NEWS FROM THE DIRECTORS
NEWS FROM THE DIRECTORS
1998/99 Governor's Budget
The Governor's Budget provides $2.1 billion in General Fund support to CSU for the 1998/99 fiscal year. This funding level is $4.1 million over CSU support budget request and includes $6 million in new initiatives proposed by the Governor for Teacher's Preparation and CSU participation in the development of a California Virtual University.
The 1998/99 budget plan has been adjusted to reflect the Governor's Budget actions. The plan is not significantly changed from the one included in the Trustees' Support Budget request. Changes include an increase in Benefits Maintenance of $261,000 and a modification to reflect a $500,000 reimbursement from federal Goals 2000 funding in support of the Center for Teaching Careers. For detailed information on the 1998/99 Governor's Budget General Fund increase versus BOT request, please review "B&F Budget News Item" available via the Budget Office website.
1998/99 Governor's Budget Allocations
Campus budget allocations based on the Governor's Budget are scheduled to be available on March 2, 1998. Prior to that time, the Budget Office plans to make available on its Internet web site FTE and Headcount conversion tables that will be used to make revenue projections. Campuses are reminded that several calculations must be made to determine a revised revenue base and fee revenue backfill for the five percent reduction in undergraduate fee rates, as well as revenue associated with the four percent increase in enrollment. This will also involve making decisions on a pro-rata distribution of budgeted waivers based on
undergraduate and graduate enrollment. CSU headcount for 1998/99 revenue projections will be available on the website in February 1998. Campuses may review these pages and call Rodney Rideau or Mark Lopez at (562) 985-2712 if questions arise.
Next Steps in the 1998/99 Budget Process
Now that the Governor's Budget has been released, we are gearing up to review the mid-February report of the Legislative Analyst's Office (LAO) on the Governor's Budget. The first Legislative hearings have already been scheduled for the first and second weeks of March. The next milestone in the legislative process will be the submission by the Governor of the May Revise which normally is issued in the latter part of that month. The May Revise is an update of the revenue projections and proposed expenditures contained in the Governor's Budget. With a strong California economy, the revisions proposed by the Governor may be significant. Whether any of the proposals will affect the CSU budget is, of course, unknown at this time.
John Richards, Director
CONTRACT SERVICES AND PROCUREMENT
Oracle Master Agreement
The existing agreement with Oracle 49890055 has been extended to provide the 14 participating campuses with software maintenance services at additionally reduced prices. The cost is being financed through the Chancellor's Office and each year campuses are assessed a proportionate share of the costs based on a CSU designed reimbursement formula. Any campuses interested in joining this collaborative effort to contract for maintenance of Oracle software at attractive rates should contact either Russ Utterberg at email@example.com or Jackie S. Baird, CSU Procurement Manager, firstname.lastname@example.org.
Targets of Procurement Projects
CSU Procurement and Support Officers (PSSO) continue to work on establishing multi-campus/systemwide agreements whereby the leverage of the system is used to derive more competitive pricing. Agreements with Fisher Scientific for laboratory supplies, Office Depot for office supplies, and Steelcase for furniture are currently under development.
Pat Dayneko, Director
FINANCING AND RISK MANAGEMENT
The bond market has continued to experience low interest rates in the beginning of 1998. Financing and Risk Management has been working with its financial advisor and financing team to monitor the market in an effort to determine the viability of refunding existing bonds under both the housing and student union programs. As possible refundings are identified, our office will be contacting campus administration requesting information to be incorporated in the prospective bond sale documents. Thank you very much for your assistance.
Student Union Program
During March the campuses and student unions will be receiving the annual budget request memo from Financing and Risk Management. The memo will be requesting the submission of 1998/99 student union budgets in order to assure that bond indenture requirements are met. Should you have any questions or comments regarding the information, please feel free to contact Rosa H. Renaud at (562) 985-2790.
A recent IRS revenue ruling received by the CSU will enable certain auxiliary organizations that are seeking long term financing for capital projects to accomplish such financing in a less costly and more streamlined manner. The ruling enables the financing to be conducted under the "instrumentality of the state" tax law rules. However, the auxiliary organization must meet certain qualification standards in order to have the ruling apply. Projects financed under these rules will continue to require the approval of the Board of Trustees.
In a related matter, the office of Financing and Risk Management will be reviewing current policy regarding approval by the Board of Trustees for auxiliary organization long term financings. Campus vice presidents for business and finance/administration will be reviewing an item at their February 1998 CABO meeting that summarizes current practices and requests input for possible future changes.
State Pro Rata Charges
The State Department of Finance has informed us that the state prorata charges for fiscal year 1998/99 will be increasing by approximately 40 percent from the 1997/98 allocated costs. These costs affect both our Continuing Education and the Dormitory Revenue Fund Programs. The Dormitory Revenue Fund Programs include housing, parking, student unions, and health center-facilities. The increase takes into account any differences related to prior year actual costs, thereby recovering in the upcoming year any prior year over or under state expenditures. For fiscal year 1998/99, an over expenditure rollforward from fiscal year 1996/97 of $541,445 accounts for approximately 65 percent of the increase. We will be distributing the individual 1998/99 state prorata cost for each of the individual campus programs, together with other centrally paid costs, in the upcoming months. As you know, these overhead charges relate to state services from agencies such as the State Controller, Department of Finance, State Treasurer, the Board of Control, and the Legislature.
For copies of CSU Legislative Reports or other legislative information pertaining to the CSU, please visit our website at http://www.calstate.edu/oga/
INFORMATION RESOURCES AND TECHNOLOGY
For information related to technology projects within the CSU, please visit our website at http://www.calstate.edu/irt.
Tom West, Assistant Vice Chancellor
PHYSICAL PLANNING AND DEVELOPMENT
Status Report on the 1998/99 State Funded Capital Outlay Program
1998/99 Governor's Budget Summary Excerpt
"Capital Outlay. During the first three years of the Compact, UC and CSU received a total of $916.2 million for capital outlay projects. In combination with remaining balances from General Obligation bonds, UC and CSU were able to address many high-priority seismic, fire and life safety, infrastructure, and education technology projects. For 1998/99, the Budget provides each segment with $150 million in General Obligation bonds from the proposed 1998 bond measure. In addition, the Budget provides CSU with $11.3 million in existing bond moneys to fund the capital conversion of Camarillo State Hospital and Developmental Center to the Ventura Off-Campus Center of CSU Northridge.
Streamlining Capital Outlay. Over the past decade, UC and CSU have successfully managed approximately $3 billion in state-funded capital outlay projects. The 1998/99 Budget continues the Administration's efforts at streamlining the capital outlay project process at CSU to achieve administrative and project savings and to complete projects faster adding projects at UC campuses to be completed through the streamlined process. The Budget proposes a single authorization for all phases (preliminary plans, working drawings, and construction) of 21 projects within the CSU's capital budget and 10 projects within UC's capital budget."
As requested by the CSU Board of Trustees, the governor provided funding for:
Since the fiscal year started, $143 million in construction has bid (eleven projects), and $142 million has been awarded in ten contracts; the eleventh project is to be rebid in February.
In December, PPD offered training to all of the campuses for management of major capital outlay projects. Construction Management, with the aid of staff from Contract Services and Procurement and the Office of General Counsel, joined that effort with a four-hour panel presentation. A complete procedures manual, Construction Phase Manual, which includes 27 topics complete with narrative procedures and sample forms, letters, agendas for meetings, etc., for each given topic was distributed. Additional training is currently being coordinated.
Campuses Apply for FEMA/OES 404 Hazard Mitigation Grant Program Funds
Section 404 of the Robert T. Stafford Disaster Assistance and Emergency Relief Act states that the President of the United States may provide to the states, in addition to disaster relief funds, extra money in the amount of 15% of the estimated total of disaster relief to target priority hazard mitigation projects for facilities not damaged in the disaster. The 1994 Northridge Earthquake caused about $7 billion in damage eligible for reimbursement from FEMA, thus California is authorized to receive approximately $1 billion in 404 Hazard Mitigation Grant Program (HMGP) funds. Although CSU was originally shut out of the process, the application period was recently reopened statewide, and several CSU campuses have submitted proposals for the competitive process.
Jon H. Regnier, Senior Director
PLANNING AND ANALYSIS
Partnerships for the Improvement of Campus Operations, Student Services, and Academic Services Program (PICOSAS)
The "Improvement of Admission Services & Financial Aid Program" and the "Productivity and Investment Program" (PIP) have been merged to create the Partnerships for the Improvement of Campus Operations, Student Services, and Academic Services Program (PICOSAS). The program will continue to encourage campuses to create partnerships with other campuses and the Chancellor's Office to improve campus operations and services.
Approximately $1 million one-time funding will be available for PICOSAS matching fund grants, loans, and direct grants in fiscal year 1997/98. Fifty-nine proposals were received by February 12 deadline. Funding for selected projects will be made by the end of March 1998 to enable campuses to use the funds during the academic year. If you have any questions about logistical or technical matters related to PICOSAS, please contact Lawrence Lin at the Chancellor's Office at (562) 985-2705 or e-mail email@example.com for additional information.
Collaborative Management Systems (CMS) Project
During January, the CMS Task Force completed their initial evaluations of the revised proposals and "Best Offers" for integrated campus financial, student, and human resource systems software packages and services from Oracle, PeopleSoft, and SCT. Contract negotiations with these vendors began on February 23-24, 1998, and focused on clarifying various vendor specific issues identified by the participating campuses. The CMS Task Force will be working to establish master services agreements with the vendors for set CMS services and established price schedules allowing for voluntary campus participation.
The CMS Task Force has developed a scope of work for a human resource consultant to work with the CSU campuses, State Controller's Office (SCO), Public Employees Retirement System (PERS), and Payroll Information Management Systems (PIMS) to review and define the existing CSU payroll and benefit administration system under the SCO and recommend to the CSU changes in business processing of these areas with the implementation of the SCO 21st Century project. The consultant should begin work by March and present their preliminary report to the Task Force by the end of May. If you have any questions concerning CMS, please contact Lawrence Lin.
As of January 1998, prospective CSU students submitted over 5,000 electronic admission applications for Fall 1998 enrollment to various CSU campuses through the CSUMentor web system. Approximately 40% of the applicants chose to pay their application fee by credit card, while 60% of paid by check. Applicants paying by credit card had their transaction processed by the CyberCash "CashRegister" which takes 5 to 10 seconds to complete and is integrated into the CSUMentor web system. Please contact Lawrence Lin if you would like more information.
The CSU Benchmarking Post Data Collection workshops are scheduled for March 18-20 in Ontario. The processed data was returned to the campuses beginning February 15. In addition to the analysis of the benchmarked data, function representatives will be asked to review and analyze the results of the customer satisfaction surveys that were administered during the Fall of 1997. The customer satisfaction survey final reports are being shipped to the participating campuses in mid-February.
Functional areas will be expected to prepare process improvement recommendations for their functions based on the findings of the benchmarking and surveying efforts. These suggestions will be compiled into a systemwide final report. Suggestions for future benchmarking efforts and surveying will also be solicited. Function areas that have indicated interest in future surveying include Career Centers, Student Health Services, Libraries and Parking.
The Human Resources Process Mapping is proceeding with review of the report drafts by the team members. Final reports will likely not be available until May 1998.
Recruitment for campus participation in a Mail Services Process Mapping project is underway. A total of five campuses is desired and thus far four campuses have volunteered to participate. The procurement effort for outside consultants for this project will commence in March. The final report should be available by year-end 1998.
If you have any questions concerning benchmarking, customer satisfaction surveying, and process mapping please contact Ron Ashcroft (e-mail: firstname.lastname@example.org, phone (562) 985-2706, fax (562) 985-2710).
Lenore Rozner, Senior Director
The Business and Finance Newsletter is now accessible from the Chancellor's Office