Board of Regents of Higher Education

Montana University System

March 26-27, 1998

MINUTES

Donaldson Commons

Montana State University-Northern

Havre, Montana

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ACADEMIC/STUDENT AFFAIRS COMMITTEE

ADMINISTRATIVE/BUDGET COMMITTEE

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REGENTS PRESENT: Jim Kaze (Chairman), Pat Davison, Colleen Conroy, Ed Jasmin, Richard Roehm, Jason Thielman, and Margie Thompson; Commissioner of Higher Education Richard Crofts

REGENTS ABSENT: None

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Approved unanimously at the May 21-22, 1998 meeting in Dillon, Montana.

THURSDAY, MARCH 26, 1998 WORK SESSION

The Board of Regents convened at 8:10 a.m. for a work session. Topics included: objectives of the work session; language revisions in the Board’s Code of Expectations; the use of "alternative sources of funding" as a topic for a Regents’ workshop in June (Regents Thompson, Roehm, and Jasmin will gather input for Commissioner Crofts to develop a workshop agenda); a request for information to determine whether Board of Regents’ Policy 940.29 was serving its intended purpose and whether that policy should be reconsidered; coordination of the Regents’ attendance at commencement ceremonies; developing a more integrated approach for selecting Regents; Frontier Conference realignment from NAIA to NCAA; the April 9, 1998 Montana Academic Forum meeting; and the April 15, 1998 Board of Education meeting in Helena.

The Board recessed at 9:00 a.m. for committee meetings and reconvened at 11:45 a.m. Roll call showed a quorum was present. Chairman Jim Kaze introduced Richard Roehm of Bozeman as the new Regent to replace Paul Boylan, whose term on the Board expired February 1, 1998.

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Regent Pat Davison MOVED that the Board approve the minutes from the December 31, 1997 conference call meeting, the January 29, 1998 regular meeting, and the March 4, 1998 conference call meeting as mailed to Board members. The motion passed unanimously (Regent Roehm abstained from voting).

CONSENT AGENDA

Staff Items

ITEM 98-1000-R0398—Staff; The University of Montana—Missoula

ITEM 98-1001-R0398—Resolution Concerning the Retirement of David W. Weber, Professor of Finance, School of Business Administration; The University of Montana—Missoula

ITEM 98-1500-R0398—Staff; Montana Tech of The University of Montana

ITEM 98-1900-R0398—Staff; Helena College of Technology of The University of Montana

ITEM 98-2000-R0398—Staff; Montana State University—Bozeman

ITEM 98-2001-R0398—Retirement of John E. Drumheller, Department of Physics; Montana State University—Bozeman

ITEM 98-2002-R0398—Retirement of Douglas Herbster, Department of Education; Montana State University—Bozeman

ITEM 98-2003-R0398—Retirement of Pierce Mullen, Department of History and Philosophy; Montana State University—Bozeman

ITEM 98-2004-R0398—Retirement of Michael G. Becker, Department of English; Montana State University—Bozeman

ITEM 98-2300-R0398—Staff; Agricultural Experiment Station

ITEM 98-2400-R0398—Staff; Extension Service

ITEM 98-2700-R0398—Staff; Montana State University—Billings

ITEM 98-2701-R0398—Recommendation to Confer Title of Professor of Physics Emeritus upon Dr. Alan F. Bentley; Montana State University—Billings

ITEM 98-2800-R0398—Staff; Montana State University—Northern

ITEM 98-2850-R0398—Staff; Montana State University College of Technology—Great Falls

Other Items

ITEM 98-003-R0398—Approval of 1997-1999 Collective Bargaining Agreement Covering College of Technology Employees Represented by the International Union of Operating Engineers and #400; Montana University System

ITEM 98-101-R0398—Rural Physician Incentive Program; Office of the Commissioner of Higher Education

Amendments to Staff Items:

ITEM 98-100-R0398: Addition to agenda; Joyce A. Scott, Ph.D., Deputy Commissioner for Academic and Student Affairs, effective July 1, 1998.

ITEM 98-1000-R0398: On page 1, change Kraig A. Paulson’s salary to $48,000 with no stipend, and David Reeves’ salary to $35,000 with no stipend.

On page 4 (replacement page) under the "Effective October 1, 1997" column, change Alex Capdeville’s salary from $71,001 to $73,000.

On page 10 (replacement page), change Kendall D. Hubbard’s entry to show inclusion of $9,600 stipend.

ITEM 98-1500-R0398: Addendum: William Franklin Gilmore, Ph.D., Chancellor of Montana Tech of The University of Montana, effective July 1, 1998.

ITEM 98-2800-R0398: Addendum: Michael Rao, Ph.D., Chancellor of Montana State University-Northern, effective July 1, 1998.

¨ Regent Jason Thielman moved that the Board approve all items on the Consent Agenda (Staff and Other) as amended. The motion passed unanimously.

STUDENT REPORTS

Brad Schlepp, MAS (Montana Associated Students) President, announced that MAS’s recommendation for the new student regent to replace Jason Thielman was Kim Cunningham from MSU-Billings. Mr. Schlepp also introduced several study body presidents and vice-presidents for the upcoming year.

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COMMITTEE REPORTS

Academic and Student Affairs Committee

The Academic and Student Affairs Committee met at 9:00 a.m. in the Library Conference Room at Montana State University-Northern in Havre. Members present were Regents Davison (chair), Roehm, Thielman, and Thompson. Chairman Kaze asked Regent Davison to present the committee’s report to the full Board.

ANNOUNCEMENTS

The following Level I changes were approved by the Commissioner’s Office (March 24, 1998 memo from Deputy Commissioner Stuart Knapp on file):

The University of Montana-Missoula

Proposal to change the name of an option in the BSBAd degree in Business Administration from "Decision Sciences" to "Information Systems."

Proposal to change the name of the "Soviet Studies" minor to "Russian Studies."

Proposal to extend The University of Montana’s Off-Campus MBA Program to Montana State University-Bozeman. MSU-Bozeman’s faculty will teach some of the program courses that will originate from the Bozeman campus. Recognizing the participation of MSU-Bozeman’s faculty in UM’s Off-Campus MBA Program will be important to both institutions.

Helena College of Technology of The University of Montana

Proposal to change the name of the AAS degree in "Carpentry/Construction Trades" to "Construction Technology."

College of Technology, Montana Tech of The University of Montana

Proposal to add a "Human Resources" option to the AAS degree in "Accounting Technology."

Montana State University-Bozeman

Proposal for two department name changes:

Change the name of "Department of Soil, Land and Water Resources" to the "Department of Land Resources and Environmental Sciences."

Change the name of the "Center for Gerontology" to "Montana Center on Rural Aging."

Montana State University-Billings

Proposal to offer an AAS degree in "Hospitality Services." The program was developed as a direct result of requests from public and private businesses in the Billings community to meet their immediate training needs. The program will be submitted under the normal program approval process within two years.

Flathead Valley Community College

Proposal to change the title of the AAS degree in "Computer Applications" to "Management Information Systems."

SUBMISSION AGENDA

ITEM 98-201-R0398—Approval of Proposal to Implement the Associate of Applied Science Degree and a One-Year Certificate in Early Childhood Education; Dawson Community College

ITEM 98-301-R0398—Approval of Proposal to Implement the Associate of Applied Science Degree in Building Trades; Flathead Valley Community College

ITEM 98-1002-R0398—Approval of Proposal to Offer a Certificate in Barber-Styling; College of Technology, The University of Montana—Missoula

ITEM 98-1003-R0398—Approval of Proposal to Add an Option in Terrestrial Sciences to the Bachelor of Science Degree in Resource Conservation; The University of Montana—Missoula

ITEM 98-1004-R0398—Approval of Proposal to Add an Option in Land and People to the Bachelor of Science Degree in Resource Conservation; The University of Montana—Missoula

ITEM 98-1005-R0398—Approval of Proposal to Add a New Integrated Option in Media Arts to the Master of Fine Arts Degree; The University of Montana—Missoula

ITEM 98-1006-R0398—Approval of Proposal to Add an Option in Dance to the Bachelor of Arts Degree in Fine Arts; The University of Montana—Missoula

ITEM 98-1007-R0398—Approval of Proposal to Add an Option in Human Biological Sciences to the Bachelor of Arts Degree in Biology; The University of Montana—Missoula

ITEM 98-1008-R0398—Approval of Proposal to Add an Option in Rural and Environmental Change to the Bachelor of Arts Degree and Master of Arts Degree in Sociology; The University of Montana—Missoula

ITEM 98-1009-R0398—Approval of Proposal to Add an Option in Biochemistry to the Bachelor of Science in Chemistry; The University of Montana—Missoula

ITEM 98-1010-R0398—Approval of Proposal to Add an Option in Higher Education to the Master of Education Degree in Educational Leadership; The University of Montana—Missoula

ITEM 98-1901-R0398—Approval of Proposal to Offer a Two-Year Associate of Applied Science Degree in Construction Technology; Helena College of Technology of The UM

ITEM 98-2005-R0398—Authorization for the Department of Plant Science to Offer an Option in Turfgrass Science within the Horticulture Major; Montana State University—Bozeman

ITEM 98-2006-R0398—Authorization for the Department of Entomology to Offer an Undergraduate Minor in Entomology; Montana State University—Bozeman

ITEM 98-2801-R0398—Approval of Proposal to Offer the Health Promotion Major; Montana State University—Northern

ITEM 98-2802-R0398—Approval of Proposal to Offer the Agricultural Operations Technology Degree jointly with MSU-Bozeman; Montana State University—Northern

ITEM 98-2805-R0398—Authorization to Offer the Bachelor of Applied Science Degree; Montana State University—Northern

Regent Davison briefly reviewed the submission items and noted that ITEM 98-1010-R0398 had been withdrawn from the agenda, and action was being deferred.

Following brief discussion, the Board concurred with the committee’s recommendation to move all items on the Submission Agenda (with the exception of ITEM 98-1010-R0398) to the Action Agenda at the May 21-22, 1998 meeting in Dillon.

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The Board recessed at 12:00 noon for a lunch/meeting with student representatives.

The Board reconvened at 1:40 p.m.

College Presidents’ Initiative to Reduce Binge/Harmful Drinking

Dr. Jeff Linkenbach, an Assistant Professor from Montana State University-Bozeman, announced that a pledge had been signed earlier by Governor Racicot and higher education leaders to reduce harmful/binge drinking in college students by developing campus-community partnerships. The program was initiated through colleges across the state joining together as the Montana Network for College Substance Abuse Prevention, which recognizes the importance of involving higher education leaders to provide visibility to the effort by involving local communities. The University of Montana had its community-wide meeting in early February, and Montana State University’s meeting was held in mid-March. Teams developed from these and other meetings in towns where colleges and universities are located will participate in a two-day training session in June to develop action plans for addressing issues in local communities. A key component of the program is a three-year social marketing grant awarded to MSU’s Department of Health and Human Development from Montana Traffic Safety. The purpose of the grant is to reduce impaired driving in 18- to 24-year-olds through a media campaign that promotes the healthy norms of this population. Through sound research and community partnerships, MSU expects to reduce alcohol-related crashes in the next three to five years.

The Regents heard additional remarks about the project from Governor Marc Racicot, MSU President Michael Malone, UM President George Dennison, MAS President Brad Schlepp, and Dr. William DeJong, Director of the Higher Education Center for Alcohol and Drug Prevention, who spoke about the environmental approach to prevention (handouts on file).

Following the presentations, Regent Ed Jasmin said it would be helpful for the Board to receive periodic updates on the program.

Western Cooperative for Educational Telecommunications

Commissioner of Higher Education Richard Crofts introduced Sally Johnstone, Director of the Western Cooperative for Educational Telecommunications (WCET). Ms. Johnstone provided an overview of the WCET, which was established by the Western Interstate Commission for Higher Education (WICHE). The WCET serves as a central clearinghouse for information and expertise; a leader in facilitating multi-state projects in telecommunicated education; an advocate for effective policies affecting educational technology; and an evaluator and researcher on quality uses of educational telecommunications. Following her presentation, Ms. Johnstone distributed the WCET’s 1997 annual report and a consumer’s guide on distance education (on file).

Following discussion, Regent Jasmin asked what efforts were going on in Montana aside from the Western Governors’ University. Ms. Johnstone said she would provide that information through Commissioner Crofts to share with the Regents.

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Administrative/Budget Committee

The Administrative/Budget Committee met at 9:00 a.m. in Donaldson Commons at MSU-Northern in Havre. Members present were Regents Jasmin (chair) and Kaze. Chairman Kaze asked Regent Jasmin to present the committee’s report to the full Board.

SUBMISSION AGENDA

ITEM 98-002-R0398—Montana Tuition Assistance Program (MTAP) Eligibility Requirements (NEW Board Policy)

Regent Jasmin said ITEM 98-002-R0398 proposed a new Board of Regents’ policy to modify the preliminary eligibility requirements for the Montana Tuition Assistance Program (MTAP) that were established by the Task Force on Financial Aid Reform. The item presented a list of eight criteria.

Regent Jasmin said ITEM 98-002-R0398 would be revised prior to the May 1998 Board meeting to address questions that were raised during the committee’s discussion.

ITEM 18-006-R1077—High School Honor Scholarships; Montana University System (Board Policy 501.1 REVISED), and ITEM 18-005-R1077—Fee Waivers; Montana University System (Board Policy 940.13 REVISED)

Regent Jasmin said ITEMS 18-006-R1077 and 18-005-R1077 would be revised prior to the May 1998 meeting to include specific references to Dawson, Flathead Valley, and Miles community colleges.

Arlene Hannawalt, Director of the Montana Guaranteed Student Loan Program, said the presidents and financial aid officers at Dawson, Flathead Valley, and Miles community colleges were in agreement with the policy change and were looking forward to being included in the program.

ITEM 98-004-R0398—Collaborative Programs; Montana University System (NEW Board Policy)

Regent Jasmin said ITEM 98-004-R0398 was a new Board of Regents’ policy that proposed to make the best use of educational resources and provide maximum educational opportunity. The policy would authorize collaborative programs among campuses of the Montana University System where this was feasible and beneficial to the student. Excluded from the policy were continuing education, extension courses, or independent simultaneous registration at two campuses of the university system.

A student participating in a collaborative program would only apply and register at his/her primary institution. All courses that were part of a collaborative program would be placed on the school student systems as course offerings, which would allow the student to register for the participating collaborative course as part of his/her regular registration. Student services would be delivered by the primary institution.

ITEM 18-004-R1077—Fee Waivers; Montana University System (Board Policy 940.13, Page 6, Section n., Athletic Fee Waiver)

Regent Jasmin said ITEM 18-004-R1077 was an addition to the Submission Agenda from Regent Thielman. The proposed revision to the policy section in question would place a numerical limit on athletic fee waivers to ensure they did not grow too excessive in comparison to other constituent groups. The proposed revision to Policy 940.13 would insert the following language: "The total number of athletic fee waivers granted by the Montana University System is limited to 240 FTE for out-of-state students (registration, incidental and out-of-state fees) and 410 FTE for in-state students (registration and incidental fees)."

Regent Thielman said 31.6% of all fee waivers awarded in the Montana University System were awarded for the purpose of athletics. He said five other categories—high school honors, Indian students, faculty, staff, and veterans¾ combined for 30.7% of the total amount of fee waivers awarded.

President Dennison wondered why the issue would be handled in a piecemeal fashion rather than putting it in the context of a review of athletics. He said it was a complex issue, and a better approach would be to fit it within a larger study.

Commissioner Crofts said the Administrative/Budget Committee had reviewed some information on athletic budgets during its discussion of MSU-Northern’s football proposal at the January 29, 1998 Board meeting. At that time, there was interest in reviewing those budgets as to their appropriateness, adequacy, etc. Commissioner Crofts said they were currently engaged in some work on the allocation methodology that involved not only athletics but other issues as well.

Regent Thielman suggested that perhaps a subcommittee of the Regents could take a look at this issue.

Chairman Kaze pointed out that previous studies of athletics had produced no changes, and he did not believe they should undertake another study unless that study had as part of its agenda a valid purpose regarding change or movement into the future.

Montana Tech Chancellor Lindsay Norman asked whether they were talking about reevaluating athletics or fee waivers. If it were the latter, he did not see how they could isolate only athletic fee waivers.

Regent Thielman said in light of recent newspaper articles on increased athletic spending, he felt it was a legitimate concern that deserved examination. He felt the Board should give the issues a decent discussion.

Chairman Kaze said he shared Regent Thielman’s concern, but he was not sure this was the right way to resolve the issue. They needed to look at both the expenditure and revenue sides of athletics.

Following further discussion, Regent Davison moved that ITEM 18-005-R1077 be removed from the Submission Agenda. A roll-call vote showed the motion approved by a 5-to-2 vote; Regent Thielman and Chairman Kaze voted against the motion.

In response to a question from Regent Jasmin, Commissioner Crofts said two issues were discussed at the January 1998 meeting: (1) an examination of whether there were ways they could improve the accounting or representation of athletic expenditures on the various campuses in order to compare the items more fairly; and (2) an examination of comparable regional data with an eye toward conference affiliation to see what other schools in the same conferences were spending on athletics.

Regent Davison said he believed there was a lack of knowledge about athletic programs in general, and the Regents should be brought up to speed on current programs before any lengthy discussions took place. He asked that some easily understood information be put together about the various conferences and some of the changes that were being contemplated in NCAA and NAIA.

Regent Jasmin suggested Commissioner Crofts report back to the Board on the two issues he mentioned previously, and they could proceed from that point.

ITEM 98-006-R0398—Montana Family Education Savings Program (NEW)

Rod Sundsted, Associate Commissioner for Fiscal Affairs, said the program’s oversight committee would be meeting and approving rules to bring to the Board. He noted that some sections in ITEM 98-006-R0398 were highlighted, which meant decisions still needed to be made.

Following further discussion, the Board concurred with the committee’s recommendation to move Submission Agenda ITEMS 98-002-R0398, 18-006-R1077, 18-005-R1077, 98-004-R0398, and 98-006-R0398 to the Action Agenda at the May 1998 meeting.

CONSENT AGENDA-ACTION

ITEM 98-1013-R0398—Certificate of Completion, Replace Roof at Turner Hall, Series B and C 1995 Facilities Improvement and Refunding Revenue Bonds; The University of Montana-Missoula

ITEM 98-1014-R0398—Certificate of Completion, Replace Boilers at Craighead/Sisson, Series B and C 1995 Facilities Improvement and Refunding Revenue Bonds; The University of Montana-Missoula

ITEM 98-1502-R0398—Authorization to Expend Student Computer Fees; Montana Tech of The University of Montana

ITEM 98-2007-R0398—Authorization to Expend Student Equipment Fees; MSU-Bozeman

Following brief discussion, Regent Jasmin moved that the Board concur with the committee’s recommendation to approve Consent Agenda ITEMS 98-1013-R0398, 98-1014-R0398, 98-1502-R0398, and 98-2007-R0398 on the Action Agenda. The motion passed unanimously.

ACTION AGENDA

a. ITEM 98-1011-R0398—Authorization to Sell Approximately 100 Acres of Land Commonly Known as Fort Missoula; The University of Montana-Missoula

Regent Jasmin said ITEM 98-1011-R0398 would authorize The University of Montana-Missoula to sell approximately 100 acres of land at Fort Missoula to the City of Missoula.

President Dennison referred to a packet of material (on file) that was distributed to the Regents. He said they had followed the statutory procedures in every detail. There would be no buy/sell agreement until after the Land Board had taken its action. President Dennison said the City’s bid was for this portion of land to be used for play fields and recreation. The funds being used to acquire this were open-space bond funds. If any funds resulted from a sale by the City, those would also have to be used for open space. Also, the Administrative/Budget Committee asked that UM determine whether there was any type of mineral reservation and whether that would affect the appraised value of the land.

In response to a question from Regent Jasmin regarding $400,000 in net proceeds, President Dennison said those would go into an endowment for scholarships. He said they would not use the principal, which would be kept in an endowment. Though it would be put with the endowment the UM Foundation managed, it would continue to be viewed as an asset of the university.

Chairman Kaze referred the Regents to a March 19, 1998 (on file) letter from the "Save the Fort" group that strongly supported the land sale. Also, Mike Kadas, Mayor of the City of Missoula, and Bruce Bugbee, President of the American Public Land Exchange, had answered questions during the committee meeting and were available to answer further questions.

In response to a question from Regent Davison, Chairman Kaze said the committee recommended approval of the authorization to sell the 100 acres subject to the Land Board review, getting the buy/sell agreement in writing, and satisfying the question on minerals. He said those were the conditions suggested by the committee.

Following further discussion, Regent Jasmin MOVED that the Board concur with the committee’s recommendation to approve ITEM 98-1011-R0398 subject to approval by the Land Board, clarification of the mineral interests and how those would affect the appraisal, and a written buy/sell agreement that would come back to the Board after the Land Board’s review. The motion passed UNANIMOUSLY.

b. ITEM 98-1012-R0398 - Naming of the Leland M. Yates Chemistry Stores Building; The University of Montana-Missoula

Regent Jasmin said ITEM 98-1012-R0398 requested authorization to name the new Chemistry Stores Building after Leland M. Yates, who served the Department of Chemistry and The University of Montana-Missoula for 29 years.

Following brief discussion, the Board CONCURRED with the committee’s recommendation to approve ITEM 98-1012-R0398. The motion passed unanimously.

c. ITEM 98-1015-R0398 (REVISED)—Authorization to Proceed, Series E 1998 New Money Issue; The University of Montana-Missoula

President Dennison said that based on additional discussions and consideration, The University of Montana was reducing its requested amount from $46,320,000 to $40,025,000. President Dennison reviewed the revised project list and noted that any project requiring a mandatory fee would require student participation.

President Dennison said the following revisions were being made to the project list:

For UM-Missoula, Family Housing Renovation for $2,000,000 was taken off the list; Replacement, Dornblaser Stadium for $4,200,000 was taken off the list; the amount for the Information Technology Resource Center was increased from $475,000 to $630,000.

For Montana Tech-UM, Renovation of the Greens was added for $750,000.

For Western Montana College-UM, Land Acquisition was changed to Parking, with no change to the amount of $145,000.

For Helena College of Technology of The UM, Residence Hall for $4,000,000 was taken off the list.

The total of the project list was reduced from $46,320,000 to $45,025,000.

Changes to the accompanying bond resolution included a change on Page 2, Line 9, from $55,000,000 to $45,000,000; and on Page 3, next-to-last line, $48,295,000 to $40,025,000.

Following further discussion, Regent Jasmin MOVED that the Board concur with the committee’s recommendation to approve ITEM 98-1015-R0398 (REVISED) with the amendments to the project list and the bond resolution. The motion passed UNANIMOUSLY.

d. ITEM 98-1503-R0398—Authorization to Exchange Real Property with Joseph and Eleanor Chelini of Butte, Montana; Montana Tech of The University of Montana

Regent Jasmin said ITEM 98-1503-R0398 would provide the opportunity for Montana Tech to exchange eight campus-owned lots for eight lots owned by Joseph and Eleanor Chelini in the Big Butte Addition of Butte-Silver Bow County.

Montana Tech Chancellor Lindsay Norman reviewed the exchange for the Regents and displayed some diagrams that noted the location of the lots. Chancellor Norman said it was a straight transfer, and no money would change hands. Instead, they were consolidating some holdings that should make them more valuable.

Commissioner Crofts noted that Chief Legal Counsel LeRoy Schramm (March 26-27, 1998 memo to the Board on file) recommended the following language be added to ITEM 98-1503-R0398: "The Board of Regents of Higher Education, based on value received and the benefit of a consolidation of land holdings, concludes that the exchange of property in Butte, Montana, between the Montana University System and Joseph and Eleanor Chelini is in the best interests of the university system and is hereby approved."

Following discussion, Regent Jasmin MOVED that the Board concur with the committee’s recommendation to approve ITEM 98-1503-R0398 subject to insertion of the language recommended by Chief Counsel Schramm. The motion passed UNANIMOUSLY.

e. ITEM 98-1504-R0398—Authorization to Purchase Real Property in Connection with the Residence Hall Construction Project; Montana Tech of The University of Montana

Montana Tech Chancellor Lindsay Norman said the construction of a new dormitory at Montana Tech had been bonded and approved. He used a diagram to show where the proposed dormitory construction would take place. The architect and others suggested it should be sited there for construction reasons, stability reasons, etc. Chancellor Norman indicated the location of a private residence currently occupied by two elderly women who were good friends of the college. After a long process of negotiation, the women agreed to sell their property to the college. Chancellor Norman said Montana Tech was proposing to purchase the property from unexpended plant funds for $60,000. The Administrative/Budget Committee recommended that a second appraisal be obtained and that final approval be delegated to Commissioner Crofts.

Following discussion, Regent Jasmin MOVED that the Board concur with the committee’s recommendation to approve ITEM 98-1504-R0398 subject to receipt of a second appraisal, with delegation to Commissioner Crofts for final approval. The motion passed UNANIMOUSLY.

e. ITEM 98-1601-R0398—Authorization to Complete Land Exchange (Revised Appraisal); Western Montana College of The University of Montana

Regent Jasmin said ITEM 98-1601-R0398 would authorize Western Montana College to complete the Vigilante Park land exchange with the City of Dillon. The item was being returned to the Regents because the Land Board required a complete versus a limited property appraisal. Those full appraisals of the college and city land had been obtained.

Commissioner Crofts said Chief Legal Counsel LeRoy Schramm (March 26-27, 1998 memo to the Board on file) recommended the addition of the following language: "The Board of Regents of Higher Education, based on value received, the existence of a reversionary clause protecting Montana University System interests, a lessening of potential liability, the benefit of a consolidation of land holdings and the clarification of borders, concludes that the exchange of property within Vigilante Park between the university system and the City of Dillon is in the best interests of the university system and is hereby approved."

Following discussion, Regent Jasmin MOVED that the Board concur with the committee’s recommendation to approve ITEM 98-1601-R0398 subject to insertion of the language recommended by Chief Counsel Schramm. The motion passed UNANIMOUSLY.

ITEM 98-001-R0398--Inventory and Validation of Fees; Montana University System

Commissioner Crofts said the Regents had received detailed packets of information that included proposals from the two universities, along with summaries. In November 1996, the Regents gave preliminary approval to tuition rates for the year they were in at that time, plus the following year. Also considered at that time were fees for The University of Montana for that two-year period. The tuition rates were subsequently approved after the 1997 legislative session. With regard to tuition rates for next year, Commissioner Crofts said they were essentially confirming an earlier decision. He said the fees for The University of Montana were the same as those proposed in November 1996, with one minor increase of $5.00. Commissioner Crofts said the fees from Montana State University for next year had not been before the Regents.

Laurie Neils, Director of Accounting and Budget, reviewed two handouts (on file): (1) "Montana University System Peer Tuition and Fees Comparisons"; and (2) schedules that provided an analysis of the mandatory tuition and fees for both universities. Ms. Neils said the tuition and mandatory fees submitted by The University of Montana were those approved by the Board a year ago and were reflected in the schedules. She said the overall weighted average for UM for undergraduate resident students as submitted by UM was a 5.7% increase and 6.1% for all students. Ms. Neils noted those figures were for both tuition and fees. The second page of the schedule presented the mandatory fees and some miscellaneous fees broken down by components. Ms. Neils said she was not aware of anything else UM planned to bring forward that would change the schedules that were mailed to the Board, except possibly the health insurance premium that would come forward this summer after the consortium made a determination of what that would be.

Ms. Neils said the weighted average for Montana State University for undergraduate resident students was an increase of 9.9% and 9.3% for all students. Referring to the breakdown of mandatory and miscellaneous fees, Ms. Neils noted the network service fee was new. She said Montana State University would be bringing two fees forward at the May 1988 meeting that would change the current schedules, and those were for room and board rates at MSU-Billings and MSU-Northern.

Regent Davison (acting as chair in Chairman Kaze’s temporary absence) suggested they reserve any discussion of the network service fee until they had all the questions and discussions about the other fees answered.

President Malone said the complicating factor was the network service fee on the MSU campuses. He noted the network service fee rates were there for submission and discussion purposes. On all of MSU’s campuses, those rates were still under discussion as to the exact amount.

Following discussion, MAS President Brad Schlepp distributed a summation of tuition and fees created by the Associated Students of Montana State University (on file). He said he wanted to bring the Regents’ attention to the non-mandatory fee increases in various programs. It was something he thought they should take a look at and also determine whether those fees were being spent on their intended purposes.

Commissioner Crofts said that perhaps they could work with Mr. Schlepp in advance of the May 1998 meeting to come up with some better data on fees for both required and non-required courses, taking into consideration issues such as financial aid and how much income was generated by fees. For the data to be useful, it needed to be presented in more understandable terms.

Regent Davison agreed that the data presented could be misleading. He said they needed to get more details and meaningful information before any conclusions were reached. They also need to consider all campuses, not just Bozeman.

Following further discussion, the Board recessed at 4:55 p.m. for a meeting with faculty representatives.

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FRIDAY, MARCH 27, 1998

The Board reconvened at 8:45 a.m.

Commissioner Crofts said he wanted to turn their attention to the network service fee for the Montana State University campuses. He said to talk about that fee they needed to take a step back and talk about the costs of Banner implementation. He referred the Regents to two documents from the universities (on file) that summarized those costs and asked Presidents Dennison and Malone to comment on the sources of funding for the Banner implementation on their campuses.

President Dennison referred the Regents to the second page of UM’s schedule and reviewed the sources of funding that were listed, which included state bond proceeds, Digital Services financing, state appropriation, and designated and auxiliary funds. In response to a question from Chairman Kaze, President Dennison said the unfunded portion amounting to $885,302 would be included in the $5 million portion of the bond issue discussed the previous day.

In response to a question from Commissioner Crofts, President Dennison said UM was not proposing a student fee related specifically to the Banner implementation cost.

Following discussion of UM’s costs, President Malone reviewed MSU’s proposed costs to implement Banner on the MSU campuses. He said that finding ways to fund the Banner implementation was a difficult process for everyone involved, and much discussion had already taken place to discuss the available options. He said they were looking at a new fee or a reallocation of old fees, which had generated much discussion on the MSU campuses.

President Malone reviewed MSU’s schedule and said they had identified initial project costs of $9.6 million for the MSU campuses. The schedule showed $800,000 provided by the state, $800,000 bonded by the state and repaid by MSU, and the remainder provided by university bonds. In allocating the project costs, they worked on the principle that every unit of Montana state University would contribute as near as possible to paying their fair share of the cost.

Lengthy discussion followed on MSU’s proposed network service fee (on submission) and ITEM 98-2008-R0398—Authorization to Proceed with the Issuance and Sale of Series F 1998 Revenue Bonds; Montana State University-Bozeman.

ITEM 98-2008-R0398 requested that the Board adopt the preliminary bond resolution providing authorization to proceed with the Series F 1998 Revenue Bonds to be issued for MSU and authorize the Commissioner and MSU to proceed with the financing of management information systems with the bond proceeds.

When the Board reconvened after a 20-minute break, discussion continued on ITEM 98-2008-R0398.

Regent Conroy MOVED that the Board approve ITEM 98-2008-R0398, which would give Montana State University-Bozeman the authorization to proceed subject to the amendments suggested during the prior discussion: (a) The words "planning for" would be inserted after the words "proceed with" in the third line of the first sentence under "THAT"; (b) all revenue streams would be identified, including the extent to which student fees would be contributed; and (c) final approval would be required by the Board prior to the actual marketing and sale of the bonds. The motion passed UNANIMOUSLY.

The Board also CONCURRED with the committee’s recommendation to move ITEM 98-001-R0398 (Inventory and Validation of Fees) to the Action Agenda at the May 1998 meeting.

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OLD BUSINESS

ITEM 98-005-R0198—Code of Expectations for the Montana Board of Regents of Higher Education; Montana University System

Commissioner Crofts said ITEM 98-005-R0198 had been on submission at the January 1998 meeting. Since that time, the following revisions were recommended:

Revise the second sentence under #1 to read: "We do not lobby one another regarding upcoming votes, but sharing one’s concerns or positions is appropriate and encouraged."

Revise #2 to read: "We each take personal responsibility for making decisions in the long-term best interests of students and the people of Montana."

Revise #6 to read: "We view the Student Regent as one who is equal to other Regents, though different in the sense that his or her responsibility is to represent the student perspective in the Board’s commitment to the holistic mission of the Montana University System."

Regent Jasmin MOVED that ITEM 98-005-R0198 be approved as amended. The motion passed UNANIMOUSLY.

b. RITC (Regents’ Information Technology Committee) Status Report

Commissioner Crofts reviewed his March 18, 1998 response to MT PRRIME Project Director David Ashley, who had written a January 15, 1998 letter concerning the relationship and issues surrounding MT PRRIME as it affected the Montana University System. Commissioner Crofts said a major portion of Mr. Ashley’s letter focused on questions and information that must be decided by MT PRRIME before the system could be implemented. Commissioner Crofts said although there had been some moments of frustration, they were continuing to try to work together to resolve any conflicts. He said they had also suggested that one person be named to serve as a contact point between the university system and MT PRRIME. Some of the issues they were still trying to resolve focused on the level of detail the system would provide and at what frequency. Commissioner Crofts said it was critical to have those issues resolved quickly.

Commissioner Crofts said he had also received a request from Dave Ashley to extend the employment period of the two full-time employees designated by the universities to work as liaisons with MT PRRIME. Both presidents had approved extending that employee period through the end of September.

NEW BUSINESS

a. Reconsideration of Board Policy

Regent Thielman moved that the Board reconsider Policy 940.29, which stated: "Residents of Montana who take additional courses after earning a baccalaureate degree will be charged 120% of the resident undergraduate rate. Nonresident students will pay the resident assessment plus a nonresident fee equivalent to the nonresident graduate incidental fee."

Regent Thielman felt that since the policy had been in place for a year it was appropriate to review whether it was successful in accomplishing its original mission, which primarily was to prevent people from taking advantage of an opportunity to get a master’s degree at an undergraduate cost or at least a portion thereof. Perhaps they could accomplish that objective with a more direct policy. With the current policy, they were not hitting the intended group. Instead, they were hitting people in areas such as teacher education or people taking just a few courses to improve their job performance. Regent Thielman said they needed some solid numbers from the campuses to determine whether the policy was successful.

Chairman Kaze said he was hesitant to change the policy since it had only been in effect for a year.

Following discussion, Regent Jasmin suggested they gather all the information available so they could make an informed decision.

Regent Thielman said they should not act on the policy at the May 1998 meeting if they did not have the proper information.

Regent Thielman’s MOTION TO RECONSIDER Board of Regents’ Policy 940.29 at the May 1998 or a future meeting, upon receiving adequate information from the campuses and Commissioner’s Office on whether the policy was achieving its objective, PASSED BY A 6-TO-1 vote. Chairman Kaze voted against the motion.

b. 2001 Budget Priorities

Commissioner Crofts reminded the Regents of the April 15, 1998 meeting of the Board of Education at the Capitol in Helena for the entire afternoon. Governor Racicot’s intention was to expand upon the use of the Board of Education in terms of developing budget priorities and building a single unified budget request governing all of education. The major purpose of the meeting was to take a first look at the major budget issues for K-12 and the university system. Subsequently, the Governor expected the Board of Education to continue to work on priorities and react to some proposals he would bring forward. Before the executive budget was finally put together, the Board of Education would approve a unified budget request that would be incorporated into the executive budget.

Commissioner Crofts said he would like to put before the Regents a list of possible budget priorities for the Montana University System and suggest an approach they might take for the upcoming Board of Education meeting. He also asked that Presidents Dennison and Malone speak briefly about the budget priorities being developed within the two universities.

Commissioner Crofts said the priority list he was distributing (on file) was largely the result of the last Policy Committee meeting. He said some of the items might be incorporated in university budgets, and others could be pursued from a system perspective. The list included the following unranked potential priorities:

student financial aid (Montana Tuition Assistance Program from last session);

support for the Montana economy: research and development, business support services, state’s economic development plan, workforce development;

academic programs and services delivered when and where Montanans needed them at a price they could afford: technology;

recovery of dollars lost in per-student expenditures supported by the state;

continued enhancement of undergraduate education as planned in the collaborative agreements; and

library initiative with emphasis on electronic access

Chairman Kaze said Commissioner Crofts had identified for the Board’s consideration as few as three and as many as six issues that were budget priorities. Those included an economic development package, an access issue that may include the new student general fund support as well as the MTAP program, and the general fund support level for Montana students related to quality enhancement.

Following discussion, Presidents Malone and Dennison reviewed the 2001 biennial budget priorities and goals for their respective universities (UM document on file). President Dennison also distributed draft proposals for a "Partnerships in Education Initiative" and a "Board of Regents Academic Excellence Scholarship" (both documents on file).

Regent Jasmin said they had heard a lot of good ideas and wondered how they were going to incorporate those into a unified presentation prior to the April 15 Board of Education meeting.

Commissioner Crofts said they would be doing a lot of work within the next two weeks. He thought there was a good amount of consistency among everything on the table, and they would be working on a format to present all the priorities with a consistent approach. Commissioner Crofts said his office would provide the Regents with information on the system’s presentation to the Board of Education. However, they needed to make sure the Regents agreed with the direction outlined by Commissioner Crofts and the presidents.

Regent Jasmin suggested the Board hold a work session sometime after the April 15 Board of Education meeting to discuss the list of priorities.

COMMISSIONER’S REPORT

Commissioner Crofts referred to his March 25, 1998 memo to the Regents (on file) and briefly reviewed the following: the Flathead Valley Community College/Lincoln County conflict; offering of the MBA by UM-Missoula in Bozeman; the work of the Committee to Keep the Six Mill Levy; the Task Force on Foundations; providing a fee waiver for the annual winner of the Montana Teacher of the Year award; ongoing discussions about a community college merger with the university system; the committee appointed to help design a policy governing competition between units of the university system and the private sector; the possibility of offering voter registration on the campuses; and the next meeting of the Montana Academic Forum, which would focus on academic advising.

CAMPUS REPORTS

The University of Montana

President Dennison said UM had been engaged in a strategic planning process and hoped to bring that to a conclusion so they could discuss it with the Regents at the May 1998 meeting. Also, the UM campuses had issued an RFI in the newspapers to receive assistance in responding to Senate Bill 390 (deregulation of the electric industry as of July 1, 1998) so they could enhance or use what they already had to leverage their energy costs.

Chairman Kaze thanked Chancellor Daehling and his staff for hosting the Regents’ meeting and for MSU-Northern’s hospitality.

With no other business to come before the Board, the meeting adjourned at 12:15 p.m.

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