President's Budget Advisory Committee

Minutes October 2, 1997

Approved by PBAC, 20 November 1997

Members Present:

• Don Farish, Co-Chair, Provost
• Larry Furukawa-Schlereth, Co-Chair, Vice-President, Administration and Finance
• Melinda Barnard, Past Chair of the Faculty
• Bill Barnier, Faculty
• Katharyn Crabbe, Associate-Vice President, Academic Affairs
• Debbie Gallagher, Staff Representative
• Rand Link, Vice-President for Student Affairs
• Neil Markley, Student (CRC)
• Andy Merrifield, Faculty (CRC)
• Jim Meyer, Vice-President for Development
• Sue Parker, Chair of the Faculty
• Aaron Pava, Student
• Marty Ruddell, Faculty (AARCC)
• Steve Wilson, CRC

Staff Present:

• Silvia Barajas, Academic Affairs Budget Officer
• Letitia Coate, University Controller
• Bill Ingels, University Treasurer

Members Absent:

• Les Adler, AARCC
• Larry Clark, AARCC
• Victor Garlin, CFA
• Dennis Harris, Senior Director, Planning & Analysis (CRC)
• Michael Ogg, Associated Students

Guests Present:

• Susan McKillop, Professor of Art

Meeting Agenda

• INTRODUCTION OF NEW MEMBERS
  • Sue Parker
  • Aaron Pava
  • Michael Ogg
• UNIVERSITY RESPONSE TO THE CFA BUDGET ANALYSIS
• 1996-1997 YEAR-END FINANCIAL REPORT
• 1997-1998 FINAL GENERAL FUND BUDGET
  • Variance Between PBAC Plan and Final Trustees Budget
  • Allocations to Divisions
  • Publication of 1997-1998 Expenditure Plan
• FALL SEMESTER MEETING TIMES AND SCHEDULE

Materials Distributed With Agenda

• University's Response to the CFA Budget Analysis
• Year-End Financial Report - 1996-1997
• General Fund Budget - 1997-1998

Introduction of New Members

Don Farish brought the meeting to order at 8:10 AM and began by introducing new members to the PBAC including:

• Sue Parker - Serving in her role as Chair of the Faculty
• Aaron Pava - Serving in his role as Associated Students President
• Michael Ogg - Serving in his role as Associated Students Treasurer

Don also indicated that Marty Ruddell, while not new to the Committee, was now serving as an AARCC representative substituting for Paul Crowley.

University Response to the CFA Budget Analysis

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.

1996-1997 Year-End Financial Report

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:

Wilson provided detail regarding revenue in excess of the revenue-bench-mark by explaining the following financial information:

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:

1997-1998 Final General Fund Budget

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:

1. Annually, the CSU calculates budget appropriations for financial aid and makes adjustments in the campus general fund appropriation. Two items, not known to the PBAC related to financial aid, were made by the CSU including:

   -a reduction of $255,000 in the State University Grants (SUG)

   The impact of reducing the SUG allocation results in an equivalent reduction to the annual amount available to award to SSU eligible students.

   -an increase of $3,429 in the Perkins State Match

   The impact from the match requirement to the Perkins loan program requires campus internal financing not previously planned for.

2. Working from the Trustee's original budget request, the PBAC anticipated an allocation of $178,000 for deferred maintenance. The final budget incorporated $151,000 for this purpose. The impact of this reduction will be a reduction in the number of deferred maintenance projects originally anticipated by the Division of Administration and Finance. Reductions in the deferred maintenance allocation is a direct result of a change in the PBAC anticipated salary increase pool from 3.4% to 4.0%.
3. The PBAC had anticipated a $488,500 allocation for the Assured Access Program. While the CSU reflects an allocation for technology at the System level, no allocation to any campus from this fund has yet been made. We are aware that the System-Wide technology allocation was reduced from $13.5 million to $8.5 million to assist in funding the increase in the salary pool. At the same time, we have received assurances that full funding will be forthcoming for this important campus priority.
4. The increase in the salary pool from 3.4% to 4.0% required the CSU to eliminate funding for inflationary growth, thought to be approximately $81,000. This new base resource was to be allocated to Academic Affairs.
5. The initial premium increase to the CSU risk pool was planned at $300,000. After distribution to self-supporting funds, the final impact to the general fund was a premium increase of $181,055. This resulted in a savings of $118,945 which has been distributed as follows:

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:

The following data illustrates the detailed changes in each of the above base budgets.

* 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.

* 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.

* $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:

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.

* 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.

* 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:

** 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.

Fall Semester Meeting Schedule and Agenda

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.

Adjournment

There being no additional business, Farish adjourned the meeting at 9:50 AM.

Minutes prepared by Larry Furukawa-Schlereth

PBAC minutes 1997-1998
Updated 2007-12-14
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