Owensboro Community and Technical College Board of Directors' Meeting | OCTC

Owensboro Community and Technical College Board of Directors' Meeting

Thursday, May 2, 2024

Board Members Present

Zara Basham, Sharmy Davis, Joan Hayden, Doug Hoyt, Pat Jones, Jordan Lanham, and Sofia Stinnett

Board Members Absent

Charles "Buzz" Backstrom and CeCe Robinson

Call to Order

The meeting, held in the Administration Board Room, was called to order at 5:55 p.m. (CST) on May 2, 2023.

Approval of Minutes

Chair Hoyt called for a motion to approve the minutes from the January 11 and March 14, 2024 meetings.

Motion

Joan Hayden made a motion to accept the minutes from the January 11 and March 14, 2024 meetings. A second was made by Pat Jones.

Vote

The minutes from the January 11 and March 14, 2024 meetings were approved unanimously.

New Business

Approval - 2024-2025 Actions Steps of the Strategic Plan 2022-2026

Associate Dean of Institutional Advancement Nicole Ralph shared the 2024- 2025 action steps of the 2022-2026 Strategic Plan. Each KCTCS goal and related OCTC objective were reviewed. The OCTC objectives include Scheduling and Curriculum, Student Support, Transfer, Careers, Marketing and Image, and Recruitment and Outreach.

With no discussion, Chair Hoyt called for a motion to approve the 2024-2025 Action Steps of the 2022-26 Strategic Plan as presented.

Motion

A motion was made by Joan Hayden to approve the 2024-2025 Strategic Plan Action Steps. A second was made by Pat Jones.

Vote

The motion was approved by unanimous consent.

Quarterly Budget Report

Vice President Sarah Price reviewed the budget report for the third-quarter of fiscal year 2024.

Revenue

Tuition and Charges- 95.63% was received. This percentage is consistent with OCTC enrollment for fall 2023, summer 2023, and spring 2024. Additionally, the net SEEK budget is incorporated into the Tuition and Charges budget. OCTC has not received any SEEK revenue allocations during fiscal year 2024.

Sales and Services- 88.65% was received. Revenue for this category has surpassed the third-quarter parameters. Bookstore commission and online course charges contributed to the increase in revenue received.

Other Sources- 47.86% was received. During the third-quarter, OCTC received

$1,204,942.41 from KCTCS for overages from the system cost recovery process identified in State Examination Finding #2. Please note this category represents the budgeted college fund balance.

Budget Reserve- 0.00% has been received. This item represents the budgeted Budget Reserve.

Restricted Funds- 33.07% was received. This amount is below the third-quarter parameters due to the $38 million HealthForce Kentucky budget, of which only $5,373,606.49 has been received in actual revenue through the third­ quarter. In addition, this percentage reflects receipt of the restricted student financial aid for fall 2023 and spring 2024, in addition to other grant and gift revenue received.

Expenses

Instruction- 57.59% was expended. This category has not surpassed the third­ quarter parameters due to budgeting a portion of the college's fund balance in this category.

Public Service- 69.88% was expended. Expenses in this category were slightly under the third-quarter parameters.

Library- 85.89% was expended. Expenses in this category have surpassed the third-quarter parameters. The college purchased security gates for the library using the college fund balance dollars.

Institutional Support- 61.81% was expended. Expenses in this category did not surpass the third-quarter parameters. This can be attributed partly to the allowance for student bad debt and contingency budgeted and not expended in this category.

Student Financial Aid-99.94% was expended. This category has surpassed the standard third-quarter parameters. Expenditures reflect the increase in students taking dual credit classes.

Current Operating- 61.07% was expended. Expenditures in this category are for current operating expenses, including travel expenses. The number reflects conservative spending by college personnel.

Capital Outlay- 21.06% was expended. Expenditures in this category include library resources, capital equipment, renovations, and capital lease payments. The last half of the annual lease payment for the ESG-guaranteed energy project was paid in the third-quarter. Additional capital lease payments and small renovations were expensed in this category. Note: the college's fund balance is budgeted in this category.

Grants and Aid- 99.94% was expended. This category surpassed the third­ quarter parameters. Expenditures reflect the increase of students taking dual credit courses.

Budget Reserve--0.00% was expended. We are not authorized to spend the budget reserve without approval from KCTCS.

Approval of the 2024-25 Annual Budget

Sarah Price presented the 2024-25 Annual Budget via PowerPoint presentation.

The total OCTC 2024-25 budget is $69,946,900. The Source of Funds, Function of Expense, and Object of Expense are groups considered when balancing the budget.

The following budget assumptions were implemented to balance the 2024-25 budget internally:

  • Proposed tuition rate for in-state students of $189 per credit hour;
  • Mandatory student fee for the BuildSmart initiative of $8 per credit hour;
  • Proposed budget tuition for fall 2024, spring 2025, and summer 2025 of $13,640,000;
  • Public funds base of state appropriation of $8,168,200, performance- based funds of $1,827,200;
  • Adult Ag Allocation of $59,700;
  • OCTC system-wide contracts of $2,971,600
  • A decrease of 16.71% in federal government grants and contracts due to the Commonwealth West Healthcare Innovation Center grant (CWHWIC)
  • A decrease of 16.91%in state government grants and contracts due to the Humanitarian Assistance grant, KEES, and SEOG;
  • A decrease in non-credit tuition of 6.62%% (reflecting projected market expectations);
  • An increase of 44.96% to $90,600 in private contracts;
  • An increase of 28.26% to $95,300 in endowment income;
  • A 4.04% increase in sales/service of educational activity (AMTECH revenue, online course charge, bookstore commissions)
  • An increase of 1.28% contributed by the addition of the Bluegrass Program faculty and operating;
  • The Board of Regents Budget Reserve is calculated on 3% of the Public Funds revenue;

Budget Assumptions for expenditures included the following:

  • The KCTCS Board of Regents requested a 3% pool to be set aside for salary/benefit increases. OCTC has incorporated those increases in all budgeted full-time positions;
  • The Huron Comp/Class has been added to this budget. The total amount across all funds for this phase was $119,562.34, including benefits;
  • OCTC faculty promotions, including benefits, were $19,519.50;
  • Several part-time budgets were decreased to right size, reallocate, and help balance the budget;
  • Two vacant funded faculty Accounting and Business Administration positions;
  • One vacant Industrial Maintenance faculty position was not budgeted;
  • One vacant funded CDL position was added;
  • Workforce Solutions adjusted their entire budget to reflect needs in the new year. These changes modified almost every budget line including full- and part-time temporary lines;
  • Due to grant requirements, OCTC budgeted three Title Ill positions from 25% to l 00% in the Fund 01 budget, an increase of $125,346.39;
  • An Academic Program Facilitator retiring in FY 2025 was budgeted at a reduced rate;
  • Two M&O positions were not funded;
  • Added the Bluegrass and Traditional Music program, with a new faculty position;
  • HealthForce Kentucky developed several positions that are budgeted. It is anticipated as the organization develops additional positions will be added;
  • Reallocations from one budget to another can be found;
  • Workforce Solutions operating and capital budgets were based on revenue estimates;
  • Academic Affairs, Humanities and the library operating budgets were increased;
  • An increase for Student Bad Debt - $52,000;
  • The utilities budget for the Downtown and Southeast Campuses was increased $10,000;
  • OCTC custodial contract increased $17,582.56;
  • OCTC building maintenance contract increased $68,320.83;
  • State-mandated waivers and KCTCS waivers increased l .61% for the tuition rate change for a total increase of $42,l 00;
  • Added a $4,000 operating budget for the Bluegrass and Traditional Music program;
  • The KCTCS Board Required Reserve increased $13,431 for a total of $661,800;
  • The College Fund Balance budget includes the following:
    • $82,830.85 for Bluegrass and Traditional Music program,
    • $3,000 for plumbing operating,
    • $67,016.95 for an instructional designer,
    • $191,477,00 for three success coaches,
    • $126,094.95 for two recruiters,
    • $13,000 for the OCTC awards program,
    • $59,000 for nursing, faculty and staff tuition reimbursement programs, and
    • $2,000,000 for non-recurring projects and $661,800 for the Board of Regents Budget Reserve.

Ms. Price noted that each area of the College was asked to submit budget requests. These requests were reviewed and prioritized by the Executive Team.

Chair Hoyt called for a motion to accept the 2024-25 Annual Budget as presented.

Motion

.

Joan Hayden made a motion to approve the 2024-25 Annual Budget. Pat Jones seconded the motion.

Vote

The 2024-25 Annual Budget was approved by unanimous consent.

President's Evaluation

Chair Hoyt thanked the Board for 100% participation in Dr. Williams' annual evaluation and shared the results. The board gave Dr. Williams high marks and favorable comments. Chair Hoyt also gave the board the opportunity to ask questions during the meeting and informed the Board not to hesitate to contact him with any questions that may arise.

President's Report

Dr. Williams provided the following report:

  • Dr. Williams introduced Sydney Warren as the chief institutional advancement officer and thanked Mike Rodgers for his years of dedicated service;
  • An update on the SJR 179 was provided. Dr. Williams reviewed the five project areas and the presidents appointed by Dr. Quarles to chair each of those teams. Those teams are: Governance and Organization Structure (chaired by Scott Williams), Academic Programming Optimization, Student Pathways, Finance and Tuition, and Administrative;
  • OCTC work teams are being formed to focus on Artificial Intelligence and Recruitment/Retention;
  • The Council on Postsecondary Education approved OCTC's Cultural Diversity Report. Dr. Williams thanked Sharmy Davis and the committee for their contributions toward a successful report;
  • The results from the Performance-Based Funding Model were shared; OCTC dropped in only two of the 15 categories;
  • On April 24, OCTC hosted Going Pro, honoring OCTC alumni and their employers in the manufacturing and nursing fields. OCTC plans to expand the event into additional disciplines;
  • OCTC celebrated its first annual KCTCS Giving Day, meeting a goal of 25 new donations; and
  • Dr. Williams expressed appreciation for the Board's participation in his annual evaluation and thanked them for their feedback;

Chair Hoyt expressed his appreciation to the Board for their contributions to the annual campaign and shared the participation rates: 64% for the Board of Directors and 72% for the OCTC Foundation. He emphasized that when applying for grants, the percentage of participation from the college Boards is more important than the dollar amount donated.

Old Business

There was no old business.

Announcements

  • Zara Basham thanked Dr. Williams for the meal provided to the Board of Directors.
  • OCTC Graduation-May 7 & 8 at 6:30 p.m.
  • Upcoming Board of Director meetings-July 11, September 12 & November 14, 2024

Adjournment

The meeting adjourned at 7:22 p.m.

Approved

Signed by Scott Williams, Ph.D., President

Signed by Doug Hoyt, Chair