10/25/14
BSUFA Response to single item M&C regarding HLC and NTC
The Bemidji State University Faculty Association (BSUFA) Executive Committee
received at a single item Meet and Confer held on July 16, 2014 a proposed report to
the Higher Learning Commission (HLC) regarding the proposed reorganization of
Northwest Technical College (NTC), in order to maintain contractual timelines this
is to serve as our response. Be it recognized that the date of receipt falls during
summer break and majority of faculty are unavailable for review and comment of
the document. Further discussion needs to occur once the faculty has returned from
break and the HLC has responded to this report.
After review of the document, the Executive Committee and
faculty available for comment, the BSUFA has noted some areas
of concern.

First and foremost we are concerned about the financial implications of
further relations with NTC. We have lost considerable funding and
degradation of resources up to this point. We feel additional funding should
be provided by the state and MnSCU to facilitate any further endeavor with
NTC. There will be no direct negative impact on BSU funding as a result of
the reinvention of NTC. Through reinvention, we are actually hoping to have
a positive impact on funding in the future as new NTC programs are added
with transferability to BSU.

We are concerned of the confusing of the University’s mission and reputation
in the eyes of the public and internally. BSU’s mission is articulated in its
new strategic plan. The purpose of the HLC Change of Control request is to
clearly separate the missions of the institutions, keep the accreditation
separate, and change the administrative oversight of NTC’s academic
programming. Changing the oversight of academic programming at NTC is
necessary at this time.

The uncertainty around HLC accreditation for the Tech, marketing the new
programs, and the general logistics of this project is a major concern. From
the standpoint of the BSU faculty, we understand a great deal of the
resources that are shared between the Tech and BSU will have to be utilized
to obtain the stated goals in light of the proposed changes. In the draft
document, it was not articulated how this would occur and if it would limit
the access and use of shared resources for BSU faculty and students. Overall,
the reinvention of NTC is a work in progress with several steps that need to
be completed. The past year was spent outlining a general direction for that
reinvention, which was one of those steps. All administrative support
functions at the college were already being shared with BSU except for the
registrar’s office and academic affairs. Due to the need for a change in
leadership at NTC, the Change of Control became the next step in the process
of reinvention, moving academic affairs and registrar functions into the mix
of shared services between NTC and BSU. In the fall, a master academic
planning process at NTC will finalize the academic programming array for
the college for the next three years. Final decisions regarding marketing and
promotions, staffing, and other logistics for the reinvention of NTC will also
take place over the course of the coming academic year.

There is a great concern regarding the projected enrollment estimates that were
supplied, including those for the upcoming academic year, and the reliance on
these estimates for the financial success of the proposed changes. It is uncertain
how the shortfall will be addressed if the projections are not met. As of now, the
procedure has been to borrow from the BSU general fund, a practice that has
not been viewed favorably by the BSU faculty. It should be articulated how
financial shortfalls and obligations will be addressed if the enrollment estimates
are not met. The impact of an enrollment decline on the NTC budget will not be
offset by BSU funds. Any shortfall in the NTC budget will be owned by NTC.

In line with our concerns about developmental courses, it was unclear how many
BSU students will be "encouraged" and/or directed to take developmental
courses at the Tech. If this is in fact the strategy the BSU faculty, especially those
in the affected programs, will insist on being involved and informed as to how it
will address the goals and mission of BSU as well as how it will change the
staffing of those departments. Developmental courses at NTC will be addressed
as part of their master academic planning process in the fall. There has been no
discussion about BSU students taking NTC developmental courses. The CAS
Dean at BSU will work closely with the Interim Dean of NTC on how to address
the developmental needs of students at NTC and BSU. It is simply too early to
know the outcome of the collaboration. BSU faculty will be invited to participate
and become involved in any discussion concerning developmental courses that
may impact BSU students and will be invited to participate and be fully informed
of the discussion concerning developmental education at NTC.

We are concerned that the perceived administrative workload increase at BSU
because of the proposed changes will be justification for an expansion of
colleges and deans. There are no funds for expansion of colleges or deans. Any
such expansion comes with growth that justifies the need for such expansion.
Currently, there is no growth.

We have concerns regarding general education, and with how developmental
education will be handled and staffed. If it is envisioned that BSU students
taking developmental courses at the Tech and Tech students taking liberal
education courses at BSU there is a concern that it has not been articulated as
to how transportation and classroom access for these students will be
addressed. We suspect that the HLC will also be very interested in this issue.
As stated earlier, this is a work in progress. While the concerns are certainly
valid, they will be addressed through the reinvention process and in the
planning that will occur over the coming academic year.
The following are the notes from the July 16, 2014 Meet and
Confer indicating our understanding and initial questions and
comments.
PPT of Hanson’s presentation today will be forwarded. Doc draft will be posted today.
Relationship w/ BSU
Task force report is out. Chaired by Maki. Recently changed leadership at NTC.
Revenue/expense is in the red, until 2016 - based on proposed plan. The numbers aren't
solid but projections. they are seeking 18-1 faculty/student ratio. Currently at 14. Might
be natural process as new programs are introduced
Will rebrand and market NTC. Marketing themes: focused prep for careers and flexible
delivery. Customized training. Emphasizing this as part of reinvention. Intense marketing
through F 2015. Will be renamed.
Business Plan. Expecting to continue $500K loan, w/o mechanism to repay. Won’t be
paying it back. Also need to recover 600k. One time measures to gain some $$: won’t
fill provost post, will sweep some Optivation carry forward. Bob will be dean interim.
Admin projects increase of tuition rates, but not sure of how much. Gen Eds will be at
BSU rate Gen Eds will be taught at BSU by BSU faculty. Cuts in NTC faculty in fall of
2015 will announced this fall. Staff positions eliminated this fall, the extra admin work will
be taken on by BSU admins and BSU staff.
Hanson to maintain separate accreditation.
There will be no addition of faculty lines until 2015 and after. May let faculty go as they
new programs. Will move faculty around. May need to take on some money. Looking for
external collaborations. Looking for big money from grants. Perhaps $10m in sight.
Linking programs at NTC to BSU through deans to college. See Hanson’s report. In this
way they are borrowing academic and leadership stability.
Gen Ed and Articulation. Gen Ed will go through BSU. Faculty still have control of
transfer. NTC will not be teaching the Gen Eds. JU: Will BSU be forced to make
articulation agreements? Hanson: We would sure like you to. But I would like every dean
to look at articulation. We'd like you give a student an array of tech and BA courses.
Tadlock: What we're trying to do is integrate deans here with new programs there. We'd
like faculty to be part of this. We're moving the Gen Eds over here. We want to integrate
new programs at NTC with BSU. JU: In which direction are we going to eliminate
courses? Tadlock: No courses eliminated here. JU: Will we have hires to cover new
programs? Hanson: Yes, but that's going to come out over time. MM: What about
additional challenges with new students from NTC attending classes here? They can
have problems with university classes. Hanson: That's an assumption. CB: We're not
making any adjustments to admission standards for this? Hanson: No.
Developmental Courses. The plan is to bring in Developmental Ed at NTC. Hanson
mentioned that developmental courses taught at NTC have not been successful in the
past. MCM: Those courses have not been taught by faculty educated in teaching
developmental courses, like Basic writing in Composition. Hanson mentioned bringing in
the appropriate facuolty to teach these courses.
Marek: The plan means administration numbers become static, with deans taking on
more work. How are they with that? Tadlock: They are committed.
JU: What's this going to to with accreditation? Will it affect us? Hanson: I don’t see any
effect on us. The changes we're making is in part to address accreditation at NTC. It's
important to maintain separate accreditation.
CB: You’re sending this proposal to HLC.. JU: You need to move fast, and the repport
needs to be fluid. Hanson: We would prefer another year to plan. Looking at 2015 fall for
a new plan, and a 3 year phase-in. HLC visiting in fall.
Tuition increase. Looking at a 3% increase in tuition at NTC. Tadlock: But the
faculty/student ratio is the important thing. And we need to consider the language we
using in discussing this: It can't be them and us. They are us. Our success rests on
them, and theirs on us. JU: Getting Gen Ed over here is good to stabilize things.
Hanson: We want stabile enrollment here. CB: Faculty guard their turf when creating
new programs. Hanson: That will be worked out through the deans. JU: Straight
question: Are our jobs maintained here? Tadlock: Look at the documents. [Implied yes.
The cuts will be taken at NTC.]
Marek: Question on the projections. You’re looking at a 10% jump in enrollment one
year? Maki: That may be a stretch, but to get a balanced budget, it's necessary to get
the 10%. CB: That's the number we need to get to.
Hanson: We’re looking to adding certificate and diploma programs. New programming,
more attractive courses and more flexible scheduling, such as half-term, weekend,
Fridays. We'll be selling a different product. The alternative is closing it, and I'm not
ready for that. There would be minimal financial impact on BSU to close NTC, but major
impact on community, which would impact BSU.
Chancellor has blessed it.
Notes: The document is still in draft and will be changing in detail through fall, giving
Senate a chance to discuss matters.
End of Meet and confer notes.
I am including excerpts from faculty that are also concerned and
were available to comment.
I think it is a complex plan but unless we close NTC something has to be done. Generally I think
it is a workable plan. I like how faculty will receive development assistance. Customized learning
is a good idea and I think NTC could play a major role in this area for this region of Minnesota.
I am concerned about the increased work load on BSU, the cost involved in a new web page, and
the cost of a name change and the marketing required to accomplish this.
I did not find how the presence of the community will be increased.
This plan will take massive management as it is unrolled over time and as with BSU’s programs
seems to be overly tied to student enrollment. I think we need to lobby the state legislature to
increase funding for higher education. Education should not stop at grade 12 – to fully develop
critical thinking and good citizens we need to encourage general / liberal education for
everyone.
I could not find anywhere how much BSU will need to contribute to balance NTC's operating
deficit in the current year Fy 2015
I also saw no indication of what would happen if NTC failed to make its enrollment
numbers. How much a decline will be considered too much? We have faced earlier
situations where we – the BSUFA – were assured that if numbers weren’t met, a proposal
wouldn’t go forward…and the numbers weren’t achieved, but the project went forward
regardless.
In addition, there is nothing here about they are distinguishing NTC’s mission from BSU’s,
particularly since both will be gearing up major marketing efforts in order to attract more
students. …the dependence on student tuition dollars and no other revenue streams (including
but not limited to extra funds from MNSCU and the legislature) is a disturbing trend…as others
have pointed out, what happens when needed student enrollment numbers are not met? I
think we know even if it is unstated; it comes out of BSU, and then means it’s going to hit faculty
before anything else.
I don’t know if anyone is a fan of South Park. But they had an episode with the “Underpants
Gnomes” who stole kids’ underpants. The business plan: Step 1: collect underpants Step 2:
shrug shoulders Step 3: Profit!
The proposed business plan for NTC looks about the same: Step 1: Marketing Step 2: Cuts Step
3: raise tuition 2016 and after (because students we’ve just recruited to go there are going to be
thrilled at paying yet more and stay) Step 4: shrug shoulders and hope and maybe pray Step 5:
PROFIT! Look in fact at Step 5 of the Business Plan: “IT IS ASSUMED THAT CUSOMIZED
TRAINING AND OUTREACH WILL BEGIN GENERATING A POSITIVE BOTTOM LINE…..” Lovely
assumption, but how is that a business plan? And the assumption has assumptions behind it
(like that the marketing campaign will be a successful one and not only be targeted at the right
audience but result in them attending NTC rather than BSU or another school). We’re just
going to assume that the proposed action will yield the results we need.
Let me say a word for our BSU staff: some of them already have far too much to do. But
according to Business Plan #7, staff functions that will be eliminated at NTC will be “absorbed”
by the staff at BSU! And supposedly at NO COST to BSU! Well, there may not be a financial cost
(though there will be), but the cost to the quality of services offered at BSU because of a staff
stretched too thinly will be high and when students become frustrated and not getting services
at BSU, they won’t be retained by BSU, and so the long term cost for BSU will be potentially be
quite high. And we can’t really afford that.
I also wonder about our deans taking in new departments, and what that means for our faculty
and curriculum.
So a number of concerns.
Faculty comments regarding the following excepts follow:
From report:
The FY2015 budget relies heavily on one-time measures to balance the budget:
i. No Provost position
ii. Reduction of Operating Reserve by $200,000
iii. Sweeping of Optivation carryforward of $300,000
iv. Sweeping of Technology carryforward of $150,000
v. Sweeping of Technology carryforward of $150,000
Supplies and equipment budgets were permanently reduced by ten percent in FY2014.
Inflationary
increases to the budgets are made starting in FY2018. Until then it is assumed that inflationary
costs will
need to be covered by reallocation. The student services allocation is reduced further due to the
significant reduction in staff.
It is assumed there is no chief operating officer (Provost or Dean) cost for the college for 20142015. The
salary will be paid by BSU since it is currently a BSU administrator. It is built into the budget for
FY2016
for the college to add a Dean level position from their budget.
It is assumed that by the middle of fall semester 2014 several staff positions will be eliminated
as base
staffing costs will need to decrease by forty to fifty percent . It is also assumed that BSU staff will
take on
additional duties to assist with the operation of the college. It is assumed these additional duties
will be
absorbed by the university at no or little cost to the college. The savings when fully
implemented in
FY2016 will be about $600,000.
The $500,000 operating loan from BSU in FY2014 was recorded as a state appropriation transfer
so
there is a significant increase in state appropriation from FY2013 to FY014 followed by a
significant
decrease between FY2014 and FY2015. There are no provisions in this budget that the $500,000
would
be paid back to BSU in the near future. Based on the current state economic conditions along
with our
regular poor performance in the allocation model, there is a modest two percent increase in
state
appropriation planned for FY2016 and FY2017. FY2018 and FY2019 appropriations are calculated
at
FY2017 levels.
FYE Enrollment is projected to decrease by about 10% for 2014-2015 and then rebound to the
FY2014
level in 2015-2016. In 2016-2017, the overall enrollment composition is roughly made up of the
following clusters:
• Allied Health – 200 FYE, Developmental Education – 200 FYE, Technical Programs – 300 FYE,
Education
– 50 FYE. Total – 750 FYE
Enrollment would then slightly increase for 2017-2018 and 2018-2019. If enrollment does not
bounce
back in FY2016, it is likely that other assistance will be needed.
Concerns based on above excerpts:
I have attached a PDF of what I consider some of the key quotes from the HLC Draft Report.
In the quotes you can see how the FY 2015 budget is being balanced ( with the exception of
the Provost savings all one time money that cannot be used after FY 2015). It also mentions
the lay off on non-instructional staff ( there are currently 19.8 FTE staff so a 40% lay off
would be the elimination of eight jobs), I would guess when that comes about there will be
a great deal more media attention. However to the most worrisome thing to me mirrors
Shelia, Rod’s, and Larry’s concern on enrollment. The projected enrollment for FY 2015 is
648 FYE (that is still a projected number as of July 7th the Tech was at around 340, but by far
not the worse in MnSCU) the budget numbers in the report assume that the Tech will get
back to its FY 2014 enrollment 720 FYE in FY 2016, which would represent a one year
enrollment increase of 11% . For FY 2017 the enrollment is expected to be 750 FY an
increase of 4.1% over FY 2016 enrollment or a 15.7% increase over FY 2015. All of this will
be taking place during the biggest enrollment decline for the two year colleges in MnSCU
history ( more on that as the summer progresses). I have serious doubts with these
assumptions.
These projections demonstrate just how far out of reality the authors are. The big
declines in enrollment can be tied, I believe, to the job shortages and huge pay that can
be earned in North Dakota. Individuals can go to ND and get a job, a high paying job in a
short period of time.
I have had future teachers leave BSU to work in ND; they say. " I can earn more in a few
years in ND than I can in a lifetime as a teacher." Why would a person incur a two year
debt or a four year debt, for a degree, no matter how flashy, trendy, or up to date, when
they can go to ND, get a job and make more money than they ever would with a degree.
Students that I have talked to in HS laugh at the idea of a 2 year and 4 year degree. I can
get a job and make more than you - and they are right. Adults are leaving Mn, so are our
future clientele.
Until this trend stops - all of the projections by the authors should be challenged and
rejected. They have no data for their numbers. We can at least count BSU students who
have gone to ND for work. I know I had three last year. Others may have had more.
Until the authors come up with something realistic and substantive, all of their projects
should be thrown out and replaced with flat growth or declines.
All the non-metro two year institutions in Minnesota are seeing major enrollment declines,
especially in the male dominated trades such has plumbing, electrician, carpentry, auto etc.
due to the North Dakota opportunities. I also think that much of the gen ed. enrollment
that will be eliminated at the tech. in the plan will be going to on line classes with distance
Minnesota where students pay far less tuition than BSU charges, not to BSU.
Maybe it is just me, but shouldn’t MnSCU be assisting NTC as well? It seems glaringly
obvious that MnSCU is making this totally dependent on BSU’s ability to keep NTC
afloat. The message one could construe from MnSCU’s lack of willingness to assist is that
they have no genuine interest in keeping NTC alive and, at best, are ambivalent about the
situation. MnSCU’s lack of input (to my knowledge) says volumes! Just a thought.
End of faculty comments
The BSUFA recognize the University’s desire for HLC and faculty approval of any
proposal further entwining NTC and BSU. We await the HLC’s response and the
opportunity for the entire faculty to review and comment on the proposed actions.
Further we feel it is imperative that the IFO and MnSCU be enjoined in this
discussion as some proposals may involve Meet and Negotiate, not Meet and Confer
matters. At this point the best we can offer is a somewhat neutral response until our
concerns are addressed and the proposed actions are firmed up.
Thank you.
Christopher R. Brown
President
BSUFA