Florida Board of Governors

03/22/2012

ACTIONS TAKEN: Meeting of the Florida Board of Governors, March 22

FOR IMMEDIATE RELEASE—March 22, 2012

TALLAHASSEE, Fla.—In regular business, the Florida Board of Governors today took the following actions. This list represents highlights and is not the complete list of business. Please consult the web site www.flbog.edu for all agendas and meeting materials. Unless otherwise indicated, votes below were taken by the full Board based on earlier work and discussion within active, standing committees; the committees forward their respective business items to the full Board of Governors agenda for final action and any further discussion necessary. The full Board meeting is the concluding meeting of the two days of proceedings.

Report from Board Chair Dean Colson
Chair Colson talked about the two bills in the 2012 Session (which are both awaiting Governor’s action) that focus on supporting the ongoing accountability measures and made remarks about House Higher Education Committee Chair Bill Proctor for his long-time leadership and especially this past Session.

Report from State University System Chancellor Frank Brogan
A new Chief Academic Officer & Vice Chancellor has been hired, which concludes the national search we convened in September. Chancellor Brogan welcomed and introduced Dr. Jan Ignash, who earned her Ph.D. in education from UCLA and her master’s and a bachelor’s degrees from Michigan State University. She is joining the Florida Board of Governors having served most recently as the Chief Academic Officer for the State of Washington Higher Education Coordinating Board. Chancellor Brogan noted that she is experienced in the role of a System office relative to multi-institutional coordination aimed at increasing performance and accountability. Her experience spans three decades in education with increased responsibility — both at the state level and at the campus level, providing her with a thorough understanding of the challenges in higher education. She joins the office on April 2, and has been at the Board’s proceedings this week.

Confirmation of a New President (Chair Dean Colson)
The Board of Trustees of New College of Florida presented its selection after a national search for a new President: Dr. Donal O’Shea. For more info: www.flbog.edu/pressroom/news.php?id=439

New College Board of Trustees Chair Bob Johnson reviewed the national search process. He said the Board of Trustees was most impressed with the institutional vision of Dr. O’Shea, his distinguished administrator skills, his inspirational leadership of academia and faculty retention success, as well as his collaborative conversations with New College leadership. Dr. O’Shea also had extensive conversations with the student body during the interview process, and Chair Johnson said the excitement of those conversations was palpable.

Board of Governors member Michael Long of Sarasota – also a student at New College – remarked about the positive student feedback he received from classmates.

A motion was made and seconded to confirm Dr. O’Shea. Chair Colson invited Dr. O’Shea to outline his observations to date and how his work at New College will benefit and contribute to the success of the State University System, since New College has a unique, innovative and differentiated mission as Florida’s public liberal arts honors college. Dr. O’Shea complimented the Board of Governors on its recently completed Strategic Plan for 2012-2025. He said he is excited about the Board’s focus on a knowledge-based economy and that New College wants to continue to help maintain this as a institutional and statewide priority.

From the Facilities Committee (Chair Dick Beard)
Voted to approve a recommendation and request from the UCF Board of Trustees to name UCF’s library the John C. Hitt Library, in recognition of President Hitt’s 20 years of leadership.

Heard a presentation on final PECO appropriations from the 2012 Session awaiting the Governor’s budget review and action. A PowerPoint regarding other budget issues is in the agenda back-up materials.

Voted to form a Board of Governors Task Force on Facilities Funding – it will be impaneled as quickly as possible for the following reasons, among others:
• The State University System currently relies on state Public Education Capital Outlay dollars – or “PECO” – as the primary source of both university construction and building maintenance. While the Board of Governors is grateful for the capital outlay funding that was appropriated during the budget conference process in Session (awaiting the Governor’s action on the budget), the consistent and understandable message from our state elected leaders is that the current budget situation makes significant state investment in capital planning limited, at best, for the future. The System needs between $200 million and $400 million per year to maintain and modernize the existing state investment in university buildings and utility infrastructure, according to national norms. For FY 2012-13, total appropriations for this purpose were less than $10 million.
• PECO funding in the State University System is now at an historic low – for a fact sheet on PECO, see www.flbog.edu/pressroom and click on Current Info Briefs. PECO resources are scarce and must be shared amid K-12/Dept. of Education, charter schools, Florida College System (28 state and community colleges), State University System (11 institutions), the School for the Deaf and Blind, vocational rehab sites, etc. – please see the fact sheet for historical info.
• Further, a bill that would have altered the way PECO projects are funded – providing some flexibility to universities and other PECO-reliant entities – failed to pass in the final days of Session. The Senate also conducted important research on potential PECO alternatives in 2011, but its final report was not released in the 2012 Session.
• Finally, by law, PECO funds cannot be used to construct student life facilities, such as student unions, recreational fields, and fitness centers. In this area alone, we know from a previous study (conducted by the Board that the Legislature mandated) that there is more than $650 million of unmet and identified needs for student life facilities. Again, however, PECO funds cannot be utilized in this instance – and the $650 million needed cannot be bonded.

From the Budget & Finance Committee (Chair Tico Perez)
Approved the Board’s policy guidelines for the universities to prepare and develop their FY 2013-14 Legislative Budget Requests for the 2013 Session. This is a routine annual notice. LBRs are submitted as one State University System package with 11 components to the Legislature each fall.

Approved the estimated FY 2012-13 operating budgets for auxiliary university facilities that have existing bond covenants requiring Board of Governors approval. Auxiliary enterprises are nationally regarded to be self-supporting operations – bookstores, student health centers, parking services and housing operations are examples. The following universities have active and outstanding bond issues and therefore submitted the information for their respective auxiliary facilities found in the agenda back-up materials: UF, FSU, FAMU, USF, FAU, UCF, and FIU.

New or Increased Fee Proposals from the Universities
A total of seven new or increased fee proposals from five universities were submitted to the Board of Governors this year for the annual cycle. A four-page executive summary of the proposals begins on page 60 of the full Board meeting packet – or page 60 within the Committee agenda materials. Each detailed proposal follows that summary section. Pursuant to the request by Chair Perez, every university pursuing a new or increased fee was urged to have at least one Student Government representative with the University President (or his/her designee) at the committee’s deliberations in order to present the proposal and field questions. Any university’s proposal for a new or increased fee must be first heard and approved at the university Board of Trustees level, then submitted to the Board of Governors. Any new or increased fee cannot be implemented until the Fall 2012 term. Chair Perez also reminded the group that the 2010 governance agreement signed between the Legislature and the Board of Governors tasked the Board with review and authorization for any new student fees or increases to certain fees; up to that point, the Legislature had determined student fees. Chair Perez noted this is the second annual review cycle for any new or increased fees since the governance agreement. The committee utilized the guidelines in the Board of Governors regulation, which outlines that any voluntary proposal must include the following: detailed purpose of the fee; demonstrated student-based need that is not being met through another service or fee; process utilized to ensure student input when it was voted on by the university Board of Trustees; financial impact on students; accountability measures to track the usage of the fee; proposed restrictions or limitations placed on the fee; and estimated revenue and proposed expenditures. The Board regulation also states that the fee cannot be an extension of or cover the same service as an existing fee already in statute, and cannot be utilized to create additional bonding capacity. The fee also should support a service or activity that a majority of students either will participate in or derive a benefit from. Finally, the fee cannot be utilized to support services or activities that have been or are paid for with Education and General (E&G) state base funds. (A list of current student fees by university is located on the web site at – www.flbog.edu/about/budget/current.php.) Funds generated by the fees cannot be transferred to secured debt, and are not bondable. Every five years, the university Boards of Trustees must review any fee in place. For any proposal that does not pass the full Board of Governors, there is an appeal process. (Therefore, any fee proposal withdrawn by a university is not eligible for an appeal.)

Wednesday’s votes and recommendations by committee members (the full Board’s final action follows down below):
Committee Chair: Tico Perez of Orlando.
Committee Vice Chair: Tom Kuntz of Orlando.
Committee Members: Dick Beard of Tampa, Dean Colson of Coral Gables, Michael Long of Sarasota (Florida Student Association representative), Ava Parker of Jacksonville, John Rood of Jacksonville, John Temple of Boca Raton, and Norm Tripp of Boca Raton.

University Fee Amount (per credit hour unless noted)

1. FAMU Bar Review Preparation Fee $2,400 for the course

(Motion made and seconded: to approve the proposal.)
Committee action taken: Proposal moves to the full Board with a committee recommendation to approve, by a vote of 9-0.
Beard yes
Colson yes
Long yes
Parker yes
Rood yes
Temple yes
Tripp yes
Kuntz yes
Perez yes
2. FAMU Doctor of Physical Therapy Board Review Preparation Fee $200

Withdrawn by the university.

3. UWF Green Energy Fee up to $1.00

(Motion made and seconded: to approve the proposal.)
Committee action taken: Proposal moves to the full Board with a committee recommendation to approve, by a vote of 7-2.
Beard yes
Colson yes
Long yes
Parker yes
Rood yes
Temple yes
Tripp no
Kuntz no
Perez yes

4. UWF Nautilus Card Fee Increases campus card for students from $10 to $20 annually.

(Motion made and seconded: to deny the proposal.)
Committee action taken: Proposal moves to the full Board with a committee recommendation to deny it, by a vote of 6-3.
Beard no
Colson yes
Long yes
Parker yes
Rood yes
Temple no
Tripp yes
Kuntz yes
Perez no

5. UNF Academic Enhancement Fee 5% of tuition / $5.16 per credit hour

(Motion made and seconded: to approve the proposal.)
Committee action taken: Proposal moves to the full Board with the committee not recommending approval, by a vote of 5-4.
Beard yes
Colson no
Long no
Parker yes
Rood yes
Temple yes
Tripp no
Kuntz no
Perez no

6. USF Academic Enrichment and Opportunity Fee
The fee would be tied to Legislature’s base tuition increase (not in the FY 2012-13 budget as passed by Legislature); USF’s Technology and Financial Aid Fee would not be increased by the same amount, thus making this fee action, whenever implemented, “net-neutral.”

(Motion made and seconded: to deny the proposal.)
Committee action taken: Proposal moves to the full Board with a committee recommendation to deny it, by a vote of 5-4.
Beard no
Colson yes
Long no
Parker yes
Rood yes
Temple no
Tripp yes
Kuntz yes
Perez no

7. UF Undergraduate Enhancement Fee 6.55% of tuition / $6.76 per credit hour

(Motion made and seconded: to approve the proposal.)
Committee action taken: Proposal moves to the full Board with the committee not recommending approval, by a vote of 8-1.
Beard no
Colson no
Long no
Parker no
Rood yes
Temple no
Tripp no
Kuntz no
Perez no

FULL BOARD FINAL ACTION

University Proposed New or Increased Student Fee
FAMU Bar Review Preparation Fee
Approved by voice vote.

FAMU Doctor of Physical Therapy Board Review Preparation Fee
Withdrawn by the university.

UWF Green Energy Fee
Approved by voice vote.

UWF Nautilus Card Fee
Withdrawn by the university.

UNF Academic Enhancement Fee
Withdrawn by the university.

USF Academic Enrichment and Opportunity Fee
Withdrawn by the university.

UF Undergraduate Enhancement Fee
Withdrawn by the university.

Committee notes: The Board of Governors is scheduled to take up tuition differential requests at its June meeting (Budget & Finance Committee meeting, and then the full Board – June 20-21, in Orlando). The June meeting also includes an expected simultaneous review of the respective universities’ “work plans” and how their respective four-year non-binding forecasts on undergraduate tuition and fees correspond to their goals and plans regarding future baccalaureate degrees to be awarded. Universities are scheduled to submit their proposals to the Board office in May. The Legislature historically has assumed a 15 percent increase in undergraduate tuition when constructing its overall budget, as it did this past Session.

From the Strategic Planning Committee (Chair Chris Corr)
Chair Corr facilitated an informal discussion about the Board of Governors’ Strategic Plan and noted the diligent work of the committee in finalizing the document last fall. He asked for the committee members and the university presidents present to take time to discuss steps taken to date, and to offer thoughts about next steps – including university work plans and key performance metrics.

After extensive discussion, Chair Corr said the committee will focus on the performance metrics that will measure progress toward both the System’s and the universities’ goals. “The magic is in the metrics,” said Chair Corr, who noted that determining the right metrics is imperative – as well as ensuring the metrics for the university work plans are clear, understandable and aligned with the Strategic Plan. He said that the 28 metrics in the Strategic Plan need to now be more granular for next steps and to approach the entire exercise in a holistic way. Chancellor Brogan said staff will work with the institutions and the provosts on the University Work Plan template. Chair Colson made a motion to accept the template draft presented at the committee meeting, subject to consultation and changes made with the university provosts and with the approval of Chair Corr. Mr. Rood asked that a meeting of the full committee by phone be held before June so that all of the committee members could review the final draft as soon as possible. The committee agreed with these steps.

Chair Corr said he is looking forward to continuing to build the framework of accountability. He emphasized that any time we need to recalibrate items in the documents already produced, he wants to keep that door open.

At-a-glance recap of the past two years in building the Board of Governors’ three-part framework of accountability:
•The Board of Governors established a performance-based “dashboard” with key metrics, added to the then-annual report, which had a very different document format;
•The Board of Governors had the universities produce annual "university work plans," with detailed forward-looking information for the Board of Governors to better understand both their unique challenges and visions – the work plans were 11 documents, and the Board today is moving toward having a consistent template introduced that universities would utilize for their June presentations;
• The Board of Governors took up the universities’ Legislative Budget Requests earlier in its deliberations in 2011 (early summer), so that that info arrives at the Board the same time as the work plans – this is both for improved efficiency and to increase the members’ meaningful review time long before the Board submits an LBR for the State University System (each fall);
•The Board of Governors in November 2011 finalized a new Strategic Plan (2012-2025) featuring 28 separate metrics focused on productivity and excellence, which other states are even now inquiring about. These 28 metrics will be part of the next iteration of the dashboard, expanding next year’s accountability metrics;
• The Board of Governors at its January 2012 meeting presented a very different looking Annual Accountability Report that takes what was previously two major volumes of information (including 11 sections that required cross-referencing in the past) into a streamlined 26-page document providing the key metrics and standing across the System.

From the Trustee Nominating and Development Committee (Chair Mori Hosseini)
Voted to appoint Robert Barlick of Coral Gables to the Board of Trustees for Florida International University. (Separate press release issued.)

The FAMU BOT vacancy application deadline has been extended to April 4 at 5 p.m. and will be taken up by the committee at a future date. The previous press release with details about the application process is on the web site at www.flbog.edu/pressroom.

About the State University System of Florida
The State University System of Florida is governed by a 17-member Board of Governors, a constitutional body and led by appointed public servants. The System is comprised of 11 institutions with a total enrollment of nearly 330,000 students, making it the second-largest public university system in the nation in terms of enrollment (some states have more than one university system). The Florida Constitution (Article IX, Section 7) was amended by the state's voters in 2002 to establish a statewide system of governance for all Florida public universities. As a result, the Florida Board of Governors was created in 2003 to oversee the State University System of Florida. Responsibilities include defining the distinctive mission of each institution and ensuring the well-planned coordination and operation of the System. The Board’s 17 members include 14 appointed by the Governor, with three serving by virtue of their designations (a faculty member, a Florida Student Association student representative, and the Florida Commissioner of Education). The Board of Governors appoints a Chancellor who serves as the chief executive and administrative officer of the State University System. For more, including the Board’s Annual Report that reflects accountability measurements and benchmarks occurring at each institution, see www.flbog.edu.