President's Budget Advisory Committee

Minutes February 13, 1997

Approved by PBAC, 20 February 1997

Members Present:

Staff Present:

Members Absent:

Guests Present:

Approval of the Agenda

Approval of the Minutes of February 6, 1997

Don Farish convened the meeting at 8:14 AM and asked Members to consider the Minutes of the 2-6 meeting. Discussion ensued. Several Members asked that the Minutes be revised to include a summary of the discussion held on February 6 related to the specific charge to the PBAC from the President, restrictions regarding lay-off of permanent and probationary employees and various other CSU and campus-based financial policies that could impact the Committee, its deliberations and recommendations. Larry Schlereth indicated that he would make these revisions. With this understanding, the Minutes were approved unanimously.

PBAC Membership

Schlereth then reviewed the roster of PBAC members requested by the PBAC on 2-6-97 and included as part of the Agenda packet.

PBAC Spring 1997 Meeting Schedule

He also reviewed the Spring meeting schedule noting that the PBAC would meet on Tuesday February 25 rather than Thursday, February 27, 1997 and that the March 6 meeting would take place in the Sue Jameson Room rather than the Terrace Room.

Motion to Change the Agenda

Victor Garlin then moved that the PBAC rearrange the Agenda such that Item VI, SSU Financial Policy, be discussed next. His motion was seconded by Andy Merrifield. Garlin then spoke to his motion noting that it was appropriate to have an understanding of existing campus financial policy before turning to the specific financial information. Larry Clark called the question. Garlin's motion was approved unanimously.

SSU Financial Policy

The Committee then engaged in a discussion of the 7 campus-based financial policies which were a part of the Agenda packet and are reproduced below:

SONOMA STATE UNIVERSITY
CAMPUS-BASED FINANCIAL POLICY

  1. Lay off or reduction in force actions of permanent or probationary employees are prohibited.
  2. Reallocation of the Divisions' base budgets is prohibited.
  3. Inter-fund or external borrowing cannot be initiated unless an identified source of repayment has been identified and agreement has been reached with the proposed lender regarding term and interest rate.
  4. There are to be no proposals in which a perception of noncompliance with State and CSU fiscal policies, reasonable audit requirements, and relevant special fund bond covenants are suggested.
  5. Actual revenues in excess of the established benchmark of $11,900,000 are to be allocated to the Provost for use at his discretion. Revenues under this provision include:
    • State University Fee
    • Non Resident Tuition
    • Application Fee
    • Campus Services Fee
    • Library Fines
    • Late Registration Fee
    • Enrollment Confirmation Deposit

In the event actual revenues are less than base budgeted revenues, the Provost will be required to reduce Academic Affairs expenditures by an equal amount for that specific fiscal year.

  1. Divisions will carry forward any budget balance available at the end of the fiscal year for expenditure in the next fiscal year. Budget balance available is defined as Revised Budget less Expenditures less Commitments.
    In cases where the Division's prior year commitments are canceled the savings are to be reallocated to the Division's current year budget.
  2. Policy regarding enrollment growth appropriation

Schlereth noted that the "no-lay-off" policy was created by the PBAC during the 1995-96 academic year and accepted by the President. Dennis Harris indicated that SSU had long adhered to this concept through-out its history. Garlin and Harris both noted that it was possible to reduce personnel costs though normal attrition Garlin specifically citing historical reengineering activities on campus.

Garlin asked for clarification regarding what was meant by a "base" budget. Schlereth explained the difference between a base or original budget and a revised budget referencing the campus's published expenditure plan. He also noted that the base budgets for the five operating units of the University were first established in 1992-1993 and generally reflected a listing of persons employed at the University by organizational unit as well as operating expense money used the various University divisions for on-going operating expense. Bill Barnier noted that he believed it was important for the Committee to have a better historical understanding of the base budgets along with changes to them over the past several years. Schlereth indicated that the Staff to the Committee would endeavor to prepare this analysis for PBAC review.

Melinda Barnard questioned whether it was possible to change or modify the Financial Policies noting it was important for the Committee to understand its specific constraints if it was to make a me aningful and viable recommendation that would be accepted by the President. Farish responded by saying he felt the PBAC could develop a set of options for the President to consider but that it was important for the Committee not to micro-manage the specific operations of the various Divisions.

Katharyn Crabbe requested that revenue detail be provided to the PBAC reflecting what composed the $11,900,000 contained in Financial Policy 5. Schlereth promised to provide this data at the next meeting.

The PBAC took no specific action regarding any of the financial policies and did not formulate any policy language regarding enrollment growth resources.

ADJOURNMENT

There being no additional business, the meeting was adjourned at 9:52 AM.

Minutes prepared by Larry Furukawa-Schlereth


PBAC minutes 1996-1997
Updated 2007-12-14
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