August 3, 2005

To: Members, Board of Governors, and System Colleagues

From: Mark Drummond, Chancellor

Subject: Update

Hopefully summer is proceeding well for you. It has been unusually hot in the Central Valley during July so it is good to begin one’s day very early. I spent the weekend putting in a misting system for the horses – so once they get over being worried about the hissing they will enjoy the cool. The donkeys immediately chose cool over any concerns about hissing – so we can see who’s smart and who’s not!

It is peaceful here for now with the Legislature in temporary hiatus and most colleges not in session. We are working on the Strategic Plan, completing implementation of the Agency Review recommendations and following up on important legislation (pretty much limited to SB 361 Scott – BOG funding formula and SB 794 Scott – Career/Technical Education). Of course, other legislation is pending but none has the urgency of these two bills. Other matters we are working on include:

• Vice Chancellor Appointments – we interviewed three finalists for the VC Educational Services position and sent two forward to the Governor’s Office for consideration. Of course, we are anxious to finalize this since Acting VC Skip Davies is quite anxious to try out his retirement (which we have seriously interrupted). We are now turning our attention to the VC Economic Development position (title still being worked on). We will use the same “partnership” approach in recruiting with the Governor’s Office for this appointment.
  
  
• Federal Relations – we have been operating with a vacancy in the Federal Relations position, which reports to the Senior VC for External Relations (Dr. Moore). We have been asked by the Governor’s Office to consider placing Ms. Anne McKinney (formerly Assistant Secretary for Education) into this position. I have discussed our needs with Ms. McKinney and she is anxious to join our team. The only hindrance to finalizing this appointment (controlled by the Governor’s Office) is for the Department of Finance to reactivate the “shadow exempt” position, which they eliminated due to it being vacant for over six months. I expect Ms. McKinney to join us before September 1, and to immediately begin pushing our Federal funding requests and also networking with the Office of the Governor and other state agencies to coordinate Federal opportunities.
  
  
• The Governor’s Initiatives – we have received thirty-three formal responses to our RFP for the three categories of nursing program augmentation made possible by the Governor’s redirection of $30 million in WIA set-aside funds. Judging from the caliber of the institutions responding, I expect most or all to be of excellent quality. Secretary Bradshaw and I are pretty far along with seeking a funding augmentation from the Department of Labor (Federal) to fund most or all of these requests. The official “reading and ranking” of the proposals will take place this week in our office. The Governor is also holding $37.4 million dollars in reserve to fund the Career/Technical Education initiative, which he vetoed due to the inclusion by the Assembly of items he did not favor. Senator Scott is carrying a bill (SB 794), which complies with the Governor’s agenda. If this passes without items being added in the Assembly we should be able to move ahead with this important work in the fall. Unfortunately, I do have information that some Assembly members intend to add language back that would be unacceptable to the Governor – so we have to wait and see. In the meantime I am trying to work with Assembly members to let the bill proceed as written with the assurance that once signed we will accommodate their needs within the legitimate limitations of the law.
  
  
• CWIB – the CWIB (California Workforce Investment Board) finished the two-year plan required by Federal law, and the Bush Administration has accepted it. To implement the plan, the CWIB staff has established four implementation committees. The task of these committees will be to flush out needs for legislation or CWIB policy that will enable the plan. I have been asked by Secretary Bradshaw to chair the committee on “Lifelong Learning” and have agreed to do so. This is important because this committee will recommend funding priorities for both Federal and State funds directed at career/technical education including the very important WIA Youth Programs (approximately $300 million annually in California for the Youth efforts alone).
  
  
• Compton – Compton College continues to be a major source of concern and effort. We will deliver the request for review (of the termination decision - all 300 or so pages) to the Commission by this Friday (August 5, 2003). While the drama of “to accredit or not accredit” continues, we are making great progress on getting the college into full compliance. I have consistently maintained that if we are given until summer 2006, Compton College will be a fine example of an effective and efficient community college. I only hope the Commission will share my views and give the college a second chance. No neighboring district is willing to commit to offering courses at the college on a substitute basis. This means that IF accreditation is denied we will have to move quickly on some sort of merger plan. I prefer to not consider this alternative until we have exhausted our remedies.
  
  
• Fiscal Monitoring – we are working to improve the effectiveness of our fiscal monitoring in two ways. First, we sponsored a bill written by Assemblywoman Sally Leiber (AB 1366) that would give the Board of Governors direct access to the services of FICMAT should another financial crisis at a college district develop. Current law requires that we invoke FICMAT through the local county superintendent of schools rather than directly. The second issue we are working on is to redefine and streamline the fiscal monitoring reports including the “watch list.” We are working on new definitions and action plans with representatives of the districts and ACBO and should have some recommendations by late fall ’05.
  

• Chancellor