Pulaski Tech move needs legislative OK; Senate bill a must before UA merger

What's in a name?

For Pulaski Technical College, a name will determine its future. Because the 26-year-old school isn't a "community college" by name, its leaders will need legislative approval this session to become a part of the University of Arkansas System and change its governing panel of trustees to an advisory board of visitors.

A 2015 law -- Arkansas Code Annotated 6-61-520(e) -- lays out the rules for a merger of a community college with a four-year university or a university system: the university or university system's governing board will become that of the two-year college. But the law stopped short of doing the same for technical colleges, which have a different set of rules: Arkansas Code Annotated 6-53-302.

"We need this legislation to pass before the merger will go forward," said Ben Beaumont, the UA System's senior director of policy and public affairs, adding that Arkansas State University wanted legislation spelling out what would happen when it took in Mid-South Community College in 2015. "We looked at that as we were looking at our merger. Now that the language exists in state code and doesn't address technical colleges, and we thought it would be good to mirror that."

With proposed Senate Bill 10, technical colleges -- including Pulaski Tech -- have the endorsement of 21 state representatives and senators. UA System and Pulaski Tech trustees, along with the state's Higher Education Coordinating Board, approved the move last year.

The Legislature and Gov. Asa Hutchinson are the final stop in Arkansas before the decision goes to the Higher Learning Commission, a national accrediting body. The legislation comes with an emergency clause, making the merger effective on the day the governor gives his OK.

[EMAIL UPDATES: Get free breaking news alerts, daily newsletters with top headlines delivered to your inbox]

The governor has called on the state's higher education leaders to be more accountable and efficient in using their resources to help more students earn a certificate or higher, preparing them for the workforce of tomorrow and improving the state's economy.

Others, such as Rep. Mark Lowery, R-Maumelle, have pushed for further streamlining, consolidating the number of schools or bringing the independent colleges and universities into either the Arkansas State University or UA systems.

Colleges and universities across the nation have looked into mergers as their state funding has declined. For example, the University System of Georgia in its fifth round of mergers since 2012 approved on Wednesday the consolidation of four universities into two. The idea is that mergers cut down on administrative bloat and redirect savings to student support services and academic programs.

The need for legislative approval hasn't stopped Pulaski Tech leaders from gearing up to be the system's seventh two-year school.

Pulaski Tech employees have already gone through the open enrollment period for health insurance through the system's provider, United Medical Resources, an arm of UnitedHealthcare.

Nearly three of every four employees -- of the 371 eligible to participate -- have signed onto the new provider, and many switched to a basic plan because of increased in-network coverage, said Sherry Young, associate vice president for human resources and employee relations. Most employees are averaging about $30 a month in savings on insurance premiums, she said.

They have already taken care of vision and dental insurance, as well as a flexible spending account. And they're preparing for another open enrollment period, likely to run through the end of the month, for short- and long-term disability, accidental death or dismemberment and life insurance.

The college for the first time will offer -- and pay for -- short-term disability, following in the footsteps of the University of Arkansas at Fayetteville and the University of Arkansas for Medical Sciences, Young said. Previously, employees who earned at least $45,000 would sign up for that service through other providers, but those earning $30,000 or lower, or about 17 percent, did not because it wasn't affordable, she said.

Employees who are using other providers will be able to continue that coverage, but it will no longer be automatically deducted from paychecks, she said. And come February, when the latest enrollment period ends, employees will have 12 weeks at 60 percent of their salary at no cost.

"That is going to be a huge thing for our lower-level employees because most of the people that we have on the lower pay scales are also our younger folks and they never have any leave because they've got kids at home," she said. "And short-term disability takes effect after they've used all of their sick and vacation time. ... So this will be a huge benefit to our employees."

Currently, Pulaski Tech lumps life insurance and accidental death and dismemberment together in a $20,000-coverage package. Under the system, the college will pick up the tab for basic life insurance, while employees will pay for accidental death and dismemberment, she said. Long-term disability coverage will also change from whatever the employee's annual salary is to $20,000. Employees will be responsible for further coverage.

College administrators have also received permission to offer their version of early retirement throughout 2017. Unlike its last go-round a year ago, the college will not offer a cash incentive but will pay for insurance premiums from ages 60 to 65, when the former employee is eligible for Medicare. About 50 people are eligible for early retirement, Young said, but she has only received inquiries from a handful.

After this year, the college will move to the UA System's early retirement policy, which lowers the minimum age to 55 and requires 15 years of continuous service. College President Margaret Ellibee said Pulaski Tech and the system have been working to align all policies with the system's, work that will continue throughout the spring.

The merger has also led Pulaski Tech to pursue more academic options, including receiving three two-year programs from UAMS. Those include paramedic, emergency medical technician and surgical technology fields.

And in November, the Pulaski Technical College Foundation board voted unanimously to join the University of Arkansas Foundation, which will take effect July 1 if the legislation passes, said Shannon Boshears, the executive director of the college's foundation and the school's new vice president of advancement.

"They will act as our wealth managers, so our finances will transfer to them, and they will invest all of our finances in their portfolio, which allows us to have gains that we would never be able to afford being on the size we are now," Boshears said. "But not only that, but the resources they provide for us, things like plan-giving, counsel, just things that we've never been able to have before ... are going to be huge for us."

The UA Foundation has a $2 billion portfolio, she said, adding that Pulaski Tech has $1.9 million in assets.

The college has also been working to kick-start its Alumni Association, another move that will be helped along by joining the UA System, she said.

"But you know, the Alumni Association, us being part of the U of A system, that's huge for the school, for the foundation," she said. "Now when people graduate from here, they'll get a degree from the U of A. And that's going to put us in a whole different universe. That'll mean a lot for a lot of people."

Metro on 01/17/2017

Upcoming Events