Approval Minutes Approval of June 8, 2017, Meeting Minutes

Transcription

1 J. Finance, Technology, and Human Resources Committee *2:00 p.m. (CT), September 14, 2017 Room C90, John H. Gray Building Madisonville Community College, Madisonville, Kentucky Call to Order Page Roll Call Approval Minutes Approval of June 8, 2017, Meeting Minutes **Action: Ratification of Personnel Actions Action: The Kentucky Work Ready Skills $100 Million Bond Pool KCTCS Project Awards Round Two Action: KCTCS Interim Project Approval Scope Increase: Pikeville Technology Center Action: KCTCS Biennial Budget Request Update: KCTCS Quarterly Financial Report Update: Supplier Diversity Report Update: Other Postemployment Benefit (OPEB) Trust Report Update: Technology Solutions Report Update: Office of Audit Services Report Next Meeting November 30, 2017 Adjournment *Start time will be upon conclusion of the preceding event. ** All items listed with two asterisks (**) are considered to be routine by the Board and will be approved by one motion. An item may be removed from the consent agenda at the request of a regent. Agenda items removed from the consent agenda will be discussed in their normal sequence at the full Board of Regents meeting. Consent agenda items will be discussed separately during committee meetings of the Board of Regents. 123

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3 DRAFT MINUTES KCTCS Board of Regents Finance, Technology, and Human Resources Committee June 8, 2017 Committee Members Present: Ms. Robert G. Cooper, Committee Chair Mr. Barry K. Martin, Committee Vice-Chair Ms. Ellen R. Braden Ms. Lisa V. Desmarais Committee Member Absent: Mr. Porter G. Peeples, Sr. Ms. Marcia L. Roth Mr. Donald R. Tarter Mr. Mark A. Wells CALL TO ORDER Committee Chair Robert G. Cooper called to order the meeting of the Kentucky Community and Technical College System Board of Regents Finance, Technology, and Human Resources Committee at 2:08 p.m. (ET) on June 8, The meeting was held in the Citizens National Bank Community Room of the Harold Rogers Student Commons Building at Somerset Community College. The press was notified of the meeting on May 31, Hon. Mike Murray, KCTCS General Counsel, served as parliamentarian. There being a quorum present, the meeting began with the approval of minutes. APPROVAL OF MINUTES ADDITIONS OR CHANGES TO THE AGENDA ACTION: RATIFICATION OF PERSONNEL ACTIONS Chair Cooper asked if there were any corrections to the March 9, 2017, minutes presented in the meeting materials. There being none, the minutes were declared approved as presented. There were no additions or changes to the agenda. RECOMMENDATION: That the KCTCS Board of Regents ratify the personnel actions listed in the agenda materials. Chair Cooper called on KCTCS President Jay K. Box to present the item. KCTCS Vice President Wendell Followell assisted with the presentation. It was noted that the personnel actions presented were in accordance with reporting guidelines and policies adopted by the KCTCS Board of Regents. President Box noted that the System is net-zero with positions this year, compared to last year when extensive eliminations had to be made. Chair Cooper called for discussion. During the discussion, it was requested that the agenda materials include the number of current open positions. Chair Cooper called for a motion. 125

4 DRAFT MOTION: Ms. Desmarais moved and Mr. Tarter seconded that the Finance, Technology, and Human Resources Committee recommend that the KCTCS Board of Regents ratify the personnel actions listed in the agenda materials. VOTE: The motion was approved unanimously. UPDATE: RESOURCE DEVELOPMENT REPORT Chair Cooper called on President Box to present the item. Vice President Larry Ferguson assisted with the presentation. The report provides an update on the private giving and sponsored projects, grants, and contracts. Private gift income by donor purpose and source for the System and the donor source by college for each KCTCS college are presented in this report. This reported showed total gift income at $8,482, Sponsored Projects, Grants, and Contract funds are stated by source and purpose for the System Office in total; total awards to each KCTCS college are included in the report. The top grants and contracts received during the reporting period are highlighted. Total resources secured through grants and contracts for this reporting period (July 1, 2016 April 28, 2017) was $54,851, OVERVIEW OF BUDGET DEVELOPMENT Chair Cooper called on President Box to provide an overview of the next five agenda items, which are each components related to the Annual Budget Development. The PowerPoint presentation for this overview is available on the KCTCS Board of Regents June 8-9, 2017 meeting website: ACTION: KCTCS TUITION RECOMMENDATION: That the KCTCS Board of Regents approve and report to the Council on Postsecondary Education (CPE) a $6 per student credit hour tuition increase in for in-state students. This action combined with the CPE parameter for tuition rates for out-of-state students results in the following per credit hour tuition rates for KCTCS colleges: In-State Students $162 Out-of-State Students From Contiguous Counties $324 Other Out-of-State Students $567 Chair Cooper called on President Box to present the item. Vice President Followell assisted with the presentation. KRS gives the Council on Postsecondary Education (CPE) the authority to determine tuition rates for Kentucky s state-supported universities 126

5 DRAFT and KCTCS. At its March 31, 2017, meeting, CPE established a percent tuition rate increase parameter in for in-state students for each state-supported university and KCTCS. This parameter provides that the KCTCS in-state tuition rate may increase to $162 per credit hour for CPE also established the parameter for out-of-state tuition rates requiring that these shall be at least two times the in-state rate. The recommended in-state and out-of-state tuition rates are consistent with the CPE parameters for KCTCS tuition and consistent with the out-ofstate rate structure that KCTCS has used for the past several years. Additional tuition revenue for generated by the tuition rate increase will be available to the KCTCS Board of Regents in developing the KCTCS operating budget as presented in Agenda Item I-6, Action: KCTCS Annual Budget. Chair Cooper called for discussion. There being none, he moved to the motion. MOTION: Ms. Desmarais moved and Mr. Tarter seconded that the Finance, Technology, and Human Resources Committee recommend that the KCTCS Board of Regents approve and report to the Council on Postsecondary Education (CPE) a $6 per student credit hour tuition increase in for in-state students. This action combined with the CPE parameter for tuition rates for out-of-state students results in the following per credit hour tuition rates for KCTCS colleges: In-State Students $162 Out-of-State Students From Contiguous Counties $324 Other Out-of-State Students $567 VOTE: The motion was approved unanimously. ACTION: COMPENSATION AND CLASSIFICATION STUDY RECOMMENDATIONS AND PHASE I IMPLEMENTATION RECOMMENDATION: That the KCTCS Board of Regents adopt the recommendations of the completed Compensation and Classification Study and approve Phase I of the implementation. Chair Cooper called on President Box to present the item. Vice President Followell assisted with the presentation. President Box noted that Attachment A of the materials show the details of implementation of Phase I of the Compensation and Classification Study. Implementation of the Study will enable KCTCS to be more market competitive in retaining, recruiting, and compensating employees. It will 127

6 DRAFT enable KCTCS to communicate and adhere to a more consistent approach to employee compensation and classification systemwide. President Box noted that implementation of the Study will enable KCTCS to move employees to new pay bands minimums and reclassify positions to titles that appropriately reflect position duties and responsibilities. President Box shared that the Study incorporates a sound Performance, Planning, and Evaluation (PPE) process that rewards employees for achieving KCTCS goals while balancing financial resources. President Box also shared that the fiscal year (FY) Salary Schedule has been updated as a result of the Study, accounts for changes in the employment market, and correspondingly provides pay bands reflective of current market conditions for both faculty and staff. Chair Cooper called for discussion. There being none, he moved to the motion. MOTION: Mr. Martin moved and Ms. Desmarais seconded that the Finance, Technology, and Human Resources Committee recommend that the KCTCS Board of Regents adopt the recommendations of the completed Compensation and Classification Study and approve Phase I of the implementation. VOTE: The motion was approved unanimously. ACTION: SALARY SCHEDULE RECOMMENDATION: That the KCTCS Board of Regents approve the KCTCS Salary Schedule which includes salary ranges for regular full-time faculty and staff. Funding for the salary schedule must be approved by the KCTCS Board of Regents within the KCTCS annual budget. Chair Cooper called on President Box to present the item. Vice President Followell assisted with the presentation. President Box noted the proposed KCTCS Salary Schedule has been designed in consideration of market conditions, best practices, and available resources. The KCTCS Board of Regents last revised the KCTCS Salary Schedule in June The Salary Schedule, Attachment B, reflects monthly salaries to accommodate the period of assignment in months for regular fulltime faculty and staff. Faculty assignments range from 10 to 12 months. Staff assignments range from 9 to 12 months. President Box also noted that regular, full-time positions are slotted into the salary bands of the schedule with consideration of the benchmark comparisons, internal equity, and academic rank. President Box shared that the Salary Schedule is a significant component of the implementation of Phase I of the Compensation and Classification Study. 128

7 DRAFT Chair Cooper called for discussion. There being none, he moved to the motion. MOTION: Mr. Martin moved and Ms. Braden seconded that the Finance, Technology, and Human Resources Committee recommend that the KCTCS Board of Regents approve the KCTCS Salary Schedule which includes salary ranges for regular full-time faculty and staff. Funding for the salary schedule must be approved by the KCTCS Board of Regents within the KCTCS annual budget. VOTE: The motion was approved unanimously. ACTION: SALARY INCREASE RECOMMENDATION: That the KCTCS Board of Regents approve a 3.0 percent recurring salary increase in for each full-time regular KCTCS faculty and staff who earns at least the Fully Met Job Requirements (M) rating in the KCTCS performance evaluation process. The KCTCS President shall have authority to determine how and when the salary increase shall be implemented. President Box noted that the recurring salary increase would be funded using recurring funding available to KCTCS in The KCTCS President s Leadership Team supports the increase. The salary increase will be provided to only those full-time regular employees who earn at least the Fully Met Job Requirements (M) rating in the KCTCS performance evaluation system. President Box reminded the committee that the annual budget did not include a salary increase for employees. President Box shared that Kentucky s other postsecondary education institutions have awarded compensation increases at a level equal to or greater than 1, 2, or 3 percent within the last five years. The last time that the KCTCS Board of Regents approved a recurring salary increase greater than 2.5 percent for KCTCS faculty and staff was in the budget. For the past 3 years, KCTCS has awarded an average salary increase of 0.67 percent, with an average salary increase of 1.3 percent over the last 5 years. President Box noted that by awarding the 3.0 percent recurring salary increase, it would support and bolster the KCTCS Board of Regents desire for KCTCS to have a competitive salary structure as defined by the Compensation and Classification Study completed by the Hanna Resources Group in Chair Cooper called for discussion. There being none, he moved to the motion. MOTION: Mr. Tarter moved and Ms. Desmarais seconded that the Finance, Technology, and Human Resources Committee recommend that the KCTCS Board of Regents approve a 3.0 percent recurring salary increase in for each full-time regular KCTCS faculty and staff who earns at least the Fully Met Job Requirements (M) rating in the KCTCS performance 129

8 DRAFT evaluation process. The KCTCS President shall have authority to determine how and when the salary increase shall be implemented. VOTE: The motion was approved unanimously. ACTION: KCTCS ANNUAL BUDGET RECOMMENDATION: That the KCTCS Board of Regents adopt the Budget Resolution, Attachment C, regarding the Annual Budget for the Kentucky Community and Technical College System. This budget and its provisions will be effective July 1, 2017, through June 30, Chair Cooper called on President Box to present the item. Vice President Wendell Followell assisted with the presentation. President Box noted that the annual budget directs the use of financial resources available to KCTCS to help achieve the mission and vision of KCTCS. This budget places the highest priority on students and the effective and efficient use of available resources. The KCTCS budget funds fixed cost increases in current employee benefits programs and funds the cost of faculty promotions. It funds fixed cost increases in utilities and facility insurance and maintains a 3.0 percent nonrecurring budget reserve for each college, the systemwide operations and support programs, the Fire Commission, and the Kentucky Board of Emergency Medical Services. The KCTCS President s Leadership Team supports the recommended budget. President Box noted that the KCTCS budget will enable the implementation of Phase I of the Compensation and Classification Study Recommendations. It will also provide an updated Salary Schedule for FY , reflective of the Study. This budget will provide a meaningful salary increase for all full-time regular KCTCS faculty and staff who earn at least the Fully Met Job Requirements (M) rating in the KCTCS performance evaluation system. The proposed resolution, Attachment C, provides for adequate fiscal control and oversight by the KCTCS Board of Regents consistent with common practice within postsecondary education institutions. At the same time, the resolution provides a reasonable amount of discretion to the KCTCS President and establishes limits and thresholds that the President cannot exceed without the expressed consent of the Board. The proposed budget and its provisions will be effective for the fiscal year beginning July 1, 2017, and ending June 30, The operating budget authorizations approved by the Board total $852,852,100 for the fiscal year beginning July 1, 2017 and ending June 30, Of this amount, $549,205,700 are unrestricted current funds; and $303,646,400 are restricted funds from sources such as federal, state, private gifts, grants, contracts, or appropriations. 130

9 DRAFT In addition, the Board approved capital budget authorizations totaling $152,170,280 from bond funds and agency funds is approved, contingent upon receipt and availability of those funds for KCTCS for fiscal year beginning July 1, 2017, and ending June 30, Chair Cooper called for discussion. There being none, he moved to the motion. MOTION: Mr. Martin moved and Mr. Wells seconded that the Finance, Technology, and Human Resources Committee recommend that the KCTCS Board of Regents adopt the Budget Resolution (Attachment C) regarding the Annual Budget for the Kentucky Community and Technical College System. This budget and its provisions will be effective July 1, 2017, through June 30, Chair Cooper called for the vote. VOTE: The motion was approved unanimously. UPDATE: KCTCS QUARTERLY FINANCIAL REPORT Chair Cooper called on President Box to present the item. Vice President Followell assisted with the presentation. It was reported that information for the third quarter of fiscal year , which ended March 31, 2017, was derived from the KCTCS Administrative Financial System. The Statement of Revenues and Expenditures reflects the actual program and operational expenditures compared to the fiscal year budget approved by the KCTCS Board of Regents on June 10, Total revenues of $691 million reflect 82 percent of the budgeted revenue and appropriated funds. Current fund expenditures and budget reserve through the fiscal year total $573 million, 68 percent of the expenditures budgeted for the year. As of the end of the third quarter, tuition for was at 98 percent realized ($207.4 million). Expenses for were down slightly at 68 percent (reflective of cost control measures implemented for the year) with overall revenues exceeding expenses at the end of the third quarter by $118 million. The Statement of Net Position, although not specifically required in the Board s Annual Budget Adoption Resolution, has also been included in the Quarterly Financial Report to give the Board a periodic snapshot of the KCTCS financial position using the most common accounting-based schedule. While significantly influenced with declining enrollment and associated tuition shortfalls, the reduction in state appropriation and the negative effect of the state s pension liability, KCTCS s Statement of Net Position remains fiscally sound at $556.5 million as of March 31, Chair Cooper called for discussion. There being none, he moved to the next agenda item. 131

10 DRAFT UPDATE: FACILITIES MANAGEMENT AND SUSTAINABILITY STATUS REPORT Chair Cooper called on President Box to present the item. Vice President Wendell Followell assisted with the presentation. The report titled Facilities Support Services and Sustainability Status Report was provided to the Board online and provides updates related to KCTCS capital construction projects; sustainability, including facilities utilization; and other initiatives, such as Environmental Health and Safety (EHS) and Crisis Management. ce/facilities%20status%20report%20booklet%20june%202017/facilities%20s tatus%20report%20booklet%20june% pdf Highlights that were shared with the committee included a summary of the status of KCTCS BuildSmart projects, property acquisitions and dispositions, Emergency Operations Plans, and the facilities utilization metrics using the Higher Education Scheduling Index (HESI). Chair Cooper called for discussion. There being none, he moved to announce the next meeting. NEXT MEETING ADJOURNMENT The next regularly scheduled Finance, Technology, and Human Resources Committee meeting is for September 14, 2017, at Madisonville Community College, Madisonville, Kentucky. Mr. Martin moved and Mr. Tarter seconded that the Finance, Technology, and Human Resources Committee adjourn. VOTE: The motion was approved unanimously. The Finance, Technology, and Human Resources Committee meeting adjourned at 4:05 p.m. (ET). 09/14/17 Date Approved by the Finance, Technology, and Human Resources Committee Lisa V. Desmarais Committee Chair 132

11 DRAFT Attachment A Compensation and Classification Study Recommendations Phase I Adopt a compensation philosophy. Standardize policies and procedures. Implement starting salary algorithm. Centralize job code creation attributes KCTCS System-wide. Fund positions under band minimum to band minimum, fund positions affected by Fair Labor Standards Act (FLSA), offer a hard to fill adjustment, and provide for annual increases as funding allows. 133

12 DRAFT Proposed KCTCS Salary Schedule* Funding for the salary schedule must be approved annually by the Board of Regents. Faculty (Monthly**) Attachment B Rank Minimum*** Market Maximum Instructor $3,634 $4,542 $5,449 Assistant Professor $4,086 $5,175 $6,264 Associate Professor $4,715 $6,050 $7,385 Professor $5,590 $7,267 $8,943 Staff (Monthly**) Band Minimum*** Market Maximum 1 $1,467 $1,833 $2,200 2 $1,567 $1,958 $2,350 3 $1,700 $2,125 $2,550 4 $1,867 $2,333 $2,800 5 $2,067 $2,583 $3,100 6 $2,300 $2,875 $3,450 7 $2,544 $3,183 $3,823 8 $2,806 $3,525 $4,244 9 $3,142 $3,958 $4, $3,557 $4,500 $5, $4,071 $5,167 $6, $4,646 $5,917 $7, $5,315 $6,792 $8, $6,174 $7,917 $9, $7,189 $9,250 $11, $8,390 $10,833 $13, $9,841 $12,750 $15, $9,808 $12,750 $15,692 *Applies to regular, full-time positions only. **Faculty and staff annual salaries are based on the period (number of months) of assignment. Faculty assignments range from 10 to 12 months; staff assignments range from 9 to 12 months. 134

13 DRAFT Attachment C Kentucky Community and Technical College System Board of Regents Annual Budget Adoption Resolution Be it Resolved, that upon due consideration and upon recommendation of the Kentucky Community and Technical College System (KCTCS) President, the following operating budget authorizations totaling $852,852,100 are approved for KCTCS for the fiscal year beginning July 1, 2017, and ending June 30, Of this amount, $549,205,700 are unrestricted current funds; and $303,646,400 are restricted funds from sources such as federal, state, private gifts, grants, contracts, or appropriations. Be it Resolved, that upon due consideration and upon recommendation of the KCTCS President, the capital budget authorization totaling $152,170,280 from bond funds and agency funds is approved, contingent upon receipt and availability of those funds for KCTCS for fiscal year beginning July 1, 2017, and ending June 30, In the event current fund revenues now estimated should not be realized, the KCTCS President shall take appropriate action to reduce budget authorizations to amounts sufficient to ensure that expenditures do not exceed available revenues. The KCTCS President shall report to the Board in advance any major deviations from the approved operating budget. In the event actual annual revenues exceed estimated revenues, the KCTCS President may authorize an increase in the current funds expenditure budget up to 2.0 percent of the Board s authorized expenditure level. Increases greater than 2.0 percent of the authorized expenditure budget must have prior approval of the Board. 135

14 DRAFT The KCTCS Quarterly Financial Report shall contain sections that reflect the KCTCS July 1 opening budget, amendments to the opening budget, and expenditures to date. This report shall provide the necessary detail for amending the budget as permitted by this resolution. The purchase of any item of equipment greater than $200,000 must have prior approval of the Board of Regents and must be contained in the Biennial Legislative Appropriations Act in accordance with KRS Chapter 45. A capital construction project with a scope greater than $1,000,000 must have the prior approval of both the KCTCS Board of Regents and the Commonwealth Capital Projects and Bond Oversight Committee, pursuant to KRS 45. Equipment and capital construction projects with scopes greater than these amounts shall be reported as part of the KCTCS Quarterly Financial Report. All units and individuals within KCTCS incurring financial obligations of KCTCS funds resulting from this authorization shall observe and adhere to applicable laws, regulations, and policies of the Commonwealth of Kentucky and the KCTCS Board of Regents, which govern the expenditure and disbursement of funds. Heads of the various budget units shall not authorize nor incur financial obligation in excess of the budget authorization for that budgetary unit. This budget and its provisions will be effective July 1, 2017, through June 30, ADOPTED, this ninth day of June Marcia L. Roth, Chair KCTCS Board of Regents Tammy C. Thompson, Secretary KCTCS Board of Regents Jay K. Box, Ed.D. KCTCS President 136

15 ACTION RATIFICATION OF Agenda Item J-1 PERSONNEL ACTIONS September 15, 2017 Recommendation That the KCTCS Board of Regents ratify the personnel actions listed in the agenda materials. Rationale Since personnel actions occur regularly throughout the year, those personnel actions are allowed to take place, subject to Board of Regents ratification at the next Board meeting. The format of this agenda item is used to provide the Board basic information for its action, without providing unnecessary detailed data. o Individual personnel actions (certain administrative appointments and retirements, faculty promotions with tenure, and deaths). o Summary personnel actions (academic appointments, administrative appointments, reappointments, leaves of absence, retirements, resignations, non-renewal of appointments, and faculty promotions without tenure). o Number of current full-time regular open positions in the System. Background Kentucky Revised Statute gives governing boards exclusive control of employment, tenure, and official relations of employees. 137

16 Personnel Actions Presented to the KCTCS Board of Regents September 15, 2017 I. Individual Personnel Actions A. Administrative Appointments Big Sandy Community and Technical College Dr. Sherry Zylka, President/CEO, 10/1/2017 Hopkinsville Community College Dr. Alissa L. Young, President/CEO, 10/1/2017 B. Administrative Retirements System Office Cantrill, James C., Special Assistant to the President, Policy Revisions, 8/31/2017 Hillard, Beth R., Chief of Staff, 8/1/2017 Madisonville Community College Cox, Deborah M., Chief Academic Affairs Officer, 8/1/2017 C. Promotions System Office Hodges, Hannah, Chief of Staff, 8/1/2017 Promotions with Tenure Only effective July 1, 2017 * Elizabethtown Community and Technical College Cordova, Timothy Professor Promotions without Tenure effective July 1, 2017** Elizabethtown Community and Technical College Biddle, Mary Assistant Professor Fox, Amy Assistant Professor * Note: Employee was mistakenly left off the Promotions list reporting their classification change to tenure track in the June 9, 2017, Board report. ** Note: These two Assistant Professors were erroneously reported as Promotions with Tenure in the June 9, 2017, Board report. D. Special Leaves with pay longer than 90 days No action to report. E. Deaths Southeast Kentucky Community and Technical College James McDannel, Professor, 6/20/

17 II. Summary Personnel Actions A. Academic Appointments Agricultural Studies, 1 Air Conditioning Technology, 1 Allied Health, 2 Automotive Technology, 1 Aviation Maintenance Technology, 1 Biology, 2 Business Administration, 1 Chemistry, 3 Collision Repair Technology, 1 Computer and Information Technologies, 1 Computer, Manufacturing and Machining, 1 Cosmetology, 2 Criminal Justice, 1 Culinary Arts, 1 Dental Assisting/Dental Hygiene, 3 Diesel Technology, 1 Education, 3 Emergency Medical Services-Paramedic, 2 English, 2 Global Studies, 8 Health Information Technology, 1 Health Science Technology, 1 Industrial Maintenance, 1 Industrial Maintenance Technology, 2 Library, 1 Logistics & Operations Management, 1 Manufacturing Industrial Technology, 3 Mathematics, 5 MIT: Electrical Technology, 1 Nursing, 21 Nursing Practical Nursing, 7 Pharmacy Technology, 1 Physical Therapist Assistant, 1 Physics, 2 Truck Driver Training, 1 Visual Communication: Communications Arts Technology, 1 Welding Technology, 2 B. Administrative Appointments Associate Dean of Academic Affairs, 1 Chief Academic Affairs Officer, 2 Chief Institutional Advancement Officer, 1 Interim Chief Academic Affairs/Advancement Officer, 1 Interim Dean of Academic Affairs, 2 Interim Director of Institutional Effectiveness, 1 Provost, 1 C. Reappointments Accounting, 2 Administrative Office Technology, 1 Adult Education, 14 Advanced Integrated Technology, 2 Advanced Manufacturing, 3 Agriculture, 2 Agriculture Technology, 1 Air Conditioning Technology, 1 Anatomy & Physiology, 4 Applied Process Technologies, 1 Art, 2 Automotive Technology, 12 Aviation Maintenance Technology, 5 Biological Sciences, 3 Biology, 11 Biology/Anatomy/Physiology, 1 Bluegrass and Traditional Music, 1 Business, 1 Business Administration, 3 Business Administration Systems, 2 Business Management and Marketing, 2 Carpentry/Construction Technology, 1 CDL, 1 Chemistry, 3 Civil Engineering Technology, 1 Collision Repair, 2 Collision Repair Technology, 1 Communications, 7 Computer & Information Technology, 3 Computer & Information, 2 Computer Aided Drafting, 2 Computer Aided Drafting and Design, 1 Computer Information, 2 Computer Information Technology, 1 Computerized Manufacturing, 2 Computerized Manufacturing and Machining, 2 Construction Technology, 2 Cosmetology, 9 Counseling, 1 Criminal Justice, 13 Culinary Arts, 5 Dental Assisting/Dental Hygiene Integrated Program, 2 Dental Hygiene, 4 Diesel, 2 Diesel Technology, 3 Development English, 2 Developmental Mathematics, 7 Developmental Reading, 1 139

18 Developmental Reading/Writing, 1 Developmental Writing, 2 Diagnostic Medical Sonography, 2 Disability Services, 1 Early Childhood Education, 1 Economics, 1 Education, 2 Electrical Technology, 9 Electricity/Electronics Technology, 3 Emergency Medical Services Paramedic, 1 Engineering and Electronics, 2 English, 20 Equine Studies, 2 ESL Instructor, 1 Foreign Language, 1 General Education, English, 1 General Education, Physics and Math, 1 General Education, Psychology General Occupational/Technical Studies, 10 Geology, 1 Health Information Technology, 2 Health Sciences, 1 Heavy Equipment, 1 Heavy Equipment Operation, 1 History, 4 Honda/GLADA Automotive, 1 Human Services, 4 HVAC, 1 Industrial Maintenance, 3 Informational Management and Design, 1 Interdisciplinary Early Childhood Education, 3 Library, 5 Manufacturing, 1 Manufacturing Engineering, 2 Manufacturing Industrial Technology, 3 Marine Technology, 1 Massage Therapy, 1 Mathematics, 19 Medical Administrative Services, 1 Medical Assisting, 5 Medical Information Technology, 3 Medical Lab Technology, 1 Medical Laboratory, 1 Medical Laboratory Technician, 3 Mining, 1 MIT: Electrical Technology, 1 MIT: Industrial Maintenance, 2 Nursing, 80 Nursing, - Practical Nursing, 6 Nursing Assistant, 2 Occupational Therapy Assistant,1 Office Systems, 1 Office Systems Technology, 1 Oral Communications, 2 Paralegal, 1 Paramedic, 1 Pharmacy Technology, 6 Philosophy, 1 Physical Therapist Assistant, 4 Physics, 5 Plumbing Technology, 1 Political Science, 1 Professional Studio Art, 1 Psychology, 6 Radiography, 7 Reading, 3 Respiratory Care, 10 Social Work, 1 Sociology, 4 Spanish, 1 Student Services, 3 Surgical Technology, 9 Telemedicine, 1 Theatre Arts, 1 Transitional Education, 3 T-Ten Automotive Technology, 2 Visual Arts, 3 Visual Communication, 1 Visual Communication: Design and Technology, 1 Welding, 3 Welding Technology, 10 Writing, 1 D. Terminal Reappointments Faculty, 1 E. Leaves of Absence Sabbatical, 1 Unpaid Sick Leave, 1 F. Non-Administrative Retirements Faculty, 4 G. Resignations Faculty,

19 H. Non-Renewal of Appointment Faculty, 7 I. Regular Full-time Positions as of August 1, 2017 Faculty, 1649 Staff, 2249 J. Regular Full-time Position Vacancies as of August 1, 2017 Faculty, 25 Staff,

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21 THE KENTUCKY WORK READY SKILLS ACTION $100 MILLION BOND POOL Agenda Item J-2 KCTCS PROJECT AWARDS ROUND TWO September 15, 2017 Recommendation The KCTCS Board of Regents approve the renovation of the Welding Facility Training Lab at Hopkinsville Community College awarded in the second round of the Kentucky Work Ready Skills Initiative, a $100 million statewide bond program led by the Kentucky Education and Workforce Cabinet (Attachment A, Agenda Item J-2). The Kentucky Work Ready Skills Initiative is aimed at building a highly trained, modernized workforce in the Commonwealth to meet the needs of employers and promote sustainable incomes for Kentuckians. Rationale KRS (7) requires that an unbudgeted capital construction project with a scope greater than $1,000,000 be approved by the KCTCS Board of Regents and submitted on to the Kentucky Council of Postsecondary Education for approval. The Kentucky Work Ready Skills Initiative encourages private sector employers, high schools or secondary technical schools, and postsecondary institutions, among other entities, to develop partnerships and submit applications for the construction and equipping of new facilities; renovations or upgrades of facilities; or the purchase of new or upgraded equipment, software, or furnishings that will aid in workforce training and education. KCTCS has one college that has been awarded funding in round two of the initiative in conjunction with other partners for a project over $1,000,000 to be funded by this pool. Background As part of the biennial budget, the Kentucky Education and Workforce Development Cabinet was appropriated a $100,000,000 bond fund pool. The enacted budget language specifies: Workforce Development Construction Pool 100,000,000 Bond Funds 100,000,000 The Workforce Development Construction Pool is a $100 million resource to finance, in whole or in part, capital investments in workforce development education and training facilities. The Education and Workforce Development Cabinet will administer this Construction Pool and will provide a neutral, objective process whereby appropriate project applications will be received, reviewed, and awarded. This Construction pool addresses employers' needs to recruit a workforce that will align with changing demands and work environment, and the Commonwealth's needs for a highly skilled workforce and to carry out a strategic goal of achieving excellence in manufacturing and related industries. 143

22 Attachment A, Agenda Item J-2 KENTUCKY WORK READY SKILLS INITIATIVE ROUND TWO AWARDS REQUIRING BOARD APPROVAL > $1 MILLION COLLEGE HOPKINSVILLE CC, in partnership with Christian County Schools PROJECT TITLE Welding Facility Training Lab Addition and Renovation TOTAL WORKFORCE AGENCY/ AUTHORIZATION BOND FUNDS OTHER FUNDS $2,306,000 2,135,604 $170,

23 ACTION KCTCS INTERIM PROJECT APPROVAL Agenda Item J-3 SCOPE INCREASE: PIKEVILLE TECHNOLOGY CENTER September 15, 2017 Recommendation The KCTCS Board of Regents approve the scope increase of $1 million for the construction of the Technology Center to be located on the Pikeville Campus of the Big Sandy Community and Technical College. Rationale KRS (7) requires that an unbudgeted capital construction project with a scope greater than $1,000,000 be approved by the KCTCS Board of Regents and reported to the Secretary of Finance. The current scope of the Pikeville Technology Center is $4,500,000. This project is funded with $3,278,000 of grant funds and $1,222,000 matching agency funds. $1,000,000 needs to be added as part of the matching agency funds to increase the scope to $5,500,000. Background KCTCS received approval in 2015 to construct an approximate 15,000 square foot technology center with classroom space, lab space and a high-bay training area to house a telecommunications training project. The facility will be located at Big Sandy Community and Technical College Pikeville Campus. Bids for construction came in over the project budget. Grant requirements require this facility to be under construction by December 30, With this stipulation, KCTCS is requesting approval to increase the scope of the project by $1,000,000, which will be funded from agency funds. 145

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25 ACTION KCTCS BIENNIAL BUDGET Agenda Item J-4 BUDGET REQUEST September 15, 2017 Recommendation The KCTCS Board of Regents approve the Biennial Budget requests, operating and capital, for KCTCS to be submitted to the Council on Postsecondary Education (CPE). Statutorily, KCTCS must submit its requests, operating and capital, by November 15, The KCTCS operating and capital requests are developed in cooperation with the CPE guidelines. Operating Funds Request The Biennial Budget request for operating funds for KCTCS per CPE guidelines are as follows: Base Appropriation $181,605,000 $181,605,000 $181,605,000 Performance Funding - 1. Performance Funding - Inflationary Increase* 2. Student Performance Metrics - Growth in Outcomes - 4,379,400 8,758, ,159,700 Dual Credit Course Expense** - 11,700,000 11,700,000 Workforce Trust Funds*** - 5,000,000 5,000,000 Competitive Workforce Initiative**** - 19,100,000 19,100,000 KERS/KTRS Pension Support***** - 3,300,000 2,300,000 Total** **** $181,605,000 $225,084,400 $232,623,500 * Assumes that the State funds half of inflationary cost increases each year of the upcoming biennium, calculated by applying a 2.0% annual inflation factor to Educational and Related spending, and that the other half of the cost increases are funded with net tuition and fee revenue. Distribution of these funds would not be growth dependent, but distributed in their entirety, regardless of whether outcome levels increase, decrease, or remain the same. **Dual Credit Course Expense: KCTCS is requesting consideration for funding to support the increasing costs of dual credit. The request for support is calculated by totaling expenses and foregone tuition and fees based on FY actuals and adding in the FY tuition rate increase (3.85%). 147

26 *** CPE anticipates inclusion of a request of $5.0 million in bond funds earmarked for KCTCS within the request for Bucks for Brains. The funds would establish a Workforce Endowment with KCTCS to provide a dollar for dollar match. **** KCTCS is requesting recurring funding to target the areas of Health Care, Advanced Manufacturing, Transportation/Logistics, Business Services/Information Technology, and Construction/Trades. As the only higher education institution in Kentucky statutorily mandated to provide workforce education and training, KCTCS has a pivotal role in addressing Kentucky s skilled labor shortage and meeting the needs of business and industry. ***** This request reflects consideration for the fact that state pension costs continue to escalate at an ever-increasing rate. Discussion of increases as high as 66 percent for the KERS could occur by the end of without pension reform. To offset this possible increase, KCTCS assumed a KERS increase of 10.53% in FY 2019 and 6.0% increase in FY KCTCS assumed a 3.0% increase for KTRS in FY 2019 and a 3.0% increase in FY ******Total reflects anticipated achievement of all performance funding measures, workforce trust funds, competitive workforce initiative, and KERS/ KTRS pension support. Capital Funds Request The Capital Request is summarized in Attachment A, Agenda Item J-4. Rationale Capital Budget Request $514,500,000 The KCTCS President worked with the CPE President and the university presidents to develop a Biennial Budget operating funds request approach that: Recognizes the economic situation facing the Commonwealth of Kentucky in the biennium. Recognizes the need for an additional general fund appropriation for each institution of postsecondary education. Provides opportunity for the institutions and the CPE to cooperatively seek additional funding. The KCTCS President has worked with the 16 KCTCS college presidents and the CPE President and staff to develop a biennial capital budget request that fully meets KCTCS s capital needs for the biennia. The proposed KCTCS biennial capital budget request is based on the KCTCS Six-Year Capital Plan. The KCTCS six-year capital plan is compiled from project information submitted by the 16 KCTCS college presidents through a Strategic Needs Analysis (SNA) submitted pursuant to statute to the Legislative Capital Planning Advisory Board. 148

27 The KCTCS capital budget request: Is ordered by project priority for the Bond/General Funds projects and in alphabetical order for the Other Funds projects. Encompasses asset preservation, new construction, maintenance, renovation and expansion of existing facilities, capital equipment, and information technology equipment. Recognizes the importance of maintaining the existing physical plant in a condition that enables the colleges to provide quality educational programs and services. Emphasizes new construction projects that expand instructional capacity and new construction projects that are continuations of initiatives begun in previous biennia. Consists of 57 projects, resulting in a KCTCS capital budget request of approximately $515 million. The requests that follow are items developed in consultation with the KCTCS President s Leadership Team and CPE Staff. KCTCS s final requests, operating and capital, submitted in November to the legislature, governor and CPE, will depend on CPE Board approval at its September 11, 2017 meeting. At the time of the development of this agenda item, CPE Staff s final recommendations concerning KCTCS requests were not yet known. Therefore, all requests, operating and capital, discussed with CPE Staff are included. Background The KCTCS Board of Regents has an opportunity to present Biennial Budget requests, operating and capital, for consideration by the Council on Postsecondary Education, the Governor of Kentucky, and the Kentucky General Assembly in developing the appropriations to institutions of postsecondary education. The recommended Biennial operating and capital budget request was developed by the KCTCS President working with the CPE President, the university presidents, and the KCTCS President s Leadership Team. 149

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29 Attachment A, Agenda Item J-4 SUMMARY CAPITAL BUDGET REQUEST KENTUCKY COMMUNITY & TECHNICAL COLLEGE SYSTEM PRIORITY* COLLEGE PROJECT TITLE TOTAL BUDGET BOND/ GENERAL FUNDS RESTRICTED/ OTHER FUNDS BOND/GENERAL FUNDS PROJECTS 1 Big Sandy CTC 2 Somerset CC 3 Systemwide 4 Jefferson CTC 5 Big Sandy CTC Construct Expansion of Pikeville Campus "Additional Funding" $28,000,000 $28,000,000 Construct Arts & Humanities "Additional Funding" $25,600,000 $25,600,000 KCTCS Deferred Maintenance Pool $31,600,000 $31,600,000 Renovate Hartford Building - Downtown Campus $24,300,000 $24,300,000 Renovate Welding Shop- Mayo Campus $1,500,000 $1,500,000 6 Owensboro CTC Renovate Southeastern Campus $3,700,000 $3,700, Elizabethtown CTC Renovate Occupational Technical Building - Main Campus $14,900,000 $14,900,000 Southcentral KY CTC Renovate Main Campus $18,100,000 $18,100,000 9 Maysville CTC Renovate Administration Building - Main Campus $13,000,000 $13,000, Owensboro CTC Renovate Downtown Campus $2,500,000 $2,500, Ashland CTC 12 Henderson CC 13 Ashland CTC 14 Southeast KY CTC Renovate Main Building Phase II - College Drive Campus $36,500,000 $36,500,000 Student Center Relocation - Main Campus $2,200,000 $2,200,000 Renovate Roberts Drive North Campus $5,600,000 $5,600,000 Renovate Administration Building - Whitesburg Campus $3,800,000 $3,800, Madisonville CC Renovate Technical Campus $3,000,000 $3,000, Hopkinsville CC 17 Bluegrass CTC Renovate Auditorium Building - Main Campus $3,800,000 $3,800,000 Construct Student Commons/Classroom Building - Newtown Campus $30,000,000 $30,000, Gateway CTC Renovate Urban Campus $15,200,000 $15,200, Elizabethtown CTC Renovate Student Center - Main Campus $5,100,000 $5,100,

30 20 Madisonville CC 21 Maysville CTC Construct Muhlenberg Campus Phase II $12,900,000 $12,900,000 Construct and/or Procure Postsecondary Ed. Ctr. Phase II - Rowan Campus $10,000,000 $10,000, Maysville CTC Renovate Maysville Campus $5,000,000 $5,000, Hazard CTC Roof Repairs - Collegewide $2,000,000 $2,000, Jefferson CTC 25 Hopkinsville CC 26 Southeast KY CTC 27 Bluegrass CTC 28 Somerset CC 29 Somerset CC 30 Hopkinsville CC 31 Somerset CC 32 Henderson CC Renovate Seminary Building - Downtown Campus $20,000,000 $20,000,000 Renovate Academic Building - Main Campus $6,000,000 $6,000,000 Renovate Falkenstine - Cumberland Campus $5,000,000 $5,000,000 Renovate Administration Building - Newtown Campus $4,500,000 $4,500,000 Construct Addition to Building 2 - South Campus $4,500,000 $4,500,000 Replace HVAC Units - South Campus $2,200,000 $2,200,000 Construct Student Learning Center - Main Campus $10,000,000 $10,000,000 Construct Extension Center- Russell County Campus $18,800,000 $18,800,000 Renovate Sullivan Technology Center - Main Campus $4,600,000 $4,600, Big Sandy CTC HVAC Upgrades - Collegewide $2,000,000 $2,000, Jefferson CTC Construct Bullitt County Campus $17,900,000 $17,900, Owensboro CTC 36 Somerset CC 37 Ashland CTC 38 Southeast KY CTC HVAC Replacement Phase I - Main Campus $4,400,000 $4,400,000 Construct Technical Education Building - Laurel North $27,100,000 $27,100,000 Renovate Learning Resource Center - College Drive Campus $4,800,000 $4,800,000 Soil Stabilization Godbey - Cumberland Campus $1,500,000 $1,500, West KY CTC Renovate Main Campus $2,700,000 $2,700, Hazard CTC 41 Jefferson CTC 42 West KY CTC Soil Stabilization Technical Campus $2,000,000 $2,000,000 Parking Lot Acquisition and Improvements - Collegewide $2,500,000 $2,500,000 Upgrade Sprinkler System - Main Campus $1,500,000 $1,500,

31 43 Systemwide Information Technology Pool $9,500,000 $9,500, Systemwide KCTCS CEMCS Upgrades $2,000,000 $2,000,000 RESTRICTED/OTHER FUNDS PROJECTS Big Sandy CTC Dental Hygiene/Assisting Renovation - Mayo Campus $3,000,000 $3,000,000 Big Sandy CTC Roof Replacements - Collegewide $1,700,000 $1,700,000 Bluegrass CTC Advanced Manufacturing Expansion - Danville Campus $5,000,000 $5,000,000 Elizabethtown CTC Leitchfield Campus Expansion $7,400,000 $7,400,000 Fire Commission Construct and/or Procure Fire Commission System Office Bldg. $6,000,000 $6,000,000 Fire Commission Fire Commission Driver Simulator $1,000,000 $1,000,000 Fire Commission Fire Commission Fire Trucks $600,000 $600,000 Fire Commission NRPC Parking Lot $2,000,000 $2,000,000 Somerset CC System Office Replace Meece HVAC - North Campus $2,000,000 $2,000,000 Acquisition of System Office Building $4,000,000 $4,000,000 Systemwide KCTCS Property Acquisition Pool $5,000,000 $5,000,000 Systemwide KCTCS Equipment Pool $5,000,000 $5,000,000 Systemwide Energy Savings Performance Contracts $20,000,000 $20,000, TOTALS $514,500,000 $451,800,000 $62,700,

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33 UPDATE: Agenda Item J-5 KCTCS QUARTERLY FINANCIAL REPORT September 15, 2017 The financial statements depict activity through the fourth quarter of fiscal year ; the quarter ending, June 30, Information for these statements was derived from the KCTCS Administrative Financial System. The Statement of Current Funds Revenues and Expenses (Attachment A, Agenda Item J-5) reflects actual program and operational expenditures compared to the budget approved by the KCTCS Board of Regents, June 10, This report reflects total revenues of $787 million, 94 percent of the budgeted revenue and appropriated funds. The Statement Current Funds of Revenues and Expenses also reflects current fund expenses and budget reserve of $702 million, 84 percent of the expenses budgeted for the year. The Statement of Net Position (Attachment B, Agenda Item J-5) reflects the overall financial position of the System and includes assets, liabilities, and net position. Background The Annual Budget Adoption Resolution (adopted by the Board of Regents at its annual June meeting) states, The KCTCS Quarterly Financial Report shall contain sections that reflect the KCTCS July 1 operating budget, amendments to the operating budget, and expenditures to date. Attachment A, Agenda Item J-5, the Statement of Current Funds Revenues and Expenses, is designed to fulfill this requirement. Attachment B, Agenda Item J-5 the Statement of Net Position (Balance Sheet), although not specifically required in the Board s Annual Budget Adoption Resolution, has also been included in the Quarterly Financial Report to give the Board a periodic snapshot of the KCTCS financial position using the most common accounting-based schedule. 155

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35 Attachment A, Agenda Item J-5 STATEMENT OF CURRENT FUNDS REVENUES AND EXPENSES 6/30/ ORIGINAL REALIZED PRIOR YEAR (in thousands) BUDGET TO DATE % REALIZED % REVENUES General Fund State Appropriations $ 181,605 $ 185, $ 186, Tuition and Charges 211, , , Noncredit Tuition 6,361 6, , Investment Income 1,400 1, , Governmental Grants and Contracts 47,151 45, , Sales and Services 18,459 27, , * Other 45,106 45, , Budget Reserve (Nonrecurring) 12,594 12, , Total General Fund 524, , , Restricted Funds 314, , , Total Revenues and Appropriated Fund Balances $ 839,608 $ 787, $ 810, EXPENDITURES BY PROGRAM Instruction Public Service Academic Support Student Services Institutional Support Student Financial Aid Operations & Maintenance Total Expenditures by Program Budget Reserve (Nonrecurring) $ 227,704 $ 192, $ 208, ,217 40, , ,274 34, , ,399 60, , ,068 74, , , , , ,697 85, , , , , ,594 12, , Total Expenditures and Budget Reserve $ 839,608 $ 702, $ 758, Revenues in Excess of Expenditures $ 85,388 $ 52,930 *Budgeted prior year fund balance revenue. Realized to date is displayed as the total prior year fund balance budget. 157

36 Attachment B, Agenda Item J-5 KENTUCKY COMMUNITY AND TECHNICAL COLLEGE SYSTEM Statements of Net Position June 30, 2017 and 2016 (amounts in thousands) ASSETS Current Assets Cash and cash equivalents $ 175,875 $ 150,653 Loans, accounts, and gifts receivable, net of bad debt 27,088 23,386 Other current assets 5,587 2,988 Total current assets 208, ,027 Noncurrent Assets Restricted cash and cash equivalents 138, ,115 Loans and other receivables 4,463 5,662 Endowment investments 56,803 49,780 Other long-term investments 17,677 17,278 Capital assets, net 687, ,478 Total noncurrent assets 904, ,313 Deferred Outflows Deferred outflows - KERS 29,128 20,415 Deferred outflows - KTRS 49,583 19,755 Total deferred outflows 78,711 40,170 Total assets and deferred outflows 1,192,143 1,033,510 LIABILITIES Current Liabilities Accounts payable and accrued expenses 22,710 24,751 Employee withholdings and deposits 1,595 1,525 Compensated absences - current 1,031 1,140 Unearned revenue 9,398 8,696 Leases payable - current 8,597 5,116 Total current liabilities 43,331 41,228 Noncurrent Liabilities Leases payable - noncurrent 140,967 75,512 Compensated absences - noncurrent 9,281 10,260 Net pension liability - KERS 193, ,537 Net pension liability - KTRS 251, ,423 Other long-term obligations 1, Total noncurrent liabilities 596, ,578 Deferred Inflows Deferred inflows - KERS 13,978 5,631 Deferred inflows - KTRS 29,046 21,939 Deferred inflows - property 4,010 4,366 Total deferred inflows 47,034 31,936 Total liabilities and deferred inflows 686, ,742 NET POSITION Net investment in capital 598, ,368 Restricted Nonexpendable 46,355 35,512 Expendable 78,183 68,769 Unrestricted Unrestricted (218,314) (235,881) Total net position $ 505,191 $ 467,

37 UPDATE: Agenda Item J-6 SUPPLIER DIVERSITY REPORT September 15, 2017 KCTCS defines diverse suppliers as those businesses owned by ethnic minorities, women, veterans, or the physically challenged. Fiscal Year (FY) 2017 data (July through June) is reported in Attachment A, Agenda Item J-6. The data indicates for FY 2017 that KCTCS spent $3.1 million (6.2 percent) of a total $51.4 million in impactable discretionary spend with diverse suppliers. In terms of business conducted, the percentage spent with diverse suppliers as compared to the total spend was less in FY 2017 (6.2 percent) compared to FY 2016 (9.4 percent). The raw number of diverse suppliers contracted with to date for FY 2017 has slightly declined from 219 to 206. The change in spending reflect changes in the colleges varying needs. Further, the total does not reflect a purchase that was ordered, but not received in FY of $935,000. The purchase will be counted in FY expenses. (See Note 3 on Attachment A, Agenda Item J-6). KCTCS staff continue to register and match diverse suppliers and analyze supplier data to ensure the integrity and consistency of the data reported. Staff have restructured the supplier diversity registration portal with improvements including better links and radio buttons for making selections making for an overall streamlined, efficient, experience for suppliers. On September 20, 2017, KCTCS will hold its fifth annual Supplier Diversity Fair. This event will be held at the Frankfort Convention Center (Attachment B, Agenda Item J-6). This event is a free event for diverse suppliers to meet face-to-face with representatives from all 16 KCTCS colleges and the System Office. More than 250 guests and up to 60 exhibitors are expected to attend this event. Buyers and officials from other organizations and suppliers such as Keith Daniel & Associates (KDA Office Furniture Solutions), Commerce-Lexington, Lexington-Fayette Urban County Government, Fayette County Public Schools, Procurement Technical Assistance Center, the U.S. Small Business Administration (SBA), the University of Kentucky, University of Louisville and more are also expected to be in attendance to discuss business opportunities. The event includes not only the opportunity for diverse businesses to showcase their business, products and services, but also breakout sessions instructing diverse suppliers on how to increase their opportunities to do business with KCTCS. Conference calls, college visits, outreach programs, and other informational assistance to support the KCTCS Supplier Diversity Initiative continue. Staff continue to actively participate in events and trade shows, including local chambers of commerce and professional trade organizations. Some of the events staff have participated in during FY 2017 include: Lexington Bluegrass Minority Business Expo Lexington Convention Center, August Tri-State Diversity & Inclusion Conference Ashland CTC, September Tri-State Minority Supplier Development Council Lunch & Learn Louisville, September KCTCS Supplier Diversity Fair, Frankfort Convention Center October Tri-State Minority Supplier Development Council Business Gateway Expo- December Commerce Lexington s Business Link Republic Bank, February

38 Commerce Lexington s Business Link Bluegrass Airport, February Commerce Lexington s Business Link Spindletop, April Fayette County Public Schools How to Do Business with KCTCS, April Supplier Diversity Initiative activities and events that have occurred so far in FY 2018 include: Lexington Bluegrass Minority Business Expo Lexington Convention Center, August Commerce Lexington s Business Link Campbell House, August Background The Finance, Technology, and Human Resources Committee has asked to be updated periodically regarding the KCTCS Supplier Diversity Initiative. The most recent report was made at the March 9, 2017 Board of Regents meeting. 160

39 Attachment A, Agenda Item J-6 FY 2017 to FY 2016 Comparison July 1, June 30, 2017 Suppliers Expenditures Number % of Total 1 Amount % of Total 1 All Suppliers % $51,481, % Diverse Suppliers Minority Owned Business % $567, % Woman Owned Business % $2,033, % Other % $585, % Total % $3,186, % July 1, June 30, 2016 Suppliers Expenditures Number % of Total 1 Amount % of Total 1 All Suppliers % $51,348, % Diverse Suppliers Minority Owned Business % $1,277, % Woman Owned Business % $2,633, % Other % $941, % Total % $4,851, % Comparison FY 2017 to FY 2016 Suppliers Expenditures Number % of Total 1 Amount 3 % of Total 1 All Suppliers % $132, % Diverse Suppliers Minority Owned Business % ($709,780) -55.6% Woman Owned Business % ($599,375) -22.8% Other % ($356,110) -37.8% Total % ($1,665,265) -34.3% Notes: 1 Percentage detail may not sum to total due to rounding. 2 Other includes physically-challenged and veteran-owned businesses. Instances of vendors being classified in more than one category and the priority order of which classification should be the higher priority created large shifts in the data. Therefore, the two catagories were combined for year-to-year comparison purposes. 3 An additional $934,784 spend with a women-owned company in April 2017 is not reflected in FY17 totals, the purchase order has been processed but the furniture will not be delivered until FY

40 Attachment B, Agenda Item J