NEWS FROM THE DEPARTMENTS

January 2000

NEWS FROM THE DEPARTMENTS

BUDGET OFFICE, 

John Richards, Director

2000/01 Governor's Budget


The 2000/01 Governor's Budget was released on January 10, 2000. The Chancellor expressed his appreciation to the Governor for his strong support of the CSU. The budget contains a total increase for the CSU of $244.2 million including $18.3 million in projected revenue from funded enrollment growth. This amount compares favorably with the budget plan proposed by the Trustees with only a few, but significant, differences.

The following is a breakdown of major Governor's Budget adjustments for 2000/01:

Governor's Initiatives, totaling $12.5 million:
  • $9 million in state investment in a teacher recruitment campaign for the California Center for Teaching Careers (CalTeach), including $7 million for in-state recruitment and $2 million for out-of-state recruitment
  • $3.5 million for Governor's Teacher Fellowships. 

CSU budget plan, allocating a total of $231.7 million including projected revenue from funded enrollment growth, as follows:
  • $86.3 million to fund a 4.5% increase in full-time equivalent enrollment (12,577 FTES)
  • $94.3 million to fund a 5% compensation pool effective July 1, 2000 for all CSU employees
  •  12.9 million for the full-year cost of 1999/2000 compensation increases, including faculty collective bargaining agreements 
  • $9 million for employee health and dental benefit rate increases
  • $5.7 million to operate approximately 1 million square feet of new building space opening in 2000/2001
  • $2.3 million for fixed costs associated with the start-up of CSU Monterey Bay
  • $15 million to fund the second phase of a $25 million state funding commitment for the CSU technology initiative
  • $3 million to support the CSU electronic journal core collection for library resources
  • $2.8 million to reduce the CSU deferred maintenance backlog
  • $380,000 of fixed costs for permanent, off-campus center space to be constructed in Coachella Valley for CSU San Bernardino.

The following table provides a comparison of the Governor's Budget and the Board of Trustees' budget plan for 2000/01:

20001/01 Budget Plan - Governor's Budget vs BOT Budget Plan

Governor's
Budget
Board of
Trustees

Mandatory Costs

Employee Benefits
New Space
1999/2000 General Employees Compensation Increase
1999/2000 Faculty Collective Bargaining Agreement
1999/2000 Full-Year Service-based Comp. Increases

$9,022,800
5,669,200
3,600,000
6,800,000
2,500,000

$7,136,000
5,765,000
3,600,000
6,800,000
2,500,000

Enrollment - 4.5% Increase; 12,577 FTE Students

Marginal Cost for Instruction
State University Grant Increase

81,901,000
4,390,000

81,901,000
4,390,000

Compensation

94,340,000

77,444,000

Monterey Bay

2,290,000

2,290,000

Long-Term Budget Need

Technology
Libraries
Deferred Plant Maintenance

15,000,000
3,000,000
2,813,000

15,000,000
3,000,000
3,300,000

Subtotal, CSU Operations and Enrollment Growth

$231,326,000

$231,126,000

State Investments:

CALTEACH Recruitment
Governor's Teacher Fellowships
Campus Start-Up Costs - CSU, channel Islands
Off-Campus Center Support - Coachella Valley
CPEC Faculty Salary Lag Adj., 2% comp. pool increase *

$9,000,00
3,500,000


380,000




$10,000,000
380,000
20,876,000
Total, Campus Operations/Faculty Salary Support

$12,880,000

$31,256,000

Total, 2000/01 CSU Budget Plan

$244,206,000

$244,382,000

* A 1% compensation pool increase from this request is included in the Compensation line of 5% for all employees.

January through June 2000 Budget Process

January

On January 10, 2000, the Governor sent the 2000/01 budget proposal to the legislature for consideration.

February

Within a month after the Governor's budget is received, the Legislative Analyst's Office (LAO) will provide a detailed analysis of the governor's spending proposals and identify a series of issues that may be of concern to the legislature.

March through June

The CSU Budget Office will send a preliminary allocation letter to campuses based on the Governor's Budget.

Based on the LAO analysis, the legislature sets the agenda for a series of budget hearings between March and June to finalize budget decisions for the fiscal year.

An update of state revenue projections is made in May.

Modifications to the Governor's Budget request, which is termed the May Revise, are based on those updated projections.

The 2000/01 budget is scheduled to be adopted by July 1

BUSINESS PLANNING & INFORMATION MANAGEMENT

Lenore Rozner, Assistant Vice Chancellor 

Quality Improvement (QI) Programs

Customer Satisfaction Survey: The final report of the spring 1999 customer satisfaction survey was distributed to campuses in December 1999. In the fall of 1999, the University Police function surveyed their customers on the participating campuses and the Parking Services function will conduct its survey this month. The results of these two additional surveys will be available in the spring of 2000.

Mini-Benchmark Project: The final report of the 1998-1999 mini-benchmark project has been distributed to all campuses. The report includes an evaluation of the benchmark results and resulting recommendations in the five participating functions: Career Centers, Libraries, Mail Services, Student Health Services, and University Police.

Process Mapping: Process mapping workshops continue to be held for various function groups. Workshop registrations are currently being taken via the website for Parking Services (Jan. 20-21), Northridge CMS-Enrollment Services (Jan. 27-28, limited to Northridge attendees), CMS-Finance and Student Services (Feb. 1-2), CMS-Human Resources (Feb. 3-4), Student Unions (Feb. 22-23), and Career Centers (March 21-22). The process mapping objectives for three groups that have completed the training, Student Accounts Receivable, Student Health Centers and a cross-functional team at SDSU are highlighted in the January edition of the QI Newsletter. A copy of the article and the newsletter are available on the QI website, http://www.calstate.edu/qi.

The four-campus Delivery/Distribution Services Process Mapping Project report has been distributed to Presidents, CABO Vice Presidents and Quality Improvement Facilitators at all campuses. 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 factors affecting cost and customer satisfaction. After the distribution/delivery services managers on the campuses have had a chance to review the report and its findings, a systemwide meeting of interested campuses is anticipated.

Quality Improvement Symposium: The second annual symposium, held on November 18, is featured in the January 2000 issue of the QI Newsletter. The newsletter highlights the remarks of featured speakers, Richard West, who substituted for Chancellor Reed and C. Jackson Grayson, Jr., CEO and founder of the American Productivity and Quality Center. The newsletter also includes a summary of the afternoon breakout sessions. All campuses were well represented at the symposium with almost 200 in attendance. Presentations from the symposium and additional information on QI Programs are available on the QI website, http://www.calstate.edu/qi.

YRO Update


Since September 1999, a steering committee comprised of three vice chancellors, six campus vice presidents and a broad representation of staff members has been actively gathering, reviewing and analyzing data relating to YRO. That process is continuing with the requirement to provide a feasibility study to the California State Legislature by April 1, 2000.

 A subgroup of the YRO Steering Committee has completed an analysis and recommended a "per unit summer State University Fee option" for campuses to use for the summer term. The YRO Steering Committee has endorsed and forwarded the recommendation to the Executive Council and Chancellor.

Y2K Wrap-Up


Y2K coordinators on all campuses reported the status of campus systems and facilities as requested on January 2nd. No campus reported any significant failures or adverse impacts on operations related to the year-end date rollover. A few minor "occurrences" were noted and reported, but most were later determined to be unrelated to Y2K. The smooth transition (to date) is a tribute to the campus preparations and people assigned to this activity.

Campus representatives have been asked to report any failures that might still occur, for example, in connection with month-end closing calculations and the leap year transition. However, with the exception of these "event reports," formal reporting on the Y2K issue has been completed. An update will be presented to the Board of Trustees in January.

CAPITAL PLANNING, DESIGN AND CONSTRUCTION

J. Patrick Drohan, Assistant Vice Chancellor

ARCHITECTURE AND ENGINEERING

CPDC Launches Capital Development Training Program for 2000/01


CPDC is preparing to kick off the third year of its training program. An expanded series of full-day seminars addressing the most current issues in capital project development and implementation (including everything from ensuring the initial architect design agreement defines campus needs adequately to dealing with claims and audits at the end of a project) is scheduled. One key topic in the schedule is developing an asset management program to maximize the value of campus property in public?private, joint venture developments that generate revenue and provide needed support services for the campus community. Innovative forms of project delivery are also very much on the list of "hot" topics.

The first seminar is scheduled for January 31st at Cal Poly Pomona. This seminar, "Applied Public Contract Law & Construction Management," is fully enrolled and will be repeated later in the year due to high demand. February seminars on Change Order Analysis and Negotiations, to be conducted in Long Beach and San Francisco, are filling up quickly.

Please contact Nancy Garcia in CPDC at (562) 951-4130 or ngarcia@calstate.edu for a

brochure that provides schedule and tentative program information. CPDC's website is also being updated to provide program information and support on-line registration.

Robert C. Schulz, Chief

CONSTRUCTION MANAGEMENT

1999 University Auditor Recommendations Compliance

In response to a 1999 University Auditor's recommendation, two administrative manuals (SUAM, Section XII, and the Project Administration Reference Manual) have been revised. The changes are intended to ensure that:

  • All bids are accurately recorded on a signed copy of the official "Abstract of Bids" form.
  • Contract time is reconciled and that appropriate back up is provided to document time extensions by change order.
  • Credentials for the Inspector of Record are provided.
  • Project Manager/Inspector cost guidelines are provided.
  • Testing laboratories have verified field tickets attached to invoices.
  • Project Managers monitor design professional submittal logs.
  • Design professionals transmit final submittal logs.
  • Project Managers maintain change order log and reconcile change order costs with contractor payments.
  • Construction Administrators police the use of subcontractors and that Subcontractor Status Reports (new form provided) are developed.
  • Subcontractor Status Reports are used to police compliance with the Subletting and Subcontracting Fair Practices Act (Public Contract Code 4100 et seq.).
  • Project Managers complete and transmit the Project Closeout Checklist.
  • Contractor evaluation data is submitted to be part of an annual report to Trustees.

SUAM Manual holders are advised to download and print a complete hard copy of Section XII
to replace the existing copy in the manual (www.calstate.edu/ppd). Additionally, it is recommended the revised Project Administration Reference Manual be downloaded (www.calstate.edu/ppd/cm) and printed for active use by project management, inspection, and design professional staff.

W. Clifford Hahn, Chief

CPDC Due Dates for CPB&G Agenda Items (May 9-10, 2000 Trustees' Meeting)

Master Plan Revisions:

March 14, 2000

All Other Items:

March 28, 2000

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

FINANCIAL SERVICES

Brad Wells, Assistant Vice Chancellor

ACCOUNTING

Combined Financial Statements


The Combined Financial Statements of the California State University for fiscal year 1998/1999 have been completed and will be presented at the January meeting of the Board of Trustees. The preparation of these statements represents the culmination of a significant effort by campuses, Auxiliary Organizations, the Chancellor's Office and the CSU's external auditor, KPMG. Thanks to all who contributed to the successful completion of this enormous task.

The Combined Financial Statements will be available on the accounting department website at: http://www.calstate.edu/acct/GenlInfo/AuditedFINLS/99AudFS.pdf shortly after the Trustees' meeting.

Bill Musselman, Acting Director

CONTRACT SERVICES AND PROCUREMENT (CS&P)

Small Business Changes and Training


On December 6, 1999, the first of two identical training sessions for campus Small Business Coordinators was held at the Chancellor's Office. The second offering of this training is will be conducted on the campus of San Jose State on January 21, 2000. Small Business Coordinators from eleven campuses were represented at the December session. Loren House, the CSU's Small Business Advocate, conducted the one-day seminar with assistance from guest presenters Ms. Debbie Neisen of the Office of Small Business Certification and Resources and Mr. Clifford Hahn, Chief of Construction Management, CPDC. Debbie conducted a mini-workshop on the Target Area Contract Preference Act (TAPA) and the Enterprise Zone Act (EZA) while Cliff discussed Disabled Veteran Business Enterprise (DVBE) participation applications for Job Order Contracting. Other topics covered during the one-day training seminar included: small business and DVBE reviews, small business advocate survey results, annual reporting requirements, and legislative updates and analysis.

Network Infrastructure Buildout Project

The Chancellor's Office is soliciting qualifying information from firms to design, install, maintain, and renew the inter-building media and intra-campus infrastructure and associated electronic equipment. The Request for Qualifications, 990100, was issued in November and vendor qualifications are being evaluated at this time. A team comprised of campus and CO staff will select the group of vendors to receive a Request for Proposal for this services and equipment contract. Information and documents associated with the project can be found at http://www.calstate.edu/csp/ under "Active Solicitations." Questions relating to this solicitation should be directed to Tom Roberts at troberts@calstate.edu or (562) 951-4583.

CS&P's Current RFPs


The following is a list of current RFPs and their status:

990094 - Student Loan Billing Service - in evaluation phase

990147 - Best Practice Study for Construction Contractor Selection - in evaluation phase

990100 - Infrastructure Terminal Resources Project - in evaluation phase

980183 - PBX Communications Platform - in evaluation phase

980160 - Journal Access Core Collection - awarded to EBSCO

PBX


The four-campus solicitation for a PBX communications platform is in the final stages.
The PBX proposal evaluation committee has completed their evaluation and a Notice of Intent to Award is scheduled to be issued prior to the end of January.

Legislation


Legislation clarifying the authority and responsibilities in the CSU's procurement process is moving forward and will be included in the omnibus bill for the System. If passed, this legislation will authorize the Board of Trustees to establish procurement policies and procedures.

PSSO Council


The next meeting of the Procurement and Support Services Officers Council is scheduled for January 27/28 at California Maritime Academy.

Pat Dayneko, 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 <www.calstate.edu/oga/>.

INFORMATION TECHNOLOGY SERVICES

David Ernst, Assistant Vice Chancellor 

CMS Status Report


During November and December, prototyping efforts for the CMS Human Resources system continued for labor budgeting, encumbrances, and actual costs. The Human Resources function team has established a system test team that has begun the work to develop detailed scripts to be used in the testing of the baseline system. In coming months, efforts will continue on data conversion, system testing, and planning for the final HR prototype session focused on business process walkthroughs.

The CMS Finance general ledger prototyping sessions have concluded resulting in several areas documented for business process improvement. The procurement prototyping team continues its work on the analysis of the processing of purchase requisitions and purchase orders. The CMS Finance function team is evaluating strategies for developing data conversion and system interface processes.

Over the past several months, the Student Administration function team, with assistance from PeopleSoft student system experts, has developed a draft project plan. The plan results in the 1st wave campuses able to go live with all student modules for the fall 2003 cycle. The project directors and the CMS implementation consultants were asked to comment on the plan and their comments are currently being reviewed by the Student Administration function team.

The CMS technical architecture document is in its final revision phase and will be posted to the CMS web site within the next few weeks. The document is a result of the work of an ad-hoc Technical Architecture team comprised of CMS project directors, IT team members, IRMC members, 4CNet experts, and PeopleSoft technical architecture specialists.

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.