PRESIDENT'S BUDGET ADVISORY COMMITTEE
February 4th, 2021
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 VP 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:
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: December 10th, 2020
III. ANNOUNCEMENTS FOR THE GOOD OF THE ORDER
IV. HEERF FUNDING
V. JANUARY’S GOVERNOR BUDGET
VI. 2021-2022 DEFICIT PLANNING
I. CALL TO ORDER AND WELCOME
Interim Provost and Vice President of Academic Affairs, Karen Moranski, welcomed the committee and began the meeting at 8:30 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 December 10th meeting. Minutes were approved unanimously.
III. ANNOUNCEMENTS FOR THE GOOD OF THE ORDER
None.
IV. HEERF FUNDING
(Please see the February 4th agenda packet for related documents)
Laura Lupei presented a summary of the Higher Education Emergency Relief Funds (HEERF) the campus will receive. The HEERF funds come from the most recent Federal funded relief act for the COVID-19 pandemic, separate from the previous CARES Act.
The preliminary projected allocation to Sonoma State is $14.9M. HEERF Funding guidelines stipulate institutions must distribute the same amount in student aid grants as they did with the CARES Act funding. The remainder of the funding must be spent to defray costs associated with the pandemic, including, lost revenue, reimbursement of expenses incurred, technology costs for distance learning, faculty and staff training, and payroll costs.
Final numbers and guidelines for HEERF funding are to be released by the Department of Education in the coming weeks.
V. JANUARY’S GOVERNOR BUDGET
(Please see the February 4th agenda packet for related documents)
Lupei then reviewed the January's Governor's budget with the committee. The presentation first reviewed the Board of Trustees (BOT) 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.
The January Governor's Budget included $144.5M in new funding to the CSU; $15M for Graduation Initiative 2025, $54.5M for the restoration of the 19-20 reduction, $57M for mandatory costs, $15M for student mental health and technology needs, $2M for common learning management systems, and $1M for the Stockton Center.
Lupei made preliminary estimates of what Sonoma State could receive from the CSU’s new funding. Of the $144.5M Sonoma State is projected to receive about $3.3M. Throughout the funded categories from the January Governor’s budget, it could include $350K for the Graduation Initiative, $1.2M for the restoration of the 19-20 reduction, $1.3M for mandatory costs, $350K for student mental health, and technology needs, and $46.6K for common learning management systems.
The next steps in the Spring budget planning timeline include the Chancellor’s Office possibly releasing an initial budget memo with their preliminary projections on what campuses could receive. There will then be a May revision of the Governor’s Budget, in June the budget will be approved, and July the CO will release the final budget memo including the 21-22 budget allocations to the campuses.
VI. 2021-2022 DEFICIT PLANNING
(Please see the February 4th agenda packet for related documents)
Lupei reviewed the 2021-2022 preliminary deficit projection with the committee. There is a projected deficit for the 2021-2022 year totaling $15.1M. The deficit is composed of $11.6M from the remaining base deficit from the 20-21 fiscal year, $866K for an additional decline in enrollment, $853K for a reduction in cost allocation revenue, $1.5M for unfunded mandatory cost, and then the projected allocation of new funding to the CSU of $1.3M.
These items total a $13.6M base deficit for the 21-22 fiscal year. In addition to the base deficit, there is a projected $1.6M one-time deficit that will roll from the 20-21 year totaling the $15.1M total deficit.
With a large budget deficit projected for the 21-22 fiscal year, it is important to look at multi-year budget planning. 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. Enrollment growth will be crucial as the University works to resolve the budget deficit. Even with enrollment growth, the multi-year projection for expenses outpaces the revenues creating a multi-year budget deficit.
As the committee reviewed the multi-year projected budget deficit, there was a conversation on strategic high-level approaches to solving the deficit. Jerlena Griffin-Desta discussed that as the Cabinet has been beginning their budget planning and discussing the deficit, they are aware that when looking at the $15.1M deficit there are people’s jobs to consider in solving it.
Griffin-Desta, Moranski, and Joyce Lopes spoke to the importance of doing all the University can to reduce the impact on employee's jobs while looking at strategies to solve the deficit. The committee was encouraged to hear that employees were at the heart of the conversations. Moranski talked about how although the large budget deficit is daunting to look at and solve it creates an opportunity to begin looking at how the University has done things and make changes to invest in our identity and priorities moving forward.
Engaging in activities like a programmatic review, shared services models, and strategic rehiring will allow the University to invest in priorities with existing resources, one main principle of strategic budgeting.
Moranski adjourned the meeting at 9:53 am.
Minutes prepared by Hayley Avery.