Group, stated it was broadly reviewing the entire system and will consider all proposals as reports are prepared by the other three work groups. She said they have considered many of the philosophical aspect of costs and public funding and addressed the basic principle that institutions of higher education in Utah are open to every citizen. Both issues support the theme of making education possible and convenient to every citizen as they try to meet their education needs. The four charges given to this work group were: 1) to determine if there is the right number and configuration of public higher education institutions in the state; 2) to account for the long-range planning for capital facilities; 3) a reconsideration of the institutional geographical service areas; and 4) strengthening the cooperation and partnership with public education.

    Rep. Frandsen dismissed the committee to their assigned breakout groups for further discussion.

desirable, since community colleges typically have lower tuition because they often use large numbers of adjunct professors. Using the transfer idea, students typically don't incur as much debt during the early years of college. On-going cooperation to articulate classes between universities and colleges is essential.

    The discussion group noted that Applied Technology Centers (ATC's) are funded by public education and community colleges are funded through the higher education budget. There is a concern that ATC students are already more highly subsidized than community college students for identical training.

    The regents previously discussed using performance indicator tests which are tied to funding as an incentive. Performance indicators need to be measured over a long-term period so they don't become a punishment to the institution.

    Sen. Steele asked the regents about the kinds of things they need to communicate to the legislature. Those present said they desire to do long range planning that provides for positive changes, but they have no incentive to plan without flexibility in setting tuition rates. They asked legislators to consider the broad picture of educational needs and their desires to work closely with one another. The point that seemed to be emphasized most is that the Board of Regents is in charge. Legislators present were supportive of their requests.

    Legislators were asked what they felt the Board of Regents need to hear. Legislators expressed a desire to share common data and a reporting system. They emphasized that large amounts of complicated information are not needed. Legislators are aware that the regents deal with many problems and they requested that the Legislature be informed about what is being done to resolve those issues. They asked the regents to understand that legislators are under extreme pressure from the demands of multiple agencies and requested they not dwell on negative issues, but recognize the good things accomplished by the Legislature.
        

creation of a mechanism to bring public education to the table and jointly address the issue. Regent Jordan said the Joint Liaison Committee(JLC) would be involved.

    President Budd pointed out that the JLC had formed a Common Definitions Work Group a few years ago, which he chaired. This group submitted a list to the JLC, which was accepted. The list was submitted to the Legislature in 1997. Everyone agreed to and welcomed those common definitions. Salt Lake Community College received funding to conduct a pilot program to use those common definitions, particularly in the field of Applied Technology Education (ATE). However, available data is insufficient to provide information requested by policy- making bodies. Until the necessary data is available, this effort will not be effective.

MOTION: Regent Anderton moved to recommend to the Joint Liaison Committee to continue to work on common definitions. Regent Atkinson seconded the motion, which carried unanimously.

    Rep. Frandsen said legislators are concerned with faculty workload and with receiving reliable, consistent information on short-term and long-term accountability. He referred to legislative funding of the freeways and asked, if funding can be provided for a road, why not for an educational system? What are higher education's long-term indicators? How are they being measured? What are higher education's short-term indicators to suggest how to get there?

    Rep. Frandsen said the problem with the policy-making process is staying on course. This problem is due to the two-year terms of Representatives and the turnover of Legislators and administrators. He suggested recommendations to stabilize that process. One long-term indicator body might be to strengthen the JLC. Another might be to create more opportunities for interaction between legislators and the Board of Regents. He challenged the regents to develop a model to solve this problem.

    Rep.Bigelow said the legislature has always been concerned about graduation efficiencies and faculty workload. The Executive Appropriations Committee needs better reports to educate some legislators who have a difficult time understanding higher education workload. Sen. Stephensen said he sponsored legislation to review faculty workloads and graduation efficiencies in an attempt to answer these concerns. He was excited to see the higher education community assuming this responsibility and said the regents deserved an "A" for their attempts to find meaningful indicators. Referring to Rep. Frandsen's request for the regents to stabilize the funding process, he preferred not to require stabilization in everything. The institutions and regents need flexibility to improve. He endorsed the idea of a liberal arts education, stating that it enhances society and the qualify of life.

    Regent Jordan asked President Huddleston to comment on the Utah Electronic

Community College (UECC) and distance learning. President Huddleston said many students want a particular class and have an opportunity through the UECC to take classes via distance education. President Romesburg said distant learning means students can take classes from any of the five community colleges in the state. All UECC classes are transferable.

    Rep. Rowan asked what percentage of budget allocation should be based on performance funding. Regent Jordan said the regents did not want to exceed five percent, at least not initially. They would prefer to retain the base budget and then receive what the Legislature feels they can allocate to performance funding.

    President Emert said the Work Group on Funding Mechanisms is reviewing long-term enrollment projections, missions and roles. Funding mechanisms will accommodate the fact that some institutions will continue to grow and others will not, and all will be funded accordingly. Regent Jordan said the state's heaviest funding has been on enrollment growth. The regents and presidents would like to see this practice changed. They want to encourage growth where there is capital space to handle that growth. Commissioner Foxley noted the same discussion is taking place in the other breakout group, and there is strong consensus that performance funding ought not to be punitive.

    Rep. Frandsen suggested the Auditor General be asked what kind of information should be gathered. He asked the regents to consider ways of stabilizing this process.

    Discussion shifted to institutional missions and roles and system governance. Regent Clyde, chair of this work group, said the processes of the two work groups are different. The Work Group on Missions and Roles did not have the compelling deadline which the Work Group on Accountability faced. The Missions and Roles Work Group was particularly interested in hearing from the Legislators about the work group's charge and work.

    Rep. Frandsen said during the interim process, legislators spoke with consultants about master planning for higher education. Their recommendations were to determine the needs of the educational system, then make sure the institutions can change to meet those needs. The institutions need to take into account the functions and objectives of the Western Governors University (WGU).

    President Emert said the work group is requesting the most current data on marketplace profiles from the Department on Workforce Services and the Tax Commission. It is also attempting to predict, based on marketplace tradition, job profiles in the next 5-10 years, as well as population growth by county and by age segment.

    Rep. Frandsen complimented the regents and challenged them to develop a process that is

more needs-driven than politically-driven. President Romesburg stated that the regents' process does not violate the master planning process. Last year the regents went through an exhaustive review and sent its priorities to the State Building Board, who, arbitrarily made their own list and completely ignored higher education's recommendations and priorities.

    Rep. Rowan referred to the previous day's discussion regarding ATCs and higher education. She said placing ATE facilities for college use on high school campuses might circumvent the State Building Board's discrimination, but may not be the best, or most efficient approach to this problem. She asked if the colleges could be given the same authority as public education to bond. Associate Commissioner Petersen said many states have access to property tax and bonding ability, but in Utah, it would require a statutory change. Commissioner Foxley said the regents have bonding authority, but they must balance the statewide needs of nine institutions, whereas school districts are local entities. There is a backlog of needs for new buildings, replacement buildings, and maintenance. The state's ability to provide these funds must be considered with other large projects. Associate Commissioner Petersen added the regents' authority to bond draws on institutional revenues. President Emert pointed out that other states have the authority for a local institution to use tuition-based bonds to build new buildings. Utah does not have that capability.

    President Romesburg said when the work groups look at the needs of the state, it is very likely that substantial needs will be identified for expanding or adding institutions. Higher education will soon have a crisis in Utah since it cannot accommodate students in existing facilities in the numbers who want to attend. Utah will need additional institutions or branches. The State Board of Education has announced their desire for 11 new ATCs across the state. Higher education is in the process of identifying similar needs.

    Rep. Bigelow said there was a crisis in many programs _ prisons, for example. Many of these other programs take precedence over higher education. He challenged the higher education community to discuss what will happen if the crisis arrives and there is not money to educate Utah's students. President Romesburg pointed out that the legislature capped funding seven years ago. Quality diminishes when funding is limited. Rep. Bigelow asked the work groups to identify the key issues with data to clearly note that the crisis is here. President Emert pointed out that planning ahead and making proper investments now would be less expensive than getting into a crisis situation.

    Regent Anderton said the institutions are already limiting enrollment because of students inability to pay. President Romesburg said UVSC turned away 2,300 students last fall. Regent Anderton said higher education cannot continue to raise tuition. Rep. Rowan suggested making higher education a part of the discussion process with "Envision Utah," a planning system for Utah's future. Regent Atkinson said she is on the executive committee, and education was

discussed in the beginning, but it had not been a priority. She promised to bring it up at the next executive committee meeting.

    Rep. Bigelow said he would like the work groups to address state government's role in providing subsidized education for everyone who wants it. At what point does the state decide "enough is enough?" Many people return to college for a career change. Should the state subsidize that training? He suggested that not everyone needs a college education.
    Rep. Rowan pointed out that the 2,300 students who were turned away from UVSC were qualified and admitted but could not find a class. She asked how Utah can attract the "best and brightest" students if there is no classroom space available. Associate Commissioner Petersen said community colleges are open-access institutions. If a student has completed high school, there should be room for that student in our community colleges. We should not be pricing an education beyond a student's ability to pay.

    President Budd said there was a dilemma of confusion about who was providing training in Utah. The regents' work group needs to deal with the appropriate roles and missions for higher education. He suggested that this issue be referred to the Joint Liaison Committee to discuss coordination and overlap issues with public education.

    Rep. Rowan said this is a problem because the Joint Liaison Committee is only an advisory committee. Regent Atkinson clarified that the Joint Liaison Committee is advisory to the Board of Education and the Board of Regents. She suggested more continuity. The regents serve four-year terms on the JLC and the State Board of Education members rotate annually.

    Regent Lee said she had served on the JLC for a number of years. Four years ago the committee was greatly strengthened through statutory recommendations, expanding membership, more authority to study issues in depth, and additional authority to bring in consultants with special expertise to help the JLC understand issues. The committee is set up to thoroughly examine issues which are important to public education and higher education. She recommended leaving the JLC with the same capacity and authority as it presently has. She asked that both boards accept more of the recommendations submitted by the committee. Both boards should be more attentive to the JLC's recommendations. Perhaps there should be a better reporting vehicle to the legislators.

    Rep. Frandsen summarized by making the following recommendations to the regents and presidents:

    *    Refine and improve the method of reporting JLC recommendations to the Legislature.
    *    Make a recommendation to the Legislature to depoliticize this process.
    *    Have sufficient reliable data to back up the urgency of need.

    Rep. Rowan moved that higher education continue to develop the indicators proposed by the Work Group on Accountability. The motion was seconded and carried.    

    The discussion groups adjourned their meetings at 12:00 noon