MEETING OF THE
BUDGET COMMITTEE
OF THE BOARD OF TRUSTEES
HOUSTON COMMUNITY COLLEGE
November 7, 2011
Minutes
The Budget Committee of the Board of Trustees of Houston Community College held a
meeting on Monday, November 7, 2011, at the HCC Administration Building, 3100 Main,
2nd Floor, Seminar Room A, Houston, Texas.
COMMITTEE MEMBERS PRESENT
Richard Schechter, Committee Chair
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
Shantay Grays, Interim Executive Assistant to the Chancellor
William Carter, Vice Chancellor, Information Technology
Charles Cook, Vice Chancellor, Instruction
Daniel Seymour, Vice Chancellor, Planning and Institutional Effectiveness
Margaret Ford Fisher, President, Northeast College
Julian Fisher for Fena Garza, President, Southwest College
Zachary Hodges, President, Northwest College
Irene Porcarello, President, Southeast College
Willie Williams, Chief Human Resource Officer
Betty Young, President, Coleman College
Remmele Young, Executive Director Government Relations
OTHERS PRESENT
Jarvis Hollingsworth, System Counsel, Bracewell & Giuliani
Thomas Urban, President, Faculty Senate
Lisa Eason, President, COPA
Other administrators, citizens and representatives from the news media
CALL TO ORDER
Mr. Schechter called the meeting to order at 10:11 a.m. and declared the Committee
convened to consider matters pertaining to Houston Community College as listed on the
duly posted Meeting Notice.
Operating Budgets (Unrestricted Funds) for 2011-2012 and 2012-2013
Houston Community College
Budget Committee – November 7, 2011 - Page 2
Dr. Tyler informed that the challenges faced in 2010-2011 will continue and provided a
budget presentation to include the following:
•
Economic Conditions
•
Program Growth & Development
•
Continuing Reduction of State Allocation
•
Taxation
•
Local Tax Valuation Decline
•
Tuition and Fees
Dr. Tyler informed that there will be one more year of a decrease in valuations. Mr.
Schechter inquired why the continued decrease in valuations. Dr. Tyler informed that
currently there is no high dollar construction and there is a forecasted slow economic
recovery.
Dr. Tyler noted that it is anticipated that the state reductions will continue since the state’s
priorities are K-12 and universities in terms of educational funding.
(Ms. Perez arrived at 10:15 a.m.)
Mr. Austin requested that HCC articulate the general deficit in simple terms so the general
public can be informed of what has occurred. Mr. Schechter noted that our government
relations consultant on the state level could write a paragraph.
Mr. Schechter inquired, if any funding change in 2012-2013 is anticipated. Dr. Tyler stated
that he anticipates the state will dip into the rainy day fund; however, if they do not, there
will most likely be another mid-year reduction.
Dr. Tyler informed that the college will close the year in a healthy status. He noted that the
approach is to be conservative and apprised that the following assumptions exist:
•
Decrease in State Allocation
o Base funding
o Group insurance
o Retirement matching
•
Decrease in Tax Valuation
o Decrease in tax valuation
o Increase in tuition and fees
o Zero growth funding from the state
o Project 3% growth
Mr. Austin inquired about zero growth funding. Dr. Tyler noted that there will be no funding
for growth and that the challenge is sustaining growth. He thanked the Board for making
tough choices and informed that the choices for 2012- 2013 should not be as difficult.
Houston Community College
Budget Committee – November 7, 2011 - Page 3
Mr. Schechter asked for clarification on the anticipated tax. Dr. Tyler stated that the Board
approved an increase for 2011-2012 and apprised that the recommendation was for an
increase over two phases.
Mr. Austin requested that the chart display three years of data in order to see the change
and compare.
Mr. Schechter requested to display the increase as a combination of tax increase and debt
refinancing.
Mr. Schechter expressed concern of operating on a budget that is built on a tax increase as
he understood the gap would be met with debt refinancing and the college would keep the
effective tax rate.
Dr. Tyler presented the expense side of the budget and noted that an increase would be in
part-time faculty salaries, which has not been raised in four years. He noted the increase
would be the hourly rate for part-time faculty.
Mr. Austin inquired of comparison to other gulf coast area community college competitors.
Dr. Tyler informed that HCC is well below the average. Mr. Schechter asked what would
be the cost to raise all part-time faculty. Dr. Tyler apprised it would cost approximately $1
million.
(Trustee Mullins arrived at 10:36 a.m.)
Ms. Mullins inquired of the need to increase faculty. Dr. Tyler noted that it is important to
maintain the 50-50 ratio of full-time and part-time faculty as required by the Southern
Association of Colleges and Schools (SACS) and apprised that the cost is $1 million which
is built into the budget.
Mr. Schechter asked for clarification for fixed expenditures in regards to adding classes.
Dr. Seymour informed that it varies between workforce and academic classes. Mr.
Schechter inquired if it is possible to meet students’ needs and increase revenue by
offering additional courses in the summer. Dr. Seymour stated there are options to
accomplish the task.
Dr. Tyler noted that one option is to develop a waiting list system, which automatically
opens the class once enough students are on the waiting list.
(Mr. Austin stepped out at 10:48 a.m.)
Mr. Schechter requested administration to develop a mechanism to offer more classes for
summer 2012 as well as the ability to increase adjunct faculty pay.
(Trustee Loredo arrived at 10:50 a.m.)
Houston Community College
Budget Committee – November 7, 2011 - Page 4
Dr. Tyler noted that it is anticipated that benefits will continue to increase and apprised that
there is also an expected increase in the cost of utilities.
(Mr. Austin returned at 10:52 a.m.)
Mr. Austin noted that section 2.8 of SACS Core Requirements is to support the mission of
the institution.
Dr. Tyler made the following recommendations:
•
Increase in effective tax rate
•
Step increase for full-time employees
•
Increase adjunct faculty salary from $19.50 to $21.50 per hour
•
Differential tuition – health sciences
•
Increase course repeater fees (tier system)
•
Growth at 3%
•
Lebanese American Institution of Higher Education Contract
•
Establish Southeast Workforce Building
•
Sign language
Mr. Austin noted that college readiness needs to be addressed and that there is a
difference between individuals needing a refresher course and those needing
developmental education classes. Mr. Austin inquired of the current process to move both
sets of students through the system efficiently.
(Ms. Mullins stepped out at 11:03 a.m.)
Mr. Schechter asked Ms. Loredo to address developmental education at the Academics
Committee in December.
(Ms. Mullins returned at 11:04 a.m.)
(Ms Perez stepped out at 11:05 a.m.)
(Ms. Perez returned at 11:08 a.m.)
Mr. Schechter noted that if the community is not receiving our message regarding the state
funding issues, the blame will lie with the college.
Ms. Mullins inquired if the proper relationships are with the superintendents, the legislators,
and/or the coordinating board. Mr. Schechter noted that all relationships are important and
apprised that the public is the forum to drive change.
Houston Community College
Budget Committee – November 7, 2011 - Page 5
Ms. Mullins asked for the percentage of developmental education students that retake the
same courses.
Dr. Tyler provided possible ways to reduce expenditures.
Mr. Austin suggested that a review of recommendations to introduce Science, Technology,
Engineering and Mathematic (STEM) related subjects to young children in a childcare
facilities and develop partnerships with local government.
Mr. Schechter noted the only tuition increase built into the budget is differential tuition.
Dr. Tyler provided an update on the debt and provided recommendations of which debt to
retire first if a General Obligation bond is passed.
ADJOURNMENT
With no further business, the meeting adjourned at 11:30 a.m.
Recorded, transcribed and submitted by:
Sharon R. Wright, Manager, Board Services
Minutes Approved: _________________________________