MONDAY JUNE 11, 2012.
CSU.
>> OKAY, GOOD MORNING, EVERYONE, WELCOME.
WELCOME TO THE BUDGET STRATEGIES 2012 WEBCAST, I'M YOUR
HOST, JENNIFER WICKS, HAPPY TO BE WITH YOU HERE THIS
MORNING, WE HAVE SOME FOLKS IN THE STUDIO AND I WANT TO
INTRODUCE THEM IN JUST A MOMENT, I WANT TO LET YOU KNOW A
FEW THINGS AS WE GET STARTED, TODAY'S WEBCAST WILL BE
RECORDED, WE WILL HAVE THE LINK AT THE END OF THE WEBCAST
AVAILABLE FOR YOU TO VIEW FOR FUTURE REFERENCE, THE POD TO
THE LEFT OF MY CAMERA WILL BE AVAILABLE, AND NO ONE WILL
SEE YOUR COMMENTS.
KEITH WILL BE SPEAKING YOUR QUESTIONS ALOUD AND THE PANEL
WILL BE ANSWERING YOUR QUESTIONS, AND WE ALSO WOULD LOVE
FOR YOU TO PUSH YOUR ANSWER IN THE POLL HERE SO WE KNOW HOW
LARGE THE GROUPS ARE, TODAY'S SESSION IS ALSO BEING
CAPTIONED, YOU'LL NOTICE IT BELOW OUR POD, AND I WOULD LIKE
TO INTRODUCE OUR PANEL, DR. BENJAMIN QUILLIAN, DR. EPHRAIM
SMITH, EXECUTIVE VICE CHANCELLOR, GAIL BROOKS IS ON THE
LINE, LIVE WITH US FROM SAN FRANCISCO STATE UNIVERSITY, SHE
IS OUR VICE CHANCELLOR OF HUMAN RESOURCE AND MODERATING
TODAY'S SESSION IS DR. KEITH BOYUM, PROFESSOR OF POLITICAL
SCIENCE AT CALIFORNIA STATE UNIVERSITY FULLERTON, AND HE
WAS ALSO THE ASSOCIATE VICE CHANCELLOR OF ACADEMIC AFFAIRS
HERE AT THE CHANCELLOR'S OFFICE FROM 2004 TO 2008, SO WITH
THAT, PLEASE DO PUT YOUR HANDS TOGETHER BY CLICKING THE
BLUE BUTTON IN THE LOWER LEFT CORNER OF YOUR SCREEN AND
WELCOME DR. KEITH BOYUM.
>> WELL, THANK YOU ALL FOR THE WEBCAST APPLAUSE, THAT'S A
FIRST FOR ME.
WE ARE HERE TODAY TO DO AN IMPORTANT THING, WE ARE HERE TO
LISTEN, WE KNOW THAT THE CHALLENGES TO THE CSU BUDGET ARE
BEYOND PREVIOUS COMPARE.
WE BELIEVE THAT STRATEGIES NEED TO BE DISCUSSED IN AN OPEN
AND COMPREHENSIVE WAY.
WE HAVE SEEN STRATEGIES DISCUSSED IN PUBLIC AT THE BOARD OF
TRUSTEES AND WE HAVE HAD OPPORTUNITIES IN OTHER RECASTS AND
IN OTHER FORUMS TO TALK ABOUT THE CHALLENGES TO THE CSU AND
THE POSSIBLE RESPONSES.
I THINK WE KNOW THERE ARE THREE KINDS OF ENDURING BUDGET
CHALLENGES TO THE CSU AT PRESENT, THE FIRST IS A STRUCTURAL
DEFICIT THAT THE SYSTEM RECOGNIZES, THE PROBLEM OF COURSE
IS THAT IN 2007-08, STATE ALLOCATIONS OF THE CSU WAS A TICK
BELOW 3 BILLION DOLLARS AT 2.97 BILLION, AND IN THE CURRENT
YEAR, IT'S AT 2 BILLION SO WE LOST ABOUT A THIRD OF THE
STATE'S SUPPORT FOR THE CSU.
CAMPUSES AND OTHER ENTITIES HAVE MANAGED THE WAY ALONG IN
PART WITH ONE-TIME MONEY, AND THAT'S WHAT LEAVES THE
STRUCTURAL DEFICIT WHICH IS A CURRENT CHALLENGE AND NEEDS
REVIEW.
THE SECOND MAJOR CHALLENGE OF COURSE IS ON THE HORIZON AND
IT INVOLVES THE FAITH OF A PROPOSED TAX HIKE IN NOVEMBER
PUT FORWARD BY THE GOVERNOR AND OTHERS AND THE PROBLEM FOR
THE CSU THAT SHOULD THE TAX INCREASE FAIL, THE TRIGGER
PROPOSED FOR THE CSU REDUCTION IS AN EXTRA 250 MILLION
DOLLARS.
IF THAT WERE TRUE, IF THAT CAME TRUE, IT WOULD REDUCE THE
STATE ALLOCATION TO THE CSU FROM THE CURRENT 2 BILLION TO
1.75 BILLION IN APPROXIMATE NUMBERS.
THE THIRD CHALLENGE IS ENDURING AND IS WITH US ALL THE TIME
BUT NEEDS TO BE REFERENCED AT LEAST AND THESE ARE THE
MANDATORY COSTS THAT THE CSU EXPERIENCES IN EVERY YEAR.
THE MANDATORY COSTS TEND TO INCREASE IN AREAS LIKE HEALTH
CARE COVERAGE FOR EMPLOYEES, IN AREAS LIKE UTILITIES COSTS
AND THERE ARE SOME OTHER THINGS.
THESE CAN APPROACH 50 MILLION DOLLARS IN A GIVEN FISCAL
YEAR AND THUS IN A WORLD WHERE OUR STATE ALLOCATION WAS
FLAT, WE WOULD NEVERTHELESS BE WRESTLING WITH REDUCTIONS
GIVEN THE MANDATORY COSTS THAT THE CSU HAS TO ENDURE.
SO, WITH THAT SETTING THE STAGE, WE ARE OPEN TO
CONVERSATION, WE ARE OPEN TO YOUR QUESTIONS, MY JOB WILL BE
TO TOSS QUESTIONS TO THE EXPERT PANEL HERE, TO THE VICE
CHANCELLORS AND PERHAPS TO OTHERS, BUT IN ADDITION TO THAT,
WE WANT YOUR COMMENTS, WE WANT YOUR INPUT AND WE WANT YOUR
IDEAS.
SOME OF THESE ARE CAPTURED IN MATERIALS THAT YOU'VE ALREADY
SEEN, WE HOPE THAT SOME PEOPLE HAVE A GOOD IDEA OR TWO OR 7
FOR US THAT WE COULD ADD TO THE LIST.
WITH THAT, PERHAPS WE CAN GO TO QUESTIONS.
>> OKAY, LET'S SEE, IT LOOKS LIKE WE DON'T HAVE ANY
QUESTIONS OR COMMENTS YET IN THE QUEUE HERE, KEITH.
SO, WE'RE WAITING ON FOLKS TO GO AHEAD AND TYPE IN YOUR
QUESTIONS, YOUR COMMENTS AND YOU'RE ALSO WELCOME TO RAISE
YOUR HAND, SO IN THE TOP OF YOUR SCREEN, YOU'RE GOING TO
SEE A LITTLE ICON THAT HAS A HAND RAISED AND ALL YOU NEED
TO DO IS GO TO THE DROP-DOWN AND SELECT RAISE HAND AND THEN
WE'LL SEE YOU LINE UP ON THE QUEUE AT THE LEFT SIDE OF THE
SCREEN AND WE CAN CALL ON THE NAMES THAT ARE RAISED, THIS
IS MEANT TO BE AN INTERACTIVE OPEN SESSION AS KEITH WAS
MENTIONING.
>> AS WE HAVE DISCUSSED THE ISSUES HERE, WE THINK THERE MAY
BE SOME BUCKETS OF QUESTIONS, SOME OF THESE WOULD INCLUDE
SEEKING EFFICIENT, MANIPULATING FINANCIAL AID IN THE CSU,
MANIPULATING TUITION AND FEES, MANIPULATING PROGRAM AND
ENROLLMENTS AND ENROLLMENT MANAGEMENT.
HERE WE HAVE A QUESTION FROM DIANNE ROPER.
>> OKAY, DIANNE, IF YOU WOULD LIKE TO UNMUTE YOUR LINE BY
PRESSING STAR 6, WE'LL BE ABLE TO HEAR YOU.
LOOKS LIKE SHE'S DIALING RIGHT BACK IN.
HOW ABOUT IF WE GO TO INDY, DO YOU WANT TO GO AHEAD AND
PRESS STAR 6.
>> HELLO.
>> HELLO, WE CAN HEAR YOU.
>> THIS IS FROM CSU, I HAVE THE BACKGROUND NOISE HERE.
HELLO?
>> YES.
I'M SORRY, IF YOU MUTE YOUR LINE OR, I'M SORRY, TURN DOWN
YOUR SPEAKER, WE'LL BE ABLE TO HEAR YOU A LITTLE BIT
BETTER.
>> OKAY, I HAVE TO HAVE SOMEBODY DO THAT, I'M NOT IN
[INAUDIBLE].
>> OKAY, WELL, YOU CAN GO AHEAD WITH YOUR QUESTION, WE CAN
HEAR YOU OKAY.
>> SO, MOST OF THE CUTS THAT YOU'VE BEEN TALKING ABOUT
REALLY IMPACT THE INSTRUCTIONAL SIDE OF THE UNIVERSITY.
IN MOST LARGER UNIVERSITY SYSTEMS, 42 OR 43% OF
EXPENDITURES GO TO THE INSTRUCTIONAL SIDE OF THE UNIVERSITY
BUT OUR OWN AUDITORS SUGGEST THAT IN THE CSU, ONLY 35% GO
TO INSTRUCTION, SO EITHER WE'RE SPENDING A LOT LESS ON
INSTRUCTION OR OUR AUDITORS ARE WRONG AND WE'RE REALLY
SPENDING MORE, SO WHY NOT FOCUS LESS ON CUTTING INSTRUCTION
AND MORE ON CUTTING IN OTHER AREAS THAT DON'T DIRECTLY
AFFECT INSTRUCTION?
>> OKAY, THANKS, I'M GOING TO INVITE EPHRAIM SMITH TO MAKE
A COMMENT THERE AND OF COURSE WE'RE LOGGING ALL THE
QUESTIONS.
>> WE'RE LOOKING AT ALL MAJOR ITEMS.
THE INSTRUCTIONAL BALANCE, NOT JUST FROM THE INSTRUCTIONAL
SIDE, [INAUDIBLE] BASICALLY EVERYTHING THAT'S ON THE TABLE,
LOOKING AT [INAUDIBLE].
>> IF YOU COULD PLEASE MUTE YOUR LINE BY PRESSING STAR 6,
WE'LL BE ABLE TO HEAR EVERYBODY CLEARLY, SO INDY, PLEASE
PRESS STAR 6, THANK YOU.
>> I'LL GO AHEAD AND MUTE EVERYBODY ONE MORE TIME, PLEASE
STAND BY.
>> [INAUDIBLE].
(NO AUDIO AVAILABLE).
>> I THINK WE'RE HAVING JUST AN AUDIO ISSUE, SO JUST ONE
MOMENT HERE, LET ME MAKE SURE EVERYBODY CAN HEAR CLEARLY.
OKAY.
I THINK WE'RE READY TO GO NOW.
>> WE'RE READY TO GO NOW, NEXT IN THE QUEUE IS SUSAN
O'CONNOR, WOULD SUSAN O'CONNOR PLEASE UNMUTE AND OFFER THE
QUESTION OR COMMENT, PLEASE.
>> GREAT, AND SUSAN, JUST AS A REMINDER, YOU CAN PRESS STAR
6 TO UNMUTE YOUR LINE.
>> OKAY, WE HEAR SOMEBODY WHO JUST ->> SUSAN O'CONNOR'S QUESTION, I HAVE IT ON MY SCREEN, OOPS,
I JUST LOST IT.
>> OKAY, WELL, WE DEFINITELY HAVE A LOT OF QUESTIONS IN THE
QUEUE.
WE CAN START MOVING TO SOME OF THESE QUESTIONS WHILE PEOPLE
ARE WORKING ON UNMUTING THEIR LINE.
>> OKAY.
>> OKAY, HERE I HAVE -- OKAY, I HAVE A QUESTION FROM
PRITESS, WHAT IS BEING IDENTIFIED TO REMOVING THE WASTE
TIED TO EFFECTIVENESS.
WOULD YOU HAVE A COMMENT, PLEASE, GAIL BROOKS?
STAR 6 TO UNMUTE, GAIL BROOKS.
>> I'M UNMUTED BUT THERE WAS SOME NOISE IN THE BACKGROUND,
I COULDN'T HEAR THE QUESTION.
>> THE QUESTION HAS TO DO WITH WHAT ARE WE DOING TO REMOVE
WASTE AND IMPROVE EFFICIENCY AND EFFECTIVENESS.
>> WELL, THERE ARE A NUMBER OF INITIATIVES HAPPENING AROUND
THE SYSTEM.
LET ME TALK ABOUT ONE THAT MY OWN OFFICE IS DOING AND THAT
IS THAT WE'VE ASKED THE LONG BEACH CAMPUS TO DO PAYROLL
BENEFITS AND LEAD REPORTING FOR US AND WE'RE CONSOLIDATING
OUR HR DATABASE WITH THEIRS, WE FIGURE JUST IN THIS SMALL
AREA THAT WE'LL SAVE SEVERAL HUNDRED DOLLARS, ONE
INITIATIVE IS THE CONSOLIDATION OF ALL OF THE COMMON HUMAN
RESOURCE DATABASES INTO ONE, THAT WILL ULTIMATELY ALLOW US
TO HAVE COMMON PROCESSES THAT WILL THEN ALLOW CONSOLIDATION
OF SERVICES ACROSS THE ORGANIZATION.
THERE'S ALSO A COMMITTEE, COMMON FINANCIAL SYSTEM COMMITTEE
THAT'S STUDYING THE OPPORTUNITY INVOLVED IN SHARED
SERVICES, THERE'S NO DECISION MADE, AND I KNOW THAT MANY
CAMPUSES ARE LOOKING AT COLLABORATIVE WAYS OF SHARING
RESOURCES SO THAT WE CAN DIVERT THOSE RESOURCES INTO AREAS
THAT ARE EITHER NEEDED OR TO REDUCE THE -- OR TO MANAGE THE
REDUCTION IN BUDGET.
>> OKAY, THANK YOU.
BEN QUILLIAN, A COMMENT?
>> I JUST WANTED TO SAY THAT WE ARE DOING A NUMBER OF
PROJECTS TO INCREASE EFFICIENCY.
LET ME JUST POINT OUT THOUGH THAT THE MAGNITUDE OF THE
STRUCTURAL DEFICIT AND THE PENDING TRIGGER SUGGESTS THAT WE
CANNOT REALLY GET THERE BY INCREASING EFFICIENCIES, CSU IS
ONE OF THE MOST EFFICIENT INSTITUTIONS IN THE COUNTRY AND
WE WILL NOT BE ABLE TO GENERATE 250 MILLION DOLLARS PLUS
ELIMINATE THE STRUCTURAL DEFICIT BY CREATING EFFICIENCY.
>> ANDY FROM SMITH, PLEASE.
>> A STUDY WAS DONE IN [INAUDIBLE] IN THE UNITED STATES,
THE 20 MOST EFFICIENT CAMPUSES, TEN OF THEM WERE CSU, I
AGREE WITH BEN, WE HAVE SUFFICIENCIES THAT ARE IMPORTANT
BUT WE HAVE TO LOOK AT OTHER AREAS.
>> THANK YOU, I HAVE JASON WENRICK, AND HE ASKS, HAVE YOU
CONSIDERED AN EARLY RETIREMENT INCENTIVE SO THE JOBS WILL
NOT BE REPLACED OR LE RE PLACED BY LOWER COST PEOPLE,
INCENTIVES COULD BE GIVEN EXTRA VACATION TIME OR ANYTHING
ELSE THAT YOU COULD ENCOURAGE FOR LONGER TERM EMPLOYEES TO
RETIRE?
GAIL BROOKS, I THINK YOU SHOULD BE FIRST UP ON THAT ONE.
>> WELL, IT'S ACTUALLY NOT ON THE TABLE AT THIS PARTICULAR
POINT IN TIME.
THERE ARE A NUMBER OF ISSUES INVOLVED IN CONSIDERATION OF
INCENTIVES, IT ACTUALLY, THERE'S A COST INVOLVED, THERE'S
THE ISSUE OF ONCE YOU'VE -- PEOPLE THAT YOU MAY NOT WANT TO
LEAVE, THERE COULD BE PEOPLE THAT LEAVE IN CRITICAL AREAS
AND THEN IF YOU HAVE TO REPLACE, YOU'RE [INAUDIBLE].
>> WE WANT TO MAKE SURE THAT THE SHARED SERVICES CONCEPT IS
A COST-SAVING MEASURE AND WE ARE DOING SOME COST SAVING
ANALYSIS RIGHT NOW, SO WE ARE LOOKING AT OTHER AREAS BUT WE
WANT TO TAKE OUR TIME AND MAKE SURE THAT IT'S A BENEFIT TO
YOU.
>> WE'RE GOING TO HEAR FROM EPHRAIM SMITH ON THAT AS WELL.
>> WE HAVE BEEN LOOKING AT THE LIBRARIES AS WELL, WE HAVE
PURCHASING FOR MANY YEARS WITH RESPECT TO JOURNALS AND SAVE
A CONSIDERABLE AMOUNT OF MONEY.
WE ARE NOW LOOKING AT GREATER COORDINATION AMONG THE
LIBRARIES AS A BASE.
>> WE ALSO HAVE A SUITE OF RESOURCES ASSIGNED TO THE
LIBRARIES THAT ARE ONLINE, ISN'T THAT RIGHT?
>> CORRECT.
>> AND ARE AVAILABLE SYSTEMWIDE FOR WHAT MIGHT BE A COST
SAVING?
>> YES.
>> JASON WENRICK, ANOTHER COST SAVING IDEA, MAKE SURE THAT
THE EMPLOYEES CANNOT MAKE MORE THAN 10 TIMES GREATER THAN
THE LOWER EMPLOYEES, TO BRING MORE EQUITY INTO THE
DISTRIBUTION OF FUNDS AND REMOVE FROM THE HIGHEST
ADMINISTRATIVE STAFF, GAIL BROOKS, IS THAT A MONEY SAVER?
>> I DOUBT THAT IT'S MUCH OF A MONEY-SAVER IN THIS
ENVIRONMENT AND YOU'RE TALKING ABOUT I THINK MORE
COMPENSATION PHILOSOPHY.
IT WOULD CERTAINLY RUN COUNTER TO THE WAY IN WHICH MOST
ORGANIZATIONS DETERMINE COMPENSATION FOR THEIR EMPLOYEES.
IT'S CERTAINLY SOMETHING THAT IS AN INTERESTING CONCEPT AND
YOU CAN THINK ABOUT WHAT THE END RESULT WOULD BE IF WE
WOULD DO SOMETHING LIKE THAT.
>> IT'S CERTAINLY IN THE PUBLIC MEDIA THESE DAYS AS WE
UNDERSTAND.
LET'S SEE, RISA, DO YOU AGREE WHILE WE UNDERSTAND CAL STATE
EMPLOYEES ARE NOT EMPLOYEES PER SE, GOVERNOR BROWN'S FOR A
35 DAY WORK WEEK WOULD FIT AS GIVEN FEW FRIDAY CLASSES?
GAIL, I THINK THAT'S TO YOU AGAIN.
>> WELL, IT'S CERTAINLY AGAIN SOMETHING TO CONSIDER.
THERE ARE A NUMBER OF ISSUES, ANYTHING OF THAT NATURE WOULD
NEED TO BE COLLECTIVELY BARGAINED AND AS WE CONSIDER ISSUES
OF PAY REDUCTION, THERE ARE IMPACTS ON EMPLOYEES OVER THE
LAST SEVERAL YEARS WE'VE WORKED HARD TO AVOID, BUT I
SUPPOSE THAT EVERYTHING IS GOING TO BE ON THE TABLE IF WE
GET THAT 250 MILLION DOLLAR PAY CUT AND THIS IS JUST
ANOTHER -- IT'S ANOTHER IDEA THAT WE CERTAINLY CAN LOOK AT.
I DON'T KNOW IF THERE'S A LOT OF SAVINGS TO NOT HAVE PEOPLE
ON CAMPUS ON FRIDAY.
AS IT IS, YOU'RE QUITE RIGHT, THAT IN SOME OF THE CAMPUSES,
THERE'S LESS ACTIVITY AND CERTAINLY OVER THE SUMMER, I
THINK SOME CAMPUSES CLOSE ON FRIDAYS, IT WOULD BE
INTERESTED TO KNOW WHAT THE SAVINGS WOULD BE FROM THAT.
THANK YOU FOR THE QUESTION.
>> OKAY, THANK YOU.
HERE'S A COMMENT FROM JASON, ANOTHER COST SAVINGS
SUGGESTION, ALLOW PEOPLE WHO WANT TO WORK PART-TIME TO DO
THAT, THUS REDUCING SALARIES.
GAIL FIRST, GAIL BROOKS, PLEASE.
>> I THINK IN MOST INSTANCES, EMPLOYEES WHO WOULD LIKE TO
REDUCE THEIR HOURS, IF THE WORK THAT THEY'RE DOING IS
AMENABLE TO THAT, THEY CAN CERTAINLY APPROACH THEIR
SUPERVISORS AND MANAGERS AND HAVE A CONVERSATION ABOUT
WHETHER THIS WORK COULD BE DONE WITH REDUCED HOURS SO
THERE'S NOTHING THAT COULD PREVENT CONVERSATION ABOUT THAT.
IT REALLY IS DEPENDENT UPON THE NEEDS OF THE CAMPUS AS WELL
AS THE DESIRE OF THE INDIVIDUALS.
LET ME JUST SAY SOMETHING TO YOU FOR A MOMENT THAT'S OFF
SIDE, JASON WENRICK IS SITTING NEXT TO ME SO IT SEEMS LIKE
THEY'RE USING HIS OFFICE AND HIS TELEPHONE SO THESE
QUESTIONS ARE COMING SO THE REST OF THE GROUP KNOWS, THIS
IS COMING FROM THE OFFICE OF AT SONOMA STATE.
>> AND WE'RE GOING TO HEAR FROM BEN QUILLIAN ON THE SAME
TOPIC.
>> THROUGH ATTRITION AND THROUGH OUR HIRING FREEZE, NOT
HIRING ANYTHING BUT THE MOST ESSENTIAL POSITIONS WHEN
VACANCIES COME OPEN, MOST OF OUR EMPLOYEES ARE WORKING
PRETTY HARD RIGHT NOW AND GAIL IS RIGHT, IF THEY REQUEST TO
GO PART-TIME, THE SUPERVISOR CAN DECIDE THAT'S WORKABLE,
BUT WE'VE GOTTEN TO A POINT NOW WHERE OUR WORK FORCE IS
PRETTY LEAN AND IT WOULD BE DIFFICULT FOR MANY OF OUR
EMPLOYEES TO GO INTO PART-TIME WITHOUT IMPACTING THE
PRODUCTIVITY OF THE UNIT.
>> THANK YOU.
LILLIAN ASKS, WHAT HAPPENED TO THE ANSWER TO THE FIRST
QUESTION, IT WAS INAUDIBLE.
I CONFESS, I DON'T KNOW, IF IT'S AN IMPORTANT QUESTION THAT
YOU WANT TO PURSUE, I INVITE YOU TO ASK IT AGAIN.
FRANKLY, AT THE TOP OF THIS WEBCAST, YOURS TRULY WAS TRYING
TO FIGURE OUT HOW TO MAKE THE MACHINES WORK, SO THERE'S A
LITTLE OF THAT GOING ON TOO, WE'RE GOING IN ORDER OF THE
QUESTIONS AND WE'RE TRYING TO ANSWER THEM.
HERE WE HAVE ONE FROM CHRISTINA, WHAT ARE WE DOING TO MAKE
SURE OUR CAMPUS SERVICES ARE COMPETITIVE IN THEIR
OFFERINGS, RECENTLY, CSUSB REMINDED US THAT ALL FOOD
CATERING MUST BE DONE THROUGH SODEXHO AND ANY EXCEPTIONS
MUST BE APPROVED BY THEM, A CLEAR CONFLICT OF INTEREST, SO
COMPETITIVE CAMPUS SERVICES, I'M GOING TO TRY BEN QUILLIAN.
>> I'M NOT FAMILIAR WITH WHAT'S GOING ON IN SAN BERN DEAN
KNOW WITH SODEXHO, BUT OUR SERVICES ARE BIDED OUT SO I
WOULD THINK WE WOULD GET COMPETITIVE PRICES.
>> OKAY, LET'S SEE, THERE'S A COUPLE OF ISSUES ABOUT THE
FIRST QUESTIONS AND OUR GET-GO PROBLEMS, I HOPE YOU'LL BEAR
WITH US, WE'LL MOVE DOWN TO SAVED WHO SAYS HOW MUCH
APPROXIMATELY OR WITHIN A RANGE DOES EACH PARTICULAR
STRATEGY FROM THE LAST MEETING DEFRAY FROM THE 250 MILLION
TRIGGER CUTS?
BEN QUILLIAN?
>> WE HAVEN'T DONE ALL OF THE ANALYSIS AS YET, BUT IT IS
CLEAR THAT MOST OF THE STRATEGIES THAT WE HAVE IDENTIFIED
ARE NOT GETTING US 250 MILLION DOLLARS.
IT IS A PROBLEM.
SOME OF THE THINGS THAT WE HAVE PUT ON THE TABLE ALSO
IMPACT STUDENT BEHAVIORS SO IT'S DIFFICULT FOR US TO
DETERMINE THE EXTENT ON WHICH THE BEHAVIORS WOULD BE
CHANGED AND THEN CALCULATE THE AMOUNTS OF SAVINGS, BUT I
THINK IT'S SAFE TO SAY THAT MOST OF WHAT WE HAVE IDENTIFIED
HAS NOT GIVEN US 250 MILLION DOLLARS AND THAT'S ONE OF THE
REASONS WE'RE HOPING THAT WE WILL GET SOME EXCITING IDEAS
FROM CONVERSATIONS LIKE THIS.
>> VERY GOOD.
KIM WRITES, IN THE MAY BOT MEETING, SEVERAL TRUSTEES CALLED
FOR PUBLIC HEARINGS ON THESE BUDGET OPTIONS, IN THE LAST
WEBCAST, THE CSU FACULTY AND STAFF UNIONS CALLED FOR THE
SAME THING, WHY HAS CSU MANAGEMENT NOT ACTED ON THESE
REQUESTS, THIS WOULD ALLOW CALIFORNIANS TO CONSIDER OTHER
IDEAS.
OKAY, LET'S SEE, BEN FIRST AND THEN OTHERS AS MAY WANT TO
CHIME IN.
>> I'M NOT SURE I QUITE UNDERSTOOD THE QUESTION.
>> PUBLIC HEARINGS ON BUDGET OPTIONS, EVIDENTLY SEVERAL
TRUSTEES CALLED FOR HEARINGS AT THE MAY BOARD OF TRUSTEES
MEETING AND IT WAS SECONDED BY UNIONS AND THE QUESTION IS
ARE WE GOING TO GET SOME PUBLIC HEARINGS OR WHAT'S
MANAGEMENT THINKING ABOUT THAT?
>> OH, WELL, THIS CONVERSATION HERE IS AN EFFORT IN THAT
DIRECTION.
ALSO, I AM BEGINNING TO WORK WITH SMALL GROUPS OF FACULTY
MEMBERS ON VARIOUS CAMPUSES TO DISCUSS THIS, BUT THEN
LARGER PUBLIC HEARINGS, THE FIRST MEETING WITH AN ATTEMPT
IN THAT DIRECTION AND THIS CONVERSATION TODAY IS A SECOND
ATTEMPT.
>> OKAY, FRANK ASKS OR COMMENTS, REDUCTIONS IN OVERALL
FACULTY NUMBERS HAVE INCREASED STUDENT FACULTY WORKLOAD.
WHILE RELYING ON MORE LECTURERS, THE INCREASES -- WHILE
RELYING ON MORE LECTURES HAS A CONSEQUENCE OF INCREASING
WORKLOAD AND STUDENT ADVISING FOR A TENURE TRACK FACULTY,
TO FRANK GOES ON, WHY NOT INCREASE MPP WORKLOAD BY REDUCING
THE NUMBER OF MPP'S OR CUT THEIR PAY BACK TO WHAT IT WAS
FIVE YEARS AGO.
YOU KNOW, GAIL BROOKS, SHOULD WE REDUCE THE MPP WORKLOAD BY
REDUCING THE AMOUNT OF MPP'S.
>> THAT'S STARTS WITH THE ASSUMPTION THAT THE WORKLOAD
HASN'T INCREASED FOR MPP'S, IT ISN'T AS MEASURED IN QUITE
THE SAME WAY THAT IT'S MEASURED FOR FACULTY, BUT POSITIONS
HAVE NOT BEEN FILLED, THERE HAVE BEEN CONSOLIDATIONS AND I
THINK THE ISSUE OF WORKLOAD IS AN ISSUE ACROSS THE ENTIRE
CSU AS OUR BUDGET CONTINUES TO SHRINK AND WE TRY TO DO
THOSE ACTIVITIES THAT ARE FOCUSED BOTH ON OUR STUDENTS BUT
ALSO THOSE THAT ARE MANDATED BY OUTSIDE AGENCIES BY LAW, BY
POLICY, OR THAT DEAL WITH RISKS TO THIS INSTITUTION, AND
THOSE ARE VERY REAL ISSUES, SO I BELIEVE THAT WE HAVE AN
INCREASE IN WORKLOAD IN ALL AREAS OF THIS INSTITUTION.
WE'D LIKE TO BE ABLE TO REDUCE IT FOR EVERYBODY FRANKLY.
>> OKAY, THANK YOU.
I'VE GOT ONE FROM SUSAN, SUSAN WRITES, CAN YOU PLEASE
ADDRESS THE PROGRESS ON SHARED SERVICES AND THE GOAL.
SHARED SERVICES, BEN?
>> WE'RE TALK ABOUT THE SHARED SERVICES INITIATIVE THAT'S
BEING LED BY PRESIDENT MARISHA AND ARMENIANA, THEY'RE IN
THE PROCESS OF DOING A COST BENEFIT ANALYSIS, THEY EXPECT
TO HAVE THEIR WORK DONE BY THE END OF THE CALENDAR YEAR AND
MAKE A RECOMMENDATION WHETHER WE SHOULD GO FORWARD WITH THE
SHARED SERVICES.
>> SO, WE'RE INVESTIGATING THE UTILITY OF IT USING COST
BENEFIT APPROACH?
>> THAT'S RIGHT.
>> DIANNE ASKS, GIVEN THE 250 MILLION DOLLARS IN STATE
FUNDING CONNECTED TO THE PASSAGE, THIS WOULD BE OF THE
INITIATIVE MEASURE IN NOVEMBER, WHY HAS THE BOARD OF
TRUSTEES NOT ENDORSED THE GOVERNOR'S BUDGET INITIATIVE?
THERE'S A GOOD ONE.
EPHRAIM, WHY HASN'T THE BOARD TAKEN A POSITION?
>> I BELIEVE THE BOARD'S WAITING UNTIL THE SIGNATURE WHILE
CONFIRMED BY SACRAMENTO, AND WHEN THAT IS DONE, THE BOARD
WILL TAKE A POSITION.
>> RIGHT, SO IT'S NOT ON THE BALLOT YET ACTUALLY, WE EXPECT
THAT IT WILL BE BUT IT HASN'T HAPPENED, IS THAT ABOUT
RIGHT?
>> YES.
>> OKAY.
ELIZABETH WRITES, WHAT ARE THE STRATEGIES TO PREVENT FUTURE
STUDENT FEE INCREASES AND ADDRESS THE CHALLENGES TO ACCESS
CREATED BY ENROLLMENT CAPS AND NEW ADMISSION REQUIREMENTS?
STRATEGIES TO PREVENT FEE INCREASES AND CHALLENGES TO
ACCESS, BOY, THAT'S A BIG ONE, DR. SMITH?
>> WELL, I THINK THE BOARD IS LOOKING AT ALL MAJOR TICKET
OPTIONS, BE IT TUITION, BE IT REDUCTION IN ENROLLMENT OR
ACCESS.
WE HAD A DISCUSSION WITH THE BOARD IN SEPTEMBER OF 2010
WITH THE SUSPECT TO EXTENDED EDUCATION OF ACCESS AND THE
BOARD WAS CONCERNED WITH SO MANY OF OUR CAMPUSES NOW
IMPACTED, WE WOULD [INAUDIBLE] DOWN ACCESS, THAT'S WHAT THE
DISCUSSION OF CAL STATE ON LINE WAS DISCUSSED AS AN
ALTERNATIVE, AS A GATEWAY FOR STUDENTS TO OBTAIN ACCESS AS
REASONABLE TUITION RATES, SO IT'S ONE OF THE ITEMS ON THE
TABLE ALONG WITH MANY OTHERS.
>> SO, OTHER STRATEGIES TO PREVENT FUTURE STUDENT FEE
INCREASES, THAT'S BIG QUESTION, BEN QUILLIAN, HOW ARE WE
GOING TO PREVENT STUDENT FEE INCREASES?
[INAUDIBLE].
>> ARE WE MAKING PLANS AND WILL THE PLANS BE PUBLIC
DIRECTLY TO YOU, DR. QUILLIAN?
>> I HAVE IN FACT TALKED TO THE CFO'S ABOUT MOVING FORWARD,
THEY ARE WORKING ON THEIR PLAN.
IT'S DIFFICULT TO FINALIZE THE PLANS UNTIL WE SEE WHAT THE
BUDGET WILL BE.
>> IT SAYS FROM RANDY, HOW WILL THESE SHORTFALLS IMPACT THE
AUXILIARY ORGANIZATIONS AND/OR OPERATING AGREEMENTS, I
THINK THAT'S TO YOU, BEN?
>> I DON'T SEE A DIRECT CORRELATION THERE.
WE OF COURSE ARE WORKING WITH THE AUXILIARIES TO DETERMINE
THE TYPE OF FUNCTIONS THAT THEY COULD TAKE ON TO ASSIST US
IN THIS DIFFICULT TIME, BUT I DON'T SEE IT AS REALLY
IMPACTING THE AUXILIARY IN A SIGNIFICANT WAY.
>> INDEED, RIGHT, WHAT ABOUT INCREASING TUITION FOR 18
UNITS AND OVER AND INCREASING TUITION FOR SUPER SENIORS.
WE'LL TRY BEN AND THEN EPHRAIM IF YOU WANT.
>> WE HAVE BEEN MAKING SOME CALCULATIONS, AS I MENTIONED
EARLIER, THOSE TYPES OF STRATEGIES IMPACT STUDENT BEHAVIOR,
BUT CLEARLY THOSE TWO IDEAS ARE VERY MUCH ON THE TABLE.
>> AND EPHRAIM?
>> A [INAUDIBLE] TUITION WILL AFFECT 16 UNITS, THIS IS A
MAJOR DISCUSSION ITEM, BUT YOU CAN CALCULATE HOW MANY
DOLLARS WOULD BE GENERATED, HOWEVER, BEHAVIORS CHANGE, BUT
STILL, THIS ONE IS THE VERY VIABLE ALTERNATIVE THE BOARD
HAS DISCUSSED, SUPER SENIORS IS ANOTHER ONE, 9% OF OUR
SENIORS STAY ON, SUPER SENIORS, IT'S NOT SO MUCH THAT WE
WOULD AGAIN RATE DOLLARS FROM SUPER SENIORS BUT WE WOULD
HAVE SEATS AVAILABLE FROM OTHER STUDENTS SO THEY CAN
GRADUATE.
>> WHAT'S THE DEFINITION OF A SUPER SENIOR.
>> FOR DISCUSSION POINTS, WE USE THE DEFINITIONS OF
STUDENTS THAT ARE TAKING OVER 150 UNITS, THEY'VE EARNED
OVER 150 UNITS.
>> MORE THAN 150 SEMESTER UNITS WHERE THE STANDARD FOR
GRADUATION IS 120, SO IT'S -- OKAY.
SUPER SENIORS, ALRIGHT.
VERONICA WRITES THE FOLLOWING, IF WE COULD SHUT OFF ALL
COMPUTERS AT THE END OF THE DAY AND SAVE ELECTRICITY -THAT MUST BE A BEN QUILLIAN QUESTION.
>> I DON'T KNOW WHAT THE ACTUAL SAVINGS WOULD BE, BUT IT'S
A GOOD IDEA, THE SMALL ITEMS CAN ADD UP AND IF WE'RE
TALKING SYSTEMWIDE, I THINK THAT'S SOMETHING THAT COULD BE
DISCUSSED.
I DON'T KNOW FOR EXAMPLE IF IT'S BETTER TO LEAVE THE
COMPUTERS ON FOR SOME REASON OR NOT, SO I WOULD HAVE TO
DEFER TO THE I.T. PEOPLE.
>> SAVING ELECTRICITY SOUNDS GOOD TO ME, ARE ANY FURLOUGH
DAYS PLANNED FOR THE FUTURE, ELIZABETH WRITES THIS, THAT
ONE'S FOR GAIL.
>> EVERYTHING'S ON THE TABLE RIGHT NOW, THERE'S NOTHING
THAT'S BEEN DECIDED, SO WE'LL HAVE TO WAIT AND SEE.
>> OKAY, AND SUSAN HAD APPROXIMATELY THE SAME QUESTION,
SUSAN, WE'RE GOING TO PASS YOU BY.
CANDY ASKS ABOUT AGE DISCRIMINATION, REHIRING MPP'S AS HIGH
COST, PART-TIME CONTRACTORS, 100 THOUSAND PLUS SURELY
CANNOT BE DEEMED LESS EXPENSIVE, PLEASE CLARIFY, SO GAIL
BROOKS, IF WE REHIRE I GUESS RETIRED MPP'S AS HIGH COST
PART-TIME CONTRACTORS, ARE WE SAVING MONEY OR ARE WE NOT
SAVING MONEY?
>> WHEN WE BRING ANYBODY BACK, WHETHER IT'S A REHIRED
FACULTY MEMBER, AN MPP, SOMEBODY WHO IS PART OF ONE OF THE
REPRESENTED GROUPS, WE TYPICALLY BRING THEM BACK BECAUSE
THEY HAVE AN EXPERTISE THAT'S IMPORTANT FOR THE
ORGANIZATION AND HELPS US FULFILL A SHORT-TERM NEED, IT IS
A NEED OF THE INSTITUTION.
FREQUENTLY, WE HAVE POSITIONS THAT HAVE BEEN LEFT VACANT
AND IF WE CAN FILL SOME OF THE IMMEDIATE NEED ON A SHORTTERM BASIS, WE ACTUALLY ARE SAVING THE ORGANIZATION MONEY.
>> GAIL, IS IT NOT ALSO THE CASE THAT SOMETIMES WITH A
PART-TIME CONTRACTOR, YOU CAN SAVE BENEFIT COSTS?
>> YES, THAT'S ACCURATE.
THAT'S ACCURATE, KEITH, ALTHOUGH, I THINK THAT'S PROBABLY
IN GENERAL NOT A LARGE TICKET ITEM.
I DON'T KNOW THAT THERE'S REALLY A LOT OF SAVINGS, I THINK
THE MORE IMPORTANT ISSUE TO FOCUS ON IS NOT THE COST ISSUE
BUT THE NEED AND THE BENEFIT TO THE INSTITUTION.
>> OKAY.
>> INDY WRITES, WHY ARE YOU CONTEMPLATING DRACONIAN MISSION
CHANGES WHEN THE CSU HAS HAD A POSITIVE CASH FLOW AVERAGING
380 MILLION DOLLARS PER YEAR, EVEN DURING THE TASK OF FIVE
YEAR PERIOD OF ANNUAL STATE FUNDING CUTS, BEN QUILLIAN,
AVERAGING 380 MILLION DOLLARS IN CASH FLOW?
>> I SHOULD POINT OUT FIRST OF ALL, THAT SOUNDS LIKE A LOT
OF MONEY BUT IN A SYSTEM OUR SIZE, THAT IS NOT A LARGE
AMOUNT OF MONEY, OUR PAYROLL IS OVER 300 MILLION DOLLARS A
MONTH, AND WE'VE BEEN CALLED ON BY THE STATE TO MAKE OUR
PAYROLL FROM TIME TO TIME, AND WE HAVE TO JUST HAVE NORMAL
RESERVES, SO I UNDERSTAND THAT IT MAY SOUND LIKE A LOT OF
MONEY BUT GIVEN THE SIZE OF THIS INSTITUTION, IT REALLY IS
NOT AN OUTLANDISH AMOUNT OF MONEY.
>> OKAY.
SUSAN RETURNS US TO A SIMILAR QUESTION, WHAT IS THE STATUS
OF THE DISCUSSIONS ON TIERED TUITION AND HOW QUICKLY WOULD
IT BE IMPLEMENTED IF APPROVED.
LET'S TRY EPHRAIM FIRST.
>> AS SAID EARLIER, THE THIRD TIER OF TUITION WOULD BE A
DISCUSSION POINT BY THE BOARD OF TRUSTEES, THE EARLIEST
THAT IT WOULD BE IMPLEMENTED IN ALL PROBABILITY WOULD BE IN
2013-14 YEAR.
>> OKAY.
AND HERE'S ONE, LET'S SEE, MEMBER OF THE CSUEB GROUP ASKS,
WHY WAIT UNTIL NOVEMBER TO IMPLEMENT SAVINGS MEASURES
RATHER THAN JULY 1?
BEN QUILLIAN, ARE WE WAITING UNTIL NOVEMBER TO SAVE MONEY?
>> NO, WE HAVE ALREADY BEGUN SOME ACTIVITIES SUCH AS THE
HIRING FREEZES, THE REDUCTION AND PURCHASES, ETC., AND WE
HAVE CERTAINLY PLANNED TO MOVE FORWARD, NOT JUST AFTER
NOVEMBER THOUGH, MOST OF THIS IS GOING TO HAVE TO SCALE TO
A PERMANENT REDUCTION, SO WE ARE MOVING FORWARD.
>> MARSHA HAS A COMMENT OR A QUESTION, LET'S SEE, HOLDING
COURSES VIA WEBINAR ALLOWS FOR DISCUSSION, COLLABORATION
AND PRESENTATIONS.
HOWEVER, THE ADOBE CONNECT PLATFORM MIGHT BE CONNECTED FOR
THIS USE, HAVING MORE THAN ABOUT 25 PARTICIPANTS WHEN
DISCUSSION IS USED CREATES NETWORK AND OTHER CONNECTIVITY
PROBLEMS, HOWEVER, WEBINAR MIGHT BE A MEANS TO SAVE COSTS.
WEBINAR, OTHER DISTANCE MEANS, SAVINGS COSTS, EPHRAIM, YOU
WANT TO TRY THAT?
>> WE'VE DONE THIS WITH A NUMBER OF MEETINGS, FOR EXAMPLE,
ACADEMIC COUNCIL, WE MET WITH A CONFERENCE CALL, WE CUT
DOWN ON SOME OF THE TIME OF THE MEETING, SOME GROUPS I HEAR
HOLD MOST OF THEIR MEETINGS NOW BY WEBINAR, SO IT IS A
MEANS OF CUTTING COST.
>> AND THERE'S A TECHNICAL QUESTION HERE THAT I DON'T KNOW
THAT ANYBODY'S GOING TO WANT TO TACKLE ABOUT THE
CONNECTIVITY AND UPGRADE ON ADOBE, I'M LOOKING AROUND THE
ROOM, WE'LL ARCHIVE THAT QUESTION AND SEE IF WE CAN MAKE A
SENSIBLE COMMENT ABOUT IT.
BY THE WAY, QUESTIONS AND ANSWERS ARE GOING TO BE POSTED IN
A DAY OR TWO AND SO I HOPE THAT Y'ALL WILL KEEP THAT IN
MIND.
BEN?
>> JUST ONE COMMENT.
CLEARLY THE CSU IS NOT THE STATE OF THE ART IN TERMS OF
TECHNOLOGY.
TECHNOLOGY IS A VERY EXPENSIVE ENDEAVOR AND WE HAVE TO
WEIGH IT HAVE CAREFULLY, THE BENEFITS OF TECHNOLOGY, WE
HAVE TO UNDERSTAND IN THIS BUDGET SITUATION, WE MAY BE A
LITTLE BIT BEHIND THE CURVE WITH TECHNOLOGY.
>> OKAY, DIANNE ASKS ABOUT FURLOUGHS, WILL THEY COME BACK?
GAIL, I THINK YOU SAID THINGS MAY BE AT THE TABLE WITH
BARGAINING, ANY ANSWER ABOUT FURLOUGHS?
>> I THINK THAT FURLOUGHS HELP US WITH ONE-TIME DOLLARS, SO
THERE'S SOME ADVANTAGES, BUT IF WE HAVE STRUCTURAL DEFICITS
IN A 250 MILLION DOLLAR REDUCTION, THEN FURLOUGHS REALLY
DOESN'T HELP US ACHIEVE WHAT WE NEED IN TERMS OF A
PERMANENT COST IN OUR BUDGET, SO IT IS ON THE TABLE.
IT WILL BE SOMETHING THAT WE'LL TALK ABOUT, BUT WOULD WANT
TO LET OUR LISTENERS KNOW THAT THE ADVANTAGE OF FURLOUGHS
IS THAT IT DOESN'T IMPACT PERMANENTLY INDIVIDUAL PAY BUT IT
ALSO DOESN'T ALLOW US TO ACHIEVE THE PERMANENT REDUCTIONS
THAT WE NEED AS AN ORGANIZATION.
>> OKAY, LILLIAN HAS A FOLLOW-UP TO THE MUDI'S QUESTION,
SHE SAYS IT TENDS TO BE PERSUADED BY DATA INSTEAD OF
EXPLANATIONS BY ACTIONS, WHAT FINANCIAL DATE DA IS MUDI'S
LOOKING AT THAT WOULD PURR SUEDE THEM TO KEEP THE RATINGS
SO HIGH.
BEN QUILLIAN, IS MUDI'S GETTING DATA THAT WE CAN DISCUSS
HERE.
>> THEY LOOK AT THE TRACK RECORD OF THE EXECUTIVES THAT ARE
WORKING WITH THE FINANCE, THEY LOOK AT A NUMBER OF THINGS,
THE DATA THEY'RE PRIMARILY LOOKING AT IS WITHIN THE
SYSTEMWIDE REVENUE BOND PROGRAM, THAT IS WHERE WE ACTUALLY
DO OUR DEBT SERVICE AND OUR REFUNDING AND SO FORTH, AND
THEY LOOK AT OUR LIQUIDITY VERY CLOSELY.
>> OKAY, SO MUDI'S GETS DATA AS OPPOSED TO EXPLANATIONS OF
ACTION?
>> THEY GET BOTH, THEY SEE OUR EXPLANATIONS AND WHAT KIND
OF PLANS WE HAVE IN PLACE.
>> MICHELLE WRITES, THE CSU RESERVES ARE ABOUT 2 BILLION
DOLLARS AND RISING, HOW MUCH OF THE RESERVES DOES CSU PLAN
TO USE TO ADDRESS THE CURRENT FISCAL SITUATION?
HOW SPECIFICALLY HAVE RESERVES BEEN USED SO FAR?
RESERVES, BEN, ARE THEY 2 BILLION AND ARE WE GOING TO USE
THEM?
>> MOST OF THE 2 BILLION DOLLARS THAT YOU SEE IS ACTUALLY
DESIGNATED FOR SPECIFIC PURPOSES.
IT'S NOT TECHNICALLY RESTRICTED IN THE TERMS OF HOW WE
NORMALLY CALL RESTRICTED FUNDS, BUT MUCH OF IT IS
DESIGNATED FOR SPECIFIC PURPOSES, SO WE CAN'T REALLY USE IT
FOR GENERAL OPERATING PURPOSES.
>> OKAY, ARE THERE OTHER WAYS THAT WE USE IT, DO WE BORROW
AGAINST IT FOR EXAMPLE, ARE THERE FINANCIAL MANAGEMENT WAYS
TO MAKE THAT A PLUS FOR US?
>> NO, WE DON'T BORROW IT.
>> OKAY.
LET'S SEE.
VERONICA, CAN WE CONSOLIDATE THE CSU ONLINE, I GUESS THAT'S
CAL STATE ONLINE NOW, COURSES AND ADD MORE SO THAT STUDENTS
AT ANY CAMPUS CAN TAKE ALL AVAILABLE ONLINE COURSES?
EPHRAIM, HOW ARE WE DOING ON SENDING VIA ELECTRONIC MEANS,
OUR COURSES FROM ONE CAMPUS TO THE OTHER?
>> WE ARE IN THE PROCESS NOW OF TRYING TO START A PILOT
WITH THE CAMPUSES.
WE SENT A LETTER TO THE PRESIDENT OF A NUMBER OF CAMPUSES
ASKING THAT IF WE COULD DO A PILOT, WE WOULD DEVELOP
BASICALLY A WEBSITE OF ONLINE COURSES THAT ANY STUDENT IN
THE CSU COULD TAKE, COURSES GRADUATING SENIORS NEED IN
THEIR CAMPUSES THAT MIGHT BE DELETED BECAUSE OF LACK OF
ENROLLMENT, THEY MAY CHOOSE TO TAKE IT ON ANOTHER CAMPUS
AND GRADUATE IN A TIMELY MANNER, SO THIS IS A PROJECT THAT
WE'RE WORKING ON.
CAL STATE ONLINE IS DEVELOPING ONLINE PROGRAMS FOR STUDENTS
TO TAKE, SO BOTH OF THESE PROJECTS ARE MOVING FORWARD.
>> SO, VERONICA, IT SEEPS WE'RE TAKING STEPS IN THAT
DIRECTION AND WE'LL GO TO THE NEXT ITEM HERE.
[INAUDIBLE].
>> ELIZABETH WRITES, TO WHAT EXTENT HAVE ENTIRE CAMPUS
CLOSURES BEEN ADDRESSED, AND WHAT NET CAN BE BROUGHT TO THE
CSU AS A WHOLE, PRESUMABLY IF WE CLOSED A CSU FILL IN THE
BLANK, HOW MUCH MONEY COULD WE SAVE?
BOY, THAT'S A GOOD ONE, ISN'T IT?
CLOSING A WHOLE CAMPUS, CAN WE SAVE MONEY?
>> YES, WE COULD, IT WOULD NOT BE A SHORT-TERM EFFORT, IT
WOULD TAKE A LONG TIME TO CLOSE A CAMPUS, I MENTIONED IN
PREVIOUS CONVERSATIONS THAT IT'S NOT AS SIMPLE AS PUTTING A
LOCK ON THE DOOR AND WALKING AWAY, YOU HAVE TO DECIDE WHAT
THE POSITION OF THE PROPERTY IS GOING TO BE, THE ONGOING
CONTRACTS, DEBT SERVICES, ETC., AND THEN OF COURSE CLOSING
A CAMPUS WOULD BE CONTRARY TO OUR MISSION OF SERVING
VARIOUS AREAS, SO IT WOULD BE EXTREMELY DISRUPTIVE TO
STUDENTS AND EMPLOYEES IN THAT AREA, AND FINALLY, THERE
WOULD BE I'M SURE A VERY STEEP POLITICAL HILL TO CLIMB IF
WE REALLY SERIOUSLY TRIED TO CLOSE A CAMPUS.
THAT IS ONE THAT PRESENTLY IS OFF THE TABLE.
>> SO, IT'S OFF THE TABLE, WE COULD SAVE SOME MONEY BUT IT
WOULD TAKE A LOT OF WORK TO SAVE IT ->> AND A LOT OF DISRUPTION.
>> NO SIMPLE TASK, LOTS OF DISRUPTION.
FROM SSU, WHY IS SAVING A RELATIVELY SMALL AMOUNT OF MONEY
A GOOD THING FOR YOUR CONSIDERATION OF SERVICES WITH LONG
BEACH OKAY, BUT NOT CONSIDERED ENOUGH OF A SAVINGS TO LOOK
AT REDUCING BENEFITS AND WAGES TO THE HIGHEST PAID?
I THINK THAT MUST BE GAIL.
>> MUST BE.
>> THE QUESTION CONTRASTS CONSOLIDATING SERVICES WITH
REDUCING COMPENSATION TO THE HIGHEST PAID PERSONS.
>> I THINK IT'S IMPORTANT TO LOOK FOR ALWAYS WE CAN SAVE
MONEY, LARGE AND SMALL, IT WOULD BE IMPORTANT TO NOTE THAT
REDUCING BENEFITS IN THE MAIN, OUR BENEFITS ARE PROVIDED BY
CALPERS, WE REALLY DON'T HAVE THE OPPORTUNITY TO PICK AND
CHOOSE THE BENEFITS THAT WE OFFER.
WE ALL GET THE SAME BENEFITS, AND I DID DISCUSS THE FACT
THAT AT SOME POINT AS WE PUT ALL ISSUES ON THE TABLE, HOW
WE COMPENSATE EVERYBODY IN THIS ORGANIZATION IS SOMETHING
WE'RE LOOKING AT AND CERTAINLY IS IMPORTANT IN THE GOVERNOR
AND TO THE LEGISLATURE AS WELL.
THANK YOU FOR CLARIFYING THAT.
>> A MEMBER OF CSUEB ASKS, CAN WE USE OUR CAMPUS MORE OFTEN
VIA RENTING OUT SPACE WHEN NOT IN USE, THAT'S A GOOD ONE,
HOW ABOUT RENTING OUT SPACE ON THE CAMPUSES AND MAKING A
FEW DOLLARS, BEN?
>> I'VE SEEN THAT IN SOME OF THE PLANS, I THINK THAT
CLEARLY, THOSE TYPES OF EFFORTS ARE BEING CONSIDERED BY THE
CFO'S ON THE CAMPUS.
>> SO, IT'S ACTIVELY UNDER CONSIDERATION AND IF IT MAKES
SENSE, THERE MIGHT BE A MOVE, OKAY.
MICHELLE, SORRY, I'M HAVING A HARD TIME READING THIS ONE.
MICHELLE SAYS, CRUNCHING SALARY NUMBERS REVEALS THAT THE
CSU COULD SAVE ABOUT 80 MILLION DOLLARS EACH YEAR IF ALL
THE EXECUTIVES AND MANAGERS WERE CONVERTED TO TEN MONTH
CONTRACTS, HOW MUCH SUMMER WORK ONE WANTED TO DO WOULD BE
AN ISSUE.
I BEG YOUR PARDON, I'M HAVING A LITTLE BIT OF COMPUTER
READING ISSUE HERE, BUT IT SOUNDS LIKE CONVERTING MANAGERS
AND MPP'S TO TEN MONTH CONTRACTS, GAIL BROOKS, IS THAT A
GOOD IDEA?
>> I GUESS I HAVEN'T EVEN CONSIDERED THAT ONE.
I'M NOT SURE.
I REALLY HAVE A FULL ANSWER TO GIVE, BUT AGAIN, I WOULD
LIKE TO GO BACK TO SOMETHING I SAID EARLIER.
MUCH OF THE WORK THAT'S BEING DONE AT THE INSTITUTION IS
WORK THAT IS FIRST IN SUPPORT OF THE STUDENTS, SECOND, IS
MANDATED BY LAW, BY POLICY OR GOVERNMENT OR OTHER EXTERNAL
AGENCIES, SO I WOULD IMAGINE THAT SOME OF THE MPP'S WOULD
LOVE THE OPPORTUNITY TO HAVE THEIR SUMMERS OFF, BUT I DON'T
KNOW THAT WE'VE EVER GIVEN THAT ANY CONSIDERATION,
CERTAINLY SOMETHING THAT WE COULD GO BACK AND TALK ABOUT.
>> BEN QUILLIAN, DO YOU WORK IN THE SUMMER?
>> YEAH, I THINK THAT ONE OF THE THINGS THAT HAPPENS
PARTICULARLY ON THE ADMINISTRATION AND FINANCE SIDE IS THAT
THINGS ACTUALLY SPEED UP DURING THE SUMMER, SO WE WORK
DURING THE FALL AND WINTER BUT WE ALSO USE THE TIME DURING
THE SUMMER WHEN THE STUDENTS AND FACULTY MIGHT BE AWAY TO
GET READY FOR THE NEXT YEAR, SO THERE'S A LOT OF WORK THAT
GOES ON, THE SUMMER FOR THIS SIDE OF THE HOUSE REALLY
DOESN'T SLOW DOWN.
>> SUSAN WRITES, WHAT LEGAL ARGUMENT OR STANDING IS THE CSU
USING TO PROTECT THE CAMPUSES ALL FUNDS BUDGETING, SWEEPING
THE STUDENT RESERVES [INAUDIBLE] WELL, BEN, CAN YOU TAKE A
RUN AT THAT QUESTION.
>> WELL, IF I UNDERSTOOD THE QUESTION, ANY OF THOSE FUNDS
CANNOT BE SWEPT AWAY FROM THEIR ORIGINAL PURPOSES, SO FUNDS
HAVE TO GO TO PROTECTING THE INTEGRITY OF THE OPERATION
THAT THE FEES ARE COLLECTED FOR.
>> IF YOU COULD SWEEP THEM, WOULD YOU?
>> SOME OF THEM, YEAH.
>> SOME OF THEM, YES.
DIANNE WRITES, HOW ABOUT NO REFUNDS FOR DROPPED CLASSES,
SHE SAYS WE HAVE A HUGE PERCENTAGE OF DROPPED CLASSES
PERHAPS WITH NO REFUNDS, STUDENTS WILL SELECT CLASSES MORE
CAREFULLY, EPHRAIM?
>> THAT IS ONE OF THE IDEAS ON THE TABLE, NOT WORDED LIKE
THIS, BUT WE ARE LOOKING AT A FEE WHEN A STUDENT TAKES A
COURSE MULTIPLE TIME.
THIS IS INDEED A SERIOUS ISSUE, IT AFFECTS MORE NOT SO MUCH
THE MONEY INVOLVED BUT IT AFFECTS MORE STUDENTS ON THE
CAMPUS AND A COST DISTRIBUTION.
>> RIGHT.
AND SUSAN WRITES, WHAT LEGAL ARGUMENT -- SAIL ONE, I BEG
YOUR PARDON.
DIANNE WRITES, REGARDING THE MANDATORY RETIREMENT QUESTION,
WHICH OPTION IS ILLEGAL ABOUT AGE DISCRIMINATION, SO CAN WE
MAKE PEOPLE RETIRE AT 65 OR SOME OTHER AGE, GAIL BROOKS?
>> ALL OF THE OPTIONS ARE ILLEGAL.
I DON'T KNOW THAT I FULLY REMEMBER YOUR QUESTION HAD A
COUPLE OF DIFFERENT PARTS, BUT IT'S NOT LEGAL TO REQUIRE
ANYONE TO RETIRE, THERE IS NO AGE LIMIT FOR THE YEARS AN
INDIVIDUAL CAN WORK, AND YOU CAN'T DISCRIMINATE BASED ON
AGE AND FOR REFERENCE, YOU MIGHT WANT TO LOOK AT THE AGE
DISCRIMINATION AND EMPLOYMENT ACT WHICH YOU CAN FIND FAIRLY
QUICKLY ONLINE, I'M SURE WE CAN PROVIDE A LINK TO THAT THAT
WOULD BE HELPFUL.
>> OKAY, AGE DISCRIMINATION AND EMPLOYMENT ACT IS IN THE
PICTURE THERE.
>> DAVID WRITES, WILL THERE BE A COST TO BENEFIT ANALYSIS
OF THE COST OF THE EARLY START PROGRAM, IMPLEMENTATION HAS
PROBABLY BEEN AN EXPENSIVE UNDERTAKING.
EPHRAIM, ARE WE GOING TO DO COST BENEFIT ON EARLY START?
>> WE HAVE AN ASSESSMENT PLAN BEING DEVELOPED THAT STARTING
THIS PLAN WILL LOOK AT THE SUCCESS OF THE STUDENTS AND
WE'LL BE FOLLOWING THOSE STUDENTS AND SEE HOW WELL THEY DO.
>> SOME OF THAT MIGHT BE COST BENEFIT YOU THINK?
>> I'M SURE IT IS AND WE'VE TRIED TO HOLD DOWN THE COSTS
FOR THE STUDENTS THIS SUMMER TAKING PROGRAMS, WE'RE
CHARGING THEM I THINK IT'S 182 DOLLARS PER UNIT AS A WAY OF
HOLDING DOWN THE COST OF THE PROGRAM.
>> SO, THE PRICE OF THE STUDENTS IS BEING ->> IS BEING MONITORED QUITE CAREFULLY.
>> OKAY, DAVID WRITES, SO THIS IS A GOOD ONE, COULD
CAMPUSES SET THEIR OWN TUITION TO HELP CLOSE THE GAP?
SO, EPHRAIM, CAN CAL STATE FILL IN THE BANK, MAKE A
DIFFERENT TUITION FROM THE REST OF THE UNIVERSITIES?
>> NO, THE TUITION FEES ARE SET BY THE BOARD OF TRUSTEES
AND AS OF NOW, THE SYSTEMWIDE ARE THE SAME THROUGHOUT THE
CAMPUSES.
>> IS THE BOARD GIVING ANY CONSIDERATION TO CHARGING MORE
FOR CAMPUS A VERSUS CAMPUS B?
>> THERE'S NOTHING BEEN DISCUSSED TO DATE.
>> WHAT DO YOU THINK ABOUT THAT, BEN?
>> WE DID RAISE THAT ISSUE AS ONE OF THE STRATEGIES THAT
HAD BEEN PUT FORWARD, THERE'S CONCERN ABOUT THE INEQUITIES
THAT WOULD BE INCREASED THROUGHOUT THE SYSTEM WITH CAMPUSES
THAT CAN CHARGE MORE BEING A BENEFIT TO OTHERS, TO THE
HAVES AND NOT TO THE HAVE NOT.
>> SO, IT WOULD BE A MATTER TO THE BOARD AND AT LEAST TO
NOW, THE BOARD ISN'T ANXIOUS TO DO THAT.
[INAUDIBLE] SAYS BACK TO PART-TIME EMPLOYEES BUT THERE'S NO
PREDICATE TO THAT, WE'RE GOING TO PASS YOU.
BOB ASKS OR COMMENTS, LET'S SEE, BOB, WILL THERE BE A
CALIFORNIA PUBLIC HEARINGS DISSEMINATION PRIOR TO THE
NOVEMBER ELECTION THAT WILL EXPLICITLY IMPACT THE 250
DOLLAR CUT.
SO, ARE WE GOING TO HAVE QUESTIONS OR INFORMATION
DISSEMINATION ABOUT WHAT THE 250 MILLION DOLLAR CUT WOULD
DO TO US AND IF NOT, WHY NOT?
>> WELL, WE ARE.
IN FACT, TWO BOARD MEETINGS AGO, I EXPLAINED WHAT THE
IMPACT WOULD BE TO OUR BOARD, THEY ARE RIGHT NOW ASKING FOR
ALTERNATIVE STRATEGIES TO MITIGATE THAT IMPACT.
IF WE WERE TO DO AN ALL CUTS BUDGET, THE IMPACT UPON THE
CAMPUSES WOULD BE VERY SEVERE.
I MENTIONED THE POSSIBILITY OF ELIMINATING OVER 3 THOUSAND
POSITIONS, REDUCING ENROLLMENT BY OVER 25 THOUSAND
STUDENTS, ELIMINATION OF ATHLETIC PROGRAMS, SO IT WOULD BE
A VERY SEVERE IMPACT AND WE ARE TRYING NOW TO MITIGATE
THAT.
>> WE WILL GET OUT THE WORD.
VERONICA, CSUEB ASKS, INSTEAD OF RAISING STUDENT FEES
AGAIN, WHY DON'T WE REQUIRE STUDENTS TO CONTRIBUTE
SUPPLIES, JUST LIKE PUBLIC SCHOOLS.
EPHRAIM, SHOULD STUDENTS CONTRIBUTE SUPPLIES IN LIEU OF
PAYING CASH?
>> WELL, ACTUALLY, IF YOU LOOK AT WHAT'S HAPPENING IN THE
NATION AND THE STATE NOW, THERE'S A QUITE OF BIT OF
QUESTIONS BEING RAISED ABOUT HOW MUCH TO PAY FOR TEXTBOOKS,
AND WE'VE BEEN AT THE FOREFRONT WITH SOLUTIONS TO TRY TO
CONTROL SOME OF THOSE COSTS.
AS FAR AS SUPPLIES, IF WE PUT BACK A UNIVERSITY, IN THE OLD
DAYS WHEN WE HAD CHARGES FOR CAMPUS FEE SUPPLIES AND SOME
OF OUR LAB SUPPLIES, BUT USUALLY THESE SMALL ITEMS -SOMETIMES IT COSTS MORE MONEY TO COLLECT THE FEE THAN THE
FEE ITSELF, SO WE'RE LOOKING NOW BECAUSE OF THE MAGNITUDE
OF THE CUTS, IT'S A BIG TICKET ITEM, NOT THAT WE SHOULD BE
CAUTIOUS FOR SMALLER ITEMS BUT THEY'RE NOT GOING TO HELP US
CLOSE THAT GAP.
>> LAUREL WRITES, IS THERE DISCUSSION OF MOVING TOWARDS A
FOR PROFIT MODEL TO WORK WITHIN THE CONFINES OF OUR BUDGET?
BEN, ARE WE GOING TO BECOME A FOR PROFIT UNIVERSITY IN
WHOLE, IN PART, IN SOME WAYS?
>> I'M NOT SURE WHAT'S MEANT BY FOR PROFIT, CLEARLY WE ARE
NOT GOING TO BE OPERATING AS A FOR PROFIT ORGANIZATION
WHERE THE PROFITS ARE DISTRIBUTED BACK TO SHAREHOLDERS AND
SO FORTH, BUT THERE'S A MEANS TO REDUCE COSTS TO GENERATE
SAVINGS AND SO FORTH, WE WOULD CERTAINLY BE DOING THAT AND
TO THE EXTENT THAT MODELS IN THE CORPORATE WORLD FIT THE
UNIVERSITY WORLD, WE WOULD CONSIDER THOSE, BUT CERTAINLY
WE'RE NOT GOING TO MOVE TOWARD A FOR PROFIT ->> IN THE SENSE OF FOR PROFIT WHERE THE SHAREHOLDERS
BENEFIT, UNLIKELY IN THE EXTREME.
IN THE SENSE OF CHARGING MORE FOR SOME KINDS OF PROGRAMS OR
ACTIVITIES [INAUDIBLE].
>> [INAUDIBLE] ASKS, WOULD THE SYSTEM ENTERTAIN THE MOTION
OF PAYING A PERCENTAGE OF EMPLOYEE BENEFITS EQUAL TO THE
PERCENTAGE OF TIME THEY WORK, IE, 40% OF EMPLOYEES GET 40%
OF THE BENEFITS, NOT 100%, THAT SOUNDS LIKE A BARGAINING
TOPIC.
DO YOU WANT TO TRY THAT?
>> WELL, IT IS A BARGAINING TOPIC, BUT EVEN BEFORE, WE
WOULD NEGOTIATE THOSE, THE RATE THAT EMPLOYEES AND
EMPLOYERS PAY TOWARDS HEALTH CARE, PARTICULARLY THE
CONTRIBUTION FOR EMPLOYEES IS BEST BY GOVERNMENT CODE, SO
WE WOULD HAVE TO HAVE THAT CHANGED BEFORE WE COULD EVEN
TAKE IT BACK TO THE COLLECTIVE BARGAINING TABLE.
>> SO, IT'S GOVERNMENT CODE FIRST AND THEN IN THE IMAGINED
ALTERNATIVE OF A CHANGE IN CODE, IT WOULD BE BARGAINED?
>> THAT'S CORRECT.
>> DAVID WRITES, THE STRATEGIES PRESENTED ON THE RECENT
POWERPOINT ARE BROAD AND CANNOT BE CONSIDERED IN ISOLATION.
WHAT WORK IS BEING DONE TO DEVELOP A COHESIVE PLAN, BEN,
ARE WE PLANNING COHESIVELY?
>> YES, INDEED.
THAT'S WHAT WE ARE MOVING TOWARD RIGHT NOW.
WE HAVE BEEN SOLICITING INPUT FROM OUR CONSTITUENT, WE'VE
TALKED WITH OUR PRESIDENTS AND CSO'S AND WE'RE GOING TO BE
MOVING TOWARDS A COMPREHENSIVE PLAN.
>> SO, PLANNING IS UNDERWAY AND WATCH FOR DEVELOPMENTS?
>> YES, INDEED.
>> HERE'S ONE, REFERRING TO THE QUESTION REGARDING RETIRED
ANNUITANCE, ARE THERE LEGAL ISSUES AND IF SO, WHAT ARE
THEY.
GAIL, ARE THERE LEGAL ISSUES TO HIRING RETIRED ANNUITANCE.
>> I AM NOT AWARE THAT THERE ARE LEGAL ISSUES INVOLVED IN
THAT EXCEPT TO THE EXTENT THAT THERE IS A LIMIT TO THE
AMOUNT OF TIME THAT A REHIRED ANNUITANT CAN WORK AND THAT'S
SERVED BY CALPERS, SO THEY WOULD HAVE TO ACTUALLY UNRETIRE
AND COME BACK TO WORK.
>> OKAY.
CHRISTINA WONDERS, HAVE WE THOUGHT OF CHARGING CENTERS AND
INSTITUTES ON CAMPUS, CHARGING RENT TO CENTERS AND
INSTITUTES ON CAMPUSES, EPHRAIM, DO WE CHARGE RENTS TO
CENTERS AND INSTITUTES, SHOULD WE?
>> THAT'S A CAMPUS DECISION, AND I KNOW THAT ON SOME OF
CAMPUSES, WE'RE LOOKING AT THE NUMBER OF GRANTS, CONTRACTS
THAT THE INSTITUTES BRING IN AND CAN THEY AFFORD SOME OF
THE MAGNITUDE OF THE CENTERS, SO THERE'S A QUESTION BEING
ASKED ABOUT THE DOLLARS BEING BROUGHT IN TO SUPPORT THAT.
>> SO, THERE MIGHT BE SOME KIND OF A TAX OR IF NOT A RENT
ON CENTERS OR INSTITUTES THAT APPEAR TO HAVE THE MEANS TO
SUPPORT OTHER THINGS?
>> YES.
>> HERE'S ONE FROM DAVID, WHY ISN'T THE CSU PROPOSING A FEE
INCREASED LINKED TO THE FAILURE OF THE TAX VOTE IN
NOVEMBER?
WELL, I REMEMBER THE CHANCELLOR WAS TALKING ABOUT TRIGGERS
AND OTHER COUNTER TRIGGERS.
BEN?
>> YEAH, THE PHRASE THAT WE'VE BEEN USING IS THE TRIGGER ON
THE TRIGGER.
THE BOARD HAS NOT INDICATED THAT THEY WANT TO GO IN THAT
DIRECTION YET, BUT CLEARLY, THAT IS WHAT WE'RE TAKING INTO
CONSIDERATION.
>> IT WOULD CLEARLY BE A BOARD ITEM, BUT THE SENIOR PEOPLE
AT THE CHANCELLOR'S OFFICE ARE LOOKING AT IT, IS THAT FAIR?
>> THAT'S CORRECT:
>> FROM SUSAN, WHAT STEPS ARE THE BOARD TAKING SO THEY'RE
NOT AT THE MERCY OF STATE FUNDING EACH YEAR, HOW ABOUT
OTHER SOURCE OF GOOD FUNDING, EPHRAIM, GOT ONE?
>> THIS HAS BEEN DISCUSSED FOR YEARS [INAUDIBLE] STATE
FUNDING, AND TUITION AND STATE FUNDING, THIS IS WHERE WE
RECEIVE OUR [INAUDIBLE] SO FAR, WE HAVE NOT COME UP WITH A
MEANS OF SECURING FUNDING THAT WE DO NOT EVERY YEAR HAVE TO
GO BACK AND SEE WHAT THE ALLOCATION IS, IF THE ALLOCATION
IS INSUFFICIENT, THEN TALK ABOUT RAISING FEES.
>> BEN, HOW ABOUT GETTING THE CSU TO A PLACE WHERE WE'RE
NOT AT THE MERCY OF STATE FUNDING?
>> I THINK THAT'S GOING BE PROBLEMATIC GIVEN THE ADMISSION
OF THE CSU AND THE STATE.
UC FOR EXAMPLE IS A RESEARCH INSTITUTION, A MEDICAL SCHOOL,
LAW SCHOOL AND A LOT OF RESOURCES COMING IN AND DIRECT
[INAUDIBLE] THE COMPREHENSIVE INSTITUTION, WE DON'T HAVE
THOSE KINDS OF OPTIONS, FOR EXAMPLE, MOST OF THE RESEARCH
INSTITUTIONS IN THE STATE AND THROUGHOUT THE COUNTRY ARE
AROUND 20% DEPENDENT UPON STATE APPROPRIATIONS.
WE ARE A LITTLE MORE THAN HALF RIGHT NOW, SO IT'S JUST A
DIFFERENCE, WE DON'T HAVE THE OPTION LIKE THE OTHER
INSTITUTIONS HAVE.
>> IT WOULD BE A GOOD IDEA BUT OUT OF REACH FOR THE MOMENT.
HERE'S ONE FROM BOB, THE QUESTION ABOUT PUBLIC HEARING WAS
NOT A QUESTION ABOUT THIS TYPE OF HEARING.
PRIOR TO THE ELECTION AND ASSUMING THAT WE, THE CSU, HAVE
IDENTIFIED THE CUTS THAT WILL OCCUR TO DEAL WITH THE 250
MILLION DOLLAR CUT IS THE POINT, VOTERS WILL KNOW
EXCLUSIVELY WHAT WILL OCCUR.
SO, I GUESS THE QUESTION WOULD BOIL DOWN TO, ARE WE GOING
TO GO OUT IN PUBLIC TO LIVE IN HEARINGS DETAILING OUR CUTS,
BEN, WHAT DO YOU THINK?
>> WE DON'T HAVE SUCH PLANS IN PLACE RIGHT NOW, BUT I DO
KNOW THAT GARRETT IS WORKING ON A NUMBER OF STRATEGIES TO
GET THE WORD OUT.
>> EPHRAIM?
>> AND ALSO WITH OUR ENROLLMENT PERIODS NEXT YEAR, WE
ANNOUNCED WE WILL BE CLOSED IN THE SPRING OF 2013 AND
STUDENTS FOR THE FALL OF 2013 WILL BE WAIT LISTED UNTIL WE
HEAR ON THE GOVERNOR'S INITIATIVE SO THAT'S BEEN SENDING A
STRONG MESSAGE TO PUBLIC ABOUT WHAT'S HAPPENING AT THE CSU.
>> SENDING MESSAGES.
>> SUSAN WRITES, CAL STATE ONLINE IS BEING DISCUSSED AS A
COST SAVING OR EFFICIENCY MEASURE, IT TAKES A LOT OF
INFRASTRUCTURE 1K3 STAFFING TO RUN SOMETHING ONLINE, IS IT
REALLY A COST SAVER OR JUST A COST SHIFTER, EPHRAIM?
>> CSU ONLINE, THIS IS NOT A NEW IDEA, OTHER STATES, OTHER
SYSTEMS, OTHER UNIVERSITIES IN THE UNITED STATES HAVE
ONLINE OPERATIONS.
THIS IS BEING RUN AS A WAY OF GENERATING FUNDS AND
PROVIDING ACCESS TO STUDENTS, NOT AS A WAY OF TRANSFERRING
COST OR ANYTHING OF THE LIKE, AND WE'RE MOVING AHEAD WITH
THE IDEA THAT THIS ENDEAVOR WOULD ACTUALLY GENERATE
DOLLARS, NOT COST US DOLLARS.
>> OKAY.
HERE'S CRAIG, HE WRITES, HAVE ANY DECISIONS BEEN MADE FOR
ACTINIDE REDUCTIONS TO BRIDGE THE BUDGET FROM JULY TO THE
NOVEMBER INITIATIVE, SO WHAT ARE WE GOING TO DO FROM JULY 1
TO NOVEMBER -- WHATEVER IT IS -- MR. CHIEF FINANCIAL
OFFICER, BEN, PLEASE?
>> IN ADDITION TO THE THINGS THAT HAVE ALREADY BEGUN ON THE
CAMPUSES REGRETTABLY, THEY WILL HAVE TO USE SOME ONE-TIME
FUNDS.
>> SO, THE CAMPUSES WOULD USE ONE-TIME FUNDS AND SO THAT -SO THE STRATEGY IS EFFECTIVELY GOING TO BE A LITTLE
DIFFERENT FOR EACH CAMPUS?
>> YES.
>> ABIGAIL WRITE, I'M A LITTLE CONFUSED AS TO WHY WE'RE
HERE, THE CSU IS IN A VOLATILE POSITION, WE DON'T KNOW IF
THE GOVERNOR'S INITIATIVE WILL PASS, WHY DON'T WE FOCUS ON
WINNING THE REVENUE INITIATIVE AND HIRING A NEW CHANCELLOR
INSTEAD OF HAVING THIS CONVERSATION DURING TRANSITION
PERIOD AND MAKING DECISIONS THAT WOULD ADVERSELY IMPACT A
GENERATION OF STUDENTS, SO EPHRAIM, WHY ARE WE HERE?
>> I THINK THE ISSUE IS BECAUSE OF THE MAGNITUDE OF THE CUT
IF THE INITIATIVE FAILS, BESIDES IT BEING A 250 MILLION
DOLLAR CUT, WE'D ONLY HAVE SIX MONTHS THEN TO GENERATE THE
FUNDS OR TO DECREASE EXPENDITURES, OF A SMALLER CUT, YOU
SAY YOU COULD HANDLE IT IN SIX MONTHS, NOT OF THIS
MAGNITUDE, THAT'S WHY WE MUST PLAN FOR IT NOW AND NOT WAIT
TO SEE WHAT WILL HAPPEN IN NOVEMBER.
>> AND BEN?
>> WELL, THIS SESSION TODAY IS NOT DETRACTING FROM THE
EFFORTS TO HIRE A NEW CHANCELLOR, THE BOARD IS WORKING TO
ESTABLISH [INAUDIBLE] MOVING FORWARD, SO I THINK WE'RE
MOVING IN VARIOUS DIRECTIONS AT THE SAME TIME.
>> OKAY.
AND WE HAVE A COUPLE OF QUESTIONS FROM JULIE, FIRST, CAN WE
UTILIZE OUR CAMPUS INTERNET INFRASTRUCTURE?
CAN WE SELL A LITTLE BIT OF OUR INTERNET ACCESS AND MAKE A
FEW DOLLARS?
>> THAT MAY BE POSSIBLE.
I'M NOT CLEAR OF ALL OF THE RESTRAINTS THAT MAY BE THERE, I
THINK IT'S CERTAINLY SOMETHING THAT WE SHOULD BE MINDFUL
OF.
>> AND THE SECOND ONE, MANY CAMPUSES HAVE ART HANGING ON
THE WALLS, CAN THESE BE SOLD AND BE REPLACED WITH LESS
EXPENSIVE POSTERS OR STUDENT WORK?
EPHRAIM, SHALL WE REDUCE OUR EXPENDITURES ON ART?
>> IF THERE'S EXPENDITURES IN ART, THAT COULD BE AN AREA
THAT WE WOULD REDUCE SOME EXPENDITURES.
>> AND BEN PLEASE.
>> MOST OF THE ART THAT YOU SEE HAS BEEN DONATED AND IT'S
BEEN DONATED TO THE INSTITUTION AND I THINK THE DONORS
WOULD BE CONCERNED IF WE SOLD THEIR ART WORK.
ALSO, IT IS CALCULATED INTO OUR ASSETS ON THE FINANCIAL
STATEMENTS, SO IT WOULDN'T BE WISE IN MANY CASES TO SELL
THE ART.
>> BRYCE WRITES, ASSUME THE POLITICAL WILL TO IMPOSE A
DRAMATICALLY STRUCTURE FOR GOVERNANCE AND MANAGEMENT, HOW
MUCH WOULD BE SAVED BY CLOSING THE ENTIRE GOLDEN CLOSE
ORGANIZATION.
BEN, WHAT DO WE USE TO HAVE THIS OFFICE?
>> IT'S ABOUT 60 MILLION DOLLARS, THAT'S WHAT YOU WOULD
SAVE TO CLOSE IT, THERE WOULD BE A NUMBER OF ACTIVITIES
THAT WOULD HAVE TO GO OUT TO THE CAMPUSES SO THEY WOULD
HAVE TO BEEF UP TO CARRY OUT THE FUNCTIONS OF THE
CHANCELLOR'S OFFICE, SO I DON'T KNOW IF THERE WOULD BE
SAVINGS OR NOT.
THERE ARE A NUMBER OF ACTIVITIES AND FUNCTIONS THAT ARE
CARRIED OUT BY THE CHANCELLOR'S OFFICE THAT MAKE IT EASIER
ON THE CAMPUS THEMSELVES, AND IF WE PUT THAT ALL ON THE
CAMPUS, I DON'T KNOW IF IT WOULD BE GOOD.
>> SO, IT'S 60 MILLION DOLLARS ON THE SURFACE BUT IF THE
CAMPUSES HAVE TO PICK IT UP, IT'S NOT SO APPARENT THAT IT
WOULD BE NET SAVINGS.
[INAUDIBLE] WRITE, DOES IT NOT MAKE SENSE TO INCREASE
SIGNIFICANTLY EMPLOYEE CONTRIBUTIONS TO PENSION AND HEALTH
BENEFITS?
GAIL BROOKS, SHALL WE SIGNIFICANTLY REDUCE EMPLOYEE
CONTRIBUTIONS TO BENEFITS?
>> THAT'S AN ISSUE WE'RE GOING TO HAVE TO LOOK AT AS WE
MOVE INTO THIS EVEN MORE INTRACTABLE BUDGET SITUATION, BUT
I DID MENTION EARLIER THAT THERE IS LEGISLATION THAT
GOVERNS HOW MUCH WE CAN ASK AN EMPLOYEE TO CONTRIBUTE
TOWARDS THEIR HEALTH BENEFITS AND WE HAVE COLLECTIVE
BARGAINING, BUT IT'S SOMETHING THAT IF WE LOOK AT ALL THE
WAYS THAT WE CAN MANAGE IN THIS BUDGET ENVIRONMENT, THAT'S
GOING TO BE ON THE TABLE.
>> ON THE TABLE, LOTS OF THINGS.
>> HOW ABOUT CONSOLIDATING PRESIDENTS, HOW ABOUT ONE
PRESIDENT PER TWO CAMPUSES?
EPHRAIM, HAVE YOU SEEN A PRESIDENT AND DO THEY HAVE ENOUGH
SPACE IN THEIR LIVES TO RUN TWO PLACES?
>> WELL, THE SUNY SYSTEM TRIED THIS FOR TWO MONTHS BUT I
BELIEVE THEY BACKED DOWN ON THEIR CAMPUSES AND THEY HAD
ANNOUNCED THAT THOUGH WE ARE LOOKING FOR SOME SHARED
SERVICES FOR INDIVIDUALS, I BELIEVE WE HAVE A CSI LOOKING
OVER SEVERAL OFFICES, WE'VE DONE[INAUDIBLE].
>> I DOUBT WE WOULD SEE THIS.
>> SO, MAYBE NOT PRESIDENTS, IT COULD BE SOME OTHERS, BEN?
>> I WAS GOING TO ADD THAT A LARGE PART OF THE PRESIDENT'S
RESPONSIBILITY IS FUNDRAISING IN THE COMMUNITY THAT
REQUIRES THE ESTABLISHMENT OF RELATIONSHIPS IN THE
COMMUNITY.
I HAD A PRESIDENT THAT WAS HANDLING A VERY LARGE COMMUNITY
SCOPE AND IT WOULD HAPPEN IF YOU WERE TRYING TO LEAD MORE
THAN ONE CAMPUS, IT MAY IMPACT NEGATIVELY, THE ABILITY OF
FUNDRAISING.
>> OKAY.
DIANNE WRITES FROM CSU LONG BEACH, YOU HAVE SAID THERE HAS
BEEN A REDUCTION IN MANAGEMENT, HOWEVER, THERE'S A BRAND
NEW ASSOCIATE VICE CHANCELLOR IN HR AT THE CHANCELLOR'S
OFFICE, WHY CAN'T THE CURRENT MANAGEMENT DO THE WORK AS
THEY HAVE BEEN IN THE PAST.
GAIL, ARE YOU HIRING NEW PERSONS FOR NEW POSITIONS?
>> WELL, WE DID HIRE THIS POSITION IN HUMAN RESOURCES, IT
WAS A POSITION THAT HAD EXISTED FOR MANY, MANY YEARS, OVER
THE LAST YEARS THAT WE'VE TRIED TO MANAGE WITHOUT THAT
POSITION AND HAVE USED SOME EXTERNAL EXPERTISE, WE'RE
BRINGING THAT EXPERTISE IN-HOUSE WHICH IS WHERE I BELIEVE
IT BELONGS AND I THINK IT'S BEEN MOVING IN THE DIRECTION
THAT DIANNE IS SUGGESTING.
>> ANDY WRITES, 7 YEARS OF SHORT-TERM, QUESTION MARK.
I DON'T KNOW THE REFERENCE.
CLOSING A CAMPUS MAYBE?
ANDY, I THINK WE'RE GOING TO PASS YOU, I DON'T KNOW WHAT
YOU'RE DRIVING AT THERE.
CSEB ASKS, ARE THERE ANY OTHER WAYS TO SECURE FUNDING FOR
THE CSU OUTSIDE OF THE STATE SUCH AS CORPORATE SPONSORSHIP
WITH DELL, WITH COKE, WITH APPLE, OKAY, CAL STATE FILL IN
THE BLANK, A CAMPUS PRESENTED BY DELL COMPUTERS, EPHRAIM,
DO YOU LIKE IT?
>> I BELIEVE WE DO HAVE SOME SPONSORSHIPS IN THE AREA OF
ATHLETICS, I DO BELIEVE WE HAVE SOME COKE OR PEPSI
CAMPUSES, SO WE SEE A LITTLE OF THIS.
>> RIGHT UP THERE ON THE LOGO.
>> NOT ON THE LOGO.
>> CAL STATE PRESENTED BY APPLE, OKAY.
APPLE'S PRETTY COOL.
BEN?
>> YOU NEED TO BE CAREFUL WITH THAT KIND OF THING TOO.
THERE'S A CERTAIN LEVEL OF INDEPENDENCE, ACADEMIC INTEGRITY
THAT NEEDS TO BE PROTECTED, YOU DON'T WANT TO BECOME A PAWN
OF SOME CORPORATION, SO I THINK YOU HAVE TO BE VERY CAREFUL
IN MOVING IN THAT DIRECTION.
>> OKAY, WE MOVE THE MICROPHONE CLOSER TO DR. SMITH, SO
THANKS FOR THE HEADS-UP.
BRUCE, IF THERE IS A 5% PAY CUT, IS THAT AN ACTUAL
REDUCTION IN SALARY OR TEMPORARY LIKE OF FURLOUGH.
ARE YOU THINKING ADVANCED FLUFF TO TALK ABOUT THAT?
>> IT'S NOT ADVANCED ENOUGH TO KNOW IF THERE IS GOING TO BE
ANY SORT OF A PAY CUT, BUT I CAN GIVE SOME INFORMATION
ABOUT THE DIFFERENCE BETWEEN A PAY CUT AND A FURLOUGH,
AGAIN, FURLOUGH IS TEMPORARY, NOT ONLY TEMPORARY IN TERMS
OF THE CALM PUS, BUT TEMPORARY IN TERM OF THE IMPACT TO THE
EMPLOYEE, WHEN WE HAD FURLOUGHS THE LAST TIME, WE HAD
AGREEMENTS WITH CALPERS NOT TO REDUCE BENEFITS AND YOUR PAY
WAS RESTORED AT THE END OF THAT YEAR, SO IT DID NOT LOSE
THE FULL, ACTUAL PAY THAT YOU WERE ENTITLED TO -- I'M NOT
SAYING THIS THE WAY I WANT TO SAY IT, THERE WAS A REDUCTION
IN HOW MUCH MONEY YOU TOOK HOME, IT WASN'T, BUT YOUR SALARY
WAS STILL SET AT THE SAME AMOUNT, SO IF YOU WERE EARNING 30
THOUSAND DOLLARS, YOU MIGHT HAVE TAKEN HOME LESS FOR ONE
YEAR BUT IT WAS 30 THOUSAND DOLLARS THE NEXT YEAR WITH A
REDUCTION IN PAY, THAT BECOMES PERMANENT UNLESS THE STATE
DOLLARS INCREASE ADEQUATELY TO ALLOW US TO GO BACK AND GIVE
THAT AS A SALARY INCREASE, IT ALSO WOULD AFFECT YOUR
BENEFITS, YOUR BENEFITS WOULD BE THOSE THAT ARE TIED TO PAY
WOULD BE AFFECTED, SO THERE IS A SIGNIFICANT DIFFERENCE TO
THE EMPLOYEE, WHETHER THERE IS A REDUCTION IN PAY OR A
FURLOUGH, BUT AGAIN, THE ISSUE FOR THE INSTITUTION IS
FURLOUGHS GENERATE ONE-TIME SAVINGS AND REDUCTIONS ARE
PERMANENT.
>> OKAY, I THINK I GOT THAT.
I HOPE YOU DID, BRUCE, BUT FURLOUGHS ARE TEMPORARY AND
BENEFITS CONTINUE, BUT IF YOU TOOK A REDUCTION, YOU WOULD
HAVE A PERMANENT REDUCTION IN PAY AND BENEFITS.
JASON WRITES -- NOT JASON, FROM SSU, WHAT ABOUT CHARGING
BENEFITS FROM [INAUDIBLE] BEN, SHOULD WE CHARGE PER UNIT
INSTEAD OF 6 UNITS AND ABOVE OR WHATEVER?
>> WE'VE GIVEN SOME THOUGHT TO THAT AND WE'VE RUN SOME
NUMBERS, WE HAVEN'T MADE A FINAL DECISION OF THAT.
THAT'S ONE OF THOSE THINGS THAT'S STILL ON THE TABLE BUT IT
DOESN'T LOOK AS IF WE CAN DO IT IN A WAY THAT WOULD BE FAIR
TO OUR STUDENTS GIVEN THE COMPOSITION OF OUR STUDENT BODY
AND THE WAY THEY TAKE CLASSES BUT IT IS SOMETHING STILL ON
THE TABLE.
>> STUDENT BEHAVIOR IS CONDITIONED BY PRICE JUST LIKE MINE
IS, IF YOU RAISE THE PRICE OF A PAIR OF SHOES, I MIGHT NOT
BUY THEM, SO THE STUDENT BEHAVIOR ANGLE WEIGHS IN ON A
QUESTION LIKE THIS ONE.
SHAUNA, FROM THE JS GROUP, I RECEIVED FREQUENT
COMMUNICATIONS FROM THE UC OFFICE TO THE PRESIDENT
REGARDING CALIFORNIA BUDGET, ITS IMPACT ON HIGHER
EDUCATION, IS THE CSU ENGAGING IN SIMILAR COMMUNICATION,
ARE PLANS BEING DEVELOPED IN LIGHT OF THE NOVEMBER ELECTION
AND ITS IMPACT ON THE CSU, SO ARE WE GOING TO COMMUNICATE,
EPHRAIM?
>> WELL, WE COMMUNICATE WITH OUR CONSTITUENCIES, GARRETT
ACTUALLY, HIS GROUP IS WORKING ON THIS AND I'M SURE AS THE
ELECTION DRAWS CLOSER, THAT WE'LL BE HAVING MORE
ANNOUNCEMENTS OUT TO OUR CONSTITUENCIES...
>> SO, WE'RE WORKING ON STRATEGIES.
>> AND I HAVE SEEN A NUMBER OF STATEMENTS COMING OUT OF
CAMPUS PRESIDENT'S OFFICE INDICATING WHAT THE IMPLICATIONS
WILL BE, SO I THINK THE CAMPUSES IN ADDITION TO THE WORK
THAT WE'RE DOING CENTRALLY, THE CAMPUSES ARE ENGAGED.
>> RIGHT.
IF WE GO TO SALARY REDUCTION, WHEN IS THE SOONEST THAT THAT
WOULD TAKE PLACE, GAIL?
>> WE DON'T HAVE A SOLUTION ON SALARY REDUCTION, IT'S AN
OPTION TO BE CONSIDERED DEPENDING ON HOW SEVERE OUR BUDGET
SITUATION IS, SO I THINK IT'S PREMATURE TO ANSWER THE
QUESTION ON HOW SOON IT WILL TAKE PLACE.
>> A LITTLE EARLY TO ANSWER THAT ONE, OKAY.
THERE'S ONE FROM ROYSTER, HAS THERE BEEN ANY CSU ACTION FOR
INITIATIVE OF AN OIL SEVERANCE PASS TO HELP SUPPORT HIGHER
EDUCATION?
SOUNDS LIKE A GOOD ONE FOR BEN.
>> THE BOARD I KNOW HAS LOOKED VERY CLOSELY AT THE OIL
SEVERANCE TAX AND SO HAS THE CHANCELLOR AND CANDIDLY, THE
LEGISLATION THAT'S COME FORWARD HAS BEEN A BIT FLAWED.
WE DON'T WANT TO GET CAUGHT IN A BUNCH OF BUREAUCRATIC
BOARDS AND PANELS AND WITHOUT CLEAR INDICATION OF HOW THE
MONIES WOULD BE USED.
I THINK THAT IN CONCEPT, ANY TYPE OF REVENUE THAT COMES IN
[INAUDIBLE] WE HAVE TO MAKE SURE THAT THE MECHANISM IS ONE
THAT IS REALLY GOING TO WORK.
>> WHEN WAS THAT NOT TRUE, SJSU, QUESTION FOR BEN QUILLIAN,
THAT LEAVES ME IN AN EASY PLACE TO ASK WHO'S GOING TO
ANSWER.
IF A ONE-TIME POTENTIAL TRIGGER CUT OF 250 MILLION IS A
MAJOR CUT, SOUNDS BIG TO ME, PLEASE EXPLAIN WHY FIVE YEARS
OF RECURRING 380 MILLION DOLLAR SURPLUSES ARE NOT
CONSIDERED TO BE SIGNIFICANT WITH RESPECT TO CSU?
>> THEY ARE SIGNIFICANT NOW.
I DIDN'T MEAN TO SUGGEST THAT 380 MILLION DOLLARS IS NOT
SIGNIFICANT, BUT WE HAVE TO HAVE FUNDS AVAILABLE FOR DEBT
SERVICE, FOR BENEFIT LIABILITIES, FOR THE SELF-SUPPORT FUND
AND CASH RESERVES AND RISK MANAGEMENT, SO WHEN YOU LOOK AT
THOSE TYPES OF NEEDS THAT ARE IN OUR RESERVES, THE FUNDS
THAT ARE LEFT ARE REALLY NOT THAT SIGNIFICANT.
>> SO, IT'S A MATTER OF MEETING THEM FOR PRUDENT MANAGEMENT
AND ACTUAL LIABILITIES ON THE TABLE TO IDENTIFY.
>> THAT'S CORRECT.
>> KEN WRITES, WHY ARE WE SPENDING MONEY ON CAL STATE
ONLINE RECEPTIONS AT THE C-SLOAN CONFERENCES, WHY ARE WE
SPENDING MONEY ON CAL STATE ONLINE AT ALL, HOW DOES THAT
HELP US OFFER THE CLASSES OUR STUDENTS NEED?
EPHRAIM?
>> I'M NOT SIMILAR WITH THE C-SLOAN CONFERENCE, BUT THE
INITIATIVE FOR CAL STATE ONLINE IS THAT WE FEEL WE HAVE AN
OPPORTUNITY TO PROVIDE ACCESS TO CALIFORNIA RESIDENTS THAT
WE ARE NOT ABLE TO DO, AS YOU MIGHT BE AWARE, WE'RE TURNING
DOWN 22 TO 28 THOUSAND CSU ELIGIBLE STUDENTS EACH YEAR
BECAUSE WE DO NOT HAVE THE FINANCIAL RESOURCES TO ACCEPT
THESE STUDENTS AND WE'RE LOOKING AT ALL AREAS OF TRYING TO
TRIM THE BUDGET ON EXPENSES.
>> AND BEN HAS A COMMENT.
>> THESE KINDS OF CONFERENCES ARE OPPORTUNITIES TO GET THE
WORD OUT ABOUT CAL STATE ONLINE AND THEY ARE GREAT VEHICLES
FOR PUTTING OUR NAME OUT THERE WHICH IS IMPORTANT, SO WE'RE
VIEWING THESE EXPENDITURES PRUDENTLY BUT WE'RE VIEWING THEM
AS AN OPPORTUNITY TO INVEST THE NOTION THAT WE WILL BENEFIT
LONG-RUN FROM THESE THINGS.
>> OKAY.
SHAUNA WRITES, WE CONTINUE TO HEAR THAT EVERYTHING'S ON THE
TABLE.
AS THE FINANCIAL PICTURE EVOLVES, HOW WILL DECISIONS BE
MADE, FOR EXAMPLE, WHAT WILL BE THE BASIS FOR IMPLEMENTING
FURLOUGH VERSUS MODIFYING FINANCIAL AID, OR INCREASING
TUITION VERSUS LAYOFFS OR PROGRAM CLOSURES, HOW DOES CSU
DECIDE THESE THINGS, BEN?
>> A LOT OF IT WILL BE WITH THE BOARD, AND WHEN YOU GET
DOWN TO FURLOUGHS, YOU'RE TALKING ABOUT THE IMPORTANCE OF
BRIDGING SOME OF THIS PROBLEM THAT WE HAVE, SO I WOULD
IMAGINE THAT THERE WILL BE A COMBINATION OF THINGS AND THE
ACTUAL DECISION-MAKING WILL TAKE PLACE BASED UPON THE
DECISIONS.
>> SO, THE SHORT ANSWER TO THE QUESTION THERE IS IT'S UP TO
THE BOARD BUT OF COURSE THE SENIOR LEADERSHIP HERE AND THE
PRESIDENTS WOULD HAVE ADVICE FOR THE BOARD.
>> ABSOLUTELY.
>> HERE'S ONE THAT SAYS PHYSICAL-UP TO GAIL BROOKS ANSWER
ABOUT FURLOUGHS, READY GAIL, IS CSU CONSIDERING PERMANENT
PAY CUTS FOR ANY EMPLOYEES?
>> I THINK THAT'S A QUESTION THAT I'VE ANSWERED A COUPLE OF
TIMES THAT THERE HAVE BEEN NO DECISIONS THAT HAVE BEEN
MADE, THAT THERE'S NO -- THAT THIS IS AN ISSUE THAT WILL
HAVE TO BE DETERMINED BY THE BOARD AND THAT IT WILL BE
SUBJECT TO COLLECTIVE BARGAINING AS AIMEE WELL KNOWS, AIMEE
IS ONE OF CSA'S EMPLOYEES, SO I KNOW SHE'S WELL AWARE OF
THE NEED TO NEGOTIATE IF SUCH A DECISION WOULD BE MADE.
>> SO, WE HAVE TO NEGOTIATE.
THERE'S ONE BACK TO BEN, DR. QUILLIAN NOTED THAT 380 IS NOT
THAT MUCH WHEN YOU CONSIDER CSU'S SIZE, LOOKING AT THE
CURRENT RATIO, CSU'S CURRENT RATIO IS 2.5, COMPARE TO THE
UNIVERSITY OF PHOENIX, IT IS 1.72 APPLE [INAUDIBLE] THAT
THE U.S. GOVERNMENT IS 1.58.
IT SEEMS LIKE WE'RE IN STRONG FINANCIAL [INAUDIBLE]
COMPARATIVELY, WHY THE DISASTER MODE RESPONSES?
>> I DON'T KNOW HOW ANYBODY CAN SAY THE NOTION OF A BILLION
DOLLARS IS NOT GOING TO PUT US IN A DISASTER MODE, BUT I
THINK IF MEMORY SERVES [INAUDIBLE].
>> IT'S A LITTLE DIFFERENT FROM OUR TOTAL RATIO, I'M NOT
PREPARED TO ANSWER THAT BUT I'LL MAKE SURE WE GET AN
ANSWER.
>> REMINDER TO EVERYONE HERE, WE'RE GOING TO HAVE THE
QUESTIONS AND ANSWERS POSTED, SO WE CAN ANTICIPATE THAT.
FROM ELIZABETH, SUGGESTION, WE NEED TO ENGAGE INDUSTRY AND
INDUSTRY LEADERS, ESPECIALLY THOSE THAT BENEFIT FROM THE
WORK FORCE TRAINED BY CSU TO INVEST IN THE CSU SYSTEM AT
HIGHER LEVELS.
SOUNDS GOOD TO ME.
EPHRAIM, DO YOU THINK WE SHOULD GET SOME MONEY FROM THOSE
FOLKS?
>> IT'S GOOD TO GET MONEY FROM ANY FOLKS, BUT WE DO HAVE
INDUSTRY GROUPS THAT WE MEET WITH, FOR EXAMPLE, WE RECENTLY
MET WITH THE HOSPITALITY INDUSTRY, THE CHANCELLOR, WE MEET
WITH THE ENTERTAINMENT INDUSTRY, SO WE DO MEET WITH
INDUSTRY LEADERS, ESPECIALLY THOSE THAT HIRE MANY OF OUR
GRADUATES AND THE HOPE IS THAT THEY WILL INVEST IN THE CSU
FINANCIALLY AS WELL AS BY HIRING OUR STUDENTS AND WILL
COMMUNICATE TO SACRAMENTO THE IMPORTANCE OF THE CSU TO THE
STATE.
>> IT'S GOOD TO HAVE FRIENDS IN INDUSTRY AND INDUSTRY
LEADERS.
>> YES.
>> THE UC HAS INITIATED INCREASING NON-RESIDENT
ENROLLMENTS, WHY NOT DO THE SAME AT THE CSU COLLECTIVELY.
EPHRAIM?
>> THE CHANCELLOR TOLD THE PRESIDENTS 12 OR 18 MONTHS AGO
THAT THEY COULD RECRUIT ADDITIONAL STUDENTS AND SOME ARE
TRYING TO RECRUIT NON-RESIDENT STUDENTS, BUT AS YOU MIGHT
THINK ABOUT, JUST ABOUT ALL SCHOOLS IN THE UNITED STATES
ARE TRYING TO DO THE SAME.
>> GOOD THING THERE ARE A LOT OF PEOPLE IN OTHER COUNTRIES.
>> YES.
>> AND BEN, PLEASE.
>> IN THE ROLE OF THE CFO, IT'S ONE THAT I WOULD LOVE TO
SEE, INCREASE THE NUMBER OF INTERNATIONAL AMOUNT OF OUT OF
STATE STUDENTS BUT OUR FIRST OBLIGATION IS TO THE CITIZENS
OF CALIFORNIA.
>> BEING CAREFUL, SOUNDS GOOD.
>> ELIZABETH WRITES, WHAT ARE THE KEY INDICATORS USED IN
THE COST BENEFIT ANALYSIS?
I'M SEARCHING FOR THE REFERENCE.
WE'RE A LITTLE LACKING ON THE PREDICATE HERE.
OKAY, ELIZABETH, SORRY ABOUT THAT, I'M SURE IT'S OUR FAULT,
I'M GOING TO PASS YOU FOR NOW.
FROM SSU, IS THE CSU CONSIDERING OFFERING ONLINE MAJORS TO
MEET CALIFORNIA?
>> OUR NUMBER OF TOTALLY ONLINE PROGRAM GROWS EACH YEAR.
WE MUST NOW BE OVER 70 FULL ONLINE PROGRAMS, ABOUT TWOTHIRDS ARE THROUGH EXTENDED EDUCATION AND ABOUT ONE-THIRD
ARE ALL FROM THE STATE SIDE.
>> ARE WE GOING TO GROW THAT SECTOR OF WHAT WE DO?
>> IT'S BEEN GROWING EVERY YEAR?
>> SO, THE SHORT ANSWER IS THAT SSU IS, YES.
>> A MEMBER OF THE SSUEB GROUP ASKS THE FOLLOWING, THE CSU
RESERVES ARE UNTOUCHABLE, WHY WOULD SURF RESERVES BE ON THE
TABLE, BEN?
>> WELL, THE SERF RESERVES AS I MENTIONED ARE TO A LARGE
EXTENT UNDER CURRENT LEGISLATION UNTOUCHABLE, BUT THERE ARE
A NUMBER OF PROJECTS THAT WE FEEL COULD BE DONE BY THE SERF
FUND THAT WOULD BENEFIT SERF, THE CONTINUING EDUCATION
PROGRAM AS WELL AS THE UNIVERSITY BUT WE CAN'T GO IN AND
SWEEP THOSE FUNDS FROM THE OPERATION SIDE, BUT WE CAN WORK
WITH THE CONTINUING ED PEOPLE TO SEE WHAT KIND OF PROJECT
CAN BE DONE TO HELP THEM.
>> SO, SOME MUTUAL BENEFITS THINGS ARE CERTAINLY UNDER
DISCUSSIONS IN
>> HERE'S ONE, LET'S SEE, WITH TALK OF PAY CUTS AND COST OF
BENEFIT INCREASES, RESPONSES HAVE BEEN THAT THESE ISSUES
HAVE TO BE BARGAINED.
WHAT'S THE EFFECT ON MPP'S AND CONFIDENTIAL EMPLOYEES THAT
ARE NOT REPRESENTED, CUTS AND COST OF BENEFIT INCREASES FOR
MPP'S, GAIL?
>> YES.
THE HEALTH CARE PREMIUM SHARE OF THE HEALTH CARE AMOUNT IS
SUBJECT TO LEGISLATION AND THAT'S FOR ALL EMPLOYEES, MPP,
REPRESENTED AND NON-REPRESENTED ALIKE, WE HAVE TO CHANGE
LEDGE LACING.
FOR PAY, MPP'S, WE DON'T HAVE TO BARGAIN THAT, ALTHOUGH I
THINK AS A SYSTEM, WE WOULD WANT TO MAKE SURE THAT WE WOULD
TREAT OUR EMPLOYEES TO THE EXTENT THAT IT'S POSSIBLE THE
SAME, IF THERE WERE GOING TO BE PAY CUTS, WE WANT TO LOOK
AT ALL GROUPS AND NOT JUST ONE GROUP OF EMPLOYEES.
>> OKAY.
AND HERE'S ONE, WHEN A CAMPUS GOES OVER THEIR ENROLLMENT
PROJECTION, THE CHANCELLOR'S OFFICE CHARGES THE CAMPUS WITH
A MILLION DOLLAR PLUS PENALTY, WHERE DOES THAT MONEY GO,
WHAT IS IT USED FOR AND WHY IS THIS NECESSARY?
>> WELL, IT DEPENDS ON THE SIZE OF THE OVERENROLLMENT, IT
IS NOT ALWAYS A MILLION DOLLARS, SOMETIMES IT EXCEEDS A
MILLION DOLLARS.
MONIES ARE BROUGHT INTO THE CHANCELLOR'S OFFICE AND THEN WE
REDISTRIBUTE THEM TO CAMPUSES THROUGHOUT THE SYSTEM
INCLUDING THE CAMPUS THAT MAY HAVE EXPERIENCED PENALTY, SO
IT'S A MATTER OF USING THOSE FUNDS FOR THE SPECIAL NEEDS OF
OUR CAMPUSES.
THEY'RE NOT HELD IN THE CHANCELLOR FUND.
>> IS IT FAIR TO SAY THAT THIS WHOLE PROCESS IS AN
INCENTIVE TO ALL CAMPUSES TO BE CAREFUL ABOUT THEIR
ENROLLMENTS?
>> MOST DEFINITELY, THE SYSTEM CAN BE HURT SEVERELY BY
OVERENROLLMENT.
[INAUDIBLE].
>> AND HERE'S ONE, ARE THERE ANY STRATEGIES TO INVOLVE THE
EXTERNAL COMMUNITY TO CREATE SOME TYPE OF REVENUE SUCH AS
PLACING STUDENTS FROM THE CSU IN TOP FIRMS, FIRMS THAT PAY
THE CSU A FEE FOR PLACEMENT.
THAT'S AO GOOD IDEA.
COULD WE MAKE THAT WORK, EPHRAIM?
>> I DOUBT IT.
IT'S TOUGH COMPETITION FOR STUDENTS GRADUATING IN THE LAST
COUPLE OF YEARS BECAUSE THERE'S A RECESSION, TO FIND JOBS,
WE ASK STUDENTS TO RECRUIT TO THE STUDENTS IN OUR CAMPUSES
BUT TO CHARGE THEM A FEE TO RECRUIT OUR SERVICES MAY HAVE A
NEGATIVE IMPACT ON THE PLACEMENT OF OUR OPPORTUNITIES OF
OUR GRADUATES.
>> OKAY.
HERE'S ANOTHER, IS THERE A PLAN TO COMMUNICATE TO VOTERS
THE IMPACTS OF FAILURES OF THE TAX MEASURES OF THE 250
MILLION DOLLAR CUT, SOUNDING FAMILIAR, I THINK THE ANSWER'S
YES?
>> YES.
>> AND ANYTHING TO ADD?
ALRIGHT.
AND MICHELLE HAD WRITTEN YES, WAY TO GO, MICHELLE.
HERE’S ONE FROM SSU, HOW MUCH DO WE SPEND ANNUALLY ON CSU
ADMINISTRATIVE TRAVEL AND COULD THIS BE REDUCED BY HOLDING
MOST MEETINGS BY WEBINAR?
EPHRAIM, YOU SAID YOU WERE HOLDING SOME MEETINGS BY
WEBINAR?
>> WE ARE, TRAVEL IS AN EXPENSE, I DON'T KNOW HOW MUCH IT
IS TO CSU, I DON'T KNOW, I KNOW THAT WE BROUGHT IT DOWN
QUITE A BIT BUT WE ARE ASKING QUESTIONS OF OUR ACADEMIC
COUNCIL OR OTHER GROUPS, CAN THEY HAVE SOME OF THEIR
MEETINGS ON WEBINAR OR CONFERENCE CALLS SO WE CAN HOLD ON
OUR TRAVELS SO THIS IS BEING DISCUSSED AND IT'S BEING
IMPLEMENTED AND I BELIEVE BEN AND HIS GROUP IS DOING THE
SAME.
>> OVER TO YOU BEN, ANYTHING ON TRAVEL?
>> THAT'S TRUE.
I THINK IT'S SAFE TO SAY THAT NOT ONLY THE CENTRAL
ADMINISTRATIVE MEETING HAS BEEN REVIEWED, BUT WE
[INAUDIBLE] VERY SIGNIFICANTLY, SO THE TECHNOLOGIES TO
ENABLE US TO REDUCE TRAVEL.
>> SO, USING TECHNOLOGY IS A GOOD IDEA, BUT SOME TRAVELS
FOR FACULTY TO MEET COLLEAGUES, IT SEEMS PRETTY ESSENTIAL
TO KEY, I THOUGHT I WOULD TOSS THAT IN.
HERE’S ONE FROM SSU, YOU SEE TARGETED REDUCTION OF MIDDLE
LEVEL MANAGEMENT, HAS THERE BEEN A SYSTEMWIDE WAY TO
[INAUDIBLE] AND IS THERE OVERSIGHT OF CSU RECLASSIFIED
MANAGEMENT POSITIONS?
GAIL, ARE WE TRYING TO REDUCE MIDDLE MANAGEMENT AND ARE WE
OVERSEEING RECLASSIFIED POSITIONS?
>> HOW A CAMPUS MANAGES ITS EMPLOYEES IS LEFT TO THE
CAMPUSES SO THE SMART ANSWER IS, NO, THERE IS NO SYSTEMWIDE
EFFORT, HOWEVER, WHEN THERE ARE RECLASSIFICATIONS TO VICEPRESIDENTS, THOSE HAVE TO BE REVIEWED AND APPROVED AT THE
CHANCELLOR'S OFFICE, SO WE DO LET THE CAMPUSES MANAGE TO
THEIR OWN NEEDS, AND I KNOW THAT MANY CAMPUSES HAVE
CONSOLIDATED POSITIONS AND REDUCED POSITIONS BUT IT'S NOT A
CENTRALLY MANDATED OR CONTROLLED INITIATIVE.
>> OKAY.
GAIL, STAND BY, WE'RE GOING TO GET ANOTHER ONE FOR YOU BUT
I'M GOING TO LET OUR WEB MISTRESS OR HOST, JENNIFER, I
THINK SHE HAS A COMMENT TO OFFER.
>> YEAH, THANK YOU, KEITH.
I WANTED TO GO AHEAD AND MUTE THE LINES ONE MORE TIME, WE
HEAR A FEW PEOPLE TYPING, I'LL GO AHEAD AND DO THAT, SO
PLEASE STAND BY.
OKAY, PERFECT.
THANK YOU, DR. BOYUM, AND I WILL SEND IT BACK TO YOU.
(NO AUDIO AVAILABLE).
>> I WANT TO TELL YOU THAT FAQ'S FROM PREVIOUS, SYSTEMWIDE
BUDGET ADVISORY COMMITTEE ACTIVITIES, AND FROM TODAY AND
THE STRATEGIES MAILBOX WILL BE POSTED SHORTLY, WE'RE GOING
TO HAVE UP OVER 200 QUESTIONS THAT HAVE BEEN CONSOLIDATED
BY TOPIC AND ANSWERED WITH SOME THOUGHTFUL CONSIDERATION
GIVEN TO THEM, A LITTLE BIT OF FACTUAL DETAIL COULD BE
ADDED TOO ON THAT.
SO, GAIL, I PROMISED YOU ANOTHER ONE AND HERE IT IS, WHAT
IMPACT DID PREVIOUS FURLOUGHS HAVE, WHAT ABOUT SHORTER WORK
WEEK, CLOSE DOWN ON FRIDAY OR WORK FROM HOME ON FRIDAYS,
WHAT CAN WE DO ALONG THOSE LINES?
>> WE'VE ANSWERED SOME OF THAT BUT I CAN EXPAND A LITTLE
BIT ON THE IMPACT OF THE FURLOUGHS.
FROM THE CAMPUS PERSPECTIVE, IT DID ALLOW CAMPUSES TO
BRIDGE SOME OF THE FINANCIAL IMPACTS OF THE BUDGET CUTS SO
THAT THEY WOULD REALLY REDUCE THE NUMBER OF INDIVIDUALS WHO
MIGHT HAVE TO BE LAID OFF, SO WE FELT FROM THAT PERSPECTIVE
THAT FURLOUGHS WERE VERY WORTHWHILE, ON THE OTHER HAND, THE
WAY THE FURLOUGHS WERE CONSTRUCTED AND OF COURSE I WAS PART
OF THAT AND WE'VE LEARNED A LOT SINCE THEN, IT REALLY HAD A
VERY BIG IMPACT ON PRODUCTIVITY, IT WAS FRUSTRATING FOR A
LOT OF THE CAMPUSES TO BE ABLE TO GET THEIR WORK DONE WITH
SOME PEOPLE HERE ON VARIOUS DAYS OR NOT ON OTHER DAYS, WE
KNOW IT WAS DIFFICULT THERE THE FACULTY TO BE ABLE TO
MANAGE THEIR CLASSES SO IT WOULD BE SOMETHING THAT WE WOULD
REALLY HAVE TO LOOK AT VERY SERIOUSLY, IF THAT WOULD BE
BACK ON THE TABLE.
MANY OF THE ISSUES THAT CAME UP IN DESIGNING A FURLOUGH
PROGRAM WERE CENTERED AROUND WAGE AND HOUR LAWS AND WHAT WE
COULD LEGALLY DO, SO I THINK INDEED THAT THE IMPACT WAS A
VERY MIXED IMPACT, IT HAD SOME BENEFITS, CERTAINLY WE HOPED
IT WOULD HELP TO PRESERVE SOME POSITIONS BUT IT WAS AT A
COST, COST OF PRODUCTIVITY, IT WAS VERY CONFUSING FOR
STUDENTS, AS FAR AS CLOSING DOWN ON A FRIDAY AND WORKING
HOME ON A FRIDAY, I THINK THOSE WOULD RAISE SOME OF THE
SAME ISSUES IN TERMS OF THE IMPACT OF SALARY AND IMPACT ON
WORKLOAD, SO IT WOULD BE SOMETHING THAT WOULD HAVE TO BE
LOOKED AT VERY CAREFULLY.
I'M NOT SO SURE THAT WE HAVE A GOOD ANSWER FOR WHETHER OR
NOT WE THINK THAT WOULD BE IDEAL MOVING FORWARD.
>> OUR WEB MISTRESS HAS A COMMENT AGAIN.
>> PLEASE STAND BY, WE'RE GOING TO MUTE ONE MORE TIME AND
IF YOU COULD PLEASE, PARTICIPANTS, PRESS THE MUTE ON YOUR
PHONE, THAT WOULD HELP KEEP THE LINES CLEAR.
PLEASE STAND BY.
>> AND BEN QUILLIAN, YOU WERE GOING TO OFFER A FEW WORDS ON
THIS SAME QUESTION.
>> GAIL IS ABSOLUTELY CORRECT, THERE ARE PROS AND CONS TO
THE FURLOUGHS BUT THE LAST FURLOUGHS DID REDUCE PERSONNEL
COSTS BY 270 MILLION DOLLARS, SO WE MAY NEED OTHER THINGS
THAT WON'T WORK OUT, WE MAY NEED TO RETURN TO FURLOUGH AS A
SHORT-TERM MEASURE.
>> SHORT-TERM MEASURE, OKAY, AND LET'S SEE HERE.
THIS IS FROM FRESNO STATE, IT'S BEEN REPORTED THAT AROUND
10 MILLION DOLLARS WAS USED TO RENOVATE CSU PRESIDENTIAL
HOUSING, CAN [INAUDIBLE] TO BE IMPROVED ON CATERING
SERVICES TO HELP WITH THE EXPENSES, EXTERN SHIPS, EPHRAIM?
>> WE HAVE OUR INTERNSHIPS BUT I THINK THIS IS A LITTLE
DIFFERENT.
I REALLY DON'T KNOW ON THE CAMPUSES THAT HAVE PROGRAMS,
LANDSCAPING AND OTHER COMMENTS MENTIONED HERE IF THEY'RE
EMPLOYED ON CAMPUS.
>> BEN, ON THESE COSTS FOR HOUSING AND USING STUDENTS TO
DEFRAY SOME OF THEM?
>> THERE ARE TWO THINGS, ONE IS THAT MANY OF THESE HOUSES
WERE DONATED, SO THEY WERE DONATED WITH THE REQUIREMENT FOR
THE PRESIDENT TO BE LIVING IN THOSE HOMES, AND OVER A
PERIOD OF YEARS, GIVEN THE SIZE OF THESE HOMES AND THE
VALUE OF THESE HOMES, ARRANGEMENTS HAVE NOT BEEN OUT OF
LINE WITH THE NORMAL GUIDELINE, AS FAR AS USING STUDENTS TO
PERFORM THE WORK THAT IS NORMALLY DONE BY UNION EMPLOYEES
IN THE SYSTEM, THAT'S SOMETHING THAT WE'D HAVE TO BE VERY
CAREFUL WITH, I WOULD HAVE TO DEFER TO GAIL ON HOW THAT
WOULD BE DONE, BUT WE HAVE TO MAKE SURE WE'RE NOT TAKING
WORK AWAY FROM YOUR UNIONIZED EMPLOYEES.
>> ANYTHING TO ADD ON THAT, GAIL?
>> I DON'T THINK SO AT THIS TIME, THANK YOU.
>> FAIR ENOUGH.
AND HERE'S ONE, YOU SAY MANY PROPOSALS ARE ON THE TABLE,
WHAT'S THE TIMELINE ON MOVING TABLES TO IMPLEMENTATION,
WHEN WILL DECISIONS BE MADE?
>> WELL A LOT OF DECISIONS OF BEING MADE NOW, I THINK AT
THE UPCOMING BOARD MEETING, WE WILL [INAUDIBLE] AND AFTER
THE BALLOT IS REVEALED, WE WILL MAKE MORE RECOMMENDATIONS.
>> SO, SOME COMING UP SOON AND OTHERS SURE TO FOLLOW
RELATIVE TO THE NOVEMBER ELECTION.
AND HERE'S ONE FROM DOUGLAS, YOU SAY THAT THE COST OF MONEY
THAT YOU SPEND TO REMODEL THE EXECUTIVE HOMES CANNOT BE
USED FOR INSTRUCTION OR TO SUPPORT THE UNIVERSITY'S CORE
MISSION, WHY ARE YOU RAISING MONEY THAT CANNOT BE USED FOR
INSTRUCTION?
BEN, COULD WE REDIRECT THE MONEY SPENT ON PRESIDENT'S HOMES
TO INSTRUCTION?
>> I GUESS THAT DEPENDS UPON WHAT KIND OF MONEY IS BEING
USED ON THE PRESIDENT'S HOME.
I DON'T THINK I'VE EVER SAID THAT NONE OF THE MONEY COULD
BE USED FOR OPERATIONS BUT WE HAVE TO MAINTAIN THE ASSETS
OF THE UNIVERSITY AND THE PRESIDENT'S HOMES AND IT'S BEEN
DONATED AND USED BY THE PRESIDENTS IS PART OF OUR ASSETS,
IT WOULD NOT BE WISE TO THOSE HOMES TO FALL FOR REPAIR, AND
IF YOU'RE NOT KEEPING UP ON THE MAINTENANCE, YOU'RE ASKING
FOR TROUBLE.
>> AND HERE'S ONE, LET'S SEE, IN THE ABSENCE OF INCREASED
FUNDING AND LIKELY TUITION INCREASES, WHAT CAN WE, THE CSU
ENCOURAGE INDUSTRIES TO ENCOURAGE INDUSTRY [INAUDIBLE] FOR
STUDENTS THAT MAY BECOME FUTURE EMPLOYEES.
HERE, WE'RE TRAINING THE FUTURE WORK FORCE IS NOT THE TIME
FOR EMPLOYERS TO GET A DIRECT [INAUDIBLE] ON THAT.
>> ESPECIALLY AT THE DOCTORATE LEVEL, WE WILL HELP THEM
DEFRAY THE COST OR IN SOME CASES TO HELP THEM PAY FOR THEIR
EDUCATION, SO THIS IS SOMETHING THAT THE CAMPUSES AND
EVERYONE, WE SHOULD BE ACTIVE IN PROMOTING TO CORPORATIONS
IN THE STATE OF CALIFORNIA TO SPONSOR THEIR EMPLOYEES.
>> AND TO THE CAL POLY OFFERING OF THIS IDEA, A GOOD ONE, I
HOPE WE CAN GET THERE.
HERE'S ANOTHER ONE ON FURLOUGHS, PLEASE EXPLAIN WHY
FURLOUGHS ARE CONSIDERED A SHORT-TERM SOLUTION WHILE PAY
CUTS ARE PERMANENT.
WE'LL BE SEEKING TO EXPLAIN THAT BUT THE QUESTION GOES ON,
IT SEEMS THAT IF FURLOUGHS SAVE THE UNIVERSITY 270 MILLION
DOLLARS IN ONE YEAR, YOU COULD KEEP THEM GOING UNTIL THE
STATE FINANCIAL SITUATION GETS BETTER.
ISN'T THAT THE SAME THING THAT WOULD HAPPEN IF YOU CUT PAY
AND BROUGHT IT BACK UP WHEN POSSIBLE.
PERSONALLY, THE WRITER SAYS, I WOULD RATHER HAVE A DAY OFF
FROM MY PAY CUT THAN SIMPLY TAKE A CUT AFTER HAVING NO
INCREASES AFTER FIVE YEARS.
OKAY, COULD WE ASSIGN FURLOUGHS TO FOLKS AND KEEP THE
FURLOUGHS GOING IN A SECOND OR A THIRD YEAR, WHATEVER IT
TOOK, UNTIL THE STATE FINANCIAL SITUATION IMPROVED AND THE
NUMBER NOTES THE ADVANTAGE OF FURLOUGHS GET A DAY OFF.
>> I CAN ANSWER ONE PIECE OF THAT AND I'M GOING TO DEFER
THIS TO MY COLLEAGUES BECAUSE THIS IS A FINANCIAL QUESTION,
BUT THE ISSUE OF KEEPING FURLOUGHS GOING, ONE OF THE ISSUES
IS WE HAVE TO GET AGREEMENT ON CALPERS TO MAINTAIN THE
BENEFIT AT THE SAME LEVEL, THE RETIREMENT BENEFIT AND THE
MEDICAL AT THE SAME LEVEL THEY ARE TODAY, SO IT WOULD BE
DEPENDENT ON GETTING THAT KIND OF AGREEMENT.
I UNDERSTAND THE BENEFIT TO THE INDIVIDUAL OF FURLOUGHS AND
WE WILL TAKE THAT INTO CONSIDERATION WHEN WE TALK ABOUT IT,
BUT WHAT THAT DOES IN TERMS OF THE FINANCIAL IMPACT, MAYBE
BEN WILL BE MORE QUALIFIED TO SPEAK OB.
>> DR. QUILLIAN?
>> WE NEED TO MAKE BASE REDUCTIONS, NOT JUST TEMPORARY
REDUCTIONS, THE OTHER PART OF THIS, THE PRODUCTIVITY THAT
GOES WITH FURLOUGHS IS SIGNIFICANT.
WE DID EXPERIENCE NEGATIVE CONSEQUENCES RELATED TO THE
FURLOUGHS, SO I WOULD HOPE THAT WE WOULD NOT HAVE TO USE
FURLOUGHS ON AN ONGOING BASIS AND IT WOULD BE SIDE STEPPING
THE REAL PROBLEM OF MAKING BASE REDUCTIONS.
>> OKAY.
WE'VE GOT ONE FROM I THINK IT'S EAST BAY.
WHY IS THE CSU PROVIDING REMEDIAL COURSES, WHY NOT HONOR
THE THREE TIER MASTER PLAN STRUCTURE [INAUDIBLE] AND I
GUESS THE NOTION WOULD BE TO ASK PROBABLY -- EPHRAIM, WHY
ARE WE DOING THAT?
>> IN OUR ADMISSION GUIDELINES, WE ADMIT STUDENTS IN THE
TOP [INAUDIBLE] OF THE GRADUATING CLASS EVEN THOUGH WE USE
THE INDEX 2900, 2012, IT HAPPENS A NUMBER OF THESE STUDENTS
COME IN NEEDING REMEDIATION, SO WE OFFER REMEDIATION TO
THESE STUDENTS.
THE UC HAVE STUDENTS ATTENDING THAT NEED REMEDIATION AND
OBVIOUSLY THE COMMUNITY COLLEGES HAVE IT.
THIS ISSUE IS BEING DISCUSSED NATIONALLY NOW ON DIFFERENT
TYPES OF REMEDIATION, WE'RE ALL LOOKING AT EARLY START OR
IMPLEMENTING EARLY START, MANY OF OUR CAMPUSES ARE MOVING
STRETCH COURSES AND WE'RE WORKING ON STAT WAY PROGRAM WITH
STATISTICS FOUNDATIONS SO QUITE A BIT OF THOUGHT IS GIVEN
TO REMEDIATION AND HOW WE MIGHT IMPROVE IT FOR THE
BETTERMENT OF THE STUDENTS.
>> GOOD.
SO, TO THE GROUP, WE HAVE ABOUT FIVE MINUTES LEFT AND I'M
STILL TAKING QUESTIONS STRICTLY IN ORDER.
HERE'S ONE, WILL THE NEW CHANCELLOR'S SALARY BE INCREASED
OR WILL IT REMAIN THE SAME?
BEN, ARE YOU GOING TO MAKE THAT DETERMINATION?
WHAT'S HAPPENING?
>> I HAVE NO IDEA ON THE ANSWER TO THAT QUESTION.
THAT'S STRICTLY A BOARD MATTER.
>> THAT'S A BOARD ISSUE.
WHEN WILL THE PROMISED FAQ'S BE POSTED, HARDWORKING STAFF
SAY THIS WEEK, WE HOPE THEY'LL DO IT AS SOON AS THEY CAN.
HERE'S ONE FROM EAST BAY, IF THE PRESIDENTS ARE FISCALLY
RESPONSIBLE FOR THE AUXILIARIES, WHY DOESN'T OUR BUDGET
PROBLEM AFFECT THE AUXILIARY.
THE BUDGET AFFECTS THE CSU.
>> IT'S A MATTER OF THE SEPARATION LEGALLY OF THE
AUXILIARY, THEY ARE ACCOUNTABLE TOO THEIR OWN SEPARATE
BOARDS, THERE ARE RESTRICTIONS ON THE USE OF HOW WE USE
THAT MONEY, THEY ARE SEPARATE.
>> IT'S A MATTER OF LEGAL SEPARATION AND DIFFERENCE.
HERE'S ONE, EPHRAIM, PLEASE?
>> SOME DO AFFECT AUXILIARIES, IF WE LOWER ENROLLMENTS,
FEWER TEXTBOOKS AND FEWER STUDENTS EATING IN THE CAFETERIA,
WE'RE ALL ONE FAMILY HERE.
WHAT HAPPENS ON THE STATE SIDE [INAUDIBLE] BUT WE DO IN A
WAY AFFECT THE AUXILIARIES.
>> HERE'S A QUESTION.
I'LL READ IT AFTER I READ THE FOLLOWING, PLEASE CHECK TO
MAKE SURE YOUR PHONE IS MUTED AND THAT JUST HELPS US A LOT.
THE QUESTION IS, WE HAVE HEARD A NUMBER OF SUGGESTIONS FROM
TODAY'S AUDIENCE TO REDUCE COST AND INCREASE REVENUE BUT
YOU'VE BEEN SAYING THEY DON'T REACH OUR TARGET.
DON'T YOU THINK WE NEED TO MAKE MANY SMALL CHANGES TO REACH
OUR GOAL?
BEN, CAN WE DO IT WITH MANY SMALL CHANGES?
>> WE CAN DO IT WITH MANY SMALL CHANGES, BUT THAT IS NOT TO
SUGGEST WE MAKE MANY SMALL CHANGES, YOU'RE GOING TO GET A
LOT OF SMALL EFFORTS BUT I THINK THE POINT IS WE DON'T WANT
TO LEAD THE BOARD TO BELIEVE THAT SOME OF THESE SMALL
ISSUES ARE GOING TO GET US TO 250 MILLION DOLLARS OR
SIGNIFICANTLY REDUCE THE STRUCTURAL DEFICIT IN THE BUDGET,
BUT CLEARLY IT IS IMPORTANT TO DO AS MANY OF THESE COST
SAVING MEASURES AS POSSIBLE.
>> EVERYBODY AGREES THAT WE OUGHT TO SAVE MONEY WHERE WE
CAN.
IF WE RELY ON STATE FUNDING, THE QUESTION GOES, UP TO ABOUT
50%, WHAT IDEAS ARE BEING CONSIDERED TO ATTRACT MORE OUT OF
STATE AND INTERNATIONAL STUDENTS TO OFFSET OUR DEFICITS.
WE'VE ADDRESSED THIS A LITTLE BIT, AND THE CAMPUSES ARE
TAKING STEPS TO DO THIS?
IS THERE ANYTHING HAPPENING STATEWIDE FOR THIS.
>> JUST TO ENCOURAGE NON-RESIDENT STUDENTS.
>> WE REMIND THE PRESIDENTS AND ADVISE THE PRESIDENTS THAT
IT'S A GOOD IDEA.
BEN?
>> YEAH, JUST ONE OTHER COMMENT, PARTICULARLY TO
INTERNATIONAL STUDENTS, THE CAMPUSES NEED A CERTAIN NUMBER
OF INFRASTRUCTURE FOR THOSE STUDENTS TO MAKE SURE THEY
RECEIVE THE PROPER COUNSELING, ETC., SO THERE'S AN
INVESTMENT SOMETIMES AS YOU RECRUIT INTERNATIONAL STUDENTS.
>> YES, I'M SURE.
>> HERE'S ONE, HOW CAN WE POSSIBLY MEET 2012 DEMAND WHICH
EXCEEDS 2011 ENROLLMENT BY 27 THOUSAND, WE EITHER HAVE TO
LIMIT, DEMAND OR INCREASE FUNDING, CAN I HEAR AN AMEN, BEN
QUILLIAN, ANYTHING BESIDES AMEN?
>> NO, THAT IS ABSOLUTELY CORRECT, AND CLEARLY THE PERSON
THAT MADE THAT STATEMENT UNDERSTANDS THE MAGNITUDE OF THE
ISSUE.
>> I'M GOING TO GO FOR ONE LAST QUESTION HERE, WE'RE JUST
AT ABOUT AT OUR TIME, WOULD REQUIRING CAMPUSES ON THE
QUARTER SYSTEM TO SWITCH TO SEMESTER SYSTEM SAVE ANY MONEY,
HAS THERE BEEN ANY DISCUSSION ABOUT THAT?
>> YES, IN FACT, OUR BUDGET OFFICE IS WORKING WITH THE 6
CAMPUSES NOW THAT ARE PLANNING OR AT LEAST CONSIDERING
MAKING SUCH A CHANGE TO IDENTIFY THE COST SAVING.
THE MAJOR COST SAVINGS WILL PROBABLY BE IN THE AREA OF
REDUCING THE NUMBER OF REGISTRATIONS THEY HAVE TO CONDUCT,
BUT PRIMARILY, THE SWITCH IS GOING TO GIVE BETTER SERVICE
TO OUR STUDENTS HERE AS WELL AS TO OUR TRANSFER STUDENTS
PARTICULARLY FROM [INAUDIBLE].
>> WELL, THIS HAS BEEN FUN FOR ME, AS A RETIRED GUY, AS A
PROFESSOR, IT'S BEEN A PLEASURE TO FACILITATE A
CONVERSATION THAT IN MY HUMBLE OPINION HAS BEEN PRETTY
STRONG.
WE ARE GOING TO POST THE QUESTIONS
ANSWERS, THE LIST WILL
BE CONSOLIDATED, THE STAFF WILL PROVIDE AND THE EXECUTIVES
WILL REVIEW AND APPROVE FOUR ANSWERS THAT WERE GIVEN THIS
MORNING.
OUR BEST GUESS IS THAT SOMETIME THIS WEEK IS WHEN THEY'LL
BE UP, NOT PROMISING TODAY OR TOMORROW, BUT YOU CAN HOPE
FOR A DAY A LITTLE LATER IN THE WEEK FOR THAT, SO WITH THAT
WRAP-UP, ANY LAST THINGS FROM BEN QUILLIAN OR EPHRAIM SMITH
OR GAIL BROOKS, WE HAVE ABOUT 10 SECONDS A PIECE.
>> MY ONLY COMMENT IS THANK YOU VERY MUCH THAT HAD
SUGGESTIONS AND QUESTIONS, THEY ARE GOING TO HELP US THINK
THROUGH THESE MATTERS.
>> EPHRAIM?
>> SOME OF THE ITEMS BEING DISCUSSED, FOR INSTANCE, THE
THREE TIER SUPER SENIORS, THEY AFFECT THE ACADEMIC PROGRAMS
SO WE DO WANT TO HEAR FROM THAT.
>> AND LET US HEAR FROM YOU AND GAIL BROOKS, FINAL COMMENT?
>> JUST TO THANK YOU FOR THE THOUGHTFUL QUESTIONS AND AN
ACKNOWLEDGMENT THAT THESE ARE VERY CHALLENGING TIMES AND
APPRECIATE PEOPLE TAKING TIME TO PARTICIPATE IN THIS.
>> AND WE'RE GOING TO GIVE IT BACK TO JENNIFER FOR THE VERY
LAST WORD.
>> ALRIGHT, EXCELLENT, THANK YOU VERY MUCH, KEITH, I WANT
TO THANK ALL OUR PRESENTERS TODAY, DR. BENJAMIN QUILLIAN,
GAIL BROOKS, EPHRAIM SMITH, AND DR. BOYUM, SO THANK YOU ALL
FOR JOINING US AND GAIL WANTED ME TO REVIEW THE FOOTPRINT
POD, SO WE CAN SEE HOW WE SAVE OUR FOOTPRINT ANALYTIC, SO
WE ARE TRACKING ROUND TRIP DISTANCE IN MILES AND THE CARBON
EMISSIONS AND POUNDS AND THE U.S. DOLLARS, AND WE HAVE AN
ANALYTIC THAT WE PUT IN FOR EACH AND EVERY PERSON THAT WE
HAD HERE TODAY, AND MULTIPLYING THE NUMBER OF SAVINGS BY
THE NUMBER OF PARTICIPANTS IN EACH GROUP, SO FOR THIS
SPECIFIC WEBCAST, WE HAVE FANTASTIC SAVINGS, AND I WANT TO
THANK EACH AND EVERY PERSON FOR JOINING US TODAY AND AT THE
TOP OF THE CAPTION POD, YOU WILL SEE WHERE WE WILL BE
POSTING THIS RECORDING, IT WILL BE AT THE CAL STATE BUDGET
REVIEW PAGE, WITH THAT, WE'RE GOING TO SIGN OFF LIVE FROM
THE CHANCELLOR'S OFFICE, WE LOOK FORWARD TO SEEING YOU
AGAIN AND TAKE CARE.