Rogers State University
Budget Advisory Committee Minutes
May 19, 2017
The RSU Budget Advisory Committee held a meeting May 19, 2017, in the Centennial Center Rooms B&C beginning at 11:00 a.m.
Members Present:Members Absent:
Tom Volturo, ChairChris Ratcliff
Richard BeckBrian Reeves
Maynard PhillipsSusan Willis
Heidi HoskinsonAutumn Fourkiller
Keith Martin
Mark MeadorsOthers Present:
Steve HouselSue-Anna Miller
Mary Van DiestMary Millikin
Jerry BowenDavid Hamby
Karl ReynoldsClaudia Story, Staff Support
Brent Marsh
CALL TO ORDER
Chair Volturo called the meeting to order at 11:00 a.m.
APPROVAL OF MINUTES
Ms. Hoskinson made a motion to approve the minutes of the April 28, 2017 meeting, as amended. Ms. Van Diest seconded. Motion approved by committee.
MOODY’S
The committee discussed correspondence and ratio calculation reports received from Moody’s Investors Service indicating some weakening in the financial position of the University. Moody’s wants to know what plans the University has to improve the ratios. Possible areas for improvement discussed were enrollment, retention efforts, development efforts, tuition and fees, health insurance savings,controlling costs and increasing course offerings. Chair Volturo proposed setting up a conference call with HLC on June 26th or 27th to discuss what the institution is doing to address financial issues.
FINANCIAL RESPONSE PLAN
Chair Volturo said the 2017-2018 Financial Response Plan was approved by the Board of Regents at the May meeting. If financial conditions require implementing the plan, a notice will be sent to faculty and staff.
DISCUSSION ON BUDGET REDUCTIONS
Mr. Meadors presented a revised list of departmental budget reductions for the committee’s consideration. The list was modified from the previous version presented at the April 28, 2017 meeting. The revised list shows $1,160,632 in proposed FY18 budget cuts which amounts to an actual cash savings of $874,522. Use of reserves would be required to reach the $1,160,632 reduction in the budget.
To address the perception that faculty is taking disproportionate cuts, Mr. Meadors presented a spreadsheet to the committee showing the percentage of reduction of personnel in each budget activity relative to the activity personnel budgets. Proposed cuts for all budget activities reflect a 4.8% reduction, with Athletics at 14.8% and Instruction at 5.1% relative to the E&G I budget.
The committee addressed Dr. Housel’s question as to why cuts to Athletics budgetonly apply to E&G and not the entire budget. Chair Volturo explained that most auxiliary funds are restricted and dedicated. Sue-Anna Miller stated that there are funding constraints and issues – certain fees have to be used for certain items.
Dr. Housel inquired why the University has extra sports when it is not required. RSU has 12 sports and is required to only have 10. Some sports have athletes in 2 sports, such as cross-country and track. Members discussed the marketing advantages of having 12 sports. The last two sports added were men’s and women’s field & track with enrollment out-weighing expense.
Dr. Martin stated response from faculty on proposed increased faculty load is that it is placing a burden on a selective demographic and he feels it is not sustainable to ask faculty to do this. He proposed looking at health insurance savings instead. Mr. Meadors stated that when faculty members are hired, they have a set amount for time & effort and get paid overload which staff employees do not receive.
The committee discussed the downward enrollment trend compared to last year and the possible negative effect Jenzabar issues are having on students. Chair Volturo stated that while Jenzabar may have had some effect, customer service and friendliness on campus needs to be improved.
Sue-Anna commented the committee and institution should not only be concerned with the current financial stability of the institution but also with long term sustainability of the institution.
Dr. Beck proposed that the committee accept the list of reductions, plus look at health insurance savings.
Ms. Hoskinson moved to approve the proposed $1,160,632 budget reduction list. Dr. Housel seconded. Motion approved by committee.
The committee reviewed a handout showing differences in RSU Health Insurance plans, comparing the HealthChoice High, HealthChoice Basic and the High Deductible Plan. Members discussed moving from HealthChoice High to HealthChoice Basic and capping the amount the University will pay. Also discussed was establishing a flat amount the University will pay toward health insurance and allowing the employee the choice of plans available. Members decided further research was needed before making a recommendation.
Dr. Housel moved that the committee commit to making an adjustment to Health Insurance Benefits upon further research and prior to the University’s next enrollment period. Dr. Beck seconded. Motion approved by committee.
The committee agreed that if budget cuts go beyond what is expected, the next step would be additional furlough days, then reduction in health insurance benefits, and then reduction in workforce.
Dr. Beck moved that the committee recommend continuing the 12-day furlough plan with the option to add six more days if financial conditions warrant. Ms. Hoskinson seconded. Motion approved by committee.
Dr. Marsh moved that in addition to the previously approved action, that reduction in force plan be implemented if financial conditions warrant. Dr. Bowen seconded. Motion approved by committee.
ADJOURNMENT
Dr. Beck moved to adjourn the meeting. Ms. Hoskinson seconded. Motion approved by committee. Meeting adjourned at 1:30 p.m.
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