MINUTES Kentucky Community and Technical College System Board of Regents Meeting September 26, 2008

MINUTES Kentucky Community and Technical College System Board of Regents Meeting September 26, 2008 Board Members Present: Mr. Richard A. Bean, Board Chair Dr. Joseph B. Wise, III, Board Vice Chair Mr. Randall Barnes Mr. Mark D. Brooks Mr. Paul C. Callan, Jr. Ms. Ginger M. Carroll Board Members Absent: Ms. Johnna Reeder, Board Secretary Mr. Jackie B. Cecil Mr. Porter G. Peeples, Sr. Mr. Michael D. Quillen Ms. Marcia L. Roth Mr. Larry D. Savage Mr. Thomas O. Zawacki Ms. Brenda R. Corey CALL TO ORDER KCTCS Board of Regents Chair Bean called to order the meeting of the Kentucky Community and Technical College System Board of Regents at 8:30 a.m. (ET), September 26, 2008. The meeting was held in the Mezzanine Board Room of the KCTCS System Office in Versailles, Kentucky. Chair Bean announced that the press was notified of the meeting on September 19, 2008, and that Hon. J. Campbell Cantrill, KCTCS General Counsel, would serve as parliamentarian. There being a quorum present, Board business began with the approval of the minutes from the last meeting. APPROVAL OF MINUTES MOTION: Mr. Cecil moved and Mr. Brooks seconded that the June 13, 2008, KCTCS Board of Regents meeting minutes be approved. VOTE: The motion was approved by unanimous consent. ADDITIONS OR CHANGES TO THE AGENDA Chair Bean called for additions or changes to the agenda. Hearing none, the meeting continued with the next agenda item. WELCOME AND INTRODUCTION OF MEETING GUESTS Chair Bean thanked Bluegrass Community and Technical College President Augusta Julian and her staff for hosting the Board s September 25, 2008, committee meetings. He expressed appreciation for their hospitality and for including the Board at the dedication of the college s Winchester-Clark County Campus. 1

LEADERSHIP KCTCS Chair Bean called on KCTCS President Michael B. McCall to introduce Mr. Luke Taylor, a student at Bluegrass Community and Technical College (BCTC), who shared his experiences with Leadership KCTCS. He is a graduate of the inaugural class of Leadership KCTCS, which graduated April 24, 2008. Through the program, Mr. Taylor noted that he learned that community improvement was the responsibility of every citizen. He also indicated that the program enabled him to see how KCTCS functions as a whole and serves communities across the Commonwealth. He expressed appreciation to President McCall for the opportunity to participate in the program. Leadership KCTCS is a student leadership program and an initiative of NewCitizen Kentucky. Leadership KCTCS is designed to increase the civic literacy and capacity of students, emphasizing civic engagement and the 12 principles of community building through student involvement with community leaders in discussions, shadowing experiences, and community forums conducted at college locations throughout the Commonwealth. NewCitizen Kentucky is a partnership between KCTCS and the Kentucky League of Cities/New Cities Institute. Mr. Taylor, who is the KCTCS Board of Regents alternate Student Regent, graduated Bluegrass Community and Technical College in 2008 with an associate of applied science degree with an emphasis in Information Technology. He is continuing his studies at the college, where he is pursuing a degree in preengineering (electrical) before transferring to Eastern Kentucky University. Mr. Taylor is the 2008-09 Student Body President at Bluegrass Community and Technical College as well as President of the BCTC Five-Star Phi Theta Kappa Chapter. As the Phi Theta Kappa chapter president, Mr. Taylor received the Kentucky Shining Star Award for Leadership. Chair Bean thanked Mr. Taylor for his remarks, noting that the System is about students. CHAIR S REPORT Chair Bean reported that Ms. Marcia L. Roth, who lives in Louisville, Kentucky, was appointed by Governor Steve Beshear for a six-year term that ends in 2014. She is the Executive Director of the Mary Byron Foundation a public grantmaking charity funding programs to stop domestic violence. Ms. Roth was integral in the concept and implementation of the nation s first computerized victim notification program (VINE). Chair Bean also reported that on August 6, 2008, the KCTCS colleges Student Government Association Presidents (or their proxies) elected Mr. Randall L. Barnes and reelected Ms. Ginger M. Carroll as KCTCS Student Body Co- Presidents. 2

Mr. Barnes, an AAS in Visual Communications student at West Kentucky Community and Technical College, will serve as the Occupational/Technical Student Regent. Mr. Barnes was elected the 2008-09 WKCTC Student Government Association (SGA) President. He participates in the National Scholastic Sportsman Program, a club that encourages outdoor activities and conservation. Ms. Ginger M. Carroll, who is pursuing a business degree at Hazard Community and Technical College, will serve as the General Education Student Regent. Ms. Carroll was elected the 2008-09 HCTC Student Government Association President. She is active in the Order of the Eastern Star as well as charity work. In accordance with KCTCS Board of Regents Bylaws, the two KCTCS Student Body co-presidents will serve a one-year term as the student members of the Board. Their term as regents will end August 10, 2009. On September 9, 2008, Chair Bean and President McCall conducted a new regent orientation for Mr. Barnes and Ms. Roth. Before the orientation, the Honorable John Coyle, Woodford County Judge Executive, administered the oath of office for Mr. Barnes and Ms. Roth. Both of the new regents are fully qualified according to statute to serve on the Board of Regents. Chair Bean reported that due to budget constraints, the Board s 2009 regular meetings will be held at the KCTCS System Office in Versailles. The 2009 regular Board meeting dates are March 12-13, June 11-12, September 24-25, and December 3-4, 2009. He announced the Board s Committee Leadership and Membership for 2008-09 (see below). The KCTCS Board Chair is an ex officio voting member on all of the Board s committees. Executive Committee Mr. Richard A. Bean, Chair Dr. Joseph B. Wise, III, Vice Chair Ms. Johnna Reeder, Secretary Mr. Michael D. Quillen Mr. Larry D. Savage Mr. Thomas O. Zawacki Academic Affairs and Curriculum Committee Mr. Larry D. Savage, Chair Mr. Paul C. Callan, Jr., Vice Chair Ms. Ginger M. Carroll Mr. Jackie B. Cecil Ms. Johnna Reeder Ms. Marcia L. Roth Dr. Joseph B. Wise, III Efficiency, Effectiveness, and Accountability Committee Mr. Michael D. Quillen, Chair Mr. Porter G. Peeples, Sr., Vice Chair Committee of the Whole Finance, Technology, and Human Resources Committee Mr. Thomas O. Zawacki, Chair Ms. Brenda R. Corey, Vice Chair Mr. Randall L. Barnes Mr. Mark D. Brooks Mr. Porter G. Peeples, Sr. Mr. Michael D. Quillen 3

Chair Bean provided an update on the KCTCS Foundation, Inc., noting that the Foundation held its annual meeting in August in Pikeville, Kentucky, where it approved a $1.6 million budget for fiscal year 2008-09 and received a clean audit report for fiscal year 2007-08. He reported that Mr. Peeples and he made a presentation at the KCTCS President s Leadership Seminar earlier in September and that he and Mr. Savage met with the Commission on Colleges of the Southern Association of Colleges and Schools (SACS) visiting team regarding Gateway Community and Technical College s accreditation candidacy status. Chair Bean provided an overview of the single accreditation process that has been underway since 2000-01. Chair Bean noted that on August 25, 2008, President McCall and he met with the CPE Interim President and the CPE Council Chair. At the meeting with the CPE representatives, Chair Bean expressed displeasure with the CPE s decision regarding the KCTCS tuition request. In addition, they also discussed transfer issues at that meeting and appropriate communication protocol between CPE members and members of the postsecondary education governing boards. Information requests from CPE members should be directed to CPE staff and then directed to KCTCS staff. Chair Bean reminded the Board that it is to speak with one voice. Chair Bean outlined the following evaluation process for the KCTCS President s fiscal year 2007-08 performance evaluation: October 16 Comprehensive report for the 2007-08 leadership initiative, ARISE, will be provided to the Board and the KCTCS President s Leadership Team. External and community partners will be sent evaluation instruments. November 24 KCTCS Board of Regents Executive Committee meets in a special meeting to: o Review the KCTCS President s performance relative to the previous fiscal year s leadership initiative. o Begin formulating a recommendation for the full Board s consideration in December related to the KCTCS President s performance and compensation for the upcoming calendar year. December 5 Executive Committee makes a recommendation to the full Board related to the KCTCS President s performance and compensation for the upcoming calendar year. o Full Board reviews/approves the evaluation and compensation. PRESIDENT S REPORT KCTCS President Michael B. McCall updated the KCTCS Board on current activities, including updates on the FACET 2008-09 initiatives of Workforce Competitiveness, Virtual Learning, and Transfer Education. Via a PowerPoint presentation, he also provided a summary of the ARISE 2007-08 achievements related to College and Workforce Readiness, Virtual Learning, and Workforce Competitiveness. 4

Some of the other activities and information highlighted in President McCall s report included the following: Appointment of Dr. Edward L. Story, Jr. as Maysville Community and Technical College President. Appointment of Hon. J. Campbell Cantrill as General Counsel. Appointment of Mr. Lewis Prewitt as Executive Assistant for Administrative Affairs in the KCTCS Chancellor s Office. Announcement that eight KCTCS colleges were named in the Top 100 Associate Degree Producers by the Community College Week magazine. The colleges include West Kentucky Community and Technical College (17th), Bluegrass Community and Technical College (18th), Jefferson Community and Technical College (22nd), Maysville Community and Technical College (32nd), Somerset Community College (45th), Bowling Green Technical College (48th), Owensboro Community and Technical College (88th), and Ashland Community and Technical College (93rd). North American Racing Academy (NARA) graduates and current second-year students competing at Turfway Park, Saratoga, and Churchill Downs race courses. The riders who are members of the academy s first graduating class include Mikey James, Glendora, California; Jessica Oldham-Stith, Cynthiana, Kentucky; Anna Roberts, Franklinton, Louisiana; and Matthew Straight, East Greenbush, New York. Current second-year students include Ben Creed, Taylorsville, Kentucky; Kristina McManigell, Georgetown, Kentucky; Ryan Pacheco, Toronto, Canada; and Mike Straight, East Greenbush, New York. Advocacy campaign, which is designed to increase financial and policy support for KCTCS. Performance measures update, including enrollment. The KCTCS Board of Regents reviewed and discussed fall 2008 enrollment figures. For the first time in the organization s 10-year history, enrollment did not increase during the fall semester with an estimated 92,175 students enrolled fall 2008 compared with 92,828 in 2007. The enrollment decrease is a direct result of a decline in state appropriations and the Council on Postsecondary Education s decision not to approve a tuition increase as recommended by the KCTCS Board. Lack of funding support has hindered KCTCS ability to adequately carry out statutory mandates found in the 1997 Kentucky Postsecondary Education Improvement Act. Due to a $13.5 million reduction in state appropriations, KCTCS began the 2008-09 academic year with 240 fewer faculty and staff. KCTCS colleges have absorbed the budget cuts by eliminating academic programs and reducing the number of courses and services offered to students. Specific actions include: Elimination of full academic programs on one or more campuses at 10 colleges. Enrollment caps in one or more programs at 12 colleges. Fewer courses or fewer course sections offered by 14 colleges. Minimum number of students required for a class to be offered was raised at 15 colleges. Class sizes increased at nine colleges. Reduction in services to students and businesses at 15 colleges. 5

Closure of a campus at Gateway Community and Technical College. Capping of enrollment at Jefferson Community and Technical College s downtown campus. Discontinuation of class offerings at Wayne County High School by Somerset Community College. Elimination of weekend operations of the library at Owensboro Community and Technical College. In response to the tight budgetary environment, KCTCS is aggressively pursuing additional revenue sources, including the launching of the virtual learning initiative, KCTCS Online. This initiative will allow adults to pursue higher education anytime, anywhere, and anyplace without ever having to physically enter the doors of any KCTCS college. It is anticipated that KCTCS Online will allow KCTCS to play a primary role in transforming the state s economy to meet the needs of the global economy. KCTCS Online will be rolled-out to business and industry beginning January 2009 and available statewide by the end of March 2009. KCTCS is Kentucky s number one provider of online education in terms of volume, currently enrolling 22,000 students in traditional online courses, with an estimated 10,000 more predicted over the next three years. The written report presented at the meeting is attached (Attachment B) and posted in its entirety on the KCTCS website at http://www.kctcs.edu/organization/board/meetings/ It was noted that revised statutes and other information related to open meetings and open records were included in the President Report folders. An invitation to the 2008 KCTCS President s Gala and Benefactors Award Dinner was also included in the packet. CONSENT AGENDA RECOMMENDATION: That the following items listed under the KCTCS Board of Regents Consent Agenda be approved: 1. Academic Affairs and Curriculum Committee I-1. Action: Ratification of New Credit Certificate and Diploma Programs. Each of the new programs is applicable toward at least one degree program. I-3. Action: KCTCS Colleges Candidates for Credentials. For the period of April 22, 2008, through August 4, 2008, there were 4,866 credential requests, of which 3,024 are unduplicated and included 3,609 certificates; 300 diplomas; 394 associate in arts; 169 associate in science; and 394 associate in applied science. The credentials are to be awarded to the students upon certification that the requirements for the credentials have been satisfactorily completed. 2. Finance, Technology, and Human Resources Committee J-2. Action: Ratification of Personnel Actions. The personnel actions presented for ratification followed policy and procedures. Chair Bean noted that the items on the Consent Agenda were discussed separately during committee meetings of the KCTCS Board of Regents. MOTION: Mr. Zawacki moved and Mr. Savage seconded that the KCTCS Board of Regents Consent Agenda be approved. VOTE: The Consent Agenda was approved by unanimous consent. 6

RECESS The KCTCS Board of Regents recessed at 9:35 a.m. (ET) and reconvened at 9:46 a.m. (ET). EXECUTIVE COMMITTEE Executive Committee Vice Chair Wise presented the committee s report to the KCTCS Board of Regents. ACTION: MISSION STATEMENT REVISIONS: Mission Statement Revision for Bluegrass Community and Technical College RECOMMENDATION: That the KCTCS Board of Regents approve a revised mission statement as presented in the agenda materials for Bluegrass Community and Technical College. It is the policy of KCTCS that a college mission statement is to be reviewed annually and that the mission statement is to be submitted to the KCTCS Board of Regents for approval at least once every three years. Since March 7, 2008, the college s mission statement has received numerous reviews, including by its Faculty Council on March 7, 2008; Foundation on March 12, 2008; Alumni Board on March 26, 2008; Administration/Planning Team on April 17, 2008; and Staff Council on May 22, 2008. The mission statement was endorsed by the BCTC Board of Directors on May 21, 2008. MOTION: On behalf of the Executive Committee, Dr. Wise moved that the KCTCS Board of Regents approve the revised mission statement as presented in the agenda materials for Bluegrass Community and Technical College. VOTE: The motion was approved unanimously. Mission Statement Revision for Hazard Community and Technical College RECOMMENDATION: That the KCTCS Board of Regents approve a revised mission statement as presented in the agenda materials for Hazard Community and Technical College. Dr. Wise noted that the college s mission statement has been reviewed extensively by faculty and staff, beginning with the college s June 6, 2008, Leadership Retreat where more than 60 faculty, staff, and administration reviewed and recommended the mission statement. The mission statement also was reviewed and recommended by 15 faculty, staff, and administration at the July 8, 2008, Hazard Community and Technical College Leadership Institute. On July 23, 2008, the college s leadership team reviewed and recommended the mission statement. The college s faculty, staff, and administration recommended the statement on August 5, 2008, at a college-wide meeting and via email. The mission statement was endorsed by the Hazard Community and Technical College Board of Directors on August 14, 2008. MOTION: On behalf of the Executive Committee, Dr. Wise moved that the KCTCS Board of Regents approve the revised mission statement as presented in the agenda materials for Hazard Community and Technical College. VOTE: The motion was approved unanimously. 7

Mission Statement Revision for Madisonville Community College RECOMMENDATION: That the KCTCS Board of Regents approve a revised mission statement as presented in the agenda materials for Madisonville Community College. Dr. Wise noted that the college s mission statement was reviewed by the college s Faculty Council on April 11, 2008. The Madisonville Community College President s Cabinet reviewed and provided input on the mission statement on April 23, 2008. Faculty at the college reviewed and endorsed the revised mission statement on April 25, 2008. The Madisonville Community College Board of Directors endorsed the revised mission statement on August 28, 2008. MOTION: On behalf of the Executive Committee, Dr. Wise moved that the KCTCS Board of Regents approve the revised mission statement as presented in the agenda materials for Madisonville Community College. VOTE: The motion was approved unanimously. INFORMATION: 2009 KCTCS LEGISLATIVE AGENDA Dr. Wise reported that during the 2009 Regular Legislative Session, KCTCS will focus on two issues: 1) KCTCS Student Transfer and 2) Electrical Licensure. It was noted that the issues regarding electrical licensure relate to how KCTCS students earn field experience credit needed for licensure and may be resolved prior to the start of the legislative session. The Board noted that resolving KCTCS student transfer issues, such as improving the process and increasing credit awarded for courses completed at KCTCS colleges, was its top priority. Chair Bean noted that should an issue arise during the legislative session that requires input from the Board, then the Executive Committee will provide such input. The KCTCS Board of Regents Bylaws Section 10.2.3 states that the Executive Committee shall be responsible for all matters related to the overall administration of KCTCS. Specifically, the Executive Committee shall advise KCTCS and recommend action on policies related to... legislative issues. ACADEMIC AFFAIRS AND CURRICULUM COMMITTEE ACTION: NEW PROGRAM PROPOSALS AAS in Homeland Security/ Emergency Management for Bluegrass Community and Technical College and West Kentucky Community and Technical College Academic Affairs and Curriculum Committee Chair Savage presented the committee s report to the Board of Regents. RECOMMENDATION: That the KCTCS Board of Regents approve an Associate in Applied Science (AAS) in Homeland Security/Emergency Management with options in Criminal Justice, Fire Science, and Security Management for Bluegrass Community and Technical College and West Kentucky Community and Technical College to be implemented in spring 2009. These will be the first two degree programs of this kind within KCTCS. Faculty and resources from existing programs will support the program. The proposed 62-68 credit hour Homeland Security/Emergency Management program with its three options provides an overview of homeland security, emergency management, and first responder agencies, including but not limited to fire departments, law enforcement, and medical services and how these agencies function within the National Incident Management System (NIMS). Support for the program 8

includes letters of support from across the state and nation as well as responses to a spring 2007 KCTCS Homeland Security Management survey of approximately 1,100 fire, police, emergency medical services, business, government, and other agencies. Average salary depends upon rank and hours worked. Police and sheriff s patrol officers had median annual earnings of $47,460 in May 2006. The median earnings of firefighters was $41,190 in May 2006. MOTION: On behalf of the Academic Affairs and Curriculum Committee, Mr. Savage moved that the KCTCS Board of Regents approve an Associate in Applied Science (AAS) in Homeland Security/Emergency Management with options in Criminal Justice, Fire Science, and Security Management for Bluegrass Community and Technical College and West Kentucky Community and Technical College to be implemented in spring 2009. VOTE: The motion was approved unanimously. AAS in Diagnostic Medical Sonography for Hazard Community and Technical College RECOMMENDATION: That the KCTCS Board of Regents approve an Associate in Applied Science (AAS) in Diagnostic Medical Sonography with an option in General/Vascular for Hazard Community and Technical College to be implemented in spring 2009. Four other KCTCS colleges have the proposed program, including Bowling Green Technical College, Jefferson Community and Technical College, Owensboro Community and Technical College, and West Kentucky Community and Technical College. Classroom space is available in the Allied Health Building at Hazard Community and Technical College. Equipment is being donated by area medical facilities. Start-up and operating expenses will be provided by Perkins funds. The proposed 69-76 credit hour Diagnostic Medical Sonography program prepares individuals for a highly-skilled profession that uses specialized equipment to create images of the human body s internal structures. The images are used by physicians to make medical diagnoses. The median annual earnings of diagnostic medical sonographers was $57,160 in May 2006. MOTION: On behalf of the Academic Affairs and Curriculum Committee, Mr. Savage moved that the KCTCS Board of Regents approve an Associate in Applied Science (AAS) in Diagnostic Medical Sonography with an option in General/Vascular for Hazard Community and Technical College to be implemented in spring 2009. VOTE: The motion was approved unanimously. 9

AAS in Surgical Technology for Hazard Community and Technical College RECOMMENDATION: That the KCTCS Board of Regents approve an Associate in Applied Science (AAS) in Surgical Technology for Hazard Community and Technical College to be implemented in spring 2009. There are six other KCTCS colleges that offer this associate degree program Bluegrass Community and Technical College, Bowling Green Technical College, Jefferson Community and Technical College, Madisonville Community College, Somerset Community College, and West Kentucky Community and Technical College. The proposed 60-65 credit hour Surgical Technology program start-up and operating expenses will be covered by the use of Perkins funds. Hazard Community and Technical College has classroom space available for the program in its Allied Health Building, and laboratory facilities will be available through a collaborative partnership with Appalachian Regional Hospital (ARH) in Hazard. The AAS in Surgical Technology program prepares graduates to work under the supervision of a surgeon to ensure that the operating room environment is safe, that equipment functions properly, and that the operative procedure is conducted under conditions that maximize patient safety. Employment of surgical technologists is expected to grow 24 percent between 2006 and 2016, much faster than the average for all occupations, as the volume of surgeries increases. The median annual earnings of surgical technologists was $36,080 in May 2006. MOTION: On behalf of the Academic Affairs and Curriculum Committee, Mr. Savage moved that the KCTCS Board of Regents approve an Associate in Applied Science (AAS) in Surgical Technology for Hazard Community and Technical College to be implemented in spring 2009. VOTE: The motion was approved unanimously. AAS in Advanced Industrial Integrated Technology for Madisonville Community College RECOMMENDATION: That the KCTCS Board of Regents approve an Associate in Applied Science (AAS) in Advanced Industrial Integrated Technology (AIIT) with options in Multi-Skilled Industrial Technician and Medical Equipment and Instrumentation Technician for Madisonville Community College to be implemented in spring 2009. The proposed 76 credit hour Advanced Industrial Integrated Technology (AIIT) program with its two options will be the first AAS AIIT program for KCTCS. No additional funds will be sought for implementation. Madisonville Community College was appropriated $14 million for the construction of the Brown Badgett, Sr. Energy and Advanced Technology Center, which will house the AIIT program. Qualified faculty to teach the program are currently employed. 10

In the program, students will integrate a variety of subject matter from multiple technical disciplines, developing a diverse skill set needed in today's "high-tech" industrial and healthcare settings. The request for the degree program is based upon data collected from a 2007 Labor Market Training Survey developed and distributed both locally and regionally by employees of Madisonville Community College. The survey results pointed to the need to train students for a variety of multidisciplinary skills to fulfill both current and future employment needs of small- to mediumsized industries. Such small- to medium-sized industries comprise a large portion of the industry sector in the Madisonville area. Graduates of the AIIT program will be prepared to install, manage, maintain, calibrate, troubleshoot, repair, test, and inspect modern-day equipment and systems that have a technologically diverse design. Job titles include Maintenance Technician, Industrial Machinery Mechanic, Equipment Engineering Technician, Instrument and Controls Technician, Machine Repairer, and Mechanic. The median annual earnings is estimated to be $32,570. MOTION: On behalf of the Academic Affairs and Curriculum Committee, Mr. Savage moved that the KCTCS Board of Regents approve an Associate in Applied Science (AAS) in Advanced Industrial Integrated Technology with options in Multi-Skilled Industrial Technician and Medical Equipment and Instrumentation Technician for Madisonville Community College to be implemented in spring 2009. VOTE: The motion was approved unanimously. UPDATE: FINANCIAL AID AND SCHOLARSHIPS Mr. Savage reported that the Academic Affairs and Curriculum Committee received an update on financial aid and scholarships. All federal, state, and institutional financial aid, scholarships, and grants available to KCTCS students were awarded during fiscal year 2008. In addition, more than 99 percent of privately-funded scholarships targeted for KCTCS students were awarded as well. Mr. Savage noted that the committee will continue its discussion of the topic at a future meeting. UPDATE: BACCALAUREATE STUDENT TRANSFER Mr. Savage reported that the Academic Affairs and Curriculum Committee received an update on KCTCS student transfer issues, noting that the Council on Postsecondary Education will distribute a policy brief at its September 28, 2008, meeting. 11

FINANCE, TECHNOLOGY, AND HUMAN RESOURCES COMMITTEE Finance, Technology, and Human Resources Committee Chair Zawacki presented the committee s report to the Board of Regents. ACTION: WORKFORCE DEVELOPMENT/ TRANSFER PROGRAM GUIDELINES RECOMMENDATION: That the KCTCS Board of Regents endorse the planned use of the $1,129,000 transferred from the CPE Workforce Development/Transfer Program to the KCTCS state appropriation base as follows: 1) $1,000,000 for an ongoing KCTCS endowment match program. 2) $129,000 for an ongoing transfer scholarship program initiated with fiscal year 2007-08 trust funds. Mr. Zawacki noted that KCTCS has never been included in the Bucks for Brains endowment program. During the 2006 legislative session, the General Assembly appropriated $300,000 of non-recurring funds in fiscal year 2006-07 and $1.2 million in recurring funds in fiscal year 2007-08 to the Council on Postsecondary Education (CPE) for the 2006-08 Workforce Development/Transfer Program. KCTCS quickly raised private funds to match the $300,000 endowment match pools in both fiscal years 2006-07 and 2007-08, creating endowment funding of $600,000 for each of those fiscal years. The remaining $900,000 in fiscal year 2007-08 was used for various workforce development and transfer initiatives as approved by CPE, including $200,000 to establish a scholarship program for KCTCS students indicating an interest in transferring to a four-year institution after completing the student s academic program at KCTCS. During the 2008 legislative session, the General Assembly transferred $1,129,000 (the net amount of the $1.2 million following the two 3 percent budget cuts) from the CPE base to the KCTCS state appropriation base. President McCall has agreed to provide CPE with a planned use of the fiscal year 2008-09 funds transferred to KCTCS. The proposed recommendation results in a KCTCS Board of Regents guideline that states how the money will be spent without obligating the expenditures in future budgets. Expenditures will be made only if the program continues to receive state funding. The funds, which are recurring, are included in the fiscal year 2008-09 budget approved by the KCTCS Board of Regents at its June 13, 2008, meeting. KCTCS college presidents have indicated that they can raise additional private funds for a larger endowment match program in fiscal year 2008-09. An area of focus for the endowments will be transfer scholarships. Since the funding is now recurring within the KCTCS state appropriation base, the Board of Regents will no longer need to approve individual endowment matches as was needed in fiscal years 2006-07 and 2007-08 when this funding was available on a nonrecurring basis from CPE. 12

The Board discussed the trust funds Transfer Program, including scholarship guidelines. System Office and college staffs worked together to establish scholarship guidelines for the Transfer Program funds. Scholarships will be awarded to both first and second year KCTCS students. Guidelines for the matching funds have yet to be developed, and it is anticipated that KCTCS colleges matching funds may range from a minimum of $50,000 to a maximum of $200,000. MOTION: On behalf of the Finance, Technology, and Human Resources Committee, Mr. Zawacki moved that the KCTCS Board of Regents endorse the planned use of the $1,129,000 transferred from the CPE Workforce Development/Transfer Program to the KCTCS state appropriation base as follows: 1) $1,000,000 for an ongoing KCTCS endowment match program. 2) $129,000 for an ongoing transfer scholarship program initiated with fiscal year 2007-08 trust funds. VOTE: The motion was approved unanimously. INFORMATION: BENEFITS STUDY Mr. Zawacki discussed the supplemental information mailed to the KCTCS Board of Regents via overnight mail on September 18, 2008. The benefits study is based on guiding principles of current employee interests, a focus on new hires for any potential benefit changes, and the effective allocation of resources to ensure the continued attraction and retention of quality faculty and staff. Benefits comparison data included in the study are from the Mercer Benefits Valuation report previously shared with the Board of Regents, a summary of retirement program trends for higher education, and a comparison of Kentucky educational institutions benefits programs. The supplemental information provided options for consideration presented in light of information gathered for the study. It also included alternatives for how the benefits programs might be changed for new employees hired in the future, such as the following: Eliminating post retirement health insurance for new KCTCS employees who are hired in the future. Adopting the state schedule for employee costs of health insurance. Eliminating the $50 benefit for employees who choose single or no health insurance instead of family or employee/spouse benefits. Decreasing the employer contribution for 403(b) retirement programs. Employee leave plans (vacation, sick, spring/fall breaks, and institutional closing), including the possibility of establishing sick/personal days for faculty. The Board discussed the alternatives presented in the materials, emphasizing that the proposed changes to benefits would be for new employees only who are hired after the Board acts on benefit proposals. It was suggested that the wording be revised to reflect that the changes would apply only to new hires. It was further suggested that while the 3 percent savings over 10 years that would result from the 13

benefit alternatives presented in the supplemental materials is a starting point, other areas of savings and revenue streams need to be identified. The Board noted that any benefit revisions would require a balance between being competitive in the future and across industries. Mr. Zawacki noted that the supplemental material emphasized the need to reduce and control costs balanced with the need to attract and retain employees. He further noted that the committee requested that staff present recommendations for the Board s consideration at the December 4-5, 2008, Board meetings. UPDATE: FACULTY APPOINTMENT PROCESS Mr. Zawacki reported the committee s discussion of the supplemental information mailed to the Board via overnight mail on September 18, 2008. The supplemental material included information regarding the KCTCS faculty promotion and tenure process, Faculty Appointment Survey 2007, Kentucky higher education practices, KCTCS tenure trend data, and tenure accountability. The KCTCS tenure trend data reflect a trend among KCTCS colleges toward awarding term contracts, which is similar to what is occurring in other states. The Board discussed the supplemental information and noted that students are the primary focus of the discussion. The Board also discussed the origin and rationale for the American Association of University Professor s (AAUP) tenure definition along with the current KCTCS process for awarding tenure. It was noted that the tenure process is perceived unfavorably in the African-American community. Mr. Zawacki s report also included a summary of KCTCS policies and procedures. Additional questions were raised during the discussion regarding the relationship of tenure and academic freedom and tenure s impact on opportunities for new faculty entering the job market. Mr. Zawacki reported that the Finance, Technology, and Human Resources Committee asked that staff provide additional information on the KCTCS faculty appointment and tenure process and that recommendations related to the process be presented for the Board s consideration at a future meeting. UPDATE: KCTCS QUARTERLY FINANCIAL REPORT It was noted that this item was not discussed at the September 25, 2008, Finance, Technology and Human Resources Committee meeting. Mr. Zawacki asked KCTCS Vice President Ken Walker to assist with the presentation. Mr. Walker noted that the unaudited information for the fourth quarter of fiscal year 2007-08, which ended June 30, 2008, was derived from the Administrative Financial System and reflected a balanced budget. Final, audited information will be included in the 2007-08 Financial Report and will be presented by the external auditors at the December 2008 Board of Regents meetings. The Statement of Revenues and Expenditures for the fourth quarter reflects unaudited actual program and operational expenditures compared to the 2007-08 budget approved by the KCTCS Board of Regents June 15, 2007. For the fourth quarter, total revenues amount to $651 million, 98 percent of the budgeted revenue and appropriated funds. Current fund expenditures and budget reserve through the fourth quarter of the fiscal year amount to $611 million, 92 percent of the expenditures budgeted for the year. State appropriation reflects the 3 percent budget reduction ordered by Governor Beshear in January 2008. The Statement of Net Assets reflects the unaudited overall financial position of the System and includes assets, liabilities, and net assets for the year. 14

UPDATE: TECHNOLOGY SOLUTIONS DRAFT It was noted that this item was not discussed at the September 25, 2008, Finance, Technology and Human Resources Committee meeting. Mr. Zawacki asked KCTCS Vice President Jay Box to present the update. Dr. Box updated the Board on online student registration activity. On August 13, 2008, over 16,000 enrollment transactions were submitted; and 33,000 students, faculty, and staff accessed the Oracle PeopleSoft Student Administration System. Students have access to registration 24/7, except for a monthly maintenance window, providing an uptime of over 98 percent throughout the year. Dr. Box provided fall 2008 preliminary elearning statistics, noting that fall 2008 preliminary enrollment of KCTCS distance learning online students in one or more online courses is nearly 22,000. The number of faculty with Blackboard accounts for online and blended classes in fall 2008 increased 21 percent to 3,163. Similarly, the number of faculty delivering classes completely online increased 24 percent from fall 2007. Dr. Box noted that the KCTCS Director of Visualized Learning and Innovation delivered a keynote address on Practical Applications of Simulation-Based Learning at the Interactive Digital Center (IDC) World Symposium, which was held in Irvine, California, over the summer via telepresence and holopodium technologies. The presenter, who was in Versailles, appeared holographically in front of the audience in Irvine, behind what appeared to be a traditional podium. It was noted that President McCall will use telepresence and holographic technology to make a presentation in October 2008 to more than 2,000 people who will be in Salt Lake City, Utah. Other items in the technology update include: KCTCS Interactive Digital Center being the leading training site for EON Reality Software applications, providing 3D Development Training. KCTCS Staff Working with Oracle to provide input on future software. Messaging Update. All KCTCS email accounts have been upgraded to Exchange 2007. On average, the system receives approximately 300,000 messages daily from outside of KCTCS and delivers over 750,000 internal messages daily. Online Student Evaluation of Faculty. UPDATE: FULFILLING THE PROMISE CAMPAIGN It was noted that this item was not discussed at the September 25, 2008, Finance, Technology and Human Resources Committee meeting. Mr. Zawacki asked KCTCS Vice President Tim Burcham to present an update on the Fulfilling the Promise Campaign. A full report was distributed at the meeting. As of September 19, 2008, the total number of gifts and pledges recorded is 22,618. The Fulfilling the Promise Campaign total is $86,846,719. Lead gifts since the June 13, 2008, KCTCS Board of Regents meeting include: Belcan Corporation pledged $250,000 over five years to Gateway Community and Technical College to provide support in honor of the company s founder, Ralph G. Anderson. Ten $5,000 scholarships will be awarded each year to qualifying students who have declared a major leading to an associate degree in drafting, computer aided design, or engineering technology. 15

Lourdes Hospital donated $225,000 over three years to West Kentucky Community and Technical College to continue funding for nursing positions. Western Baptist Hospital donated $225,000 over three years to West Kentucky Community and Technical College to continue funding for nursing positions. Making Connections Louisville awarded a gift of $100,000 to Jefferson Community and Technical College to assist in the operation and expansion of the Making Connections Network s Neighborhood Pipeline to Jobs Initiative. Mr. Burcham noted that an invitation to the November 1, 2008, KCTCS President s Gala and Benefactors Award Dinner was provided in the President s Report folder. At the Gala, the tenth anniversary of KCTCS will be celebrated and former Governor Paul E. Patton will be honored. A campaign goal of $100 million will be announced at the Gala as well. NEXT MEETING Chair Bean announced that the next regular meeting of the KCTCS Board of Regents would be December 5, 2008, at the KCTCS System Office in Versailles, Kentucky. ADJOURNMENT Mr. Barnes moved that the meeting adjourn. Ms. Carroll seconded the motion. VOTE: The motion was approved unanimously, and the meeting adjourned at 11:32 a.m. (ET). 12/5/08 Date Approved by the KCTCS Board of Regents Richard A. Bean, Chair KCTCS Board of Regents Johnna Reeder, Secretary KCTCS Board of Regents Michael B. McCall, Ed.D. KCTCS President 16

KCTCS Board of Regents Meeting Guests September 26, 2008 DRAFT Attachment A President s Cabinet Dr. Michael B. McCall, President Dr. Keith W. Bird Dr. Jay K. Box Mr. Timothy R. Burcham Dr. Gwendolyn G. Joseph Ms. Beth R. Hilliard Mr. J. Kenneth Walker System Office Hon. J. Campbell Cantrill Ms. Terri Giltner Ms. Billie Hardin Dr. Michael Krause Dr. Joan Lucas Dr. Gloria McCall Ms. Jean Morton Mr. Lewis Prewitt Hazard Community and Technical College Dr. Allen Goben Madisonville Community College Dr. Judith Rhodes Maysville Community and Technical College Dr. Edward L. Story, Jr. West Kentucky Community and Technical College Dr. Tena Payne Bluegrass Community and Technical College Dr. Augusta Julian Mr. Luke Taylor 17

Attachment B President s Report Board of Regents Meeting September 26, 2008 System Office Versailles, Kentucky The following information provides updates on President McCall s annual leadership initiative, FACET 2008-09. WORKFORCE COMPETITIVENESS Goal - KCTCS will enhance its capacity to meet Kentucky s current and future job needs. Target Measurement for 2008-09 KCTCS workforce education and training divisions will be reengineered to be more responsive to the needs of Kentucky s businesses and industries as evidenced by: Meetings conducted by the KCTCS President with representatives of three industry sectors to determine the KCTCS response to statewide training needs. Four industry sectors were identified for the KCTCS President statewide industry forums: coal mining, financial services, healthcare, and transportation. The first forum will be held with the coal mining industry leaders. The six colleges (Gateway Community and Technical College, Ashland Community and Technical College, Jefferson Community and Technical College, Bluegrass Community and Technical College, Somerset Community College, and Maysville Community and Technical College) that are currently delivering or developing programs for the electric utility industry met in September to develop a strategic systemwide approach to address their workforce needs. Targeted industry sector needs assessment conducted, three partnering initiatives confirmed, and a plan of action developed at all colleges. The following college industry forums have been conducted to date: West Kentucky Community and Technical College Manufacturing West Kentucky Community and Technical College Hospitality Gateway Community and Technical College Manufacturing Gateway Community and Technical College Electric Utility Forum follow-up meetings were conducted for Gateway Community and Technical College for the manufacturing and electric utility industries. A planning session was facilitated with the Action Team at Owensboro Community and Technical College to develop strategic goals to address the workforce needs of manufacturing in response to the industry forum. The E.ON U.S. kickoff meeting was held in July for the Jefferson and Bluegrass Community and Technical Colleges lineman apprenticeship program. 18

A systemwide Management/Supervisory Institute established. A survey was developed and conducted to gather data to review current offerings and capacity. A survey was also developed to solicit recommendations from the colleges to identify the components of the institute to include specific courses and assessment tools. 20 KCTCS Workforce Competiveness best practices identified, documented, and distributed to all colleges. The objective for each college, providing a best practice profile quarterly was confirmed. The template for the best practices has been implemented, and a process established to disseminate the best practices to all colleges. The objective for each college to implement a new best practice and to report outcomes by June 2009 was confirmed. Workforce Competitiveness Initiative (WCI) Teams established at all colleges. Colleges were grouped into four WCI teams: Group I: Owensboro Community and Technical College, West Kentucky Community and Technical College, Ashland Community and Technical College, and Gateway Community and Technical College Group II: Madisonville Community College, Henderson Community College, Elizabethtown Community and Technical College, and Jefferson Community and Technical College Group III: Bluegrass Community and Technical College, Bowling Green Technical College, Somerset Community College, and Maysville Community College Group IV: Hazard Community and Technical College, Big Sandy Community and Technical College, Southeast Kentucky Community and Technical College, and Hopkinsville Community College Eight colleges (West Kentucky Community and Technical College, Ashland Community and Technical College, Owensboro Community and Technical College, Gateway Community and Technical College, Madisonville Community College, Elizabethtown Community and Technical College, Henderson Community College, Jefferson Community and Technical College) are now in the WCI process and are currently confirming team members. Confirmed onsite launch of WCI with the Group III colleges (Bluegrass Community and Technical College, Bowling Green Technical College, Somerset Community College, and Maysville Community College) for September. Confirmed the onsite launch of WCI with the Group IV colleges (Hazard Community and Technical College, Big Sandy Community and Technical College, Southeast Kentucky Community and Technical College, and Hopkinsville Community College) for November. Other related efforts. A two day retreat was held August 11 and 12 at the System Office for the Group I colleges and Group II colleges. Topics included: WCI implementation plan and accountability measures, WCI project updates from Group I colleges, accountability reporting process and format, branding and marketing planning session, KCTCS Online implementation, capacity building for KCTCS Workforce Assessment Centers, and Supervisory Institute planning. 19

VIRTUAL LEARNING Goal: KCTCS will enhance the flexible delivery of workforce solutions. Target Measurement for 2008-09 KCTCS Online will be implemented and expanded as evidenced by: 24/7 delivery of the Business Administration program and the Information Technology program. The rollout schedule calls for a limited number of course modules from both the Business Administration program and the Information Technology program will be offered to a small group of students on a 24/7 basis starting the last week of January 2009. Potential students will be solicited from companies identified by KCTCS Community and Economic Development (CED) Directors. Direct marketing to employees of the selected companies will be used. The target enrollment goal is 250 students during the last week of January so that online services and course delivery processes can be tested and reviewed. During September, KCTCS CED Directors from eight colleges participating in the roll out (Ashland Community and Technical College, Elizabethtown Community and Technical College, Gateway Community and Technical College, Henderson Community College, Jefferson Community and Technical College, Madisonville Community College, Owensboro Community and Technical College, and West Kentucky Community and Technical College) identified and approached companies to consider enrolling employees into the KCTCS Online initial rollout scheduled for January 2009. Gateway Community and Technical College has discussed with Citi Group the potential of registering 40 to 50 employees for the initial January registration. In addition, KCTCS has been in discussions with McConnell Technology and Training Center regarding the use of KCTCS Online for training soldiers who have returned from service in Iraq and Afghanistan. Beginning in February, the number of course modules will be incrementally increased until late March when all course modules, including the general education courses, will be made available for enrollment. To promote KCTCS Online, KCTCS Marketing has been working with Workforce Development to create the marketing piece that the CED Directors will use for their presentations to companies. The piece will be continuously updated as new course modules become available. Competency-based curriculum delivered in modularized courses. During August 2008, the six lead colleges announced that the development of all course modules for VLI Phase I, Round 1 was scheduled to be complete by mid-october. All modules will contain a pre-test and post-test. In late September, completed modules will be submitted to a systemwide review team for a quality assurance review. 20