Sonoma State University

September 4, 2025 Minutes

Minutes

UNIVERSITY BUDGET ADVISORY COMMITTEE

September 4th, 2025

MEMBERS PRESENT:

Stacey Bosick - Interim Provost, Vice President of Academic Affairs; Chair

Jeff Wilson - Interim CFO, Vice President of Administration and Finance; Vice-Chair

Troi Carleton - Dean, College of Humanities, Social Sciences, and the Arts

Anastasia Tosouni - Vice-Chair of the Faculty, Criminal Justice

Emily Vieira Asencio - CFA Representative; Criminal Justice

Diana Grant - Chair of APARC, Criminal Justice

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

Aidan Humrich - Staff Representative, Office of the Dean, College of ECES

Madelyn Boyd - President, Associated Students

Micah Reyes - Vice President of Finance, Associated Students

Paul Edwards - Ex-officio, Interim Vice President of Strategic Enrollment Management

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

MEMBERS ABSENT:

Ajay Gehlawat - Chair of the Faculty, Hutchins School of Liberal Studies

Mike Ogg - Ex-officio, AVP for Academic Resources

AGENDA

  1. Call to Order and Welcome
  2. Introductions
  3. Approval of the Minutes: May 8th, 2025
  4. UBAC Orientation
  5. 2024-2025 Year End Balances
  6. 2025-2026 Budget Update
  7. President’s Updates 
  8. Sonoma State Commitment Funding
  9. Announcements for the Good of the Order

 

 

  1. Call to Order and Welcome
    Interim Provost and Vice President of Academic Affairs, Stacey Bosick, welcomed the committee and began the meeting at 9:00 a.m. 
     
  2. Introductions
    The committee did a round of introductions as it was the first meeting of the 2025-2026 Academic Year.
     
  3. Approval of the Minutes: May 8th, 2025
    Bosick introduced the agenda and asked if there were any additions. Hearing none, Bosick requested a motion to approve the minutes of the May meeting. The minutes were approved unanimously.
     
  4. UBAC Orientation
    The presentation commenced with an overview of campus budget fundamentals for new committee members. It covered the composition of the campus budget, the state system, budget planning timelines, and commonly used terminology.
     
  5. 2024-2025 Year End Balances
    Lupei presented the year-end (YE) balances and reserves for 2024–2025, as outlined in the University Operating Fund Reserve Policy. The committee began by reviewing the YE balances for each division. Notably, no division ended the year in deficit, and all rolled balances into the 2025–2026 fiscal year.

    The committee then reviewed the 2024–2025 designated balances and reserves, which totaled $24 million. Of this amount, $11.3 million was retained within the divisions as designated balances, leaving $12.6 million in University-Wide reserves after adding $2.9 million to the University Reserves. This $12.6 million represents 17% of the Reserve Goal according to the University Reserve Policy.
     
  6. 2025-2026 Budget Update
    Lupei provided a summary of the Fall Budget Briefing for 2025–2026. The final State budget for 2025–2026 included a deferral of $143.8 million in ongoing CSU system funding to 2026–2027, with the CSU system offered a zero-interest loan to offset the deferral. At the same time, Sonoma State University received a one-time allocation of $45 million. Within the multi-year funding compact, the CSU experienced an ongoing increase of $240 million in 2024–2025 with a $75 million one-time reduction. For 2025–2026, the deferral of $143.8 million reduces ongoing funding, though the legislature did provide $50 million in one-time support, of which $45 million is allocated to Sonoma State. The legislature intends to restore the deferral in 2026–2027 along with an additional $100.9 million increase, while no new ongoing funds are anticipated in 2027–2028. By 2028–2029, the CSU is projected to receive a $151.4 million ongoing increase. Despite these measures, the State’s overall operating reserves are projected to fall significantly, reaching a negative $42 billion by 2028–2029.

    On the campus level, changes to the 2025–2026 allocation and revenue sources resulted in a net decrease of $10.3 million. These changes lowered the adjusted base revenue budget from $147.4 million in 2024–2025 to $137.1 million in 2025–2026. Notable decreases included $2.3 million from resident target reallocation, $3.6 million from retirement adjustments, $2.3 million from a 3% State General Fund reduction, $2.1 million from offsetting General Fund allocation tied to tuition increases, and $3.8 million from campus revenue adjustments. Positive adjustments included $0.3 million for Project Rebound, $1.2 million for health premium increases, $0.2 million for liability and property insurance increases, $1.2 million for utilities increases, and $1.0 million from a State University Grant (SUG) reallocation.

    After accounting for both revenue and expense adjustments, Sonoma State’s total base deficit for 2025–2026 was $19.4 million. This included the $7.4 million base deficit carried over from 2024–2025, the campus’s $2.3 million share of the systemwide $143.8 million reduction, and a $6.7 million decrease in tuition revenue. Other factors included $0.4 million in reduced cost allocation revenue, a $2.3 million decrease from enrollment reallocation, a $0.4 million shortfall in tuition coverage, and $0.3 million in unfunded compensation increases. These reductions were partially offset by $0.5 million in net Summer Session revenue.

    To address the shortfall, the University implemented $20.4 million in base reduction strategies aligned with enrollment and available revenues. These measures included $8.0 million in reduced instructional costs, $3.7 million from the discontinuation of NCAA athletics, $4.1 million from staff and management position eliminations through attrition, and $2.5 million from reorganization and management non-retentions. Additional reductions included $1.7 million from University-wide budget lines, $0.3 million from operating expenses, $0.1 million from shifting Counseling and Psychological Services funding to the fee fund, and $50,000 from integrating the Green Music Center with OLLI. After applying these measures, the University achieved a positive base balance of $1.0 million.

    The University also identified one-time needs and resources, resulting in a net one-time balance of $1.7 million for 2025–2026. One-time needs included $266,000 for centralized marketing positions, $308,000 for government relations staffing, and $112,000 for strategic enrollment management support, totaling $686,000. These were offset by $1.4 million reallocated from Instructionally Related Activities (IRA) funds.

    The Multi-Year Plan projects enrollment to decline slightly for the next two years and then stabilize for the multi-year period. While the budget is balanced in 2025–2026, it is expected that expenses will again outpace revenues 2026–2027 and 2027–2028, primarily due to the planned enrollment reallocation in 2026-2027. However, through careful reduction planning and use of reserves, the campus can again rebalance the budget without making any major programmatic reductions.
     
  7. President’s Updates
    The President attended the meeting to thank members for their service on the committee and emphasized that, as President, she is ultimately responsible for the fiscal well-being of the University. President Cutrer noted that the Academic Senate had suggested there should be a different representative body for budget advice; however, she affirmed her position that UBAC remains the appropriate body, as it includes representation from faculty, students, staff, and administrators.

    Anastasia Tosouni responded by noting that the Academic Senate’s concerns stemmed from the prior year’s budget reductions, which they felt should have been phased in over multiple years to provide programs more time to plan and potentially preserve their operations.

    The President then addressed the $45 million in state funding for the Sonoma State Commitment, explaining that she would look to UBAC as the consultative body to develop recommendations regarding the use of the unrestricted portion of these funds—approximately $9 million—which must be allocated in consultation with the campus community. She emphasized that committee members will be responsible for engaging with the stakeholder groups they represent and bringing their feedback to UBAC. The President also expressed that she would like the unrestricted funds to prioritize student recruitment efforts, but welcomed broader input from the committee.

    The committee held a brief discussion on how best to structure this process and agreed that scheduling an additional meeting with the full committee would be the most effective approach. In preparation, members will gather input from their campus constituents over the next several weeks regarding how the process should be designed and what it should include, and will bring this feedback back to the group for consideration.
     
  8. Sonoma State Commitment Funding
    In addition to the budget updates, Lupei presented the details of the Sonoma State Commitment, a one-time $45 million allocation from the State to support the University’s long-term turnaround plan. This investment is focused on enrollment growth, academic program stability, and the development of new degrees that align with regional and statewide workforce needs.

    The funding will be distributed across several initiatives. Sixteen million dollars will support the expansion of the BS in Nursing program, including equipment upgrades, facility modernization, and laboratory expansion, with a launch planned for Spring 2027. Five million dollars will fund the expansion of the Career Center, also planned for Spring 2027. Another five million dollars will establish a Data Science academic program and major, scheduled to launch in Fall 2027. Two million dollars will support environmental science academic programs. Eight million dollars will be invested in NCAA Division II athletics over a three-year period. Finally, nine million dollars will be directed over three years, in consultation with faculty, students, and community stakeholders, toward enrollment growth, the restoration of select reductions, and investment in new academic degrees.

    The Chancellor’s Office is also providing a $45 million match in supplemental support. This includes $10 million dedicated to the Bridge to the Future Plan, $10 million for enrollment and student services, and $25 million in the form of a one-time line of credit. Collectively, these commitments represent a significant investment in Sonoma State’s future and are expected to play a central role in addressing immediate financial challenges while positioning the University for long-term stability and growth.

 

  1. Announcements for the Good of the Order
    None.

Bosick adjourned the meeting at 10:34 a.m. 

Minutes prepared by Hayley Avery.