Date: Monday, April 17, 2023, 4:45 pm Spartanburg Community

Date: Monday, April 17, 2023, 4:45 pm

Spartanburg Community College, DLT109

Subject: Minutes from The Spartanburg County Commission for Technical and Community

Education Meeting

Attendees: Chairman Anderson, Vice Chairman Keller, Secretary Hill, Commissioner Tate,

Commissioner Fowler, Commissioner Kennedy, Commissioner O’Neill,

Commissioner Bell, Commissioner Sarratt, Commissioner Smith, Dr. Mikota, Dr.

Obi, Dr. Satterfield, Mr. Burroughs, Ms. Hughes, Mr. Grace, Mrs. Walker

Absent: Commissioner King, Commissioner Radford, Mr. Burns

I. CALL TO ORDER

Chairman Anderson called the meeting to order at 4:46 pm.

II. COMMISSION MINUTES

Chairman Anderson presented the March 20, 2023, meeting minutes, which previously had

been shared with the Members and asked if any Member had edits or questions. Hearing no

amendments or objections, Chairman Anderson asked for a motion to approve the minutes

as written. Commissioner Keller motioned to approve the March 20, 2023, meeting minutes,

Commissioner O’Neill seconded the motion, and all voted aye.

III. CONSENT AGENDA

Chairman Anderson presented the Consent Agenda Items, which previously had been shared

with the Members and asked if any Member had edits or questions. Hearing no amendments

or objections, Chairman Anderson asked for a motion to approve the Consent Agenda Items

as presented. Commissioner Fowler motioned to approve the Consent Agenda Items,

Commissioner O’Neill seconded the motion, and all voted aye.

IV. NOMINATING COMMITTEE APPOINTMENT presented by Commissioner Tony Bell

Chairman Anderson opened the floor to Commissioner Bell who then announced the

recommendations of the Nominating Committee as follows: Chair – Commissioner Keller,

Vice-Chair – Commissioner Bell, and Secretary – Commissioner Hill.

Chairman Anderson opened the floor to questions. No questions were put forth.

Commissioner Kennedy motioned for nominations to be closed. Commissioner Fowler

seconded the motion, and all voted aye.

Chairmen Anderson asked for a motion to approve the recommendations of the Nomination

Committee. Commissioner Kennedy motioned to approve the recommendations of the

Nomination Committee, Commissioner O’Neill seconded the motion, and all voted aye.

V. FINANCIAL REPORT presented by Ms. Melissa Hughes, Director, Finance

As of the end of March:

• Revenues are showing a decline as a percent of the proposed budget that included a 10%

enrollment growth, which is showing .02% decrease. However, revenues are up as

compared to year over year.

• Year-Over-Year an increase as far as revenue dollars of about $1.9 million

• Continuing Education is showing down about 51%

• Auxiliary including the bookstore, textbook sales, supply sales, and vending is showing

down approximately 30% as adjusted because of the transition of not requiring individual

departments to purchase from the bookstore with a markup. However, merchandise sales

have increased.

• State allocation have increased 3%.

• County Allocations = 71%

• Spartanburg County = $5.9 million

• Union County = $167,000

• Cherokee County $570,000

• Expenditures -full-time salaries and fringe are showing the 4% decrease and part-time

salaries and fringes show a 21% decrease

• O&M Expenses is reflecting a 14% decrease

• Year-Over-Year there is a 9% decrease in expenditures

Summary

As of March 31, 2023, SCC received 86% of our budgeted revenues, which is 15% less than

this time last year as a percent of the budget. There are no major issues currently versus the

budget or last year. Expenditures, as a percent of the budget were at 68%, which is 9% less

than the previous year.

The floor was opened for questions. No questions were put forth.

Chairman Anderson asked for a motion to approve the Financial Report. Commissioner

Kennedy motioned to approve the Financial Report, Commissioner O’Neill seconded the

motion, and all voted aye.

VI. CAPITAL FEE ANALYSIS presented by Ms. Melissa Hughes, Director, Finance

A percentage of Curriculum Revenue funds the Capital Fee

• Technology/Equipment Fee funds the Academic Affairs Equipment Budget

• Capital Fee was previously used to fund the Evans Campus purchase

• Evans was completed in fiscal year 2020

• This fee is being used for other Capital projects

• Facilities & Finance Committee discussed whether to continue to collect this fee for

Evans or if it should be used for other projects or College expenses.

At this time Ms. Hughes opened the floor to Commissioner Kennedy who stated that he thought

the decision had been made previously to continue to collect this fee. Commissioner Kennedy

was under the impression that this money was to go into the Capital Projects Fee account to start

accruing for other major projects. At this time there are no funds dedicated to a capital project,

i.e., a new building. Commission Kennedy proposed that if this fee is continued to be collected,

the monies need to be collected for a designated expense and not just added back into the Plant

Fund.

Dr. Mikota stated that this was an important conversation for the Commission as the College is

currently in a very strong position to focus revenues in a way that it hasn’t before in the past.

Dr. Mikota showcased that efforts of the past two years have led to the largest enrollment in the

history of the College. There is a necessity to focus on meeting that growth demand with new

facilities. Dr. Mikota showcased that 2 years ago, the College worked to attain $6.2M and last

year worked to attain $13.5M for Deferred Maintenance from the State. Per Dr. Mikota the

$13.5M has not been allocated for expenditure. In the past there may have been a need to

withdraw specifically from plant fund, but currently the college has resources to utilize for

critical facility investments. Over the next couple of months, Dr. Mikota explained that there

would be discussions about the Tuition Rate and how it is set in relation to the growth needs of

the college. Dr. Mikota stated that it is important for the Commission to allocate the funds wisely

and prioritize the use of the deferred maintenance funds that have most recently been acquired

from the state.

Commissioner Kennedy recommended restarting the Capital Account.

The discussion then turned to the Capital Fee is not actually a fee that is charges to students, but

a percentage of the Curriculum Revenue collected. Per Commissioner Kennedy this fee was

created and added to tuition to enable the College to fund the Evans Building.

This conversation was tabled until next month’s meeting. The Facilities and Finance Committee

will discuss further, and the topic would be placed on the May Commission Agenda.

VII. ANALYSIS OF SPRING WRITE OFF’S presented by Ms. Melissa Hughes,

Director, Finance

• These Write Off’s are from Fall 2021 Semester which was the kickoff of the Free Tuition

Initiative

• During this Initiative many students who applied did not complete a FASFA which

resulted in $242,196.53 in student debt

• There is an additional $219,263.95 in student debt due to student’s beginning the process

of filling out the FASFA but did not finalize

• Total write off for the Fall is $615,837.73

• Due to this debt there have been controls put into place to assist in alleviating this

potential write-off in the future

• In the future, students will no longer be allowed to start classes if they have not filled out

or completed the FASFA as this is a requirement to take advantage of the free tuition

• $461,000.00 of the $615,837.73 is due to student who did not qualify for free tuition due

to not filling out or completing the FASFA

VIII. ANALYSIS OF BAD DEBT WRITE OFF’S presented by Ms. Melissa Hughes,

Director, Finance

• This is an overview of the last four years as well as what was collected and budgeted

• $489,188 has been collected

• At this time 2.74% which is a high percentage but there was also an increase in enrollment

during this semester

• Administration has the authority to approve up to 1% of budgeted tuition and fees be

written off; 1% = $318,153

• Recommendation is to receive approval to write off $615,838, which is 1.93% of the

budgeted tuition and fees for this year.

At this time the floor was opened to questions or comments. None were put forth.

Chairman Anderson asked for a motion to approve the writing off of $615,838. Commissioner

Bell motioned to approve the writing off of $615,838, Commissioner Kennedy seconded the

motion, and all voted aye.

Commissioner Kennedy added that it is important that these monies be written off regularly.

Once written off the College can report to the Department of Revenue who can move to recoup

the monies for the College through tax returns. The Department of Revenue cannot move to

collect until the College writes the amounts off.

IX. PRESIDENT’S REPORT presented by Dr. Michael Mikota, President

Dr. Mikota started his remarks by explaining the different venue for the Commission Meeting.

The meeting was moved due to a faulty coupling that was attached to a pipe connected to the

sprinkler system located in the Commissioner’s Dining Room wall. The area where the coupling

was located is called a “Chase”, which is a vertical space in a wall which provides an area for

pipes or wires to run through. This “Chase” was located in the wall and there has obviously been

a long-term leak that corroded the coupling which led to the water damage. Dr. Mikota showed

the actual coupling to the commission, and stated that the elevator was inoperable, and therefore

the meeting was moved to DLT 109.

As far as the Write-offs and not being able to pull down all the monies available due to the

uncompleted FASFA’s, there is a process that has been put into place to manage this in the future.

Dr. Mikota discussed one accountability area that is currently being worked on regarding the

offerings and scheduling of courses and trainings. Last fall there was a limited number of

students that could be enrolled year-over-year because the college was not able to schedule

additional classes to meet demand. Hiring of instructors and adjuncts has ramped up this spring.

Quality Control and Quality Assurance are also being worked on. Dr. Satterfield is working to

establish the accountability measures of the faculty. Last Fall Dr. Mikota established a Deans

Council which is both academic and student facing as well as the Vanguard Team, which was

presented last month, as both of these teams works to build accountability and a strong

community of academic learning and training. Dr. Satterfield is working to set up an Academic

Council to establish accountability of the offerings to students and growth in that area. If

accountability is not there in some cases individuals take advantage of the system. There are

faculty and staff that go above and beyond and that is to be applauded, but there needs to be

checks and balances to provide a consistent outcome for students.

The College continues to make good strides in the relationships with the regional Career Centers.

A Joint Advisory Committee meeting was held on the Giles Campus March 22, 2023.

Commissioner Keller attended. It was a great event which included the Career Centers, Advisory

Committees and Dr. Quincie Moore, CTE Director for the State. This meeting was to facilitate

the aligning of curriculum. The Workforce Readiness Bill, which passed the House and is

currently in the Senate, is focused on curriculum alignment with Career Centers.

Dr. Mikota hosted the Czech Republic Ambassador, Miloslav Stasek, while he was in the area

for an expansion for KV Final, a Spark Center alumnus. Dr. Mikota has had meetings over the

last year and a half with three ambassadors from Switzerland, Israel, and now the Czech Republic

and most were focused on apprenticeships, new technology and investment in this area.

Last Fall Dr. Mikota was invited to Washington to attend a joint signing on a Quantum Panel

with the Israeli Ambassador, Michael Herzog. This past Friday, Dr. Mikota attended the 2

Quantum Panel at Clemson University. The question was posed to Dr. Mikota about how this

applies to the College from a technology standpoint. Per Dr. Mikota Spartanburg Community

College is not involved just to build out a quantum technology incubator for research, the College

wants to formulate the metrology, metal working, and the components of building and to be able

to go out and supply the Economic Development Team with the ability to recruit these companies

to set the new stage for this infrastructure. This will depend on the partnerships and how the

curriculum is aligned and resources.

Tomorrow Dr. Mikota and the President’s Cabinet will be visiting Palmetto Patriots Home in

Cherokee County. The Honor Health Career Program will be investing in the College by way

of the LPN program that was just launched in January. The Honor Health Career Program will

be offering resources to help provide for an instructor and will provide students with

apprenticeships and pay. This model will allow students to work and earn a paycheck while

continuing with their education through the LPN program.

Dr. Mikota met with the Union County Supervisor in January to discuss a path forward. Post

meeting the Union County Supervisor said he would pull together industry and business for

discussion of needs. The model in Union is broken and has been broken for some time. The

College is not wanting to run into the red nor does the College need to subsidize Union with

funds from the other counties, but there is a way to help the businesses in Union. Subsequently

post meeting the Union County Supervisor sent Dr. Mikota an email copying some of the

regional legislators who Dr. Mikota has also been working in concert with. Currently the College

is running only a few programs in welding and a few courses in mechatronics, but the College

does want to synergize and offer what the businesses need. Therefore, on April 28

Dr. Mikota

and others will be meeting with six of the largest industries in Union to see how the College can

help to increase the talent pool and to broadcast what Spartanburg Community College needs in

a partnership whether it comes from the County, school district, or potentially other partners.

The College has continually tried to help and support, pulled money to the table in the amount

of $4.8M two years ago, but there must be students and the capacity to build out growth and

availability. Dr. Mikota believes in Union and the industries there, but the College needs some

partners. The partnership between the College and school district is not very strong. The $4.8M

is still aligned for Union, but Dr. Mikota would not bring a recommendation before this

Commission or to the Legislators to utilize those funds unless there is a strong plan. The College

does not own the building in Union, the County currently owns the facility there. Therefore, the

concept of placing an Enterprise Campus there is not feasible under current conditions. From a

workforce and training standpoint there are some opportunities and Dr. Mikota will do

everything possible to support this initiative.

Dr. Mikota participated in the Legislative Luncheon which was held on the grounds of the State

House. This was an opportunity to showcase programs of study and meet with legislators. These

Legislators have been working hard to setup budgets for the spring. Spartanburg Community

College is looking very strong. On the House side, there originally was a $12M mark for the

Cherokee County Campus, there was no line item for the Tyger River Campus. Fortunately, the

Legislators went back on the Senate side and put a $25M line for Tyger River and a $10M in

differed maintenance, and also a $1 line for the Cherokee County Campus which can be

negotiated in conference. Per Dr. Mikota based on information from the BEA there should be

more revenues for the state as one-time funds this legislative session. Additionally, the House

had $100M in the budget for SCWins. This is funding the College can draw down to offset some

of the Free Tuition Initative. The Senate had $80M.

Dr. Mikota met with Cole Alverson last Monday and because of the growth in Spartanburg

County the budgets are looking strong for the upcoming year. There was also discussion about

long range planning and Dr. Mikota needing to go before County Council to present and

showcase what has been accomplished and what the needs are. A date for that is being planned.

There was also discussion about utilizing the $2M received from Spartanburg County earmarked

traditionally for capital projects to fund the free tuition initiative for FY24 if necessary. Mr.

Alverson said it had not been put before a vote, but there had been no pushback on this request

from any officials on County Council to date.

Spartanburg Community College is not just working to set the tone for needs as an entity working

in Spartanburg, Union and Cherokee Counties, but is working to set the stage to operate on a

differential from other higher educational institutions who are going to continue to have

challenges. There are technical colleges and other educational institutions that are currently

encountering challenges because 1.3M students have disappeared from colleges since the

pandemic. Those students aren’t coming back. The enrollment challenges and the cliffs and the

changes expected in 2026 are upon these institutions now. The College must be nimble and

change, internally and externally. How the College adapts, changes, and eventually operates

differently in the future will determine its success in meeting student and community needs.

Most high school seniors are not interested in studying online. Dr. Mikota feels that the College

can make a difference both with the high school seniors and with adult learners and there is

continued work to sharpen the identity and magnify the brand of Spartanburg Community

College. To move in this direction the plan is to: develop a clear strategy and focus on the core

of the offerings, reduce administrative and support cost; free up capital in non-core assets, and

strategically investing in innovative models to sustain growth.

Spartanburg Community College is required to submit IPEDS – Integrated Postsecondary

Education Data System. This is a system of interrelated surveys conducted annually by the

National Center for Education Statistics (NCES), a part of the Institute for Education Sciences

within the United States Department of Education. IPEDS consist of twelve interrelated survey

components that are collected over three collection periods (fall, winter, and spring) each year

as described in the Data Collection and Dissemination Cycle. The completion of all IPEDS

surveys is mandatory for all institutions that participate in, or are applicants for participation in,

any federal financial assistance program authorized by Title IV of the Higher Education Act of

1965, as amended. These IPEDS showcase expenses, resources, tuition and fees, appropriations,

investment income and how the College focuses on institutional support, etc. Dr. Mikota and

Ms. Hughes recently met with the Research & Development Team to showcase how these

reported numbers are placed in the budget so that IPEDS can be used as a mechanistic tool to

help the College understand administrative cost vs. cost of student headcount and what it cost to

educate these students. In the past decade due to the increased FTE but decreasing enrollment

the College was unable to apply and submit Title III grants because core expenses were too high

for FTE enrollment in relation to how these figures were reported. It is important to note that

core expenses per FTE enrollment dropped from 2021-2022 to 2022-2023 by over $1,500.

Inaugural Chaser’s Cup Golf Tournament was held April 10

at Carolina Country Club. Spark

Center alumnus, Global Transplant Solutions, was the winning team. $87,000 was raised.

Performance for the upcoming year and how it is managed - Dr. Mikota will strive get his

planning stages completed before June so that his review and plans can set the stage for the

College.

This concluded Dr. Mikota’s report. The floor was opened to questions, none were put forth.

Chairman Anderson asked for a motion to approve the President’s Report. Commissioner Bell

motioned to approve President’s Report, Commissioner Kennedy seconded the motion, and all

voted aye.

X. SC TECHNICAL COLLEGE SYSTEM UPDATE presented by Mr. Grant Burns,

State Board Member

Mr. Burns was unable to attend the meeting.

XI. ADJOURN

Chairman Anderson asked for a motion to Adjourn the meeting. Commissioner Hill motioned

to Adjourn. Commissioner O’Neill seconded the motion. All voted aye, and the meeting

Adjourned at 5:47 pm.

Respectfully Submitted by:

Mrs. Tracey Hill, Secretary