President's Budget Advisory Committee

Minutes April 23, 1997

Members Present

Staff Present

Members Absent

Guests Present

Meeting Agenda

Materials Distributed with Agenda Packet

APPROVAL OF AGENDA

Don Farish convened the meeting at 4:14 PM by asking for a motion to approve the Agenda. Marty Ruddell moved to approve the Agenda. A second was obtained from Dennis Harris. Farish proposed the addition of a new item III, Faculty Historical Analysis, 1992/93 & 1996/7. With this addition, the Agenda was approved unanimously.

APPROVAL OF MINUTES 4-16-97

Farish asked for a motion to approve the minutes of the April 16, 1997 meeting of the PBAC. Harris moved to approve the Minutes. A second was obtained from Neil Markley. The minutes of the meetings were approved unanimously.

FACULTY HISTORICAL ANALYSIS, 1992/93 & 1996/97

Silvia Barajas distributed the Faculty Historical Analysis prepared by Academic Affairs (attached and made part of the Record). It showed an increase of $697,294 in expenditures for Tenure-Track and Part-Time Faculty along with Coaches, between the Original Budget for 1992/93 and that for 1996/97. Of this increase, $474,000 was the result of one-time funding. The report also showed an increase in tenure-track and department-chair FTEF of .50 and 16.43 respectively. Farish explained that the increase in tenure-track FTEF, given the small increase in funding, is explained by the replacement of higher-cost retiring Faculty with lower-cost junior Faculty.

Rand Link also distributed a revised historical financial analysis of the Student Health Center which corrected errors made in the Campus Historical Analysis presented to the PBAC on April 15, 1997. Link's handout was added to the Record.

SUMMARY OF PRIORITY UNFUNDED ITEMS

Larry Furukawa-Schlereth referenced the Agenda Packet and reviewed the Summary of Unfunded Items that had been updated by the University Cabinet. He noted an increase in the estimated Increase in the Risk Pool Premium, Historical from $130,000 to $350,000, based upon a calculation of the midpoint in a 4/18/97 Revision of the CSURMA Summary of Funding Alternatives, which was attached to the Summary and gave a range of increase from $207,000 to $491,000. Other changes included deletion of the Risk Pool Deductible, now part of the Reserve; deletion of the Collaborative Management System cost, which may not materialize until 1998-1999; deletion of the Working Drawings for the Information Center, which was projected to be covered by endowment earnings; and deletion of the Natural Gas Price Increase, projected to be covered by TES and deregulated electricity savings.

ANALYSIS OF FINANCING ALTERNATIVES

Schlereth then turned to the President's Budget Advisory Committee Analysis of Financing Alternatives, distributed at the beginning of the meeting. He explained that the PBAC Staff had done their best, given the time allotted, to analyze as many of the Alternatives as possible but analysis on every item was not complete. The Committee then reviewed the Staff Analysis and divided the Financing Alternatives into the following three categories:

  1. Items which appeared to be possible alternatives for further discussion;
  2. Strategic Items or items the Committee felt could not be implemented by 7-1-97 but could potentially be implemented over a longer term;
  3. Items that were seen as not realistic alternatives either for immediate or future implementation.

The following information summarizes the Committee's actions in this regard:

POSSIBLE ALTERNATIVES FOR FURTHER DISCUSSION

  1. Further utilization of Housing Resources
  2. Reduction of the interfund loan debt service
  3. Reduction of the University Reserve
  4. Elimination of General Fund support for the Health Center
  5. Utilization of CSU Enrollment Growth Resources projected for 1997-1998
  6. Utilization of CSU Inflation Resources projected for 1997-1998
  7. Utilization of Trust Balances for One-Time Items
  8. Utilization of CERF and SSALI Reserves for One-Time Items

STRATEGIC ITEMS

  1. Increasing Miscellaneous Course Fees
  2. Financing Mental Health Counselors for Student Health Center Fee Resources
  3. Reduction of General Fund Support to Intercollegiate Athletics
  4. Increasing support provided to the University from the Enterprises

ITEMS NOT SEEN AS REALISTIC

  1. Reducing the President's Discretionary Fund
  2. Eliminating campus-based GAAP audited financial statements
  3. Utilizing CSU Resources allocated for Deferred Maintenance
  4. Utilizing CSU Resources allocated for Teaching and Learning Productivity
  5. Utilizing Revenue allocated to Academic Affairs "above the base"
  6. Eliminating funds allocated for School Development Efforts
  7. Increasing the Student Faculty Ratio

At the conclusion of this process, Members recognized that even if all the Alternatives seen as potentially possible were implemented, a substantial deficit would still remain. Consequently, discussion turned various pro-rata allocation models that could be utilized to allocate the remaining deficit to the Divisions of the University. Farish distributed a model which he had developed for review which was added to the Record. After discussion of the model and problems associated with it, the PBAC, by consensus, asked Farish and Schlereth, in association with the Cabinet, to develop an allocation model that they would see as viable.

Members then agreed that another meeting was needed. After several efforts to find a time when all were available, it was agreed that PBAC would next meet on May 8, 1997 from 8 AM until 10 AM.

Adjounment

At 10:25 PM Farish adjourned the meeting.

Minutes prepared by Larry Furukawa-Schlereth


PBAC minutes 1996-1997
Updated 2007-12-14
afd.webcontact@sonoma.edu