MESSAGE FROM THE EXECUTIVE VICE CHANCELLOR
As this is our last newsletter for the year, I wanted to take the opportunity to thank all of you for your help and support during the past twelve months. We have seen many accomplishments including a $225 million general fund increase in our budget, significant progress in implementing CMS and our infrastructure initiative, progress on the quality front, significant improvements in our capital planning process, and solid work in the area of financial services. None of these accomplishments would be possible without the full cooperation of the campuses. I especially want to acknowledge the members of CABO for their outstanding contributions to the progress we have made. I also want to thank the entire staff of Business and Finance for their dedication and hard work during the past year. I am confident that next year will be even more rewarding.
In the meantime, let me wish you and your families as safe and happy
NEWS FROM THE DEPARTMENTS
2000/01 State Appropriated Support Budget
On October 28, 1999, the Board of Trustees adopted the Chancellor's recommended state appropriated support budget document entitled, "2000/01 Support Budget." The 49-page document recommends a total General Fund appropriation of $2,478,996,000, an increase of $226.1 million over the current year. With the addition of $18.3 million in State University Fee revenue projected as a result of increased enrollment, the total increase for state appropriations is $244.4 million. Copies of the 2000/2001 Support Budget have already been sent to campuses and the document will be posted on CSU Budget Office home page.
2000/01 Lottery Revenue Budget
The Board of Trustees also adopted the 2000/01 lottery budget at its October 28th meeting. There are a few significant changes in this budget. To achieve greater campus lottery budget flexibility, the 2000/01 budget continues the movement of funds away from system-designated programs to campus-based programs. In addition, there is, for the first time in several years, enough sustained growth in quarterly lottery receipts to include a modest increase in the projected yearly budgeted receipts from approximately $27 million to $30 million. This growth in projected receipts is also reflected in the projected beginning lottery balance of $10 million, up from a value in the range of $6 to $7 million.
Total lottery revenue available to the California State University in 2000/01 is projected to be $41.7 million. After providing for a $5 million systemwide reserve for economic uncertainties and cash flow variation due to fluctuations in lottery receipts, the total available for allocation is $36.7 million.
Amended Education Code §32320 (fee waivers for eligible dependents of veterans)
Education Code §32320 has been amended effective January 1, 2000. The amendment limits fee exemptions for eligible dependents of veterans to "mandatory systemwide" tuition and fees. The applicable mandatory systemwide tuition and fees for resident students are the State University Fee and the Application Fee. However, because the California Department of Veterans Affairs applications for waiver of tuition and fees are approved on the basis of the full "academic year," it was determined that the current level of benefits should be maintained for the remainder of the 1999/2000 academic year. Consequently, implementation of this change will be effective for all academic terms that begin subsequent to the end of the spring 2000 term.
The amendment also raised the income eligibility limit for the program from $7,000 to the "national poverty level." The national poverty level is the poverty threshold for one person (in this case, the dependent student), as most recently calculated by the Bureau of the Census of the United State Department of Commerce, which in 1998 was $8,480.
The time period for eligibility of the waivers was also clarified with the following wording: "A person who is eligible for a waiver of tuition or fees under this section may receive a waiver for each academic year during which he or she applies for that waiver, but an eligible person may not receive a waiver of tuition and fees for a prior academic year."
Employee Fee Waivers
Executive Order No. 712, Delegation of Authority and Procedures for the Administration of Fee Waivers and Reductions for Employee Training and Career Development, was issued in October 1999. This EO supersedes and updates prior executive order, EO 491. EO 712 adds the "Health Services Fee" and removes the "Student Services Fee" from the list of fees that may be waived.
Fee Waiver Report
In preparation of the 2000/2001 Support Budget and campus allocations, the number of prior academic year (1998/1999) campus fee waivers must be collected. Campuses have been requested to provide the annualized number of fee waivers provided during the academic year and the summer term (if applicable) by fee waiver category by November 22, 1999.
Fee Policy, E.O. 661, Technical Review Committee
The committee, which includes several campus representatives, met with the Deputy General Counsel on November 8, 1999, to further discuss fee deposit requirements (which are set by statute), consultation requirements, financial aid requirements, and fee classifications (mandatory versus user). The group's goal is to improve policy implementation by clarifying and further interpreting the policy. The committee intends to formulate fee policy clarifications, update EO 661's Index of Fee's deposit and waiver information, and may provide input regarding recommended change to the policy.
BUSINESS PLANNING & INFORMATION MANAGEMENT
Quality Improvement (QI) Programs
The five function (Libraries, Mail Services, Student Health Services, Career Centers and University Police) benchmarking project for 1998-1999 has concluded. The function team leaders presented their results to the Quality Improvement Steering Committee on September 21. A final report with results and recommendations is being written and is expected to be distributed to all the campuses before the end of the calendar year.
Customer Satisfaction Survey
The second customer satisfaction survey, which is offered to all campuses, has been completed. Ten campuses participated in this year's survey. Students, faculty and staff were surveyed concerning ten services. A final systemwide compilation of the results of the survey is in final review and will be published in late November. Each campus will receive copies of the report when it is distributed in early December. Participating campuses will also receive individual reports specific to their campus.
The four-campus Delivery/Distribution Services Process Mapping project has concluded. The final report presenting the process maps, activity-based costing model and customer satisfaction survey results is expected to be distributed to all campuses by the end of the month. The report includes a variety of campus specific and generic observations and recommendations. Staffing, managing the volume of items handled and establishing the desired level of service were identified as the most significant cost control levers. A systemwide distribution/delivery services meeting is contemplated after distribution of the project report.
Process mapping training is in full swing. Three sessions have already been completed and four additional separate sessions will be held before the end of the calendar year. This training is open to all campuses and functions. Representatives of the Student Accounts Receivable, Libraries, Student Health Services, Accounts Payable, Procurement and various other campus functions have received the training. Specific processes have been selected and are in the process of being mapped. Follow up sessions are planned to compare results and look for areas in improvement. Several dates have been set in early 2000 for additional for other interested functions, campus issue-specific groups and CMS support groups.
Quality Improvement Symposium
The second annual Quality Improvement Symposium was held on November 18. Executive Vice Chancellor Richard West opened the session emphasizing the need for the CSU to continue to strive for excellence and efficiency in service and operations. Jack Grayson, CEO of the American Productivity and Quality Center, was the keynote speaker for the program attended by over 175 representatives from around the system.
Year Round Operations Update
The Supplemental Report of the 1999 Budget Act, requested the CSU to conduct a feasibility study examining the advantages and disadvantages of implementing year-round academic programs. That study is underway and a steering committee to provide oversight and guidance to the study has been established. The committee is made up of senior management from campuses and the Chancellor's Office and represent the major segments of the University.
Subcommittees have been identified to collect and analyze data for the study. Chancellor's Office senior managers are leading these efforts in their areas of expertise. Requests for selected information have already been sent to various campus staff, however, an effort is being made to use existing centralized data files as much as possible in order to minimize the demand on campuses.
A number of issues will be addressed in the study in addition to physical capacity utilization. A first draft of the study report will be available early February 2000.
The third quarter progress reports were received from the campuses and consolidated into a systemwide status report for the Board of Trustees. The significant progress reported by campuses during the third quarter brings the system to a 97% level of readiness. The items remaining to be completed are being managed appropriately by the campuses. No significant adverse impact on operations or financial affairs of the CSU are anticipated as a consequence of Y2K failures in activities or systems under the control of the University. Campus representatives will be assessing the status of major systems on their campuses over the "rollover weekend" and reporting their status to the Chancellor's Office by 5:00 p.m., January 2nd. Arrangements for that reporting will communicated to the campus Y2K coordinators in early December.
CAPITAL PLANNING, DESIGN AND CONSTRUCTION
ARCHITECTURE AND ENGINEERING
CPDC Professional Education and Training Program Hits the Road Again!
CPDC is continuing its successful Professional Education and Training Program for university facilities personnel. The expanded program will offer new sessions starting early next year and on an 18-month schedule through years 2000 and 2001. The schedule of one-day sessions addresses a prioritized list of current capital outlay related topics aimed at assisting campuses in carrying out the capital outlay program. The selection of topics was facilitated with a detailed survey sent to all campus facilities personnel, which provided input on areas in which campus staff felt additional training would be helpful. The program will tentatively schedule sessions on a monthly or bi-monthly basis, with separate sessions scheduled for northern and southern areas of the state.
CPDC has also initiated working relationships with outside planning and construction industry professional organizations to develop and provide additional curriculum content for the program. The specific course schedule will be published at the end of November, and will be made available to all interested campus and Chancellor's Office personnel. CO personnel who would like to be included on the mailing list to receive the course schedule can contact Nancy Garcia at 562-951-4130 or by sending an e-mail to firstname.lastname@example.org.
Robert C. Schulz, Chief
Status Update for Land Records
The Land Records section of the Construction Management Unit is moving forward with the necessary preliminary data gathering for the implementation of the Land Records Information System (LRIS). Current Land Records projects include updating title reports for eleven campuses and obtaining records of surveys for San Jose and Dominguez Hills. When Sonoma completes its current property acquisitions, a record of survey will be obtained for that campus. Next year, updated records of surveys are planned for the Pomona, San Diego, and San Luis Obispo campuses, where boundaries have changed substantially. When the entire data gathering process is completed, the information will be transferred to CAD maps, which will be the basis of LRIS. LRIS will greatly facilitate the ability of Land Records' to provide services, especially those services related to title clearances. All of this information will be shared with the campuses.
At the Land Records breakout session of CPDC's 1999 Facilities Planning & Management Conference, campus representatives suggested that they may have additional records and information that would be useful to the Land Records section and also expressed concerns about how well Land Records data will interface with each campus. As a follow-up, Chuck Happe and Linda Wilson of Land Records will be contacting each campus to discuss coordination of information and how Land Records can better serve the needs of the campuses.
Status Update of Job Order Contracts (JOC)
Significant progress has been made in bringing the Job Order Contracting (JOC) alternative to campuses. Thirteen campuses have now commenced the Job Order Contract process. Two campuses (San Luis Obispo and Hayward) have received bids and the other eleven campuses have pending bid dates from November through January.
Revision of Project Administration Reference Manual
The Project Administration Reference Manual is a tool for construction managers, architects, and campus staff who administer major capital projects. It has recently been revised for campus administration and includes recommendations made by the auditors on recent major capital project audits. Among other items, revisions to the change order procedures have been made, and suggested tools for carrying out these procedures have been included in the forms.
Documents Recently Posted on the Web
W. Clifford Hahn, Chief
CPDC Due Dates for CPB&G Agenda Items (March 14-15, 2000 Trustees' Meeting)
A complete listing of 2000 due dates for CPB&G agenda items is
located at CPDC website.
FINANCING AND TREASURY
Parking Program - Tip for Campus Adjustments to Fees
Equity Investment Program for CSU Auxiliary Organizations
Currently Metropolitan West Capital Management, commonly known as MetWest, provides services to the CSU for investment of non-general fund cash into two investment pools. The Office of Financing and Treasury is negotiating with MetWest to offer a voluntary equity investment program that would be open only to auxiliary organizations in the CSU. The intent is to provide a single investment program with specifically tailored goals and objectives at low fee levels. The performance of the fund manager would be reviewed initially by the Financing and Treasury Office. Additional details of the proposed equity investment program will be forthcoming as the plan is finalized.
Auxiliary Organizations and Real Property Transactions
Campuses are reminded about a recent change in policy whereby auxiliary organizations are no longer required to notify and consult with the Chancellor's Office on real property transactions. Instead, the new policy requires that real property transactions that involve financing now need to be presented to the trustees for information. Campuses are urged to review E.O. 703 for details.
Housing Program Listserve
In an effort to facilitate communication about housing issues, the Financing and Treasury Office recently created a new listserve, (email@example.com). Some campus housing directors were automatically added to the listserve at its inception. This listserve is set up for "auto-joining" and individuals wishing to be included are asked to send a message to firstname.lastname@example.org. The subject line should be left blank and in the message body, the words "subscribe csu-housing firstname lastname" keyed in (where the sender's first name and last name separated by a space should be substituted in the appropriate fields).
Richard K. Leffingwell, Director
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
During the months of September and October, Finance prototyping teams started work on the General Ledger and Procurement modules. The teams have completed prototyping most of the setup options of the two modules and are now focusing on business processes and reporting. An overall definition and structure of the Chart of Accounts was developed and distributed for review and comment by all CSU campuses. The Chart of Accounts structure is expected to be finalized in November.
Prototyping efforts for the CMS Human Resources system continued with the completion of the service calculation and manage faculty events sessions. A large effort to prototype labor budgeting, encumbrances, and actual costs was also started in mid-October. In coming months, efforts will focus on planning for data conversion, system testing, and training for the CMS HR baseline system.
The Student Administration function team held several days of planning sessions during the past two months. The group reviewed alternative prototyping and implementation approaches for the student administration software.
In September, the eight CMS implementation consultants were briefed on the status of the CMS project and met with the campus project directors.
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 email@example.com.