ACBO Board of Directors

ACBO Board of Directors Thursday, January 12, 2012 RECORD OF THE MEETING

Members Present: T. Burke (President.); B. Dowd (President Elect); J. Austin (Past President); Members—S. Coleal; F. Williams; T. Scott; E. Maduli; S. Crow; J. Buysse; S. Rearic; J. Gordon; K. Blackwood

Members Absent: J. Sharpe

Staff and Guests Attending: Dan Troy (Chancellor’s Office); Diane Brady (CCCCO); Theresa Tena (CCLC); Peter Hardash (Rancho Santiago CCD); Keegan Jeffries (ACCCA); and Susan Bray (ACCCA)

I. Joint Meeting with ACCCA Board: The meeting began with a conversation with members of the ACCCA Board over lunch. ACCCA’s Legislative Consultant, Michelle Underwood (SSC) shared her budget and legislative report with both boards. Highlights included:

 Dan Troy commented that the governor is looking to the Chancellor’s Office to create a new allocation method (not based on FTES). He also said that he doesn't see a lot of hope for categorical consolidation and that Chancellor Scott would be against it.

 There was some discussion regarding the potential for the tax initiative to pass and if so, should the funds go towards deferrals or additional funding. Dan commented that colleges will “get whatever K-12 gets.” He noted that we will have upwards of a $100 Million fee deficit in 11/12.

Following the joint meeting, ACBO convened separately.

II. Call to order. The minutes from the 12/1-2 meeting were reviewed and corrections made. The December meeting record was approved as amended. The roster was reviewed and corrections made as well. Staff was asked to post the updated roster and terms of office on the website.

III. Treasurers report. Kathy distributed the Treasurer’s report and said she would bring back possible investment options to the February meeting. Susan Bray will also be bringing a proposal to amend the existing MOU for services to include accounting functions.

IV. Facilities Task Force. Ed Maduli reported that Chet Witcom has been appointed as the new State Architect. He said there will be more FUSION training coming up in February in Fullerton, and that Fred Harris is still working on a State bond and is optimistic (K-12 is a proponent.) He noted that storm water permits is currently a big issue and that a representative of the State Board was at the task force meeting. Ed noted that Fred will be asking for volunteers for a group to work with the board and that the issue is focused on the amount of work involved in requesting the permit which is very extensive and more suited to cities and counties. The group will likely meet in February with state board action expected in March.

Members discussed the CCCIOU program and noted that only a few districts have taken advantage of the program.

The task force is working on reforming the FPP process. Another agenda item is a moratorium on Category D projects. There was some discussion about chronic DSA delays that are potentially affecting state funding both for new projects and closing out really old ones.

V. Fiscal Standards Task Force: Fred Williams reported his task force hadn't met.

VI. CCLC Report: Theresa Tena distributed the final report issued by the Workgroup on CC Finance. She indicated that the CEO Board will take action on the report at the end of January, and emailed the ACBO board the changes. Bonnie recommended a small change and complimented Theresa on her efforts to bring the work of the Workgroup to a conclusion.

Board members unanimously approved the recommendations in the report. Theresa noted that there were some issues that were not resolved in this report and suggested that those issues may still deserve some attention. Members commented that perhaps the governor's proposals on flexibility may assist. Members discussed the prospect of an additional workload reduction and various formulas for basic aid versus grandfathered centers, etc.

Tom Burke reported that a small group of CBOs has met to discuss these issues and recommended the group work on a unified funding formula that puts everyone on the same playing field. He said that since the governor's budget proposal includes flexibility for the Chancellor’s Office to allocate funds, we should get ahead of this issue.

Theresa said we need to eliminate unintended funding consequences if we can. Tom said that the basic aid districts gave back their PFE funding over the prior and current years, and noted that the penalty for not meeting the FON or 50% law cannot be applied to districts without apportionment and Basic aid districts also don't suffer from deferrals. Further, even non-basic aid districts are treated differently with respect to the deferrals, depending on the proportion of apportionment to property taxes.

Tom recommended reconstituting the funding formula task force. Kathy noted that it may not be in the best interest of the system to treat everyone the same, and outlined that when SMCCCD goes basic aid, the system will be $40 million richer. Bonnie recommended that if we do reconstitute the task force, it will be very important to not discuss any of the deliberations outside of the committee until the issues are resolved and we have consensus. Steve recommended that we do some analysis of the results of the small school exemption, for example, to report that the schools did do as promised to look at the kinds of FTES generated.

Jeanette commented that LA had to deal with all of these issues and that statewide issues will be very difficult to resolve. The board agreed to reconstitute the group and look at all the funding issues. Theresa will talk to CCLC about reconstituting the funding task force. Dan directed member’s attention to the part of the proposed budget that essentially would allow the Chancellor’s Office to supersede SB 361 if they came up with a funding formula approved by the BOG and DOF.

VII. Report of the Chancellor’s Office: Dan Troy reported saying that if this new language to supersede SB 361 had legs, more than ACBO would need to be involved. There was some discussion that the state would get out of setting fees and let the colleges deal with that within the system. In response to a question, Dan reiterated that the SSTF report adoption doesn’t change anything as yet. All items require either BOG regulation change or legislative action. Erik Skinner is taking the lead on this.

There was discussion about the potential trigger cuts for 12/13. The County Offices of Education are formally recommending that K-12 schools budget for the triggers and members indicated the need for the Chancellor’s Office to send the same message. Concerns were expressed by members about the LAO versus DOF predictions that could create a double hit to colleges.

To that end, Fred asked Theresa to add this year's cuts to the scenarios now posted on the League's website. Dan agreed to provide the board with historical information on cuts. Peter commented that the categorical consolidation is not that much different from what we have had, but we need regulatory relief to go with it. As proposed, the requirement doesn't allow the ability to be flexible if continuing to meet all the regulations is required as well such as hiring EOPS directors, etc.

Diane Brady reported on RDAs stating that they will be eliminated but will have successor agencies and oversight boards. The boards will have a rep appointed by the Chancellor. The Chancellor’s Office would like us to recommend names for these boards. Peter said the RDAs are recalculating their pass through agreements to our detriment, and these will be grandfathered in. The oversight committees will need to review and vet these agreements. Peter recommended that the Board appoint someone with technical skills as these will be very difficult tasks, and there appears to be a limit of either 5 or 7. The committees are to be in place by February 1st, but pending legislation may postpone that timeline.

Bonnie will send us a summary she has prepared showing that if a college has borrowed against the RDA stream, an enforceable agreement is the result. The 2% as well as the pass through funds are supposed to be enforceable obligations.

Diane said they are watching the RDA legislation to the best of their ability and that the Dolinka Group, as well as Robert Barna, have put out a newsletter that they might be willing to share.

Dan Troy requested a CBO rep for a DSPS study. Sharlene Coleal indicated that she may have someone for his consideration.

VIII. ACCCA Report. Keegan Jeffries reported that there are 227 pre-registered attendees for the budget workshop. The Budget Workshop event is contracted to be at the Sacramento Hilton for 2 more years but beyond that, staff is going to be looking at other downtown options. Members noted that because of the proliferation of information (webinars, emails, etc.) the budget workshop has less new information but should focus instead on networking and information sharing.

The Spring Conference site is also contracted for at the Sacramento Hilton through 2013. Members expressed again a deep desire to go to Lake Tahoe. Members agreed ACBO should not be locked into Sacramento as a site for the Spring conference after the existing contract is up. Tom will confer with Susan and bring this back to the next meeting.

IX. ACBO Institute Report: Kathy reported that the Institute II went well, but demand now seems to have built up for the Institute I program. Mike Brandy provided a thorough and concise written summary. Some concern was expressed by members that the training is not being done for the “next in line”, but rather, the waiting list consists of fairly low level staff who, given their titles, would not be prepared for this training.

Sue Rearic suggested that to address that issue, ACBO should require a recommendation from the CBO as a part of the application process for the Institute I, and for Institute II, require a more formal process to verify readiness before admittance to the program. Tom suggested that the promotional information be re-written to be clearer about application requirements and “who the training is intended for.” Bonnie concurred stating that she would like to see a minimum level of knowledge or experience established. Steve agreed and would like leadership skills as a focus of the program as well. Members suggested the following language: “as a pre- requisite of the program, a minimum knowledge level would include familiarity with the Community College funding process (including the 320, etc.).

Jim Austin shared the difficulties he has had in teaching his EDD program, and said he would share the Power Points he has developed that include a minimum knowledge or foundation level materials that the students must be familiar with. In his class, Jim noted he requires his students to write papers on these concepts.

Another suggestion was to ask the local CBO to review the topics with their proposed staff. Ed will add this to hot topics for discussion at the Spring conference. Kathy requested members to send her any introductory information that they may use to train new managers. Members also suggested that SLOs be developed for both institutes. Kathy again asked for assistance with one-day workshops and/or webinars, etc. and there was discussion about making drive-in workshops self sustaining if they are targeting more than CBOs.

Kathy will discuss with Mike about a proposal for Institute I and bring it back. It was reiterated that the CBO should both recommend and assure that the person is prepared for the Institute. For the drive-in workshops, Kathy was directed to go ahead and work with Pam Deegan and Judy Miner, but ask them to make sure they include the complete picture of student services and business. Jim suggested ACBO develop a syllabus first.

X. Spring Conference: Ed Maduli reported that things are on track for the 2012 Spring Conference in May, but asked members to discuss a possible theme for the event. Some ideas were: Life with Triggers; Survivor; and Don't Waste a Good Crisis. Members requested that the conference agenda be publicized earlier for future conferences. Ed shared a planning timeline worked out with ACCCA Staff that moves the agenda up a month, and members agreed that would be an improvement. In closing, Ed indicated he is seeking a chairperson for the golf tournament.

XI. Consultation: Bonnie Dowd reported that the next meeting for the Consultation Council is Thursday, January 19. Sharlene Coleal outlined the information she had provided on the 50% law at the last meeting, and members acknowledged Tom Burke’s contribution in giving the statement an effective introduction showing the relation to student success. Kathy reported that the ACBO issue about exempting a parcel tax from the FON did finally get approved. Susan Bray noted that ACCCA plans to keep 50% at the front and center of their legislative agenda.

XII. Constitution and Bylaws. The board spent the remainder of the meeting editing the Association’s Constitution and Bylaws pursuant to the draft from the December meeting. Bonnie Dowd will incorporate the changes and issue the final version. Members agreed to defer discussion on the Association’s strategic plan to the next meeting.

XIII. From the Floor: Steve Crow reported that the NORCAL group meets soon and that the TTAC report indicates there is an electronic catalog available now for districts.

END OF MEETING RECORD