SPECIAL MEETING
OF THE BOARD OF TRUSTEES
HOUSTON COMMUNITY COLLEGE SYSTEM
April 18, 2008
Minutes
The Board of Trustees of the Houston Community College System held a Special
Meeting on Friday, April 18, 2008 at the System Administration Building, 2nd Floor
Seminar Room A, 3100 Main, Houston, Texas.
Board of Trustees Present:
Yolanda Navarro-Flores, Chair
Diane Olmos Guzman, Secretary
Mills Worsham, Deputy Secretary
Neeta Sane
Richard M. Schechter
Dr. Michael P. Williams
Administration Present:
Mary Spangler, Chancellor
Art Tyler, Deputy Chancellor/COO
Doretha Eason, Executive Assistant to the Chancellor
Others Present:
Maureen Singleton, Counsel, Bracewell & Giuliani
Mrs. Flores asked Dr. Tyler to begin the budget workshop with the presentation at
10:18 a.m.; however, the meeting was not called to order until 10:43 a.m. upon
establishing a quorum.
BUDGET WORKSHOP
Dr. Tyler informed that the purpose of the workshop was an endeavor to get all the
senior administrators on the same level. He noted that in the absence of a plan, the
budget is the plan and apprised that the budget, however, is not the college’s plan.
He noted that resources have to fit the overall mission, vision, and plan.
Dr. Tyler noted that there was a lengthy process to develop the strategic plan but
there was not a lengthy process to develop the budget. He noted that the schedule is
the driving force of the resource allocation matched with the mission and vision
provided by the Board. He informed that the Presidents have been advised that the
scheduling plan must be the driving force for the college operations.
(Mrs. Guzman arrived at 10:31 a.m.)
Dr. Tyler noted that the following philosophies must be acknowledged:
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Special Meeting – April 18, 2008 – Page 2
(1) Budget must be transparent because the college is a public institution
(2) Training to create common language
(3) Must consider opportunity loss
(Mr. Worsham arrived at 10:37 a.m.)
CALL TO ORDER
Mrs. Flores, Chair, called the meeting to order at 10:43 a.m. and declared the Board
convened to consider matters pertaining to the Houston Community College System
as listed on the duly posted meeting notice.
Dr. Tyler continued the budget workshop presentation.
(Dr. Williams arrived at 10:46 a.m.)
(Dr. Williams stepped out at 10:48 a.m. / returned at 10:50 a.m.)
Dr. Tyler apprised that there must be a mechanism that reviews more than efficiency
because there is an obligation to the community.
Dr. Tyler asked Dr. Spangler to provide her concept on how to utilize the allocated
resources.
Dr. Spangle apprised of her historical experience in working with the resources that
were allocated and noted that this has been the driving force of her vision. She noted
that the college presidents have met to establish a rationale for understanding the
components of the budget process and apprised that her intentions are to move the
resources to the colleges.
Dr. Tyler resumed the budget presentation.
Mrs. Sane asked if the budget models utilized by other colleges have been
considered. Dr. Spangler apprised that this budget model is exactly what was used in
California based on enrollment.
Dr. Tyler noted that there are three major components: scheduling, faculty, and
equipment.
Developing Revenue Model
Review of the projected revenue model to include prior year and current year revenue.
Dr. Tyler noted that administration would receive a report from CCbenefits on
occupation and skill preparation needs, which may drive to change the “mix”
(academic contact hours, academic health science, workforce contact hours, and
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continuing education). He noted that the mix should be set according to the Board
policy.
Mr. Schechter asked what portion of the $31 million transfer/debt is for debt services.
Ron Defalco informed that approximately $26 million is for debt services (junior lien
bonds and maintenance tax notes); however, the GO Bond debt is not included.
Mr. Schechter apprised that his understanding of the arbitrage rule is not so much how
much but how long. Mr. Defalco informed that the length is a component of the
arbitrage rule. Dr. Tyler noted that the requested information on the arbitrage will be
provided to the board.
(Dr. Williams stepped out at 11:30 a.m.)
Dr. Tyler noted that the presidents previously did not have to be concerned with
generating revenue; however, this budget development process needs to include the
presidents.
(Mr. Schechter stepped out at 11:33 a.m.)
Mrs. Flores recessed the meeting at 11:33 a.m.
(Mr. Schechter returned at 11:34 a.m.)
Mrs. Flores reconvened the meeting at 11:34 a.m.
(Dr. Williams returned at 11:35 a.m.)
Mrs. Flores announced that the Faculty Senate President, Linda Koffel, requested to
speak before the Board on behalf of the Faculty Senate.
Mrs. Koffel provided information on faculty compensation inequities and mentioned
that the issues have been discussed with Dr. Spangler and Dr. Tyler. She noted that
the current administration has and is working with the faculty on the issues and
encouraged the Board to have fiduciary responsibilities relating to faculty salaries.
Mrs. Koffel noted that faculty motivation drives the success of HCC.
Mrs. Flores asked Ms. Koffel to share with the Board the faculty’s opinion of taxes.
Mrs. Koffel informed that faculty members feel that the taxes should be raised to assist
with paying faculty salaries.
Mrs. Koffel noted that one of the problems is that faculty continues to be underpaid
relative to the market and there continues to be many serious pay inequities in the
faculty compensation system. She noted some external inequities such as HCC being
below TUCCA 7 and TUCCA 4 as well as HCC being below the top paying colleges.
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Mrs. Koffel apprised of concerns relating to the compensation and provided the
requests and recommendations for the Faculty Compensation Committee.
Mrs. Flores recessed the meeting at 12:07 p.m.
Mrs. Flores reconvened the meeting at 12:50 p.m.
(Trustees present: Flores, Guzman, Sane, Schechter, and Worsham)
Dr. Tyler resumed the presentation on the budget development.
Mrs. Flores recessed the meeting at 1:02 p.m.
(Mr. Worsham left at 1:02)
At 1:02 p.m., there was a loss of a quorum, the meeting continued without action from
the Board.
Mrs. Guzman asked Dr. Tyler if there has been a comparison of the dual credit. Dr.
Tyler noted that a comparative analysis would be completed on what the surrounding
community colleges are doing.
Mrs. Guzman noted that it might be beneficial to review what other community
colleges are doing nationwide as it relates to dual credit.
Mrs. Flores asked who determines the dual credit fee waiver amount. Dr. Tyler noted
that the Board determines the amount via the fee waiver.
Mrs. Guzman asked how are students tracked. Dr. Tyler mentioned that it must be
determined how to infuse what is done in the scope of every student. Dr. Tyler noted
that in order to answer the question, there must be a review of available data.
Mr. Schechter asked if HISD received funds for the dual credit students. Dr. Tyler
apprised that HISD is funded for the students. He noted that the largest portion of the
cost to HCC and the largest portion of benefit to HISD are the faculty salaries.
Dr. Tyler noted that removing the tuition and fee revenue waived would cause the
teacher expense ratio to be skewed in terms of what they really should reflect.
The Board concluded that the entry for the dual credit tuition and fee waivers should
be denoted so that it is clear regarding the revenue waived; however, it was
recommended not to change the format.
Dr. Spangler recommended possibly reducing the cost as opposed to a total fee
waiver.
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The Board asked why the County does not pay for the jail program. Dr. Spangler
noted that there are contact hours but no tuition and fees are received.
Dr. Tyler noted that information on students who receive free and reduced lunch could
be utilized in the Board’s decision to waive the dual credit tuition and fees.
Board requested legal counsel review the Board’s policy on tuition and fee waivers.
Dr. Tyler apprised that he received clarification from Mr. Defalco that the jail program
is a Board directed program. The Board concluded that there could be some
negotiation as it relates to the program.
Mr. Schechter asked for the true benefit of the program.
Mrs. Flores asked that a standard is set for providing the benefit and revenue streams
on all expense items.
Dr. Tyler noted that he would ask Dr. Cook and Dr. Seymour to provide requested
information.
Dr. Tyler provided an overview of the projected budget for fiscal year 2008-2009. He
noted that one of the directives of the Board to the Chancellor is to grow enrollment by
five percent.
(Mr. Schechter stepped out at 1:47 p.m.)
Mrs. Sane asked for a list of assumptions.
Dr. Tyler apprised that half of the 15 new staff positions would be for the police
department and noted that there is not a recommendation for new positions at the
System level.
Mrs. Guzman asked if the 3% salary increase is mandated. Dr. Tyler noted that the
pay increase is a board discussion item.
Mr. Schechter asked what the college competitors are doing as it relates to pay
increase. Dr. Tyler noted that he would research and provide results.
Mr. Schechter noted that it is critical that the college has the best faculty; and
therefore, must be competitive with surrounding colleges.
Dr. Tyler informed that the projection is to save at least 3% in contract services. He
noted that one area anticipated reduction in contract service is in legal costs.
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Dr. Tyler noted that innovative program fund is included in the projected budget to
allow the presidents to identify and fund a needed project in their service area to
support the community.
Mrs. Flores asked how would you determine what is needed in the services areas.
Dr. Spangler apprised that the item would need to be discussed in more details and
noted that the presidents could submit a proposal for review to request funding for a
specific project.
Mr. Schechter stated that there must be a mechanism to measure the results of the
programs.
Mrs. Flores stated that her concern would be how the needs of the community would
be identified. Mrs. Guzman suggested that the community councils could possibly
serve as an avenue for identifying the needs.
Mr. Schechter asked if there are program reviews in order to determine if a program
needs to be phased out. Dr. Spangler expressed that it is difficult to sunset programs.
Mrs. Flores noted that the previous administration has attempted to sunset; however,
at some point there must be the capability to do so.
Dr. Tyler noted that one thing that will be different is the class scheduling and
enrollment monitoring. Dr. Spangler noted that developing an enrollment
management plan will address some of the issues and apprised that the budget and
enrollment plan would work together.
Dr. Tyler noted that $1.3 million is added to the forecasted budget for position control
that must be included for currently vacant positions.
Mr. Schechter expressed appreciation for the budget process presentation.
ADJOURNMENT
With no further business coming before the Board, the meeting adjourned at 2:35 p.m.
Minutes recorded and submitted by:
Sharon Wright, Executive Administrative Assistant, Board Services
Minutes Approved as Submitted: