December 6, 1999

SUBJECT: Resolution on Payroll Deductions

PROPOSED ACTION
That the Board of Trustees approve the resolution to authorize the College to fund federal withholding taxes for employees.

RATIONALE
The Datatel Administrative System incorrectly calculated federal withholding taxes for full-time faculty members for Spring '99 and Summer '99. The College has committed to funding the amount due for each affected employee. The employee will reimburse the College via monthly payroll deductions during January through May, July or August 2000. Article 3 Section 52 of the Texas Constitution provides that an institution can lend the credit of the institution to private individuals only when it serves a public purpose.

BUDGETARY CONSIDERATION
The college will advance $190,000. Investment interest lost will be approximately $3625. ACC will seek restitution from Datatel for the lost interest.

RESOURCE PERSONNEL
Gerry Tucker, Associate Vice President
Jerry Miller, Vice President
Ana M. "Cha" Guzmán, Executive Vice President
Myra McDaniel, Legal Counsel

ATTACHMENTS
Resolution

Respectfully Submitted By:

Ana M. "Cha" Guzmán, Executive Vice President
Administration, Institutional Advancement & Community Relations

Richard Fonté, President