BAC Summary for 3-12-13 BAR
Monday, March 09, 2015
8:11 AM
BAC met February 19-20 at the State Board.
New methodology for allocating among colleges. Nick Lutes
Change in method designed to address 5 perceived problems:
1.
2.
3.
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5.
Not enough performance-based
Wide variation in FTE funding without rationale
No recognition for higher-cost programs
Enrollment targets not adjusted effectively leaving chronic over and under-enrollment
No focus on use of agreed-upon enrollment adjustments to produce equitable distribution
New Model starts with deriving how much is available to distribute:
Start with Gross Funding for system: $628.8M last year.
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Remove earmarks: ($65.2)M
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Remove State Board allocation and revolving funds: ($35.1)M
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Net Value to Allocate: $528.5M
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1.
2.
Identify Student Achievement Initiative funds (to be determined but estimated to be $31.4$62.8M=5% to 10%)
o 45% total points (less completions)
o 10% total completion points
o 45% points per student
This will vary each year based on statewide college point achievement.
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Subtract Minimum Operating Allowance of $2.85M per college (Basic "open the doors"
allocation gives smaller colleges a minimum. ($96.9)M
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Brings to bottom line "Net Value of Appropriation to be distributed to Colleges based on
enrollment $400.2-$368.8M (depending on SAI)
Set District Enrollment Targets:
Compare 3-year averages
o If target is > actual--choose actual--for under-enrolled colleges
o If target is < actual--choose target--for over-enrolled colleges
o Pool money from under-enrollments to fund over-enrollments:
o Determine percentages of total target
Determine "Weighted" Enrollment Share
o Mission enrollment categories are determined from previous year and include different
weighting:(Still working on this)
a. Academic transfer priority - high cost
b. Workforce Priority - high cost
c. Basic Education
d. Pre-College
3.
e. Academic transfer
f. Workforce
Distribute funding based on formula(s). Weighted Enrollment + SAI + earmark and provisos.
Summary: Changes will result in adjusting enrollment targets and weighting enrollments to
determine new share of system allocation in an attempt to align system funding with real
enrollment and more heavily weight types of enrollment. Instituting some higher-cost funding and
more Student Achievement funding--based on relative performance in how colleges advance Basic
Ed and pre-college enrollments.
Still working on whether to include workforce in provisos.
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Still working on total for SAI
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Looking at auditing the enrollment "count" process
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May revise weighting of enrollment types year-to-year but want to get to a level of
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consistency
Will implement in 2016-17 budget year.
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Ethics Presentation: David Kileen:
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July 2013 law passed requiring every agency to have an Ethics Advisor--most likely someone
in HR
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Executive Ethics Board 5 with 5 year terms appointed by Governor.
o Interpret Ethics Act
o Publish Advisory Opinions
o Can present to Board and get a decision 6 months later--meets every 2 months.
o Provides statewide training
o 4-hour training available along with Ethics quizz online
o Adjudicate complaints.
o 100 complaints last year and one investigator. This is why it can take 6 months to
adjudicate a complaint
o Whistleblowers from state employees
o Public can also file a complaint
o Agency can also file
Can be anonymous.
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Has to rise to level of investigation
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Board will hear results of investigation.
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Board can determine whether a Settlement or Hearing is in order.
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What causes unethical behavior:
o Most of the time unaware of rules
o With others, thinking is that the end justifies the means
o With others, thinking is that everyone else is doing it
o Some feel like they are entitled
Working really hard as government employees at low pay
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o Some come from private sector where the rules are different like use of desktop and
internet
o Generational changes: e.g. Millennials don't see why you can't use computers
Board changes over time and new interpretations can occur.
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Interpretation of appropriate use of state resources is changing:
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o 4 months ago a court ruling that the Ethics Board didn't have authority to prohibit use of
state resources.
o Now everything falls within de minimis rules. Use of state resources is appropriate if the
action is:
o Not costing too much
o Not frequent
o Not interfering with work
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Another change in interpretation--Ethics Board says it is now OK to do online shopping
o a few minutes
o not frequent
o Was prohibited previously
Used to be look but do not buy, buying was equivalent to making a profit
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Board examined that it used to allow employees to use their phones to call
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about a newspaper ad. Asked the question whether this is now an internet
application.
WI Fi use by public employees is OK too if the WI Fi is open for public access.
As long as you use your own device.
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But time is a resource as well, so de minimis rules apply
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Board has determined that Facebook posts about work even if done during off time is
inappropriate
Like derogatory comments
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Employee credibility is damaged by this type of action and employees risk loss
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of job
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Use of State Resources should not compromise integrity of state data. For instance plugging
phones into computers--downloads an application. Now all personal information is on state
computer which compromises state data integrity.
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No use of emails or other state resources is permitted for political causes.
You can wear political buttons or bumper stickers.
o But, the rule of thumb is that you can't make this too apparent.
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Some frequent whistleblower issues:
o Abuse of time and overtime
o Perception that exempt employees aren't in office and not working hard
These are hard to prove
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Recommendation if you work extra hours, document this
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Conflicts of Interest.
To avoid conflicts of interest state employees should not:
Have a direct or indirect financial interest
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Engage in a business transaction or professional activity
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Incur any obligation
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o With anyone you can regulate or have in your supervision.
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Question was asked: If you are instructor who has authored a book, can you use the book in
your class?
o Yes, but you can't make a profit . You can donate the royalties to the college.
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If you are asked to be part of decision-making involving a conflict of interest: Recuse
yourself.
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What you do off-time can present conflicts.
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Your position as a public employee should not provide you or related parties with
advantages or special privileges
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Currently cannot use Pandora on college computers due to use of band width.
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One area that seems to contradict the conflicts of interest concept is Broad-Based
discounts.
o Like airline rewards. Public employees can keep these.
o OFM hasn't figured a way to get this back.
o Can use state discounted rate, like a hotel rate if it is provided by a hotel or business.
Another example of a broad-based discount is an offer police officers received to
purchase guns at a discount, or Cabella offering Department of Ecology staff discounts.
This is a business decision made by the vendor to offer it for non-state business.
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It should be broad-based for an occupational group.
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Gifts:
#1 Rule if the gift is an attempt to influence then a public employee cannot take it.
#2 If the gift has more than de minimis value, public employees should not accept it.
o Exceptions:
Hosted reception, defined as a gathering of people not for a dinner or lunch, doesn't
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need to have specific topics
Promotional items. Wouldn't buy
Gifts between state workers
Supervisor shouldn't take gifts from employees if there is inherent influence.
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$50 Maximum Rule. If this is total value in a year and doesn't violate the influence
rule.
Special criteria exist for Section IV employees--42.52.4 : People who regulate or contract for
state business.
If you regulate or contract with an individual or entity who is giving or supervise staff
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involve:
Can only receive promotional items.
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Rules written in 1995.
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May not receive flowers.
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Can keep for 30 days--gift flowers back on day 29.
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 Cannot accept airline or conference costs from vendors.
 Vendors can donate to agency, but not to individuals
 Food and beverages--cannot be gifted.
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What should you do if a gift is offered?
o Do not accept the gift
o Culturally, with international partners, sometimes it is acceptable to accept a gift.
Can accept for the college or foundation
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As long as you don't benefit.
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Ron Langrell-Bates President encouraged BAC:
o To be optimistic and look to future if your college is losing funding. Over-time, with
good leadership, enrollment gains are possible.
o To be honest and work on compliance issues that may come from state audits.
o To be looking at new modalities and look 10-years down the road to choose good
strategic direction
Jon Bosenberg:
Currently in negotiations with faculty unions
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o Attempting to do something different for faculty increments.
Currently use turn-over savings and attempting to get this to be a set amount
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instead.
Discussing a 1.2% lid on increments with .6% paid locally.
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This is separate from COLA's.
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Faculty unsure about inflation language proposed
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State Board asking for state funding for this.
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o Presidents are concerned about costs
Likely this will not pass Senate but could be amended. May be on the hook to
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provide .6% locally.
o Office of CIO asked for a study of IT job classes. There is a concern for funding and in
the past, changes were not available to existing staff, only new staff. This may evolve
into a two-step process with a Request for additional funding.
Department of Risk Management: Lucy Itaki, Kim Haggert, John Christenson: Insuring Student Risk
on Campus
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State Self-Insurance Liability program covers college staff liability but not student liability.
o If there is a college-sanctioned student club or program activity, college should take
measures to abate risks.
College is only liable if the college is determined to be at fault
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Often college is looked to as the deep pockets so it is important to keep student
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events safe
o There is an insurance policy available to insure student liability. Some colleges think this
might shift some tort claims from the state liability policy to this student coverage.
Green River purchases this.
o Other student coverage includes, internship liability, medical liability, athletic
intercollegiate accident coverage.
If your college has student housing be sure to purchase
o Commercial Property insurance
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o Have students obtain rental insurance
Always have college staff recommend that students make independent travel arrangements
for field trips. Staff involvement in arranging car-pools presents colleges with additional
liability.
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Commercial Property insurance can also be used for leased properties and has business
interruption coverage.
o Better rate negotiated last year and is now $.0062 per $100.
Denise Graham Update:
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Undertaking clean-up of Higher Ed Statutes
o with idea that if are supposed to follow laws make them easier to interpret.
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Moving forward to integrate Technical Colleges into the waiver programs.
o Provision in 1991 exempted TC's from waivers.
o Slowly over 20 years, technical colleges are on credit-based tuition schedules and
providing waivers. Most technical colleges have adopted the mandatory waivers.
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Spoke about the enrollment monitoring mentioned earlier in the allocation model change.
o Making sure all colleges are playing by same rules.
o Last year Presidents designed broad categories.
o Now they are designing more enrollment definitions for model.
Survey for higher cost enrollments with 17 colleges resulted in programs like
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Health Sciences being in a higher cost category.
Budget highlights:
o 3% and 1.8% COLA's---governor's budget proposal is to fund salary increases using state and
local funding. Split would be 34% local funding.
o Health Contribution is increasing to $913 in 16 and 947 in 17. This has a big impact on selfsupport programs.
o There is an embedded increase in health costs due to one-time reduction to balance
budget in past year.
o Pension contributions going up from 12% by 2% additional contribution rate.
CTC Link project report:
o Under-estimated complexity of faculty pay
o Issues related to banking
o Next steps: Identified 20 critical items for meeting deadlines.
o Issues with header and trailer colleges
o Workload issues between Ciber and State Board staff.
o Critical Payroll departure in December
o Goal to complete by end of 2017
o Impact on first link colleges. Longer process means more cost at local level.
Safety Security Committee report:
o Council is up and running. 26 representatives attending.
o BAC Academy on Continuity of Operations being planned
o Will have more on campus incident response
o Bill currently puts department of military in place to oversee disaster preparedness--may put
wrinkle in plan.
o Have done Security officer training
Procurement training.
o DES rolled out training. Many colleges participated in Higher Ed training for contracts and
purchasing in Green River last month..
o Responsibility lies with each college for getting staff trained.
o Can get this on your campus LMS. May also be able to upload completions to DES.
Capital:
Workshop March 12 at Pierce for major capital project training for scoring changes.
o Minor work not anticipating re-appropriation.
o Governor's bill didn't provide re-appropriation.
o College polled on reasons for later spending.
o Conflicts with schedules
o Contractors may not be done.
o Billing not completed