[1. Certification of Notice Posted for the Meeting]
[00:00:46]
CERTIFY NOTICE OF THIS MEETING
[2A. DCCCD Budget 2018-19 Presenters: John Robertson and Tiska Thomas]
WAS POSTEDTHE WORK YOU HAVE DONE OVER THE LAST FEW MONTHS PROPOSING A BUDGET EVEN WITH SOME LAST-MINUTE CHANGES THAT HAD TO BE MDE DUE TO CHANGES IN THE VALUATION, BUT WHY DON'T WE WALK THROUGH IT.
>> W DID PROVIDE YOU ALL WITH AN UPDATED PRESENTATION AS WELL AS AN UPDATED BUDGET PRESENTATION WITH SOME CHANGES.
WE HAD A CHANGE IN OUR CERTIFIED T.A.D., FROM WHAT WE GAVE YOU PRELIMINARY IN THE JUNE WORKSHOP THAT USUALLY WE HAVE SEEN HISTORICALLY A 3% REDUCTION IN WHAT WE DID THE T.A. -- IN ANTICIPATION OF, NOT ANTICIPATION BUT JUST AN ESTIMATE OF A PROVISION WE HAD ESTIMATED WE HAD $29 MILLION JUST IN ADDITIONAL TAX REVENUE.
INSTEAD WE ONLY ENDED UP, WE HAD $24 MILLION.
THE NET OF THE CHANGE TO THE PRELIMINARY BUDGE -- BUDGET WE GAVE WAS $5.2 MILLION.
THE OTHER THING THERE WAS SOME DISCUSSION ABOUT US MOVING THE MARK ON OUTCOMES-BASED FUNDING.
WE MADE SURE WE DID THAT ALLOCATION INCREASE TO 16% AND THEN TO ACCOMMODATE THE $5.2 MILLION REDUCTION WHAT WE DID WAS PUT A HOLD ON NEW POSITIONS THAT HAD BEEN SUBMITTED.
SO WE DID PUT A FREEZE ON HIRING THE OTHER POSITIONS UNTIL SUCH TIME THERE WAS AN OPPORTUNITY TO REVIEW THOSE.
>> WE DON'T GET A CERTIFIED VALUE UNTIL JULY 25TH, A LITTLE OVER A WEEK AGO.
HISTORICALLY W HAVE SEEN THAT THROUGH NUMBERS CALCULATE.
THE STANDARD DEVIATION LESS THAN HALF OF A PERCENT.
IT'S REAL TIGHT AROUND THAT 3%.
WHAT CAUGHT US BY SURPRISE WAS COMMERCIAL GOING DOWN BY ALMOST 9%.
I DON'T KNOW IF THAT'S A FOREBEARING CONCLUSION TO COME TO BUT ALSO BETWEEN $1.6 BILLION AND $2.3 BILLION WORTH OF DISPUTED VALUES THAT ARE STILL NOT INCLUDED IN THAT T.A.V. NUMBER.
VERY CLOSE TO THE NUMBERS LAST YEAR.
IT WENT DOWN SOME BUT IT DIDN'T GO DOWN A WHOLE LOT.
WHETHER TAKING A LAWSUIT, THAT'S ALWAYS BEEN OUR ISSUE BUT HASN'T BEEN -- FIRST TIME I HAVE EVER SEEN IT WITH THE TAXING DISTRICTS I WORKED WITH TO SEE THAT KIND OF INCREASE FROM CERTIFIED TO THE PRELIMINARY TO THE CERTIFIED.
[00:05:07]
WE TIP --BUSINESS AND PERSONAL PROPERTY AND IT WAS DOWN 5%.
COMMERCIAL PROPERTY AGAIN ACCOUNTS FOR OVER HALF OF OUR TAX BASE BING DOWN 9% IS THREE TIMES WHAT WE ESTIMATED.
SO WE ASSUME IT DROPPED BY $7 BILLION FROM PRELIMINARY TO CERTIFIED, IT DROPPED BY $14 BILLION CHT SOMETHING DIFFERENT THAN WE HAVE EVER HAD BEFORE.
>> WHAT'S INTERESTING IS LAST YEAR THERE WAS ALMOST $2 BILLION MORE OF DISPUTED TAXABLE VALUE.
I LOOKED AT THE REPORT THIS MORNING, FROM YESTERDAY IF ONLY CHANGE $15 BILLION CERTIFIED OVER LAST YEAR ALL THE WAY TO RIGHT NOW, SO THAT'S WHY MOST OF THAT PROPERTY DISPUTED LAST YEAR IS STILL ON THE DISPUTED ROSTER FOR THIS YEAR.
WE DON'T COUNT FROM A CONSERVATIVE STANDPOINT, WE DON'T COUNT THOSE DOLLARS IN OUR CALCULATIONS FOR REVENUES.
AN ENT -- ENTITY HERE IN DALLAS DIDN'T COME THROUGH AS EXPECTED SO THEY DIDN'T GET THE REVENUES THEY THOUGHT THEY WOULD GET.
SO FROM A CONSERVATIVE BASIS, WE NEVER INCLUDED THOSE NUMBERS UNTIL THEY ACTUALLY BECOME PART OF OUR TAX ROLLS.
RIGHT NOW SME LOOK LIKE THEY ARE ON TO THE SECOND YEAR.
THOSE ARE HIGH NUMBERS FOR DALLAS.
DALLAS USUALLY HAS HALF OF A BILLION OF DISPUTES THAT ARE OUT THERE.
SO THAT'S A LARGE NUMBER FOR OUR COUNTY.
STEPPING BACK A LITTLE BIT, HOW SHOULD THIS BOARD DEAL WITH THE VARIABILITY AND THE T.A.V. AND IT'S NOT JUST WHAT'S IN DISPUTE BETWEEN INITIAL APPRAISAL DETERMINATION, BUT THE YEAR-TO-YEAR DIFFERENCES IN TOTAL ASSESSED VALUE.
FROM A POLICY POINT OF VIEW, IN TERMS OF MULTI-YEAR BUDGET PLANNING, HOW SHOULD WE APPROACH THAT AS A BOARD?
THIS IS STATISTICAL OUTLIER YEAR ON THE T.A.V.
IF WE PLOT THE YEAR-OVER-YEAR CHANGE, WHAT THAT IS IS THE HOUSING CYCLE AND THE BUILDING CYCLE.
IT RISES AND THEN STARTS TO FALL.
FROM WHAT WE ORIGINALLY PROJECTED WE EXPECTED THE PERCENTAGE INCREASE IN THE T.A.V.
WE CAN'T LIVE OFF THESE TYPE OF INCREASES THAT THEY ARE GOING TO CONTINUE YEAR-AFTER-YEAR BECAUSE THAT CYCLE IS GOING TO CATCH UP.
NOW REMEMBER, VALUATIONS ARE AS OF JANUARY 1ST.
BUT IN FEBRUARY, THE RAL ESTATE BOARDS WERE ALREADY STARTING TO TALK ABOUT LENGTHENING THE NUMBER OF DAYS ON MARKET, THE PRICES WEREN'T AS HOT AS THEY WERE.
WE HEAR THAT IN THE HOUSING MARKET, WHILE VACANCIES HAVEN'T INCREASED DRAMATICALLY ON THE COMMERCIAL SIDE THEY AREN'T IMPROVING.
SO COMING THIS NEXT YEAR AS SOME O THESE PLACES COME ON LINE THERE WERE $6 BILLION OF NEW PROPERTY, MOST OF THE COMMERCIAL.
THERE WAS $6 BILLION LAST YEAR.
SO THE AMOUNT OF NEW PROPERTY IS GOING TO START TO SLOW DOWN AND I THINK WE WILL SEE EXACTLY WHAT YOU ARE TALKING ABOUT IS COMING IN THE FUTURE, WE WILL NOT SEE THOSE TYPE OF INCREASES.
SO WE'VE GOT TO BE PREPARED WITH WHERE WE ARE GOING TO BE ON FUTURE BUDGET WE AREN'T GOING TO SEE THESE TYPE OF AMOUNTS WE COULD BE SPENDING EVERY PENNY OF.
>> I THINK WE SHOULD COME BACK TO THIS CONVERSATION AT THE END OF THE PRESENTATION.
[00:10:16]
THE MARKET IS HEADED FOR SOME TYPE OF CORRECTION.>> INTERESTINGLY, THE INVESTING BANKING FIRMS HAVE MORE OF THOSE BUSINESSES THEY OWN ON MARKET RIGHT NOW.
THEY ARE TRYING TO GET OUT OF OWNING THOSE BUSINESSES AND FINDING BUYERS FOR THOSE BUSINESSES.
SO THAT'S ANOTHER INDICATOR OF INVESTMENT BANKING FIRMS, BUYING FIRMS THEY ARE BELIEVING IN THE FUTURE AND IF THEY ARE SELLING THEM, THEY ARE TRYING TO GET THEIR CASH BACK OUT OF THEM.
>> I GOT YOUR LETTER, WHEN I CAME, IT'S CONFUSING AND NOW I SEE HERE IT'S CLARIFIED IN TERMS, SAYS ESTIMATE OF 3%, WAS IT A DECREASE OF 5.6% FROM THE 3%?
>> FOM STRATEGIC AND THEMATIC PRIORITIES.
A 2% INVOLVEMENT MAINLY WE ARE SEEING THAT MOSTLY ON THIS SIDE.
>> JUST THINKING AOUT HOW WE APPROACH THE BUDGET PLANNING PROCESS.
AND SO PERHAPS 3-4 YEARS, 2.1% AVERAGE GROWTH BUT OUR BUDGET HAS BEEN GOING UP 6%, 5%.
WE WILL HAVE TO DO THAT, BOARD POLICY, WE ARE GOING TO SPEND EVERY DOLLAR OF INCREASED PROPERTY VALUE THAT WE CAN, THAT'S WHAT WE ARE DOING.
IS THAT WISE? OR DO YOU AGREE WITH THE PREMISE THERE SHOULD BE A CORRELATION BETWEEN ENROLLMENT GROWTH AND OVERALL BUDGET EXPENSES?
>> HISTORICALLY, I WOULD AGREE THAT THERE IS A CORRELATION.
HOWEVER, I WILL HAVE TO ALSO PUT FORWARD WE ARE DOING PROGRAMS BEFORE AND A LOT OF THAT ENROLLMENT GROWTH COMES FROM THAT, THAT WE HAVEN'T DONE BEFORE, SUCH AS EARLY COLLEGE HIGH SCHOOLS.
IT WILL COME UP IN THE PROMISE PROGRAM AND OTHER THINGS WHICH IS A LITTLE DIFFERENT COST STRUCTURE THAN WHAT WE HAVE SEEN WITH TRADITIONAL STUDENTS, OR EVEN NON-TRADITIONAL BUT THE WAY WE HAVE HAD OUR STUDENTS AND THEIR COST STRUCTURE, I'M PROPOSING AS WE ARE GETTING MORE INTO THESE NUMBERS, THOSE ARE CHANGING A LITTLE BIT BECAUSE TEY ARE A LITTLE BIT DIFFERENT.
THERE ARE THING THAT'S GO ALONG WITH EARLY COLLEGE HIGH SCHOOL WE DON'T HAVE TO SUPPLY WITH OUR TRADITIONAL AND NON TRADITIONAL STUDENTS.
>> LET ME, IF I COULD ON SOME OF THAT AS WELL, ITHINK THERE'S, WE ARE HISTORICALLY, I WILL PUT IT IN CONTEXT ONLY ABOUT 25% OF THE POPULATION IN SECONDARY, THEY WOULD NEED 65%.
BUT FRANKLY, WE ARE REACHING INTO A MUCH-HARDER POPULATION TODAY TO KEEP SUCCESS AND THEN WE HAVE OTHER LEGISLATIVE ISSUES.
FOR EXAMPLE, GETTING TE BILL THAT REQUIRES US TO MOVE AND CORRECT THIS.
NOW TO EXPLAIN WHAT THAT MEANS, THAT MEANS WE HAVE TO HAVE A STUDENT IN BOTH A RGULAR CLASS AND DEVELOPMENTAL AT THE SAME TIME.
IN OTHER WORDS, TWICE AS MUCH CONTACT FOR THAT STUDENT BECAUSE THAT MODEL, AND WE AGREE, HAS PROVEN TO BE BETTER BUT THERE ARE OTHER THINGS WE ARE TRYING TO DO TO IMPROVE OUR STUDENT SUCCESS AS WE GO FORWARD.
AS THESE STUDENTS ARE HARDER TO SERVE AND KEEP SUCCESSFUL, THAT'S WHY WE ARE DOING -- PASSES, MENTAL HEALTH AND LOOKING AT THAT, FOOD BANK AND OTHERS.
IT JUST TAKES A LOT MORE IN ORDER TO HELP THESE STUDENTS SUCCEED.
>> SOME OF WHAT YOU SAID, WE ARE PROVIDING MORE SERVICES CERTAINLY FROM THE TIME I SERVED ON THIS BOARD.
I THINK FOR TOO LONG WE WERE, WE DIDN'T HAVE THE RIGHT APPROACH FOR THE LOWER INCOME STUDENTS TAT TYPICALLY DID NOT SEE HIGHER EDUCATION FOR THEM.
WE WAITED TOO LONG AND NOW WE ARE HAVING TO PLAY CATCH-UP IN SEVERAL OF THESE AREAS.
THEREFORE THE AT BERTHA, THE DARK PASS PROGRAM, THE NAVIGATORS, WE HAVE A 20-YEAR-OLD SYSTEM THAT TTALLY OUTDATED THAT TO SIGNIFICANT MONEY OUT LAY THAT WE HAVE
[00:15:02]
BUDGETED, AS WE KNOW.SO THERE'S A LOT MORE WE HAVE TO DO WITH THE STUDENTS.
ONE WE NED TO REACH BECAUSE AS A BOARD, WE HAVE A PRIORITY TO IMPACT THE PROPERTY NUMBERS AND THE LARGER GROUP OF POVERTY, SO THOSE STUDENTS, HOPING SEVERAL OF THEM -- SO YOU CAN'T JUST -- THEY NEED A LOT MORE WRAPAROUND SERVICES AND THAT DOESN'T COME FREE.
SO WHILE YES, WE WOULD LIKE TO SAY THAT WE DON'T NEED TO TAKE ALL OF THE TAX T.A.V. THAT COMES TO THE INCREASE, WHERE ARE WE GOING TO GET THE FUNDING TO INCREASE THESE WRAPAROUND SERVICES? WE JUST NEED TO GET THAT OUT OF OUR HEAD THAT WE HAVE THE STUDENT WHO HAS COLLEGE-EDUCATED PARENTS THAT CAN GUIDE THEM THROUGH THE COLLEGE PROCESS.
THE MAJORITY OF STUDENTS WHO COME TO US DON'T HAVE ANYONE THAT WENT TO COLLEGE BEFORE THEM.
I REMEMBER WHEN I FIRST WENT TO COLLEGE, I DIDN'T KNOW WHAT A CREDIT HOUR WAS, I DIDN'T KNOW WHAT A DEGREE PLAN WAS, ETC.
THEREFORE I ONLY DID 40 HOURS, DROPPED OUT AND DIDN'T GO BACK UNTIL I WAS IN MY 40S.
HOPEFULLY THAT WON'T BE THE EXPERIENCE OF THE STUDENTS FROM FAMILIES COMING TO US BECAUSE WE HAVE AN ECOSYSTEM THAT SURROUNDS THEM AND LIKELIHOOD THEY WILL EXIT SUCCESSFULLY WITH THAT CERTIFICATE OR DEGREE.
WE WANT TO BE MINDFUL AND EFFECTIVE AND EFFICIENT WITH THE TAX PAYER DOLLAR THAT COMES TO US.
WE ALSO NEED TO REALIZE THAT THE POPULATION OF STUDENTS THAT WE HAVE NEED INCREASED SERVICES.
THEY JUST DON'T FIT THE MODEL THAT HIGHER ED THAT SO LONG IS NO LONGER THERE IN TERMS OF OUR COMMUNITY COLLEGE.
>> BUT THEN WE ALSO HAVE TO BE MINDFUL AS T.A.V. GOES DOWN HOW WILL THAT AFFECT THE LEVEL OF SERVICES WE CAN OFFER AND CONTINUE TO OFFER.
WHERE IS THE RAINY DAY FUND? OR THE BACK UP WHEN THINGS DON'T FLLY FUND AS WE CONTINUE TO GO UP.
>> WE HAVE BEEN THROUGH THAT TOO, TO WHERE WE WERE VERY CONSERVATIVE AND VERY MINDFUL OF WHAT WAS OUT THERE IN THE ECONOMY TO THE RESULT BEING WE WERE ACTUALLY SEPARATELY TALKING ABOUT THE MAINTENANCE OF THE FACILITIES.
I MEAN IT WAS STARTING TO BE OBVIOUS WE WERE REALLY FALLING BEHIND BECAUSE WE WERE BEING SO CAREFUL ABOUT OUR FUNDING AND TAX RATE, ETC. BUT IT WAS STARTING TO BE DETRIMENTAL TO THE INSTITUTION.
SO WE HAVE, YOU KNOW, WE HAVE TO LOOK AT ADDED WHOLE PICTURE, NOT JUST PIECES.
I'VE BEEN TO INSTITUTIONS WHERE, WHEN I SERVED ON THE STATE BOARD WHERE WE WENT TO, I WON'T NAME WHERE THEY ARE, BUT WE WOULD MEET AT INSTITUTIONS HIGHER ED, BECAUSE THIS IS A HIGHER-ED ASSOCIATION, YOU COULD TELL THEY HAD TO PUT THE FUNDING NECESSARY, BECAUSE YOU WALKED THROUGH THE FRONT DOOR AND YOU SAW A LOT OF DISREPAIR.
THANKFULLY WE AREN'T THERE THROUGH OUR FRONT DOOR BUT THROUGH SOME OF OUR BACK DOORS.
RIGHT NOW WE AREN'T WILLING TO -- AT ALL.
IF WE WERE TO PERHAPS CONSIDER SOME FINANCIAL GUIDELINES ALONG THE LINES OF HEY, IF THE TV.
.T.A.V. GOES UP, WE WILL LOOK AT A RATE DECREASE THAT WILL ENCOMPASS SOME OF THAT T.A.V.
IF T.A.V. GOES DOWN WE WILL LOOK AT A RATE INCREASE THAT WANTS TO RAISE 25% AND RECOUP THAT.
RIGHT NOW WE ARE TOTALLY FIXED AND WE ARE SPENDING EVERY PENNY AND WE ARE IN AN UNSUSTAINABLE TREND OF T.A.V. GROWTH AND WE AREN'T DOING ANYTHING TO PREPARE FOR THE DAY WHEN IT GOES DOWN.
>> THE ROLL BACK RATE SINCE IT
[00:20:01]
TAKES CARE OF THE TOP END OF THAT, IT'S THE LOWER END THAT'S NOT BEING ADDRESSED.BECAUSE IF IT DECREASES, WHAT IF IT DECREASES BY 10%.
WHAT ARE WE GOING TO CUT? DO WE RAISE THE RATE.
THAT'S THE DILEMMA WE GET PUT IN WHEN IT HAPPENS.
ARE THEY SUSTAINABLE AT A LOWER LEVEL.
WE HAVE TO FACE A LITTLE OF THAT BECAUSE OF THE ESTIMATED PROJECTION BEING LESS.
IT'S KIND OF A WAKE UP THERE TO SAY ALL RIGHT NOW WHAT ARE WE DOING?
AND WE TALKED ABOUT THIS INTERNALLY.
AND I REALLY DO BELIEVE THAT WE ARE DOING A MUCH BETTER JOB OF IDENTIFYING THE PRIORITIES THAT WE WANT TO CONTINUE FUNDING AND INVEST IN.
WHETHER WE ARE CLEAR ALWAYS ON THAT OR NOT BUT WE SAID THINGS LIKE EARLY COLLEGE HIGH SCHOOL P-TAKES OR PRIORITY WHICH COST US AN ADDITIONAL $750,000 EVERY TIME WE ADD ONE O THOSE IN AND I THINK THAT'S MONEY WELL SPENT A DATA REPORT ON THAT THIS MORNING, WE ARE LOOKING AT THIS HAPPENING.
BUT I DO THINK AND I THINK THERE WILL BE AN OPPORTUNITY WHEN WE GET INTO, BACK INTO LOOKING AT THE RECOMMENDATIONS OUT OF THE BOSTON CONSULTANT GROUP REPORT, WHICH I WILL PRESENT TO THE BARD AT OUR NEXT MEETING.
THERE ARE STRUCTURAL IMPLICATIONS OF THIS GOING FORWARD.
I THINK WE CAN'T, ON ONE HAND TALK ABOUT WHERE WE NEED TO IMPROVE EFFICIENCY AND THUS, REDUCING COSTS IN CERTAIN AREAS, WITHOUT ALSO PUTTING IN CONTEXT WHAT OUR PRIORITIES ARE STRUCTURED.
I DO THINK THAT NEEDS TO BE A BROADER DISCUSSION THAT WE HAVE.
>> I THINK WE NEED TO BE MINDFUL WHAT WE ASK FOR.
I THINK IT'S GOOD FOR GUIDELINES BUT WE ASKED FOR GUIDING PRINCIPLES, STAFF BROUGHT FORTH GUIDING PRINCIPLES.
WE HAVE PRIORITIES AND STRATEGIC PRIORITIES AND NOW GUIDING PRINCIPLES.
WHAT WE ARE ASKING, I KNOW IT'S HARD FOR US T REMEMBER BECAUSE WE HAVE A LOT OF INFORMATION COMING TO US AND A LOT OF FEEDBACK.
JUST BE MINDFUL WHAT WE ARE ASKING FOR SO WHEN STAFF DOES BRING THINGS FORWARD WE AREN'T ASKING WHAT IS THIS.
>> SO CURRENTLY WE HAVE AN FY-2018-2019 ESTIMATED OPERATING REVENUES OF $466 MILLION.
>> IF WE COULD GO BACK, MAYBE JUST ONE THING, TUITION INCREASE THAT'S IMPORTANT BUT IT'S ALSO IMPORTANT THAT'S INCREASE, AS WE GET NEW STUDENTS WE DON'T GET ENOUGH REVENUE TO COVER THOSE STUDENTS GOING FORWARD, THERE'S 80% WE HAVE TO COVER SOMEWHERE.
>> SO THIS IS HOW OUR REVENUE BREAKS DOWN.
WHERE WE ARE SEEING THE INCREASES MAINLY, WE JUST TALK ABOUT THE TUITION, THE TAXES, THE INVESTMENT INCOME WE TOUCHED ON THIS A LITTLE AT THE LAST WORKSHOP THIS IS DUE TO MAINLY MARKET FLUCTUATION, THIS IS ON THE CONSERVATIVE SIDE WE DIDN'T WANT TO DO THIS HIGHER.
61% I'S A BIG NUMBER BUT WE STILL FEEL THAT'S BEING CONSERVATIVE.
WE SAW THAT CHANGE HAPPEN SOMEWHERE AROUND DECEMBER SO WE SHOULD SEE A FULL YEAR OF THAT EFFECT THIS COMING YEAR.
>> THAT'S CONSERVATIVE, VERY ACHIEVABLE NUMBER.
WE HAVE SEEN THE RATES ACTUALLY CHANGE AND WE ARE STARTING TO SEE THE BENEFIT OF THAT BUT WE WILL SEE A FULL YEAR OF IT.
SO THE NUMBER WE PUT IN THE BUDGET IS OUR NET TUITION, SO OUR GROSS TUITION THAT WE HAVE IN ADDITION TO THIS WHICH IS NOT SHOWN ON THIS SLIDE IS ALSO A 3.5 MILLION DOLLAR OPERATIONAL STIPEND THAT WE GIVE TO THE COLLEGES TO OPERATE THOSE EARLY COLLEGE HIGH SCHOOLS.
[00:25:11]
>> DUAL CREDIT WOULD BE -- FULL COLLEGE DUAL CREDIT.
WHY DO WE NEED TO SPEND NEW MONEY AS OPPOSED TO ALLOCATING MONEY THAT ARE BUILT INTO OUR BASE BUDGET SO THAT MAY NO LONGER BE NECESSARY BECAUSE WE WOULD BE EXPERIENCING ENROLLMENT DECLINES.
>> I THINK YOU AND I ARE SAYING THE SAME THING WHEN I WAS TALKING ABOUT STRUCTURE, THAT SORT OF THING, THAT'S PART OF WHAT WE NEED TO LOOK AT.
THE PROGRAM REVIEW PROCESS AND OTHER THINGS COMING UP TO TAKE A MUCH DEEPER DIVE INTO WHAT WE ARE DOING.
I DON'T ARGUE WITH YOU AT ALL WE NEED TO LOOK AT HOW WE ARE USING OUR RESOURCES BUT I DO WANT TO KIND OF REMIND ONE PIECE OF INTEGRATION THAT IS RELATED.
WE HAVE ARTIFICIALLY KEPT TUITION LOW, HOW MANY YEARS SINCE WE HAVE INCREASED THAT? SOME IS POLICY-RELATED.
IF WE DO SOMETHING I THINK WE COULD INCREASE THE LIKELIHOOD WE COULD ATTRACT AND RETAIN PEOPLE BUT ON THE OTHER HAND PROBABLY STOP SOME OF THE OTHER PRACTICES --
>> I WANT TO SPEAK TO THE MAJORITY OF THE WORK THE COLLEGES DO HERE, THEY ARE CONSTANTLY LOOKING AT THINGS, I KNOW SOME O THE NEW POSITIONS COME UP, THERE'S A NEW REVIEW PROCESS, DO WE NEED THAT? DOES IT NEED TO BE REPURPOSED? HOW DO WE DO IT? THERE'S A LOT OF STUFF, QUITE FRANKLY I'M NOT INVOLVED IN THOSE DISCUSSIONS EVERYDAY BUT I KNOW THEY ARE GOING ON.
SOME IN MY OWN AREA, OKAY I DON'T NEED THIS POSITION.
THAT'S GOING ON ACROSS THE DISTRICT AND SPECIFICALLY SINCE THE COLLEGES GET 75% OF THE MONEY THEY ARE DOING THAT CONSTANTLY TOO.
IS IT AS FAST AS WE WOULD LIKE IT TO BE? NO.
AND PARTLY, AS FOR BEFORE, WE DO IT, OBTAINING RECORDS OF WHAT WE HAVE DONE.
WE JUST DON'T HAVE A TRACKING SYSTEM.
I COULD HAVE EACH OF THE SEVEN COLLEGES STAND UP AND GIVE A LIST FOR THE NEXT 30 MINUTES WHAT THEY HAVE DONE THE PAST YEAR BUT THAT SUFF IS GOING ON AND IT IS HAPPENING.
>> ONE OF MY CONCERNS THOUGH IS THAT WE ARE BUYING OUR INCREASED ENROLLMENT SO W ARE GETTING ABSOLUTELY NO BENEFIT FOR TUITION BECAUSE WE ARE PAYING THEIR TUITION.
SO AT THE POINT WE ARE NOW 10% INCREASE IN ENROLLMENT, THAT BASICALLY IS, TO NO BENEFIT TO THE INSTITUTION BECAUSE WE ARE BUYING THAT INCREASED TUITION WITH EARLY CHILD HIGH SCHOOL BECAUSE WE ARE SCHOLARSHIPING
[00:30:01]
EVERYTHING.>> AT THE POINT WE DO, WE DO GET CONTACT HOUR.
BECAUSE OF INCREASED COMPLETION OF DEGREES AND SO ON BUT TO THE EFFECT OF WAT WE ARE TRYING TO IMPACT WITH THE POVERTY LEVEL, WHERE WE ARE TRYING TO DO IN DALLAS COUNTY, YES.
IT'S THE TAX PAYERS THAT HELP US ACHIEVE THOSE GOALS AND KEEPING TUITION LOW AT THAT $59, THAT'S PART OF WHAT WE ARE TRYING TO DO HERE.
>> BUT THAT AFFECTS PELL GRANTS ALSO, RIGHT? PELL ONLY GOES SO FAR.
>> RIGHT NOW THEY WILL COVER THE ENTIRE COST SO THAT IT MAKES IT MORE AFFORDABLE AND MAKES IT EASIER FOR PEOPLE TO PROGRESS TO GO THROUGH BUT THE REALITY IS, OUR STATE, OUR COMMUNITY GAVE US THE RESOURCES TO SOLVE THESE PROBLEMS. IT'S REALLY UP TO US TO FIGURE OUT THE BEST WAY TO USE THOSE RESOURCES SO WE ARE GETTING MORE PEOPLE IN COLLEGE, GETTING THEM THROUGH AND REMOVING THOSE BARRIERS.
WE COULD SCHOLARSHIP THEM BUT THEY DON'T HAVE TRANSPORTATION THAT'S NOT ENOUGH, IF THEY ARE MISSING MEALS, THAT'S NOT ENOUGH.
IT'S REALLY CONTINUING TO LOOK AT WHAT'S TRIPPING PEOPLE UP AND WHAT'S GETTING IN THE WAY.
WHILE I WOULD PUT IT ANOTHER WAY, SO IT IS MORE AFFORDABLE FOR A BROADER GROUP OF FOLKS COMING THROUGH THE DOOR AND THAT FOLKS WHO HAD NO HOPE BEFORE NOW HAVE NOT ONLY HOPE BUT PROMISE FOR A WAY THAT IS ACHIEVABLE.
WE WERE JUST LOOKING AT THIS MORNING, THE RETENTION RATES OUT OF D.C.I.D. AND THEY ARE STAGGERING COMPARED TO A NON-EARLY HIGH SCHOOL, WE ARE NOW AT 97% RETENTION IN HIGH SCHOOL.
YOU DROP DOWN AND IT DROPS INTO THE HIGH 80'S AND LOW 90'S JUST BY ONE SIMPLE FACT.
>> CHAIR C. ROGERS COMPTON: IN TERMS OF THE TUITION DOLLARS WE ARE GETTING THE CONTACT HOUR REIMBURSEMENT, I DN'T THINK WE COULD ACCURATELY SAY THERE'S NO BENEFIT TO -- THERE'S BENEFIT TO THE COMMUNITY A LARGE BY HAVING THOSE EDUCATED STUDENTS AND TO THE WORKFORCE AND TO INDUSTRY.
BEING OUT THERE WITH CERTIFICATES AND DEGREES, SO THERE'S DEFINITE BENEFIT NOT TO US DOLLAR-WISE TUITION FROM THE TUITION SIDE BUT AS STEWARDS OF THIS INSTITUTION AND DOLLARS, THERE'S DEFINITELY BENEFIT TO THE COMMUNITY AT LARGE, DEFINITELY TO THE INDIVIDUAL STUDENT AND THEIR FAMILY BUT TO THE COMMUNITY AT LARGE BY HAVING THAT EDUCATED WORKER.
>> FINANCE IS WHAT THIS MEETING IS SUPPOSED TO BE, SO FINANCE NUMBERS.
>> WE ARE INCREASING SCHOLARSHIPS 20% WHICH IS GREAT.
WE ARE GROWING 2.8% IN ENROLLMENT AND NET TUITION IS UP 2.8% THAT'S GOOD.
TUITION REVENUE AND REVENUE GROWTH IS ALIGNED TO ENROLLMENT GROWTH, THE NUMBER OF PEOPLE WE ARE SERVING, WHAT I'M CONCERNED ABOUT IS ALL THESE OTHER LABOR-INTENSIVE SERVICES ARE GROWING BASED ON T.A.V. GROWTH AND WE CANNOT SUSTAIN THAT AND IT'S GOING TO GO DOWN.
WE WILL BE FORCED TO CUT A LOT OF THINGS IN THE FUTURE.
IF WE CONTINUE TO RELY ON T.A.V.
>> STATE DOLLARS, TITION DOLLARS, TAX DOLLARS.
>> WE HAVE THE COMPARISON WE HAD BEFORE, WE UPDATED THIS WITH THE VALUES AND THE ANNUAL TAXES IN THE BDGET 10.4 CENTS IS $20, DIFFERENCE IS INCREASE OF $20 ON AN ANNUAL BASIS, $1.37 ON A DAILY BASIS.
TAX PAYER SAVINGS -- NO TUITION INCREASE IN SPRING 2015.
[00:35:03]
INSTATE TUITION RATE $30 BELOW THE STATE AVERAGE OF COMMUNITY COLLEGES.I'M TRYING TO GIVE A REFERENCE POINT OF WHAT WE HAVE DONE.
>> THE SMALLER RUAL COLLEGES WHICH MAY NOT HAVE THE SAME EFFECT, ONE OF THE PLACES THEY COULD GET AN INCREASE IS IN TUITION SO THAT'S PART OF WHAT WE ARE DOING HERE IS OUR MIX OF REVENUE SOURCES ALLOWS US TO BE A LITTLE MORE FLEXIBLE AND QUITE FRANKLY GIVE THE STUDENTS A DEAL, IF YOU WILL, IN THE AFFORDABILITY OF TUITION.
THE OVER 65 AND DISABLED PERSON EXEMPTION TWO YEARS AGO BUT HAPPENING IN FY-'18 THE EXEMPTION WAS INCREASED FROM $50,000 TO $6 THE,000.
WE HAVE COMING FORWARD TO PROPOSE FY '19 TO $75,000 WHICH WOULD RESULT IN $2.8 MILLION.
WE WILL BRING IT IN SEPTEMBER IS THE PLAN.
IT WON'T GO INTO EFFECT UNTIL FY '20.
THEY LAG A YEAR BECAUSE THEY HAVE TO HAVE IT IN TIME, THEY HAVE TO HAVE IT IN MARCH TO GET THE MAY MAILINGS OUT BUT WE DON'T EVEN KNOW WHAT THE T.A.V.
>> TO COMMENT ON COMMISSIONER WILLIAMS, IT'S CONNECTED TO A T.A.V., THIS ISN'T SUSTAINABLE ANY MORE THAN THE OTHER SUSTAINABLE BECAUSE THERE IS A RELATIONSHIP BETWEEN THE TWO, ONE AFFECTS THE OTHER AS WE GO FORWARD.
WE DISPROPORTIONATELY KEPT THEM LOW BECAUSE WE BELIEVE THAT IMPROVES ASSETS BUT AT SOME POINT I THINK THE ABILITY -- AND I'VE BEEN THERE IN PREVIOUS PLACE WERE'S YOU KEEP THE TUITION LOW AT TE EXPENSE OF HAVING THE RESOURCES SO YOU DON'T WANT TO PUT
>> WE ALSO HAVE DONE SOME BOND REFUNDING AND BOND PAY OFFS.
WE WILL BRING ANOTHER ONE FORWARD PROBABLY IN OCTOBER FOR FY '19 WE WILL SAVE SOME ADDITIONAL MONEYS THERE.
WE HAVE HAD THE SAME M & O TAX RATE.
SO BOTH WE HAVE KEPT AT THE SAME LEVELS.
SO WHAT DO WE DO TO THE COMMUNITY? WE BELIEVE WHAT WE ARE DOING HERE ESPECIALLY TALKING AOUT THE EARLY COLLEGE HIGH SCHOOLS AND OTHERS HOW WE ARE SUPPORTING THE ECONOMY AND MOVING STUDENTS THROUGH OUR SYSTEM TO TRACT NEW BUSINESS THE NEXT QUESTION OUT OF TEIR MOUTH, TELL ME ABOUT THE WORKFORCE.
HOW COULD THEY GET EDUCATED? WHAT SCHOOLS ARE HERE THAT COULD DO THE EDUCATION FORCE THAT WE HAVE? SUPPORTS THOSE NEEDS FOR SUPPORTED WORKERS IN CRITICAL AREAS AND SUPPORTS SCHOLARSHIPS AT THE DISTRICT FOUNDATION THE DALLAS PROMISE AND LEVEL OF SCHOLARSHIP.
>> I'M CURIOUS ABOUT THE SCHOLARSHIP.
THE FOUNDATION IS RAISING MONEY FOR THE SCHOLARSHIPS AND HAVING GREAT SUCCESS, THANK GOODNESS BUT WE ALSO FUND SCHOLARSHIPS FROM OUR OPERATING BUDGET, RIGHT?
>> WHAT ARE THOSE NUMBERS VERSUS OPERATING BUDGET, FOUNDATION SUPPORT, IN TERMS OF THE TOTAL SCHOLARSHIP MONEY?
DON'T MAKE ME PULL THEM UP OUT OF MY HEAD BECAUSE I WILL PROBABLY GET THEM WRONG BUT WE WILL GET YOU THOSE.
>> THERE IS A DIFFERENCE BECAUSE SME OF THESE ARE LEGISLATIVELY MANDATED TO US.
FOR EXAMPLE, THE -- HAZEL WOOD REQUIRES WE SCHOLARSHIP VETERANS, THEIR SPOUSES AND THEIR DEPENDENTS.
WE'VE GOT THEM FOR BUYER AND -- FOLKS.
THERE ARE A NUMBER OF STATE MANDATED ONES.
WE ARE SEEING A GROWTH IN THOSE AS WELL.
[00:40:01]
SOME ARE UNDER OUR CONTROL.THE REASON WE ARE OPERATING WITH THE HIGH SCHOOL STUDENTS, THEY AREN'T PELL ELIGIBLE.
WE HAVE HAD TO COVER 100% OF THE DOLLARS OUT OF THE FOUNDATION, SO WE LIMIT THE FOUNDATION DOLLARS TO THOSE WHO ARE PELL ELIGIBLE -- WELL IF THEY HAVE A HIGH SCHOOL DIPLOMA.
THEY DON'T HAVE TO BE ELIGIBLE TO GET IT, WE WILL COVER THEM ANYWAY BUT THAT'S KIND OF THE DIFFERENCE BETWEEN THE TWO.
>> WE CAN GET TOGETHER AND GIVE YOU HOW MUCH COMES OUT OF THE OPERATING BUDGET FOR SCHOLARSHIPS.
INCLUDING TUITION WAIVERS AND EVERYTHING ELSE WE D AND HOW MUCH WE ARE FUNDING OUT OF THE FOUNDATION AND STUFF.
PART OF THIS IS, WE ACTUALLY MADE A COMMITMENT TO LEVEL UP TO HELP RAISE FUNDS AND LEVEL UP IS TO COMMIT $835,000 A YEAR TO MATCH WHAT'S BEING RAISED ON THE LEVEL UP SCHOLARSHIPS.
SO AS AN INCENTIVE BECAUSE MOST PEOPLE ARE GIVEN WANT TO GO SHOW ME A LTTLE SKIN IN THE GAME.
>> THAT'S WHAT WE MEAN HERE BY HOW WE ARE SUPPORTING IS FROM OUR OPERATING BUDGET BUT THERE ARE OTHER SCHOLARSHIP DOLLARS THAT ARE ALSO INCLUDED.
WE COULD GO BACK AND GIVE YOU A FULL LIST BY WHAT THEY ARE, INCLUDING WAIVERS AND ALSO SHOW YOU HOW MUCH THE FOUNDATION IS ALSO COMMITTED TO THAT.
FOR OUR STUDENTS WE HAVE INCREASED THE SUPPORT FOR ORGANIZATIONS AND CLUBS IN THIS PROJECT.
WE HAVE WOEFULLY BEEN LOW IN THAT SUPPORT COMPARED TO WHAT WE NEED TO MAKE OUR STUDENT ORGANIZATIONS AND CLUBS VIABLE.
SOME OF THAT WAS P.T.K., THE SCHOLARSHIPS WE HAD ON THEIR P.T.K. MEMBERSHIPS AND TRAVEL AND TO THE P.T.K. ANNUAL CONFERENCES.
THERE'S SOME OTHERS IN THERE THAT WE DO.
THE TEAM THAT'S COME IN THERE FOR THE NATIONAL PLAYOFF.
THE PLAYOFFS DN'T PLAY FOR YOU TO ATTEND.
WE JUST NEED MORE SUPPORT OF THE DIFFERENT TYPE OF STUDENT ORGANIZATIONS WE HAVE IN THE COLLEGES.
>> I KEEP HEARING FROM STUDENTS ABOUT THE PRICES FOR THE VENDING MACHINE PRODUCTS.
IS THAT PART OF WHAT GOES INTO THE AUXILIARY FUND?
>> THAT'S PART OF THE REVENUE THAT DUMPS INTO THAT.
WHAT WE TRY TO DO IS PRICE WHAT'S IN THE VENDING MACHINE SIMILAR TO WHAT THE PRICE IS AT A CONVENIENCE STORE.
WHAT KEEPS US IN CHECK ALSO IS OUR BOOKSTORE LOCATED THROUGH THE CAMPUS ALSO SELL SIMILAR TYPE OF PRICES, SO WE CAN'T JUST RAISE THE PRICES OR WE WON'T SELL ANYTHING THROUGH THE VENDING MACHINES.
WE TRY TO KEEP IT THROUGH MARKET DEMANDS BUT IT'S NOT LIKE GOING TO TE AIRPORT WHERE YOU WILL PAY $2 FOR A 7-OUNCE BOTTLE OF SOFT DRINK.
>> I'VE HEARD THERE'S A REAL BIG PROBLEM WITH THE PRICES FROM THE VENDING MACHINES.
>> COMPARED TO WHAT YOU CAN BUY AT SAMS, YES.
WE HAVEN'T RAMPED UP TO THE TOTAL LEVEL OF STATE FUNDING.
REMEMBER, THE STATE ONLY BUDGETS ON A BIENNIUM BASIS AND THEY ONLY GET MONEY BASED ON WHEN WE HAVE THOSE CONTACT HOURS, A BASE YEAR OR ACCOUNTING YEAR, WHICH WE ARE IN RIGHT NOW.
SO THE GOOD PART IS, ALL WE HAVE WILL HELP US IN THE 2021 BIENNIUM WHEN IT COMES FORWARD.
PROVIDES $2.5 MILLION IN SUPPORT OF THE NETWORK MODEL FOR GUIDED PATHWAYS.
WE STARTED THAT LAST YEAR AND REMOVE THE STUDENT BARRIERS WE TALKED ABOUT WITH GO PASS, ACCESS TO LOCAL SERVICES, WE ARE FINDING IS ONE OF THOSE AREAS THAT WILL KEEP INCREASING AND SOMETHING I WANT TO BRING
[00:45:01]
FORWARD TO TALK ABOUT IS DIGITAL LEARNING MATERIALS AND A NEW PROGRAM WE HAVE WORKED OUT WITH THE COLLEGE THAT WILL PROVIDE STUDENTS A MUCH REDUCED LEARNING MATERIAL PRICES.IN ESSENCE, I DON'T WANT TO CALL IT FREE BUT WE CAN GET IT FOR THE AVERAGE COST WILL BE $60 PER COURSE AS OPPOSED TO $250-$300 PER COURSE.
WE ARE GOING TO REALLY REDUCE THE COST OF LEARNING MATERIALS AND THEY WILL HAVE THEM ON THE FIRST DAY OF CLASS, EVERYBODY.
>> JUST A SIDE NOTE, WHEN WE LOOK AT THESE AREAS FOR REMOVING BARRIERS AND THE PROMISE OF VTAG, THE TEAM SUBMITTED A GRANT TO THE GREATER TEXAS FOUNDATION WHERE WE ARE ASKING THEM TO CONDUCT A COMPLETE STUDY OF THE EFFECTIVENESS OF ALL THESE EFFORTS IN TERMS OF WHAT WE ARE GETTING FOR OUR DOLLARS.
AND IT WILL BE HANDLED BY ACTUALLY A GROUP BY TEMPO UNIVERSITY WE WILL BE TAKING A LOOK AT IT TO ADVISE US.
WE WANTED IT COMPLETELY REMOVED.
>> THAT'S INFORMATION WE NEED -- IF IT'S JUST FEEL GOOD RATHER THAN HAVING AN IMPACT --
>>EL CENTRO AND THE GOPASS RUN TWO SEPARATE SYSTEMS. BUT THE GOPASS IS A 3-YEAR PILOT PROGRAM WITH DART WHICH IS GOING TO START THIS JANUARY, IT WILL START THE THIRD YEAR.
THERE WILL COME A PERIOD OF REEVALUATION OF THAT BUT ALSO EL CENTRO HAS HAD A DART FREE PROGRAM FOR A NUMBER OF YEARS BECAUSE THEY HAD NO PARKING AND IT WAS CHEAPER TO DO THAT THEN BUILD A NEW PARKING GARAGE DOWNTOWN.
WE HAVE DART FOR THIS, THEY WORKED WITH US REAL HARD, STUDENTS CAN USE THE TECHNOLOGY THAT'S IN THE GOPASS FOR THE EL CENTRO NOW BUT ITS STILL A SEPARATE PROGRAM.
>> LAST YEAR WHEN THIS CAME UP WE ASKED FOR NUMBERS OF UTILIZATION.
>> WE WILL SHARE THEM WITH YOU, AND THEY CONTINUE TO GROW BUT THAT'S WHAT WE NEED TO SEE, NEED IS STILL GREATER THAN USAGE ON IT BECAUSE A SIMPLE REASON, A PERSON HAS A CAR AND IT BREAKS DOWN.
IF THEY HADN'T ALREADY WORKED OUT THE GOPASS IN ADVANCE THEY CAN'T USE IT AT THAT POINT.
SO WE REALLY TRYING TO GET MORE AND MORE TO DO IT, EVEN IF THEY DON'T NEED IT TODAY.
>> COLLEGE ALLOCATION AS IT HAS, AS WE TALKED ABOUT THE ENROLLMENT DATA DRIVEN WE REFERRED TO ARE THE INPUTS.
THE OUTCOME-BASED FUNDING, WE DID INCREASE THAT TO 16%.
WE ELECTED THE SAME AMOUNT IN THE BUDGET WRKSHOP THIS LAST YEAR BUT WE WENT AEAD AND RAISED IT FOR OUR FINAL BUDGET.
THAT WASN'T AN INCREASE TO THE BUDGET.
IT WAS REMOVE DOLLARS OUT OF THE INPUTS AND MOVE THEM DOWN TO THE OUTCOME-BASED FUNDING.
>> WE USE OUR OWN BASED ON THE SUCCESS POINTS IN 65/35 TYPE OF RULES.
BUT WE HAVE PRESENTED THOSE BEFORE WHAT OUR OUTCOME-BASED FUNDING IS.
BUT COMING UP IN A PRESENTATION WE WILL GIVE YOU SOME INFORMATION ON WHAT THEY HAVE DONE WITH THE OUTCOME-BASED FUNDING POINTS OVER THE PAST FEW YEARS.
>> JOHN, WE GET THOSE IN ANNUALLY, DON'T WE? ON THE SUCCESS POINTS?
[00:50:02]
>> THE ONES I REALLY BELIEVE ARE THE ONES WE USE BIANNUALLY.
>> THERE'S A PRIORITY OF COMMUNITY COLLEGES, THE NUMBER ONE PRIORITY IS TO INCREASE THE AMOUNT OF MONEY THAT THE STATE SENDS, CERTAINLY WE SEE EVEN FOUR YEARS THIS YEAR, LEGISLATION THAT WILL PUT THEM ON A SUCCESS PATTERN.
THE STATE ONLY GIVES US $8 MILLION OUT OF THE $87 MILLION THEY GIVE US, WE ARE PUTTING $52 MILLION DOLLARS.
>> THEY REPORT THAT OUT AS A DISTRICT.
WE HAVE CALCULATED INDIVIDUAL COLLEGES.
>> HAVE WE SEEN IT BIENNIUM FOR THE COLLEGE?
>> CAN WE SEE THAT? WE HAVE INFORMATION WHERE WE STAND WITH THE DISTRICTS COMPARED TO THE STATE, RIGHT? SO IF WE COULD SEE THAT --
>> I COULD SHARE THAT WITH YOU NEXT MONTH.
IT IS BUDGET DAY SO I GUESS I GET TO DO THAT.
BUT I THINK WHAT WE ARE DOING, I THINK OUR NEXT ROUND OF SUCCESS POINTS THIS BASE YEAR WILL LOOK MUCH BETTER THAN WHAT WE HAD BEFORE.
WILL WE JUMP TO THE TOP OF THE HEAP? NO.
BUT WE ARE MOVING IN THE RIGHT DIRECTION ON THOSE THINGS THAT ARE GOING TO CALCULATE SUCCESS POINTS.
>> JOHN DID SHOW THAT INFORMATION A COUPLE MONTHS AGO.
ONE OF THE THINGS WE HAVE WORKED ON, THESE METRICS, IF YOU REMEMBER WHEN WE PRESENTED THIS OUTCOME-BASED FUNDING, WE GAVE PERCENTAGE POINTS ON CERTAIN FOCUS POPULATIONS AND CRITICAL FIELDS.
ONE OF THE THINGS WE DID IS BREAK OUT HOW THEY ARE DOING ON THOSE FOCUS POPULATIONS AND CRITICAL FIELDS UNDER EACH OF THE MEASUREMENTS OF THESE METRICS.
SO IT'S NOT JUST THE METRICS THEMSELVES, IT'S ASO HOW ARE THEY DOING WITH WHAT WE NEED TO BE IN THOSE AREAS AND THE FOCUS POPULATIONS ARE TYPICALLY NOT CONSUMERS.
>> CAN YOU GIVE A COUPLE EXAMPLES FROM THE COLLEGE BUDGETS WERE, OUTCOME-BASED FUNDING HAVE CAUSED THEM TO ADJUST THEIR BUDGET? WHAT I'M TRYING TO UNDERSTAND IS, IS THIS OUTCOME-BASED PARADIGM CANGING BEHAVIORS IN RESOURCE ALLOCATION SYSTEMS? OR IS IT JUST --
>> JOHN, ISN'T THAT PART OF THE PRESENTATION?
>> WE WILL DO THAT ON THE 28TH.
SO LET'S JUST WAIT UNTIL THEN.
>> SHE HAD HER HEAD DOWN THE FURTHEST WHICH IS WHY I PICKED ON HER.
>> TO BRAG ON THE COLLEGE A LITTLE BIT, THEY STARTED ON THIS A LITTLE EARLIER THAN EVERYBODY ELSE.
>> BUDGET EXPENSE SLIDE]E] THAT'S THE ONLY THING THAT HAS REALLY CHANGED IN THIS OF WHERE WE HAD WAS MOVING THOSE DOLLARS DOWN.
WE ARE STILL WORKING ON LEAVING SOME MONEY IN THERE, I WILL TELL YOU RIGHT NOW, THIS IS NOT ENOUGH FOR THE CORPORATE TRAINING PROGRAM.
AND THE CORPORATE TRAINING PROGRAM TEY ARE GOING TO DO A WHOLE PRESENTATION ON THIS.
BUT BRIEFLY, THAT'S A POTENTIAL REVENUE-GENERATOR, PROFIT CENTER.
AND THE COMMERCIAL AIR-CONDITIONING PROGRAM THAT CEDAR VALLEY IS LOOKING AT DOING IS FILLING A REAL INDUSTRY NEED BECAUSE WE DON'T HAVE ENOUGH CERTIFIED COMMERCIAL HVAC TECHNICIANS.
NOT JUST I THE DALLAS AREA BUT ALSO BEING ABLE TO CERTIFY THESE PEOPLE WITH A NATIONAL ORGANIZATION THAT GIVES THEM A CERTIFICATE THAT IS GOOD ANYWHERE THEY GO, THAT THEY KNOW THEY HAVE ACTUALLY BEEN CERTIFIED CORRECT.
WE HAVE THE COMPENSATION JOB PROFILE REVIEW IN THE BUDGET.
I MENTIONED DALLAS PROMISE AND LEVEL UP SCHOLARSHIP.
AND WE ARE STILL WORKING ON, AND YU WILL SEE A PRESENTATION ON THIS IN A FEW MINUTES ON THE
[00:55:03]
BACCALAUREATE PROGRAM ON EARLY CHILDHOOD EDUCATION.>> ON -- TE BUDGET BOOK, YOU LIST EXPENDITURES BY FUNCTION.
>> AD LOOKING AT THE INCREASES OF FY '18 AND FY '19 IF INCREASES IN INSTITUTIONAL SUPPORT, WHICH IS, IT'S NOT CLASSROOM STUFF, IT'S NOT STUDENT SERVICES, IT'S BASICALLY --
>> ALSO THE COLLEGE ADMINISTRATIVE OFFICES.
>> I WAS TRYING TO SQUARE THAT 12.7% INCREASE WITH THE RATIONALE THAT WE HEAR FROM THE BOARD, OH WE ARE PUTTING THE MONEY INTO NAVIGATORS AND CAMPUS INSTRUCTION AND FACILITIES.
BUT WHAT WE ARE REALLY PUTTING OUR MONEY IN, IN TERMS OF LARGEST AREA OF GROWTH IS INSTITUTIONAL SUPPORT.
WHICH IS NOT INSTRUCTIONAL AND NOT STUDENT SERVICES.
SO WHAT'S DRIVING THAT AND IS THAT THE RIGHT DIRECTION THE BOARD WANTS TO GO?
>> MANY OF THE DIVISIONS THAT MAKE UP INSTITUTIONAL SUPPORT ARE COLLEGE SERVICES.
SO THAT WOULD BE IT. IS A BIG ONE.
SO THEY DID HAVE A LARGE INCREASE IN I.T.
SO NO THEY AREN'T CONSIDERED, THEY ARE COLLEGE SERVICES, THAT'S NOT LIKE -- OPERATIONS.
>> TWO YEARS AGO WHEN WE CONSOLIDATED --
BUDGET, YES WE ARE GOING TO INVEST IN I.T. AND PUBLIC SAFETY, THOSE ARE THE TWO MAJOR THINGS TO COMMIT.
>> NOT THE PREVIOUS YEAR BUT THIS YEAR IS ONE OF THE INCREASES.
ONE AREA IN I.T. IS CYBER SECURITY.
WE HAVE BEEN LIMPING ALONG WITH A PERSON AND A HALF, JUST ONE PERSON REALLY.
WE REALIZE THE NUMBER OF INCIDENTS WE HAVE HAD ON OUR INSURANCE WE HAVE TO DO THAT.
WE HAVE NEW PERSONNEL IN THAT BUDGET TO ADD TO THAT.
AND WE JUST CAN'T DO THAT WITH ONE PERSON TO HANDLE THAT AREA.
WE ALSO HAVE OTHER INITIATIVES WE ARE WORKING ON.
>> IT'S MORE THAN JUST PERSONNEL FOR THAT.
IT'S EQUIPMENT, IT'S TECHNOLOGY THAT THEY NEED IN ORDER TO BE ABLE TO DO THEIR JOB.
AND FOR POLICING AND PUBLIC SAFETY WE HAVE INCREASES FOR THE SAME REASON, THEY HAVE TRAINING, THEY HAVE EQUIPMENT.
YOU KNOW, THEY NEED, THEY DO HAVE ADDITIONAL PERSONNEL ALSO.
BUT THOSE ARE AREAS WE SAID WE NEEDED TO FOCUS ON SO WE WILL SEE THOSE DOLLARS.
>> WE HAVEN'T HAD A LOT OF ACCOUNTANTS.
>> WE WILL REALIZE COST SAVINGS AND EFFICIENCIES.
YOU SAID EARLIER WE DON'T SEE THAT.
>> NOT EVERYTHING IS IMPLEMENTED YET.
BY THE TIME YOU GET EVERYTHING DONE AND PUT IN PLACE WILL BE ABLE TO START TO SEE.
>> WHEN WILL THAT BE, 2019 OR 2020?
>> WE ARE STILL DOING IN THOSE I.T. AND POLICE AND PUBLIC SAFETY AREAS WE STILL HAVE THE COMMITMENT OF $18 MILLION, THAT'S TO REDUCE THE AMOUNT OF DEBT WE MIGHT HAVE TO HAVE.
PUBLIC SAFETY IS $1.5 MILLION, EARLY COLLEGE HIGH SCHOOL SCHOLARSHIPS, $4.6 AND TOTALING ALL THE THINGS WE ARE LOOKING AT, THE BACCALAUREATE PROGRAM, CORPORATE TRAINING, HVAC, $8.6 MILLION.
$500,000 FOR THE DALLAS PROMISE AND MOVING FORWARD WITH THE EDUCATIONAL PLAN AND BEING ABLE TO DO SOMETHING ON P-3'S AND FACILITY CONDITION WE ARE MOVING FORWARD WITH BEING ABLE TO HAVE $1 MILLION IN THERE TO GET HELP ON WHAT WE NEED TO DO WITH THOSE THINGS.
>> IF I MIGHT ASK, THAT IS A COMMERCIAL HVAC?
>> IF WE LOOK AT WHAT A SCHOOL TEACHER IS GOING TO MAKE, COMPARED TO AN INDUSTRIAL HVAC,
[01:00:02]
I WOULD PUT THE MONEY INTO THE CORPORATE FOR THE SIMPLE FACT THAT HVAC, BECAUSE I KNOW WHAT THOSE GUYS PULL DOWN.>> A SCHOOL TEACHER, NOT SO MUCH.
IF WE ARE LOOKING FOR BIG BANG FOR OUR BIG BUCKS, I THINK WE NEED TO LOOK AT BIG BANG FOR OUR BIG BUCKS.
>> I THINK THERE'S ANOTHER POINT TO THAT, WHICH I HAVE LEARNED OVER THE YEARS.
I COME FROM THE PRIVATE SECTOR WHERE I DID [INAUDIBLE] WHEN I CAME TO EDUCATION I LEARNED THERE'S COMMUNITY R.O.I. THAT GOES ALONG WITH THIS.
I THINK THE REAL PART OF THAT, IF YOU TOOK IN THE REAL THING, IT'S NOT JUST -- WHAT ARE YOU DOING TO LESSEN THE EFFECT OR PUT PEOPLE TO WORK IN COMMUNITY IN ANY JOB THAT IS IN DEMAND? SURE, WE PREFER THOSE HIGH-PAYING JOBS BCAUSE THAT'S WHERE PEOPLE WANT TO GO, BUT WE ALSO HAVE TO MIX THAT WHERE THOSE JOBS WHERE THERE'S A HIGH DEMAND AND MAYBE THE PAY ISN'T AS GOOD BUT STILL PUTTING SOMEWHERE FROM $0 A YEAR TO $24,000 A YEAR WHICH IS A HUGE INCREASE.
>> JUST TO REMIND THERE'S 39,000 CHILDREN, FOUR YEARS OLD, UNABLE TO GET INTO PRE-K PROGRAMS BECAUSE THERE ARE NOT ENOUGH TEACHERS.
THAT AFFECTS FAMILIES AND THEIR INCOME.
THIS IS AN EFFORT RALLY TO RESPOND TO A COMMUNITY NEED WHERE THEY SAID WE WILL NOT SURVIVE THIS COMMUNITY IF WE CAN'T GET PEOPLE GRADE LEVEL BY THE TIME THEY ARE ENTERING FIRST GRADE OR READING GRADE LEVEL BY THIRD.
THE INTENT OF THE SCHOOL DISTRICTS IS TO TAKE THE DOLLARS THAT THE GOVERNOR GAVE THEM A COUPLE YEARS AGO TO PUT IN AFULL DAY OF DAYCARE BUT THEY CAN'T DO IT OR EARLY CHILDHOOD PROGRAMS, THEY CAN'T DO IT, THERE'S SIMPLY NOT ENOUGH TEACHERS FOR THAT TO HAPPEN.
THIS WILL TAKE YEARS TO GET THERE.
THAT'S THE GOAL, THE EXISTING PIPELINE ISN'T WORKING.
>> CORPORATE SPONSORS WORKING WITH US ON THE COMMERCIAL HVAC PROGRAM?
>> WE PULLED A WHOLE GROUP TOGETHER AROUND THAT.
SOME FOLKS, YOU KNOW, LIKE SCOTT FERGUSON, WOULDN'T SURPRISE YOU IS ENGAGED IN THAT PARTICULAR EFFORT TO DO IT.
THERE ARE 178 JOB OPENINGS TODAY IN COMMERCIAL HVAC.
STARTING LOW OF $15 AN HOUR TO AROUND $40 AN HOUR.
>> WE DO RESIDENTIAL CERTIFICATES.
>> WE DO COMMERCIAL AT -- IN CONNECTION WITH C.D.F. BUT THAT'S A SPONSORED-PROGRAM ONLY.
YOU CAN'T WALK INTO THAT PROGRAM.
>> COMPENSATION, WHAT WE ARE LOOKING AT, FULL-TIME FACULTY, FLAT RIGHT INCREASE OF 22.15, FULL-TIME ADMINISTRATOR, WHICH IS ABOUT A 3% INCREASE.
WE HAVE ADJUSTMENTS IN THE I.T.
AREA BRINGING THOSE TO MARKET ESTIMATED $600,000 AND THEN THE PROFILE REVIEWS THAT WE WILL BE DOING DURING THE JEER.
AGAIN THIS IS WHAT WE STARTED ON.
UNDER THE EMPLOYEE SUCCESS, THEMATIC, THAT'S $7.3 MILLION.
WE REDUCED THAT BECAUSE WE GOT TO THE POINT OF ACTUALLY CALCULATING THIS AND AFTER PULLING OUT $5 MILLION WE PULLED OUT $5.2 OF THE BUDGET WORKSHOP.
>> WE ARE WORKING WITH FULL-TIME FACULTY O THAT AND THAT'S THE PROPOSAL WE HAVE RIGHT NOW.
THEY HAVE GIVEN US A PROPOSAL ALSO BUT THE FLAT-RATE INCREASE IS ONE OF TE THINGS THEY LOOK AT.
WHAT TENDS TO HELP IS THOSE LOWERING MIGHT SEE SOMETHING MORE THAN 3% AND THE HIGHER END OF THE SPECTRUM MAYBE NOT AS MUCH BUT IT DOES TEND TO HELP.
WE WILL TLK ABOUT BOARD POLICY THAT ON SALARIES WE WORK DIRECTLY WITH THE FACULTY COUNCIL.
OBVIOUSLY IT'S THE BOARD'S DECISION.
[01:05:01]
RECEIVED FROM THE COUNCIL.>> AND AGAIN, I THINK THEY REALIZE THE LONGER YOU HAVE BEEN HERE, THE HIGHER YOU --
>> WHEN YOU SIGH AVERAGE 3%, DOES THAT MEAN SOME WILL BE GETTING MORE THAN 3%?
>> NO, IT'S AN ACROSS-THE-BOARD 3%.
>> THE FACULTY WILL AVERAGE 3% EVEN TOUGH A INDIVIDUAL MAY GET HIGHER OR LOWER DEPENDING ON THEIR CURRENT SALARY.
>> PAGE 17, I THINK WE MISSED THAT ONE.
I WAS IMPRESSED WITH THE NUMBERS OF STAFF.
BECAUSE AT THIS POINT IF WE ARE A TEACHING INSTITUTION, IT LOOKS LIKE WE ARE STAFFING INSTITUTIONS.
>> IT'S BEEN THAT WAY FOR THE LAST 40 YEARS.
I GO BACK TO THE OD PEOPLE I FIRST MET WHEN I CAME INTO HIGHER ED, THEY SAID WE USED TO RUN THIS PLACE WITH A DEAN AND A BUNCH OF FACULTY.
ALL THE RULES AND REGULATIONS THAT COME OUT OF WASHINGTON AND AUSTIN, THAT'S NOT THE CASE ANY MORE.
IF YOU WANT TO GET ME ON MY SOAP BOX TAT'S ONE PLACE TO DO IT.
HAS INCREASED THE AMOUNT OF STUFF LET ALONE THE REPORTING AND INFORMATION WE HAVE TO GET BACK.
PART OF THAT IS ALSO THE WAY WE ARE TODAY.
LET'S GO BACK TO TALKING ABOUT WHAT WE ARE TRYING TO DO AND THE MARKET WE ARE TRYING TO SERVE CONSUMERS.
WE ARE ALSO DEALING WITH STUDENTS WHO ARE NOT PREPARED TO GO TO COLLEGE.
THEY REQUIRE MORE HAND HOLDING.
SO THAT DOES REQUIRE MORE STAFF.
BUT THERE'S NOT A COLLEGE OR UNIVERSITY IN THE UNITED STATES THAT DOESN'T LOOK LIKE THAT.
>> THERE WAS A COMMENT ON THE LAST BOARD MEETING SO I DID A LITTLE RESEARCH ON THAT, THE BEST PRACTICE, COMMUNITY COLLEGE AND UNIVERSITIES, AVERAGE RATIO FOR FACULTY IS ROUGHLY 20-25% OF FACULTY TO STAFF, AND WE ARE RIGHT AT 24%, SO WE ARE WITHIN RANGE FOR BEST PRACTICES.
>> WHAT'S THE DEFINITIONAL DIFFERENCE BETWEEN ADMINISTRATORS AND STAFF?
>> WE MOVED 200 SOME ODD FOLKS FROM ADMINISTRATION TO STAFF BECAUSE IN EFFECT THEY WERE NOT IN SUPERVISORY TYPE OF POSITION.
THEY WEREN'T OVERSEEING OPERATIONS, BASICALLY.
THAT'S WHERE WE LOOK AT, CLASSIFIED STAFF ADMINISTRATOR, IT DEPENDS.
IT INVOLVES MORE COMPLEX SUPERVISORY --
>> REALLY AS WE TRANSITIONED OUR TOOLS, PAY SCALE WHICH ALLOWED US TO DO COMPARISONS AND USE THEIR DEFINITION STANDARD ACROSS THE NOT ONLY HERE BUT OTHER BUSINESSES AS WELL.
>> YOU SAY OH, WE ARE INCREASING ADMINISTRATORS.
BUT THE NUMBER OF ADMINISTRATORS GOING DOWN BECAUSE THEY ARE BEING RECLASSIFIED AS STAFF.
>> NOT AS MUCH AS WE DID TWO YEARS AGO.
THAT'S WHERE THE MAJORITY OF PEOPLE MOVED TYPICALLY FROM AN ADMINISTRATIVE POSITION TO STAFF.
THERE'S AN ONGOING REVIEW DOING THE JOB PROFILE AND WETHER OR NOT THEY MEET THE CRITERIA.
WE ARE STARTING TO RUN BEHIND SCHEDULE.
[01:10:03]
WE ARE WORKING ON DEFINING DISTRICT-WIDE DEFERRED MAINTENANCE MODEL WE WANT TO BRING YOU ALONG WITH THE CAPITAL BUDGET BUT WE AREN'T GOING TO FORGET ABOUT OUR DEFERRED MAINTENANCE.WE HAVE ON THE STREET AN R.F.Q.
TO HELP US DEVELOP THAT EDUCATIONAL PLAN WE WILL USE DISTRICT-WIDE AS THE DRIVING FORCE AND INTEGRATED NETWORK MASTER PLAN MODEL WE SHOWED YOU LAST MONTH.
SO WE HAVE ON THE AGENDA, IN THE REGULAR MEETING --
>> LIST OF DEFERRED MAINTENANCE PROJECTS.
>> OLD LIST OF $86 MILLION WE HAVE.
BUT WE DON'T HAVE A NEW LIST YET.
>> MAYBE THIS TIME LAST YEAR, OR SEPTEMBER THAT YOU ARE WORKING ON A NEW DEFERRED MAINTENANCE LIST AND I TINK WE WERE PROMISED THAT IN OCTOBER OR NOVEMBER?
>> I CAN'T REMEMBER BUT WE ARE BEHIND GETTING THAT LIST DONE.
>> ONE THING WE WERE HOPING MAYBE NOT THIS YEAR BUT NEXT YEAR IS A SEPARATE CAPITAL BUDGET INCLUDING OUR DEFERRED MAINTENANCE TO LOOK AT OUR CAPITAL FINANCING SOURCES FOR OPERATIONS, IS THAT SOMETHING YOU SEE US ACHIEVING IN THE 2019-2020 OPERATING BUDGET?
>> TWO PARTS TO THAT, ONE, WE KNOW THERE WILL BE IMMEDIATE NEEDS OF TINGS WE NEED TO DO.
JUST LIKE WHAT WE ARE DOING WITH THE I.T., POLICE AND PUBLIC SAFETY PROJECT.
I BELIEVE THERE ARE CERTAIN THINGS WE WILL NEED TO DO AS WE ARE RAMPING UP THE NUMBER OF EARLY COLLEGE HIGH SCHOOLS.
THERE WILL BE SOME REMODELING WE WILL PROBABLY NEED TO DO.
WE HAVE ASKED IN WORKING WITH THE B.P.B.S.'S AND COLLEGE PRESIDENTS TO START LOOKING AT SOME OF THOSE IMMEDIATE NEEDS TO BRING THAT CAPITAL BUDGET TO THE BOARD HOPEFULLY BEFORE WE ARE HALFWAY THROUGH THIS YEAR, WE COULD HAVE THAT.
THEN THE PART WHERE WE ARE TALKING ABOUT ALL THE OTHER G.O. BOND ISSUES AND EVERYTHING ELSE WE ARE DOING, A MUCH BIGGER PROGRAM WE ARE GETTING THE EDUCATIONAL PLAN TO HELP US DRIVE WHAT WE ARE GOING TO DO ON FACILITIES.
BECAUSE THERE ARE DUPLICATE REQUESTS IN THOSE FACILITY MASTER PLANS.
WE'VE GOT TO MAKE SOME DECISIONS WHERE WE ARE GOING TO PUT THOSE PROGRAMS BECAUSE WE JUST CAN'T AFFORD TO DO EVERYTHING.
>> SO WE WILL HAVE A CAPITAL --
>> WE WILL HAVE THE START OF ONE, YES.
AND TWO, A DEFERRED MAINTENANCE LIST IN THERE.
BECAUSE WE HAVE $8 MILLION IN THE BUDGET RIGHT NOW.
I DON'T WANT TO GIVE UP ANY OF THAT $18 MILLION AND I WOULD LIKE TO FIND A WAY TO ADD $6-$10 MORE TO IT.
BECAUSE AS WE TALKED ABOUT BEFORE, IF WE WANT 2-2.5% OF OUR REPLACEMENT VALUES IN DEFERRED MAINTENANCE WE NEED TO BE SOMEWHERE BETWEEN $20-$24 MILLION WORTH OF DEFERRED MAINTENANCE PROJECTS GETTING DONE EVERY YEAR.
>> FOLLOW-UP, WHEN CAN WE EXPECT TO SEE THE DEFERRED MAINTENANCE WITH THE UPDATE?
>> I HEARD WE WERE STILL MISSING A COUPLE COLLEGES.
>> I THINK WE OUGHT TO HAVE SOMETHING HERE IN THE NEXT COUPLE MONTHS.
BUT THERE'S TWO PARTS TO THIS.
ONE, THAT'S THE DEFERRED MAINTENANCE LIST COMING FROM THE LIST OF COLLEGE COMMUNITY DIRECTORS.
IN CEDAR VALLEY THEY DID A GOOD JOB IN THE MASTER PLAN OF HAVING A FIRM THAT DID THAT FACILITY CONDITION INDEX WHICH REALLY NOT ONLY LOOKED AT THE DEFERRED MAINTENANCE BUT ALSO HELPED PRIORITIZE BASED ON CERTAIN KNOWN CRITERIA OF HOW THESE THINGS NEED TO GET DONE.
I THINK THEY MIGHT HAVE HAD BETTER ESTIMATES IN THERE.
WE NEED SOME OF THAT TYPE OF WORK.
THAT WILL BE THE ONGOING PROCESS.
WE ARE STILL GOING TO GET THAT LIST OF FACILITY DIRECTORS BUT THEY DON'T NECESSARILY COME IN ANY PRIORITY ORDER.
>> WERE WORKING OFF BUT IF THE QUESTION WAS ASKED LAST YEAR
[01:15:01]
AROUND THIS TIME AND THIS LIST STILL HSN'T COME FORWARD, WHO DO YOU GET TO KNOW WHICH BOARD MEMBERS ARE ASKING TO FOLLOW-UP ON?>> USUALLY THAT'S WHAT WE HAVE NOTES FOR AND TAKING THESE MINUTES AND A COUPLE PEOPLE I HAVE HIDDEN IN THE AUDIENCE SUPPOSED TO BE TAKING THOSE NOTES AND REMINDING ME.
WHEN MORE OR LESS DO YOU THINK WE COULD HAVE A LIST?
>> IF WE HAVE AN UNPRIORITIZED LIST, JUST A ROUGH LIST, I THINK WE OUGHT TO HAVE SOMETHING IN THE NEXT COUPLE MONTHS.
THERE WERE TWO COLLEGES STILL OFF THE LIST.
SO I JUST COMMITTED TO THE PEOPLE IN THE BACK WHO TAKE THE NOTES FOR ME.
>> UNTIL HE IS REPLACED, WHO IS GOING TO BE RESPONSIBLE FOR THE FACILITIES AREA?
>> HE'S GOT SOME GOOD PEOPLE IN THERE WHO WILL WORK WITH THAT.
WE WILL HAVE A PLAN FOR THAT AND AT SOME POINT IN THE FUTURE IF WE WANT TO DO THAT MOST OF THAT WLL NEED TO BE, PROBABLY NEED TO BE TALKED ABOUT IN CLOSED SESSION.
IF YOU ARE TALKING ABOUT AN INDIVIDUAL PERSON.
>> WELL, I'M ASKING A GENERAL QUESTION BECAUSE WHEN IT COMES TO PUBLIC ENTITIES AND THEIR FACILITIES, WE ARE REQUIRED TO HAVE PROFESSIONALLY LICENSED PEOPLE ON BOARD.
>> WE DON'T HAVE TO HAVE A PROFESSIONAL LICENSED ARCHITECT AS AN EMPLOYEE BUT WE HAVE TO CONSULT FOR PROJECTS.
IT DOESN'T HAVE TO BE AN EMPLOYEE OF THE DISTRICT, BUT IT COULD BE OUTSIDE.
BUT I WAS LOOKING AT PROFESSIONAL FACILITIES, AND PUBLIC BUILDINGS, WE HAVE TO HAVE LICENSED AND CREDENTIALED PROFESSIONALS THAT ARE RESPONSIBLE --
>> SO THE DISTRICT, WHICH BECOMES, BASICALLY, IT'S THE BOARD'S PERSON TO MAKE SURE WE ARE ADHERING TO STATE LAW AS IT PERTAINS TO OWNING AND MAINTAINING PUBLIC BUILDINGS.
BUT WE WILL HAVE THIS DISCUSSION, I SUGGEST, AT ANOTHER TIME.
SINCE HE IS GETTING READY TO RETIRE, I WOULD THINK THAT WE SHOULD HAVE IT PRETTY PROMPTLY TO MAKE SURE THAT WE ARE COMPLYING WITH THE PUBLIC LAWS THAT GOVERNS OWNERSHIP OF PUBLIC BUILDINGS.
>> THAT WOULD COME TROUGH FINANCE SINCE THAT'S ALSO PERSONNEL, RIGHT? AS LONG AS WE MAKE NOTE OF THAT.
>> I WOULD THINK IT WOULD BE MORE OR LESS ON THE GOVERNANCE ISSUE.
BUT I THINK IT'S A DISCUSSION THE FULL BOARD NEEDS TO HAVE SO WE UNDERSTAND.
AND I KNOW WE HIRE ARCHITECTS AND ENGINEERS BUT THOSE ARE UNDER CONSULTING --
I'VE HAD SOME INQUIRIES ABOUT WHAT WE PLAN TO DO IN THAT AREA AND IT HASN'T BEEN A DISCUSSION AMONGST THE BOARD ABOUT IT.
AND I WAS POINTED TO STATE STATUTES AND LAWS I DID GO BACK AND TAKE A LOOK AT THEM.
I'M NOT SURE EVERYBODY IS AWARE OF THEM BT I WANT TO MAKE SURE THAT ISSUE GOT PUT ON THE TABLE.
>> THE GOOD NEWS IS, YOU MENTIONED WE HAVE PEOPLE WHO CAN DO, WE AREN'T GOING TO BE OUT THERE JUST COMPLETELY LOST.
>> ON THE AGENDA, INCLUDED IN THAT, IS AN APPROVAL OF THE BUDGET WE PROPOSED HERE.
WE DID THIS FOR THE FIRST TIME LAST YAR APPROVING A BUDGET IN AUGUST WHICH WAS A VERY GOOD IMPROVEMENT TO THE SYSTEM, SO WE HIGHLY RECOMMEND THAT THE BOARD, WHEN IT COMES UP IN THE
[01:20:01]
AGENDA, THE ITEM APPROVE THIS BUDGET.IF WE HAVE TO MAKE CHANGES TO ANY OF IT, WE WILL BRING THOSE BACK TO YOU AS A BUDGET REVISION WHICH THE BOARD CAN THEN APPROVE AT THAT TIME.
>> SO WE DO HAVE A COMPLETE T.A.V.
WE KNOW EXACTLY WHAT IT WILL BE?
WE HAVE THE CERTIFIED NUMBERS AND THAT'S WHAT WE BASE OUR REVENUES ON BUT THE T.A.V. IS A MOVING TARGET.
THEY CHANGE THE VALUES OF IT EVERYDAY BASED ON WHAT HAS HAPPENED.
>> WE LCK IT IN BASED ON THAT JULY --
>> WITH THAT THOUGHT IN MIND, IS THERE ANYTHING IN THE BUDGET ANYBODY WOULD PROPOSE FOR A CHANGE?
THE QUESTION I HAVE UNDER ./D.O.
WE WILL BE SPENDING $1,010,000 AND REPAIRS AND REHAB DESIGNATED RESTRUCTURE, R.E.S.
THAT WILL BE WHEN WE FIND OUT WHAT OUR LIST OF --
>> THIS IS THE BUDGET THAT WE USE TO JUST DO REPAIRS AND RENOVATION THROUGH THE DISTRICT, NOT CAPITAL ITEMS.
>> ACTUALLY THE DISTRICT OFFICE IS ON HOLD RIGHT NOW UNTIL WE FIGURE OUT WHAT WE ARE GOING TO DO.
HALF OF THAT IS FURNITURE AND HOPING UP THE AREAS THAT WE CURRENTLY HAVE THAT ARE WALLED OFF.
BUT WE ARE STILL LOOKING AT THOSE THINGS.
THOSE ARE IN THE EXTENDED PLAN FUNDS.
>> COME BACK TO THE BOARD [INDISCERNIBLE]
I REMEMBER THAT THERE WAS SOMETHING IN THE NOTES ABOUT, WE APPROVED THE BOARD BOOK AND WE THEN HAVE ALLOWED ALL OF THIS TO GO IN.
WE ARE SPENDING $400,000 FOR 2020 CONFERENCE DAY? THAT'S ON PAGE 50.
>> THAT'S WHAT THE TOTAL BUDGET IS FOR CONFERENCE DAY.
>> WE MAY NOT SPEND ALL THAT MONEY BUT THAT'S THE AMOUNT BASED ON WHAT WE HAVE SEEN PREVIOUS YEARS.
INCLUDES TE CONFERENCE HALL, THE MEALS, PARKING, EVERYTHING.
>> I THOUGHT SOMETHING $239,263 WAS THE LAST ONE?
>> WE HAVE SEEN MORE PARTICIPATION FROM EMPLOYEES AND EACH TIME WE ADD A PERSON THE COST GOES UP.
>> I THOUGHT IT WAS A REQUIREMENT FOR EVERYONE TO SHOW UP?
>> WE WORKED THE OTHER END OF IT, WE COULD GET THE INFORMATION.
BECAUSE THE OCCUPANCY RATES ARE GOING UP, THEY ARE CHARGING MORE.
>> THE URBAN PLANNING INITIATIVE.
WHAT IS THAT ONE? THAT'S AGAIN, PAGE 50.
WHEN WE TALKED ABOUT THE PRESENTATION, WE HAVE GIVEN LOOKING AT THE POTENTIAL WHAT DO WE DO WITH THE EXCESS LAND THAT SURROUNDED OUR CAMPUSES, WE HAVE SELECTED ONE CAMPUS WHICH IS EAST FIELD WHICH BASICALLY HAD THE BEST PRESENTATION WHAT WE CALL THAT CAMPUS GATEWAY TO GIVE A FEASIBILITY OF WHAT COULD GO INTO THOSE TYPE OF SPACES SO WE COULD COME BACK TO THE BOARD AT A FUTURE DATE AND DECIDE IF WE WANT TO GO FORWARD WITH THIS.
WE ARE SCHEDULING WHEN YOU GO TO A.C.T. TO GO TO THE COLLEGE IN NEW YORK THAT IS DOING SOME SIMILAR THINGS.
NOT AS MUCH MIXED USE BUT ALSO JUST HOW THEY ARE DEALING WITH THE DOWNTOWN COLLEGE OF PUTTING THOSE TYPE OF SERVICES ALL AROUND.
[01:25:04]
$1,003,000 FOR THE LAMAR BUILDING.>> YOU SAID THAT WAS ON HOLD, RIGHT?
>> DESIGN RENOVATE OFFICE SPACE?
THAT'S THE SAME ITEM THAT WE HAVE IN THERE, WE JUST HAVE THEM IN TWO PLACES.
THEY FELL UNDER TWO DIFFERENT CATEGORIES.
>> I'VE GOT QUESTIONS ABOUT EVERYTHING.
I THOUGHT THIS WAS INTERESTING.
HOW ABOUT THE PORT-O-POTTY CHARGE?
>> THOSE ARE CONTRACTUAL AGREEMENTS.
THAT'S NOT AN INDIVIDUAL THING.
THAT'S WHERE WE HAVE GONE OUT AND SOURCED THE LOWEST PRICE WE COULD GET WHEN WE HAVE TO RENT THOSE FOR SPECIAL EVENTS.
>> THESE ARE SPECIAL EVENTS? OKAY.
>> I WANT CLARIFICATION, THAT'S ALL I WANT AND THAT MAY SOLVE THIS PROBLEM.
WHEN YOU SAY THE BUDGET BOOK IS FOR APPROVAL, HOW D YOU MEAN THAT, OR WHAT ARE YOU TALKING ABOUT? I KNOW OVER THE LAST YEAR I HEARD WELL IT WAS IN THE BUDGET BOOK.
WHEN I LOOKED AT IT, IT WAS IN TERMS OF APPROVING THE RGULAR PLAIN OLD BUDGET.
SO WHAT ARE YOU PROPOSING WITH THE BUDGET BOOK NOW?
>> THERE ARE SEVERAL SECTIONS OF THE BUDGET BOOK.
SEVERAL OF THEM, CORRECT, ARE INFORMATIONAL.
WE ALREADY APPROVED WITH A SELECT NUMBER OF VENDORS WTH R.F.P.'S THIS IS WHO WE WILL USE AND THESE ARE THE PRICES WE WILL PAY.
THERE ARE ITEMS IN THERE ROUTINE MAINTENANCE ITEMS. WHEN WE GO GET TOILET PAPER AND OTHER THINGS, WE ALREADY KNOW WHAT WE ARE GOING TO DO.
THOSE LINE ITEMS WE PUT IN HERE, WE KNOW WHERE WE ARE GOING TO SOURCE THEM FROM.
WE BELIEVE YOU ARE ACTUALLY APPROVING THOSE LINE ITEMS. WHETHER THEY ARE SPECIFIC ENOUGH TO SAY WHAT WE ARE ACTUALLY PROCURING.
IF IT'S NOT, WHAT WE DO IS BRING THOSE BACK TO THE BOARD AS INDIVIDUAL LINE ITEMS FOR APPROVAL.
THIS BDGET BOOK HAS BEEN INFORMATION, THE CONTRACTS, AS THE DETAIL ON WHAT'S IN THE BUDGET.
BUT NOT MADE -- SEE, WHAT I DON'T WANT TO GET INTO AND WHAT I'M AFRAID OF, IS THAT I DON'T WANT -- IT ALL SAYS PROPOSED ANYWAY.
SOMETHING IS DONE, THE BOARD DOESN'T KNOW ABOUT IT AND THEN, AND I'VE HEARD A COUPLE TIMES AND HAVEN'T REALLY SAID ANYTHING, WELL IT WAS IN THE BUDGET BOOK.
YOU KNOW? BUT I ASSUME WHAT WAS IN THE BUDGET BOOK WAS CURRENT AGREEMENTS, OR AGREEMENTS YOU HAD PRETTY MUCH, THEY WERE TRANSACTIONS THAT WERE ALREADY MADE OR ALREADY IN PLACE WHICH WOULD BE INFORMATION TO ME.
>> A FEW MONTHS AGO WHEN WE GOT INTO THE POLICY DISCUSSION ON AUTHORIZATIONS, RIGHT? WHAT I UNDERSTOOD IS WE ARE CHANGING THE AUTHORIZATION LEVELS.
THE CHANCELLOR HAS HIS AUTHORITY, $100,000, AND SO FORTH.
BUT THE BUDGET BOOK, IT MAY BE INFORMATION BUT IT'S ALSO AUTHORIZATION WHERE THERE'S AN IDENTIFIED VENDOR AND SPECIFIC TYPE OF SERVICES, WE, AS A BOARD, ARE DELEGATING TO THE STAFF TO GO OUT AND GET THOSE CONTRACTS.
THAT'S WHAT I UNDERSTOOD THE PURPOSE OF THE BUDGET BOOK WAS.
AND THE FACT WE WERE CHARGED BY YOU TWO YEARS AGO TO FIND A WAY
[01:30:02]
TO SPEED UP SOME OF THE PROCESSES WE HAVE TO GET THINGS DONE QUICKER BECAUSE YOU ALL HAD COMPLAINTS HOW LONG IT TOK US, SO AS FAR AS CONTRACTS AND THAT TYPE OF THING, BECAUSE THERE'S PROBABLY ABOUT A 3-MONTH DELAY BY THE TIME SOMETHING GETS ON THE CHANCELLOR OR JOHN'S DESK TO THE TIME IT GETS SUBMIT TODAY THE BOARD.THAT'S WHAT WE WERE TRYING TO DO IS SPEED UP SME OF THOSE TRANSACTIONS.
>> DO YOU HVE SOMETHING THAT WOULD KEEP YOU FROM APPROVING IT? I WOULD LIKE TO QUESTION SOME THINGS OR DO THINGS DIFFERENTLY, LIKE SEPTEMBER, OCTOBER, NOVEMBER [INDISCERNIBLE] CHASING THIS BOOK AROUND.
>> ONE OF THE CONCERNS I HAD ABOUT IT AND I EXPRESSED THIS TO THE CHANCELLOR IS THAT LAST NOVEMBER, DECEMBER OR SOMEWHERE IN THERE, IT WAS SOMETHING ON THE AGENDA AND I WANTED TO CHECK THAT BUDGET BOOK TO SEE WHAT IT SAID, IT HADN'T BEEN UPDATED.
SO, YOU KNOW, ANY CURRENT EXPENDITURES, YOU KNOW, WE GET A BUDGET BOOK BUT THAT WASN'T BEING MAINTAINED IN A TIMELY FASHION SO IF ANYTHING CHANGED IT WAS IN THERE AND IF YOU HAD A QUESTION YOU COULD GO BACK AND SEE, OKAY IT CHANGED ON SUCH AND SUCH DATE, THIS IS NOT THE CORRECT AMOUNT.
THAT WAS ONE OF THE CONCERNS THAT I HAD IS THE FACT IT WASN'T BEING KEPT UP.
SO AT THAT POINT, IT WAS OF NO VALUE TO ME FOR WHAT I WAS LOOKING AT.
I TURNED AROUND AT THE SAME TIME IT HAPPENED AND I POINTED OUT TO THE CHANCELLOR THIS HAS NOT BEEN UPDATED.
>> IS THIS AVAILABLE ONLINE? I IMAGINE UPDATING IT AND GIVING A WHOLE BOOK EVERY TIME IT HAS TO BE UPDATED WOULD BE A LITTLE CUMBERSOME, HOWEVER, IF WE HAVE A SOURCE TO GO TO, SO WE HAVE THE MOST RECENT? ARE YOU ALL UPDATING IT ONLINE?
>> TWO TRUSTEES -- IF WE BRING SOMETHING TO THE BOARD AND IT'S APPROVED TO THE BOARD, WE DON'T GO BACK AND UPDATE THE BUDGET.
THAT'S THE REASON WE BRING IT TO THE BOARD.
OR IT EXCEEDED THE AMOUNT IN THERE.
YOU ARE CORRECT, WE COULD DO A BETTER JOB UPDATING THAT, IT TAKES US A LOT OF WORK TO PUT THE THING TOGETHER, IT'S NOT MECHANIZED.
THERE ARE PROBABLY WAYS WE COULD DO THINGS BETTER BUT WE JUST MENTIONED TO THE VICE PRESIDENT WE HAVE TO FIND A BETTER WAY TO GET THIS DONE.
>> YOU JUST SAID SOMETHING RIGHT THERE THAT GAVE ME SOME CONCERN.
YOU SAID IT MAY HAVE EXCEEDED THAT.
WELL, IF YOU ARE ASKING ME TO APPROVE THIS, IN MY HEAD, IT SAYS NOTHING SHOULD EXCEED WHAT YOU HAD ME APPROVE THIS BUDGET BOOK FOR.
IF IT EXCEEDED THE AMOUNT IN THE BUDGET BOOK, IT COMES BACK TO THE BOARD.
THAT'S WHAT WE HAVE DONE THE LAST TWO YEARS.
I HEARD IT MAY HAVE EXCEEDED WHAT WAS IN THE BUDGET BOOK.
>> IT'S KIND OF A SEGUE TO SOMETHING ON YOUR AGENDA LATER BUT THE C.F. LOCAL POLICY THE BOARD HAS BEN TALKING ABOUT, THE CONTRACTUAL DELEGATION AUTHORITY,S THERE'S AN AMENDMENT THAT ADDRESSES THESE CONCERNS.
TO TELL YOU WHAT WE HAVE DONE TO ADDRESS IT BECAUSE AT THE TIME OF THE APPROVAL OF THE BUDGET WHICH JUST GIVES FORECAST FOR THE COMING YEAR, NOT EVERY EXPENDITURE THAT'S PROPOSED COULD BE IDENTIFIED TO A SPECIFIC VENDOR AT THAT TIME.
WE HAVE ADDED A PROVISION TO C.F. LOCAL THAT SAYS NOT LESS THAN QUARTERLY, THE STAFF WILL REPORT TO THE BOARD ON THOSE BUDGET BOOK LINE ITEMS THAT DIDN'T HAVE A VENDOR IDENTIFIED WHO THE VENDOR WAS THAT WAS CONTRACTED WITH, PURSUANT TO THAT BUDGET AUTHORITY IN THE BUDGET BOOK, APPROVED AS PART OF THE BUDGET BOOK SO YOU WILL GET THAT REPORT.
SO THAT'S THE WAY WE TRIED TO ADDRESS THAT.
I PUT IN THE LANGUAGE IN THERE, I DID THAT BECAUSE JOHN SAID, WE'VE GOT A LOT OF TRANSACTIONS, THERE'S A LOT OF -- I DIDN'T WANT TO UNDULY BURDEN THEM BY REPORTING TO YOU ON A MORE FREQUENT BASIS BUT
[01:35:01]
CERTAINLY QUARTERLY YOU WILL GET THAT UPDATE.SINCE TE BUDGET BOOK PROCESS HAS COME IN PLACE A COUPLE YEARS AGO NOTHING HAS EXCEEDED WITHOUT IT COMING BACK TO THE BOARD.
LOCAL THAT'S BEFORE THE BOARD NOW FOR CONSIDERATION THAT SETS FORTH A DEFINITION OF MATERIALITY BASED ON THE AMOUNT IN THE BUDGET BOOK SO WE ATTEMPTED TO PUT MORE DEFINITION FOR THE BOARD, I KNOW I WAS SPEAKING OUT OF TURN IN TERMS OF THE AGENDA BUT WE SEGUED.
>> I ASKED THAT A LINK BE ADDED WHERE IT'S EASY TO FIND THE BOARD OF TRUSTEES BECAUSE YOU HAVE TO GO IN THE BACK AND ALL THIS KIND OF STUFF.
BUT I'M NOT SURE HOW TIMELY THE UPDATE OF THE WEB PAGE IS IN SOME AREAS ARE BEING KEPT.
NOT UNLESS 2018 GOT CHANGED BETWEEN 1:00 AND NOW.
>> CAN I MAKE A COUPLE SUGGESTIONS REAL QUICK? THE BOARD PASSED THIS BUDGET AS IT APPEARS.
THE POLICY AS PROPOSED WOULD SUGGEST QUARTERLY REPORTING.
CAN THE BOARD IN THE BOARD MATERIALS ON A QUARTERLY BASIS RECEIVE AN UPDATE ON ANY CHANGES ABOVE THE AUTHORIZATION, BRING THOSE TO THE BOARD, IF THEY ARE DROPPED THEY OUGHT TO BE REFLECTED IN THE RECORD AND UPDATED QUARTERLY.
BUT BELOW THE AUTHORIZATION, WHERE SOMEONE WAS SHOWING WHERE THE CHANGE WAS MADE, THAT ADDENDUM AND YOU COULD ROLL IT.
FIRST, SECOND, THIRD, FOURTH QUARTER UPDATE.
THAT WAY THE BOARD WOULD BE FULLY APPRISED AT LEAST ON A QUARTERLY BASIS THE CURRENT STATUS OF THE CONTRACTUAL OPERATIONS WE HAVE MADE.
THAT WAS MY INTENTION PROPOSING THAT LANGUAGE.
BUT THE OPERATIONAL ASPECTS I WILL DEFER TO THESE FOLKS BUT THAT'S MY INTENT.
>> THAT'S WHAT IT WILL PROPOSE QUARTERLY REPORT.
>> SO WHEN WE GO IN AND LOOK AT THE BUDGET BOOK AND IT'S THE END OF THE SECOND QUARTER AND IT HASN'T BEEN UPDATED --
>> WE WILL JUST GET A 1-OR 2 PAGE DEAL.
IF THEY ARE ABOVE THAT RULE WE WILL SEE WHAT CHANGES HAVE BEEN MADE WITH SMALLER VENDORS.
>> I'M SAYING UNTIL WE GET THAT UPDATE, IF THERE'S BEEN A CHANGE, LET'S SAY FEBRUARY, AND IT'S NOT THE END OF THE QUARTER YET AND WE QUESTION, LIKE TRUSTEE COMPTON HAD.
>> IF IT'S MORE THAN $100,000 WE WILL SEE IT.
BUT IF IT'S ONLY $50,000 AND I DON'T HEAR ABOUT IT UNTIL MARCH, I'M GOOD WITH THAT.
>> AS LONG AS WE UNDERSTAND THE GROUND RULES.
THERE HAVE BEEN A BRIEF MENTION ABOUT THE CONTRACTS AND WE HAD BEEN BUYING OF A STATE BILL THAT WE WOULD TAKE A LOOK AT WHAT PIECES OF BUSINESS WE MIGHT BE ABLE TO DESIGNATE FOR LOCAL BUSINESSES, RATHER THAN JUST BUYING UP THOSE STATE CONTRACTS S I WANT YOU TO PUT THAT ON THE LIST, THINGS WE NEED.
>> ALONG WITH THE VIABILITY --
>> ON PAGE 60, THE RICHLAND GARLAND CAMPUS.
GARLAND CHAMBER OF COMMERCE IS NOT THERE AS AN EXPENSE OR AN INCOME.
GARLAND CHAMBER OF COMMERCE IS JUST MISSING.
[01:40:22]
>> WHY AREN'T WE CHARGING THEM FOR THE SPACE?
>> THAT WAS AN AGREEMENT MADE WHEN THEY DID THIS DURING THE BOND PROGRAM, BRINGING THIS FORWARD, I THINK IT WAS 2008.
>> WE NEED TO LOOK AT THAT CLOSER.
>> THERE'S A RENEWAL 2019 AND WE ARE GOING TO START THAT PROCESS.
>> IF I REMEMBER CORRECTLY THAT WAS A BENEFIT WE GET FROM HAVING BEEN THERE BECAUSE THE MEMBERS THAT NEED THE SERVICES FOR GARLAND COMMUNITY CAMPUS COULD PROVIDE THE TRAINING AND SERVICE ETC., WHILE THERE'S NO MONETARY CHANGE --
>> QUESTION, DO YOU HAVE MANY, MANY MORE? [LAUGHTER] MAYBE THEN WHAT WE COULD DO, HAVE YOU OFFER IN WRITING QUESTIONS ABOUT SPECIFIC LINE ITEMS THAT JOHN AND I CAN ANSWER.
IF THERE'S A SPECIFIC CONCERN YOU WANT TO BRING BACK A AN AMENDMENT TO THE BUDGET WE COULD HANDLE IT THAT WAY.
>> BROOK HAVEN AND ARMORED CAR SERVICE.
>> WE HAVE ARMORED CAR SERVICE --
>> THERE IS A SPECIFIC LINE ITEM, THERE'S NO REASON WE COULDN'T CONSIDER THEM AT OUR SEPTEMBER BOARD MEETING, RIGHT? IF ANY BOARD MEMBER WANTED TO BRING A AMENDMENT TO THE BUDGET.
>> IT'S ANY TIME DURING THE YEAR YOU THINK WE ARE DOING SOMETHING IN THE BUDGET THAT NEEDS TO BE CHANGED.
>> A QUICK COMMENT AND HAVING BEEN HERE BEFORE WE HAD THIS BUDGET BOOK AS CLEARLY DELINEATED AS THESE LNE ITEMS ARE, I APPRECIATE THE CLARITY OF THIS.
THIS IS A VERY CONCISE, VERY SUCCINCT, IT GIVES US AGOOD OVERVIEW OF WHAT THE ALLOCATED BUDGET IS FOR CERTAIN AREAS.
NOT WHAT'S BEING SPENT, BUT THE ALLOCATION AND THE, AND IT IT GOES OVER WE GET TO HAVE A SAY, IF IT GOES UNDER WE DON'T REALLY GET TO GIVE YOU KUDOS FOR THAT.
BEFORE WE BASICALLY GET SPREADSHEETS, WE WOULDN'T GET IT IN THE DETAILED WAY IT IS NOW.
I THINK IT'S A NEW WAY OF SEEING THIS, SO THAT MIGHT -- MIGHT HAVE TO FAMILIARIZE MYSELF WITH HOW IT'S SET UP.
SO MAYBE WHAT THE ACTUAL BUDGET IS, WHAT THE APPROVED VENDORS ALREADY ARE, ETC., TO MAKE US A LITTLE MORE COMFORTABLE, BECAUSE THIS IS MORE INFORMATION WE HAVE GOTTEN BEFORE.
I KNOW IT TAKES A LOT OF HARD WORK BUT THANK YOU FOR ALL THAT HARD WORK, I'M SURE WE WILL CONTINUE TO HAVE QUESTIONS AND WE WILL CONTINUE --
>> I WANT TO THANK THE BOARD AGAIN FOR APPROVING OUR E-PROCUREMENT SYSTEM LAST MONTH.
MOST OF THESE ARE PROCUREMENT ITEMS. THAT SPEND ANALYSIS AND ALSO CHAIR COMPTON, OR TRUSTEE COMPTON LOOKING AT WHO GETS THIS STUFF, AS OPPOSED TO WHETHER WE JUST BUY THROUGH STATE CONTRACTS OR CO OPS BUT WE COULD ACTUALLY MANAGE OUR PROCUREMENT OF WHAT WE ARE DOING.
CHURNING SOME OF THESE REPORTS
[01:45:02]
AND UPDATES WE SHOULD BE ABLE TO REFERENCE THE PROCUREMENT ITEMS AND GIVE THE UPDATES ELECTRONICALLY.I'VE GOT A WHOLE LOT OF HIGH HOPES FOR WHAT WE ARE GOING TO DO WITH THAT SYSTEM THAT WILL PROVIDE U SOME MORE INFORMATION WHAT WE ARE DOING GOING FORWARD.
>> ANYTHING ELSE YOU WOULD LIKE TO ADD?
>> NO, I THINK THE SUMMARY IS GOOD.
OUR GOAL IS TO, AGAIN, CONTINUE TO PROVIDE EVERY YEAR MORE INFORMATION TO THE BOARD AND BE AS TRANCE -- TRANSPARENT AS
[3A. Approval of Brokers-Dealers]
WE CAN.>> WE NEED TO TALK NEXT ABOUT THE APPROVAL OF THE BROKER DEALERS.
THE LIST HASN'T CHANGED FROM LAST YEAR.
IT'S THE SAME PEOPLE, WE GO THROUGH A PROCESS EACH YEAR OF REVIEWING WHAT THEY HAVE DONE.
I DO HAVE SOME RATHER GOOD INFORMATION, I BROUGHT WITH ME.
WE ADDED, LAST YEAR, A NEW MINORITY VENDOR, BLALOCK VAN, WE MADE $340 MILLION, THEY HAD $70 MILLION, THEY ACCOUNTED FOR 7 OF 17 PURCHASES AND REALLY CAME THROUGH.
MOSTLY COMMERCIAL PAPER BUT THEY MOSTLY HELPED OUR AREA.
AS WE KNOW, COMMERCIAL -- WE WILL TALK ABOUT IT IN A MINUTE.
COMMERCIAL PAPER HAS BEEN ONE OF THE AREAS WE HAVE BEEN ABLE TO GET A GOOD RATE RATHER THAN TRYING TO LOCK SOMETHING UP 2 YEARS, 4 YEARS OR 6 YEARS, HIGHLY COMPETITIVE.
LOOKING AT THE YIELD ANALYSIS BETWEEN MATURITIES AND BEING ABLE TO STAY ON THE SHORT END OF THE CURVE.
WE HAVE THE SAME PEOPLE ON THE LIST AS IN PREVIOUS YEARS.
IF THERE'S NOT ANY QUESTIONS I WILL JUST MOVE THROUGH THIS.
>> ITHOUGHT LAST YEAR WE WERE GOING TO RMOVE WELLS FARGO?
BUT WELLS FARGO INVESTMENT SERVICES IS A DIFFERENT ARM THAN WELLS FARGO BANK AND WE SAW NO REASON --
>> THE WHOLE IDEA OF WELLS FARGO, THE NAME IS TAINTED.
THERE WAS MORE INFORMATION JUST LAST WEEK ABOUT WHAT THEY DID IN ACOMPUTER GLITCH THAT CAUSED FORECLOSURES.
THIS CONCERNS ME, THIS WHOLE WELLS FARGO.
IT BOTHERS ME TO EVEN SEE IT IN A LIST OF SOMEONE WE WOULD CONSIDER.
IT MIGHT BE COMPLETELY DIFFERENT FAMILY MEMBERS BUT IT CARRIES THE SAME LAST NAME.
IT BOTHERS ME VERY, VERY BADLY.
THEY HAVE HURT THEIR INTEGRITY.
WHEN YOU ARE PAYING BILLIONS OF DOLLARS IN PENALTIES BECAUSE OF WHAT YOU HAVE DONE AND HOW YOU HAVE DONE IT, THAT'S THE SAME FAMILY NAME.
>> JOHN, GIVE US SOME ASSURANCE, I HAVEN'T FOLLOWED CLOSELY BUT SEEM TO BE ENTERPRISE-WISE FROM THE BOARD, PERMEATED THE WHOLE ENTERPRISE.
>> TO SAY ONE DIVISION HERE IS NOT -- THOUSANDS OF PEOPLE IN THAT DIVISION PROBABLY HIGH INTEGRITY BUT JUST GIVE US ASSURANCE WHAT'S GOING ON AT THE CORPORATE LEVEL SHOULD GIVE US NO PAUSE DOING BUSINESS WITH THEM AS YOU PROPOSE.
>> I THINK I'M GOING OUT ON A LIMB IF I DO THAT.
WHAT I WILL TELL YOU, WE REVIEW THESE PEOPLE CONSTANTLY FOR WHAT THEY HAVE, AND WE WILL TAKE IT UNDER ADVISEMENT AGAIN WHAT THEY DO IN THE BROKAGE DIVISION.
>> THESE ARE IN THE DALLAS COMMUNITY RIGHT?
>> I REMEMBER I HAD A BUNCH OF FRIENDS AT ARTHUR ANDERSON, LOCALLY, I WOULD TUST WITH MY LIFE AND FINANCES, NOTWITHSTANDING SOMETHING HAPPENED IN ANOTHER PART OF THE COUNTRY.
BUT IF YOU KNOW THEM AND TRUST THEM, I'M GOOD BUT I JUST THINK --
>> WE TAKE YOUR COMMENTS SERIOUSLY.
BUT WE HAVE A GROUP THAT REVIEWS THESE.
SO IT'S NOT ANYONE INDIVIDUAL DECISION THAT'S MAKING THESE DECISIONS.
AND QUITE FRANKLY NONE OF US CAN BE INVOLVED WITH ANY OF THESE PEOPLE, SO WE BASICALLY HAVE A VERY HANDS-OFF REGULATED WITH THE S.E.C. AND FOLLOW WHAT THEY DO, SO WE DO TRY TO REVIEW THOSE.
[01:50:02]
FACULTY MEMBERS ABOUT J.P.MORGAN CHASE AND THEIR INVESTMENT PRACTICES BUT THE BANKING, NOT THE INVESTMENT SIDE.
IT'S A DIFFICULT THING NOW NOT HAVING SOMEONE ON THERE BUT TRUSTEE ZIMMERMANN WE WILL CONTINUE TO DO OUR REVIEW PROCESS OF THESE PEOPLE.
>> HOW MUCH OF OUR INVESTMENT DO WE HAVE WITH THEM?
>> I DON'T KNOW WHAT WE HAVE, WE MADE TWO PURCHASES WITH THEM LAST YEAR, BOTH U.S.
SECURITIES, $15 MILLION OUT OF $143 MILLION.
THEY WERE NOT BIG ON THE LIST.
>> ANY OTHER QUESTIONS ON THAT? ANYBODY ELSE? ANY OTHER QUESTIONS ON THAT?
>> THAT WILL BE ON THE AGENDA ITEM TO APPROVE THE LIST.
[3B. Approval of Date to Adopt Ad Valorem Tax Rate for 2018 Tax Year]
THE NEXT IS TALKING ABOUT WHAT WE HAVE ON THE NEXT ITEM IS THE ACTUAL -- IT SEEMS FUNNY, BUT IT'S SETTING THE DATE TO ADOPT A TAX RATE.WE HAVE TWO HEARINGS SCHEDULED FOR THE 21ST AND THE 28TH AND THEN WE ADOPT A RATE A THE SEPTEMBER MEETING.
THE PROPOSED RATE WE HAVE WE ARE GOING THROUGH IS THE SAME RATE WE HAVE HAD FOR FIVE YEARS AND THIS IS THE MINTENANCE AD OPERATION RATE BECAUSE THAT'S ALL WE WORK WITH AT THIS TIME IS THE MAINTENANCE OPERATION RATE OF 10.4 CENTS.
THE EFFECTIVE RATE 9.7 CENTS AND THE ROLL BACK RATE IS 10.5 CENTS.
WE WILL BRING FORWARD IN SEPTEMBER A LOWER RATE ON WHAT WE CALL THE INTEREST RATE SINKING, WHICH IS THE DEBT SERVICE RATE.IC IT WILL GO DOWN SLIGHTLY, WHICH IS WHAT WE FORECASTED LAST YEAR.
>> PROPOSING AND THE ROLL BACK?
ACTUALLY AT THE HANDOUT MATERIAL THAT WILL BE AT YOUR BOARD SEAT USUALLY IN THE FUNKY COLORED PAPER IT HAS THOSE RATES TAKEN T THE FIFTH DECIMAL POINT.
OURS IS 10.4, EFFECTIVE 9.7, ROLL BACK RATE 10.5.
>> A LITTLE HOUSEKEEPING ON THAT ISSUE, WHEN WE ARE IN THE BOARD MEETING, IF A BOARD MEMBER IS -- THAT LANGUAGE NEEDS TO BE READ FOR US TO MOVE TO ADOPT THIS.
I WILL NAME SOMEONE TO COME FORTH AT THEIR PLACE AT THE DIOSE TO READ.
[4A. Approval of Resolution Reflecting Review of Investment Policy]
>> YOU WILL BE ASKED TO ADOPT A RESOLUTION ON THE INVESTMENT POLICY AND STRATEGY WHICH ANNUALLY THIS BOARD MUST REVIEW THE STRATEGY.
THIS IS THE ACTUAL POLICY AND STRATEGY THAT'S INCLUDED.
AND I WILL JUST HIGHLIGHT A COUPLE OF THINGS.
ON THE FIRST PAGE, THE NUMERALS TO THERE, PRESERVATION SAFETY PRINCIPLE MOST IMPORTANT MAINTENANCE OF SUFFICIENTLY -- SUFFICIENT LIQUIDITY AND TRYING TO GET THE BEST YIELD ON DIVERSIFICATION OF INVESTMENTS.
ONE AND FOUR ARE PROBABLY OUR HIGHEST PRIORITIES.
WE USED MULTIPLE INVESTMENT TOOLS.
WE DO A BIG JOB OF DIVERSIFYING, WE DO THAT IN COMMERCIAL PAPER AND OTHER THINGS BUT EVERYTHING WE DO IS MAKING SURE WE HAVE PRESERVATION OF PRINCIPLE IS THE MOST IMPORTANT.
AT THE BOTTOM OF THAT PAGE AND CONTINUING ONTO THE SECOND PAGE ARE THE TEN ITEMS WE CAN INVEST IN.
NUMBER ONE TREASURY BILLS AND NOTES.
NUMBER FOUR PUBLIC FUNDS INVESTMENT POOLS AND NUMBER 10 COMMERCIAL PAPER, ARE WHERE THE MAJORITY OF OUR INVESTMENTS ARE MADE.
WE WILL CONTINUE THAT BECAUSE AS WE HAVE NOW AND STAYING ON THE SHORT END AND FAIRLY LIQUID WE WILL PROBABLY SEE OURSELVES BUYING MORE LONGER-TERM INVESTMENTS THIS YEAR AS RATES START INCREASING.
THAT'S WHERE WE SPEND MOST OF OUR TIME BECAUSE THEY ARE PAYING THE HIGHEST RATES RIGHT NOW.
ON PAGE 3, UNDER LIQUIDITY AND
[01:55:01]
DIVERSIFICATION, IT SHOWS WHAT PERCENTAGE OF OUR INVESTMENT POOL WE COULD INVEST IN ANYONE AREA, U.S. TREASURIES COULD BE 100%.C.D.'S WHICH WE CURRENTLY DON'T DO ANY OF.
MONEY MARKET MUTUAL FUNDS AT 50.
-- AUTHORIZED INVESTMENT POOLS, AT SOME POINT WE KEEP IT AT 85% BECAUSE OF THE WAY WE INVEST IN OTHER THINGS.
IT POSSIBLY COULD BE 100% BUT THERE ISN'T ANY WAY TO CHANGE THAT AT THIS TIME.
COMMERCIAL PAPER, ONE OF OUR BIGGEST AREAS WE LOOK AT NOW COULD HAVE A MAXIMUM MATURITY OF 181 DAYS, LESS THAN HALF A YEAR MUST BE RATED A -- OR P-1.
IT HAS MORE RULES BECAUSE COMMERCIAL PAPER, THAT'S WHY IT PAYS A LITTLE BIT BETTER RATE, WE DON'T PUT MORE THAN 30% OF OUR INVESTMENT PORTFOLIO INTO COMMERCIAL PAPER.
THE LONGEST QUESTION GO TYPICALLY ON A TREASURY OR AGENCY IS 6 YEARS HOWEVER THE AVERAGE OF MATURITIES MUST BE FOUR YEARS OR LESS.
MR. CHAIR, THAT'S MY SUMMARY OF THE INVESTMENT POLICY.
NO CHANGES WERE NECESSARY FOR THIS YEAR A WE ACTUALLY ARE SEEING THE INVESTMENT INCOME DOUBLE IN NEXT YEAR'S BUDGET.
WE THINK OUR CURRENT STRATEGY MATCHES WHAT WE NEED TO BE DOING.
>> WHAT'S THE DOLLAR AMOUNT OF
>> HAVE WE EVER HAD AN AUDIT --
>> YES AND INTERNAL, USUALLY WHEN THERE'S A CHANGE OF A PERSON I WILL CALL FOR AN INTERNAL AUDIT OF THE STAFF.
>> HOW LONG HAVE WE HAD THIS INVESTMENT POLICY?
>> WHEN THE P.F.I.A. WAS DONE, THIS HAS CHANGED OVER TIME BUT WE HAVE HAD TO HAVE A INVESTMENT POLICY 1995, I WANT TO SAY.
>> THE PUBLIC INVESTMENT FUNDS, I THINK THAT PASSED ABOUT '93 OR '95, IT'S TO BE REVIEWED ANNUALLY.
IT'S BEEN A BOARD POLICY SINCE THAT TIME.
>> AND TYPICALLY IT DOESN'T CHANGE UNLESS THERE'S SOME LEGISLATION.
>> YES, MA'AM AND THE LEGISLATION - IF THE LEGISLATION CHANGES DRAMATICALLY I HAVE TO REPORT THAT TO YOU.
LAST YEAR THEY HAD A SMALL CHANGE.
BUT OUR INVESTMENT POLICY DID NOT NEED TO CHANGE BECAUSE WE HAD IT SO AWARDED WE ALREADY INCORPORATED THE CHANGES.
>> I IMAGINE YOU ARE COMPLIANT.
>> WE ARE THE TWO INVESTMENT OFFICERS.
>> WHO DOES THE DAY-TO-DAMON TORING? -- DAY MONITORING.
>> JOHN HOPPER AND NAYAL [INDISCERNIBLE]
[4B. Approval of Amendment to Policy Concerning Purchasing and Acquisition: CF (LOCAL) Delegation of Contractual Authority and Signatory Authority]
>> C.F. LOCAL IS THE ONLY OTHER THING.
>> I THINK TEY HAVE HEARD FROM ME, BUT IF THERE'S QUESTIONS, I YIELD MY TIME TO THE GENTLEMAN FROM BUSINESS AFFAIRS.
WHEN IT SAYS THE CHANCELLOR WAS DESIGNEE -- HOW DOES THE BOARD KNOW -- [INDISCERNIBLE]
>> I ACTUALLY PUT A PROVISION IN THERE AS WELL.
IT SAYS THE CHANCELLOR'S OFFICE SHALL MAINTAIN A LIST OF AUTHORIZED DESIGNEES AND CONTRACTS, SUCH LIST WILL BE UPDATED AS NECESSARY AND SHALL ANNUALLY BE INCLUDED AS AN EXHIBIT TO THE COLLEGE DISTRICT BUDGET.
SO WE HAVE MADE PROVISION FOR THAT.
[02:00:02]
MAINTAINING A LIST OF THOSE DELEGATIONS, IF THERE ARE ANY BEYOND THE CHANCELLOR AND THERE ARE SOME WE HAVE MEMORIALIZED AND THEY WILL BE APPENDED TO THE BUDGET BOOK ON AN ANNUAL BASIS.>> CAN WE GET ONE IN A MONTH OR TWO?
THAT WON'T BE A PROBLEM AT ALL.
[5B. Finance Committee Notes for June 25, 2018]
ANY THOUGHTS OR QUESTIONS? ANY OTHER BUSINESS TO COME BEFORE THE FINANCE COMMITTEE? MADAM?>> GUIDING PRINCIPLES BEFORE AND IT'S IN THE NOTES, THAT'S WHEN THE PRESENTATION WAS MADE.
I'M CURIOUS TO WHERE WE ARE ON THAT.
ARE WE GOING TO LOOK TO ADOPT?
>> RECONCILING ALL THE GUIDING PRINCIPLES.
DOES STAFF HAVE A CLEAR UNDERSTANDING? DO WE STILL WANT THE GUIDING PRINCIPLES?
>> IF YOU RECALL, OUR STRATEGIC POWERS HAVE NOT CHANGED.
GUIDING PRINCIPLES ARE DECISIONS THAT DERIVE FROM THOSE AND MATCHED UP ACROSS THE PRESENTATION WE ARE SEEING IN TERMS OF HOW IT WORKS IN THE EDUCATION PLAN, THE OTHER PLANNING GOING ON.
IT'S REALLY A MEANS OF MAKING SURE WHEN WE ARE MAKING DECISIONS WE ARE DOING IT ON A CONSISTENT BASIS IN LINE WITH WHAT YOU ALL -- [INDISCERNIBLE]
>> WE JUST NEED TO UNDERSTAND WHAT THE PURPOSE IS.
>> THAT'S WHY I SUGGEST WE BE MINDFUL WHAT WE ASK FOR BECAUSE STAFF, TYPICALLY THEY ARE GOING TO GIVE IT TO US, SOMETIMES THEY FORGET.
>> THERE'S A LOT OF THOUGHT BEING PUT IN OUR ANNUAL PLANNING CYCLE, RIGHT? WE WERE MAKING A MOVE TO THE NETWORK MODEL, WE HAVE CLEAR STRATEGIC QUALITIES, MASTER PLANNING, FACULTY LOAD WORK, OUR BUDGETING WORK, HOW DOES THAT ALIGN AND WHAT TIME LINE.
>> I WILL GO THROUGH IT ALL IN CONTEXT SO YOU CAN SEE THE INNER RELATED PIECES OF THAT.
SEEING NO OTHER QUESTIONS, THE FINANCE COMMITTEE IS ADJOURNED.
>> EDUCATION AND WORKFORCE IS NEXT, IT'S 2:09, LET'S MEET BACK HERE AT 2:20.
* This transcript was compiled from uncorrected Closed Captioning.