PRESIDENT'S BUDGET ADVISORY COMMITTEE

Minutes December 17, 2002

MEMBERS PRESENT

STAFF PRESENT

MEMBERS ABSENT

STAFF ABSENT

AGENDA

APPROVAL OF THE AGENDA

Bernie Goldstein brought the meeting to order at 8:05am. No additions or deletions to the agenda were proposed.

APPROVAL OF THE MINUTES: October 10, 2002

Steve Wilson moved and Rand Link seconded a motion to approve the minutes of October 10, 2002. The minutes were approved unanimously with abstentions from those not in attendance at the October 10, 2002 meeting.

GOVERNORS PROPOSED MID-YEAR BUDGET REDUCTIONS

(Please see the December 17, 2002 Agenda Packet for this document)

Schlereth updated Members on the status of the 2002-2003 California budget. The legislature met for about an hour and adjourned taking no action on the Governors proposed mid-year budget reductions. The CSU Board of Trustees met and agreed to raise fees to help offset of the budget reductions. The proposed CSU budget reductions equal $59,600,000, less $20,000,000 in fee increases ($30,000,000 minus $10,000,000 for financial aid) for a net reduction of $39,600,000. Of this, $935,000 will likely be Sonoma's share of the reduction. In addition, Sonoma must allocate $200,000 to augment Financial Aid operations to recalculate awards for the Spring 2003 semester and an allowance for bad debt (both related to the fee increase); $135,000 for increases in health care premium; $50,000 for agreed to compensation increases. Sonoma's proceeds from the fee increase will likely be $260,000. The total net reduction for Sonoma will likely be $1,060,000.

Rick Luttmann hopes the Governor is aware, or made aware, of the costs related to mid-year fee increases. Gloria Ogg asked that the campus be patient with Customer Services and Financial Aid while implications of the fee increases are worked through. This increase will create additional workload on an already stretched staff.

Schlereth noted that many problems exist with attempting to implement mid-year budget cuts at this late hour. Many classes have already been scheduled, temporary faculty hired, OE at least 50% spent, and 80% of the budget is tied to staff. Schlereth recommends that he and Goldstein craft creative solutions to handle cuts for this fiscal year without affecting operations. Schlereth and Goldstein will attempt to bring recommendations to the February meeting. Melinda Barnard feels that PBAC consultation is crucial in dealing with these reductions. Crabbe noted that Academic Affairs is being diligent in managing low-enrolled courses. Steve Wilson emphasized that these reductions are real and changes to the way the University operates must occur.

BUDGET PLANNING VARIABLES

(Please see the December 17, 2002 Agenda Packet for this document)

Schlereth presented his estimates for the 2003-2004 budget reductions. The current year reductions will become permanent and will likely be around 4%. He feels the overall reductions may equal 10-14%. He does not know whether growth money will come to the campus. Schlereth hopes the January Governors budget will provide some clues. Catherine Nelson asked Schlereth if lay-offs would be necessary at a 7% level of reduction. Schlereth feels that with decisive action lay-off of full-time, permanent employees may be avoided. Temporary employees, however, would be vulnerable. Barnard feels that maintaining the academic integrity in Academic Affairs does not mean maintaining the status quo. She believes that the academic side of the University may have to change its culture or the way it conducts business. Barnard suggested students taking over 15 units pay an additional fee. Barnard asked Goldstein for an update on the tenure-track searches. Goldstein answered that searches have commenced in accordance with the agreed to bargaining contracts. The searches, however, may need to be scaled back to allow maximum flexibility in our current budget situation. Luttmann is not happy that the state expects the University to teach additional students with less money. He feels the citizens need to take a stand. Crabbe noted that doing more with less not only affects teaching but also staff employees. Ogg noted that in tough budget times retirements occur more frequently causing loss of knowledge.

Wilson asked those expecting grants, etc. to begin lessening their expectations.

ITEMS FOR THE GOOD OF THE ORDER

Meeting was adjourned at 9:20am

Minutes prepared by Neil Markley


PBAC minutes 2002-2003
Updated 2008-01-24
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