Board Meetings

Board of Regents Meeting March 24-25, 2022

Board Members Present:

Lisa Desmarais
Wendy Fletcher
Brooke Gallagher
Chris Girdler
Kimberly Greene
Patsy Jackson
Joseph Heerdink
Barry Martin
Alexandrea Shouse
James Lee Stevens
Brianna Whitten

Board Members Participating Via Microsoft TEAMS:

Russell Cox (absent on Thursday, present on Friday)
Karen Finan

Call to Order, March 24, 2022:

KCTCS Board of Regents Chair Lisa Desmarais called to order the meeting of the Kentucky Community and Technical College System Board of Regents at 12:08 pm (ET) on March 24, 2022. The meeting was held at Hazard Community and Technical College. The press was notified of the meeting on March 17, 2022. Hon. Pamela Duncan, KCTCS General Counsel, served as parliamentarian.

Update: Accreditation

There being a quorum present, the meeting began with the introduction of guests joining the meeting via Teams. Dr. Sue Ellspermann, Ivy Tech President, and Dr. Sally Johnstone, NCHEMS President, were asked to make presentation about single accreditation and the considerations that go with such a transition.

Chair Desmarais also mentioned the 16 College Presidents were in attendance at the meeting.

Regents had several questions for the presenters and many of the College Presidents spoke about foreseeable single accreditation challenges. Chair Desmarais closed the discussion reminding Regents this item was for informational purposes only and no action was required, but Regents should consider the points made and the issue would be revisited on the next day.

Update: Employee Compensation and Classification

Regent Stevens introduced the agenda item and asked Vice President Followell to present the information. Four options, each addressing a salary increase as well as employee compression, were reviewed. A breakdown of employee benefits was also shared. During the “All E.A.R.S.” tour, and a subsequent survey of the College HR Directors, it was suggested many times that benefits be reviewed and updated to better reflect employee needs and wants. It was noted a new Vice President of HR will be taking a deeper dive into benefit packages and offerings.

Adjusting the salary schedule was discussed and will be voted upon in June, in addition to providing salary raises.

Vice President Followell noted that an analysis occurred several years ago by the Hanna Resource Group wherein positions were compared for job similarities and pay across the System. An equity study review based on race, gender, etc. has never been done.

The sustainability of any pay increases and adjustments for compression were discussed, given the state budget and enrollment outlook for the next few years. Chair Desmarais expressed the need to change the budgetary philosophy around employee compensation – specifically, that employee compensation should be addressed first in the budget planning process before other expenses.

After discussion, the Board was in agreement that two more options should be considered for the June meeting: increase the annual compensation increase to five percent; and, use years with KCTCS to address compression instead of years within a position. The Board also asked for the figures to be capped at around $19.4 million. Vice President Followell indicated his staff would work on these additional requests and bring it back to the Board.

Change to Agenda:

Chair Desmarais noted the day’s agenda still included Updates on Building Utilization and Consolidation, the Legislative Session, Internal Audit Report, Learner Success and Workforce Development, and Technology Services. An Action Item remained for the Internal Audit Contract. Given the lengthy discussion around Compensation and Compression, however, the Board did not have time to finish the agenda before breaking for dinner.

She asked that Hannah Rivera provide an update on the legislative session to the Regents at dinner that evening (verbal update only, no discussion). The start time for Friday’s meeting was moved from 9:00 a.m. to 8:30 a.m. to catch up on the agenda.

College Presentation:

Dr. Lindon made a presentation about Hazard Community and Technical College and thanked staff for hosting the meeting.

Adjournment:

Regent Stevens moved that the meeting adjourn. Regent Whitten seconded the motion.

Chair Desmarais asked Ms. Duncan to conduct the roll call vote.

The motion was approved unanimously, and the Board adjourned at 5:11 p.m. (ET).

Call to Order, March 25, 2022:

KCTCS Board of Regents Chair Lisa Desmarais called to order the meeting of the Kentucky Community and Technical College System Board of Regents at 8:13 a.m. (ET) on March 25, 2022. The meeting was held at Hazard Community and Technical College. The press was notified of the meeting on March 17, 2022. Hon. Pamela Duncan, KCTCS General Counsel, served as parliamentarian.

Approval of Minutes:

Regent Desmarais shared that all of the minutes are grouped together and will be approved together unless there are any that need to be discussed. She asked if there were any corrections to the following minutes presented in the meeting materials:

December 3, 2021, Regular Meeting Minutes
January 19, 2022, Special Meeting Minutes
February 2, 2022, Special Meeting Minutes

There being none, the minutes were declared approved as presented.

Additions or Changes to the Agenda:

Chair Desmarais announced changes to agenda to include abbreviated reports on Building Utilization and Consolidation, Internal Audit, Learner Success and Workforce Development, Administrative Services, and Technology Services. She noted that the discussion around Accreditation which began the day before would be revisited again today with next steps to be determined. There were no objections to the changes to the agenda.

Consent Agenda:

Chair Desmarais asked if there were any changes to the consent agenda, the Ratification of KCTCS College Candidates for Credentials. There being none, the agenda was approved as presented.

Chair Desmarais moved to the next item on the agenda.

Update: Personnel Actions

RECOMMENDATION: That the KCTCS Board of Regents ratify the personnel actions listed in the agenda materials.

It was noted that the personnel actions presented were in accordance with reporting guidelines and policies adopted by the KCTCS Board of Regents.

Chair Desmarais called for discussion. There being none, she called for the motion.

MOTION: Regent Desmarais moved, and Regent Whitten seconded, that the KCTCS Board of Regents ratify the personnel actions listed in the agenda materials.

Chair Desmarais called for the vote. Ms. Duncan conducted the vote.

The motion was approved unanimously.

Chair Desmarais moved to the next item on the agenda.

Update: Personnel Actions

RECOMMENDATION: The KCTCS Board of Regents approve a one-time employee appreciation award of $500 for each regular, full-time employee, employed as of March 1, 2022, in recognition of the outstanding work performed during the COVID-19 pandemic.

Chair Desmarais noted that the Board voted to approve a one-time payment to employees in December 2021 and asked that another one-time payment be made if the fiscal outlook allowed for such a payment. Discussion was had around the effect a $500, one-time payment would have on the ability to do a salary increase and the resulting employee morale.

MOTION: Regent Desmarais moved, and Regent Barry seconded, that the KCTCS Board of Regents approve a one-time employee appreciation award of $500 for each regular, full-time employee, employed as of March 1, 2022, in recognition of the outstanding work performed during the COVID-19 pandemic.

The motion failed. It was indicated by many they would prefer to utilize a long-term compensation plan with recurring raises rather than one-time payments.

Information: KCTCS Budget Scenarios

Chair Desmarais asked Vice President Followell to present KCTCS budget scenarios for the upcoming fiscal year, including expected tuition revenue, the state budget for FY 2022-24, and anticipated expenses.

Regent Heerdink asked about asset preservation funds and what is included in that category. Regent Fletcher asked how much KCTCS has in total assets. Vice President Followell explained this would be several $100 million in assets, but assets are different than cash on hand. It was also noted that each of the Colleges have legally separate foundations which have monies to support the College, but this money is often earmarked by donors.

Recess: The Board recessed at 9:01 a.m. to recognize former Regent Damon Allen and his service to the Board; he joined via Teams.

Action: 2022-23 KCTCS Tuition

RECOMMENDATION: The KCTCS Board of Regents approve and report to the Council on Postsecondary Education (CPE) a $3.00 per student credit hour (SCH) tuition increase for 2022-23 for in-state students. This action is allowed within CPE’s tuition rate structure at Kentucky’s public postsecondary education institutions for 2022-23. The result will be the following 2022-23 per credit hour tuition rates for KCTCS colleges:

In-State Students: $182
Out-of-State Students
From Contiguous Counties: $364
Other Out-of-State Students: $637

Vice President Followell presented the information. It was noted that there are several KCTCS Colleges that do not receive any performance funding under the current model and thus need tuition revenue in order to have incoming revenue for operations.

MOTION: Regent Desmarais moved, and Regent Martin seconded, that the KCTCS Board of Regents approve and report to the Council on Postsecondary Education (CPE) a $3.00 per student credit hour (SCH) tuition increase for 2022-23 for in-state students. This action is allowed within CPE’s tuition rate structure at Kentucky’s public postsecondary education institutions for 2022-23. The result will be the following 2022-23 per credit hour tuition rates for KCTCS colleges:

In-State Students: $182
Out-of-State Students
From Contiguous Counties: $364
Other Out-of-State Students: $637

The motion passed with two no votes.

Recess: The Board recessed at 9:23 a.m. and began again at 9:33 a.m.

Action: KCTCS 2022-26 Strategic Planning

RECOMMENDATION: That the KCTCS Board of Regents approve the KCTCS Strategic Plan 2022-2026, including the mission, vision, values, infused priority, goals, objectives, and key performance indicators.

Chancellor Williams presented the agenda item. An update was given about the current plan, which spans from 2016 to 2022. It will officially wrap up at the end of the July and the metrics for it will be reported at the September 2022 meeting.

Motion: Regent Desmarais moved, and Regent Heerdink seconded, that the KCTCS Board of Regents approve the KCTCS Strategic Plan 2022-2026, including the mission, vision, values, infused priority, goals, objectives, and key performance indicators.