMENTS THAT WENT INTO PLACE LAST YEAR AND THEN ALSO AN ANTICIPATED PROPOSAL FOR COMPENSATION INCREASES, 3% FOR FY19.
>> IF WE -- WELL, WE ARE MOVING FORWARD WITH ONSIDERATION OF THE RECOMMENDATIONS FROM YESTERDAY AND, YOU KNOW, KEY ONE WAS BEING THE HIGHER UTILIZATION OF FULL TIME FACULTY AND FEWER ADJUNCTS AND PART TIME.
CAN YOU BREAK THOSE OUT IN THE FUTURE? WE NEED TO TRACK THEM YEAR TO YEAR TO YEAR TO SEE IF WE ARE PROGRESSING ON THAT.
>> YEAH, THAT WOULD BE A SEPARATE LINE FOR THE ADJUNCT.
>> I MEAN, THAT 915 FOR FY19 THAT'S FULL TIME AND ADJUNCT.
>> NO, THAT'S JUST FULL TILE -- TIME.
>> NO, IT'S WELL OVER NORTH OF 3,000 ADJUNCTS.
>> THEY ARE NOT IN THAT 3772 NUMBER?
>> NO, NOORT -- NEITHER IS OUR PART TIME STAFF.
>> THIS IS REALLY JUST SHOWING WHAT YOU YOU PROVE AS AN FTE IN THE BUDGET.
>> THIS BOOK YOU GAVE US IS THE DETAIL THAT BACKS UP THESE NUMBERS?
>> FY19 COMPENSATION PROPOSAL WOULD BE $8.5 MILLION OR AN AVERAGE OF 3% INCREASE.
>> THAT SEEMS TO BE THE BENCHMARK THAT IS GOING ON AS WE LOOK AT ALL OF OUR NEIGHBORS.
>> THEY DIDN'T GET A RAISE UNTIL THE LAST YEAR OR TWO.
THAT'S THE ONLY REASON WE SEE -- WE ARE SPOT ON WITH EVERYBODY ELSE. THAT'S WHAT I'VE SEEN SO FAR.
>> AND THEN ALSO YOU'LL SEE IN THE BUDGET BOOK THERE'S SOME DETAIL THERE ABOUT THE INCREASE FOR BENEFITS ALSO.
SO WE DO SEE ABOUT A HALF A PERCENT INCREASE IN THE INSURANCE PREMIUMS THAT STAFF WILL HAVE TO PAY.
>> ON THE I.T. SCHEDULE ADJUSTMENTS TO MARKET.
>> WHAT IS -- WHAT DOES THAT -- WHAT IS THAT?
>> SO WHEN TALENT CENTRAL UNDERTOOK THE EVALUATION FOR THE MARKET ADJUSTMENTS FOR EVERYONE ELSE I.T. WAS NOT INCLUDED IN THAT.
THIS YEAR THEY WILL BE INCLUDED IN THOSE MARKET ADJUSTMENTS TO BRING THOSE MINIMUM SALARIES.
THEIR SCALE WILL BE ADJUSTED TO BRING THEM TO WHATEVER THE MINIMUM ADJUSTMENTS ARE IN THE MARKET.
>> THEY JUST FINISHED IT I BELIEVE THIS LAST --
>> IT'S WRAPPING UP AND IT WILL HAPPEN AT THE END OF THE YEAR BUT THAT'S TO COVER WHAT THOSE INCREASES ARE GOING TO B.
>> ARE THOSE WO ITEMS TOGETHER, [INAUDIBLE] PAGE 15?
>> THAT IS THE 600 AND THE 400 THAT YOU HAVE THERE.
SO THE $7.5 MILLION IS LREADY ROLLED INTO THE OPERATING BUDGET AND THE $1 MILLION IS STILL LEFT IN THE PROVISION TO PUT ACROSS THE LINE ITEMS.
>> SO WHAT DO WE HAVE ON THE HORIZON? WE HAVE ON GOING OPERATIONAL COSTS THAT WE NEED TO BE PREPARED TO HANDLE FOR THE PROGRAM.
EARLY COLLEGE HIGH SCHOOL WE ARE TALKING ABOUT THE SCHOLARSHIPS THAT WE GIVE.
SO WE NEED TO BE ABLE TO SUSTAIN THOSE SCHOLARSHIPS AS WELL AS INCREASE THEM FOR THE ADDITIONAL STUDENTS.
WE NEED TO ADDRESS THE FACILITY NEEDS AND THEN ADDITIONAL PERHAPS FOR PTEC AND EARLY COLLEGE HIGH SCHOOL.
OUR CONCERN STILL EXISTS FOR PUBLIC SAFETY.
THE SUSTAINABILITY INITIATIVE THAT WE HAVE GOING ON WE ARE EXPECTING THAT TO CONTINUE.
TECHNOLOGY, OUR ERP SYSTEM IMPLEMENTATION AND PURCHASE AND IMPLEMENTATION AND THEN THE CYBER SECURITY WE JUST MENTIONED.
MAINTENANCE IS GOING TO BE A HUGE ISSUE FOR US GOING FORWARD WHEN WE START LOOKING AT AMOUNT, ESPECIALLY IF WE ARE TALKING ABOUT SOMEWHERE IN THE $20 MILLION RANGE AS WELL AS OUR DEBT SERVICE FOR REVENUE BOND SHOULD WE CHOOSE TO DO THAT.
>> THE CYBER SECURITY WE ARE DOING SOME THIS YEAR BECAUSE WE JUST HAD TO TAKE CARE OF THIS.
[05:30:10]
WE HAVE TO DO SOME MORE.WE'VE SEEN INCREASES IN THIS AREA WITH PHISHING ATTACKS.
WE HAVE BASICALLY TWO PEOPLE TRYING TO RUN --
>> HISPANIC -- I DON'T LIKE TALKING ABOUT IT IN OPEN FORUMS. WE'VE HAD ONE TECHNICAL STAFF MEMBER ASSIGNED TO THIS AND ONE MANAGERIAL STAFF MEMBER ASSIGNED TO IT WITH A POLICY AND PA PASSWORD, EXPIRATION DATE.
>> THEY PUT IN PLACE CERTAIN SPECIFIC SECURITY REQUIREMENTS.
THE INCREASE IN THE NUMBER OF ATTACKS HAS JUST JUMPED OFF THE MAP IN THE LAST THREE YEARS WITH REGARDS O ATTACKS NOT ONLY THROUGH E-MAIL AND PHISHING BUT THROUGH SPECIFIC.
ONCE ORGANIZATIONS KNOW THE SYSTEMS THAT YOU RUN THEY ALL HAVE VULNERABILITIES AND THE DARK WEB IS ALIVE WITH PEOPLE THAT WILL WRITE PROGRAMS THAT CONSISTENTLY ATTACK YOUR SYSTEMS, YOUR KNOWN SYSTEMS. QUALITY GETS ATTACKED ON A REGULAR BASIS, OUR E-MAIL SYSTEMS GET ATTED ATTACKED ON A REGULAR BASIS.
HALF OF THE JOB IS TO PUT UP THE FIREWALLS AND BARRIERS TO KEEP THE ATTACKS FROM HAPPENING AND THE OTHER IS TRAI TRACING DOWN E POINTS THAT GET BREACHED.
PEOPLE SAY CLICK HERE TO GET YOUR PAYROLL ACCOUNT INFORMATION UPDATED.
THEY CLICK ON IT AND THE THEN NEXT THING YOU KNOW BY CLICKING THAT CLICK THEY HAVE ACCESS TO OUR ENTIRE E-MAIL DIRECTORY 3 BECAUSE THIS IS AN ORGANIZATION THAT'S AN ORGANIZATION THAT HAS ORGANIZATIONAL E-MAIL.
IF YOU GET AHOLD OF MY E-MAIL ACCOUNT YOU HAVE ALL THE CONTACT INFORMATION IN MY E-MAIL DIRE DIRECTORY.
THEN THOSE ACTIVITIES ONE PERSON BECOMES 15 PEOPLE BECOMES 70 PEOPLE.
IF YOU DON'T STOP THAT ACTIVITY THERE'S PEOPLE DOING THAT WORK IN A 40 HOUR, 60 HOUR OR EVEN 80 HOUR WEEK.
WE NEED ALL THE EXTRAS THAT WE HAVE.
THE MOMENT STARTS WHEN YOU ARE TALKING AWAY FROM THE ENVIRONMENT THAT YOU'RE CREATING TO KEEP PEOPLE FROM COMING IN THROUGH THE BACK DOOR.
YOU ALWAYS HAVE TO MAKE ADJUSTMENT TO THAT.
THE MOMENT YOU DO FORENSICS YOU MIGHT LEAVE THOSE OTHER DOORS OPEN.
OUR CYBER SECURITY STAFF MEMBERS CAME TO US ABOUT SIX MONTHS AGO AND NOT ONLY PREDICTED THE ADDITIONAL ISSUES BUT SAID THESE ARE THE THINGS WE NO -- NEED TO MAKE OUR JOB EASIER.
ONE OF THEM IS A NUMBER OF SOFTWARE PACKAGES.
IT IS IN THE PLACE OF HAVING HUPS DO RESEARCH THROUGH LOGS AND DOING ARTIFICIAL INTELLIGENCE TO LACK THR-- LOOK THROUGH LOGS.
ANOTHER APPROACH IS A SPECIFIC THAT WILL HAVE SPECIFIC TECHNICAL ABILITIES THAT ARE GREAT NOT ONLY JUST MAYBE FOR THE OVER ALL GENERICS THAT WE HAVE RIGHT NOW UT SPECIALIZING IN THEIR SERVERS OR APPLICATIONS.
WE ARE SUCH A COMPLEX ORGANIZATION WITH OVER 15,000 POINTS OF ENTRY AND EXIT.
IT IS BOTH RECOGNIZED BY OUR AUDITORS WHO, YOU KNOW, ECHO IT BY SECURITY AGENCIES THAT YOU HAVE TO ADHERE TO CERTAIN SECURITY GUIDELINES. THIS IS FOR US TO KEEP UP WITH THAT.
IT'S AN ENTIRE STAFFING COMPONENT THAT WE HAVE NOT ANTICIPATED UP UNTIL THIS PAST SIX MONTHS.
HE'S ALLOWED US TO DO THIS ACTIVITY THIS YEAR IN PREPARATION FOR NEXT YEAR.
THE ATTACKS ACTUALLY AME FASTER THAN WE EXPECTED.
[05:35:03]
>> WE HAVE PHISHING SCAMS THIS YEAR THAT COST US $100,000 IN SECURITY.
WE PAID THE FIRST $100,000 TO FIND OUT WHOSE DATA HAD BEEN COMPROMISED AND HOW DO WE GET TO THE BOTTOM OF IT.
SO HAVING THE CAPABILITY WILL SAVE US BECAUSE WE WILL HAVE THOSE ATTACKS AND THAT WILL SAVE US ON THE BACKSIDE AS WELL.
WE HAVE INSURANCE BUT WE BEAR THE IRST $100,000.
>> REAL QUICK, DEFERRED MAINTENANCE REVENUE BOND DEBT SERVICE, TAX MAINTENANCE, ARE ANY OF THOSE CONTEMPLATED IN THIS UPCOMING --
>> WELL, LET ME ASK THE BOARD, I MEAN, WE GOT A PRESENTATION AND WE HAVE A LOT OF THINGS ON THE TABLE, WE HAVE A LOT OF THESE BUT WE ARE NOT -- YOU KNOW, THIS BUDGET DOESN'T COME VIA REVENUE BONDS OR TAX MAINTENANCE.
IS THERE SOME WILLINGNESS IN THE SPIRIT OF CREATING OPTIONS TO ENTERTAIN THOSE FUNDING MECHANISMS THIS UPCOMING BUDGET CYCLE GIVEN THE BACKLOG AND THE DEEDS AND THE I.T. AND STUFF LIKE THAT? OR DO WE WANT TO JUST KEEP THEM?
>> IT DOESN'T HURT TO LOOK AT OPTIONS AND WHAT THAT MEANS DOLLAR WISE.
THAT'S WHAT MY LAST PAGE HERE IS.
IT'S THE STUFF I SEE COMING DOWN THE PIPE THAT SCARES ME, THAT SAYS WE NEED TO MAKE SURE WE HAVE ENOUGH BUDGET DOLLARS A DAY TO MOVE FORWARD AND WHERE WE ARE GOING.
THE CYBER SECURITY IS NOT GOING DOWN. IT'S BECOMING A CROSS DRIVER THAT I HAD NOT SEEN.
WE HAD DONE SOME THINGS ON CYBER SECURITY BUT IT'S GOTTEN CRAZY.
I GET THOSE STUPID E-MAILS ALL THE TIME.
THE ONES I GET ARE REALLY GOOD.
THEY ARE ADDRESSED TO THE CFO.
WE'VE GOT TO DO SOMETHING FOR DEFERRED MINTENANCE.
WE AGREED THAT WHEN WE FINISH THE I.T. AND PUBLIC SAFETY PROJECT, ABOUT $125 MILLION GROWTH WE ARE TAKING $36 MILLION OUT OF THAT THAT WE WOULD ISSUE SOME FORM OF DEBT TO COVER THAT.
WE TALKED ABOUT REVENUE BONDS.
SO THAT'S THE ONLY THING WE'VE 3 GOT ON THE TBLE.
I'M NOT GOING TO ISSUE THEM NEXT YEAR.
THE BOARD MIGHT VOTE TO AUTHORIZE US TO DO THEM EVERY YEAR.
IT WON'T IMPACT THE OPERATING BUDGET NEXT YEAR.
WE WOULD WAIT UNTIL THE FOLLOWING YEAR.
>> AND IS THE CYBER SECURITY BUILT IN ENOUGH -- ENOUGH MONEY BUILT INTO THE OPERATING BUDGET TO COVER THIS YEAR?
>> THIS YEAR AND -- WE ARE DOING SOME THIS YEAR AND WE HAVE ENOUGH IN THERE FOR FY19.
WHAT COMES DOWN FOR FY20 AND BEYOND, I DON'T KNOW.
>> TECHNOLOGY AND TECHNOLOGY ISSUES, AND PROBABLY THE DEFERRED MAINTENANCE AT THIS POINT [INAUDIBLE] EFFECT OUR SCHOOLS AND THE EOPLE COMING IN AND OUT OF OUR BUILDINGS AND THEN TECHNOLOGY IF WE ARE OT OFFERING TECHNOLOGY AND OFFERING IT TO OUR STUDENTS THEN THAT'S ONE OF THE THINGS WHERE WE START LOSING STUDENTS AND THEY START LOOKING AT OTHER OPTIONS.
TO GET THE LATEST, MOST THINGS I THINK WE SHOULD HAVE DONE LONG AGO, A GOOD YEAR OR MORE ADDRESSED THOSE AND GOT THEM TAKEN CARE OF.
>> CREATE SOME OPTIONS FOR US ON THAT.
>> IT'S NOT -- I MEAN, I -- ONE OF THE LONG TERM ASSETS THAT [INAUDIBLE]
>> WE HAVE LOTS OF MAINTENANCE.
>> THAT'S WHAT WE DO ON THE I.T. SAFETY PROJECT, WE DON'T WANT TO BE PAYING DEBT OR THINGS THAT WE ARE NOT SPENDING MONEY ON.
WE'VE GOT THE ABILITY TO FUND THAT INTERNALLY.
AS I TOLD YOU WHEN WE DID THAT AND THE FUNDING MECHANISM FOR THAT IS I NEED TO ACTUALLY ISSUE REVENUE BONDS AT
[05:40:33]
>> TO PAY FOR THE I.T. IN PUBLIC SAFETY.
>> IF WE NEVER BUILD ANOTHER BUILDING, OR YOU KNOW EVEN DO A CAPITAL PROGRAM, WE -- THOSE ISSUES ADDRESS WHAT IS CURRENTLY IN PLACE AND OUR ABILITY TO SERVE THE COMMUNITY.
AND TO DO IT WITH HIGH QUALITY PROGRAMS. AND EFFICIENT WAYS AND SO FORTH.
IF WE DON'T DO ANYTHING ELSE THOSE WERE THE THREE AREAS I THOUGHT WE NEEDED TO ADDRESS.
IN MY HEAD, THOSE ARE THINGS THAT NEED TO BE DONE REGARDLESS, JUST TO KEEP US EVEN WITH THEM.
I AS GOING TO ASK ABOUT THE 10-MINUTE BREAK AGAIN.
I KNOW WE'RE DOWN TO THE LAST PAGE.
>> WE HAVE ONE MORE QUICK THING TO DO.
A PAGE BY PAGE DISCUSSION WILL NOT BE REALIZED.
>> WE TOOK LONG ENOUGH SO THAT'S NOT GOING TO HAPPEN.
>> THIS BUDGET BOOK BASICALLY IS THE DETAIL FOR THE PRESENTATION THAT WE JUST GAVE YOU.
WE HAVE THE FINANCIALS IN HERE, THE HEAD COUNT IS IN HERE.
THE COLLEGE ALLOCATION, THERE IS A BREAKDOWN FOR OUTCOME BASED FUNDING SO WE CAN SEE HOW EACH COLLEGE DID IF YOU ARE INTERESTED IN SEEING THAT AS OPPOSED TO THE ROLL UP WE GAVE YOU.
A COUPLE OF OF THE OTHER ITEMS IN THE SPECIAL ITEMS SECTION ARE THE INDIVIDUAL REQUESTS FOR THERE COLLEGE FOR WHAT THEIR LARGE NEEDS ARE AS WELL AS THE CONTRACTS AND REPETITIVE PURCHASES PIECE, ON THINGS WE SEE AS FAR AS PLANNING GOES, TRYING TO GIVE YOU THE DETAIL TO WHAT THINGS WE EXPECT WE'RE GOING TO DO THROUGHOUT THE NEXT YEAR.
AND THEN WE HAVE OUR PRICING AGREEMENTS, WHICH IS FROM THE PROCUREMENT SIDE OF THE HOUSE.
THE AMOUNTS THAT ARE LISTED IN THESE ITEMS ARE INCLUDED N THE OPERATING BUDGETS ALREADY.
THESE ARE NOT ADDITIONAL REQUESTS.
THE ONLY THING THAT WOULD BE SEPARATE, NOT INCLUDED BUT PART OF THE OVERALL BUDGET NUMBER IN THE FINANCIALS WOULD BE THE SPECIAL ITEMS, WHICH WOULD AS SOME OF YOU ALL REMEMBER, OUR USE OF FUND BALANCE.
BUT EVERYTHING ELSE, THESE NUMBERS ARE ALREADY INCLUDED IN THE OPERATING BUDGETS, THIS IS JUST THE DETAIL.
>> WHAT IS IN THE BACK HALF OF THE BOOK, ESPECIALLY, THIS IS THE AUTHORIZATION FROM THE BOARD TO ENTER INTO THESE CONTRACTS AND VENDORS ARE IDENTIFIED.
>> VENDORS AREN'T NECESSARILY IDENTIFIED.
IF THEY'RE A RENEWAL BUT THESE CASES WE'LL BE BIDDING THINGS WE DON'T KNOW THE BIDDER.
>> I THINK SOME OF THE CONTRACTS WHERE WE HAVE THE VENDORS IDENTIFIED.
>> BOARD WON'T MEET UNTIL AUGUST SO WHAT DO YOU NEED FROM US BETWEEN NOW AND THEN TO MOVE THE PROCESS FORWARD?
>> A REVIEW OF THIS AND QUESTIONS TO SEND THEM TO PEARLA SO WE CAN GET ANSWERS FOR YOU AND HAVE APPROVAL FOR THE AUGUST BOARD MEETING.
>> THE PLAN IS WE'LL BRING YOU A BUDGET TO APPROVE LIKE WE HAVE BEFORE IN AUGUST.
HOWEVER, WHAT I HEARD YOU TELL ME IS YOU WOULD LIKE TO SEE A COUPLE OF OPTIONS BUILT IN SO YOU CAN CHOOSE THE BUDGET AS PRESENTED, DO IT OPTION A. OR OPTION B.
I WILL KEEP IT TO WHERE WE CAN HAVE GOOD DISCUSSIONS TOGETHER.
OR MAKE IT SO YOU CAN TELL ME HOW TO ADJUST THE BUDGET.
BUT I WOULD LIKE THE BOARD TO APPROVE THE BUDGET IN AUGUST.
THAT WAS YOUR INITIATIVE WHICH WE AGREED TO.
OPERATIONALLY I TOLD THEM, YOU THINK WE CAN GET THE BOARD TO MOVE THE JUNE BUDGET APPROVAL.
WE CAN ADJUST THINGS LATER ON ARE REVISION O MAYBE WE'LL GET THERE SOME DAY.
>> FOR PEARLA AND QUESTIONS FROM THE BOARD MEMBERS, I THINK WE
[05:45:02]
BENEFIT FROM EACH OTHER'S PERSPECTIVES AND THE QUESTIONS ASKED.SINCE WE'RE NOT GOING TO BE TOGETHER FOR FIVE OR SIX WEEKS, IF QUESTIONS COME IN, EVERYBODY SEES THEM AND THE RESPONSES TOO.
>> BETWEEN YOURSELVES AND EMAIL, I WOULD PREFER PEARLA BE THE POINT F CONTACT AND QUESTIONS BE DIRECTED TO HER
* This transcript was compiled from uncorrected Closed Captioning.