President's Budget Advisory Committee

Minutes March 4, 1999

Members Present:

Staff Present:

Members Absent:

Guests Present:

Meeting Agenda

APPROVAL OF THE AGENDA

Bernie Goldstein brought the meeting to order at 8:10AM and asked for a motion to approve the Agenda. A motion was made by Katharyn Crabbe. A second was obtained from Rand Link. The motion was approved unanimously.

APPROVAL OF THE MINUTES

Goldstein asked for a motion to approve the minutes of the February 18, 1999 meeting. A motion was made by Bill Barnier. A second was obtained from Crabbe. Gloria Ogg indicated her comment on page 4 of the minutes should read: Ogg requested a breakdown of small and large class sizes, not class rooms. Barnier requested Larry Furukawa-Schlereth's response to his question on page 2 be added. Steve Orlick took this opportunity to pass out, on behalf of the Academic Senate, a document from the CSU Chancellor's Office comparing MPP statistics. The minutes were approved, as amended, with Parker and Garlin abstaining due to their absence at the 2-18-99 meeting.

REVISED SPRING MEETING SCHEDULE

Goldstein informed the Members of the cancellation of the March 31, 1999 meeting. He indicated this meeting would be rescheduled.

1998-1999 EXPENDITURE PLAN

Larry Schlereth introduced this topic and noted everyone on the Committee should have a copy of the 1998-1999 Expenditure Plan. Schlereth made the following comments regarding the expenditure plan:

Ogg asked if any other campuses have published and distributed an Expenditure Plan. Schlereth believes we are the only campus which provides information this detailed and comprehensive. Steve Wilson agreed with Schlereth's assessment.

CMS UPDATE

Schlereth briefed the Members on the progress of the Common Management System initiative. Schlereth indicated the system has begun in earnest to develop the prototype for the human resources module and parts of the finance module. Wilson will be spearheading much of the systemwide development of the finance module. The campus community module of CMS is being developed and input is being solicited. Schlereth noted the Peoplesoft demonstration will be tomorrow in Warren Auditorium and encouraged Members to ask the vendor candid questions. Schlereth informed the Members he and Goldstein are talking to Tony Apolone about establishing a CMS training site at Sonoma. This project could produce a nice revenue stream for Sonoma from other institutions and State agencies. Cara Puccio asked the Committee if any one had received the CSSA position brief on CMS. Schlereth indicated he had, and Goldstein added he would like a copy.

LAND ACQUISITION UPDATE

Schlereth updated the Members on land acquisition. The Henderson property has been acquired, and a historical analysis is being completed before the structures on the property are demolished. Negotiations continue on the Anderson parcel.

LARGE COURSE SECTIONS

Goldstein introduced the item and explained Rose Bruce was at a conference and could not attend the meeting to present this item. Sue Parker, who requested this analysis, expressed her appreciation for the information and asked that absolute sums be added for clarity. Discussion ensued on the item. Orlick asked if the Members could receive the information for review before the meeting. Schlereth explained that this is an information item only, but it could be agendized for discussion at a later date. Goldstein asked if there were objections to agendizing this item for a later meeting. No objections were made. However Bill Barnier asked that the VPBAC have a chance to review the item before being agendized.

NEW UNIVERSITY-WIDE ITEMS: 1999-2000

Schlereth presented the following information:

NEW UNIVERSITY-WIDE ITEMS
1999-2000
Item Detail Amount
CSU Risk Pool Increase Mandated CSU Item. Relates to the System-Wide self-insurance program for general liability, workers compensation, industrial disability leaves and non-industrial disability leaves. $260,000
Common Management Systems Mandated CSU Item. Relates to the second year of a multi-year financial plan discussed with PBAC. $120,000
Hope Scholarship Reporting Mandated Federal Item. Relates to providing each student with an IRS report reflecting payments made for instruction $ 20,000
YEAR 2000 Compliance Un-avoidable expense. Relates to replacing and repairing certain portions of the campus infrastructure primarily in Information Technology, and the conversion of the campus network from Localtalk to Ethernet. Project costs estimated at $1,500,000 and exclude any Year 2000 issues in the physical plant. Financed with a five year interfund loan from the CSU at 6%. Annual debt service projected at $350,000. Alternate funding being explored and may result in the elimination of this item. $350,000
Schulz Center Warm Shell Relates to the completion of the third floor warm-shell space in the Schuilz Center brought about by a construction bid higher than budget. Also includes resources to finance moving the Library and Information Technology from Salazar Hall. Total project cost estimated at $2,500,000, financed with a ten year interfund loan from the CSU at 6%. Annual debt service projected at $335,000. Delay in funding this item will increase project costs by at least $1,000,000 and result in an unfinished, unusable third floor in the Schulz Center $335,000
Un-Identified CSU Items Relates to the probability of additional mandates from the CSU likely to be identified between now and the issuance of the final budget. $150,000 is an estimate only and could be considerably higher depending on the outcome of collective bargining and CSU strategies to fund technology needs in the wake of CETI. One item has already been identified and relates to the acquisition of property insurance for non-bond financed campus buildings. For SSU, this initiative, should it be launched, could range between $75,000 and $150,000 annually. $150,000
University Reserve Relates to the lack of a University Reserve and historical data illustraing Reserve expenditures of approximately $300,000 annually. Failure to fund this item "off the top" will require assessing each Division for Reserve expenditures as items are approved for funding from this budget annually. $300,000
CMS General Fund One-Time Assessments Relates to one-time annual assessments for CMS for indiviudal General Fund units. One-Time assessments will be required in each of the next six fiscal years. Failure to fund this item "off the top" will require assessing each Division unit for CMS as was done in fiscal 98-99 $118,000

NEW UNIVERSITY-WIDE ITEMS
1999-2000
SUMMARY
Item Amount
CSU Risk Pool Increase $ 260,000
Common Management Systems $ 120,000
Hope Scholarship Reporting $ 20,000
YEAR 2000 Compliance $ 350,000
Schulz Center Warm Shell $ 335,000
Un-Identified CSU Items $ 150,000
University Reserve $ 300,000
CMS General Fund One-Time Assessments $ 118,000
SUB-TOTAL $1,653,000
Less Projected New Discretionary Dollars from CSU $ -335,000
TOTAL $1,318,000

Puccio asked if an explanation could be issued to help students better understand the Hope Scholarship. Ogg explained that information was sent with the reporting statements which should help students understand the scholarship. Schlereth noted he would explore this.

Parker asked if an empty Information Center third floor would affect access to the library collection. Schlereth said access would not be an issue at present. However when new volumes arrive in the future, this could be a problem. Victor Garlin asked if there was an alternative to state funding the warm shell. Schlereth noted we could go to donors and ask to use the endowment. However this would be a risky proposition, and fund raising could be difficult. Jim Meyer explained his fund raising effort and current situation. Garlin explained that the campus paying $350,000 for ten years would be difficult to swallow. He feels we should take another look at our fundraising. Garlin added, while he feels the third floor of the IT Center should be completed, he cannot agree with the funding model. Barnier asked if there were any ways to creatively fund the third floor and would like to see more information on our efforts to date before making a decision. Meyer indicated the fundraising folks have looked at this from every angle, and he is having a hard time coming up with additional funds.

Orlick commented other campuses do not seem to be having a budget crisis like we have. Schlereth indicated many other campuses have used enrollment growth to receive additional dollars, but our additional enrollment remains low. Further, other campuses may be using roll forward money and may not have calculated the true cost of CMS yet. Goldstein noted our communication to the campus has brought these problems to light. Other campuses may not be as open in their communication.

Garlin asked to see the direct and indirect costs of the Technology High School. Schlereth noted the location of these figures in the Expenditure Plan and added all indirect costs are being reimbursed to the campus.

DISCUSSION OF THE UNIVERSITY RESERVE

Due to time, Goldstein asked to postpone this item until the next meeting. No objections were made.

ADJOURNMENT

Goldstein adjourned the meeting at 9:52 AM.

Minutes prepared by Neil Markley


PBAC minutes 1998-1999
Updated 2007-12-14
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