Approved by PBAC, October 4, 1995
The meeting was called to order by Don Farish at 2:40 PM.
Don indicated at the outset of the meeting that because of a desire to have the President's Budget Advisory Committee (PBAC) meet more regularly in 1995-1996 and that because of difficulty in coordinating meetings with the President's schedule, the President had delegated responsibility for chairing the Committee to the Provost and the Vice President for Administration and Finance.
Don further indicated that the President had agreed with the concept of expanding the membership of the PBAC in order that the thoughts of both the Academic Affairs Redesign Coordinating Committee (AARCC) and the Campus Reengineering Committee (CRC) could be incorporated into PBAC discussions. Consequently, Don commented that he and Vice-President Furukawa Schlereth believed that the appropriate method to accomplish this objective was to add to the PBAC, the AARCC/CRC Conference Committee. Don indicated that he and President Arminana would take the necessary steps with the Academic Senate to sanction the expansion of the PBAC in this fashion.
Turning to the Agenda, Don informed the PBAC that while final budget figures had not yet been received from the CSU, the University's financial staff had developed a preliminary projection of what new funds were likely to come to SSU in 1995-1996. As this information was being distributed by Furukawa-Schlereth, Bill Barnier requested that, for future meetings, appropriate handouts be distributed prior to the meeting time to permit Committee members the opportunity to study the data prior to discussion. Furukawa-Schlereth indicated that this would be done.
Furukawa-Schlereth took the Committee through the handout (reproduced below) reflecting first on the preliminary recommendation with respect to the utilization of existing general funds.
|Risk Management Pool||$132,000|
|Risk Management Deductible||$70,000|
|Addition to Utility Budget||$25,000|
|Plus Health Center Subsidy||$100,000|
|Systems Analyst, AFD||$67,500|
|Clerical Support, Development||$35,000|
Note that "Campus Reserve" includes allocations for the University Scholars Program and items deemed necessary by the President throughout the fiscal year.
Specifically, Furukawa-Schlereth indicated that employee benefits in 94-95 had generated a surplus some portion of which the financial staff believed would materialize again in 1995-1996. He also indicated that to date, three new expenses in the University-wide budget category had been identified. These new items included that CSU mandated Risk Management Pool along with its associated deductibles and the need to add $25,000 to campus utility budget. He also indicated that the campus could eliminate the University Reserve and finance growth in Public Affairs,, Development, the University Scholars Program and a Systems Analyst position in Administration and Finance (or committed expenses for management consultants) in this fashion. He did indicate, however, that that the absence of a Reserve could pose problems in 1995-1996 which might be offset by the presence of the Risk Management Pool.
Moving to the projection of new funds for SSU (outlined below) Furukawa-Schlereth stressed that the projection was (a) still preliminary and (b) lower than the CSU projection of new funds as a result of lower revenue receipt projections by the campus than that of the System. After discussion, the PBAC agreed by consensus that it was prudent to accept the campus-based revenue projection.
|New funds from CSU||$1,364,107|
|Federal Government Reimbursement||$45,000|
|TOTAL NEW FUNDS||$1,409,107|
|Less Mandated Payments|
|Federal Work Study||$45,000|
|Benefit Cost Increase||$32,901|
|Final Subsidy: Health Center||$50,000|
|NET NEW FUNDS TO SSU||$41,558|
|One-Time Funds, 94-95 Excess Fees||$56,443|
|One-Time Funds, Foundation Profit||$225,000|
|One-Time Funds, Lottery||$169,000|
|TOTAL NEW FUNDS||$492,001|
Note that "New Funds from CSU" differs from CSU budget projection due to lower revenue projections by SSU financial staff
Furukawa-Schlereth indicted that as result of legislative action and Governor approval, a proposed 10% increase in the State University Fee would not materialize in 1995-1996. In its place, a 3% increase in the general fund appropriation had been provided by the State. The net impact of this action was a loss to the CSU of about $10,000,000. When combined with a variety of new mandated costs, most notably, a compensation increase, very little new money would be available on campus in 1995-1996. Furukawa-Schlereth did indicate that while the end result of the budget cycle for 1995-1996 was disappointing, some additional new one-time money had been identified including one-time residual dollars in the Lottery Program along with excess fees from the 1994-1995 fiscal year and unanticipated projected profit of $225,000 from the Academic Foundation in 19941-1995. At the conclusion of his presentation, Furukawa-Schlereth moved that the PBAC recommend to the President that total new funds not necessary for mandated or committed expenses be allocated to the Provost and that any additional resources identified as the budget situation clarified also be moved to Academic Affairs. A second to the motion was made by Dennis Harris.
Farish spoke in favor of the motion citing pressing financial challenges in Academic Affairs identified by the Academic Affairs Redesign Coordinating Committee. Link raised the question of the whether the decentralized housing program might be used to help further support campus needs and suggested the need for a review of all campus funds. Farish commented that the future of role of the PBAC was to examine the campus budget in a more comprehensive fashion in order that all the needs of the campus could be understood and evaluated.
Cinquini called the question which was seconded by Harris. The Committee unanimously approved Furukawa-Schlereth's motion.
Furukawa-Schlereth then moved that the PBAC recommend to the President that the general fund support of $100,000 to the Student Health Center be terminated effective December 31 1995. The motion was seconded by Dennis Harris and discussion ensued on several points. including whether the Student Health Center fee would increase as a result of this action. The recently released Health Center Reengineering Report was cited as a mechanism for Student Affairs to consider in order to avoid a fee increase. Vice-President Link expressed concern about the motion citing the importance of maintaining general fund support to the Health Center given its very high student use and its popularity among the student body.
Terrill then moved that Furukawa-Schlereth's motion be tabled until information could be obtained that would clarify whether the Student Health Center fee would rise as a result of the removal of general fund support. Link seconded Terrill's motion. After considerable discussion focusing on the need for greater information about the impact of the loss of general fund support, the vote to table Furukawa-Schlereth's motion failed.
Returning to the Furukawa-Schlereth motion, the PBAC continued its discussion. Farish cited the need for resources to meet enrollment while Merrill indicated that he remained troubled by the need for more information regarding the impact to the Health Center. Terrill suggested that the presence of general fund support through 12-31-95 provided the Health Center with six months to restructure and, if necessary, return to the PBAC if any identified negative impact on students could not be minimized. Harris called the question and motion passed with no abstentions, 5 positive votes and 2 negative votes.
The meeting was then adjourned at 4:05 PM.
Minutes Prepared by L. Furukawa-Schlereth
PBAC minutes 1995-1996