August 12 eBulletin

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Volume LXVI Number 1

July/August/September 2012


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The TACT Quarterly eBulletinJuly/August/September 2012 - Volume LXVI Number 1

In this quarters TACT newsletter...

A Cautionary Tale (With the Usual Bad Outcome)by Peter Hugill

Executive Directors Reportby Chuck Hempstead

2012-2013 Legislative Issues

Government Relations Fund

Annual ORP Report

TACT Fall Conference

Pictures from the Summer Board Meeting

Membership

Page 3

Page 5

Page 6

Page 7

Page 8

Page 11

Page 12

Page 13

TACT Board of Directors

2012-2013

President

Peter Hugill

Texas A&M University

President-Elect

Cindy Simpson, PhD

Houston Baptist University

VP of Financial Affairs

Frank Fair

Sam Houston State Universit

VP of Membership

Chad Rose


VP of Legislative Affairs

Mary Jo Garcia Biggs

Texas State University

Directors At Large

Gary Coulton

University of Texas -

San Antonio

Elizabeth Lewandowski

Midwestern State University

W Allen Martin

University of Texas - Tyler

Debra Price


E.L. Walter-Sullivan

Prairie View A&M University

Executive Director

Chuck Hempstead

(512) 873-7404

Texas Association of College Teachers

5750 Balcones Dr., Suite 201 Austin, Texas 78731

[email protected]

[p] (512) 873-7404

[f] (512) 873-7423

Copyright 2012 by the Texas Association of College Teachers. All rights reserved.

No part of this publication may be produced in any form without permission; Chuck Hempstead, Editor.

TACT
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Cover Page

Index

The PresidentsColumn

The ExecutiveDirectors Report

Legislative Issues

GRF Contributors

ORP Report

TACT FallConference

Summer BoardMeeting

Membership

Past eBulletins

CONTENTS

3

The TACT Quarterly eBulletinTexas Association of College TeachersDefending Academic FreedomTACT

Presidents Letter

by Peter HugillTACT President

A Cautionary Tale (With the Usual Bad Outcome)

ProbablythemostcomplexprobleminTexasHigherEducationatthemoment

isthelittle-commented-onsituationatTexasSouthmostCollegeandtheUniversityofTexasatBrownsville.ThestorycanbeputtogetherfromthematerialontheUT

Systemwebsite(http://www.utsystem.edu/utb-transition),butthatsanotherstory.

Inthelate1980sPanAmericanUniversitycreatedapartnershipwiththeUni-

versityofTexasSystem,anditscampusinBrownsvillebecameknownasTheUniver

sityofTexasPanAmericanatBrownsville.TexasSouthmostCollege,ajuniorcollege

fundedoutoflocaltaxationandbonds,andTheUniversityofTexas-PanAmericanat

BrownsvillethencombinedtheireducationalfunctionsasTheUniversityofTexasat

Brownsville/TexasSouthmostCollegeonSeptember1,1991.Thiscreatedthemodern

institution.Toconsummatethemarriageofthisoddcouple,theUTSystemadopted

thefacultyatTexasSouthmostCollegebyplacingthemontenuretrackwithintheUTSystem.

Theproblem,asintoomanymarriages,wasthattheoddcouplecouldnt

decideonwhoshouldown(andcontrol)whichbitsoftheestateeachbroughttothe

marriage.TexasSouthmostownedaveryprettycampusonthesiteoftheoldFort

Brown(fromwhichBrownsvilletakesitsname)withsomelovelyold,andlovingly

restored,buildingsthatdatebacktotheMexicanWar.Neitherpartnerbotheredto

drawpropertylinesandneitherpartnerseems(atleasttobeginwith)tohaveworried

aboutwhosemoneywaspayingforwhichnewbuildingorlovingrestoration.Nopre-

nup.Sofar,sogoodsoundslikemostmarriages.Whoneedsapre-nup?

Butthenonepartnerseemstohavestartedtoworryaboutthemoney.With-outmoreknowledgeofthecaseonehastobecautious,butitlooksratherasifsome

newlyelectedmembersoftheTexasSouthmostBoardstartedtoquestionwhereits

contributionstothemarriageweregoingandwhytheUTSystemwasntpayingits

fairshare(assumingitwasnt,whichImcertainlynotaboutto).Theusualuglyght

overmaritalnancesstartedsoundslikemostdivorces.Whythehelldidntweget

apre-nup?

Generallyspeaking,oneisanidiottogetinvolvedinotherpeoplesmarital

woes,butinthiscasewedohaveadogintheght.Asalwaysseemstobethecasein

anuglydivorce,therowisoverwhogetsthepropertyandwhogetsthekids.Astothe
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ORP Report

TACT FallConference

Summer BoardMeeting

Membership

Past eBulletins

CONTENTS

4


Presidents Message(contd.)

rst,whocaresservesbothofyouidiotsrightfornothavingapre-nup!Theprob-

lemisthekids,forwhichreadfacultyrememberthattheUTSystemadopted

thechildrenTexasSouthmostbroughttothemarriagebed.Thedivorceeffectively

endstenureforthefacultyatTexasSouthmostandthrowsthosefacultytothewolves,

althoughmanyaretakingvoluntaryretirement.Anhonorableuniversityrespectsthe

tenureofitsfacultyandseekstondalternativeemploymentforthemwhenproblems

arise.ImspeakinghereasmuchastheformerstateconferencepresidentofAAUPas

PresidentofTACT,buttheprotectionoftenureandfairtreatmentfortenuredfaculty

isandshouldbecentraltoourconcerns.ThereactionoftheUTRegentstothefaculty

atTexasSouthmostastheywalkawayfromthemarriageseemsremarkablylikewhat

thosesameRegentsdidatUTMBinGalvestonwheretheydeclaredafakenancial

emergencyafterHurricaneIkeanddismissedalargenumberoftenuredfaculty.That

gotUTMBcensuredbyAAUP.WhatshappeninghereisfarworseandtheRegents

donothavethepaperexcuseofascalcrisis,justamesstheygotthemselvesinto

whentheymarriedupwithTexasSouthmostbackin1991.

Iftheresamoraltothisverymessytale,itsnotjustthatthiswasafatally

awedmarriage,itsthatitwasfatallyawedbytheattempttomergetwoverydif-

ferentgovernancesystemstheelectedlocalboardofacommunitycollegeandthe

appointedboardofalargeandpowerfulsystem.Butthereisanotherconclusionthe

muchlargerandWAYwealthierpartneriswalkingawaywithoutabackwardglanceatitsadoptedchildrenandwithoutmakingtheslightestefforttoprovideforthem,its

onlyconcernbeingwiththeproperty.Thesystemofgovernanceofhighereducation

inthestateofTexas,andatUTinparticular,seemstohavelostanymoralcompass

itmightoncehavehadwithregardtopeopletheattitudeoftheUTRegentshas

becomepositivelyDickensianaretherenoworkhouses,aretherenoprisons?You

andIcantsolvethis,butwesureasheckshouldrememberit.


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ORP Report

TACT FallConference

Summer BoardMeeting

Membership

Past eBulletins

CONTENTS

5


Executive Directors Report

by Chuck HempsteadTACT Executive Director

Sowhowouldhavethought,afteralltheseyears,thatitwouldtakeanewsletterarticle

fromapersonaltrainertogetmethinkingthatitisnotNewYearsDaywhenourlifemost

changesannually,butSeptember1.

Teachersandstudentscertainlygetitback-to-schooloranewsemesterbutitapplies

toeveryone.Summervacationbehindusweatherchangeifwereluckyfootballseason,ocourse,inTexascareerconcentrationbeforetheholidaydistractionsmoretrafcregular

mealtimespeople return yourphone calls(your observationshere). Parents of students

couldllthispage.

Inmyworldofpolitics,itmeansprimaryandrun-offelectionsarebehindusandthe

combatants(Imean,candidates)areknownfortheNovembergeneralelection.AsIvewritten

before,thismeansprime-timecommunicationopportunities.Incumbentsareparticipatingin

InterimLegislativehearingsandcampaignersaregraspingforissueswithwhichtomakethei

mark,oratleastearnvotes.Sometimesrealandsometimescontrived,folksdependenton

votesandgeneralgoodwillaskyouropinion,orhavethemannerstoactinterestedif,likeme

youshareathoughtwiththemanyway.Asthoseofyouknowwhohaveparticipatedinour

legislativevisits,thatfocusdoesntalwaysexistduringaharriedlegislativesession.Anygroup(twoormore)offacultythatdoesntinviteacandidateorlegislatortotheircampusforcoffee

betweennowandDecemberismissingagoldenopportunity. Andyourstudentcouncilwil

doallthelogisticalwork.Pitythepoorlegislatorwhosatacrosstheairplaneaislefrommelast

weekwhatelsecouldshedo,jump?

This issue contains a page of our legislative priorities. Print it and foist it upon

somebodyanybody!Maybesomebodyliketheeditorofyourcampusnewspaperthose

folkscareabouttrivialitiessuchascampussafety,nancialsupportforhighereducation,and

graduatingpeoplewithskillstocompeteintheworkforce.Andifyouthinkyoucouldimprove

onourcurrentlistofpriorities,markyourcalendarforourAnnualFallConferenceinAustin

October26and27.Wellrevisethemanddistributethem.Ifyouhaventwalkedthehallsof

theCapitolwithus,youhavemissedanexperienceunlikeanyother.

Finally,amessagefromoursponsor.Ifyouvereadthisfar,youaremostlikelyaTACT

member andsubscriber toourEducatorsProfessionalLiability Insurance. Itsmembership

renewaltime(anotherof thoseFallannualsmentionedabove)andwerecountingonyouto

helpwiththemessagedistributiontothosewhoshould,buthavent,helpedyoucarrytheword.

Thankyouforyourcontinuingattentiontothebigpictureconcernsofyourprofession,andthe

futuresofyourstudentswhobenetfromyourconcerns.

HappyNewYear!


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TACT FallConference

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CONTENTS

6


Key Election Dates 2012Oct. 9Lastdaytoregistertovoteingeneralelection.

Oct. 22Firstdayofearlyvotingingeneralelection.

Oct. 30LastDaytoApplyforBallotbyMail

(Received,notpostmarked)

Nov. 2Lastdayofearlyvotingingeneralelection.

Nov. 6GeneralElection.

Clickhereformoreinformationonelections

Source:TexasSecretaryofStatesOfce

TACT Legislative Issues 2012-20131. Handguns on campuses: TACTopposeslegislationallowingindividualstocarryconcealedhandgunsoncollegecampuses.

2. Assessment:TACTsupportsfacultyrepresentationinthe

improvementofassessmentmeasurementsregardingfaculty

evaluationofteachingandscholarlyactivity.

3. Texas Retirement System.TACTsupportsmaintainingthesolvency

ofthesystem,currentbenets,andcost-of-livingincreases.TACT

opposesconversionofaguaranteedpensionplantoa401(k)-typeplan.

4. Faculty Salaries.TACTsupportsincreasingfacultysalariestoalign

withtheaverageoftheothertenmostpopulousstates.

5. Higher Education Funding.TACTsupportsmaintainingcurrent

fundinglevelsofTEXASGrants.
mailto:tact%40bizaustin.rr.com?subject=http://www.tact.org/ebulletinhttp://www.votetexas.gov/http://www.votetexas.gov/http://www.tact.org/ebulletinmailto:tact%40bizaustin.rr.com?subject=


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ORP Report

TACT FallConference

Summer BoardMeeting

Membership

Past eBulletins

CONTENTS

7


TheJamesM.Puckett,Ph.D.GovernmentRelationsFund

Havingalreadyslashedthehigher-educationbudget,withfurthercutstobediscussed,the2013

sessionoftheTexasLegislaturewillbepivotalforthefutureofhighereducationinthestate.

Ifyouareconcernedaboutsuchissuesashighereducationfunding,thesolvencyoftheTexas

RetirementSystem,facultyassessment,andfundinglevelsofTEXASGrants,contributetothe

Dr. James M. Puckett, Ph.D. Government Relations Fund (GRF)today.

Forover50years,TACThasbeenonthefrontlinesofhighereducationissuesinTexas.The

GRFassistsTACTwithakeycomponentofourmission:communicating TACTs legislative

agenda(viewablehere

)inordertoimproveTexashighereducation.

YourvoluntarycontributiontotheGRFallowsTACTtopresentitsmembersagendatokey

lawmakersandlegislativecommittees.TheGRFisneverusedforcandidatecontributions,only

foractivitiesthatincreaseawarenessofissuesconcerningfacultystatewide.Allexpenditures

areapprovedinadvancebyTACTsPresident,President-ElectandLegislativeCommittee

Chair.

ThankyouforstandingwithTACTtoimprovethequalityofhighereducationinTexas.

Click HeretoContribute

Thank you to the 2011-2012 contributors

JonathanCoopersmith

GaryCoulton

MaryDeShazo

FrankFair

ChuckHempstead

RussHigham

AndrewJamesHarveyD.Johnson

JoeKemble

DoreenKinkel

JohnPayton

DebraPrice

JohnRugh

CindySimpson

AndreaWilliamsTexasA&MChapter
mailto:tact%40bizaustin.rr.com?subject=http://www.tact.org/ebulletinhttps://hempsteadassociates.com/tact/node/add/grfhttp://www.tact.org/agendahttp://www.tact.org/contributehttp://www.tact.org/contributehttp://www.tact.org/agendahttps://hempsteadassociates.com/tact/node/add/grfhttp://www.tact.org/ebulletinmailto:tact%40bizaustin.rr.com?subject=


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CONTENTS

8


TEXAS ASSOCIATION

OF COLLEGE TEACHERS

TEXAS COMMUNITY COLLEGE

TEACHERS ASSOCIATION

2012 Analysis of Possibilitiesfor ORP/TDA

The Texas Optional Retirement Program (ORP)is designed for full time faculty at state supportedinstitutions of higher education. Created by the TexasLegislature in 1967, it is offered as an alternative toparticipation in the Teacher Retirement System ofTexas (TRS). Upon employment at an institution, anemployee is given 90 days to choose whether to investhis or her retirement fund in ORP or TRS. This choiceis irrevocable. Therefore, new employees are urged tomake this decision carefully.

The Teacher Retirement System is for all personswho choose not to be in ORP or are not eligible forORP. TRS is a dened benet program, in whichthe employees retirement benet is 2.3 percent ofaverage salary in the highest three years (ve years fornewer employees), multiplied by the number of yearsof participation. The vesting period for TRS is veyears. (If an employee does not vest, the states moniesare returned.) A Rule of 80 (when the combinationof age plus years of service entitles TRS members toretire without penalty) applies for those hired beforeSeptember 1, 2007, but change thereafter for new hires,imposing a minimum age of 60 for an unreducedannuity.

Both the employee and the state make monthlycontributions to TRS and ORP basedon percentages of the employees sal-ary. The percentages are established by

the Texas Legislature and may uctu-ate over time. Employee contributionrates from 09/01/201108/31/2013 are6.4 percent for TRS members and 6.65percent for ORP participants. The statecontribution rate for both plans is 6.0percent from 09/01/201108/31/2012.From 09/01/201208/31/2013, the statecontribution is 6.4 percent for TRS and6.0 percent for ORP.

For ORP, a dened contributionprogram, there is a contribution of upto 15.15 percent of salary placed into aretirement plan. This is the sum of theemployees contribution (6.65 percentof gross salary), local supplements, and

the states contribution (historically from 6.0 to 8.5percent). The retirement savings plan is self-directed,and the vesting period is one year and one day. The re-tirement benet is based on contributions and earningson those contributions.

A law passed in 2011 by the Texas Legislature al-lows institutions participating in the Optional Retire-ment Program to supplement the state contribution of6 percent of salary for all participants by 2.5 percent,regardless of when they were hired.

Whether the choice is ORP or TRS, most employ-ees are eligible to place additional pre-tax contribu-tions into a Tax Deferred Account (TDA). A TDA is asupplemental investment that may be made in additionto the mandatory program. TDAs receive no statecontribution.

An important federal overhaul of retirement ruleswas included in the Economic Growth and Tax ReliefReconciliation Act of 2001 (EGTRRA). This lawraised the limits of pre-tax contributions to deferredcompensation plans, and also provided for catch upcontributions for participants over 50. The law alsorepealed the Maximum Exclusion Allowance, a com-plex formula that limited the tax-advantaged treatment

of combined contributions to deferredcompensation programs. Higher educationemployees should seek the advice of a -nancial advisor to learn how any changesmay affect retirement planning.

Most companies have incorporatedTDA loan provisions into their policies orcustodial agreements under the Tax Equityand Fiscal Responsibility Act of 1982.The IRS and each rm have guidelinesthat must be followed or the loan couldbe considered a withdrawal or prematuredistribution and subject to tax and tenpercent penalties. For specic information,the investor should contact representativesof the company.

Mutual Funds

Mutual funds are available for ORP andTDA deposits. An investment company

Editors Note: Fothirty-eighth consecyear, this analysis hasmade available to memof the Texas AssociatiCollege Teachers anTexas Community CoTeachers Associati

assist in retirement ning. The staff of theassociations remain gful for the efforts of FL. Wright, who manthe project for most history, and to the prsionals of the ORP/companies who cooated in making this sepossible.

No investment decshould be based soledata reported in this asis. Past performancenot guarantee futurecess.

Convenient links

to the most

popular ORP

carriers in Texas

higher education

are now

available at

www.tact.org.

You May Also Download the ORP Report Here.
mailto:tact%40bizaustin.rr.com?subject=http://www.tact.org/ebulletinhttp://tact.org/http://tact.org/2012-ORP-TACT.pdfhttp://tact.org/http://tact.org/2012-ORP-TACT.pdfhttp://www.tact.org/ebulletinmailto:tact%40bizaustin.rr.com?subject=


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GRF Contributors

ORP Report

TACT FallConference

Summer BoardMeeting

Membership

Past eBulletins

CONTENTS

9

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CONTENTS

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Please join us!

TACTFall Conference

October 26-27, 2012

Crowne Plaza Hotel

Austin, Texas

Hotel Reservations: 1.800.227.6963

Participate in Friday morning legislative visits tothe Capitol. Support fellow colleagues as they

speak to current trends in higher education.

Network with members during evening social hour

and banquet. Vote on important TACT items.

Registration is only $40!Call or email to register!

[email protected]

512-873-7404

RSVP or cancel by

Friday, October 12, 2012

Texas Association of

College Teachers


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Pictures from theSummer Board Meeting

BackRow(LefttoRight):AllenMartin,ChuckHempstead,MaryJoGarciaBiggs,ChadRose

FrontRow(LefttoRight):FrankFair,E.L.Walter-Sullivan,CindySimpson,

PeterHugill,GaryCoulton

InpreparationfortheupcomingTexaslegislativesession,theBoardofDirectorshammerout

anagendaoftheissuesthatareimportanttoTACTmembers.

(notpictured:ElizabethLewandowski,whojoinedusviateleconference)


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CONTENTS


Visitwww.tact.org,andjoinTACTToday!

InthecurrentclimateofuncertaintyinTexassystemofhighereducation,itsimpor-tanttohavestrongadvocates.Since1948,theTexasAssociationofCollegeTeach-

ershasserveduniversityprofessorsintheareasofacademicfreedom,statistical

research,tenureimplementationandprotection,professionalstandards,andworking

conditions.Weinviteyoutotakeakeycareerstepbybecoming a member ofTACT todayfor$158(whichincludesprofessionalliabilityinsurance).

YourmembershipinTACTletsyourvoicebeheardbeyondyourclassroomand

campus.Wevigilantlymonitorallagenciesthataffectfacultymemberstoensure

yourinterestsarerepresented.OurFirstAlertemailsandquarterlyeBulletinspro-

videyouwithcurrentdevelopmentsoneducationalpublicpolicyissues,andweare

alwayssolicitingarticlesfromyou,ourmembers.Wealsomaintainaregularpres-

enceattheCapitol,wherewelobbypolicymakersonouryourtopconcerns.

AllTACTmembershipsincludeEducatorsProfessionalLiabilityInsurance(EPLI),

whichprovidesupto$2millionincoverage,pluslegalfeesfordamages.EPLIisan

importantbenetforourmembersthathasproveninvaluableovertheyears.

Yourmembershipisexpiringinjustafewshortmonths.

RenewyourTACTmembershiptoday!

VisitJoin TACTorrenewoverthephonebycalling(512)873-7404.

TACT Membership and EPLI: Renew Today!
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