Meeting Minutes - May 2003

Minutes of the Meeting of the Board of Regents of the University System of Georgia
Held At 270 Washington St., S.W., Atlanta, Georgia
May 20 and 21, 2003

CALL TO ORDER

The Board of Regents of the University System of Georgia met on Tuesday, May 20 and Wednesday, May 21, 2003, in the Board Room, room 7007, 270 Washington St., S.W., seventh floor. The Chair of the Board, Regent Joe Frank Harris, called the meeting to order at 1:00 p.m. on Tuesday, May 20. Present on Tuesday, in addition to Chair Harris, were Regents Hugh A. Carter, Jr., Connie Cater, William H. Cleveland, Hilton H. Howell, Jr., Julie Hunt, Donald M. Leebern, Jr., Allene H. Magill, Elridge W. McMillan, Martin W. NeSmith, Wanda Yancey Rodwell, Glenn S. White, and Joel O. Wooten, Jr.

ATTENDANCE REPORT

The attendance report was read on Tuesday, May 20, 2003, by Secretary Gail S. Weber, who announced that Regents Michael J. Coles and J. Timothy Shelnut had asked for and been given permission to be absent on that day. (Vice Chair James D. Yancey's absence was due to a request from the Governor to step down from the Board because due to redistricting, Chair Harris and Vice Chair Yancey now reside in the same district.)

APPROVAL OF MINUTES

Motion properly made and duly seconded, the minutes of the Board of Regents meeting held on April 15 and 16, 2003, were unanimously approved as distributed.

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COMMITTEE ON FINANCE AND BUSINESS OPERATIONS, "COMMITTEE OF THE WHOLE"

Chair Harris next convened the Committee on Finance and Business Operations as a Committee of the Whole and turned the Chairmanship of the meeting over to Regent White, the Vice Chair of the Committee.

Vice Chair White announced that the Board had three items to consider at this meeting: fiscal year 2004 budget allocations, tuition, and mandatory student fees. (See pages 19 to 25.) He explained that fiscal year 2004 will be a difficult year, with continuing reductions in funding to address revenue shortfalls at a time when the University System is experiencing record enrollments. On behalf of the Board, Vice Chair White expressed his appreciation for the support of the Governor and General Assembly in the budget process. He also thanked all of the Regents who have contributed their time and effort to support the budget recommendations and work with legislators on behalf of the University System of Georgia. He said that he had reviewed the allocation process and principles with the Chancellor and senior staff as well as the tuition and mandatory student fee recommendations and remarked that the allocation recommendations reflect a rigorous and thorough process. He then called upon the Chancellor to begin the budget presentation.

Chancellor Meredith explained that the budget recommendations presented to the Regents had taken a great deal of work. The University System of Georgia has experienced record enrollments accompanied by reduced state funding. Fiscal year 2003 had a $186 million shortfall, and fiscal year 2004 will have a $211 million shortfall. The challenge, then, is to do more with less. The budget still stresses accountability and the philosophy that rewards drive behavior. The Board must insist on quality regardless of the dollars available. If Georgia is going to be successful as a state, it must have a quality higher educational system. The System's presidents are good partners in this effort. They are using their allocations to the very best of their abilities to enhance the quality of their institutions and the System. The Board is determined to create a more educated Georgia in spite of these tough economic times. The Chancellor said that this budget is very good in terms of what it is able to do with the funds available. He then called upon the Senior Vice Chancellor for Academics and Fiscal Affairs, Daniel S. Papp, to continue the budget presentation.

Dr. Papp explained that during the course of developing the fiscal year 2004 budget, the staff held winter meetings with all 34 presidents and senior management to discuss allocations, tuition and fees, and System and institutional budget priorities. In addition to these meetings, there was a committee comprised of vice presidents for business and finance and vice presidents for academic affairs to help develop an allocation strategy. That strategy included a way to disburse the approximately $81.5 million in new formula enrollment funds that the University System of Georgia received this year. Despite the cuts for fiscal years 2003 and 2004, the legislature protected these new formula funds generated by the continuing enrollment growth in the System. The allocation strategy provided that 80% of the $81.5 million be given directly to the institutions based on the numbers of full-time equivalent ("FTE") student hours generated at the specific institution. Another 5% ($4 million) is allocated based upon performance factors, such as graduation and retention rates and sponsored programs. The final 15% will be distributed for University System strategic allocations; 5% of this funding is distributed to the institutions in proportion to their enrollments. The remaining 10% is directed to support the mission of the Medical College of Georgia ("MCG"), to address variances in allocations for FTE students in each sector of the System, to support Board strategic initiatives (e.g., Georgia Library Learning Online ["GALILEO"]), and to recognize the importance of continuing education and financial accountability. In addition, the University System of Georgia received funding in the amount of $6.7 million in new facilities funding allocated based on the formula; it is recommended that this funding be directed back to the institutions according to how the funding was earned. There were approximately $23.5 million in instruction-related budget cuts allocated across the board based on the size of the institution as measured by FTE students. There was another $11.2 million in statewide cuts for worker's compensation costs, telecommunications, and life insurance premiums, which is recommended to be allocated based on number of employees and institutional share of state appropriations. Additionally, there was a $27.7 million reduction in hold harmless funds removed from institutional allocations in the same manner that funds were added. This will be subtracted from institutions' budgets in exactly the same way it was granted to them to compensate for lost enrollments several years ago. The staff acted beyond the strategic allocations within the baseline funding to move institutions toward the mean dollar allocation per FTE student. A number of institutions are significantly above the mean, and there are also a number of institutions below the mean as well. So, the staff are acting to reduce this range in two different ways. Having concluded his discussion of the allocation strategy, Dr. Papp called upon the Vice Chancellor for Fiscal Affairs, William R. Bowes, to discuss the budget in more detail.

Mr. Bowes explained that the net reduction for fiscal year 2003 was $183.5 millions. The new cuts for fiscal year 2004 amounted to $23.5 million taken from the instructional component, which had not previously been cut. There were also additional cuts of $4 million for the "B" units, special funding initiatives, and the Georgia Research Consortium. So, fiscal year 2004 has a total reduction of over $211 million, or just over 12%. When formula increases and other additions are added back, the net reduction is about 3.23%. In fiscal year 2003, the budget base was $1.73 billion. For fiscal year 2004, the budget base is $1.68 billion. So, the total decrease is $56 million. Mr. Bowes stated that the state appropriations consist of formula funding of $1.41 million, which goes to the institutions. The state appropriations also include special funding initiatives in the amount of $31.9 million, most of which is also allocated to the institutions. Also included is the Georgia Research Consortium, which is funded at $28.8 million. The Office of Minority Business Enterprise and forestry research are funded at $2.4 million, and the total "B" units budget is $205.8 million. In fiscal year 2004, there were no state appropriations of lottery funds for technology for the University System of Georgia. Mr. Bowes reminded the Regents that the fiscal year 2003 amended budget included some funding toward the System's technology needs, but there is no new funding for fiscal year 2004. Turning to the resident instruction budget, he said that the fiscal year 2003 formula appropriation, excluding special funding initiatives, was $1.43 billion. For fiscal year 2004, it is $1.41 billion, a reduction of $23.8 million, or 1.67%.

Mr. Bowes reiterated that with regard to the institutions, the good news is that enrollment earnings and net square footage funds in the budget formula provide $81.5 million based upon a 6.7% increase in enrollments and $6.7 for new square footage, a total increase of $88.2 million. On the other hand, the was $71.5 million in budget reductions, plus $27.7 million in hold harmless cuts and $13.4 million in fringe benefits and related costs, a total reduction of $112.6 million. There were also some one-time legislative adjustments, the net effect of which was an addition of $545,000.

Special funding initiatives were allocated at a level of $34.8 million in fiscal year 2003. These funds were reduced by $3.5 million in areas such as the African-American Male Initiative ("AAMI") and graduate initiatives. There was a modest increase of $610,000 in areas such as the Southern Regional Education Board ("SREB") Doctoral Scholars program and the continuing education program at Savannah State University. Overall, the special funding initiatives had a net loss of $31.9 million, or 8.3%. The B budget and other A units (small programs that are part of the A units but are not associated with a particular institution) experienced a net reduction of $28.3 million, or approximately 11%.

Next, Mr. Bowes discussed the capital budget. The University System of Georgia received equipment for six major capital projects in the amount of $4.8 million for Macon State College, Abraham Baldwin Agricultural College, Darton College, Georgia Southwestern State University, Kennesaw State University ("KSU"), and Augusta State University. There were a couple of major capital projects funded: Georgia Southern University's Henderson Library ($20.5 million) and the University of Georgia's Fine Arts Building design funds ($2.5 million). The budget also includes $20 million for major repairs and renovations ("MRR"). However, under the formula, the University System of Georgia would have received approximately $59 million for MRR. The System also received a total of $13.4 million in funding for three minor capital projects at Dalton State College, GSU, and KSU. The System also received $10.9 million in funding for three other projects: the MCG Cancer Center, equipment for the Coastal Georgia Community College Camden Center, and the Burke County Library project. The total fiscal year 2004 capital budget was $72.1 million.

Mr. Bowes next presented the tuition recommendations for fiscal year 2004. (See pages 23 to 25.) The staff were recommending a 15% increase in tuition at research universities, a 10% increase at regional and state universities and state colleges, and a 5% increase at two-year colleges. In addition, the staff were recommending 15% tuition increases at Georgia College & State University and Southern Polytechnic State University based upon their unique missions and high-cost programs. The staff were also recommending a number of differential tuition rate increases for 14 nationally competitive graduate and professional programs. Mr. Bowes explained that the differential tuition policy allows institutions to request differential rates for programs based upon how they compare to their peer programs in institutions across the country. The recommendations maintain the policy-based differentials for out-of-state tuition, which is equal to four times the in-state tuition rate. Graduate program rates are generally 20% higher than the tuition rates for undergraduate programs. The recommended tuition rate increases will generate $609.2 million in tuition revenues, an increase of $65.9 million in revenue over fiscal year 2003. For students, the recommended tuition increases will amount to a $33 per semester tuition increase at two-year colleges, $101 at regional and state universities, and $209 at research universities. Mr. Bowes noted that these increases are essential for the University System of Georgia to maintain its quality and to meet the increases in enrollments. He also noted that in terms of median undergraduate tuition and fees, Georgia is twelfth of 15 states in the SREB states. Nationally, Georgia is thirty-fifth in tuition and fees at flagship universities and thirty-eighth among comprehensive colleges and universities. So, Georgia will remain at the low end of the South and the nation in terms of tuition and fees costs. Mr. Bowes noted that most states are experiencing difficult economic times and are also raising their tuition and fees by comparable amounts. For example, Kentucky is raising its fiscal year 2004 tuition by 9% to 18%.

Finally, Mr. Bowes discussed mandatory student fees. (See page 25.) He reminded the Regents that the staff perform a rigorous evaluation of proposed student activity, intercollegiate athletic, student health services, and parking/transportation fees. The staff try to limit increases to critical needs at institutions. They are limiting the creation of new programs at the present time, accept where there are issues such as Title IX programs or the like. In February 2000, the Board of Regents adopted a policy requiring 50% student participation in the mandatory student fees process. Every institution that submitted a mandatory student fee request this year had provided documentation that this had occurred. The staff had also hoped to minimize the impact of fees increases on HOPE Scholarship Program ("HOPE") funding, which covers mandatory student fees. The total mandatory student fees recommendations will effect a 2% to 3% increase; therefore, the impact on HOPE will be minimal. The institutions submitted 51 mandatory student fees requests, of which 27 were being recommended as submitted. Another 13 were being recommended at reduced rates based on the financial data provided, and 11 were not being recommended. Mr. Bowes said that one of the fees being recommended is a $27 health services fee at KSU. Last year, KSU started a residential program, and the institution needs to provide student health services to those residential students. Another $5 recommended fee at GSU is to cover the cost of international student programs. All of these recommendations were included in the Regents' notebooks. In closing, Mr. Bowes asked whether the Regents had any questions or comments.

Vice Chair White commended the staff for their hard work in the budget development process. He then asked for a motion that the Board approve the fiscal year 2004 budget allocations, tuition, and mandatory student fees.

Regent Leebern made the motion, which was variously seconded.

Chancellor Meredith stated that an associate's degree at a two-year college in the University System of Georgia would cost a student only $2,796. A bachelor's degree at one of the System's four-year institutions would cost $8,848, and a bachelor's degree at a research institution would cost $12,832.

Vice Chair White remarked that this was a bargain. Seeing that there were no further questions, he then called for a vote on the motion, which was unanimously approved. He then adjourned the Committee meeting and returned the chairmanship to Regent Harris.

Chair Harris thanked Regent White for his leadership of this meeting of the Committee on Finance and Business Operations as a Committee of the Whole. He also thanked all of the staff for their hard work during this very difficult budget year. He remarked that despite tuition increases, tuition costs remain low in the University System of Georgia and that these increases are necessary to maintain the quality of programs in the System.

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EXECUTIVE SESSION

At approximately 1:45 p.m. on Tuesday, May 20, 2003, Chair Harris called for an Executive Session for the purpose of discussing real estate and personnel matters. With motion properly made and variously seconded, the Regents who were present voted unanimously to go into Executive Session. Those Regents were as follows: Chair Harris and Regents Hugh A. Carter, Jr., Connie Cater, William H. Cleveland, Hilton H. Howell, Jr., Julie Hunt, Donald M. Leebern, Jr., Allene H. Magill, Elridge W. McMillan, Martin W. NeSmith, Wanda Yancey Rodwell, Glenn S. White, and Joel O. Wooten, Jr. In accordance with H.B. 278, Section 3 (amending O.C.G.A. § 50-14-4), an affidavit regarding this Executive Session is on file with the Chancellor's Office.

In attendance for parts of this Executive Session were Chancellor Thomas C. Meredith; the Secretary to the Board, Gail S. Weber; the Senior Vice Chancellor for Support Services, Corlis Cummings; and the Treasurer to the Board and Vice Chancellor for Fiscal Affairs, William R. Bowes. In Executive Session, the Regents discussed the reappointment of Chancellor Meredith. They also discussed a real estate purchase.

At approximately 1:50 p.m., Chair Harris reconvened the Board meeting in its regular session and announced that no actions were taken in Executive Session. In open session, motion was made, seconded, and unanimously approved that Chancellor Thomas C. Meredith be given a letter of agreement for fiscal year 2004.

Motion was further made, seconded, and unanimously approved that the Board of Regents purchase a house from the University System of Georgia Foundation, Inc. for use by the Board of Regents and the University System of Georgia.

At approximately 1:55 p.m., Chair Harris adjourned the Regents into their regular Committee meetings.

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CALL TO ORDER

The Board of Regents of the University System of Georgia met again on Wednesday, May 21, 2003, in the Board Room, room 7007, 270 Washington St., S.W., seventh floor. The Chair of the Board, Regent Joe Frank Harris, called the meeting to order at 9:00 a.m. Present on Wednesday, in addition to Chair Harris, were Regents Hugh A. Carter, Jr., Connie Cater, William H. Cleveland, Hilton H. Howell, Jr., Julie Hunt, Donald M. Leebern, Jr., Allene H. Magill, Elridge W. McMillan, Martin W. NeSmith, Wanda Yancey Rodwell, and Joel O. Wooten, Jr.

INVOCATION

The invocation was given on Wednesday, May 21, 2003, by Regent Allene H. Magill.

ATTENDANCE REPORT

The attendance report was read on Wednesday, May 21,2003, by Secretary Gail S. Weber, who announced that Regents Michael J. Coles, J. Timothy Shelnut, and Glenn S. White had asked for and been given permission to be absent on that day.

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SPECIAL PRESENTATION: UPDATE ON STUDENT ADVISORY COUNCIL

Chair Harris noted that it had been a long time since the Board of Regents had heard from the Student Advisory Council ("SAC"). He called upon the Director of Student Life for the Georgia Perimeter College Lawrenceville Campus at the Gwinnett University Center, Michael L. Sanseviro, who is also currently serving as the Student Service Associate for the University System Office and advisor to SAC, to make this special presentation.

Mr. Sanseviro explained that he had been serving as advisor to SAC for the past year. He then introduced Carlos Vilela, President of the Student Government Association ("SGA") of the Georgia Perimeter College Lawrenceville Campus at the Gwinnett University Center. SAC was established on March 13, 1968, under Chancellor George L. Simpson, Jr. to provide a forum for communication with student leaders and enhance student government at University System institutions. The original SAC was comprised of all student body presidents, who first met with the Chancellor on April 17, 1968, in the Board of Regents conference room. Thirty-five years later, SAC had grown into a large organization with a ten-person executive committee and six delegates per institution. SAC was meeting five times a year with each meeting lasting an average of three days. This past year, SAC, with feedback from the University System Office, student affairs vice presidents, and student life directors and SGA advisors engaged in a critical self-assessment to review the effectiveness of SAC and seek strategies to strengthen it and the alignment with its stated purpose. Serving as Student Services Associate in the University System Office for one year, Mr. Sanseviro was charged to advise SAC and facilitate the change process.

Mr. Vilela stated that in September 2002, the University System Office sponsored an overnight retreat for SAC leadership and SGA presidents to evaluate SAC and establish a draft mission, vision, goals, and objectives for SAC. During that retreat, the students created a draft mission statement that SAC would "serve the interests of students of the University System of Georgia by advising the Chancellor and Board of Regents while promoting communication." The draft vision statement of SAC is "to be a national leader in providing strong student-state agency relations by being a fountain of new ideas that develops, nurtures, and enriches the students of today and tomorrow." The students also developed five mission objectives, as follows:

Develop and execute a plan that will provide continuity for this organization
Communicate better with key stakeholders
Return to SAC's roots as an organization by gaining purpose, mission, and vision
Become better organized
Work to gain participation of all institutions and increased attendance at meetings

Mr. Vilela said that Georgia State University hosted the fall SAC conference in November 2002. The number of delegates invited was reduced from six to four per institution, and a committee was formed to evaluate the current SAC constitution. Chancellor Meredith challenged SAC to examine its structure and offered guidance for operational improvements. The voting delegates chose to disband the current SAC constitution and follow the original SAC charter as outlined in The Policy Manual, Section 409. In doing so, the delegates decided to dismiss the executive committee structure. SAC will be working with the University System Office to review Section 409.

The System's SGA presidents met in February 2003 at Macon State College, reported Mr. Vilela, and over the course of five hours, they created a new council structure. There were 26 institutions represented, an increase from previous SAC conferences. The SGA presidents decided to return to the original SAC structure with one representative per institution attending meetings. They also reached a consensus that membership shall be comprised of all formally recognized University System SGA presidents or designees, including independent SGAs at multi-campus institutions. If there is no SGA at an institution, an equivalent student leader would be selected by his or her peers. The body shall be a group of equals with no officer structure. The SGA president hosting any SAC meeting shall facilitate and arrange for minutes to be provided through the University System Office SAC advisor and posted to the SAC Web site. SAC shall meet at least twice a year. A meeting with the Chancellor will be held to greet and guide the incoming members. The fall meeting will rotate among the campuses and will include a leadership development component. When possible, regular meetings will be limited to one day for cost- and time-efficiency. The spring meeting will be held in metro Atlanta, corresponding to a Board of Regents meeting in hopes of coordinating a meeting with the Chancellor and providing an annual report to the Regents.

Mr. Sanseviro explained that a primary objective for SAC is to ensure communication and continuity from year to year. Between meetings, technology will be employed to engage discussion. Two listservs have also been established: one that is administrative and for SGA presidents only and another that is informational and open to any interested parties. To ensure open communication between SAC and its stakeholders, the SAC advisor will present a University System report at each meeting, including updates from advisory and administrative councils and committees. Since the focus this year has been primarily evaluative, the SGA presidents wanted an opportunity to meet and discuss issues. This one-day meeting was held in April 2003 at Armstrong Atlantic State University. Agenda items included voter education; student travel, remuneration, and use of institutional vehicles; possible computerized Regents' Test option for a fee; budget reductions and institutional implications; HOPE Scholarship and student fee impact strategies; and SGA and student leader assessment. Feedback received indicates that the "renewed" SAC has been well received by student leaders, administrators, and University System Office staff. Year-end survey results indicated that the student leaders find the new structure far more effective and efficient than the previous structure and feel they will now have a better opportunity to engage in meaningful dialogue. One long-time SAC participant commented at the April meeting, "After five years attending SAC conferences, I feel I learned more and we accomplished more in seven hours today than we had in all my time in SAC."

Mr. Sanseviro stated that he had welcomed the newly elected SGA presidents and added them to the listserv. A bridge period has been established during this summer for listserv communication between outgoing and incoming SGA presidents. Mr. Sanseviro had met with System SGA advisors to help coordinate a seamless transition of student leaders from year to year to assist in creating continuity for SAC.

On behalf of the students, Mr. Vilela thanked the Chancellor and the Regents for their continued support and guidance for SAC.

Chair Harris thanked Mr. Sanseviro and Mr. Vilela for their presentation and for their activities in supporting students around the University System of Georgia. On behalf of the Regents, he thanked SAC for its input and communications with the Board.

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SPECIAL RECOGNITION: FISCAL YEAR 2003 REGENTS' AWARDS FOR ACADEMIC EXCELLENCE

Chair Harris next called upon the Senior Vice Chancellor for Academics and Fiscal Affairs, Daniel S. Papp, to begin the presentation of the fiscal year 2003 Regents' Awards for Academic Excellence. Dr. Papp would introduce the award recipients while Chair Harris and Chancellor Meredith presented the awards.

Dr. Papp said that 2003 marks the seventh year the University System has presented awards for teaching excellence and the fifth year for the awards for research in undergraduate education. These awards recognize and reward individuals and programs that exemplify a deep and inspiring commitment to effective teaching and learning, dedicated service to students, and research that enhances teaching through scholarship and research. Awards are made in two separate categories and broken out further into faculty awards and program awards. Each award category recognizes separately efforts by research universities, regional and state universities, and two-year and state colleges.

The first award was the Regents' Teaching Excellence Award for faculty at two-year and state colleges. The recipient of this award was Dr. Kristie A. Kemper, Professor of English at Floyd College ("FC"). Permeating every aspect of Dr. Kemper's teaching is her ability to motivate students, to "challenge them to think for themselves, to relate subject matter to their own lives, and to stretch to their full potential." Her caring attitude, her commitment to student success, and her willingness to explore innovative strategies are exhibited in everything she does. Besides teaching English, Dr. Kemper also serves as an advisor for the college newspaper, The Six Mile Post. More than a few students attributed their writing achievements to their work with her on this publication, which has garnered awards from state, regional, and national organizations for excellence. Over her 24 years at FC, Dr. Kemper has displayed strong leadership for student activities, leadership in instructional technology, and dedication to the students and FC. She gives 100% of herself to her class and her students.

Dr. Chellu S. Chetty, Professor of Biology at Savannah State University ("SSU"), was the winner of the Regents' Teaching Excellence Award for faculty at regional and state universities. Because he learned through interaction, application, and association, Dr. Chetty uses these approaches in his own teaching. His success is nothing short of spectacular. He has become known at SSU as an instructor who strives to build confidence and to raise comfort levels of students in his classes, believing that "students are more likely to contribute to discussions and to offer personal opinions and experiences" that help foster and deepen learning. Of approximately 150 biology majors who have graduated from SSU in the last five years, more than 50% have pursued higher degrees in health-related fields. Outside the classroom, Dr. Chetty has established a reputation as an effective mentor, working with high school students in pursuing health-related careers, organizing field trips for workshops, and creating a pre-health science club in collaboration with other educational institutions. His dedication to student success evident in everything he does.

The Regents' Teaching Excellence Award for faculty at research universities was awarded to Dr. John T. Benjamin, Professor of Pediatric Medicine at the Medical College of Georgia ("MCG"). Dr. Benjamin's success is based on his commitment to teaching what the students need to know in a context that makes them see their need for the information. He challenges them to think through all the information and make some sense of it and then utilizes these as teaching points that students need to remember. Dr. Benjamin enjoys teaching so much that, as one of his administrators said, "One can almost imagine the strains of ‘Ode to Joy' in the background." Dr. Benjamin said it best himself: "I discovered rather late in life that I was, and had been, a teacher most of my life…. I was unprepared for the joy I discovered when teaching attentive, focused, bright medical students and residents…. I think I feel best about myself as a teacher when the learner states, ‘I am not sure of the answer to that question; I need to look it up,' and then they do." His special abilities to help students learn and to apply their skills and knowledge have resulted four Teacher of the Year Awards at MCG and several other appreciation awards from the students at the college.

Next, Dr. Papp presented the Regents' Awards for Teaching Excellence for programs. The winner of this award at two-year and state colleges was the Dental Hygiene program at Floyd College. Accepting the award on behalf of the program were Donna L. Miller, Director and Associate Professor of Dental Hygiene; Dr. Thomas F. McDaniel, Associate Professor of Dental Hygiene; Donna Sutton, Assistant Professor of Dental Hygiene; and Carolyn Gail Grass, Administrative Assistant. Although the Dental Hygiene program is only in its third year as an independent program, its track record is remarkable. With a pass rate of 100% on state and national licensure examinations, this program sets the standard for the University System of Georgia, reflecting superior student performance and success as a result of outstanding teaching. The program provides a student-focused education based on the development of important competencies related to the knowledge, skills, and attitudes graduates need for successful practice. The curriculum of the program interweaves the basic and clinical sciences, liberal arts, and interpersonal communication, producing a professional who believes in and implements the ideals necessary to succeed in this field.

The Regents' Awards for Teaching Excellence for programs at regional and state universities was presented to the Education Specialist program in Teacher Leadership at North Georgia College & State University ("NGCSU"). This program is committed to developing instructional leadership abilities in teachers. Because leadership is usually left to the principals, a curriculum guiding teachers to develop their skills as team leaders is rarely part of the preparation for classroom teaching, but in today's schools, teachers are increasingly expected to engage in more and varied leadership roles. The Education Specialist program in Teacher Leadership was designed through collaboration among faculty from NGCSU and P-16 partner schools during the 1999-2000 academic year, with professionals from both settings now providing instruction. The curriculum includes the study of the theory, research, and exemplary practices related to the National Board for Professional Teaching Standards and the Interstate School Leaders Licensure Consortium. This program has had tremendous success in a short period, with full enrollment and documented success of graduates. Accepting the award on behalf of the program was Dr. India Podsen, Professor of Middle/Secondary Education and Coordinator of the Education Specialist program.

Next, Dr. Papp presented the Regents' Research in Undergraduate Education Awards. The first award was for the two-year and state colleges level and was presented to Dr. Joseph A. Mayo, Professor of Psychology at Gordon College ("GOC"). Dr. Joseph Mayo has taken on the challenge to establish constructivism as an effective and meaningful pedagogy for undergraduate learners. Over the past 14 years at GOC, he has engaged in rigorous and systematic research to determine the extent to which the constructivist approach contributes to student learning. Dr. Mayo has achieved significant results that show constructivism compares favorably to more traditional learning approaches, especially in the realm of higher order thinking. He has published numerous articles in prestigious research journals that detail his work. He recently completed a collaborative project with a member of the GOC biology faculty that led to a more thorough analysis of concept mapping as a learning tool. This project is currently underway in his introductory psychology classes. Students hail Dr. Mayo as "dedicated, passionate, demanding, and honest," a professor who "covers material in a meaningful way" that helps them want to learn. Dr. Papp said that this is what teaching is all about.

The Regents' Research in Undergraduate Education Award at regional and state universities was awarded to Dr. Gail B. Schiffer, Professor of Biology at Kennesaw State University ("KSU"). Dr. Schiffer has had a profound effect on the learning of science by undergraduates at KSU. The broad impact of her work has come through several impressive initiatives: reform of the University System's general education science curriculum, laboratory program innovation, assessment of the general education science program, and the creation of the first-year learning community program. The general education science curriculum incorporates broad themes that integrate all science disciplines. The laboratory design utilizes technology-enhanced modules that synthesize wet lab exercises with computer simulations and online data collection and analysis. The assessments for science and the learning community program developed by Dr. Schiffer and various colleagues at KSU and throughout the System indicate improved retention, strong student satisfaction, and even higher grade point averages for students who participate in the program compared to those who do not. Dr. Papp noted that Dr. Schiffer was also instrumental in developing two of the Board's strategic planning goals. In her statement, Dr. Schiffer credited the "wonderful colleagues who have guided, encouraged, and collaborated with me. Being nominated for this award is an honor, but it is not mine alone. . . .[It] is a validation of the efforts of all of us."

Finally, Dr. Papp announced that the Regents' Research in Undergraduate Education Award at research universities was awarded to Dr. Marie A. Chisholm, Associate Professor of Pharmacy at the University of Georgia ("UGA"). He remarked that Dr. Chisholm could be described as the exemplar of the scholar-teacher. Her scholarship includes numerous articles in peer-reviewed journals, 16 book chapters, three books (one of which is the top preparation publication for the Pharmacy College Admissions Test), over 25 abstracts, and over 40 presentations. Dr. Chisholm has also attracted over $2.2 million in external funding to UGA and has a record of outstanding teaching. What makes this scholarship so inspiring is that it is focused on student learning and factors that impact it. According Dr. Joseph Thomas DiPiro, Head of the Department of Clinical and Administrative Pharmacy, "[Dr. Chisholm] has become one of the most accomplished faculty members in her field in the country." In her statement, Dr. Chisholm stated, "Teaching is about learning; therefore, my research in education involves exploring learning and the learning process…. I often find myself pondering: What can be done to enhance the educational process? What methodologies influence learning the most? What factors predict academic success or other positive student behaviors?" Dr. Chisholm's passion for teaching, her excitement for the topics she teaches, and her skill as a researcher combine to create motivated and outstanding students. Dr. Svein Øie, Dean of the College of Pharmacy, accepted this award on behalf of Dr. Chisholm, who was unable to be in attendance at the meeting.

This concluded the awards presentation. Dr. Papp asked the Regents to join him in congratulating the winners.

On behalf of the Board of Regents, Chair Harris congratulated the award recipients. He remarked that the University System of Georgia is only as good as its people and that these programs and individuals represent the very best of the System. He then called for the Committee reports.

EXECUTIVE AND COMPENSATION COMMITTEE

The Executive and Compensation Committee met on Tuesday, May 20, 2003, at approximately 11:00 a.m. in room 7019, the Chancellor's Conference Room. Committee members in attendance were Chair Joe Frank Harris and Regents Hilton H. Howell, Jr., Donald M. Leebern, Jr., Elridge W. McMillan, and Joel O. Wooten. Chancellor Thomas C. Meredith attended part of the meeting. The Secretary to the Board, Gail S. Weber, was in attendance for the duration of the meeting. Chair Harris reported to the Board on Wednesday that the Committee had discussed a personnel issue. That item was as follows:

1. Executive Session

At approximately 11:00 a.m. on Tuesday, May 20, 2003, Chair Harris called for an Executive Session for the purpose of discussing a personnel issue. With motion properly made and variously seconded, the Regents who were present voted unanimously to go into Executive Session. Those Regents were as follows: Chair Harris and Regents Hilton H. Howell, Jr., Donald M. Leebern, Jr., Elridge W. McMillan, and Joel O. Wooten. Chancellor Thomas C. Meredith attended part of the meeting. The Secretary to the Board, Gail S. Weber, was in attendance for the duration of the meeting. In accordance with H.B. 278, Section 3 (amending O.C.G.A. § 50-14-4), an affidavit regarding this Executive Session is on file with the Chancellor's Office.

At approximately 12:20 p.m., Chair Harris reconvened the Committee meeting in its regular session and announced that no actions were taken in Executive Session.

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AUDIT COMMITTEE

The Audit Committee met on Tuesday, May 20, 2003, at 10:00 a.m. in room 7005. Committee members in attendance were Chair Joel O. Wooten, Jr., Vice Chair Connie Cater, and Regent Hilton H. Howell, Jr. Chancellor Meredith was also in attendance at this meeting. Chair Wooten reported to the full Board on Wednesday that the Committee had reviewed three items, none of which required action. Those items were as follows:

1. Presentation of Fiscal Year 2004 Audit Plan

Each year, the Associate Vice Chancellor for Internal Audits, Ronald B. Stark, prepares an audit plan for the University System of Georgia. He develops this plan by requesting input from the Regents, University System Office audit managers, and the institutions. He prepares a matrix of the responses from all parties, and then, he determines risk factors and selects institutions to be audited. He determines the scope of the audit coverage using a risk-evaluation process. Then, he allocates audit resources, taking into consideration the coverage provided by the Georgia Department of Audits and Accounts and the audit plans of the 13 institutions with internal audit departments. The campus-based auditors prepare their audit plans based on an institutional risk-assessment process. Each institutional audit plan is discussed and approved by the respective institution's president and Mr. Stark.

At this meeting, Mr. Stark presented the full audit plan for the University System of Georgia for fiscal year 2004, including coverage provided by the Board of Regents audit staff and the campus-based auditors. He noted that approximately 25% of System institutions are considered sensitive to high risk for audit findings, 50% are considered moderate risk, and 25% are considered low risk. He also noted that the fiscal year 2004 audit plan includes information technology audits and reviews.

2. Presentation on Summary of Audits by Georgia Department of Audit and Accounts

Every year, the Georgia Department of Audits and Accounts completes an audit or review of each institution in the University System. Audits include testing of transactions, evaluations of internal controls, compliance with state and federal laws, and compliance with Board of Regents and Georgia policies and procedures. Reviews are much less in depth, and tests of transactions of controls and other audit work are limited, although audit findings regarding financial statements are occasionally disclosed.

The Department of Audits and Accounts, in coordination with the Vice Chancellor for Internal Audits, Ronald B. Stark, rates each institution regarding the seriousness of audit findings. Mr. Stark presented this year's ratings and compared them to prior year ratings. He explained that for fiscal year 2002, there were five Code 5 ratings and one Code 4 rating and that these were the two poorest ratings on the ratings scale. The remaining institutions ranked Code 3 or better, indicating that they were performing satisfactorily.

Regent Cater expressed his concern regarding the time it takes to correct audit deficiencies. Regent Howell also expressed his frustration that audit findings are not resolved in a timely manner. Mr. Stark responded that he would report back on this at the next Committee meeting with an update on outstanding audit findings.

Chancellor Meredith noted that he had asked presidents to report back within 30 days regarding all audit findings and how they will rectify the findings, complete with a timetable. Regent Howell suggested that next year, the Board not reappoint presidents whose institutions are again rated a Code 5. Chancellor Meredith stated that the staff will report back at the next Committee meeting with a plan to ensure timely resolution of audit findings.

3. Summary of Fiscal Year 2002 Year-End Close and Internal Controls

At this meeting, the Director of Education Audit Division, Department of Audits and Accounts, Ronald E. Watson, discussed University System of Georgia audits and the Department of Audits and Accounts' assessment of internal controls at the University System of Georgia institutions. Due to the Systemwide implementation of PeopleSoft as part of the GeorgiaFirst project, state auditors issued findings criticizing the failure of certain institutions to prepare in a timely and efficient manner financial data needed by the auditors for examination. Their failure to adhere to final closing dates resulted in a great deal of incomplete information. The findings also criticized the inability to reconcile financial data contained on the general ledger with subsidiary ledgers. Further, the auditors criticized the institutions' inability to provide adequate detailed records from the BANNER student registration system to support balances recorded on the accounting system's general ledger.

Mr. Watson recommended that audit staff at System institutions receive training on PeopleSoft and on new accounting requirements adopted by the General Accounting Standards Board ("GASB"). He further recommended that the University System's larger institutions (i.e., the Georgia Institute of Technology, Georgia State University, and the University of Georgia) create their own audit reports in order to facilitate the state audit process.

The Vice Chancellor for Internal Audits, Ronald B. Stark, called upon the Vice Chancellor for Fiscal Affairs, William R. Bowes, and the Vice Chancellor for Information and Instructional Technology and Chief Information Officer, Randall A. Thursby, to present their action plan to address the state auditors' findings, particularly as they pertain to the implementation of PeopleSoft. They discussed the System-level and institutional responsibilities in correcting the problems and presented a timeline for the implementation of corrective measures.

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COMMITTEE ON FINANCE AND BUSINESS OPERATIONS

The Committee on Finance and Business Operations met on Tuesday, May 20, 2003, at approximately 2:00 p.m. in the Board Room. Committee members in attendance were Vice Chair Glenn S. White and Regents Connie Cater, Julie Hunt, Donald M. Leebern, Jr., Martin W. NeSmith, and Joel O. Wooten, Jr. Chancellor Meredith was also in attendance at this meeting. Regent Cater reported to the Board on Wednesday that the Committee had reviewed seven items, six of which required action. He called upon the Vice Chancellor for Fiscal Affairs, William R. Bowes, who expressed his appreciation to the University System Office budget staff for their exemplary work on the fiscal year 2004 budget during an especially challenging year. He recognized the following staff: the Budget Director, Usha Ramachandran; the Assistant Budget Director, Gerald Vaughan; the Budget Specialist, Josephine Pearson; the Budget Policy Analyst, Susan Wright; the Administration Coordinator for Fiscal Affairs, Angelia D. Thomas; and Santricia Duhart, Student Assistant. Regent Cater thanked Mr. Bowes for this opportunity to praise the staff.

With motion properly made, seconded, and unanimously adopted, the Board approved and authorized the following:

1. Approval of Fiscal Year 2004 Budget Allocations

Approved: The Board approved the allocation of state appropriations for fiscal year 2004 among the institutions and operating units of the University System of Georgia.

This item was discussed in full by the Committee on Finance and Business Operations as a Committee of the Whole. (See pages 2 to 6.)

Background: With state revenues continuing to decline during the last year, the University System of Georgia, along with all state agencies, will carry fiscal year 2003 budget reductions into fiscal year 2004 and witness additional budget reductions. The fiscal year 2003 budget reductions for the University System of Georgia totaled to $184 million. In fiscal year 2004, that figure increases to $211 million, or 12.2% of previous base funding, with the addition of a $23.5 million cut of instructional funding for University System institutions and an additional 1% reduction of "B" units and other line item budgets. Another critical reduction comes in the major repair and renovation ("MRR") program, which is funded at a level of $20 million in fiscal year 2004, down from the approximately $59 million that would be generated by the formula. This will have a significant effect on the ability of System institutions to make needed repairs to facilities and to handle emergencies.

These budget reductions also come at a time when the University System of Georgia faces record enrollments and a surge in quality. Headcount enrollment grew 7.1% from fall 2001 to fall 2002. Credit hour enrollment has rebounded fully and surpassed levels achieved prior to semester conversion. Average SAT scores are at an all-time high of 1030, and the Georgia Institute of Technology and the University of Georgia have climbed to the rank of ninth and eighteenth, respectively, as the best public universities in America, according the U.S. News and World Report.

The Governor and General Assembly approved $88 million in formula funds, continuing the strong support that both the executive and legislative branches have provided to the University System of Georgia over the years for this critical component of the budget.

The total state appropriations approved by the General Assembly for current University System of Georgia operations, including institutions and other organized activities is $1.68 billion. This represents a $56 million decrease below fiscal year 2003 appropriations. Appropriations for University System institutions are $1.44 billion, which includes $31.9 million in funds for special funding initiatives. Due to increasing demands for HOPE Scholarship and pre-kindergarten funding for fiscal year 2004, lottery funds normally provided for System-level technology initiatives have not been appropriated. Instead, the Governor and General Assembly elected to provide lottery funds for System-level technology initiatives in the fiscal year 2003 amended budget, although at a level substantially below previous years. Lottery funds for the Equipment, Technology, and Construction Trust ("ETACT") are included also in the fiscal year 2003 amended budget at a level of $12 million. This is a drop from the previous level of $15 million. Institutions will be required to expend these funds in the current fiscal year but will have until the end of fiscal year 2004 to obtain private matching funds under the requirements established for that program.

Other organized activities ("B" budget unit and nonteaching "A" budget activities) including the Georgia Tech Research Institute, the Agricultural Experiment Station, the Cooperative Extension Service, the University System Office, and the Georgia Public Library Service, received $237.1 million in state appropriations, a decrease of $29.3 million below current funding levels. Like the special funding initiatives, all "B" budget unit activities were reduced by an additional 1% in fiscal year 2004. Additionally, the State Data Research Center was transferred from the Board of Regents to the Department of Education.

The formula comprises the major component of new state appropriations approved by the Governor and General Assembly for the University System of Georgia. It includes $88.2 million in new formula funding, of which $81.5 million is for enrollment-related increases and $6.7 million is for operation and maintenance of new facilities. The fringe benefits, telecommunications, and rental funds were reduced by a total of $13.4 million for fiscal year 2004, of which the reductions for workers' compensation ($6.52 million) and liability insurance ($2.24 million) are offset by a corresponding reduction in expenditures. No additional funding was provided in the appropriations bill for increased health and life insurance premiums or for increased contributions required for the optional retirement program. Collectively, these costs increases amount to approximately $22 million and will have to be absorbed within current University System of Georgia resources. Additionally, the policy of the Governor and General Assembly to cap formula funding for continuing education is sustained in the appropriations. Thus, no new funds have been provided for continuing education despite increases in continuing education units.

Allocation Process and Strategy

Between January and March 2003, a senior leadership group representing academic and fiscal affairs staff held budget conferences with each institutional president and his/her senior administrators. The purpose of the conferences was to discuss the Governor's budget recommendations and actions by the General Assembly on the budget, particularly as they concerned issues of formula funding and proposed budget reductions. The conferences also focused on key institutional priorities and needs, institutional enrollment trends, tuition strategies, and mandatory and elective student fee requests. Additionally, prior to the development of final allocation recommendations, staff consulted with the Board of Regents Chair, the Chair of the Committee on Finance and Business Operations, and other members of the Board.

The guiding principles for budget allocations for fiscal year 2004 are as follows:

To allocate new funds more closely in conformance with the budget formula

The recommendations provide that 80% of funds generated by institutions through enrollment growth as expressed in the budget formula are allocated accordingly. The new principle recognizes that several institutions, due to their enrollment growth, are experiencing significant demand on available instructional capacity. If allocations do not keep pace to some degree, overall program quality could be threatened. Additionally, the recommendations propose that new formula funds generated by each institution for operation and maintenance of physical plant, fringe benefits, and other factors be allocated accordingly.

To introduce a performance factor into allocations in accordance with the Board of Regents' strategic goals

An allocation methodology has been established to provide additional funding to institutions that meet performance targets on three key indicators: retention, graduation transfer rate for two-year institutions, and sponsored program funding. The methodology, which was developed with the assistance of Systemwide committee comprised of chief academic and business officers, links funding to institutions based on meeting a minimum threshold on each of these factors, where factors are applicable to the institution's mission. A small amount of new formula funds, about $4.07 million or 5% of enrollment-related formula funds, is recommended to be allocated in this fashion. Additional measures will be developed in the future to expand the performance concept.

To reinforce institutional missions and support strategic initiatives of the Board of Regents within the limit of available funds.

An amount of $12.2 million, or approximately 15% of new formula funds, has been set aside to support specific strategic initiatives of the Board developed over the last year, to reinforce and support mission objectives at a select number of University System institutions, and to address critical needs or issues.

The allocation recommendations in this category include the following:

The Chancellor recommended that additional allocations of 5% of enrollment earnings, or $4.07 million, be provided to help institutions meet basic operating costs in light of significant budget reductions.
Provide support for the mission of the Medical College of Georgia with $4.3 million to help the institution hire additional faculty and expand research.
Provide funds to institutions with low allocations per full-time equivalent ("FTE") student, such as Clayton College & State University, State University of West Georgia, Kennesaw State University, East Georgia College, Gordon College, and Georgia Perimeter College.
Support Board of Regents initiatives such as the best practices program, the African-American Male Initiative, the Georgia Lifelong Education and Economic Development Services ("Georgia LEADS") program, the preventive maintenance program, and training for PeopleSoft, BANNER, and other systems applications.
One-time funds were recommended from the fiscal year 2003 funds to recognize the importance of continuing education and maintaining accountability in the University System of Georgia.

To allocate budget reductions from across-the-board cuts as a proportional share of current institutional appropriations

During fiscal year 2003, budget reductions approved by the General Assembly were allocated to each institution according to its current share of state appropriations under the formula. The Board approved these allocation reductions during regular meetings last year. "B" budget unit reductions were approved directly by the General Assembly as line item appropriation cuts. The allocation recommendations for fiscal year 2004 carry forward these reductions as previously approved.

To adjust for the loss of "hold-harmless" funds in accordance with allocation rules established for those funds

As a result of the University System's recovery of credit hour enrollment beyond pre-fiscal year 2000 levels, the fiscal year 2004 appropriations bill eliminates $27.7 million in funds provided to the University System of Georgia to assist with the transition from quarter hours to semester hours. These funds had been distributed to each System institution based 50% upon its proportional share of total state appropriations and 50% upon its proportional share of the total Systemwide average enrollment loss averaged over a three-year period, beginning with fiscal year 1998. The allocation recommendations reduce funding to each institution in accordance with this formula.

To reduce variances in the appropriations allocations per FTE student for each category of institutions within a specified range

The allocation recommendations include additional funding to bring Kennesaw State University, State University of West Georgia, and Clayton College & State University closer to the mean for their sectors with respect to state funding per FTE student. Additionally, the recommendations reduce funding for a number of institutions that are well beyond the mean of institutions within their sector in terms of allocations per FTE student.

2. Approval of Fiscal Year 2004 Tuition

Approved: The Board approved the tuition rates and policy adjustments for fiscal year 2004 to become effective in the fall semester 2003.

This item was discussed in full by the Committee on Finance and Business Operations as a Committee of the Whole. (See pages 4 to 6.)

Background:

Undergraduate and Graduate Tuition

It is recommended that tuition rates be adjusted as follows: increased 15% for research universities, 10% for regional and state universities and colleges, and 5% for two-year colleges within the University System of Georgia. Additionally, it is recommended that tuition rates at Georgia College & State University and Southern Polytechnic State University be increased by 15% to recognize the special missions of these institutions. These adjustments provide the minimum amount of tuition revenue required to meet the 25% share of formula-related costs that are borne by students, to provide for annualization of the increased salary costs attributable to the 3.25% merit-based salary increase approved last year, to address mission differentials and provide funding to institutions to support recent enrollment increases, and to maintain program quality.

While increases at all System institutions are important to maintain quality and access for the tremendous growth in enrollment experienced during the last two years, the increase for the research universities is especially critical. As a result of efforts in recent years to build quality into these institutions, the Georgia Institute of Technology is now ranked ninth among all public universities in the country and within the top ten for major engineering programs. Georgia State University is ranked number one in the country among part-time master of business administration ("M.B.A.") programs in public universities. The University of Georgia is ranked eighteenth among all public universities, and its education programs are ranked in the top ten.

In comparison with peer institutions, these institutions fall some 35% to 43% below the average for tuition and fees. Budget reductions of the last two years have reduced funding for these institutions in the range of $18 million to $35 million, which may have a significant impact on the ability of these institutions to retain their position among leading public universities across the country.

Additionally, it is recommended that the per credit hour rate for eCore courses be increased from $100 to $125. The eCore program was created in 2000 as a collaborative distance learning program offering core curriculum courses to ease reentry or initial entry into the University System of Georgia for nontraditional students. The initial tuition rate of $100 per credit hour reflected average costs for participating System institutions and the general market for distance learning in the south as determined by the Southern Regional Education Board. The proposed rate, which represents the first increase in tuition in three years, maintains that pricing structure.

Graduate tuition rates, excluding select graduate professional programs, are set by Board policy at a level 20% above undergraduate tuition rates. Out-of-state rates are established, also by Board policy, at a level representing at least four times the in-state tuition rates.

Professional Program Tuition

Board policy authorizes institutions to request approval for separate tuition rate adjustments for select nationally competitive graduate and professional programs. The purpose of the policy is to provide additional funds for program enhancements while allowing programs to remain competitive with peer programs in colleges and universities in other states. This year, 19 requests to increase tuition rates were submitted. The 14 programs listed below are recommended for tuition differential increases under this policy. Appendix II contains a schedule of professional program tuition rates.

Georgia Institute of Technology

M.S. in Prosthetics and Orthotics
M.S. in Quantitative Computational Finance
M.S. in Bioinformatics
Master of Industrial Design
Joint Ph.D. in Biomedical Engineering

Georgia State University

M.B.A./M.S. College of Business
Global Partners M.B.A.
Executive M.B.A.

Medical College of Georgia

Medical School Programs

University of Georgia

Pharmacy Program
Law Programs
Veterinary Medicine Program
M.B.A.

Kennesaw State University

M.B.A. for Experienced Professionals

3. Approval of Fiscal Year 2004 Mandatory Student Fees

Approved: The Board approved increases and/or adjustments in mandatory student fees for various institutions of the University System of Georgia.

This item was discussed in full by the Committee on Finance and Business Operations as a Committee of the Whole. (See pages 5 to 6.)

Background: To support requests for fee increases, each System institution is required to submit financial statements and supporting justification that document need. The fee review process carefully considers only those requests that meet minimum submission criteria, fully explain all costs and revenues, and comply with business plan objectives. Additionally, and in accordance with the policy adopted by the Board in February 2000, each institution must demonstrate that fee increase requests were reviewed by a committee comprised of at least 50% of students appointed by the student government association.

Fifty-one requests were submitted to adjust technology fees, athletic fees, student activity fees, health service fees, and transportation or parking fees. The recommendations contained in Appendix III propose that 27 of these requests be approved as submitted and 13 requests be approved at reduced levels. Eleven requests are not recommended for approval.

4. Approval of Renewal of and Amendments to Agreements Between the Board of Regents and MCG Health, Inc. Regarding Medical College of Georgia Hospitals and Clinics

Approved: The Board approved renewal of the Master Affiliation Agreement and all Associated Agreements as amended for fiscal year 2004 (July 1, 2003 through June 30, 2004) between the Medical College of Georgia ("MCG") and MCG Health, Inc. ("MCGHI") regarding the operation and management of MCG hospitals and clinics.

Background: In January 2000, the Board of Regents approved the Master Affiliation Agreement between the Board of Regents and MCGHI for the operation and management of the MCG hospitals and clinics. The Master Affiliation Agreement was the first of a series of agreements that cover facilities, assets, employees, and other elements involved in the transfer of operation and management effective July 1, 2000. It embodies the fundamental understanding of the parties regarding the proposed affiliation and expresses the interests of the parties in negotiating the terms of the Associated Agreements.

The Board of Regents approved the Associated Agreements in April 2000. The Associated Agreements spell out in detail the terms of the transfer and the ongoing relationships between MCG and MCGHI and between MCGHI and the MCG Physicians Practice Group ("PPG"). The Master Affiliation Agreement was amended in April 2000 to conform its provisions to the terms of the Associated Agreements.

The Associated Agreements include the Master Lease; the Clinical, Educational, and Research Services Agreement (the "CERSA"); the Operations and Services Agreement (the "OSA"); the Personnel Agreement; the Asset Transfer Agreement detailing the assets and liabilities to be transferred; and the MCGHI/PPG Agreement. All of these agreements, with the exception of the Master Lease, whose term is ten years, are renewable at the end of each fiscal year, with approval of the Board of Regents and the Board of Directors of MCGHI. The Affiliation Agreement provides for both parties to propose amendments to the agreements that may be negotiated with the renewal.

MCG and MCGHI have negotiated several amendments to the OSA, the CERSA, and the Personnel Agreement as defined in Appendix IV. These amendments update and clarify the terms of the agreements, and the cost of personal and nonpersonal services purchased from one party by the other. The essential relationship between the parties remains unchanged.

Two additional agreements define the relationship between MCG and PPG, a cooperative organization of MCG, and the relationship between PPG and MCGHI. These agreements do not require renewal each fiscal year, and the parties have submitted no amendments to either.

5. Approval of Appointment of Board of Regents Representative to the Teachers Retirement System of Georgia Board of Trustees

Approved: The Board approved the reappointment of Dr. Sandra Gustavson as the representative of the Board of Regents to the Teachers Retirement System of Georgia ("TRSGA") Board of Trustees. The appointment is effective from July 1, 2003, through June 30, 2006.

Background: Dr. Gustavson is the current representative of the Board of Regents to the TRSGA Board of Trustees. She has served in this important capacity for the past four years. Dr. Gustavson is the Associate Dean for Faculty and Research in the Terry College of Business at the University of Georgia. She has formal training in risk management and insurance, as well as, portfolio management. She has professional designations (i.e., CLU - Chartered Life Underwriter, ChFC - Chartered Financial Consultant) in life insurance and related areas, including estate planning and employee benefits. Dr. Gustavson has written articles on employee benefits, portfolio performance, long-term healthcare, and disability insurance.

6. Approval of Changes to The Policy Manual, Section 704.041 Out-of-State Tuition Waivers

Approved: The Board approved a change in policy that would enable military personnel who are reassigned out of state to maintain continuity of in-state tuition for themselves and their family members, as indicated below.

Background: The U.S. Army requested that all states adopt a policy granting in-state status to military personnel and their families at public colleges and universities for determining tuition rates to include:

Always having in-state tuition within their legal state of residence.
Having immediate privilege of in-state tuition for soldiers/family members in state of assignment on military orders.
Having continuity of in-state tuition once established.

The Board of Regents policy permitted the first two provisions of this request, but not the third. It did not preserve the tuition waiver for family members enrolled in System institutions who elected to remain in Georgia and remained enrolled after the soldier is reassigned to another post out of state. The policy revision below allows continuity of that waiver. This modification enables a soldier enrolled in a degree program to continue his or her education, if course work is available through distance learning. Family members will be able to remain in the state and continue their education at the in-state tuition rate.

To support this request, the policy was modified to include a provision to allow military personnel and their dependents to continue their eligibility for a waiver of out-of-state tuition if the military support person is assigned out of state.

The highlighted statement in the revised policy below was added to The Policy Manual, Section 704.041 Out-of-State Tuition Waivers:

Proposed Policy

704.041 OUT-OF-STATE TUITION WAIVERS

An institution may waive out-of-state tuition and assess in-state tuition for:

Academic Common Market. Students selected to participate in a program offered through the Academic Common Market.
International and Superior Out-of-State Students. International students and superior out-of-state students selected by the institutional president or an authorized representative, provided that the number of such waivers in effect does not exceed 2% of the equivalent full-time students enrolled at the institution in the fall term immediately preceding the term for which the out-of-state tuition is to be waived.
University System Employees and Dependents. Full-time employees of the University System, their spouses, and their dependent children;
Medical/Dental Students and Interns. Medical and dental residents and medical and dental interns at the Medical College of Georgia (BR Minutes, 1986-87, p. 340);
Full-Time School Employees. Full-time employees in the public schools of Georgia or of the Department of Technical and Adult Education, their spouses, and their dependent children. Teachers employed full-time on military bases in Georgia shall also qualify for this waiver (BR Minutes, 1988-89, p. 43);
Career Consular Officials. Career consular officers, their spouses, and their dependent children who are citizens of the foreign nation that their consular office represents and who are stationed and living in Georgia under orders of their respective governments.
Military Personnel. Military personnel, their spouses, and their dependent children stationed in Georgia and on active duty, unless such military personnel are assigned as students to System institutions for educational purposes. The waiver can be retained by the military personnel, their spouses, and their dependent children if the military sponsor is reassigned outside of Georgia, as long as the student(s) remain(s) continuously enrolled and the military sponsor remains on active military status.
Research University Graduate Students. Graduate Students attending the University of Georgia, the Georgia Institute of Technology, Georgia State University, and the Medical College of Georgia, which shall be authorized to waive the out-of-state tuition differential for a limited number of graduate students each year, with the understanding that the number of students at each of these institutions to whom such waivers are granted shall not exceed the number assigned below at any one point in time:

University of Georgia 80

Georgia Institute of Technology 60

Georgia State University 80

Medical College of Georgia 20
Border County Residents. Residents of an out-of-state county bordering a Georgia county in which the reporting institution or a Board-approved external center of the University System is located.
National Guard Members. Full-time members of the Georgia National Guard, their spouses, and their dependent children. (BR Minutes, April, 1998, pp. 16-17);
Students enrolled in University System institutions as part of Competitive Economic Development Projects. Students who are certified by the Commissioner of the Georgia Department of Industry, Tourism and Trade as being part of a competitive economic development project;
Students in Georgia-Based Corporations. Students who are employees of Georgia-based corporations or organizations that have contracted with the Board of Regents through University System institutions to provide out-of-state tuition differential waivers;
Students in Pilot Programs. Students enrolled in special pilot programs approved by the Chancellor. The Chancellor shall evaluate institutional requests for such programs in light of good public policy and the best interests of students. If a pilot program is successful, the tuition program shall be presented to the Board for consideration;
Students in ICAPP^® Advantage programs. Any student participating in an ICAPP® Advantage program; and
Direct Exchange Program Students. Any international student who enrolls in a University System institution as a participant in a direct exchange program that provides reciprocal benefits to University System students.
Families Moving to Georgia. A dependent student who, as of the first day of term of enrollment, can provide documentation supporting that his or her supporting parent or court-appointed guardian has accepted full-time, self-sustaining employment and established domicile in the State of Georgia for reasons other than gaining the benefit of favorable tuition rates may qualify immediately for an out -of-state tuition differential waiver which will expire 12 months from the date the waiver was granted. An affected student may petition for residency status according to established procedures at the institution.
Recently Separated Military Service Personnel. Members of a uniformed military service of the United States who, within 12 months of separation from such service, enroll in a program for teacher certification and demonstrate an intent to become a permanent resident of Georgia. This waiver may be granted for not more than one year.

7. Information Item: Report on Senate Bill 73

The Vice Chancellor for Fiscal Affairs, William R. Bowes, reported to the Committee about Senate Bill 73 ("SB 73"), which was passed during the 2003 legislative session, and its impact on financial operations in the University System of Georgia. SB 73 passed on the last day of the fiscal year 2003 legislative session. It does three things: 1) raises the inventory threshold from $1,000 to $3,000, 2) increases the receivable write-off amount from $100 to $3,000, and 3) allows the carryforward of continuing education funds, technology fee revenues, and indirect cost-recovery funds. This will have far-reaching benefits for the University System of Georgia. It transforms many financial operations and processes that have been in effect for years. Mr. Bowes said that he was grateful for the leadership of Governor Sonny Perdue and his Interim Chief Financial Officer and Senior Advisor, Hank Huckaby, who was instrumental in bringing the issues to the Governor and whose support was essential to achieving a successful outcome. Mr. Bowes also expressed gratitude to Huckaby's Deputy Finance Officer, Bart Graham, whom he worked with on the details of the proposed legislation and justification.

Mr. Bowes and the Associate Vice Chancellor for Internal Audits, Ronald B. Stark had long noted the need for business changes, especially in light of new General Accounting Standards Board ("GASB") requirements. Moreover, carryforward is a critical component of the Board's strategic plan, as Mr. Bowes had explained at the October 2002 meeting of the Board of Regents.

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COMMITTEE ON REAL ESTATE AND FACILITIES

The Committee on Real Estate and Facilities met on Tuesday, May 20, 2003, at approximately 2:10 p.m. in the Board Room. Committee members in attendance were Vice Chair Martin W. NeSmith and Regents Connie Cater, Julie Hunt, Donald M. Leebern, Jr., Glenn S. White, and Joel O. Wooten. Chancellor Meredith was also in attendance at this meeting. Vice Chair NeSmith reported to the Board on Wednesday that the Committee had reviewed 7 items, 2 of which required action. Items 6 and 9 were withdrawn. Vice Chair NeSmith recognized the Vice Chancellor for Facilities, Linda M. Daniels, and the Assistant Vice Chancellor for Facilities (Real Property and Administration), Peter J. Hickey, for their hard work. With motion properly made, seconded, and unanimously adopted, the Board approved and authorized the following:

1. Naming of the Jacquelyn and John Head Terrace, University of Georgia

Approved: The Board approved the naming of the terrace on the north side of the Student Learning Center at the University of Georgia ("UGA") the "Jacquelyn and John Head Terrace."

Understandings: The Jack Head family has pledged $1 million to UGA's capital campaign in support of student leadership programs to help underwrite an enhanced and expanded orientation program designed to inculcate incoming students with an appreciation of the history and traditions of UGA as well as the academic and ethical responsibilities expected of each student who attends UGA.

Jack Head requested the naming of the Student Learning Center terrace in honor of his parents, Jacquelyn and John Head. John Head passed away on March 11, 2003.

2. Naming of Cremins Court, Georgia Institute of Technology

Approved: The Board approved the naming of the floor of the Alexander Memorial Coliseum at McDonald's Center at Georgia Institute of Technology ("GIT") "Cremins Court" in honor of Bobby Cremins.

Understandings: Bobby Cremins, upon his arrival at GIT for the 1981-1982 season, inherited a basketball program that in its first two years of competition in the Atlantic Coast Conference ("ACC") had a cumulative 12-41 record and a 1-29 record in league competition.

Bobby Cremins built GIT's basketball program and raised it to competitive status, going from cellar to title in four years. Cremins is GIT's winningest basketball coach and the third winningest coach in ACC history. He compiled a record of 354-237 in his 19 seasons, highlighted by three ACC titles, ten trips to the National Collegiate Athletic Association ("NCAA") tournament, including nine straight from 1985 through 1993, and a trip to the NCAA Final Four in 1990, the first and only time in GIT history. The Yellow Jackets tied for first place in the ACC in 1985 and finished alone atop the standings in 1996. They posted 13 consecutive winning seasons and 15 in Cremins' 19 years as coach.

Under his guidance, the program produced the ACC Player of the Year in 1990, 8 rookies of the year from 1983 through 1996, 13 first team All-ACC selections, and 12 first-round National Basketball Association ("NBA") draft picks.

Cremins was voted ACC Coach of the Year in 1983, 1985, and 1996, a total exceeded only by two Hall of Fame coaches, and named National Coach of the Year in 1985 and 1990.

Cremins retired following the 1999-2000 season with a career record of 454-307.

3. Purchase of Fleming Property, University of Georgia

Approved: The Board authorized the purchase of approximately 236.66 acres of real property located at the intersection of U.S. Highway 78 and Double Bridges Road near Winterville, Georgia, from Calvin B. Fleming, Homer C. Fleming, Linda J. Fleming, and Fleming Properties LLP for $1,670,000 for the use and benefit of the University of Georgia ("UGA").

The legal details involved with this purchase of property will be handled by the Office of the Attorney General.

Understandings: The property includes an approximately 2,500-square-foot, single-story, brick veneer, residential building, a frame barn, pasture, and wooded land and is located approximately eight miles from UGA's main campus.

The purchase of this property will allow UGA to relocate the College of Agricultural and Environmental Sciences' ("CAES") swine unit from South Milledge Avenue. The relocation of agricultural programs away from the campus academic core is addressed in the UGA Campus Master Plan and the CAES Land Use Master Plan.

Use of the house and barn will be retained by the seller for 12 months and 6 months, respectively.

Three independent appraisals of the property are as follows:

Appraiser	Appraised Value	Average
Dale W. Hayter, Jr., MAI, Gainesville	$1,510,000
David J. Dupree, Athens	$1,700,000	$1,670,000
James T. Boswell, MAI, Athens	$1,800,000

A Phase I Environmental Assessment has been completed and indicates no adverse environmental issues.

There are no known easements, restrictions, or reversions on the property.

Funding for the purchase is $1,400,000 from the CAES Land Sale Reserve account and $270,000 from internal Physical Plant operations funds. Operating expenses are anticipated to remain similar to those at the existing location.

4. Subrental Agreement, 1700 North Moore Street, Arlington, Virginia, Georgia Institute of Technology

Approved: The Board authorized the execution of a subrental agreement between the Georgia Tech Research Corporation ("GTRC"), Landlord, and the Board of Regents of the University System of Georgia, Tenant, covering 6,316 square feet of office space located at the Rosslyn Center, 1700 North Moore Street, Arlington, Virginia, for the period July 1, 2003, through June 30, 2004, at a monthly rent of $15,566.66 ($186,799.96 per year/$29.59 per square foot per year) with options to renew on a year-to-year basis for four consecutive one-year periods with rent increasing 3% per year for the use of Georgia Institute of Technology ("GIT").

Authorization to execute the subrental agreement was delegated to the Vice Chancellor for Facilities.

The terms of this subrental agreement are subject to review and legal approval of the Office of the Attorney General.

Understandings: GIT and Georgia Tech Research Institute ("GTRI") have occupied space in this location since September 1992 and provide specialized technical support and analysis to the Department of the Air Force in areas of systems acquisition, test and evaluation, resource planning, and combat training range development.

This subrental agreement is a renewal of a subrental agreement approved by the Board at its October, 1997 meeting.

GTRC leases the space from Rosslyn Center Associates, Ltd. Partnership.

The rent for the initial term of this agreement is a $909.75 per month rent reduction from the rent currently paid.

All operational costs, including insurance, utilities, maintenance, repairs, and janitorial costs, are included in the rental rate.

5. Ground Lease, Rental Agreement, and Demolition for Student Housing, Abraham Baldwin Agricultural College

Approved: The Board declared approximately 13.51 acres of land on the campus of Abraham Baldwin Agricultural College ("ABAC"), Tifton, Georgia, no longer advantageously useful to ABAC or other units of the University System of Georgia but only to the extent and for the purpose of allowing this tract of land to be leased to First ABAC, LLC (the "LLC") for the purpose of constructing and owning a housing facility containing 835 student housing beds, parking for 210 cars, a community activity building, and site amenities.

Modified: This item was modified as noted below in bold in italics.

The Board authorized the execution of a ground lease between the Board of Regents, Lessor, and the LLC, Lessee, for the above-referenced approximately 13.51 acres of land on the campus of ABAC for a period not to exceed 27 years (including up to 24 months for construction) with the option to renew for up to an additional five years for the purpose of constructing and owning a housing facility containing 835 student housing beds, parking for 210 cars, a community activity building, and site amenities.

The Board also authorized the execution of a rental agreement between the LLC, Landlord, and the Board of Regents, Tenant, for a housing facility containing 835 student housing beds, including parking for 210 cars, a community activity building, and site amenities for the period commencing on the first day of the first month after the LLC obtains a certificate of occupancy for facilities containing 835 beds and ending the following June 30 at a monthly rent of $246,288 ($2,955.46 per year) with options to renew on a year-to-year basis for up to 29 consecutive one-year periods with rent increasing 3% for each option period exercised.

Authorization to execute the rental agreement was delegated to the Vice Chancellor for Facilities.

The Board declared Branch, Chandler, Fullwood, and Mitchell Residence Halls at ABAC to be no longer advantageously useful to ABAC or other units of the University System of Georgia and authorize the demolition and removal of these buildings.

The Board requested that the Governor issue an Executive Order authorizing the demolition and removal of Branch, Chandler, Fulwood, and Mitchell Residence Halls from the campus of ABAC.

The demolition of these buildings is subject to satisfactory completion of environmental review prior to issuance of an Executive Order.

The Board granted to the LLC a site license for the demolition of Branch, Fullwood and Mitchell Residence Halls.

The terms of these agreements are subject to review and legal approval of the Office of the Attorney General.

Understandings: In October 1997, the Board passed a new student housing policy that requires the preparation of a comprehensive plan for student housing together with a financial plan to support housing program objectives. ABAC has developed a comprehensive plan that is consistent with the policy. ABAC presented a comprehensive student housing plan to the Committee on Real Estate and Facilities at its February 2002 meeting.

The ABAC housing plan is phased to accommodate the demolition of existing residence halls while maintaining current occupancy during the construction process. If approved by the Board, construction of facilities containing 200 student housing beds will be completed and ready for occupancy by January 2004. Until the facilities containing 200 beds of student housing are completed, Chandler Residence Hall will be rented out of the ground lease premises for a nominal sum. Upon obtaining a certificate of occupancy for the facilities containing the initial 200 beds of student housing, these facilities will be rented out of the ground leased premises for a nominal sum, and Chandler Residence Hall will be released for demolition. Facilities containing an additional 635 student housing beds will be completed and ready for occupancy by August 2004. Only after completion and occupancy of facilities containing 835 student housing beds will Branch, Fullwood, and Mitchell Residence Halls be released for demolition.

6. Ground Lease for Development of Tri-Property, Armstrong Atlantic State University

Withdrawn: This item was withdrawn prior to the Committee meeting.

The Vice Chancellor for Facilities, Linda M. Daniels, explained that staff concerns regarding the terms of the proposed ground lease were the reason the item had been withdrawn.

Vice Chair NeSmith directed the staff to continue negotiations with the developer for two more weeks. If favorable terms could not be reached within that timeframe, staff was to proceed to work with the institution to develop a new request for proposals.

7. Resolution, 2003 A, B, and C General Obligation Bond Issue, Georgia State Financing and Investment Commission, University System of Georgia

Approved: The Board adopted the Resolution prepared by the Revenue Division of the Department of Law covering the issuance of 2003 A, B, and C General Obligation Bonds ("G. O. Bonds") by the State of Georgia through the Georgia State Financing and Investment Commission for use in funding projects for the University System of Georgia.

The Revenue Division of the Office of the Attorney General has prepared on behalf of the Board of Regents a Resolution to cover the sale of 2003 A, B, and C G. O. Bonds for the following projects:

	Various Projects Georgia Research Alliance		$1,500,000
J-1	Restoration and Repair of Old Governor's Mansion Georgia College & State University		$4,000,000
	Special Research Equipment Traditional Industries Program		$ 900,000
		TOTAL	$6,400,000

The Revenue Division of the Office of the Attorney General has prepared on behalf of the Board of Regents a Resolution to cover the sale of 2003 B G. O. Bonds for the following projects:

I-66	Expansion of Interdisciplinary Research Center Medical College of Georgia		$ 5,200,000
	Food Processing and Technology Research Facility Georgia Institute of Technology		$ 425,000
J-27	Coverdell Building University of Georgia		$ 8,600,000
J-54	Major Repair and Renovations Projects Various University System Facilities		$25,000,000
	Various Projects Georgia Research Alliance		$11,000,000
C-85	Biocontainment Research Center University of Georgia		$15,000,000
		TOTAL	$65,225,000

The Revenue Division of the Office of the Attorney General has prepared on behalf of the Board of Regents a Resolution to cover the sale of 2003 C G. O. Bonds for the following projects:

Digital Conversion of Towers and Transmitters Georgia Public Telecommunications Commission		$32,120,000
	TOTAL	$32,120,000

8. Approval of Major Repair and Renovation Funds

Approved: The Board authorized distribution of major repair and renovation ("MRR") funds in accordance with staff recommendations.

Understandings: The $25 million MRR bond funds are proposed in the fiscal year 2003 amended budget and are anticipated to be available sometime in late July.

It is anticipated that an additional $20 million in MRR funds included in the fiscal year 2004 budget will be available in a later bond sale.

The University System Office facilities staff reviewed proposed projects from each institution for priority, quality, and cost. Their recommendations generally follow institutional priorities; however, all must meet the test of quality and cost. Guidelines are used to screen institution-requested projects for MRR funding.

MRR funds are not used for new construction or land acquisition. Only when there are bona fide critical conditions in an auxiliary facility, such as a dormitory or dining hall, and the campus's own auxiliary reserves will not cover the need will auxiliary projects be considered for MRR funding.

Campuses are expected to perform adequate annual maintenance. MRR funding is intended to cover non-routine larger expenditure items. It is intended to be used for building system and building integrity purposes before other uses; for example, roofs and mechanical/electrical systems take priority over programmatic renovations. MRR priorities are focused on building envelopes, systems, and utility infrastructure to reduce building outages due to failures.

9. Executive Session, Property Acquisition

This item was withdrawn from the agenda.

10. Information Item: Office of Information and Instructional Technology Facility Update

The Vice Chancellor for Facilities, Linda M. Daniels, presented to the Committee two revised proposals for facilities to house the Office of Information and Instructional Technology ("OIIT") in Athens. The Committee had requested that the developers improve the quality of the proposed facilities and to develop a more detailed specification of building envelope, structure, and systems requirements. Ms. Daniels reported that both developers were very professional and responsive in meeting these requirements. She presented the Regents with comparable information on both developers' initial and revised proposals, reviewed a comparative analysis of 20-year rent costs of both proposals, and compared summary information of key details.

Regent Leebern expressed concern and frustration that the Regents had not received the detailed information on this item in advance of the meeting. He directed the staff to provide the details to all of the Committee members.

The Committee asked the staff to continue working with the developers to ensure receipt of their best and final offers in time for action at the June 2003 Board meeting.

11. Information Item: Privatized Student Housing Plan, Valdosta State University

President Ronald M. Zaccari of Valdosta State University ("VSU") stated that housing has emerged as the number one planning priority in VSU's strategic planning process. VSU's oldest residence hall was built in 1936; the newest was built in 1969. The halls, with one exception, are traditional in nature, and many have original furniture. Despite the ages and conditions of these residence halls, VSU had a waiting list of 400 in fall 2002. Approximately 28% of currently enrolled students have expressed interest in living on campus, but only 17% can be housed. The long-standing freshmen residency requirement had to be dropped temporarily because the institution could not meet freshmen demand. A recent comprehensive housing plan developed by MGT of America, Inc. shows that current students prefer and are willing to pay for private or semi-private baths and apartment-style living. Therefore, VSU proposes the creation over the next ten years of a diverse mix of on-campus housing options to include renovated, traditional style halls and new construction offering more private living arrangements. This will increase the percentage of students housed from 17% to approximately 25% and thereby better support VSU's mission as a regional residential university. Whereas VSU currently has 94% traditional residence halls and 6% apartments, by 2010, the mix would be approximately 51% traditional residence halls, 29% suites, and 20% apartments. Moreover, this combination of renovation and new construction will allow for the creation of a "freshmen corridor" in the center of campus and honors residences, which will increase student retention. The proposed plan will be carried out in three phases; each phase will include the renovation of an existing hall at the same time a new hall is being constructed. VSU's housing plan will increase capacity from 1,798 to approximately 3,100 beds, schedule a steady increase in beds, yield positive cash flow throughout the life of the project, support academic success and personal growth, be congruent with and complementary to the overall mission and strategic plan, and provide broad and far-reaching vision for student housing.

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COMMITTEE ON EDUCATION, RESEARCH, AND EXTENSION

The Committee on Education, Research, and Extension met on Tuesday, May 20, 2003, at approximately 2:00 p.m. in room 6041, the Training Room. Committee members in attendance were Chair William H. Cleveland, Vice Chair Allene H. Magill, and Regents Hugh A. Carter, Jr., Hilton H. Howell, Jr., Elridge W. McMillan, and Wanda Yancey Rodwell. Board Chair Joe Frank Harris was also in attendance. Chair Cleveland reported to the Board that the Committee had reviewed nine items, seven of which required action. Additionally, 357 regular faculty appointments were reviewed and recommended for approval. With motion properly made, seconded, and unanimously adopted, the Board approved and authorized the following:

1. Establishment of the Associate of Applied Science in Medical Office Technology, Bainbridge College

Approved: The Board approved the request of President Clifford M. Brock that Bainbridge College be authorized to establish the Associate of Applied Science in Medical Office Technology, effective May 21, 2003.

Abstract: The purpose of the Medical Office Technology program is provide students with the necessary skills for the preparation of records, medical reports, and billing and coding insurance forms used in hospitals, laboratories, clinics, and doctors' offices. Upon completion of this program, students will receive the Associate of Applied Science degree.

Need: Local hospitals and doctors' offices in the service area have indicated a need for this program. Specifically, institutions such as Memorial Hospital have indicated that a need for such employees has existed since 1998. Employees who can use the International Classifications of Diseases (ICD-9-M) and Health Care Common Financing Procedure Coding Systems (CPT-4) are highly specialized and vital to the operation of hospitals, clinics, and doctors' offices.

Objectives: The objective of the 65-semester-hour program is to provide students with the competencies and skills necessary for employment at hospitals and medical offices in positions that require knowledge of the health care industry. Students will gain training and skills needed to perform and coordinate activities unique to medical office clerical staff.

Curriculum: The curriculum will include such courses as Medical Office Procedures, Medical Coding, Billing and Insurance, Principles of Bookkeeping, Medical Transcription, and Human Relations.

Projected Enrollment: The institution anticipates enrollments of 24, 30, and 40 during the first three years of the program.

Funding: The institution will use existing resources to implement the program. The program will build on and reconfigure existing courses that are currently offered by the institution in addition to establishing new courses.

Assessment: The Office of Academic Affairs will work with the institution to measure the success and continued effectiveness of the program. The program will be reviewed in concert with the institution's programmatic schedule of comprehensive program reviews.

2. Administrative and Academic Appointments and Personnel Actions, Various System Institutions

Approved: The administrative and academic appointments were reviewed by the Chair of the Committee on Education, Research, and Extension and approved by the Board. The full list of approved appointments is on file with the Office of Faculty Affairs in the Office of Academics and Fiscal Affairs.

3. Establishment of the Existing Associate of Science in Nursing as an External Degree at East Georgia College, Middle Georgia College

Approved: The Board approved the request of President Richard J. Federinko that Middle Georgia College ("MGC") be authorized to offer the Associate of Science in Nursing to enhance the Licensed Practical Nurse to Registered Nurse bridge program as an external degree on the campus of East Georgia College ("EGC"), effective May 21, 2003.

Abstract: MGC sought approval to offer its Associate of Science ("A.S.") in Nursing program as a means to enhance the Licensed Practical Nurse ("LPN") to Registered Nurse ("RN") Bridge program ("LPN to RN") in cooperation with EGC, which would serve as the host institution. The A.S. program consists of general education courses taught by EGC and nursing courses taught by MGC faculties. The institutions have developed a cooperative agreement that acknowledges MGC as the degree-granting institution. It is anticipated that the A.S. in Nursing will aid in addressing the shortage of RNs in this section of the state.

The institutions anticipate an initial class of 20 students who will graduate at the end of spring semester 2004. The two institutions will utilize existing resources in addition to funding supplied by area hospitals to implement the program. The Offices of Academic Affairs at MGC and EGC will monitor the success and continued effectiveness of the LPN to RN and A.S. degree programs. The programs will be reviewed in concert with the two institutions' programmatic schedule of comprehensive program reviews.

4. Reorganization of Institutional Units, Middle Georgia College

Approved: The Board approved the request of President Richard J. Federinko that Middle Georgia College ("MGC") be authorized to reorganize institutional units, effective May 21, 2003.

Abstract: MGC was seeking to reorganize in order to increase efficiency and effectiveness. The reorganization is principally for the Academic Affairs Division; however, minor adjustments have been requested for all organizational areas. It is projected that the net impact of the reorganization will be as follows:

Administrative Reorganization
Student Development
The current director of community and alumni relations will assume additional duties as director of student activities for the Dublin Center effective July 1, 2003. The current director of student activities will resign effective June 30, 2003.

Academic Affairs
The divisions are to be realigned with the removal of one division chair. An interim division chair will be appointed effective July 1, 2003.

Division of the President
The college is in the process of employing a new assistant to the president for planning as the position of director of institutional research is being eliminated. The assistant to the president for planning will handle the research functions.

Division of Academic Affairs

The Division of Social Sciences, Education, and Business will be downsized to the Division of History and Political Science and its other departments divided among other academic divisions. The interim director of the Dublin Center will assume additional duties as interim chair of the Division of History and Political Science.
The Department of Health and Physical Education (currently housed in the Division of Social Sciences, Education, and Business) will be combined with the Division of Health Sciences to form the Division of Health Sciences and Physical Education.
The Department of Business (currently housed in the Division of Social Sciences, Education, and Business) will be combined with the Division of Natural Sciences and Mathematics to form the Division of Natural Sciences, Mathematics, and Business.
The Education, Psychology, and Sociology Department will be combined with the Division of Learning Support to form the Division of Learning Support, Education, Psychology, and Sociology.
The director of institutional research position will be eliminated and the assistant to the president for planning will assume those functions. The institutional research analyst in that office will be transferred to the assistant to the president for planning.
There will be an overall reduction in personnel in one division chair, one director of institutional research, and five faculty members due to transfers, retirements, resignations, and contract nonrenewals.

The implementation of these changes enables MGC to operate more efficiently and effectively within a collegial atmosphere, while continuing to meet student needs. The reorganization of academic units has been designed to protect instructional priorities within the current budget, reduce administrative costs, and maintain the quality of instructional services. The goal is to increase efficiency while reducing costs.

5. Establishment of the Departmental Structure for the College of Information Technology, Georgia Southern University

Approved: The Board approved the request of President Bruce F. Grube that Georgia Southern University ("GSOU") be authorized to establish departments within the College of Information Technology, effective May 21, 2003.

Abstract: Since the Board's approval of the College of Information Technology on August 7, 2002, GSOU has continued planning the structure of the new college and its transition from the School of Information Technology. The following departmental structure is requested for the College of Information Technology: Department of Computer Sciences, Department of Information Systems, and Department of Information Technology.

The Department of Computer Sciences will consist of faculty who move from the current Department of Mathematics and Computer Science in the Allen E. Paulson College of Science and Technology. The Department of Computer Sciences will continue to administer the major in computer science under the Bachelor of Science degree and the emphasis in Computer Science within the major in Mathematics under the Master of Science degree.

The Department of Information Systems will be composed of faculty moving from the current Department of Information Systems and Logistics in the College of Business Administration. The Department of Information Systems will contribute courses for the Master of Business Administration and will administer the major in Information Systems under the Bachelor of Business Administration degree.

The Department of Information Technology contains faculty currently assigned to the School of Information Technology, which has operated as a departmental unit within the College of Business Administration since its creation in March 2001. With the participation of faculty in the other disciplines of the new college, the department will continue to administer the Bachelor of Science in Information Technology.

Developed as a response to state leaders' desire for an anchor to a future high-tech corridor in Southeast Georgia, the College of Information Technology is funded through dollars currently dedicated to the existing School of Technology, special initiative funding from the General Assembly, and funds redirected from units from which faculty will move to the new college on
July 1, 2003.

6. Establishment of the Executive Master of Business Administration, University of Georgia

Approved: The Board approved the request of President Michael F. Adams that the University of Georgia ("UGA") be authorized to formally establish the Executive Master of Business Administration offered in Atlanta, Georgia, effective May 21, 2003.

Abstract: UGA's Terry College of Business has been offering courses leading to an Executive Master of Business Administration at the UGA Alumni Club and Business Center in Buckhead since fall 2001. Authorization to offer the degree should have been requested prior to the initiation of the program. President Adams requests retroactive approval for the degree program.

Based on the Terry College of Business strategic plan, the Executive Master of Business Administration program signals the commitment of the college to provide lifelong learning opportunities for the business community and to promote close relationships between the college and its corporate constituents. The strong connections established with organizations participating in the program result in significant benefits to the college, including expanding the pool of guest speakers for classes and field study projects for students, more and better applied research and consulting opportunities for faculty, and the availability of internships for students. Teaching effectiveness is impacted because instructors leverage the collective experience of an executive audience demanding greater validity, applicability, and interaction.

The Executive Master of Business Administration targets working professionals from metropolitan Atlanta and other regions of Georgia. Participants reside within 25 miles of the Atlanta financial center. The themes adopted for the program are leadership, strategic risk management, and Internet strategies. All themes require a structural foundation of the business enterprise, which is addressed in analytical and functional coursework. The program is partitioned into ten modules over an 18-month period. Weekend and weekday classes are offered for a total of 12 to 16 contact hours per week/weekend.

7. Termination of Majors Under the Master of Education Degree, University of Georgia

Approved: The Board approved the request of President Michael F. Adams that the University of Georgia ("UGA") be authorized to terminate specific majors under the Master of Education degree, effective May 21, 2003.

Abstract: UGA's College of Education requested approval to terminate the following majors under the Master of Education degree: Agricultural Education, Business Education, Family and Consumer Sciences Education, Marketing Education, and Technological Studies.

The Department of Occupational Studies, located within the College of Education, was reconstituted from six separate departments in 1994 (Departments of Agricultural Education, Business Education, Family and Consumer Sciences Education, Marketing Education, Trade and Industrial Education, and Vocational Education). Prior to this re-formation, each department was responsible for the preparation and graduate studies of students for their specific certification area with each offering specific courses for their majors. The department's course offerings since the re-formation now address comprehensive, broad-based curricula that focus on workforce preparedness, integration of research on workplace issues, integrating technology and basic skill applications into courses, and increased efforts to prepare educators to work with different populations. Upon review of the department's course offerings and mission, the faculty voted to terminate the discipline-specific Master of Education degree programs and offer only the Master of Education degree with a major in Occupational Studies.

8. Information Item: Service Agreements

Pursuant to authority granted by the Board at its meeting on February 7 and 8, 1984, the presidents of the listed institutions have executed service agreements with the indicated agencies for the purposes and periods designated, with the institutions to receive payment as indicated:

University of Georgia Agency and Description	Duration	Amount
Georgia Commodity Commission for Corn Support Extension Corn Improvement team and investigate solutions to production problems for Georgia's corn growers	7/01/02 - 6/30/03	$37,050
Georgia Commodity Commission for Corn Determine competitiveness of atoxigenic strain in different soil types to maintain quality crop in dryland environments	7/01/02 - 6/30/03	$11,000
Georgia Commodity Commission for Corn Support travel to county extension grower meetings, field days, demonstration projects, and field demonstrations	7/01/02 - 6/30/03	$7,000
Georgia Department of Agriculture Support research for urban pest control pursuant to rule 620-3-01(2) of the Georgia Structural Pest Control Act	11/15/91 - unspecified	$90,000
Georgia Department of Human Resources Provide ongoing assistance and coordination of practice and didactic experiences in the Dietetic Internship Program of the Nutrition Section	2/01/03 - 1/31/04	$29,550
Georgia Department of Natural Resources Provide support services for the administration of the Natural History Preservation Program	7/01/02 - 6/30/03	$42,000
Georgia Department of Natural Resources Develop programs and activities on radon awareness, testing, mitigation, and prevention	12/01/02 - 11/30/03	$107,000
Georgia Department of Technical and Adult Education Provide applied research and program performance measurement services to analyze quality of training programs	3/01/03 - 1/31/04	$186,359
Georgia Department of Transportation Perform detailed updates and annotations to the graphic information system-based state road map	2/05/03 - 12/05/03	$247,805
Georgia Environmental Facilities Authority Establish a Georgia Industries of the Future team to focus on nine industrial sectors as high priority	10/01/02 - 9/30/03	$185,000
North Georgia Technical Institute Provide instructor to teach aqua-culture workshops and lead four tours	1/15/03 - 5/31/03	$15,000
Northern District of Georgia Standing Chapter 13 Trustee Provide personal finance education to new Chapter 13 filers on a voluntary basis via a face-to-face workshop	7/15/02 - 9/30/03	$10,167
Georgia State University
Georgia Cancer Coalition Develop a Distinguished Cancer Clinicians and Scientists program to foster advancements in knowledge and treatment of cancer	10/01/02 - 6/30/03	$350,000
Georgia Department of Education Evaluate effectiveness of charter schools in Georgia	8/30/02 - 11/26/03	$47,034
Georgia Department of Education Develop competency-based curriculum and performance assessment standards for education programs in public safety	11/01/02 - 6/30/03	$47,786
Georgia Research Alliance Perform molecular haplotyping of genomic DNA	12/01/02 - 11/30/03	$25,000
Georgia Department of Corrections Conduct process and outcome evaluation of Atlanta Day Reporting Center, Phase 2	9/01/02 - 8/31/03	$45,165
Georgia Board of Education Coordinate geographic education program of Georgia Geographic Alliance and conduct research in geography education	7/01/02 - 6/30/03	$46,075
Georgia Professional Standards Commission Develop assessment for instructional professionals pursuant to federal requirements	5/02/02 - 6/30/02	$104,199
Georgia Southern University
Ware County Board of Health Provide education services for Tobacco Use Prevention Program	7/01/02 - 12/31/03	$7,150
Floyd College
Floyd and Bartow County Governments Provide leadership training for employees of Floyd County government during month of March	03/5-27/03	$1,800

Total Amount

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Meeting Minutes - May 2003