Board of Trustees - Minutes
July 23, 2004 MINUTES
Meeting of the Board of Trustees
Texas School for the Blind and Visually Impaired
The regularly scheduled meeting of the Board of Trustees, Texas School for the Blind and Visually Impaired (TSBVI) was held in Room 116 of the Administration Building, located at 1100 West 45th Street, Austin, Texas on July 23, 2004.
Call to Order: Frankie Swift, President, called the meeting to order at 8:52 a.m. In addition to Frankie Swift, the following board members were in attendance: Jesus Bautista, Gene Brooks, Otilio (Toby) Galindo, and Debbie Louder.
Introduction of Audience: Others in attendance at the meeting included Phil Hatlen, Kim Nagy, Debra Nesbitt, Carol Vaughan, Malcolm Cleveland, Miles Fain, Ken Miller, Barney Schulz, James Lambert, Cyral Miller, and Lauren Newton.
Public Comments/Open Forum: None.
Consideration of Approval of the Minutes of the May 25, 2004 Board Meetings: Gene Brooks moved that the May 25, 2004 minutes be accepted as presented in the board packet. Toby Galindo seconded the motion. The motion to pass was unanimous.
Consideration of Approval of Policy DEE: Debbie Louder presented Policy DEE to the board for approval. The policy is for participation in classroom supply reimbursement, and it is needed in order to apply for the Texas Education Agency grant. Debbie Louder made a motion to approve Policy DEE as presented in the board packet. Jesus Bautista seconded the motion. The motion to pass was unanimous.
Consideration of Approval of Board Meeting Dates for 2004-2005 and of Videoconference Meetings: Frankie Swift presented a proposal to reduce the number of board meetings by one in the next fiscal year by combining the September and November meetings into an October meeting. She stated that the board has expressed it would not like fewer meetings. If anything, it would like more. Jesus Bautista and Debbie Louder felt that a smaller number of meetings would “water down” the information that they receive. Debbie Louder made a motion to approve the board meeting dates for 2004-2005 as presented in the board packet, keeping the five meetings and striking out the alternative October meeting date. Gene Brooks seconded the motion. The motion to pass was unanimous. The board then discussed the possibility of video conferencing during board meetings. Carol Vaughan found out that as long as a majority of a quorum (three board members) is in one location, videoconferencing is legal. Cyral Miller stated that she thinks Outreach already owns a videoconferencing system that could be used. If we already have the technology, there would be no extra cost. Dr. Hatlen stated that it is not a financial issue, since the board’s budget has been expanded to meet the costs of the past year. He explained it is simply a travel issue, and if the board is interested in using video conferencing to decrease the amount of travel required of them, that we look to implementing it in the spring. He also advised the board to be conservative regarding conference attendance (such as TASB) and clear any non-required conferences with Ms. Swift before planning to attend. Debbie Louder suggested that she could give training sessions through Region XV on Thursdays before board meetings in order for the board to get their required hours. Dr. Hatlen said that Susan Houghtling knows the requirements for members, and suggested we discuss it with her at next board meeting. Frankie Swift suggested we get more information regarding the technological feasibility of video conferencing, and then have a short trial meeting sometime at the end of February or beginning of March.
Decision on Refilling Internal Auditor’s Position: Dr. Hatlen reported on the position of Internal Auditor. It is a 0.50 position with a current budget of $26,676. As we began to look at ways to internally reduce our budget for the coming fiscal year in order to avoid another shortfall, department heads were asked to make up to a 10% cut in their budget. The only areas in the Executive office where reductions could be made were to reduce the hours of the Safety Officer, and alter the Internal Auditor position. Dr. Hatlen stressed that it is the board's position, and they have the final say regarding any changes. Dr. Hatlen suggested eliminating the Internal Auditor position, but retaining $10,000 in the budget to be used to contract an external Internal Auditor for required audits. Carol Vaughan stated that there is a statute that requires an efficient internal audit program, but it has a very general standard. By approving an outsourced internal auditor, you are also approving that whatever audits you can purchase with $10,000 would constitute an efficient internal audit program. Effectiveness of previous internal auditors was discussed, with all TSBVI staff agreeing that Judy Schauer was the most effective auditor we have had, since she cared more about the institution and created a more involved position for herself. Malcolm Cleveland and Debra Nesbitt noted that, when dealing with a contractor, if you are unsatisfied with their performance you can opt out or not renew, you do no have to build a case for termination. Debbie Louder suggested tabling the item until the budget is reviewed in depth.
Consideration of Approval of Amended Operating Budget for 2003-2004: Barney Schulz presented the amended Operating Budget for 2003-2004 to the board for approval. The amended budget calls for an increase of $457,660, the amount of our deficit. Mr. Schulz stated that according to leaders in the House, Senate, and the Governor’s Office, and pending an action of the LBB to make an additional appropriation to the school, funds are going to be made available to the school to cover our deficit. Most likely, a process will be used in which the Governor will front the money in a deficiency grant for our shortage and for our cash flow issues for the month of August, and then we will reimburse the Governor's office for the grant in September. Barney noted that Malcolm Cleveland has been instrumental in this resolution because of his personal contact within the Governors Office. Dr. Hatlen congratulated both Malcolm and Barney for their efforts, and stated that the shortfall had been significantly reduced by: mandatory leave on days school was closed, excellent conservation measures by employees, and a reduction in the use of subs and overtime in Miles Fain’s department. Gene Brooks made a motion to approve the amended Operating Budget for 2003-2004. Toby Galindo seconded the motion. The motion to pass was unanimous.
The board recessed for lunch at 11:31 a.m.
Tour of New Student Housing: After lunch, the board visited the new Independent Living duplex on Grover.
The board reconvened at 2:04 p.m.
Consideration of Approval of Operating Budget for 2004-2005: Barney Schulz presented the Operating Budget for 2004-2005 to the board for approval. The first section is the Operating Budget Revenues. The General Revenue Operating Budget Appropriation for next fiscal year will be $11,693,450; of that we have to return back to the state of Texas 35% of retirees salaries for the remaining months of the biennium, an anticipated $315,000. Projected savings associated with retirements is $34,000. Therefore, the sub-total for the Operating Revenue Provided by State Sources is $11,412,450. The sub-total for the Operating Revenue Provided by Non-State Sources is 1,073,900, bringing the total Operating Budget Revenues to $12,486,350 for FY 2005.
Barney Schulz then reviewed the Operating Budget Expenditures by each line item, allowing the board to propose questions along the way. Regarding the subject of New Employee Orientation (NEO) expenses, Frankie Swift questioned how many new employees we lose after paying them for training. Debra Nesbitt explained that we used to have a problem with new-hire substitutes coming to NEO training and then never returning to sub. Now we have a much more in-depth selection process, including a tour of classrooms so that prospective employees can see what it is like working with students at TSBVI. This has increased our return rate after training is completed. Frankie Swift questioned why Hepatitis B vaccinations were listed as a budgeted expense, since it had previously been referred to as a one-time expenditure for FY 2003-2004. Ken Miller explained that it should not have been labeled a one-time expense, since we will continue to provide vaccinations to new employees with the highest risk of infection. However, a large portion of current high risk employees were vaccinated this past year, so the expense should not be as great in subsequent budgets. It is an item for which we have possibly over-budgeted, but we would rather err on the side of caution with this measure. Debbie Louder initiated a conversation on whether the school needed to allocate funds towards a low vision clinic. Ken Miller and Miles Fain explained why we need a low vision clinic on campus, and the pros and cons were discussed. Dr. Hatlen projected that if we allocate nothing towards the low vision clinic and then have difficulty convincing school districts to pay for on-site low vision evaluations, we would lose any low vision clinic on campus. He stated that we feel like we need one here, so if we could keep the line item and at the same time begin working with local districts for reimbursement, we may be able to save the entire budgeted expense. The board agreed to this proposal. Frankie Swift requested a discussion on weekends home. The question was raised whether it costs the school more to run the Weekends Home program or to keep students on campus. The board requested a cost analysis comparing the two scenarios for review at the September meeting. Regarding budget cuts in Comprehensive Programs, Frankie Swift questioned if reducing direct service staff effects the number of students able to be serviced. Ken Miller reported that we are having to reduce enrollment by 10 students this year. Debbie Louder expressed that she accepted the current budget proposal, but wanted to make a public statement. She felt TSBVI should cut staff or make reductions in any other department, but that the school should not continue to make reductions in areas that cause decreased services to students. She suggested discouraging staff from capitalizing on the retirement incentive by hiring new employees at lower salaries, instead of re-hiring retired employees. Barney Schulz then reviewed a hand out on the Proposed Legacy Budget, which is part of the Operating Budget. Debbie Louder made a motion to amend the Operating Budget by moving the $18,273 surplus from the Legacy Budget to the line item of Internal Auditor, making the total for that position $28,273, with a directive that the school report on costs for outsourcing audits to the Finance and Audit Committee in September. The board will then decide whether to hire a new Internal Auditor or contract an external auditor. Toby Galindo seconded the motion. The motion was unanimously approved. Toby Galindo made a motion to approve the Operating Budget with the amendment. Jesus Bautista seconded the motion. The motion was unanimously approved.
Consideration of Approval of Legislative Appropriations Request for the 2006-2007 Biennium: Barney Schulz presented the Legislative Appropriations Request (LAR) for the 2006-2007 Biennium to the board for approval.
Consideration of Approval of Method of Achieving 5% Budget Reduction in Fiscal years 2006-2007: Barney Schulz reported that the LBB had given a directive that state agencies prepare their LAR as if they had a 5% reduction in budget for FY2006-2007. Dr. Hatlen stated that because of press coverage of the outcry from agencies, we are hopeful that this reduction will not be enacted. Nevertheless, we must be prepared. In order to meet the 5% budget reduction in FY 2006-2007, we are proposing that we eliminate summer programs for 2006 and 2007. Jesus Bautista made a motion to approve the method of achieving a 5% budget cut in FY 2006-2007 by eliminating the summer programs. Toby Gallindo seconded the motion. The motion passed with one member dissenting.
Consideration of Approval of Administrator’s Statement: Dr. Hatlen informed the board the portion of the administrator's statement relating to the schedule of exempt positions had been revised. Carol Vaughan said that we will propose the following changes to what is presented: There are two options from which the board can choose in order to establish the Superintendent’s salary. They can raise the superintendent's salary to 120% of the next highest paid administrator or they can propose a rider that would give the board the ability to establish the superintendent's salary on an annual basis to be 120% higher than the next highest paid educational administrator. Debbie Louder made a motion to approve the administrator’s statement as presented with the exception that we include two alternatives for establishing the Superintendent’s salary. Toby Galindo seconded the motion. The motion to pass was unanimous.
Consideration of Approval of Proposed Exceptional Items: Phil Hatlen reviewed each proposed exceptional item with the board. Frankie Swift questioned why a duplex was more expensive than a four-plex. Barney Schulz explained that the four-plex is actually a four unit apartment which is smaller than a duplex, and he also stated that we should call them “four unit apartments” to prevent confusion. Frankie Swift also questioned why the proposed exceptional items of keyless entry and campus-wide intercom system have not been mentioned as priorities in the Strategic Plan or the Planning Council. Phil Hatlen explained that they were not mentioned in those plans because they do not pertain to instructional needs, but that they have been talked about for years. Ms. Swift stated that those needs should be documented in some way in order for the LBB to consider them substantial. Frankie Swift and Toby Galindo expressed concerns about the workmanship of the new Independent Living Houses, stating that the construction was sub-par for the amount of money that was spent. Dr. Hatlen asked Toby Galindo to be present during the “walk-through”, and Mr. Galindo agreed. Debbie Louder made a motion to approve the proposed exceptional items with items 1-5 being priorities. Toby Galindo seconded the motion. The motion to pass was unanimous.
Consideration of Approval of Proposed Riders and Special Provisions: Barney Schulz reviewed the proposed riders and special provisions with the board that will be presented in the School’s Legislative Appropriations Request. Gene Brooks made a motion to approve the proposed riders and special provisions. Jesus Bautista seconded the motion. The motion to pass was unanimous.
Discussion of Alternative Investment Options: The board requested that Barney Schulz give a report on alternative investment options at the September board meeting.
Announcements: The Dark Horse Motorcycle Club presented a donation to the school of $1,850 to continue construction on the Roadway Village Playground. They acquired donations from their own members and from various local businesses for the project. The board and TSBVI faculty thanked the Dark Horse Motorcycle Club for their generosity and continued support of the school. Miles Fain announced awards from the Principals of Schools for the Blind Awards Committee: Outstanding Residential Life Staff Member Winner--Carol Goetz, Outstanding Related Service Provider First Runner Up—Elsa Wirsching-Guimbarda and Jim Durkel.
Adjournment: Frankie Swift adjourned the meeting at 4:10 pm.
_____________________________ ________________
Frankie Swift Date
Board President
______________________________ ________________
Donna Clopton Date
Board Secretary
______________________________ ________________
Kim Nagy Date
Recording Secretary
BOARD DIRECTIVES
July 23, 2004
- Place on September board meeting – Discussion of board member training requirements. (Dr. Hatlen)
- Hold a short trial board videoconference meeting at the end of February or beginning of March. (Frankie Swift)
- Place on September board meeting – Provide a report on the cost of outsourcing required audits. (Debbie Louder)
- Place on September board meeting – Provide a report on how much it would cost to keep all students on campus on weekends that the school is not closed. (Frankie Swift)
- Place on September board meeting – Report on alternative investment options.