July 1, 2003 Conference Call Minutes (10:30 a.m.) Participating Campuses: Albany; Alfred - Ceramics; Alfred - UTC; Binghamton; Brockport; Buffalo Center; Buffalo College; Canton; Cobleskill; Cornell Statutory Colleges; Cortland; Delhi; Empire State; Environmental Science & Forestry; Fredonia; Downstate Medical; Upstate Medical; Maritime; Morrisville; New Paltz; Old Westbury; Oneonta; Optometry; Oswego; Plattsburgh; Potsdam; Purchase; Stony Brook; Utica/IT System Administration and Guests - Brian Stenson, Dan Sheppard, Kelly Dupuis, Joanne Fazioli, Patrick Wiater; Dan Esposito, Heather Eichen President - David Bowers David started the meeting with a discussion of changes to the Optional Retirement Plan (ORP) proposed by Curtis Lloyd and Stephen Beditz. Ken Levison and John Lambert expressed concern regarding the following: Hardship Withdrawal Provision Define Hardship Limit on Withdrawal (lower cap) Age Limitation Requirement of Spousal Consent in Hardship Provision Curtis Lloyd Proposal taken to university-wide benefits managers for review and consultation for each tier campus on components of "cashability" According to national practices: SUNY is a minority in keeping funds until 55. Our current policy will not allow someone that is terminally ill to access cash. Spousal Consent - Currently must sign off on every transaction - Dick Mann made a motion to remove. Moved to accept. Seconded by Tracy Bennett. Passed. Campuses that opposed change: Cornell, Ceramics, Oneonta, Albany; New Paltz Brian Stenson Brian introduced Dan Sheppard as the new Assistant Vice Chancellor for Budget and Finance. Trustees met on 6/30/03 and approved resolution for tuition increase of $950 for undergraduates and the Financial Plan. One dissenting vote was noted by student trustee. Budget Update State Support was reduced by $188 Million and replaced with $190 Million in tuition support. The new non-resident revenue proposal was reduced by $100 Million. Other Tuition Increases (professional and graduate) - same as pre-loaded in revenue projection system. A separate rate was established for the MBA Program. New enrollment (deposits) was reported up by 3,345 students. Funded Appropriation was approved at $1.83 Billion. $36.6 Million below the legislative appropriation (unfunded). Budget model used to distribute enrollment growth. Updated BAP in traditional manner - $221 Million higher than appropriation. Each campus was reduced by pro rata amount of the $221 Million. After applying methodology, eight campuses were below 02/03 spending, 8 campuses were flat, and the remainder were positive by .04 % to 1.8%. Winners shifted $46 million to losers. Board of Trustees Want to change BAP to reflect explicit incentives (i.e. academic enhancement; quality indicators, etc.). University-Wide Programs Status EOP/EOC - flat System Administration Cut (5%) Academic Equipment Replacement Cut (20%) SCAP Cut (20%) Remainder of Cuts (2%) New - University-Wide Program - Information Security (+ $1.6 Million) Financial Plan Process Letter will be out on Wednesday or Thursday Open System on July 7 Submission Deadline - July 25 Campus Management Plan will be requested at the same time as Financial Plan submission July reduction abated by additional money from Federal government and tobacco money Budgeted gap still projected at $10 - $12 Billion over 2 years (04/05 and 05/06 Budget Controls and Actions in Anticipation of Budget Cuts Campus Management Plan Hiring Freeze Travel Curtailment General Spending Curtailment Haircuts - if there are additional haircuts, we will have to consider layoffs (political support). Waiting for information Brian guessing mid-year cuts with some flexibility Prudent to voluntarily participate in general spending freeze 1st Cut could be in the 20% range (of state support) 2nd Cut - hold harmless strategy will have to be evaluated DIFR Flexibility Bond Issue scheduled for September '03 Capital Budget - $350 Million Hospitals Community Colleges Reappropriation Only - State and Residence Halls No M&R dollars were funded for 2003-04 Will create M&R account from remaining capital funds Graduate Research Initiative - no new money approved Other appropriation levels approved No SUTRA or IFR offset required in Financial Plan for 2003-04 IFR/SUTRA Levels same as last year IFR appropriation approved at $450 Million (same as last year) SUTRA appropriation approved at $90 Million (will keep appropriation originally assigned to SUTRA Financial Plan) TAP delay set at $36 million in 2003-04 Capital Plan expenditures NOT funded - should be included in Management Plan (as shortfall) Campus-related entities - write to System Administration with any related issues to Alumni and Foundations. Will discuss issues in September. Model contracts will include Gramm-Leach-Bliley Act language - ASC/Foundations/Alumni Association Meeting adjourned at 11:29 a.m. Respectfully submitted, John R. Homburger, Secretary Back to Minutes/Reports