Monday, January 26, 2015
3:34 PM
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The system expects to get more funding for Running Start, but may cut-out non-college based
programs.
There's a potential for more funding for Early Learning Programs with the Early Achievers
program.
There will not be increases in tuition, which is, in effect, a cut.
College Bound will be a forecasted amount
Need a tax increase to support money for K-12 due to the McCleary decision, and additional
transportation funds
Not asking for any increased FTE funding
Rationale will be that we are trying to buy back some of what was lost during the last 5 years.
Will ask for more Adult Basic Ed drawing a parallel with these students really being like K-12
students needing equivalent K-12 funding.
 This type of rationale would start the conversation.
 In 1889 basic education was 8th grade
 Now it is 12th
 We would like to see this basic education include ABE.
Asked for 6-fold increase in SAI. Performance funding is a concept the legislature likes.
Asking to get some of the cuts in student services restored.
Asked for funding for task force to fund best practices for Math instruction.
Asked for $5M in undesignated Workforce funding.
Asking for .8% increase for faculty base. SBCTC meeting with unions to make this annual ask more predictable.
Capital:
 Asked for $367M in capital
 Asked for $19 5M in COP funding
Hope to have a budget shortly before the end of fiscal year. Leglislature doesn't understand the
issues for a late budget.
 1351 Class Size K-12 referendum will be controversial and hard for democrats not to
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support, but,
WA has the strictest balanced budget in the US. Has to balance with every bill going forward. It will be difficult to pass. His prediction was that legislature will eventually
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suspend 1351.
The budget will be difficult to pass.
Doesn't expect the 15% cutting exercise to be real but does expect cuts.
Will need to explore class fees. We had the general fee granting authority in the last
biennium.
4-years asked $198M and said this would prevent from tuition increases
 They can raise a lot more money with a small tuition increase than we can.
 15% cut translates into 24% tuition increase since we have so much that is free vs. 4-
years.
Governor is asking for $1B in new taxes--guess it is going to be property or sales tax or transportation tax.

 Republicans don't want a new tax and instead a surcharge on services.
Other Business at SBCTC:
 Working on a bill to waive building fee and innovation fee for active duty military since the DOD
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no-longer is funding building fee or innovation fee for active duty military. President's voted to have a waiver drafted for legislation to waive the building and innovation fee. Students would have to pay S&A.
Faculty Union is trying to get rid of turnover savings and just have a set amount in the budget.
Still negotiating.
State Board is also working with Presidents on budget and allocation issues. Some presidents upset with SBCTC that we won't start until next fiscal year. Marty doesn't want to start July 1.
Unless we get a big influx of funding in May, implementing for colleges who lose funding would be too difficult.
Denise Graham added some details to the budget discussion:
Corresponding to funding for I 732 for faculty and tech colleges the budget we will likely see funding
for other staff matching the 3% and 1.8% proposed for classified. This may mean more for faculty.
Watch how this is funded though. A few years ago the legislature stopped funding pension and health
funding for tuition-funded employees. The salary increase may be another unfunded mandate or cut.
 If funding is restricted to state-funded only this would be another reason, to the extent
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possible, salaries should be coded to Fund 001.
If funding is limited we will make it clear to the legislature that this is a cut.
For the 4 years this is a bigger deal. They are 60% tuition-funded. They will protest if
salary increases are not funded.
Critical Issues Committee: Is discussing coding for international students.
 Many students sitting in state supported classes do not get state funding and also do not pay building fee or innovation fees.
 For international students counted as contract students colleges effectively keep
 building and innovation fees.
Currently for colleges having contracts previously, the rule is to keep these and the reverse as well. But, SBCTC hasn't enforced these rules well. Some colleges are taking advantage of this loophole in enforcing and counting some international in both categories.
 If we say we are not counting FTE's as State vs. contract, some colleges would
 lose a lot of money.
The new allocation model defines target differently. State Board is looking at the implications of the new allocation model. May end up with you get to
choose with parameters. John Ginther is chairing with Denise.
There is a new Library management system being floated. Presidents got a proposal from the instruction commission, EXLibras--ALMA.
 The State Board would contribute $500K. State Board would have the ongoing contract management and project management.
 Cloud-Based. Most colleges would opt-in to this as a fee-based program.
 Some colleges belong to other consortiums.
 The cost per college pricing information should be coming soon.

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Colleges can opt -in later and not face any fee increases. The system costs
$1.2M cost to begin with and then will also have a per FTE charge.
Timing--Mike Scroggins is working on a more detailed costing. This will go into place soon. 3 categories of costs, buy-in, maintenance annually, project management which state board will do. Rob Frost Centralia sent out a
 spreadsheet--not valid any longer.
Talk to instruction commission folks for details.
Mobile Technology is coming for mobile registration.
 Presidents chose High Point through RFP.
 $375K. $13,800 initially per college. $2,500 annually after the first year.
 Working on contract currently.
 May be ready for the first wave colleges. Does have functionality for legacy system.
Oracle app was not so good.
Report from Allocation and Accountability.
 Nick Lutes went through a breakdown for how the model works--will present in February.
Suggested that if the model is shared at WAC academy in January asking if BAC
representatives may attend.
High cost workgroup has begun work.
 Looking at statewide effect.
 They have used a student faculty ratio by zip codes and filtered into groups and arrayed and
made into quartiles. Will review the high cost group. Reviewing other factors like accreditations costs etc. This will be reported in February.
CTC Link surcharge distribution--will likely be all headcount, all employees and students.
 Nick will draft a one-page document.
 Will get shared with BAC in January.
 Will be a forever billing. 2017-18 innovation fund contribution will reduce to 1% but the headcount assessment will be ongoing. For most colleges, the reduction in 2017-18 to 1% will cover ongoing headcount costs.
 Presidents will vote in January.
Clarification, Due to DOD changes. Out-of-state veterans are being coded as in-state .
A Revised tuition and fees schedule now includes competency-based learning.
IT Committee:
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Colleges will have to pay $35K for implementation for room scheduling software per
college.
25-Live. Tacoma will Go-Live in February.
This is being discussed at other schools.
Barbara recommends waiting if you are close to implementation of CTC Link. There is an efficiency if you are currently using R25.
 Consistency with room names with facility system may require work.
3 smaller colleges are in the first wave and worried about Challenges with staffing.

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Smaller colleges do not want an August start date and would rather have an October start since initially they would need to input registrations manually.
First Wave colleges will have more help from SBTC with data configuration--more so than with
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 pilots work.
But, 40% of the work is expected to be local configuration. Looking at either August or October
dates.
May 16 is current start date for 2nd wave and May 17 3rd wave.
 IT Committee brought up a concern that FMS Legacy support depth and customer service may
be waning.
 Asked for BAR input-- If you have specific comments, forward to me and I can bring to BAC.
 Suggestion is always to make use of BAR mentoring group.
Safety and Security:
 BAC academy in April will cover Continuity of Operations.
 Homeland Security will attend.
 Training for incident command being simplified.
 Security Officer training -- concerned especially about part-time officers.
Operations:
 Procurement training is coming. June BAC academy slated for tis training.
 Executive management special session planned for managing contracts. There is a huge list
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 of people who are expected to take training before June.
LMS system will be used for training and getting certified.
Will also have a WAC training 2-hour.
After training need to look at who is signing contracts.
Accountability Audits. SBCTC holds funding used for accountability Audits but cost of whistle-
blower audits are also spent from this budget. Last year, there was no money left for accountability audits.
 Will be discussing new method of SAO assessment. This year they are planning 23
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accountability audits at $30K each.
This year they asked SBCTC to bill for whistle-blower--see what happens next year. If
Whistle-blowing is lower, there isn't a problem. Grays Harbor was asked to provide 3 years of data recently-but, auditors need to stay within their hours and budget so may need to limit extent of audits.
DOR Audits have been asked for some colleges.
 Fining if any is based on error rates which are then applied to all transactions for fines.
 Real Estate Excise tax and leasehold tax were problem areas for some colleges with outsourced bookstore or food service operations.
Legacy transcripts--only 6 years of data will migrate. SBCTC will provide older transcripts.
Several colleges are working with a consultant to list policies required for federal grants. They are sharing costs, Everett, Wenatchee…
Financial Statements.

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Reported that the system has done better than expected with fewer findings.
Permissions to cashiering screens and internal controls as well as smaller things.
Joann and Jason have done a good job getting colleges prepared.
For 1314 will have our own contracts. Did some preliminary work and now is contracted between colleges. Also, SAO is increasing hours from 300 to 350. Rate is 350X89=$31,150.
 Travel is added on top and level of auditor can impact travel costs since auditor levels 1 &
2 charge travel time plus mileage. Can also benefit with lower costs for interns.
Capital-Choi
Budget session previews are on target with projections. WAC academy last week presented the changes. Key changes include addition of infrastructure category to major projects.
 Looked at whether regional differences in cost should be considered --found we can't
really do this .
 Instead the number of bids makes a bigger difference and so larger bid numbers in
 metro areas actually lowers costs. Unintended consequences:
Notion of what is a major project--sq. Ft. Redefine on $ for infrastructure like $5M or greater
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 with completion over 2 years. Aligns SBCTC and OFM definitions.
Current system penalizes project for addl sq.ft. that don't involve repairs.
 Scoring system penalizes. 95 is max scoring and cut-off won't allow project. Now no
penalty for new square footage.
There will be a change in the way we show room utilization change: Metrics on this will be developed for use in 25 Live.
 Most controversial utilization change is for vocational lab space. These labs are diverse in system.
Minor work expenditures;
 Initiative to not reallocate into next biennium. Goal to get this to 20%.Will
 reallocate 40% again this year.
Political reason--legislators asking why are we providing this money if it is not
 spend. OFC will try to do a survey. Systemic problems:
Another reason for delays is that Facilities are cut in tight budget years by delaying projects.
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We've prioritized saving money over saving time up to this point with our capital processes. Part of what needs to change might instead be to Prioritize time over money to get projects finished sooner..
Part of solution may be to cut non-major project funding into a design and
construction pool like major projects so design money comes in one biennium and construction money in the next.
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