PRESIDENT'S BUDGET ADVISORY COMMITTEE

Minutes September 5, 2002

MEMBERS PRESENT

STAFF PRESENT

MEMBERS ABSENT

STAFF ABSENT

AGENDA

APPROVAL OF THE AGENDA

Bernie Goldstein brought the meeting to order at 8:08am. Goldstein introduced the new members and asked that all members to provide a brief introduction. The agenda was passed unanimously with no objections heard.

APPROVAL OF THE MINUTES: May23, 2002

Rand Link moved and Keith Marchando seconded a motion to approve the minutes of the May 23, 2002 meeting. The minutes were approved unanimously with abstentions from those not in attendance at the May 23, 2002 meeting.

2001-2002 RESERVE EXPENSES

(Please see the September 5, 2002 Agenda Packet for this document)

Schlereth reviewed the 2001-2002 reserve expenses noting that the total of $650,000 was in line with his earlier projections. One new item to the list is the Darwin, Nichols, Schulz re-keying. In each case, a faculty member lost a key causing numerous locks to be re-keyed. The faculty member is only liable for a fixed lost key fee and not the entire expense of the work. Schlereth expects the numbers to fluctuate a little until they become more firm.

2001-2002 YEAR-END RESOURCES: UNIVERSITY-WIDE

(Please see the September 5, 2002 Agenda Packet for this document)

Schlereth presented an update of the utilization of 2001-2002 university-wide year-end resources. The Salazar move expenses relate to the move of University departments into Salazar Hall. The projected shortfall in Athletics is due to rising insurance expenses and increasing salaries. Extra power is needed in Salazar Hall for the additional equipment in the science labs. The NASA grant project has grown requiring extra space. Extra space has been identified in the former Tech High space and will be modified for use by the NASA grant. Due diligence required for the potential faculty and staff housing land will be returned if the deal on the land closes. The remaining dollars are requested to be allocated to a Presidents discretionary fund used to fund requests from faculty and staff.

Luttmann expressed concern about the lack of security in Salazar Hall. Schlereth has asked Nate Johnson, Chief of Police, to study the security issues and provide recommendations for improving the security. These improvements will likely cost money and will be brought back for university-wide funding. Luttmann feels due diligence is included in title insurance. Schlereth does not know if this is true, however per CSU rules a due diligence must be performed before acquiring land.

Victor Garlin and Rick Luttmann expressed concern about giving money to the President for discretionary purposes. Luttmann would like to see the money in a reserve and Garlin asked the money be given to Academic Affairs. Victor moved a motion to give the $166,350 to Academic Affairs, Luttmann seconded the motion. Melinda Barnard does not object to the idea of the Presidents discretionary fund if a special fund is set-up for people to apply for funding. She remembers a similar fund funded by SSE some years ago for similar purposes. Noel Byrne asked if the president currently has a discretionary fund for this purpose. Schlereth responded that the President does not. All of his money is allocated for salaries and operating expense. Schlereth also noted that typically campus Presidents take all the year-end money. It is unusual for a campus to discuss this issue. Garlin does not like the idea of a fund where the President arbitrarily gives money. He feels the process should be a bureaucratic not charismatic. Garlin asked Goldstein his opinion of this use of funds. Goldstein responded that Academic Affairs could use the money, however there a number of programs around the University that can use more money. Schlereth noted that it may be better to hold on a decision on this matter until we have a better understanding of the budget. This money may be used to cover holes. Garlin agrees with Schlereth's comments and withdrew his motion. Luttmann concurred as well.

Barnard noted that every year additional money is funneled to Athletics to support their operation. She feels a plan needs to be developed to address these needs for the long-term. Link noted that a plan is being developed, however general fund support is very minimal which causes funding issues. Gloria Ogg feels the problems in Athletics is indicative of a problem with the whole University. New programs are developed causing old programs to become under-funded. She would like to see a plan developed for the whole University. Marchando feels the deferred maintenance of the buildings is also under-funded.

BUDGET PLANNING 2002-2003

(Please see the September 5, 2002 Agenda Packet for this document)

Schlereth reviewed the new expense items for the 2002-2003 year. He does not yet have firm numbers, but does not expect these until after the election in November. This creates problems as the year has already been planned and is in the process of being executed. Schlereth feels we are in a budget triage situation and has asked all departments to save as much money as they can. Barnard advocated for not spending any money unless absolutely necessary. Schlereth and Goldstein agree and have been building a war chest to deal with budget matters. Barnard would like to hear ideas on dealing with the budget sooner rather than later in the process. She feels this war chest is an example of a practice that has been implemented before discussion with the committee. She would have liked to see this reported before implementation. Schlereth explained that the war chest is rather small currently. Katie Pierce has set aside $137,000 from last year that was generated from conservative spending patterns. She reminded members that these budget issues are not short-term and could remain for years.

BUDGET PLANNING 2003-2004

(Please see the September 5, 2002 Agenda Packet for this document)

Schlereth presented the CSU Budget Request for 2003-2004. He feels this budget is optimistic at this point and will likely not be accepted as is. The important item, he feels, is the projected 5% enrollment growth. He feels this is risky proposition given our current and projected budget situation.

ITEMS FOR THE GOOD OF THE ORDER

None.

Goldstein adjourned the meeting at 9:54am

Minutes prepared by Neil Markley.


PBAC minutes 2002-2003
Updated 2008-01-24
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