PRESIDENT'S BUDGET ADVISORY COMMITTEE
December 10th, 2020
MEMBERS PRESENT:
Karen Moranski Interim Provost, Vice President of Academic Affairs; Chair
Joyce Lopes Vice President of Administration and Finance; Vice-Chair
Jerlena Griffin-Desta Chief of Staff and AVP for Strategic Initiatives and Diversity
Troi Carleton Dean, School of Social Sciences
Jeffrey Reeder Chair of the Faculty; Modern Languages & Literature
Laura Krier Vice-Chair of the Faculty; University Library
Elita Virmani Chair of APARC; Early Childhood Studies
Erma Jean Sims CFA Representative; Literacy Studies & Elementary Ed.
Laura Lupei Senior Director for University Budget and Planning, A&F
Audra Verrier Staff Representative, Pre-Collegiate Programs
Melissa Kadar President, Associated Students
Jonathan Dominguez Vice President of Finance, Associated Students
STAFF PRESENT:
Mike Ogg Senior Director for Budget & Planning, Academic Affairs
Hayley Avery Budget Manager, Administration and Finance
GUESTS PRESENT:
Laura Monje-Paulson AVP for Assessment & Strategic Operations, Student Affairs
Ian Hannah Assistant Vice President for Advancement Operations
Anna Reynolds-Smith Director, Administrative and Financial Planning, Student Affairs
Natalie Sanchez Budget Director, Administration and Finance
MEMBERS ABSENT:
None.
AGENDA
I. CALL TO ORDER AND WELCOME
II. APPROVAL OF THE AGENDA AND MINUTES: October 29th, 2020
III. CHAIR UPDATES
IV. CONTINGENCY FRAMEWORK
V. BOT BUDGET REQUEST
VI. MULTI-YEAR PLAN
VII. ANNOUNCEMENTS FOR THE GOOD OF THE ORDER
I. CALL TO ORDER AND WELCOME
Interim Provost and Vice President of Academic Affairs, Karen Moranski, welcomed the committee and began the meeting at 8:31 am.
II. APPROVAL OF THE AGENDA AND MINUTES
Moranski introduced the agenda and asked if there were any additions. Hearing none, Moranski requested a motion to approve the minutes of the October 29th meeting. Minutes were approved unanimously.
III. CHAIR UPDATES
Moranski announced that the CSU system has decided to return to in-person instruction for the Fall 2021 semester. Sonoma State is currently waiting for more information to begin continuity planning.
Moranski commented that it was important for the system to announce in-person instruction in the Fall because applications are down about 33% CSU wide. The application period is set to close on December 15th but can be extended to January 15th.
Moranski also announced there has been restructuring in the Provost Office organizational structure. Elias Lopez the previous AVP for Academic Resources will take on the role of Senior AVP for Strategic Enrollment and Mike Ogg will assume the budget responsibilities as the Senior Director for Budget and Planning for Academic Affairs.
IV. CONTINGENCY FRAMEWORK
(Please see the December 10th agenda packet for related documents)
The committee engaged in the second reading of the Contingency Framework. The changes to the framework from the first reading included edits in the guidelines to remove on-going expenses as an allowable use of contingency funds, and add language to outline that funds should be utilized in conjunction with campus strategic priorities.
The committee all endorsed the framework and it will be forwarded on to the Cabinet and the President for their endorsement.
V. BOT BUDGET REQUEST
(Please see the December 10th agenda packet for related documents)
Laura Lupei presented the Board of Trustees' (BOT) budget request. The BOT requested a total of $556M for the CSU system. Categories included $150M for the Graduation Initiative, $299M to restore the 2019-2020 reductions in the General Fund, $50M for Academic Facilities and Infrastructure and $57M for Mandatory Cost increases.
Lupei commented that the BOT request is more of a statement of needs and not an indication of what will be funded. The upcoming January Governor's budget will be a better indication of what the system and University could receive.
VI. MULTI-YEAR PLAN
(Please see the December 10th agenda packet for related documents)
Lupei presented the University's multi-year budget plan to the committee. The multi-year plan consisted of three parts; enrollment, funding sources, and funding uses. The multi-year projection for enrollment includes a slight decline from the 2020-2021 year to 7076 for the 2021-2022 year. The subsequent two years include 5% enrollment growth each year for 2022-2023 and 2023-2024.
The enrollment projections will drive a portion of the funding sources, with tuition and fee revenue coming in lower for the 2021-2022 year and then increasing as enrollment increases impact tuition revenue the following two years. The multi-year plan assumes no reductions or increases in state funding for the 2021-2022 year, but a 3% state allocation increase for the next two years.
The cost recovery revenue to the University continues to reduce over 2021-2022 and 2023-2024 due to the campus closures in 2019-2020 and 2020-2021 but will slightly increase in the 2023-2024 year once operations are fully open on campus again.
The funding uses category includes cost projections for compensation and benefits, financial aid, and other operating expenditures. The multi-year plan projects an increase in compensation and benefits and other expenditures over the next three years.
Expenses continue to increase, even as revenues decrease, resulting in projected deficits for 2021-2022 through 2023-2024. The projected deficits for the next three years are $-15.2M in 21-22, $-14.2M in 22-23, and $-11M in 23-24. The projected deficits are base budget deficits, in years they aren’t resolved, they are carried forward to the following years.
Lupei discussed some analyses being put together to help campus leadership and governance begin to address the deficit. The Budget Office is working with Human Services on a multi-year compensation analysis looking at the financial effects of attrition, retirements, FERPs, etc.
The Budget Office is also working on a cost of education analysis which will look at budget and actuals by the cost of education categories and create guideposts by category to make reduction decisions based on data. Moranski stressed the importance of the cost of education analysis as it will help the divisions understand what work needs to be done to address the deficit in their areas.
A question about furloughs was discussed and Joyce Lopes replied that furloughs would be considered at the Chancellor’s Office level, it is not a campus decision and would only happen if there was an additional state reduction this year, which it is not projected there will be.
VI.ANNOUNCEMENTS FOR THE GOOD OF THE ORDER
None.
Moranski adjourned the meeting at 10:00 am.
Minutes prepared by Hayley Avery.