Board of Regents Meeting Minutes September 19, 2024

Kentucky Community and Technical College System
Board of Regents Meeting Minutes
September 19, 2024, 12:00 p.m. CST
Henderson Community College - Preston Arts Center

I. Call to Order

Chair Martin called the regularly scheduled meeting to order on September 19, 2024 at 12:00 p.m. CST. 

Attendance
Chair Barry Martin (Present)
Vice Chair Keith Hamilton (Present)
Secretary Brianna Whitten (Present)
Mr. Rusell Cox (Present)
Mr. Christopher Girdler (Present)
Ms. Lauren Guerra Gomez (Present)
Ms. Kimberly Greene (Present)
Ms. Tiffany Kelly-Jenkins (Absent)
Ms. Candace McGraw (Present)
Ms. Kelly Rabinowitz (Absent)
Ms. Shana Savard-Hogge (Present)
Ms. Audra Shouse (Present)
Mr. James Lee Stevens (Present)
Mr. Marty Sutherland (Present)

II. Approval of Minutes

Regent Whitten made a motion to approve the minutes of the August 29, 2024, Board of Regents special meeting. Regent Hamilton seconded the motion. The motion passed unanimously. 

III. Henderson Community College Presentation

Henderson President Dr. Jason Warren discussed the mission, vision, and values of HCC. Henderson offers 16 degrees and over 75 certificates. Dr. Warren noted the retention of students at Henderson. HCC welcomed the largest cohort of FAME students this year since its inception in 2017. Dr. Warren spoke about the growth of Western Kentucky and the opening of I-69 and the construction of a new paper mill in Henderson. Dr. Warren shared a video about HCC with the Board.

IV. Chair's Report

Chair Martin stated that one of the most important aspects of today’s meeting is the discussion of SJR 179. Dr. Quarles and his team have been working feverishly to make recommendations and meet the deadlines. Chair Martin stated that Dr. Quarles is putting together a good team and he has support from PLT. 

V. President's Report

Dr. Quarles noted the history of Henderson, Kentucky. Dr. Quarles welcomed the new regents and the new members of the leadership team. Dr. Quarles noted that enrollment is at a ten year high at KCTCS. Dr. Quarles stated that a third of all students are dual-credit enrollees and the number of adult learners has increased. Dr. Quarles shared that there is likely to be another delay in the FAFSA this year and KCTCS will continue to its enrollment work group to address these concerns.

KCTCS awarded 54% of all GED’s in Kentucky. Half of all KCTCS Colleges are teaching in their local jails and prisons. Dr. Quarles spoke of a need to offer wrap around services for students and to remove barriers to access. KCTCS is going to announce a fundraiser for food pantries. Dr. Quarles thanked our partners in Congress for recent events and funding to provide assistance with childcare for students. 

KCTCS is in the partnership business for student and employee success and named several organizations that KCTCS partners with. KCTCS has the ability to address the needs of the workforce has made significant investments in the TRAINS program. KCTCS is the #1 workforce trainer in the state of Kentucky. Access, affordability, and workforce are the three pillars. 

KCTCS continues to meet with counterparts across the state to align the workforce strategy across the state. The SWAT initiative is developing a one Kentucky approach. Dr. Quarles has spoken to several counties chamber of commerce and KCTCS had a booth at the Kentucky State Fair.

For the state audit of 2023, all findings have been cured except the forensic audit which concludes next month. KCTCS has a commitment to transparency. SJR 179 offers us the opportunity to chart a path forward. Dr. Quarles noted the hiring of a compliance officer position to assist with updating KCTCS policies, 80% of which are outdated. 

KCTCS headed a school safety conference headed by CFO Todd Kilburn due to a recent incident in eastern Kentucky. KCTCS will undergo a reorganization in either December or January. Dr. Quarles thanked the staff of KCTCS, his leadership team, and PLT. 

VI. Increase Organization Success

A. Update: SJR 179 Work Team Progress

Dr. Quarles discussed the work thus far of the work groups and introduced the recommendations regarding single accreditation. Dr. Quarles introduced Dr. Scott Williams who leads the Governance and Organization work group. Dr. Williams reviewed the research and considerations related to governance and accreditation. The recommendation is to preserve college-level accreditation and focus on increasing shared services. Other recommendations from the Governance and Organization work group were reviewed and slides were presented in the materials provided to the Board. The Board engaged in a discussion related to the recommendations and Dr. Williams answered questions from the regents. 

Dr. Juston Pate presented the information from the academic programming optimization work group. Dr. Pate stated that this work directly came from the work of Huron and they were asked to look at academic programming and training offerings. This work group reviewed the academic quality and program relevancy. The Board discussed this presentation and Dr. Pate answered questions from the regents.

The Board took a recess at 2:00 p.m. CST and resumed at 2:11 p.m. CST.

Dr. Fernando Figueroa presented the work from the Student Pathways work group. This group research and benchmarked data on the national higher education landscape. Dr. Figueroa discussed the recommendations from the work group and how those recommendations were made. Dr. Figueroa spoke about the dual-credit framework and the need for data to understand and enhance student pathways. Dr. Figueroa reviewed the workforce plan elements and explained how that supports a comprehensive workforce framework. The Board had a discussion related to this work group and Dr. Figueroa answered questions from the regents.

Dr. Phil Neal shared the work from the Affordability work group and he thanked the members of the teams and the Project Management Office staff. Affordability has three items to address including the funding model and its adequacy, the funding of the system office, and tuition rates. The work group had to define adequacy and affordability. The work group looked at a national database and utilized it to set some definitions. Not all 50 states are the same and community college funding sources differ. Dr. Neal explained the current funding model for KCTCS and other options that are current utilized by comparators. The Board discussed the information shared and Dr. Neal answered questions from the regents. 

Dr. Cynthia Kelley presented the work of the Administrative work group. The Administrative group is reviewing the statutes, the personnel system, the administrative structure, and the shared services. The group is gathering information about how it can grow and enhance the system. The group has reviewed other systems, case studies, and Huron. This group is reviewing feedback from employees within the system. This group is working through options currently and not yet at recommendations. The Board engaged with Dr. Kelley by asking questions and having a discussion. 

Dr. Quarles encouraged the regents and KCTCS staff to submit any comments to the Project Management Office. Dr. Quarles is submitting a final draft to CPE in October and to the Joint Commission in December. Dr. Quarles asked for any feedback regarding whether any of the groups are going in the wrong direction and asked if additional time on this topic is needed. Regent Stevens stated that a workshop may be needed prior to the December meeting and Chair Martin concurred.

B. Update: State Examination

Chief Financial Officer Todd Kilburn shared an update related to the state examination report. KCTCS is waiting for the results of the forensic audit results that will come in at the end of October. Dr. Quarles shared that the forensic audit is expected to be on time and KCTCS is ready to receive the recommendations and cure any findings.

C. Update: KCTCS Board of Regents Audit Committee Meeting

Regent Cox, Chair of the Audit Committee, shared that the committee met on August 29, 2024. Regent Cox stated that there was discussion of the internal audit for 2023-24. Regent Cox stated there was not anything significant to report. The committee went through the report in detail and there were moderate to low level items that are being addressed. The committee discussed the internal audit plan for fiscal year 2025. The committee looked at updating their meeting schedule and the committee will keep its current schedule.

The Board took a recess at 3:43 p.m. CST and resumed at 3:52 p.m. CST.

D. Action: Internal Audit Plan for Fiscal Year 2024-25

CFO Todd Kilburn presented the internal audit plan for fiscal year 2024-25. KCTCS discussed the timing of this audit especially with regards to the FAFSA and financial aid office. The audit plan was included in the board’s materials. Regent Stevens and made a motion to approve the Internal Audit Plan for Fiscal Year 2024-25. Regent Sutherland seconded the motion. The motion passes unanimously.

E. Update: Other Post Employment Benefit (OPEB) Trust Report

CFO Todd Kilburn provided an update on the OPEB Trust. The committee met earlier this year and provided numbers related to the current status of the trust and the predicted future funds. 

F. Action: Ratification of OPEB Trust Administrative Committee Decisions

Regent Stevens made a motion to ratify the recommendations of the OPEB Trust Administrative Committee decisions including approving the Anthem Medicare Advantage plan for calendar year 2025 and create an RFP for calendar year 2026. Regent Hamilton seconded the motion. The motion passed unanimously.

Due to the robust discussion surrounding the SJR 179 presentations, Chair Martin stated that items G, H, and I would be moved to the next day. 

VII. Open Comment Period

Former KCTCS Chief of Staff, Hannah Rivera, provided comments to the Board. Ms. Rivera asked for 5 minutes and the Chair granted that request. 

VII. Executive Session

Chair Martin made a motion to go into executive session pursuant to KRS 61.810(1)(c) to discuss proposed or pending litigation and KRS 61.810(1)(f) to discuss individual personnel matters that may lead to the appointment, discipline or termination of an individual employee. Regent Shouse seconded the motion. The motion passed unanimously. The Board went into executive session at 4:09 p.m. CST.

IX. Adjournment

Regent Whitten made a motion to return to open session. Regent Stevens seconded the motion. The motion passed unanimously. The Board returned to open session at 5:19 p.m. CST.

Regent McGraw made a motion to adjourn. Regent Hamilton seconded the motion. The motion passed by consensus and the meeting adjourned at 5:20 p.m. CST.