Lunch on your own

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Lunch(on your own)

• 1200 100

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100 115 Committee on Strategic and
Financial Planning 115 130 Research 1
30 145 Information Technology 145 -
200 Administrative Services 200 215
Finance 215 230 Advancement and
Strategic Initiatives
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Faculty Council Committee onStrategic and
Financial Planning

• Colorado State University Budget RetreatMarch
  11, 2009

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Statement of Guiding Principles

• We must protect our unique and most strategically
  important activities, particularly the academic
  core, in keeping with our charge to serve as
  Colorados land grant institution
• Ensure a transparent link between budget cuts and
  services and activities
• Wherever possible, budget reductions should be
  reversible
• The new strategic planning process cycle must
  inform decisions regarding increases and
  reductions
• Net revenue-generating activities and support
  services should be preserved to the greatest
  extent possible
• Reassess all new investments made since FY06 in
  light of current fiscal pressures on all units
• It is important to clarify the status of the
  stretch goals as the university faces new
  challenges, and reconcile these to the refreshed
  strategic plan metrics

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Specific areas of focus

• Increase need-based financial aid for Colorado
  residents
• Protect GTA lines
• Maintain current benefit levels
• Implement furloughs or leave without pay to
  minimize layoffs
• Ensure resources for controlled maintenance
• Sustain student success initiatives that have
  proven to be effective, re-evaluate others
• Protect library collections
• Retain current faculty promotion salary increment
  model

Our long-term focus should be on increasing our
standing among peer institutions
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100 115 Committee on Strategic and
Financial Planning 115 130 Research 1
30 145 Information Technology 145 -
200 Administrative Services 200 215
Finance 215 230 Advancement and
Strategic Initiatives
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FY10 Spring Budget Retreat

• Bill Farland
• Office of the VP for Research
• March 11, 2009

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Overview

• Looking Forward SWOT
• FY10 Budget Reduction Plan Proposal
• OVPR Implications
• College/Unit Implications

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(No Transcript)
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FY10 Base Budget Reduction Plan Proposal
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OVPR Budget Reduction Implications

• Reduced base salary support for individual
  positions and hourly employees
• Salary support model shift from base to service
  center cost recovery, e.g., 2-1 or 1-6 accounts
• At the highest level, unit level shifts will be
  required
• Reduced operating, travel, and training dollars
• Inability to address critical research
  infrastructure needs
• Accreditation, regulatory, safety, and security
  risks
• Equipment and physical infrastructure investments

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College/ Unit Budget Reduction Implications

• Reduced Base Targeted toward Sustaining Funding
  for New Faculty Start-Up Support
• Reduced Supercluster Internal Seed Grant Funding
• Reduced Flexibility to Participate in Commitment
  Requests (RA/RSP) for One-Time Research Support
  and/or Enhancement
• Explore methods to increase FA recovery for
  RA/RSP distribution
• Preserve support to RICRO committee chairs
• Reduced CSURF Support
• Implications for tech transfer, proprietary
  research, and/or private sector connections

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Local Discovery/Global Impact How will the
decisions of the day be seen in tomorrows
outcomes?
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100 115 Committee on Strategic and
Financial Planning 115 130 Research 1
30 145 Information Technology 145 -
200 Administrative Services 200 215
Finance 215 230 Advancement and
Strategic Initiatives
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FY10 Budget Rescission Proposal

• Pat Burns
• VP for IT

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Telephony Networking at CSU
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Background Last Year

• The Faculty Council on Financial Strategic
  Planning asked ACNS to inventory and assess the
  status of networking at CSU, and devise some
  recommendations as to futures

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A Series of Unfortunate Events

• Telephone environment
• Housing is significantly reducing the scope of
  telephone services in the residence halls due to
  low usage
• Cannot reduce expenses anywhere near
  commensurately, ergo costs are shifted to
  on-campus services by 2.57/mo.
• Telephone switch EOL in 2010 or 2011 (Nortel
  Chapter 11) need to find a replacement
• Networking needs (after 8 years for current
  model)
• Greater capacity everywhere
• Harden the network and simplify operations in
  preparation for Voice over IP (ancillary
  benefits)
• A refresh cycle for network switches (some VERY
  old)
• A coherent, managed approach to networking
• When the horse is dead, get off. - Rosita Perez

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Comm. Rooms/Network Switches

• 380 Communications Rooms
• 670 Ethernet Switches
• 30K ports in use!!!
• 43 of switches are outdated (no longer made)
• gt 100 are more than 5 years old
• There is no defined refresh cycle, switches are
  the responsibility of the department
• All wiring in buildings is capable of 1 Gig
• Every circuit tested for performance!
• Fiber between buildings is capable of 10 Gig

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Approx. Costs for Networking Upgrades

• Hardware upgrades maintenance
• Upgrade border 250k, 25k/yr FUNDED
• Upgrade core 515k, 21k/yr NOT FUNDED
• Upgrade MDFs 1.63M, 12.5k/yr NOT FUNDED
• Upgrade IDFs 1.73M, 35k/yr NOT FUNDED
• TOTAL 4.125M, 93.5k/yr
• Switch hardware refresh 540k/yr (approx.)
• Recall 12.6M bond for telephone upgrade in 92

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Monthly Cost for Basic Service
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Cost Comparison with CSU Peers (All currently
have revenue from Housing) - Unbundled Basic
Service
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Cost Comparison with Peers Bundled with VM (All
currently have revenue from Housing)
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Strategy Adopted in FY 01

• Use Telecom reserve for the following projects
• Build the data infrastructure
• Keep the telephone switch up to date
• Purchase equipment necessary to build sustain
  the data infrastructure
• OTDR, fiber splicer, fiber splicing van,
  trailer,
• Expand and sustain the E911 infrastructure

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Avg. 521k
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Perspective A Most Successful Activity

• AS.12 building rewires 200 buildings
• On-campus fiber buildings, backbone
• Off-campus fiber inter-campus, wide area
• Regional optical networking with 4 partners
• BiSON ring at 1 Gig
• In a cost neutral manner, the campus has had
• Excellent physical infrastructure
• Excellent Internet access
• While maintaining the lowest basic service costs
  among all of our peers, with no additional
  funding!

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Possible Future Strategies

• Operate the telephone switch past EOL
• Redirect telecom reserve into network upgrades
  and hardening but, need additional funds
• Campus wide efforts
• Review network cost algorithm implement in FY
  11
• Make cost neutral, insofar as possible
• Maybe FTE based (utility model)
• Consolidate Telecom ACNS in FY 11
• Cost savings from staffing synergies should fund
  2 additional FTE for network operations
• Explore VoIP for implementation in FY 12
• Consider 1 Gig to the wall jack as an option

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FY 10 Proposal Telephone Costs

• Reduce VM costs by 1/mo. UM by 2/mo.
• Total savings to the campus 57.4k/yr.
• Maintain Basic Service cost _at_ 11.13/mo.
• Backfill loss of revenue from Housing
  2.57/mo. By
• Reducing staff in Telecom 1.44/mo.
• Defer switch upgrades 0.76/mo.
• Dip into telecom reserve fund 0.36/mo.
• Total 2.57/mo.

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Alternatives Basic Service Cost

• Maintaining current cost suggested because we are
  so far behind in terms of networking
  infrastructure, but
• Could reduce basic service cost by up to 3/mo.
• I.e. eliminate all project funding for building
  rewires, fiber upgrades and expansion, network
  infrastructure upgrades
• Or, could increase basic service cost by some
  amount but, I do not advocate this approach
  until we have done more homework on costs

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3 Centrally Funded IT Departments

• ACNS, IR and IS
• Druckers management strategy
• Are we doing the right things?
• Corollary we must stop doing some of the things
  we have been doing, so we can start doing new
  things that are more important
• I.e., use this as an opportunity to improve
  productivity/efficiency and embark upon new,
  important initiatives

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Summary Annual Budget Cuts
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ACNS Proposed Base Rescissions
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IR Proposed Base Rescissions
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IS Proposed Base Rescissions
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100 115 Committee on Strategic and
Financial Planning 115 130 Research 1
30 145 Information Technology 145 -
200 Administrative Services 200 215
Finance 215 230 Advancement and
Strategic Initiatives
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DIVISION OF ADMINISTRATIVE SERVICES
Revised VPAS FY09 Base Budget 22,825,732
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DIVISION OF ADMINISTRATIVE SERVICES
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IMPACT!!
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• 10.543 Reduction
• 14 Layoffs other staff time reduced
• 19 Vacant Classified positions cut
• Reduction in Health and Life Safety programs
  (HLS)
• Delays in Contract Processing
• Trash collection every other week
• Minimal maintenance work performed
• Mail and freight service delays

• 12.543 Reduction
• 8 (22 Total) Layoffs more staff time reduced
• 31 (50 Total) Vacant classified positions /10
  temp. positions cut
• Loss of 44 unfilled student positions
• Serious reduction in HLS programs
• Classroom renovations curtailed
• Response time for facilities non-emergencies
  reduced
• Freight processing delays and no mail delivery

• 14.543 Reduction
• 6 (28 Total) Layoffs more staff time reduced
• 22 (72 Total) Vacant positions eliminated
• Significant delays in purchasing and contracts
  processing
• Severe reduction in HLS programs
• Mowing and weeding on reduced schedule
• Reduction of services for Employee Assistance
  Program

• 16.543 Reduction
• 20 (48 Total) Layoffs more staff time reduced
• Elimination of numerous HLS programs
• Flower beds reduced by more than 50
• No window washing or painting
• Preventive maintenance curtailed
• Recycling efforts curtailed
• No priority service for freight

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100 115 Committee on Strategic and
Financial Planning 115 130 Research 1
30 145 Information Technology 145 -
200 Administrative Services 200 215
Finance 215 230 Advancement and
Strategic Initiatives
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Division of Finance
FY 10 Budget Hearings
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FY 09 Base Reduction Plans (9)

• Wont fill 2 vacant staff positions
  (transfer/retirement)
• Reorganize Management Structure
• Operating Expense Reductions
• Computer Replacement Cycle Extended
• IMPACT Higher staff to management ratios
  Staff workload redistribution
  Professional development delivery reconfigured
  Computer warranties extended to
  mitigate
• 
  

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FY 10 Additional 2 4

• 2 Base Budget Reduction
• Wont fill vacant staff position
• Operating budget reductions to supplement
  part-time staff
• 4 Base Budget Reduction
• Reconfigure and consolidate staff work (2 FTE
  reduction)
• IMPACT -Minimize to customers by utilizing
  part-time staff during peak service
  periods - Some delay in work
  turnaround, customer response time
  

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FY 10 Additional 6 8

• 6 Base Budget Reduction
• Renegotiate Cashnet Contract based on
  efficiencies gained w/Kuali Financial System
  implementation
• Implement E-billing option for student
  billingIMPACT Rate of e-billing adoption may
  impact cost savings
  Student/Parents may prefer paper billing option
• Implementation may be
  challenging given resources
  dedicated to the financial system implementation
• 8 Base Budget Reduction
• Contract for Perkins Loan Services
• IMPACT - Will take some lead time to
  implement - Loss of control over
  quality of customer service to former students
  - Loss of control over Perkins Loan
  servicing compliance

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100 115 Committee on Strategic and
Financial Planning 115 130 Research 1
30 145 Information Technology 145 -
200 Administrative Services 200 215
Finance 215 230 Advancement and
Strategic Initiatives
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Advancement and Strategic Initiatives
Budget Hearing
March 11, 2009
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ASI Budget and Revenue Reductions

• FY 09/10 Budget and Revenue
• 6.6 M (Budget) 5.635 (Revenue) 965K
  (Projected Shortfall)
• Revenue Reductions last two years
• Reductions due to economy downturn 2.1 Million
  (FY 07/08)
• Reductions due to economy downturn 2.7 Million
  (FY 08/09)
• Total revenue reductions in last two fiscal
  years 4.8 Million
• Additional Revenue Reductions in Education and
  General
• 146,172 FY 08/09 (actual)
• 57,298 -229,191 (projected)
• ASI has not received any EG increases over the
  past 3 years

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Current Impact

• Operational Reductions      
• 2 Prospect Researcher positions
• Web Coordinator position  
• Extra funding to colleges for travel and
  communications  
• Funding for the ADODs in Business and Vet
  Medicine
• ADOD for Corporations
• Funding for contract prospect researchers was
  eliminated 
• Drop funding for Campaign kick-offs
• Gift Processor positions  eliminated
• Campaign Director of Operations eliminated

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FY 09 and FY 10Base Budget Reduction Targets
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Impact of Reductions

• Progress made past 3 years in building strong
  infrastructure and comprehensive
  advancement/fund-raising program will be
  significantly diminished
• Funding reduced for Colleges/Units/Division
• Other University Advancement Offices nationally
  will continue to have a significant advantage
  over CSU in personnel and budgets
• Will lose opportunity to be donor ready when
  the economy turns around
• Private support is critical for todays premier
  universities but wont be achieved without a
  consistent and sustainable Advancement program
• FY08 79.5M FY09 62M (economy) FY10
  ???

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Break

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