SOUTH CAROLINA COMMISSION ON HIGHER EDUCATION
SOUTH CAROLINA COMMISSION ON HIGHER EDUCATION
Funding Advisory Committee
January 22, 2004
10:30 a.m.
CHE Conference Room
Committee Members Present
Mr. Charlie FitzSimons, Chair
Ms. Leslie Brunelli
Mr. Bob Connelly
Mr. Clyde Hincher
Col. Curt Holland
Dr. Sally Horner
Ms. Judy Hrinda
Dr. David Hunter
Ms. Brinda Jones for Jay Kispert
Mr. Rick Kelly
Mr. Scott Ludlow
Mr. Gary McCombs
Mr. J. P. McKee
Ms. Diane Newton
Dr. Ron Rhames
Mr. John Smalls
Dr. Teresa Smith
Ms. Virginia Steel
Mr. Patrick Wamsley for Lisa Montgomery
Guests
Mr. Bill Bragdon
Mr. Tom Covar
Dr. Anthony Coyne
Mr. Dorr Depew
Ms. Kathryn Duke
Ms. Susie Edwards
Mr. Henry Giles
Dr. Tom Higerd
Ms. Karen Jones
Ms. Amanda Maghsoud
Mr. Tom Nelson
Mr. Jim Openshaw
Mr. Charles Parker
Mr. Don Peterson
Mr. Phil Moore
Ms. Susan Prior
Ms. Jerry Shuler
Ms Catherine Watt
Mr. Bryce Wilson
Staff Present
Ms. Camille Brown
Mr. Tony Brown
Ms. Lynn Metcalf
Ms. Jan Stewart
Ms. Julie Wahl
The Funding Advisory Committee met on January 22, 2004 at 10:30 a.m. in the CHE conference room. For the record, notification of the meeting was made to the public as required by the Freedom of Information Act.
I. Welcome and Introductions
Mr. FitzSimons welcomed everyone to the meeting. Mr. FitzSimons introduced Bryce Wilson, who is the new Budget Analyst for higher education at the Budget and Control Board.
II. Approval of Minutes of Meeting on November 13, 2003
There being no corrections or additions to the minutes of November 13, 2003, the minutes were approved as written.
III. Discussion of Collective Purchase of Software
Mr. FitzSimons stated that at the last meeting he had mentioned that Mr. John Smalls had suggested the possibility of collective purchasing of software. He asked Mr. Smalls to go over his thoughts on collective purchasing. Mr. Smalls stated that SC State is looking into upgrading their software and suggested that if a group of institutions bought from the same company, institutions might be able to get a price break on equipment and training. Mr. Kelly stated that if agencies go to a central place, it could mean a financial advantage. He is interested in implications for higher education and likes the idea of a shared platform. Col. Holland talked about the possibility of using lottery technology funds and agrees with the idea of coming together with a single platform. After some discussion, it was determined that most of the institutions will be upgrading their systems within the next several years and would like to explore the possibility of collective purchasing.
IV. Status of CHE Legislative Proposal Discussed during January Commission Meeting
Mr. FitzSimons described the meeting on January 7 with the presidents and the meeting on January 8 with CHE. He asked for input from Committee members.
Mr. FitzSimons distributed a copy of a summary of S.560 from the 1/20/04 SF Full Committee Amendment. He stated that S.560 as amended contains two major components of the original bill. They are as follows:
1) Regulatory Relief – These provisions offer regulatory relief for public institutions of higher education.
2) The South Carolina Research University Infrastructure Bond Act – This provision increases the state’s debt limit from 5.5% to 6%, allowing the additional .5% to be used by the three research universities (Clemson, USC, and MUSC). This dedicated source of general obligation debt will provide critical infrastructure dollars to be used for research facilities which advance development of a knowledge-based economy.
A Summary of potential tuition limitation information based on 2003-3004 academic year required tuition and fees for full-time in-state undergraduate students was distributed. Dr. Horner stated that HEPI applies if there is no new growth but doesn’t take into account growth or new programs paying 100%. Mr. Smalls thinks tuition is getting too high and stressed concerns about students not being able to afford to go to college. It was generally agreed that there should be more need-based scholarships.
Ms. Hrinda stated that for every 1% decrease in appropriations requires an increase of 1.6% in fees. The State Board has imposed the maximum. Access issue was discussed.
V. Discussion of Funding Methodology Development Timeline
Mr. FitzSimons stated that the funding methodology has been put on hold for future discussion. Mr. Ludlow mentioned a publication regarding the Delaware Study and the following link provides access to the full study entitled, “A Study of Higher Education Instructional Expenditures: The Delaware Study of Instructional Costs and Productivity.”
Mr. Ludlow also referenced an article about the Oregon Finance Model that he had distributed earlier.
VI. Discussion of Allocation Methodology for 2004-05
Mr. FitzSimons stated that the Commission staff and the Funding Advisory Committee review the allocation methodology on an annual basis and make recommendations to the Commission for consideration. The primary considerations during this year’s review were the budgetary constraints of the state and the need for fiscal stability for institutions. At this time, it is clear that higher education will not be receiving any funding increases for operating funds, but rather will be facing further budgetary reductions. The question of addressing parity within higher education was also discussed. The majority of the Committee agreed that the Commission’s existing position of addressing parity with future funding increases is the most prudent course of action. There was some concern expressed that there are different levels of funding across sectors of institutions, and that the issue must be addressed at some point.
The Committee adopted the following recommendations with a vote of 14 to 4.
The Commission staff recommended that the Finance and Facilities Committee reaffirm the existing Commission allocation methodology.
Other Business
Mr. FitzSimons stated that the next meeting date will depend on how we move forward with accountability.
There being no further business, the meeting was adjourned at 12:25 p.m.
Respectfully submitted,
Janet K. Stewart
Recorder
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