April 30, 2001

Christian Education Board changes
distribution of university funding
___By Ferrell Foster
___Texas Baptist Communications
___DALLAS--The formula for dividing funds among the eight universities affiliated with the Baptist General Convention of Texas was altered April 17 by vote of the BGCT's Christian Education Coordinating Board.
___The new approach makes a distinction between "primary" and "secondary" campuses, with credit hours taken at a school's primary site carrying more weight in the funding formula than those taken at secondary sites.
___A primary site is defined as the residential campus on which the main administrative offices of a university are located. Each school has only one primary site. All other campuses or teaching points are considered secondary.
___Based on current enrollment, East Texas Baptist University in Marshall would gain the most under the new formula, according to figures shown to coordinating board members. After a five-year phase-in, Baylor University and Wayland Baptist University would receive a smaller portion of funds.
___Several of the universities offer courses away from their primary locations. Wayland operates the most far-flung network of campuses. Its main location is in Plainview in West Texas, but it also has sites in San Antonio, Lubbock, New Mexico, Arizona, Alaska and Hawaii, among others.
___The funding change, which was approved without opposition, altered only the formula for determining how "pro rata instructional support" funds are divided among the eight universities. The BGCT's 2001 budget calls for $7.07 million in such money to go to the schools. That is part of $15.7 million in Cooperative Program funds budgeted for the universities this year. The other money is distributed in equal block grants and for ministerial tuition assistance.
___All primary site credit hours will continue to be funded at 100 percent, the approved recommendation states. During the next five years, "in-state secondary site" hours will gradually drop to 75 percent funding. Out-of-state secondary site hours will no longer be funded as of 2006. Also, credit hours taken over the Internet will not be counted, unless they are taken by a student on the primary campus.
___The coordinating board set up a university and academy funding study committee in the fall of 1999, and that committee recommended the funding formula changes approved by the full board April 17.
___Jerry Sawyer, a member of the study committee from El Paso, said the group met individually with the presidents of all eight universities. "This proposal reflects the majority of the opinions of our presidents," Sawyer said.
___The study committee proposal included an explanation for cutting funding of out-of-state and Internet credit hours. It said both changes were proposed solely for financial reasons and should not be construed as a judgment upon the value of the programs.
___The changes reflect a need for fairness and equity in the funding formula, said Keith Bruce, coordinator of the BGCT's institutional ministries section.
___Coordinating board members received a copy of a resolution passed by trustees of Wayland Baptist University that conveyed "deep and profound concern" regarding the proposed changes.
___Wallace Davis, Wayland's chancellor, told the board the loss of money was not his chief concern. Rather, he was more concerned about relationships with Baptist conventions in the states where Wayland has campuses, he said.
___Part of the approved recommendation suggested the CECB "seek to foster or bless relationships" with conventions in other states that "enjoy the benefit of Wayland's educational presence. Partnerships between Wayland and the various state conventions could prove to be mutually beneficial."
___Davis noted that if a young student from Alaska attended Wayland at the Plainview campus, his hours would be fully funded. But if he attends at the Alaska campus, there will be zero funding. That "seems to be a contradiction," Davis said.
___The recommendation approved by the coordinating board also increases block grant money going to "fully cooperative" schools supported by the BGCT.
___Seven universities now receive $600,000 in block grant funds each year. During the next five years, that figure would climb to $715,308 for each school if adequate funds are available. San Marcos Baptist Academy's block grant would rise to $286,123 from its current $240,000.
___Baylor University is budgeted to receive $3.8 million in BGCT funding this year but is the only BGCT-affiliated university not now receiving basic block grant money. That is because of a 1990 settlement after the school altered its method of electing trustees. The funding study committee considered reinstating those funds but recommended instead that the coordinating board "give further deliberation regarding its financial relationship" to Baylor. The full board approved that recommendation.
___A cover letter to the recommendation notes that for the 10 years since Baylor's change in its trustee-selection process, the university "has proven to be completely cooperative and helpful to the BGCT."
___Sawyer told the board Baylor has "done exactly what they were supposed to have done," but that Baylor had agreed to cut the block grant funds. "That's a big hurdle for us to get over," he said.
___Also, whatever is done with Baylor will affect relationships with the other universities, including Houston Baptist University, which is in the midst of negotiations with the BGCT regarding its relationship with the convention.
___The coordinating board's action also pointed to the need for a new definition of what it means for an institution to be cooperative, in light of the "current climate within the convention" and other "possible trustee agreements."
___An institution now is considered cooperative if all its trustees are selected by the convention through its Committee to Nominate Institutional Boards, if it provides financial and institutional reports to the BGCT and if the BGCT reviews any charter changes and debt agreements.
___The coordinating board also approved a five-year phased increase in ministerial tuition grants for college students. Ministerial students at the eight BGCT universities now receive $60 per credit hour. That would rise to $100 in 2006 if funds are available.

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