Sonoma State University

May 14, 2020 Minutes

Minutes

PRESIDENT’S BUDGET ADVISORY COMMITTEE

May 14th, 2020

 

MEMBERS PRESENT:

Lisa Vollendorf Provost, Executive 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 Gregory Sawyer Vice President of Student Affairs

Mario Perez Vice President of University Advancement

Hollis Robbins Dean, School of Arts and Humanities

Laura Watt Chair of the Faculty; GEP Department

Melinda Milligan Vice-Chair of the Faculty; Sociology Department Sean Place Chair of APARC; Biology Department

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 Kara Rabbitt ACE Fellow, William Paterson University

Anna Reynolds-Smith Director, Administrative and Financial Planning, Student Affairs Katie Robinson Budget Director, Administration and Finance

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

 

 

MEMBERS ABSENT:

Erma Jean Sims CFA Representative; Literacy Studies & Elementary Ed.

 

 

AGENDA

 

  1. CALL TO ORDER AND WELCOME
  2. APPROVAL OF THE AGENDA AND MINUTES: April 15th, 2020
  3. ANNOUNCEMENTS FOR THE GOOD OF THE ORDER
  4. BUDGET PLANNING UPDATE
  5. VIRTUAL BUDGET FORUM
  6. SUMMER SHARED GOVERNANCE

 

  1. CALL TO ORDER AND WELCOME

CFO and Vice President of Administration and Finance, Joyce Lopes, welcomed the committee and began the meeting at 8:30 am.

 

  1. APPROVAL OF THE AGENDA AND MINUTES

Lopes introduced the agenda and asked if there were any additions. Hearing none, Lopes requested a motion to approve the minutes of the April 15th meeting. Minutes were approved unanimously.

 

  1. ANNOUNCEMENTS FOR THE GOOD OF THE ORDER

 

Lopes introduced three new people who were in attendance, Jeffrey Reeder - 2020/21 Chair of the Faculty, Melissa Kadar - 2020/21 Associated Students President, and Jonathan Dominguez - 2020/21 Associated Students Vice President of Finance.

 

  1. BUDGET PLANNING UPDATE

 

Laura Lupei presented the 2020/21 budget planning update to the committee. To begin, Lupei reviewed what the 2020/21 year looked like as of February 2020. As reviewed previously, since 16/17 the University has been in an enrollment decline, which has resulted in a reduction in revenue to the University. Data presented to the committee shows the University has dropped 486 heads in the 19/20 year, equaling approximately a $2.9M loss in revenue. This revenue shortfall is being managed with one- time funds for the 19/20 year but will need to be addressed in the base for future years. It was projected in February that the University will drop an additional 122 heads from 19/20 to 20/21, equaling an added

$700K in lost revenue. Over the two years, that would have been a projected loss of $3.6M in revenue. At that time, the cabinet approved a 3% reduction in the campus budget totaling about $4.5M.

 

Since February 2020, there have been several updates to enrollment figures that have had great effects on the University’s Budget. The projected enrollment loss from 19/20 to 20/21 is now 1,782 heads, totaling a drop of 2,268 heads over two years. This enrollment decline results in $12.5M in lost revenue. The COVID-19 events have also affected the state budget planning process, which will in result have impacts on the University’s budget. Due to COVID-19, the state budget process has effectively started over. What was presented in the January Governor’s budget is no longer in effect and the campus is projected to receive less funding from the state. There is, however, federal funding that will be given to the University that will help bridge some of the revenue loss from going remote for the remainder of 2019/20. Sonoma State is projected to receive $9.7M from the CARES Act Funding, with $4.5M being directly distributed to students for financial aid. The remaining $5.2M can be used to cover costs associated with the change in service delivery due to COVID-19. The campus will have to report on how the CARES Act funding was spent and is subject to audit by the Federal Government.

 

Taking into account all the changes since February 2020, the Campus is now planning for a reduction in the Campus Budget of $21.7M. Currently, headcount is at 6,670 which is a 21.1% reduction from the prior year and is a $12.7M revenue loss. There is a 10% projected state budget reduction that will be around $8.1M, and there is a $900K projected loss in cost recovery revenue for 2020/21. The Chancellor's

Office has recently decided that campuses will provide remote instruction in Fall 2020 which will have significant financial impacts on the University's Self Support and Auxiliary programs. Self Supports & Auxiliaries are projecting a combined revenue loss of about $21.4M due to the decision to go remote in Fall, as well as the decline in enrollment. Projected reserve levels for these programs are $41.2M, which will be a main source of funding for Self-Support and Auxiliary programs to remain fiscally solvent.

Lupei then reviewed the campus debt payments for the upcoming 2020/21 year. These payments are particularly important while budget planning for revenue losses because the payments are not flexible, the University must pay them, and in 2020/21 the estimated amount of debt payments are $15.6M.

 

There are a handful of planning strategies that are in place to help take steps toward solving the projected budget deficit. There has been a system-wide hiring chill that will slow the pace of hiring, requiring units to only fill mission-critical positions. The strategic use of reserves will help bridge some of the revenue loss on a one-time basis, and the campus is practicing value-based decision making ensuring all actions taken are in line with core values and strategic priorities. Moving forward, the campus will have to remain flexible as things are changing frequently and will continue to plan for multiple scenarios.

 

  1. VIRTUAL BUDGET FORUM

 

The Spring Budget & Planning Forum was canceled in early March due to COVID-19. Now that the University has transitioned to a remote working environment, Lopes proposed that a virtual budget forum be put together. The presentation would be recorded and sent out to the campus to continue to keep constituents informed. The committee supported the idea and encouraged any form of communication with the campus to ensure they are up to date with budget planning.

 

  1. SUMMER SHARED GOVERNANCE

 

Lopes proposed to the committee a potential need to meet over the summer as things are changing rapidly and it will be crucial to get their feedback on budget planning heading into the 2020/21 year. The committee was in support of the proposed summer meetings and they will be scheduled on an as-needed basis.

 

 

 

Lopes adjourned the meeting at 9:35 am. Minutes prepared by Hayley Avery.