#5. The purpose of the closed session is a meeting with Barbara Johnson, Vice President for Accreditation Relations, Higher Learning Commission.

Roll call following closed session. All present except Birt and McGuire.

#6. Information FY2017 Budget Update.

Napolitano introduces the presentation. Budget committee has met several times. Some changes coming including state funding we were not counting on. Plan for June 23 budget ready for BOT approval.

David Virgilio from administration presents overview. All divisions have entered operating budget. Full presentation will be on the 19th. Expecting a deficit about $11million for FY17. Two options presented for balancing the budget. Variations based on use of fund balance, use of $5M surplus from current year, other factors. Questions raised about IT expenses rising abruptly, new capital requests. State payments budgeted for 6 out of 12. Bernstein asks if it’s possible to find 5% to remove. Virgilio replies that would most likely come from salary savings from unfilled positions, already built in a certain amount for that. Napolitano says that state money is really hard to predict, need to make sure we don’t get into a situation like what we’re seeing downstate. Need to preserve our rainy day fund, don’t use for balancing budget, it will go away really quick. Bernstein says we need to encourage you to find savings. Napolitano says not to reduce headcount. What else can we look at to offset deficit. Mazzochi mentions talking to schools at HLC conference who had laid off 30-50% of faculty. Prefers budget option B which does not draw from fund balance. Olsen comments that Napolitano and Bernstein are discussing a different option, he agrees. Bernstein says it requires rigorous look at expenses. Mazzochi asks if we are covered for MAP funds, Virgilio responds that those are covered differently and are already accounted for. Olsen asks for a presentation on budget variances, wants to understand what happened this year. Bernstein says he is hopeful that there is still surplus in the budget. Virgilio says that several months of this year have been unusual, delay in budget approval, then two months when BOT did not approve expenditures. More discussion of timing of presentation, Olsen presses to have it in May.

#7. FOR APPROVAL: Employment Agreement of Dr. Ann Rondeau. Mazzochi calls Kinsella to reply to public comment question about president’s vacation days etc. He says that it is intended to be in line with other senior administrators and that the policy is on the HR website. Mazzochi says no one gets special treatment. Olsen says that it’s a model contract, very transparent, no hidden clauses or benefits. Mazzochi says the board has learned from past mistakes.

Motion passes with Wozniak abstaining.