BUSINESS AND FINANCE NEWS
August 17, 1995
The California State University
Business and Finance Division
Richard P. West, Vice Chancellor
THE VICE CHANCELLOR'S DESK........
The four-year budget compact put forth by the Governor has allowed us to begin to develop more effective and timely resource allocation plans that consider the entire spectrum of resources available to the CSU. We have already begun initial discussions with Executive Council and the Board of Trustees exploring the potential benefits from linking the capital and operating budgets where appropriate to enhance campus flexibility in addressing the needs of our $7 billion physical plant. The allocation of enrollment targets should be completed much earlier this year than last as we can be somewhat more confident about our level of revenue. Preliminary allocations for 1996/97 should be available to campuses early enough to allow campuses to align internal plans with available resources. Other efforts described below, such as the workshops on the use of multiple award schedules and the use of process mapping to identify and eliminate non- value added process steps, should also provide opportunities to make better use of existing levels of funding. All of these efforts are designed to enhance the ability of the campus to plan and operate in ways that best meet local needs and priorities. If you have suggestions about other ways that we can be helpful, please drop me a line at email@example.com.
Richard West, Vice Chancellor, Business and Finance
Due Dates for Board of Trustees Agenda Items (Nov. 7-8, 1995, Trustees' Meeting)
Master Plan Revisions (PP&D): September 12, 1995
All Other Items: September 26, 1995
NEWS FROM THE DIRECTORS
Well, the "budget battles" are over for another year as the Legislature and the Governor finally came to terms on a spending plan for California in 1995/96. On August 3, 1995, Governor Wilson signed AB 903 into law as Chapter 303, Budget Act of 1995/96. The new budget contains several important components that will have both short and long-term impact on the CSU:
Total Support Appropriation: $2.3 Billion-an increase of 3.1%
General Fund Support increase of $65.4 Million provides
No Student Fee increase for 1995/96 -- Undergraduate or Graduate differential
Transfer of the California Maritime Academy to the CSU and first year of enrollment at CSU Monterey Bay
In addition, Governor Wilson committed to providing an annual General Fund Support increase of 4% per year for the next three years which will allow more effective multi-year budget planning. A detailed presentation of the 1995/96 CSU Budget will be made to the Trustees at their September Board meeting.
Note to Internet users: The Budget Office now has a home page on the Internet. The page has a link to the Budget Act of 1995 as well as many of other sources used in the CSU budget process. To access our Web server, point your Web browser to: http://www.co.calstate.edu/bo
If there is information you would like to see on our home page, drop an e-mail to firstname.lastname@example.org.
For additional information, please call.........
John Richards, Director
Contracts and Procurement
In principle, the Office of General Counsel has approved the task force- developed acquisition policy for ITR procurements. As soon as minor changes have been incorporated into the policy and it is signed by Vice Chancellor Richard West, distribution will be made to campuses.
Several campuses have asked for clarification on how to use California Multiple Award Schedules (CMAS). A half-day training session has been scheduled on August 29 at the Chancellor's Office. Presentations will be made by several CMAS vendors and Department General Services (DGS) staff. Campus procurement staff are encouraged to attend. For additional information about this training, campuses should contact either Charleen Wood or Linda Masterton at the Chancellors' Office. If warranted, an additional training session will be scheduled for the northern campuses.
In an effort to provide campuses with greater ease of access to contracting resources, the "Contract Services and Procurement" (CS&P) home page on the Internet has been developed. Information and services currently available or planned in the future include:
The CS&P home page can be found by selecting from the CSU home page "CSU Chancellor's Office" then "Contract Services and Procurement." Alternatively, you may go directly to the page by selecting "Open" or "New URL" and typing the address "http://www.co.calstate.edu/Business Finance/CSP/". The home page will be an ongoing project and suggestions are always welcome on how to better provide information resources.
Minority/Women/Disabled/Veterans Business Enterprises (MWDVBE) Update
Supreme Court Decision
The recent 5 to 4 Supreme Court decision, Adarand Constructors vs. Frederico Pena, Secretary of Transportation, established two standards the court will utilize when reviewing the constitutionality of business minority contracting programs.
Governor Wilson's Executive Order
Governor Wilson's recent executive order does not affect the CSU's Supplier Diversity program. Such programs established by state and federal law cannot be eliminated by an executive order of the Governor.
California State Senator Polanco introduced Senate Bill (SB) 617, that authorizes the Department of General Services (DGS) to grant waivers from PIA procurement requirements if it determines that a product or service provided by PIA is not a "best value purchase." The bill requires DGS to develop procedures for requesting, granting and denying waivers as well as a definition of "best value purchase." SB 617 requires the waiver process be implemented no later than July 1, 1996.
In response to the CSU Commission on Institutional Management and Information Technology (CIMIT), an RFP (A950011) has been released for a procurement planning consultant. The consultant will conduct a feasibility study for a multi-campus or systemwide procurement and materials management model to improve operational effectiveness and leverage the CSU's purchasing power utilizing state-of-the-art information technology. The bidders conference in August was well attended. Seventeen firms or individuals have expressed intent to respond. Proposals are due September 1 with contract award anticipated in mid-October. Don Green, PSSO, Cal Poly Pomona, and Ray Macias, PSSO, Cal Poly San Luis Obispo, have been appointed to the RFP project team to provide campus procurement representation.
Procurement Card Update:
The CSU procurement card program implemented this spring continues to grow. Approximately 45 procurement cards have been issued to the Chancellor's Office and seven CSU campuses. The program is in various stages of implementation and utilization.
The current DGS contract for procurement card services with Rocky Mountain Bank expires on September 30. DGS has released an RFP for a new master state contract with responses due mid-August. Contract award is anticipated by the end of August. The RFP requires the successful contractor to "charge participating entities a fee for DGS' management and coordination of the statewide purchase card program." The amount and calculation of the fee has not yet been determined and may involve either a per-card fee, a per- transaction fee or a simple monthly fee.
For additional information, please call.......
Pat Dayneko, Director
Physical Planning and Development
The Capital Outlay portion of the final 95/96 State Budget approves 46 items for CSU, totaling nearly $161 million. This represents an increase of over $30 million from the original Trustees' request because the Governor agreed to provide funding for debt service for $150 million of capital financing called for in the higher education compact. The Legislative Analyst's Report on the Governor's Budget identified a number of issues, which were resolved successfully through negotiations with the Legislative Analyst and the Department of Finance. The Conference Committee approved seven of eight seismic rehabilitation projects, an important accomplishment in moving forward with this critical program.
The Office of Physical Planning and Development is finalizing an exciting agenda for our annual systemwide conference on capital planning and construction, plant operations, and environmental health and safety. The conference will be held on October 22-25, 1995, at the Marriott Mission Valley Hotel in San Diego.
The theme this year, "Technology: Planning a Bridge to the Future", will focus on technology and planning for its use in the future development of higher education facilities and programs. On Monday, October 23, Assemblywoman Marguerite Archie-Hudson, chair of the Assembly Committee on Higher Education, will share with us her unique legislative perspective on related issues and their impact on our university system.
Executive Vice Chancellor Molly Broad will bring to us her insights on the roles and findings of the CSU presidential commissions and task forces currently addressing uses of technology. She will also discuss the importance of telecommunications infrastructure in capital outlay planning.
In addition, we are lining up presentations from future technology oriented firms involved with design and implementation of advanced communications and information management systems. Our joint conference last year with the University of California was an overwhelming success, with over 450 people participating from 30 campuses. While this year's conference will not officially be a joint event, we are anticipating participation from both UC and CCC personnel. Special events are also part of the agenda, starting with the annual SDSU homecoming football game on October 21st. Recognizing the many visitor attractions in the San Diego area, a special rate for those arriving early or staying extra days has been negotiated with the hotel.
Jon Regnier extends an invitation to Chancellor's Office staff and all system personnel, particularly those involved with the application of technology in their responsibilities. A draft agenda and registration packet are available by calling Ms. Glenda Echols in PPD at (310) 985-9493, or you can "E-mail" your request to her.
Environmental Resources (ER) has received accreditation from the California Department of Health Services to provide "Lead-Related Construction Supervision and Project Monitoring" courses. A 40-hour Lead-Related Construction Supervision and Project Monitoring Course was held June 26- 30. The course content followed HUD, Federal EPA, CalOSHA, Department of Toxic Substances Control, and Department of Health Services' guidelines. ER organized this innovative and unique program in partnership with CSU Long Beach Extension Services. As part of ER's efforts to serve CSU campuses, tuition for campus staff was subsidized by fees paid by private industry. This project is part of ER's program to provide CSU campuses with certified individuals as will be required under new state and federal guidelines.
Environmental Resources (ER) successfully negotiated a change of proposed regulatory language with the California Integrated Waste Management Board. As originally written, the proposed regulations would have negatively affected CSU campuses by hindering soils handling and recycling operations. Lincoln Castro, ER Compliance Advisor, is the lead contact for this functional area.
For additional information, please call........
Jon Regnier, Senior Director
Planning and Analysis
The Process Mapping teams on Student Counter Services and Building Design and Construction have completed their final reports with the assistance of the Coopers and Lybrand (C&L) consultants. The recommendations will be discussed at the Chief Administrators/Business Officers (CABO) meeting in late August. Five campuses have agreed to participate in a process mapping effort of the Workers Compensation and Unemployment Insurance processes in 1995/96. An RFP will be developed soon for a third party to assist in the mapping. Actual process mapping will begin early in 1996.
Sixteen campuses will be participating in the NACUBO benchmarking project for 1995/96 and negotiations have been completed with Coopers & Lybrand (C & L) to assist us in the project. (C&L is the exclusive partner on this project for NACUBO nationwide.) Nine functions will be benchmarked this cycle: Accounts Payable, Admissions & Records, Environmental Health & Safety, Facilities, Financial Aid, Human Resources, Information Technology, Procurement and Student Accounts Receivable/Billing. A meeting with the function chairs, the task force and C&L will occur in mid-September, with further training sessions in early November. The data is due to NACUBO by January 31, 1996.
The program will continue in 1995/96. We will be sending out more information and guidelines in early September. All of the 1994 and 1995 program information has now been entered into a database by Judy Riopelle so that statistics can be accessed quickly. Thanks, Judy!
In collaboration with C.O. Academic Affairs we are entering into a co- development project with Cambridge Decision Dynamics on a customized modeling tool to assist in systemwide strategic planning. Using computerized modeling and graphical interfaces, the tool will help in identifying and representing potential long term results of current decisions. Data gathering will occur this fall and a preliminary model will be available in the spring of 1996.
As many of you know, T. Michael Ford left the CSU for a position in the Indiana State University system. We wish him well in his new job. In his place, Ron Ashcroft, most recently from the Chancellor's Office Accounting Department, has joined my group as Senior Business Analyst effective August 2, 1995. We are happy to have him in the department! You can reach him at (310) 985-2706.
For additional information, please call.........
Lenore Rozner, Senior Director, Planning and Analysis
The Business and Finance Newsletter is now accessible from the Chancellor's Office