April 28, 2022 Minutes

PRESIDENT'S BUDGET ADVISORY COMMITTEE

April 28th, 2022

MEMBERS PRESENT:

Karen Moranski

Provost, Vice President of Academic Affairs; Chair

M. Monir Ahmed

CFO, Vice President of Administration and Finance; Vice-Chair

Jerlena Griffin-Desta

Chief of Staff and VP for Strategic Initiatives and Diversity

Troi Carleton

Dean, School of Social Sciences

Lauren Morimoto

Chair of the Faculty, Kinesiology Department

Bryan Burton

Vice-Chair of the Faculty, Criminology & Criminal Justice Studies

Emily Acosta Lewis

Chair of APARC, Communications Department

Erma Jean Sims

CFA Representative; Literacy Studies & Elementary Ed.

Laura Lupei

Associate Vice President for University Budget and Resource Planning

Audra Verrier

Staff Representative, Career & Leadership Development

Noelia Brambila

President, Associated Students

STAFF PRESENT:

Mike Ogg

Senior Director for Budget & Planning, Academic Affairs

Shawn Taylor

Budget Analyst, Administration and Finance

GUESTS PRESENT:

Michael Young

Interim Vice President of Student Affairs

David Crozier

Associate Vice President, Financial Services

Laura Monje-Paulson

Assistant Vice President for Student Affairs

Ian Hannah

Assistant Vice President for Advancement Operations

Anna Reynolds-Smith

Director of Administrative and Financial Planning

Natalie Sanchez

Budget Director, Administration and Finance

Christina Shoptaugh

Accountant II, Sonoma State Foundation

MEMBERS ABSENT:

Justin Arenson

Vice President of Finance, Associated Students

 

AGENDA

  1. Call to Order and Welcome

  2. Approval of the Minutes: February 24th, 2022

  3. 2022-2023 Budget Planning

  4. Budget Forum Review

  5. 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 8:30 am.

 

  1. Approval of the Minutes: February 24th, 2022
    Moranski introduced the agenda and asked if there were any additions. Hearing none, Moranski requested a motion to approve the minutes of the February 24th meeting. Minutes were approved unanimously.

 

  1. 2022-2023 Budget Planning
    Laura Lupei presented on 2022-2023 Budget Planning. She started the presentation with an update on the plan for use of the Higher Education Emergency Relief Funds (HEERF).

    HEERF funding was split into two major parts: $21.4M for Student Aid and $29.4M for Institutional Aid. The Student Aid portion is almost completely spent with a small balance of $18.6K remaining. Institutional Aid has a remaining balance of about $15.3M. The planned use for the remaining Institutional Aid funds is outlined as follows: the University deficit ($2.5M), reimbursement to REACH for lost housing revenue ($8.5M), COVID supplies and staffing ($1.2M), faculty and staff COVID compensation ($1.7M), technology support and enhancements ($1M), and the replacement of obsolete  HVAC systems and air filters ($338.4K).

    Next Lupei presented a review of the campus’ current projected base deficit for FY 22-23. It is projected that the campus revenues will be $134.9M and campus expenses will be $152M, which will result in a base deficit of $17.1M for FY 22-23. The $17.1M deficit is composed of the FY 21-22 base deficit that is being rolled forward ($11.2M) because it was not resolved in the 21-22 year FY. The deficit also consists of a decrease in tuition revenue ($2.8M), a reduction in cost allocation revenue ($1.9M), and a reduction in other campus revenue ($50K). Further, a projected increase in unfunded mandatory costs of $1.1M will amount to the $17.1M shortfall.

    The current plan to address the deficit is for Divisions to make base reductions for a portion of the deficit and then address the remaining deficit with one-time funding. The base reductions have been allocated to the divisions based on the marginal cost of instruction and divisions are currently finalizing those reductions.

    After the base reductions, there is a remaining $9.3M to be resolved with one-time strategies. These one-time strategies include HEERF funds ($2.5M), excess savings from  FY 21-22 strategies ($1.5M), use of campus reserves ($1M Capital, $800K Operating), and using net interest revenue ($300K). After the base and one-time strategies, a shortfall of $2.7M remains and requires further strategies to be identified.
  2. Budget Forum Review
    There was a lively discussion about the feedback for the Spring 2022 Budget Forum held on March 10th, 2022. It was felt that the feedback is getting better for each forum and that it may be beneficial to work on the budget communication to the campus between forums.
     
  3. Announcements for the Good of the Order
    Monir Ahmed mentioned that the State Fire Marshal has approved the solar panel and microgrid project.

    Lupei mentioned that the May revision of the Governor’s May budget revision will not be released in time for the next meeting on May 12th, but there is no current indication of large changes from the January proposal.

 
 

Moranski adjourned the meeting at 10:00 am. 

Minutes prepared by Shawn Taylor.