MEETING OF THE
BUDGET SUB-COMMMITTEE COMMITTEE
OF THE BOARD OF TRUSTEES
HOUSTON COMMUNITY COLLEGE
June 14, 2012
Minutes
The Budget Sub-committee of the Board of Trustees of Houston Community College held a
meeting on Thursday, June 14, 2012 at the HCC Administration Building, 3100 Main, 2nd
Floor, Seminar Room A, Houston, Texas.
COMMITTEE MEMBERS PRESENT
Christopher Oliver, Committee Chair
Mary Ann Perez, Committee Member
Bruce Austin, Alternate Committee Member
Eva Loredo
Carroll G. Robinson
ADMINISTRATION
Mary S. Spangler, Chancellor
Art Tyler, Deputy Chancellor/COO
Renee Byas, General Counsel
Shantay Grays, Interim Executive Officer to the Chancellor
William Carter, Vice Chancellor, Information Technology
Stephen Levey for Charles Cook, Vice Chancellor, Instruction
Diana Pino, Vice Chancellor, Student Services
Margaret Ford Fisher, President, Northeast College
Fena Garza, President, Southwest College
William Harmon, President, Central College
Zachary Hodges, President Northwest College
Irene Porcarello, President Southeast College
Michael Edwards for Betty Young, President, Coleman College
Karen Edwards for Willie Williams, Chief Human Resources Officer
OTHERS PRESENT
Jarvis Hollingsworth, System Counsel, Bracewell & Giuliani
Thomas Urban, President, Faculty Senate
Other administrators, citizens and representatives from the news media
CALL TO ORDER
Ms. Perez called the meeting to order at 2:58 p.m. and declared the Committee convened
to consider matters pertaining to Houston Community College as listed on the duly posted
Meeting Notice.
(Mr. Robinson joined the meeting at 2:59 p.m.)
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Budget Sub-committee – June 14, 2012 - Page 2
BUDGET Workshop
Motion - Mr. Austin moved Ms. Perez seconded.
(Ms. Loredo joined the meeting at 3:00 p.m.)
Dr. Art Tyler provided an overview of the budget process to include the following Board and
Administration projected issues for 2012-2014.
Mr. Austin inquired if the funds previously taken are currently being utilized differently. Dr.
Tyler noted that currently the college is receiving 17% of funding from the State, which is
down from 35%.
Dr. Tyler continued with the overview and apprised that there are critical issues for the
Board to consider.
Mr. Austin recommended utilizing tactical database linkages and requested to see a data
linkage at entry point with semester reporting requirements. He noted this would allow a
student to be tracked from arrival to completion.
Ms. Perez informed that adding advisors would help to track students. Mr. Austin apprised
that he is concerned that there is no tracking of class performance and matriculation
through the system. Dr. Tyler informed that Dr. Diana Pino will provide a report on
completion in August.
Dr. Pino noted that as the focus turns to completion points, plans are progressing to include
annual reports on success and completion by different populations.
Dr. Tyler provided an overview of revenues and expenses for current fiscal year 2012, and
the approved budget for 2013.
(Ms. Loredo stepped out at 3:24 p.m.)
Dr. Tyler apprised that the actual percentage from the state appropriations is projected
between 47% and 66%.
Mr. Robinson inquired of grants under revenues. Dr. Tyler informed that the amount
captures grants in Fund 2.
Mr. Austin requested that administration develop a sinking fund for areas such as
information technology and disaster recovery.
Mr. Robinson inquired regarding salaries and the surplus and asked how much of the $11
million reserve is from faculty contract changes. He further inquired why Coleman is going
to a 33 hour work week because of financial considerations. Dr. Tyler informed that the
10.5 month contract was to improve the quality of faculty. Dr. Tyler deferred to Coleman
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Budget Sub-committee – June 14, 2012 - Page 3
regarding the 33 hour work week. Mr. Austin informed that it should not unilaterally be done
unless on some rational basis and noted either way it needs to come before the Board.
Dr. Tyler provided an overview of additional recommendations:
• New Advisors
• Salary Increases all Faculty and Staff
• Increase Adjunct Faculty Rate for Masters and PHD
• Increase Waivers for In-district Students
o Developmental Education
o Dual Credit and Early College
 Initiation of additional dual credit for North Forest
 New class of seniors for Alief
 Additional sections for HISD, Missouri City and Stafford
• Create a Trust Fund to Endow Dual Credit
o 10 year development
o Recommend 1st installment of $5 million at 9/1/12 fund balance
o Board will determine future installments annually during budget process
• Estimated Fund Balance: $48.1 million
• Required Fund Balance (8/31/12): $32.6 million
Mr. Robinson inquired if an early college will be placed in North Forest. Mr. Austin
informed that the early college is part of the annexation commitment.
Mr. Austin noted that the only funding source for dual credit is contact hours. He
recommended utilizing a needs test similar to free lunch program to recover some of the
costs.
Dr. Tyler informed that a cost benefit analysis has been completed on dual credit and noted
the high schools will need to commit to twenty students in each dual credit class to cover
the cost.
(Ms. Loredo returned at 3:38 p.m.)
Mr. Austin recommended an article be written on the benefits of dual credit by the
presidents and Communications. Mr. Robinson requested that a review be conducted on
how enterprise can be implemented into dual credit.
Dr. Tyler provided an update of realized savings from the Budget Task Force
recommendations.
(Mr. Oliver joined the meeting at 3:50 p.m.)
Dr. Tyler asked the Board to consider at the August COTW some of the recommendations
as well as the sinking fund requested by Mr. Austin.
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Budget Sub-committee – June 14, 2012 - Page 4
Mr. Oliver requested a definition of momentum points. Dr. Spangler informed that they are
performance based requirements the state deems important.
Mr. Oliver recommended scheduling an additional budget workshop for the full Board.
Mr. Austin inquired regarding the bill requiring Coordinating Board conducting analysis. Mr.
Remmele Young provided a summary and informed that the report that was released June
13th will be forwarded to the Board.
Mr. Austin noted that HCC should be able to deliver a compelling message as to what
community colleges do in regards to academics and workforce.
Mr. Robinson recommended the Board review all the marketing products to fashion a
compelling message.
Mr. Oliver expressed that he supports Mr. Austin and Mr. Robinson on their remarks
regarding compelling message and that it should be done quickly.
Mr. Robinson recommended holding discussions regarding increasing the base.
Dr. Tyler presented the unrestricted funds from Funds 1 and 3. He provided an overview of
the Auxiliary Budget for Qatar.
(Mr. Oliver stepped out at 4:19 p.m.)
Dr. Tyler informed that the Board will decide how the enterprise funds will be utilized. He
noted that the largest amount of auxiliary funds is received from leased space at 3100
Main.
Dr. Tyler noted that historically the following areas have recorded deficits:
• The conference and training center
• HCC-TV
• Neo’s Market
• Fitness center
• Heinan Theatre
Dr. Tyler provided an overview of next year’s budget to include the student auxiliary funds.
Mr. Austin recommended considering bringing back the Neo night where wild game is
served. Dr. Tyler informed that currently every Thursday a dinner is held at a nominal cost.
Mr. Robinson recommended developmental packages on existing land. Dr. Tyler informed
that Procurement is working on Public/Private partnership for this purpose.
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Budget Sub-committee – June 14, 2012 - Page 5
Mr. Robinson informed that the students would like to raise their academic fee and advised
the students to develop the specifics for use of the fee.
Mr. Oliver noted that the majority of the Board supports the students and that a feasible and
viable plan needs to be developed.
Mr. Robinson requested reviewing savings with mass construction.
Motion – Mr. Austin moved to move discussion to retreat. Ms. Perez seconded. The
motion passed with a vote of 3-0.
ENGAGEMENT PROPOSAL WITH QATUS ADVISORS
Motion – Mr. Austin moved and Ms. Perez seconded.
Ms. Perez and Ms. Loredo inquired if the retainer of $15,000 per month was reasonable.
Dr. Tyler informed that the retainer is all inclusive is within reason.
Dr. Spangler noted that the proposal is for 3 years and recommends negotiating for a oneyear contract with the option to extend.
Ms. Perez inquired if this will reduce international travel. Dr. Tyler answered yes.
Vote - The motion passed with vote of 3-0.
ADJOURNMENT
With no further business, the meeting adjourned at 4:53 p.m.
Recorded, transcribed and submitted by:
Sharon R. Wright, Manager, Board Services
Minutes Approved:
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