Business and Finance


A MESSAGE FROM THE VICE CHANCELLOR

November 2001

NEWS FROM THE DEPARTMENTS

 


NEWS FROM THE DEPARTMENTS

BUDGET OFFICE, 
John Richards, Director

2002/03 Support Budget Adopted

On October 25, 2001 the Board of Trustees adopted the California State University Support Budget request for fiscal year 2002/03. While recognizing the current fiscal situation facing the state, the Chancellor and the Board expressed the importance of continuing to plan based on the Partnership Agreement with the Governor. This importance is reflected in the need to provide for access as the top CSU priority. Current year 2001/02 enrollments are estimated to be more than 8,400 FTES over funded targets. Managing enrollments for next year will be a challenge, so the budget request includes an increase of 12,030 FTES over the current year funded target, or about 4% which incorporates the projected 8,400 FTES over-enrollment in 2001/02.

The total increase requested is $269.1 million, including $245.4 million in General Fund dollars plus $23.7 million in increased State University Fee revenue as a result of additional enrollment. Again for next year, no fee increase is proposed.

Highlights of the 2002/03 Support Budget Request:

$21,613,000

for mandatory obligations, including $10.7 million for health benefit increases

$106,617,000

for 4 percent enrollment growth (12,030 FTES), year-round enrollment support (1,923 FTES), and student financial aid

$89,496,000

for a 4 percent compensation increase for all employees effective July 1, 2002

$14,000,000

to finance purchase and refresh of technology-related network equipment and operations

$6,000,000

to address long-term shortfalls in funding for library acquisitions

$6,000,000

to continue reductions in the backlog of deferred maintenance

$10,000,000

to improve access to academic programs important to California's workforce and economic development

$10,000,000

to improve student advising services and technology-based student administrative services

$5,000,000

for applied research programs related to agriculture, marine studies, water, and biotechnology

$300,000

for off-campus center relocation and growth at CSU Fullerton - El Toro

2002/03 Lottery Revenue Budget Adopted

Also on October 25, 2001 the Board adopted the 2002/03 Lottery Revenue Budget. In light of projected softness in the state's economy and growing uncertainty over the level of CSU support budget appropriations, a conservative estimate of expected revenue is prudent as the CSU plans for fiscal year 2002/03. Lottery revenue that will be available in 2002/03 is estimated to be $42.8 million. After providing for a $5 million systemwide reserve, the amount available for allocation is $37.8 million. Consequently, the budget adopted for next year will provide the same amounts for system programs and campus-based programs as in the current year.

More information on both proposed budgets for 2002/03 is available on the web. http://www.calstate.edu/Budget/

Annual Student Fee Report

CSU student fee policy requires that an annual campus student fee report be presented to the Board of Trustees to allow the board to consider the level and range of fees charged to students. The annual student fee report is included as a November board agenda item.

Also, included in the annual student fee report item is the comparison institution fee survey, which provides academic year resident, undergraduate student fee levels charged at 15 CSU comparison institutions.

BUSINESS PLANNING & INFORMATION MANAGEMENT
Lenore Rozner, Assistant Vice Chancellor 

Housing Assistance Needs Assessment

The housing needs assessment study has been completed and copies of the final campus reports have been mailed to the Presidents and campus liaisons at the twelve participating campuses. A summary report combining the major findings of the campus assessments has also been prepared and mailed to all campus Presidents. The assessments include the results of interviews with administrators, deans and search committee chairs who have been involved in staff and faculty recruitments, focus groups with recent faculty and staff hires, interviews with candidates who declined offers of employment with the CSU and a housing market gap analysis to assess the affordability of housing in the areas surrounding campuses where the majority of new hires have elected to live. Information about the report may be obtained by contacting Glenn Ducat at (562) 951-4555.

Quality Improvement (QI) Programs

4th Annual Quality Improvement Symposium

The 4th Annual Quality Improvement Symposium was the next step in the quality journey for 270 attendees on November 2nd. The audience was encouraged by keynote speaker Mark Graham Brown to measure what counts and not make the "Ten Stupid Measurement Mistakes." Breakout sessions offered information for different QI experience levels ranging from Introduction to QI, to Integrating QI with Accountability. For the second year, QI presented awards at the luncheon. QI 2001 Award winners are:

  • Distinguished Service - Don Coan, Long Beach
  • Quality Improvement Facilitator of the Year - Beverly Gentry, San Bernardino
  • Function Chair of the Year - James Licano, Mail Services Function, Northridge
  • Most Valuable Team of the Year - The Balanced Scorecard Steering Team, Fullerton Administration Division
  • Honorable Mention Teams - Environmental, Health, and Instructional Safety, Fullerton, and Parking Citation Review Process, San Jose

Customer Satisfaction Survey Spring 2002

The QI five-year plan includes administering the customer satisfaction survey in alternating years. In this, the first year of the plan, the survey is being offered for spring 2002. All campuses are encouraged to participate in this systemwide effort, especially those who did not participate in spring 2001. Selections of functions to be surveyed and number of surveys required must be indicated on the on-line request form http://www.calstate.edu/Qi/qi_cssurvey/qiccsurvey.shtml by November 30.

Performance Measurement 2001

During fiscal year 2001/2002, campuses can individually elect to submit data via the on-line QI performance measurement website. Functional data is due in January. Results will be calculated and available to campuses by March 2002. No data analysis or systemwide report will be produced this year, except for the Procurement function. At the conclusion of their data collection effort, procurement representatives will review and analyze the data and publish the performance measurement results. Questions regarding the procurement measurement effort can be directed to Dolores Basilio at dbasilio@calstate.edu.

PbViews Implementation Update

The PBViews performance management software implementation is underway on fifteen CSU campuses. Campus project leaders have received system administrator training and end user training is currently being offered. Implementation visits have occurred at Chico, Northridge, San Bernardino, San Jose, and San Luis Obispo. Remaining campuses will be visited during November and December. For more information, contact Matthew Ceppi at mceppi@calstate.edu.

The Balanced Scorecard Training and Facilitation

The CSU has worked with Orion Development to develop a curriculum for training and facilitation on the Balanced Scorecard. This two-day workshop takes participants through Mission and Vision review, SWOT analysis, identifying strategies and defining cause-and-effect linkages, and balanced scorecard development. The training or facilitation is available from the Chancellor's Office and can be arranged by contacting John Sanders at the address below.

Process Mapping Train-the-Trainer

Another two-day train-the-trainer workshop is being held for those who have been through the CSU Process Improvement Methodology (formerly Process Mapping Methodology) and are interested in being a trainer at their campus. The two-day workshop is being held in San Diego on January 15-16, 2002. For additional information, visit the QI Calendar on the QI website.

For more about QI activities and events and the five-year plan, contact John Sanders at the Chancellor's Office, (562) 951-4556 or jsanders@calstate.edu, or, visit the QI website at http://www.calstate.edu/qi.

CAPITAL PLANNING, DESIGN AND CONSTRUCTION
J. Patrick Drohan, Assistant Vice Chancellor

ARCHITECTURE AND ENGINEERING

We now have in place agreements with three of our independent plan check firms to perform disabled access reviews on behalf of the Division of the State Architect (DSA). DSA is required by statute to verify that access to the disabled is provided in all new and renovated state facilities, including those owned by the CSU. While DSA's expertise on the subject of disabled access is unparalleled, the lead-time for their reviews has sometimes been a stumbling block in bidding our capital projects. To mitigate this scheduling impact on our projects, the California State Architect, Stephan Castellanos, signed a Memorandum of Understanding that led to our plan check firms being authorized to act as agents of DSA, and provide the required accessibility review while performing their normal Title 24 code review.

Our independent plan check firms, Esgil, Wildan, and PC Associates, have all been authorized to provide these DSA reviews. Per their amended contract, these access reviews will be accomplished within the same time frame as their Title 24 reviews (duration varies by project size). DSA has further agreed that the project approvals by these firms will be accepted as final by DSA without any further review. The State Architect retains final authority on all disable access code interpretations, and will maintain an ongoing quality assurance program to monitor the quality of these independent review firms.

Projects reviewed by the vendors, Esgil, Wildan, and PC Associates, strictly for DSA Access review will be billed at the same rate as DSA's standard access review, and the vendors will pay DSA an administrative fee from within that fee. When the DSA review is procured simultaneously with a Title 24 review, the fee will be 60 percent of the normal DSA fee.

Robert C. Schulz, AIA, Chief, Architecture and Engineering

LAND USE PLANNING AND ENVIRONMENTAL REVIEW UNIT

Capital Planning, Design and Construction (CPDC) has reorganized its departmental functions to add the Land Use Planning and Environmental Review Unit as a complement to the existing technical resources: Facilities Planning; Architecture and Engineering; Construction Management; and Plant, Utilities and Energy Units. This is in response to the expanded efforts of campuses to evaluate and implement real property development opportunities as a means to enhance non-state revenue resources that in turn can facilitate meeting their educational objectives.

This new unit will provide resources within CPDC for long-range CSU land use planning and real estate development projects through application of trustee policies, such as Executive Order 747 regarding land development. Mr. David Rosso, as Chief of Land Use Planning and Environmental Review, will be assisted by Mr. Chuck Happe and Ms. Linda Wilson. The unit is responsible for providing assistance and guidance for major property development initiatives, from pre-planning through project implementation, primarily at the early project definition and land planning phases. Training programs through this unit will focus on assisting campuses to develop critical expertise and background knowledge in property development issues that frame real estate development projects.

David A. Rosso, Chief, Land Use Planning and Environmental Review

CPDC Due Dates for CPB&G Agenda Items (January 29-30, 2002 Trustees' Meeting)

Master Plan Revisions:

November 27, 2001

All Other Items:

December 11, 2001

A complete listing of 2001/02 due dates for CPB&G agenda items is located at CPDC website http://www/tier3/PPD/Executive/index.html

 

FINANCIAL SERVICES

FINANCING AND TREASURY

Commercial Paper Program
In January 2001, the Board of Trustees approved a Tax-Exempt Commercial Paper Program. This Commercial Paper Program (CP) is a short-term financing vehicle, which is used to finance DRF projects during the construction period. Notes in the program have recently been issued at a rate that is under 2%, the lowest rate achieved in the program to date.

Monthly Investment Manager Conference Calls
Metropolitan West Securities, the Investment Manager of the CSU Investment Program, hosts monthly telephone conference updates on market issues relevant to the funds it manages for CSU. These calls are usually scheduled for the second Friday of the month at 10 AM. Campuses are encouraged to participate in these calls on a regular basis to keep up with market conditions and for the opportunity to ask questions regarding the investment program. A transcript and recording of the conference call is also available at the internet site maintained by MetWest for the CSU @ http://www.mws.com.

Richard Leffingwell, Senior Director

GOVERNMENTAL AFFAIRS,

Karen Yelverton, Assistant Vice Chancellor

Copies of CSU Legislative Reports and other legislative information pertaining to the CSU are available on the OGA website at: http://www.calstate.edu/oga

INFORMATION TECHNOLOGY SERVICES
David Ernst, Assistant Vice Chancellor

TECHNOLOGY INFRASTRUCTURE INITIATIVE

Role of the CIO
The ITAC has produced a paper on the ways in which Chief Information Officers on campus can assist the presidents in meeting the goals of the Integrated Technology Strategies. The document was presented to the Executive Council at their October Meeting. It acknowledges the leadership role of presidents in determining how CSU can best leverage technology in support of its goals and objectives, and discusses how CIOs can work together to assist in this process. The paper can be accessed at http://its.calstate.edu/main.asp?ID=1282&D=1&T=0, as can the EDUCAUSE 2001 presentation by David Ernst (AVC of ITS), Jerry Hanley and Jonathan Rood (CIOs of Cal Poly, San Luis Obispo and San Francisco State, respectively).

Measures of Success
The third annual Measures of Success (MOS) will be presented to the Legislature at the end of November. The MOS resulted from an agreement between the Legislature and the CSU to show how the investment in technology infrastructure will, over time, help CSU achieve the outcomes specified in the Integrated Technology Strategy through various initiatives. The outcomes are: Excellence in Learning and Teaching, Quality of the Student Experience: Administrative Quality and Productivity, and Personal Productivity. These outcomes are achieved through various initiatives such as the Electronic Core Library Collection, the Pharos project, MERLOT and CMS. The 1999/2000 MOS can be accessed at: http://its.calstate.edu/template.asp?FileName=data_collection.asp, as can information about the project. In addition, the 2000/2001 MOS will be posted there as soon as it is published.

The Business and Finance Newsletter is accessible from the Chancellor's Office website http://www.calstate.edu/BF/. Questions related to receiving the B&F newsletter or changes in e-mail addresses should be directed to James Francel at (562) 951-4547 or jfrancel@calstate.edu.