March 16, 2000
MEMBERS PRESENT:
Bernie Goldstein Chair, Administrative Representative, Provost & Chief
Academic Officer Crystal Shrouf Student Representative Courtney Pastrick Student Representative Joe Latulippe Student Representative Callen Kurpinsky Student Representative Andy Merrifield Faculty Representative Mette Adams Student Representative Cristin Tuider Staff Representative Philip McGough Faculty Representative
MEMBERS ABSENT:
GUEST PRESENT THROUGHOUT:
Patrick Sullivan Reporter, SSU STAR
GUESTS PRESENT DURING ATHLETICS PROGRAM PRESENTATION:
Amanda Perdue Student Rand Link Vice President of Student Affairs Bill Fusco Director of Athletics
STAFF PRESENT:
Larry Furukawa-Schlereth Committee Staff, Chief Financial Officer Katie Pierce Committee Staff, Academic Affairs Budget Officer
MEETING AGENDA
I. Approval of the Agenda
II. Approval of the Minutes of Meeting 3/2/00
III. Review of Consumer Price Indices - L. Furukawa-Schlereth
IV. Presentation of Documents Distributed 3/2/00 - M. Adams
a. Fee Advisory Committee Meeting Requirementsb. Fee Advisory Committee Reporting Guidelines
c. Election Code: Campus Fee Referendum & Fee Referendum Appeal Board
V. Presentation on SSU Athletics Program - Rand Link and Bill Fusco
VI. IRA Budget Recommendation for 00/01 (Action)
VII. Adjourn
MATERIALS DISTRIBUTED
With Agenda Packet:
1. Minutes of Meeting 3/2/00
2. IRA Program Budgets for years 1994/95 through 1998/99 excerpted
from University Expenditure Plans
3. FAC Recommendations to President and President's replies for years
1994-95 through 1998/99
At the Meeting:
1. Letter from Barbara Kay (3/15/00) to B. Goldstein, A.
Merrifield and L. Furukawa- Schlereth
2. Letter from Lia Thompson-Clark to B. Goldstein (12/2/99)
3. Letter from L. Furukawa-Schlereth to Thompson-Clark (6/12/97)
4. Memo from President Armiñana to Patty Morandi (May 20,
1966)
5. Report from Sonoma State University Department of Intercollegiate
Athletics
6. Chief Financial Officer's Recommendations for 00/01 IRA
Funding
7. DRAFT, Fee Advisory Committee Meeting Requirements
8. DRAFT, Fee Advisory Committee Reporting Guidelines
Pizza and beverages were served and Chair Bernie Goldstein brought the meeting to order at 5:37 p.m.. Before a motion to approve the agenda Andy Merrifield distributed copies of a letter from Barbara Kay, Chair of the Parent Advisory Board for the Children's School. It was generally agreed that a response is not necessary since FAC is well aware of the concerns she expresses and restoration of funding to Children's School is a priority for the coming year.
I. Approval of the Agenda
It was Moved and Seconded and Passed (unanimously), to adopt the Agenda.
II. Approval of the Minutes of the Meeting of March 2, 2000
It was Moved and Seconded to approve the minutes of 3/2/99. Corrections were offered as follows: Remarks made by Mette Adams, recorded on page 5 in the paragraph beginning "Shrouf voiced...", were incorrectly attributed to Crystal Shrouf. Minutes were Approved as corrected (unanimously). Corrections will be made before the minutes are posted on the web.
III: Consumer Price Indices
Larry Furukawa-Schlereth started the discussion by providing background information. When Sauvignon Village was in the planning stages, FAC was consulted about selection of an appropriate price index for use in evaluating future price increases. It was agreed that the Higher Education Price Index (HEPI) would be used. However, HEPI is no longer maintained and Furukawa-Schlereth is seeking FAC's consultation in selection of an alternative price index. From among available indices, including Bay Area Housing Price Index and National Consumer Price Index, he recommends the General Greater Bay Area Consumer Price Index (GBACPI). He has consulted with Eric Carlson of Vice President of Student Affairs for the Associated Students and Carlson also thought this index was the best choice. Merrifield agreed that the GBACPI would best reflect price changes in our specific region . McGough asked whether on-campus housing rates would be adjusted automatically to reflect changes in GBACPI. Furukawa Schlereth explained that rates are not adjusted every year (for example, this year most rates are unchanged), however when rate changes are contemplated the comparative price index as well as the demands and constraints of the local housing market will be considered.
Joe Latulippe said he thinks it would be wise to evaluate the selection of the comparative price index from time-to-time. He hopes this consultation will not be the FAC's last opportunity for input on the subject. Goldstein confirmed that the topic can be agendized for discussion at anytime should the FAC wish.
No action on this item was required, but the committee endorsed selection of the GBACPI.
IV. Presentation of Documents Distributed 3/2/00
Mette Adams began by requesting that discussion of "Item c. Election Code" be removed from the agenda. When she distributed that document at the last meeting it was intended only to alert the committee to business before the Associated Students.
Item a. - Adams reported her observation, based on three years of service on FAC, that the committee meets few times in the fall and then becomes short of time to complete business in the spring semester, particularly since IRA matters can be very time consuming. She expressed her disappointment that FAC has yet to undertake a review of all course fees, although Executive Order 661 recommends that fee advisory committees advise campus presidents on that issue. She also said that more meetings in the fall would benefit new members by building familiarity with the committee's affairs.
She drew the group's attention to her proposal (incorporated herein) which calls for a specified schedule of meetings and distribution of minutes. Following Goldstein's reminder that Adams' presentation would constitute a first reading of the proposal, with action, agendized for next meeting, should the committee wish it. Through discussion the following amendments general changes to the proposal were suggested:
Staff was directed to develop a second draft incorporating the changes proposed for discussion at the 3/30 meeting.
b. Adams next invited the committee to discuss her proposal regarding Fee Advisory Committee Reporting Guidelines. She developed the proposal because of her concern that in the past few years, memos expressing FAC's recommendations regarding IRA allocations have been developed by staff or the Chair, and have gone forward to the President without review and final endorsement by full committee membership.
After clarifying that "an annual report of campus-based fee expenditure recommendations" in Section I refers to the document conveying FAC's recommendation for IRA allocations, the committee discussed the proposal. In Section II the words "reviewed and approved by all members of the FAC" raised concern since it implies both full attendance and unanimity would be required. Members were generally supportive of the suggestion that the "recommendations memo" be made available to the full committee.
Section III regarding signatures on the report was also discussed. Furukawa-Schlereth shared his view that it would not be appropriate to designate one constituency of the committee to co-sign with the Chair. Agreeing that this section arose from an issue of trust, which might not be resolved through structured procedures, the committee endorsed eliminating Section III.
There was support for Section IV, with wording modified to permit some flexibility in timing.
Staff was directed to develop a second draft expressing the concepts that: 1)the Chair shall prepare the annual memo transmitting IRA recommendations and the minutes of the meeting in which the recommendations were developed, 2) All committee members shall receive copies of the memo, 3) eliminate Section III, 4) Revise Section VI to make minutes available before the end of the school year.
V. Presentation on SSU Athletics Program
Rand Link introduced Amanda Purdue, a student active on the SSU Women's Volleyball team and Chair of the Student Athlete Advisory Committee, and Bill Fusco, Director of Athletics. He thanked the FAC for the opportunity to visit the meeting and provide information about SSU's Athletics Program. He spoke briefly about SSU's participation in the CCAA, which has been a step up in competition and about the positive, almost daily mention in the Press Democrat.
Fusco presented a document, "SSU Department of Intercollegiate Athletics; Program Overview" (incorporated herein), which presents the Department's Program Goals in several key areas. He elaborated upon the important and demanding aspects of compliance with NCAA and CCAA regulations, and Title IX gender equity requirements, and drew attention to the scholarship program and academic achievements of SSU's student athletes. He shared the Department's ambitions for upgrading athletic facilities, especially the soccer stadium, and about outreach to potential donors for funding such projects.
In response to questions about SSU's decision to participate in the CCAA Fusco explained that in 1997 only 8 members remained in SSU's conference (NCAC). When U.C. Davis moved to CCAA, three other universities including SSU followed suit, believing CCAA to be the best fit for our program.
Link drew attention to the financial reporting section of the Program Overview, pointing out that 10% of revenue generated by team activities is directed to support the general fund. Revenue generated from activity camps is increased this year over past years. In a comparison of operational budgets, SSU ranks 10th of 12 CSU campuses and yet competes very well with the larger better funded campuses. This Link credits to the abilities and dedication of our coaches and athletes.
Latulippe asked about the possibility of engaging SSU's Development Office more actively in generating funds for the Athletics Department. Both Link and Fusco thought it would be a fine idea, however Development Office staff is fully utilized in efforts to fund the music center project. They see significant potential in our community for fundraising, but to develop the potential requires investment of resources that are not available at this time. Link explained that the administrative staffing here at SSU is lean and the first priority has been to direct resources to ensuring compliance with regulations, following that building development efforts will be considered.
In discussion Adams and Link differed as to whether or not maintenance of a football team was specifically included in fee referendum language of 1994.
Adams pointed out that funding cost of living adjustments for employees in Athletics strains the IRA budget and, over a few years, may exceed the amount available unless funding to other current programs is reduced. She expressed her hopes that the campus community can find alternative funding to cover Athletics salary increases so that funding can be available to other activities that are also important to the student body.
Fusco agreed in principle but pointed out that Athletics is required to conform to bargaining unit agreements. Over the past few years it has been recommended by FAC that COLAs be funded from the general fund rather than IRA but President Armiñana has not accepted that recommendation.
Adams suggested that the IRA budget, particularly this issue of COLAs in Athletics, be aired before the PBAC. Furukawa-Schlereth noted that non-general fund budgets are not typically within the purview of PBAC. Also, several members of FAC serve on PBAC and can provide liaison between the two.
Latulippe asked how athletics determines whether a sport or team is viable and worthy of continued budgetary support. Fusco explained that decisions of that sort are somewhat driven by Title IX gender equity requirements. Participation in NCAA and CCAA requires that no fewer than four teams in both the men's division and the women's division be maintained. In order to maintain four mens' teams, given SSU's participation rates, all seven of the current women's teams must be maintained as well. He also pointed out that participation in given sports is cyclical, citing the example of the women's track team which a few years ago had only eleven members; now the team has 30 members and is developing winning records. Fusco reported that he gets many inquiries and even suggestions for adding sports, such as golf, football and water polo to our roster, but he feels it would be unwise to do so considering the state of our finances. Link confirmed that any new sport would have to be fully self-funded from new revenue sources and there are no prospects at this time.
To Latulippe's suggestion that an endowment be established to support operations, Fusco agreed that it would be a good idea but is not optimistic that funding will donated for that purpose.
Before closing the presentation Purdue and Fusco announced the appointment of John Stevenson to coach the women's volleyball team. Mr. Stevenson is renown for his coaching as well as on-the-court abilities, and is in the beach volleyball hall of fame.
VI. IRA Budget Recommendation
Shrouf distributed letters relating to funding for the Children's School.
Adams reported that Project Censored plans to submit a proposal for IRA funding even though there has not been a call for proposals. Goldstein expressed his concern that receiving their proposal would build false expectations for receiving funding when current projections indicate that no funding will be available.
Adams suggested that FAC call for proposals, even absent available funding, so that worthy ideas can be identified. She hopes such a process might focus attention on the IRA program funding and might motivate the campus community to develop alternative funding for Athletics Department COLAs. In view of Goldstein's concern, Adams suggested calling for concept papers rather than full proposals so that programs could declare their desire for funding and so that those concerned could become aware of opportunity trade-offs implied by continued funding of Athletics COLAs.
Furukawa-Schlereth reminded the committee that before a program can receive IRA funding its scope and purpose must be reviewed to make sure that it is eligible under the regulations. He expressed his view that it would be disrespectful to suggest that programs take the time and trouble to apply for eligibility and submit concept papers when funding is not available. Shrouf asked if there are any programs that have been declared eligible but are currently unfunded. Four such programs were recalled: Fairfield Osborn Preserve, Aquatics, Detour Sonoma and Project Censored.
No action was taken on this item. Further discussion will be on the agenda for the next meeting.
Indicating that he had several questions, Latulippe drew the committees attention to the IRA budget sheets excerpted from prior years' Expenditure Plans. He noted that in years 94/95-98/99 revenue sources included interest earnings, yet 99/00 did not include that element. Furukawa-Schlereth explained that before 99/00 interest earnings were pooled with other revenue and allocated by committee decision. Beginning in the current year, interest earnings are credited directly to the programs based on the unspent portion of their allocations. Adams noted that distribution of interest in that fashion effectively increases the allocations to the programs beyond the amount recommended by the FAC. Latulippe also asked about cost for risk management, which appears as an expense item for the first time in 98/99. Furukawa-Schlereth clarified that risk management costs had not been assessed to IRA funds in previous years. Latulippe wondered about "project roll-forward" which appears in some years but not others and which is sometimes shown as both a revenue and expense item. Furukawa-Schlereth explained that the item represents the fund balances of the various programs, that is allocations approved by FAC, distributed to the programs but unspent at the end of the year. These balances carry forward into the next year ensuring that programs receive the full allocation even though funds are not fully expended each year. The larger, programs with year-round operations like CPA and Athletics often have balances unexpended at June 30 because they are anticipating expenses in July and August, before the next round of allocations.
Noting that revenue available is offset by a reserve for bad debt, Latulippe wondered how funds recovered through collection of debt are restored to the IRA balance. Furukawa-Schlereth explained that funds collected accrue to the IRA fund balance reserve which he monitors as CFO. If reserve builds to a level exceeding normal prudent reserves, it may become available for distribution. In the meantime it provides a cushion against unexpected decline in revenues and also serves to meet cash flow needs. Latulippe observed that, since a reserve is budgeted each year, it may have become a significant accumulation. Furukawa-Schlereth agreed to review the reserve accumulation and provide a report at the next meeting. A detailed report of fund balances carrying forward into the 99/00 year was also requested. Furukawa-Schlereth agreed to provide such a report and also indicated that presentation of the carry forward will be revised in the 00/01 expenditure plan.
V. Adjournment
Being past the time stated for adjournment, Goldstein adjourned the meeting at 8:15 p.m.
Minutes respectfully submitted by,
Katie Pierce, Academic Affairs Budget Officer