January 27, 2022 Minutes

PRESIDENT'S BUDGET ADVISORY COMMITTEE

January 27^th, 2022

MEMBERS PRESENT:

STAFF PRESENT:

GUESTS PRESENT:

MEMBERS ABSENT:

AGENDA

1. Call to Order and Welcome
2. Approval of the Minutes: December 16th, 2021
3. President’s Message
4. January Governor’s Budget Proposal
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.

2. Approval of the Minutes: December 16th, 2021
   Moranski introduced the agenda and asked if there were any additions. Hearing none, Moranski requested a motion to approve the minutes of the December 16th meeting. Minutes were approved unanimously.

3. President’s Message
   President Sakaki joined the committee to welcome everyone back for the Spring semester and emphasize the important work done by the committee.  The President spoke to the members on how they each represent a constituent group on campus and are responsible to bring information to those groups and collect feedback, especially during this challenging budget environment.

4. January Governor’s Budget Proposal
   Laura Lupei presented the January Governor’s Budget. The Board of Trustees (BOT) had submitted the budget request in November, requesting an increase to the CSU base expenditure budget of $715.5M for the 2022-2023 year. Of the $715.5M increase, $673M would be increased General Fund support, and the remaining $42.5M would be increased student fee revenue from an increase in full-time equivalent students. The BOT organized their request into three priority areas: the students, the people, and the future of the CSU. The student priority consists of $170M in new funding in the categories of Graduation Initiative ($75M), Basic Needs Initiative ($20M), and Bridging the Equity Divide ($75M). The people priority totals $223.3M in the categories of the Compensation Pool ($209.3M), Health Benefits ($14M), and Staff Salary Structure Study Results (TBD). The future priority totals $322.2M in the areas of Academic Facilities and Infrastructure ($135M), Strategic Enrollment Growth ($129.9M), Mandatory Costs ($40.5M), and SB169 State University Grant Requirement ($16.8M). There was also a major, one-time funding request for $1B for much-needed deferred maintenance.
   
   The January Governor’s proposal included an increase of $344.1M for the 2022-2023 year. While the tuition increase from enrollment growth is roughly in line with the BOT request ($40M), the proposed General fund increase is significantly lower than the BOT request ($304.1M). Of the $344.1M proposed by the Governor’s budget, $121M will be allocated to Strategic Growth, $12M for Foster Youth Support, and the remaining $211.1M will be an unallocated increase.
   
   Lupei provided preliminary projections on what Sonoma State’s portion of the $344.1M Governor’s proposal would be based on prior year’s allocations. The University could potentially receive about $5.2M of increased General Fund base budget with $162K allocated towards Foster Youth Supports and the remainder, $5.02M, would be in the unallocated category.  It is not anticipated that the campus will receive any of the enrollment growth funding.
   
   The Governor’s budget proposal also includes one-time funds to tackle three major initiatives across the CSU: $100M will go to much-needed deferred maintenance and academic infrastructure, CSU Bakersfield will receive $83M for its Energy Innovation Center and the remaining $50M will be allocated towards improvements to CSU University Farms.
   
   Lupei also discussed the Governors’ proposed 5-Year Compact which would be contingent on his re-election. The compact would provide a 5% General Fund increase to the CSU base budget for each year through 2026-2027 if certain goals are met by the CSU. There are five major areas that have specific goals, those areas include: increasing access, improving student success and advancing equity, increasing affordability, increasing intersegmental collaboration, supporting workforce preparedness, and providing access to online course offerings.
   
   A brief discussion ensued regarding the proposed compact. M. Monir Ahmed, CFO and Vice President for Administration and Finance, noted that the compact is not an ideal plan for the CSU. It limits the budget increases to the CSU to the 5% the Governor is proposing wherein a given year there may be more funding available in the state. The Legislative Analyst's Office has provided its analysis on the Governor’s Budget Proposal to the CSU and the 5-Year Compact, the report is currently available linked here.
   
   Lupei reviewed the upcoming stages for the Spring CSU Budget Timeline. In April the Chancellor’s Office will release its initial budget memo. Then, in May the Governor will release a budget revision followed by the final budget in June. Once the budget is approved and released in June the CO will release the final budget memo to the Campuses in July.
    
5. Announcements for the Good of the Order
   None

Moranski adjourned the meeting at 10:05 am. 

Minutes prepared by Shawn Taylor.