Sonoma State University

October 31, 2024 Minutes

Minutes

PRESIDENT'S BUDGET ADVISORY COMMITTEE

October 31st, 2024

MEMBERS PRESENT:

Karen Moranski - Provost, Vice President of Academic Affairs; Chair

M. Monir Ahmed - CFO, Vice President of Administration and Finance; Vice-Chair

Troi Carleton - Dean, School of Social Sciences

Lauren Morimoto - Proxy for Emily Acosta Lewis, Chair of the Faculty, Communications Dept

Suzanne Rivoire - Vice-Chair of the Faculty, Computer Science Department

Puspa Amri - Chair of APARC, Economics Department

Emily Ascencio - CFA Representative; Criminology & Criminal Justice

Laura Lupei - Associate Vice President for University Budget and Resource Planning

John Lynch - Staff Representative, Center for Teaching and Educ Technology

Jonathon Duran Del Villar - Vice President of Finance, Associated Students

Vanessa Sanchez - President, Associated Students

Ed Mills - Ex-officio, Vice President of Strategic Enrollment Management

Mike Ogg - Ex-Officio, AVP for Academic Resources

STAFF PRESENT:

Hayley Avery - Budget Manager, Administration and Finance

GUESTS PRESENT:

Emily Cutrer - Interim President, Sonoma State University

Anna Reynolds-Smith - Assistant Vice President for Admin and Financial Planning & Business Ops

Ian Hannah - Assistant Vice President for Advancement Operations

Natalie Sanchez - Budget Director Administration and Finance

MEMBERS ABSENT:

None 

AGENDA

  1. Call to Order and Welcome
  2. Approval of the Minutes: September 12th
  3. BOT Budget Request
  4. 2025-2026 Preliminary Budget Update
  5. President’s Updates
  6. 2025-2026 Planning Discussion
  7. Fall Budget Forum Save the Date – November 14th 
  8. Announcements for the Good of the Order

 

  1. Call to Order and Welcome
    Provost and Vice President of Academic Affairs, Karen Moranski, welcomed the committee and began the meeting at 9:33 a.m.
     
  2. Approval of the Minutes: September 12th, 2024
    Moranski introduced the agenda and asked if there were any additions. Hearing none, Moranski requested a motion to approve the minutes of the September meeting. The minutes were approved unanimously.
     
  3. BOT Budget Request
    Laura Lupei presented the 2025-2026 Board of Trustees (BOT) budget request, which included two budget scenarios. Both scenarios account for the 8% general fund reduction the state has imposed on the CSU system, resulting in a significant budget deficit driven by this reduction and expenses that exceed available revenue. The first scenario, the Support Budget Request, outlines adjusted revenue sources including $164M from a 6% tuition increase, $24M from increased tuition related due to increased enrollment, and a projected $397M reduction in the general fund. This scenario results in a total revenue shortfall of $209M. Expenses total $594M across various categories, including Financial Aid increases (State University Grant) of $55M, Health Premiums of $60M, Maintenance of New Facilities at $7M, Liability & Property Insurance Premiums at $10M, Utilities at $32M, Student Success/Graduation Initiative at $20M, Beyond Completion Project at $2M, Student Access and Enrollment at $56M, State University Grant for Enrollment Increase at $8M, Faculty and Staff Compensation Pool at $296M, Title IX and NAGPRA Compliance Programs at $11M, Student Basic Needs and Mental Health at $5M, CSU Artificial Intelligence Initiative at $7M, and Capital Infrastructure Investments at $25M. With the revenue shortfall of $209M and $594M in expenses, the total budget gap in the Support Budget Request scenario is $803M.

    The second scenario, the Limited Budget Scenario, includes $164M from the 6% tuition increase and the projected $397M reduction in the general fund. This scenario focuses on baseline expenditures necessary for maintaining commitments, which include Financial Aid increases (State University Grant) of $55M, Health Premiums of $60M, Maintenance of New Facilities at $7M, Liability & Property Insurance Premiums at $10M, and Utilities at $32M. With the revenue shortfall of $233M and total expenses of $164M, the budget gap for the Limited Budget Scenario is $397M.
     
  4. 2025-2026 Preliminary Budget Update
    Lupei also provided an update on the 2025-2026 campus budget scenario planning, offering slightly more detail than was presented at the recent Campus Townhall. The current projected deficit stands at $21M, driven by a variety of revenue changes, including a $7.4M carryover from the 2024-2025 base deficit, an $8M share of the system-wide 8% reduction, a $371K decrease in tuition revenue, $467K in adjustments to cost allocation revenue, $40K in adjustments to other campus revenue, and a $3.6M reduction due to an anticipated 5% enrollment reallocation. Changes in base expenses contributing to the deficit include $500K in expense adjustments and $1.3M in unfunded health benefits increases. Lupei emphasized that these numbers are based on the current information available, and the projected deficit may change as budget planning continues. The next step in the planning process will be the release of the Governor’s 2025-2026 budget plan in January.
     
  5. President’s Updates
    There were no formal updates from Interim President Cutrer.
     
  6. 2025-2026 Planning Discussion
    The committee engaged in an extensive discussion about the 2025-2026 budget planning, with one topic addressing whether the CSU system might adopt models where it shares students with the UC system. In this model, CSU would focus on General Education (GE) courses, and students would transfer out to complete major coursework. Moranski expressed concerns that such a model would risk turning the CSU system into something akin to a community college.

    The committee also discussed the recent enrollment spike at CSU Monterey Bay and inquired about the strategies employed. Ed Mills, VP of Strategic Enrollment, shared that Monterey Bay had implemented strategies similar to those currently being explored at Sonoma State. These include software upgrades and process improvements aimed at building relationships with prospective students. Mills stressed that while this relationship-based recruitment model can be resource-intensive, it has the potential to yield positive results in a competitive environment. Jonathon Duran Del Villar acknowledged the importance of relationship-building but emphasized that student involvement and events are crucial for student retention. Further discussion focused on enhancing Sonoma State’s visibility and marketing efforts. Interim President Cutrer shared that she and Mills had recently met with the Chancellor’s Office, which has committed to allocating $500K for a marketing campaign aimed at reintroducing SSU and clarifying its vision. Mills added that the funding will help the university craft a strong narrative about what Sonoma State wants to become.
     
  7. Fall Budget Forum Save the Date – November 14th
    The committee was reminded the Fall Budget Forum is scheduled for November 14th at 9am.
     
  8. Announcements for the Good of the Order
    None.
     

Moranski adjourned the meeting at 10:33 a.m. 

Minutes prepared by Hayley Avery.