>> LOOKING AT TODAY'S AGENDA, DOES ANYONE HAVE A CONFLICT OF INTEREST OR INTEREST THAT WOULD APPEAR AS A CONFLICT OF INTEREST UNDER THE STATE ETHIC'S ACT?

IF SO, PLEASE LET ME KNOW NOW.

>> MADAME CHAIRMAN, PURSUANT TO THE UNC POLICY SECTION 200.7, I AM RECUSING FROM THE VOTE ON ITEM 5A ON TODAY'S AGENDA.

>> THANK YOU, GOVERNOR COWARD.

YOU ARE RECUSED AND NOTED.

I'LL NOW CALL ON PRESIDENT HANS FOR HIS REPORT.

PRESIDENT HANS?

>> PRESIDENT HANS: THANK YOU, MADAM CHAIR.

HIGHER EDUCATION DEPENDS ON TRUST.

WE ASK STUDENTS AND FAMILIES TO TAKE AN ENORMOUS LEAP OF FAITH WHEN THEY DECIDE TO PURSUE A COLLEGE DEGREE.

WE HAVE A RESPONSIBILITY TO MEET THEIR COMMITMENT IN GOOD FAITH.

I HAVE SPOKEN BEFORE ABOUT A PUBLIC INTEREST STANDARD FOR OUR INSTITUTIONS AND PROGRAMS, A PROMISE THAT ANY STUDENT WHO PUTS IN THE TIME AND WORK SHOULD EMERGE BETTER OFF FOR THE EXPERIENCE.

IT'S TIME FOR HIGHER EDUCATION TO HAVE AN ACCREDITATION OPTION THAT'S EQUALLY COMMITTED TO THE PUBLIC INTEREST.

AN ACCREDITOR PURPOSE BUILT FOR ASSESSING AND IMPROVING THE PUBLIC INSTITUTIONS THAT ARE THE WORKHORSES OF AMERICAN HIGHER EDUCATION.

ITS TIME FOR AN ACCREDITOR LASER-FOCUSED ON STUDENT OUTCOMES.

WE ARE WORKING ALONGSIDE OUR PEERS AND PARTNERS IN OTHER WELL-REGARDED PUBLIC UNIVERSITY SYSTEMS TO BUILD THE COMMISSION FOR PUBLIC HIGHER EDUCATION.

THIS NEW ACCREDITOR WILL WORK EXCLUSIVELY WITH PUBLIC UNIVERSITIES THAT WANT TO GET BACK TO THE APPROACH ORIGINALLY OUTLINED IN THE 1965 HIGHER EDUCATION ACT.

THAT'S WHERE THE MODERN ACCREDITATION PROCESS ORIGINATED, AS A GATE KEEPER FOR ENSURING THAT FEDERAL FINANCIAL AID FUNDS WENT TO INSTITUTIONS THAT FOCUSED ON STUDENT OUTCOMES.

UNFORTUNATELY, THIS HAS EVOLVED TO BECOME A BURDENSOME STAMP WELL BEYOND BOUNDARIES, DEMANDING AN INVASIVE AND COSTLY AMOUNT OF ADMINISTRATIVE COMPLIANCE DOCUMENTATION WHILE FAILING TO PROVIDE A MEANINGFUL CHECK ON INSTITUTIONS NOT SERVING STUDENTS WELL.

THE ANNUAL COST TO THE UNC SYSTEM VARIES FROM YEAR-TO-YEAR BECAUSE OF THE CYCLES, BUT IT IS WELL INTO THE MILLIONS OF DOLLARS.

THIS IS PARTICULARLY HARD ON OUR SMALLER, LESS RESOURCED UNIVERSITIES.

THERE IS LITTLE COMMON SENSE IN HAVING OUR UNIVERSITIES ACCREDITED BY THE ORGANIZATIONS THAT OVERSEE FOR PROFIT INSTITUTIONS OR PRIVATE COLLEGES WHO DON'T HAVE THE LAYERS OF PUBLIC ACCOUNTABILITY.

WE ALREADY HAVE MULTIPLE LAYERS, MANY MULTIPLE LAYERS, STATE AUDITORS, BUDGET OFFICE, CONTROLLER -- I CAN CONTINUE THROUGH THE ALPHABET.

THERE IS LITTLE COMMON SENSE IN A DISTANT COMMITTEE ATTEMPTING A FORENSIC FINANCIAL ANALYSIS OF PUBLIC UNIVERSITIES INDEPENDENTLY AND TRANSPARENTLY MONITORED BY MULTIPLE PUBLIC AGENCIES AS WE ARE.

THERE IS LITTLE COMMON SENSE IN HAVING CLOSED DOOR COMMITTEES, IMPOSED REQUIREMENTS THAT ARE LITTLE RELATION TO THE PUBLIC MISSION AND ACADEMIC PRIORITIES OF OUR UNIVERSITIES.

SO, RESTORING THE NOTION OF TRUE PEER REVIEW, PUBLIC INSTITUTIONS ASSESSED BY THEIR TRUE PEERS IN MISSION AND STRUCTURE.

I SUPPORT AIM OF THIS MISSION.

THE COMMISSION OF HIGHER EDUCATION IS AN INDEPENDENT BODYLIKE EXISTING CREDITORS DRIVEN BY PEOPLE WHO UNDERSTAND PUBLIC INSTITUTIONS, ARE FAMILIAR WITH THE MISSION AND OBLIGATIONS OF STATE UNIVERSITIES AND HAVE THE EXPERTISE TO OFFER INSIGHT TO DRIVE IMPROVEMENTS.

IT WILL PROMOTE HIGH ACADEMIC STANDARDS TO MEET THE PUBLIC INTEREST FOR OUR STUDENTS.

HERE'S A LITTLE OF WHAT I HOPE A NEW APPROACH TO ACCREDITATION WILL ACCOMPLISH.

FIRST, A SHARP FOCUS ON QUALITY AND OUTCOMES.

THE THINGS THAT MATTER TO STUDENTS, AND THE PEOPLE WE SERVE.

LESS TIME CATALOGING INPUT, MORE TIME MEASURING RESULTS.

SECOND, A MUCH-NEEDED TRANSPARENCY IN PROCESS AND INFORMATION SHARING.

THE COMMISSION ON PUBLIC HIGHER EDUCATION WILL BE MUCH MORE OPEN AND EAGER TO SHARE INSIGHTS AND BEST PRACTICES SO MEMBER INSTI INSTITUTIONS CAN IMPROVE TOGETHER.

THIRD, AND PERHAPS MOST IMPORTANTLY, A MORE STREAMLINED PROCESS THAT DOESN'T REQUIRE THOUSANDS OF HOURS, MILLIONS OF DOLLARS AND DUPLICATED DOLLARS FROM INSTITUTIONS THAT DON'T HAVE ENDLESS RESOURCES, REDUCING THE COMPLIANCE BURDEN ON THE SMALLER CAMPUSES IS A MAJOR DRIVER OF THE EFFORT FOR ME, AND SHOULD ALLOW FOR THESE PUBLIC SYSTEMS TO REINVEST IN THE ACADEMIC CORE.

SO, TWO YEARS AGO, THE STATE LEGISLATURE HERE IN NORTH CAROLINA MANDATED THAT OUR UNIVERSITIES CHANGE ACCREDIT ORS.

THIS IS PARS PARSE PARTIALLY IN RESPONSE TO THAT.

WE'LL MOVE THROUGH THE FEDERAL LEVEL FOR CREATING IN THE FEDERAL GOVERNMENT RECOGNIZING, A CREDITOR.

OUR PARTNERS HAVE PLEDGE TODAY THE EFFORT AND WE'LL COMMIT ROUGHLY A QUARTER MILLION DOLLARS A YEAR IN STAFF TIME.

PRIMARILY FROM DETAILING OUR OWN VP OF REGULATORY AFFAIRS, DAN HARRISON TO HELP LEAD THIS PROJECT UNTIL THE COMMISSION IS FULLY SUPPORTED BY MEMBER INSTITUTIONS.

A COPY OF THE BUSINESS PLAN WAS INCLUDED IN YOUR BOARD MATERIALS, AND THERE WILL BE FULL UPDATES TO FOLLOW IN THE COMING MONTHS AND YEARS.

HIGHER EDUCATION IS GOING TO FACE SOME ENORMOUS CHALLENGES IN THE YEARS TO COME.

WITH PUBLIC INSTITUTIONS ESPECIALLY CALLED TO ADDRESS SHIFTING DEMOGRAPHICS WE HAVE DISCUSSED, DEEP DISRUPTIONS IN THE WORLD OF WORK AND LEARNING, AND THE NEED TO MAINTAIN TRUST WITH A SKEPTICAL PUBLIC.

WE NEED AN ACCREDITOR THAT UNDERSTANDS THOSE CHALLENGES AND IS READY TO WORK WITH US IN MEETING THEM.

I'M EXCITED TO HELP BUILD ONE.

THIS IS WHAT REFORM -- NATIONAL REFORM OF HIGHER EDUCATION LOOKS LIKE.

MADAM CHAIR, THANK YOU.

>> THANK YOU, PRESIDENT HANS.

THAT'S CERTAINLY BEEN A TOPIC SINCE I CAME ON THE BOARD IN 2017.

EXCITED TO HEAR MORE ABOUT IT AND SEE IT COME INTO FRUITION.

THANK YOU.

>> PRESIDENT HANS: THANK YOU.

>> CHAIR: WE'LL NOW CONSIDER CONSENT ITEMS LISTED AS ITEM FOUR ON TODAY'S AGENDA.

ARE THERE ANY ITEMS THE BOARD WISHES TO REMOVE FOR DISCUSSION?

IF NOT, I'LL ENTERTAIN THE MOTION TO APPROVE THE ACTION ITEMS BY CONSENT.

>> SO MOVED.

>> SECOND.

>> CHAIR: WE HAVE A MOTION AND A SECOND.

THERE ARE SO MANY PEOPLE ON THE SCREEN, I CAN'T SEE -- MEREDITH, DID YOU GET IT?

OKAY.

ANY FURTHER DISCUSSION?

ALL IN FAVOR INDICATE BY SAYING AYE.

>> AYE.

>> CHAIR: ANY OPPOSED?

MOTION CARRIES.

OKAY, NOW, GOVERNOR BRADLEY WILL GIVE THE REPORT OF THE COMMITTEE ON BUDGET AND FINANCE.

>> GOVERNOR BRADLEY: CHAIR MURPHY AND MEMBERS OF THE BOARD OF GOVERNORS, DURING THE REGULAR MEETING THIS MORNING THE COMMITTEE ON BUDGET AND FINANCE RECEIVED PRESENTATIONS ON THE FUND BUDGET FISCAL YEAR 2026 ALL FUNDS BUDGET.

THE FULL DETAILS OF THE PRESENTATIONS ARE V AVAILABLE ONBOARD EFFECT FOR INFORMATION ONLY.

APPROVED 1,000.2.3 OF THE UNC POLICY MANUAL, TUITION DISCOUNTS ON MILITARY SPONSORED STUDENTS.

UNC TUITION DISCOUNTS FOR CERTAIN STUDENTS.

THIS AUTHORIZES THE BOARD OF GOVERNOR TO ALLOW CONSTITUENTS IN THEIR DISCRETION TO APPROVE DISCOUNTED TUITION FOR MILITARY QUALIFIED STUDENTS AND FINANCIAL SUPPORT PROGRAMS.

THIS ITEM WILL BE VOTED ON BY THE FULL BOARD AT THE CONSENT AGENDA IN THE NEXT MEETING.

NEXT THE COMMITTEE APPROVED THE FISCAL YEAR 25-26 ALLOCATIONS OUTLINED IN BOARD EFFECT.

THE STRATEGIC MOVES SUPPORTS A SYSTEM MISSION TO DELIVER A HIGH-QUALITY EDUCATION ACROSS NORTH CAROLINA.

THE LAST TWO ITEMS ON THE CONSENT AGENDA MOMENTS AGO.

FINALLY, FOUR TRANSACTIONAL ITEMS ALSO INCLUDED ON THE CONSENT AGENDA THE BOARD APPROVED.

AUTHORIZE BY DEED FOR NT STATE UNIVERSITY.

ACQUISITION OF PROPERTY BY DEED FOR NC STATE UNIVERSITY AND AUTHORIZATION FOR DISPOSITION OF PROPERTY BY DEMOLITION FOR UNC CHAPEL HILL.

FINALLY, THE COMMITTEE APPROVED THE DISPOSITION OF PROPERTY FOR UNC ASHEVILLE TO THE ENDOWMENT FUND TO BE APPROVED AND AUTHORIZED TO ENTER NEGOTIATIONS FOR THE DEVELOPER FOR THE MY LINEAL CAMPUS PROJECT TO BE PRESENTED TO THE BOARD OF GOVERNORS FOR FINAL EXECUTION.

I MOVE THAT THE BOARD OF GOVERNORS APPROVE THE DISPOSITION OF PROPERTY LEASE FOR UNC NASHVILLE.

>> CHAIR: I WANT TO THANK CHAIR BRADLEY.

HE HAS PUT A LOT OF PERSON TIME INTO THE PROJECT WORKING WITH ALL PARTIES INVOLVED.

I WANT TO THANK MISS HAYGOOD AND CHANCELLOR NORTH.

A LOT OF MEMBERS WEIGHED IN.

WE HAVE HAD TWO SESSIONS ON THIS.

WE HAVE MORE QUESTIONS TO GET, BUT WE'LL FOCUS ON WHAT'S BEST FOR UNC NASHVILLE NOW AND INTO THE FUTURE.

WITH THAT, FURTHER DEBATE?

ALL IN FAVOR INDICATE BY SAYING AYE.

>> AYE.

ANY OPPOSED?

>> YES.

I OPPOSE.

>> CHAIR: THANK YOU.

MEREDITH, ARE WE GOOD?

I THINK THE MOTION CARRIES?

OKAY.

GOVERNOR MITCHELL, WOULD YOU PLEASE PROVIDE THE REPORT ON GOVERNANCE.

>> GOVERNOR MURPHY.

TODAY WE MADE SEVERAL APPOINTMENTS, FIRST TO REAPPOINT CARLTON TO THE PRESS BOARD OF GOVERNORS, FIVE YEAR TERM JULY 1, 2025, ENDING JUNE 30, 2030.

INFORMATION IS IN YOUR MATERIALS.

ON BEHALF OF THE COMMITTEE, I MOVE TO REAPPOINT FOR DURHAM U.S. BOARD OF GOVERNORS FOR A FIVE YEAR TERM.

>> CHAIR: MEMBERS OF THE BOARD, YOU HAVE HEARD THE MOTION.

IS THERE ANY FURTHER DISCUSSION?

ALL IN FAVOR INDICATE BY SAYING AYE.

>> AYE.

>> OPPOSED?

MOTION CARRIES.

>> THE COMMITTEE VOTED FOR SARAH TO FILL A PARTIAL TERM, ENDING 2027.

INFORMATION IS INCLUDED IN THE MATERIAL.

ON BEHALF OF UNIVERSITY GOVERNANCE, I MOVE TO APPROVE THE NOMINATION OF SARAH FOR THE PARTIAL TERM VACANCY ON THE PROJECT KITTY HAWK BOARD OF DIRECTORS.

>> CHAIR: YOU HAVE HEARD THE MOTION.

PLEASE INDICATE BY SAYING AYE.

OPPOSED?

MOTION CARRIES.

>> THE BUILDING COMMISSION HAS A VACANCY.

THE COMMITTEE NOMINATED TO BRING BEFORE THE BOARD, TRIPP FOR A THREE YEAR TERM JULY 1, 2025, ENDING JUNE 30, 2028.

INFORMATION IS INCLUDED IN YOUR MATERIALS.

ON BEHALF OF THE COMMITTEE, I MOVE TO APPROVE THE NOMINATION, STATE BUILDING COMMISSION AND SEND IT TO THE GOVERNOR FOR APPOINTMENT.

>> MEMBERS OF THE BOARD, YOU HAVE HEARD THE MOTION.

ANY FURTHER DISCUSSION?

ALL IN FAVOR INDICATE BY SAYING AYE.

>>> AYE.

>> OPPOSED?

MOTION CARRIES.

>> LASTLY, THE COMMITTEE NOMINATED TWO NO, MA'AM KNITS NOMINEES FOR BOARD OF DIRECTORS.

A PARTIAL TERM VACANCY SEAT 15, OCTOBER 2028, SEAT 19, ENDING OCTOBER 31, 2026.

BIOGRAPHICAL INFORMATION IS IN THE MATERIAL.

ON BEHALF OF THE UNIVERSITY GOVERNANCE, I MOVE TO APPROVE THE NOMINATION OF DONNA TO FILL SEAT 15 AND KRISTEN BAKER, SEAT 19 ON THE UNC HEALTHCARE BOARD OF DIRECTORS.

>> CHAIR: MEMBERS OF THE BOARD, YOU HAVE HEARD THE MOTION.

FURTHER DISCUSSION?

ALL IN FAVOR SAY AYE.

>> AYE.

OPPOSED?

OKAY.

MOTION CARRIES.

>> GOVERNOR MITCHELL.

THIS CONCLUDES MY REMARKS.

>> CHAIR: BEFORE CLOSED SESSION I WANT TO RECOGNIZE THOMAS WHO WORKED IN THE SECRETARY'S OFFICE WITH THE BOARD SINCE 2022.

TODAY IS HIS LAST BOARD MEETING WITH US AS A TEAM MEMBER OF THE SECRETARY'S OFFICE.

THOMAS WILL BE JOINING DAN HARRISON AS THEY LAUNCH THE NEWLY FOUNDED ACCREDITING ENTITY COMMISSION FOR PUBLIC EDUCATION AND YOU HEARD PRESIDENT HANS SPEAK ABOUT THAT IN THE REPORT TODAY.

THANK YOU FOR THE WORK YOU HAVE DONE.

WE ARE NOT AN EASY GROUP TO PLEASE.

YOU HAVE KEPT US ORGANIZED AND MOVING FORWARD.

WE APPRECIATE YOUR DEDICATION, TIME AND EFFORT OVER THE LAST THREE YEARS.

I DON'T SEE TOM.

I GUESS HE'S IN THE ROOM?

ANYWAY, GOOD LUCK TO THOMAS AND DAN ON THE IMPORTANT PROJECT AHEAD AND WE LOOK FORWARD TO HEAR MORE ABOUT THE CREATION OF THE NEW ACCREDITATION.

SO, WITH THAT, I WILL -- I'M GOING TO MOVE THAT WE GO INTO CLOSED SESSION UNDER GENERAL STATUTE 143 AS PROVIDED IN THE WRITTEN MOTION.

MAY I HAVE A SECOND?

>> SECOND.

>> CHAIR: ANY DISCUSSION OR DEBATE?

ALL IN FAVOR PLEASE SAY AYE.

>> AYE.

>> OPPOSED?

OKAY.

MEREDITH, LET US KNOW WHEN WE CAN CONTINUE.

>> MEREDITH: YES, MA'AM, I WILL.

>> CHAIR: I'LL >> MR. CHAIRMAN, YOU MAY CONTINUE IN OPEN SESSION.

>> CHAIR: THANK YOU, MEREDITH.

THE BUSINESS TODAY IS CONCLUDED.

BEFORE WE ADJOURN I HAVE HOUSEKEEPING ITEMS FOR YOU.

FALL IS GOING TO BE BUSY WITH CHANCELLOR INSTALLATION CEREMONIES.

MEREDITH AND HER TEAM WILL FOLLOW UP WITH EACH BOARD DIRECTLY PROVIDING DETAILS OF THE CEREMONIES AND LOGISTICS OF ATTENDING.

I HOPE TO HAVE GOOD PARTICIPATION AT EACH OF THESE.

I'LL MENTION IF YOU ATTEND IN THE FALL, WE'LL THROW IN A FOOTBALL GAME.

I BELIEVE IT COINCIDES WITH THE WEEKEND.

THAT WILL BE A LOT OF FUN.

SECOND, GOVERNOR CHAT JI, BEGINNING APRIL 15-16 IN THE SPRING, WE'LL HAVE ON CAMPUS BOARD MEETINGS, WHICH YOU HAVE BEEN ASKING FOR, SO CHANCELLOR ROBERTS HAS AGREED TO HOST THE BOARD AT THE SCHOOL OF MATH AND SCIENCES MORGANTON CAMPUS.

WE'LL TAKE THE SHOW ON THE ROAD AGAIN, AND YOU ALL CAN LOOK FORWARD TO THAT MEETING IN APRIL.

I'M EXCITED TO SEE THE NEW CAMPUS.

THE NEXT REGULARLY SCHEDULED MEETING OF THE BOARD OF GOVERNOR, THURSDAY, SEPTEMBER 28TH AT THE SYSTEM OFFICE IN RALEIGH.

WITH THAT, WE STAND ADJOURNED.

I HOPE YOU ALL HAVE A GREAT REST OF THE SUMMER.

>> MADAM CHAIR, I'M HAPPY TO HEAR THAT.

>> CHAIR: I KNEW YOU WOULD BE.

>> I HAVE BEEN SAYING IT FOR THE LAST TWO YEARS.

YOU KNOW THAT.

>> CHAIR: I DO LISTEN TO YOU.

>> THANK YOU.

>> THANK YOU, MADAM CHAIR.