President's Budget Advisory Committee

Minutes November 28, 1995

Approved Unanimously February 27, 1996

MEMBERS PRESENT

STAFF PRESENT

The meeting was called to order by Don Farish at 3:10 PM who asked for a motion to approve the minutes of November 14, 1995 which were approved unanimously. Farish then turned to the agenda and asked Larry Furukakwa-Schlereth to present the materials attached to the agenda packet.

Schlereth described the status of the 1995-1996 general fund budget by indicating that $869,442 has been identified for allocation to Academic Affairs in 1995-1996 as indicated below:

ACADEMIC AFFAIRS ALLOCATION
One-Time Lottery Funds $170,000
94-95 Foundation Profit $225,000
Newly Identified Funds $200,000
One-Time Foundation Fund Balance $200,000
One-Time Contribution from AFD $25,000
CSU, Scholarly Activities $49,442
TOTAL $869,442

In the course of discussion, it was determined that the $49,442 from the CSU had already been allocated and was therefore not available for discretionary expenses in Academic Affairs. Consequently, $820,000 was actually available for allocation by Academic Affairs in 1995 - 1996.

Schlereth also described what he termed "marginal new resources for 1996-1997" with a projected allocation plan as reflected below:

Marginal new resources for 1996-1997
Foundation Profit $200,000
Newly Identified Funds $200,000
TOTAL $400,000
   
To Finance:   
Curricular Innovation $50,000
Faculty Development $150,000
Admissions Director $100,000
OEE, Information Tech. $100,000
TOTAL $400,000
   
TOTAL $ 200,000

Schlereth then outlined for the PBAC what financial needs remained unfinanced for 1996 and beyond including:

Remaining Unfinanced Needs
UNIVERSITY
WIDE
Lecture Series $15,000
Gender Equity, Athletics $140,000
Baseball Field Repair $80,000
Campus Signage $300,000
Classroom Renovations $125,000
EXECUTIVE
OFFICE
Executive Office, OEE $50,000
Director, Foundation Relations $75,000
ACADEMIC
AFFAIRS
Enrollment Growth $500,000
SAS Base OEE $40,000
Academic Affairs Clericals $90,000
Academic Budget Officer $52,000
Assigned Time, Waivers $75,000
IBM Computer Purchase $30,000
Enhanced Instructional Equipment $300,000
Chair Time Support $600,000
ADMINISTRATION
AND FINANCE
4% Salary Increase, Ind. Ops $28,540
Audit Compliance $300,000
Campus Wide Staff Development $100,000
University Center/Bookstore $1,200,000
Housing Growth $300,000
Annual Administrative Equipment $100,000
Vehicle Replacements $75,000
STUDENT
AFFAIRS
Clerical Support, Student Affairs $35,000
TOTAL   $4,610,540


Finally, Schlereth discussed the parameters that had been established either by the President or the PBAC in developing a financial plan to meet unmet needs including:

  1. No lay-off of permanent and probationary employees.
  2. Interfund borrowing not permitted without identified repayment source.
  3. No reallocation between base budgets.
  4. Must adhere to CSU financial policy, audit requirements and relevant bond covenants.
  5. On-going expenses require an on-going fund source - One Time Bridge financing also a possibility.

Farish then distributed a handout that described the outcome of the Vice-President for Academic Affairs Budget Advisory Committee meeting held on November 28, 1995. The handout, reproduced below, illustrated how Academic Affairs planned to utilize its new funds in 1995-1996 as well as what needs remained unfunded for the 95-96 fiscal year.

FUND SOURCES
One-Time Lottery Funds $170,000
94-95 Foundation Profit $225,000
Newly Identified Funds $200,000
One-Time Foundation Fund Balance $200,000
One-Time Contribution from AFD $25,000
CSU, Scholarly Activities $49,442
TOTAL $869,442

FUND USES
Enrollment Growth $500,000
New Clericals $90,000
SAS Base Allocation $40,000
I.T. OEE and Staff $100,000
IBM Computer Purchase $30,000
Admissions Director, 6 Months $50,000
Curricular Innovation $50,000
TOTAL $860,000

UNFUNDED NEEDS
Academic Budget Officer $60,000
Internship Director $45,000
Sick Time, A&H $21,000
Clerical Transfer, Cont Ed $24,000
Assigned Time, Waivers $75,000
Instructional Equipment $300,000
Chair Support $600,000
Faculty Development $150,000
TOTAL $1,275,000

Clarification was sought with respect to how Academic Affairs would meet a budget gap in 95-96 resulting from the already committed expenditures associated with the CSU allocation for scholarly activity. Farish and Schlereth indicated that they would work to resolve this problem.

Discussion then ensued. Specifically, questions were raised about (1) How would enrollment growth be financed in 1996-1997 (2) How would operating expense needs be met in admissions given the creation of a new admissions development employee and their need for operating funds (3) the rationale for additional resources for Information Technology and (4) the implication of not financing the unmet needs in Administration and Finance and Student Affairs.

Farish indicated that a variety of strategies were being explored by himself and Schlereth related to financing enrollment growth in 96-97. These included the very real possibility of using bridge financing for this purpose in 96-97 which would permit the campus time to plan for a permanent fund source. Permanent fund sources being analyzed included a differential State University Fee, increased appropriations from the State, enhanced development efforts and the recruitment of more international students and domestic students outside of California. Farish and Schlereth both indicated that they anticipated discussion by the PBAC on these topics to take place during the Spring semester.

Operating expense needs in Admissions were projected to be met via the use of resources from the consolidated enrollment fee in excess of budget projections. Farish indicated that additional resources were needed for Information Technology to help offset costs associated with the Assured Access Computer Requirement which were higher than originally anticipated.

Schlereth indicated that he was most concerned about identifying resources associated with the audit compliance and that he would work with the Campus Reengineering Committee in this regard. Rand Link also indicated that he felt strongly that clerical support for the Office of Campus Life was extremely important given the campus's commitment to this area.

After additional discussion, the following motion was made by Charles Merrill. A second to the motion was made by Steve Wilson.

The President's Budget Advisory Committee recommends to the President that $820,000 from the fund sources identified below be allocated to Academic Affairs to meet budget needs in Academic Affairs totaling approximately $820,000 also indicated below:

FUND SOURCES
One-Time Lottery Funds $170,000
94-95 Foundation Profit $225,000
Newly Identified Funds $200,000
One-Time Foundation Fund Balance $200,000
One-Time Contribution from AFD $25,000
TOTAL $820,000

FUND USES
Enrollment Growth $500,000
New Clericals $90,000
SAS Base Allocation $40,000
I.T. OEE and Staff $100,000
IBM Computer Purchase $30,000
Admissions Director, 6 Months $50,000
Curricular Innovation $50,000
TOTAL $860,000

The motion was approved unanimously.

Merrill then made the following second motion:

The President's Budget Advisory Committee recommends to the President that no search for a permanent position be permitted to reach the stage where candidates are invited for oncampus interviews unless a permanent fund sources for the position in question had been identified.

Discussion on the motion ensued. Committee members pointed out that frequently searches are initiated on a "pending budget approval" basis and that to implement the recommendation would seriously hamper the operations of the campus. Schlereth also indicated that campus policy required a fund source to be identified prior to recruitment and confirmed prior to appointment. Based on this discussion, Merrill withdrew his motion.

Link then spoke to the importance of identifying funds to replace an employee in Student Affairs, currently responsible for the Women's Center, who was about to move to Academic Affairs to assume the role of Internship Coordinator in Student Academic Services. Farish indicated that it was likely that the previously agreed upon transfer of the employee in question from Student Affairs would need to be canceled and the internship coordinator function postponed until funds could be identified. The PBAC was told that this question would be reviewed with the President at an upcoming Cabinet meeting.

Discussion then turned to the future role of the PBAC with Committee members reflecting on their feelings that relatively little had been accomplished throughout the Fall semester. Farish and Schlereth indicated that they both felt that considerable progress had been made since the PBAC had been able to finalize a budget for 95-96. This task, they indicated, was especially difficult given the lateness of the budget from the State and the fact that the budget planning parameters provided by the CSU in Spring, 95 were altered when the final budget was provided in late Summer. Farish and Schlereth indicated that the PBAC would fill a vital role in the Spring semester in helping to formulate a financing plan for 1996-1997.

The meeting was adjourned at approximately 5:15 PM.

Minutes prepared by L. Furukawa-Schlereth


PBAC minutes 1995-1996
Updated 2007-12-14
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