>> GOOD MORNING, EVERYONE.

>> GOOD MORNING, MRS.

MURPHY.

I WOULD LIKE TO WELCOME KITEY MCNEIL TO THE OFFICE OF THE SECRETARY.

WE LOOK FORWARD TO WORKING WITH YOU.

BEFORE WE BEGIN THIS MORNING, I WOULD LIKE TO TAKE A MOMENT OF PERSONAL PRIVILEGE.

LAST WEEK'S ASSASSINATION ON A COLLEGE CAMPUS HIT CLOSE TO HOME FOR MANY IF NOT ALL OF US IN THIS ROOM.

A BEAUTIFUL, SUNNY DAY, STUDENTS GATHERED IDEAS TO BE SHARED.

A RECIPE FOR WHAT WE ALL VALUE -- FREEDOM TO GATHER AND HAVE A CONVERSATION.

BUT HOW QUICKLY THINGS CHANGED.

MAKE NO MISTAKE, THIS IS OUR WAKE UP CALL.

FOR EACH OF US AS LEADERS, EDUCATORS AND POLICYMAKERS, TO START THINKING ABOUT THE IMPACT OF OUR ACTIONS, AND ABOUT OUR INTERACTIONS WITH THOSE WHO DISAGREE WITH OUR POINT OF VIEW.

WE HAVE A RESPONSIBILITY TO BE LEADERS FOR GENERATIONS TO COME, A RESPONSIBILITY TO SET THE EXAMPLE OF HOW TO ACT AND LIFE, AND A RESPONSIBILITY TO SET THE TONE TO ENSURE WE CONTINUE TO BE A COUNTRY THAT TRULY VALUES FREEDOM OF SPEECH.

HATRED AND ATTACKS ARE NOT THE ANSWER.

IF WE VALUE LIVING IN A PLACE OPPOSING IDEAS ARE EXPRESSED AND DIFFERING VIEWS ARE WELCOME, WE MUST MODEL THE CIVIL, RESPECTFUL AND PEACEFUL SOCIETY THAT WE WANT FOR OUR CHILDREN.

ONE OF MY FAVORITE BIBLE VERSES IS LUKE 12:48.

YOU HAVE HEARD ME QUOTE IT BEFORE, AND IT IS EVEN MORE APPROPRIATE TODAY.

TO WHOM MUCH IS GIVEN, MUCH IS REQUIRED.

LET US TAKE THIS TO HEART AND CONTINUE TO DO WHAT WE CAN TO ENSURE THAT OUR COLLEGE CAMPUSES, OUR COMMUNITIES, AND OUR CLASSROOMS ARE A SAFE PLACE WHERE EVERYONE CAN GATHER TO SHARE WITHOUT PREJUDICE OR FEAR.

WE CAN ALL DO BETTER.

NOW, I'LL CALL ON GOVERNOR GREELEY TO DELIVER THE INVOCATION.

>> MAY WE BOW OUR HEADS.

DEAR LORD, WE THANK YOU FOR THIS GREAT UNIVERSITY SYSTEM AND FOR THE OPPORTUNITY FOR EACH OF US TO SERVE AND CONTRIBUTED TO ITS CONTINUED SUCCESS.

AS ANOTHER ACADEMIC YEAR DAWNS, WE ASK THAT YOU BLESS EACH OF THE CHANCELLORS AND THEIR FACULTY AND STAFF WITH GUIDANCE, OPPORTUNITIES FOR GROWTH, AND A RENEWED SENSE OF PUPS.

WE ASK OUR SYSTEM PRESIDENT AND EMPLOYEES AND BOARD ARE INSPIRED TO MAKE DECISIONS TO ENRICH THE LIVES OF ALL OF THOSE WE SERVE.

WE PRAY FOR EACH STUDENT WE SERVE TO BE PROTECTED FROM VIOLENCE, AND TO BE BLESSED WITH SKILL AND KNOWLEDGE AND VALUES THAT WILL ENABLE THEM TO BUILD A BETTER LIFE FOR THEMSELVES AND A BETTER WORLD.

WE ASK FOR SAFETY FOR EACH -- ALL MEMBERS OF EACH CAMPUS AND THE SYSTEM AND FOR YOU TO DIVINELY GUIDE US TO PROVIDE MEANINGFUL SERVICES FOR ALL OF THOSE SUFFERING FROM MENTAL HEALTH ISSUES.

WE THANK YOU FOR EACH OF THOSE WHO WORKD WORK DAILY IN THREATS AND ASK YOUR PROTECTION FOR THEM.

GRANT US WISDOM AND STRENGTH TODAY AND EVERYDAY TO ACCOMPLISH ALL THAT IS OURS TO DO.

PLEASE JOIN ME FOR A MOMENT OF SILENT PRAYER FOR THE FAMILY AND FRIENDS OF CHARLIE KIRK.

MAY HIS LEGACY BE A TESTAMENT TO OUR LORD JESUS CHRIST AND TO THE PRACTICE OF CIVIL DEBATE.

AMEN.

>> THANK YOU.

SECRETARY BURRIS-FLOYD, WILL YOU PLEASE CALL THE ROLL?

>> YES.

GOOD MORNING EVERYONE.

CHAIR MURPHY?

>> HERE.

>> VICE-CHAIR BLEW?

BLUE?

>> HERE.

>> DR.

BARNS?

>> HERE.

>> MR.

BRADLEY.

>> HERE.

>> MR.

BROWN?

>> MR.

BYERS, MR.

CHATTER GY?

MR.

CLARK?

MRS.

COWARD.

>> HERE.

>> MR.

DAVIS?

>> HERE.

>> MR.

FORD.

>> MR.

FRALEY.

>> HERE.

MRS.

GREELEY.

>> HERE.

>> MR.

HOLLY.

>> GOOD MORNING, MADAM SECRETARY.

>> GOOD MORNING.

MR.

HOLTON?

>> MR.

CHAIRMAN HUTCHENS.

MR.LY MONEY.

MR.

LIMON.

>> MRS.

NICKELS.

>> MR.

POPE.

>> MR.

RAMSEY.

>> MR.

WHITE, AND MR.

WILLIFORD.

MADAM CHAIR, YOU HAVE A QUORUM.

>> THANK YOU.

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

IF SO, PLEASE LET ME KNOW NOW.

OKAY, I HOPE EVERYONE HAS HAD A GREAT SUMMER AND THAT YOU ARE RETURNING FULL OF ENERGY FOR THE IMPORTANT WORK AHEAD.

WE ARE BEGINNING THE ACADEMIC YEAR WELL WITH TOTAL IN STATE AND OUT OF STATE ENROLLMENT, 3.4% SYSTEM WIDE.

THIS IS A STRONG SIGN THAT FAMILIES ACROSS NORTH CAROLINA AND THE NATION CONTINUE TO SEE EDUCATIONAL VALUE AND OPPORTUNITY IN OUR INSTITUTIONS.

THAT'S BECAUSE WE HAVE DELIVERED ON OUR PROMISE OF AFFORDABILITY, FREEZING RESIDENT UNDERGRADUATE TUITION FOR NINE YEARS.

THAT'S A RECORD TO BE PROUD OF.

I APPRECIATE THE CHANCELLORS FOR HOLDING STEADY TWO DECADES.

GENEROUS STATE FUNDING HAS ALLOWED US TO KEEP TUITION LOW AND WE ARE GRATEFUL FOR THE LEADERS IN THE NORTH CAROLINA LEGISLATURE.

EVEN SO, WE ARE IN AN ERA OF FINANCIAL UNCERTAINTY.

INFLATION HAS DRIVEN UP THE COST AT INSTITUTIONS.

UNIVERSITIES HAVE ABSORBED THE PRESSURES, WHILE HOLDING THE LINE ON TUITION, BUT WE CAN'T EXPECT THEM TO CONTINUE DOING SO WITHOUT NEGATIVE IMPACTS.

AT THE SAME TIME, POTENTIAL BUDGET CHANGES MEAN WE MUST STRENGTHEN FINANCIAL POSITIONS AT THE CAMPUS LEVEL.

THAT IS WHY AFTER CAREFUL CONSIDERATION, THE BOARD WILL ALLOW OUR UNIVERSITIES TO PROPOSE MODEST TUITION INCREASES UP TO 3% FOR RESIDENT UNDERGRADUATES.

LET ME BE CLEAR, THIS DOESN'T CHANGE OUR EXISTING POLICIES AROUND COLLEGE AFFORDABILITY.

WE HAVE GUARANTEED STUDENTS IF THEY GRADUATE IN FOUR YEARS, THEIR TUITION WILL NOT RISE.

WE HAVE CAPPED INCREASES AT 3%.

WE HAVE REFINED HOW WE APPROVE DEGREE PROGRAMS, TEACHING WORKLOADS TO MAKE SURE STUDENTS CAN EARN THE CREDITS THEY NEED TO GRADUATE ON TIME AND WITH LESS DEBT.

AND THE RESULTS ARE CLEAR.

NORTH CAROLINIANS ARE GETTING MORE VALUE FOR THEIR INVESTMENT AT OUR INSTITUTIONS THAN ANYWHERE ELSE IN THE COUNTRY.

THE FIXED TUITION GUARANTEE WILL REMAIN IN PLACE FOR OUR STUDENTS.

INCREASES IN RESIDENT TUITION WILL ONLY APPLY TO NEW STUDENTS WHO ENROLL IN THE FALL OF 2026.

STUDENT FEES REMAIN CAPPED.

WE OWE IT TO OUR STUDENTS.

I HAVE BEEN PASSIONATE ABOUT THIS GOING BACK TO TRUSTEE DAYS AT UNCW.

I FEEL STRONGER FEE INCREASES SHOULD BE KEPT TO A MINIMUM.

EVERY REQUEST WILL UNDERGO CAREFUL REVIEW ACCORDING TO THE BOARD'S FEE REVIEW CRITERIA.

ADDITIONALLY, SPECIAL FEES MAY BE CONSIDERED BUT ONLY TO COVER INFLATIONARY COSTS FOR PROGRAMS OR TO PAY FOR NEW PROGRAMS APPROVED BY THIS BOARD.

FINALLY, UMC PEMBROKE AND NORTH CAROLINA WILL CONTINUE TO REDUCE RATES SET BY THE LEGISLATURE.

TUITION FOR NORTH CAROLINA STUDENTS WILL REMAIN AMONG THE LOWEST IN THE NATION AND WELL BELOW MOST OF OUR PEER INSTITUTIONS.

I WANT TO BE CLEAR ABOUT THE PROCESS GOING FORWARD.

THIS IS NOT AN AUTOMATIC TUITION INCREASE.

CAMPUSES DEVELOP PROPOSALS WITH INPUT AND BOARD TRUSTEES MUST APPROVE BEFORE COMING TO REVIEW FEBRUARY 2026.

BEFORE TAKING A VOTE, THE BOARD WILL SCRUTINIZE EVERY REQUEST TO ENSURE IT'S NECESSARY, JUSTIFIED AND CONSISTENT.

FOR MUCH OF THE HISTORY, THE DEBATE WAS NOT IF TUITION WOULD GO UP, BUT BY HOW MUCH.

THIS BOARD WORKING WITH OUR PRESIDENT AND CHANCELLORS CHANGED THE DYNAMIC.

WE FROZE TUITION FOR NEARLY A DECADE AND CREATED A BASELINE OF AFFORDABILITY FOR NORTH CAROLINIANS.

GOING FORWARD, WE'LL BE EQUALLY JUDICIOUS.

WE SIMPLY ACKNOWLEDGED THE RISING COSTS AND NEED TO PROTECT OUR INSTITUTION, QUALITY OF INSTRUCTION AND ENSURE STUDENT SUCCESS.

THIS IS ABOUT BALANCE, ABOUT STRENGTHENING OUR UNIVERSITIES WHILE KEEPING OPPORTUNITY WITHIN REACH FOR THE PEOPLE OF OUR STATE.

THAT HAS ALWAYS BEEN THE MISSION OF THE SYSTEM, AND WITH CAREFUL STEWARDSHIP, IT WILL REMAIN SO FOR GENERATIONS TO COME.

THANK YOU.

THAT CONCLUDES MY REMARKS.

I'LL CALL ON PRESIDENT HANS FOR HIS REPORT.

>> PRESIDENT HANS: THANK YOU, MADAM CHAIR.

LIKE A FEW OF YOU IN THIS ROOM, I'M OLD ENOUGH TO REMEMBER THE EXCITEMENT, TREPIDATION AND NERVOUS UNCERTAINTY THAT ACCOMPANIED THE INTERNET EXPLOSION INTO PUBLIC LIFE 30 YEARS AGO.

THE INCREDIBLY RAPID ADOPTION OF ARTIFICIAL INTELLIGENCE TOOLS HAS CREATED A SIMILAR MOMENT FOR HIGHER EDUCATION.

NOW THAT NEARLY EVERY STUDENT IN AMERICA HAS ACCESS TO AI MODELS THAT CAN HOLD A CONVERSATION, PRODUCE A CREDIBLE ESSAY, PASS THE BAR EXAM, AND VAST QUANTITIES OF DATA FOR INSIGHT, WE ARE FACED WITH FUNDAMENTAL QUESTIONS ABOUT WHAT IT MEANS FOR THE WORK OF HIGHER EDUCATION.

THIS GOES FAR BEYOND CONCERNS ABOUT HOW YOU GUARD THE INTEGRITY OF STUDENT WORK, IMPORTANT AS THAT IS, AND GETS RIGHT TO THE HEART OF WHAT SKILLS AND MENTAL DISCIPLINES WE WANT OUR STUDENTS TO HAVE.

WHAT FORMS OF INFORMATION AND KNOWLEDGE WE EXPECT OUR SCHOLARS TO CREATE, AND HOW WE MANAGE AS AN ENTERPRISE THE RISKS AND POSSIBILITIES OF A MORE AUTOMATED WORLD.

I'M NOT GOING TO SIT HERE TODAY AND MAKE CONFIDENT PREDICTIONS ABOUT HOW ALL OF THIS IS GOING TO PLAY OUT.

MUCH OF THE EARLY PROGNOSTICATING ABOUT THE INTERNET HAS NOT AGED WELL.

THE BRIGHT EYED FUTURISTS THAT BROUGHT IT WOULD USHER TO THE END OF HISTORY PARADISE WERE WRONG.

THE PESSIMISTS THAT THOUGHT IT WOULD BE A DEATH BLOW TO UNIVERSITIES WERE ALSO WRONG.

I SUSPECT THE AI STORY WILL PLAY OUT BETWEEN UTOPIA AND ANILATION.

INSTEAD OF MAKING GRAND PREDICTIONS, LET ME SHARE WITH YOU SOME OF THE THINGS I'M EXCITED ABOUT WITH AI AND SOME OF THE THINGS I'M WORRIED ABOUT AND WHAT WE ARE AS A UNIVERSITY SYSTEM ARE DOING ABOUT IT.

I'M EXCITED ABOUT THE POTENTIAL FOR ARTIFICIAL POTENTIAL TO ACCELERATE DISCOVERY, ESPECIALLY IN SCIENCE AND HEALTHCARE, FLOOD MODELING TO DISEASE PROTECTION TO ENERGY EFFICIENCY, AI HOLDS GREAT PROMISE FOR AN AGE OF RAPID ADVANCEMENT IN OUR ABILITY TO FIND SIGNALS AND NOISE AND MAKE PROGRESS ON IMPORTANT CHALLENGES.

A & T HAS A PROJECT FUNDED BY THE DEPARTMENT OF DEFENSE TO TEST THE SAFETY AND RELIABILITY OF DIFFERENT AI SYSTEMS.

CHARLOTTE IS CREATING AI POWERED DIGITAL TWINS TO MAP PEOPLE'S HEALTH MARKERS AND TEST NEW TREATMENTS.

STATE IS TRAINING AG EXTENSION AGENTS IN THE LATEST AI POWERED CROP SCIENCE TO PUT THE TOOLS IN THE HANDLES OF FARMERS.

WE ARE FINDING NEW EXAMPLES LIKE THIS EVERYDAY ACROSS THE STATE, ACROSS OUR CAMPUSES, AND THAT'S ESPECIALLY IMPORTANT FOR NORTH CAROLINA RESEARCH INTENSIVE ECONOMY.

I'M EXCITED ABOUT THE POTENTIAL FOR AI AS AN EDUCATIONAL TOOL, OFFERING NEW OPPORTUNITIES FOR RESEARCH, DIRECT FEEDBACK AND COLLABORATIVE CREATION.

FACULTY ACROSS THE SYSTEM ARE FINDING COMPELLING WAYS TO USE AI TO ADVANCE TEACHING.

AT ASHEVILLE, STUDENTS ARE TURNING LECTURE NOTES INTO PODCASTS GIVING THEM A NEW WAY TO STUDY.

AT ECU, THERE IS A TEACHER TEACHING CHAT GPT.

STUDENTS CAN DEMONSTRATE THE MASTERY OF A TOPIC.

FOR A MOTIVATED GROUP OF STUDENTS, AI CAN BE A LRNING TOOL.

I'M I'M EXCITED TO IMPROVE THE DAY-TO-DAY OPERATIONS.

THERE IS AN OPPORTUNITY TO GET MORE EFFICIENT AT EVERYTHING FROM SPACE ALLOCATION TO PAYMENT PROCESSING, TO PROVIDE A BETTER EXPERIENCE TO OUR STUDENTS WHEN IT COMES TO ENROLLMENT, COURSE REGISTRATION, FINANCIAL AID, PARKING, YOU NAME IT -- ANYTHING INVOLVING CAMPUS BUREAUCRACY.

EVERY CLASSROOM IN THE WORLD IS LOOKING FOR GAINS AND WE ARE STRATEGIC ABOUT IT AT THE SAME TIME.

FOR ALL OF THE REAL POSSIBILITIES OF PROGRESS, THERE IS ALSO REASON TO BE CONCERNED ABOUT THE IMPACT OF ARTIFICIAL INTELLIGENCE ONCORE RESPONSIBILITIES IN HIGHER ED.

THE SAME TOOLS THAT PROMISE TO ADVANCE OUR UNDERSTANDING OF THE WORLD OVERWHELM OUR ABILITY TO FIND TRUE KNOWLEDGE IN A SEA OF QUESTIONABLE INFORMATION.

EVEN BEFORE ROBOTS COULD GENERATE VAST CAWNTTIES OF DATA, UNIVERSITIES WERE TRUEING WILLING WITH ARCHIVING AND VETTING THE EXPLOSION OF CONTENT IN THE DIGITAL ERA.

THE DEEPEST PURPOSE OF A UNIVERSITY IS TO SEEK TRUTH, TO PURSUE UNDERSTANDING OF THE WORLD THROUGH STRUCTURE, TIME TESTED MEANS OF SIFTING INFORMATION INTO KNOWLEDGE AND KNOWLEDGE INTO SOMETHING LIKE WISDOM.

THAT'S THE ROLE OF SCIENTISTS OF SCHOLARS OF ACADEMIC DISCIPLINES IN RESEARCH LIBRARIES.

WE ARE SUPPOSED TO CREATE AND TEACH KNOWLEDGE THAT STANDS THE TEST OF TIME.

TRUTH IS ALWAYS A LOFTY CHALLENGE UNDER THREAT FROM IDEOLOGY, IGNORANCE AND DIFFERENT FLAVORS OF HUMAN FAILURE, TO SEE THE WORLD CLEARLY.

AI TOOLS MAY HELP US ADDRESS SHORTCOMINGS.

THEY MAY ALSO OVERWHELM US WITH NONSENSE.

I WORRY TOO, THAT FOR EVERY PROMISE AI HOLDS FOR TEACHING AND LEARNING, IT POSES AN EQUAL THREAT TO MENTAL EFFORT.

PERHAPS YOU HAVE HEARD THE TERM ING" COGNITIVE OFF LOADING" WITH THE TENDENCY OF TURNING THINKING OVER TO A CHAT BOT.

IT'S ONE ONE THING USING AN AI TOOL AFTER LEARNING, BUT AN EASY BUTTON YOU CAN PRESS WHEN THINGS GET TOUGH THAT'S CORRECT'S A TEMPTING INVITATION TO MEDIOCRITY.

YOU DON'T WRITE PAPERS IN COLLEGE BECAUSE THE WORLD NEEDS MORE PAPERS, LORD KNOWS.

YOU WRITE PAPERS IN COLLEGE SO YOU GET BETTER AT THINKING AND UNDERSTANDING.

AS ONE WRITER PUT IT, USING CHAT GPT TO COMPLETE ALL OF YOUR ASSIGNMENTS IS LIKE BRINGING A FORKLIFT TO A GYM.

YOU MISS THE POINT OF THE GYM.

FINALLY, I WORRY A GREAT DEAL ABOUT THE POTENTIAL OF AI TO ACCELERATE AN ALARMING SLIDE INTO ISOLATION AND ANXIETY FOR OUR YOUNG PEOPLE.

THERE ARE TOO MANY SOULS RETREATING INTO DIGITAL DISTRACTIONS AT THE EXPENSE OF REAL HUMAN CONNECTION, AND THE EARLY TRENDS OF USING AI CHAT BOX FOR COMPANIONSHIP AND EMOTIONAL SUPPORT ARE WORRISOME.

COLLEGE IS NOT A PLACE FOR IMPARTING KNOWLEDGE, IT'S A WELLSPRING OF CONNECTION, A WELL HONED ENVIRONMENT FOR MEETING PEOPLE, PUBLIC LIFE, FORGING DEEP RELATIONSHIPS THAT BRING US JOY AND CARRY US THROUGH HARD MOMENTS.

AI -- NONE OF THAT CAN HAPPEN IF YOUR HEAD IS BURIED IN SCREENS MOST OF THE DAY AND NIGHT.

AI COULD PROVIDE ANOTHER TRAP WHERE YOU CAN RETREAT INTO THE COLD GLOW OF THE VIRTUAL WORLD INSTEAD OF SEEKING TO INTERACT WITH THE NATURAL WORLD AROUND US.

ON EVERY ONE OF OUR CAMPUSES, THERE ARE BRILLIANT PEOPLE THINKING HARD ABOUT THE POSSIBILITIES AND RISKS.

WE ARE EAGER TO SUPPORT THEM AT THE SYSTEM LEVEL.

THAT STARTS WITH GIVING OUR FACULTY AND STAFF THE ROOM AND RESOURCES TO DO WHAT THEY HAVE ALWAYS DONE, EXPLORE, EXPERIMENT AND FIGURE OUT HOW TO MAKE THE NEW FRONTIER IN TECHNOLOGY, HOW IT WILL AFFECT OUR MISSION.

MUCH OF THE DISCUSSION ABOUT HIGHER ED AND AI HAS FRAMED THIS AS A MAD SCRAMBLE TO RESPOND TO AN EXTEN SHALL THREAT.

THAT'S NOT THE WAY I HAVE SEEN IT UNFOLD ON CAMPUSES.

AI SCHOLARS AND RESEARCHERS HAVE BEEN INTIMATELY INVOLVED IN THE DEVELOPMENT OF AI, IN THE TESTING AND APPLICATION OF AI, IN THE DEBATES ABOUT THE SOCIAL, ECONOMIC AND PHILOSOPHICAL IMPLICATIONS OF AI.

RIGHT NOW, ON EVERY ONE OF OUR CAMPUSES, PROFESSORS, STUDENTS AND STAFF, THEY ARE FIGURING OUT WHERE IT MAKES SENSE TO EMBRACE ARTIFICIAL INTELLIGENCE AND WHERE WE NEED TO SAFEGUARD HUMAN INTELLIGENCE, WHICH WILL REMAIN AT THE CORE OF WHAT WE DO.

FOR THE PAST THREE YEARS, THE UNC SYSTEM HAS HOSTED A BROAD FACULTY WORKING GROUP DEVOTED TO LEARNING TECHNOLOGY.

THEY HAVE BEEN ON TOP OF ADVANCES IN AI.

THEY HAVE DEVELOPED INITIATIVES IN ASSESSMENT AND GRADING, VALUE OF C CREDENTIAL IN AN AI WORLD, ACADEMIC INTEGRITY AND ROLE IN RESEARCH COLLABORATION.

I CAN'T STRESS ENOUGH THAT THE RESPONSE ACROSS THE SYSTEM HAS BEEN BROUGHT AND ORGANIC AND VERY MUCH IN KEEPING WITH THE SPIRIT OF INQUIRY AND EXPERIMENTATION THAT WE EXPECT UNIVERSITY SCHOLARS TO BRING TO THEIR WORK.

AS OF THIS WEEK WE HAVE THREE DEGREE PROGRAMS AND EIGHT MINORS WITH A CONCENTRATION FOCUS ON AI.

THAT NUMBER WILL CERTAINLY GROW IN THE DAYS AHEAD.

A NEW HIGHER EDUCATION HORIZON GROUP WILL HELP US THINK THROUGH SOME OF THE LONGER TERM TRENDS, NOT JUST THE IMMEDIATE NEEDS AROUND THE AI TOOLS AND TRAINING, BUT AROUND THE BIGGER QUESTIONS OF HOW TECHNOLOGIES THAT GENERATE TEXT AND ART AND MOVIES AND IMAGES, AND COMPUTATIONAL MODELS THAT SOME BELIEVE CONSTITUTE A NEW FORM OF THINKING MAY IMPACT WHAT WE DO IN EDUCATION.

AI IS HERE.

WE MUST BE ALERT TO ITS OPPORTUNITIES AND CHALLENGES.

THERE ARE THREE CLEAR ROLES FOR THE UNC SYSTEM AS WE MOVE FORWARD.

FIRST, WE NEED TO PROVIDE RESOURCES.

THROUGH THE GREAT WORK OF OUR SYSTEM OFFICE TEAM, WE ARE MOVING TOWARD FAVORABLE LICENSING AGREEMENTS WITH MANY OF THE MAJOR AI PROVIDERS.

AMAZON, OPEN AI, GOOGLE, MICROSOFT TO MAKE SURE FACULTY, STAFF AND STUDENTS HAVE ACCESS TO THE MOST ADVANCED VERSIONS OF THE TOOLS.

OUR AGREEMENT WITH GOOGLE MAKES US ONE OF THE FIRST UNIVERSITY SYSTEMS IN THE COUNTRY TO PROVIDE THOUSANDS OF CAREER CERTIFICATES TO ALLOW OUR STUDENTS AND STAFF TO HONE THEIR AI CREDENTIALS.

THE GOAL IS NOT TO PICK A WINNER IN THE AI RACE OR TO TIE OUR UNIVERSITY TO A MODEL OR APPROACH.

IT'S TO ENSURE THAT PEOPLE ACROSS THE SYSTEM HAVE ACCESS TO THE VERY BEST OF WHAT'S AVAILABLE IN THE SPACE.

SO WE CAN EXPERIMENT AND ADAPT.

SECOND, WE NEED TO SHARE BEST PRACTICES ACROSS THE SYSTEM.

WE'LL HIRE A CHIEF AI OFFICER TO HELP US OVERSEE STRATEGY FOR THE SYSTEM AND AID OUR CAMPUS WITH THEIR OWN INTEGRATION.

WE HOST A BIANNUAL SYMPOSIUM WITH ITS OWN PUBLICATIONS AND TRAININGS, AND AI IS A CORE COMPONENT OF THAT WORK.

WE ARE FORMING A NEW AI ADVISORY COUNCIL WITH EXPERTS AND PRACTITIONERS ACROSS THE SYSTEM TO IDENTIFY NEEDS, FIND AND HIGHLIGHT PRODUCTIVE USES OF AI ACROSS THE SYSTEM AND ENSURE WE ARE SHARING KNOWLEDGE ACROSS OUR INSTITUTIONS.

AS WITH ANY FAST-CHANGING TECHNOLOGY, THE SMARTEST USE CASES WON'T BE DELIVERED FROM THE TOP DOWN, BUT WILL EMERGE FROM THE BOTTOM UP, FROM THE EFFORTS HAPPENING ON OUR CAMPUSES.

FINALLY, WE NEED TO KEEP OUR UNIVERSITIES CONNECTED WITH THE EMERGING NEEDS OF OUR STATE.

WORKING CLOSELY WITH INDUSTRY PARTNERS TO HELP STUDENTS PREPARE FOR A SHIFTING JOB MARKET.

HIGHER EDUCATION HAS ALWAYS EVOLVED IN RESPONSE TO THE NEW DMANLD DEMANDS IN ECONOMY.

WE ARE ADVANCING SKILLS THROUGH NEW PROGRAMS, OFFERINGS AMEND OFFERINGS AND TRAININGS, BUT THERE ARE INDICATIONS THAT AI IS ERODING ENTRY LEVEL JOBS WITH MORE ON THE WAY.

WE HAVE THE RESPONSIBILITY TO DELIVER THE BEST DEGREE POSSIBLE FOR OUR STUDENTS, CLOSELY MONITORING THE WAY EMERGING TECHNOLOGY IS CHANGING THE ECONOMY AND SOCIETY.

TO POWER OUR STATE'S WORKFORCE FOR THE FUTURE, WE ARE LAUNCHING BY THE NEW YEAR A SYSTEM WIDE AI SKILLS MODULE ACCESSIBLE TO EVERY STUDENT ACROSS THE UNC SYSTEM.

THIS MODULE WILL HARNESS THE EXPERTISE OF OUR WORLD CLASS FACULTY AND INNOVATION OF LEADING PRIVATE SECTOR PARTNERS TOGETHER.

SOON THEREAFTER, I HOPE TO MAKE THAT EVER EVOLVING CONTENT BROADLY AVAILABLE TO THE PEOPLE OF NORTH CAROLINA AS WELL.

SO, EDUCATION AS WE KNOW, IS A VERY OLD CALLING.

UNIVERSITIES ARE SOME OF THE MOST ENDURING INSTITUTIONS IN AMERICAN SOCIETY.

I DO NOT BELIEVE AI IS GOING TO DISPEL THE END OF COLLEGE ANYMORE THAN PRINTED BOOKS, TELEVISION, THE INTERNET OR ANY OTHER INNOVATION THAT HAS PROMISED TO UPEND THE HUMANE PROCESS OF LEARNING.

WHATEVER TASK THE CHAT BOTS AND ALGORITHMS MASTER, THERE WILL BE GOOD AND VITAL WORK FOR US IN TAKING UNFORMED THINKERS AND MAKING THEM SHARPER, RICHLY RELATIONAL HUMAN BEINGS.

THERE WILL BE A PLACE FOR CLASSROOMS, QUADS, PROFESSORS AND MENTORS, TIME AND SPACE TO THINK AND READ AND ASK AND ARGUE, FOR THE DRIVE TO UNDERSTAND AND MAKE MEANING OF THE WORLD.

THE RISE OF THE INTERNET CHANGED HUMAN LIFE FOR THE BETTER AND FOR THE WORSE.

I SUSPECT AI WILL BE A SIMILAR PHENOMENON, GOOD AND BAD.

PART OF OUR JOB IS TO HOLD THE TORCH FOR THE FLOURISHING OF THE HUMAN SPIRIT NO MATTER WHAT TAKES HOLD.

WE HAVE SEEN DANGER OF PEOPLE LOSING THEMSELVES IN AN ONLINE WORLD OF CONSTANT EXPOSURE TO RELENTLESS IMAGES OF IDEOLOGY, BUT NOISE IS NOT KNOWLEDGE.

TECHNOLOGY IS NOT NECESSARILY TRUTH.

IF ANYTHING, THE EMERGENCE OF HYPER EFFICIENT MACHINES MAY DEEPEN THE CASE FOR COLLEGE AS A FUNDAMENTALLY HUMANISTIC ENDEAVOR, A PLACE WE STRIVE TO BE MORE FULLY ALIVE TO THE WORLD, INDEED MORE FULLY HUMAN.

WE CANNOT OUTSOURCE LIFE TO ARTIFICIAL INTELLIGENCE.

IT MUST BE ACCOMPANIED BY EMOTIONAL INTELLIGENCE, REASONING, MORALITY.

THERE IS MUCH MORE TO DO IN THE DAYS AHEAD.

I APOLOGIZE FOR THE LENGTH, MADAM CHAIR, BUT WE HAVE BEEN DOING A GREAT DEAL OF THOUGHT ABOUT THIS AT THE SYSTEM OFFICE AND WITH OUR CAMPUS PARTNERS.

I WANTED TO UPDATE THE BOARD ON WHERE WE WERE.

>> CHAIR: THANK YOU.

YOU TAKE ALL OF THE TIME YOU NEED.

VERY IMPORTANT TOPIC.

WE WERE MEANT TO FELLOWSHIP TOGETHER.

>> AMEN.

>> CHAIR: WE'LL NOW CONSIDER THE CONSENT AGENDA ITEMS LISTED AS ITEM 5 ON TODAY'S AGENDA.

ARE THERE ITEMS THAT MEMBERS OF THE BOARD WISH TO HAVE REMOVED FOR DISCUSSION?

OKAY.

HEARING NONE, I'LL ENTERTAIN A MOTION TO APPROVE THE ADMINISTRATIVE ACTION ITEMS BY CON EXTENT.

CONSENT.

>> MOTION.

>> SECOND.

>> ALL IN FAVOR SAY AYE.

>> OPPOSED?

MOTION CARRIES.

>> CHAIR: I'LL CALL ON MR.

BRADLEY FOR THE REPORT OF THE COMMITTEE ON BUDGET AND FINANCE.

>> MR.

BRADLEY: THANK YOU, CHAIR MURPHY.

WE MET VIRTUALLY MONDAY SEPTEMBER 15TH DURING WHICH IT APPROVED THE ANNUAL REPORT SUMMARIZING THE ACTIONS OF THE COMMITTEE FY25 AND REVIEWED THE ALTERNATE DELIVERY REPORT, BOTH AVAILABLE FOR YOUR REVIEW.

NEXT, THERE WERE FOUR TRANSACTIONAL ITEMS ON THE CONSENT AGENDA THAT THE BOARD APPROVED, INCLUDING HURRICANE HELENE GRANT ALLOCATIONS, CAPITAL IMPROVEMENT PROMPTS, AUTHORIZATION FOR PROPERTY LEASE AND FOR PROPERTY THE BY DEED.

DURING THE MEETING YESTERDAY, THE COMMITTEE RECEIVED PRESENTATIONS ON GENERAL FUND BUDGET AND 2026-27 TUITION AND FEE INSTRUCTIONS.

THESE PRESENTATIONS FOR INFORMATION AND NO VOTES WERE REQUIRED.

THE COMMITTEE APPROVED THE OPERATION BUDGET ALLOCATIONS AS WELL AS FY26 STATE CAPITAL INFRASTRUCTURE FUND ALLOCATION FOR REPAIRS AND RENOVATION PRPBLGHTS TOTALING UNDER 45,000,000.

THESE ITEMS WERE INCLUDED ON THE CONSENT GAINED.

NEXT, THE COMMITTEE APPROVED AMENDMENT TO 600.0.1 OF THE POLICY MANUAL FOR REAL PROPERTY TRANSACTIONS.

THE AMENDMENT INCREASES THE AUTHORITY LEVELS FOR DELEGATED REAL PROPERTY TRANSACTIONS, DEFINES TERMS AND ALIGNS WITH THE POLICIES OF CAMPUSES AND ENTITIES.

THIS WILL BE VOTED ON THROUGH THE CONSENT AGENDA AT THE NEXT MEETING.

FINAL, REVIEWED AND APPROVED FUNDING ALLOCATION.

IT IS PROPOSED THAT EACH INSTITUTION CONTRIBUTE TO A 30,000,000 PERFORMANCE POOL THROUGH A REDUCTION BASED ON FY24 OPERATING REVENUE AND STATE APPROPRIATIONS.

WE HAD A ROBUST DEBATE ON THIS AND PASSED IT OUT OF COMMITTEE.

THE PURPOSE OF THIS PART OF A FUNDING MODEL CHANGE AGREED TO THREE YEARS AGO, IN PLACE TWO AND WE ARE NOW IN THE THIRD.

THE PRESIDENT VIEWS THIS IN ADDITION TO THE COMPENSATION WE HAVE ADDED AS AN IMPORTANT TOOL FOR HIM TO EXECUTE THE POLICIES AND STRATEGIES WE AGREE AS A BOARD.

WITH THAT, MADAM CHAIR, AT THIS TIME, ON BEHALF OF THE COMMITTEE OF BUDGET AND FINANCE, I MOVE THAT THE BOARD OF GOVERNORS APPROVE THE FUNDING REALLOCATIONS.

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

IS THERE FURTHER DEBATE?

>> MR.

CHAIRMAN, I WOULD LIKE TO SPEAK ON THE MOTION.

I SUPPORTED THE ORIGINAL FUNDING PERFORMANCE FUNDING MODEL THE WAY IT WAS FUNDED.

IT WAS AN INSPIRATIONAL WIN/WIN SOLUTION TO IMPROVE PERFORMANCE.

FINDING NEW ADDITIONAL DOLLARS, RATHER THAN STATUS QUO, THEY WANT TO SEE IMPROVED PERFORMANCE.

IT WAS A WIN FOR THE GENERAL ASSEMBLY.

BELOVABOVE ALL ELSE, IT WAS A WIN FOR EVERY CAMPUS IN THE UNIVERSITY SYSTEM.

EVERYONE GETS ADDITIONAL FUNDING, DEPENDING ON THE PERFORMANCE, SOME GET SUBSTANTIALLY MORE, SOME LESS, BUT EVERYONE WOULD WIN.

IT WAS A GREAT WIN/WIN SOLUTION.

UNFORTUNATELY, THEY FUNDED IT ON A NONRECURRING BASIS AND WE DON'T HAVE A BUDGET NOW AND IT WAS ADDED ZERO FUNDING ON A NONRECURRING BASIS A NEW PROPOSAL FROM ALLOCATION CAMPUSES, REDISTRIBUTION FROM EXISTING CAMPUSES.

ABSOLUTELY THE SYSTEM HAS AUTHORITY TO FORM A POOL LIKE THIS AND SPEND THE MONEY IN THE BEST INTEREST OF THE UNIVERSITY, BUT WHEN IT BECOMES A REDISTRIBUTION TAKING MONEY FROM CAMPUSES, IT'S A WIN/LOSE SOLUTION.

SOME CAMPUSES WILL NEVER RECEIVE MORE MONEY.

I'M GOING TO STATE THE OBVIOUS, THE BIGGEST LOSER IS UNC CHAPEL HILL NOT BECAUSE IT'S PERFORMING POORLY BUT THE SIZE AND BREADTH OF THE OPERATION, PATIENT REVENUE FROM THE SCHOOL OF MEDICINE AND FACILITY FEES IN THE BROAD RESEARCH GRANTS.

IT'S NEVER GOING TO RECOVER.

SOME OF THE SMALLEST INSTITUTIONS, ONE OF THE CAMPUSES, SMALL AND HAPPENS TO BE A HISTORICALLY MINORITY SERVING INSTITUTION IS A NET LOSER.

IT'S NOT PERFORMING AS WELL.

WE SHOULDN'T BE PENALIZING THEM TO REDISTRIBUTE MONEY TO OTHERS.

I APPLAUSE THE REWARDING GOOD PERFORMANCE, BUT OFTEN THE BEST RETURN ON ADDITIONAL DOLLARS SPENT IS NOT AT THE CAMPUSES PERFORMING WELL, UPWARD TREND, BUT THOSE THAT NEED THE MOST HELP LIKE THE SMALLER INSTITUTIONS.

THAT IS A DEBATE WE HAVE HAD FOR YEARS, DECADES, K-12 WHERE THE GENERAL FUNDING GAVE TO IMPROVE PERFORMANCE.

HERE, WE ARE TAKING DOLLARS FROM A SMALL CAMPUS TO GIVE TO OTHER CAMPUSES.

EVEN SOME OF THE CAMPUSES ON THIS YEAR'S 25-26 REALLOCATION CAME OUT MARGINALLY BETTER.

THAT'S THIS YEAR.

NEXT YEAR IT COULD BE WORSE.

RESPECTFULLY, I OPPOSE THIS PARTICULAR FUNDING FORMULA.

I THINK IT CREATES A SYSTEM OF WINNERS AND LOSERS.

I THINK IT DOES NOT PUT THE DOLLARS WITH THE BEST RETURN ON THE UNC SYSTEM BECAUSE THE POORER CAMPUSES COULD USE MORE HELP AND GET A BETTER RETURN THAN THEY DID.

I APPRECIATE THE OPPORTUNITY TO PROVIDE THE POINTS.

I APPRECIATE THE STAFF DEBATE, BUT GOOD AS THE ORIGINAL POLICY WAS, THE ADDITIONAL DOLLARS, VOTE NO AND PUT THE PRESSURE FOR MORE MONEY FOR THE PROGRAM, NOT TAKING ONE CAMPUS TO GIVE TO ANOTHER.

>> CHAIR: THANK YOU, MR.

POPE.

I APPRECIATE THE DISCUSSION AND THE DIFFERENCES OF OPINION.

I THINK THAT'S IMPORTANT FOR US TO ALL BE ABLE TO SPEAK AND SHARE HOW WE FEEL.

I WOULD LOVE TO BE ABLE TO FEEL CONFIDENT THAT THE FUNDING WILL COME, BUT I DON'T THINK THAT IT WILL, AND I DON'T HAVE CONTROL OVER THAT.

I KNOW WE ALL WORKED HARD FOR THE PERFORMANCE MODEL, AND WE FEEL GOOD ABOUT IT AND THE GOOD WORK THAT'S BEING DONE ON THE CAMPUSES IS SHOWING.

I DO THINK PRESIDENT HANS, JENNIFER HAYGOOD AND HER TEAM, A LOT OF TIME HAS BEEN SPENT TRYING TO COME UP WITH A SOLUTION TO THE LACK OF THE FUNDING THAT IS NOT ALL -- IT'S NOT GOING TO PLEASE HERB.

EVERYBODY.

I THINK WE HAVE COME UP WITH THE BEST OPTION FOR THIS MINUTE.

ANYONE ELSE CARE TO SPEAK?

>> I WOULD LIKE TO ASK A QUESTION OF THE PRESIDENT OR SOMEONE ELSE IN FAVOR OF THE MOTION.

HAVING SERVED IN PUBLIC OFFICE BEFORE, AND CONSIDERED REQUESTS SIMILAR TO THIS, I KNOW THAT WHEN I'M MAKING A DECISION ON WHETHER TO FUND SOMETHING ALREADY FUNDED, TYPICALLY, THE ANSWER IS NO.

IF THERE IS SOME OTHER SOURCE OF FUNDING OR SOMEONE HAS STEPPED UP TO SOLVE A PROBLEM I NO LONGER NEED TO WRITE CHECKS TO SOLVE, I'M INCLINED TO SAY NO AND NOT FUND IT.

IT MIGHT BE THAT, THAT PREDICTS WHAT MIGHT END UP HAPPENING IN THE BUDGET IF THERE IS A BREAKTHROUGH.

YOUR COMMENTS ABOUT THE PERFORMANCE AND THE LAUDABLE GOALS PURSUED WHEN IT WAS PASSED WHEN IT WAS SEEN IN SOME OF THE METRICS, NOT ALL, ARE PERSUASIVE TO ME.

I WOULD LIKE TO HEAR A COUPLE OF THINGS FROM OUR SYSTEM.

IF WE FUND THIS TODAY OR APPROVE THIS MOTION, I SHOULD SAY, WHAT DO YOU PREDICT 12, 24 AND 36 MONTHS LOOK LIKE FROM THE GENERAL ASSEMBLY, I UNDERSTAND IS FRAUGHT WITH PROBLEMS FOR YOU TO PREDICT THAT.

I WOULD LIKE TO STILL HEAR YOU.

WE ARE IN THE PREDICTION BUSINESS SOMETIMES.

SECOND, I WOULD LIKE TO HEAR MORE DETAIL ABOUT GOVERNOR POPE'S CONCERN ABOUT THE DISPARITIES.

DID YOU UNDERSTAND THE TWO THINGS, PETER?

>> YES, MR.

WHITE, I DO.

IF I MIGHT ADD BROADER CONTEXT IN THE COURSE ANSWER YOUR QUESTION.

BECAUSE THE PAST TWO SESSIONS WE HAVE ASKED FOR PERFORMANCE FUNDING FROM THE LEGISLATURE.

THEY HAVE OFFERED FEEDBACK.

THEY ARE SUPPORTIVE OF THE INTENT, THE GOALS, OF COURSE, BUT HAVE APPROPRIATED NON-RECURRING FUNDS.

WE ARE APPRECIATIVE OF THE SUPPORT, BUT THE CHANCELLORS ARE TOLD THAT NONRECURRING A NOT A WORKABLE MODEL GOING FORWARD.

IF THEY CAN'T PLAN ON RECURRING FUNDS, THEY CAN'T DEVOTE STEADY EFFORTS TO CONTINUOUS IMPROVEMENT.

THIS GOES TO THE PREDICTION PART, PERHAPS, SHORT-TERM.

LONG-TERM, I DON'T KNOW.

DIFFICULT TO SAY.

IT HAS BECOME INCREASINGLY CLEAR TO ME OVER THE PAST THREE OR FOUR MONTHS THAT A STATE BUDGET DEAL IS UNLIKELY GIVEN THE CONTINUING RESOLUTION, GIVEN THE DIFFERENCES.

THERE ARE CONSIDERABLE DIFFERENCES BETWEEN THE CHAMBERS, AND PURSUING FUNDING WITH A LESS POSITIVE FISCAL FORECAST IS NOT REALISTIC STRATEGY FOR US.

I BASE THIS ON A NUMBER OF CONVERSATIONS.

I THINK THE CORNER OFFICES GENERALLY WOULD SAY, IF WE ARE ABLE TO HANDLE THIS, IT WOULD BE WELCOME.

NOW, AS I MENTIONED YESTERDAY IN THE BUDGET AND FINANCE COMMITTEE COMMITTEE, IF WE SEE A MORE POSITIVE FISCAL FORECAST, OR WE ARE ABLE TO DEMONSTRATE TO THE GENERAL ASSEMBLY THAT THIS MODEL IS WORKING, AND THEY INDICATE A WILLINGNESS TO FUND IT ON A RECURRING BASIS, I WILL BE DELIGHTED TO BRING A REGS TO THE RECOMMENDATION TO THE BOARD TO RETURN TO THAT MODEL.

IT WAS A LAST RESORT THAT WE TURN TO THIS BECAUSE WE HAVE BEEN EXPLORING HOW WE MIGHT FUND THIS INTERNALLY GIVEN THOSE CIRCUMSTANCES, AND I KNOW YOU WILL RECALL -- OTHER MEMBERS OF THE BOARD WILL RECALL OUR REPORT IN MAY WHERE I DREW ATTENTION TO INCREASED SYSTEM WIDE ADMINISTRATIVE SPENDING SINCE PRE-PANDEMIC DAYS.

NOW, GIVEN FEDERAL PRESSURES, STATE UNCERTAINTY, I DIRECTED THE CAMPUSES TO CAP ADMINISTRATIVE SPENDING.

THEY HAVE DONE SO TO CONSIDERABLE EFFECT AND DUE CREDIT IN THAT REGARD.

WE SAVED $5 MILLION OVER THE PERIOD OF JUNE AND JULY.

THAT'S OVER THE SUMMER WHEN THAT IS USUALLY AT AN EBB.

OVER ALL, ANNUALIZED SAVINGS PROJECTED TO BE $41 MILLION.

AT THE SAME TIME, TO DEMONSTRATE TO THE CHANCELLORS THAT I WAS EATING MY OWN COOKING, WE REDUCED THE SYSTEM OFFICE BUDGET $5 MILLION.

ALL THE TIMES, I BELIEVE, I THINK THIS BOARD BELIEVES, WE SHOULD TEND OUR OWN GARDEN REDUCING ADMINISTRATIVE SPENDING TO PRIORITIZE THE CORE MISSION OF TEACHING AND LEARNING.

ANY LARGE ENTERPRISE IS TEMPTING TO GROW ADMINISTRATIVE SPENDING.

I UNDERSTAND THAT.

SEVERAL CHANCELLORS, INCLUDING CHAPEL HILL, TAKING THE LEAD, WELL BEYOND THIS CAP TO PREPARE FUNDS, PLANS TO ACHIEVE EFFICIENCIES TO CUSHION AGAINST REDUCTIONS ON THE FEDERAL OR STATE LEVEL AND ALLOCATE RESOURCES TO HIGHER PRIORITIES, WHICH I APPRECIATE.

THAT'S GOOD MANAGEMENT.

THAT'S GOOD LEADERSHIP.

THAT'S THE CHANCELLORS WE HAVE HIRED.

THERE ARE MANY DOING THAT.

AT THE SAME TIME, WE SEE THE EARLY RESULTS OF THE ADMIN SPENDING CAP HAVE BEEN SUCCESSFUL, PROVIDING A CHANCE FOR MAKING UP PERFORMANCE CONTRIBUTION NOW ON A RECURRING BASIS.

THE CONTRIBUTIONS ARE ASSIGNED AS A PERCENTAGE OF OVERALL REVENUE AND GENERAL PREPARATION TO SPREAD IT OUT ACROSS THE CAMPUSES, BUT THEY'LL ALL BENEFIT, ALL OF THEM BENEFIT FROM SHIFTING RESOURCES FROM LESS PRODUCTIVE PURSUITS, INCLUDING EXPRESSIVE ADMINISTRATIVE SPENDING BACK TO THE CORE MISSION WITH RECURRING DOLLARS AND PERFORMANCE FUNDING FOLLOWING EVERY YEAR.

SO, PERFORMANCE FUNDING AS THE CHAIR STATED, BOTH CHAIRS -- BEEN A PRIORITY OF THE BOARD DURING THE TIME I HAVE SERVED AS PRESIDENT.

IT ALIGNS THE SYSTEM INCENTIVES AND CHANCELLOR COMPENSATION AND FUNDING WITH THE METRICS THE BOARD OF GOVERNOR SETS ABOUT LOWERING STUDENT DEBT, INCREASING GRADUATION RATES, EFFICIENCY PER DEGREE, THINGS WE HAVE ALL AGREED UPON.

IT ENSURES THE ALIGNMENT.

AS I OFTEN SAY, TO HAVE ALL OF THE SHIPS SAILING IN THE SAME DIRECTION.

I BELIEVE EVERY CAMPUS WILL BENEFIT FROM THIS CHASE.

>> FOLLOW UP QUESTION?

>> YES.

?

>> IF THE MOTION WERE DEFEATED AND THE RECOMMENDATION WERE NOT TO BE ADOPTED, THEN HOW WOULD THE SYSTEM STILL PURSUE THE STATED PERFORMANCE POLICY THAT THE BOARD HAS SET IN THE ABSENCE OF GENERAL ASSEMBLY FUNDING AND IN THE ABSENCE OF APPROVAL OF THIS MOTION.

>> IN THE ABSENCE OF GENERAL ASSEMBLY FUNDING OR THIS MOTION PASSING, I BELIEVE THAT WOULD BE THE END OF PERFORMANCE FUNDING FOR THE CAMPUSES.

NOW, WOULD WE CONTINUE TO ADVOCATE -- >> THAT ANSWERED MY QUESTION.

I'LL VOTE IN FAVOR OF THIS.

THANK YOU.

>> YES, SIR.

THANK YOU.

>> CHAIR: GOVERNOR RAMSEY?

>> THANK YOU, MADAM CHAIR.

I LISTENED AND WATCHED THE COMMITTEE MEETING YESTERDAY.

AS IT RELATED TO THIS, WHILE WE ARE ALL DISAPPOINTED THE GENERAL ASSEMBLY IS NOT FUNDING THIS, I FEEL STRONGLY THAT WE SHOULD FUND IT.

IF YOU LOOK AT THE METRICS, THE METRICS HAVE MOVED.

IN TWO YEARS, WE HAVE MADE REAL PROGRESS ON THE GOALS THAT THIS BOARD SET, AND THEY ARE GOALS HELPING OUR STUDENTS AND HELPING THE PEOPLE OF THE STATE OF NORTH CAROLINA.

I DO NOT THINK THIS IS AN IDEAL SOLUTION.

IT'S THE BEST SOLUTION WE HAVE COME UP WITH.

I HAVE SPOKEN WITH THE CHANCELLOR LAST NIGHT AT LENGTH ABOUT THIS THAT SAID HE AND HIS TEAM HAVE WORKED HARD ON THEIR CAMPUS TO SHIFT THINGS SO THEY ARE MEETING THESE AND ARE IMPROVING THE METRICS.

IF THIS INCENTIVE IS CAUSING OUR CAMPUSES TO THINK THE WAY WE ARE THINKING ABOUT WHAT'S MOST IMPORTANT, AND THIS IS A TOOL WE CAN'T LET DIE, WE HAVE TO KEEP IT IN PLACE.

I HOPE THIS MOTION PASSES TODAY.

I KNOW WE ARE ALL DISAPPOINTED IT'S NOT BEING FUNDED A DIFFERENT WAY.

I CAN TELL YOU, CHAIR BRADLEY, THOSE OF YOU NOT IN THE MEETING HAVE WORKED HARD TO FIND A FAIR SOLUTION.

IN FACT, ONE SOLUTION BROUGHT FORWARD WAS COMPLETELY TORN UP AND THROWN AWAY.

THEY WENT BACK TO THE DRAWING BOARD.

I'M SURE MISS HAYGOOD WAS NOT HAPPY ABOUT THAT.

I'M PASSIONATE ABOUT IT.

AFTER TALKING TO A CHANCELLOR LAST NIGHT, I'M MORE PASSIONATE ABOUT IT.

SEEING HOW THE NUMBERS ARE MOVING, I THINK IT'S SOMETHING WE HAVE TO FUND.

THANK YOU, MADAM CHAIR.

>> CHAIR: THANK YOU.

WELL SAID.

MISSILE NICHOLS?

>> A QUICK QUESTION.

ARE WE GOING ON THE ASSUMPTION THAT THE GENERAL ASSEMBLY IS NOT GOING TO FUND?

THIS IS A RECURRING FUND.

I GUESS, AS WE MOVE FORWARD, I'M IN SUPPORT OF THE IDEAL OF THE PERFORMANCE FUNDING AT ITS CORE, BUT AS I'M LISTENING, IF WE ARE MOVING FORWARD WITH THIS, I UNDERSTAND IT'S NOT THE MOST IDEAL SITUATION, I'M WONDERING AS A PLANNER, ARE WE GOING TO GO AHEAD AND SAY -- SOUNDING IGNORANT, THEY AIN'T GOING TO FUND US, SO WE HAVE TO FIGURE OUT HOW TO GO FORWARD.

I'M GETTING THAT AS I LISTEN TODAY.

>> A COUPLE OF THINGS, MISS NICHOLS.

THE GENERAL ASSEMBLY FUNDED THIS ON A NONRECURRING BASIS THE LAST TWO OPPORTUNITIES WE PRESENTED IT TO THEM.

THE CHANCELLORS BELIEVE THAT'S NOT A WORKABLE MODEL TO MOVE METRICS.

THE GENERAL ASSEMBLY HASN'T AGREED ON A BUDGET.

THE SENATE INDICATED IT WOULD SUPPORT, AGAIN, ANOTHER ROUND OF NONRECURRING DOLLARS.

THE HOUSE DID NOT.

NOT CRITICAL OF THE GENERAL ASSEMBLY, LORD KNOWS THEY FUND THE UNIVERSITY VERY WELL.

WE ARE TOP FIVE IN SUPPORTING HIGHER EDUCATION.

I TRY TO CARRY 245 MESSAGE FORWARD.

THAT MESSAGE FORWARD.

THAT'S BEEN TRUE ON A BIPARTISAN BASIS.

IT'S DONE SO MUCH TO HELP NORTH CAROLINA GROW AND PROSPER.

STATE ECONOMISTS ARE SUGGESTING A LESS POSITIVE FISCAL FORECAST IS IN OUR FUTURE.

I AM NOT IN A POSITION TO AGREE OR DISAGREE WITH THAT.

PRESUMABLY, THEY HAVE A BERLINS ON THAT THAN I DO.

WE HAVE $46 MILLION FROM THIS PAST YEAR IN UNFUNDED ENROLLMENT GROWTH ACROSS OUR CAMPUSES.

THE GENERAL ASSEMBLY IN ITS MINIBUDGET DID NOT ADDRESS THAT.

WE ARE HOPEFUL AT SOME POINT IN THE FUTURE THEY WILL.

LET'S THINK AHEAD TO YESTERDAY'S GOOD NEWS ABOUT EVEN MORE SIGNIFICANT ENROLLMENT GROWTH ACROSS OUR CAMPUSES, MUCH TO CELEBRATE THERE.

THAT IS A VALIDATION OF EVERYTHING THE UNIVERSITY AND THIS BOARD IS DOING TO LEAD THE SYSTEM FORWARD, BUT WHEN YOU COMBINE LAST YEAR -- IT'S FUNDED IN ARREARS.

$46MILLION LAST YEAR UNFUNDED AT THE MOMENT PLUS A LARGER NUMBER COMING FORWARD, WE'LL BE FORTUNATE AND VERY THANKFUL TO THE GENERAL ASSEMBLY IF THEY ARE ABLE TO FULLY FULFILL THAT REQUEST WHICH HAS BEEN ROUTINE IN THE PAST, MUCH LESS GO BACK AND SAY, YES, WE'LL FUND PERFORMANCE FUNDING ON A RECURRING BASIS.

THAT'S ME BEING A REALIST ABOUT WHERE WE ARE.

I HOPE THAT ANSWERS YOUR QUESTION.

THANK YOU.

>> CHAIR: MR.

CHATTERGY.

>> I HAVE TWO QUESTIONS.

IF I AM A MEMBER OF THE LEGISLATIVE GROUP, I WILL THINK THE UNC SYSTEM CAN FUND THE 30,000,000, WHY WE, THE LEGISLATURE SPEND THAT MONEY GOING FORWARD?

CHANCES OF OUR GETTING MONEY FROM THE STATE ASSEMBLY WILL BE MUCH LE LESS IF WE DECIDED TO FUND THIS.

THIS IS NUMBER ONE.

NUMBER TWO IS, PETER, YOU HAVE DONE A GREAT JOB OF EFFICIENCY.

YOU HAVE REDUCED AMOUNTS OF DOLLARS FOR THE LAST YEAR BECAUSE YOU HAVE COMMUNICATED TO TIGHTEN THE BELT.

YOU HAVE SPENT MONEY IN THE SYSTEM OFFICE AND ALSO OTHER UNIVERSITY CHANCELLORS HAVE REDUCED THE COST, SO ONE SIDE, WE ARE TELLING THE UNIVERSITY CHANCELLOR THAT YOU TIGHTEN YOUR BELT TO BE MORE EFFICIENT.

THAT MEANS WE HAD INEFFICIENCY IN THE SYSTEM.

AFTER THEY TIGHTENED THE BELT, WHAT WE LOST, WHAT IS THE OUTCOME?

IF THE OUTCOME IS WE ARE NOT LOSING ANYTHING, THAT MEANS WE SHOULD HAVE DONE THIS IN THE FIRST PLACE.

WHY WE ARE SPENDING $30 MILLION, AND I DID NOT GET IT THAT THREE YEARS AGO THIS WAS IMPLEMENTED TWO YEARS.

WHAT WE GOT IN TWO YEARS, THAT'S THE QUESTION I HAD YESTERDAY.

I HAVE THE SAME QUESTION TODAY, WHAT WE HAVE ACHIEVED AND WHAT WILL HAPPEN IF WE DON'T FUND.

THAT'S MY TWO QUESTIONS, PETER.

THAT'S THE REASON I'M NOT COMFORTABLE VOTING YES TO ALLOCATING THIS MONEY, AND PLEASE DO IF YOU CAN ANSWER TO MAINTAIN MY MIND.

>> I'LL DO MY BEST.

FIRST OF ALL, I WOULD HAVE RECOMMENDED THE ADMINISTRATIVE SPENDING CAP REGARDLESS OF THE SITUATION BECAUSE THE TRENDS THERE WERE CLEAR, AND NOT AT EVERY CAMPUS.

I WANT TO STRESS THIS, THERE ARE A NUMBER OF CAMPUSES THAT PERFORM RELATIVELY WELL IN THAT METRIC.

I BELIEVE WE OUGHT TO BE TENDING OUR GARDEN -- OUR OWN GARDEN ON A REGULAR BASIS THERE, REGARDLESS OF THIS ISSUE.

I'M ONLY SUGGESTING THAT THIS IS A POSSIBLE SOURCE FOR THE CAMPUSES TO ABSORB THIS INVESTMENT, THIS CONTRIBUTION ON A RECURRING BASIS AND BENEFIT EVERY YEAR IN THE FUTURE FROM AN INCENTIVE TO IMPROVE THE PERFORMANCE.

WE HAVE SEEN IMPROVEMENTS IN PERFORMANCE.

CAN I ISOLATE THE IMPROVEMENTS SOLELY TO THIS?

NO.

THERE ARE MANY FACTORS, BUT I DEFINITELY BELIEVE IT HAS LED TO A MUCH INCREASED FOCUS ON THE CAMPUSES ABOUT WHAT IS MOST IMPORTANT TO THE BOARD OF GOVERNORS, LOWER STUDENT DEBT, CONSIDERABLY LOWER.

HIGHER GRADUATION RATES, MAKING PROGRESS -- THESE ARE FOUR YEAR GRADUATION RATES, NOT FIVE YEAR OR SIX YEARS.

SIGNIFICANCE SI IN DEGREE.

WE ARE WORKING ON GRADUATION RATES, THOUGH WE ARE MUCH HIGHER THAN THE NATIONAL AVERAGE.

I WOULD ARGUE THE STRATEGIC DECISIONS BY THE BOARD ARE HAVING AN IMPACT IN THE AREAS THAT MATTER THE MOST TO YOU.

THIS MOTION TODAY WILL FURTHER THAT OBJECTIVE.

I HOPE THAT ANSWERS YOUR QUESTION, SIR.

>> THANK YOU.

>> CHAIR: OKAY, THANK YOU FOR THAT.

IF YOU PARTICIPATED, IT IS HARD TO UNDERSTAND, BUT WE HAVE WORKED ON THIS A LONG TIME.

I AM PROUD OF THE FOCUS ON OUR STUDENTS AND THE DEBT AND THE EFFICIENCIES.

THAT IS SOMETHING WE ARE ALL PROUD OF.

WITH THAT, I'M GOING TO ASK ALL THOSE IN FAVOR PLEASE INDICATE BY SAYING AYE.

>> AYE.

>> CHAIR: ANY OPPOSED?

>> NO.

>> NO.

>> CHAIR: ALL RIGHT.

I THINK THAT PASSED.

I APPRECIATE THE DEBATE AND DIFFERENCES AND THOUGHTS.

WE'LL CONTINUE TO TO DO GOOD WORK ON OUR CAMPUSES.

I KNOW WE WILL.

WITH THAT, WE MOVE TO THE COMMITTEE ON EDUCATION PLANNING, POLICIES AND PROGRAMS A REPORT FROM MR.

HUTCHENS.

>> THANK YOU, CHAIR MURPHY.

AT OUR IMMEDIATING YESTERDAY THE COMMITTEE ON EDUCATIONAL PLANNING, POLICIES AND PROGRAMS, APPROVED THE 24-25 ANNUAL REPORT, FOUR NEW ACADEMIC AGREE PROGRAM ESTABLISHMENTS AND THREE DISCONTINUATIONS OR CONSOLIDATIONS, ALL OF WHICH WERE APPROVED EARLIER THROUGH THE CONSENT AGENDA.

THE COMMITTEE APPROVED REVISIONS TO SECTION 700.7.1 OF THE UNC POLICY MANUAL POLICY ON MILITARY STUDENT SUCCESS AND 400.1.6 ON THE NORTH CAROLINA ACADEMIC CALENDAR CREDIT REQUIREMENTS TO BE CONSIDERED BY THE FULL BOARD CONSENT AGENDA NEXT MEETING.

THE COMMITTEE APPROVED THE COMPREHENSIVE ARTICULATION AGREEMENT DOCUMENTING INCREASES IN NORTH CAROLINA COMMUNITY COLLEGES TO SYSTEM SCHOOL TRANSFERS IN THE FALL OF 2024.

THE TOTAL WAS 10,049 TOTAL TRANSFERS.

THE FIRST UPTICK SINCE 2018 AND CONFIRMS THAT STUDENTS WHO COMPLETE THE BACHELOR OF ART OR ASSOCIATE SCIENCE BEFORE TRANSFER PERFORMED COMPARABLY TO NATIVE JUNIORS AT EACH INSTITUTION.

THE REPORT OUTLINES CONTINUED WORK ON TRANSFER EFFICIENCY, CREDIT MOBILITY AND GOVERNMENT ALIGNMENT.

NEXT, THE COMMITTEE CONSIDERED AND APPROVED REVISIONS TO THE COMPREHENSIVE ARTICULATION AGREEMENT THAT CLARIFY LANGUAGE AND POLICY SO INSTITUTIONS APPLY THE AGREEMENT CONSISTENTLY STATEWIDE, REFLECT RECOMMENDATIONS FROM THE 2025 BIANNUAL REVIEW AND ADDS APPENDICES TO FORMALIZE APPEALS TO THE ADVISORY COMMITTEE AND UPDATES THE TRANSFER COURSE LIST.

THE ANNUAL REPORT AND REVISIONS TO THE AGREEMENT WERE APPROVED BY THE FULL BOARD THROUGH THE CONSENT AGENDA EARLIER.

FINALLY, THE COMMITTEE RECEIVED AN OVERVIEW OF THE ANNUAL REPORTS ON ADMISSIONS TO THE UNC SYSTEM OF STUDENTS WHO GRADUATED FROM THE COOPERATIVE AND INNOVATIVE HIGH SCHOOL HEARD AN UPDATE ON THE REQUEST FOR PROPOSAL FOR THE STUDENT HEALTH INSURANCE PLAN FOR UNIVERSITY OF NORTH CAROLINA SYSTEM AND RECEIVED PRELIMINARY ENROLLMENT FIGURES, FALL OF 2025 FROM PRESIDENT HANS WHICH PRESERVES AND MERITS FURTHER COMMENT.

IT WAS OUTSTANDING NEWS.

WITH TOTAL ENROLLMENT IN THE UNC SYSTEM INCREASING 3.4% OVER 2024.

TOTAL ENROLLMENT SURPASSED 250,000 STUDENTS FOR THE FIRST TIME WITH THE UNC SYSTEM ALSO PASSING A MILESTONE OF 200,000 UNDERGRADUATE STUDENTS.

THIS IS A DIRECT RESULT OF THE BOARD AND ENTIRE UNC SYSTEM REMAINING FOCUSED ON AFFORDABLE, ACCESSIBLE AND HIGH QUALITY EDUCATION FOR ALL NORTH CAROLINIANS AS WE HAVE HEARD DISCUSSED EARLIER TODAY.

I WOULD NOW LIKE TO CALL ON GOVERNOR BYERS TO PROVIDE THE REPORT ON THE SUBCOMMITTEE OF LABORATORY SCHOOLS IF HE WOULD.

>> THANK YOU, GOVERNOR.

HAS ANYONE BESIDES MYSELF NOTICED HOW WELL THE MEETING IS FLOWING WITHOUT WILLIFORD BEING HERE?

JUST THOUGHT I WOULD BRING THAT UP.

THANK YOU, SENATOR.

THANK YOU, GOVERNOR HUTCHENS.

THE SUBCOMMITTEE MET JUNE 30TH TO RECEIVE AN UPDATE ON THE DISILLUSION OF NINER UNIVERSITY ELEMENTARY.

SUBCOMMITTEE MEMBERS HEARD FROM CHANCELLOR GABRIEL AS PRESENTED DETAILS OF THE MUTUAL TERMINAL AGREEMENT JUNE 30TH, 2025.

SUBCOMMITTEE VOTED TO APPROVE THE DISILLUSION PLAN AND ENSURED THE STUDENTS WOULD BE SUCCESSFULLY TRANSITIONED BACK TO CHARLOTTE MECKLENBURG SCHOOLS AS REQUIRED BY INSTITUTE.

WE ARE GRATEFUL TO THE COLLEGE OF EDUCATION, DEAN BUTLER, FACULTY AND STAFF AND MY FRIEND ANDREW KELLY FOR ALL OF THE WORK THAT HAD GONE INTO THAT SYSTEM.

IT IS WITH THAT, THAT I WILL CONCLUDE MY REMARKS, BUT ADD ONE FOOTNOTE SAYING THE LAB SCHOOLS REMIND ME MUCH -- HERE I GET INTO TROUBLE, MR.

PRESIDENT -- REMIND ME MUCH OF A MARRIAGE.

I KNOW A LITTLE BIT ABOUT THAT.

YOU HAVE TWO PARTNERS IN A MARRIAGE.

IF ONE GIVES 100% AND ONE GIVES LESS THAN 100%, SOMETIMES THEY DON'T WORK.

IN THIS CASE, CHANCELLOR, YOU AND THE FRIENDS AT NORTH CAROLINA CHARLOTTE HAVE GIVEN WELL OVER 100%.

I WILL CLOSE.

I WILL BE WRITTEN ABOUT UGLY THIS WEEK FOR MY COMMENT, BUT ONE SIDE DID NOT FULFILL THEIR COMMITMENT TO THE HIGHER EDUCATION TO THE STUDENTS OF CHARLOTTE MEC MECKLENBURG.

THANK YOU.

I HAVE OFFENDED PEOPLE, BUT I DO NOT CARE.

THEY CAN PUT ME IN A PENALTY BOX.

IT IS NICE NOT HAVING WILLIFORD, BY THE WAY.

>> THAT CONCLUDES OUR REMARKS, SUCH AS THEY ARE, MADAM CHAIR.

>> WAS THAT GOOD OR BAD?

>> CHAIR: I THINK YOU WENT OFF SCRIPT.

WE'LL NOW MOVE TO THE COMMITTEE ON UNIVERSITY PERSONNEL FROM GOVERNOR COWARD.

>> WE'LL HEAR FROM THE CHAIR OF STAFF ASSEMBLY FROM SHANA HILL, UNC CHAPEL HILL.

>> GOOD MORNING, CHAIR MURPHY.

GOVERNORS, CHANCELLORS, UNC SYSTEM LEADERS, PRESIDENT HANS AND UNC FAMILY.

THIS IS THE LAST TIME WE'LL CHAT AS MY ROLE AS CHAIR IS ENDING OCTOBER 24TH.

ALAN PORT WILL STEP IN.

I CAN ASSURE YOU, YOU WILL BE IN EXCELLENT HANDS.

I THANK YOU ALL FOR YOUR PASSION, YOUR COMMITMENT, YOUR UNWAVERS SUPPORT OF UNC SYSTEM STAFF EMPLOYEES ALL ACROSS THE STATE.

IT HAS BEEN A PRIVILEGE AND HONOR TO WORK WITH YOU THE LAST TWO YEARS.

I WILL END THE WAY I BEGAN WITH A PERSONAL POINT OF PRIVILEGE.

GREAT MINDS THINK ALIKE.

I GREW UP IN CHAPEL HILL AND HAVE ACCESS TO THE UNC MORE HEAD PLANETARIUM, CONCERT AT THE UNC MEM MEMORIAL HALL AND MANY EXPERIENCES AVAILABLE TO ME BECAUSE OF THE UNC SYSTEM.

I WAS FORTUNATE TO HAVE RECEIVED TWO DEGREES FROM UNC CHAPEL HILL AND HAVE ALSO HAD THE HONOR TO HAVE SERVED AS STAFF FOR ALMOST 20 YEARS.

WE TALK A LOT ABOUT STUDENTS RETURN ON INVESTMENT.

I AM YOUR RETURN ON INVESTMENT.

AS AN UNDERGRAD, I WAS CAST IN THE PRODUCTION OF THE GREEKS.

IN GREEK MYTHOLOGY, THERE WAS A COMPLEX RELATIONSHIP STEMMING FROM THE TROJAN WAR.

A TROJAN WOMAN CAPTURED BY ACHILLES BECAME HIS WAR PRIZE AND CONCUBINE.

THEIR RELATIONSHIP WAS COMPLICATED BY THE ACTIONS OF ANOTHER WHO TOOK HER FROM HIM.

THIS ACT SPARKED A MAJOR CONFLICT BETWEEN THE TWO GREEK HEROS, CAUSING ACHILLES TO WITHDRAW FROM BATTLE LEADING TO SIGNIFICANT CONSEQUENCES FOR THE GREEK ARMY.

AS I HAVE ALWAYS BEEN A COMPLICATED PERSON, I GUESS I WAS TYPECAST.

THIS REFLECTION BEGS THE QUESTION, DOES ART IMITATE LIFE, OR DOES LIFE IMITATE ART?

IS HIGHER ED EMBROILED IN A MODERN DAY TROJAN WAR?

WHO WILL BE THE HEROS?

WHO WILL BE THE PEACEMAKERS?

WHO WILL BE LEFT LIFELESS ON THE BATTLEFIELD?

OR, WILL THERE BE SOME DEVINE INTERVENTION THAT BRINGS TOGETHER THESE OPPOSING FORCES TO AVOID UNNECESSARY SUFFERING AND DEVASTATION?

HOW DOES THE STORY END?

THE WONDERFUL THING ABOUT STORY TELLING IS THAT GREAT STORYTELLERS CAN WRITE WHATEVER THEY CHOOSE, AND SO CAN WE.

WE CAN CHOOSE TO COME TOGETHER TO STRENGTHEN HIGHER EDUCATION WITH A TALE OF TRIUMPH, UNITY AND SERVICE.

THE EDUCATION OF OUR STUDENTS AND LEADERS OF TOMORROW.

OR WE CAN WRITE A DARK TRAGEDY WITH A PLETHORA OF CARNAGE AND PAIN.

THE CHOICE IS OURS.

SO, HOW DID THE STORY END?

AS THE GREEK WARRIORS DEPORT THE TROJAN SHORES TO RETURN TO THEIR HOMES, THEY ARE ACCOMPANIED BY HIM AND THE FEMALE WAR CAPTIVES.

AS DOES HE, I'M RETURNING TO THE HOME OF CAMPUS OF CHAPEL HILL.

MY HAIR HAVING GONE GRAY.

MY EYESIGHT FAILING.

MY PURPOSE SERVED.

I PASS THE BATON ON TO ALAN WHO NO DOUBT HELP YOU WRITE A STORY OFFER RE SI RESILIENCE AND TRIUMPH.

HAVE A GOOD CONTINUANCE AND FAREWELL.

BE GOOD AND KIND TO EACH OTHER.

MY DEEP LOVE TO YOU ALL.

[APPLAUSE] >> CHAIR: THAT WAS VERY PASSIONATE.

THANK YOU FOR YOUR SERVICE.

I CAN SEE MR.

MAKI BACK THERE.

YOU HAVE TO UP YOUR GAME NEXT MEETING.

>> HE HAS HIS DOG.

>> CHAIR: I SEE THE WHEELS TURNING.

GOVERNOR COWARD -- IS THAT -- MOVING TO THE COMMITTEE ON UNIVERSITY GOVERNANCE WITH MR.

MITCHELL.

>> FIRST, PRESENTED TO THE FULL BOARD THE ANNUAL REPORT THE WORK UNDERTAKEN 24-25.

THE COMMITTEE HEARD AN UPDATE FROM GENERAL COUNSEL ANDREW TRIPP ON FREE SPEECH AND EXPRESSION WITHIN THE UNIVERSITY OF NORTH CAROLINA.

THE REPORT FINDS CONSTITUENT INSTITUTIONS ARE PROMOTING FREE SPEECH AND EXPRESSION AND DISRUPTION AT SCHEDULED SPEAKING OR EVENTS HAVE BEEN MINIMAL OVER THE PAST YEAR.

NEXT, THE COMMITTEE APPROVED THE ANNUAL RESOLUTION ON SECURITY CLEARANCE REQUIREMENTS APPROVED BY THE FULL BOARD ON THE CONSENT AGENDA.

THIS IS REQUIRED BY THE DEPARTMENT OF DEFENSE, SO THE UNIVERSITY MAINTAINS SECURITY CLEARANCE IN SUPPORT OF DOCUMENTS.

CERTAIN MANAGEMENT OFFICIALS MUST OBTAIN AN INDIVIDUAL SECURITY CLEARANCE.

THIS RESOLUTION IS REQUIRED TO EXEMPT MEMBERS OF THE BOARD OF GOVERNORS AND SENIOR OFFICERS FROM THE REQUIREMENT TO OBTAIN INDIVIDUAL SECURITY CLEARANCES.

NEXT THE COMMITTEE VOTED ON APPOINTMENT TO THE BOARD OF TRUSTEES, THE APPOINTMENT BEFORE THE BOARD NOW TO APPOINT JULIA TOWNSEND TO FILL A PARTIAL TERM STARTING SEPTEMBER 18, 2025 AND ENDING JUNE 30, 2027.

ON BEHALF OF THE COMMITTEE OF GOVERNANCE, I MOVE TO NOMINATE HER TO THE BOA BOARD OF TRUSTEES, END BE JUNE 30TH, 2027.

>> CHAIR: MEMBERS OF THE BOARD.

YOU HAVE HEARD THE DISCUSSION.

IS THERE ANY DEBATE?

ALL IN FAVOR SAY AYE.

OPPOSE?

>> FINALLY, THE COMMITTEE HEARD ON SECTION 300.8.5, EQUALITY WITHIN THE UNIVERSITY OF NORTH CAROLINA.

THANK YOU, MADAM CHAIR.

THIS CONCLUDES MY REPORT.

>> CHAIR: THANK YOU.

GOVERNOR HOLTON, THE COMMITTEE ON AUDIT RISK MANAGEMENT AND COMPLIANCE.

>> THANK YOU, CHAIR MURPHY.

AT OUR MEETING YESTERDAY, THE COMMITTEE ON AUDIT RISK MANAGEMENT AND COMPLIANCE MOVED AND APPROVED A SERIES OF REPORTS AND RECEIVED UPDATES ON THE UPCOMING AUDIT PLANS, RISK MANAGEMENT ACTIVITIES AND CYBERSECURITY EVOLUTION.

FIRST, THE COMMITTEE APPROVED THE ANNUAL CAR MAC REPORT 24-25.

THIS INFORMATIONAL REPORT IS AVAILABLE TO THE BOARD THROUGH BOARD EFFECT.

NEXT, THE COMMITTEE APPROVED THE 25-26 UPDATES TO THE CAR MAC CHARTER.

THIS CHARTER INCLUDES THE INTERNAL AUDIT CHARTER.

JENNIFER MYERS, OUR CHIEF AUDIT OFFICER INCLUDED THE PLAN FOR THE SYSTEM OFFICE CONSISTENT WITH INDUSTRY STANDARDS AND BEST PRACTICES, THE INTERNAL AUDIT TEAM CONDUCTS A RISK ASSESSMENT AS PART OF THE PROCESS TO DEVELOP THE ANNUAL PLAN.

THE RISK ASSESSMENT INVOLVES IDENTIFYING AND RANKING RISKS BASED ON MANAGED INPUT, CURRENT INDUSTRY TRENDS, PRIOR AUDIT REPORTS, AND OTHER FACTORS.

THE RESULTS OF THE RISK-BASED PLAN ARE REQUIRED BY THE CHARTER AND THE 2A STANDARDS, THE COMMITTEE APPROVED FISCAL YEAR 26 INTERNAL AUDIT PLAN.

THAT PLAN FOR THE SYSTEM OFFICE AS WELL AS THE UPDATED CAR MAC CHARTER INCLUDING THE INTERNAL AUDIT CHARTER WERE INCLUDED ON THE CONSENT AGENDA APPROVED EARLIER TODAY.

JENNIFER MYERS ALSO PRESENTED THE FISCAL YEAR 25 YEAR END REPORT FROM INTERNAL AUDITS.

I THINK IT'S FAIR TO SAY FISCAL YEAR 25 WAS A SUCCESSFUL RETOOLING OR REBUILDING YEAR FOR THE INTERNAL AUDIT TEAM.

FIRST, JENNIFER CAME ONBOARD AS CHIEF AUDIT OFFICER SEPTEMBER OF LAST YEAR.

WE ONBOARDED A NEW AUDITOR AS WELL.

FINALLY, WE COMPLETELY REVAMPED AND IMPLEMENTED NEW AUDIT STANDARDS, YET WE COMPLETED 80% OF THE AUDITS PLANNED BEFORE THE REBUILD PROGRAM BEGAN WHICH IN AN ORDINARY YEAR IS EXEMPLORY.

IN THOSE AUDITS, SIX FINDINGS OCCURRED AND MANAGEMENT HAS ACCEPTED OR GUN OR COMPLETED CORRECTIVE ACTION ON EACH OF THE FINDINGS.

NEXT, BRYAN HECKLE DIRECTOR OF RISK MANAGEMENT PRESENTED THE RISK MANAGEMENT ANNUAL REPORT.

HE UPDATED US ON THE RISK IDENTIFIED BY THE UNC SYSTEM OFFICE IN COLLABORATION WITH OUR INSTITUTION.

HE REMINDED THE COMMITTEE OF THE PROCESS FLOW FOR IDENTIFYING, RANKING, CREATING MITIGATING STEPS AND COMMUNICATING THE RISKS.

THE UNC SYSTEM AND CONSTITUENT INSTITUTIONS HAVE DEMONSTRATED SIGNIFICANT GROWTH AND DEVELOPMENT IN THIS ENTERPRISE RISK MANAGEMENT PROGRAM AND PROCESS.

EACH UNIVERSITY NOW HAS DEDICATED STAFFING WITH RESPONSIBILITIES AND EVERYONE ACTIVELY CONTRIBUTES TO THE PROCESS IN A TRANSPARENT WAY, WHICH IS A FAR CRY FROM WHERE WE WERE FIVE OR SIX YEARS AGO.

WE NOW HAVE IN OUR OPINION, A ROBUST COMMITMENT TO MANAGING THE ENTERPRISE RISKS.

MORE OVER, THE UNIVERSITIES ARE INCREASINGLY LEVERAGING TECHNOLOGY AND OTHER RESOURCES TO ENHANCE THE EFFORTS.

THIS ADVANCED TOOLS AND SYSTEMS UNDER SCORES A PROACTIVE APPROACH TO ASSESSING AND MINIMIZING RISKS CONTRIBUTES TO FORWARD THINKING RISK MANAGEMENT FRAMEWORK.

NEXT, ALAN, OUR NEW CHIEF INFORMATION OFFICER OF THE UNC SYSTEM AND DR.

SHANNON TOUGH TUF, PRESENTED THE CYBERSECURITY EVOLUTION.

THEIR REPORT SHOWCASED KEY AREAS WHERE THE SYSTEM HAS DEPLOYED STRATEGIC INVESTMENTS, COLLABORATIVE DEFENSES AND ROBUST POL POLICIES AGAINST EVOLVING CY CYBERSECURITY THREATS.

THEY REVEALED THE PAST, PRESENT AND FUTURE.

LOOKING AHEAD, 25-26 IS UNDER WAY, INCLUDING EXPANDING INSTITUTIONS SPECIFIC PILOT PROJECTS THAT WILL BE HELPFUL TO THEMSELVES AND OTHERS, UTILIZING INDIVIDUAL CAMPUS EXPERTISE FOR THE BENEFIT OF THE SYSTEM AS A WHOLE, AND CONTINUING TO INSIST ON STRICT COMPLIANCE WITH THE MAJOR POLICY DIRECTIVES THAT PRESIDENT HANS ISSUED FOUR AND FIVE YEARS AGO.

WE HAVE COME A LONG WAY IN CYBERSECURITY.

THERE IS A LOT WAY TO GO.

I'M CONFIDENT WITH THIS TEAM AND CULTURE WE HAVE DEVELOPED, WE ARE IN A VERY GOOD POSITION, PARTICULARLY AS WE HAVE EMPHASIZED BEFORE, WITH RESPECT TO INSTITUTIONS UNDER RESOURCED OR HAVE FEWER RESOURCES, THAT'S ONE OF THE MAIN GOALS, HOW WE BEST UTILIZE SHARED SERVICE TO MAKE ACCESS TO THOSE AVAILABLE THROUGHOUT THE SYSTEM.

THEY HAVE DONE A GREAT JOB.

THANK YOU, CHAIR MURPHY.

THIS CONCLUDES MY REMARKS.

>> CHAIR: THANK YOU.

GOVERNOR FORD, THE COMMITTEE ON STRATEGIC INITIATIVES.

>> THANK YOU, SHARE.

YESTERDAY WE MET ON PROJECT KITTY HAWK AND ACHIEVEMENT CULTURE.

FIRST, THE COMMITTEE HEARD FROM DR.

ANDREW KELLY, PRESIDENT AND CEO OF PROJECT KITTY HAWK.

DR.

KELLY KICKED US AWP WITH AN UPDATE ABOUT THE FLIGHT PROGRAMS.

IT CELEBRATED THE LARGEST START SINCE INCEPTION.

TODAY, MORE THAN 2300 ARE BUILT LEARNERS IN NORTH CAROLINA HAVE BEEN SERVED BY ONE OF KITTY HAWK'S FLIGHT PROGRAM.

THEY'LL EXPAND FURTHER WITH PARTNERSHIPS WITH NORTH CAROLINA A AND T TO LAUNCH SEVEN FLIGHT PATH PROGRAMS.

WE HEARD HOW LESSONS LEARNED HAVE IDENTIFIED OPPORTUNITIES FOR UNIVERSITIES ACROSS THE SYSTEM TO STREAMLINE THE STUDENT EXPERIENCE, ESPECIALLY IN THE AREAS OF ADMISSIONS, TRANSCRIPT PROCESSING, FINANCIAL AID AND REGISTRATION.

WHILE PROJECT KITTY HAWK'S MISSION IS TO SERVE ONLINE ADULT LEARNERS, THE PARTNERSHIPS BETTER SERVE CAMPUS BASED STUDENTS.

THIS IS THE FOCUS ON PROJECT KITTY HAWK'S FASTER INITIATIVE, EFFORT AIMED AT ASSESSING PRACTICES AND POLICIES THAT SHAPE THE STUDENT EXPERIENCE.

THIS IS EXCITING WORK.

WE LOOK FORWARD TO SEEING ITS IMPACT ON ADDRESSING THE INS STRUCTURAL IMPEDIMENTS IN THE ADMINISTRATIVE PROCESSES.

NEXT THE COMMITTEE HEARD FROM SEAN ROBINSON WHO KICKED OFF ON ACHIEVEMENT CULTURE.

WE BEGAN WITH AN OVERVIEW OF WHEN ACHIEVEMENT REFORM HAS UNDUE HEALTH.

THAT IS WHEN STUDENTS FACE PERFECTIONISM AND WE HEARD HOW THIS IS BEGINNING AT AN EARLY AGE.

STUDENTS IN MIDDLE SCHOOL ARE ASSIGNED TO CAREER TRACTS, YOUNG PREPARING FOR COLLEGE AND IVY LEAGUE DREAMS.

OF COURSE, WE KNOW THE UNHEALTHY IMPACT OF SOCIAL MEDIA IN IMP PHIING AND NORMALIZING THE MESSAGES.

DR.

ROBERTSON PIVOTED TO WHAT CAN BE DONE TO COUNTERACT THE ACHIEVEMENT CULTURE MESSAGES, STUDENTS ARE ABSORBING, SUPPORTING MENTAL HEALTH EFFORTS EVEN BEFORE THEY ARRIVE TO THE CAMPUS.

ALSO, WE DISCUSSED HOW EXISTING COLLEGE ACCESS EFFORTS AT THE UNC SYSTEMS ARE WORKING TO EASE COLLEGE PRESSURES AMONG STUDENTS, AND FINALLY, WE DISCUSSED SOME OF THE CURRENT MENTAL HEALTH RESILIENT INITIATIVES TAKING PLACE TO SUPPORT HEALTHY HABITS FOR OUR STUDENTS.

I APPRECIATE THE THOUGHTFUL AND GENUINE CONVERSATION WE HAD ON THIS TOPIC, MADAM CHAIR, YESTERDAY.

I'M THANKFUL FOR YESTERDAY'S CONVERSATION LED BY DR.

ROBINSON AND THE COMMENTS MADE BY BOARD MEMBERS.

I LOOK FORWARD TO CONTINUED DIALOGUE IN UPCOMING MEETINGS.

THANK YOU, CHAIR MURPHY.

THIS CONCLUDES MY REMARKS.

>> THANK YOU.

>> MADAM CHAIR, MAY I TAKE A POINT OF PERSONAL PRIVILEGE HERE?

>> CHAIR: YES.

>> I HAD THE OPPORTUNITY TO WITNESS YESTERDAY'S MEETING OF CHAIRMAN FORD'S COMMITTEE.

CERTAINLY, THE INTRODUCTION OF THIS MENTAL HEALTH PIECE, I THINK IT IS GROUND BREAKING.

I THINK THE NORTH CAROLINA GENERAL ASSEMBLY AND OTHERS ACROSS OUR STATE INCLUDING K-12 WILL LOOK TO SEE HOW WE BEHAVE IN THIS REGARD.

I'M EXCITED ABOUT THE CONVERSATION THAT WILL UNFOLD, MADAM CHAIR.

AGAIN, THANK YOU FOR YOUR INTRODUCTION OF THIS INITIATIVE.

MR.

FORD, THANK YOU FOR PRESIDING OVER A FANTASTIC, INSIGHTFUL MEETING YESTERDAY, MR.

PRESIDENT, HANS, I KNOW THIS HAS BEEN IMPORTANT TO YOU FOR QUITE SOME TIME.

I'M EXCITED TO KNOW THAT THIS CONVERSATION IS NOW UNFOLDING AT THIS LEVEL.

THANK YOU, MADAM CHAIR.

>> THANK YOU.

OKAY.

WITH THAT, I'M GOING TO ASK SECRETARY BURRIS-FLOYD FOR THE CLOSED SESSION MOTION.

>> MADAM CHAIR, I MOVE THAT WE GO INTO CLOSED SESSION UNDER CHAPTER 143 OF THE GENERAL STATUTES, AND AS STATED IN THE PUBLICLY AVAILABLE MOTION.

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

IS THERE A SECOND?

IS THERE ANY DISCUSSION?

WITH ME?

ALL IN FAVOR SAY AYE.

ANY OPPOSED?

WE'LL MOVE INTO CLOSED SESSION.

>> WE ARE BACK IN OPEN SESSION.

I'LL CALL ON GOVERNOR COWARD.

>> THE COMMITTEE VOTED A TECHNICAL CHANGE TO THE OPTIONAL PROGRAM INVESTMENT TRUST TO BE OFFERED, THIS IS DESCRIBED IN MATERIAL.

I MOVE THAT THE BOARD VOTE TO APPROVE THE ADOPTION OF THE COLLECTIVE INVESTMENT TRUST AND AUTHORIZE THE PRESIDENT OR STAFF TO EXECUTE THE DOCUMENTS TO ENTER INTO THE ARRANGEMENT.

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

IT DOES NOT REQUIRE A SECOND.

QUESTIONSOR DEBATE?

ALL IN FAVOR SAY AYE.

OPPOSED?

>> ALSO IN CLOSED SESSION, APPROVED BUY OUTFOR STEVE NEW MARK AT UNIVERSITY OF NORTH CAROLINA CHAPEL HILL.

THE PROVISIONS ARE DESCRIBED IN DETAIL IN YOUR BOARD MATERIALS.

ON BEHALF OF THE COMMITTEE, I MOVE THAT THE BOARD VOTE FOR THE EMPLOYMENT AGREEMENT FOR MR.

STEVE NEW MARK.

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

IS THERE DISCUSSION?

ALL IN FAVOR, PLEASE SAY AYE?

OPPOSED?

>> ALSO, THE COMMITTEE VOTED TO ALLOW THE 11 MONTHS CHANCELLOR NORRIS SERVED TO BE CREATED TOWARD THE 12 MONTHS OF SERVICE REQUIRED TO PARTICIPATE IN THE ENHANCED EXECUTIVE INCENTIVE COMPENSATION PROGRAM.

I MOVE THAT THE BOARD MOVE TO PROMOTE THE 11 MONTHS OF INTERIM SERVICE CREDITED TOWARD THE 12 MONTH REQUIREMENT TO PARTICIPATE IN THE ENHANCED EXECUTIVE COMPENSATION PROGRAM MAKING HER ELIGIBLE TO RECEIVE A PERFORMANCE AWARD FOR THE FISCAL YEAR 24-25.

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

IS THERE DISCUSSION?

ALL IN FAVOR SAY AYE.

OPPOSED?

>> FINALLY, THE COMMITTEE VOTED FOR THE COMMITTEE OF PERSONNEL ANNUAL REPORT FOR SUBMISSION TO THE FULL BOARD.

THE REPORT IS AVAILABLE IN BOARD EFFECTSES.

>> A FEW REMINDER BEFORE WE ADJOURN.

TOMORROW SEVERAL WILL BE AT WINSTON SALEM CEREMONY FOR THE INSTALLATION CEREMONY.

OCTOBER 3RD, WE'LL BE AT APPALACHIAN STATE FOR HER CEREMONY.

I THANK THOSE THAT HAVE SIGNED UP TO PARTICIPATE.

VERY IMPORTANT, AND IT WILL BE A LOT OF FUN.

OCTOBER 15TH, WE'LL HOST THE 2025 BOARD OF TRUSTEES WORKSHOP IN RALEIGH.

LOOKS LIKE A GREAT TURNOUT FROM THE INSTITUTIONS.

I ENCOURAGE ALL OF OUR BOARD MEMBERS TO ATTEND.

MEREDITH WILL FOLLOW UP WITH ANYONE SHE HAS NOT HEARD FROM.

THE NEXT MEETING WILL BE THE DAY AFTER OCTOBER 16TH.

IT IS A SPECIAL ONE DAY MEETING OF THE BOARD AND WE'LL ALLOW YOU TO JOIN VIRTUALLY IF NEEDED.

WE HAVE THE BOARDROOM AVAILABLE FOR THOSE THAT ATTEND IN PERSON.

THAT CONCLUDES BUSINESS TODAY.

WITHOUT OBJECTION, WE STAND ADJOURNED.