Sonoma State University

June 19, 2020 Minutes

Minutes

PRESIDENT’S BUDGET ADVISORY COMMITTEE

June 19th, 2020

 

MEMBERS PRESENT:

Karen Moranski Interim Provost, Executive Vice President of Academic Affairs; Chair Joyce Lopes Vice President of Administration and Finance; Vice-Chair

Mario Perez Vice President of University Advancement

Hollis Robbins Dean, School of Arts and Humanities

Laura Watt Chair of the Faculty; GEP Department

Sean Place Chair of APARC; Biology Department

Erma Jean Sims CFA Representative; Literacy Studies & Elementary Ed. Laura Lupei Senior Director for University Budget and Planning, A&F Elisabeth Kettmann Staff Representative, Biology Department

Melissa Kadar President, Associated Students

Jonathan Dominguez Vice President of Finance, Associated Students

 

 

STAFF PRESENT:

Elias Lopez AVP for Academic Resources, Academic Affairs

Hayley Avery Budget Manager, Administration and Finance

 

 

GUESTS PRESENT:

Laura Monje-Paulson Assistant Vice President for Assessment & Strategic Operations, SA Anna Reynolds-Smith Director, Administrative and Financial Planning, Student Affairs Natalie Sanchez Budget Director, Administration and Finance

Jeffrey Reeder Incoming Chair of the Faculty, Modern Languages & Literature

 

 

MEMBERS ABSENT:

Jerlena Griffin-Desta Chief of Staff and AVP for Strategic Initiatives and Diversity Gregory Sawyer Vice President of Student Affairs

Melinda Milligan Vice-Chair of the Faculty; Sociology Department

 

 

AGENDA

 

  1. CALL TO ORDER AND WELCOME
  2. APPROVAL OF THE AGENDA AND MINUTES: May 14th, 2020
  3. ANNOUNCEMENTS FOR THE GOOD OF THE ORDER
  4. 2020-2021 BUDGET PLANNING UPDATE
  1. CALL TO ORDER AND WELCOME

Interim Provost and Executive Vice President of Academic Affairs, Karen Moranski, welcomed the committee and began the meeting at 8:30 am.

 

  1. APPROVAL OF THE AGENDA AND MINUTES

 

Moranski introduced the agenda and asked if there were any additions. Hearing none, Moranski moved to the next agenda topic. The minutes were not approved from the May 14th meeting and will be moved to the next meeting’s agenda.

 

  1. ANNOUNCEMENTS FOR THE GOOD OF THE ORDER

 

None.

 

  1. 2020-2021 BUDGET PLANNING UPDATE

(Please see the June 19th agenda packet for related documents)

 

Laura Lupei presented the 2020-21 budget planning update to the committee. Since May, there have been updates to the projected enrollment deficit. The projected enrollment loss from 19/20 to 20/21 is now 1,268 heads, totaling a drop of 1,754 heads over two years. This enrollment decline results in $9.9M in lost revenue. In addition to the enrollment revenue loss, there is a 10% projected state budget reduction that will be around $8.1M and a $704K projected loss in cost recovery revenue for 2020-21. Lupei outlined something that was not included in the previous budget planning presentation, which is $1.7M in unfunded mandatory cost the University is anticipating. Included in the unfunded mandatory costs are anticipated benefits increases and the costs will contribute to the 2020-2021 budgeted deficit. With the enrollment shortfall, the reduction in state allocation and cost recovery revenue, and the addition of the unfunded mandatory costs, the total 2020-2021 Operating Fund projected deficit is $20.4M.

 

Lupei then reviewed four main strategies that are being developed to take steps toward solving the projected budget deficit. The first strategy is utilizing $1M of Operating Reserves following the University Operating Fund Reserve Policy. This provides a temporary solution to the base deficit but will help bridge the gap as the deficit quickly became much larger than originally anticipated. Pausing phase II of the Staff Equity increases is another strategy being put in place. Pausing the phase II equity will result in a mix of one-time and base savings to be applied to the deficit. The third strategy is the central pooling of the salary savings of the vacant position funds across divisions, which will result in additional one-time funding for the deficit. The final strategy will be reissuing the Budget Call to Divisions. The Budget Call will be revised to include a 12% reduction by Division. Each Division will be required to meet the 12% reduction with a mix of one-time funding and base reductions. Reissuing the budget call is the main strategy from a dollar amount standpoint resulting in approximately $15.2M to be applied to the 20/21 deficit. All four strategies total a projected $17.6M to utilize for the deficit, leaving about $2.8M to be resolved by the end of the 2020-21 year.

 

Moranski adjourned the meeting at 9:20 am. Minutes prepared by Hayley Avery.