PRESIDENT’S BUDGET ADVISORY COMMITTEE
May 16th, 2019
MEMBERS PRESENT:
Lisa Vollendorf Provost, Executive Vice President of Academic Affairs; Chair
Joyce Lopes Vice President of Administration and Finance; Vice-Chair
Gregory Sawyer Vice President for Student Affairs
Gordon McDougall Interim 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
Laura Krier Proxy for Mark Perri, Chair of APARC; Chemistry Department
Laura Lupei Senior Director for University Budget and Planning, A&F
Elisabeth Kettmann Staff Representative, Biology Department
Arden Childers 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:
Katie Robinson Budget Director, Administration and Finance
Anna Reynolds-Smith Director, Administrative and Financial Planning, Student Affairs
Christina Gamboa Past Vice President of Finance, Associated Students
MEMBERS ABSENT:
Judy K. Sakaki President, Sonoma State University
Erma Jean Sims CFA Representative; Literacy Studies & Elementary Ed.
Carly Chatterley President, Associated Students
Carmen Works Past Chair of the Faculty; Chemistry Department
AGENDA
- CALL TO ORDER AND WELCOME
- APPROVAL OF THE AGENDA AND MINUTES: April 18th, 2019
- 19/20 BUDGET PROPOSAL
- RECAP YEAR’S ACCOMPLISHMENTS
- 19/20 PBAC GOALS
- ANNOUNCEMENTS FOR THE GOOD OF THE ORDER
I. CALL TO ORDER AND WELCOME
Provost and Executive Vice President of Academic Affairs, Lisa Vollendorf, welcomed the committee and began the meeting at 8:30 am.
II. APPROVAL OF THE AGENDA AND MINUTES
Vollendorf introduced the agenda and asked if there were any additions. Hearing none, Vollendorf requested a motion to approve the minutes of the April 18th meeting. Minutes were approved unanimously.
III. 19/20 BUDGET PROPOSAL
(Please see the May 16th agenda packet for related documents)
Laura Lupei presented the 2019-20 Budget Proposal to the committee for their feedback. Lupei started with a review of the total 2018-19 Campus Budget, which is $141.5M. The 2019-20 Preliminary Budget Memo includes a $6.3M dollar increase to the Campus Budget in the following categories: retirement, health, and compensation ($4.4M), enrollment growth ($1.1M), average unit load increase ($232K), Graduation Initiative 2025 increase ($1.05M), and the reduction in the Financial Aid State University Grant ($-506K). An additional $90K in base funding will result from the reallocation of funds from the merchant fees and savings in University Lease Payments due to the changes in the Cost Allocation Plan, totaling $6.4M in new funding for the 2019-20 fiscal year. There are three base funding commitments for the 2019-20 fiscal year, which will utilize the new $6.4M. These commitments include: an increase to retirement, health, and compensation ($4.4M); the reduction of Financial Aid State University Grant ($506K); and the distribution of Graduation Initiative 2025 funding ($1.05M). After the committed base funded items, there is $1.4M remaining to allocate. The $1.4M is proposed to be used by funding the following items: the reduction in the application fee and enrollment confirmation deposit fees ($132K), the 2019-20 cost recovery base reduction ($613M), the loss of Pell Federal Admin revenue ($9K), the increased costs to the risk pool ($159K), and distributing growth funding to Academic Affairs ($523K). The committee asked if it was appropriate to distribute growth funding in a year where enrollment is down. Vollendorf replied it was determined that the lower enrollment is viewed as a one-time situation, and the funding will be needed as the campus starts to see growth.
After the distribution of the $6.4M in base funding for 2019-20, there are three more items which need funding for the year. The proposed plan is to utilize one-time funding to fund the 2019-20 residential tuition fee reduction due to the drop in headcount ($1.4M), additional funding for the 2019-20 benefits pool ($500K), and the Zinfandel classroom rent ($200K). The total one-time funded items in 2019-20 equal $2.1M, which will come from the University Reserve. Currently, the University Reserve has a balance of $5.9M, which does not include the upcoming distribution of 2018-19 University-Wide FY ending balance. The committee agreed with the proposed allocations for the 2019-20 year.
IV. RECAP YEAR’S ACCOMPLISHMENTS
(Please see the May 16th agenda packet for related documents)
The committee reviewed the year’s accomplishments in preparation to send the annual report to President Sakaki. In this past year, the committee spent a significant amount of time working through strategic budgeting practices, which included reviewing the University Reserve, overseeing the shift in the budget timeline and merging it with the campus strategic planning timeline, and providing feedback and guidance on the first annual Budget Call. The University Budget Oversight Policy was vetted through PBAC this year and endorsed by the committee. There were also two successful Campus Budget Forums, as well as the 2019-2020 budget planning the committee gave feedback on and reviewing the new Cost Allocation methodology.
V. 19/20 PBAC GOALS
(Please see the May 16th agenda packet for related documents)
The committee discussed goals for the upcoming year, which included continuing with the two Campus Budget Forums and strategic budgeting practices. As Questica is rolled out to the campus, it will be a goal of the committees to provide feedback on the reporting done through the software's dashboards. A final goal for the committee will be to create a contingency framework where there are guidelines and a process for the campus contingency to be utilized.
VI. ANNOUNCEMENTS FOR THE GOOD OF THE ORDER
None.
Vollendorf adjourned the meeting at 9:30 am.
Minutes prepared by Hayley Avery.