President's Budget Advisory Committee

Minutes May 14, 1998

Approved as amended by PBAC, 21 May 1998

Members Present:

Staff Present:

Members Absent:

Guests Present:

Meeting Agenda

APPROVAL OF THE AGENDA

Don Farish brought the meeting to order at 8:10 AM and asked for a motion to approve the Agenda A motion was made by Dennis Harris. A second was obtained from Victor Garlin. The Agenda was approved unanimously.

APPROVAL OF THE MINUTES 5-7-98

Farish then asked to a motion to approve the minutes of 5-7-98. A motion was made by Dennis Harris. A second was obtained from Victor Garlin. The minutes were approved unanimously. Farish then recognized Melinda Barnard who moved that the Minutes of April 30, 1998 be amended to reflect that fact that Barnard, Parker and Adams had voted No on the motion related to reimbursements to the General Fund from self-sustaining funds and auxiliary corporations. Katharyn Crabbe provided a second to the motion. Barnard's motion passed with 16 Yes votes and 1 No vote. Schlereth indicated that the 4-30-98 minutes would be amended to reflect the names of the No votes.

RECOMMENDATIONS REGARDING THE ALLOCATION OF NEW EXPENSE.

Referencing materials contained with the Agenda Packet (reproduced below) Farish and Schlereth made introductory comments regarding un-funded University-Wide items.


POTENTIAL METHOD TO ALLOCATE NEW UNIVERSITY-WIDE EXPENSE

New Revenues and Expenses
Item Amount
Projected New Revenue - Enrollment Growth $1,073,000
Projected New Marginal Revenue - Reimbursements $308,000
TOTAL $1,381,000
Un-Funded University Wide Items
Item Amount
Direct Instruction $-450,000
Land Acquisition $-60,000
Collaborative Management Systems $-236,000
Foundation Overhead $-325,000
Disability Resources $-120,000
Risk Management $- 75,000
President's Operating Expense $- 50,000
Executive Compensation $- 20,000
Scholarship Coordinator $-45,000
AVAILABLE FOR ALLOCATION $1,381,000

Because land acquisition had been discussed at the May 7, 1998 meeting, Members moved to a discussion of Collaborative Management Systems (CMS). A variety of viewpoints were raised including the following:

Harris then moved that the PBAC recommend to the President that SSU take $236,000 "off-the-top" from projected new funds in order that a CMS initial implementation Reserve be created in the University-Wide budget category. A second was obtained from Marty Ruddell. A vote was then taken on the motion which passed with 13 Yes votes and 4 No votes. Those voting No included Parker, Pava, Garlin and Barnard.

Members then discussed, in a general fashion, the remaining items on the un-funded University-Wide list as reflected in the Packet. Several points were made including:

The Committee then turned to the question of Foundation Overhead and the most appropriate method to finance this budget item.

Bill Barnier questioned whether it might be possible to reduce overhead costs through reengineering or asset decapitaliztion

Crabbe indicated, that because of financial pressure on the General Fund, she supported the concept of financing overhead costs in a fashion similar to other fundraising organizations by assessing funds raised to cover overhead expense. Victor Garlin agreed with Crabbe.

Ruddell raised the possibility of finding a middle ground - partial overhead support from the General Fund and partial overhead support from fundraising assessment.

Gloria Ogg noted that the University could reduce General Fund support to a particular budget unit when a gift was made to that unit and thus create a fund-source to cover overhead expense. She indicated, however, that she felt that such a process a cumbersome and would to the disadvantage of the academic program since nearly all gifts were made to this area of campus operations.

Jim Meyer then distributed a handout illustrating the status of fundraising activity at Sonoma State University. Following an explanation of the handout (added to the Record) Meyer noted that he supported the concept of providing overhead support from the General Fund since the purpose of fundraising was not to finance overhead costs but rather to support the academic operation of the campus.

ADJOURNMENT

As the time for adjournment was approaching, Farish indicated that the PBAC would continue discussion regarding the 1998-1999 budget recommendation at its May 21, 1998 meeting and adjourned the Committee at 9:55 AM.

Minutes prepared by Larry Furukawa-Schlereth.


PBAC minutes 1997-1998
Updated 2007-12-14
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