Approved as corrected by PBAC, October 31, 1995
The meeting was called to order by Don Farish at 3:10 PM who asked for a motion to approve the minutes of October 4, 1995 which were approved unanimously. Farish then turned to the agenda and asked Larry Furukakwa-Schlereth present the materials attached to the agenda packet.
Schlereth informed the PBAC that several revisions had been made to the University Needs list for fiscal 1995-1996 and 1996-1997. Specifically he commented that an expense for an employee assistance program was reflected for 96-97 as well as a proposed allocation for a 96-97 lecture series. He indicated that both items were a result of recent Cabinet discussion. He further explained that Administration and Finance had developed a projection for costs associated with complying with the Environmental Health and Safety audit and informed the PBAC that the campus had learned that the pay-for-performance component of the recently approved collective bargaining contracts would likely have an impact on both the payroll function and the Office of Faculty Affairs. Discussion ensued with respect to both the Employee Assistance Program and the pay-for-performance overhead issue. Corrections were also made to the University Needs list with respect to dollar figures for the Director of Admissions in 95-96, and the Internship Director in 95-96 and 96-97. Schlereth promised to provide a revised University Needs list at the next PBAC meeting which would incorporate these revisions. Farish also indicated that he would attempt to estimate expenditure needs in the area of chair time support, assigned time for the waiver program, the impact of pay-for-performance on Faculty Affairs and the increased financial need for instructional equipment.
Schlereth then explained the status of the University Reserve for 1995-1996. Of the $300,000 that had been budgeted in the 95-96 budget, he explained that $270,000 had already been encumbered to address issues unable to be financed in 94-95 but nevertheless were financial obligations of the campus. Several examples were cited included a vacation pay-off for an employee, an agreement to provide planning funds for the Art Building roof project, and a repayment of a loan to the Sonoma State Enterprises. Schlereth also indicated that $10,000 of the Reserve had been allocated to finance a pilot program in Employee Assistance for 95-96 and $20,000 was still available for a potential budget need in employee benefits resulting from a change in employer paid percentage to the employee retirement program.
Steve Wilson then presented the 94-95 Year-End Financial report highlighting balances at fiscal year end 1994-95 that would roll to the respective Divisions in 95-96. Detail was provided by Division and also by budget unit within Academic Affairs.
Schlereth then presented a staff recommendation with respect to how the University could finance a variety of unmet needs in 1995-1996. Specifically, the model recommended that one-time funds, currently available, (Foundation Profit and Lottery Resources) could be used to finance initiatives in Academic Affairs that were already underway including the Fall enrollment growth, clerical support in Academic Affairs, the Residence Life shortfall, and telephone and postage in Student Academic Services. To support enrollment growth necessary to meet the Spring enrollment target, the model recommended that any new funds that materialized should be allocated for this purpose. New funds were thought to likely include fees collected in excess of budget, any new funds from the CSU and unused resources in the risk management pool deductible. The model further suggested that the University engage in inter-fund borrowing activity up to $600,000 from the Student Health Center Maintenance Reserve and the Continuing Education Reserve to finance remaining needs in Academic Affairs for 95-96 once the campus had determined how these resources would be repaid and how they would be replaced in 1996-1997.
Discussion then ensued with respect to the staff recommendation focusing on the urgency to move forward immediately in order to permit enrollment planning and related staffing for the Spring semester and to address commitments that were being operationalized in Academic Affairs. Specific concerns were raised and discussed with respect to how funds borrowed in 1995-96 would be repaid and replaced in 1996-1997. Of particular concern was the strong belief that it was not appropriate to consider lay-off of permanent employees. After debate, the PBAC took action on the following two resolutions:
The President's Budget Advisory Committee recommends to the President that funds resulting from the Foundation in 1994-1995, $225,000, and one-time resources resulting from the final distribution of CSU lottery resources, $170,000, be allocated to Academic Affairs in 1995-1996 to finance the following expenses:
The President's Budget Advisory Committee also recommends to the President that any newly identified funds in 1995-1996 be allocated to Academic Affairs to meet the Spring enrollment target. Specifically, new resources are likely to include any surpluses in the risk management deductible, fees collected in excess of budget and other miscellaneous funds which may be allocated to SSU from CSU.
MOTION PASSED UNANIMOUSLY.
The President's Budget Advisory Committee recommends to the President that he authorize the Chief Financial Officer to initiate interfund borrowing not to exceed $600,000 from the consolidated Student Health Center Maintenance Reserve and the Continuing Education Reserve. Funds from this interfund borrowing are understood to be used to finance unfunded priorities in Academic Affairs. As a condition of the borrowing activity, the President's Budget Advisory Committee commits that it will present a balanced budget recommendation for fiscal 1996-1997 not later than April 30, 1996.
MOTION CARRIED: 12 YES 3 NO.
The meeting was adjourned at 5 PM.
Minutes prepared by L. Furukawa-Schlereth
PBAC minutes 1995-1996