NEWS FROM THE DEPARTMENTS

May 2000


NEWS FROM THE DEPARTMENTS

BUDGET OFFICE, 
John Richards, Director

Governor's May Revise Budget
In January, the Governor issued his FY 2000/01 budget proposal. Since that time, legislative committees and the Legislative Analyst's Office (LAO) have been engaged in budget reviews. On May 15, 2000, the governor submitted the May Revise of his January Budget proposal to the legislature. The discussion below summarizes the major budget developments over the last two months.

The Governor's original January Budget proposed a $244.2 million budget increase for the CSU
in FY 2000/01. This amount included a $225.9 million increase in state General Fund support
and $18.3 million in revenue from projected enrollment growth. The May Revise provides an additional $42.4 million increase for the CSU. Included in this additional funding is $10 million to fund core needs for CSU Channel Islands requested by the trustees in October, $18.9 million to increase the 5% compensation pool proposed in January to a total of 6% for all employees and $11.3 million, on a one-time basis, and continuation of $1.7 million on a permanent basis, to enable the CSU to develop CSU Stanislaus-Stockton, formerly the Stockton Developmental Center. The Governor's May Revise also includes $2.2 million to develop service-learning courses and create service-learning offices at each CSU campus. This funding will allow the CSU to increase participation in service-learning courses from the current 8% to approximately 15% of the student body over four years and coordinate community service placements of CSU students. Both legislative subcommittees reviewing the CSU budget have approved these additional budget elements.

In addition to the Support Budget increases noted above, the Governor's May Revision also provides an additional $37.4 million in one-time, General Fund support to accelerate the completion of the Integrated Technology Strategy-Technology Infrastructure Initiative on four campuses: Chico, Hayward, Humboldt and Sonoma.

The May Revise also proposes to increase funding for the Office of the Secretary for Education by an additional $25 million to contract with the California State University to train teachers and administrators in the use of technology for instructional programs and improved accountability. Combined with the $25 million proposed in the January budget, the proposed increase would
bring the total for this activity to $50 million.

During hearings, both legislative subcommittees have proposed $287,000 to increase stipends and expand the judicial fellows program at the Center for California Studies. In addition, both subcommittees have included funding to buy down summer session fee rates for students matriculated at CSU during the regular academic terms, but by different amounts; the Senate subcommittee provides $12 million while the Assembly subcommittee provides $19.9 million. The Senate subcommittee also provides $31.5 million in one-time funds for science and technology program equipment, teacher preparation equipment and a Stop-the-Hate legislative program. The May Revise does not address these issues.

The Legislative Analyst recommended the Governor's Budget appropriation for CSU be reduced by over $105 million. Thus far, the subcommittees reviewing the CSU budget proposal have not approved any of the Analyst's recommendations.

In a related matter, the CSU is continuing negotiations with all bargaining units. Pending the results of these negotiations, campuses should continue to plan their compensation increases based on the Governor's Budget allocation letter dated March 27, 2000

CSU Student Fee Information

The CSU Budget Office's student fee information web page has been reformatted and new documents have been posted. Information is now listed by subject area rather than year of occurrence. The new CSU Student Fee Policy, Executive Order 740, has been posted with attachments, and an updated "Index of Fees." The Index of Fees provides additional resource information regarding fees, such as "deposit" and "appropriation" authority. Other subject areas included on the student fee information page are: CSU Student Fee Schedule, Campus
Mandatory Fees, Fee History, Comparative Institution Resident Student Fees, and Fee Waiver Information. Included with the Fee Waiver Information is a new table that may serve as a guide of authorized fee waiver programs.

The student fee information web page may be accessed by selecting "Student Fee Information" from the CSU Budget Office web page: http://www.calstate.edu/tier3/budget/ or by selecting "Fees" from the list of subjects under "Facts" from the main CSU Systemwide web page: The CSU Budget Office's student fee information web page has been reformatted and new documents have been posted. Information is now listed by subject area rather than year of occurrence. The new CSU Student Fee Policy, Executive Order 740, has been posted with attachments, and an updated "Index of Fees." The Index of Fees provides additional resource information regarding fees, such as "deposit" and "appropriation" authority. Other subject areas included on the student fee information page are: CSU Student Fee Schedule, Campus Mandatory Fees, Fee History, Comparative Institution Resident Student Fees, and Fee Waiver Information. Included with the Fee Waiver Information is a new table that may serve as a guide of authorized fee waiver programs.

The student fee information web page may be accessed by selecting "Student Fee Information" from the CSU Budget Office web page: http://www.calstate.edu/tier3/budget/ or by selecting "Fees" from the list of subjects under "Facts" from the main CSU Systemwide web page: http://www.calstate.edu/tier2/System.shtml lease contact the CSU Budget Office at

(562) 951-4560 if you have any questions.

. Please contact the CSU Budget Office at

(562) 951-4560 if you have any questions.

Future Mandatory Fee Waiver Adjustments/Data Collection

In FY 2000/01, the CSU will have successfully closed the funding gap relating to mandatory waivers identified for FY1992/93 through FY1997/98.

A new budget policy to address incremental growth and reductions in mandatory State University Fee waivers is currently under review. The new budget design, proposed to become effective FY2001/02, would make adjustments for mandatory fee waivers based on revenue projections data reported by campuses in the prior year. Discretionary fee waivers granted by the campus would not be used to make adjustments in revenue projections. Details of the policy will be presented to CABO for discussion.

As previously announced, to prepare the 2001/02 support budget, the Budget Office will continue to collect actual 1999/2000 fee waiver data from campuses manually (by Excel spreadsheet). In future years, fee waiver data collected via the Analytic Studies Enrollment Reporting Student System (ERSS) will be used. Data collection via ERSS will begin in July 2000 and the final data reported on ERSS for FY2000/01 will be used to develop the FY2002/03 support budget.

BUSINESS PLANNING & INFORMATION MANAGEMENT
Lenore Rozner, Assistant Vice Chancellor 

Quality Improvement (QI) Programs

Performance Measurement 2000: Function groups requiring the development of new CSU performance measurement surveys began meeting in May and will continue meeting through June. The groups developing new performance measurement surveys include: Accounts Payable, Financial Aid, Mail Services, Procurement, Student Accounts Receivable, and University Police. Two function groups, Career Services and Parking, are assessing whether or not they will be able to use an existing national document for the upcoming effort. Three function groups, Student Health Services, EH&S, and Facilities, will be using a national document.

Those function groups developing their own survey instruments will focus on the development of a few key performance measures that are critical to their success and align with their division's or campus' strategic goals. Throughout the summer, these groups will be working to define the data elements required for these performance measures. This development effort will be followed by data collection, analysis and reporting of the results and recommendations in the fall of 2000. Those function groups developing their own survey instruments will focus on the development of a few key performance measures that are critical to their success and align with their division's or campus' strategic goals. Throughout the summer, these groups will be working to define the data elements required for these performance measures. This development effort will be followed by data collection, analysis and reporting of the results and recommendations in the fall of 2000.

Process Mapping: The first of a series of three Process Mapping Workshops have been completed with a total of 219 participants completing Workshop I. During the summer months, those groups that have not done so yet will complete Workshops II and III. In support of campus interest in process mapping as a core skill that can benefit all staff, a Process Mapping train-the-trainer workshop was recently offered in May. Campus representatives at the training included: Sacramento, San Bernardino, San Diego San Jose, and San Luis Obispo. These trainers will begin offering workshops on their home campuses in the summer months. The Chancellor's Office has trainers and will provide training upon request. Another train-the-trainer session will be offered as the Quality Improvement Programs continues to build internal expertise and support for continuous campus improvement efforts.

3rd Annual QI Symposium: The QI Planning Committee is in the process of coordinating the 3rd Annual QI Symposium. The symposium will be held on November 16 at the Sheraton Gateway, San Francisco Airport. The theme of this year's effort is "Leading the Engaged and Accountable University." The keynote speaker will be Tom Chapeaux of the Effectiveness Institute. Among the campus presentations will be one from Cal State Northridge dealing with their efforts to implement the Balanced Scorecard. This year's symposium will feature a QI Fair where campuses will be able to share their QI efforts. The Quality Improvement Facilitators have been asked to coordinate their campus booth at the fair. For additional information about the November QI Symposium and QI Programs or to participate in any of the initiatives described above, visit the QI website at http://www.calstate.edu/tier3/qi or contact Ron Ashcroft at (562) 951-4556.

YRO Update
YRO Feasibility Study:
The Year Round Operations Feasibility study was delivered to the Legislature on April 1st as required in the Supplemental Report Language of the 1999 Budget Act.

This study was conducted by the Chancellor's Office with involvement and contributions by a number of campus staff. Oversight and guidance was provided by a steering committee comprised of campus vice presidents representing all major divisions and vice chancellors from the central office. The report provides an analysis of the advantages and disadvantages of utilizing summer terms to provide additional capacity and communicates the CSU's commitment to implement YRO using a phased-in approach.

The report and supporting documents are available at: http://www.calstate.edu/tier3/YearRoundOps/. Questions relating to the report should be directed to Lenore Rozner at (562) 951-4550.

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

Facility Renewal/Deferred Maintenance Model

The CSU system has commissioned Pacific Partners to provide an updated estimate of projected cyclical facility renewal/scheduled maintenance needs and to update the deferred maintenance backlog for state-supported buildings. The estimating model developed by Pacific Partners considers the size and age of buildings, amount of infrastructure, the estimated life cycles for building systems and renovation and repair histories as provided by the campuses. The preliminary campus and systemwide data has been reviewed and corrected by the campuses. A final report of the study will be shared with CABO at its June meeting.

Cost Guide Update

Last year CPDC undertook a study to review the CSU cost guides that have been in place since 1966 and adjusted upward at an annual rate that has averaged 2%/year over this period of time. The study identified three building components areas where cost guide adjustments are recommended because of their potential to lower long-term expenditures for operations and maintenance. The three building elements are: improved exterior skin, longer-life roofs, and energy-efficient variable air volume mechanical systems. These proposed cost adjustments will be presented at the June 13-14, 2000 CABO meeting. In addition to these changes, the revised cost guide also provides for further cost adjustments at the budget phase when justified by engineered feasibility studies provided by the campus.

Facilities Planning

Facilities Planning Due Dates schedule

2000/01 Minor Capital Outlay Program

June 2000

Facility Planners will be contacting campuses to confirm a final project list based on the allocation for the Minor Capital Outlay Program in the Governor's Budget for FY 2000/01.

2000/01 Minor Capital Outlay Program

May 29, 2000

Campuses to provide proposed list of projects to CPDC for review and submittal to the Department of Finance in July 2000.

2001/02 Major Capital Outlay Program

June 1, 2000

Campuses to provide current, camera-ready master plan maps with legends and campus histories to CPDC.

June 1, 2000

Campuses to provide CPDC with the president's statement of the need for the requested state and nonstate project in the action year. Additional statements regarding special campus achievements/projects/programs are also requested.

June 3, 2000

Campuses to submit the final 2001 Capital Outlay Program.

July 18-19, 2000

CSU Board of Trustees to review draft program submitted by campuses in April.

July 31, 2000

CPDC sends final COBCPs and equipment lists to the Department of Finance

Elvyra San Juan, Chief

CPDC Due Dates for CPB&G Agenda Items (September 19-20, 2000 Trustees' Meeting)

Master Plan Revisions:

July 18, 2000

All Other Items:

August 1, 2000

A complete listing of 2000 due dates for CPB&G agenda items is located at CPDC website http://www.calstate.edu/tier3/PPD/Executive/index.shtml

FINANCIAL SERVICES
Brad Wells, Assistant Vice Chancellor

GAAP Financial Statements and Year-end Reporting
The Accounting Department in conjunction with the Financial Officers Association is presenting back-to-back training workshops on GAAP Financial Statements and Year-end Reporting. The workshops will be at the Crowne Plaza Hotel at LAX on June 6th and 7th. The GAAP training will include an overview of the process as a refresher for the novice. Afternoon sessions will include discussions on key issues and problems as well as a discussion on preparing for

GASB 34/35. On the following day, year-end reporting training will include a mix of topics including Auxiliary FIRMS submissions, the State Controller's Certificate of Excellence, and reimbursed activities.

Complete workshop information, including the agenda, hotel and registration information is available on the Accounting Department website at: www.calstate.edu/tier3/acct/ or by contacting Ruth Stipp at (562) 951-4615 or rstipp@calstate.edu

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 <www.calstate.edu/oga/>.

INFORMATION TECHNOLOGY SERVICES
CMS Status Report

The Human Resources (HR) prototyping sessions have been completed. HR Business Process review sessions are underway and will be completed in early May. In these sessions, the campus attendees are "walking through" the HR processes one last time before system testing begins. Data conversion and system test preparation are underway.

The Finance General Ledger, Accounts Payable, Budget, and Procurement prototyping teams have also completed their sessions. An HR/Finance integration testing team is scheduled for May. This team will view the data flow through the entire HR and Finance system to identify conflicts, interactions and the impact of an entry or change in one place on other parts of the system. Data conversion and system test preparation are also underway for Finance.

Lucie Conner has joined the CSU as the CMS SOSS Finance Project Director. Lucie was formerly with the Hunter Group and has extensive PeopleSoft implementation experience.

The evaluations of the responses to the CMS Hardware Operations and Support Services (HOSS) RFQ have been completed. IBM and Unisys were selected as "Qualified Vendors" through the process established in the RFQ. The HOSS RFP was released to these qualified vendors on April 28, 2000 and a Notice of Intent to Award is planned for early August.

Hilary Baker, Senior Director

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.