Minutes are not final until approved by the Board of Regents at the June 2009 meeting.

Transcription

1 Minutes are not final until approved by the Board of Regents at the June 2009 meeting. BOARD OF REGENTS* and its BUDGET & FINANCE COMMITTEE NEVADA SYSTEM OF HIGHER EDUCATION Cedar Building, Marlette Hall Western Nevada College 2201 West College Parkway, Carson City April 2, 2009 Member s Present: Members Absent: Other Regents Present: Others Present: Mr. Ron Knecht, Chair Mrs. Dorothy S. Gallagher Mr. James Dean Leavitt Mr. Kevin J. Page Mr. Mark Alden Dr. Jason Geddes Dr. Mike Reed, Vice Chancellor Ms. Crystal Abba, Assistant Vice Chancellor Ms. Sandi Cardinal, Assistant Vice Chancellor Mr. Larry Eardley, Assistant Vice Chancellor Ms. Ruby Camposano, Director Banking & Investments Mr. Bart Patterson, Chief Counsel Mr. Vic Redding, Budget Officer Mr. Michael Richards, President, CSN Mr. Carl Diekhans, Interim President, GBC Dr. David Ashley, President, UNLV Dr. Milton Glick, President, UNR Ms. Patty Charlton, CSN Mr. Richard Hinckley, CSN Mr. Mark Rauls, CSN Ms. Kathleen Badgett, DRI Dr. Cleve McDaniel, DRI Dr. Mike McFarlane, GBC Mr. Buster Neel, NSC Ms. Glenda Krietlow, SCS Ms. Jennifer Hilbert, TMCC Mr. Jowel Laguerre, TMCC Mr. Craig Scott, TMCC Mr. Gerry Bomotti, UNLV Mr. Bruce Shively, UNR Dr. Janet Vreeland, UNR Mr. Daniel Neverett, WNC Also present were faculty senate chairs Dr. Sondra Cosgrove, CSN; Dr. Dave Decker, DRI; Mr. Jim Lowe, NSHE; and Dr. Bill Follette, UNR. Student government leaders present included Mr. David Waterhouse, ASCSN President, CSN; Mr. Eron Sanchez, SGA President, GBC; and Mr. Adam Cronis, CSUN President, UNLV. (BUDGET & FINANCE COMMITTEE 06/18/09) Ref. BF-1, Page 1 of 7

2 Budget & Finance Committee Minutes Page 2 Chair Knecht called the meeting to order at 11:01 a.m. with all members present except Regent Alden. 1. Approved Minutes The Committee recommended approval of the February 5, 2009, meeting minutes. (Ref. BF-1 on file in the Board Office.) Regent Page moved approval of the February 5, 2009, meeting minutes. Regent Gallagher seconded. Motion carried. (Regent Alden was absent.) 2. Information Only Second Quarter Fiscal Year NSHE All Funds Report - The second quarter fiscal year All Funds report for the NSHE was presented. (Ref. BF-2 on file in the Board Office.) Mr. Larry Eardley, Assistant Vice Chancellor, reported the All Funds report is an unaudited statement of current operating fund revenues and expenditures for the 2nd quarter of FY 2009 ending December 31, The report excludes student loan, endowment and plant funds. Three system-wide summary schedules are reported on pages three through five, followed by each institution s report starting on page six. In the summary table on page three, system revenues are reported by revenue source and expenditures are reported by function for each reporting period. Revenues and expenditures reported for the 2nd quarter FY 2009 are compared to revenues and expenditures reported for the 2nd quarter FY 2008 and to fiscal year end Percentage comparisons of the 2nd quarter 2009 over the two prior periods are also provided. Total revenues collected of $703.4 million were approximately 97% of the second quarter fiscal year expenditure revenues of $722.6 million and approximately 48% of the fiscal year end 2008 revenues of $1.46 billion. Total expenditures of $664 million for the second quarter fiscal year 2009 were approximately 75% of the second quarter fiscal year 2008 expenditures and approximately 54% of the fiscal year end expenditures of $1.38 billion. The fund balance for second quarter fiscal year 2009 increased by approximately $39.3 million over the time period. In summary, the revenues and expenditures have decreased from the last reporting period. One of the reasons is that in FY 2008 the campuses received $20 million in investment income, which is reflected in the 2008 totals. In 2009 the Investment Committee suspended the allocation of those investment income reserves. The second summary schedule groups all revenue sources into four general categories for each reporting period. The revenue categories represent the main sources of current operational funds; state appropriations, student fees, self supporting, and grants and contracts. The revenues and expenditures are displayed as a percentage of total revenues collected and total expenditures realized for each reporting period. (BUDGET & FINANCE COMMITTEE 06/18/09) Ref. BF-1, Page 2 of 7

3 Budget & Finance Committee Minutes Page 3 2. Information Only Second Quarter Fiscal Year NSHE All Funds Report (Continued) The next summary table shows a comparison of each institution s revenue collections by source and the percentage of each institution s revenue collections to the total system revenues collected through the second quarter. For example, UNR had approximately $268.6 million in revenues reported through the second quarter and it represents 36% of the total revenue collected for the System of $749.2 million. 3. Information Only Second Quarter Fiscal Year Fiscal Exception Report - The second quarter fiscal year Fiscal Exception report was presented. (Ref. BF-3 on file in the Board Office.) Mr. Eardley reported that an analysis of the 2 nd quarter Fiscal Exception Reports determined that the following institution accounts required reporting. The UNR Fire Science Academy (FSA) operational and construction accounts were reported with a combined cash deficit of $12.5 million. The Governor has recommended to the Legislature purchasing the Carlin facility for a National Guard Readiness Center and the Board has approved using the proceeds to reduce the capital and/or operating debt. The School of Medicine s (SOM) Renown hospital accounts reflect receivables of approximately $825,000 for the second quarter. $1.29 million of the $1.4 million in expenditures has been billed at the FY 2008 rates and $649,000 is past due days per the attached accounts receivable aging schedule. Payment is pending formal contract extension. The SOM s VA hospital accounts reflect receivables of $1.1 million for the second quarter. Of this amount $684,000 is unbilled, $542,000 is the current receivable and $75,000 is the prior year receivable. The prior year receivable was reduced to $48,000 in January. Approximately $57,000 is past due 120 days per the attached aging schedule. The Sunrise hospital account reflects receivables of $918,010 for the second quarter. Of this amount $295,000 is unbilled and $622,000 is current receivables. Subsequent to quarter end a contract has been finalized and accounts receivable were cleared through December. CSN reported a deficit in the Intercollegiate Athletic Baseball Program of $126,000 for the second quarter. The deficit has been subsequently reduced by $38,000. The college anticipates that additional donations and sales will address the deficit by fiscal year end. CSN reported a deficit in the Workforce Development Business Assessment and Consulting account of approximately $31,000 for the quarter. The program will close at fiscal year end and the services provided by the program will be offered in all other program areas. The account deficit will be cleared by year end through departmental funds. Mr. Eardley reported there were no other fiscal exceptions that required reporting. Mr. Eardley reported the 2 nd quarter fiscal year 2009 status reports of the state operating budget state appropriations are displayed on pages 5-27 of the reference (BUDGET & FINANCE COMMITTEE 06/18/09) Ref. BF-1, Page 3 of 7

4 Budget & Finance Committee Minutes Page 4 3. Information Only Second Quarter Fiscal Year Fiscal Exception Report Report (Continued) material. The status reflects the original and current budgets, the actual revenues and expenditures to date, projected revenue and expenditures and the ending budget balances. In general, all accounts reported, the fiscal year state appropriated budget reflects the Board of Regents approval to reserve for reversion to the state general fund appropriations totaling approximately $39 million to meet the Governor s request to revert 6.23% of the NSHE appropriation for the biennium totaling $79.84 million. The current operating budget was also adjusted per Board and IFC authorization to collect and expend excess student surcharge fees totaling approximately $4 million to help offset the general fund reductions. General fund appropriations were also reduced FY 2009 by $15.3 million due to a reduction in retired and active employee group health insurance subsidy rates and an by another $4 million in workforce development assessments. All other revenues are expected to be collected as budgeted with the exception of the following: UNR projects a revenue shortfall of approximately $2.4 million over current budget in student fee revenues of $965,000, investment income of $887,000 and recharge credits totaling $310,000. UNR appropriation area budgets anticipate general fund revenue shortfalls over current budgets of approximately $195,000 in unjustified COLA adjustments. UNLV projects student fee revenue collections and investment income collections will be less than budgeted by approximately $2.7 million. GBC projects student fee revenues to exceed budget by $135,000 and investment income to be less than budgeted by $14,000. GBC will request Board approval to seek IFC approval to expend the excess student fee amounts over budget to fund part-time faculty due to increased enrollments. TMCC projects student fee revenues to exceed budget by approximately $118,000 due to increased enrollments and investment income to be short of budget by $129,000. TMCC will request Board approval to see IFC approval to expend excess student fee amounts over budget to fund part-time faculty due to increased enrollments. WNC projects investment income to be short of budget by approximately $78,000 for the quarter. NSC anticipates student fee revenues will be short of budget by approximately $1.2 million due to enrollment levels less than projected and investment income to be less than budgeted by $38,567. Regent Knecht asked if NSC was the only institution that was running short of revenue because of enrollment problems. Mr. Eardley noted that he believed UNLV was short of enrollments also, but in some instances it is because of the initial calculations. Mr. Bomotti stated UNLV is projecting student fee revenues to be short of budget, but when using a rolling three year average, it may suggest a trend that may not be realistic. (BUDGET & FINANCE COMMITTEE 06/18/09) Ref. BF-1, Page 4 of 7

5 Budget & Finance Committee Minutes Page 5 4. Approved - IFC Approval for Additional Student Fee Revenues The Committee recommended approval to expend excess student registration fees for part time faculty and to seek Interim Finance Committee authorization to expend additional student fee revenues within the State Supported Operating Budget of the NSHE for fiscal year (Ref. BF-4 on file in the Board Office.) Per the State Authorized Expenditure Act (SB576), Mr. Eardley requested the System to seek IFC approval to expend excess student fee amounts totaling $484,768 in FY 2009 for GBC and CSN. Also per the Authorized Expenditure Act, the System may expend any additional registration fee revenues without approval of IFC for the purpose of funding additional part-time faculty necessary due to enrollments exceeding budget. Board approval is requested to expend the excess student fee amounts totaling $2.3 million in FY 2009 for part-time faculty positions at TMCC, GBC and CSN. Ms. Charlton stated the CSN request represents the expansive growth that they have experienced. CSN is projecting enrollments in excess of 2,270 students above the budgeted level. The additional registrations will allow CSN to continue to offer parttime sections and meet the demand of the higher enrollments. Mr. Diekhans noted GBC has experienced large enrollment increases, with the three year rolling average projecting a 7% increase, while the actual enrollment will be between 8 and 9%. These funds will allow GBC to hire additional part-time instructors. Mr. Scott noted that TMCC s request is for $186,000 to be spent on part-time instructors, reflective of a 5% enrollment increase over budget. Regent Gallagher moved approval to expend excess student registration fees for part time faculty and to seek Interim Finance Committee authorization to expend additional student fee revenues with the State Supported Operating Budget. Regent Page seconded. Motion carried. (Regent Alden was absent.) 5. Information Only Second Quarter Fiscal Year Budget Transfers State Supported Operating Budgets The report of the second quarter fiscal year budget transfers of state appropriated funds was presented to the Committee. (Ref. BF-5 on file in the Board Office.) Board policy requires budget transfers between functions of more than $100,000 of state appropriated funds be reported to the Board quarterly. Transfers reported are as follows: School of Dental Medicine reported a transfer of $565,000 from instruction and academic support functions to the Dental School s Public Safety costs at the Shadow Lane Campus. All other NSHE institutions reported they had no transfers in the second quarter. (BUDGET & FINANCE COMMITTEE 06/18/09) Ref. BF-1, Page 5 of 7

6 Budget & Finance Committee Minutes Page 6 6. Approved Registration Fee Distribution, FY 2010 and FY The Committee recommended for approval the revised registration fee distribution. (Ref. BF-6 on file in the Board Office.) Mr. Mike Reed, Vice Chancellor, stated that this issue originally came forward in June 2008 as a recommendation from the Audit Committee for revision to the various fees. Over the course of various meetings, the definitions were revised, and appropriate changes were made to the language. In February those changes were approved and the distribution fee schedules are being brought forward, consistent with the new language. Regent Knecht asked how extensive discussions were with the students in regards to the new definitions. Mr. Reed understood that the student organizations have been involved in the discussions of fee distributions. Regent Page asked why student association fees were removed for the UNR undergraduates in 2008 per Board action. President Glick stated the student leaders came forward and had long wanted to have real control over their student fees. They asked the board to charge themselves a $5 per credit hour fee and in exchange they released the $4.43 which was built into the students fees for use of the general fund. Mr. Adam Cronis, UNLV Student Body President, reported they had good consultation on this item with administration. There has been some dialogue for future discussions and what they may be facing with current budget issues. Regent Leavitt moved approval of the Registration Fee Distribution, FY 2010 and FY Regent Page seconded. Mr. David Waterhouse, CSN Student Body President, noted that CSN fees, approved last year, have not changed. Motion carried. (Regent Alden was absent.) 7. Information Only Tuition and Fee Comparison - The Committee discussed tuition and fee comparisons of public higher education institutions in the west. (Ref. BF-7 on file in the Board Office.) Regent Knecht believed a big problem was the failure of students in Nevada to continue their education on all levels. This is not a new idea and the statistics are well known. Nevada has high failure to complete high school rates and those that do complete, less than half go onto college and less than half those complete within six years. Regent Knecht s point in raising this issue is that Nevada has the lowest completion rate in the country. People want to know why. It is not because of high tuition and fees, since Nevada is one of the lowest. Regent Leavitt thought that the Board might want to engage in another discussion on student retention. Nevada is using many resources in acquiring students and not enough resources are being utilized in retaining them. (BUDGET & FINANCE COMMITTEE 06/18/09) Ref. BF-1, Page 6 of 7

7 Budget & Finance Committee Minutes Page 7 7. Information Only Tuition and Fee Comparison (Continued) Regent Knecht stated the Chancellor has made it clear that Nevadans do not know what they want to do and who they want to be. There have been continuing conversations on strategic planning and this kind of information needs to feed into that discussion. Regent Knecht stated they have heard that students are challenged financially, as they have always been, and it is a problem they want to deal with. He hoped to clarify the issue and prompt some thought on what the real challenges are so they can begin to solve it. President Glick noted he cannot speak to the state as a whole, but at UNR there is a lack of culture of completion. A major effort is to make it a culture of completion as well as a sticky campus, where students take full time loads. This is not just a university problem it is a state problem. President Glick agreed with the Chancellor that there is not the same belief in Nevada in obtaining a college education, mostly because the state s economy has offered a good quality of life without a college education. Even more important than getting a high graduation rate from the university and community colleges, is that there is a high graduation rate from high school. Regent Knecht agreed with President Glick. Part of the System s job is to change the culture. Nevada is facing economic problems because the other opportunities in the state are diminishing. President Glick restated that Nevada is 50 th in the county in the likelihood that a 19 year old will go to college. Also if you look at the likelihood that someone from a financially disadvantage family will go to college it is 12%. When this happens there is a generation after generation of lack of success. President Glick believed the future of the state is dependent on all the young people who are willing to work at it and want an education. Mr. Jowel Laguerre, TMCC Vice President for Academic Affairs, stated the System has a bit of good news called the Non-traditional, No More. The System applied for a grant through Luminare Foundation, because Nevada is identified as one that has the highest needs for people with bachelor s degrees, but yet we are the lowest in that regard. What has been found is that there are 20,000 students that have attended Nevada institutions, who are either within 30 credits of completing at the university or 15 credits of completing at a community college. At TMCC there are 297 students that have completed 60 credits, but did not earn an associate degree. Of those students, 42 of them have completed the degree, but have not applied to get the degree. The System decided that instead of them applying for the degree they were going to award them the degree. The System is making good progress in this area. 8. Public Comment None. 9. New Business None. The meeting adjourned at 11:58 a.m. Prepared by: Angela R. Palmer Program Officer I Submitted for approval by: Scott G. Wasserman Chief Executive Officer of the Board of Regents (BUDGET & FINANCE COMMITTEE 06/18/09) Ref. BF-1, Page 7 of 7