President's Budget Advisory Committee

Minutes November 14, 1995

Approved by PBAC Unanimously, November 28, 1995

MEMBERS PRESENT

STAFF PRESENT

The meeting was called to order by Don Farish at 3:10 PM who asked for a motion to approve the minutes of October 31, 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 updated the PBAC on one item that had been removed from the University Needs List -- support for management of the Foundation Endowment,. He indicated that the Foundation Board of Directors would be asked to use a portion of Foundation Endowment interest earnings to finance this initiative. Schlereth then indicated that $620,000 of "new": money was now available for Academic Affairs in 1995-1996 as a result of the likely identification of $200,000 of general funds not previously allocated. Specifically, he indicated that he expected these resources to result from student fee revenue in excess of budget, savings in the Risk Management Deducible budget, and other savings in the University Wide budget categories.

Don Farish then distributed a revised list of unfunded Academic Affairs needs which totaled $2,120,000 as indicated below:

Unfunded Need, Revised
Item Amount
Enrollment Growth $500,000
Clerical upport $90,000
Admissions Development Director $100,000
Academic Budget Officer $50,000
Internship Director $30,000
Clerical Transfer, Cont. Ed $24,000
Curricular Innovation $50,000
Operating Expense, I.T. $100,000
Sick Leave Expense $21,000
IBM Computer Expense $30,000
Assigned Time, Waivers $75,000
Chair Support $600,000
Increase Equipment Budget $300,000
Faculty Development $150,000
TOTAL $2,120,000

Farish's handout also described a variety of options for budget reductions in Academic Affairs including:

He also described what remained as unfunded items for 1995-1996 in the general fund which included the following items:

Unfunded Items for 1995-1996
Division Item Amount
ACADEMIC
AFFAIRS
Enrollment Growth, Spring $230,000
Director: Financial Aid $50,000
Director: Admissions $50,000
Operating Expense, I.T. $100,000
Operating Expense, A&R $50,000
Sick Leave Expense $21,000
Clerical Transfer, Cont. Ed. $24,000
Program/Curricular Innovation $50,000
Academic Budget Officer $52,000
Internship Director $50,000
Assigned Time, Waivers $?
Chair Time Support $?
Increase Inst. Equipment $?
SUB-TOTAL $677,000
ADMINISTRATION
AND FINANCE
Foundation Endowment Mgt $230,000
AFD Systems Analyst $50,000
GAAP Audit Compliance $50,000
SUB-TOTAL $100,000
STUDENT
AFFAIRS
Clerical Support, Student Affairs $35,000
SUB-TOTAL $35,000
GRAND TOTAL   $844,000

Rand Link indicated that at a correction needed to be made for the Internship Coordinator noting that the amount should be $25,000 for 95-96 and $50,000 for subsequent years.

Schlereth indicated that he had provided information to the PBAC outlining which campuses had exceed enrollment targets for Fall, 1995. He also described the proposed Trustee Budget for 96-97. Specifically, Schlereth mentioned that there were no material changes to the proposal previously given to the PBAC however the latest budget information for 95-96 provided for a 4% compensation increase for employees and less money than previously projected for physical plant and academic/technological support.

Schlereth also indicated that the PBAC had received revised information given the SSU budget needs for 96-97 as well as a listing of general fund expenses that were not directly related to permanent or probationary employees.

Farish then distributed a report to the PBAC which offered recommendations that the Committee could consider as it developed a financial strategy for 95-96 and 96-97. Specifically, the Report suggested that the budget of Academic Affairs be increased via the transfer of certain Academic Affairs expenses to Housing and a decrease in the budget of Administration and Finance. In addition, the Report recommend an overall review of the base budget of each campus unit. Farish also distributed a chart which illustrated general fund expenses among 8 different CSU campuses. Farish specifically cited concern about the amount of money SSU spends on direct instruction vis-a-vis other campuses surveyed.

Steve Wilson asked for clarification on the impact of the new instructional technology fee on the campus financial needs. Farish indicated that these resources were needed to finance the various aspects of the assured access requirement. Tracy Terrill asked for clarification of the Admissions and Records consolidated enrollment management fee. Farish indicated that these resources were being used by Admissions and Records as part of that unit's operating base.

Discussion then turned to potential strategies to meet the unfunded financial needs of the campus, including the possibility of a differential state university fee similar to but less than the differential fee being discussed at CSU, SLO. Questions were raised regarding the elasticity of demand at SSU, and the issue of equity among the CSU campuses.

Rand Link pointed out to the PBAC that he did not wish the Committee to lose sight of the modest need in Student Affairs designed to improve campus life via the addition of clerical support in that office. Schlereth also pointed out the campus had a material concern with respect to GAAP audit compliance. Katharyn Crabbe reminded the PBAC that it could be useful to consider eliminating certain positions as they became vacant to generate savings. Bill Barnier asked about the status of the proposal to reduce the Administration and Finance budget presented at the last meeting. On this point, Farish indicated that the President had indicated that he was not open to reallocation between Division budgets but might consider utilization of the Housing Program for EMT faculty. Farish indicated that he and Schlereth were evaluating this possibility.

Charles Merrill asked if the unfunded Academic Affairs needs could be prioritized by the VPBAC. Farish indicated that this would be done for the November 28, 1995 meeting of the PBAC. Farish also indicated that he and Schlereth were developing a recommendation for the PBAC to consider regarding unfunded needs, including the possibility of the differential fee in 1997-1998.

The meeting was adjourned at 5 PM.

Minutes prepared by L. Furukawa-Schlereth


PBAC minutes 1995-1996
Updated 2007-12-14
afd.webcontact@sonoma.edu