Meeting Minutes - September 2000

Minutes of the Meeting of the Board of Regents of the University System of Georgia
Held At 270 Washington St., S.W., Atlanta, Georgia
September 12 and 13, 2000

CALL TO ORDER

The Board of Regents of the University System of Georgia met on Tuesday, September 12 and Wednesday, September 13, 2000 in the Board Room, room 7007, 270 Washington St., S.W., seventh floor. The Chair of the Board, Regent Glenn S. White, called the meeting to order at 1:00 p.m. on Tuesday, September 12. Present on Tuesday, in addition to Chair White, were Vice Chair Hilton H. Howell, Jr. and Regents Hugh A. Carter, Jr., Connie Cater, Kenneth W. Cannestra, Joe Frank Harris,, Edgar L. Jenkins, Donald M. Leebern, Jr. Elridge W. McMillan, Martin W. NeSmith,, Joel O. Wooten, Jr., and James D. Yancey. Regents Juanita P. Baranco and J. Timothy Shelnut arrived during the meeting.

ATTENDANCE REPORT

The attendance report was read on Tuesday, September 12 by Secretary Gail S. Weber, who announced that Regent George M. D. (John) Hunt III had asked for and been given permission to be absent on that day. Regent Charles H. Jones was also absent.

APPROVAL OF MINUTES

Motion properly made and duly seconded, the minutes of the Board of Regents meeting held on August 8, 2000 were unanimously approved as distributed.

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INTRODUCTION OF NEW PRESIDENT OF CLAYTON COLLEGE & STATE UNIVERSITY

Chair White called upon the Chancellor to make a special introduction to the Board.

Chancellor Portch thanked Chair White and said that he was pleased to introduce to the Regents the new president of Clayton College & State University ("CCSU"). However, before introducing the president, the Chancellor wanted to recognize some people who had been instrumental in the presidential search process. The chair of the CCSU Presidential Search Committee was Dr. Linda E. Nash, Associate Professor of Mathematics at CCSU. Chancellor Portch noted that Dr. Nash is a "total System product" in that she earned her bachelor's degree at North Georgia College & State University and her master's and doctorate degrees from Georgia State University. The Chancellor commended her work in the search process and finding the right match for CCSU. He asked Dr. Nash to stand and be recognized. Chancellor Portch noted that Mr. Michael F. Vollmer had served as Acting President of CCSU during the search.

The Chancellor noted that the new president of CCSU, Dr. Thomas K. Harden, was known as the "double dean" at Eastern Michigan University because he held two deanships at once. He was Dean of the College of Technology and was also asked to be Dean of the College of Business for a year. When Chancellor Portch visited the campus, he was most impressed that the College of Business faculty had the highest praise for the job Dr. Harden had performed in some very difficult circumstances. The business community was also very pleased with his outreach efforts. In addition, Dr. Harden has a solid background in technology, and with the investment the University System and CCSU have made in technology, that was very important to the search. The Chancellor noted that President Harden also has strong strategic planning and implementation skills. CCSU is one of the System's entrepreneurial institutions, and yet, it is time for some strategic planning around that entrepreneurship, said the Chancellor. He asked President Harden's administrative staff in Michigan what was the one thing they would change about their boss. The worst things said about him were that his hair was never mussed and his jacket was never unbuttoned! The Chancellor realized that President Harden was very much liked and admired at that institution. Regent Baranco chaired the Regent committee, which also included Regents White and Yancey. They felt particularly good about their final selection. President Harden has a bachelor of science degree in industrial education from Miami University, a master's degree in educational administration from the University of Dayton, and a doctorate of education in adult technical education curriculum and instruction and educational administration from the University of Cincinnati. Chancellor Portch then introduced President Harden.

President Harden thanked Chancellor Portch and greeted the Regents. He noted that Representative Gail M. Buckner (district 95) was present at the meeting and that there are many supportive leaders in the CCSU community. CCSU aspires to be the institution of choice for that region. President Harden said that he was humbled by the opportunity he has and the knowledge of what has taken place before him at CCSU. He explained that while he was chosen for the presidency, he actually chose this job about three years before it was actually offered to him. He knew at some point that he would like to be a president of a university. He began looking at various institutions and university systems. He came across the Web site for the University System of Georgia and began reading the minutes of past meetings, where he got a sense of what the Board had been doing and who the Chancellor is. He was very impressed. At one point, he came across information about CCSU, and he was tremendously excited by the things going on at that institution. He knew that if the position of President ever came open, he would try his best to get it. He was fortunate enough that it happened at a time when he could apply for the job, and he was the winner of the position. President Harden has been on campus for approximately three months, and his decision has been reinforced daily as the right decision for him. He hopes it will turn out to be the right decision for the university and the System.

President Harden stated that CCSU must be more effective in its fund raising activities, because the university has needs that it must meet. He thanked the Board for treating CCSU well, but it is the university's responsibility to raise some of the funding. CCSU is known as a technology institution to many. Its Information Technology Project ("ITP") has received tremendous recognition and, in some ways, has put the university on the map, along with Spivey Hall and some of the music programs. However, ITP is using equipment that is somewhat dated, and there are some serious challenges with that. So, the university is planning its next iteration of ITP, an iteration that will take it to the next level, building on its successes and proclaiming the tremendous success that ITP has been for the university, the students, and the faculty. President Harden remarked that he is very proud of the heritage CCSU is building and that the university is going into the next iteration with great vigor. He explained that there are many other initiatives and priorities at CCSU, but he did not want to take too much of the Board's time. He thanked the Regents for allowing him to address them and said that they could look for great things to come from CCSU. He also thanked the CCSU representatives in attendance at the meeting for their support. In closing, President Harden stressed that the best is yet to come.

Chair White welcomed President Harden to the University System and to Georgia. He thanked Jennifer Fairchild-Pierce, Assistant Secretary to the Board and the Chancellor, who writes the minutes, for helping attract President Harden to CCSU. He also thanked Dr. Nash and Mr. Vollmer.

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COMMITTEE ON FINANCE AND BUSINESS OPERATIONS, "COMMITTEE OF THE WHOLE"

Chair White next convened the meeting of the Committee on Finance and Business Operations as a Committee of the Whole and turned the chairmanship of the meeting over to Regent Yancey.

Chair Yancey explained that the purpose of this meeting was to review the proposed operating and capital budget for fiscal year 2002. He commended Senior Vice Chancellor for Capital Resources Lindsay Desrochers and her staff for their hard work in preparing the budget proposal for this meeting. He asked that the Regents hold their questions until the end of the presentation, and then, he called upon Dr. Desrochers to begin the presentation.

Dr. Desrochers thanked Chair Yancey for all the support he has given the budget staff. She also thanked Ms. Sharon Duhart, Administrative Coordinator for Fiscal Affairs, who had created the PowerPoint presentation for this meeting. Dr. Desrochers reviewed the budget process for the benefit of the newer Regents. She explained that during June and July, the Chancellor convenes a presidential advisory committee. The committee membership rotates so that, at some time, all presidents have an opportunity to participate. The committee gets inside issues with the Central Office budget staff and helps the staff develop strategies that are formulated into the budget proposal to the Board. In July and August, the staff requests input on the budget request from the presidents and Regents. In September, the proposed budget is presented to the Board. Once approved by the Board, the budget is presented to the Governor's Office of Planning and Budget ("OPB"). The Governor then presents his budget recommendations to the General Assembly. At this point, discussions with the Legislative Budget Office ("LBO") and the legislators begin. All of the issues, as they have been selected by the Governor for inclusion in his budget, must be discussed with and made available to the legislators and the staff at LBO. In March or early April, the General Assembly approves the state budget, including state appropriations to the University System. At the April Board meeting, the Central Office budget staff present to the Board budget allocation recommendations for funds appropriated by the state. Tuition and fee recommendations are also presented for approval by the Board in April. Finally, at the June Board meeting, the staff presents for Board approval a final budget, including all of the previously approved budget allocations and all other revenue sources, such as federal research monies and auxiliary enterprise funds. Also at the June Board meeting, the Regents look at the proposed major capital projects for the following year. The Board votes on which projects to add to the five-year rolling capital projects list for the next fiscal year's budget consideration. Dr. Desrochers noted that this was the complete year-long process. In this process, the Regents and the presidents have significant involvement.

Dr. Desrochers said that at this meeting, the presenters would be discussing Item 1 of the agenda of the Committee on Finance and Business Operations (page 28). Item 1 is the fiscal year 2002 operating and capital budget request for the University System of Georgia. Additionally, the Board will be asked to approve the fiscal year 2001 supplemental budget request. Dr. Desrochers noted that in recent years, the state has had adequate revenues to be able to make some supplemental amendments to current-year budgets. Again, this year, the Board will be requesting such appropriations. She then introduced the Chancellor, who would be discussing major themes of the proposed budget and several budget enhancements.

Chancellor Portch stressed that development of the budget is very much a team effort. Each year, different presidents comprise the presidential advisory committee. This year's committee consisted of the Chancellor and Presidents Rosemary DePaolo, Georgia College & State University ("GCSU"); Bruce F. Grube, Georgia Southern University; Dorothy L. Lord, Coastal Georgia Community College; Beheruz N. Sethna, State University of West Georgia; and Francis J. Tedesco, Medical College of Georgia ("MCG"). One of the major themes emphasized in the budget request is maintaining the momentum of the University System. The Chancellor noted that he would discuss this theme more fully in his State of the System Address at Wednesday's Board meeting. He explained that the benchmarking and management review initiative was intended to improve the University System's regional and national competitive position. A number of the budget initiatives are aimed directly at trying to strengthen the System in that regard. In the last few years and now with the establishment of the Committee on Information and Instructional Technology, the Board has come to recognize that technology is a significant part of the academic, business, and fiscal future of the University System. So, there is continued budgetary emphasis on educational and management use of technology. The System's role in economic development also has established great momentum, which should be continued.

The Chancellor said that the current budget formula, which was created in the 1980s, has served the state extremely well. It was formulated as an equal partnership between the Board of Regents, OPB, and LBO. The University System has been appreciative of that partnership. However, the staff have been in conversations with OPB and LBO in the past several months about the need to modernize the formula. In 1982, instructional technology was perhaps nothing more that a mimeograph machine. Therefore, there is no factor in the current budget formula for technology as we know it today. At the time of this meeting, the staff were still in conversations with OPB and LBO about modernizing the formula. The staff will get back to the Regents with final numbers once an agreement has been reached. There is also not a set figure in the budget proposal for faculty and staff salaries. Chancellor Portch explained that the Governor and OPB are still working on the total state budget, but the staff feel a need to make the case on behalf of the Board that the University System needs a couple of strong salary years. The University System is starting to experience a little slippage in this area. When the Chancellor came to the University System in 1994, average faculty salaries in the University System were around the middle of Southern Regional Education Board ("SREB") states. After a number of years of significant salary increases, the University System reached number two in SREB states. However, in the last few years, we have slipped back to fourth among those same states. The Chancellor noted that while the University System is not in a crisis, he has been hearing from presidents that the System has lost some potential faculty hires because of salaries. So, the staff would recommend to the Governor that over the next couple of years, the System needs some reversal of the recent trend in terms of salary increases in order to remain competitive and keep its momentum.

Chancellor Portch reminded the Regents that three years ago, the Board's major strategic planning initiative was teacher preparation. This fall welcomes the entering class to which the University System has assigned its guarantee. Following this presentation, the Committee on Education, Research, and Extension would meet and hear an update on that initiative. The Central Office staff are in very close communication with the Governor's Education Reform Study Commission. They anticipate that there are several areas the Governor will include in his initiative this year, and they want to be able to respond to this challenge. The Chancellor remarked that if there is a school that is outperforming the backgrounds of its students, there will normally be a number of consistencies: 1) a very gifted principal who can instill great enthusiasm into the school, 2) a principal who treats teachers as professionals, 3) a school that has high standards for all of its students, and 4) a school that has parents who are involved in their children's education. Virtually every one of those characteristics depends on a gifted principal. The Central Office staff would like to propose a new academy for principals and identifying potential new principals. This would include not only internships in education, but also internships in business, so that future principals can experience some different ways of looking at management responsibility. A second part of the teacher preparation initiative is that the secondary school teachers will be required to major in their content areas. The update on the initiative would go one step further and require that they need to earn a degree in their respective content areas as well as certification in teacher education. To do that, the University System will need to add not education faculty, but rather arts and sciences faculty. There is also a very serious problem with the number and availability of special education teachers. The Central Office staff are proposing that institutions dual train some teachers so that when they are called upon to either be in special education classrooms or have special education students in their general education classes, they will have training for that. Chancellor Portch noted that the PRAXIS scores are taking on an incredible significance now that reporting the PRAXIS scores is required. There are a few System institutions that need to raise the PRAXIS scores of their students, which would allow some intervention and assistance for targeted institutions for supplemental instruction to try and help students raise their scores. The Chancellor remarked that teacher education continues to be a major priority in the University System and part of the Board's responsibility to the state.

Next, Chancellor Portch discussed the Postsecondary Readiness Enrichment Program ("PREP"). He noted that it has served over 23,000 students directly and many more who were brought to System institutions and understand that the admissions standards that will be implemented in 2001. This may require reinventing PREP, but there is a need for not only the current funding, but also additional state funding for the program. The University System will also likely have to raise additional federal and/or private funding to maintain its commitment to helping students get ready to achieve at a level necessary to meet the new admissions standards.

The Chancellor next discussed mission-related initiatives, which include a required match from the federal government for Fort Valley State University, one of the System's two land grant institutions. The federal government provides funding for land grant institutions that, through their designations, offer agricultural research and extension services. Over the last few years, the federal government has started requiring states to match that funding. Last year, the state was required to match at 45%, which was over $1 million. This year, the state is required to match at 50%, which will add an additional $265,000. The second mission-related initiative relates to GCSU's mission as the state's public liberal arts college. Chancellor Portch noted that on his first tour of Georgia, parents often expressed that they felt the University System needed a public liberal arts college. GCSU stepped forward to take that challenge when it went through the mission review process several years ago. In October 1999, President DePaolo made a presentation to the Board showing how GCSU fared against its competition on several indicators in a benchmarking exercize. The Chancellor said that it is time to accelerate this process. He reported that the College of Charleston in South Carolina currently has 507 Georgia students enrolled and remarked that he would rather see those students enrolled at GCSU. To do that, GCSU must take some further steps. One of the features of a public liberal arts college is relatively small class sizes. Peer comparisons indicate that such colleges usually have a student-teacher ratio of about 17 to 1. Currently, GCSU's ratio is about 22 to 1. So, GCSU needs to hire additional faculty to reduce class sizes and make the feel and quality of the college on par with comparitor institutions. Chancellor Portch has told institutions that when they have a mission-related request, they should not depend solely on state funding. Rather, they must present a package plan. GCSU has brought forward an innovative package with three components: 1) a budget request of $3 million for the purpose of increasing the number of faculty; 2) a tuition increase to generate another $3 million, if the students agree; and 3) a commitment to raise $1 million a year of private endowments for this purpose. That combination of public, private, and student partnership would generate $7 million toward hiring the additional faculty necessary to be competitive. The Chancellor noted that this would be a change for the Board. Typically, tuition is different among the sectors but not within the sectors. This would be the first time the Board has allowed one institution in a sector to have a tuition differential. He stated that there is a very legitimate reason to do so, and if the students are convinced of that, the Board should be prepared to do that. However, the Board will not have to take that action until next April when it approves tuition increases, but if next April the staff report that the legislature and the students have agreed to the funding, the Chancellor wanted the Regents to be aware of the commitment they are making. He stressed that this is a market-driven move and GCSU has confirmation that students and parents are willing to pay a little extra for this. He noted that the difference between what parents pay to send their children to private liberal arts institutions elsewhere pales in comparison to the additional cost at GCSU.

The final point the Chancellor addressed was the eminent scholars program. He reminded the Regents that the program was started several years ago, but only at the research institutions. Three or four years ago, another institution was able to raise the required money, which is $500,000. The University System has 13 eminent scholar commitments this year. So, due to Governors guidelines which restrict the size of funding requests, the staff were proposing a minimum of $3 million in matching monies for the eminent scholars program, which would allow for funding six to eight scholars. Chancellor Portch reminded the Board that the funding is provided to the foundation that has been able to raise the money, and then the endowment is permanently applied to the positions. The Chancellor then introduced Senior Vice Chancellor for Academic Affairs Daniel S. Papp.

Dr. Papp explained that the technology enhancements in the proposed budget consist of five different initiatives and together total approximately $18.2 million. In the interest of time, he discussed only the two largest of those five initiatives; the three initiatives he did not discuss were Georgia Global Learning Online for Business & Education ("Georgia GLOBE"), Georgia Library Learning Online ("GALILEO"), and efforts targeted specifically to business and student services. Within the technology enhancements, the two largest concern PeachNet and the technology master planning initiative. The PeachNet effort is a $7.7 million effort to improve the capability of the PeachNet system throughout the state to provide connectivity to students, faculty, and staff so they can continue to accelerate their involvement in information age learning. With regard to technology master planning, Dr. Papp reminded the Regents that they had undertaken a major technology master planning effort at the System level. The requested funding would begin to address technology master planning at the campus level. There would be an integrated master plan at the System level combined with the campus level planning.

Next, Dr. Papp addressed the Georgia Tech Regional Engineering Program ("GTREP"). It is the program that brings together Armstrong Atlantic State University, Georgia Southern University, Savannah State University, and the Georgia Institute of Technology to deliver programs in engineering in Savannah and Statesboro. There are two major programs being offered through GTREP: computer engineering and civil engineering. There are over 160 students currently enrolled in the second year of this program, and the budget request includes an additional $3 million for the continuation of the program over the upcoming year. Dr. Papp stressed that the technology enhancements he had discussed are critical components of the University System's strategic initiatives this year. In closing, he introduced Assistant Vice Chancellor for Development & Economic Services Annie Hunt Burriss.

Ms. Burriss explained that she would discuss the Board's economic development initiatives. She explained that for every dollar invested in the Intellectual Capital Partnership Program ("ICAPP"), there is a $15 return to the State of Georgia. That does not include capital investments; rather, it includes people who are better educated for knowledge jobs and making more money. For fiscal year 2002, the ICAPP portion of the budget request is approximately $3.2 million in new funding.

This would be applied to three areas. First, $1.5 million would be for the ICAPP Advantage program. That would enable Governor Barnes and the University System to attract new companies to Georgia and help existing companies expand. Second, $200,000 would be made available for marketing. Chancellor Portch has an ICAPP advisory council that is composed of a very diverse group of business leaders from across the state. They have said repeatedly that ICAPP must be marketed. The third area that falls under the requested ICAPP funding is Operation Mobilize, which will help the two-year institutions respond to their marketplaces and have a business liaison to bring in ICAPP Advantage projects. Ms. Burriss recounted that she was on a trip to Israel with Governor Barnes when he was recruiting high-tech companies to Georgia, and the experience was the inspiration for this program. In closing, she introduced President Frances J. Tedesco, Medical College of Georgia ("MCG").

President Tedesco thanked Ms. Burriss and explained that the biomedical and health sciences collaborative is based on the principle that both the speed and the outcome of biomedical research would be greatly enhanced by the interactive collaboration between research universities. One tangible outcome of the increased collaboration and cooperation between MCG and the University of Georgia ("UGA") is that the close relationship should allow the institutions to more readily compete for federal funding. President Tedesco noted that the federal budget proposes an increase in National Institute of Health ("NIH") funding from $17.5 billion to roughly $20 billion, an approximate 14.7% increase. This vastly surpasses proposed increases by the Department of Energy and the National Science Foundation, which are the two areas that traditionally present the most money available to academic institutions for research. President Tedesco asserted that this is reflective of the fact that this country and its leadership realize that the commitment to biomedical research not only has tremendous impact on human kind, but also has the greatest connection to economic development of any research before. He said that the potential is that with federal increases in funding and the Governor's new cancer initiative, people are realizing that if we bring together different individuals to work on problems, there can be a tremendous outcome. This is more an investment than a cost, because by bringing together scientists who have tremendous impact in genetics, the likelihood of positive outcomes is very high. This investment in collaboration should result in some immediate tangible outcomes. First, there will be the collaboration and cooperation of both institutions. Secondly, this collaboration should greatly enhance the amount of federal funding that will come to Georgia. Third, if one looks at the number of start-up companies in Georgia, one finds the greatest growth in biomedical areas. In fact, of the five companies presenting next month at a Southeastern conference of start-up companies in this field, three of them are related to either MCG or UGA and this collaborative effort. So, this investment should tremendously enhance not only the educational value, but also the research capability of the institutions. In closing, President Tedesco introduced President Rosemary DePaolo of Georgia College & State University.

President DePaolo stated that the University System had been involved in a thorough assessment of itself through its benchmarking and management review initiative. The proposed budget is a direct response to the benchmarking/management review report by Pappas Consulting Group, Inc. and Arthur Andersen LLP in cooperation with the Governor's Office and seeks funding to lead the University System from the one-time review to "Accountability Plus," explained President DePaolo. To get there, the System needs to collect data, archive it, access it, and analyze it. Fundamental to making this possible is the establishment of a data "warehouse." To illustrate her point, President DePaolo noted that two Regents own car dealerships. They know that to manage their multiple dealerships, they must maintain a very detailed inventory of new cars, used cars, parts, services, repairs, and recalls. Sometimes, they might want to examine that inventory to look at individual components of it, and at other times, they might want to see how those components connect to each other. Every year, they will want to do an annual review of that inventory and examine trends in the inventory. The management of that information is a data warehouse; it is essentially a system to promote easier access to all the information. For the University System, a data warehouse would provide management of data that have to do with fiscal affairs, student affairs, and faculty and how they all interconnect. As part of the data warehouse, the System also needs to develop the kinds of survey instruments that it currently does not have, such as surveys of students, alumni, and employees. Further, the System needs to ensure staff for the data warehouse, particularly at the smaller institutions that do not have the personnel to engage in this kind of ongoing institutional research. There will also be a need for additional staff resources at the Central Office, because management of the data warehouse will be demanding.

President DePaolo stressed that the Board will need to work closely with the Governor's Office to take these next steps to get the work done so that the benchmarking/management review report will continue to have influence in the System. The Board needs to take the report to the next level of implementation of accountability in a consistent, ongoing, and responsible fashion. However, the Board cannot accomplish this without some direct investment of funds and human resources, in fact, $7.5 million worth of resources. President DePaolo remarked that the timing is right for the development of the data warehouse, because the System previously lacked the capability to have accountability at this level. Now, with PeopleSoft nearly implemented, the University System has all the pieces in place to take it to the next level of accountability. The University System of Georgia is the only university system in the country that has assessed itself as a whole, and Dr. DePaolo said that the Board should be very proud. However, now is the time to add the additional funding to ensure that the benchmarking initiative maintains momentum and that the University System stays in the forefront nationally, both for its product and the way it assesses itself. In closing, she introduced Associate Vice Chancellor for Fiscal Affairs William R. Bowes.

Mr. Bowes began with the budget enhancement request, a total of $42.9 million, which is just under the 3% guideline established by the Governor. However, the University System is also asking a special request for the Accountability Plus initiative at $7.5 million, for a total of approximately $50.4 million in enhancements. Mr. Bowes explained that the adjusted appropriation base for fiscal year 2001 is approximately $1.432 billion. The total budget enhancement request for fiscal year 2001 is $50.4 million, and the requested fiscal year 2002 appropriation is approximately $1.482 billion. Mr. Bowes stressed that these are the items covered by the budget formula and special funding initiatives.

Next, Mr. Bowes discussed the "B" unit request. The "B" unit functions and activities are funded as line items in the annual state budget appropriation and include such activities as agricultural extension, cooperative extensions, agricultural experiment stations, the Central Office, and the state public library system. The total increase for fiscal year 2002 is approximately $6.2 million. Mr. Bowes noted that responsibility for the Office of Public Library Services is a new function for the University System. The proposed budget request for this is approximately $937,000, which is proposed to increase the per capita support to the public library systems for materials and programs specifically for targeted groups, such as preschoolers, children, and teenagers. Georgia ranks forty-sixth among states in per capita support for books and materials acquisitions, and this request will begin to move Georgia closer to the national average.

Mr. Bowes then addressed the fiscal year 2001 supplemental budget request, which totals approximately $37.1 million. The first item in the request harkens back to the budget discussions last year in which the University System had an agreement with the Governor for $24 million as a match against monies that the System institutions voluntarily set aside from their fiscal year 2000 appropriation to be used in the current year to meet their costs. Those dollars bring the System up to a level that enables it to meet its current enrollment demand, which is rebounding from semester conversion. Technology initiatives and ICAPP had already been addressed by Dr. Papp and Ms. Burriss, respectively. In the supplemental budget request, there are one-time-only expenditures related to these initiatives for equipment and other such purchases. There is also a request in the supplemental budget for the public library system's Public Information Network for Electronic Services ("PINES"), which is an electronic catalog of all materials in 98 participating Georgia libraries that allows sharing of materials across those libraries. This is a request for $1.6 million to continue the rollout of this integrated circulation system, which, combined with some year 2000 and federal funds, would add another 155 participating libraries. Regarding health insurance costs, Mr. Bowes stated that no firm figure could be provided at this time. Working in concert with Commissioner Russ Toal of the Department of Community Health, the University System agreed to delay until January 1, 2001 the start of its preferred provider organization ("PPO") plan and making benefit changes in the self-insured indemnity plan, which will result in some continuing deficit in the existing healthcare insurance plans for the current six-month period. Mr. Bowes said that it is expected that the implementation of the PPO will cover full costs, and he noted that the Committee on Finance and Business Operations would be discussing insurance premium rate changes later in its Committee meeting. He explained that at this time, there is no firm figure for the deficit, but the staff have been in communications with OPB, and at some future point, when the staff know the magnitude of that deficit, they will be returning to the Board with a recommendation of how much money will need to be added to the supplemental budget request. The last item in the fiscal year 2001 supplemental budget request is a pilot information technology project. Mr. Bowes reminded the Board that for the past three years, Clayton College & State University and Floyd College have been conducting a pilot project for the University System, which has transformed the technology infrastructure of those institutions and ensured that all students and faculty use laptop technology in their courses. With the aging of that equipment and the burden that the technology fees have placed on students, this part of the supplemental budget request ($3 million) will complete the pilot phase of the project and allow both institutions to complete their funding obligations and close out the initial phase of the project. Mr. Bowes reiterated that the total fiscal year 2001 supplemental budget request is approximately $37.1 million, excluding the anticipated healthcare indemnity plan deficit. Next, Mr. Bowes asked the Chancellor to discuss the capital budget request and wrap up the budget presentation.

Chancellor Portch again stressed accountability. He stated that the staff have developed the Accountability Plus request in consultation with Mr. Michael F. Vollmer, Director, Office of Education Accountability. Mr. Vollmer has encouraged the staff to make this request because he is currently occupied with the K-12 accountability system, which by statute has to go into place before the University System's accountability system. The University System is not required to have its first "report card" until December 2002. One of the outcomes of this year's strategic work plan will hopefully be the University System's first run of a benchmarking "report card" to the public. Chancellor Portch noted that the consultants' benchmarking/management review report had grown since the August 2000 Board meeting from 400 pages to 1,000 pages and noted that the public likely does not want a report card that is 1,000 pages long. So, the Board has its work cut out for it in terms of establishing accountability processes and maintaining them long-term.

The Chancellor reminded the Regents that June is the month in which the Regents vote on the five year rolling capital projects list. Right now, the list is comprised of 24 projects, 8 of which are in design. This type of rolling list allows the Governor and the legislature to see the System's long term plan. There are also 15 minors projects in the proposed fiscal year 2002 budget, the majority of which the Regents have seen before and 7 of which are in design. The legislature and Governor have decided to only fund equipment in the year in which construction is actually being done, and so, for the projects that were funded last year, the staff are proposing a request of approximately $9 million for equipment. There are also four payback projects, one of which is currently in design, and the total cost of those projects would be approximately $35 million. Chancellor Portch said that this completed the total operating and capital budget request, and he turned the floor over to Chair Yancey.

Chair Yancey thanked the Chancellor and opened the floor for questions.

Regent Jenkins asked President Tedesco how much funding MCG currently receives from NIH.

President Tedesco responded that MCG currently receives approximately $22 million a year in NIH funding.

Regent Jenkins asked whether that amount has generally been increasing or decreasing.

President Tedesco responded that the funding has been increasing every year for the last six years. He added that the benchmarking data will outline clearly the status of MCG. The synergy of working with UGA will allow for expansion of research at both institutions and will lessen the investment the state has to make. However, the state will have to make an investment if it wants these institutions to achieve the next level of research.

Regent Carter noted that the budget enhancement request totaled approximately $42.9 million and asked to what amount that would be added.

Chancellor Portch responded that the $42.9 million reflects a 3% increase over the current fiscal year 2001 operating budget, a budget directive from the Governor's Office. A few of the projects are new, but the majority of them are repeat items.

Dr. Desrocher noted that Appendix III of the Regents' budget request document identifies those projects which are existing special initiatives and shows the current funding levels.

For clarity, Regent Carter reiterated that $42.9 million was approximately 3% of the current budget.

The Chancellor stressed that it represents 3% of the current budget, excluding the formula and faculty/staff salaries.

Regent Cannestra noted that the eminent scholars program is an outstanding program, but few of the smaller institutions have been able to attract the private funding necessary to participate in the program. He asked whether there is some way the Board could help those institutions raise that funding, because it seems that an eminent scholar at a smaller institution would be more important that one at a larger institution.

Chancellor Portch responded that one of the smaller institutions, Gainesville College, raised enough matching funding last year to have an eminent scholar, because President Martha T. Nesbitt had made it a priority. Regent Jenkins had helped in this effort.

Regent Cannestra reiterated that the Regents should help the smaller institutions.

The Chancellor noted that Dalton State College ("DSC") and Macon State College had done particularly well in this regard.

Regent Cannestra stated that he was referring to institutions like Waycross College, which perhaps would not have the potential for investors that some of the other small colleges have.

Regent Jenkins noted that DSC initially convinced the city and the county to contribute.

The Chancellor remarked that this was a very innovative approach.

Regent Harris stated that he was encouraged with the Chancellor's discussion of the revision of the formula budget. He asked whether the budget must be revenue-neutral in ongoing negotiations.

Chancellor Portch stressed that the staff are not in negotiations, but rather conversations. They hope that the formula will be modernized to include a technology factor, an increase in MRR funding, and funding for the increase in enrollment, all of which will generate additional funding.

Regent Harris remarked that this is probably one of the most important aspects of the budget, and he hopes the staff will be successful in this process.

Regent McMillan asked what happened to the SREB payment and the Regents Scholarships that used to be in the budget.

Chancellor Portch replied that the SREB payment is included in the Central Office budget. However, the Regents Scholarship funds were redirected because of a state audit which questioned the need for its continuation since it has now been superseded by the HOPE Scholarship Program.

Regent White asked whether the $7.5 million allocated for data collection and benchmarking would be a constant figure in future budget proposals or whether it would increase or decrease.

Chancellor Portch responded that elements of that figure would be constant; however, the data warehouse development effort would be a one-time cost. Nonetheless, where technology is concerned, innovation is constant, and along comes another one-time cost. To give some context to the situation, the Chancellor noted that the data warehouse for the K-12 system initially cost approximately $50 million. The University System has functioning data systems, but they are only adequate for information, not accountability. The benchmarking/management review report stresses investing resources in collecting and maintaining data. There is also the one-time cost of developing surveys as well as the cost of purchasing licensing results for state and national licensing.

Regent Cater noted that there is an approximate $1.8 million element in the budget for PREP. He asked for an estimate of how much money has been spent on the program to date.

The Chancellor responded that approximately $10 million in state funds had been spent on PREP. He stressed that the presidents believe this is critical investment.

Regent Carter asked the Chancellor for an estimated timetable for the changing of the formula budget.

Chancellor Portch stated that when he last met with the directors of OPB and LBO, there were some thoughts that this might be accomplished in two to three weeks. He felt certain it would be done before November, because the Governor must complete his budget. So, between now and mid-October is the window of opportunity.

Regent Carter asked whether the formula would be changed for this budget.

The Chancellor replied that he was guardedly optimistic that it might.

Chair Yancey asked whether there were any further questions or comments, and there were none. He then asked for a motion to approve the budget and supplemental budget.

Regent Leebern made the motion, which was variously seconded. With motion properly made, seconded, and unanimously adopted, the Board of Regents approved the fiscal year 2002 operating and capital budget request and the fiscal year 2001 supplemental budget request.

Chair Yancey thanked the Chancellor and budget staff for their hard work in developing the budget request.

Chancellor Portch also thanked the budget staff for their work.

There being no further business to come before the Committee, Chair Yancey adjourned the Committee of the Whole and turned the floor back to Chair White.

Chair White thanked Regent Yancey and the presenters and creators of the budget request. He then welcomed new Regent Timothy J. Shelnut from Augusta, Georgia and noted that Regent Shelnut would be sworn in at the Governor's Office on Wednesday. At approximately 2:20 p.m., he adjourned the Board into its regular Committee meetings.

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CALL TO ORDER

The Board of Regents of the University System of Georgia met again on Wednesday, September 13, 2000 in the Board Room, room 7007, 270 Washington St., S.W., seventh floor. The Chair of the Board, Regent Glenn S. White, called the meeting to order at 9:00 a.m. Present on Wednesday, in addition to Chair White, were Vice Chair Hilton H. Howell, Jr. and Regents Juanita P. Baranco, Hugh A. Carter, Jr., Connie Cater, Kenneth W. Cannestra, Joe Frank Harris, Edgar L. Jenkins, Donald M. Leebern, Jr. Elridge W. McMillan, Martin W. NeSmith, J. Timothy Shelnut, Joel O. Wooten, Jr., and James D. Yancey.

Chair White reminded the Regents that they would be recessing for the swearing in of Regent Shelnut, when they receive a call from the Governor's Office.

INVOCATION

The invocation was given on Wednesday, September 13, 2000 by Regent Joe Frank Harris.

ATTENDANCE REPORT

The attendance report was read on Wednesday, September 13 by Secretary Gail S. Weber, who announced that Regent George M. D. (John) Hunt III had asked for and been given permission to be absent on that day. Regent Charles H. Jones was also absent.

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INTRODUCTION OF NEW STUDENT ADVISORY COUNCIL PRESIDENT

Chair White asked the Chancellor to make an introduction to the Board.

Chancellor Portch thanked Chair White and remarked that it was a pleasure to introduce Mr. Nels Peterson, President of the Student Advisory Council ("SAC"). The Chancellor noted that some Regents might recognize Mr. Peterson, because he was also very active in SAC last year. Mr. Peterson is the second consecutive SAC President who was home-schooled. He is a senior majoring in political science with a minor in economics who plans to attend law school next year. He has worked as a legislative aide for Senator Richard O. Marable (district 52). He was president of the student government association ("SGA") his freshman year, and his grade point average is 3.97. His Scholastic Aptitude Test ("SAT") test score was 1500. In addition to being bright, Mr. Peterson is a very mature leader, said the Chancellor. With that, he invited Mr. Peterson to speak to the Regents.

Mr. Peterson stated that it was an honor to come before the Board to share what the students of the University System of Georgia are looking forward to this year. He explained that SAC is the statewide student government, the primary voice for students on a statewide level. Each institution is a member of SAC, and each institution has one vote. There are approximately six conferences a year, which the representatives of the institutions will attend. SAC will vote on resolutions that become the official position of the student body of the University System. Prior to last year, the focus of SAC was primarily internal to SAC as an organization. Last year, the focus became more external. SAC worked with the Board and Central Office to establish a new student fee policy; with the Chancellor's Office to create a new policy for the HOPE Scholarship Program ("HOPE") book allowance, which is still being developed; and with the Governor's Office to expand HOPE to cover students who receive Pell Grants while retaining full tuition and fees coverage. This year, SAC will continue its external focus while adding an internal focus aimed primarily at educating each institution's SGA on how to implement the different policies that SAC and the Central Office have established in the past year. Some of the issues on which SAC will focus this year include setting priorities for the year, student voter registration issues, sales tax exemption on text books, supporting the University System budget proposal, the benchmarking initiative, and the new student fees policy.

Mr. Peterson noted that there are many other states that look to SAC and how it interacts with the Board of Regents as a model. Florida recently underwent major changes in the structure of its university system. Prior to those changes, there had been a very strong state student association that was heavily funded by the state government, but now Florida's students are looking to SAC to learn how to operate on a small budget and how to work within their new structure. Also, South Carolina's students sent delegates to the last SAC conference and are hoping to form their own state student association there. So, SAC is a model for positive interaction between students and the statewide administration. In closing, Mr. Peterson asked whether there were any questions, and there were none.

Chair White thanked Mr. Peterson. He noted that SAC plays a very important role in the System and that the Board appreciates its efforts. He then proceeded to the Committee reports.

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AUDIT COMMITTEE

The Audit Committee met on Tuesday, September 12, 2000 at approximately 11:00 a.m. in room 7005. Committee members in attendance were Chair Joel O. Wooten, Jr., Vice Chair Connie Cater, and Regent Martin W. NeSmith. Regent Hugh A. Carter, Jr. also attended the Audit Committee meeting. Chair Wooten reported to the full Board on Wednesday that the Committee had reviewed two items, neither of which required action. Those items were as follows:

1. Information Item: Fiscal Year 2001 Audit Plan

Assistant Vice Chancellor for Internal Audit Ronald B. Stark presented to the Committee the fiscal year 2001 Systemwide audit plan. The plan delegates which audits will be performed by the State Department of Audits, Board of Regents audit staff, campus-based auditors, and outside auditors. Board of Regents audit staff prioritizes audits based on risk analyses. The areas of concentration for audits include preventive maintenance (a Board of Regents request), data security, compliance on Board approval of gifts, BANNER reconciliation with general ledger (also a Board request), and small campus business office controls.

2. Information Item: Summary of Systemwide Audit Activity

Assistant Vice Chancellor for Internal Audit Ronald B. Stark presented to the Committee the results of all Systemwide internal audit activity. A summary of internal audit findings was also presented, which indicated the ranking of each audit, the significance of each audit finding, and the implementation status of audit recommendations. The Committee requested that Mr. Stark determine the reasons for variances from plans at several institutions.

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COMMITTEE ON REAL ESTATE AND FACILITIES

The Committee on Real Estate and Facilities met on Tuesday, September 12, 2000 at approximately 2:30 p.m. in the Board Room. Committee members in attendance were Vice Chair Hilton H. Howell, Jr. and Regents Kenneth W. Cannestra, Connie Cater, Donald M. Leebern, Jr., Joel O. Wooten, Jr., and James D. Yancey. Vice Chair Howell reported to the Board on Wednesday that the Committee had reviewed ten items, eight of which required action. With motion properly made, seconded, and unanimously adopted, the Board approved and authorized the following:

1. Naming of William and Jeanette Maulding Residence Hall, Georgia Institute of Technology

Approved: The Board approved the naming of the Sixth Street Apartments West at the Georgia Institute of Technology ("GIT") the "William and Jeanette Maulding Residence Hall."

Background: William R. Maulding received his degree in industrial management from GIT in 1957. As a Dean's List student, Mr. Maulding was involved in a variety of student activities, including Phi Kappa Phi, Delta Sigma Phi, IM Society, Management Club, Army ROTC, and ROTC Beta Club. Ms. R. Jeanette Samples, now Mrs. Maulding, received her degree in chemistry from Emory University in 1957.

Mr. Maulding is a retired executive vice president of the former C & S National Bank, now Bank of America. Mrs. Maulding is retired from the Environmental Protection Agency in Atlanta. Mr. and Mrs. Maulding have no children and have chosen to leave their entire estate to the Georgia Tech Foundation, Inc. as an expression of their love for GIT and in recognition of the quality education GIT continues to provide.

2. Naming of Red Hill Athletic Center, Abraham Baldwin Agricultural College

Approved: The Board approved the naming of the athletic center at Abraham Baldwin Agricultural College the "Red Hill Athletic Center" in honor of Tennis Coach Red Hill, who retired in 1999 after 34 years of service to the college as the tennis coach.

Background: Mr. Hill was the "winningest" men's college tennis coach in the United States. He coached in two National Junior College Athletic Association ("NJCAA") national championships (1984 and 1999). He was named National Coach of the Year three times.

In 34 years of coaching, only 16 of his players have not received a four-year degree. Sixty-nine of his players were selected for All-American status, and 17 of his players have earned doctoral degrees. Mr. Hill was the fourth person ever inducted into NJCAA Men's Tennis Hall of Fame in 1993. He also received the Achievement in Sports Award from Georgia Sports Hall of Fame. Mr. Hill as instrumental in raising private funds necessary to construct this building.

3. Naming of Alan and Shirley Lorberbaum Liberal Arts Building, Dalton State College

Approved: The Board approved the naming of the liberal arts building at Dalton State College the "Alan and Shirley Lorberbaum Liberal Arts Building" in honor and memory of Alan and Shirley Lorberbaum.

Background: The Lorberbaums established Aladdin Mills in Dalton many years ago. Aladdin Mills has since become part of Mohawk Industries. Their son, Jeff, continues as president of the company. Both senior Lorberbaums were active community supporters, with Shirley especially active in promoting education.

4.Rental Agreement, New Media Institute, University of Georgia

Approved: The Board authorized the continuation of a rental agreement between Humanism Investments, Inc., Landlord, and the Board of Regents, Tenant, covering approximately 4975 square feet of office space located at 110 E. Clayton Street, Athens, Georgia for the period beginning October 1, 2000 and ending June 30, 2001 at a monthly rental of $5,389.58 ($64,674.96 per year/$13 per sq. ft. per year) with option to renew for four consecutive one - year terms with rent increasing 3% for each option exercised for the use of the University of Georgia's New Media Institute.

The Committee stipulated that approval of this rental agreement be contingent upon approval of the New Media Institute that is being considered by the Committee on Education, Research, and Extension.

Background: Comparable rent in the area is $13 to $18 per square foot. This rental agreement is necessitated by a lack of suitable space available on campus, the interdisciplinary nature of the New Media Institute, and the need to interact frequently with private technology companies.

Prior to June 30, 2000, the Senior Vice Chancellor for Capital Resources temporarily authorized this rental agreement for a period of three months. This action was necessary to meet an occupancy deadline and would allow time for full consideration and approval by the Board for any continuation.

The space will be used as office, classroom, and computer laboratory space for the New Media Institute, an integrative technology program that will collaborate with private technology firms and technology start-up companies.

Operating expenses for janitorial service and electricity are estimated to be $16,500 per year.

5. Gift of Four Properties From Foundation, Georgia Institute of Technology

Approved: The Board accepted title to approximately .683 acres of real property known as 505 Tenth Street and 995 McMillan Street, Atlanta, Georgia from the Georgia Tech Foundation Real Estate Holding Corporation for the use and benefit of the Georgia Institute of Technology ("GIT") for the use of the Office of Contract Administration and the Georgia Tech Research Corporation.

The Board also accepted title to approximately .094 acres of real property known as 497 Tenth Street, Atlanta, Georgia from the Georgia Tech Foundation Real Estate Holding Corporation for the use and benefit of GIT for parking and future development.

The Board also accepted title to approximately 1.273 acres of real property known as 676 Marietta Street, Atlanta, Georgia from the Georgia Tech Foundation Real Estate Holding Corporation for the use and benefit of GIT for the use of the Advanced Wood Products Laboratory.

The Board also accepted title to approximately 1.001 acres of real property known as 845 Marietta Street, Atlanta, Georgia from the Georgia Tech Foundation Real Estate Holding Corporation for the use and benefit of GIT for the use of the Office of Information Technology.

The legal details involved with accepting these gifts of property will be handled by the Office of the Attorney General.

These gifts of real property are consistent with GIT's master plan.

505 Tenth Street and 995 McMillan Street

Constructed in 1985, 505 Tenth Street is a three-story (10,100-gross-square foot) office building in generally good condition, built on concrete slab-on grade with exterior concrete masonry unit ("CMU") walls and a red brick veneer. 995 McMillan Street is a vacant lot.

The Office of Contract Administration and Georgia Tech Research Corporation have relocated from the Centennial Research Building under leases from the Georgia Tech Foundation, Inc. to provide additional space in this building for the College of Computing in support of Yamacraw and the Intellectual Capital Partnership Program ("ICAPP").

Future expansion of the building is planned to accommodate the Office of Contracts and Grants.

Georgia Tech Research Corporation will lease a portion of this building from the Board.

An environmental assessment has been completed on the property. Minor groundwater contamination has been identified. Georgia Tech Foundation Real Estate Holding Corporation has requested a "No Further Action" letter from Georgia Environmental Protection Division ("EPD").

The appraised value of this property is $1,975,500.

The estimated operating expense is $59,000.

497 Tenth Street

There are currently no physical improvements on this property. This property will be incorporated with the plans for expansion of facilities at 505 Tenth Street.

An Environmental Assessment has been completed on the property. Minor Groundwater contamination has been identified. Georgia Tech Foundation Real Estate Holding Corporation has requested a "No Further Action" letter from Georgia EPD.

The appraised value of the property at 497 Tenth Street is $86,000.

676 Marietta Street

Constructed in 1988, the property at 676 Marietta Street consist of a two-story commercial office building (4,000 gross square foot) attached to a one-story high-bay warehouse (12,600 gross square foot). The site has 19 parking spaces and access for truck loading. The building consist of painted CMU and a metal wall panel system. The building is in generally good condition.

In May 1998, the Board authorized the purchase of property at 1610 Southland Circle, Atlanta, Georgia for the use of the Advanced Wood Products Laboratory, subject to there being no adverse environmental conditions. This acquisition was not consummated due to environmental hazards on the site.

This facility provides the necessary high-bay area and loading docks for placements of up to ten large-scale wood processing machines on a factory floor layout for the Advanced Wood Products Laboratory, which is located in this facility under a lease from the Georgia Tech Foundation, Inc.

An environmental assessment has been completed on the property and indicates no significant problems.

The appraised value of the property is $2,400,000.

The estimated annual operating expenses for 676 Marietta Street is $97,940.

845 Marietta Street

Constructed in 1980, 845 Marietta Street is a CMU standing-seam metal-front building with 4,832 gross square feet of office space and 8,009 gross square feet of warehouse space. The building is in generally good condition. The warehouse space has been converted to additional office space for the Office of Information Technology. There are 31 parking spaces on the property.

The Office of Information Technology has relocated, under a lease from the Georgia Tech Foundation, Inc., from the core of the campus to this location, which is in proximity to existing Office of Information Technology facilities at 811 Marietta Street.

An environmental assessment has been completed on the property and indicates no significant problems.

The appraised value of the property is $1,650,000.

The estimated annual operating cost for 845 Marietta Street is $75,762.

6. Authorization of Project, Library South, Georgia State University

Discussion of this item was held in Executive Session in order that the Committee might discuss potential litigation concerning Georgia State University's ("GSU") Library South Building. The following Committee members voted to go into Executive Session: Vice Chair Hilton H. Howell, Jr. and Regents Kenneth W. Cannestra, Connie Cater, Donald M. Leebern, Jr., Joel O. Wooten, Jr., and James D. Yancey. Also in attendance for the Executive Session were Senior Vice Chancellor for Capital Resources Lindsay Desrochers, Vice Chancellor for Facilities William K. Chatham, GSU's Vice President for Finance & Administration Katherine M. Johnston, GSU's Assistant Vice President for Legal Affairs John Donald Marshall, Jr., and Assistant Attorney General George S. Zier. In accordance with H.B. 278, Section 3 (Amending O.C.G.A. § 50-14-4), an affidavit regarding this Executive Session is on file with the Chancellor's Office. When the Committee returned to its regular session, Vice Chair Howell reported that no action was taken in Executive Session. He then asked for a motion to approved this item. Regent Leebern made the motion, which was variously seconded. With motion properly made, seconded, and unanimously adopted, the Committee approved the emergency project regarding the Library South Building.

Approved: The Board authorized an emergency project to stabilize and repair the brick veneer on the Library South Building with a total project budget of $3.7 million to be funded partially by residual funds from Board of Regents projects constructed by Georgia State Financing and Investment Commission ("GSFIC") and by Georgia State University ("GSU") major repair and renovation ("MRR") and other funds.

Background: The Library South Building was originally constructed in 1987. The brick veneer on the building is failing, and immediate corrective action is necessary. GSU has conducted appropriate forensic assessments and proposed corrective action for immediate and long-term resolution.

The fiscal year 2002 budget includes this project as a minor capital outlay request. If this minor capital project is funded, use of MRR funds will require that the campus defer MRR projects funded for fiscal year 2001 until such time as replacement funds are approved.

Since this project was approved, the Office of Facilities will begin selection of appropriate professional consultants for the project. The project will follow a "fast-track" process.

7. Resolution, 2000D General Obligation Bond Issue, Georgia State Financing and Investment Commission, University System of Georgia

Approved: The Board adopted a Resolution prepared by the Revenue Division of the Department of Law covering the issuance of 2000D General Obligation ("G.O.") Bonds by the State of Georgia through the Georgia State Financing and Investment Commission for use in funding projects for the University System of Georgia.

The Revenue Division of the Office of the Attorney General has prepared on behalf of the Board of Regents a Resolution to cover the sale of 2000D G. O. Bonds for the following project(s):

I-37	Science and Nursing Building Georgia Southern University	$22,890,000
I-38	Camden Center Coastal Georgia Community College	$16,700,000
I-39	Russell Library & Information Center Georgia College & State University	$18,460,000
I-40	Residence Hall Savannah State University	$13,970,000
I-85	Law Library Renovations Georgia State University	$4,400,000
I-88	Renovation of Dublin Campus Middle Georgia College	$1,200,000
	GPTC Stations Georgia Public Television	$2,800,000
TOTAL		$80,420,000

8. Information Item: Fifth Street Corridor Development

President G. Wayne Clough of the Georgia Institute of Technology ("GIT") presented to the Committee an update on the general plan he first presented at the April 2000 Committee meeting regarding development of the Fifth Street corridor. His presentation included a short video about the project that is also used for the purpose of fund raising. The project will include a continuing education center, a facility to house the Dupree College of Management, a bookstore and other retail outlets, a large parking deck, and, in cooperation with private industry, a hotel. This project will not only provide more facilities space, but will also eliminate the need for some expensive leased facilities. President Clough estimated that the project will cost around $150 million. Approximately two-thirds of that cost will be borne by revenue streams from continuing education, the hotel, the bookstore, retail, and parking. The remaining one-third will be derived from private resources; fund-raising efforts are currently underway. President Clough noted that $8 million has already been committed to the project, and he expects that GIT will be able to raise the rest of the money as needed to complete the project. Ideally, GIT would like to build all of the buildings simultaneously, rather than have ongoing construction for a number of years. GIT anticipates breaking ground late next year, but this is contingent on the success of the fund-raising activities. Nonetheless, GIT hopes to complete the project by 2003. GIT has hired Jones Lang LaSalle, a nationally known firm, as its master planner for the project and is in the process of finalizing selection of its master architect.

9. Yamacraw Building Lease

Approved: The Board authorized the execution of a rental agreement between The University Financing Foundation, Inc., Landlord, and the Board of Regents, Tenant, covering approximately 200,000 square feet of office space on the north side of Fifth Street between Williams and Spring Street, Atlanta, Georgia for the period beginning September 2000 and ending June 30, 2001 with the option to renew for 22 consecutive one-year periods for the use of the Georgia Institute of Technology. Rent will be $1 per year until the building is occupied. When occupied, the building's monthly rental will be approximately $300,000 ($3,600,000 per year/$18 per square foot per year) with the rent increasing 3% for each option exercised.

The terms of this rental agreement are subject to review and legal approval of the Office of the Attorney General.

A request to rent this space was submitted by the Yamacraw Steering Committee and its Chief Executive Officer, Dr. Jim Foley. The State Department of Administrative Services negotiated the terms of the lease on behalf of the Office of Planning and Budget ("OPB") and Yamacraw.

Renewal of the lease for the year of occupancy is subject to legislative appropriation of the rent amount.

The building will be purpose-built for Yamacraw. The rent rate of $18 per square foot may be adjusted when the design and program specifications are finalized by December 2000.

Parking for five vehicles will be provided without charge. Additional parking for 495 vehicles will be provided at $75 per space per month.

If this agreement is terminated after the building is occupied by the Board of Regents but prior to the fifteenth renewal term after the building is occupied, then a premature termination payment will be due to the landlord. This payment would be $2,829,047.51 during the first renewal term after the building is occupied, decreasing each year to $250,000 during the tenth to fifteenth renewal terms.

Operating expenses are estimated to be $1,600,000 per year. The revenue source for both annual rent and operating expenses is an annual appropriation from the state for Yamacraw.

The facility will become the property of the Board of Regents at the end of the financing period.

Background: In fiscal year 2000, $200,000 was provided to OPB for the purpose of conducting a Yamacraw building siting study and to provide for the programming of the building. The preliminary results of the siting study is that the Fifth Street corridor is the appropriate location. It is currently anticipated that the building will be constructed via the design-build process by a private firm and rented to the state.

10. Information Item: Master Plan, Coastal Georgia Community College

Coastal Georgia Community College ("CGCC") and the Office of Facilities proposed a physical master plan for future development of the institution. President Dorothy Lord and Mr. David Harper, President of the Atlanta architectural and planning consulting firm of Harper Partners, presented the plan to the Committee. The consultants reviewed the college's enrollment targets, mission statement, strategic plan, academic and support programs, and other variables. They met with the administration, faculty, senate, students, and community leaders to receive input and then presented options for facilities, parking/traffic patterns, student/pedestrian circulation patterns, and campus beautification. Based on the consultants' findings, CGCC's master plan recommendations included the following:

Create appropriate future facilities for the growing academic needs, community outreach activities, and continuing education needs
Renovate several existing buildings to provide modern teaching facilities
Upgrade campus utility infrastructure
Relocate campus roads and parking to create a pedestrian campus core
Continue to preserve and enhance the campus environment and landscaping

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COMMITTEE ON FINANCE AND BUSINESS OPERATIONS

The Committee on Finance and Business Operations met on Tuesday, September 12, 2000 at approximately 3:30 p.m. in the Board Room. Committee members in attendance were Chair James D. Yancey, Vice Chair Connie Cater, and Regents Kenneth W. Cannestra, Hilton H. Howell, Jr., Donald M. Leebern, and Joel O. Wooten, Jr. Chair Yancey reported to the Board on Wednesday that the Committee had reviewed ten items, all of which required action. With motion properly made, seconded, and unanimously adopted, the Board approved and authorized the following:

1. Approval of Fiscal Year 2002 Operating and Capital Budget Request

Approved: The Board of Regents approved the fiscal year 2002 operating and capital budget request. (The budget request document is on file with the Office of Capital Resources.)

This item was considered by the Committee on Business and Finance Operations as a Committee of the Whole. (See pages 4 to 15.)

2. Approval of Preferred Provider Organization Plan and Medical/Dental Indemnity Plan Premiums for Calendar Year 2001

Approved: The Board approved the preferred provider organization ("PPO") plan premiums and the medical/dental indemnity plan premiums for the University System of Georgia for calendar year 2001. The plan premiums are on file with the Office of Capital Resources.

Background: The assumptions used by Towers-Perrin in recommending the 2001 premium figures for the respective PPO plan and the medical/dental indemnity plans were as follows:

New indemnity plan structure, including the addition of a PPO option, effective January 1, 2001;
Changes to the prescription drug program (See item 7);
Employee/employer premium cost sharing at 25%/75%;
Revised actuarial cost factors between employee, employee plus one, and family categories; and
Proposed rates are sufficient to cover costs for paid claims, administrative fee expenses, and "incurred but not reported" ("IBNR") reserve adjustments.

In March 2000, the Board of Regents approved a PPO health insurance plan option for University System of Georgia employees, retirees, and dependents, with the implementation date and premium rates to be determined at a later time. The effective date for implementation of the PPO is January 1, 2001, with open enrollment scheduled from October 16 through November 16.

Also in March, the indemnity health plan received a supplemental appropriation of $33 million to cover the plan deficit for the remainder of fiscal year 2000.

In May 2000, the Board of Regents approved a 17.4% increase in the employer contribution of indemnity plan premiums, effective July 1, 2000. Effective August 1, 2000, the Board approved a 15% increase in the employee contribution of indemnity plan premiums.

3. Approval of the Medical Indemnity and Preferred Provider Organization Administrative Services Contract With BlueCross BlueShield of Georgia

Approved as Amended: The Committee authorized Committee Chair Yancey and Board Vice Chair Howell, in conjunction with Board Chair White, to approve a recommendation from the Chancellor concerning the BlueCross BlueShield administration services contracts for the medical indemnity plan and preferred provider organization ("PPO") plan before the October Board of Regents meeting in order to ensure continuation of administrative services for the indemnity plan and new service for the PPO plan.

Background: The current cost of administration for the medical indemnity plan is $12.73 per employee per month. The proposed administrative fee will be applicable to both the medical indemnity plan and the PPO plan. The effective dates of the contract, if approved, will be from January 31 through December 31, 2001.

4. Approval of the Dental Indemnity Plan Administrative Services Contract With BlueCross BlueShield of Georgia

Approved as Amended: The Committee authorized Committee Chair Yancey and Board Vice Chair Howell, in conjunction with Board Chair White, to approve a recommendation from the Chancellor concerning the BlueCross BlueShield administration services contracts for the dental indemnity plan before the October Board of Regents meeting in order to ensure continuation of administrative services for the dental indemnity plan.

Background: The current cost of administration is $1.65 per employee per month. The effective dates of the contract, if approved, will be from January 31 through December 31, 2001. The employee bears the full cost of dental insurance.

5. Approval of the Magellan Behavioral Health Contract for the Board of Regents Preferred Provider Organization Healthcare Plan

Approved: The Board approved a one-year contract with Magellan Behavioral Health for participants in the Board of Regents preferred provider organization ("PPO") healthcare plan. The services to be provided include the following:

Assessment and referral of all inpatient care;
Assessment and referral for outpatient care;
Concurrent review and authorization of all inpatient and outpatient care;
Network discounts;
Network credentialing and management;
Intensive case management of high-risk cases;
Quality improvement oversight and review; and
Claims authorization interface with a third-party administrator.

The effective date for implementation of this program will be January 1, 2001.

Background: Magellan Behavioral Health will provide utilization review and managed care for individuals who elect to participate in the Board of Regents PPO healthcare plan and who require mental health/substance abuse services.

The 2001 fee proposal for the University System of Georgia will be $2.152 per employee per month. The fee proposal is identical to the rate submitted to and approved by the State Health Benefits Plan for these services. The fee will be assessed only for those individuals who elect to participate in the PPO. Magellan Behavioral Health has indicated that the proposed fee would remain unchanged for the next two plan years.

The Board of Regents staff agrees with the Department of Community Health's recommendation to amend its current contract between Magellan Behavioral Health and the Division of Public Employee Health to include the aforementioned program for the Board of Regents.

6. Approval of Unicare Renewal Contract

Approved: The Board approved a one-year extension of a contract with Unicare for the following services for the Board of Regents PPO and indemnity medical plans:

Hospital inpatient pre-certification and case management review services;
Outpatient surgical and diagnostic review services;
Disease state management programs for oncology, diabetes, congestive heart failure and asthma;
Unicare national transplant network access;
MedCall 24/7 referral and utilization review services; and
Referral of PPO plan participants to network providers.

The effective date for implementation of these programs will be January 1, 2001.

Background: Services currently provided for the Board of Regents indemnity medical plan by Unicare are limited to hospital inpatient pre-certification and case management review services. Effective January 1, 2001, the additional programs identified above will be added to the System's indemnity and PPO medical benefit plan designs. These programs have generated significant savings for the Department of Community Health's indemnity plan. Similar results are anticipated for the Board of Regents medical indemnity and PPO plans.

The current cost for the Unicare hospital inpatient pre-certification and case management review services is $3.05 per contract per month. In addition, the University System of Georgia pays a $150 per case cost for a review of an employee appeal of plan coverage/plan reimbursement. For calendar year 2001, the cost for this service has been reduced to $1.92 per contract per month. The $150 per case cost for review of an employee appeal will be discontinued in calendar year 2001.

The total cost proposal for all services, excluding the Unicare national transplant network, for calendar year 2001 is $3.82 per contract per month. The proposed 2001 fee proposals for the University System of Georgia are identical to the cost proposals submitted to and approved by the Department of Community Health.

To realize the savings presented in the cost proposal, the Board of Regents staff agrees with the Department of Community Health's recommendation to amend its current contract between Unicare and the Division of Public Employee Health to include the aforementioned programs for the Board of Regents. Annual Unicare program fee increases will be determined by the Department of Community Health.

7. Approval of Board of Regents Participation in the Department of Community Health Contract With Express Scripts, Inc. for a Pharmacy Benefit Management Program

Approved: The Board approved the inclusion of the University System of Georgia and the Board of Regents in a one-year contract between the Department of Community Health and Express Scripts, Inc. for a pharmacy benefit management program. The contract has renewal provisions for three subsequent years. The effective date of implementation for the Board of Regents is January 1, 2001.

Background: In August 2000, the Department of Community Health executed a pharmacy benefit management contract with Express Scripts, Inc. The contract includes pharmacy cost-containment strategies for the Board of Regents indemnity and preferred provider organization ("PPO") plans, the state health benefits indemnity and PPO plans, the state Medicare program, and the state Peachcare children's program.

The administrative fee for both the Board of Regents healthcare plans and the state health benefits healthcare plans are $.38 per pharmacy electronic claim and $1.50 per pharmacy paper claim. The Express Scripts, Inc. pharmacy provider network is national in scope and member accessibility. The program ensures University System of Georgia pharmacy rebates that had previously been retained by the vendor. The program includes performance guarantees for all constituent service delivery. Failure to meet performance guarantees will result in liquidated damages against the vendor. One of the performance guarantees is to increase member education and usage of generic drugs. Generic drug costs are substantially less than name brand drug costs.

The pharmacy benefit plan design includes a $10 generic prescription drug copayment, a $20 preferred brand prescription drug copayment, and a 20% copayment for non-preferred brand prescription drugs with a minimum member copayment of $35 and a maximum member copayment of $75. Members will also be required to pay the difference between the cost of a generic prescription drug and a preferred brand name prescription drug if both are available. This cost would be waived if a preferred brand name prescription drug were mandated by the attending healthcare provider. Towers Perrin has estimated that these plan design features will produce over $7 million in savings.

8. Approval of Health Maintenance Organization Contracts

Approved: The Board approved a one-year extension of two health maintenance organization ("HMO") contracts. The premium rates are on file with the Office of Capital Resources.

Background: The staff recommended that the Board renew two of the four HMO contracts that are currently offered to employees/retirees of the University System of Georgia, which are listed below. The United Healthcare HMO contract and the Prudential HealthCare HMO contract were not recommended for renewal.

Kaiser - Kaiser requested a 2.1% rate increase for calendar year 2001. The recommended plan for calendar year 2001 includes an increase in physician visit copayments from $3 to $5, an increase in prescription drug copayments at Kaiser Permanente Medical Centers from $3 to $5, and an increase in prescription drug copayments from $9 to $11 at Eckerd Pharmacies. At the beginning of calendar year 2000, there were approximately 4,975 employees/retirees enrolled in the Kaiser HMO.
BlueChoice - BlueChoice requested a 5.94% rate increase for calendar year 2001. The initial rate increase proposal for calendar year 2001 was 9%. Last year, the Board approved an 8.6% increase. The only plan design change for calendar year 2001 includes an agreement to discontinue the mail order portion of the prescription drug plan. At the beginning of calendar year 2000, there were approximately 1,915 employees/retirees enrolled in the BlueChoice HMO.
Prudential HealthCare - The Board of Regents staff recommended that the Prudential HealthCare HMO contract not be renewed for calendar year 2001. Prudential Healthcare is not currently accredited by the National Committee on Quality Assurance ("NCQA"). The Board staff was also advised that the Emory University System of Healthcare and its group of physicians will no longer participate in Prudential HealthCare's provider network effective October 12, 2000. At the beginning of this calendar year, there were approximately 2,146 employees/retirees enrolled in the Prudential HMO.
United Healthcare - The Board of Regents staff recommended that the United Healthcare HMO contract not be renewed for calendar year 2001. United Healthcare had requested a 30% increase in employee premiums effective January 1, 2001. The proposed annual family premium for calendar year 2001 would be $9,645. Earlier this year, it was announced that United Healthcare would discontinue offering its local Medicare program next year. At the beginning of this calendar year, there were approximately 1,419 employees/retirees enrolled in the United Healthcare HMO

The Kaiser HMO is a group model HMO, and the BlueChoice HMO is an individual practice association plan.

There will be an employee/employer premium cost-sharing distribution of 25%/75%.

9. Acceptance of Gifts for the Georgia Institute of Technology

Approved: The Board accepted on behalf of the Georgia Institute of Technology ("GIT") gifts-in kind from the following corporations:

Company	Value	Item	Department
Spectra Precision Software	$1,385,000	150 copies of Terramodel and Terra Vista Software	Civil and Environmental EngineeringLabs
Hewlett-Packard Company	$ 632,511	Miscellaneous Hardware and Software	Electrical and Computer Engineering - CREST Center
Hewlett-Packard Company	$ 84,105	Miscellaneous Hardware and Software	Electrical and Computer Engineering
Hewlett-Packard Company	$ 337,182	Miscellaneous Hardware and Software	Dupree College of Management - Center for Electronic Commerce

Background: Board policy requires that any gift to a University System of Georgia institution with an initial value greater than $100,000 must be accepted by the Board of Regents. GIT advised the Committee that these items have been appraised at fair market value and there are no material cost implications to be anticipated with the acceptance of these gifts.

10. Acceptance of Gifts for Georgia State University

Approved: The Board accepted on behalf of Georgia State University ("GSU") gifts-in-kind from the Georgia State University Foundation:

Company	Value	Item	Department
Georgia State Foundation	$106,510	Audiovisual Units & Electronics and Artifact Display Units	For the Mercer Exhibit, Special Collections
Georgia State Foundation	$183,843	Miscellaneous Parts for Six Telescopes, Including Vacuum Boxes, Camera System Mounts, Mirrors, Tubing, and Drive Assemblies	For Upgrades to the CHARA Telescopes

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COMMITTEE ON EDUCATION, RESEARCH, AND EXTENSION

The Committee on Education, Research, and Extension met on Tuesday, September 12, 2000 at approximately 2:30 p.m. in room 6041, the Training Room. Committee members in attendance were Chair Joe Frank Harris, Vice Chair Elridge W. McMillan, and Regents Juanita P. Baranco, Hugh A. Carter, Jr., Edgar L. Jenkins, Martin W. NeSmith, and J. Timothy Shelnut. Chair Harris reported to the Board that the Committee had reviewed 14 items, 10 of which required action. Additionally, 366 regular faculty appointments were reviewed and recommended for approval. With motion properly made, seconded, and unanimously adopted, the Board approved and authorized the following:

1. Presentation/Update: eCore™

Due to time constraints, this item was continued from the August 2000 Committee Meeting.

Dr. Kris Biesinger, Assistant Vice Chancellor for Advanced Learning Technologies, and Dr. Joan Lord, Vice President for Academic Affairs at Floyd College and Chair of the eCore™ Subcommittee, provided an update on the status of the eCore™ project. Dr. Biesinger reviewed the project's direct link to the Board's technology principles and action items approved in June 1999. While the eCore™ relates directly to principle 2, action item 1, Dr. Biesinger emphasized that the eCoreTM addresses many of the other principles as well, including those relating to the development of innovative governance and effective financing structures. The first six eCore™ courses are being offered this fall term. Dr. Lord outlined the composition and role of the eCore™ Subcommittee, giving particular attention to the coordination activities that ensure that the eCore™ curriculum will meet accreditation standards. The entire curriculum adheres to a set of student learning outcomes that have been approved by the Council on General Education, a System committee that approves curriculum recommendations. The faculty at any institution offering credit for these courses must endorse the curriculum. Five institutions within the System have done so and are offering these courses for credit this fall.

Dr. Biesinger concluded the presentation by outlining the standards that have been adopted for the development and delivery of these courses. They include 1) quality - both in terms of the teaching strategies implemented for online teaching as well as in the provision of services to support students at a distance, 2) accessibility - ensuring that as many students as possible can access these courses (platform, connectivity issues, disabilities, software, etc.), 3) scalability - ensuring that the courses products are usable by many faculty, and 4) sustainability - ensuring that the courses are designed in ways that facilitate easy revision and modification. These elements were demonstrated using of one element of an eCore™ U.S. history course as an example.

Background: The educational technology principles and action items adopted by the Board of Regents in June 1999 committed the University System to the integration of technology as a central element of teaching, learning, student services, public service, research, and institutional management. Principle 2 states that the "University System will employ technologies to expand the learning environment ensuring access to information and educational experiences independent of time, location, and physical boundaries for all types of students from undergraduate through life-long learners." One way the System is involved in addressing this principle is to promote and facilitate expanded student access to the core curriculum using asynchronous instruction and the full spectrum of delivery methods and technologies.

2. Presentation/Update: Institutional Progress of Meeting the Regents' Principles for the Preparation of Educators for the Schools

Dr. Jan Kettlewell, Assistant Vice Chancellor for Academic Affairs and Co-Facilitator of the Georgia P-16 Initiative, made a presentation on the University System's institutional progress toward meeting the "Principles for the Preparation of Educators for the Schools." She reported on the inputs, performance, and results of the implementation thus far. With few exceptions, the inputs of the initiative are in place; however, performance is still highly variable across institutions. The results demonstrate where the initiative needs refinements, such as requirements for high school teachers, new models for preparation of school leaders, dual degree programs in special education and early childhood education, and assessment of impact on student learning in schools at graduation and at the end of a two-year mentoring program. The initiative may also need adjustments to complement the work of the Governor's Education Reform Study Commission.

3. Approval of Major and Degree Designation Changes in Teacher Preparation Programs in Conformance to the "Principles for the Preparation of Educators for the Schools"

Approved as Amended: Upon recommendation of the Committee, the Board approved this item (details below) on the condition that all programs currently being discontinued be revisited because they are broad-field science and social science programs. Between December 2000 and March 2001, the Committee will revisit the broad-field science and social science issue and develop creative approaches for inventive programming that could include, for example, five-year baccalaureate programs, degree waivers, or the introduction of other approaches. The specified time frame will allow the Committee to gather input from the institutions and secure more information concerning the outcomes of the Governor's Education Reform Study Commission.

BOARD OF REGENTS OF THE UNIVERSITY SYSTEM OF GEORGIA
1998 PRINCIPLES AND ACTIONS
FOR THE PREPARATION OF EDUCATORS FOR THE SCHOOLS

Proposed Changes in Degree Designations and Majors

Background: At the high school level, teachers may be certified in a single discipline (e.g., biology, mathematics, English, etc.) or in (the natural and social sciences) what is called "broad field" science or "broad-field" social science. A teacher certified in broad-field science may teach biology, chemistry, physics, and earth and space science. A teacher certified in broad-field social science may teach history, political science, geography, and economics. Teachers with broad-field certification in science and social science do not have a major in an academic discipline. Rather, they have a collection of courses in all of the sciences or social sciences included under the broad field certification.

Program Changes Required: A major focus of the "Principles for the Preparation of Educators for the Schools" (the "Principles") was to increase the content preparation of teachers. For the content preparation of high school teachers, the Principles require the following:

All candidates must either meet the requirements for a major in the arts and sciences for each subject to be taught or for broad-field certification in science and social science:
Meet the requirements for a major in the arts and sciences in one field and at least 12- to 15-semester-hour concentrations in each of three other fields included under the broad-field.

Not all System institutions that prepare teachers offer programs leading to teacher certification in broad-field science or in broad-field social science, and some offer programs in the single science and social science disciplines as well as in broad-field science and broad-field social science. Of those that do offer programs in these broad fields, the programs are either still under study or institutions have requested that these programs be discontinued and replaced with major programs in the single science or social science disciplines.

Approval: Listed on the following pages are the majors that were proposed for discontinuation in preparation programs for high school teachers in the natural and social sciences, new majors or degree designations proposed, and the majors available for high school teachers in the natural and social sciences.

Preparation of High School Teachers in the Natural and Social Sciences

Proposed Majors for Discontinuation and
Proposed New Majors and/or Degree Designations

Institution	Proposed Majors for Discontinuation	Proposed New Majors and/or Degree Designations	Total List of Majors Available in Science and Social Science
Augusta State University	-BS w/ Major in Physical Science	-BS w/ Major in Mathematics/Physics	-BS w/ Major in Biology -BS w/ Major in Chemistry -BS w/ Major in Physics -BS w/ Major in Mathematics/Physics -BA w/ Major in History -BA w/ Major in Political Science
Columbus State Univ.	-BS Ed w/ Major in Teaching Field-General Science -BS Ed w/ Major in Teaching Field-Political Science -BS Ed w/ Major in Teaching Field-General Social Science	-BS Ed w/ Major in Teaching Field-Earth Science	-BS Ed w/ Major in Teaching Field-Biology -BS Ed w/ Major in Teaching Field Chemistry -BS Ed w/ Major in Teaching Field-Earth Science -BS Ed w/ Major in Teaching Field-History
Georgia Southern Univ.	-BS Ed w/ Major in Science	-BS Ed w/ Major in Biology -BS Ed w/ Major in Chemistry -BS Ed w/ Major in Physics	-BS Ed w/ Major in Biology -BS Ed w/ Major in Chemistry -BS Ed w/ Major in Physics
Georgia Southern Univ.	-BS Ed w/ Major in Social Science	-BS Ed w/ Major in Geography -BS Ed w/ Major in History -BS Ed w/ Major in Political Science	-BS Ed w/ Major in Geography -BS Ed w/ Major in History -BS Ed w/ Major in Political Science
Georgia South Western State Univ.	-BS Ed w/ Major in Secondary Education Teaching Field-Earth Science -BS Ed w/ Major in Secondary Education Teaching Field-Physics -BS Ed w/ Major in Secondary Education Teaching Field-Science -BS Ed w/ Major in Secondary Education Teaching Field-Political Science -BS Ed w/ Major in Secondary Education Teaching Field Geography -BS Ed w/ Major in Secondary Education Teaching Field Economics -BS Ed w/ Major in Secondary Education Teaching Field-Social Science		-BS Ed w/ Major in Secondary Education Teaching Field-Biology -BS in Chemistry w/ Teaching Certification -BS in History w/ Teaching Certification
Kennesaw State Univ.	-BS Ed w/ Major in Secondary Education Teaching Field-Science	-BS Ed w/ Major in Secondary Education Teaching field-Biology -BS Ed w/ Major in Secondary Education Teaching Field Chemistry	-BS Ed w/ Major in Secondary Education Teaching field-Biology -BS Ed w/ Major in Secondary Education Teaching Field Chemistry
Kennesaw State Univ.			-BS Ed w/ Major in Secondary Education Teaching Field-History -BS Ed w/ Major in Secondary Education Teaching Field-Social Studies (under study)
State University of West Georgia	-BS Ed in Secondary Education w/ Major in Science -BS Ed in Secondary Education w/ Major in Social Science	-BS in Biology w/ Secondary Education -BA in Chemistry w/ Secondary Education -BS in Physics w/ Secondary Education -BS in Earth Science w/ Secondary Education -BA in Political Science w/ Secondary Education -BS in Economics w/ Secondary Education	-BS in Biology w/ Secondary Education -BA in Chemistry w/ Secondary Education -BS in Physics w/ Secondary Education -BS in Earth Science w/ Secondary Education- -BA in Political Science w/ Secondary Education -BS in Economics w/ Secondary Education -BA in History w/ Secondary Education
Valdosta State Univ.	-BS Ed w/ Major in Teaching Field-Science -BS Ed w/ Major in Teaching Field Social Science	-BS Ed w/ Major in Teaching Field Chemistry -BS Ed w/ Major in Teaching Field Earth/Space Science -BS Ed w/ Major in Teaching Field-Physics -BS Ed w/ Major in Teaching Field-Political Science	-BS Ed w/ Major in Teaching Field Chemistry -BS Ed w/ Major in Teaching Field Earth/Space Science -BS Ed w/ Major in Teaching Field-Physics -BS Ed w/ Major in Teaching Field-Biology- -BS Ed w/ Major in Teaching Field-Political Science -BS Ed w/ Major in History

4. Establishment of a New Dual Major in Interrelated Special Education and Early Childhood Education Within the Existing Master of Education Degree, Valdosta State University

Approved: The Board approved the request of President Hugh C. Bailey that Valdosta State University ("VSU") be authorized to offer a new dual major in interrelated special education and early childhood education within the existing master of education degree ("M.Ed."), effective September 13, 2000.

Abstract: In January 2000, the Office of Academic Affairs invited System institutions to consider development of programs that would lead to dual teacher certification in early childhood education and in special education. This proposal from VSU is in response to that invitation.

The proposal is for a five-year, 156-semester-hour program that culminates in an M.Ed. degree. The program will be an alternative to the existing separate major programs in early childhood education and special education at VSU on the baccalaureate level.

Special education is a term used to refer to the teaching of children with one or more mental, behavioral, learning, or physical disabilities. The terms, interrelated and cross-categorical special education are used interchangeably to refer to a teacher preparation program that prepares teachers to teach children with all of these disabilities.

Need: Special education is the most critical teacher shortage field in Georgia and in most other states. Teacher "burnout" is a major factor contributing to the shortage in special education. Children in K-12 special education programs are "mainstreamed" to the extent possible; that is, they are assigned to general education classrooms for portions of the day but are pulled out and assigned to special education classrooms when needed. As a result, both general and special education teachers work with special education students. Because of the preponderance of special education children in general education classrooms, particularly in grades pre-K through 5, prospective early childhood teachers would benefit from the increased knowledge in special education they would gain through this proposed program. Graduates of the program would also be certified to teach in special education classrooms, thus alleviating, to some extent, the tremendous shortage of special education teachers in Georgia.

There is an additional reason why a dual major in early childhood education and special education makes sense. Teachers prepared for both general and special education classrooms would be able to move back and forth between the two environments over time, which may lessen burnout and teacher attrition.

Objectives: The objectives of this proposed program are 1) to prepare better early childhood teachers to meet the needs of students with disabilities in general education classrooms, 2) to increase the number of teachers prepared to teach in special education classrooms, and 3) to see whether this model helps reduce teacher burnout and attrition of special education teachers in the schools.

Curriculum: This program includes a five-year curriculum. In addition to the undergraduate core curriculum, students will meet all of the requirements of the "Principles and Actions for the Preparation of Educators for the Schools," including two 12-semester-hour concentrations in reading and in mathematics. During the junior year and first semester of their senior year, students will complete three practica in general education classrooms in addition to their coursework. During the second semester of their senior year, students will complete a practicum in a special education classroom that serves only students with disabilities. These practica are designed to help prospective teachers to develop knowledge and skills for general education classrooms, special education classrooms, and linkages between the two. During the fifth year of the program, students will deepen their knowledge and skill levels and complete a full semester of student teaching that is split between general and special education classrooms. Upon completion of the program, students will be recommended for certification in both early childhood education and in special education.

Faculty: Faculty for the program will be drawn from the Early Childhood Education and Special Education Departments within the College of Education.

Enrollment: The faculty members intend to market the program heavily in order to attract significant numbers of students who would be prepared to teach students with disabilities in both general and special education classrooms and thus meet some of the demand in area schools.

Funding: No new state allocation has been requested. The university will redirect resources to support the program.

Assessment: The Office of Academic Affairs will work with the institution to measure the success and continued effectiveness of the proposed program. In 2006, this program will be evaluated by the institution and the Central Office to determine the success of the program's implementation and achievement of the enrollment, quality, centrality, viability, and cost effectiveness goals, as indicated in the proposal.

5. Establishment of the Major in Special Education Within the Existing Bachelor of Science in Education Degree, Armstrong Atlantic State University

Approved: The Board approved the request of President Thomas Z. Jones that Armstrong Atlantic State University ("AASU") be authorized to establish the major in special education within the existing bachelor of science in education degree, effective September 13, 2000.

Abstract: The Department of Special Education proposes to establish a major in special education with specialization in cross-categorical instruction within the existing bachelor of science in education degree to prepare teachers to teach children and youth who are identified as having one or more disabilities. Special education is a term used to refer to the teaching of children with one or more mental, behavioral, learning, or physical disabilities. The terms interrelated and cross-categorical special education are used interchangeably to refer to a teacher preparation program that prepares teachers to teach children with all of these disabilities. Teachers prepared through this program will teach K-12 students with any of these disabilities who are assigned to special education classrooms for all or part of the school day. The teachers must be prepared to work collaboratively with the general education teachers in whose classrooms special education students are placed for a portion of the school day. Special education teachers must also be able to implement plans for "medically fragile" students, develop individual education plans for each child, and keep parents informed about the progress of their children who are placed in special education classrooms.

Need: Special education ranks at the top of the list of fields with teacher shortages in Georgia. Data from the Georgia Department of Education show that throughout the 1990s, the number of special education students has grown from 101,762 to 147,621. Nationally, between 1982 and 1993, the number of disabled youth age 21 or younger served by federally supported programs has grown to 1.1 million (National Center for Education Statistics). In 1999, the U.S. Department of Education reported over 4,000 full-time special education teaching vacancies and close to 28,000 individuals assigned to teach special education children who were not certified. Teacher shortages in special education are projected to continue to worsen in both Georgia and the nation. In the service region of AASU, area school administrators responded with an "urgent need" for this program. Seventy-five students currently enrolled at AASU have already expressed interest in the program.

Objectives: This program seeks to give teachers the knowledge and skills they need to teach children and youth with one or more disabilities, to collaborate with general education teachers in providing the optimum education for special education children and youth, to understand all of the federal requirements for working with special education students, and to provide parents of children with the special needs and help they need to provide for their children's education.

Curriculum: The program is 120 semester hours (which includes physical education and 3 hours of free electives). The program draws faculty members from the Departments of Special Education, Mathematics, Criminal Justice, Early Childhood Education, Psychology, Nursing, Physical Therapy, and Education. The program will link with Valdosta State University and Georgia State University for students desiring additional areas of specialized certification in hearing impairment and visual impairment, respectively. The program was developed in accordance with the national standards for special education developed by the Council of Exceptional Children ("CEC"). AASU intends to seek specialized accreditation for this program through the Council of Exceptional Children.

Students will go through the program as a cohort of 30 to 40 members, with one new cohort admitted each year. The program will be administered by the Department of Special Education.

Admission Criteria: Students admitted to the program must meet the following criteria: completion of at least 40 semester hours of university courses with at least a 2.7 grade point average, passing score on the Regents' Test, passing score on PRAXIS I (one of two examinations required for certification), and completion of at least ten hours of approved volunteer service in an educational setting.

Projected Enrollment: It is anticipated that for the first three years of the program, student enrollment will be 30, 35, and 40.

Funding: No new state allocation has been requested. The university will redirect resources internally to add one full-time and several part-time faculty members needed to support the program.

Assessment: The Office of Academic Affairs will work with the institution to measure the success and continued effectiveness of the proposed program. In 2004, this program will be evaluated by the institution and the Central Office to determine the success of the program's implementation and achievement of the enrollment, quality, centrality, viability, and cost effectiveness goals, as indicated in the proposal.

6. Establishment of the Existing Specialist in Education With a Major in Educational Leadership as an External Program at Georgia Southwestern State University, Albany State University

Approved: The Board approved the request of President Portia Holmes Shields that Albany State University ("ALSU") be authorized to establish the existing specialist in education ("Ed.S.") degree with a major in educational leadership as an external program on the campus of Georgia Southwestern State University ("GSSU"), effective September 13, 2000.

Abstract: ALSU has been authorized to offer the Ed.S. degree with a major in educational leadership since 1992. Like all programs that prepare educators in System institutions, this program has been redesigned recently to conform to the Regents' "Principles and Actions for the Preparation of Educators for the Schools." Rather than duplicate a similar degree program at GSSU, the two universities proposed a cooperative degree program to be offered by ALSU on the campus of GSSU.

Students will go through the program as a cohort and may take courses offered on either campus. A cohort of about ten students is anticipated, with the program scheduled to begin in January 2001. Students must be admitted to the program through ALSU.

The faculty for the program will come from both ALSU and GSSU. GSSU will offer four courses; ALSU will offer the remainder. Credit hours will accrue to either campus in accordance with the faculty member who teaches the course. The two institutions have signed a memorandum of agreement that spells out the roles and responsibilities of each institution.

Projected Enrollment: It is anticipated that for the first three years of the program, student enrollment will be 10, 10, and 10. The program will admit students in cohort groups.

Funding: The institution intends to fund the proposed program through institutional redirection.

7. Establishment of the Internet Alternative Delivery of the Existing Bachelor of Science Degree in Radiologic Sciences, Armstrong Atlantic State University

Approved: The Board approved the request of President Thomas Z. Jones that Armstrong Atlantic State University ("AASU") be authorized to establish the Internet alternative delivery of the existing bachelor of science degree in radiologic sciences, effective September 13, 2000.

Abstract: AASU will offer the existing bachelor of science in radiologic sciences degree via the Internet. The Web site address is http://www.radsci.armstrong.edu/. The campus-based degree allows students several curriculum options. However, the Internet-based degree will be restricted to students who currently hold an associate degree or a hospital

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Meeting Minutes - September 2000

Minutes of the Meeting of the Board of Regents of the University System of Georgia Held At 270 Washington St., S.W., Atlanta, Georgia September 12 and 13, 2000

Minutes of the Meeting of the Board of Regents of the University System of Georgia
Held At 270 Washington St., S.W., Atlanta, Georgia
September 12 and 13, 2000