Florida Board of Governors

03/24/2011

ACTIONS TAKEN: Meeting of the Florida Board of Governors, March 24 In Tallahassee

The Board of Governors heard remarks during the morning from Governor Rick Scott, Senate President Mike Haridopolos and House Speaker Dean Cannon, with extensive Q&A occurring between each state leader and Board members.

In regular business, the 17 members of the Florida Board of Governors took the following actions today in Tallahassee:

From the Facilities Committee (Chair Charlie Edwards)
Approved three resolutions (the first two items to be offered by the State Division of Bond Finance):
1. Construction of Student Residencies and Related Improvements on the Main Campus, UCF
2. Construction of a Parking Garage on the Main Campus, UCF
3. Resolution of the Board of Governors Authorizing the Issuance of Debt by the University of South Florida Financing Corporation to Finance the Renovation of the USF Arena and Convocation Center on the Tampa Campus, USF (“Sun Dome”). The Board approved the committee’s recommendation for approval to borrow up to and not to exceed $26.5 million, with several contingencies: a.) that there be set-aside funds of $20 million to guarantee the interest and principal; b) that the USF Foundation and USF Board of Trustees approve the set-aside of $20 million to guarantee the interest and principal; and c.) and that those two bodies accept and comply with these contingencies prior to commencement of the contract work. USF also may return to the Board of Governors with an independent financial analysis on why that “guarantee” amount should be or can be reduced at any point in the future. Mr. Perez voted no in the voice vote of the full Board. The earlier committee vote was 6-2:
Beard – yes
Martin – no
Perez – no
Stavros – yes
Temple – yes
Yost – yes
Vice Chair Colson – yes
Chair Edwards – yes

PECO/fixed capital outlay Legislative Budget Request for FY 2011-12: The Board voted to pursue amendments as needed to its regulation in order to provide broader funding authority to the universities that would assist in effecting emergency repairs and other capital maintenance necessary in the months and years to come, utilizing funds not typically expended for that purpose. In addition, the Board asked Chancellor Brogan to pursue any necessary changes in language that may be needed in the Session for the same purposes and so that the Legislative Committee can assist in advocating.


From the Legislative Affairs Committee (Chair Dean Colson)
Received updates on where legislative priorities are in the Session, information on some of the budget proposals to date in the House and Senate, and other items that Chancellor Brogan and Board staff are monitoring in the Legislature. Several Board members who have dedicated time to meet with legislators in Tallahassee also spoke to the receptiveness expressed toward the Board of Governors’ legislative agenda.


From the Budget & Finance Committee (Chair Tico Perez)
Consent agenda – passed as posted on agenda:
• Items A thru D are all related to tangible state property, such as desks, computers and vehicles. State universities currently follow state agency rules, which are set by the Florida Chief Financial Officer. The Board of Governors has been asked by the university controllers to have a more updated and more tailored framework so that they can save staff time and perhaps nominal costs in their processes.
• Item E adds FAU to the State University System’s self-insurance program.
• Item F is self-explanatory related to guidance to universities for the Board of Governors’ preparation of the LBR for FY 2012-13.
• Item G, which is related to bond covenants, is an item the Board takes up every year – it is a requirement of the legal terms for the bonds that are approved by the Board of Governors over the preceding years.


Student Fees
Background: The 2010 governance agreement signed between the Legislature and the Board of Governors tasked the Board with review and authorization for any new student fees and increases to certain existing student fees; up to this point, the Legislature has determined student fees in the State University System. This is the first such exercise of the Board reviewing any proposed student fees, which first must be approved by the respective universities’ Boards of Trustees. Four fees heard at the Feb. 10 committee meeting have been withdrawn since, leaving five of the 11 institutions in the System requesting a total of five new or increased student fees for the Board of Governors’ approval. The proposals from the universities were considered at the Feb. 10 meeting of the Budget & Finance Committee – the “committee vote” is indicated below. Current student fees across the System include athletic, health, activities & services, as well as technology and financial aid (both of which can be no more than 5 percent tuition). The Budget & Finance Committee utilized the guidelines in a Board regulation put in place in 2010 during the extensive and collaborative rule-making process after the governance agreement was signed with the Legislature and in cooperation with the universities in planning for this process. The Board of Governors’ regulation outlines that any proposals must include the following:
• detailed purpose of the fee;
• demonstrated student-based need that is not being met through another service or fee;
• process used to ensure student input when it was voted on by the university Board of Trustees;
• financial impact on students;
• accountability measures to track the usage of the fee;
• proposed restrictions or limitations placed on the fee;
• and estimated revenue and proposed expenditures.

A list of current student fees, by university, is located on our web site at – http://www.flbog.edu/about/budget/current.php.

Revenue from these fees cannot be transferred to secured debt and are not bondable. Every five years, the university Boards of Trustees must review any fee it has in place. Any future increases to any of these fees that were approved by the Board of Governors must go before the university’s Board of Trustees again as well as the Board of Governors and again signify strong student support.

As was the case at the Budget & Finance Committee meeting in February – where Chair Tico Perez of Orlando required every university requesting a new or increased fee to have present at least one Student Government representative and the University President (or his/her designee) to present the proposal and field questions – Board Chair Ava L. Parker made the same request of the universities below.


University Fee Amount (per credit hour unless noted)
1. USF Green Energy Fee $1.00

Committee action taken Feb. 10 - Recommended for approval by a vote of 3-1.
Duncan – absent for vote
Franklin – Yes
Hosseini – absent for vote
Rood – No
Marshall – Yes
Beard – Yes
Tripp – absent for vote
Board action taken: Approved unanimously.


2. NCF Sustainability "Green" Fee $1.00

Committee action taken Feb. 10 - Recommended for approval by a vote of 3-2.
Duncan – absent for vote
Franklin – Yes
Hosseini – absent for vote
Rood – No
Marshall – Yes
Beard – Yes
Tripp – No

Board action taken: Approved unanimously.


3. UWF Orientation Fee (one-time) Increase from $35.00 to $50.00

Committee action taken Feb. 10 – Recommended for approval by a vote of 4-1.
Duncan – absent for vote
Franklin – No
Hosseini – absent for vote
Marshall – Yes
Rood – Yes
Tripp – Yes
Beard – Yes

Board action taken: Approved unanimously.


4. UNF Student Life & Services $4.78

Committee action taken Feb. 10 – Recommended for approval by a vote of 5-0.
Duncan – absent for vote
Franklin – Yes
Hosseini – absent for vote
Marshall – Yes
Rood – Yes
Tripp – Yes
Beard – Yes

Board action taken: Approved unanimously.


5. FIU Test Preparation Varies (see proposal)

Committee action taken Feb. 10 – Recommended for approval by a vote of 5-0.
Duncan – absent for vote
Franklin – Yes
Hosseini – absent for vote
Marshall – Yes
Rood – Yes
Tripp – Yes
Beard – Yes

Board action taken: Approved unanimously.



From the Strategic Affairs Committee (Chair Frank Martin)
Received a staff presentation on the early steps being considered and taken into account in the development of an updated Strategic Plan for the State University System. Comments from university presidents and Board members on next steps.


On the Calendar
The next meeting of the Board of Governors is May 5 via conference call. Please note that the following meeting – June 22-23 meeting at USF in Tampa – is a major meeting in terms of tuition differential proposals from the universities will be reviewed at both the committee level and full Board level. This June meeting also includes presentations by the universities of their respective annual Work Plans, which are vital to the State University System’s Strategic Plan. The full meeting calendar through 2012 is posted on the web site. For more: http://www.flbog.edu/pressroom/news.php?id=361