No statements were offered from the audience.

Budget Recommendations

At the May 18, 2005 Budget Committee meeting, the committee unanimously moved to forward the following recommendations to the board for action.

Romine moved to approve the following recommendations. Rose seconded.

To lower the PERS Reserve Rate, currently at 3.92% in OPE, to 1.17% of total direct payroll expenditures for the 2005-2007 Biennium.

To approve the recommendation to create a Capital Reserve at an initial level of $300,000 with the plan that another $300,000 would be added in FY07.

To approve the recommendation to increase the Financial Stabilization Reserve for FY06 by $300,000 to a total of $800,000.

To set aside any remaining unallocated funds from the PERS Reserve rate reduction to help offset revenue shortfalls expected in FY07.

To approve the following recommendations:

1.	To discontinue differential course fees for Physical Education courses;
2.	To continue differential course fees on the 100-level and 200-level courses in Advanced Technology and Family & Health Careers that currently carry the fee;
3.	To evaluate the methodology used to asses differential fees; and
4.	To begin a two-year differential fee pilot project in Fall 2005 for selected Culinary Arts and Hospitality Management courses (first-year courses only in FY06).

Motions carried 7-0.

Resolution 500, 2005-06 Budget Adoption and Appropriation
Shelley moved to adopt Resolution 500, 2005-06 Budget Adoption and Appropriation. Romine seconded.
Motion carried 7-0.

Resolution 501, Imposing and Categorizing Taxes for 2005-06
Shelley moved to adopt Resolution 501, Imposing and Categorizing Taxes for 2005-06. Rose seconded.
Motion carried 7-0.

Vice President Matsen thanked the Budget Committee for serving under difficult circumstances with the uncertainty in the legislature.

The public hearing adjourned, and the board meeting reconvened at 7:35 pm.

Recorder: Mary Bolton