Approved by PBAC, 20 November 1997
Don Farish brought the meeting to order at 8:10 AM and began by introducing new members to the PBAC including:
Don also indicated that Marty Ruddell, while not new to the Committee, was now serving as an AARCC representative substituting for Paul Crowley.
Larry Furukawa-Schlereth distributed the University's Response to the CFA Budget Analysis which was published by the CFA in May, 1997. Farish indicated that if members had questions regarding the Response or wished to discuss it in depth, the item could be placed on a future meeting agenda.
Farish then recognized Steve Wilson who presented the 1996-1997 Year-End Financial Report referencing a document that had been distributed with the Agenda. Specifically, Wilson noted that the following resources were being "rolled" from the respective Division's 1996-1997 Year-End Balance to that Division's 1997-1998 spending authorization:
|Area||96-97 Surplus or (Deficit)||Revenue Above Benchmark||Roll-Forward to 97-98|
|Executive Office||$ 53,572||$ 53,572|
Wilson provided detail regarding revenue in excess of the revenue-bench-mark by explaining the following financial information:
|Area||Benchmark for 1996-1997||Actual Achieved
|State University Fee||$ 9,774,000||$ 10,041,659||$ 267,659|
|Non-Resident Tuition||$ 610,000||$ 705,971||$ 95,971|
|Application Fee||$ 265,500||$ 397,715||$ 132,215|
|Enrollment Deposit||$ 24,000||$ 25,995||$ 1,995|
|Transcripts||$ 10,725||$ 6,252||$ -4,473|
|Library Fines||$ 48,000||$ 50,001||$ 2,001|
|Late Registration||$ 7,775||$ 17,125||$ 9,350|
|Returned Check Fee||$ 3,000||$ 2,280||$ -720|
|Miscellaneous Revenue||$ 25,000||$ 927||$ -24,073|
|Allowance for Bad Debt||$ -100,000||$ -0-||$ 100,000|
|TOTAL||$ 10,668,000||$ 11,247,925||$ 579,925|
Wilson concluded his report by indicating that surplus resources in the 1996-1997 University-Wide budget had been rolled to the 1997-1998 University Wide Reserve Account. The Reserve Balance as of October 1, 1997, he noted, stood at $65,951 as indicated below:
|University-Wide Roll Forward from 1996-1997||$113,322|
|1996-1997 Risk Pool Deductible Charges from CSU||$-17,371|
|Summer Orientation - 1x Augmentation||$-5,000|
|Film Series - 1x Augmentation||$-5,000|
|One Time Augmentation to Information Technology In Lieu of ATT Long Distance Savings||$-10,000|
|One Time Augmentation to University-Wide Revenue associated with lateness of GTE Mobilnet Lease execution||$-10,000|
|Reserve Balance Available||$65,951|
Schlereth then explained the 1997-1998 final general fund budget indicating that the budget incorporated recommendations made to Dr. Armiñana by the President's Budget Advisory Committee (PBAC). He noted that changes in the PBAC recommendation were the result of variances in PBAC planning parameters and the actual budget received from the CSU as reflected below:
|Risk Pool Premium Savings||$118,945|
|Plus Savings from Cola in Excess of Allocation||$5,000|
|Less: Loss of Inflationary Increase||$-81,000|
|: Perkins Loan Match||$-3,429|
|Difference in C/O and Campus Revenue Projections||$-29,200||$108,629|
|FY 97/98 General Fund Reserve||
The CSU final budget for SSU along with the PBAC recommendations to the President combine to produce the following budget appropriations for University-Wide, the Executive Office, Academic Affairs, Student Affairs and Administration and Finance:
|Administration and Finance||$6,341,887||$6,338,173|
The following data illustrates the detailed changes in each of the above base budgets.
|Salary Increase Pool||$1,650,000||(To Be Allocated)|
|Net Change in Employee Benefits||$120,325||*|
|CSU Internal Audit Charge||$6,400|
|Increase in Risk Pool -- General Fund||$181,055|
|Decrease in State University Grants||$-255,000|
|Increase in Perkins State Match||$3,429|
|Increase in Utilities -- New Buildings||$20,000|
|Elimination of Thermal Energy Storage Payment*||$-60,000||**|
|Elimination of Inter-fund Loan Debt Service**||$-200,000||***|
* Reflects (a) increases in benefits associated with the salary increase pool, (b) PBAC recommended reductions in employee benefits, and (c) the PBAC recommendation to eliminate one position in both Academic Affairs and the Executive Office.
** Per the PBAC recommendation, Thermal Energy Storage debt service will be financed by fully costing the various special funds for utility usage.
*** Per the PBAC recommendation, internal loan debt service will be financed by the University-Wide budget appropriation for space management which will liquidate during the 1997-1998 fiscal year.
PBAC Recommended Reduction
* Vacant Public Affairs position. Variance between $47,481 and actual PBAC recommendation will come from a reduction in Benefits in University-Wide.
** Per the PBAC recommendation, the Executive Office must fund its on-going costs associated with the CSEA/MSA Settlement. In addition, the Executive Office will be assessed its share of any shortage that occurs in the University-Wide budget.
|Transfer of Athletics to Student Affairs||$-210,388|
|Reduction in Information Technology - ATT||$- 20,000||*|
|PBAC Reduction||$- 64,344||**|
|New Resources, Enrollment Growth||$287,750|
|New Resources, Inflation||$81,000|
|New Resources, Revenue above the Base||$306,000||***|
* $10,000 will be provided to Information Technology on a one-time basis from the campus Reserve to permit full savings from the new ATT long distance contract to be realized.
** Vacant administrative position occupied by Bonnie Moody. Variance between $64,344 and actual PBAC recommendation to come from a reduction in Employee Benefits in University-Wide.
*** Represents a permanent change in the Academic Affairs bench-mark revenue from 1996-1997. New bench-marks are illustrated below:
|Item||1996-1997 Benchmark||1997-1998 Benchmark|
|State University Fee||$9,774,000||$9,853,200|
|Returned Check Fee||$3,000||$3,000|
|Less Allowance for Bad Debts||$-100,000||$-100,000|
Academic Affairs' benchmark revenue was increased a total of $306,000 of which $306,000 has been permanently allocated to the division's base expenditure budget. In accordance with campus financial policy, actual revenues collected above $10,974,000 will be allocated to Academic Affairs as an augmentation to their FY 98/99 expenditure budget. Schlereth noted that specific individual benchmarks would likely be adjusted by the Provost but indicated that these changes would not impact the total target benchmark revenue of $10,984,000.
**** Per the PBAC recommendation, Academic Affairs must fund its on-going costs associated with the CSEA/MSA Settlement. In addition, Academic Affairs will be assessed its share of any shortage that occurs in the University-Wide budget.
|Transfer of Athletics from Academic Affairs||$210,388|
|Health Center revenue adjustment||$-20,000|
* Per the PBAC recommendation, Student Affairs must fund its on-going costs associated with the CSEA/MSA Settlement. In addition, Student Affairs will be assessed its share of any shortage that occurs in the University-Wide budget.
|New Allocation for Deferred Maintenance||$151,000|
|Funds for New Buildings - Facilities||$47,596|
* In addition to this reduction, and consistent with the PBAC overall recommendation, Administration and Finance is also assigned financial responsibility for payment of the following items:
|Implementation Costs -- CSEA/MSA Settlement||$90,000|
|Back-Pay, General Fund CSEA/MSA Settlement||$378,000|
** Per the PBAC recommendation, Administration & Finance must fund its on-going costs associated with the CSEA/MSA settlement. In addition, Administration and Finance will be assessed its share of any shortage that occurs in the University-Wide Budget.
Schlereth concluded his report by indicating that the University's detailed Expenditure Plan for 1997-1998 (commonly known as the "black book") would be published in January, 1998.
Farish then facilitated a discussion regarding agenda topics for the Fall semester. Members indicated a desire to focus on a variety of issues during the Fall and early Spring including an estimate of future revenue projections, development of appropriate fiscal planning parameters, methodologies to establish financial priorities, mechanisms to insure Division autonomy, strategies to encourage accountability and analytical activities related to potential cost saving initiatives identified in Spring, 1997. It was agreed that the PBAC would begin by examining those concepts identified in 1996-1997 that could not be implemented in 1997-1998.
Members also agreed to meet two additional meeting times in Fall, 1997 - once in November and once in December on Thursday mornings between 8 and 10 AM. Schlereth agreed to coordinate specific meeting times.
There being no additional business, Farish adjourned the meeting at 9:50 AM.
Minutes prepared by Larry Furukawa-Schlereth
PBAC minutes 1997-1998