Board of Directors Meeting Minutes, May 1, 2025 | OCTC

Board of Directors

Board of Directors Meeting Minutes, May 1, 2025

OWENSBORO COMMUNITY AND TECHNICAL COLLEGE
BOARD OF DIRECTORS’ MEETING
Thursday, May 1, 2025
Minutes

BOARD MEMBERS PRESENT:  Zara Basham, Sharmy Davis, Joan Hayden, Doug Hoyt, Pat Jones, and Jordan Lanham

BOARD MEMBERS ABSENT: CeCe Robinson and Sofia Stinnett

CALL TO ORDER

The meeting, held in the Administration Board Room, was called to order at 5:30 p.m. (CST) on May 1, 2025.

APPROVAL OF MINUTES

Chair Hoyt called for a motion to approve the minutes from the March 13, 2025, meeting.

Motion: Zara Basham made a motion to accept the minutes from the March 13, 2025, meeting. A second was made by Pat Jones.

Vote:  The minutes from the March 13, 2025, meeting were unanimously approved. 

NEW BUSINESS

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

Associate Dean of Institutional Advancement Nicole Ralph shared the 2025-2026 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 2025-2026 Action Steps of the 2022-26 Strategic Plan as presented.

Motion: A motion was made by Joan Hayden to approve the 2025-2026 Strategic Plan Action Steps. The motion was seconded by Zara Basham. 

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 2025. 

Revenue

Tuition and Charges- 103.28% was received. The percentage of revenue received is consistent with OCTC enrollment for summer 2024 and 2025, fall 2024, and spring 2025.  Additionally, the net SEEK budget is incorporated into the Tuition and Charges budget. 

Noncredit Tuition- 82.59% was received. Revenue in this category surpassed the third quarter parameters, primarily for business and industry training.

Sales and Services- 100.70% was received. Revenue for this category has surpassed the third quarter parameters. Bookstore commission, online course charges, testing, and transcripts contributed to the increase in this category.

Other Sources- 0.05%% was received. This category represents the budgeted college fund balance.

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

Restricted Funds- 46.93% was received. This amount is below the third quarter parameters due to the $38 million HealthForce Kentucky budget. The college received $6,132,693.68 of CARES Act Grant revenue through the end of the third quarter. The percentage of restricted funds also reflects receipt of the restricted student financial aid for fall 2024 and spring 2025, in addition to other grant and gift revenue received. 

Expenses

Instruction- 60.53% 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- 80.22% was expended. Expenses in this category have slightly surpassed the third quarter parameters.

Student Services- 82.62% was expended. Expenses in this category surpassed third quarter parameters. System recharges including the Student Services Help Desk are expended in the first quarter of each year.

Institutional Support- 60.98% was expended. Expenses in this category did not surpass the third quarter parameters by just 0.02%.

Student Financial Aid—114.06% was expended. This category has surpassed the standard third quarter parameters. Expenditures reflect the increase in students taking dual credit classes.

Current Operating- 64.20% was expended. This category did not surpass the third quarter parameters.

Capital Outlay- 13.92% was expended. The expenditures in this category include capital equipment, including library resources. Half of the annual lease payment for the ESG-guaranteed energy project was paid in the first quarter. Note: the college’s fund balance is budgeted in this category. 

Grants in Aid- 114.06% 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. 

A comparison of the third quarter of the fiscal years 2024 and 2025 was reviewed.

Approval of the 2025-26 Annual Budget

Ms. Price presented the 2025-26 Annual Budget via PowerPoint presentation.

The total proposed OCTC 2025-26 budget is $65,550,200. 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 2025-26 budget internally: 

  • Proposed tuition rate for in-state students of $195 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 $15,470,900;
  • Other tuition of $315,720;
  • Public funds base of state appropriation of $8,168,200, performance-based funds of $2,203,700;
  • OCTC’s portion of inflation adjustment will be $379,600;
  • Adult Ag Allocation of $66,900;
  • OCTC system-wide contracts of $3,158,300;

The following notable budget adjustments were implemented for the 2025-26 year:

  • A decrease of 30.28% in federal government grants and contracts due to the HealthForce Kentucky grant;
  • An increase of 164.96% in state government grants and contracts due to the Humanitarian Assistance grant, KEES, and CAP;
  • An increase in non-credit tuition of 24% (reflecting projected market expectations);
  • A decrease of 13.80% in private contracts;
  • A 11.18% increase in sales/service due to online course charge, indirect revenue, UK MOA Comprehensive Transitions Initiative and Nurse Aide testing);
  • An increase of 22.32% contributed by the continuation of the Capital Bluegrass Music Program faculty and operating and the expendable fund balance for the SEM grants and KPI incentive programs;
  • The Board of Regents Budget Reserve is calculated on 3.25% of the Public Funds revenue. This increased 15.14% to $762,000 which is a non-recurring reserve;

Budget Assumptions for expenditures included the following. The 2025-226 budget was built on the following:  

  • The KCTCS Board of Regents requested 3% be set aside for salary/benefits and compression increases, and 1.22% for additional compression to be budgeted for full-time positions;
  • OCTC faculty promotions for 18 faculty including benefits were $58,925.95;
  • One vacant funded faculty position in Psychology;
  • Moved the Allied Health Simulation Specialist from Fund 12 to Fund 01 due to the expiring grant capacity;
  • Increased the adjunct faculty budget by $107,206.10;
  • Added 1 FTE through the UK MOA for Comprehensive Transitions initiative;
  • Added a part-time position in the Financial Aid Office;
  • A Dean position transferred from Academic Affairs to Student Affairs; 
  • Increased Public Safety full-time and part-time budgets to right-size those budgets;
  • Fixed cost increases such as the custodial contract;

The following notable budget adjustments were implemented for the 2025-26 year:

  • Instruction increased 9.31% due to salary increases, HealthForce Kentucky grant budget and an increased budget for fund balance;
  • Public Service increased 8.67%;
  • Workforce Solutions adjusted their entire budget to reflect needs in the new year including adjustments due to reduction of the CDL revenue. These changes modified almost every budget line in Workforce Solutions including full-time, part-time, and temporary lines;
  • Two M&O positions were added back from the 2024-25 budget. One position was filled, and one remains vacant;
  • HealthForce Kentucky has three vacant positions that are budgeted. The organization is still developing its organization chart as it matures;
  • Increase in the Fire Rescue Science funding due to the tuition increase;
  • Increased CIT for professional development to National Cyber League competitions and operating for Center of Academic Excellence;
  • Workforce Solutions’ operating and capital budgets decreased based on revenue estimates;
  • Academic Support decreased 38.97% due to HealthForce Kentucky grant budget and the reduction of a Dean position;
  • Library showed an increase of 3.08%;
  • Student Affairs increased 17.74% due to adding the QEP budget and an increase in student engagement—a position and operating budget;
  • A decrease in the Institutional Support of 10.11% and a decrease in Maintenance and Operations of 38.92% due to the HealthForce Kentucky budget;
  • An increase of 23.40% due to the combination of increases in waivers and student financial aid;

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 2025-26 Annual Budget as presented. 

Motion:  Pat Jones made a motion to approve the 2025-26 Annual Budget. Zara Basham seconded the motion.

Vote:  The 2025-26 Annual Budget was approved by unanimous consent.

President’s Report

Dr. Williams provided the following report: 

  • OCTC’s enrollment continues to show growth: spring 2025 enrollment is up 8%, summer and fall are showing increases over last year’s percentages: a 2% increase for summer and a 1 1/2% increase for fall; Preparation for OCTC’s decennial accreditation is progressing and on track. Results from the off-site evaluation are expected soon, and an opportunity to submit a focus report will be provided. The final draft of the QEP is due by August 1. Dr. Nuria Cuevas will visit campus as part of the process, with the official site visit scheduled for late September/early October.
  • April was Community College Month, and OCTC celebrated with two impactful events. Nearly 30 alumni participated in the Going Pro event along with 20 employers. The second event was the inaugural Trade Wars. OCTC welcomed over 120 high school students who competed in a hands-on skills competition. Congratulations to Bernie Hale for spearheading this initiative and thank you to the entire OCTC team for their support and involvement. Both events provided a valuable networking experience;
  • Dr. Williams expressed his sincere appreciation to the Board members, thanking them for their dedicated service. He explained that delays in Board appointments have been due to a lack of membership on the Nominating Committee. He has worked with community members to assist in the establishment of the committee responsible for nominating new Board members. This information has been communicated to the Governor’s Office.

OLD BUSINESS

Board Self-Evaluation

Chair Hoyt thanked the Board for completing the Board Self-Evaluation. A summary of the results and written comments was distributed to the Board. An opportunity for questions was made available.

President’s Evaluation

Chair Hoyt thanked the Board for participating in Dr. Williams' annual evaluation. 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.

ANNOUNCEMENTS

  • Joint Foundation/Board of Directors meeting—June 17, 11:30 a.m.
  • OCTC Graduation--May 13 & 14, 6:30 p.m.
  • Chair Hoyt expressed gratitude to the Board for their donation to the annual campaign, and stressed that, in grant applications, the level of Board participation is more impactful than the monetary value of the contributions.

ADJOURNMENT

The meeting adjourned at 6:56 p.m.

Approved:

Signature on File
Scott Williams, Ph.D. 
President

Signature on File
Doug Hoyt
Chair