President's Budget Advisory Committee

Minutes November 20, 1997

Approved by PBAC, 11 December 1997

Members Present:

Staff Present:

Members Absent:

Meeting Agenda

Approval of the Agenda

Don Farish brought the meeting to order at 8:10 AM and discussed the Agenda which was then approved by consensus.

Approval of the Minutes of October 2, 1997

Farish asked for a motion to approve the minutes of the October 2, 1997 meeting. A motion was made by Dennis Harris. A second was obtained from Katharyn Crabbe. The minutes were then approved unanimously with the addition of Harri's name to those absent from the October 2, 1997 meeting.

Presentation of Preliminary Financing Model for Fiscal 97-98

Farish reminded Members that during the Spring, 1997 semester, the PBAC had identified a number of cost saving initiatives that could not be fully analyzed in time for the opening of the 1997-1998 fiscal year. He noted that the PBAC had agreed to revisit these items in the Fall of 1998. Farish referenced material distributed in the Agenda packet (reproduced below) outlining ideas generated by the PBAC in Spring, 1997 which had been implemented as part of the 1997-1998 expenditure plan. He and Schlereth then provided a brief description of each of the following items:

  1. Rely more heavily on Housing funds as a method to generate new resources.
    Strategy being implemented by Administration and Finance as part of its budget reduction plan for 1997-1998. Housing also being utilized to off-set risk-pool increase, elimination of thermal energy debt service payment and natural gas price increase.
  2. Reduce or eliminate the inter-fund loan debt service.
    Strategy implemented as part of the PBAC 1997-1998 budget recommendation.
  3. Reduce the University Scholars/President's Discretionary Fund.
    Strategy implemented as part of the 1997-1998 budget cut recommended for Administration and Finance
  4. Increase prices in the Enterprises.
    Strategy being implemented as part of the 1997-1998 budget cut recommended for Administration and Finance
  5. Eliminate campus-based audited financial statements.
    Strategy abandoned by the PBAC as not viable.
  6. Utilize deferred maintenance resources for campus operations.
    Strategy abandoned by PBAC as being inconsistent with CSU policy.
  7. Eliminate the allocation for Teaching and Learning Productivity.
    Strategy abandoned by PBAC as being inconsistent with CSU policy.
  8. Utilize "revenue above the base".
    Strategy implemented as part of the 1997-1998 budget plan in Academic Affairs.
  9. Eliminate vacant positions.
    Strategy implemented as part of the 1997-1998 spending plan

Discussion then turned to the following initiatives which had not yet been fully analyzed and warranted discussion by the PBAC

1. Increase existing and/or create new course fees.

Farish indicated that the Fee Advisory Committee (FAC) did not believe that massive increases in course fees was appropriate. Farish noted that the President was in agreement with the FAC sentiment. Consequently, significant new revenue from this fund source was not seen as likely.

Bill Barnier noted that certain departments had been disadvantaged by the moratorium on new course fees established while the new Trustees Student Fee Policy was being developed.

Marty Ruddell pointed out that the increased use of readers represented a "hidden" new fee imposed on students.

2. Transfer mental health counselors to the Health Center budget.

Farish turned to Rand Link for comment on this item. Link noted that use of the Health Center Student Fee for payment of mental health counselors was inconsistent with a current CSU Executive Order. He also expressed his personal belief that it was appropriate for the University's general fund to provide resources for the mental health counseling function. Link also pointed out that discussion in this area would require input from the Student Health Advisory Committee.

Harris expressed concern over the lack of integration between mental and physical health. He also noted the current operating deficit in the Student Health Center budget.

Andy Merrifield questioned whether the proposed budget transfer could be made if the Executive Order in question were to be modified. Link indicated that it was possible but would require an increase in the Health Center Fee which would,, in turn, require a student referendum.

Neil Markley noted that the previous Associated Students administration held the belief that it might be possible to reengineer the current operation of the Health Center such that the mental health counselors could be absorbed without an increase in the Student Health Center Fee. Link noted that significant efforts in reengineering that already had taken place in the Health Center.

Harris followed on Markley's comment stressing his belief that the University needed to fully analyze the current method of Health Center operation with an eye toward reducing costs and expanding service, including service in mental health counseling.

Barnier questioned whether the Executive Order in question (EO 637) prohibited integration of mental and physical health. Link responded that it did not but did prohibit the payment of mental health counselors from the Health Center fee.

Schlereth indicated that Executive Orders could be changed and noted that if the PBAC felt it appropriate, he would bring the matter before the Chief Administrative and Business Officers (CABO) of the CSU.

3. Reduce general fund support to Athletics.

Farish asked Link to brief the Committee on this item. Link noted that Athletics faced several financial challenges including ongoing salary increases not funded via the Instructionally Related Activities program (IRA) as well as scholarship awards mandated by CCSA.

Harris questioned how the money saved by eliminating football was being utilized. Link noted that approximately $300,000 was realized. $200,000 was devoted to eliminating an operating deficit and $100,000 was used to finance additional sports.

4. Obtain more support for the University from the Sonoma State Enterprises

Schlereth indicated that Sonoma State Enterprises had net income of approximately $11,000 for the fiscal year ending June 30, 1997. He noted that he and Enterprise management were engaged in planning efforts to increase profit levels but also pointed to the need to replace the campus bookstore. He also described progress with the University Center and explained a new campus Task Force in this regard. He encouraged the PBAC to keep this particular initiative "on the list" for future discussion.

Adjournment

Given the time, Farish indicated that the PBAC would continue discussion of the remaining ideas in December and adjourned the meeting at 9:55 AM.

Minutes prepared by Larry Furukawa-Schlereth


PBAC minutes 1997-1998
Updated 2007-12-14
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