UNIVERSITY GOVERNANCE:Where Weve BeenWhere We AreWhere We Need To Be

Where Weve Been 1851 Legislature Established 2 Seminaries

1905 Buckman Act Creates the Board of Control

1965 Legislature Creates the Board of Regents As the Statewide Governing Body for Floridas Universities

Where Weve Been STATE AGENCY STATUS

Key Functions of the Board of RegentsAdopt systemwide strategic plan Defining institutional missionsMonitor and manage accessRecommend policy to legislatureRecommend State University System initiatives to Congress

Key Functions of the Board of RegentsStudent feesTuition levelsCampus master plansLegislative Budget Request for SUS(including PECO)Program reviewsNew degree programs

AccountabilityChancellor & PresidentsAllocate fundsSystem rulesOperating budgetsInternal audits

WHERE WE ARE 1998 Constitutional Amendment 8

Commissioners Blue Ribbon Committee on Education Governance

Where We Are2000: HB 2263Florida Education Governance Reorganization Act of 2000

Abolished existing system

Established FBOE 2003

Established Commissioner of Education & other leaders

Transition Task Force

Where We Are2000: HB 2263Florida Education Governance Reorganization Act of 2000

Abolished existing system

Established FBOE 2003

Established Commissioner of Education & other leaders

Transition Task Force2001 SB 1162Florida Education Governance Reorganization Implementation Act

BOR abolished 7/1/2001

University Boards of Trustees

FBOE 7/1/2001

Secretary of Education

*The BOR dissolved

via Type 2 Transfer 7/1/01

GOVERNOR

Head Educational Officer

State Board of Education

(Governor & Cabinet)

Legislature

Florida Board of Education

7 members apptd by theGovernor

Secretary of Education

(apptd by Governor)

Commissioner of Education (elected)

Department of Education

Chancellor

Community Colleges

Chancellor

Public Schools

Chancellor

Colleges & Universities

Executive Director of Independent Education

Office of Commissioner

(OT, OEF, OWED, OSFA)

K-20 Leadership team includes Commissioner and Director

Education Re-organization Workgroup. Will make HR recommendns

Council for Education Policy Research & Improvement (CEPRI)

(formerly PEPC)

Transition Task Force

CC District Boards of Trustees

CC President

School Boards

Superintendent

University

Boards of

Trustees

University President

Council for Independent Education

FY 2001-2002 GovernanceType Two Transfer (20.06, F. S.)Abolished agency . . . the merging into another agency or department of an existing agency or department with certain identifiable units or subunits, programs, activities or functions removed therefrom or abolished.Authority Transfer . . . all statutory powers, duties, and functions, and its records, personnel, property, and unexpended balances of appropriations, allocations, or other funds . . .Agency RulesUnless otherwise provided by law, the administrative rules of any agency or department involved in the transfer which are in effect immediately before the transfer remain in effect until specifically changed in the manner provided by law.

Key Functions of the Board of RegentsStudent feesTuition levelsCampus master plansLegislative Budget Request for SUS(including PECO)Program reviewsNew degree programsAccountabilityChancellor & PresidentsAllocate fundsSystem rulesOperating budgetsInternal audits

FY 2001-2002 GovernanceFlorida Board of Education Must accomplish 4 items this year:Adopt a Budget Request for K-20Rewrite the School CodeReorganize DOEAdopt a Strategic Plan

FY 2001-2002 GovernanceStatus of UBOTs:A public body corporateSovereign immunityCivil costs229.0081(1) Notwithstanding the provisions of chapter 240, each university board of trustees is vested with the authority to govern and set policy for its university, as necessary to provide proper governance and improvement of the university in accordance with law and with rules of the Florida Board of Education.

FY 2001-2002 GovernanceCurrent Powers & Duties of UBOTsPolicy & Rulemaking Authority specifics May adopt rules and policies consistent with university mission, law and rules of the FBOE for the following:Selecting President, Fixing CompensationEvaluation (Chancellor)Presidential Search Committees (Chancellor; FBOE)Strategic PlanningAcademic Freedom and ResponsibilityInstitutional Budget Request (Chancellor; FBOE)Program Approval undergrad/grad/mastersCredit and Noncredit Offerings

FY 2001-2002 GovernanceCurrent Powers & Duties of UBOTsPolicy & Rulemaking Authority specifics

July 1, 2002 Set tuition & fees (GAA)Admission of students (FBOE)Student Codes of Conduct/Review Committee

FY 2001-2002 GovernanceCurrent Powers & Duties of UBOTsPolicy & Rulemaking Authority specificsAdministering Personnel ProgramAdministering Procurement ProgramReal PropertyUniversity PropertyDirect Support Organizations [501(c)(3)]UNF Foundation, Inc.UNF Training & Services Institute

FY 2001-2002 GovernanceCurrent Powers & Duties of PresidentsPolicy & Rulemaking Authority specificsRecommend rules to implement provisions of law governing the operation & administration of the universityPrepare budget requestGovern admissionsApprove, execute and administer contracts

FY 2001-2002 GovernanceCurrent Powers & Duties of PresidentsPolicy & Rulemaking Authority specificsCustodian of university propertyInternal academic calendarIntercollegiate AthleticsAward degreesOrganize universityInternal procedures of Student GovernmentData; Accountability; Strategic Plan

Where We Are

CHAPTER 240

Powers & Duties of BOR transferred to FBOE

Sections governing universities

CHAPTER 229

Powers & Duties of UBOTs & Presidents

School Code Rewrite Workgroup

2002 Legislative Session

New Local Governance Chapter 230

WHERE WE NEED TO BESpecific Goals for the 2002 Legislative Session

New Education Governance Model Effective January 7, 2003

FLORIDIANS

Governor

Florida Board of Education

Commissioner of Education

Chancellor of Colleges and Universities

Chancellor ofCommunity Colleges

Chancellor of Public Schools

Executive Director of Division of Independent Education

School Boards

Institutional Board

Institutional Board

Local Institutions

Schools

Community Colleges

Universities

Commission for Independent Education

Governing

Administrative/Coordinating

Council for Education Policy Research & Improvement

WHERE WE NEED TO BEMove to K-12 / Community College Model of Governance (Local Control):1. Move from current status as state agency

2. Devolve additional powers and duties to the university boards (from FBOE)

WHERE WE NEED TO BEMove to K-12 / Community College Model of Governance (Local Control):

Budgeting & Financial Management(Operating Outside of the State Treasury) Lump sum budgeting Salary rate control Mandatory carry forward authority Financial management systems Local Funds

WHERE WE NEED TO BEStatus as Employer Classification & pay plan Collective bargaining Customized benefit programsTuition Flexibility / Waiver Authority Authority to adjust tuition within a rangeConstruction ManagementBonding AuthorityConsortia Opportunities

2002 LEGISLATIVE SESSION School Code Rewrite PackageNovember 2001 Session begins January 22, 2002 House of Representatives: Proposed bill: Council for Lifelong Learning Senate: No decisions made yet; reviewing sunset and repealed portions of the law.

This presentation seeks to provide some background on the university governance structure that had been in place for over 30 years, issues involved in the transition, including the present statutory powers and responsibilities of the 11 new university boards of trustees, and the goals for this upcoming legislative.In 1851, the Florida Legislature established two seminaries to train teachers and to provide instruction in mechanic arts, in husbandry and agricultural chemistry, in the fundamental laws, and in what regards the rights of citizens. They later were to become the University of Florida and the Florida State University.

According to records of a former BOR Corporate Secretary at the turn of the century, Florida had seven small institutions of higher learning that were operating in a disorganized manner.

In response to the disorganization, duplication and rivalry that hindered progress, Floridas elected officials passed the Buckman Act which created the Board of Control. This board had complete management authority, including the authority to adopt rules and policies and make all hiring decisions. It served under the supervision of the states Board of Education.

This system served the state fairly well until the space era, when the systems ability to respond adequately and quickly to the technological needs of space exploration were seen to be hampered by duplicative efforts and in-fighting.

The Legislature then created the Board of Regents in 1965, vesting even more control and autonomy in it; their members were given longer terms and more fiscal control, while the universities were given greater academic freedom to keep pace with rapidly changing technological needs.Prior to the 1998 constitutional amendment and resulting reorganization legislation, the Board of Regents served as the governing body for the 10 universities in the State University System (SUS). The universities were and continue to be executive branch state agencies.

The Governor and Cabinet sit as the State Board of Education which, in accordance with the state constitution, is the chief policymaking body for public education in Florida. The Governor is the chair of the State Board of Education; the Commissioner of Education is the secretary and executive officer.

The elected Commissioner of Education is the head of the Department of Education, which contains divisions within it, including the Division of Universities; the Board of Regents was comprised of 13 citizens from varying geographic regions of the state plus the Commissioner of Education, and it served as the Director of the Division of Universities.

The Board of Regents was the body corporate or the legal entity operating the universities. By law, they held the contracting authority, the power to sue, and be sued and everything done at the university level was legallyfor and on behalf of the Board of Regents, unless such authority was specifically delegated by law or rule to the university presidents.Without spending too much time on the past, but to give you some perspective, some of the key functions of the Board of Regents included:

The adoption of a 10-university system strategic plan top address the educational, research and economic development needs of the state. This included the defining of institutional missions, such as Research I Universities (UF, FSU & USF), Research II Institutions (UCF, FIU, & FAU) and Comprehensive Universities (UNF, UWF & FGCU, with FAMU being classified as Comprehensive Doctoral).Managing enrollments at the universities to ensure access3. Recommending policy for consideration by the Legislature, and 4. Developing and presenting initiatives to Congress.

In governing the programmatic, financial, and physical development of the universities, the Board of Regents established the types of fees universities could charge students, and established caps or ranges therefor;the Board recommended tuition levels to the Legislature;it approved campus master plans which are updated every 5 years by Florida law; the BOR prepared the LBR for the system which would include the prioritized capital project list for Public Education Capital Outlay Trust Fund dollars PECO funds;the Board conducted program reviews;it approved all new degree programs (and also approved the termination of existing ones);within the guidelines established each year by the Legislature, the BOR adopted measures for systemwide accountability;it conducted searches and appointed a chancellor for the system and all 10 university presidents;BOR staff administered and allocated funds appropriated to the universities;the Board developed and adopted systemwide rules for example, the rules governing personnel at the universities and rules and policies governing the addition of new or termination of existing degree programs;it approved our operating budgets;And the Board conducted internal audits and monitored external audits of the universities.Now, to focus on where we are for the 2001-2002 fiscal year:AS you know, * the 1998 Constitutional Revision removed the function of the State Board of Education from the Cabinet; it established a new State Board with 7 members to be appointed by the Governor; and created an appointed, rather than an elected Commissioner of Education to be appointed by the new State Board of Education.

A 35 member committee made up of business leaders, educators, parents and private citizens was then appointed as the * Commissioners Blue Ribbon Committee on Education Governance to make recommendations on the proposed new governance structure.

The Blue Ribbon Committee held five meetings across the state; reviewed different governance models, took public testimony, and developed a governance model which would become the basis for the first reorganization legislation that became HB 2263 in the 2000 session.By the terms of HB 2263, abolishment of the existing system was to be effective in January of 2003.

The bill also created the Education Governance Reorganization Transition Task Force of 11 members, chaired by Phil Handy, now chair of the Florida Board of Education. This Task Force was charged to make recommendations for accomplishing the transition to the new model of governance. *Based upon the recommendations of the Transition Task Force, the legislature passed the Reorganization Implementation Act as the last bill of the 2001 session which sped up the transition process substantially.

Rather than wait until 2003, the Board of Regents was abolished on July 1st of this year, and, as you know 11 university boards of trustees, the FBOE and a new position for a Secretary of Education were all appointed for service effective July 1st as well.This organizational chart depicts the transition structure for the 2001-2002 year.

Temporarily, that is until January 2003, we have both the State Board of Education (a constitutional body which cannot be abolished any earlier than the January 2003 date contained in the 1998 constitutional revision) and the Florida Board; an elected Commissioner of Education and an appointed Secretary of Education.

When the BOR was officially abolished on July 1st, all of its statutory powers transferred to the newly appointed FBOE.

The 2001 legislation also established a new entity called the Council for Education Policy, Research & Improvement (CEPRI).

This is an independent board under the Office of Legislative Services. It is made up of 9 appointed citizens (5-Gov.; 2-Speaker; 2-Senate President) to serve 6-yr terms.

The new law charges this board to explore national and state emerging educational issues and examine how these should be addressed by Florida education institutions; to prepare and submit a long-range master plan for education to the FBOE, as well as a long-range performance plan; to recommend rules for the K-20 accountability system to the Legislature and the FBOE; and beginning January 1, 2003 and on a 3-year cycle thereafter, this new board is to review and make recommendations to the Legislature regarding the activities of research centers and institutes supported with state funds to assess the return on the states investment in research conducted by public postsecondary education institutions.

For the universities, the Board of Regents performed most all of these functions now assigned to CEPRI.When we refer to the FBOE getting most all of the BORs former powers and duties by Type 2 Transfer, we are referring to a legal transfer described in Florida law which provides for: an agency or department to be abolished; for the transfer of its legal responsibilities, personnel, records, funds, etc., to a new agency; and for the new agency or department to inherit all of the abolished agencys administrative rules, unless repealed by the new agency or department.

This is significant to a discussion of your current powers and duties, because unless and until the FBOE takes action to repeal or rescind the former Board of Regents rules and regulations, the exercise of many of your powers and duties are currently restricted by the presence of these rules which remain in effect as transferred (by Type Two Transfer) to the FBOE.In light of the Type Two Transfer from the Board of Regents to the new Florida Board of Education, lets revisit the powers and duties of the former BOR, now transferred in whole or in part to the FBOE or to the new university boards of trustees.Presently, the FBOE has four tasks to complete in this fiscal year:So in light of the Type Two Transfer, what authority has actually devolved to the new university boards?The 2001 legislation abolishing the BOR and establishing university boards of trustees, vested to the new boards the status of public body corporate * meaning that now the board of trustees is the legal entity which can contract, sue & be sued and otherwise govern and operate the university to the extent authorized by statute and delegated such powers and responsibilities by the Florida Board of Education.

Thus, given that responsibility, it becomes vitally important that you as university trustees be given the same liability protections as afforded the former Regents in the performance of your duties * sovereign immunity and the ability to defray * all defense costs, including attorneys fees and expenses in any civil action brought against a trustee for any act or omission arising out of the and in the course of the performance of your duties and responsibilities. You can settle claims and arrange for and pay the premium for appropriate insurance to cover such losses and expenses.Now, for your current powers and duties: You have the vested authority to govern and set policy for your university in accordance with law, and with rules of the FBOE. Next we will get into the specific areas contained in the statute. For this transitional year, and without further clarification, we construe this authority to fall into 4 categories:

You can act because the authority to do so has been vested in the university board without restriction;2. You can act, but the FBOE may one day decide to promulgate a rule or adopt a policy or guideline that could restrict you in some way in the future, but until that day, your authority is local and absolute; 3. You can act, but your actions must be within the boundaries or restrictions already set by existing rules and policies governing your actions (old BOR rules and procedures, which have been transferred to the FBOE);4. You cannot act unless and until the FBOE sets policy or procedure on the subject.

We will now proceed into the specifics found in law:

As you have previously seen, this depicts the organization for the fully implemented governance transition as recommended by the Transition Task Force. Of particular note are the blue boxes which distinguish GOVERNING bodies or entities from coordinating or administering entities. Notice that the university boards are to be governing bodies.Local Control is about University Boards & Presidents working together to make the university the best that it can be.

Translating this into specifics:

With respect to budgeting and financial management, the universities need the flexibility (enjoyed by the community colleges) to operate outside of the state treasury.We would get our legislative appropriation in a lump sum, with greater flexibility in how we can spend it, and with the ability to earn interest on it.To fit in with the previous presentation you have seen, a dollar would be viewed as a dollar, and no longer as a resource that belongs to (or must be spent in) a specific category, regardless of institutional need.

The elimination of salary rate controls would allow the university to hire and retain the best work force possible. Presently, departments may have the funds to hire personnel, but lack the state-approved rate authority and accordingly, cannot grow or improve.Having the budget authority to carry forward up to 5% has been tremendously helpful, but would would enjoy greater flexibility to carry forward unexpended funds from one year to the next, providing greater opportunities to plan for major projects, equipment or programs.Due to our current status as a state agency, the State Comptroller provides and is responsible for the accounting services, receipt and disbursement of funds, payroll and financial reporting for the university. The current system is antiquated and ineffective. The unique needs of a university have historically been a challenge to the states financial system no other state agencies present the combined challenge of student system needs, faculty activity reporting, grant accounting, medical schools, institutes, and the payroll and optional retirement programs that are unique to the universities.

The community colleges have acquired and maintain their own financial management systems. This gives them the opportunity to have a totally integrated financial system.

As you saw in the earlier presentation on university finances, many of our funds do not get deposited in local accounts, but are appropriated by the state and often diverted to other issues, often times to programs at other universities. Operating outside of the state treasury would keep local funds local, to be used by the university that collected the funds.

As with local funds, tuition and many fees are sent in to the state and deposited in trust funds, for which we must seek spending authority in the legislative process.

While not an exhaustive list, this gives you an indication of the benefits to the university to be derived from operating outside of the state treasury.A fundamental guiding principle of the Education Governance Reorganization Transition Task Force was to strengthen institutional authority by placing greater decision-making for operational issues at the local level. This is also reflected in the Commissioners Blue Ribbon Committee report in which it called for a consistent governance structure across all educational delivery systems.Currently, UNF employees are employees of the State of Florida. Previously, the Board of Regents, and now the Florida Board of Education is delegated the authority to establish a personnel system for FBOE and university employees. Because the 11 universities represent such a broad range of Carnegie classification categories from Baccalaureate-Liberal Arts at New College with little more than 600 students to the Doctoral/Research universities with over 45,000 students, it is not surprising that the universities are seeking the authority to develop and implement their own human resource policies and practices that are flexible and allow each university to develop approaches and philosophies that best meet their differing needs, missions and local/regional and global market conditions. The Florida universities could much more effectively compete with other states if they were not required to implement and maintain personnel systems that are created for the larger group of state employees.

In this regard, each university board of trustees must be designated as the public employer as the authority of the board to determine the terms and conditions of employment for its employees is central to effective and meaningful local governance.

As with employer status, we must seek parity with the community colleges with regard to local flexibility in setting tuition. While the Legislature sets the tuition for the community colleges, their boards are authorized to establish tuition to vary no more than 10% below and 15% above the combined total of the fee schedule adopted by the former State Board of Community Colleges, now the FBOE. Additionally, the universities must be given the authority to waive tuition and fees under certain circumstances, for example in establishing an education program as a benefit to its employees.

Like the community colleges, the universities must be empowered to execute their construction program in full.We would seek authority to approve and issue revenue bond debt for university-specific projects utilizing local university income streams; and lastly We would seek the needed legislative authority to explore consortia opportunities with other universities, community colleges, school boards, and other entities, public or private to explore the benefits, efficiencies and savings in the areas of risk management, health benefits, financial services and the like.