Board of Directors Meeting Minutes, January 29, 2002, San Diego

Attending:Board members Kathy Christoph, Perry Hanson, Joel Hartman, Brian Hawkins, Joanne Hugi, Greg Jackson, Susan Perry, Steve Relyea, Martin Ringle, and Amelia Tynan. Absent were Diane Balestri, Joel Meyerson, and David Ward.

Also Present:Staff members Carole Barone, Cynthia Golden, Richard Katz, Mark Luker, and Julia Rudy.

The EDUCAUSE Board of Directors meeting was called to order by Chair Martin Ringle at 1:00 p.m. on January 29, 2002.

Motion:That the minutes from the October 2001 Board meeting be approved.

Motion made by:Susan Perry
Seconded by:Mely Tynan

Passed by unanimous vote

I: Reports

Highlights of President Brian Hawkins' Report

  • There are now seven states that have travel bans and mid-year budget cuts have occurred in 21 states. How is this affecting us? We have three data points as indicators: (1) CUMREC (too soon to tell); (2) NLII meeting (4-5% above last year); and (3) EduTex regional (224 compared to 270 previous year, down a little, but we will break even). In addition, NERCOMP has 53 registrants and last year had 20 at this time, so this looks good (but we did start earlier with our promotions this year). We will continue to monitor past and projected attendance, as this is one way that we can track potential 9/11 repercussions for EDUCAUSE.
  • The book series with Jossey-Bass now has five books in circulation, and we have published several other books that are not part of the Leadership Strategies series. The sixth book is due out in March, which will complete the contract for the first series. Average sales for the Leadership Strategies series are 5,358 volumes per title, which includes the approximately 1,800 we buy for complimentary distribution; Dancing with the Devil sold more than 11,000 copies. We just negotiated with Jossey-Bass a continuation of the series and the next two books are in the planning stages, one on planning and organization (Polley McClure, editor) and one on security (Mark Luker and Rodney Petersen, editors). We get good feedback on the books on an ad hoc basis but haven't done formal assessment. Therefore, we have included questions on a forthcoming publications survey about our books to actually measure satisfaction with the books quantitatively.
  • Brian and Mark brainstormed with Doug Van Houweling of Internet2 about ways that EDUCAUSE and I2 are currently cooperating and could collaborate even more in the future. These are included in the agenda book. I2 has offered to Webcast the featured speakers from EDUCAUSE 2002 and we are looking at other electronic transmission arrangements for other events to further solidify the relationship.
  • The EDUCAUSE Research Task Force met in December to provide advice on moving ahead with a core data survey and service. We hope to have a draft survey by mid-March to begin to test and a real survey for launch by the fall. One surprise was how willing those who were at the table were to make their data public and identifiable through a member service, as opposed to keeping it confidential.
  • Conference evaluations indicated EDUCAUSE 2001 to be the most successful conference to date. One exception was the Tuesday evening event, which was not well received because of the cramped quarters and difficulty navigating. The food was supposed to be served on the outer ring, but instead was served on the stadium floor, which caused significant problems. We have decided to have the trade show open later the first evening, with food available. EDUCAUSE will fund this. We will continue with a large last-night event for the many people who do not know others and need such an event. Featured speakers were really well received -- they were the second, third, and fourth most well received speakers, after Neil Gershenfeld.
  • In December, EDUCAUSE conducted its first membership drive, focusing on community colleges, with the cover letter from Ron Bleed as chair. Three new community colleges have joined since then. We hope to do a second promotion this spring to small colleges because with Carnegie classification and restructuring of dues this may be a more attractive package for many small schools. We now have 100% of the research institutions with the joining of UC Riverside.
  • .EDU is up and running through the great efforts of Mark, Randy, and Wendy and their staffs. The project took a tremendous effort on the part of the staff for many months. Only 19 duplicate names were requested during the sunrise period and these were resolved without conflict. Now it is time to address some of the policy issues that are arising. There is a policy board (ACE, EDUCAUSE, and NACUA presidents) that will make recommendations to the Department of Commerce on such issues.
  • "E-Content" is a new department that has been added to EDUCAUSE Review, about library-IT issues (for example, copyright), to be edited by Deanna Marcum of CLIR.

Highlights of Vice President Carole Barone's Program Report

  • This NLII Annual Meeting had a better-than-expected attendance, with very few no-shows. The distribution of attendance at NLII is different from traditional meetings; 52% were IT professionals; 30% faculty (15% faculty, 15% academic administrators); and a small percent were CEOs. Other meetings are scheduled around the NLII meeting; MERLOT has a major meeting affiliated with NLII as does IMS.
  • Members of the EDUCAUSE Advisory Committee on Teaching and Learning met at NLII and spent a lot of time talking about providing more support for the teaching and learning community. They have suggested that there be a pre-conference session at EDUCAUSE 2002 on how to get the most out of the annual conference, which Carl Berger is going to do as part of the pre-conference newcomers orientation session, and the group has drafted a document along those lines as well, which will be on the Web.
  • Jeff Young from the Chronicle of Higher Education attended the NLII meeting and conducted an online debate with Vicki Suter, Ron Bleed and President McPhee.
  • The ACE/EDUCAUSE monograph series second title will be out soon, by Judith Eaton, on learning outcomes. The next will be by John Hitt and Joel Hartman on leadership. The fourth will be by Richard Katz with others on e-learning partnerships. The fifth will be by Sally Johnstone, Peter Ewell and Karen Paulson on learning as the new academic currency.
  • The NLII Web site has published a draft of a paper by Bill Graves on return on investment.

Highlights of Executive Director Cynthia Golden's Program Report

  • We are working on 2003 and 2004 conferences, as well as this year's conferences. The number of proposals is very high for EDUCAUSE 2002, which is a good indicator.
  • The EDUCAUSE 2003 committee will meet in April in Anaheim. John Bucher will chair this one. Hillary Baker will chair E2004.
  • Robert Kahn, CEO of the Corporation for National Research Initiatives, and Deanna Marcum of CLIR are doing keynotes at NERCOMP this year and Graham Spanier, Polley McClure, and Raj Reddy are keynoters for SAC. Carole Barone and Lee Higdon, president of The College of Charleston, will speak at the Southeast Regional conference in June.
  • The Professional Development Committee is very active, and currently has three foci: (1) discussion of PD offerings and how we navigate through them and whether there are better ways to inform members of what we are offering; (2) what kinds of online PD EDUCAUSE should be doing, e.g., featuring the best of EDUCAUSE, follow-up online discussion from seminars and institutes, one-time topic seminars, and so forth; and (3) a mentor program.
  • We are exploring ways to more prominently feature online availability of conference proceedings.
  • The Frye Institute participants have been selected and we are pleased with the caliber of persons who will be attending.
  • The Management Institute is sold out for February.
  • In the next issue of EDUCAUSE Quarterly there will be a new department that will feature articles related to PD topics.

Highlights of Vice President Richard Katz's Program Report

  • The portals book is being shipped today. Content for this book came out of forums held in conjunction with NACUBO for the past two years that were very well received.
  • The EDUCAUSE Advisory Group on Administrative Information Systems and Services (AGAISS) has steered much of our thinking and actions around the EDUCAUSE-NACUBO forums. AGAISS meets once a year at the annual conference for a few hours and then again for the better part of a day and a half in February. The group has a very full agenda addressing the issues in the administrative area that are keeping people up at night. The next forum theme may be business continuity.
  • Things are going well with ECAR, with two new sponsors on board. We have 69 subscribing institutions, which is also on target. The ECAR session at NLII went very well, with perhaps half of those attending not currently ECAR members, and several new subscribers may come out of this session.
  • From a content perspective, the first ECAR bulletins were launched January 7 and we are on the cycle of producing bulletins every other Tuesday. The next one is by Bob Albrecht on IT impact on accreditation.
  • ECAR is about six weeks away from publishing its first major research study on ASP/outsourcing. The California State University data center consolidation outsourcing with Unisys, The Associated Colleges of Central Kansas consortium for shared ERP and portal services, and the University of Alberta hosting of PeopleSoft are among the highlighted case studies on outsourcing and sharing services in higher education. The study on wireless is also going well; Richard asked for volunteers for institutions for case studies in this area.
  • ECAR has added Bob Kvavik from the University of Minnesota as a senior fellow. He'll work with Richard on a third major study on ERP.

Highlights of Vice President Mark Luker's Program Report

  • PKI and system security make up a large part of our current policy efforts. Security has become a major concern since 9/11 and the Federal government is especially focused on related issues.
  • EDUCAUSE and Internet2 met with Richard Clark, the new White House czar for cyber security, who recommended that we also meet with John Tritak, Director of the Critical Infrastructure Assurance Office in the Department of Commerce. At their request, EDUCAUSE will coordinate the development of a higher education chapter for a new federal guidebook of national strategy in this area.
  • ACE and others have signed off on EDUCAUSE representing the higher education community for system security in this effort.
  • We will buy half of Rodney Petersen's time beginning February 1, 2002, to support a stronger effort in the System Security Task Force. Internet2 has hired Mike Roberts to help define a stronger security effort inside I2, which involves Abilene and other operational security issues as well as potential R&D. EDUCAUSE and I2 will work together in these efforts.
  • HEBCA has reached a milestone -- "the darn thing is starting to work." This project has been technically difficult as many of the commercial products do not deliver exactly what they promise. Mitretek, the R&D firm that developed the Federal Bridge CA, has been especially helpful with these challenges. Three different universities (Wisconsin-Madison, Dartmouth, and Alabama-Birmingham) using three different CAs with three different vendors are in the final stages of testing. By linking the new Higher Ed Bridge with the Federal Bridge we are demonstrating as proof of concept how any institution of higher education could conduct trusted electronic communications with any federal agency.
  • There will be a press conference on January 31 at the National Press Club to demonstrate this success with a presentation and a video. The particular application chosen for the demonstration is using signed electronic documents to apply for grants at NIH; other applications, such as documents for student financial aid, represent a much larger pool for consideration in the future.
  • EDUCAUSE and NIH must now plan next steps. More schools and universities want to get in on the experiment so we need to develop a business model to move beyond proof of concept. NASA is interested, as is at least one state government.
  • EDUCAUSE has experienced a policy "boom" since 9/11, with many meetings scheduled under pressing time commitments. For example, we put together a talk at EDUCAUSE 2001 on the Patriot Act, followed closely by a workshop on the topic sponsored by AAU and ALA in DC, and participated in another organized by Perry Hanson.
  • We are close to finalizing an arrangement with Cornell's Institute for Computer Policy and Law (ICPL) and have shared comments with the NTIA on broadband networking and in other areas. The EDUCAUSE policy program is recognized and called on by others in DC on a routine basis.

II.Business Agenda

1.Financial and Investment Update

Total investments since last month are up $131K, giving us a growth of more than $90K. This is really good news as we expected a loss as a result of 9/11 and a declining economy even prior to that. This changes the projected cash end of 2001 with a $600K positive balance.

We are beginning to explore other areas of sponsorship, for example, for EDUCAUSE Quarterly, and are exploring the possibility of an international version with sponsorship, as well. Another area is Edupage. It now goes to 43,000 people, and only a third of those are .edu folks. If we move to an HTML format and send it out with logos and so forth, we could put "sponsored by" in the banner.

2.Review of reserve fund levels and targets

In previous meetings of the EDUCAUSE Board of Directors, it was determined that EDUCAUSE should have financial reserves that are adequate to allow the association to maintain a consistently high level of services to members through difficult economic times. Reserves should also be adequate to fund an orderly shut down of the association, permitting it to meet all its legal and moral obligations should that ever become necessary. The rule of thumb that has historically been used is one half of the annual operating budget should be kept for such emergency reserves. The most recent survey of the American Society of Association Executives (ASAE) found that the actual reserves maintained by associations that responded were approximately 56% of annual operating budgets. Based upon the budget approved in October 2001 for FY2002, our financial reserve fund should therefore be between $5,385,000 and $6,030,000.

In addition, a leadership fund of $2,000,000 was established in October, 1999 to fund extraordinary opportunities and investments that might arise to provide the initial capital for programs and initiatives that would afford the membership with a margin of excellence, and that could not be handled through the normal operating budget. This fund was (and is) not intended to be an endowment, but it is "seed corn" for efforts that the Board deems of extraordinary value to the membership.

Based upon these two criteria for the EDUCAUSE financial reserve fund, and the target for the leadership fund, our combined reserves should be somewhere between $7,385,000 and $8,030,000, as compared with the range of between $7,070,000 and $7,680,000 that was approved last year at this time. Our current actual holdings are approximately $9.8 million, not counting excess operating revenue from FY2001.

Previous Board discussions and actions suggested that these reserve funds not grow significantly beyond defined and approved levels, and that excess beyond these targets be reinvested in programs and services for the membership. Pursuant to the motion of the October 25, 1999 meeting of the EDUCAUSE Board, these targets and actuals should be reviewed annually by the Board.

Motion: That the Board affirm that the current combined targets of from $7.3 to $8 million for reserve levels in the EDUCAUSE Financial Reserves and the EDUCAUSE Leadership Fund are appropriate, and that this motion reflects the annual review of these reserve levels called for in a motion made at the October 25, 1999 Board meeting.

Motion made by:Joel Hartman

Motion seconded by:Joanne Hugi

The motion passed unanimously.

Motion: That the current excess above these levels be made available to management during 2002 to handle any shortfalls of projected revenue that might arise from the current economic environment, and the fallout from the tragedies of September 11, as discussed at the October Board meetings. The use of these funds reflects the position of the Board that it is imperative to further invest in the membership, and invest in the services and programs in support of the membership during these difficult times. In the event that these funds are not needed to cover a shortfall, that they be used for special one-time projects (such as enhanced programs in business continuity and security), and the balance left untouched in order to support initiatives approved in future years.

Motion made by:Susan Perry

Motion seconded by:Joanne Hugi

The motion passed unanimously.

Questions arose about whether we should lower dues because of the surplus. The philosophy of EDUCAUSE has been that it is better to do small incremental increases regularly to stay abreast of cost increases than to make larger adjustments on an ad hoc basis, and especially not to confuse base-budget increases with availability of one-time resources. Our current reserves give us a great deal of cushion, which is good to have right now in light of the unstable economy. Reactions to EDUCAUSE and the current programs are very positive and it is important to provide quality programs to members.

3.Use of positive cash balance for FY2002

The projections for the year-end close suggest that the year-end balance shows an excess net revenue of approximately $600,000. The past fiscal year shows a positive balance due to the success of the annual conference, and lower than projected expenses on special projects.

Because of the amount of the proposed carry-over from operating funds and the possible use of excess reserves as is proposed in the motion considered in item 3 listed above, management would not plan to use any of the $500,000 from the leadership fund, that was approved in August 2000 for the establishment of ECAR. Instead these carry-over funds would fund ECAR and other projects, leaving the leadership fund fully in tact. If circumstances change, and any draw on the leadership fund is deemed necessary, then management will inform the Board in an a priori manner. All of these issues in combination allow EDUCAUSE to maximize services and programs that could be offered to the membership in 2002.

Motion: That the operating surplus for FY2001 be transferred to the Strategic Initiatives Fund for the implementation of the projects identified as off-budget projects in the 2002 Program Plan approved in October.

Motion made by:Greg Jackson

Motion seconded by:Mely Tynan

Motion passed unanimously.

EDUCAUSE President Martin Ringle asked the board to commend Denny Farnsworth, Brian Hawkins, Wendy Milburn, and members of the Board for having the foresight to set these policies and strategies. The board did so commend, unanimously.

4.Update on the Millennium Partnership Initiative

Mark Luker reported on the MPI initiative and the Digital Gift to America proposal (now called DOIT for the Digital Opportunity Investment Trust), both of which were defined in the context of land-grant institutions as the equivalent of a land-grant act to help institutions transition to the information age.

The one of most direct interest to EDUCAUSE is the MPI, championed by NASULGC (Molly Broad and Peter McGraw) but now defined to apply to all of higher education. The is currently a plan to work with ACE and the Business Higher Education Forum on a proposed study to further define this initiative and its implications.

5.New Business

Our profession is graying and EDUCAUSE needs to discuss what are the appropriate ways to mark the passing of individuals in our community who have made great contributions. We need to establish a policy of what we should do in general so that we do not have to act in an ad hoc fashion in each situation.

  • What are appropriate ways for EDUCAUSE to mark the passing of members of our community?
  • Should a distinction be made to recognize leaders in special ways, or should we take a one-size-fits-all approach?
  • If the former, how do we determine the criteria to do this? Is it a board or executive decision?

Options identified included the following:

  1. One choice is just to say no, except for the publication policies already established.
  2. Another is to set a state of categories explicitly connected to EDUCAUSE (board members, award winners, officers, and so forth) in which EDUCAUSE would officially recognize individuals upon their death. (This was determined to be problematic.)
  3. A third possibility is to recognize people who have been important to all of higher education IT (like Herb Simon). (Also problematic)
  4. Another option would be simply to do a list on the Web of all individuals who have died in the past year. (This isn't an individual membership organization; it's the institution that belongs. So it's really not appropriate to list individual members when they pass. And such a list would shortly become meaningless.)
  5. Another option might be referencing the work of the person on the Web. (Links die and not everyone has a body of work to reference.)

After much discussion, the board came to consensus that the best policy would be to adopt the first suggestion, that is, do nothing official or public to note a member's passing. Private recognition can and will occur spontaneously from the people who knew and respected the individual (for example, the reception hosted for Barbara Horgan by her colleagues at EDUCAUSE 2001). Letters and remembrances can be sent to the family of the deceased, or the board can develop a resolution that can be sent to the family in the case of an individual who has served on the board.

Motion:That EDUCAUSE adopt a policy to make no formal recognition of the passing of members of its community.

Made by:Greg Jackson
Seconded by:Joanne Hugi

Passed unanimously.

6.Adjournment

The meeting was adjourned at 4:40 on Wednesday, January 30, 2001.

The next Board Meeting will be held Thursday, April 18, 2002 from 10:30 - 3:30 in Washington, DC at the EDUCAUSE offices at 1150 18th St.