November 4, 2021 Minutes

PRESIDENT'S BUDGET ADVISORY COMMITTEE

November 4th, 2021

MEMBERS PRESENT:

STAFF PRESENT:

GUESTS PRESENT:

MEMBERS ABSENT:

AGENDA

1. Call to Order and Welcome
2. Approval of the Minutes: October 21^st, 2021
3. 2022-2023 Budget Planning
4. Fall Budget and Planning Forum Planning
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: October 21^st, 2021
   Moranski introduced the agenda and asked if there were any additions. Hearing none, Moranski requested a motion to approve the minutes of the October 21st meeting.  Minutes were approved unanimously.
    
3. 2022-2023 Budget Planning
   Laura Lupei presented the 2022-2023 Budget Planning update. To begin, she revisited that over the past three years, the campus headcount has dropped about 2100 students. This steep decline in enrollment has affected the multi-year planning assumptions for enrollment projections. The current assumptions used to project enrollment include; utilizing prior year (Fall 2021) yield rates, utilizing prior year (Fall 2021) application rates and then, updating yield rates with rolling year averages as rates change and improve for 2023-2024 and beyond.
   
   The current year’s projected headcount is 6927. For FY 22-23 and FY 23-24, it is projected that there will be a 5% decrease in enrollment each year. This will bring enrollment to 6580 (22-23) and 6239 (23-24). Starting in FY 24-25, we expect a rebound of approximately 6% leading to an enrollment of 6603. In the next year, FY 25-26, we are projecting a 7% growth to 7035. Even with the eventual increase in enrollment, the projected decline in enrollment over the next two years will increase the campus deficit.
   
   There are currently two scenarios proposed to resolve the deficit. The first scenario entails taking 50% of the base deficit in base reductions over the next three years. The other 50% of the base reduction would be compiled of various one-time funding strategies. Scenario two is similar but entails taking 33% of the base deficit in base reductions over the next four years and the remaining deficit would be resolved using various one-time funding strategies. Both scenarios will need to be a mix of onetime and base approaches and should focus on areas affected by the loss in enrollment. As enrollment returns, the funding can be restored to the areas that took base reductions.
   
   Provost Moranski mentioned that the multi-year enrollment assumptions are based on one of the worst years on record for enrollment so the model is appropriately conservative. Ian Hannah inquired about using lower application standards to help increase enrollment and Moranski countered that it had been implemented already and we are currently using the lowest standards for admittance. Verrier questioned when we would consider being a smaller campus. Moranski explained that the campus is set up for 10,000 FTES and has housing for 3,000 and that the perspective of the Chancellors Office and the Cabinet is that the campus is currently experiencing a decline in enrollment but is well positioned to return to a pattern of growth and reach our Master Plan potential.
   
   Lupei then went over the next steps in the budget planning cycle for the coming months. In December, the Cabinet will be setting their planning year budget assumptions and priorities. In February the budget call will go out to the various units on campus for them to start 2022-2023 budget planning. By March, the divisions will have their budget plans submitted to University Budget and Resource Planning. The University Budget and Resource Planning team will provide projections and draft planning year budgets to PBAC and Cabinet in April so that the final planning year budgets can be finalized in May.
   
   As the campus engages in reduction conversations for the 2022-2023 budget planning, Lupei went over some of the basic Strategic Budgeting principles. Every new dollar spent must come from reducing somewhere else. This is a constant state of realignment. When new funding comes in from outside sources, such as the state budget or increase in enrollment, the realignment continues but there is less pressure to make reductions. When there is a deficit there is greater pressure to realign and divest simultaneously.
   
   Two key Strategic Budgeting principles need to be focused on going forward. First, the campus must identify priorities that align with SSU's identity and values. Secondly, and probably the more difficult is to determine acceptable levels and areas of reduced services and cycle times for Divisions and units.
   
   Currently, the Cabinet is working on preparing their priorities and assumptions for the 22-23 Budget Call. These will lead to further campus conversations so that the divisions can discuss and align their priorities. As further information is made available, the planning year assumptions will be updated.
4. Fall Budget and Planning Forum Planning
   The Fall 2021 budget forum is coming up on November 15th. The event will start with presentations from Moranski, Lupei, and Elias Lopez on the state of the campus, the Fall budget briefing, and an enrollment update respectively. After presentations, members from PBAC will moderate roundtable discussions to gather feedback and thoughts from the campus community.
    
5. Announcements for the Good of the Order
   None.

Moranski adjourned the meeting at 10:05 am. 

Minutes prepared by Shawn Taylor.