MEETING OF THE
BUDGET COMMITTEE
OF THE BOARD OF TRUSTEES
HOUSTON COMMUNITY COLLEGE
June 16, 2011
Minutes
The Budget Committee of the Board of Trustees of Houston Community College held a
meeting on Thursday, June 16, 2011, at the HCC Administration Building, 3100 Main, 2nd
Floor, Seminar Room A, Houston, Texas.
COMMITTEE MEMBERS PRESENT
Richard Schechter, Committee Chair
Christopher W. Oliver, Committee Member
Mary Ann Perez, Committee Member
Bruce A. Austin, Alternate Committee Member
Eva Loredo
Sandie Mullins
ADMINISTRATION
Mary S. Spangler, Chancellor
Art Tyler, Deputy Chancellor/COO
Renee Byas, General Counsel
Charles Cook, Vice Chancellor, Instruction
Diana Pino, Vice Chancellor, Student Services
Daniel Seymour, Vice Chancellor, Planning and Institutional Effectiveness
Margaret Ford Fisher, President, Northeast College
William Harmon, President, Central College
Zachary Hodges, President, Northwest College
Irene Porcarello, President, Southeast College
Betty Young, President, Coleman College
Remmele Young, Executive Director Government Relations
Willie Williams, Chief Human Resource Officer
OTHERS PRESENT
Jarvis Hollingsworth, System Counsel, Bracewell & Giuliani
Alan Ainsworth, President, Faculty Senate
Other administrators, citizens and representatives from the news media
CALL TO ORDER
Mr. Schechter called the meeting to order at 12:07 p.m. and declared the Committee
convened to consider matters pertaining to Houston Community College as listed on the
duly posted Meeting Notice.
Dr. Spangler apprised that the Budget Workshop would include an update of the Budget
Task Force and secondly, a budget presentation by Dr. Tyler.
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Budget Committee – June 16, 2011 - Page 2
REPORT ON BUDGET TASK FORCE REGARDING OPERATING BUDGETS
(UNRESTRICTED FUNDS) FOR 2011-2012 AND 2012-2013
Dr. Spangler apprised that the Budget Task Force (BTF) efforts are a work in process
involving individuals on various levels across the institution to manage people, resources
and opportunities to reduce expenses, generate revenues, and operate in a transformed
environment.
(Ms. Perez and Mr. Oliver joined the meeting at 12:10 p.m.)
Dr. Spangler provided an update of the Budget Task Force efforts to include:
1.
2.
3.
4.
Stated Objectives
Stakeholders Addressed/Conferred
College Transformations
Substantive Contractual Changes
(Ms. Loredo joined the meeting at 12:14 p.m.)
Dr. Spangler provided an update of the BTF Transformation Master List and a year-to-date
“Chill Position” accumulative savings from vacated date. She noted that a FAQ document
was also developed. Dr. Spangler noted that the department chair structure is also being
streamlined and that full-time faculty is being put back into the classrooms.
Mr. Oliver asked if the realities of the economy are being utilized to introduce some form of
re-organization and asked should not the Board be involved. Mr. Schechter informed that
the Board is receiving a report on the recommendations from administration and informed
that the Chancellor is responsible for reorganizing as deemed necessary.
Mr. Schechter informed that the current shortfall is approximately $40 million annually for
the biennium.
(Mrs. Sane arrived at 12:21 p.m.)
Mr. Oliver noted that there is a comprehensive plan in place to address the budget shortfall;
however, there is a need for sensitivity politically and noted that the Board needs to be able
to articulate what is being done administratively. Mr. Schechter noted that this is why the
budget committee has been meeting monthly to receive reports from administration.
Mr. Oliver noted that he does not want to be approached regarding possible layoffs without
notice prior to the actions taking place. Mr. Schechter informed that this is why the Budget
Committee has been meeting and in the end the Board will possibly have to give directions
to the Chancellor regarding actions. He noted that he has attended Faculty Senate
meetings and noted that the employees seem to be comfortable with the direction the
college is moving.
Mr. Oliver noted that he would rather workout situations collaboratively as opposed to being
left without a say in the efforts.
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Budget Committee – June 16, 2011 - Page 3
Dr. Spangler continued with an overview of the Budget Task Force Report. She noted that
the college transformations include:
•
•
•
•
•
•
•
•
Streamlining the Department Chair Structure by reducing the number of chairs
Re-titling Discipline Chairs as Curriculum and Assessment Coordinators
Centralizing the Library System operations into a branch system that coordinates its
resources and facilities to avoid duplication of services
Addressing IDC positions
Providing more Counselor/Advising Services
Addressing Employee Benefits
Stabilizing the Commitment to Full-time Faculty
Effecting Substantive Changes in Faculty Contracts
(Ms. Perez stepped out at 12:32 p.m.)
Mr. Austin asked if there is a saving of funds by reducing a managerial function in regards
to the librarian centralization. Dr. Cook informed that it is a matrix.
(Ms. Perez returned at 12:35 p.m.)
Mr. Schechter asked the Chancellor to elaborate on the Faculty Chair Structure. Dr.
Spangler asked Dr. Charles Cook to provide an overview of the Faculty Chair Structure.
Mr. Austin asked if a side-by-side review of the changes regarding the chair has been
done.
Dr. Cook noted that a side-by-side review could be developed.
(Mr. Oliver stepped out at 12:39 p.m.)
Dr. Cook provided an overview of the existing Faculty Chair Structure and the proposed
structure.
(Mr. Oliver returned at 12:41 p.m.)
Dr. Cook informed that the former system was not a bad one; however, due to resource
reductions, there was a need to reduce the number of chairs. He noted that the associated
chairs were eliminated all together. He noted that the discipline chair responsibilities were
increased to assist the department chair.
Mr. Austin asked what will be done to ensure currency and quality of work. Dr. Cook noted
that it is a work in progress.
Mr. Oliver requested the amount of savings by restricting the Department Chair. Mr.
Schechter referenced the BTF Transformation Master List that explains the savings and
revenue generation over the next two fiscal years.
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Budget Committee – June 16, 2011 - Page 4
Mr. Schechter asked the administration to provide an overview of the “Chill Positions”. Dr.
Spangler informed that the Cabinet is the only ones who are able to submit an exception.
She noted that those numbers reflect an accrued savings.
Ms. Loredo asked if the Chill Positions are only for administration and support staff. Mr.
Schechter informed that the Chill does not include any faculty and only consist of support or
administrative positions.
Mr. Austin asked what would be the compelling justification for requesting the filling of a
position. Dr. Spangler apprised that the justifications may vary.
Mrs. Sane asked if those required taking on more responsibility, are entitled to additional
pay. Dr. Spangler informed that those who are non-exempt are required to receive overtime.
Mr. Austin recommended that the listing is reviewed to reflect non-exempt versus exempt.
Dr. Tyler informed that any positions of P7 and above are exempt.
Ms. Perez asked if there is a tracking mechanism for those who are required to work
overtime due to the added responsibilities. Dr. Spangler informed that overtime is tracked in
time and labor. Mr. Willie Williams, Chief Human Resource Officer informed that it is rather
difficult to determine if overtime is required due to the added responsibilities.
Dr. Seymour informed that there will be a separate tracking of overtime dollars. He noted
that it is probably a very small amount.
Mrs. Flores informed that there should be a review of job descriptions to make certain that
the additional work falls within the purview of the individual’s job responsibilities. Mrs.
Renee Byas informed that there should be a review of job classification.
Dr. Alan Ainsworth informed that the overall sentiment of faculty is that there is an
appreciation that the Chancellor is reviewing options to make up the shortfall without
layoffs.
Ms. Loredo reviewed the Chill Position list and noted that some of the positions are vital
and recommended that reviewing the possibility of funding some of the positions when
funding is available.
Mr. Austin recommended that the listing is revised to include priority and category, for
instance instructional support.
Mr. Schechter asked that the administration provide an overview of counseling and
advising services. Dr. Pino provided an overview of best practices in making certain the
student needs are being met.
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Budget Committee – June 16, 2011 - Page 5
Mr. Austin informed that there are automated processes that are in place at certain
organizations and asked what the college is during in that regard. Dr. Pino informed that
various tools have been researched to assist in tracking data such as repeaters and first
timers.
Mrs. Flores asked the number of counselors. Dr. Pino informed that there are fifty
counselors. She informed that the counselors spend majority of their time with face-to-face
contact; however, it depends on the individual’s workload.
(The meeting recessed at 1:20 p.m. and reconvened at 1:57 p.m.)
(Trustees Present: Austin, Mullins, Oliver, Perez, Schechter, and Williams)
Operating Budgets (Unrestricted Funds) for 2011-2012 and 2012-2013
Dr. Tyler provided a budget presentation to include:
Projected budget issues for 2011-2013 biennium:
He provided a couple of scenarios and noted that he is available to meet on a one-one.
Dr. Tyler presented the preliminary ad valorem tax projections and showed maintenance
tax note scenarios.
Dr. Tyler presented the following:
• Taxes - historical
• Appropriations – (Projections for 2011-2012 and 2012-2013)
• Estimated expenses (FY 2011-2012 and 2012-2013)
• Increase in cost for employee benefits
• Retirement benefits
Dr. Williams requested the previous Board decisions as an attachment to allow the Board
and review decisions.
Mr. Oliver recommended reviewing policies and what is applicable today. He further noted
that the number of people retiring should be reviewed.
Dr. Williams recommended reviewing other options to meet retirement shortfall.
Dr. Tyler recommended to plan one year at a time. Mr. Schechter suggested reviewing
semester to semester for the next two years.
(Trustee Mullins stepped out at 2:36 p.m.)
Mr. Schechter noted that the two big ticket items are benefits and solving the debt issue.
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Budget Committee – June 16, 2011 - Page 6
Dr. Williams inquired of the success to generate profit on 3100 Main. Dr. Tyler appraised
that the college is generating revenue on leased space. Dr. Williams suggested reviewing
the layout of 3100 space utilization.
(Trustee Sane stepped out at 2:47 p.m.)
(Trustee Mullins returned at 2:49 p.m.)
Mr. Oliver inquired regarding adjusting debt service through refinance. Dr. Tyler informed
that over the past three years, the debt has been reduced.
Dr. Tyler provided a summary of recommendations as follows:
• Raise taxes
• Remove Early Challenge High School (ECHS) waivers
• Employee buyout 20 years +
• Close leased properties
• Differential tuition
• Health sciences CE Institute
• Reorganization of resource development (grants)
• Sick leave (9/1) 8 hrs/4hrs per month – accrued monthly
• Vacation (9/1) – 4 weeks to 20 years – accrued monthly/ 2 week carry over
• Pass health costs for dependents to employees
Ms. Mullins requested the amount for each category.
(Trustee Sane returned at 3:01 p.m.)
Dr. Williams inquired is it within the law to customize dependent coverage.
Dr. Williams noted that a review of property liquidation should be on the table.
Ms. Mullins recommended increasing health coverage costs to employees. Mr. Willie
Williams noted that covered is governed by the Employee Retirement System of Texas.
Mr. Austin recommended discussions with HISD to address Early College High School. Dr.
Williams noted that the issue needs to be addressed at the Board level.
(Trustee Perez stepped out at 3:14 p.m.)
(Trustee Perez returned at 3:16 p.m.)
A meeting will be held in July. Mr. Oliver suggested having only one meeting at the end of
July.
ADJOURNMENT
With no further business, the meeting adjourned at 3:22 p.m.
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Budget Committee – June 16, 2011 - Page 7
Recorded, transcribed and submitted by:
Sharon R. Wright, Manager, Board Services
Minutes Approved: _________________________________