1)  Attendance
Chair Mike Rose called the meeting of the Lane Community College Board of Education to order at 6:30 p.m. Present were:  Board Members Jay Bozievich, Roger Hall, Paul Holman, Larry Romine, Kathleen Shelley, and Dennis Shine.  Also present were President Mary Spilde; Vice President Marie Matsen; Executive Assistant to the President Tracy Simms; College Counsel Meg Kieran; Lane Community College Education Association President Jim Salt; and Lane Community College Employees Federation President Bob Baldwin.  Vice President Cheryl Roberts and Associated Students of Lane Community College President Rebecca Hill were absent.

• There is still a lot of uncertainty regarding budget projections depending on whether Ballot Measure 30 passes or fails in February.  Even though the legislature has identified where cuts would take place if the tax package were overturned and the Governor has been given authority to make those cuts, the legislature may reconvene and try to hold K-12 more harmless.  This could significantly impact Lane’s projections. 
  
• Regarding the issue of statewide governance and the idea of one board for higher education and community colleges, President’s Council has developed a plan to work with the Governor, the Oregon Business Council, and former governor Neil Goldschmidt. Goldschmidt may be appointed chair of the State Board of Higher Education. 
  
• Progress is being made on Lane’s new governance system. Different councils have been identified, and small groups are looking at the purpose and scope of work for the councils.  A report will be released to the college community after the first of the year, and feedback will be encouraged.
  
• Lane continues to receive scholarships thanks to the leadership of Foundation director Janet Anderson and her work with advisory committees and others at the college.  Recent new scholarships include:  The Women’s Care Nursing Scholarships; the John and Betty Grey Fund of the Oregon Community Foundation for scholarships to improve the quality of workers in Early Childhood Education; and two $2,000 scholarships for low income women for the Women in Transition Program.  Lori Steger, grants coordinator, was credited for writing the Early Childhood Education grant.
• The Fund for the Improvement of Post Secondary Education Grant for mathematics flexible sequencing in Algebra resulted in a $400,000, three-year grant.  Out of 1551 preliminary grant proposals submitted, Lane was one of only 147 invited to make a full proposal and only one of 22 competitively funded.
• Tim Harold, legal counsel, announced his retirement to an “of counsel” role after more than 30 years of service to Lane.  Although Lane’s principal contact with the firm will change, Harold will still be available in a consultant’s role.
  

• Approval of the November 12, 2003, Minutes
• Advisory Committee Memberships
• Tuition Rate, Board Policy D.110
• Oracle Licensing Agreement
  

• Complies with Oregon Local Budget Law.
• Contains sufficient information to enable credible projections of resources and expenditures as presented in the Budget Document in accordance with Oregon Local Budget Law.
• Discloses planning assumptions.
• Limits expenditures in any fiscal year to conservatively projected resources for that period.
• Maintains current assets at any time to at least twice current liabilities.
• Maintains the estimate of unappropriated ending fund balance at no less than three percent of the general fund operational expenditure budget.

• Not expend more funds than have been received in the fiscal year to date except as approved by the Board. unless the debt guideline is met (see A.070, #8). 
• Not use any long-term reserves that are not budgeted and appropriated for expenditure.
• Settle payroll and debts in a timely manner.
• Assure that tax payments or other government-ordered payments or filings be on time and accurately filed.
• Make no single purchase or commitment of greater than $75,000 without board approval, except in extreme emergencies.
• Acquire, encumber, or dispose of real property only with board approval, except in extreme emergencies.
• Pursue receivables aggressively after a reasonable grace period.

• Insure against theft and casualty losses and against liability losses to board members, staff, and the organization itself in an amount similar to the average for comparable organizations.
• Prevent uninsured personnel from access to material amounts of funds.
• Assure that plant and equipment are not subjected to improper wear and tear or insufficient maintenance. Assure that the organization, its board, or staff, are not unnecessarily exposed to claims of liability.
• Assure that every purchase (A) includes normally prudent protection against conflict of interest; and (B) of over $75,000 includes a stringent method of assuring the balance of long-term quality and cost.
• Protect intellectual property, information, and files from loss or significant damage.
• Receive, process, or disburse funds under sufficient controls to meet the board-appointed auditor's standards.
• Invest or hold operating capital in excess of daily requirements in accordance with ORS 294.035. secure instruments, including insured checking accounts and bonds of at least AA rating, or in interest-bearing accounts except where necessary to facilitate ease in operational transactions.
• Not endanger the organization's public image or credibility, particularly in ways that would hinder the accomplishment of its mission.
• Not name a building, substantial parts of buildings, or significant landscape features of Lane Community College without prior approval of the board; and, when a building has substantial support from a donor, without prior involvement of the Foundation.

• Submit monitoring data required by the board (see policy on Monitoring Presidential Performance) in a timely, accurate, and understandable fashion, directly addressing provisions of board policies being monitored.
• Keep the board aware of relevant trends, anticipated adverse media coverage, or material external and internal changes, particularly changes in the assumptions upon which any board policy has previously been established.
• Advise the board if, in the president's opinion, the board is not in compliance with its own policies on Governance Process and Board-President Linkage, particularly in the case of board behavior that is detrimental to the working relationship between the board and the president.
• Marshal for the board as many staff and external points of view, issues, and options as needed for fully informed board choices.
• Provide a mechanism for official board, officer, or committee communications.
• Deal with the board as a whole except when (a) fulfilling individual requests for inconsequential information; or providing information; or (b) responding to officers or committees duly charged by the board.
• Report in a timely manner known noncompliance with any policy of the board.
• Supply for the consent agenda all items delegated to the president yet required by law or contract to be board-approved, along with the monitoring assurance pertaining thereto.
• Provide semiannual budget planning information.

• Debt service, both current (due in less than 12 months) and long term
• Adequate Reserves for maintenance and repairs to its existing facilities
• Adequate Reserves for acquisition, maintenance and replacement of capital equipment.
• Adequate Reserves for strategic capital projects
• Adequate Funding levels to fulfill future terms and conditions of employment, including early retirement benefits
• Adequate Allocations for special projects related to the strategic directions of the college.
• Appropriate Allocations for contingencies (unforeseen events requiring expenditures of current resources) Ending Fund Balances (according to policies set specifically for that purpose)

• Plan how it will spend any “onetime” unanticipated revenue, allocating it strategically and prudently between:
• The restoration of any shortfall to targeted ending fund balances,
• Currently unfunded projects in the strategic plan, and/or
• Holding some or all of it in reserve during financially volatile periods.
• Permanently stabilize its finances in their entirety (operating budget, reserves, contingencies and ending fund balances) when it perceives a long term change (increase or decrease) to its available future recurring resources

• State budget appropriations for community colleges are not approved by the time the college budget is approved and adopted.
• A situation exists where significant changes in enrollment are possible but not reasonably predictable.
• When any major revenue source has a reasonable possibility of decreasing after the college budget is approved and adopted.
• When any operating expenditure that is beyond the control of the college could reasonably be expected to increase after the college budget is approved and adopted.
• Any other situation in which the board determines that there is a reasonable expectation that major shifts in revenue or expenditures could occur during the budget year.

• Minimum reserve levels shall be at the discretion of the board under advice from the budget committee and the president.
• Maximum reserve levels shall be no more than the maximum reasonably estimated shortfall at the time of the adoption of the budget.

• To replace capital equipment that is broken or beyond its useful life as determined by the Capital Assets Replacement Forecast;
• To maintain and repair college facilities according to the Major Maintenance Schedule;
• To maintain and upgrade the college’s information/telecommunications system according to planning schedules maintained by Information Technology;
• To build new instructional facilities and/or to purchase property that facilitate planned long-term growth of the college.

• Fund balances (i.e., “carryover”)
• Reserves
• One-time grants or awards of money
• Funds withheld from annual budget allocations (e.g., funds held back from annual General Fund transfer to Capital Repair & Improvement)
• Special allocations from the state (e.g., allocations from the Emergency Board)
• Other special allocations (e.g., “seed money” for a project)

• Capital equipment
• Capital construction
• Investment in a new program or service that will move to recurring funding sources after a specified trial period
• Projects related to the strategic directions of the college.

• Debt service on an obligation incurred as a part of normal operations of the college;
• Goods and services provided to General Fund units by units in other funds;
• Construction, maintenance and acquisition of facilities and/or real property used by the college in support of its mission;
• Acquisition of capital equipment for use by the college in support of its mission;
• Matching funds for grants and contracts;
• Operation of certain financial aid functions and matching funds required for financial aid grants;
• Contractual and legal obligations to employees and retirees for compensation and benefits;
• Other needs as deemed appropriate and necessary by the board for fulfilling the obligations of the college.

• Goal Accomplishment of Former Students
• Employment of Professional Technical Students in Jobs Related to Their Training
• Professional Technical Students’ Satisfaction
• Transfer Students’ Satisfaction with Lane Preparation

15)   Adjournment
The board meeting unanimously adjourned at 9:30 p.m.
 

______________________________
Mike Rose, Chair

______________________________
Mary Spilde, President/District Clerk
Lane Community College