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Chairman Kaplan said, “I would like to comment that this project started after an
appearance by Dr. LaVista, Dr. Layzell, and myself before the House Higher Education
Appropriations Committee, chaired by Representative Ricca Slone. We represented to the
Committee that the Board would develop current and new policies with regard to statewide
capital policies and priorities. In line with that commitment, we have today this item before the
Board. If there has been unfairness in the past with regards to capital projects, this item sets in
concrete our opinion -- the way the universities and education institutions will establish their
needs for their capital improvement. To the highest extent possible, I pledge to you the Board’s
commitment to live by the provisions and terms of this item for all future time.”
Mr. Taslitz said, “I just have one question about the kind of analysis that has been done
when capital requests are made -- what type of payback analysis there is -- as far as different
measures? Normally when people are looking at capital expenditures they are looking at
measuring return, but I did not hear anything about a method of return on capital dollars.
“I would have a problem with any kind of capital expenditure without any kind of return
analysis being done. Obviously return can be measured in lots of different factors.”
Mr. Blakemore said, “I would agree with you in terms of having some type of analysis
that says what are we buying and what are we getting from that. What we traditionally have done
in the higher education community is work to the actual missions and purposes of the colleges
and universities. It is not going to be the same type of return that we would see typically in the
private sector setting. It is not the same type of analysis, but there is an analysis with respect to
making sure that it is tied to the overall mission and purpose of that university. Which is why
there is a change in certain circumstances for building residential facilities when the mission may
have changed -- we are looking at how we can accommodate that change.”
Chairman Kaplan asked, “Looking at this in a fresh way, is there some benefit that higher
education could achieve in looking at it in a more commercial business-like sense?”
Mr. Taslitz said, “Not only from a commercial benefit point of view, but there are
obviously lots of different people looking for a few scarce dollars, so where is the independent
objectivity as far as whose mission is more vital? I think some sort of methodology looking at
independent people judging what the priorities are because it is all coming out of the same pocket
and needs to be incorporated into the analysis.”
Chairman Kaplan said, “That is what the Board is supposed to do. This document in
terms and provisions is the recipe for us conducting an independent review and establishing
priorities.”
Mr. Taslitz said, “But without that as part of the work that we are going to see -- we need
to see that independent analysis. So when we sit here in these meetings we can make informed
independent decisions.”
Chairman Kaplan said, “And you will get that.”
