June 2000 Retreat Minutes/Arizona Board of Regents

A Retreat meeting of the Arizona Board of Regents was held June 29, 2000, at the Flagstaff Riding Club on Kiltie Lane, Flagstaff, Arizona. President Elect Ulrich called the meeting to order at 8:45 a.m.

PRESENT:	Regent George H. Amos, III Regent Chris Herstam Regent Judy Gignac Regent Jack Jewett Regent Kay McKay Regent Christina Palacios Regent Gary Stuart Regent Christine Thompson Regent Donald Ulrich
ABSENT:	Governor Jane Dee Hull Superintendent of Public Instruction Lisa Graham Keegan

Also present were: President Peter Likins, and Dr. Patti Otta, University of Arizona; President Lattie Coor and Mr. Douglas Vinzant, Arizona State University; President Clara Lovett, and Dr. Jeanette Baker, Northern Arizona University; Executive Director Linda Blessing, Secretary to the Board Judy Garza, Mr. Joel Sideman, and Dr. Thomas Wickenden, Central Office; and Student Regent Designee Mary Echeverria.

All lists, reports, summaries, background materials, and other documents referred to in these minutes can be found in the June 29, 2000, Documents File.

President Elect Ulrich introduced Nichole Ack, the meeting facilitator. Mary Jo Waits, of the Morrison Institute and a consultant for the Arizona Partnership for the New Economy, provided an overview of recent trends in development of the knowledge-based economy. She said there are eight distinguishing characteristics of the new economy: technology is a given; globalization is here to stay; knowledge builds wealth; people are the most important raw material; there is no such thing as a smooth ride; competition is relentless; alliances are the way to get things done; and place still matters, but for different reasons.

The elements needed for a knowledge-based economy are a strong intellectual infrastructure, a mechanism through which knowledge is transferred, an excellent physical infrastructure, a highly skilled technical workforce, and a good source of capital. Two intangible elements are an entrepreneurial culture and the quality of life. Ms. Waits summarized what is happening in other states to meet the challenges of the knowledge-based economy. Of the top thirty high tech metro areas, twenty-nine are investing in their universities. They understand universities are a source for skilled workers and entrepreneurs.

There was a discussion of the need for investment in the universities and performance measures that would show the investment was providing a return. Grants or aid to students would be useful if they required graduates to stay in the state and work for a certain period. It is hoped the Governor's tax initiative will raise additional money for the next ten years.

The issue of a plan for research in the state was raised. There should be an integration of the tax initiative, the Town Hall Report, the Governor's Task Force on Higher Education, and the Governor's Task Force on the New Economy. There should be a strong effort to keep rural communities involved. President Elect Ulrich said he had asked former Regent Eddie Basha to put together a group to represent minority and rural issues.

The three presidents were asked to share what they believe will be the major issues they will face in the next three to five years. President Coor said the institution's research and graduate study must move to the center of the institution and it must relate to the larger community. There must be collaboration and the Arizona Regents' University provides that vehicle. There must be a financial foundation. The Governor's initiative offers support for research, but that needs to be joined to salaries and infrastructure.

President Lovett said NAU is in the process of discussing a ten-year plan. NAU wants to remain a residential university and build quality in its programs. However, there is a great need to upgrade the physical condition of the campus. There is a need to continue partnerships with the community colleges to grow access and to focus on the Internet. There are some limited special research areas where NAU wants to have a national reputation, such as environmental research engineering.

President Likins said educators need to have confidence that Arizona wants to compete in the new knowledge-based economy and will support the educational system, or those educators will be lost. This will require money, so all revenue streams are important. The University of Arizona is now concerned with undergraduates as a student-centered research university. The university will soon begin a major development campaign, should be active in engaging venture capital, and will need to justify the need for the money.

President Elect Ulrich said he planned to focus on the financing of the universities during his year as president. He believes the Governor's initiative will provide opportunities, but all the problems can't be solved with one type of financing. He would like to see the universities engage in fund raising, reap research dollars, reallocate internally, and engage venture capital money. He charged the presidents to look at his suggestions and come back to tell the Board what they will do.

He suggested consideration be given to setting tuition for two years rather than one. He asked the members of the Council of Presidents to consider the issue and come back to the Board with what they need to do in the next two years and the tuition they will require to accomplish this. He said he knew there had been reallocations over the past several years, but he would like the presidents to consider reallocations again. He would let them know what time frame he was considering. He would like the individual university mission statements to be re-engineered or redone by September. President Elect Ulrich said the two main linchpins of his year would be to provide the universities with a sound financial basis to move forward and to implement learner centered education. This would involve the correction of faculty salaries and the re-examination of technical transfer to see if we are on the cutting edge. He asked Regent Amos to help deal with the faculty salary issue at the legislature.

President Lovett asked if the Board would be open to such ideas as differential tuition for graduate students and for campus-based students versus non-campus based students. President Elect Ulrich said he would be open to hearing various ideas concerning tuition and fees; perhaps a differential for night and weekend students.

It was suggested a work group be appointed with Regents and student body presidents to make recommendations for tuition. There was a discussion of what items to include in the budget request, given the possibility of the new tax initiative. President Elect Ulrich said he believed the timing issue was critical; therefore, he did not intend to appoint a work group. He asked the members of the Council of Presidents to make tuition recommendations. He asked Regents Jewett and Herstam to help decide how to deal with the timing issues.

Dr. Milt Glick, Dr. Thomas Trotter, Dr. George Davis, Dr. Elizabeth Erwin, Dr. John Haeger, Dr. Jerry Hogle, and Dr. Judith Sellers joined the meeting for a discussion on learner-centered education. Dr. Wickenden summarized the learner-centered activities the Board had reviewed during the past year. The Provosts presented examples of what has already happened and plans for the future.

It was asked if there was faculty support for these type of programs. Dr. Glick said there are faculty who are participating in these programs and faculty who are ready to move in this direction. When other faculty see the success, they also want to participate. The universities were asked to remain collaborative in the process of becoming more learner centered.

Those who had joined the meeting for the learner-centered discussion left and the meeting continued over lunch. Regent Herstam presented an overview of the Governor's Task Force on Higher Education. He said the members of the Task Force believe three years is too long to implement the Arizona Regents University. He proposed a change in the time table by building on Phase 2. He would like to see the development of a collaborative degree as soon as possible. The Central Office should submit a decision package for funding and Phase 3 should be done parallel to Phase 2. He would like to see an outside team of distributive learning experts, working with the Central Office, review the current and planned market. The team could be from WICHE or from the private sector. The results of the team review could be brought to the Regents for one or two study sessions.

Several Regents agreed the time table should be moved up and an outside team should be hired. President Elect Ulrich asked Regent Herstam to work with the Central Office to accomplish this.
There was a discussion of the community college ALS, access, and standards--other Task Force issues.

Ms. Nicole Ack facilitated a discussion of the proposed ABOR Action Plan for FY 2001. President Elect Ulrich asked the presidents to bring back the roles and missions of the universities in September so a long-term Public Awareness plan could be developed. He asked Regents Amos, Stuart, and McKay to make sure they have the information necessary to put together this plan.

There was a discussion of the Report Card. The members of the Council of Presidents were asked to look at what was being reported and how, and to take the opportunity to make appropriate modifications to the scope and content of the Report Card. It was suggested some benchmarks, perhaps in relation to the rest of the world, be included. This is a vehicle for the Regents to hold the universities accountable.

During a discussion of research and technology transfer, it was suggested a small panel, including venture capitalists, look at each university to advise what is right and wrong with what we currently are doing and what policies may need to be revised or added. This would be a significant undertaking and it would require people with a contractual background. Regent Stuart was asked to work with the Vice Presidents for research, the university counsels, and Board Counsel on this issue. This would include what the three universities have been doing and how the Regents could help. Regent Palacios was asked to help Regent Stuart.

Executive Director Blessing explained what the Central Office is doing to prepare for a sunset audit by the Auditor General's office to be conducted in the fall. She was asked to send a copy of the summary of the last audit to the Regents.

Tuition setting was discussed again. The members of the Council of Presidents were asked to consult with the appropriate parties and to come back with a plan after the first of the year. The Board asked for quantitative recommendations.

As the presidents drafted their mission statements, each was asked to differentiate their own universities from the other two universities.

It was asked that an item be added to the Action Plan stating there would be an effort on the part of the Board of Regents to assist the Town Hall recommendations in becoming a reality.

The meeting recessed at 1:45 p.m. and reconvened at 1:50 p.m. for a Study Session on Capital Development. Dr. Mernoy Harrison, Mr. Joel Valdez, Dr. Michael Mullen, Mr. Dave Harris, Dr. Charles Backus, and Dr. Elaine Maimon joined the meeting for this discussion. Mr. Harris explained this was not a presentation on a capital request; it was a ten-year forecast for the Board's information. The purpose of the presentation was to acquaint the Regents with the capital needs versus the capital resources. Dr. Harrison, Mr. Valdez, Dr. Mullen, Dr. Backus, and Dr. Maimon explained the capital needs of each of their institutions. There is a deferred maintenance backlog because the building renewal formula has not been fully funded in past years. The space needs have been calculated using the DeMichele Committee formula, which doesn't include research facilities. Infrastructure has been included in building renewal, but the formula has not changed. There is a need for the revitalization and rejuvenation of existing facilities.

There was a discussion of how to insure people understand these are real needs, not a wish list. There are people who believe no new buildings should be built because of the future of distance learning. The current buildings do have need of remodeling to meet the Americans with Disabilities Act requirements. Some of the buildings do not meet current life safety requirements. When buildings need repair, it hurts the marketing of the campus to prospective students and their parents.

There was a question concerning the history of maintenance on each building. There are some records dating back to 1984 when building renewal began. Current bonding authority availability should be examined as the proposed request for 2002 would require more bonding authority. When more courses are taught incorporating technology, there is a need for more technology infrastructure.

There was a question concerning space availability at ASU West if it should become a four-year campus. There is a new building coming on line which should handle the initial new students. Also, there is currently space available during the day; ASU West is over capacity between 5 p.m. and 10 p.m.

MINUTES

ARIZONA BOARD OF REGENTS

MINUTES OF A RETREAT MEETING

June 29, 2000