Meeting Minutes - April 2006
Minutes of the Meeting of the Board of Regents of the University
System of Georgia
Held at 270 Washington St., S.W.
Atlanta, Georgia
April 18 and 19, 2006
CALL TO ORDER
The Board of Regents of the University System of Georgia met on Tuesday, April 18, and Wednesday, April 19, 2006, in the Board Room, room 7007, 270 Washington St., S.W., seventh floor. The Chair of the Board, Regent J. Timothy Shelnut, called the meeting to order at 1:00 p.m. on Tuesday, April 18. Present on Tuesday, in addition to Chair Shelnut, were Vice Chair Patrick S. Pittard and Regents Hugh A. Carter, Jr., William H. Cleveland, Robert F. Hatcher, Julie Ewing Hunt, Felton Jenkins, W. Mansfield Jennings, Jr., James R. Jolly, Donald M. Leebern, Jr., Elridge W. McMillan, Doreen Stiles Poitevint, Willis J. Potts, Jr., Wanda Yancey Rodwell, Benjamin J. Tarbutton III, Richard L. Tucker, and Allan Vigil.
Chair Shelnut welcomed Regent Potts and extended the Regents' condolences on the loss of his mother.
The Director of Administration and Compliance Policy, Mark Demyanek, gave the Regents and audience a briefing of basic safety information in the event of an emergency.
CHANCELLOR'S REMARKS
Chancellor Davis also welcomed Regent Potts. He noted that the Board had a very full agenda for this meeting. He said that he appreciates the Regents' focus on the key policy issues underlying the staff recommendations on budget allocations, tuition, and fees and noted that more would be said regarding those recommendations shortly. He also noted that with these recommendations, the System is moving in a new direction on allocations to better align allocations to the System's strategic priorities. The tuition recommendation would hopefully respond to parents' needs to have some certainty about tuition as well as the Board's need to get people through their programs and better utilize facilities.
The second area toward which the Chancellor asked the Regents to direct their attention was the focus and tone of the meetings. He said that the staff are working to be responsive to the Regents' comments and needs regarding the meetings and to structure these meetings to focus less on operations and more on key policy issues driving the agenda. The Regents' continued feedback to the staff on how well they are achieving these aims is very important. In closing, the Chancellor turned the meeting back over to Chair Shelnut.
ATTENDANCE REPORT
The attendance report was read on Tuesday, April 18, 2006, by Secretary Gail S. Weber, who announced that Regent Michael J. Coles had asked for and been given permission to be absent on that day.
APPROVAL OF MINUTES
Motion properly made and duly seconded, the minutes of the Board of Regents meeting held on March 7 and 8, 2006, were unanimously approved as distributed.
At approximately 1:05 p.m., Chair Shelnut adjourned the Regents into their regular Committee meetings.
SALUTE TO THE GENERAL ASSEMBLY
Following the Committee meetings, at approximately 2:05 p.m., Chair Shelnut reconvened the full Board meeting. As Chair of the Board of Regents and on behalf of the entire Board, he offered the Regents' sincere thanks and appreciation to the members of the General Assembly. Their partnership, support, and understanding of the role of public higher education in the lives of so many people truly strengthen the efforts of the University System of Georgia. He thanked the legislators for their support of the System's budget needs, its capital priorities, and some key legislation approved during the recent session. He thanked the legislature on behalf of everyone in the University System of Georgia.
Chair Shelnut acknowledged the significant investment of the legislators' personal time in serving the people of Georgia. Serving as a representative or as a senator is a demanding and often difficult job. Legislators are pulled in many different directions by many different people. There are more priorities than resources available to fully meet every need. He said that at times, the Regents have done some of the pulling, but they truly appreciate how the legislators respond and how they remain focused on balancing how to best meet the state's priorities. He said that the Regents appreciate the presence during this two-day meeting of several members of the General Assembly, including Senator Seth Harp, of Midland, who provided leadership for the policy committee as chair of the Senate Higher Education Committee. He also served as vice chair of the Senate Appropriations Subcommittee on Higher Education. Senator Harp was a strong champion on both legislative and budgetary priorities for the System. His policy committee had several full and comprehensive meetings, and he always made it possible for the Regents to express their opinions. Senator Harp has played a key role in the University System's growth and prosperity.
Representative Bill Hembree of Douglasville served as chair of the House Higher Education Committee. Representative Hembree also was a member of our House Appropriations Subcommittee. He helped the Board of Regents with every piece of legislation affecting the University System of Georgia, as well as with a number of budget issues. Representative Hembree gave the Regents every opportunity to benefit and participate in committee meetings. Chair Shelnut asked the Regents to join him in saluting these great public servants.
Representative Hembree thanked Chair Shelnut, the Regents, and Chancellor Davis. He said it is an honor to be a Representative, and he has served for 12 legislative sessions. It is truly an honor to be the chair of the House Higher Education Committee, he said, because the State of Georgia has the best university system in the nation. It is easy to deliver the message of the University System of Georgia because the legislature is truly supportive of the System. The General Assembly appreciates the work of the Board of Regents, as is demonstrated in the state budget, including 4% salary increases for System employees, $310 million in bonds for facilities, and carry-forward legislation. It is also evidenced by the establishment of the Georgia Higher Education Facilities Authority, which will help build needed facilities for System institutions. On behalf of the General Assembly, he thanked the Regents for their hard work.
COMMITTEE ON FINANCE AND BUSINESS OPERATIONS, "COMMITTEE OF THE WHOLE"
Chair Shelnut 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 Jennings, the Chair of the Committee. He noted that within the budget presentation, there would be a walk-on item regarding the fiscal year 2007 salary and wage administration policy and that adding this item to the agenda of the Committee of the Whole would require unanimous consent.
Chair Jennings thanked the Regents for contributing their time and effort in supporting the budget recommendations and working with the legislators during the budget process. He had reviewed all of the allocation process and principles with the Chancellor and senior staff, as well as the tuition and mandatory fee recommendations. At this meeting, the Committee of the Whole would consider the following action items: the fiscal year 2007 budget allocations, tuition, and mandatory student fees. (See pages 25 to 37.) He called upon the Chancellor to begin the budget presentation.
Chancellor Davis said that April is the season for dogwoods in the State of Georgia, but it is also the season for budgets and tuition in the University System of Georgia. In August, the budget process is "planted" with the Board's approval of the System's request to the Governor, and this month, that process comes into full bloom. At this meeting, the staff would recommend that the Board act on a budget that reflects the actions of the Governor and the General Assembly on the Board's initial budget request.
The Chancellor reported that thanks to the support of the General Assembly, the Board of Regents has $120 million extra for fiscal year 2007 as part of a record state appropriation to the University System of Georgia. This Board has a very tight list of key responsibilities, and setting policy and using that policy to drive budget decisions rank at the top of that list. So, with the Board's actions at this meeting, the Regents will be using the budget to help implement some directional changes in policy. Chancellor Davis said that he feels very strongly that budgets should in fact be policy-implementing documents. So, he would try to point out in the course of explaining the budget where the Board's policy focus has translated into budget allocations.
There are three differences in this budget, explained the Chancellor. First of all, the budget is driven by strategies. The strategy is to base budget allocations on Systemwide priorities and compelling needs of the Board of Regents in key policy areas. He said that the point is "to move the needle." That is, the Board must allocate System resources in ways that are the most effective and provide the best opportunity to achieve important policy goals and effect changes that advance those goals. He pointed out a few key ways in which the Board will move the needle by allocating dollars to key areas. The Board will provide funding to increase the numbers of nurses graduating from System institutions to address the statewide shortage of nurses while, at the same time, providing funding to increase the number of nursing instructors. The Board will provide funding to increase graduation and retention rates at institutions where the System can achieve the most significant results. The Board will also provide funding to increase the efficiency of the System's back-office operations. Chancellor Davis said that he expects to see more emphasis on this area in future budgets.
The second change in the budget is that the System will follow the dollars allocated and track them separately to ensure that funds are being used as the Board intends. That means tracking the dollars to ensure that they produce the appropriate outcomes of priority programs. Strategic allocations are investments, and when the Regents make investments, they expect returns on those investments. In cases where the investments are not producing returns, the Board will remove those dollars and invest them elsewhere.
The third area of change in the fiscal year 2007 budget is tuition. One thing that will not change is this Board's long-standing commitment to ensure access by maintaining affordable tuition, but what will change is the way the Board achieves this. The Board intends to use tuition to provide access, but also to encourage students to move through the System more quickly. These are two key policy goals of this Board. The Regents' new tuition policy will demonstrate a high level of customer service in that students and parents will be able to sit around the kitchen table and plan the financial costs of college with greater confidence and certainty. This new policy will also benefit the state as the System more fully utilizes its assets and provides an improved return on the state's investment. Chancellor Davis said that the staff's focus on tuition is not something new. The staff have been working on tuition policies for over two years. In the summer of 2004, the staff published a Systemwide tuition study listing a number of tuition options, which was circulated throughout the System and the State of Georgia. In December 2004, these options were presented to the Governor. In November 2005, Interim Chancellor Corlis Cummings met with Governor Purdue to discuss a multi-year predictable tuition model. The Governor challenged the University System of Georgia to keep tuition affordable while bringing some certainty to the process based upon some materials provided to him that were developed in 2004. In 2005, the University System Office provided to the Governor's Office of Planning and Budget ("OPB") research on what other states are doing in terms of guaranteed tuition. Chancellor Davis said that the proposal on tuition would fulfill his goal of using tuition as a revenue source of last resort. He then called upon the Assistant Vice Chancellor for Fiscal Affairs, Usha Ramachandran, to begin the budget presentation.
Ms. Ramachandran reported that the University System of Georgia received $1.93 billion in state allocations for fiscal year 2007. She noted this is the highest allocation in the history of the System. It represents, an increase of $120 million, or 6.6%, over the fiscal year 2006 budget of $1.81 billion. Formula funds make up the largest part of the base budgets of all System institutions. Included in the $120 million were formula funds of $98.6 million. She noted that the formula funds include a 4% salary increase and a land grant match for Fort Valley State University ("FVSU"). Special funding initiatives include $1 million in funding for Georgia Gwinnett College ("GGC"), $1.5 million for the Georgia Leadership Institute for School Improvement, and $1 million for the Medical College of Georgia ("MCG") and the University of Georgia ("UGA"), including $500,000 for the UGA programs at Griffin and $500,000 for the bio-business incubator at MCG. There are also line items, such as seed capital funding of $5 million for the Advanced Technology Development Center ("ATDC") at the Georgia Institute of Technology ("GIT") and funding for the Georgia Research Alliance ("GRA") and the Georgia Public Library Service ("GPLS"). Ms. Ramachandran noted that when money is appropriated by the Governor and the General Assembly for a specific purpose or entity, it must be allocated to that purpose or entity. So, of the $120 million budget increase, only $31.4 million is "flexible" for the Board to determine who gets how much and for what.
Ms. Ramachandran reiterated the Chancellor's remark that the budget is a policy-implementing document. If money is a means to an ends, she said, the Board can make a difference by investing in strategic Board priorities. That is, the Board can "move the needle." In fiscal year 2007, there are several policy objectives: to provide a quality education to students by allocating funds for faculty and operations to meet enrollment growth; to enhance retention, progression, and graduation ("RPG") rates through targeted investments; to respond to the state's growing shortage of nurses; to increase efficiency and productivity; and to invest in opportunities that increase access and services to students. So, of the $31.4 million, $24 million will be invested in the quality education/enrollment objective, $2.2 million for the RPG initiative, $2.3 million for nursing, $1.5 million to increase efficiencies, $500,000 to enhance access, and $900,000 for other initiatives.
With regard to the first policy objective, quality education, the strategy is to provide to institutions a minimum 60% of funds generated by enrollment increases. At the same time, there are cost differences among the sectors. In other words, research universities usually cost more to operate than four-year institutions. So, the allocation strategy makes adjustments for those differences accordingly. When the $24 million is allocated to the institutions, it will be directed toward the hiring of approximately 250 new faculty to add course sections for student enrollment growth. It will also be directed to support services for students. Both of these will improve the quality of education for students.
The second policy objective is to enhance RPG rates. In order to maximize the return on investment in this regard, the allocation will be focused on five institutions that have the most opportunity and enrollment for improvement: Georgia State University ("GSU"), Georgia Southern University ("GSOU"), Kennesaw State University ("KSU"), University of West Georgia ("UWG"), and Valdosta State University ("VSU"). The allocation will be focused on such strategies as faculty advising, supplemental instruction for courses with high failure and withdrawal rates, and the expansion of freshman learning communities and sophomore connection programs. There must also be a change in the culture of the institutions that places an importance on the success of every student. Finally, consideration will be given to "price signals" to change student behavior.
The third policy objective is to respond to the state's growing shortage of nurses, reiterated Ms. Ramachandran. In this regard, the staff have developed a three-pronged strategy. The first approach is to increase the number of nurses. The second approach is to look at the number of nurse educators. The third approach is to consider alternate strategies for clinical experiences. To this end, the System will increase the number of students in associate level nursing programs with $1.73 million and in the accelerated bachelor's programs with $1.74 million. Another $887,000 will be focused on nurse educators programs, which includes two programs. The first is MCG's Doctorate of Nursing Practice, and the second is the statewide online doctoral program, which is provided by a consortium of five institutions and is led by GSU. Another $581,000 will be allocated to simulators to provide an alternate way for students to get clinical experience. Up to 25% of a nursing student's clinical experience can be met by using a simulator, or a dummy. Albany State University and Valdosta State University will be getting these simulators to enhance their nursing programs. This investment will enable the System to accommodate and additional 410 new nursing students in fiscal year 2007.
The fourth policy objective is to increase efficiency and productivity. Ms. Ramachandran said that the strategy is this regard is to do things in a way that is secure, reduces costs, and is efficient. In 2006, the Office of Information and Instructional Technology ("OIIT") hosted the student information systems for six System institutions. For 2007, the plan is to expand this by another five institutions. The second strategy is to implement self-service human resources ("HR") applications, which includes two parts. One part of this is an e-pay function that puts the payroll process entirely online. The other part of this is an e-profile function in which a person's HR information is updated entirely online. Both of these functions eliminate unnecessary HR paperwork and reduce the cost of transactions. The third strategy is to expand the data warehouse, which is simply a repository of data. All 35 institutions would send data to a centralized repository. It would make information more accessible in a very fast and efficient way. This initiative will expand the functionality of the data warehouse and add facilities information to the date warehouse.
The fifth and final policy objective is to invest in opportunities that increase access to students. In fall 2006, Georgia Gwinnett College ("GGC") will open with 250 juniors. This objective will provide funds for faculty in various disciplines as well as start-up operations for the new institution. Funds are also dedicated to innovative best practices to maximize efficiencies.
Next, Ms. Ramachandran turned to the capital budget. She reported that the System received a total of $310 in bond funding altogether, $240 million in the fiscal year 1007 budget and $70 million in the fiscal year 2006 amended budget. The $310 million includes $60 million in major repair and renovation ("MRR") funds, $89.3 million for 4 major capital outlay projects, $87.1 million for 10 minors projects, $11.6 million for GPLS projects, $38 million for the nanotechnology project, and $24 million for GRA projects. In closing, Ms. Ramachandran turned the floor over to the Vice Chancellor for Fiscal Affairs, William R. Bowes.
Mr. Bowes first discussed fiscal year 2007 tuition for current and continuing students. He showed a chart depicting the current tuition rates at each of the System sectors. At research universities, the current full-time rate of tuition per semester is $1,819; at regional and state universities, it is $1,219; and at two-year colleges, it is $771. For current and continuing students, the staff were recommending the following tuition increases: 5% for research universities ($1,910), 4% for regional and state universities ($1,268), and 3% for two-year colleges ($794).
Next, Mr. Bowes discussed the tuition strategy for entering freshmen in fiscal year 2007. He said that for new students, the staff were proposing a "guaranteed tuition plan" ("GTP"). That is, entering students would pay a tuition rate that is guaranteed to remain fixed for a specified time period – four years at four-year institutions and three years at two-year institutions. For entering in-state freshman in fiscal year 2007, the following fixed tuition rates would be effective: $1,946 at research universities and $1,280 at regional and state universities through 2010 and $802 at two-year colleges through fiscal year 2009. He noted that there are a number of policy objectives associated with this strategy. First, the strategy aims to encourage students to graduate within four years from a four-year institution or within three years at a two-year institution. Moving students through the System faster will improve utilization of capital assets and return on investment. It will also provide parents and students predictability of tuition for three to four years. This policy will apply to all in-state and out-of-state students, though out-of-state rates will be four times the in-state rates. However, this policy will not apply to graduate students or students in online programs. It will also not include mandatory fees or expenses for room and board. Mr. Bowes said there are many details that still need to be fine-tuned in terms of how this policy will apply in special cases, such as students who drop out and want to come back, students who transfer from a two-year to a four-year institution, students at state colleges, etc. The Chancellor is appointing an advisory committee of representatives from all of the institutions who will be working with the Office of Fiscal Affairs to develop some recommendations regarding those special cases, and the staff will return to the Board for approval of those recommendations. Mr. Bowes added that because this tuition policy aims to improve graduation rates, this rate must also apply to students in special programs that are necessarily longer than average programs, such as architecture programs.
Mr. Bowes next discussed fiscal year 2007 mandatory student fees, which are based upon cost increases for institutions based upon their assumptions about increases in personal service costs, energy costs, expansion of services, new programs, and facilities fees for privatized projects. He noted that Board policy requires student participation in the institutional fee request process. The staff require documentation from the institutions to prove that they have included students in the process. They also look at balancing institutional requests with the total cost of attendance at each institution. This year, most of the fees were related to facilities fees. There were also a number of technology fees, most of which have not been increased in many years. Mr. Bowes asked whether the Regents had any questions or comments about the proposed agenda items.
Chair Jennings asked whether there were any question on Item 1, Fiscal Year 2007 Budget Allocations.
Regent Rodwell asked a question about tuition rates. She asked whether tuition rates will remain fixed for four years for current students as well.
Mr. Bowes replied that the tuition rates for currents students will continue to increase as a normal tuition rate based upon the budget formula, which generally averages approximately 4% to 5%. Tuition rates will increase for current students until they graduate or terminate their enrollments.
Chancellor Davis added that it will be three to four years before all students are on a fixed tuition rate, assuming adoption and continuation of the fixed tuition rate plan.
Regent Shelnut said that he was excited to see the tuition plan encouraging students to graduate in four years. He asked whether institutions would be modifying their advisement strategies accordingly.
Mr. Bowes responded that the final GTP would include such recommendations. He said there are a number of details yet to be worked out and that the advisory committee will help develop these recommendations.
The Chancellor said that the staff would return to the Board with the GTP and recommendations to address the finer policy details. The advisory committee will also help determine the "price signal" to send in the fifth year in terms of tuition costs for students who do not graduate in four years. He said the only decision at this point is that tuition is guaranteed for four years, and therefore, the fifth year is going to cost more than the fourth year. How much more is yet to be determined by the work of the advisory committee, and the staff will return to the Board with such recommendations at a later date. The action at this meeting will approve the GTP in concept so that it can be included in the institutions' catalogs and communicated to parents and students.
Seeing that there were no further questions or comments, Chair Jennings called for a motion to approve Item 1 of the Committee agenda. Motion properly made, seconded, and unanimously adopted, the Committee approved the fiscal year 2007 budget allocations. (See pages 25 to 32.)
Next, Chair Jennings called for a motion to approve Item 2 of the Committee agenda. Motion properly made, seconded, and unanimously adopted, the Committee approved the fiscal year 2007 tuition. (See pages 32 to 34.)
Then, Chair Jennings called for a motion to approve Item 3 of the Committee agenda. Motion properly made, seconded, and unanimously adopted, the Committee approved the fiscal year 2007 mandatory student fees. (See pages 34 to 36)
Chair Jennings announced that there was a proposed walk-on item to the Committee agenda concerning the fiscal year 2007 salary and wage administration policy. (See Item 6 pages 37 to 38.) He noted that the addition of the walk-on item required unanimous consent to be presented. With motion properly made, seconded, and unanimously adopted, the Committee approved the addition of the walk-on item to the Committee agenda.
Mr. Bowes said that it has been the practice of the Board of Regents for a number of years to approve salary increases on the basis of merit. In the fiscal year 2007 state budget, the University System of Georgia received a 4% salary increase, effective January 1, 2007. The fiscal year 2007 salary and wage administration policy states that those funds will be distributed on the basis of merit. The Board requests that any institution that grants an increase higher than 10% notify the Board in writing.
Chair Jennings asked whether there were any questions or comments regarding this item. Seeing that there were none, he called for a motion. Motion properly made, seconded, and unanimously adopted, the Committee approved the fiscal year 2007 salary and wage administration policy.
At approximately 2:50 p.m., Chair Jennings adjourned the meeting of the Committee on Finance and Business Operations as a Committee of the Whole and returned the chairmanship of the meeting to Board Chair Shelnut.
Chair Shelnut reconvened the full Board meeting and asked Regent Jennings to officially report the actions of the Committee of Finance and Business Operations as a Committee of the Whole for the purpose of approving the items in regular session.
Regent Jennings reported that the Committee of Finance and Business Operations as a Committee of the Whole had approved four items: the fiscal year 2007 budget allocations, tuition, mandatory student fees, and salary and wage administration policy. He asked for a motion for Board approval of the actions of the Committee.
Motion properly made and seconded, Chair Shelnut asked whether there were any further questions or comments.
Regent Jenkins said he was very much in favor of the motion, but he wanted an opportunity for discussion.
Chair Shelnut stated that this was the time for discussion and invited the Regents to ask questions or make comments.
Regent Jenkins stated that the tuition rate for fall 2006 under the GTP represents a 7% increase over fall 2005. He noted that this percentage was not outlined in the presentation.
Mr. Bowes responded that the proposed tuition rate under the GTP does not actually represent an increase for students under the GTP, since those students are first-time students of the University System of Georgia. Rather, this is an established fixed rate for incoming first-time students.
Regent Jenkins said that mathematically, the GTP tuition rate was established by taking the current tuition rate and multiplying it by 107.
Chancellor Davis noted that this was only the case for the GTP tuition rate at research institutions.
Mr. Bowes agreed.
Regent Jenkins said that the GTP tuition rates translated to an increase over fall 2005 tuition of 5% for four-year institutions and 4% for two-year institutions. GTP tuition rates may also be increased for the next cohort of students who will be incoming in fall 2007.
Chair Shelnut explained that the point of the GTP is to fix tuition for each incoming cohort of students for four years at four-year institutions [and three years at two-year colleges].
Regent Jenkins said he just wanted to clarify that the GTP rate could be adjusted for incoming students in fiscal year 2007. He said that the total dollars produced by the GTP tuition rates would likely be the same as under the current tuition model.
Mr. Bowes said that it is difficult to predict because it is uncertain what the tuition rates would otherwise be. Looking at historical tuition rates, the impact of foregone revenue under the GTP is relatively small.
Chancellor Davis explained that making assumptions of what tuition rate increases might be, comparing a 5% average rate increase for the next four years versus moving a freshman cohort at a set rate under the proposed GTP, there would be an approximate 1% decrease for a research university and an approximate 2% decrease for a four-year institution. So, it is likely that the University System of Georgia will collect slightly less tuition revenue under the proposed GTP, but parents and students will have more certainty about tuition costs. The decrease in revenue streams should be manageable, but the Chancellor stressed that these streams are assumed streams and hypothetical assumptions are necessarily problematic.
Regent Potts asked how many currently enrolled first-time freshmen graduate in four years.
The Associate Vice Chancellor for Planning and Policy Analysis, Cathie Mayes Hudson, responded that approximately 25% to 28% of students graduate in four years.
Chancellor Davis added that the Office of Planning and Policy Analysis has been looking more at six-year graduation rates.
Mr. Bowes said that the six-year graduation rate is approximately 47%.
Seeing that there were no further questions or comments, Chair Shelnut called for the vote to approve the actions of the Committee on Finance and Business Operations as a Committee of the Whole. With motion properly made and seconded, the Board unanimously approved the fiscal year 2007 budget allocations, tuition, mandatory student fees, and salary and wage administration policy.
Chancellor Davis said that the GTP had been discussed in full with the Governor's Education Advisor, Jennifer Rippner. Last summer, Governor Purdue challenged the University System to establish a predictable multi-year tuition model. The Chancellor had informed the Governor that such a model would be presented for Board approval at this meeting. Therefore, the Governor had invited the Regents to the Capital for a formal announcement and press conference at 3:30 p.m. Chancellor Davis noted that the GTP is a culmination of a multi-year process and that legislators and policy-makers alike are very excited about this. He added that this is an evolutionary, rather than revolutionary, change. It is a change in which the University System is making a bargain that is contingent upon continuing legislative support.
Chair Shelnut asked Regent Jolly to convene the meeting of the Committee on Organization and Law meeting after the conclusion of the press conference.
At approximately 3:10 p.m., Chair Shelnut adjourned the Board meeting until 9:00 a.m. on Wednesday, April 19, 2006.
CALL TO ORDER
The Board of Regents of the University System of Georgia met again on Wednesday, April 19, 2006, in the Board Room, room 7007, 270 Washington St., S.W., seventh floor. The Chair of the Board, Regent J. Timothy Shelnut, called the meeting to order at 9:00 a.m. Present on Wednesday, in addition to Chair Shelnut, were Vice Chair Patrick S. Pittard and Regents Hugh A. Carter, Jr., William H. Cleveland, Robert F. Hatcher, Julie Ewing Hunt, Felton Jenkins, W. Mansfield Jennings, Jr., James R. Jolly, Donald M. Leebern, Jr., Elridge W. McMillan, Doreen Stiles Poitevint, Willis J. Potts, Jr., Benjamin J. Tarbutton III, Richard L. Tucker, and Allan Vigil.
The Director of Administration and Compliance Policy, Mark Demyanek, gave the Regents and audience a briefing of basic safety information in the event of an emergency.
INVOCATION
Chair Shelnut called for a moment of silence in memory of former Senator William Fincher, Jr. of Chatsworth. Senator Fincher served as a public official for 26 years. He chaired the Senate Higher Education Committee and was a member of the Committee on the Formula for Excellence, which created the current funding formula for the University System of Georgia.
The invocation was given on Wednesday, April 19, 2006, by Regent W. Mansfield Jennings, Jr.
ATTENDANCE REPORT
The attendance report was read on Wednesday, April 19, 2006, by Secretary Gail S. Weber, who announced that Regents Michael J. Coles and Wanda Yancey Rodwell had asked for and been given permission to be absent on that day.
TRIBUTE TO RETIRING PRESIDENT AND INTRODUCTION OF NEW PRESIDENTS
Chair Shelnut asked President Betty L. Siegel of Kennesaw State University ("KSU") to join him, the Chancellor, and President Lisa A. Rossbacher of Southern Polytechnic State University ("SPSU") at the podium. He noted that President Siegel would be retiring on June 30, 2006.
Chancellor Davis said that KSU recently threw a "Silver Salute" event to honor outgoing President Siegel. At the time, the Chancellor was disappointed that he could not be present at what he heard was a fitting tribute to her. At this meeting, he was very pleased to convey the thanks of the Board of Regents to President Siegel in person. While the Regents may not have on formal attire and there was no band in the wings or champagne to help toast her accomplishments, their appreciation and affection are no less sincere or enthusiastic, he said. President Siegel's record of accomplishment at KSU is one of which she should be very proud, he continued. She was the first woman president in the University System, and she made it part of the accepted order. She has served as a mentor and guide to so many of her peers that he wondered if the Regents fully understand the influence she had exerted in the arena of women in these leadership roles, though they certainly appreciate her influence. Today, six women are currently presidents of University System institutions, and President Siegel is the undisputed dean. As he noted in remarks for the Silver Salute, her greatest legacy is her leadership in transforming KSU from a small, commuter campus in 1981 to the third largest state university in the System with more than 18,000 students. Along the way, President Siegel oversaw the creation of a beautiful new residential campus that is nationally and internationally recognized for its Coles College of Business; its Center for Leadership, Ethics and Character; and its successful First-Year Experience program for freshmen students.
The Chancellor said that he has come to know President Siegel better over the past several months, and he can now understand what people mean when they use her name and words like "dynamo," "Energizer Bunny," "unstoppable," and some others he would not repeat. She truly had taken the position of president and used it to connect the institution to the community in ways that benefit and enrich both parties. Whether speaking at conferences and events around the world, leading high-profile programs at Oxford University, or providing dynamic leadership for her beloved Cobb County, President Siegel has extended the presence, reach, and prestige of KSU through her uniquely personal touch. Talented, experienced, and blessed with exceptionally astute judgment (he noted that she did serve on the Chancellor Search Advisory Committee that ultimately selected him), President Siegel has served KSU, the University System, and the citizens of the State of Georgia with outstanding leadership for these past 25 years. He asked the Regents to join him in expressing deep appreciation for President Siegel's leadership and accomplishments. He gave her a picture of her with Governor Purdue, Regent Coles, and the Senior Vice Chancellor for Academics and Fiscal Affairs, Daniel S. Papp. He then called upon President Rossbacher to make a presentation to President Siegel.
President Rossbacher said that on behalf of the presidents of the University System of Georgia, she wanted to express their appreciation for all that President Siegel has done for the System. When President Siegel was first appointed, she was the first female president in the System. The evolution of KSU under her leadership has been legendary, both in terms of the institution's size and scope. The System presidents have been inspired by President Siegel's accomplishments as a motivational speaker at engagements that have taken her around the world. Her awards fill not just walls, but literally rooms. So, the presidents did not want to give her another plaque. Instead, they gave her a gift certificate to the Grove Park Inn in the Blue Ridge Mountains of North Carolina. On behalf of the System presidents and the Chancellor, President Rossbacher thanked President Siegel for her leadership, her commitment to education, and most of all, her friendship.
President Siegel said that 25 years ago, she interviewed for the presidency of KSU. She did not hear for months about the position, though she fell in love with the institution. She was at the beach one day in July when Chancellor Vernon Crawford called to offer her the job. She said that she feels blessed to have been the steward of the university. Alex Haley wrote, "Anytime you see a turtle on top of a fencepost, you know he had some help." President Siegel said that is illustrative that we do not stand by ourselves and there are those who make it possible for us to get where we are going. She has been fortunate to work with five Chancellors and two Interim Chancellors, but she wished she could serve a bit longer under Chancellor Davis. She said that she keeps a card in her billfold that epitomizes the kind of leadership she to which she aspires, "Risk more than others think is safe. Care more than others think is wise. Dream more than others think is practical. Expect more than others think is possible." In closing, President Siegel thanked the Regents for the honor of serving as President of KSU.
Chancellor Davis stated that the Board provides a great deal of autonomy to the presidents to lead their respective institutions. This makes the selection of an institutional president a critical responsibility. As he has traveled to the campuses and met with presidents, the Chancellor has been impressed by the overall quality of the leadership at the institutions. At this meeting, he was pleased to introduce two of the System's newest presidents, one who had been on the job just a short time and one who would begin next month.
The Chancellor first introduced the new President of Fort Valley State University ("FVSU"), Dr. Larry Eugene Rivers, who had been on the job since mid-March. Chancellor Davis noted that the board originally was scheduled to hold this meeting on the FVSU campus, but the Regents did not want to make hosting a Board meeting the very first item on the new president's agenda. Instead, the Regents will meet at FVSU in October 2006. The Chancellor said that the Regents are delighted that he accepted their invitation to give up the job he has held since 2002 as Dean of the College of Arts and Sciences at Florida A&M University ("FAMU") in Tallahassee to come to FVSU. President Rivers' association with FAMU dates back to 1977, when he was hired as an assistant professor of history. From 1990 to 2001, he served as director of FAMU's largest graduate degree program, the Master of Applied Social Sciences program. For five years previous to that appointment, President Rivers was chair of FAMU's Department of History, Political Science, Economics, and African-American Studies. Before joining the FAMU faculty, President Rivers taught history and political science at the University of Pittsburgh from 1974 to 1977. A graduate of FVSU, President Rivers holds a Master of Arts in American History and Political Science from Villanova University, in Villanova, Pennsylvania; a Doctor of Arts in American History and Curriculum Development from Carnegie Mellon University in Pittsburgh; and a Doctor of Philosophy in African-American and Cultural Studies from Goldsmiths College at the University of London, England. The Chancellor said that he and the Regents we look forward to President Rivers' leadership at FVSU. Chancellor Davis also extended his thanks to Regent McMillan, who chaired the Special Regents' Committee for the Fort Valley State University Presidential Search, as well as Regent Jennings and former Regent Connie Cater, who also served on the Committee. The Chancellor also thanked Dr. Julius E. Scipio, Dean of the College of Arts and Sciences at FVSU, for his leadership in chairing the presidential search and advisory committee at the campus level. Finally, he acknowledged the work of the faculty, staff, student, alumni, and foundation members who served on the advisory committee. He then welcomed President Rivers to the University System family.
President Rivers read the following poem by R. Lee Sharpe:
Isn't it strange how princes and kings,
And clowns that caper in sawdust rings,
And common people, like you and me,
Are builders for eternity?
Each is given a list of rules;
A shapeless mass; a bag of tools.
And each must fashion, ere life is flown,
A stumbling block, or a stepping-stone.
President Rivers said that as a 1973 graduate of FVSU, he is very pleased and honored to serve as the eighth president of the university. He said that as President, he wants to be not a stumbling block, but a stepping-stone in helping to move his alma mater forward. In closing, he thanked the Regents for giving him the opportunity to serve FVSU.
Chancellor Davis then introduced the next new president, who is already a well-known member of the University System family. The Senior Vice Chancellor for Academics and Fiscal Affairs, Daniel S. Papp, will soon take the reins from long-time President Siegel at KSU. Dr. Papp has done an exemplary job as Senior Vice Chancellor for the past five years, and the Regents are excited about the leadership he will contribute at KSU. The Chancellor remarked that Dr. Papp has been invaluable in his role as the Senior Vice Chancellor. He has held this post since 2000, but his University System roots go much further back.
Dr. Papp served as Interim President of Southern Polytechnic State University from 1997 to 1998, and as Executive Assistant to the President at the Georgia Institute of Technology ("GIT") from 1994 to 1997. An international affairs expert, Dr. Papp was the founding director of GIT's Sam Nunn School of International Affairs from 1990 to 1993 and Director of GIT's School of Social Sciences from 1980 to 1990. He joined the GIT faculty as an assistant professor of international affairs in 1973. Dr. Papp earned his Doctor of Philosophy in International Affairs from the University of Miami in 1973 and his undergraduate degree in the same discipline from Dartmouth College in 1969. Dr. Papp is married to Susan Papp and has two sons (William and Alex) and two stepsons (Michael and Benjamin). Regent Coles chaired the Special Regents Committee for the Kennesaw Stat University Presidential Search, and he was joined on this Committee by Regent Jolly and former Regent Joe Frank Harris. Chancellor Davis recognized Joseph D. Meeks, Dean of the College of the Arts, who chaired the presidential search and advisory committee, along with all members of this advisory committee who worked so ably to identify the candidate pool. In closing, the Chancellor introduced the man who he said needed no introduction to the Board but who deserves its first official welcome as President of KSU.
Dr. Papp said that he has some very big glasses to fill. At KSU, President Siegel is well beloved and incredibly respected. He said that he cares deeply for the institution and has been a resident of Cobb County for approximately 33 years. He also cares deeply about each of the other 34 institutions in the University System of Georgia. Throughout his career in the System, Dr. Papp has taken some risks, and he will continue to take risks as President of KSU just as President Siegel has done. He said that he hopes his risks will be as successful as the ones she took. Dr. Papp said he will also dream and come to the Board with some of those dreams. He will expect to do great things. KSU has wonderful faculty, staff, and students. Indeed, the purpose of KSU under President Siegel and the purpose under President Papp will be to help make good students great citizens. That is, after all, is what higher education is all about, he said. In closing, Dr. Papp thanked the Regents, the Chancellor, and the KSU community for this incredible opportunity.
Chair Shelnut congratulated Dr. Papp on behalf of the Board of Regents and the University System Office on his appointment and remarked that he knows Dr. Papp will be a great president at KSU. The Chairman said that the Regents expect they will continue to see President Siegel and look forward to it.
PUBLIC THANKS TO INTERIM CHANCELLOR CORLIS CUMMINGS
Chair Shelnut next invited the Senior Vice Chancellor for Support Services, Corlis Cummings, to approach the podium. As she came forward, he remarked that leadership sets the tone for an organization, and when an organization is in transition between leaders, this becomes an even more crucial factor. As this Board conducted its successful search that brought Chancellor Davis to the University System, the Regents were fortunate to have Ms. Cummings serve as Interim Chancellor. The Chairman remarked that, from her first report to the Board until the new Chancellor took up his duties, there is no question that Ms. Cummings performed at an exceptionally high level. Many people had expressed to her their appreciation of her efforts as Interim Chancellor. During that time, she was involved in the Chancellor search, in presidential searches, the fiscal year budget, and a host of other actions and issues. Chair Shelnut said that Ms. Cummings managed all of these duties with her customary high level of knowledge, analysis, and determination. On behalf of the Board of Regents, he publicly and officially thanked Ms. Cummings for her leadership as Interim Chancellor. The previous evening, the Regents had presented to her a plaque, in official recognition of her service to the Board and the System in this historic role. The plaque was inscribed as follows: "The Board of Regents of the University System of Georgia recognizes and honors the selfless service and leadership of Ms. Corlis Cummings in her role as Interim Chancellor of the University System of Georgia, October 1, 2005, through February 5, 2006. We extend our grateful appreciation for her contributions to public higher education and this Board's mission of 'Creating A More Educated Georgia.'" Chair Shelnut noted that the plaque was signed by both Chancellor Davis and himself. In closing, he thanked Ms. Cummings for all that she had accomplished and will still accomplish for public higher education in the State of Georgia.
Chancellor Davis added his own thanks and appreciation to those expressed by Chair Shelnut. He said that he knows how much the Board relied on Ms. Cummings as Interim Chancellor and how well she served the Board in that role. The Chancellor stated that Ms. Cummings had done a superb job of welcoming him to a new set of responsibilities, a new culture, and a new state. Her work prior to his appointment has made the transition flow smoothly, and her time, patience, and counsel upon his arrival made it possible for him to slip quickly into the Chancellor's seat. As Chancellor Davis has worked to master history, issues, and policy, and to meet people, Ms. Cummings had proven to be a resourceful and wise guide. He said that he considers her an invaluable part of the University System Office team and he shares Chair Shelnut's hope that Ms. Cummings will continue to share her experience and expertise on behalf of the Board of Regents, the System, and, most importantly, the students. He thanked Ms. Cummings for her outstanding work.
Ms. Cummings thanked the Regents for the opportunity, the experience, and the recognition. She also thanked her husband, Ricky, and her daughters, Corrick and Chandler, who were incredibly supportive. She also thanked the cabinet, the University System Office staff, and presidents. She said that this I the kind of jog that a person cannot do alone. So, she also thanked the Governor and the General Assembly for their support during the transition. It has been a pleasure to work with the new Chancellor and to assist him in acclimating to Georgia and the System. We have a great University System, and it is great because of the people that work so hard, every day, to keep pushing to the next level of excellence. She thanked the Regents, past and present, who were supportive during this transition and who gave her the opportunity to serve.
SPECIAL PRESENTATION, GEORGIA ACADEMY OF MATHEMATICS, ENGINEERING, AND SCIENCE, MIDDLE GEORGIA COLLEGE
Chair Shelnut invited President Richard J. Federinko of Middle Georgia College ("MGC") to tell the Regents about the Georgia Academy of Mathematics, Engineering and Science ("GAMES").
President Federinko said that he was pleased to make this presentation about GAMES, which is a two-year program designed for gifted high school juniors and seniors. They come to MGC to complete both their associate's degrees and high school graduation requirements simultaneously. These students are enrolled full-time at the institution and participate fully in campus live, including community service, charity activities, residence hall life, and other activities across campus. These students are exposed to a challenging and rigorous academic environment. There are also character and leadership opportunities as these students are invited to participate academically and socially in the institution. Many of these students report that they were bored in high school. They also report that they did not fit in and have a good social experience in high school. At MGC, they find other students like themselves, and they blossom both intellectually and socially.
President Federinko explained that GAMES was developed out of the Quality Basic Education ("QBE") Act of 1986 under Governor Joe Frank Harris. The emphasis of QBE was on improving mathematics and science programs in high schools. In 1996, then President Joe Ben Welch proposed the GAMES program to the Board of Regents based upon a similar program in Texas. In 1997, the program had 28 students. Today, the program has 80 students.
Prospective students are based upon the Duke Talent Identification Program and the College Board PSAT exam and through word-of-mouth and direct mailing programs. In the early stages of the program, it was difficult for GAMES to get students enrolled because high schools did not want to give up their best and brightest students. MGC arranged for the students to count both as high school and college students, and since that time, MGC has developed a much better relationship with high school guidance counselors around the state.
The admissions requirements for the GAMES program are different than for the MGC students. GAMES participants must have a 3.5 grade point average ("GPA") and 1100 SAT score, among other requirements. The program administrators also look at the disciplinary records of the students and information gained from potential students and parents. It is critical to have a good fit in a residential program. GAMES students must be mature and responsible because they are living on campus even on weekends. President Federinko noted that participants are typically 16 and 17 years old. The cost of the GAMES program is approximately $4,000 per year for tuition, fees, and room and board. The students are eligible for Accel program funded by the Georgia Lottery for Education and administered by the Georgia Student Finance Commission. Georgia Power Company also provides scholarships for minority students.
Approximately two-thirds of GAMES students come from north of Macon. Approximately 57% are female, and 36% are minorities. The average SAT score among participants is 1218. Their accomplishments at MGC continue; their retention and graduation rates are very high. President Federinko noted that approximately one-third of GAMES students go on to major in physics/engineering, consistent with the program mission. Top GAMES students matriculate to the Georgia Institute of Technology ("GIT") and the University of Georgia ("UGA"). MGC has a very good relationship with GIT in particular in which students are granted automatic admission to GIT upon completion of their associate's degrees at MGC, contingent upon an essay requirement at GIT. GAMES students have gone on to many other prestigious institutions, including Ivy League schools, the Massachusetts Institute of Technology ("MIT"), and Emory University. These students often go on to graduate and professional education programs. In eight of last nine years, a GAMES student received highest sophomore GPA award at MGC. Many of these students also take advantage of research and study-abroad opportunities.
President Federinko said that the GAMES program aspires to quality over quantity, but he does hope to expand the program to serve more gifted students in Georgia. The current dorm situation has limited GAMES enrollment to 80 students. In October 2005, the Board of Regents authorized a ground lease and rental agreement for the purpose of constructing new student housing. The Board has also approved a new GAMES academic support center. President Federinko showed the Regents a picture of the current student dorms as well maps and designs of the projects currently underway. In closing, he said that the GAMES program has tremendous potential to grow and develop. He thanked the Regents for this opportunity to speak and stepped down.
Chair Shelnut thanked President Federinko for this presentation and then called for the Committee reports.
EXECUTIVE AND COMPENSATION COMMITTEE
The Executive and Compensation Committee met on Tuesday, April 18, 2006, at 11:00 a.m. in the room 7019, the Chancellor's Conference Room. Committee members in attendance were Chair J. Timothy Shelnut, Vice Chair Patrick S. Pittard, and Regents William H. Cleveland, Donald M. Leebern, Jr., Elridge W. McMillan, and Richard L. Tucker. Chair Shelnut reported to the Board on Wednesday that the Committee had reviewed one item, which did not require action. That item was as follows:
1. Information Item: Executive Session: Personnel and Compensation Issues
At approximately 11:00 a.m. on Tuesday, April 18, 2006, Chair J. Timothy Shelnut called for an Executive Session for the purpose of discussing personnel and compensation issues. 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 Shelnut, Vice Chair Patrick S. Pittard, and Regents William H. Cleveland, Donald M. Leebern, Elridge W. McMillan, and Richard L. Tucker. Also in attendance were Chancellor Erroll B. Davis, Jr., the Senior Vice Chancellor for Support Services, Corlis Cummings, and the Secretary to the Board, Gail S. Weber. 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 12:30 p.m., Chair Shelnut reconvened the Committee meeting in its regular session and announced that no actions were taken in the Executive Session.
AUDIT COMMITTEE
The Audit Committee met on Tuesday, April 18, 2006, at approximately 11:20 a.m. in room 7059, the Seventh Floor Training Room. Committee members in attendance were Chair Julie Ewing Hunt and Regents Robert F. Hatcher, Willis J. Potts, Jr., and Wanda Yancey Rodwell. Chair Hunt reported to the full Board on Wednesday that the Committee had reviewed one item, which did not require action. That item was as follows:
1. Information Item: Fiscal Year-End 2005 Financial Audit Ratings
Annually, the Associate Vice Chancellor for Internal Audit, Ronald B. Stark, evaluates audit findings and reports the overall results of each institution's audit. The process rates each audit completed by the State Department of Audits and Accounts a Code 1 through a Code 5 rating. At this meeting, Mr. Stark presented the institutional audit ratings for the University System of Georgia, explaining that the best rating is a Code 1 and the most serious rating is a Code 5. He reported that Albany State University ("ALSU") and Fort Valley State University ("FVSU") both received a Code 5 rating for fiscal year 2005. The remaining 11 institutional audits received Code 3 ratings or better. Mr. Stark then gave a bit of history on the audit ratings of the two institutions receiving a Code 5 rating, noting that both universities have new leadership.
President Everette J. Freeman of ALSU, who has been in office six months, presented a corrective action plan and explained that he is already making progress in fixing the problems noted in the state audit. He noted that ALSU's vice president for fiscal affairs had resigned and that the institution was conducting a thorough review of all fiscal affairs staff. ALSU's Interim Chief Business Officer, Bruce Spratt, also spoke to audit issues concerning grant reconciliation and internal processes.
President Larry Rivers of FVSU, who had only been in office 35 days at the time of this meeting, discussed how the institution plans to address the problems identified in the state audit. He reported that FVSU has had major personnel changes and that the institution is in the process of training new staff and reconciling a backlog of bank statements. He said that he would be personally involved in resolving the identified audit problems.
COMMITTEE ON INFORMATION AND INSTRUCTIONAL TECHNOLOGY
The Committee on Information and Instructional Technology met on Tuesday, April 18, 2006, at approximately 11:15 a.m. in room 6041, the Sixth Floor Training Room. Committee members in attendance were Chair Hugh A. Carter, Jr., Vice Chair W. Mansfield Jennings, Jr., and Regents Felton Jenkins, Doreen Stiles Poitevint, and Allan Vigil. Chair Carter reported to the full Board on Wednesday that the Committee had reviewed two items, neither of which required action. Those items were as follows:
1. Information Item: Discussion of Development of an Information Security Program for the University System Office
At its January 2006 meeting, the Board approved revisions to The Policy Manual, Section 712, Information Security Policy. Included in that revision was the following language, "Therefore, the University System Office and all System institutions shall create and maintain an internal information security technology infrastructure consisting of an information security organization and program that ensures the confidentiality, availability, and integrity of all University System information assets." The Committee actively discussed this section of the revised policy and asked that the Vice Chancellor for Information and Instructional Technology and Chief Information Officer, Randall A. Thursby, indicate in a future meeting of the Committee how the Office of Information and Instructional Technology ("OIIT") plans to address University System Office information security infrastructure and program needs.
At this meeting, Mr. Thursby and the Assistant Vice Chancellor for Information Technology, Thomas L. Maier, described the current status of the creation of an information security program, what other university systems are doing, and possible recommendations to be submitted in the future. They reported that the University System Office currently has only two staff members assigned to this function who supply consultative service, including guidelines for policy development. The PeachNet network provides intrusion detection and prevention services as a part of its standard connectivity to the campuses. A review of five other large university systems indicates a specific focus area at the system level usually with a high-level security manager such as a chief information security officer (CISO) whose main role is coordination. Following the lead of other systems, Mr. Thursby outlined a course of action to develop an information security program in which the University System Office hires a CISO and continues to support campus activities. He indicated that this recommendation would be evaluated for action with a progress report to the Committee in early 2007.
2. Information Item: Administrative Committee on Information Technology Annual Update
The Administrative Committee on Information Technology ("ACIT") is composed of information technology leaders from each System institution who are nominated by the respective institution's president. The ACIT is responsible for providing advice to the Chief Information Officer of the University System of Georgia and for enhancing interinstitutional cooperation and collaboration. The ACIT Chair and Director of IT Services/Chief Information Officer at Georgia Southern University, Lisa Spence, and the ACIT Chair-Elect and Chief Information Officer at North Georgia College & State University, Jay Steed, updated the Committee on the activities of the ACIT. They described a very active year in which the ACIT provided advice to the University System chief information officer on a number of issues and fostered collaboration and cooperation among institutions in areas such as procurement, information security, disaster recovery, facilities planning, telecommunications, and mentoring. Mr. Steed said that leadership development is an area of increased focus. With the attrition of many information technology managers, there is a critical need to develop the next generation of leaders. The ACIT holds workshops on such topics as project and portfolio management and business case development to address this need. There are 43 individuals from 16 institutions and the Office of Information and Instructional Technology attending in these workshops.
COMMITTEE ON FINANCE AND BUSINESS OPERATIONS
The Committee on Finance and Business Operations met at approximately 1:15 p.m. on Tuesday, April 18, 2006. Committee members in attendance were Chair W. Mansfield Jennings, Jr., Vice Chair Patrick S. Pittard, and Regents Robert F. Hatcher, Julie Ewing Hunt, Wanda Yancey Rodwell, and Richard L. Tucker. On Wednesday, April 19, 2006, Chair Jennings reported to the Board that the Committee had reviewed two items, Items 4 and 5 of the agenda. Item 4 required action.
The Committee also met as a Committee of the Whole at approximately 2:05 p.m. on Tuesday, April 18, 2006. (See pages 4 to 12.) Committee members in attendance were Chair W. Mansfield Jennings, Jr., Vice Chair Patrick S. Pittard, and Regents Robert F. Hatcher, Julie Ewing Hunt, Wanda Yancey Rodwell, and Richard L. Tucker. Also in attendance were Board Chair J. Timothy Shelnut and Regents Hugh A. Carter, Jr., William H. Cleveland, Felton Jenkins, James R. Jolly, Donald M. Leebern, Jr., Elridge W. McMillan, Doreen Stiles Poitevint, Willis J. Potts, Jr., Benjamin J. Tarbutton III, and Allan Vigil. After the meeting of the Committee on Finance and Business Operations as Committee of the Whole, the full Board convened to approve the four action items presented to the Committee of the Whole, including Item 6, which was a walk-on item.
With motion properly made, seconded, and unanimously adopted, the Board approved and authorized all of the following:
1. Fiscal Year 2007 Budget Allocations (Addressed by Committee of the Whole)
Approved: The Board approved the allocation of state appropriations for fiscal year 2007 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 4 to 12.)
Background: The fiscal year 2007 budget approved by the Governor and General Assembly provides increased funding for the University System of Georgia, including all institutions and organized activities, in the amount of $120.1 million, or 6.6% above last year's appropriation. The budget calls for formula increases in the amount of $53 million, a reflection of the continued strong support state funding partners provide to the University System of Georgia to fulfill its mission of teaching, research, and service.
Other organized activities ("B" budget unit and nonteaching "A" budget activities and the Research Consortium) including, for example, the Georgia Tech Research Institute, the Agricultural Experiment Station, the Cooperative Extension Service, the University System Office, and the Georgia Public Library Service, and line item A units received $243.4 million in state appropriations, an increase of $18.9 million, or 8.4%, above current funding levels. The fiscal year 2007 approved budget for the University System of Georgia includes the following major components:
- $30.8 million is included to provide merit-based salary increases averaging approximately 4%. The increases for both faculty and staff will become effective
- January 1, 2007. Funds to annualize the fiscal year 2006 pay increase in the amount of $16.4 million are also included.
- $53 million is provided for formula increases. The formula comprises the major component of new state appropriations approved by the Governor and General Assembly for the University System of Georgia and includes $31.4 million for enrollment-related increases; $6.3 million is for operation and maintenance of new facilities, $3.8 million for new System retirees, $5.5 for electricity rate increases, and $6 million for health insurance premium costs implemented in January 2005.
- $1 million is provided to assist Georgia Gwinnett College in beginning operations in fall 2006.
- $1.5 million is included for Fort Valley State University to meet the required match on federal research funds for the 1890 land grant mission.
- $1.5 million is included for the Georgia Leadership Institute to provide additional leadership development programs for school principals.
- $5 million is provided for a seed capital fund for the bio-sciences industry for the Advanced Technology Development Center.
Capital Funding
The total bond package for capital projects is $240 million for fiscal year 2007 and $70 million for the fiscal year 2006 amended budget.
Major capital projects funded in the fiscal year 2006 amended and fiscal year 2007 budget include:
- $9.1 million for the Parks Nursing/Health Science Renovation at Georgia College & State University.
- $24.3 million for the Health, Wellness, and Lifelong Learning Center at the University of West Georgia
- $18.4 million for the Library/Technology Center at North Georgia College & State University.
- $37.5 million for the Teaching Lab Building at Georgia State University.
Other recommendations include $87.1 million for 20 minor projects, $38 million for the nanotechnology project at the Georgia Institute of Technology, and $11.6 million for 8 Georgia Public Library Service projects.
Allocation Recommendations
The allocation recommendations for fiscal year 2007 call for a portion of the $31.4 million of enrollment-related formula funds to be allocated to institutions to support basic educational needs ($24 million). This allocation recommendation provides a minimum of 60% of formula funds to institutions with a portion used to address cost differences in various sectors. The balance of enrollment-related formula funds is recommended for use in support of the Board's key strategic priorities. These recommendations are described below.
It is further recommended that new funds for maintenance and operations of plant be allocated according to the formula and that funds for new retirees, electricity rate increases, and health insurance premiums be allocated to institutions based upon actual costs or proportional share of estimated costs.
Strategic Allocations
1. Georgia Gwinnett College. ($500,000, plus internal formula transfer)
In accordance with the financial model developed to provide funding to Georgia Gwinnett College ("GGC"), the recommendation is to allocate all of the enrollment formula increase generated by Georgia Perimeter College ("GPC") to GGC ($2 million). GPC would receive its appropriate share of formula funds generated for new facilities, retiree benefits, health insurance premiums, electricity cost increases, and salary increases. This strategy would generate a total dedicated budget of just over $10.3 million for GGC in fiscal year 2007, including $1 million in separate start-up funds recommended by the Governor and General Assembly. GGC also would be expected to generate about $300,000 to $400,000 in tuition revenues.
2. Productivity/Efficiency Enhancement ($1,568,000)
The Board of Regents' Office of Information and Instructional Technology ("OIIT") provides centralized administrative and academic support to 31 System institutions and two sites (the Skidaway Institute of Oceanography and the University System Office). The research institutions, for the most part, operate independently. Concerning administrative systems, OIIT manages databases for the operation of PeopleSoft human resources and financial software for the 33 sites, although each site uses a common application, changes to which are managed centrally by OIIT. Student administrative systems (BANNER) are managed locally with support from OIIT.
The University System of Georgia needs to consider a long-term strategy of further consolidation of support that would 1) provide for centralized database management for all administrative systems, 2) consolidate separate databases into a single database that would allow for future integration of systems, 3) provide centralized support for systems for reduction in back office costs (i.e., automated time and attendance systems, self-service payroll and financial applications, etc.), and 4) improve access to, and reporting of, Systemwide data to assess the impact of productivity enhancements and identify further opportunities for cost savings.
There were three major recommendations:
i. Provide funds to continue BANNER hosting at five new sites ($700,000)
Hosting of the BANNER student information system ("SIS") was initiated in fiscal year 2006 for six volunteer institutions. In the current deployment of the BANNER SIS, each institution hosts its own technical infrastructure, resulting in 32 hardware implementations, more than 32 database and systems administration staff members, and 32 approaches to reports and service delivery. The varied nature of these implementations has resulted in unequal services to students of the University System of Georgia with clear indications of the "haves" and "have-nots" as well as difficulties in aggregating student data.
The hosted technical environment will provide a high level of basic services for students. It will be scalable so that other institutions could be added easily; it will be secure, reliable, and cost-effective; and it will facilitate continued development of an integrated learning environment. The conservative annual savings based upon the report to the Board is approximately $40,000 in operating funds per institution per year. Additionally, there are savings associated with the cost of financing new hardware. The combination of these factors, plus the added security provided to prevent system downtime, makes hosting a cost-effective option.
Expanding the project by five institutions will require an additional $700,000. This will increase the number of hosted institutions from 6 to 11. The proposed allocation would enable OIIT to expand in a continuing move toward full hosting of all institutions that receive centralized support. The next step in this process would be to streamline the application across all institutions and create a single database.
ii. Provide funds for the implementation of self-service human resources applications ($68,000 in fiscal year 2007 formula funds and $532,000 from reserve funds)
This proposal is to implement the self-service features, currently licensed by the Board of Regents, to allow employees to access and modify as needed personal data in the PeopleSoft HR system. The implementation of this software coupled with the implementation of a time and attendance system planned for this spring and the move toward direct deposit of salaries, wages, and expense reimbursements will enable consideration of payroll consolidation at a future date.
There are several different modules that make up the e-applications (self-service). The first module is e-Pay that gives employees immediate online access to their unified payroll information and intuitive tools for paycheck management. The e-Pay process reduces check printing expenses and allows employees to manage payment preferences, streamlining payroll production. The second module is e-Profile, which enables employees to perform their own employee profile maintenance, while ensuring that data changes comply with security requirements, reducing administrative effort and increasing data integrity. By shifting this work effort to the employees rather than having to go through human resources for many of these functions, these modules should easily pay for themselves in less than two years. The one-time expense is approximately $532,000, and the ongoing expense is $68,000.
iii. Provide funds to further develop the data warehouse (facilities and financial transaction data) ($800,000 from fiscal year 2007 formula funds and $200,000 from reserve funds)
The project was initiated in fiscal year 2001 to develop a data warehouse to ensure the existence and availability of accurate data about University System of Georgia ("USG"). As a result, by having the data readily available System decision makers can easily evaluate policy decisions about System operations. This project also creates a comprehensive accountability reporting system that will allow System decision makers, other state decision makers, and the citizens of Georgia to monitor the effective and efficient delivery of university and college programs by the System. Additionally, it will help the System fulfill obligations to support the Governor's goals under the Commission for a New Georgia with respect to procurement initiatives and asset management. The funding allows for the creation of a transaction-based financial system, asset information, and other important features to meet all of these needs.
Progress has been made in developing the data warehouse over the past few years; however, work has progressed slowly because of other funding and resource priorities. Currently, information from the PeopleSoft Financial functions, PeopleSoft HR functions, and the Academic Data Mart, which collects student, course, and room usage information from the BANNER SIS, are available in the data warehouse.
The requested funding will allow for the redevelopment of the Financials Data Mart to collect transactional data needed for consolidated purchasing, the design and development of a Financial Aid Data Mart associated with students in order to replace a legacy data collection system, and the design and development of Phase I of a Facilities Data Mart to ensure more information about our real estate and facilities is available aggregately. This will also allow for an improved end-user reporting interface to allow for more self-service. About $200,000 will be in one-time costs, and the remaining $800,000 is ongoing.
3. Nursing Program Initiative ($2,349,316)
To address the lack of nursing teaching faculty, the lack of adequate clinical sites for nurse training, and limited student spaces in existing nursing programs, a multi-pronged effort initiative is proposed using Intellectual Capital Partnership Program (ICAPP) funds, state formula appropriations, and contingency reserve funds. In addition to the allocation of $2.3 million as strategic consideration, this initiative also calls for the use of $1.2 million in ICAPP funds, $655,012 from formula funds allocated directly to institutions, and one-time allocations from reserve funds, bringing the total allocation funds to $4.9 million. These funds will be used to fund nurse educator programs at the Medical College of Georgia and a statewide doctoral program in nursing as collaboration among five partner institutions, expand or establish seven Associate of Science in Nursing programs, four accelerated Bachelor of Science in Nursing programs, and simulation labs at Valdosta State University and Albany State University.
4. Retention, Progression, and Graduation Initiative ($2,200,000)Nationally, University System of Georgia institutions rank very low on six-year graduation rates and retention rates. Improving retention and graduation rates is a key strategic priority of the Board of Regents. Although many institutions within the System need improvement in these areas, it is proposed that the initiative focus its efforts and funding on those institutions that, due to the numbers of students enrolled, can have the most impact on improving retention and graduation rates across the University System. The recommendation is to provide a total of $2.2 million in funding to Georgia Southern University, Kennesaw State University, Valdosta State University, the University of West Georgia, and Georgia State University to assist and supplement programs currently underway at each institution to address this issue. The recommended funds will be used to support expansion of faculty advising, supplemental instruction programs, peer mentor programs, targeted intervention programs, and other strategies designed to improve retention and graduation rates. In exchange for this support, each institution will be required to provide annual reports identifying performance on intermediate metrics that offer evidence that the program strategies are achieving success.
The recommendations by institution are as follows:
Georgia State University $ 750,000
Georgia Southern University $ 350,000
Kennesaw State University $ 400,000
University of West Georgia $ 350,000
Valdosta State University $ 350,000
Alternative Media Access Center ($600,000)
The Alternative Media Access Center ("AMAC") is an accessible Web-based and on-site training service for students with print-related disabilities. AMAC offers University System of Georgia students with print-related disabilities independent access to course materials in postsecondary environments. The allocation would bring AMAC under the auspices of the Alternative Learning Technologies ("ALT") office with the Board of Regents. This would ensure a Systemwide response to needs and eliminate costly duplication.
Research Equipment and Start-Up Funds ($600,000)
With the loss of lottery revenue support of the former Educational Technology and Construction Trust Fund ("ETACT"), the research universities lost a significant source of funds to provide for research equipment particularly associated with the hiring of major research faculty with the capability of bringing in federal grants. Funds provided under this allocation offer a modest amount of resource to Georgia Institute of Technology, the University of Georgia, and Georgia State University to meet this need.
Additionally, it is proposed that $100,000 be provided to the Medical College of Georgia to initiate the Doctoral Program in Physical Therapy, which will be offered at Armstrong Atlantic State University and North Georgia College & State University. The funds provided will allow for conversion of faculty positions at these institutions to 12-month appointments and aid in hiring a new faculty member.
2. Fiscal Year 2007 Tuition (Addressed by Committee of the Whole)
Approved: The Board approved the tuition policy change outlined below and the tuition rates for fiscal year 2007 to become effective in the fall semester 2007.
This item was discussed in full by the Committee on Finance and Business Operations as a Committee of the Whole. (See pages 4 to 12.)
Background: The University System of Georgia has historically offered low tuition to its students relative to the experience of other state systems and institutions. In fiscal year 2006, the average tuition at the University System of Georgia's research universities ranked thirty-ninth nationally and tenth among the 16 Southern Regional Education Board ("SREB") states. During the same period, the average tuition for the System's four-year institutions ranked forty-first nationally and fourteenth within the region. For two-year colleges, the rankings are forty-first nationally and thirteenth in the region.
Despite the low tuition, the System has achieved a level of excellence that makes it one of the finest higher education systems in the country. This has been accomplished through the combined effective leadership of the System's institutional presidents and the strong financial support provided by the Governor and General Assembly. Georgia is one of few states that avoided having to make major reductions in funding to its public higher education institutions during the recent recession, owing to the continued strong support of state elected officials for the funding formula adopted in the mid-1980s. From fiscal years 2002 through 2006, funding for the University System of Georgia experienced a slight funding reduction while most state systems underwent a significant decline in state support, which resulted in increases in tuition rates.
Today, the rising cost of higher education is a critical concern for students, parents, and state policy makers who understand the importance of obtaining a college education in an increasingly competitive global economy. The recommended tuition policy recognizes that the University System's ability to remain very affordable while achieving excellence is something to be valued and maintained. The purpose of the proposed tuition strategy is to provide a degree of predictability to undergraduate students regarding tuition costs and to encourage more rapid progress toward graduation. It is also to ensure that tuition costs remain affordable for all students while maintaining quality in the University System of Georgia.
Proposed Policy:
The proposed tuition strategy provides a "guaranteed tuition rate" for entering students, full- and part-time, resident and nonresident. The initial tuition rate, or guaranteed tuition rate, for these students will be established at a level slightly higher than the "normal" tuition rate. The normal tuition rate is defined as the minimum tuition rate necessary to meet 25% of formula increases, including a 25% share of any salary increases approved by the Governor and General Assembly.
The normal tuition rate and the guaranteed tuition rate will be differentiated by institutional sector. For example, current projections of formula and salary increases suggest that an overall rate increase of 4.6% would be required for the normal tuition rate in fiscal year 2007. This average increase will be achieved by establishing a 5% rate increase for System research institutions, as well as Georgia College & State University and Southern Polytechnic State University; a 4% rate increase for all other four-year colleges and universities; and a 3% rate increase for the System's two-year colleges.
The guaranteed tuition rates will represent increases in current tuition rates of 7% for research universities, 5% for four-year colleges and universities, and 4% for two-year colleges. The guaranteed tuition rates will be in effect for students entering in fall 2006 for a period of four years. After four years (or two years, depending upon the institution), students will be required to pay the prevailing normal tuition rate and have their rate increased annually according to changes in the normal tuition rate until graduation or separation from their institution. Currently enrolled students will continue to pay the normal tuition rate. As previously stated, this average will be differentiated by sector.
This policy will not apply to graduate and professional program tuition, nor will it apply to tuition for online programs. Additionally, the policy will be extended beyond four years for students enrolled in programs that require longer than four years to complete as well as cooperative education programs, where students spend certain semesters of their academic studies in work experiences.
Graduate and 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 to enable programs to remain competitive with peer programs in colleges and universities across the country. This year, increases or new tuition rates are recommended for nine professional programs. The programs are listed below.
Georgia Institute of Technology
- Flexible Master of Business Administration ("M.B.A")
Georgia State University
- Professional M.B.A.
- School of Law
Medical College of Georgia
- School of Medicine
University of Georgia
- School of Law
- Master of Public Administration
- M.B.A.
- Executive M.B.A
- Master of Accountancy
3. Fiscal Year 2007 Mandatory Student Fees (Addressed by Committee of the Whole)
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 4 to 12.)
Background: The recommendations contained herein reflect a rigorous review of fee increase requests that evaluates, among other things, the current financial position of the programs and activities supported by fees. In addition, all requests were accompanied by documentation provided by each institution concerning the committee review process required by Board of Regents policy. That policy requires each fee and the budget it supports to be reviewed by a committee comprised of a minimum 50% of students.
A total of 81 requests were submitted for mandatory fee increases. The recommendations support 53 of these requests at the requested amounts and 25 at levels below the requested amounts. Three fee increase requests are not recommended.
The overall System average increase in mandatory fees based upon these recommendations is 9.8%. This is higher than in previous years. Most of the increase can be attributed to increases in technology fees, which have been held constant at most institutions for five to six years and to new privatized capital projects for which financing is dependent upon the charging of facilities fees to students. Technology or facilities fees account for more than one quarter of the total recommended fee increases.
Technology Fees
Fifteen institutions requested increases in technology fees. Through previous agreement with the Georgia Student Finance Commission, HOPE Scholarship Program ("HOPE") eligibility for technology fees was capped at $75 per semester for research institutions and $38 per semester for two-year colleges and four-year state colleges and universities. Institutions were limited to establishing technology fees at rates that did not exceed the HOPE eligibility cap. The caps had been in place from 1999, the inception of the technology fee program until a year ago, when new HOPE legislation effectively capped scholarship eligibility for all mandatory fees in the System at levels existing on January 1, 2004. As a result, beginning last year, the Board approved these increases because technology fees support costs increase over time, and increases are recommended this year as well.
Facilities Fees
Facilities fees are fees charged by institutions to pay debt service and operating costs on projects financed through third parties. Because they are dependent upon an identified revenue stream for funding, these projects are generally nonacademic facilities. That is, residence halls, student centers, parking decks, and recreational centers, projects which are traditionally funded by separate fees.
There are several such projects for which fee increases or new fees are recommended. They include the Student Center and Multimedia Center at Valdosta State University (a $20 per semester increase), a parking facility at Columbus State University (a new $39 per semester fee), a parking deck at North Georgia College & State University (an increase of $40 per semester in the existing transportation fee), a student center at Gainesville College (a new $30 per semester fee), a student support fee at Georgia Perimeter College that will support ten projects located at the institution's different campuses ($10 per credit hour, capped at $120 per semester), and a parking facility at Georgia Gwinnett College ($100 per semester for full-time students and $50 per semester for part-time students taking six credit hours or less). Note that this fee will be charged to non-Georgia Gwinnett College students currently taking courses at the Gwinnett location.
Athletic Fees
Three institutions requested significant increases in their athletic fees: Georgia State University (a $40 per semester increase), Georgia Southwestern State University (a $19 per semester increase), and Kennesaw State University (a $15 per semester increase). In each of these cases, the need for the increase is predicated upon a recent change to a new National Collegiate Athletic Association ("NCAA") division or from a non-NCAA conference to an NCAA conference where the costs increase due to price of membership, the addition of sports programs, the addition of compliance officers where necessary, and increases in scholarships. All three fee increase requests are recommended.
4. Amended Fiscal Year 2006 Budget
Approved: The Board approved the amended budget for fiscal year 2006 of the University System of Georgia.
Background: The fiscal year 2006 amended budget includes a net total of $6.2 million in funding for the University System of Georgia. The supplemental allocations include the following:
- Funding for premiums for workers' compensation to be paid by all institutions of the University System of Georgia in the amount of $1.73 million.
- Adjustment of $677,118 for Georgia Southern University to offset retirement of debt service for a payback project.
- Allocation of $500,000 for the Coverdell Eminent Scholar at Georgia College & State University.
- Allocation of $410,000 to North Georgia College & State University for loss of tuition from deployed students.
- Allocation of $900,000 for equipment for the Traditional Industries Program.
- Adjustment of $300,000 for maintenance and operations for the Agricultural Experiment Station, $220,000 for the Georgia Public Library Service, and $552,811 for Georgia Tech Research Institute.
The total allocations are $4.71 million for the A budget and $1.49 million for the B budget.
5. Information Item: Second Quarter Revenue and Expenditure Report, Fiscal Year 2006
The Vice Chancellor for Fiscal Affairs, William R. Bowes, presented to the Committee the first quarter financial report for the University System of Georgia for the period ending December 31, 2005, which is on file with the Office of Fiscal Affairs. The report includes tables that compare actual and budgeted revenues and expenditures through December 31, 2005, for educational and general funds, auxiliary enterprise funds, and student activity funds.
6. Fiscal Year 2007 Salary and Wage Administration Policy (Addressed by Committee of the Whole)
Approved: The Board approved the fiscal year 2007 salary and wage administration policy for the University System of Georgia.
Walk-on: This item was added by unanimous consent as a walk-on item to the agenda of the Committee on Finance and Business Operations as a Committee of the Whole. (See pages 4 to 12.)
Background: The Board of Regents allocated to each institution funds to provide for a 4% salary increase for all employees. These funds must be provided to System employees for salary increases on the basis of merit. It is expected that individual merit salary increases will be reasonably distributed among employees in amounts ranging from 0% to 10%. Salary increases may exceed 10% for employees exhibiting exceptionally meritorious performance. Institutions must notify the Chancellor in writing of any merit increases they approved at levels exceeding 10%.
COMMITTEE ON REAL ESTATE AND FACILITIES
The Committee on Real Estate and Facilities met on Tuesday, April 18, 2006, at approximately 1:10 p.m. in the Board Room. Committee members in attendance were Chair Allan Vigil, Vice Chair Hugh A. Carter, Jr., and Regents Felton Jenkins, Donald M. Leebern, Jr., and Elridge W. McMillan. Chair Vigil reported to the Board on Wednesday that the Committee had reviewed 15 items, 11 of which required action. Item 8 was withdrawn in Committee; Item 9 was withdrawn prior to the Committee meeting; and item 15 was a walk-on item. With motion properly made, seconded, and unanimously adopted, the Board approved and authorized the following:
1. Naming of the "Herb Hayes House," Atlanta, Georgia Institute of Technology
Approved: The Board approved the naming of Building "F" of the Fourth Street Apartments, at the Georgia Institute of Technology ("GIT") the "Herb Hayes House," in recognition of the generosity of H. Craig Hayes.
Understandings: Building "F" of the Fourth Street Apartments on the GIT campus provides sleeping rooms for 24 students who participate in the International Living + Learning program. The accommodations are available to house special programs, groups, or organizations through coordination with the GIT Department of Housing. The facility also provides space for a living area, kitchen, restroom facilities, dining and activity space, and outdoor patio space.
As an Atlanta native, H. Craig Hayes came to GIT from Druid Hills High School in fall 1961. Mr. Hayes graduated from GIT in 1965 with a degree in Industrial Management. After graduation, Mr. Hayes worked as a contract administrator for the Georgia Tech Research Institute, while awaiting active duty in the Army. Following Army service, he returned to Atlanta, where he met his wife, Mary, in 1968 and became a prominent Atlanta businessman working with a well known Fortune 500 company for over 30 years. Mr. Hayes has also enjoyed serving and giving to the Atlanta community during several terms as an administrative board member of the Peachtree Road United Methodist Church, a member of the Buckhead 50 Club, a former officer of the Ridgedale Park Civic Association, and a Georgia Tech Alumni Association trustee.
In fall 2005, Mr. Hayes contributed approximately 100 acres of real estate in Morgan County, valued at $840,000, to the Georgia Tech Foundation, Inc. Of the gift, $100,000 was designated for life membership in the Alexander-Tharpe Fund for the unrestricted support of intercollegiate athletics and an additional $100,000 was designated for the Class of 1965 Scholarship Fund. The remaining portion of the gift was designated for an unrestricted endowment, the income from which will help to meet GIT's most pressing needs.
Mr. Hayes' father always wanted to graduate from GIT, but due to the Great Depression, he had to leave college and obtain a job, keeping him from fulfilling his dream of a GIT degree. Mr. Hayes' gift to GIT fulfills his dream of having his father's name permanently associated with the campus. In celebration of Mr. Hayes fortieth reunion and in memory of his father, Herbert B. Hayes, Building "F" of the Fourth Street Apartments will be named in his father's memory.
2. Naming of the "Gene Bishop Fieldhouse at Paulson Stadium," Statesboro, Georgia Southern University
Approved: The Board of Regents approved the naming of the new fieldhouse, commonly known as the Athletic Support Building, currently under construction at Georgia Southern University ("GSOU"), the "Gene Bishop Fieldhouse at Paulson Stadium" to honor Dr. Eugene M. Bishop.
Understandings: Dr. Bishop has been a long-time friend and supporter of GSOU. Over the last ten years, Dr. Bishop has contributed in excess of $750,000 to the Georgia Southern University Foundation Inc. and Southern Boosters, Inc. His gifts have supported the College of Business Administration, the Student Disability Resource Center, and various athletic programs, including a full football scholarship. In addition to contributing financially, Dr. Bishop has volunteered his time and leadership to GSOU, serving on the Business Advisory Council and as Chair of the Board of Directors of Southern Boosters, Inc.
Although Dr. Bishop never attended GSOU as a student, he received an honorary doctorate at the May 2000 commencement, and both his son and daughter are GSOU alumni. In 1997, Dr. Bishop was presented GSOU's "Friend of the University" award.
As part of his commitment to GSOU's Campaign for National Distinction, Dr. Bishop has made an irrevocable pledge of $2,500,000 toward construction of the new fieldhouse at Paulson Stadium to be named in his honor.
3. Demolition of Connell Hall, Barnesville, Gordon College
Approved: The Board declared Connell Hall, located on the campus of Gordon College ("GOC"), Barnesville, Georgia, to be no longer advantageously useful to GOC or any units of the University System of Georgia and authorize demolition and removal of this building.
The Board requested that the Governor to issue an Executive Order authorizing the demolition and removal of this building from the campus of GOC.
Understandings: Connell Hall is an approximately 25,350-square-foot three-story brick building that was originally constructed in 1961 as a dormitory. The building was occupied as a male residence facility until June 2005, when it was taken out of service, and it has remained vacant since.
The site is to become a green space park area in accordance with the campus master plan, until such time as the Student Center may be expanded to meet enrollment growth of campus.
A Georgia Environmental Policy Act evaluation and environmental site assessment report have been completed and indicate no adverse environmental conditions associated with this demolition.
4. Acquisition of Real Property, 1016 West Gordon Street, Valdosta, Valdosta State University
Approved: The Board authorized the purchase of approximately 2.559 acres of real property located at 1016 West Gordon Street, Valdosta, from Richard Rowe for $265,000 for the use and benefit of Valdosta State University ("VSU").
The legal details involved with this purchase of real property will be handled by the Office of the Attorney General.
Understandings: Acquisition of this real property is consistent with the VSU master plan.
This real property is improved with three steel-frame, metal-siding buildings in generally good condition totaling 12,850 square feet.
If acquired, the buildings would be used for support services, including central warehouse space, printing services, and campus mail, which are currently located in the academic core of the campus. Future potential uses of the land include expansion of the warehouse function at this location and relocation of the greenhouse.
An environmental site assessment has been conducted and indicates no significant adverse environmental issues.
Three independent appraisals of the real property are as follows:
| Appraiser | Appraised Value | Average |
|---|---|---|
| William McMath, MAI, Albany | $285,000 | |
| R. Bryan Almand, MAI, Valdosta | $265,000 | $269,000 |
| G. Alan Sutton, MAI, Valdosta | $257,000 |
There are no known easements, reversions, or restrictions on the real property.
Funding for the purchase is from institutional funds.
5. Acquisition of Real Property, 836 Hudson Road, Marietta, Southern Polytechnic State University
Approved: The Board authorized the purchase of approximately 4.998 acres of real property located at 836 Hudson Road, Marietta, from Marietta Lodge No. 1657, Benevolent and Protective Order of Elks of United States of America, Inc. for $950,000 for the use and benefit of Southern Polytechnic State University ("SPSU"').
The legal details involved with this purchase of real property will be handled by the Office of the Attorney General.
Understandings: Acquisition of this real property is consistent with the SPSU master plan.
This real property is improved with a one-story masonry building totaling 10,300 square feet and a metal storage building, both in generally fair condition. In addition, a pool exists on the property, which is in poor condition and would be filled in if the acquisition is approved.
If acquired, the main building would be used immediately for additional studio space for the SPSU Architecture program. Future use of the real property would be incorporated into the campus master plan for potential building sites.
An environmental site assessment has been conducted and indicates no significant adverse environmental issues.
Three independent appraisals of the real property are as follows:
| Appraiser | Appraised Value | Average |
|---|---|---|
| Hall Rigdon, MAI, Marietta | $1,000,000 | |
| Richard O. Martin, MAI, Marietta | $1,130,000 | $1,020,000 |
| Clifford D. Crider, Kennesaw | $ 930,000 |
There are no known easements, reversions, or restrictions on the real property.
Funding for the purchase is from a Southern Polytechnic State University Foundation, Inc. gift and SPSU funds.
6. Conveyance of Real Property, Georgia Department of Transportation, Oakwood, Gainesville State College
Approved: The Board declared approximately 5.846 acres of real property adjacent to the campus of Gainesville State College ("GSC"), Oakwood, Georgia, no longer advantageously useful to GSC ("GSC") or other units of the University System of Georgia but only to the extent and for the purpose of allowing the conveyance of this property to the Georgia Department of Transportation (the "DOT") for use as a roadway.
The Board conveyed title to approximately 5.846 acres of real property adjacent to the campus of GSC, Oakwood, Georgia, to the DOT for use as a roadway, subject to a reversion of this property if it should cease to be used as a road.
The Board declared approximately 0.454 acre of real property adjacent to the campus of GSC, Oakwood, Georgia, no longer advantageously useful to GSC or other units of the University System of Georgia but only to the extent and for the purpose of granting a permanent easement across this property to the DOT for construction and maintenance of slopes.
The Board granted a permanent easement to approximately 0.454 acre of real property adjacent to the campus of GSC, Oakwood, Georgia, subject to termination if this property is no longer required by the DOT to maintain slopes.
The Board granted a right-of-entry to the DOT for two tracts of real property totaling approximately 5.0 acres for construction of roads with the right-of-entry terminating on completion of construction.
Understandings: The DOT desires to relocate the exit ramp from I-985. As a part of this work, Landrum Education Drive will be relocated and enhanced in accordance with the GSC master plan. The marquee sign for GSC will need to be relocated, a sound wall adjacent to the campus performing arts building installed, and a fence along the exit ramp roadway installed. This additional work will be performed by the DOT or compensation provided to the Board of Regents as a cost to cure to perform this work.
All work performed by the DOT associated with the road improvements will be at no cost to the Board of Regents.
Consideration for the conveyance and permanent easement is $1,518,250, plus additional potential compensation for the cost to cure.
7. Nonexclusive Easement, Cityswitch, LLC, Alumni Drive, Athens, University of Georgia
Approved: The Board declared an approximately 1.348-acre tract of real property on Alumni Drive on the campus of the University of Georgia ("UGA") to be no longer advantageously useful to UGA or other units of the University System of Georgia but only to the extent and for the purpose of granting a nonexclusive easement to Cityswitch, LLC (the "LLC") for ingress and egress access.
The Board authorized the execution of a nonexclusive easement with the LLC for the above-referenced tract of land.
The terms of this nonexclusive easement are subject to review and legal approval of the Office of the Attorney General.
Understandings: The LLC requested this nonexclusive easement to provide ingress and egress access to the location of a cell tower located on Central of Georgia Railroad property.
Consideration for this nonexclusive easement is avoidance of the alternative routing of a gravel access road along 1,000 feet on railroad property adjacent to the intramural fields of UGA.
8. Subrental Agreement, 125 Westridge Industrial Boulevard, McDonough, Georgia State University
Tabled: This item was tabled by the Committee.
9. Rental Agreement, Two Live Oak, 3445 Peachtree Road, Atlanta, Georgia State University
Withdrawn: This item was withdrawn prior to the Committee meeting.
10. Authorization of Project Budget Modification, Nanotechnology Research Center, Project J-77, Georgia Institute of Technology
Approved: The Board modified the November 2003 authorization of Project J-77, "Nanotechnology Research Center," Georgia Institute of Technology ("GIT"), to increase the total project budget from $80.0 million to $85.0 million.
Understandings: The Nanotechnology Research Center ("NRC"), formerly known as the Advanced Clean Room Building, was presented to the Board by President Clough in June 2002 and added to the University System of Georgia capital project priority list. The total project cost was estimated at $80 million with the source of funding to include $35 million in private funds and $45 million in state funds. The Board indicated at the time that the project was unique and represented a potential economic value for the State of Georgia. The Governor supported moving the project forward immediately, and initial funding was provided by the state in fiscal year 2005 and fiscal year 2006 totaling $7.0 million. Project design is complete, and preliminary utility construction currently is underway. Demolition of existing buildings on the site will commence in April 2006, with the building construction expected to begin early summer 2006.
The project cost estimate recently provided by the project construction manager exceeded the available budget, in part due to recent construction cost increases as a result of the Gulf Coast hurricanes and general construction material cost increases. In addition, the original NRC project budget has not been adjusted for inflation. Therefore, GIT was required to reduce project costs and add additional funding resources.
Through a value engineering process, GIT eliminated project scope that did not critically impact the original program and functionality of the building to reduce the overall cost estimate. GIT has also committed an additional $5.0 million in private donor funds toward the project. The revised project total budget is $85.0 million. The state-funded amount remains at $45.0 million, and GIT commitment has increased from $35.0 million to $40.0 million.
11. Authorization of Project and Appointment of Architect, Learning Center, Griffin Campus, University of Georgia
Approved: The Board authorized project "Learning Center" at the University of Georgia ("UGA") Griffin Campus with a total project budget of approximately $10,000,000 to be funded from a Spalding County Special Purpose Local Option Sales Tax ("SPLOST")
The Board appointed the first-named architectural firm listed below for the identified project and authorized the execution of a contract with the identified firm. Should it not be possible to execute a contract with the top-ranked firm, staff will then attempt to execute a contract with the other listed firms in rank order.
Understandings: Spalding County desires to fund a learning center on the Griffin Campus of UGA to provide space for the university's teaching program. Spalding County passed a referendum on November 8, 2005, for the SPLOST to finance this development. The taxes will be collected by Spalding County for this project beginning in April 2006.
A conceptual approval for this project was granted by the Board at its October 2005 meeting.
The Board of Regents will contract and oversee the design and construction of the facility on behalf of Spalding County which will own the building for a period of three years while SPLOST funds are collected. The facility will be gifted to the Board of Regents upon completion of the SPLOST.
The project will consist of an approximately 40,000-square-foot classroom building containing classrooms, dry labs, offices, and student common areas. Construction will include adequate parking adjacent to the building and required access roads.
Further action by the Board will be requested to approve the terms of the ground lease, rental agreement, operating agreements, and other agreements necessary for development and operation of the facility.
Following public advertisement, a qualifications-based selection process for an architectural firm was held in accordance with Board of Regents procedures. The following recommendation is made:
| Total Project Cost | $10,000,000 |
| Construction Cost (Stated Cost Limitation) | $ 7,700,000 |
| A/E Fee | $ 500,000 |
Number of A/E firms that applied for this commission: 28
Recommended A/E design firms in rank order:
- Manley Spangler Smith Architects, Griffin
- Chapman Griffin Lanier Sussenbach, Architects, Inc., Atlanta
- Gardner Spencer Smith Tench & Hensley, Atlanta
12. Authorization of Project and Appointment of Architect, Tate Student Center Expansion and Parking Deck Project, Athens, University of Georgia
Approved: The Board authorized project "Tate Student Center Expansion and Parking Deck," University of Georgia ("UGA"), with a total project budget of approximately $41,000,000 to be funded by privatized financing through the UGA Real Estate Foundation, Inc. ("UGAREF"), student fees, and parking revenues.
The Board appointed the first-named architectural firm listed below for the identified project and authorize the execution of a contract with the identified firm. Should it not be possible to execute a contract with the top-ranked firm, staff will then attempt to execute a contract with the other listed firms in rank order.
Understandings: A student fee of $25 per semester was approved for this project by the Board at its April 2005 meeting.
Until the primary financing with UGAREF is finalized, UGA has committed to provide student fee revenue to support the architectural portion of the project budget.
The Tate Student Center was opened in 1983 and contains 100,000 square feet of floor space. This project will consist of a 100,000-square-foot addition ($23 million,), renovations to the existing building ($16 million), and a new 550-space parking deck ($2 million). This project will allow for a student center large enough to facilitate the enrollment growth at UGA, which is now at approximately 33,000 students.
Further action by the Board will be requested to approve the terms of the ground lease, rental agreement, operating agreements, and other agreements necessary for development and operation of the facility.
Following public advertisement, a qualifications-based selection process for an architectural firm was held in accordance with Board of Regents procedures. The following recommendation is made:
| Total Project Cost | $41,000,000 |
| Construction Cost (Stated Cost Limitation) | $31,800,000 |
| A/E Fee | $ 2,518,000 |
Number of A/E firms that applied for this commission: 18
Recommended A/E design firms in rank order:
- Cooper Carry, Inc., Atlanta
- Jova/Daniels/Busby, Inc., Atlanta
- Lyman Davidson Dooley, Inc., Marietta
13. Information Item: Campus Housing Project, Public-Private Venture, Fort Valley, Fort Valley State University
President Larry Eugene Rivers discussed the proposed student housing at Fort Valley State University ("FVSU"). He stated that the plan calls for new student housing to replace the existing student housing on campus. In November 2005, Interim President William Harris presented the FVSU master plan to the Committee. The plan called for the creation of living and learning communities, and two new housing sectors were identified for potential development. The plan also proposed the demolition of the existing student housing on campus. A new residential quadrangle was proposed on the site of the George N. Woodward Gymnasium. In May 2004, the FVSU comprehensive housing plan was presented to the Committee. The plan demonstrated that improved housing will better support the university's mission, vision, and objectives. An increasing number of students attend the university from greater distance, and approximately 50% of the students come from Metro Atlanta.
President Rivers stated that the current condition of student housing on campus is inadequate. The findings and conclusion of the consultant reports clearly illustrate this problem. He stated that these inadequacies are a fundamental reason for FVSU's declining enrollment. Upon arrival to our campus, one quickly notes the deteriorated condition of each of the six residence halls and the condition our students are compelled to live. No doubt, for perspective students and their families, this detracts from the attractiveness of the campus. The housing development plan calls for the implementation of the first two phases of the master plan. The housing is to be developed in accordance with the market study.
FVSU has adopted a residency requirement for all students who have 58 credit hours or less. These students must live in the new housing once it is completed in fall 2007. Also, president scholars and athletes will be required to live on campus. The new housing will consist of five 4-story buildings constructed around a new quadrangle. It will provide a total of 941 student housing beds in apartment and suite-style units. Each apartment and suite will provide individual rooms for students. The project will also provide an amenities building.
President Rivers concluded his presentation by stating that housing is a key component to the mission of FVSU. There is a demonstrated and validated housing need, as evidence in the comprehensive housing plan, master plan, and market analysis. FVSU intends to move forward in meeting the housing needs by requesting at the May 16, 2006, Board of Regents meeting approval of the ground lease and rental agreement for the new housing.
14. Information Item: Proposal to Locate the National Bio and Agro-Defense Facility in Athens, University of Georgia
The Vice Chancellor for Facilities, Linda M. Daniels, introduced The Georgia Consort