ACBO Board of Directors
Strategic Planning Meeting
12/1/2011
RECORD OF THE MEETING
In Attendance:
Bonnie Dowd, President-Elect (Chairing); Jeanette Gordon, Region 7; Ed Maduli, Region 5; Fred Williams, Region 8; Steve Crow, Region 1; Sharlene Coleal, Region 6; Theresa Scott, Region 4; Kathy Blackwood, Region 3; and Sue Rearic, Region 10.
On the Phone:
Jon Sharpe, Region 2; and Tom Burke, President.
Not Present:
Jim Buysse, Region 9.
Review of Agenda and Materials:
The agenda was approved and members reviewed related documents including the Constitution, By-Laws and Strategic Plan; the Election Cycle Grid and the Roster of Board Members. Changes were noted, and an updated Roster is included with these minutes.
Association Constitution and By Laws:
The Constitution of the Association was last updated in 2007 and the By Laws in 2008. Members discussed and concurred that both should be incorporated into one overall document including a Constitution and Operating Procedures. Members reviewed and made substantial changes to both documents. Bonnie Dowd agreed to provide an edited version for members’ review at the January Meeting. Generally, the following issues were discussed/resolved.
· Regarding the President-Elect Role and Consultation, to frame the discussion, Bonnie suggested that the Board consider adding an ACBO Board member for the immediate past president for a year or two to provide continuity and also not to lose his/her expertise immediately upon the change of leadership. She also recommended that the President and President-elect be approved at the ACBO fall conference and the regional representatives continue to be identified at the spring conference. Bonnie also suggested that the term of the president be changed to a three-year term similar to that of the regional representatives. Several Board members were concerned that asking for that length of a commitment as president-elect, president, and immediate past president might deter members from volunteering for these leadership positions. Discussion followed.
· The Board concurred with the changes except for increasing the Presidents term to three years.
Noting that Consultation Council holds orientation in July each year, members agreed that having president and president-elect terms conclude and commence at the Spring conference would be best to take full advantage of the Consultation seat provided to ACBO.
The members present continued to review and discuss the articles and sections of the current ACBO Constitution and associated By-Laws. As offered, Bonnie will make edits and provide a copy to Board members for January Board meeting with edits noted and provide a final version upon approval upon acceptance by the Board in January to be presented to the Association membership in accordance with the Constitution ‘s Article X, Section 1. In that regard, Bonnie also voiced confusion in both documents, which references “chief business officials” without clarifying whether that was “THE District CBO” or all college business officials at various levels. The Board members present then discussed the need to exert more influence statewide and perhaps further clarify the terms in the Constitution and By-Laws.
· Elevate the role of the CBO Statewide: In addition to providing a higher level of visibility with regard to fiscal analysis and impacts, members cited a need for better utilization of the relationship with the Chancellor's Office in order to weigh in on critical issues more effectively. Members discussed the concept of advocacy on behalf of CBOs, of strengthening the role of the Consultation Rep and utilizing the conferences as a forum to bring together the 72 CBO representatives more effectively as delegates and providing a venue by which ACBO can take formal position on state matters as they occur e.g., Student Task Force recommendations fiscal impacts. .
Additionally, it was agree that ACBO Board agendas should be changed to get in front of Consultation Council agenda items. As a point of clarification, members agreed that changes made to the Constitution will need to go to members (the 72 delegates) to be ratified. Further they agreed that a draft will be considered by the Board in January, that a proposed Constitution will be sent to delegates in April for comment and then a vote of the CBOs (i.e., 72 delegates) will occur at the May 2011 conference.
With regard to the annual election of Board members, they reviewed the existing election grid and concurred with minor changes. A final version of the grid is included with these minutes. It was agreed that elections will become part of the planning process for each fall conference to allow sufficient time for each region to be notified and fully participate in each election. The Board also agreed to drop the term limits language for the regional representatives in the Constitution. An orientation session will be planned for new Board members at each fall conference.
Given the lateness of the day, the 2012-2015 Strategic Planning discussion was moved to the Friday (12/2) agenda with initial discussion to occur over dinner.
ACBO Board of Directors
12/2/2011
RECORD OF THE MEETING
Present: Bonnie Dowd, President-Elect (Chairing); Jeanette Gordon, Region 7; Ed Maduli, Region 5; Fred Williams, Region 8; Steve Crow, Region 1; Sharlene Coleal, Region 6; Theresa Scott, Region 4; Kathy Blackwood, Region 3; Jon Sharpe, Region 2; Jim Buysse, Region 9 and Sue Rearic, Region 10.
On the Phone:
Tom Burke, President.
I. Agenda Review. It was M/S/C to approve the agenda with the provision that the item related to an MOU with ACCCA would be moved to the January Agenda; November meeting notes were accepted with changes. A final amended version of the notes will be posted on the Board Meeting page of the web site.
After further discussion it was agreed that meeting notes should be distributed for review no later than one week following a meeting, for approval at the following meeting. DRAFT notes will be posted on a hidden web site page and available only to Board members. Once approved, a copy of the final notes with all relevant pdf handouts will be posted on the Board page and available to the general membership.
II. Treasurer's Report: An updated Treasurer’s Report was submitted by Kathy Blackwood and accepted by the Board showing activity in October and November 2011. Kathy noted that the golf account is now incorporated in the report. Members asked instead to have it shown separately on the report. Association investments were explained, and members discussed them. For the January meeting Kathy was asked to will bring current interest rates on existing accounts for future discussions.
III. Reports to the Board:
Chancellor’s Office: Dan Troy, Vice Chancellor reported to members on recent activities noting that Chris Yatooma has left for another opportunity and is technically on a six month leave until a permanent status is determined. In the interim, Diane Brady will serve as the administrator in that area. Regarding recent budget developments, Dan reported the following:
A recent LAO report shows a $3.7 billion shortage; Finance’s projections may be slightly more optimistic, but we should expect Tier 1 and 2 triggers to occur. The Governor is having a press conference on his tax initiative which includes a $7 billion increase on upper income earners; a sales tax increase will kick in starting January 2013, and the majority of the revenue will go to schools and the courts. The $7 billion figure is over a couple of years; $2 billion of the $7 billion will go to backfill; $3 billion of the remaining $5 billion will go to Prop 98. Tax increases on upper income earners start at $250,000 or $500,000 on joint filers.
Dan also cited the Orange County property tax issue noting that the county pulled back on $73 million indicating that was what they were shorted by the State so they assumed it would be backfilled by the state to education. Ultimately this move could result in a $10-$14 million property tax shortfall for the system. Likely to be litigated, a legal opinion is needed. Basic aid districts are not impacted by this. The Chancellor’s Office is asking the OC auditor to justify their legal assertion.
Dan asked members if they were seeing higher fee rates on BOG grants noting that every time fees go up, BOG waivers as a percentage go up. Dan thinks they over estimated the amount of fees they'll get based on lagging data and wanted clarification.
Dan took questions from the floor, and Bonnie noted the work of the Board on the prior day in revising the Constitution. Using SSTF as an example she discussed the disappointment that there was no ACBO rep on the Task Force and the Board now wants to improve the participation of CBOs on these critical issues. She asked how ACBO could better assist the Chancellor’s Office to provide impact analysis, assistance and perhaps structure the relationship.
Dan agreed that there should have been at least one CBO on the Task Force and supported the concept of strengthening the relationship going forward.
Regarding Prop 98, Dan indicated that the LAO forecast shows some growth in the next few years, noting that at least they're showing it going in the right direction and increasing 4-5% a year to augment other areas. Though not a roaring growth, he expected it to grow in 2012-13 should the Governor’s tax package prove successful.
Members questioned: “assuming growth districts have relied on the ratio and not FON. When it comes back, will that percentage of the options go away?” Dan replied that if we have a year of positive growth, the BOG may not make that finding. If you've got a big gap you should prepare to close it. With the information just out, we'd be two years out from that, but there is no argument this year on the delay.
He further noted that the composition of BOG is changing, and the Legislature requires the BOG to consider categorical funding in making the FON determination. The LAO Prop 98 forecast is $200 million. Any additional revenue that occurs will likely result in the BOG applying that to FON determinations. Dan further commented that Governor Brown is not as community college-friendly as the previous Governor was.
Regarding SSTF, Dan noted that their final meeting is on 12/7 when they will clean up the 22 recommendations and they will then go to the BOG for approval in January.
ACBO members were clear that for the SSTF recommendations to have any chance of real success there would need to be enhanced funding to the system and major modifications to the 50% law. Significant discussion ensued regarding the 50% law.
Since the 50% law is directly linked to the success of the SSTF, members agreed that the Consultation Council would be the venue to make that case. Dan agreed indicating that no agenda item would need to be added, and that ACBO could simply submit or make a statement regarding that position at the 12/15 meeting.
Due to a conflict Bonnie has on December 15th, Sharlene Coleal agreed to represent ACBO at the special Consultation Council meeting to present a position paper on the issue as it relates to the task force recommendation impacts. Sharlene agreed to distribute the statement to the Board prior to delivery at Consultation to solicit t feedback.
Tom Burke indicated he had recently testified before the Little Hoover Commission and told their members that “the 50% Law is designed for an access funding formula, not a student success Funding formula.” And thus major changes would be required to the 50% Law and the Systems funding formula if the initiative was going to have any shot of succeeding. In addition a new model would need to be concurrently developed in order to ensure there were no unitended consequences with the change.
Facilities Task Force: Ed Maduli reported on the recent activities of the Facilities Task Force noting they are currently looking at standards and review them to make FPPs better so expect some changes in the near future. Their committee will be making a report on 12/8. He reported that Fred Harris is engaged in an effort to get funds from colleges to close out old projects with DSA noting that districts are closing them out, but they need more help from DSA. He said they are trying to get a monthly report from DSA on the status of these projects, that it’s an ongoing topic and since there has been less construction, it has freed up resources to close out these old projects.
He concluded that Fred Harris is still hoping for a facilities bond, but putting it on ballot is just a rumor now. With competing tax initiatives on the ballot there will be pressure not to do it.
Fiscal Standards Task Force: Fred reported that the committee met via conference call but he wasn’t able to participate for the entire meeting. He reported that Vavrinek, Trine, Day & Co., LLP (VTD) is currently engaged in the BAM review and will include requirements of GASB 54 which will require a change in the 311 report. Noting that the project is moving but not as quickly as hoped, regular conference calls with VTD are in the works (when they need them) and they’re sticking to their original estimate of getting the project completed by end of December. Fred noted that their work is being funded by ACBO (capped at $5,000 for the entire project.)
Members had questions about Fred Harris’ request to include elements of GASB 54 on the 311. It was resolved that ACBO board will discuss with FH later in the agenda to clarify.