Minutes of the VSCS Board of Trustees Meeting held Saturday, April 11, 2020, via ZOOM – UNAPPROVED Note: These are unapproved minutes, subject to amendment and/or approval at the subsequent meeting. The Vermont State Colleges Board of Trustees met on Saturday, April 11, 2020, via ZOOM. Board members present: Churchill Hindes (Chair), Janette Bombardier, Megan Cluver, Lynn Dickinson, Peg Flory, Dylan Giambatista, Izzy Gogarty, Adam Grinold, Bill Lippert, Karen Luneau, Linda Milne, Mike Pieciak, David Silverman Absent: Jim Masland, Governor Phil Scott Presidents: Elaine Collins, Joyce Judy, Pat Moulton, Karen Scolforo Chancellor’s Office Staff: Jeb Spaulding, Chancellor Kevin Conroy, Chief Information Officer

Todd Daloz, Associate General Counsel Jen Porrier, Administrative Director Meg Walz, Director, Program Manager Steve Wisloski, Chief Financial Officer

Sophie Zdatny, General Counsel Yasmine Ziesler, Chief Academic Officer

From the Colleges: Thomas Anderson, Associate Dean of Academic Programs, Northern

Vermont University Lori Arner, Director of Registrar Services, Castleton University Nolan Atkins, Provost, Northern Vermont University William Barrett, Student Reporter, News7, Northern Vermont University Nate Ball, Vice President, VSCUP, Vermont Technical College Tony Blueter, Director, Upward Bound, Northern Vermont University Kellie Campbell, Chief Technology Officer, Vermont Technical College Annamarie Cioffari, Director, Clinical Mental Health Counseling, Northern Vermont University Maria Coviello-Gould, Program Coordinator, Northern Vermont University Jonathan Davis, Dean of Students, Northern Vermont University Michal Eakin, Assistant Director, Clinical Mental Health Counseling, Northern Vermont University Michael Fox, Dean of Enrollment, Northern Vermont University Gillian Galle, Faculty, Castleton University Robby Gilbert, Faculty, Northern Vermont University Kate Gold, President, VSCUP, Northern Vermont University Laura Jakubowski, Chief Budget & Finance Officer, Castleton University Jennifer Harris, Executive Director of Development & Alumni Affairs, Northern Vermont University Ellen Hill, Internship Coordinator, Northern Vermont University

VSCS Board of Trustees Regular Meeting April 11, 2020 Minutes UNAPPROVED

Leah Hollenberger, Development & External Relations Officer, Northern Vermont University David Hutchinson, Faculty, Northern Vermont University Flo Keyes, Faculty, Castleton University Sara Kinerson, Director, Advising & Registration Center, Northern Vermont University Karen Madden, Director, Academic Support Services, Northern Vermont University Kathleen Moore, Faculty, Community College of Vermont Laura Murakami, Faculty, Community College of Vermont

Linda Olson, Faculty Federation, Castleton University Curtis Ostler, Associate Dean of Resource Development, Northern Vermont University Maurice Ouimet, Dean of Enrollment, Castleton University

Andy Pallito, Dean of Administration, Community College of Vermont Philip Parisi, Faculty, Northern Vermont University Lori Phillips, Conference & Events, Castleton University

Sylvia Plumb, Director of Marketing & Communications, Northern Vermont University Brady Rainville, Academic & Study Away Advisor, Northern Vermont University Kelly Rue Riso, Director of Human Resources, Vermont Technical College Sharron Scott, Dean of Administration, Northern Vermont University Tracy Sherbrook, Assistant to the Provost, Northern Vermont University

Jonathan Spiro, Chief Academic Officer, Castleton University Dannielle Spring, Director of Conference & Events Planning, Northern Vermont University

Michael Stevens, Director of Facilities, Northern Vermont University Littleton Tyler, Dean of Administration, Vermont Technical College

Beth Walsh, Director of Career Development, Northern Vermont University Margaret Warden, Director, First-Year Experience, Northern Vermont University Cill Waterhouse, Student, Castleton University

From the Public: Dominic Amato, Reporter, WCAX

Lola Duffort, Reporter, VT Digger David Manning, Principal, Johnson Elementary School

Cyndi Miller, AFT-Vermont Gary Moore, Former Chair of VSC Board Heather Riemer, AFT-Vermont

Jennifer Wall-Howard, Assistant Principal, Montpelier High School

VSCS Board of Trustees Regular Meeting April 11, 2020 Minutes UNAPPROVED Chair Hindes called the meeting to order at 1:02 p.m. Chair Hindes shared that this is the third full Board meeting since the first COVID-19 diagnosis and that the Executive Committee has met four times in that span. The Chair appreciates the strong engagement with the Board and the leadership during this unprecedented time. Chancellor Spaulding stated that Vermont is in a State of Emergency right now and this is a crisis in the making for higher education and for this country. Many colleges and universities won’t be opening in the fall and many have announced significant personnel actions already. The revenue loss brought on by COVID-19 is significant for residential institutions and it’s imperative that the VSCS take informed and rapid action to address the deteriorating financial situation, while at the same time ensuring that current and prospective students know that the VSCS intends to continue delivering educational opportunities at a post-secondary level despite these challenges. The Chancellor provided an update on the current status of the System, with powerpoint slides. These included some of the statistics and information that were previously outlined in the Chancellor’s Whitepaper: Serving Vermont’s Students by Securing the Future of the Vermont State Colleges System. (See attachment). It included charts outlining the declining demographics and enrollment, the bottom ranking for state support, the pricing pressure, the barriers to adaptability, and changing student preferences. These are all ongoing challenges facing the VSCS that have been intensified by the COVID-19 pandemic. The projected COVID-19 related revenue losses and costs include refunds of room and board, loss of auxiliary revenue (such as from camps and conferences), summer tuition losses, and the costs of federally mandated COVID-19 sick leave. Colleges and universities around the country are recognizing that there are likely to be additional costs and loss of revenue from COVID-19 and there is considerable uncertainty as to whether face-to-face instruction can resume by the Fall 2020 semester. Some of the actions taken to date include a hiring and spending freeze, efforts to secure additional financial assistance, and a reduction in staffing at the Chancellor’s Office. Further personnel actions are under consideration. The Chancellor restated the VSCS’s goal to continue to deliver on its public mission for the benefit of Vermont which is statewide access, affordability, high value education, and a residential learning experience. Comments from the Public: VT Digger Reporter Lola Duffort asked if it was an option to not open one or more campuses next fall. Chancellor Spaulding replied that the VSCS is looking at all options and this is one option being considered. Ms. Duffort followed up by asking when the final decisions would be made by the Board and Chancellor Spaulding answered that he hopes to bring final recommendations to the Board on April 20, 2020. Executive Session At 1:41 p.m. Trustee Dickinson moved that the VSC Board of Trustees enter executive session pursuant to 1 V.S.A. § 313(a)(1)(F), for the purpose of receiving confidential attorney-client communications made for the purpose of providing professional legal services; and 1 V.S.A. § 313(a)(1)(B), for the purpose of discussing labor relations agreements with employees; and because premature general public knowledge of these discussions would place VSC at a substantial disadvantage. Trustee Dickinson further moved that the Board enter executive session pursuant to: 1 V.S.A. § 313(a)(6) to discuss records exempt from the Vermont Public Records Act. The motion stated that the Board did not anticipate taking any action during

VSCS Board of Trustees Regular Meeting April 11, 2020 Minutes UNAPPROVED executive session. Along with the members of the Board present at the meeting, the Board invited the Chancellor, the members of the Council of Presidents, the VSC General Counsel, Chief Academic Officer, Chief Financial Officer, and Associate General Counsel to attend portions of the executive session. Trustee Pieciak seconded the motion and it passed unanimously. The Board exited the session at 3:44 p.m. and took no action.

Chair Hindes adjourned the meeting at 3:51 p.m.

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Board of Trustees Special MeetingApril 11, 2020

BOARD MEETINGSYSTEM STATUS UPDATE

2

From the Whitepaper: Demographics

3

2,500

3,000

3,500

4,000

4,500

5,000

5,500

6,000

6,500

7,000

7,500

2007‐08 2008‐09 2009‐10 2010‐11 2011‐12 2012‐13 2013‐14 2014‐15 2015‐16 2016‐17 2017‐18

12th Grade Enrollment in Vermont Public Schools

System Enrollment Trends

4

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

Fall2010

Fall2011

Fall2012

Fall2013

Fall2014

Fall2015

Fall2016

Fall2017

Fall2018

Fall2019

Fall Headcount Enrollment

CCV CU NVU VTC

Residential Institution Enrollment

5

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

Fall2010

Fall2011

Fall2012

Fall2013

Fall2014

Fall2015

Fall2016

Fall2017

Fall2018

Fall2019

Fall Headcount Enrollment

CU NVU VTC

Bottom‐Ranked State Support

6

Pricing Pressure

7

Barriers to Adaptability

8

0

200

400

600

800

1000

1200

Castleton NVU‐Johnson NVU‐Lyndon VTC‐Randolph VTC‐Williston

Current Occupancy Additional Capacity

Total empty beds across the system, Spring 2019: 

543

Changing Student Preferences, Disruptive Technology

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Multi Year Financial Results (amounts in $1,000’s)

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% FY2020 2nd QtrTotal FY2020 FY2019 FY2018 FY2017 FY2016

REVENUES Tuition and Fees 64% 113,879 113,093 110,701 112,047 110,055 State Appropriations 18% 31,938 28,940 28,939 25,938 25,453 Room & Board 14% 24,438 24,126 23,739 24,533 24,564 Sales and Services 2% 4,259 4,534 4,656 5,262 5,454 Other Revenue 2% 2,816 3,218 3,381 3,471 4,811TOTAL REVENUES 100% 177,330 173,911 171,416 171,251 170,337

EXPENSES Employee Wages & Benefits 62% 111,961 109,613 111,893 113,193 114,197 Services, Supplies & Travel 20% 36,019 35,492 35,089 35,976 37,082 Scholarships 11% 19,276 17,332 12,648 10,881 8,662 Utilities 4% 6,816 6,773 5,800 5,475 6,176 Other Expenses 4% 7,462 5,408 4,207 9,023 6,155TOTAL EXPENSES 100% 181,534 174,618 169,637 174,548 172,273

NET REVENUES (4,204) (707) 1,779 (3,297) (1,936)-2.3% -0.4% 1.0% -1.9% -1.1%

Note: internal financial reports, unaudited.

Projected COVID‐19 Expenses to Date

Room & board refunds:  $5.6 million

FY20 other revenue loss: $2 million

Summer tuition loss: $TBDFederally mandated COVID‐19 leave costs: $TBD

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Q2 FY2020 Results, Post‐COVID‐19 ESTIMATE

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% FY2020 2nd QtrTotal FY2020

REVENUES Tuition and Fees 64% 113,879 State Appropriations 18% 31,938 Room & Board 14% 24,438 Sales and Services 2% 4,259 Other Revenue 2% 2,816TOTAL REVENUES 100% 177,330

EXPENSES Employee Wages & Benefits 62% 111,961 Services, Supplies & Travel 20% 36,019 Scholarships 11% 19,276 Utilities 4% 6,816 Other Expenses 4% 7,462TOTAL EXPENSES 100% 181,534

NET REVENUES (4,204)

COVID-19 EXPENSES Room & Board Refunds (5,600) Other Revenue Loss (2,000) Anticipated CARES Act Aid 3,071

Spring and Summer Tuition Loss ?Federally mandated COVID-19 Leave Costs ?

PROJECTED REVENUES (8,733)-4.8%

Note: estimates only, unaudited.

Actions Taken To Date

• Hiring and spending freeze

• Considering additional personnel actions

• Seeking additional financial assistance

• OC staffing reduced approximately 20%

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Fall 2020 Residential Enrollment 

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Potential Financial Impact“Moody’s Investors Service issued a bleak forecast this week for higher education in America,

downgrading it from “stable” to “negative” in light of the coronavirus pandemic.”Chronicle of Higher Ed, 3/19/20

≈30% of all universities were running operating deficits in 2019 (Moody’s, 3/19/20)

≈7% of Private universities have less than 90 days of cash on hand (Moody’s, 3/19/20)

≈16% of Public universities have less than 90 days of cash on hand (Moody’s, 3/19/20)

Fall 2020 Residential Enrollment 

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Potential Enrollment Impact

Twenty-nine percent said they strongly or somewhat

agreed that “I have considered deferring

attending college until Covid-19 passes.”

Chronicle of Higher Ed (3/30/20)[If COVID-19 is not addressed by the

fall], there is a real potential for China to ban their students from

attending American Universities. Alex Usher, Higher Ed

Vanderbilt admitted 39% more students in the Regular Decision

round in preparation for a significant decline in yield. Vanderbilt Review, 3/31/20

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Our Goal: Deliver on our Public Mission

For the Benefit of Vermont

• Statewide access• Affordability• High-value education• Residential learning

experience

Public Comment

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