. HI GOOD AFTERNOON
EVERYONE WE'RE GONNA GO AHEAD
AND CALL THE JOINT LEGISLATIVE
AUDIT COMMITTEE ASSEMBLY HIGHER
EDUCATION COMMITTEE SENATE
EDUCATION COMMITTEE. ASSEMBLY
BUDGET SUBCOMMITTEE TWO ON
EDUCATION FINANCE TO WATER THE
OUR REACHING FOUR PM AND- NOW
THAT THE SENATE IS A GERMAN WE
WILL GOING TO BEGIN THIS
HEARING. SO GOOD AFTERNOON THIS
AFTERNOON WE WILL DISCUSS THE
FINDINGS AND RECOMMENDATIONS
IDENTIFIED BY THE STATE AUDITOR
IN THE AUDIT REPORT RELEASED IN
JUNE OF THIS YEAR TITLED
CALIFORNIA STATE UNIVERSITY. IT
FAILED TO FULLY DISCLOSE ITS
ONE POINT FIVE BILLION SURPLUS
AND IT HAS NOT ADEQUATELY
INVESTED IN ALTERNATIVES TO
COSTLY PARKING FACILITIES. I
WANT TO THANK ASSEMBLY WOMAN
QUIRK SILVA FOR REQUESTING THE
ADDED IT AND FOR JOINING US
HERE TODAY. THANK YOU TO ALL
THE MEMBERS AND COMMITTEE
CHAIRS THAT ARE HERE TODAY AS
WELL. THANK YOU FOR YOUR
INTEREST IN THIS OVERSIGHT
HEARING AND YOUR ATTENDANCE
THIS IS CERTAINLY AN IMPORTANT
TOPIC FOR ALL CALIFORNIANS
INCLUDING THE MORE THAN FOUR
HUNDRED AND EIGHTY THOUSAND.
CSU STUDENTS IN OUR STATE.
PROVIDING AN AFFORDABLE HIGH
QUALITY FOR YOUR COLLEGE
EDUCATION IS CRITICALLY
IMPORTANT TO THE FUTURE OF OUR
STATE. OUR HEARING TODAY WILL
CONSIST OF TWO PANELS OUR FIRST
PANEL WILL CONSIST OF THE STATE
AUDITOR'S OFFICE AND THE
LEGISLATIVE ANALYST'S OFFICE.
THE STATE AUDITOR WILL PRESENT
THE RESULTS OF THE AUDIT
REPORT. THE LA IS MAINLY HERE
TO ASSIST WITH ANY QUESTIONS
MEMBERS MAY HAVE. OUR SECOND
PANEL CONSISTS OF THE PRESIDENT
OF THE CSU SYSTEM A MEMBER OF
THE CS USE BOARD OF TRUSTEES
AND A REPRESENTATIVE FROM THE
CAL STATE. STUDENT ASSOCIATION
THANK YOU FOR ATTENDANCE HERE
TODAY TO PROVIDE YOUR
PERSPECTIE. THE COST OF HIGHER
EDUCATION INCREASING ENROLLMENT
OUR FOUR YEAR INSTITUTIONS ARE
ALWAYS TOPICS OF GREAT INTEREST
AND CONCERN FOR THE
LEGISLATURE. AND FOR EACH OF US
PERSONALLY. I AM CERTAINLY
HAPPY WITH THE CS USE SYSTEMS
COMMITMENT TO INCREASING
ENROLLMENT. THIS INCLUDES IN
ROLLING A HUNDRED THOUSAND
ADDITIONAL STUDENTS BY TWENTY
TWENTY THREE. THIS GROWTH
CERTAINLY PRESENTS CHALLENGES
INCLUDING FUNDING AND PARKING
CHALLENGES REGARDING ENSURING
THAT CSU STUDENTS FINANCIAL
PARKING NEEDS ARE ACCOMMODATED.
THIS REPORT WILL DISCUSS
TODAY'S WE WILL DISCUSS TODAY
PROVIDES OPPORTUNITY FOR US TO
DISCUSS THESE CHALLENGES AND
WHAT THE CSU IS DOING TO
ADDRESS TRANSPORTATION NEEDS
AND INSTILL CONFIDENCE IN ITS
STUDENTS IN THE LEGISLATURE.
THAT FUND THAT FUNDS ARE BEING
PROPERLY DISCLOSE AND ACCOUNTED
FOR. THE AUDIT REPORT DID NOTE
THE CHANCELLOR'S OFFICE
APPROPRIATELY SAFEGUARDS YES
USE ACCOUNTS OUTSIDE THE
CENTRALIZED STATE TREASURY
SYSTEM. THE ROCK DOT IT REPORT
ALSO FOUND THAT CSU CAMPUSES
APPROPRIATELY SPENT PARKING
FINES AND DO NOT IMPOSE QUOTAS
ON PARKING VIOLATIONS. THE
REPORT ALSO FOUND THAT THE CSU
APPROPRIATELY DISPERSED
EARNINGS FROM PARKING REVIEW
INVESTMENTS. NOT A REPORT
NONETHELESS FOUND ROOM FOR
IMPROVEMENT IN SEVERAL AREAS.
THE STATE AUDITOR FOUND THAT
THE CSU FELL TO FULLY DISCLOSE
ITS ONE POINT FIVE BILLION
SURPLUS. FROM FISCAL YEARS TWO
THOUSAND EIGHT OH NINE THROUGH
TWO THOUSAND SEVENTEEN EIGHTEEN
CSU SURPLUS GREW BY MORE THAN
FOUR HUNDRED PERCENT. IT
ACCUMULATED A DISCRETIONARY
SURPLUS OF MORE THAN ONE POINT
FIVE BILLION FROM TUITION
DURING THIS TIME FRAME. FROM
FISCAL YEAR TWO THOUSAND EIGHT
OH NINE THROUGH FISCAL YEAR TWO
THOUSAND ELEVEN THROUGH TWELVE
CSU RAISE THE COST OF TUITION
BY ABOUT 80% FROM FISCAL YEARS
TWENTY TWELVE TO THIRTEEN
THROUGH TWENTY SEVENTEEN
EIGHTEEN ONE CSU SURPLUS ALMOST
DOUBLED ITS GENERAL FUND
APPROPRIATION GREW BY SIXTY
PERCENT. ON COMPARISON THE
STATE WIDE RAINY DAY FUND
CONSISTS OF A 10% RESERVE WHILE
THE CSU FUNDS DISCUSSED TODAY
CONSTITUTES A 20% RESERVE. IF
WE USE A ONE POINT FIVE BILLION
DOLLAR FIGURE SOMETHING I KNOW
THE CSU IN THE CHANCELLOR EAGER
TO DISCUSS DURING THEIR
TESTIMONY. THEY ARE REPORT ALSO
FOUND THAT THE CSU AS NOT
ADEQUATELY INVESTED IN
ALTERNATIVES TO COSTLY PARKING
FACILITIES. AT THE FOUR CAMPS
IS A STATE AUDITOR REVIEWED.
THEY HAD BUILT EXPENSIVE YOU
PARKING FACILITIES THAT
COMMITTED THEM TO SIGNIFICANT
LONG TERM DEBT. RESULTING IN
INCREASED PARKING PERMIT FEES
FOR STUDENTS SOME AS HIGH AS
TWO HUNDRED AND THIRTY SIX
DOLLARS PER SEMESTERWHILE ONLY
MINIMALLY INCREASING PARKING
CAPACITY. ONE CAMPUS BUILT A
PARKING FACILITY NOT INTENDED
FOR STUDENTS ALTHOUGH THE
CAMPUS YOU STUDENT PERMIT FEES
TO PAY FOR THE CONSTRUCTION.
SOMETHING SOMETHING I KNOW
SEVERAL MEMBERS OF THE
LEGISLATURE LEGISLATURE OF TAKE
IN PARTICULAR OFFENSE TO. I
KNOW THE CSU IS TAKEN SOME
EXCEPTION TO THE STATE
AUDITOR'S CHARACTERIZATION OF
ITS SURPLUS FUNDS. SO I AM
HAPPY TO HAVE BOTH THE STATE
AUDITOR AND THE CHANCELLOR HERE
TODAY SO THAT THIS ISSUE CAN BE
CLARIFIED. TODAY I MEAN WE HAVE
A COUPLE OF QUESTIONS THAT I
NEED ANSWERED. WHY DID THE CSU
INCREASED TUITION BY MORE THAN
EIGHTY PERCENT. GIVEN THAT IT
WAS RECEIVING A GENERAL FUND
APPROPRIATION THAT GREW BY
SIXTY PERCENT. AND THEN
INCREASED ITS RESERVES TO THE
POINT WHERE IT IS NOW TWICE THE
SIZE PERCENTAGE WISE OF THE
STATEWIDE RESERVE THAT THE
LEGISLATURE'S BUILT UP IN OUR
OWN RAINY DAY FUND.
ADDITIONALLY SOME OF THESE
FUNDS. COULD HAVE BEEN SPENT ON
THE STUDENTS HERE INCREASE
TUITIONS DID FEES. CONTRIBUTED
TO THE ONE POINT FIVE BILLION
RESERVE I BELIEVE THE STATE
AUDITOR WAS CORRECT WHEN SHE
WROTE THAT BY FAILING TO
DISCLOSE A SURPLUS WHEN THEY
CAN WHEN CONSULTING WITH
STUDENTS ABOUT TUITION
INCREASES ARE WHEN PROJECTING
CSU'S RESOURCES AND NEEDS TO
THE LEGISLATURE THE
CHANCELLOR'S OFFICE IS
PREVENTED. HAS PROVIDED A
LEGISLATORS AND STUDENTS FROM
EVALUATING THIS YES USE
FINANCIAL NEEDS IN LIGHT OF ITS
ON SPENT FINANCIAL RESOURCES ON
THE ISSUE OF STUDENT FEES AS
AUDITCOMMITTEES LAST HEARING.
WE APPROVED OR NOT REQUESTED BY
ASSEMBLY MEMBER BURNER HORVATH
RELATED TO CSUS CSU STUDENT
FEES AT THE HEARING I WAS
IMPRESSED BY THE MEMBERS
PASSION FOR INSURING AND
AFFORDABLE HIGH QUALITY
EDUCATION FOR STUDENTS AT THIS
YES USE SEVERAL OF US WERE
STAND THOUGH TO LEARN HOUSE
LARGE STUDENT FEES ARE. HOW
MUCH THOSE FEES OF GROWN AT C.
ISSUES CAMPUSES AND HOW
INCONSISTENT. THOSE FEES WERE
ACROSS THE TWENTY THREE CSU
CAMPUSES. WE ALL CARE GREATLY
ABOUT ENSURING THAT THEIR
INTERESTS ARE BEING ADEQUATELY
TAKEN INTO CONSIDERATION WHEN
DECISIONS ARE MADE. THAT IMPACT
THEM MAP YOU SEE THE MEMBERS
HERE TODAY I'M SURE THAT WE
WILL EQUALLY FOCUS ON CSU
STUDENTS BEST INTEREST. AT
TODAY. LOOK FORWARD TO A
PRODUCTIVE AND ROBUST
DISCUSSION. I LIKE TO WELCOME
EACH OF THE CHAIRS OF THE
DIFFERENT COMMITTEES AND AT
THIS TIME. WOULD INVITE SOME OF
THEM FOR OPENING COMMENTS WE
WILL START WITH OUR ASSEMBLY
HIGHER EDUCATION MANY. HIGHER
EDUCATION COMMITTEE CHAIR
ASSEMBLY MEMBER MEDINA. THANK
YOU SO REMEMBER SALAS. I
BELIEVE THIS HEARING IS TIMELY
AS I REVIEWED THE FINDINGS I
FOUND THAT MEDIA COVERAGE OF
THE AUDIT FINDINGS TO BE
SOMEWHAT MISLEADING. CSU
SURPLUS WAS NOT A SECRET. C. S.
YOU DISCLOSE THE FIGURES TO A
FEW. HOWEVER I FIRMLY BELIEVE
THAT MOVING FORWARD CS YOU MUST
DO BETTER IN ITS TRANSPARENCY.
I FIND IT INTERESTING THE
DURING THE WORST PERIOD OF THE
RECENT ECONOMIC CRISIS WELL CSU
STUDENTS WERE BEING. TUITION
WAS BEING REYES ASTRONOMIC
LIKELY THE C. S. YOU BUDGET
SURPLUS GREW. DURING THIS
HEARING I HOPE TO HEAR FROM SHE
AS YOU AS TO WHY AT THE MOST
CRITICAL TIME OF NEEDING TO
ASSIST OUR STUDENTS INSTEAD OF
DIPPING AND TO THE SURPLUS THE
DECISION WAS MADE TO RAISE
TUITION. I LOOK FORWARD TO
HEARING HOUSE CSU VIEWS THE
ROLE OF TUITION. AND HOW THEY
DEFINED TRANSPARENCY. I LOOK
FORWARD TO AN INFORMATIVE
THOUGHT PROVOKING ROBUST
SOLUTION ORIENTED DISCUSSION.
THANK YOU ASSEMBLYMEMBER SALAS.
THANK YOU MISTER MEDINA AT THIS
TIME I WALK ADDITIONAL OPENING
COMMENTS. AND WE WILL HAVE TO
ASSEMBLY MEMBER MCCARTY. THANK
YOU MISTER AUDIT CHAIR NO THIS
IS A JOINT HEARING WITH THE
HIRING COMMITTEE AND THE BUDGET
SUBCOMMITTEE AS WELL BECAUSE
ALL THE ISSUES WE DISCUSS THE
BUDGET RELATE TO FUNDING ARE
CALIFORNIA STATE UNIVERSITY
SYSTEM AND THEY ALL BOIL DOWN
TO. NOT ENOUGH MONIES FOR ALL
THE NEEDS FOR OUR OUR COLLEGE
SYSTEM HERE IN CALIFORNIA SO HE
WAS ALREADY KINDA LAID OUT THE
PURPOSE OF THIS HEARING I JUST
REALLY HAVE A COUPLE QUICK.
MAIN ISSUE THAT I WANT TO GET
OUT OF IT TODAY SO I WANT TO
PUT THIS OUT THERE FOR THE CSU
AND THE AUDIT TEAM HELP ME
UNDERSTAND IT'S REALLY THE WHAT
AND THE WHY THE WHAT IS THE
REASON FOR THIS. RESERVE
ACCOUNTS THE AMOUNT THAT IT'S
THEIR HOUSES RELATE TO OTHER
STATE AGENCIES IN THE RESERVE
POLICIES THAT WE HAVE. AS FAR
AS DISCLOSURE PURPOSES WELL I
THINK THAT'S IMPORTANT I DON'T
THINK IT WAS AS MISTER MEDINA'S
STATED THAT IT WAS ALWAYS KNOWN
MAYBE IT WAS BURIED IN SON
TABLE THAT NOBODY SAW BUT AS
THAT PERSON DEALING WITH THE
ASSEMBLY BUDGET FOR CSU. I
NEVER REMEMBER HAVING A
DISCUSSION ABOUT THIS IN THE
PAST FIVE YEARS I'VE OVERSEEN
THE CSU BUDGET AND I'VE SPOKEN
TO OUR BUDGET YEAR AS WELL THIS
WENT OVER TING WE HAVE THE SAME
CONCLUSION HERE. SO I THINK
THAT'S AN IMPORTANT PIECE THAT
THERE WAS NOT IN THERE IS NOT
PROPER DISCLOSURE BUT THE BIG
PICTURE I THINK THE THAT THE
ONE POINT FIVE BILLION DOLLAR
PICTURE IS THAT WE DO HAVE THIS
RESERVE FUND AND THE LOGIC OF
THIS IS THAT SUPPOSED TO HELP
US WHEN TIMES ARE BAD. IT'S
SUPPOSED TO HELP STUDENTS WHEN
TIMES ARE TOUGH. BUT THE
REALITY IS THAT DURING THE
LAST. GET IN THE ECONOMY WHEN
TIMES WERE TOUGH WE DIDN'T GET
INTO THIS RESERVE TO HELP OUR
STUDENTS. WE ACTUALLY INCREASE
THE ACCOUNT. AND OTHER WORDS OF
A FAMILY SAVES. MONEY FOR A
RAINY DAY AND THEY LOSE THEIR
THEIR JOB YOU WOULD THINK THAT
RAINY DAY FUND. IS TO HELP THE
FAMILY NOT TO CONTINUE TO
INCREASE THAT RESERVE ACCOUNT
SO I THINK THAT IS THE QUESTION
THAT WE NEED. TO ADDRESS. IN
OTHER WORDS WHY DO YOU HAVE
THIS RESERVE ACCOUNT IN THE
FIRST PLACE IF YOU'RE NOT GOING
TO USE IT. DURING AN ECONOMIC
DOWNTURN SO LOOK FOR
DISCUSSIONS COMING FORWARD
THANK YOU. THANK YOU THE
SOMEWHERE IN A MOVE TO COMMENTS
FROM ASSEMBLY WOMAN QUIRK SILVA
WHO ORIGINALLY REQUESTED THE ON
IT. THANK YOU MISTER CHAIR AND
MEMBERS OF THE COMMITTEE YES I
WAS WITH THE MEMBER THAT DID
REQUEST THIS AND I DO THINK OF
THE EMPLOYEES UP FROM CSU THAT
TO MET WITH ME AND THIS WAS
DISCUSSED ABOUT A YEAR AGO AND
I THINK THAT THE COMMITTEE FOR
AND THE- TEAM THAT DID THE-
AUDIT. I WANT TO FIRST TALK AS
A AS A GRADUATE OF CSU WHICH IS
I THINK MANY OF US HERE HAVE.
ATTENDED BUT I IT DID RECEIVE
MY TEACHING CREDENTIAL AT CSU
AND I HAVE TWO SONS ONE SON
THAT GRADUATED FROM CAL STATE
FULLERTON LAST YEAR AND HAD IT
EXCELLENT EXPERIENCE THERE AND
ANOTHER SON THAT WILL BE
STARTING CAL STATE DOMINGUEZ.
IN A FEW WEEKS SO I AM A HUGE
SUPPORTER OF OUR PUBLIC SCHOOLS
ARE UC'S NRCS USE I'M ALSO A
PARENT OR FOR MILLENNIALS SO
I'VE SPENT THE LAST DAY DECADE
NOT ONLY UP WORKING TO HELP
THEM. GET THROUGH COLLEGE BUT
ALSO SUPPORTING THAT
FINANCIALLY AND AS A PARENT
SOMETIMES WE DO OUR ANNUAL
BUDGETS TO FIGURE OUT HOW MUCH
COLLEGE IS GOING TO COST AND-
THAT IS WHERE SOME OF MY
INTEREST STARTED TO COME IN
BUDGET NOT NOTICING THE STUDENT
FEES THAT WERE ADDED ON PARKING
FEES. AND I ALSO HAPPEN TO LOOK
LIVE A BLOCK AWAY FROM
FULLERTON COLLEGE SOME VERY
MUCH IMMERSED IN AND FULLER
TAKING COLLAGEN CSU AND-
EVERYTHING FROM PARKING. AS WE
HAVE MANY OF OUR STUDENTS. NOT
USING THE PARKING. A PARKING
STRUCTURES AS THEY ARE VERY
COSTLY AND SO THIS ALL KIND OF
HITS HOME AND FULLER TEN IS
CONSIDERED THE EDUCATION
COMMUNITY HAVING FULLERTON
COLLEGE CSU THE OPTOMETRY
SCHOOL OTHER HOPE UNIVERSITY SO
THOUSANDS OF STUDENTS COMING
INTO FULLER TEN. SO I VERY MUCH
HAVE BEEN INVESTED IN THIS
ISSUE ON AND ALSO BEING A
THIRTY YEAR EDUCATOR BUT ALONG
WITH MANY OTHERS I WAS UPSET TO
LEARN THAT THE CS USE. HAD
ACCUMULATED A SURPLUS OF MORE
THAN ONE POINT FIVE BILLION
WHICH CONSISTED OF UNSPENT
TUITION AND PARKING REVENUE.
DURING THE SAME TIME THAT THE
SURPLUS WAS GROWING THE ANNUAL
TUITION FOR STUDENTS ATTENDING
THE CSU CAMPUSES SUCH AS FULLER
TO NEARLY DOUBLED AND THE
INCREASED MORE FOR. FINANCIAL
SUPPORT TO THE CS USE. ALTHOUGH
THE CHANCELLOR'S OFFICE
CONSIDERS THE SURPLUS TO BE
CRITICAL FOR SUPPORTING CSU'S
OPERATIONAL NEEDS THEY DID NOT
DISCLOSE THE EXISTENCE OF THESE
NEEDED FUNDS WHILE RAISING
TUITION COSTS. THROUGHOUT THIS
TIME STUDENTS AND PARENTS HAVE
HAD TO SHOULDER HUGE IN TUITION
INCREASES WHEN THE CAMPUSES
HAVE THE ABILITY TO MAKE
EDUCATION MORE AFFORDABLE THEY
FAILED TO DO SO. IN THE
MEANTIME I CAN STITCHES MY
CONSTITUENTS ATTENDING CAL
STATE FULLERTON ARE BURDENED
WITH THE MOST EXPENSIVE PARKING
PERMIT COSTS OF ALL OUR
CAMPUSES OR CSU LEADERSHIP
COULD HAVE HELPED OUR STUDENTS
BY REDUCING THE COST. BUT ONCE
AGAIN THEY FAILED TO DO SO THIS
AUDIT PAINTS A PICTURE OF
DISREGARD FOR STUDENTS. AND
PARENTS ALL WELL THE FAILING TO
USE THESE FUNDS FOR THE GOOD OF
STUDENTS. MEMBERS IT'S TIME TO
REIN IN THE MINDSET THAT YOU
STUDENT FUNDS WHAT THREE
WITHOUT REGARD TO STUDENTS
NEEDS I AM DISAPPOINTED NOT
ONLY WITH THE RESPECT TO WHAT
WAS DISCOVERED BUT WHAT THE
RESPONSE THAT SEEKS TO MAKE
EXCUSES RATHER THAN ACCEPTING
THE REVIEW AS CONSTRUCTIVE
CRITICISM. I LOOK FORWARD TO
HEARING YOUR REMARKS. THANK YOU
SIMONE QUIRK SILVA. LET'S MOVE
TO ASSEMBLY MEMBER WEBER WHO IS
CHAIR OF THE SELECT COMMITTEE
ON CAMPUS CLIMATE TO MAKE
OPENING COMMENTS RIGHT AND IT
NOT AND ACTUALLY INTENDED TO
BUT I WANT TO THANK THE AUTHOR
AB THANK YOU TO THE CHAIRS WERE
HERE TODAY FOR THE CALLING THIS
MEETING AND SOME OF YOU MAY
KNOW THAT DIED HAVE OF. ONE ONE
OF THE AUTHORS OF A BILL THAT
IS CONSISTENTLY TWO OF THEM ONE
DEALING WITH STUDENT PARKING
OTHER IN DEALING WITH THE
ISSUES OF MERIT PAY FOR US
STAFF AND THOSE KINDS OF THINGS
THAT ARE REALLY REALLY
IMPORTANT TO THE PEOPLE WHO
WORK BUT IN ADDITION TO THAT I
WAS AT THE C. ISSUE DURING THIS
TIME FRAME AND I REMEMBER.
MEETINGS AND WE ATTENDED IN
TERMS OF HOW WE WERE GOING TO
CUT THINGS AND WHAT WE'RE GOING
TO DO AND PROBABLY THE MOST
EGREGIOUS THING THAT I THINK
HAPPENED IN THIS TIME FRAME
THAT WE IF REQUIRED. ALL THE
FACULTY SEE ISSUE TO TAKE A 10%
PAY CUT. AND WE TOOK A PAY CUT
AT THE TIME WITH THE FOLKS
OBVIOUSLY WE'RE- MAKING
LEADING. SCORER IN THIS MONEY
AWAY IN KEEPING IT. AND I
REMEMBER QUITE WELL HOW I. HOW
BADLY I FELT FOR MOST OF MY
STAFF. PARTICULARLY THOSE WHO A
CLERICAL WORKERS AND WHO WERE.
ADMINISTRATIVE ASSISTANTS WHO
WERE TAKING 10% CUTS IN THEIR
SALARY. AND THIS WAS A
SIGNIFICANT CUT. WE ALSO LOST
ME FACULTY MEMBERS WHO COULDN'T
AFFORD TO TAKE THE CUT. AND WE
WORK CONSTANTLY BEING INFORMED
THAT THIS WAS THE CENTRAL FOR
US TO DO TO MAINTAIN THE
SYSTEM. TO KEEP OUR C. ISSUE
ALIVE. AND THE FACULTY AND
STAFF DID THAT WITH THE
UNDERSTANDING THAT THEY WOULD
INVESTING IN. CALIFORNIA'S
FUTURE FOR ITS INSTITUTION. AND
AS I REFLECT BACK AS A FACULTY
MEMBER WHO WHO LOST 10% CUT. WE
ALL WERE MADE TO TAKE FOR
LEVELS. AND IT WASN'T AS
DIFFICULT FOR ME AS IT WAS FOR
THE MY CLERICAL STAFF TO WORK
FOR ME FOLKS WERE MAKING
PROBABLY THIRTY FIVE THOUSAND
DOLLARS A YEAR. AND WOOD AND
LOSING. 10% OF THAT SALARY.
THEY HAD DIFFICULTY MAKING
THEIR RENT THEY HAD DIFFICULTY
DOING THE KINDS OF THINGS THAT
WE CENTRAL. AND AS I LOOK AT
THIS REPORT AND I HAD TO
REFLECT BACK ON THAT TIME
FRAME. IT IS REALLY. SHAMEFUL
THAT WILL ALLOW THAT TO HAPPEN.
AT A TIME WHEN WE WERE DOING
OTHER THINGS IN TERMS OF
INCREASING FEES IN PEOPLE
BELIEVING. THAT THEY WERE
CONTRIBUTING TO THE- THE LIFE
AND GROWTH OF OUR INSTITUTION
THAT IT WAS A SACRIFICE THEY
MADE BECAUSE THEY LOVE TO SEE
ISSUE. BECAUSE THEY LOVE THE
INSTITUTIONS OF CALIFORNIA. AND
SO WHEN I LOOK BACK ON THIS IT.
IT MAKES ME VERY SAD. TO
BELIEVE THAT OUR INSTITUTIONS
THAT NOT CARE AS MUCH ABOUT OUR
STAFF AND OUR FACULTY AS THE
CURE ABOUT THE INSTITUTION. AND
THIS IS A SHAMEFUL MOMENT I
THINK IN CALIFORNIA OF MANY OF
OUR EMPLOYEES OF COUNSEL HE
SAID THERE'S A ONE POINT
SOMEBODY BILLION DOLLAR SURPLUS
AND MOST OF US THAT. ONCE AGAIN
ANOTHER CONSPIRACY THEORY AND
WE DIDN'T FOLLOW THROUGH WITH
IT AS WE SHOULD HAVE AND AS WE
BEGIN TO LOOK AT IT THEY WERE
BECAUSE THEY WERE RIGHT. THEY
HAD BEEN FOLLOWING IT AND THEY
KNEW WHAT WAS HAPPENING AND
MORE THAN ANYTHING I REGRET. OF
WHAT WE'VE DONE. ANDI LIKE I
SAID IN OUR ATTENDED MEETINGS
AFTER MEETINGS AS ITS CHAIR OF
A DEPARTMENT AT THE UNIVERSITY
WHERE WE BELIEVE THAT THIS WAS
THE ONLY THING THAT WE COULD
DO. TO SAVE THE SEA ISSUE. AND
OBVIOUSLY WAS NOT. THANK YOU
WILL MOVE TO CENTER MORE LIKE
AND THEN WE WILL MOVE INTO OUR
FIRST PASS THANK YOU MISTER
CHAIR JUST A TO LOOK AT IT FROM
THE THIRTY THOUSAND FOOT LEVEL
THE CAL STATE UNIVERSITY
RECENTLY RELEASED THEIR- ANNUAL
FINANCIAL STATEMENTS ARE
AUDITED FINANCIAL STATEMENTS
AND- THE GOVERNMENT ACCOUNTING
STANDARDS BOARD NOW REQUIRES
THE INCLUSION. OF OTHER POST
EMPLOYMENT BENEFITS. ALSO KNOWN
AS RETIREE MEDICAL AND THEY HAD
TO ADD TO THEIR- BALANCE SHEET
A LIABILITY OF THIRTEEN POINT
FOUR NINE TO THIRTEEN BILLION
FOUR HUNDRED NINETY TWO MILLION
MORE ON THEIR BALANCE SHEET
THEIR UNRESTRICTED NET POSITION
WAS PRETTY HEALTHY. COMPARED TO
OTHER DISTRICTS BUT IT WAS
UPSIDE DOWN THREE POINT SEVEN
BILLION LAST YEAR NOW IT'S
UPSIDE DOWN BY SEVENTEEN POINT
EIGHT BILLION. SO MAYBE. TO
HAVE SOME BALANCE HAVING ONE
POINT FIVE BILLION. ON HAND IS
PROBABLY A GOOD THING RIGHT NOW
WITH THE NUMBERS THAT ARE BEING
REFLECTED IN THEIR PUBLISHED
FINANCIAL REPORTS IN MISTER
CHURCHES SOMETHING MAYBE WE
NEED TO LOOK AT FOR ALL OF OUR-
MUNICIPALITIES THAT ARE NOW
REQUIRED. TO REPORT THE UN
RESTRICTED OR COMMITTEE ON
FUNDED ACTUARIAL ACCRUED
LIABILITY FOR RETIREE MEDICAL
THESE NUMBERS ARE ARE RATHER
STAGGERING FOR LA UNIFIED
SCHOOL DISTRICT ALONE HAD AT
FIFTEEN BILLION DOLLARS AND SO
WE MAY FIND THESE SCHOOL
DISTRICTS AT OUR DOORSTEP SOON
LOOKING FOR SOME WAY TO PAY FOR
THESE. LIABILITIES THAT ARE NOW
FINALLY BEING RECOGNIZED ON THE
BALANCE SHEET SO. I JUST WANT
TO LOOK AT IT FROM THAT
PERSPECTIVE AS WELL THANK YOU
MISTER CHAIR THANK YOU
APPRECIATE THOSE COMMENTS
OBVIOUSLY THERE'S A LOT OF
INTEREST IN THIS HEARING IN
THIS TOPIC. WITH THIS YES USE I
THINK THAT'S A VERY. PREVALENT
WITH THE AMOUNT OF CHAIRS IN
THE AMOUNT OF INTEREST FROM ALL
THE COMMITTEE MEMBERS AND- THE-
AMOUNT OF PARTICIPATION FROM
THE ASSEMBLY AND THE SENATE.
WITH THAT LET'S GO AHEAD AND
CALL UP THE FIRST PANEL. WHICH
IS THE OVERVIEW OF THE AUDIT
REPORT AND INFORMATION ON
CALIFORNIA'S. STATE UNIVERSITY
WE HAVE MISS ELAINE HOW OUR
STATE AUDITOR FROM CALVERT
STATE AUDITOR'S OFFICE. WE HAVE
MISTER NICHOLAS COLOR CALYPSO'S.
I TO PRINCE WILL KILL FOR STATE
AUDITOR'S OFFICE PAUL'S STAND
HOUSING PRINCIPAL ANALYST WITH
THE LEGISLATIVE ANALYST'S
OFFICE. ABBAS HOW WHEN YOU ARE
READY THANK YOU. THANK YOU
MISTER CHAIR CHAIR MEDINA CHAIR
MCCARTY OTHER MEMBERS OF THE
COMMITTEES FOR THE RECORD MY
NAME THE LINE HOW ON THE
CALIFORNIA STATE AUDITOR TO MY
LEFT IS NIKOLAY TELLS A
MYSTICALLY TO US WAS THE AUDIT
PRINCIPLE ON THIS PARTICULAR
PROJECT. AS ASSEMBLY MEMBER
QUIRK SILVA INDICATED THIS WAS
AN AUDIT THAT WAS REQUESTED BY
HER THROUGH THE JOINT
LEGISLATIVE AUDIT COMMITTEE
ASKING US TO LOOK AT TWO
DIFFERENT THINGS ONE WAS
LOOKING AT THE PARKING ISSUES
AT FOR VARIOUS INSTITUTIONS AND
THEN ALSO LOOKING AT THE USE OF
OUTSIDE ACCOUNTS WHICH A
LEGISLATURE AUTHORIZED THIS YES
YOU DO. A FEW YEARS AGO SEVERAL
YEARS AGO BUT THEN EXPANDED IT
A FEW YEARS AGO. SO WE LOOKED
AT THOSE TWO DIFFERENT ISSUES.
I'M GOING TO VERY BRIEFLY GO
OVER. THE KEY FINDINGS KEY
RECOMMENDATIONS THAT WE MADE IN
THE AUDIT REPORT. MYSTICALLY
TELL US IS GONNA STEP YOU
THROUGH A HAND OUT THAT THE
SERGEANTS I BELIEVE HAVE HAVE
DISTRIBUTED TO THE VARIOUS
MEMBERS. THOSE HANDOUTS
HOPEFULLY WILL L. ILLUSTRATE
SOME OF THE ISSUES THAT I'M
GOING TO PRESENT. TO THE TO YOU
MEMBERS OF THE VARIOUS
COMMITTEES. AS WELL AS WE
CONCLUDED IN THE REPORT WE
BELIEVE THAT'S THE ISSUE FAILED
TO FULLY DISCLOSE THE ONE POINT
FIVE BILLION DOLLARS. NOW MR
MEDINA I KNOW YOU MENTIONED
THAT THERE WAS SOME DISCLOSURE
AND WE WILL EXPLAIN THAT THERE
WAS SOME DISCLOSURE. OF A FOUR
BILLION DOLLAR SURPLUS. BUT
THAT SURPLUS IS AS WE DO IN
THEIR AUDIT REPORT IS SPLIT
BETWEEN SPINES THAT ARE CLEARLY
RESTRICTED FOR CERTAIN PURPOSES
SO IF THEY COLLECT FEES FOR
STUDENT DEVELOPMENT CENTER
STUDENT HOUSING. THOSE FUNDS
ARE RESTRICTED SO WE HAVE A
FIGURE IN THE REPORT THAT
DEMONSTRATES THAT THERE IS TWO
BILLION DOLLARS THAT IS
SPECIFICALLY RESTRICTED BY. THE
COLLECTION OF THOSE PARTICULAR
FUNDS BUT THE OTHER HALF OF THE
EQUATION THE OTHER TWO BILLION
DOLLARS. IS MONEY THAT WE
LOOKED AT AND THE CSU HAS
ESSENTIALLY BROKEN THAT TWO
BILLION DOLLARS DOWN INTO SOME
RESERVE FOR ECONOMIC
UNCERTAINTY ABOUT FOUR HUNDRED
MILLION DOLLARS. BUT THEN THAT
LEAVES US WITH A LITTLE OVER
ONE POINT FIVE BILLION DOLLARS
THAT WE DESCRIBE AS
DISCRETIONARY THEY TAKE ISSUE
WITH THAT. WE BELIEVE IT'S
DISCRETIONARY. ESSENTIALLY
BASED ON THE FACT THAT THOSE
FUNDS ARE IN VARIOUS ACCOUNTS
FOR VARIOUS OF THE TWENTY THREE
INSTITUTIONS IN CALIFORNIA THE
PRESIDENTS OF THOSE
INSTITUTIONS CAN REACH INTO
THOSE FUNDS AND USE THOSE FUNDS
FOR A VARIETY OF DIFFERENT
PURPOSES THERE'S A TREMENDOUS
AMOUNT OF FLEXIBILITY. AND THE
USE OF THAT ONE POINT FIVE
BILLION DOLLARS AND THEN
THERE'S OF COURSE THE FOUR
HUNDRED MILLION THEY'VE SET
ASIDE FOR RESERVE FOR ECONOMIC
UNCERTAINTY. AS AS A CHAIRMAN
INDICATED WE LOOKED AT A TEN
YEAR WINDOW MEMBERS ASKED US TO
COVER THAT TIME FRAME SO OVER
THAT TIME FRAME AS. CALIFORNIA
DID FROM SOME MONEY THAT CAME
INTO CALIFORNIA UNDER THE
RECOVERY ACT UNDER THE OBAMA
ADMINISTRATION SOME MONEY CAME
INTO CALIFORNIA SOME OF THAT
MONEY WENT TO HIGHER EDUCATION.
BUT ALL THE WHILE. THE SURPLUS
AS WE CALL IT CONTINUE TO GROW
FROM TWO THOUSAND AND EIGHT ALL
THE WAY THROUGH TWO THOUSAND
EIGHTEEN AND THERE IS AN ARE
ARE MINE ONE POINT FIVE BILLION
DOLLARS OF DISCRETIONARY MONEY.
THAT THE C. ISSUE ARE COULD BE
USING TEATHER OFFSET TUITION
INCREASES OR TO USE FOR
WHATEVER PURPOSES THEY SEE FIT.
AT THE SAME TIME THIS WOULD
THIS. SURPLUS WAS INCREASING
THE GENERAL FUND APPROPRIATION
IN CALIFORNIA THE MEMBERS A
LEGISLATURE CALIFORNIA IS DOING
BETTER THAT WAS RECOVERING SO
THAT APPROPRIATION REALLY
BASICALLY. RECOVERED AND IT
INCREASED ABOUT 60% OVER THE
OLD THAT SAME TIME FRAME SO THE
CSU WAS RECEIVING ADDITIONAL
INCREASES IN APPROPRIATIONS
FROM THE LEGISLATURE AND
CERTAINLY THE ADMINISTRATION'S
AT THAT TIME BUT AT THE SAME
TIME THIS SURPLUS. CONTINUE TO
GROW AS I SAID OVER THAT TEN
YEAR WINDOW 4100% OUR ISSUE
WITH DISCLOSURE AND THE GRAPHIC
THAT WE HAVE THAT THAT MR
CLEATS US WILL STEP YOU THROUGH
REALLY DOES EXPLAIN OTHER
CONCERNS WE HAVE THERE A COUPLE
OF REPORTS THAT WE REALLY ARE
GOING TO HIGHLIGHT ONE.
CRITICAL REPORT IS CALLED THE
WORKING FAMILIES TRANSPARENCY
ACT REQUIRE CS YOU TO CONSULT
WITH STUDENTS IS THE STUDENT
ASSOCIATION IN THE EVENT THERE
CONSIDERING A TUITION INCREASE.
AND THERE ARE VARIOUS REAP
REQUIREMENTS THAT HAVE TO BE
INCLUDED IN THAT CONSULTATION.
AND ONE OF THE REQUIREMENTS IS.
DETERMINE WHETHER OR NOT THERE
ANY ALTERNATIVES TO INCREASING
TUITION. SO WHEN CSU APPROACH
TO STUDENT ASSOCIATION THEY
GAVE THEM A COUPLE OF DIFFERENT
DIFFERENT OPTIONS WE HOPEFULLY
CAN GET MORE MONEY FROM THE
STATE OF CALIFORNIA. WE'RE
GONNA HAVE IF WE DON'T WE'RE
GONNA HAVE TO RAISE TUITION IF
WE DON'T DO GET EITHER OF THOSE
WE WILL HAVE TO CUT PROGRAMS
WHAT THEY DID NOT DISCLOSE IN
THAT REPORT OR TO THE STUDENT
ASSOCIATION IS. THEY HAD ONE
POINT FOUR BILLION AT THAT TIME
IN THIS AND OUR WORDS A
DISCRETIONARY ACCOUNT IN THIS
INVESTMENT ACCOUNT THAT WAS
AVAILABLE FOR USE SO THEY
SHOULD HAVE IN OUR MINDS SHARE
THAT INFORMATION WITH THE
STUDENT ASSOCIATION. SO THEN
THERE COULD HAVE BEEN THE
CONVERSATION WE NEED TO KEEP
THAT MONEY IN RESERVE BECAUSE
WE'RE SETTING IT ASIDE FOR
CAPITAL IMPROVEMENTS WERE
SITTING INSIDE FOR EMERGENCIES
IT CETERA BUT THE DISCUSSION
NEVER TOOK PLACE AND THAT'S
BECAUSE THAT INFORMATION WAS
NOT DISCLOSED TO THE STUDENT
ASSOCIATION. ANOTHER KEY REPORT
THAT THE CSU IS REQUIRED TO
PROVIDE TO THE LEGISLATURE. IS
THE ACADEMIC SUSTAINABILITY
PLAN AND THIS IS A PLAN THAT
WAS IN THE BUDGET ACT REQUIRED
IN TWENTY SIXTEEN WHERE CSU IS
SUPPOSED TO. PROVIDE TO THE
LEGISLATURE ANY AND ALL
RESOURCES THAT THEY HAVE
AVAILABLE TO PAY THEIR EXPENSES
AGAIN THIS IS ANOTHER. REPORT
THAT WE WOULD HAVE EXPECTED TO
SEE DISCLOSURE OF THE FOUR
BILLION AND THEN POTENTIALLY
BREAKING THAT FOUR BILLION OUT
TO SEEK TO EXPLAIN. SOME OF
THAT IS DEFINITELY RESTRICTED
MONEY WE CANNOT USE IT FOR ANY.
PARTICULAR EIGHT WE HAVE TO USE
IT FOR A SPECIFIC PURPOSE BUT
HERE'S A POT OF MONEY WHERE WE
HAVE. A MORE FLEXIBILITY SO WE
WOULD HAVE EXPECTED TO HAVE
SEEN THAT KIND OF DISCUSSION
AND INCLUSION IN THE IN THE
REPORT THAT CAME TO THE
LEGISLATURE. THOSE ARE A COUPLE
OF EXAMPLES THAT WE HAD
CONCERNS ABOUT WITH RESPECT TO
SHARING WITH BOTH THE
LEGISLATURE AND CERTAINLY WITH
THE STUDENT ASSOCIATION. NOW WE
ARE NOT AS A STATE AUDITOR'S
OFFICE GOING TO ARGUE THAT
HAVING A RESERVE ISN'T A
PRUDENT THING TO DO ABSOLUTELY
IT'S A PRUDENT THING TO DO. BUT
WHEN WE LOOKED AT THE CS USE
RESERVE POLICY WE DIDN'T SEE A
LOT OF THE PARAMETERS OR THE
INFORMATION THAT SHOULD BE
INCLUDED IN A RESERVE POLICY.
AND WILL STEP YOU THROUGH
ANOTHER ELEMENT IN THE GRAPHICS
THAT WE HANDED OUT THAT
COMPARES SEE ISSUES POLICY TO
WHAT. THE LEGISLATURE ARE PUT
TOGETHER WHEN WE CREATED THE
RAINY DAY FUND AND A RESERVE
ESSENTIALLY FOR ECONOMIC ACT.
UNCERTAINTY AS FAR AS
PARAMETERS. RESERVE POLICY
SHOULD ESTABLISH WHAT'S THE
MINIMUM RESERVE WE WANT TO
ESTABLISH WHAT'S THE MAXIMUM
RESERVE. IS THEY'RE REPORTING
ON IF WE DEPEND TO THE RESERVE
WHAT ARE WE USING THOSE FUNDS
FOR. WHAT'S THE AUTHORITY WHO
HAS THE AUTHORITY TO DIP INTO
THE RESERVE AND ULTIMATELY WHO
DECIDES HOW THAT MONEY SHOULD
BE USED AND FOR WHAT PURPOSE SO
A VARIETY OF DIFFERENT ELEMENTS
THAT WE WOULD EXPECTEDTO SEE
IN A RESERVE POLICY THAT WE DID
NOT SEE. IN THE POLICY THAT SEE
ISSUE CURRENTLY HAS SO WE THINK
THERE ARE AREAS THAT THIS ISSUE
CERTAINLY COULD COULD
STRENGTHEN WITH RESPECT TO
THEIR RESERVE POLICY ANOTHER
POINT IS THE RESERVE FOR
ECONOMIC UNCERTAINTY FOUR
HUNDRED MILLION DOLLARS OUT OF.
THAT ONE POINT FIVE BILLION.
THERE IS NO PARAMETER AROUND
THE RESERVE FOR ECONOMIC
UNCERTAINTY THERE'S NO
DISTINCTION BETWEEN THAT FOUR
HUNDRED MILLION. AND THE OTHER
ONE POINT ONE I MEAN BILLION
DOLLARS THAT THAT IS INCLUDED
THAT COMES TOGETHER FOR THE ONE
POINT FIVE SO YOU'VE GOT ONE
POINT FIVE SURPLUS. THEY WILL
SUGGEST TO YOU FOUR HUNDRED
MILLION IS RESERVE ECONOMIC
UNCERTAINTY THAT LEAVES YOU ONE
POINT ONE BILLION. BUT THERE IS
NO DISTINCTION BETWEEN THOSE
TWO AMOUNTS WHEN WE LOOKED AT
POLICIES PROCEDURES HOW ARE YOU
GOING TO USE ECONOMIC THE FUNDS
FOR A RESERVE FOR ECONOMIC
UNCERTAINTY. THERE IS NO
DISTINCTION AND THERE NEEDS TO
BE CLARIFICATION IN THE EVENT
THEY WANT TO CONTINUE TO HAVE A
RESERVE FOR ECONOMIC
UNCERTAINTY. AND THEN HAVE YOU
ADDITIONAL SURPLUS FUNDS A
FURTHER THAT THEY THEY'RE
SETTING ASIDE FOR OTHER
PURPOSES SO THEY REALLY NEED TO
STRENGTHEN SOME OF THEIR
POLICIES AND PROCEDURES
SURROUNDING THAT. THE OTHER
ISSUE WE IDENTIFIED AS THERE
WAS NOT. A LOT OF REPORTING
BACK TO THE BOARD OF TRUSTEES.
ONE OF THE THINGS THAT THE
STATE REQUIRES IS AN ANNUAL
REPORT WITH RESPECT TO THE
AMOUNT IN RESERVES IN THE RAINY
DAY FUND AND RESERVES FOR THE
STATE OF CALIFORNIA. THERE'S NO
REQUIREMENT THAT THE C. ISSUE
THE CHANCELLOR'S OFFICE REPORT
TO THE TRUSTEES ON AN ANNUAL
BASIS HOW MUCH MONEY IS IN
RESERVE. HOW MUCH MONEY IS IN
SURPLUS AND WHAT THEY'RE
SETTING ASIDE NOW WE DID GIVE
THE CSU CREDIT. THERE WAS A
MEETING A BOARD OF TRUSTEES
MEETING IN SEPTEMBER OF TWENTY
SEVENTEEN. WHERE THE RESERVES
WERE DISCUSSED. AND THEY LAID
OUT SOME OF THE ELEMENTS OF
THEIR EXISTING POLICY AND WHAT
THEIR GOALS WERE MOVING FORWARD
SO I WANT TO ACKNOWLEDGE THAT.
THE INTERESTING THING ABOUT
THAT THAT IS SUBSEQUENT TO THE
DECISION. FOR THE TUITION
INCREASED WAS VOTED ON BY THE
BOARD OF TRUSTEES AT THE MARCH
TWENTY SEVENTEEN MEETING. THERE
WAS NO DISCUSSION THAT I SAW
WHEN I WATCH THE BOARD EETING.
ABOUT ANY KIND OF RESERVES ARE
ANY SURPLUS AVAILABLE TO
OFFSET. NOW AT THE JANUARY
TWENTY SEVENTEEN BOARD OF
TRUSTEES THERE WAS SOME
DISCUSSION. BECAUSE THERE WERE
QUESTIONS FROM THE TRUSTEES. IF
WE DON'T GET THE AMOUNT OF
APPROPRIATIONS FROM THE
LEGISLATURE THAT WE NEED WHAT
ARE WE GOING TO DO. THE
RESPONSE WAS WE CAN DEPEND TO
SOME. SOME FUNDS THAT WE HAVE
THAT WE TYPICALLY USE FOR NON
RECURRING. EXPENSES SO THERE
WAS A LITTLE BIT OF A-
DISCUSSION NOT REALLY
SUGGESTING THAT WE HAVE ONE
OVER A BILLION DOLLARS. IN THAT
ACCOUNT. SO WE COULD JUST TAP
INTO THAT. COM BUT THERE WAS
SOME DISCUSSION BUT THERE HAS
NOT BEEN A REGULAR ROUTINE.
CONVERSATION WITH THE BOARD OF
TRUSTEES ABOUT THE RESERVE THE
RESERVE POLICY AND THE AMOUNT
OF MONEY THAT. THE CSU
CURRENTLY HAS IN THAT
PARTICULAR RESERVE. SO WE HAVE
A VARIETY OF DIFFERENT
RECOMMENDATIONS AND I'M GOING
HIGH LEVEL WE CERTAINLY WILL
WE'LL DO OUR BEST TO ANSWER ANY
PARTICULAR QUESTIONS I WANT TO
ALLOW TIME FOR MR COOLEY TELLS
TO STEP YOU THROUGH. OTHER
GRAPHICS THAT WE HANDED OUT SO
REALLY THE RECOMMENDATIONS FLOW
WITH FROM THE FINDINGS I JUST
DISCUSSED THERE NEEDS TO BE
MORE TRANSPARENCY THEY HAVE TO
PROVIDE THIS INFORMATION TO
RELEVANT PARTIES THE
LEGISLATURE THE DEPARTMENT OF
FINANCE JOINT LEGISLATIVE
BUDGET COMMITTEE. AND REALLY
DISTINGUISH THE VARIOUS
BALANCES IN THOSE DIFFERENT
ACCOUNTS AND CERTAINLY THE
DISCRETIONARY SURPLUS THAT THAT
THE CSU IS ACCUMULATED AN
IMPORTANT POINT IS MUCH OF THE
IS THIS DISCRETIONARY MONEY IS
TUITION MONEY AND THAT'S
BECAUSE THE LEGISLATURE WHEN IT
ALLOWED. LEGISLATION TO ALLOW
THIS YEAR'S YOU TO INVEST IN
OUTSIDE ACCOUNTS. THEY SAID
YOU'RE NOT USING GENERAL FUND
APPROPRIATION TO INVEST YOU'RE
GOING TO USE THAT TO PAY FOR
EXPENSES OF THE SEA ISSUE SO
ANY FUNDING THAT'S LEFT OVER.
TYPICALLY IS COMING FROM
TUITION SO MOST OF THE MONEY IN
THAT SURPLUS DISCRETIONARY
ACCOUNT. WAS GENERATED BY
TUITION. NOW KEEP THAT IN MIND
THE TUITION INCREASE IN TWENTY
SEVENTEEN GENERATED SEVENTY
EIGHT MILLION DOLLARS. THE
RESERVE AMOUNT THAT
DISCRETIONARY AMOUNT INCREASED
ABOUT SIXTY FIVE MILLION
DOLLARS FROM STE SIXTEEN
SEVENTEEN TO SEVENTEEN EIGHTEEN
WHEN AT THE SAME TIME THEY
RAISE TUITION AND- FOR STUDENTS
AND GENERATED ABOUT SEVENTY
EIGHT MILLION DOLLARS JUST TO
PUT THAT IN A LITTLE BIT OF
PERSPECTIVE SO WHAT WE'RE
SUGGESTING IN ALL OF THESE
RECOMMENDATIONS IS. MORE
TRANSPARENCY MORE DISCLOSURE
MORE DISCUSSION ANNUAL
REPORTING TO THE BORDER REGION
I MEAN THE BOARD OF TRUSTEES
MAKING SURE THAT. THE
INFORMATION ABOUT THE CURRENT
BALANCE IN THOSE IN THOSE
OUTSIDE ACCOUNTS ON A
PARTICULARLY ATTRIBUTABLE TO
OPERATING EXPENSES THE
DISCRETIONARY AMOUNTS AS REALLY
DISTINGUISHABLE SO THAT PEOPLE
UNDERSTAND HOW MUCH MONEY IS
THERE SO THAT THE CONVERSATION
CAN HAPPEN WE'RE NOT
NECESSARILY SUGGESTING THAT
YOU'RE GOING TO DIP INTO YOUR
RESERVE TO KEEP YOUR OPERATIONS
GOING YEAR AFTER YEAR AFTER
YEAR EVERYONE IN THIS ROOM
KNOWS THAT'S NOT SUSTAINABLE.
BUT YOU NEED TO DISCLOSE THAT
INFORMATION SO YOU CAN HAVE THE
CONVERSATION THE LEGISLATURE
CAN BE FULLY INFORMED THE BOARD
OF TRUSTEES CAN BE FULLY
INFORMED BEFORE MAKING
IMPORTANT DECISIONS ABOUT
PROCREATION AMOUNTS DECISIONS
ABOUT WHETHER OR NOT TO
INCREASE TUITION. WE ALSO MADE
SIMILAR RECOMMENDATIONS TO THE
CHANCELLOR'S OFFICE THAT THE
PUBLISHED IN IT THIS
INFORMATION ON ITS WEBSITE WE
TALK IN THE REPORT AND THEY
WILL AND I ALL LIKELIHOOD
MENTION THE PORTAL THAT THEY
RECENTLY LAUNCHED. IN MAY OF
THIS YEAR SHORTLY AFTER WE
SHOULD OUR AUDIT REPORTER
SHORTLY BEFORE IN AND IT'S
HELPFUL WE DO SAY IT'S NOT IT
DOESN'T HAVE SPECIFIC ENOUGH
INFORMATION IT'S A STEP IN THE
RIGHT DIRECTION ABSOLUTELY. BUT
THERE NEEDS TO BE MORE THERE
NEEDS TO BE MORE SPECIFICITY
ABOUT THE SOURCE OF THE VARIOUS
REVENUE REVENUE THAT'S
GENERATED THE SOURCE OF THE
ACTUAL SURPLUS WHAT IS FEEDING
INTO THAT SURPLUS. REPORTING
ANNUALLY TO THE BOARD OF
TRUSTEES ENSURING THE
INFORMATION IS EASILY
ACCESSIBLE ON THE WEBSITE TOOK
JUST A LOT ABOUT TRANSPARENCY
AND BEING VERY VERY SPECIFIC.
SO THAT'S KIND OF A HIGH LEVEL
DISCUSSION OF THE ISSUES WE HAD
WITH RESPECT TO THE SURPLUS
THAT WE BELIEVE THE ONE POINT
FIVE BILLION THAT THEY DID NOT
FULLY DISCLOSE. OUGHT TO
STAKEHOLDERS THE LEGISLATURE
AND STUDENTS IN PARTICULAR THE
OTHER ASPECT OF THE AUDIT THAT
THAT IS QUIRK SILVA ASKED US TO
LOOK AT WAS PARKING AND WHETHER
OR NOT THE CSU SYSTEM WAS
REALLY DOING A GOOD JOB OF NOT
ONLY PLANNING FOR PARKING
FACILITIES. BUT CONSIDERING
ALTERNATE MODES OF
TRANSPORTATION OTHER OPTIONS
FOR STUDENTS TO BE ABLE TO
ACCESS THEIR RESPECTIVE
CAMPUSES AND WE FOUND THAT WE
VISITED FOUR DIFFERENT
UNIVERSITIES CHANNEL ISLANDS
FULLERTON SACRAMENTO AND SAN
DIEGO AND WE REALLY FOUND THAT.
BASICALLY A LOT OF THE
UNIVERSITIES WERE JUST.
ESSENTIALLY DECIDING THEY
NEEDED TO BUILD FACILITIES AND
THEY WEREN'T REALLY DOING THEIR
DUE DILIGENCE AS FAR AS MAKING
SURE THEY WERE LOOKING FOR
OTHER OPTIONS. AND INCLUDING IN
THEIR PLANS HERE THE
ALTERNATIVES THAT WE CONSIDERED
HERE THE THINGS THAT WE ARE OR
TRYING TO IMPLEMENT. THOSE IN
CONJUNCTION WE STILL NEED TO
BUILD FACILITIES. WE WEREN'T
SEEING ROBUST ANALYSIS WITH
RESPECT TO THAT WE ALSO SAW
THAT SOME OF THE FACILITY SOME
OF THE CAMPUSES CHOSE TO BUILD
FACILITIES. THAT RESULTED IN
STUDENTS PAYING HIGHER PERMIT
FEES AND AS AS MR SALAS
MENTIONED THAT SAN DIEGO STATE
THE STUDENTS ARE PAYING. HIGHER
PERMIT FEES FOR FACILITY THAT
WAS CONSTRUCTED THAT THEY DO
NOT HAVE THAT NOT HAVE THE
AUTHORITY TO USE. IT'S A
FACILITY THAT WE WAS BUILT FOR
OTHER PURPOSES SINCE STUDENTS
CAN'T EVEN USE IT YET THEIR
FEES WENT UP TO PAY FOR IT. SO
THAT WAS A CONCERN THAT WE
IDENTIFIED IN THE REPORT. AGAIN
THE FEES HAVE GONE UP
SIGNIFICANTLY ABOUT 60% AT A
COUPLE CAMPUSES. THE CAPACITY
HAS INCREASED BUT ENROLLMENT
HAS OUTPACED THAT SO REALLY THE
UNIVERSITY SYSTEM NEEDS TO TAKE
A HARDER LOOK AT SOME OF THESE
ALTERNATIVE OPTIONS. THERE ARE
SOME CAMPUSES THAT WE THINK ARE
DOING A PARTICULARLY GOOD JOB
SACRAMENTO STATE HERE AND IN
SACRAMENTO. REALLY HAS DONE A
PRETTY GOOD JOB OF LOOKING AT A
VARIETY OF DIFFERENT OPTIONS.
THEY COLLECT DATA WITH RESPECT
TO THE USE OF THEIR PARKING
FACILITIES THEY NEED TO DO A
BETTER JOB OF ANALYZING SOME OF
THAT DATA. BUT WE THINK THEY
THEY HAVE DONE A BETTER JOB
THAN SOME OF THE OTHER CAMPUSES
THAT WE VISITED. A COUPLE OF
OTHER ISSUES AND I'LL I'LL GO
TO THE RECOMMENDATIONS REAL
QUICK AND THEN I'LL HAVE
MYSTICALLY SO STEP YOU THROUGH
THE GRAPHICS. IS THE THERE'S A
REQUIREMENT THAT EACH OF THE
CAMPUS HAVE AN ALTERNATIVE
TRANSPORTATION COMMITTEE. AND
THAT COMMITTEE SHOULD INCLUDE
REPRESENTATIVES OF STUDENTS
FACULTY STAFF FROM THE
UNIVERSITY. OF THE RESPECTIVE
UNIVERSITY WE DIDN'T SEE THAT
AT EVERY SINGLE INSTITUTION WE
ALSO DIDN'T SEE THERE WASN'T A
LOT OF GUIDANCE AS TO. THE MAKE
UP OF THE COMMITTEE HOW OFTEN
THE COMMITTEE SHOULD MEET. WE
FOUND THAT SOME CAMPUSES THERE
THE COMMITTEES WERE NOT MEETING
REGULARLY SO THEY NEED TO DO A
BETTER JOB OF REALLY FOCUSING
ON SOME OF THE OPTIONS WITH
RESPECT TO. TRYING TO IDENTIFY
ALL ALTERNATIVE TRANSPORTATION
MODES ALTERNATIVE WAYS FOR
STUDENTS TO GET THE CAMPUS. ONE
DIFFICULTY THAT WE ACKNOWLEDGE
IN THE REPORT IS THE REVENUE
STREAM. FOR ALTERNATIVE
TRANSPORTATION PROGRAMS THEY
ARE SOMEWHAT LIMITED THEY CAN
USE PARKING FINES. SO YOUR
STUDENTS COME THE CAMPUS THEY
PARK AND THEY GET. A TICKET
THEY'RE FINE FOR BEING PARKING
IN THEIR PRO INAPPROPRIATE
SPACE. THAT'S THE MONEY THAT
THE CAMPUS IS AT THIS POINT ARE
ABLE TO USE. TO FIND SOME OF
THOSE ALTERNATIVE PROGRAMS TO
THE EXTENT THEY HAVE ANY
PARKING REVENUE. A LEFT OVER
FROM PAYING FOR MAINTENANCE AND
THEIR FACILITIES THEIR THEIR
DEBT BECAUSE OFTEN TIMES ARE
TAKEN OUT OF BOND. NOT TO PAY
FOR THE FACILITY IF THERE IS
SOME SURPLUS REVENUE THEY CAN
USE SOME OF THAT FOR THE
ALTERNATIVE. TRANSPORTATION
PROGRAMS AND SOME OF THE CAMPS
IS DO YOU HAVE A SURPLUS IN
THOSE. SO THEY COULD USE SOME
OF THAT MONEY BUT IT'S NOT HUGE
IT'S NOT A HUGE AMOUNT OF
MONEY. OUGHT TO PUT TOWARDS.
THESE ALTER OUR TRANSPORTATION
PROGRAMS. SO QUICKLY SOME OF
THE RECOMMENDATIONS WE MADE
WITH RESPECT TO THIS IS JUST
REALLY DEVELOPING MORE ROBUST
TRANSPORTATION PLANS THE
CHANCELLOR'S OFFICE MAKING SURE
THAT. THE VARIOUS INSTITUTIONS
THAT ARE CONSIDERING BUILDING
NEW PARKING FACILITIES HAVE
LOOKED AT ALTERNATIVE PROGRAMS
THEY'VE TRIED TO IDENTIFY WHAT
THOSE ALTERNATIVE
TRANSPORTATION PROGRAMS WOULD
BE WHAT WHAT IMPACT WOULD THAT
HAVE ON THE CAMPUS HOW MUCH
WOULD THAT HELP. IS THERE STILL
IN NEED TO BUILD THE PARKING
FACILITY SO WE HAVE ALL A LOT
OF RECOMMENDATIONS AROUND THAT
AS FAR AS COLLECTING DATA WHICH
AS I SAID SOME CAMPUSES DO. BUT
THEY NEED TO DO A BETTER JOB OF
ANALYZING THE DATA BEFORE THEY
TAKE THE NEXT STEP. IN MAKING A
DETERMINATION AS TO WHETHER OR
NOT THEY NEED TO BUILD A
FACILITY AND HOW HELPFUL WOULD
THAT BE. SO I'M NOT GOING TO
BELABOR GOING INTO ALL OF THE
RECOMMENDATIONS I CERTAINLY CAN
ANSWER ANY QUESTIONS MEMBERS
MAY HAVE I'M GOING TO HAND IT
OVER TO MISTER KHALID CELLS. HE
IS GOING TO STEP YOU THROUGH ON
THAT JUST A THREE PAGE.
GRAPHICS AND THAT WE HAVE THAT
HOPEFULLY WILL WILL ILLUSTRATE.
IN A LITTLE BIT BETTER FORM.
OUR CONCERNS WITH RESPECT TO
DISCLOSURE AND THEN CERTAINLY
OUR CONCERNS WITH RESPECT TO
THE RESERVE POLICIES THAT CSU
CURRENTLY HAS. THANK YOU. GOOD
AFTERNOON SIR CHAIR PLEASE
COMMITTEE CHAIRS. I'M THE
CLETUS WITH THE I'M SOURS
OFFICE. WHAT I WANT TO DO IS
WALK YOU THROUGH OUR HANDOUTS
WHERE I'M TO DISCUSS. THE ONE
POINT FIVE BILLION DOLLAR
DISCRETIONARY SURPLUS WHICH IS
PRIMARILY FROM TUITION. AND
DECEMBER CONCERNS RELATED TO
DISCLOSURE. AND SOME OF OUR
CONCERNS RELATED TO SEE ISSUES
RESERVE POLICY. IF YOU COULD
TURN TO PAGE TWO OF THE HAND
OUT. SO WHAT PAGE TWO SHOWS IS
BASICALLY THE VARIOUS REPORTS
AS IT RELATES TO ITS OUTSIDE
VESTMENTS INFORMATIONS IS WHERE
THE SURPLUS FUNDS ARE ARE BEING
HELD. AND IF THE QUESTION IS IF
YOU MAKE FUNDING DECISIONS FOR
CONSIDER RAISING TUITION. THE
QUESTION IS HOW MUCH OF THIS
AMOUNT IS BASICALLY
DISCRETIONARY OR OR AVAILABLE
FOR ITS BASIC OPERATIONS. YOU
KNOW HOW MUCH THE FROM FINDING
IS RELATED TUITION AND HOW MUCH
OF IT HAS GROWN OVER TIME HOW
MUCH OF HIS RESERVE. NONE OF
THESE REPORTS WOULD HAVE THAT
KIND OF INFORMATION WHICH WE
BELIEVE WOULD BE RELEVANT IN
THOSE TYPE OF DECISIONS. THE
FIRST TWO ROWS BACKING
SUSTAINABILITY PLANET TUITION
PROPOSAL FOR CONSIDERATION.
BASICALLY THOSE ARE THE TWO
REPORTS THAT WE DISCUSSED IN
THE REPORT THAT WHERE CC DO NOT
TO FULLY DISCLOSE THAT
INFORMATION. THAT WE FELT WAS
RELEVANT TO WIN CONSIDERING.
FUNDING INCREASES OR RACES INTO
TUITION. THERE'S THREE REPORTS
ON A REGULAR THOSE IN THE
BOTTOM THREE NOT BASICALLY
THESE ARE. PRETTY ROUTINE I
FINANCIAL REPORTS THAT CSU AYE
PROVIDES. BASICALLY WHAT THOSE
REPORTS SHOW IS THAT TOTAL
INVEST IN BALANCE AND IT'S
BASICALLY THE FOUR FOUR BILLION
DOLLAR INVESTMENT BOUNCE WHICH
IS BASICALLY A MIX OF.
RESTRICTED FUNDS AND
DISCRETIONARY FUNDS WAS NOT
BROKEN OUT IF YOU WANT TO KNOW
HOW MUCH OF IT WAS AVAILABLE
FOR ITS GENERAL OPERATIONS. IT
DOES NOT SHOW DISCRETIONARY NOW
TOWARD THE FACT THAT IT COMES
FROM TUITION. OR THOSE OTHER
FACTORS THAT WOULD THAT WOULD
BE SAY RELEVANT ALL THAT
INFORMATION SHOULD HAVE BEEN
DISCLOSED IN THE TWO DOCUMENTS
THAT WAS IN THE FIRST TWO ROWS
THAT WE DISCUSSED IN THE
REPORT. BECAUSE THAT'S WHERE.
THAT THAT'S WHAT CONSIDERATIONS
WERE MONEY OR WHETHER CITY
POTENTIAL CUTS TO SERVICES. SO
WE RECOMMENDED THAT C. I. C. S.
YOU BE DISCLOSING THAT HAVE
INFORMATION TO ADD THE
LEGISLATURE INTO STUDENTS WHEN
CONSULTING FOR TUITION
INCREASES. YOU TURN TO PAGE
THREE. ONE OF THINGS THAT CSU
HAS INDICATED. IS THAT IT
CONSIDERS THIS ONE POINT FIVE
BILLION DOLLARS AS RESERVE YOU
KNOW IT'S SIMILAR TO A RAINY
DAY FUND. HOWEVER WHAT OUR
CONCERN IS IF CSU REALLY WANT
TO CONSIDER THIS RESERVE
RELEASED OVER HOLLIS WAS OUR
POLICY NOW ONE OF THE MODELS
THAT TO IT I COULD USE. IS THE
STATE THE STATE ECONOMIC
CORPORATE SPERRY'S BEST
PRACTICES RELATED TO ITS
RESERVES. THAT WITHOUT THAT CC
DOES NOT HALF OF FOR EXAMPLE
THE STATE HAS A REGULAR AND
REGAIN YOUR REPORTERS ARE
BALANCES. IT ALSO IS VERY CLEAR
HOW MUCH OF THE RESERVE IS
AVAILABLE FOR GENERAL PURPOSES.
HOW MUCH OF IT IS IT SHOULD BE
IN THE MINIMUM CONTRIBUTIONS
FOR ITS RAINY DAY FUND. HOW
MUCH UNDER WHAT CIRCUMSTANCES
CAN STATE USE THIS FUNDS IN
CASE OF A BUDGET EMERGENCY.
THESE ARE ALL THINGS THAT CSU
DOES NOT HAPPEN THIS WAS OUR
POLICY DOES NOT HAVE. FOR
EXAMPLE INDICATE HOW MUCH OF A
SURPLUS IS AVAILABLE FOR
DISCUSSION PURPOSES MINIMUM
LEVEL FOR CONTRIBUTIONS OR
MINIMUM BALANCE. IT DOES NOT
HAVE A ADDITIONAL APPROVAL IF
HE. NEEDS TO USE IT'S A RESERVE
FOR ECONOMIC UNCERTAINTIES.
THESE ARE ALL BASIC FOR PRETTY
STANDARD WHO'S OUR PRACTICES.
THAT WE NOW WE SEE THAT THE
STATE HAS WE SEE THE OTHER
UNIVERSITIES HAVE. AND WE ALSO
EVEN SEE THAT CALIFORNIA STATE
STUDENTS ASSOCIATION THE
ACCESSORIES ARE POLICY AND YOU
HAVE A LOT OF THE SAFEGUARDS
THIS UC'S NOT HAVE. SO WHAT WE
RECOMMEND IS THIS YES YOU I'M
VISITS RIVER USER POLICY IN
STRENGTH IN IT. SO THEY COULD
DEMONSTRATE HOW ARE THEY YOU
KNOW ENSURING THAT TUITION IS.
SAYS SIDE APPROPRIATELY. OR AND
PUT US USE. I'D BE HAPPY TO
ANSWER ANY QUESTIONS. THANK YOU.
ANYTHING FROM THE LA OR JUST
HERE TO ANSWER QUESTIONS THAT'S
RIGHT POLICY KNOWS IN WITH
ANALYST'S OFFICE BUILDING
ANSWER QUESTIONS YOU MIGHT HAVE
ALL RIGHT THANK YOU THANK YOU
FOR THE PRESENTATION WAS GOING
TO JUST MOVE INTO QUESTIONS YOU
NOTICE HOW YOU GAVE FOR BOTH OF
YOU GAVE US A LOT OF
INFORMATION BUT LET ME JUST
BEGIN WITH JUST THE HEADLINES
THAT WE SAW IN THE PAPERS.
RIGHT THAT WOULD BASICALLY
STATED THAT THE ONE CS USE
HIDING ONE POINT FIVE BILLION
WHILE SIMULTANEOUSLY RAISING
TUITION ON STUDENTS SEEN IRATE
LATER READ MORE ARTICLES AYE
HEADLINE STATING THE CSU
DISPUTED THE CHARACTERIZATIONS
OF ITS RESERVES IN THIS OP
MEDIA REPORTS USING THE WORD
SUCH AS MISLEADING AND MIS
CHARACTERIZED SO I JUST WOULD
LIKE TO HEAR FROM YOU MISS HOW
REGARDING YOU KNOW HOW YOU HOW
YOU IN THE MEDIA TRADE THIS ONE
POINT FIVE BILLION WAS A BUDDY
HIT AND HAVE THESE FUNDS. BEEN
PROPERLY CHARACTERIZE LET'S
JUST. THE ELEPHANT IN THE ROOM.
CERTAINLY THANK YOU MISTER
CHAIR AND YOU WILL NOT FIND THE
WORD HIDDEN IN OUR AUDIT REPORT
THAT IS THE SAME TERMINOLOGY
THAT THE MEDIA USE WHEN WE
ISSUED THE U. S. YOU SEE REPORT
AND WE DIDN'T USE HIDDEN IN
THAT EITHER WE ARE NOT
SUGGESTING THAT THEY HAVE
HIDDEN. ANY FUNDS WHAT WE'RE
SAYING AND THAT'S WHY WE WERE
CAREFUL ABOUT HOW WE DESCRIBE
IT WE'RE SAYING THEY DID NOT
FULLY DISCLOSE THE ONE POINT
FIVE BILLION IF YOU LOOK AT THE
GRAPHIC THAT MR COOLEY TO US
WAS TALKING ABOUT YOU SEE THE
GREEN CHECK MARKS. THOSE ARE
THE THREE REPORTS THAT THE CSU
ASSERTED THEY ASSERTED THEY
THEY GAVE US THIRTY REPORTS
IT'S THOSE THREE REPORTS EACH
OF THEM THEY GIVE US TEN YEARS
WORTH SO IT'S THIRTY BUDGETARY
LEGAL BASIS ONE FOR EACH OF THE
TEN YEARS THAT WE LOOKED AT
ANNUAL INVESTMENT REPORT IN
THOSE REPORTS THEY DO DISCLOSE
FOUR BILLION DOLLARS WHAT THEY
DO NOT DISCLOSE IS. THE
COMPOSITION OF THE FOUR BILLION
DOLLARS THAT TWO BILLION IS
RESTRICTED SOME VERY SPECIFIC
PURPOSES STUDENT HOUSING
STUDENT DEVELOPED A STUDENT
HOUSING THAT STUDENT STUDENT
CENTER THOSE TYPES OF THINGS
NOR DID THEY DISCLOSE THAT
THERE WAS ANOTHER TWO BILLION
DOLLARS THAT WAS MORE
DISCRETIONARY FUNDING WE TOOK
OUT THE FOUR HUNDRED MILLION
THAT THEY WERE SUGGESTING IS.
RESERVE FOR ECONOMIC
UNCERTAINTY WE WANT TO
ACKNOWLEDGE THAT AND THAT'S
WHERE WE CAME UP WITH A ONE
POINT FIVE ALMOST ONE POINT SIX
BILLION DOLLARS WHERE WERE
SUGGESTING THEY NEED TO BE MORE
TRANSPARENT IS WHEN THEY SHARE
IF YOU LOOK AT THAT GRAPHIC THE
TUITION PROPOSAL FOR
CONSIDERATION THAT'S UNDER THE
WORKING FAMILIES TRANSPARENCY
ACT WHERE THEY'RE SUPPOSED TO
SHARE INFORMATION WITH
STUDENTS. PRIOR TO RAISING
TUITION SO THAT THE STUDENTS
CAN BE ENGAGED IN THAT
CONVERSATION AND PROVIDE
ALTERNATIVES TO RAISING TUITION.
AND THEY DIDN'T DO THAT THEY
STAY SUGGESTED TO THE STUDENTS
WE THEIR NET NEED TO GET MORE
MONEY FROM THE STATE OF
CALIFORNIA OR WE NEED TO RAISE
TUITION OTHERWISE WE'RE GOING
TO HAVE TO CUT PROGRAMS WHERE
WE MAY. NOT BE ABLE TO GET
STUDENTS GRADUATED WITHIN THE
FOR FIVE YEARS AT A TARGET.
THAT CERTAIN STUDENTS HAVE IN
THAT THE UNIVERSITY HAS IN THE
STATE OF CALIFORNIA HAS. BY NOT
DISCLOSING THAT INFORMATION IT
PRECLUDED THE ABILITY TO HAVE
THAT CONVERSATION THAT WHY
CAN'T YOU DIP INTO THAT
RESERVE. THIS YEAR WE KNOW IT'S
NOT SUSTAINABLE AND WE WOULD
NOT ARGUE THAT YOU WANT TO DIP
INTO YOUR RESERVE YEAR AFTER
YEAR AFTER YEAR. BUT YOU DIDN'T
EVEN ALLOW TO HAVE THE
CONVERSATION THAT'S OUR CONCERN
WE'RE NOT SUGGESTING. THEY'RE
HIDING MONEY. WE CAN USE THAT
TERM BUT WE CERTAINLY FEEL THAT
THEY COULD BE. MORE TRANSPARENT
IN DISCLOSURE OF THE FUNDS THAT
THEY HAVE. SO YOU WOULD JUST
SAY THAT YOU WANT MORE
TRANSPARENCY MORE DISCLOSURE
SHOW ALL THE CARDS ON THE TABLE
TO MAKE THE CORRECT POLICY
IMPLICATIONS AND SORT OF. A
POSSIBLE CATIONS WILL MAKE YOUR
LEGISLATURE RIGHT SO THE
CONVERSATION CAN HAPPEN ONE OF
THE THINGS THAT THAT WHEN I WAS
WATCHING SOME OF THE BOARD OF
TRUSTEE MEETINGS. SOME OF THE
BOARD OF TRUSTEE MEMBER SAID WE
NEED TO HAVE. CONVERSATIONS
BECAUSE WE HAVE TO MAKE IT'S
ALL ABOUT CHOICE. WE HAVE TO
MAKE CHOICES DO WE CHOOSE AND
THEY DIDN'T HAVE THE DISCUSSION
BECAUSE THEY DIDN'T GET INTO.
HOW MUCH WAS IN RESERVE THERE
WASN'T DISCLOSURE TO THE
TRUSTEES AT THAT PARTICULAR
MEETING I WATCHED. THAT WE HAVE
ONE POINT FOUR BILLION DOLLARS
IN IN A RESERVE ACCOUNT OR IN
OUR INVESTMENT ACCOUNT. BUT BUT
IT WAS A DISCUSSION ABOUT WE
HAVE TO MAKE VERY DIFFICULT
CHOICES AND SOMETIMES WE MAKE
MAKE DECISIONS TO INCREASE
TUITION. BECAUSE WE DON'T WANT
TO CUT PROGRAMS OUR CONCERN IS
YOUR ONLY HEARING. PART OF THE
INFORMATION TO BE ABLE TO MAKE
THAT INFORMED DECISION AND TO
MAKE THE BEST CHOICE. IN THE
INTEREST OF THE STUDENTS TO THE
STATE OF CALIFORNIA AND
CERTAINLY THE PEOPLE AS THEY TO
CALIFORNIA WITH RESPECT TO OUR
CSU SYSTEM. THANK YOU I
APPRECIATE YOU BREAKING DOWN
THE FOUR BILLION. EXACTLY HOW
THAT. IS DIVIDED UP NOW EARLIER
WE HAD TALKED ABOUT AND THE
REASON WHY THIS IS RELEVANT TO
THIS. HOW DO WE KNOW THAT.
THERE WAS TUITION MONEY THAT
CONTRIBUTED TO. TO THE SURPLUS
RIGHT AND MR CLETUS CAN ASSIST
ME WITH THIS BUT BUT IT'S MY
UNDERSTANDING AS I SAID THE
STATUTE THAT ALLOW THE CSU OR
GAVE THE CSU MORE AUTHORITY TO
INVEST IN OUTSIDE ACCOUNTS. AND
CERTAINLY INVEST IN AND HIGHER
RISK SECURITIES AND HOPEFUL AND
HOPES THAT WE WOULD GET BETTER
RETURNS AS A STATE. PRECLUDED
CSU FROM USING ANY GENERAL FUND
APPROPRIATION MONEY. IN PUTTING
THAT MONEY INTO THE INVESTMENT
ACCOUNTS SO THE CSU. USES ARE
THE GENERAL FUND APPROPRIATION
THAT THEY RECEIVE AND IT'S MY
UNDERSTANDING THEY USE ONE
TWELFTH EACH MONTH. SO IT'S
BASICALLY EXHAUSTED BY THE END
OF THE YEAR SO. MOST OF THE
REMAINING MONEY. IS TO BE AS
TUITION AND FEES THAT STUDENTS
PAY SO WE ARE WE ARE CONFIDENT
THAT THAT MUCH OF THE MONEY IN
THE ONE POINT FIVE BILLION
DOLLAR. SURPLUS IS FROM TUITION
IT CANNOT IT'S IMPOSSIBLE FOR
IT TO BE FROM GENERAL FUND
APPROPRIATION THERE CERTAINLY
EARN SOME INTEREST. AND THERE
ARE SOME SOME PARAMETERS AROUND
WHAT THEY CAN USE THE INTEREST
EARNED FOR THAT CAN BE USED FOR
CAPITAL OUTLAY. AND THOSE TYPES
OF PURPOSES BUT FOR GENERAL
OPERATIONS THEY DO HAVE TUITION
MONEY IN THAT SURPLUS ACCOUNT.
IN THE IN THE ONE POINT FIVE
BILLION WE'RE CONFIDENT OF
THAT. OKAY SO YOU WERE JUST
ABLE TO DO THIS BECAUSE YOU
CAN'T USE GENERAL FUND RIGHT IN
OUTSIDE ACCOUNTS THIS IS WHAT'S
LEFT OVER THERE FOR. THIS HAD
TO COME FROM TUITION CORRECT.
GOT IT RIGHT. HAVE ADDITIONAL
QUESTIONS BUT I KNOW CENTER
MONEY AS A QUESTION ON THIS
ISSUE. WELL THANK YOU MISTER
CHAIR IN. CO CHAIRS. OF THE
VARIOUS COMMITTEES. SO ON I
THINK THE- AUDITOR AND YOUR
TEAM FOR YOUR WORK ON THIS. IN
A RE FREEZE I THINK A QUESTION
THE CHAIR ASKED BUT IN YOUR
CONCLUSIONS. WAS THERE ANY
FINDING OF A VIOLATION OF LAW
IN ANY OF YOUR CONCLUSIONS NOW
WE DID NOT FIND ANY VIOLATION
OF LAW AS WE SAID WE FELT THAT
IT AND WE EXPLAIN IN THE REPORT
THAT THEY DID. MANAGE THE
OUTSIDE ACCOUNTS APPROPRIATELY
THEY HAVE THE APPROPRIATE
SAFEGUARDS IT CETERA SO WE DID
NOT FIND ANY EVIDENCE OF ANY
VIOLATIONS OF ANY LAW. SO LET'S
TURN NOW TO ACCOUNTING
PRACTICES IN LOOKING AT THAT
GRAPHIC OKAY IT LOOKS LIKE YOU
USE. AS. A BASIS OF COMPARISON
STATE OF CALIFORNIA STANDARDS.
IN RECORD KEEPING. OF ACCOUNTS
THAT ARE NOT FOLLOWED BY SEE
ISSUE. HOW WOULD YOU DESCRIBE
FROM AN ACCOUNTING POINT OF
VIEW WE'VE TALKED ABOUT
TRANSPARENT SEEN YOU'VE SHARED
THAT. BUT WOULD YOU HAVE A
JUDGMENT AS TO THE ACCOUNTING
PRACTICES USED OR NOT USED WELL
WITH RESPECT TO THE RESERVE
POLICY. AS AS MISTER KHALID SO
SYNDICATED THEY REALLY NEED TO
STRENGTHEN IN HIS WORDS I THINK
IT'S A GREAT WORD OVERHAUL
THEIR RESERVE POLICY SO THEIR
ACCOUNTING PRACTICES WITH
RESPECT TO THEIR RESERVES. NOT
THAT THEY'RE NOT ACCOUNTING FOR
THE MONEY APPROPRIATELY BUT
THEY DON'T HAVE THE APPROPRIATE
PARAMETERS AROUND HOW MUCH
NEEDS TO BE AND THE RESERVE FOR
ECONOMIC UNCERTAINTY WHAT'S THE
MINIMUM AMOUNT WE IF WE AS A
CAMPUS NEED TO PUT IN THERE
BECAUSE A LOT OF CAMPUSES. IT
YOU KNOW CONTRIBUTE MONEY TO
THE INVESTMENT ACCOUNTS HOW
MUCH MONEY TRIGGERS AND A
MAXIMUM IF WE HAD A MAXIMUM
SIMILAR WHAT STATE OF
CALIFORNIA'S THERE'S A REVENUE
REDUCTION OR TUITION CUT OR
SOME OTHER CHANGE. SO AS FAR AS
CHARACTERIZING THEY'RE NOT
NECESSARILY VIOLATING
ACCOUNTING PRACTICES BUT THEY
DON'T HAVE THE STRONGEST BEST
PRACTICES IN PLACE THAT WE
BELIEVE THEY SHOULD HAVE LIKE
THE STATE OF CALIFORNIA PUT IN
PLACE WHEN IT CREATED THE RAINY
DAY FUND. AND THE RESERVE FOR
ECONOMIC UNCERTAINTY THANK YOU
THAT'S HELPFUL THANK YOU MISTER
CHAIR I DO LOOK FORWARD TO
HEARING. FROM THE UNIVERSITY
AND OTHER STAKEHOLDERS WHO ARE
HERE TODAY I THINK. I THINK WE
ALL SHARE AN ASPIRATION THAT
THIS WILL LEAD. THE LEGISLATURE
AND SEE ISSUE TO A BETTER
UNDERSTANDING. OF HOW THE
TRANSPARENCY IS TRANSLATE A
BALL TO ALL STAKEHOLDERS ON WHO
BENEFIT FROM THE UNIVERSITY
THANK YOU THANK YOU AND I
APPRECIATE THAT AND I THINK
THAT'S WHAT EVERYONE'S TRYING
TO UNDERSTAND IS THE BUDGET AND
WHICH ONES TUITION FUNDS AND
WHETHER TUITION FUNDS WERE USED
TO CREATE. A SURPLUS AT THE
SAME TIME TUITION WAS GOING UP.
SO WITH THAT WOULD MOVE TO THE
A QUESTION BY SOMEONE MEMBER
BEEN DENIED THAT TO SENATOR PAT.
QUESTION TO A MISS HOUSE HAVING
SERVED AS A SCHOOL BOARD MEMBER
AND COMMUNITY COLLEGE TRUSTEE
WE OFTEN TALK ABOUT MAINTAINING
RESERVES IN ORDER TO MITIGATE
VOLATILITY AND FUNDING CASH
FLOW SAVE FOR LARGE PURCHASES
OBTAIN HIGHER CREDIT RATING AND
OTHER PURPOSES. COULD YOU
EXPLAIN TO ME AND TO COMMITTEE
HERE WHAT THE DIFFERENCES
BETWEEN RESERVES AND WOULD YOU
CHARACTERIZE AS SURPLUS AS
ACCUMULATED BY THE SEA ISSUE OR
ARE THE TERMS INTERCHANGEABLE.
I'M SO ARE WE IT WAS SURPLUS
BASICALLY IS ALL THE MONEY THAT
TNCS VESTMENT ACCOUNTS THESE
ARE SURPLUS FUNDS ANYTIME CSU
DOES NOT NEED TO USE THAT MONEY
FOR ITS KERN OPERATIONS A GOES
TO THESE ACCOUNTS IN THE ACCRUE
INTEREST. AND THAT'S BASICALLY
WHAT SURPLUS. CSU. HAS CHOSEN
TOO YOU KNOW OKAY ACOSTA
WITHOUT A RESERVE AND BASICALLY.
WHICH IS FINE BUT WHAT WE'RE
SAYING IS THAT IF YOU COULD
CALL THAT A RESERVE YOU HAVE
SERVICE SAFEGUARDS IN PLACE
WHERE IT'S BASICALLY. ARE
PROTECTED TO ENSURE THAT IT'S
ONLY IF IT'S A RAINY DAY FUND
IT'S ONLY USED FOR. IN A BUDGET
EMERGENCY THAT'S ONLY USED FOR
AB DOESN'T NAY PURPOSES WE HAVE
NOT SEEN THOSE KIND OF
SAFEGUARDS IN PLACE INTO USE
USERS ARE POLICY. THANK YOU
MOVED SENATOR AND THEN THE
SENATE ROBINSON YOUR LEYVA. I
THANK YOU I APPRECIATE THE
PRESENTATION FROM THE HONOR I
JUST WANT TO CLARIFY SOMETHING
YOU SAID YOUR TESTIMONY YOU.
AND I DON'T REMEMBER. PRECISELY
THE NUMBERS YOU READ BUT YOU
MADE MENTION THAT THE. TUITION
INCREASES SUPPLIED ABOUT WAS IT
EIGHTY SOME MILLION THEIR
TUITION INCREASE FOR SEVENTEEN
EIGHTEEN GENERATED
APPROXIMATELY SEVENTY EIGHT
MILLION DOLLARS. OKAY AND THE
RESERVE GREW OR THE IT COULD
APPROXIMATELY I THINK IT WAS
ABOUT SIXTY FIVE MILLION
DOLLARS AT SAME TIME FRAME OKAY
SO THIS IS SEVENTEEN EIGHTEEN
SO CORRECT POSTS IS RECESSION
BUT STILL. SO STILL THE. WHAT
THE TUITION INCREASE
ESSENTIALLY FUNDED THE I MEAN
THAT IT IT SOUNDS LIKE THE
TUITION INCREASE THE PORTION
WELLS DOUBTS FAIRLY DEVELOPED
LET'S VISIT THE PORTION OF THE
TUITION INCREASE THAT WENT. TO
I GUESS IMPROVING OPERATIONS OR
WHATEVER LISTS. WAS SAID TO DO
IS ACTUALLY A VERY SMALL
PORTION OF WHAT WAS OF THE TO
INCREASE THAT WAS SPENT ON THAT
POTENTIALLY POTENTIALLY THAT
THAT'S CORRECT I MEAN WE'RE
LOOKING AT AND A YEAR NUMBERS
AND THERE'S FLUCTUATION
THROUGHOUT THE YEAR BUT BUT IT
STRUCK ME WHEN I WAS LOOKING AT
THE SPECIFIC NUMBERS. I'M AND
THEY DO LEARN SOME SOME
INTEREST ON THE ACCOUNTS BUT IT
WAS IT WAS INTERESTING TO SEE
THAT YOU HAVE ONE POINT FIVE
BILLION DOLLARS IN. THIS
SURPLUS ACCOUNT. YOU RAISE
TUITION TO GENERATE SEVENTY
EIGHT MILLION DOLLARS AND YOUR
RESERVE ACCOUNT WENT UP. AND
MOST OF THE FUNDING THAT GOES
INTO THOSE THIS SURPLUS AS WE
REFER TO IT AND AN
INTERCHANGEABLE I MEAN ONE OF
THE- THE ANSWERS TO YOUR
QUESTION MISTER MEDINA IS.
THERE ISN'T SPECIFIC PARAMETERS
THAT CSU AS LAID OUT AS FAR AS
HOW MUCH SHOULD BE A RESERVE
FOR ECONOMIC UNCERTAINTY HOW
MUCH SHOULD BE RESERVED FOR
VARIOUS PURPOSES THAT'S WHY.
WE'RE SAYING YOU HAVE ONE POINT
FIVE BILLION DOLLARS ARE ON TWO
BILLION DOLLARS IN SURPLUS.
HELLO ESTABLISH THOSE
PARAMETERS A STELLAR THE
MINIMUMS THAT YOU WANT
ESTABLISH THE MAXIMUM OKAY THAT
SHOULD TRIGGER REDUCTION. SO I
DON'T MEAN TO GO BACK TO HIM
BUT BUT CENTER PAN THAT'S-
THAT'S WHAT STRUCK ME WHEN I
WAS LOOKING AT THE INFORMATION
IT'S LIKE. AND THE CONCERNED
THE REASON WE HAVE THE
CONCERNED ABOUT NOT FULLY
DISCLOSING THIS INFORMATION TO
THE LEGISLATURE. AND CERTAINLY
TO THE STUDENTS SO THAT THERE
COULD BE A DISCUSSION. WE ARE
GOING TO GENERATE SEVENTY EIGHT
MILLION DOLLARS IF WE RAISE
TUITION FOLLOW QUESTION SO.
THIS WAS NOT DISCLOSED TO THE
STUDENT GROUP THAT. WHEN THAT
THAT IT'S BEST WITH THIS WELL
LET'S WAS A- I WAS IT SUPPOSED
TO BE THIS CLOSE TO BUT WAS NOT
BROUGHT UP IN A DISCUSSION WHEN
THEY'VE SAID WELL WE A PROPOSED
TO INCREASE TUITION AND DATE IN
EXPLAINED THAT PART I MEAN
THERE'S THERE ARE SOMETIMES YOU
KNOW. TUITIONS ONE OF THE
SOURCES OF REVENUE RIGHT IN THE
HABIT DAYS THIS IS THE ONLY HAS
A CERTAIN NUMBER OF. SOURCES
REVENUE SOME FROM US IN TUITION.
MAYBE SOME FROM GRANTS OR OTHER
TYPES OF THINGS AND THEN
INVESTMENTS RIGHT AND IN THE-
AND ONE COULD ARGUE THAT.
DURING GOOD TIMES AND SINCE A
SEVENTEEN EIGHTEEN THAT'S A
GUESS A- THAT. THAT THAT'S WHEN
YOU WANT TO BUILD UP. YOUR
RESERVES ARE SORT OF WHATEVER.
BUT SAME TIME. IN YOUR REVIEW
OF. BUT THERE'S A TRUSTEE
MEETINGS ARE. THE DAYS THE US
THE MAIN STUDENT THAT THE
MINUTES WHATEVER YOU REVIEWED.
THAT WAS NOT EXPLODE THAT WAS
NOT THE EXPLICIT REASON AND ONE
OF THE MAJOR REASONS GIVEN FOR
INCREASING TUITION THAT WHAT WE
WANT TO BUILD UP RESERVES AND
THAT'S WHY WE'RE INCREASING
TUITION. EXACTLY THAT THAT'S
EXACTLY RIGHT SENATOR SO THAT
THE REQUIREMENT IS IT'S THE
WORKING FAMILIES TRANSPARENCY
ACT AND IT SPECIFICALLY
REQUIRES. CSU TO REACH OUT TO
STUDENT GROUPS. IF THEY'RE
COULDN'T CONTEMPLATING A
TUITION INCREASE AND WHAT THE
THEY'RE LANGUAGE REQUIRES IS.
ONE OF THE ELEMENTS HAS TO BE
ALTERNATIVES TO THAT. SO WE
WOULD HAVE EXPECTED TO SEE IN
THAT. REPORT TO THE STUDENTS.
AN OPTION OF WE HAVE A RESERVE
WE COULD USE THAT TO OFFSET ANY
TUITION THERE IS A DATABASE
THAT WAS NOT. DISCUSSED THE
ONLY OPTIONS. LAID OUT IN THE
REPORT TO THE STUDENTS WAS. WE
NEED TO GET MORE MONEY FROM THE
STATE. OR WE RAISE TUITION IF
WE DON'T WE HAVE TO CUT
PROGRAMS AND SERVICES. THERE
WAS NEVER A DISCUSSION IN. THE
REPORT THAT I LOOK AT WITH
RESPECT TO THIS. THAT'S TUITION
PROPOSAL FOR CONSIDERATION
WORKING FAMILIES ACT. THERE WAS
NO DISCUSSION IN THERE ABOUT
USING ANY TYPE OF RESERVE OKAY
SO JUST TO BE CLEAR DAYS I MEAN
STE. GIVEN THE FACT THAT MOST
OF THE MONEY. L. LEE SEEMS LIKE
HELPED BUILD THE RESERVE DATING
GO AND SAY IT'S A PAID REASON
WE WANT TO. INCREASED TUITION
IS BECAUSE WE WANT TO. IMPROVE
OUR RESERVES WHICH ARE OF THIS
SIZE WE WILL BECOME LARGER IN
CASE WE HAVE FUTURE DOWNTURN
THAT WAS NOT THE MAIN REASON
THAT THERE'S NO DISCUSSION NOT
I THAT I SAW ON IN THE REPORT
THAT I REVIEWED AND THE CHAIR
OF THE COURT SHARED WITH THE
STUDENTS OKAY THANK YOU NOTES
RIGHT AND RATHER NO SENSE ALSO
BE SURE I HAVE ENOUGH THE TIME
FOR. THE OTHER THING I WANTED
SO THIS IS SPECIFICALLY FOR
SEVENTEEN EIGHTEEN IS THIS A
BEHAVIOR THAT YOU SAW ON PRIOR
YEARS AS WELL OR I MEAN ONE
COULD ARGUE WE JUST PICKED UP
ONE REALLY BAD YEAR WHAT IT
DIDN'T DO IT I MEAN IS THIS
SOMETHING THAT WE STATUS
BECAUSE YOU SAID YOU LOOK AT
TEN YEARS. RIGHT AND MISTER
COOLEY TELLS CAN ASSIST BUT
WHEN PROP THIRTY PASSED THERE
WAS AN AGREEMENT WITH THE CSU
THAT THEY WOULD NOT RAISE
TUITION DURING THAT TIME FRAME
SO DURING A FOUR FIVE YEAR
WINDOW THERE WERE NO TUITION
INCREASES BECAUSE PROP THIRTY
GENERATED A SIGNIFICANT AMOUNT
OF MONEY FOR THE STATE OF
CALIFORNIA AND CSU BENEFITTED
FROM THAT NOW IN THE PRIOR
YEARS I WOULD HAVE TO DEFER TO
STAFF. I DON'T KNOW THAT THE
WORKING FAMILIES TRANSPARENCY
ACT WAS IN EFFECT IN THE
EARLIER YEARS THAT WE LOOKED AT
THAT SOME MORE RECENT STATUTES
OKAY BUT. ALSO MAKE NOTE BASED
ON. ONE OF THE GRASS HERE THAT
THE RESERVE HAD ACTUALLY SEEM
TO CONTINUE TO INCREASE EVEN
DURING YEARS WHICH I REMEMBER
WE'RE NOT SO GOOD FOR THE
LEGISLATURE AND SO WHAT I'LL
CSU MAY STRUGGLE WE HEARD FROM
DOCTOR WEBER WAS EXACTLY NUMBER
THE TIME. THAT THEY HAD
RESERVES THAT THEY CONTINUE TO
INCREASE THEY WEREN'T DIPPING
INTO AT THOSE TIMES IS THAT
CORRECT THAT IS CORRECT THE
FIGURE WE HAVE IN THE REPORT
SHOWS THERE WAS FLAT FOR SOME
YEARS BUT WE NEVER REALLY SAW.
A PRECIPITOUS DECLINE IN THE
RESERVE SO THEY DIDN'T HAVE TO
NECESSARILY USE THOSE RESERVE
AMOUNTS TO CONTINUE THEIR
OPERATIONS DURING. RECESSIONARY
TIMES. THANK YOU FOR THAT
EXPLANATION I UNFORTUNATELY
PROBABLY WILL HAVE TO LEAVE
BEFORE THE CSU HAS YET TO
EXPLAIN BUT I'M SURE OTHER
MEMBERS OF THIS COMMITTEE MIGHT
WANT TO ASK. THEM TO EXPLAIN
THAT. PATTERN THANK YOU. THIRTY
CENTER PAN YEAH THAT'S A
QUESTION BELIEVE WE HAVE FOR
THE CSU AS WELL WHAT IS SENATOR
ROBB. THANK YOU MISTER CHAIR
MADAM WATER GOOD TO SEE YOU
THANK YOU CENTER. YOU KNOW IN
THE INTERESTS OF OPERATIONS AND
TRANSPARENCY IT'S CERTAINLY
IMPORTANT I THINK AND YOU'VE
NOTED. THE ONE INSTITUTION SETS
UP A RESERVE ACCOUNT THAT THERE
BE A PLAN FOR. HOW AND WHEN TO
USE IT I'M NOT. SURE IN MY
RECOLLECTION THAT OUR STATE
SPECIAL FUND FOR ECONOMIC
UNCERTAINTY IS SUPPOSED TO THE
RAINY DAY FUND. HAS A LOT OF
DETAIL AS TO WHEN THAT USED A
EXCEPT AS TO. WHEN THE
DEPARTMENT OF FINANCE AND THE
GOVERNOR IN CONJUNCTION WITH
THE LEGISLATURE PROPOSED TO USE
IT AM I CORRECT. RIGHT SO THAT
THE SEPARATE ONE THESE ARE FOR
THE ECONOMIC UNCERTAINTY ON
BASICALLY THAT'S- DISCRETIONARY
SERVE MAYBE WE SHOULD SET UP
SOME RULES FOR THAT TOO RIGHT
AND WHAT THAT ONE DOES THE
DIFFERENT DIFFERENCE IS THAT
YOU COULD ACTUALLY SEE THIS IS
THE NOT THIS IN A RAINY DAY
FUND THIS THEM OUT THIS
INFRASTRUCTURE FINDS YOU COULD
KIND OF DIFFERENTIATE BETWEEN
THE TWO. WE DO LOOK AT THAT BUT
PUTTING THAT ASIDE. ASSUMING AN
APPROPRIATE. RESERVE PLAN IS IN
PLACE OR PROPER ONE. META
MONITOR BASED ON YOUR
EXPERIENCE AND IT IS
SIGNIFICANT. WHAT LEVEL OF
RESERVE WOULD YOU EXPECT TO
FIND AND SEE ISSUE IS AN
INSTITUTION. TALKING ABOUT TWO
THINGS HERE WE'RE TALKING ABOUT
PROCESS AND TRANSPARENCY BUT
THE MORE INFLAMMATORY PIECE OF
WHAT WE'RE TALKING ABOUT IS THE
SIZE. OF THE CORPUS HERE THE
ONE POINT FIVE BILLION. OF THAT
WE ALL SEEM TO BE FOCUSED ON
SOME HIS MOTIVATION CLEAR YOUR
QUESTION IS CLEAR IT'S AT AS
ALWAYS A DIFFICULT QUESTION
BECAUSE THE RESERVE POLICY THAT
THE CSU NEEDS TO DO SOME
ANALYSIS SOME HISTORICAL
ANALYSIS TO DETERMINE. WHAT
HAPPENED DURING THOSE
RECESSIONARY TIMES WE RAISE
TUITION IF WE WANT TO AVOID
DOING THAT IN THE FUTURE IF WE
HAVE A RECESSION HOW MUCH MONEY
DO WE HAVE TO HAVE IN RESERVE
SO IT'S GOING TO IT'S GOING TO
DEPEND UPON THE PARAMETERS. AND
THE INFORMATION THAT THE CSU
WANTS TO USE TO DETERMINE HOW
MUCH MONEY THEY NEED TO PUT IN
THE RESERVE AND OF COURSE YOU
WANT TO HAVE A CERTAIN AMOUNT
OF MONEY IN RESERVE. AND THEY
TALK ABOUT 10% FOR CAPITAL
OUTLAY FOR CAPITAL IMPROVEMENTS
IN THE FUTURE SO THERE'S A
VARIETY OF DIFFERENT THINGS TO
CONSIDER WHEN YOU'RE
ESTABLISHING A RESERVE POLICY
AND CERTAIN RESERVE AMOUNTS.
DEPENDING UPON WHAT YOU'RE
GONNA USE THAT RESERVE FOR IF
YOU HAD IF IN FACT SEE ISSUE
HAD PUT IN PLACE AN APPROPRIATE
RESERVE POLICY WITH. CRITERIA
EVEN THOUGH WE DON'T%
NECESSARILY DO THAT AND BOTH OF
A AND R. RESERVE ACCOUNTS HERE
ALL OF THEM HERE AT THE STATE.
WOULD YOU HAVE FOUND THE ONE
POINT FIVE BILLION TO BE
UNREASONABLE AS A RESERVE FOR
INSTITUTION. OF LIKE SEE ISSUE.
AND THAT'S A DIFFICULT QUESTION
TO ANSWER I WOULD WANT TO KNOW
IF THEY HAD AN APPROPRIATE
POLICY AND THEY HAD LAID OUT
EXACTLY HOW THEY WERE INTENDING
TO USE. THE ONE POINT FIVE
BILLION DOLLARS AND WHAT THE
VARIOUS AMOUNTS WERE SET ASIDE
FOR. THEN WE WOULD HAVE DONE A
DIFFERENT TYPE OF ANALYSIS. BUT
THE MORE IMPORTANT ISSUE THAT'S
AN IMPORTANT ISSUE BUT THE
EQUALLY IMPORTANT ISSUE IN MY
MIND IS THE DISCLOSURE OF THE-
OF THE SURPLUS A RESERVE
WHATEVER YOU WANT TO REFER TO
IT AS- BUT- BUT- WE WEREN'T
ABLE TO DO THAT TYPE OF
ANALYSIS BECAUSE THEY COULDN'T
TELL US. THEY THEY ESSENTIALLY
HAD TWO BILLION DOLLARS AND
SAID WE'RE GONNA SET ASIDE FOUR
HUNDRED MILLION FOR RESERVE FOR
ECONOMIC UNCERTAINTY. AND THEN
WE'VE GOT THE OTHER ONE POINT
FIVE BILLION AND BASICALLY
SAYING. WELL IF YOU RUN INTO
DIFFICULT ECONOMIC TIMES WE'RE
GONNA NEED TO DIP INTO THAT.
WITHOUT REALLY EXPLAINING OKAY
HOW MUCH. WOULD YOU NEED TO
DEPEND WHAT ARE THE DIFFERENT
PARAMETERS IS THE STATE OF
CALIFORNIA EVER GOING TO CUT
OFF FUNDING FOR THE CSU SYSTEM.
THE REALITY OF THAT IS PROBABLY
QUITE SLIM I WOULD HOPE. SO
THERE'S A VARIETY OF DIFFERENT
THINGS THAT NEED TO GO INTO THE
THOUGHT PROCESS. IN DEVELOPING
A RESERVE POLICY IN
ESTABLISHING WHAT THAT RESERVE
AMOUNT SHOULD BE. AND I DON'T
MEAN I DON'T DISAGREE IN TERMS
OF. PROCESS I'M JUST TRYING IS
A BUDGET TEARS BECAUSE I DO
HAVE TO DEAL WITH THESE THINGS
SO. EVERY YEAR I'M JUST TRYING
TO. GET SOME INFORMATION SO
THAT NEXT YEAR WHEN WE START
THE BUDGET PROCESS AGAIN I CAN
EVALUATE RESERVE ACCOUNTS VIS A
VIS. OF THE SEA ISSUE BUDGET
REQUEST DO YOU DO YOU DO EITHER
OF YOU RECALL WHAT PERCENTAGE.
THE ONE POINT FIVE BILLION
REPRESENTS OF THE TOTAL SEE
ISSUE OPERATING BUDGET. I
RECALL THE WHAT WHAT PERCENTAGE
IT'S YOU KNOW MAYBE 1015% OF
THE CSU COULD PROBABLY PROVIDE
SOMETHING MORE ACCURATE
INFORMATION. BUT BASICALLY
THOUGH IT I'M TO YOUR QUESTION
IN TERMS OF AS A SOMEONE THIS
REVIEW IN THE BUDGET. I THINK
THERE'S A BALANCE THAT I THINK
STAKEHOLDERS ONE OF STRIKE ON
THE ONE HAND YOU WANT TO BUILD
A PRUDENT RESERVE FOR THAT YOU
KNOW PROTECTS AGAINST ECONOMIC
BAD ECONOMIC TIMES. BUT THE
FACT THEY'RE TALKING ABOUT
TUITION THE OTHER SIDE OF THE
COIN IS HOW DO YOU ALSO BOUNCE
THAT WITH AFFORDABILITY AND
MAKING SURE THAT THIS MONEY
SPORTS THE BEST USE. SO THAT
THE REASON WHY DISCLOSURE
SUPPORT INTO IS THAT WE IS
SUPPORTED THAT YOU SPECIFIC
IDENTIFIED THIS IS THEM OUT
THIS MONEY BY TUITION IS THE
MOST SURPLUS. THAT IS THAT WERE
USING TUITION TO MAINTAIN AND
THAT WAY STAKEHOLDER STUDENTS
THE LEGISLATURE COULD DISCUSS.
OKAY WELL WHAT'S THE RIGHT
AMOUNT IS THIS THE RIGHT NOT
FOR A RESERVE OR HEY YOU KNOW
DO WE WANT TO MAKE SURE THAT.
TUITION RATES REMAIN AFFORDABLE
SO WHAT IF I'M UNDERSTANDING
THAT THE PRESENTATION.
CORRECTLY THE ONLY REASON THAT
THIS. THIS PART OF MONEY
CONSISTS OF TUITION DOLLARS OR
THE RESTRICTIONS THAT WE PUT
ON. THE SEA ISSUE AND THE WAY
THE C. ISSUE SPENDS ITS MONEY
THROUGH THE YEARS THAT CORRECT.
RIGHT IF WE HAD NOT PUT THOSE
RESTRICTIONS ON THE SEA ISSUE.
TERMS OF DRAW DOWN BY MONTHS IN
WHICH FUNDS ARE USED WHEN. THIS
POT OF MONEY WOULD BE A MIXTURE
OF TUITION IN GENERAL FUND
MONEY CORRECT. A RIGHT
POTENTIALLY HONEST UC'S
PRACTICE IT IS THOUGH TO SPEND
AT THE GENERAL FUND FINDS ON IS
FIXED COSTS LIKE IT'S PAYROLL.
WE REQUIRE THAT DILLON. I DON'T
KNOW WHAT THE REQUIREMENTS BUT
THAT'S BASICALLY GOT A CABLE
THREAT AND MOUNTED THEN
JENNIFER COVERS UP TO A CERTAIN
POINT. AND THEN DOES BASICALLY
PAID FOR AND THEN THE REST IS
COVERED BY. OKAY THANK YOU I
DON'T WANT TO BELABOR THIS I
CERTAINLY AGREE WE NEED SOME
PROCESS IMPROVEMENT HERE BUT-
WE MAY FIND IT SEE ISSUE AGREES
TO. YES SIR SEC HELLO. SENATE
ROTH YET A QUESTION ABOUT THE
ONE POINT FIVE BILLION WHAT IS
IT REPRESENTS THE ONE POINT
FIVE BILLION WAS AS OF TWO
THOUSAND SEVENTEEN EIGHTEEN
AND- I BELIEVE THERE ABOUT SIX
POINT FOUR BILLION DOLLARS IN
EXPENDITURES OPERATING EXPENSES
THAT YEAR FOR CSU. SO THE ONE
POINT FIVE BILLION REPRESENTS
ABOUT 20% OF OPERATING EXPENSES
WHICH IS ABOUT. TWO TWO AND A
HALF MONTHS WOTH OF OPERATING
EXPENSES SO JUST TO GIVE YOU
SOME CONTEXT OKAY TWO TO TWO
AND A HALF MONTHS OF. OF
OPERATING EXPENSES FOR THE
INSTITUTION THAT'S RIGHT. THANK
YOU THANK YOU ALL VERY MUCH
THANK YOU MISTER THANKS THAT
ARE OUT THERE I THINK THAT'S
WHAT THE STAFF WAS TELLING ME
THE NUMBERS THEY RAN WAS ABOUT
TWENTY PERCENT. AS WELL SO WITH
THAT WE WILL TO SENATOR LEYVA.
THAN TO ASSEMBLY MEMBER
SANTIAGO THAN SENATOR DRAWS.
THANK YOU MISTER CHAIR A GOOD
AFTERNOON MADAM AUDITOR I WANT
TO THANK YOU AND YOUR TEAM FOR
THE VERY THOROUGH REPORT VERY
VERY HELPFUL. WHEN WAS THE LAST
TIME WE AUDITED CSU. IN ANY
CAPACITY. WE AUDITED CSU ON
BEHALF OF DOCTOR WEBER I'M
GOING TO GUESS IT'S PROBABLY
TWO OR THREE YEARS AGO OKAY. WE
JUST ON AT THEM AS ISSUES COME
UP. TYPICALLY THE AUDITS AS YOU
KNOW THAT COME TO THE STATE
AUDITOR'S OFFICE ARE COME
THROUGH THE JOINT LEGISLATIVE
AUDIT COMMITTEE SO IT'S UP TO
INDIVIDUAL MEMBERS TO DECIDE IF
THEY WANT US TO AUDIT CSU WE DO
NOT AUDIT SEE ISSUE ON A
REGULAR BASIS SO BIG BECAUSE
THIS WAS SUCH A SURPRISING
AMOUNT TO I THINK. ALL OF US
HAVE WE EVER BEFORE LOOK AT
THEIR FINANCES AND KNOWING THAT
THERE WAS ANY KIND OF A SURPLUS.
OR RESERVE ARMED BEFORE CALLING
A BALL. FROM FROM OUR
PERSPECTIVE THE LAST THOUGHT IT
WE DID ON BEHALF OF DOCTOR
WEBER WAS LOOKING AT SOME OTHER
BUDGETING PRACTICES I DON'T
RECALL A DISCUSSION AND THAT
AUDIT REPORT WITH RESPECT TO
ANY RESERVE AMOUNTS OR OR
SURPLUS AMOUNTS. WITH RESPECT
TO I MEAN THEY HAVE AUDITED
FINANCIAL STATEMENTS WHICH
STILL REFER TO. AGAIN THOSE
AUDITED FINANCIAL STATEMENTS
WILL SHOW CERTAIN INFORMATION
BUT IT DOES NOT SHOW.THE
DISCRETIONARY AMOUNTS IT
WOULDN'T IT WOULDN'T AT
FINANCIAL STATEMENTS STATEMENTS
WOULDN'T GO INTO THAT KIND OF
DETAIL. SO WITHOUT AN AUDIT IN
THE FUTURE WE WOULDN'T KNOW
WHAT THE RESERVES ARE THE
SURPLUS IS TWO YEARS FROM NOW
THREE YEARS FROM NOW. WELL
THAT'S WHY WE'RE SUGGESTING IN
OUR RECOMMENDATIONS THAT IN THE
REPORTING TO THE LEGISLATURE.
CERTAINLY AS PART OF THE
ACADEMIC SUSTAINABILITY PLAN OR
SOME OTHER REPORTS THAT ARE
SUBMITTED TO THROUGH THE BUDGET
COMMITTEES YOUR COMMITTEE
MISTER MCCARTY'S COMMITTEE.
THAT THE CSU ACTUALLY DO REPORT
THAT INFORMATION. AND
ESSENTIALLY BREAK IT DOWN FOR
THE LEGISLATURE SO THE
LEGISLATURE UNDERSTANDS. THE
PORTIONS THAT ARE SPECIFICALLY
RESTRICTED AND THE PORTIONS
THAT ARE MORE DISCRETIONARY.
PERFECT THANK YOU THANK YOU
MISTER CHAIR THAT I THINK
THAT'S WHAT I CONSISTENTLY HERE
FROM USE OF RESERVE POLICY AND
THE REPORTING. RIGHT WILL MOVE
TO ASSEMBLY MEMBER SANTIAGO
THAN SENATOR DRAWS A. THANK YOU
ONCE AGAIN FOR ME BEFORE THIS
COMMITTEE WE APPRECIATE YOUR
WORK I IN THE PAST AND
CERTAINLY I HEAR YOU LOUD AND
CLEAR THIS IS NOT ILLEGAL BUT
IT SURE DOESN'T LOOK GOOD IF
YOU TAKE A LOOK AT THIS. AND
YOU KNOW WHEN I START TAKING A
LOOK AT THIS I REMEMBER WHEN
YOU PRESENTED BEFORE US ON THE
UC DOLLARS BUT THIS BY
COMPARISON LOOKS LIKE THE UC
PROBLEM ON STEROIDS AND A LOT
OF DIFFERENT WAYS. COULD WE
TALK ABOUT BE WITH BILLIONS AND
YOU KNOW I'VE GOT GOT SOME
CONCERN AS YOU DO WITH THE NOT
BEING FORTHCOMING WITH STUDENTS
WHEN WERE RAISING TUITION ACT I
SHOULD THE SAME CONCERN. AS IT
RELATES TO. CONTRACT
NEGOTIATIONS WITH THE
BARGAINING UNITS BUT I WONDER
IF YOU MIGHT WANT TO COMMENT ON
SOME OF THE EFFORTS IN THE
LEGISLATURE BECAUSE WHEN WE
WERE ON ADVOCATING FOR MORE
DOLLARS FOR THE CSU SYSTEM THE
ASSUMPTION WAS THAT IF WE
DIDN'T FIGHT HARD FOR MORE
DOLLARS THE UC SYSTEM THAT THE
SKY WOULD FALL. AND IN FACT
MANY OF MANY OF US HERE PUT ON
SOCKS AND ADVOCATED AND WE WERE
ALL ABOUT MAKING SURE THE UC
SYSTEM THE CSU SYSTEM GOD
DOLLARS BECAUSE WE WANTED TO
SERVE OUR COMMUNITIES WE
REALLY. REALLY BELIEVE IN THE
SYSTEM. BUT TAKE A LOOK BACK
NOW AND HAVING YOU FIND ONE
POINT FIVE BILLION DOLLARS. ONE
OF THE COMMENT YOU CAN MAKE
ABOUT WHAT I WOULD SAY IS
ALMOST THE DIPPING OF THE
LEGISLATURE THAT MAKE US FIGHT
FOR ALL THESE DOLLARS. OF ONE
NOT NOT. NOT NECESSARILY
KNOWING THAT THERE'S- A BILLION
DOLLARS OR SO AT THE TIME. IN
RESERVES AND AGAIN IT'S NOT
THAT WE'RE SAYING HEY YOU
SHOULD HAVE RESERVE RAINY DAY.
THAT'S A DIFFERENT QUESTION FOR
THIS. BUT CERTAINLY WE SHOULD
AT LEAST HAVE SOME SORT OF
GENERAL UNDERSTANDING WHEN
WE'RE GOING INTO THIS NO WONDER
IF YOU MIGHT HAVE SOME COMMENTS
ABOUT THAT THAT INTERACTION
WELL CERTAINLY ASSEMBLY MORE
SANTIAGO THAT THAT'S THE
CONCERN WE HAD AND THAT'S WHY
WE FOCUSED QUITE A BIT ON AND
MY COMMENTS TODAY FOCUS ON
TRANSPARENCY BECAUSE IT'S AS I
SAID WE'RE WE'RE NOT
NECESSARILY ARGUING THAT THE
CSU SHOULD NOT HAVE A PRUDENT
RESERVE BUT THEY SHOULD FULLY
DISCLOSE WHAT THEIR PLANS ARE
THEY SHOULD HAVE VERY SPECIFIC
PLANS A STRONG POLICY BUT THEN
THEY SHOULD DISCLOSE THAT TO
THE LEGISLATURE. BECAUSE IN
THAT ACADEMIC SUSTAINABILITY
PLAN THE DEPARTMENT FINANCE
SENDS A LETTER TO THE C. ISSUE
THE CHANCELLOR'S OFFICE AND
SAYS WE NEED TO UNDERSTAND ALL
AVAILABLE RESOURCES TO THE CSU
AND THE INFORMATION THAT WE ARE
DISCUSSING TODAY WAS NOT
INCLUDED IN THE MATERIALS THAT
WERE PROVIDED TO THE
LEGISLATURE SO THAT'S A CONCERN
THAT WE RAISE IN THE AUDIT
REPORT AND THE CONCERN WE
CONTINUE TO HAPPEN AGAIN IT'S
FULL TRANSPARENCY SO THAT THE
DISCUSSION CAN HAPPEN THE
DISCUSSION CAN BE WE NEED TO
HAVE A RESERVE WE BELIEVE WE
NEED X. AMOUNT BASED ON THE
ANALYSIS WE'VE DONE IN THE
PAST. WE'VE GOT TO IF YOU AGREE
LEGISLATURE WITH THAT. NOTION
THAT WE NEED TO HAVE X. AMOUNT
IN RESERVE THEN WE STILL NEED
AND IN ADDITION AN INCREASE IN
THE APPROPRIATION FROM THE
STATE OF CALIFORNIA OR- THERE'S
A DECISION THAT THE-APPROPRIATION DOES NOT NEED TO
INCREASE. BUT THE CONVERSATION
CAN'T HAPPEN IF THE LEGISLATURE
WAS IN GIVEN ALL OF THE
INFORMATION. AND THROUGH THE
TERMINATE FOLLOW UP ON THAT.
THANK YOU. AND IF YOU DON'T
EVEN IN CONVERSATIONS ABOUT
LEGISLATION BEFORE US. AT LEAST
I WAS LED TO BELIEVE WHEN WE
TALKED ABOUT A STEP INCREASES.
FROM MY COLLEAGUE IN SAN DIEGO
WHAT WHEN SHE BROUGHT THAT UP I
WAS LED TO BELIEVE THAT IT WAS
A QUESTION OF AFFORDABILITY.
AND IF IT'S A QUESTION OF
AFFORDABILITY I HAVE A HARD
TIME RECONCILING I REALIZE YOU
BUT THIS IS MY- MY FRUSTRATION.
I HAVE A HARD TIME RECONCILING
THAT WE HAVE ONE POINT FIVE
BILLION AT THE SAME TIME WE'RE
NOT. WE'RE HEARING THE
QUESTIONABLE FOR ABILITY WHEN
IT COMES TO. STEP INCREASES. NO
WONDER IF THERE'S ANY COMMENT
ON THAT BECAUSE I. ON DIG IN A
LITTLE BIT HERE BECAUSE I FEEL
LIKE. LIKE LIKE MAYBE MAYBE
WASN'T FORTHCOMING TO THE
LEGISLATURE AS WELL. I
UNDERSTAND THE FRUSTRATION I
CAN'T COMMENT ON DISCUSSIONS
WITH RESPECT TO A BARGAINING.
YOU KNOW IN IN THE UNION AND
THE INDIVIDUALS WHO WORK FOR
THE CSU SYSTEM BUT CLEARLY THE
CONCERNS WE RAISE IN THE AUDIT
REPORT CAN. YOU KNOW FLOW
FURTHER THAN JUST SHARING WITH
OLD WITH THE STUDENTS AND WITH
THE LEGISLATURE CHEERING WITH
THE UNIONS AND SHARING YOU KNOW
BEING FULLY TRANSPARENT ABOUT
THE FUNDING THAT IS AVAILABLE
TO THE C. ISSUE FOR VARIOUS
PURPOSES. THANK YOU WITH A ONE
DOES SENATOR DRAWS A. I THINK
YOU'VE REALLY JUMPED INTO MY
QUESTION WHICH WAS THE FACT OF
NOT SHARING THIS INFORMATION
YOU SPENT YOU EXPLAIN TO US THE
IMPACT PROBABLY ON OF THE
STUDENTS THROUGH THE INCREASE
IN TUITION OF MY COLLEAGUE JUST
MENTIONED COLLECTIVE BARGAINING
WHAT OTHER WAYS. WHAT OTHER
WAYS WOULD OR WHAT OTHER IN
WHAT OTHER WAYS WOULD THERE
HAVE BEEN AN IMPACT. OF NOT
HAVING SHARE THIS INFORMATION
I'M TRYING TO YOU KNOW THE. IT
I MEAN IT'S AN EXTRAORDINARY
AMOUNT OF MONEY. AND IN THE
TIME PERIOD SO. HOW WOULD THAT
HAVE BENEFITTED. I DON'T KNOW
THROUGH WHOSE EYES WHO WHO HOW
DID BENEFIT US SEE IS YOU TO
NOT SHARE THIS AS OPENLY AND AS
CLEARLY AS POSSIBLE. WHAT WHAT
OTHER IMPACTS. YEAH THAT OR
COULD THAT HAVE HAPPENED. WITH
RESPECT TO THE PERSPECTIVE AYE
AYE AND WITH ALL DUE RESPECT
THAT THE CHANCELLOR IS HERE I
WANT TO GIVE HIM THE
OPPORTUNITY TO SHARE THE CS USE
PERSPECTIVE BUT BUT THERE IT WE
TALK ABOUT YOU KNOW CERTAINLY
SHARING WITH THE STUDENTS
SHARING WITH THE LEGISLATURE'S
FAR AS DECISION MAKING AS FAR
AS FINDING THE CSU SYSTEM. AND
TUITION MONEY CAN BE USED FOR
INSTRUCTIONAL PURPOSES AND FOR
VARIOUS PROGRAMS I KNOW THEY
HAVE THE GRADUATION TWENTY
TWENTY FIVE INITIATIVE SO COULD
THEY HAVE USED SOME OF THOSE
FUNDS THAT ARE NOW IN THIS
SURPLUS RESERVE ACCOUNT TO
PROVIDE MORE SERVICES TO
STUDENTS MORE INSTRUCTIONAL
OPPORTUNITIES ABILITY TO
GRADUATE SOONER WE DIDN'T DIVE
INTO ALL OF THE SPECIFICS IN
THE AUDIT REPORT WE REALLY
WANTED TO FOCUS ON. WHAT ARE
THE STATE REQUIREMENTS WITH
RESPECT TO REPORTING AND THE
BEST PRACTICES THAT WE BELIEVE
THE CSU SHOULD EMBRACE AND
SHOULD IMMEDIATELY IMPLEMENT
WITH RESPECT TO TRANSPARENCY
AND ACCOUNTABILITY. AND KNOWING.
WHO WOULD YOU. WHO IS
RESPONSIBLE FOR THIS. WHO IS
RESPONSIBLE AT WHAT POINT AT
WHAT LEVEL IS RESPONSIBLE FOR
NOT SHARING NOT INCLUDING THAT
INFORMATION NOT GIVING THE
REPORTS TO. PEOPLE WERE
IMPACTED. WELL IT'S MY
UNDERSTANDING THAT THE WORKING
FAMILY THE TRANSPARENCY ACT I
MEAN AT ALL ULTIMATELY I AM
RESPONSIBLE FOR THE STATE
AUDITOR'S OFFICE IN AND AGAIN
MR WHITE THE CHANCELLOR IS
RESPONSIBLE FOR THE C. ISSUE
BUT YOU'VE GOT OTHER
INDIVIDUALS I I'M ONLY AS GOOD
AS THE STAFF THAT WORK FOR ME.
BELIEVE ME. I AM THE I'VE
ALWAYS SAID ON THE FACE OF THIS
ORGANIZATION I'VE TREMENDOUSLY
TALENTED PEOPLE WORKING FOR ME
SO YOU HAVE ON OTHER
INDIVIDUALS WHO ARE RESPONSIBLE
FOR PUTTING THOSE MATERIALS
TOGETHER I DON'T KNOW I WOULD
DEFER TO MISTER WHITE AS FAR AS
WHO'S RESPONSIBLE FOR PUTTING
THE MATERIALS TOGETHER TO SHARE
WITH THE STUDENTS SO SEE ATION
I THINK IT WOULD BE SOME OF THE
BUDGET FOLKS AS FAR AS SHARING
INFORMATION WITH THE
LEGISLATURE THAT CERTAINLY
COMES FROM. ONTO HIM TO SHARE
ANY FURTHER. I CANNOT BELIEVE
ESTHER'S STAND HOUSING MIGHT
HAVE A COMMENT ON THIS RIGHT.
ONE OF THE WAYS THAT CAMPUSES
BUILDER RESERVES BY
SPECIFICALLY BUDGETING A
CERTAIN AMOUNT OF SPENDING FOR
RESERVES SO THEY'LL BUDGET
MONEY FOR SALARIES FOR BENEFITS
FOR TRAVEL AND OPERATIONS. AS
WELL AS GENERAL OPERATIONS AS
WELL AS FOR RESERVES IN MAINE
IN MANY CASES SO TO ANSWER YOUR
QUESTION. TO THE X. THERE'S TWO
WEEKS THERE'S AN OPPORTUNITY
COST IN A WAY IF THE CAMPUS IS
BUDGETING A CERTAIN AMOUNT OF
MONEY SAY MILLION DOLLARS TWO
MILLION DOLLARS IN A CERTAIN
YEAR. TWO RESERVES FOR WHATEVER
PURPOSE ECONOMIC UNCERTAINTY
CAPITAL PROJECTS THAT'S A
THAT'S COMING AT THE EXPENSE OF
SOMETHING ELSE THAT COULD BE
FUNDED INSTEAD AND SO RIGHT
NOW. IT'S NOT. CLEAR. WHICH
CAMPUSES ARE BUDGETING WHAT
AMOUNTS IT'S BECOMING CLEAR
WITH THE PORTAL THAT MENTIONED
EARLIER OF THE TRANSPARENCY
PORTAL THAT JUST WENT LIVE IN
MAY THERE'S SOME GOOD DAY OUR
DATA THERE IT IS QUITE HARD TO
NAVIGATE RIGHT NOW I PERSONALLY
HAVE SPENT SOME TIME ON IT AND
NEEDED QUITE A TUTORIAL. SO
THERE IS THE OPPORTUNITY THOUGH
TO GET MUCH MORE GRANULAR DATA
ABOUT CAMPUS RESERVES WHAT
THEY'RE RESERVING PUTTING ASIDE
FOR CERTAIN PURPOSES AND THAT
WILL ALLOW THE LEGISLATURE TO
HAVE THAT CONVERSATION IN
BUDGET HEARINGS AND OTHER
HEARINGS ABOUT WHY THEY'RE
PUTTING THAT MONEY AWAY FOR
RESERVES AND WHAT COULD THEY
USE THAT MONEY INSTEAD BECAUSE
PERHAPS THE LEGISLATURE HAS.
OTHER PRIORITIES FOR THAT MONEY.
THANK YOU I APPRECIATE THAT I
WITHOUT WILL MOVE TO. MR
MURATSUCHI THANK YOU VERY MUCH.
THANK YOU AS HELL I WAS
FOLLOWING. THIS HEARING IN MY
OFFICE AND ALONG WITH ALL OF
THE- QUESTIONS AND THE
CONVERSATION THAT THIS. JOINT
COMMITTEE HAS BEEN TAKEN. IN
THIS HEARING WELL I WANTED TO.
SHE TO ALL OF THE. FINDINGS IN
THE REPORT AND I WAS GOING
THROUGH SOME THE MATERIALS AND
TRYING TO FORESEE. WHAT THE
CALIFORNIA STATE UNIVERSITY IS
GOING TO BE SAYING. THERE IS A
LETTER THAT THE OFFICER
CHANCELLOR ISSUED ON AUGUST
TWENTY FOURTH THE TWENTY
SEVENTEEN. THAT THE CHANCE OR
WHITE SPECIFICALLY REFERS TO
AND ONE OF HIS EDITORIALS
REGARDING SOME OF YOUR FINDINGS
AND ON PAGE SIX DO YOU HAVE A
COPY OF THE LETTER. PAGE SIX
THE LETTER SAYS THE BALANCE
AVAILABLE DESIGNATED FOR CSU
OPERATIONS HELD IN THE SWIFT
ACCOUNT AS OF JUNE THIRTY
TWENTY SEVENTEEN TOTALED ONE
POINT EIGHT SEVEN SEVEN.
BILLION DOLLARS WHICH IS EQUAL
TO APPROXIMATELY THREE MONTHS
OF OPERATING EXPECTS BENCHERS
IS THAT THE. DISCRETIONARY
SURPLUS IS YOU CHARACTERIZE IT.
THAT'S CORRECT SO IN FACT AS OF
AUGUST TWENTY FOURTH TWENTY
SEVENTEEN THE THAT WAS
DISCLOSED TO THE GROUP OF
LEGISLATORS RIGHT BUT BUT IF
YOU REFER IF YOU LOOK AT THE
LIST OF FUNDS AND YOU GET TO
THE ONE POINT EIGHT BILLION AND
YOU SEE THE EDUCATION CODE SO
THEY'RE THEY'RE THEY'RE
SUGGESTING THAT THESE ARE
STATUTORY DESIGNATION STATUTORY
RESTRICTIONS WHAT WE HAVE A
CONCERN WITH IS THEY'RE NOT
THEY'RE NOT EXPLAINING THAT
THIS IS DISCRETIONARY MONEY
THEY CERTAINLY HAVE THE ONE
POINT EIGHT BILLION DOLLARS
IDENTIFIED THERE BUT THEY'RE
NOT NECESSARILY. ANSWERING THE
QUESTION AS TO WHETHER OR NOT
THESE FUNDS ARE DISCRETIONARY
CAN BE BE USED FOR A VARIETY OF
PURPOSES WELL IT DOES SAY THAT
THE BALANCE IS THE DESIGNATED
FOR CSU OPERATIONS RIGHT A YEAR
INDICATING THAT THERE SHOULD
HAVE BEEN GREATER CLARITY THAT
THOSE WERE FOR DISCRETIONARY
OPERATIONS I THINK THERE SHOULD
HAVE BEEN GREATER CLARITY IT
NOT ONLY IN THIS LETTER BUT IN
A SUBSEQUENT LETTER TO MISTER
SANTIAGO WHERE MISTER SANTIAGO
SPECIFICALLY ASKED HOW MUCH OF
THIS MONEY IS DISCRETIONARY AND
WHAT THEY'RE SUGGESTING IS.
IT'S BEEN EARMARKED FOR
DESIGNATED PURPOSES AND THAT'S
NOT NECESSARILY TRUE THIS FUN
THESE FUNDS ARE ARE FLEXIBLE
AND THEY CAN USE THEM FOR A
VARIETY OF PURPOSES. THAT'S
WHAT THE CONCERN WE HAD. ALL
RIGHT SO AGAIN IT FOCUSES ON.
THE COMMON THEME OF QUESTIONS
THAT I'VE HEARD SEVERAL MEMBERS
ASKING THE LACK OF A POLICY THE
CLERK DID DISTINGUISH BETWEEN A
RESERVE IN A DISCUSSION AYE SIR
WELL I THINK THAT I THINK IT'S
MAKING SURE THAT YOU HAVE A
CLEAR RESERVE POLICY AND THEN
ABSOLUTELY FULL DISCLOSURE I
MEAN THIS IS AN AMOUNT SHOWN IN
ONE LETTER ITS NOT ABUNDANTLY
CLEAR IN MY OPINION AND OUR
OPINION. THAT THIS MADE IT IT
CLEAR TO THE MEMBERS WHO
RECEIVE THIS LETTER THAT THESE
ARE FUNDS THAT THEY CAN DEPEND
TO FOR ANY PARTICULAR PURPOSE I
MEAN SCOTT OBVIOUSLY IT'S GOTTA
BE TIED TO OPERATIONS WHAT
THEY'RE ARGUING NOW IS THIS
MONEY NEEDS TO BE KEPT IN THE
RESERVE ACCOUNT FOR IT RESERVE
FOR ECONOMIC UNCERTAINTY FOR
DOWN TRENDS IN THE ECONOMY
ETCETERA. DID THE CONCERN WE
HAD AS I WAS DISCUSSING IS
THERE WASN'T DISCLOSURE THAT
THESE FUNDS CAN BE USED EITHER
PERHAPS OFFSET TUITION
INCREASES IT WASN'T SURE WITH
SHARED WITH THE STUDENTS IT
WASN'T SHARED WITH THE
LEGISLATURE WHEN THEY SUBMITTED
THEIR ACADEMIC SUSTAINABILITY
PLAN AS FAR AS WATER ALL THE
RESOURCES THAT ARE AVAILABLE TO
THE CSU. FOR THE COMING YEAR.
THANK YOU. THANK YOU AND THEN
LET ME JUST ASK A QUESTION KIND
OF IN LINE WITH THIS BECAUSE
THEY WOULDN'T DISSIPATE THIS
MIGHT COME UP AGAIN IN THE NEXT
PANEL. BUT ON PAGE TWENTY A OF
THE AUDIT REPORT MENTIONS ABOUT
A HUNDRED AND TWENTY SIX
MILLION. CS USE ONE POINT FOUR
BILLION RESERVE AT THE END OF
FISCAL YEAR FIFTEEN SIXTEEN.
WAS NEEDED TO PAY FOR EXPENSES
TIED TO EXISTING CONTRACTS. YOU
KNOW THE ONE POINT FIVE BILLION
IDENTIFIED AS OF THE END OF
FISCAL YEAR SEVENTEEN EIGHTEEN.
HOW MUCH FUNDING WAS TIED TO
HIS EXISTING CONTRACTS ARE WAS
ENCUMBERED. IT WAS ABOUT NINETY
FIVE MILLION IS ABOUT NINETY
FIVE MILLION OF THE ONE POINT
FIVE DOES CRACKS. OKAY AND I
THINK THAT'S GOING TO BE
RELEVANT FOR THE NEXT PANEL
BECAUSE- WAS IT ENCUMBERED
WASN'T NOT YOU'RE SAYING OF THE
ONE POINT FIVE ONLY NINETY FIVE
MILLION LESS YEAH I WAS IS AND
OUR ACCOUNTS WHERE IT'S
BASICALLY TIED TO EITHER
EXISTING CONTRACT. EXISTING
CONTRACTS BASICALLY OKAY THANK
YOU FOR THE CLARITY RIGHT AT
THE TIME WHEN WE ASK THERE'S-
ADDITIONAL QUESTIONS FOR MR
TING. SORRY ONE ONE LAST
QUESTION. HE'S JUST TO JUST TO
KIND OF FOLLOW UP IN YOUR- A
REPORT ON FORTY EIGHT YOU BREAK
OUT THE FOUR. BILLION DOLLAR
SURPLUS DID YOU BREAK UP THE
ONE POINT FIVE BILLION
ANYWHERE. IT JUST IT JUST TO
CLARIFY I THINK IT'S IMPORTANT
ALSO FOR THE PUBLIC IF MY
COLLEAGUES. THAT THE ONE POINT
FIVE BILLION IS THE RESERVES OF
THE CHANCELLOR'S OFFICE AND ALL
TWENTY THREE CAMPUSES IS THAT
CORRECTAS YOU CAN SEE AND THERE THE
CHANCELLOR'S OFFICE HAS ABOUT
THREE HUNDRED THIRTEEN MILLION
DOLLARS IN RESERVE FOR THE
CHANCELLOR'S OFFICE RIGHT INTO
SO WHEN WE DID THE WOULDN'T
MISS MCCARTY AND I REQUEST OF
THE UC OPR IT WAS ONLY. THE
OFFICE OF THE PRESIDENT DID NOT
INCLUDE THE OTHER TEN CAMPUSES
SO THE THAT'S WHY THE AMOUNT OF
MONEY IS VERY DIFFERENT THAT'S
CORRECT NOW NOW IS THERE ANY
PLACE WHERE YOU BROKE OUT. THE
ONE POINT FIVE. BY CAMPUS. I
WOULD YET BREAK OUT THE LOWER
FORTY FIVE IN THE REPORT THAT
IS SOMETHING THAT THAT CAMPUSES
INCLUDED TO REPORTS THE CHANCES
OFFICE WEST PART OF THEIR TO BE
SERVICE BUT WE DON'T HAVE THAT
IN THE REPORT IS A WAY TO GET
THE TOOLS. THAT WE HAVE WE HAVE
THAT INFORMATION WE CAN GET
THAT TO YOU IN A BIT BASED ON
THAT YOU HAVE A SENSE OF DUTY
COULD I ASSUME THAT THE ONE
POINT FIVE BREAKS OUT IN
SIMILAR FASHION AS TO THE FOUR
WAS THERE HI I AYE DADDY
FORESHADOWED CALL MAYBE WE
COULD HAVE GET YOU THAT
INFORMATION SIR TANK STATE
HOUSING FOR THE ONLY. TIME AND
HAVE AS I MENTIONED DOES
SPENDING SOME TIME ON THAT
FISCAL TRANSPARENCY WEBSITE
LAST WEEK AND SO I CAN GIVE YOU
SOME OF THE BREAK OUT WE CAN
GET THIS TO YOU AND YOUR STAFF.
OF THE ONE POINT FIVE BILLION
DOLLARS. FOUR HUNDRED MILLION
IS THIS RESERVE FOR ECONOMIC
UNCERTAINTIES AND THEN YOU HAVE
THE NINETY FIVE MILLION DOLLARS
THAT YOU JUST HEARD ABOUT FOR
ENCUMBRANCES THESE ARE PURCHASE
ORDERS OF CONTRACTS THAT WERE
ENTERED INTO TOWARD THE END OF
ONE FISCAL YEAR AND HAVE TO BE
PAID TO FOLLOWING FISCAL YEAR.
HE ALSO HAVE ABOUT THREE
HUNDRED AND SIXTY MILLION
DOLLARS IN WHAT CSU CALLS OPEN
COMMITMENTS WHICH ARE QUITE
INCOME AND SCISSORS NOT
ACTUALLY CONTRACTS SIGNED BE
SOME SORT OF AGREEMENT WITH
FACULTY AND OR OTHERS TO GIVE
THEM SOME MONEY. DO IN THE IN
THE NEXT YEAR. YOU ALSO HAVE
QUITE A BIT OF MONEY FOR ABOUT
THREE HUNDRED EIGHTY MILLION
DOLLARS FOR CAPITAL OUTLAY AND
FACILITIES AND EQUIPMENT SO
CAMPUSES ARE NOW ENCOURAGED TO
SAVE MONEY AND PUT IT TOWARD A
BIG PROJECT THAT THEY'RE DOING.
SO IF THEY'RE DOING A
RENOVATION HUNDRED MILLION
DOLLARS RED HUNDRED MILLION
DOLLAR RAISE IT RENOVATION OF
THE PROJECT THE BUILDING
THEY'RE ENCOURAGED TO PUT 410%
AND SO THEY'LL SAY FOR THAT SO
WE CAN GET YOU THE BREAK OUT
THERE YOU CAN SEE THAT THE BIG
BUCKETS ARE THESE KIND OF
INCOME AND DESERVE COMMITMENTS
CAPITAL OUTLAY AND RESERVES
RECKON ON THE CONCERT RIGHT SO
DID YOU JUST SO I THINK WERE A
WE'RE TALKING OPTION ORANGES
HERE. IN THE LEGISLATIVE
CONTEXT WE TALK ABOUT. OUR
RESERVE OUR STATE RESERVE NOTED
THAT MONIES ENCUMBERED. IS THAT
CORRECT. WHEN WE TALK ABOUT OUR-
ALMOST EIGHTEEN BILLION DOLLARS
OF RESERVE NOT THAT'S THAT'S I
DON'T COVERED MONEY. I BELIEVE
THAT'S CORRECT THAT WE CAN GET
BACK TO RIGHT SO WHEN WE TALK
ABOUT MONEY THAT'S ENCUMBERED
IN NOT ENCUMBERED IN THIS QUOTE
UNQUOTE RESERVE CONTEXT. THEY
THEY ARE DIFFERENT ISSUES AND
IF WE LOOK AT THAT FROM OUR
STATE POINT OF VIEW WE WOULD
HAVE TO. PERHAPS YOU KNOW TALK
ABOUT SB ONE MONEY IN RESERVE
FOR OTHER MONEY IN RESERVE
THAT'S ALSO STORE SPECIAL FAR I
MEAN I THINK I THINK WE- CALL A
LOT OF THAT SPECIAL FUNDS.
BECAUSE IT COMES WITH DIFFERENT
SOURCE COAST STATES ALREADY
SPECIFIED AS TO WHERE THAT IS
APPROPRIATE. SO I THINK I DO
WANT TO BE. CAREFUL JUST
UNDERSTAND. THE LANGUAGE IS
BEING USED BECAUSE IN OUR
LEGISLATIVE CONTEXT IS
DIFFERENT IS NOT. RIGHT MISTER
CHANG AND THAT'S WHY WHEN WE
REFER WE HAVE A FIGURE IN THE
REPORT THAT TALKS ABOUT A FOUR
BILLION DOLLAR SURPLUS BUT
THERE IS TWO BILLION DOLLARS
THAT IS SIMILAR TO SB ONE MONEY
IT'S SPECIFICALLY. FOR IT IT'S
RESTRICTED FOR A SPECIFIC
PURPOSE YOU CAN'T USE THAT FOR
OPERATIONS YOU HAVE TO USE IT
FOR THE PURPOSE FOR WHICH THE
STUDENTS PAID LIKE STUDENT
HOUSING OR A STUDENT CENTER. ON
A CAMPUS SO THE DISTINCTION
YOU'RE RIGHT BUT THE ONE POINT
FIVE BILLION WE WOULD BE ABLE
TO A CERTAINLY LA AS YOUR AS
YOUR BUDGET EXPERTS WOULD BE
ABLE TO GET THE INFORMATION
WITH RESPECT TO THE ONE POINT
FIVE. GREAT AND I THINK WHICH I
REALLY APPRECIATE ALL THE ALL
THE GREAT WORK YOU'VE DONE AS
ALWAYS I THINK JUST TREVECCA MY
COLLEAGUES IN JUST ECHO ARE ARE
WHICH IS A TWO CHAIR. AGAIN IN
ALL THE HEARINGS THAT HAVE.
BEEN BROUGHT FORWARD AND I USED
TO SIT ON THAT BUDGET
SUBCOMMITTEE. THERE WAS NEVER A
TIME WHERE. HE WAS BROUGHT TO
LIGHT I THINK THAT IS THE
CONCERNING PART I THINK GOT
AFTER CONVERSATIONS DIRECTLY
WITH THE CHANCE I THINK I WILL
BE REMEDY. MOVING FORWARD. AND
I THINK JUST TO SHOW THE
EFFECTIVENESS OF THE AUDITING
THE IMPORTANCE OF FRANKLY
BRINGING. THESE TYPES OF ISSUE
FORWARD IN RESPONSE. THE
UNIVERSITY REALLY IMPROVED
THEIR WEBSITES IF YOU LOOK AT
THEIR WEBSITE. IT IS A MUCH
MUCH BETTER WEBSITE. VERY EASY
TO USE EASY TO FIND I THINK AND
I SO I THINK THAT. WE CURRENTLY
ARE SEEN THANKFULLY CONCRETE
STEPS. COME OUT OF THIS REQUEST
MY COLLEAGUES QUIRK SILVA. AND
I THINK THAT IS WHAT WE'RE ALL
AFTER WE'RE AFTER BETTER
TRANSPARENCY MORE INFORMATION.
AND TO ME THAT THE PUBLIC AS
WELL AS MANY OF THE CSU
EMPLOYEES IN THE STUDENTS CAN
REALLY. TAKE A LOOK AT THAT
INFORMATION SO THAT THEY FEEL.
THEY HAVE ACCESS TO SEE THE
UNDERSTAND AND THEY DON'T HAVE
TO. YOU KNOW ASK IN ORDER TO
TAKE A LOOK AT THEY DON'T HAVE
TO. IN A HIGHER TO COUNT TO GO
DO THAT BUT THEY THEMSELVES CAN
DO LIKE THAT. THIS IS A PUBLIC
MONEY TO PUBLIC INSTITUTION. I
THINK IT'S IMPORTANT THAT. THE
UNIVERSITY IS TAKING THE STEPS
TO MAKE SURE. THAT THIS
INFORMATION IS MUCH MORE CLEAR
AND CONCISE. THANK YOU. THANK
RESTING ALRIGHT WITH THAT THANK
YOU FOR THAT EXHAUSTIVE THE
ALMOST AN HOUR AND A HALF FOR
FIRST PANEL WE WILL NOW MOVE TO
OUR SECOND PANEL AND BELIEVE WE
MIGHT HAVE ENOUGH ROOM AT THE
TABLE. SO OKAY WITH THAT LET'S
GO TO CALL UP THE NEXT PANEL.
THIS IS COMMENTS AND RESPONSES
ON THE AUDIT. WE HAVE WITH US
MISTER TIMOTHY WHITE THE
CHANCELLOR OF THE CALIFORNIA
STATE UNIVERSITY MISTER JACK
RUN QUERY TRUSTEE FOR THE
CALIFORNIA STATE. UNIVERSITY
BOARD OF TRUSTEES AND MYSTERIES
PENALIZED FOR THE CALIFORNIA
STATE STUDENT ASSOCIATION THANK
YOU FOR JOINING US AND FOR.
STICKING IT OUT WITH US HERE.
WHEN YOU ARE READY TO BEGIN
MISTER WHITE WE WILL PROCEED
.
FOR THE RECORD. THANK YOU
CHAIRMAN TELL US THE NUMBER SO
MY NAME IS TIM WHITE I'M A
CHANCE OR THE CALIFORNIA STATE
UNIVERSITY I'M GONNA. THANK YOU
FOR THE OPPORTUNITY TO ADDRESS
YOU TODAY. I WANT TO BEGIN BY
EMPHASIZING THAT THE CALIFORNIA
STATE UNIVERSITY VALUES AND
TAKES TO HEART. RECOMMENDATIONS
OF OBJECTIVE AUDITS. WITH A. B.
FROM OUR OWN AUDIT DIVISION OR
FROM A BONAFIDE OUTSIDE AUDITOR
OR FROM THE CALIFORNIA STATE
AUDITOR. THEY ARE INDEED A
STRATEGIC TOOL TO HELP MAKE A
STRONGER. AS AN INSTITUTION AND
TO PROVIDE FULL ACCOUNTABILITY
TO OUR STAKEHOLDERS AND BUILD
THEIR CONFIDENCE. THE STATE
DAUGHTER THE STATE AUDITOR'S
REPORT CONTAINS A NUMBER OF
HELPFUL FINDINGS AND OFFERS
INSIGHTFUL RECOMMENDATIONS
REGARDING FUNDS DEPOSITED AS
REQUIRED BY STATUTE. IN STATE
TRUST ACCOUNTS AND HELD OUTSIDE
OF THE STATE TREASURY. AS WELL
AS PARKING AND ALTER
TRANSPORTATION PROGRAMS AT FOUR
OF OUR TWENTY THREE CAMPUSES.
LET ME BE VERY CLEAR. WE AGREE
WITH THE RECOMMENDATIONS SET
FORTH IN THE AUDIT REPORT. IN
FACT WE'VE ALREADY ESTABLISHED
WORK GROUPS TO ENSURE THAT ALL
OF THE RECOMMENDATIONS ARE
IMPLEMENTED IN A TIMELY FASHION.
INCLUDING MORE GRANULAR
PRESENTATIONS OF OUR RESERVES.
HOWEVER IN THIS CASE TO
SENSATIONALIZE HEADLINE IN AN
ACCURATE LANGUAGE IN THE REPORT
MISS CHARACTERIZE THE NATURE OF
CAL STATES DESIGNATED RESERVE
FUNDS DESCRIBING RESERVES AS A
QUOTE DISCRETIONARY SURPLUS.
THIS IMPLIES THAT THE FUNDS ARE
EXTRA MONEY THAT COULD BE PUT
TO ANY USE INCLUDING REGULAR
ONGOING. OPERATIONS OR THAT
THEY WERE IN FACT A NEEDED.
MORE TROUBLING THE REPORT
SUGGESTS THAT WE WERE NOT OPEN
ABOUT OUR FINANCIAL OBLIGATIONS
AND FAILED TO FULLY DISCLOSE
INFORMATION ABOUT OUR RESERVE
FUNDS TO YOU THE LEGISLATORS
OTHER STATE OFFICIALS INTO OUR
STUDENTS. THESE ASSERTIONS ARE
INCORRECT. ANYTHING BUT
DISCRETIONARY ARE DOESN'T NEED
RESERVE SERVE THREE SPECIFIC
AND CRITICAL FUNCTIONS. FIRST
IN TWO THOUSAND AND EIGHTEEN
SIX HUNDRED AND SIXTY THREE
MILLION WAS AVAILABLE TO
FULFILL SHORT TERM FINANCIAL
OBLIGATIONS INCLUDING FRONTING
FINANCIAL AID FOR OUR STUDENTS.
AT THE BEGINNING OF EACH TERM
THE CSU ADVANCES MILLIONS OF
DOLLARS TO STUDENTS TO ENSURE
THEIR FINANCIAL AID PACKAGES
ARE COMPLETE. WE ARE LATER
REPAID BY THE STATE AND BY THE
FEDERAL GOVERNMENT'S. SECOND
THREE HUNDRED AND SEVENTY SEVEN
MILLION IN RESERVES WERE
AVAILABLE TO FUND CAPITAL
PROJECTS. IN TWO THOUSAND
FOURTEEN A LAW CHANGE
TRANSFERRED FINANCIAL
RESPONSIBILITY FOR THESE
PROJECTS FROM THE STATE OF
CALIFORNIA TO THE CALIFORNIA
STATE UNIVERSITY. AT THAT TIME
WE DIRECTLY CAMPUSES TO SAY
FUNDS DESIGNATED AS RESERVES TO
FUND A PORTION OF THE COST OF
THOSE PROJECTS TO MODERNIZE
AGING CAMPUS FACILITIES OR
BUILD NEW ONES. AND THE THIRD
FOUR HUNDRED AND FIFTY NINE
MILLION DOLLARS RESERVE FUNDS
WERE AVAILABLE TO MITIGATE
AGAINST AN ECONOMIC DINE
DOWNTURN. THAT FOUR HUNDRED
FIFTY NINE MILLION IS LESS THAN
ONE MONTH OF OUR ANNUAL
OPERATING EXPENSES. IN THIS
RESERVE IS CONSIDERABLY LESS
THAN CALIFORNIA'S WELL REGARDED
FUNDS FOR RESERVE. THIS YEAR'S
YOU HAS BEEN OPEN AND
TRANSPARENT ABOUT THE RESERVE
FUND THROUGH DOZENS OF
DOCUMENTS AND PRESENTATIONS
SERVICE STATE OFFICIALS. ARE
BOARD OF TRUSTEES IN OUR
STUDENTS. TO SUPPORT HIS
POSITION THAT WE FAILED TO
FULLY DISCLOSE INFORMATION
ABOUT IS DESIGNATED RESERVES
THE AUDIT REPORT POINTS TO
SPECIFIC REPORTS WHICH DID NOT
INCLUDE ANY ANALYSIS OF THESE
RESERVES. THE FIRST IS AN
ANNUAL TUITION PROPOSAL SENT TO
THE CALIFORNIA STATE STUDENT
ASSOCIATION IN COMPLIANCE WITH
THE WORKING FAMILY TRANSPARENCY
ACT. THE SECOND IS A DOCUMENT
CALLED THE ACADEMIC
SUSTAINABILITY PLAN WAS
MENTIONED EARLIER THIS IS
AFTERNOON REQUIRED BY THE TWO
THOUSAND SIXTEEN BUDGET ACT.
THIS IS DAN ABILITY PLAN
FORECAST FUTURE CSU ENROLLMENT
TRENDS AND OTHER PERFORMANCE
MEASURES. BOTH OF THESE
DOCUMENTS FOCUSED ON ONGOING
BASED BUDGET OPERATING
ASSUMPTIONS NEITHER WERE
INTENDED OR REQUIRED TO
CONSIDER THE USE OF ONE TIME
DESIGNATED RESERVES TO FUND
ONGOING YEAR IN AND YEAR OUT
ACTIVITIES THAT IS THE REASON
AND THE ONLY REASON WHY THESE
DOCUMENTS DID NOT INCLUDE AN
ANALYSIS. OF DESIGNATED RESERVE
FUNDS. HOWEVER MOVING FORWARD
AND IN THE SPIRIT OF FULLY
IMPLEMENTING THE AUDIT REPORTS
RECOMMENDATIONS WE WILL
INCORPORATEIN ALL BUDGET
INTUITION RELATED DOCUMENTATION
A DESCRIPTION OF A ONE TIME
DESIGNATED RESERVES CLARIFYING
WHAT THEY ARE USED FOR AND WHAT
THE ARE NOT USED FOR AN
EMPHASIZING THE USE OF SUCH A
ONE TIME FUNDS FOR ONGOING
EXPENSES. IS NOT FISCALLY
PRUDENT. NOW REGRETTABLY
IMMEDIATELY FOLLOWING THE AUDIT
REPORTS PUBLICATION IT'S
SENSATIONALIZED LANGUAGE
PREDICTABLY WAS AMPLIFIED IN
DISTORTED IN EXTENSIVE
STATEWIDE MEDIA COVERAGE THESE
INFLAMMATORY ARTICLES REPORTS
MISLED AND CONFUSE THE PUBLIC
IN SUCH A WAY THAT RISKED
UNFAIRLY TARNISHING THE
CALIFORNIA STATE UNIVERSITY
REPUTATION TO THE DETRIMENT OF
ITS FACULTY AND STAFF AND IS
MORE THAN FOUR MILLION STUDENTS
AND ALUMNI. INTO THAT. I HAVE
TAKEN IN CAN TAKE GREAT UMBRAGE
IS WHY I HAVE AND WILL ONTINUE
TO STAND UP FOR THIS REVERED
INSTITUTION IS PROUD COMMUNITY
OF STUDENTS ALUMNI FACULTY
STAFF BOTH PAST PRESENT AND
FUTURE. AND IT IS WHY I AM SO
APPRECIATIVE OF THE OPPORTUNITY
TO ADDRESS YOU TODAY TO CLARIFY
THE RECORD FOR YOU AND FOR ALL
THE CALIFORNIA STATE
UNIVERSITIES STAKEHOLDERS.
WE'RE HAPPY TO ANSWER ANY
QUESTIONS YOU MIGHT HAVE AND
LOOK FORWARD TO CONFIRMING THAT
WE HAVE BEEN AND CONTINUE TO
BE. DILIGENT AND RESPONSIBLE
STEWARDS OF THE RESOURCES
ENTRUSTED TO US AND CAPABLE AND
TRUSTED PARTNERS OF HE STATE
IN THE EXECUTION OF OUR
EDUCATIONAL MISSION. I NOW TURN
IT OVER TO SEE ISSUE TRUSTEE
JACK MCGRORY FOR HIS OPENING
REMARKS JACK THANK YOU MISS
REGARD. AFTERNOON THANK YOU FOR
THE OPPORTUNITY TO SPEAK BEFORE
YOU TODAY. MY NAME IS JACK
MEMORY AND IT'S AN HONOR
PRIVILEGE IN A GREAT
RESPONSIBILITY TO SERVE ON THE
BOARD OF TRUSTEES. OF THE
CALIFORNIA STATE UNIVERSITY
SYSTEM. I AM NOT SURE THE
BOARDS COMMITTEE ON AUDIT AND
THE VICE CHAIR OF ITS COMMITTEE
ON FINANCE. FROM MY PERSPECTIVE
AND GENERALLY PLEASED AT THE
AUDIT REPORTS SPECIFIC
FINDINGS. I SERVE THE CITY
MANAGER OF THE CITY OF SAN
DIEGO DURING THE NINETEEN
NINETIES DURING A FIVE YEAR
RECESSION AND I CAN TELL YOU.
BASED ON MY OWN PERSONAL
EXPERIENCE MAINTAINING ADEQUATE
RESERVES IS MORE THAN A BEST
PRACTICE. IS AN ESSENTIAL
FISCAL PRACTICE. HISTORY HAS
SHOWN US THAT SO OFTEN
CALIFORNIA SCHOOL DISTRICTS
MUNICIPALITIES. THAT HAVE
EXPERIENCE FINANCIAL CRISES OR
EVEN BANKRUPTCY ARE THOSE THAT
HAVE NOT HAD A PROPER RESERVE
POLICY TO MITIGATE. AGAINST
EMERGENCIES ARE ECONOMIC
DOWNTURNS. I SEE THIS AUDIT
REPORTS DEMONSTRATING THAT THE
CALIFORNIA STATE UNIVERSITY HAS
APPROVED RESERVE POLICY IN
PLACE AND IT TO RESERVE FUNDS
ARE BEING PROPERLY USED. I DO
AGREE WITH THE STATE AUDITOR
THEN IT'S TIME WE RE RE VISIT
OUR RESERVE POLICY. AN
ESSENTIAL WHITE NOTED THE AUDIT
REPORT OFFERS MUCH HELPFUL
GUIDANCE IN THIS REGARD. I'VE
BEEN CARDS THE CHANCELLOR'S
OFFICE STAFF IN THE BOARD OF
TRUSTEES TO EMBRACE THE RICH
REPORTS RECOMMENDATIONS. OUR
SYSTEM WILL BE STRONGER FOR ITS
IMPLEMENTATION. NOW PLEASE
WE'VE ALREADY TAKEN STEPS TO
ENSURE THAT WE WILL DO SO IN A
TIMELY MANNER. HOWEVER I WELL
I'M SUPPORTIVE OF MANY OF THE
AUTO REPORTS SPECIFIC FINDINGS
AND RECOMMENDATIONS I LIKE
CHANCEL WIDE. TAKE ISSUE WITH
THE CHARACTERIZATION OF THE CS
USE DESIGNATED RESERVE FUNDS AS
DISCRETIONARY SURPLUS YOU CAN
GO TO THAT WEBSITE AND YOU WILL
FIND A SPECIFIC DESIGNATED
PURPOSE FOR ALL OF THOSE ONE
POINT FIVE BILLION DOLLAR
RESERVES. THEY'RE NOT TO THE
COUNTRY THEY SERVE SPECIFIC AN
ESSENTIAL PURPOSES FURTHER THAN
SENSATIONALIZE LANGUAGE
THROUGHOUT THE REPORT BEST
EXAMPLE FIGHT IN ITS TITLE WE
SEIZE UPON BY THE MEDIA THESE
ARE NOT DISCRETIONARY SURPLUSES
THESE ARE IMPORTANT REQUIRED
RESERVES THAT WE NEED TO
MAINTAIN THE PHYSICAL
INTEGRITY. OF OUR SYSTEM. MANY
MANY OF THE MEDIA REPORTS
REFERRED TO US AS HAVING HIDDEN
THE BALL WITH RESPECT TO THESE
RESERVES IS RESERVE RESERVES
HAVE BEEN DISCLOSED THEIR IN
EVERY ANNUAL AUDITED STATEMENT.
AND THEY'VE BEEN DISCUSS WITH
THE BOARD OF TRUSTEES. AS A
MEMBER OF THE BOARD CAREFULLY
REVIEWED ALL THE INFORMATION
DOCUMENTATION AND PRESENTATIONS
REGARDING RESERVES. IS MY FIRM
BELIEF THAT THE CSU HAS BEEN
NOTHING SHORT OF FULLY
TRANSPARENT AND OPEN ABOUT ITS
RESERVE POLICY. IN APPRECIATIVE
OF THE OPPORTUNITY TODAY TO
CONFIRM THIS FOR ALL THE
UNIVERSITIES STAKEHOLDERS. AND
I JUST WANNA SAY A COUPLE
THINGS WE TALK A LOT ABOUT
TUITION INCREASES AND IT SOUNDS
LIKE WE THE TRUSTEES HAVE BEEN
INCREASING TUITION ON A REGULAR
BASIS. THERE'S BEEN ONE TUITION
INCREASE IN THE PAST EIGHT
YEARS. AND IF YOU LOOK AT THE
RESERVES FROM THE STATE OF
CALIFORNIA PERSPECTIVE AND YOU
LOOK AT THE RAINY DAY PART OF
THOSE RESERVES. THAT IS FOUR
HUNDRED MILLION DOLLARS THAT'S
THREE WEEKS WORTH OF OPERATING
REVENUE. MOST PEOPLE WOULD TELL
YOU RATING AGENCIES AND OTHER
FISCAL EXPERTS THAT THAT'S NOT
ENOUGH. WE SHOULD HAVE A LARGER
EMERGENCY RESERVE. I SHOULD
ALSO NOTE THAT MY SENTIMENTS
ARE SHARED BY THE OTHER
TRUSTEES. IN A CHAIRMAN ADAM
DAY WHO ARE FULLY AWARE IN
SUPPORT OF THE CS USERS ARE
POLICY. I BELIEVE CHAIRMAN DAYS
SHOULD A LETTER TO THIS EFFECT.
I LOOK FORWARD TO ANSWERING ANY
QUESTIONS YOU MIGHT HAVE I KNOW
TURN OVER CHANCELLOR WHITE WHO
HAS A FEW ADDITIONAL OPENING
REMARKS. PLEASE WAS RIGHT. I
WISH TO ELABORATE FOR JUST A
MOMENT ON TO THE AUTO REPORTS
OVER WRITING SEEMS AND TO THE
ISSUES THAT CAME UP EARLIER ON.
CHEERS AND SALAS. THE TWO WATER
REPORT SEEMS WHILE NOT
UNTRUTHFUL. WE'RE SIGNIFICANTLY
MISLEADING AND WHICH HAVE BEEN
FURTHER DISTORTED AND
EXAGGERATED IN THE MEDIA. THE
FIRST IS THE NOTION THAT WE
WERE ACCUMULATING AN ENORMOUS
SURPLUS WHILE NEARLY DOUBLING
TUITION DURING THE AUDIT PERIOD.
LET ME ADDRESS TUITION FIRST.
DURING THE GREAT RECESSION AND
I HAVE NO IDEA ALLOW REFER TO
IT AS A GREAT RECESSION I DON'T
KNOW ANYBODY WAS GREAT FOR. BUT
DURING THAT PERIOD OF TIME THE
CSU LOS MASSIVE AMOUNTS OF
STATE FUNDING. IN FACT AT ONE
POINT WE LOST ALMOST ONE THIRD%
OF OUR STATE APPROPRIATION IN
JUST A MATTER OF MONTHS. NINE
HUNDRED AND SEVENTY ONE MILLION
DOLLARS IN A MATTER OF MONTHS
FROM A GENERAL FUND
APPROPRIATION OF TWO POINT NINE
SEVEN ONE DOWN TO TWO BILLION
DOLLARS. TO PARTIALLY MITIGATE
THAT DRAMATIC LOSS OF STATE
FUNDS CSU WAS FORCED TO
INSTITUTE CAN PERCENTAGE
INCREASES TO OUR TUITION AND
RECOVERED TWO THIRDS ONLY OF
THAT LOSS AND WE CUT EXPENSES.
BUT SINCE THAT TIME OVER THE
COURSE OF THE PAST EIGHT YEARS
AS TRUSTEE MCGRORY JUST SAID WE
HAVE INCREASED TUITION ONLY
ONCE BY TWO HUNDRED AND SEVENTY
DOLLARS. IN TWO THOUSAND AND
SEVENTEEN WHEN WE DID NOT
RECEIVE THE EXPECTED IN NEEDED
STATE APPROPRIATION. AND THAT
REVENUE WAS ALL DIRECTED THE
GRADUATION INITIATIVE TWENTY
TWENTY FIVE. THE EARLY RESULTS
OF WHICH ARE SHOWING INITIATIVE
TO BE OF A TRANSFORMATIVE
BENEFIT. TO OUR STUDENTS INTO
THE STATE OF CALIFORNIA. WE ARE
ALSO GRATEFUL THAT OUR STATE
APPROPRIATION. COME TWENTY
SIXTEEN SEVENTEEN HAS RETURNED
TO THE PRE RECESSION LEVELS AND
TODAY WE SERVE FORTY ONE
THOUSAND MORE STUDENTS AND TEN
YEARS AGO. DURING THIS TIME
FRAME THAT IS THE SCOPE OF THIS
AUDIT AND LARGELY IN RESPONSE
TO THE LESSONS OF THE RECESSION
WE DILIGENTLY SAYS SIDE FUNDS
IN RESERVE TO PROTECT AGAINST
THE NEXT INEVITABLE ECONOMIC
DOWNTURN. ARE RESERVED FOR
BUILT AND THINK ABOUT THIS FOR
A MOMENT AT A RATE OF LESS THAN
ONE PERCENT. OF OUR ANNUAL
OPERATING BUDGET A MODEST
GROWTH ON A PERCENT OF BUDGET
BASIS. THE IMPLICATION THAT WE
HAVE BEEN HOARDING MONEY WHILE
REPEATEDLY RAISING TUITION IS
FUNDAMENTALLY MISLEADING. SO
WHERE DID THE RESERVE FUND COME
FROM REALLY ONLY TWO WAYS FIRST
THEY COME FROM THE RETURNS ARE
ON OUR INVESTMENTS MANAGED
EXPERTLY BY OUR INVESTMENT
COMMITTEE. AND SECOND WE GET
THEM BY EXPENDITURE SAVINGS AS
I MENTIONED EARLIER THETWO
HUNDRED AND TWO THOUSAND
FOURTEEN LAW THAT SHIFTED
FINANCIAL RESPONSIBILITY FROM
CAPITAL PROJECTS FROM THE STATE
TO THE CSU AT THAT TIME WE
INSTRUCTED OUR CAMPUSES TO
BEGIN TO SET ASIDE RESERVE
FUNDS TO COVER A PORTION OF
THOSE PROJECTS TO MODERNIZE
AGING BUILDINGS ARE. BUILDING
FACILITIES. AND AT THE END OF
EACH FISCAL YEAR WHEN THERE'S A
SAVINGS IN OPERATING COSTS WE
HAVE BUDGET IS A CERTAIN AMOUNT
OF MONEY AND HAVE SPENT LESS WE
PUT THAT SAVINGS INTO SPECIFIC
DESIGNATED RESERVES. THOSE ARE
THE SOURCES OF OUR RESERVE
FUNDS. THIS LEADS ME THEN TO
ANOTHER IMPLICATION THAT I FIND
FUNDAMENTALLY UNFAIR. AND WE'VE
BEEN USING TUITION DOLLARS TO
FUND OUR RESERVES. IT'S ANOTHER
NOTION THAT WHILE NOT
UNTRUTHFUL IS PROFOUNDLY
MISLEADING HERE'S WHY. FIRST
THE AUDIT REPORT ONLY FOCUSED
ON STATE TRUST FUNDS HELD
OUTSIDE THE STATE TREASURY.
THERE IS NO STATE GENERAL FUND
APPROPRIATION IN TRUST FUNDS.
IN FURTHER AS REQUIRED BY LAW
IN THE BUDGET ACT TO MEET OUR
OPERATING COSTS WE SPEND NO
MORE THAN ONE TWELFTH OF OUR
GENERAL FUND ALLOCATION EACH
MONTH FOR THE FIRST TEN MONTHS
OF THE FISCAL YEAR. AND THEN
SPEND THE BALANCE OF OUR STATE
ALLOCATION EVERY MAY. WE USED
TO OCEAN DOLLARS EVERY MONTH AS
WELL. SO AT THE END OF THE
FISCAL YEAR IN JUNE WE'VE SPENT
DOWN A 100% OF OUR STATE
APPROPRIATION AND MOST BUT NOT
ALL OF OUR TUITION DOLLARS.
ANYTHING THAT'S LEFT IN THE
UNSPENT MONEYS RISE I MENTIONED
A MOMENT AGO WE DESIGNATE AS
RESERVES THEY ARE BOUND TO BE
TUITION DOLLARS OR THE INTEREST
EARNINGS. OUR FINANCIAL
OPERATIONS MANY OF WHICH ARE
STATUTORILY MANDATED INSURER
THAT ANY OPERATIONAL FUNDS THAT
ARE NOT SPENT AT THE END OF THE
YEAR CAN ONLY COME FROM TUITION
OR INTEREST. THE AUTO REPORTS
IMPLICATION THAT WE
DISPROPORTIONATELY USED OUR
TUITION DOLLARS TO BUILD OUR
RESERVES IS THEREFORE
MISLEADING. YOUR SALAS YOU
RAISE THAT MANY MEMBERS WERE
CONCERNED ABOUT THE SAN DIEGO
STATE PARKING SITUATION. SEND
YOU THE STATE INCREASED PARKING
RATES THE QUESTION IS TO THE
INCREASE PART WAYS TO BUILD A
PARKING STRUCTURE FOR RETAIL
DEVELOPMENT. THE ANSWER IS NO.
A STUDENT PARKING RATES WERE
NOT INCREASED TO BUILDER
FINANCES PARKING STRUCTURE. THE
PARKING STRUCTURE OF WAS BUILT
IN TWO THOUSAND SEVENTEEN THE
FEES WERE INCREASED IN PARKING
IN TWO THOUSAND FIFTEEN WHICH
IS THE FIRST INCREASE HE DONE
IN TEN YEARS. GROCERY FOOD AND
RETAIL CUSTOMERS AND CAMPUS
VISITORS. HOURLY PARKING FEES
IT FULLY FINANCE AT PARKING
FACILITY THERE'S NOT ANY
STUDENT PARKING FEE MONEY
FINANCING IN. UNIVERSITY
FINANCE THE PROGRAM WITH THE
HOURLY RATES PAY FOR. AND IS
THE TIES IN WITH THE CONCERTED
EFFORT TO INCREASE ON CAMPUS
STUDENT HOUSING AND SAN DIEGO.
AN ASSEMBLY MEMBER MCCARTY HE
ASKED THE QUESTION DO WE USE
THE RESERVES AT ALL IN THE LAST
RECESSION YOU KNOW IT'S
INTERESTING WHEN YOU LOOK AT
THE WINDOW OF THE AUDIT. IT
STARTS RIGHT AFTER THE
RECESSION HIT. SO THE WINDOW OF
THE AUDIT DOES NOT INCLUDE THE-
NINE HUNDRED AND SEVENTY ONE
MILLION DOLLAR REDUCTION IN OUR
STATE APPROPRIATION. NOR DOES
IT INCLUDE THE FACT WE SPENT
THREE HUNDRED SEVENTY EIGHT
MILLION DOLLARS IN THE TWO
THOUSAND EIGHT NINE YEAR FROM
USERS RIDGE REDUCING A RESERVE
BALANCES FROM SIX HUNDRED AND
SEVENTY FOUR MILLION THEN. DOWN
TO TWO HUNDRED AND NINETY SIX.
SO THEY WERE USED DURING THAT
RECESSION. AND THEY HELPED
TRANSITION CAMPUSES DURING THAT
TIME WHEN WE LOST THAT NINE
HUNDRED SEVENTY ONE MILLION
DOLLARS. AND IT ALSO RESULTED
IN A DECREASE IN SERVICING
COURSES FOR STUDENTS. AND
REGRETTABLY FURLOUGHS FOR ALL
OF OUR EMPLOYEES WERE FULLY
IMPLEMENTED. AND THEN AFTER
THAT PERIOD OF TIME WE STARTED
TO SYSTEMATICALLY GROW OUR
RESEARCH BACK UP. IN
ANTICIPATION OF THE FUTURE. SO
ANY CLOSE BY SAYING THAT WE
APPRECIATED AGREE WITH MANY OF
THE AUDIT REPORT FINDINGS AT
THE CSU COMMITS TO IMPLEMENTING
AND HEARING TO EACH OF THE
REPORT'S RECOMMENDATIONS. I
ALSO COMMIT TO THE FOLLOWING.
THE CALIFORNIA STATE UNIVERSITY
DID NOT AND DOES NOT HIDE MONEY
A RESERVE POLICIES IMPORTANT IN
FACT IT IS ESSENTIAL IN IS IN
THE BEST INTERESTS OF OUR
STUDENTS ARE EMPLOYEES ARE
FACULTY AND STAFF IN THE STATE
OF CALIFORNIA. WE'RE HAPPY TO
ANSWER ANY QUESTIONS YOU MIGHT
HAVE THANK YOU THANK YOU FOR
YOUR COMMENTS WILL MOVE TO THIS
PAYING AND THEN WILL OPEN UP
FOR QUESTIONS. GOOD AFTERNOON
COMMITTEE CHAIRS AND MEMBERS
THANK YOU FOR HAVING ME AND FOR
GIVING CSU STUDENTS A SEAT AT
THE TABLE AS WE DISCUSSED THE
STATE WATER REPORT. MY NAME IS
GRACE PAYING AND I'M A
SOPHOMORE AT SAN JOSE STATE
UNIVERSITY. THIS YEAR I'M
SERVING AS A CAL STATE STUDENT
ASSOCIATIONS A VICE PRESIDENT
OF LEGISLATIVE AFFAIRS. AND MY
ROLE I AM TASKED WITH
AMPLIFYING THE NEEDS AND
CONCERNS OF OUR HALF A MILLION
CSU STUDENTS. I BALANCE THE
MAGNITUDE OF THIS
RESPONSIBILITY SIMULTANEOUSLY
WITH OTHER NORMAL COLLEGE
STUDENT THINGS LIKE MY MENTAL
HEALTH. MY ACADEMIC RETENTION.
IN MY FINANCIAL BURDENS FROM
THE COST OF COLLEGE ATTENDANCE.
TODAY I WOULD LIKE TO OFFER THE
STUDENT PERSPECTIVE. ON THE
AUDIT AS WELL AS GIVE SOME
RECOMMENDATIONS FOR COURSES OF
ACTION MOVING FORWARD. I'D
FIRST LIKE TO COMMEND THE CSU
FOR THEIR COMMITMENT TO
COMMUNICATION WITH STUDENT
LEADERS MOVING FORWARD.
FOLLOWING THE AUDIT WE HAVE HAD
THREE MEETINGS FOR THE
CHANCELLOR'S OFFICE REGARDING
OUR CONCERNS AND GAPS IN
INFORMATION. I WOULD LIKE TO
ESPECIALLY THANK VICE
CHANCELLOR RALLY EIGHT FOR HIS
COMMITMENT TO MAKING THE CSU
BUDGET MORE DIGESTIBLE AND
ACCESSIBLE TO STUDENTS MOVING
FORWARD. PER OUR LAST MEETING I
LOOK FORWARD TO SEEING HOW WE
CAN WORK TOGETHER ON REFORMING
THE TRANSPARENCY. PORTAL AND
POTENTIALLY THE RESERVES POLICY.
BUT LET'S BE REAL. A MAJORITY
OF CSUSTUDENTS HAVE NOT HEARD
ABOUT THE FINDINGS OF THE STATE
AUDIT. AND FOR THOSE WHO HAVE
READ IT IT IS STILL REALLY HARD
TO UNDERSTAND THE TRUTH WHEN
YOU'VE BEEN. WHEN YOU'VE HEARD
TWO VERY DIFFERENT PERSPECTIVES
THE CSU HAS DEFENDED THEIR
RESERVE THE STATE AUDITOR'S
REPORT OFFICE REPORTS IT AS A
SURPLUS IN THE FOLLOWING AND A
FOLLOW UP MEETING WITH VICE
CHANCELLOR RALLY A WHEN ASKED
OF THIS YEAR'S YOU COULD SHOW
US WHERE IN LAST YEAR'S
FINANCIAL STATEMENT. IS THE
RESERVE SLASH SURPLUS DISCLOSED
THE LINE ITEM IS LABELED AS
INVESTMENTS. SO WHILE THERE'S
BEEN GREAT DEBATE BETWEEN THE
TWO STAKEHOLDERS OVER WHAT TO
CALL THESE FUNDS. I THINK WE
CAN ALL DO A BETTER JOB AT
ENGAGING THE MOST IMPORTANT
STAKEHOLDER OF ALL. WHICH OUR
STUDENTS. AT THE END OF THE DAY
WE ARE TALKING ABOUT THE
ALLEGED MISMANAGEMENT OR NON
DISCLOSURE OF DIRECT STUDENT
DOLLARS. THE TRUTH SHOULD NOT
BE THIS HARD TO PURSUE. AS A
REPRESENTATIVE FOR CSU STUDENTS
I SUPPORT AND DEFEND THE SYSTEM
AND HAVING A RESERVE AS PART OF
THEIR FIDUCIARY DUTY. THE MAIN
CONCERN FROM STUDENTS IS NOT
THAT THE CSU HAS A RESERVE. BUT
IT'S THAT WE DID NOT KNOW ABOUT
IT AND WE STILL CONTINUE TO
HAVE GAPS IN INFORMATION. THE
CHANCELLOR'S OFFICE DID NOT
DISCLOSE THE RESERVES TO
STUDENTS WHEN PROPOSING TUITION
INCREASES. EVEN THOUGH THE BEEN
MANDATED BY LAW TO PROVIDE
STUDENTS WITH INFORMATION
ABOUT. ALTERNATIVES TO RAISING
TUITION SO THAT WE CAN PROVIDE
INPUT AND ASK QUESTIONS. THIS
IS PROBLEMATIC ESPECIALLY
BECAUSE TUITION DOLLARS
DIRECTLY CONTRIBUTE TO RESERVE.
ONE OF OUR BIGGEST GAPS IN
KNOWLEDGE INCLUDE NOT KNOWING
WHAT THE ROLE THAT TUITION
PLAYS AND REACHING THE CS USE
GOALS FOR A LARGER RESERVE. I
SPENT THE PAST FEW WEEKS TRYING
TO SIFT THROUGH THE DIFFERENT
INFORMATION BEING GIVEN TO
STUDENTS BUT ALSO GAUGING HOW
STUDENTS HAVE BEEN FEELING
ABOUT THE AUDIT. I ACTUALLY
JUST CAME FROM US CAL STATE
FULLERTON FOR MARCY S. UNITY
CONFERENCE COMPRISING A STUDENT
LEADERS ACROSS ALL OF OUR
TWENTY THREE CAMPUSES WHILE
MANY STUDENTS CANNOT BE IT AN
ATTENDANCE TODAY DUE TO
WRAPPING UP OUR CONFERENCE. I
GOT OVERWHELMING FEEDBACK
REGARDING THE FINDINGS AND
RECOMMENDATIONS OF THE PARKING
SIDE OF THE AUDIT SPECIFICALLY
IT SEEMS LIKE THE PARKING
DISCUSSION HAS NOT HAD THE
FOCUS DESERVES IN COMPARISON TO
THE RESERVE. SLASHER POSSIBLY
DEBATE. DISCUSSING THE COSTA
STUDENT PARKING AND HOW IT
AFFECTS COLLEGE AFFORDABILITY I
WOULD LIKE TO CHALLENGE WITH
THE SYSTEM AND THE STATE TO DO
BETTER. BECAUSE A SEEMINGLY
LOWER EXPENSE MEANS 20% OF THE
MONTHLY PAYCHECK FOR YOUR SALAS
ARE AS CAL STATE LA STUDENT. I
MEAN STUDENTS LIKE OF JANA
JOHNSON FROM CSU CHANNEL
ISLANDS HOW TO CUMULATE MANY
TICKETS LAST YEAR FROM HAVING
TO PRIORITIZE OTHER COSTS LIKE
BOOKS AND FOOD BEFORE
PURCHASING A PERMIT. AND
ACCORDING TO THE AUDIT FINDINGS
FOUR OF OUR CAMPUSES HAVE BUILT
EXPENSIVE NEW PARKING
FACILITIES THAT ONLY MINIMALLY%
TO INCREASED PARKING
CAPACITIES. THIS MEANS NOT ONLY
STE NOT ONLY OUR STUDENTS
HAVING TO CHOOSE BETWEEN BUYING
YOUR TEXTBOOKS ARE PURCHASING A
PERMIT. STUDENTS ARE ALSO
PAYING FOR THE EXPENSIVE
PERMITS JUST TO NOT BE ABLE TO
FIND A SPOT OR MISS CLASSES DUE
TO HOW LONG IT TAKES. I AM GLAD
THAT THE RECOMMENDATIONS
REGARDING ALTERNATIVE
TRANSPORTATION I BEING ADOPTED
BY THE CSU BUT THERE STILL
REMAINS A GREAT IN EQUITY AND
THE COST. OF PARKING ON CAMPUS.
THE AUDIT FOUND THAT IN ALL
FOUR CAMPUSES SURVEYED STUDENTS
PAY SIGNIFICANTLY MORE FOR PARK
AND THEN STAFF OR FACULTY.
STUDENTS ARE DISAPPOINTED THAT
NONE OF THE RECOMMENDATIONS BY
THE AUDITOR DIRECTLY ADDRESS
THIS ISSUE. THE HIGH COST OF
PARKING IS NOT JUST THE CAMPUS
ISSUE THE CHANCELLOR'S OFFICE
DO NOT REQUIRE CAMPUSES TO
PROVIDE REQUIRED INFORMATION
BEFORE IT APPROVED FUNDING FOR
NEW PARKING FACILITIES. AS A
CHANCE IS OFFICE IS CURRENTLY
WORKING ON PROPOSALS FOR TWO
NEW PARKING STRUCTURES WE ECHO
THE STATE AUDITOR'S
RECOMMENDATION TO UPDATE THEIR
PARKING FACILITIES REQUEST
POLICY AND MANDATE STUDENT
REPRESENTATION ON ALTERNATE
TRANSPORTATION COMMITTEES. TO
CLOSE OUT I WOULD LIKE TO THANK
EVERYONE FOR YOUR TIME AS WE
ALL WORK TOWARDS MAKING THE CSU
MORE ACCESSIBLE. AND MORE
AFFORDABLE WE LOOK FOR TO
FOLLOWING UP WITH THE STATE
AUDITOR'S RECOMMENDATIONS
FIGHTING FOR INCREASED
TRANSPARENCY AND STUDENT
REPRESENTATION. AND WORKING
WITH THE CSU AND THE STATE TO
MAKE IT HAPPEN THANK YOU THANK
YOU THANK YOU FOR YOUR COMMENTS
AND FREEWAYS AND FOR BEING HERE
WITH THAT BEFORE WE OPEN UP FOR
QUESTIONS LET ME JUST ASK
BECAUSE I THINK THERE'S GONNA
BE A LOT OF BUDGET QUESTIONS IF
WE HAVE MISS HOWELL AND
PERHAPS. MR STAND HOUSE AND
MAYBE BACK UP TO. UP TO THE
TABLE HERE IS WE START ASKING
SOME OF THESE QUESTIONS. BUT SO
I HAVE A COUPLE EXPERTS HERE AS
WELL BROWN WELLS OKAY IF WE
COULD GET CHAIRMAN AND IS
ROUGHLY HAVE ADDITIONAL CHAIRS
BUT MAYBE AS QUESTIONS COME UP
IF WE NEED TO BRING THEM UP WE
WILL. PERFECT YEAH TO SWEETIE
HAS PASSED A YEAH BECAUSE I
KNOW THEY BOTH HAVE STAFF AS
WELL BUT- IF WE NEED ADDITIONAL
FOLKS WILL BRING THEM UP AS
WELL. SO LET'S JUST TALK ABOUT
MAYBE I'LL JUST KICK OFF. WELL
ONCE OF CLARITY AROUND THE
NUMBERS IN. THE WAR ACTUALLY
TALKING ABOUT SO CAN YOU JUST
EXPLAIN HOW. THE CAMPUSES AND
THE CHANCELLOR'S OFFICE.
ACCUMULATE OPERATING FUND
RESERVES. FOR EXAMPLE DO THE
CAMPUSES CREATED A LINE ITEM IN
THEIR ANNUAL EXPENDITURE BUDGET.
SPECIFICALLY EARMARKED FOR
RESERVES AND. MAYBE WHAT OTHER
WAYS AS RESERVES ARE GENERATED.
JUST SO IT'S VERY TRANSPARENT
AND VERY CLEAR. WELL I GUESS
THEY'RE BRED WELLS IS HERE ON
THE TECHNICAL SIDE AS WE SET UP
SOBRE ACCOUNTED HERE'S A TON OF
ACCOUNTS WE KNOW THERE'S THESE
RESERVES ARE. DISTRIBUTED
ACROSS THE SYSTEM THERE ARE
SOME THAT ARE HELD IN THE
CHANCELLOR'S OFFICE FOR OUR
OPERATIONS OR SOMEONE HELD A
CHANCE OF OPERATE OFFICE. THEY
GO OUT TO CAMPUS IS FOR EXAMPLE
IF YOU RECALL OF A FEW YEARS
AGO WE RECEIVED A HUNDRED
TWENTY MILLION DOLLARS FOR
ENROLLMENT. ONE TIME MONEY WELL
WE DISTRIBUTED TO A QUARTER OF
THAT NOW ALMOST A HALF OF THAT.
THE OTHER BALANCE SEARCH WITH
US EVEN THOUGH. IT'S NOT OUR
RESERVE FOR OPERATION TO
RESERVE THAT WERE HOLDING FOR
THE CAMPUSES. BUT OUT ON THE
CAMPUS IS THEN OFTENTIMES
RESERVES THERE ARE SOME THAT
ARE HELD AT THE CAMPUS
CENTRALLY FOR MOSTLY FOR THE
CONSTRUCTION PROJECTS AND FOR
THE- INEVITABLE. OF ECONOMIC
DOWNTURN BUT THERE'S ALSO
RESERVES HELD FIFTY DEAN LEVEL
FOR PROJECTS. THAT COME. OUT TO
THE COLLEGES AND CAMPUS SO
THERE'S QUITE A LAB. BUT FOR
OUR FINANCIAL PURPOSES THE
ORGAN ROLLED UP TOGETHER KNOWS
OF THE NUMBERS THAT LEAD UP TO
THE- ONE POINT FIVE BILLION
DOLLARS. OKAY ADDED I THINK ONE
OF TRYING TO JUST UNDERSTAND IS
LIKE HOW CAN WE SEE THOSE
RESERVES WHAT THOSE AMOUNTS ARE
I WAS LOOKING AT IT THAT YOU'RE
MAY THIRTIETH LETTER TO THE
STATE AUDITOR. WERE EVERYTHING
WAS CLASSIFIED THAT THE
RESERVES ARE USING THREE MAJOR
WAYS WHICH YOU'VE TALKED ABOUT
IN YOUR COMMENTS AS WELL WHICH
WAS TO. MANAGE SHORT TERM
OBLIGATIONS AND COMMITMENTS TO
PROVIDE FUNDING FOR CAPITAL
INFRASTRUCTURE REPAIRS AND
MAINTENANCE. AND THREE TO HELP
INSURE THAT OPERATING COSTS CAN
BE PAID DURING TOUGH ECONOMIC
AND FISCAL. YEARS SKI JUST
EXPLAIN HOW. EACH OF THOSE
CATEGORIES JUST CAN YOU EXPLAIN
BECAUSE THEY SEEM VERY LIKE
BROAD CATEGORIES I KNOW THEY
ARE BROAD CATEGORIES AND DEAL
WITH TWENTY THREE CAMPUSES IN
VARYING SIZES OF OPERATING
BUDGETS AND MATURITY OF TIME
EIGHT THEY VERY FROM A YOUNG
CAMPUS THAT HAS OPERATING
RESERVES THAT ARE SMALL
NUMERICALLY. US WE LOOK AT
OUTSTANDING COMMITMENTS THAT
THE CAMPUS IS MADE THAT MAY BE
A SHORT TERM OBLIGATION AND
SOME ENCUMBRANCES IT MAY BE
TRYING TO CREATE A NEW PROGRAM
THAT REQUIRES UPFRONT
INVESTMENTS ACADEMIC PROGRAM
APART UPFRONT INVESTMENTS
BEFORE THERE'S REVENUE
GENERATED BY BY STUDENTS IN
THOSE PROGRAMS COURSE THE
FINANCIAL AID PIECES THERE AND
ANTICIPATION FUTURE DEBT
SERVICE ON THE- ON THE CAPITAL
SIDE PROBABLY DIFF CAMPUS IS
THE NEWER ONES HAVE LESS
DEFERRED MAINTENANCE TO TAKE
CARE OF LIKE SAN MARCOS BRAIN
RELATIVELY BRAND NEW CAMPUS
FIFTEEN YEARS OLD. COMPARED TO
SAY CHICO OR HUMBLED WHERE YOU
KNOW THERE'S REALLY A LOT OF
FIFTY SIX SO AGAIN THIS IS DONE
AT A CAMPUS LEVEL BECAUSE OF
THE UNIQUE CIRCUMSTANCES OF
THESE TWENTY THREE CAMPUSES
FROM ARCADIA DOWN TO SAN DIEGO
OTHER DONE IN CONSULTATION
OBVIOUSLY WITH THE CAMPUS
PRESIDENT TO THE END OF THE DAY
IS THE AUTHORITY AT THE CAMPUS
LEVEL THREE AND OUR CFO
INFIRMITIES THEY PUT TOGETHER
PLEASE ALSO REVIEWED TO DISCUSS
BY MY CFO STEVE REALLY WHO'S
HERE. EXECUTIVE VICE CHANCELLOR
FOR THE CSU SYSTEM TO MAKE SURE
THE CAMPUS IS HER MANAGING
THEIR THEIR RESERVE PROPERLY WE
LOOK OVERSEE THEIR DEBT RATIOS
ALL THAT MATTERS AND HOW WHEN
WE GO OUT FOR BONDING AND SO
FORTH ARE MONEY RECENT INTEREST
RATE SO THERE'S A LOT OF
OVERSIGHT OF THE CENTRAL OFFICE
THERE'S A LOT OF VERY ABILITY
BECAUSE WE PROVIDE DATA TANAMI
WITH OVERSIGHT TO OUR CAMPUSES
WE CAN GET MUCH MORE SPECIFIC
IF YOU WANT BRED TO GET INTO
JAZZ IF IT COUNTS BUT IT'S
PRETTY NOT WANTING TO DO IS
JUST TRY TO FIGURE OUT BASS
LINE. THE TRACK OF HOW THEY'RE
IDENTIFIED WHAT THOSE FUNDS ARE
IF IT'S. FOR AFTER A WHILE A
PROJECT OR FOR ANOTHER ITEM.
OBSERVERS THEY'RE ENCUMBRANCES
FOR CONTRACTS HUNDRED MILLION
DOLLARS CONTRACT REWARDED
ENTERED INTO THAT WE HAVE TO
PAY. STE SOME CAMPUSES WANT TO
BUILD NEW FACILITIES I KNOW IS
INVOLVED SAN DIEGO STATE WE
BUILT A HUNDRED MILLION DOLLAR
ENGINEERING COMPLEX. A THIRD OF
IT CAME FROM CAMPUS TO CAMPUS A
THIRD OF IT CAME FROM THIS FROM
THE CSU AND A THIRD CAME FROM
FLAT TO PRE. THE THIRD THE CAME
THE CAMPUS THEY SAVE UP THE
MONEY TO PUT IN THE CASH TO
COVER THEIR THIRTY MILLION
DOLLAR SIGN. THAT'S IN THESE
NUMBERS. SO THAT IS NOT. THE RE
A RESERVE IS A LITTLE BIT OF A
MISNOMER. AND THE MONEY THEY
CHIU APPROPRIATED LAST YEAR.
ONE TIME MONEY FOR YOUR
INCREASE ENROLLMENT. SITS IN A
IN AN ACCOUNT THAT HAS A
HUNDRED SIXTY NINE MILLION
DOLLARS AND- THAT'S PART OF
THESE NUMBERS. SO HOW WOULD YOU
ACCOUNT BECAUSE EARLIER WE
HEARD. ONE POINT FIVE BILLION.
BELIEVE THE STATE AUDITOR'S.
OFFICE SAID NINETY FIVE MILLION
OF THAT WAS INCOME MURDER TIED
TO CONTRACTS AND YOU'RE SAYING
THERE'S MORE THAN THAT. WELL
YOU YOUR YOUR APPROPRIATIONS
FROM LAST YEAR TO FOR FURTHER
FOR MOMENT SITS THERE BECAUSE
IT'S GONNA BE SPENT ONE TIME
OVER FOUR YEARS. SO SITTING IN
IN IN THIS IN AN ACCOUNT THAT
IS IN THIS BROAD ONE POINT FIVE
BILLION DOLLAR CATEGORY. YOU
REALLY HAVE TO GO ON TO THE
WEBSITE AND BREAK IT BREAK IT
THESE NUMBERS DONE THE REAL
RAINY DAY RESERVE WHICH IS
EQUIVALENT TO YOUR RAINY DAY
RESERVE. IS FOUR HUNDRED
MILLION DOLLARS. THE REST OF IT
IS AND WHAT'S CALLED DESIGNATED
RESERVES. AND AGAIN FOR A
MILLION DOLLARS IS THREE WEEKS
WORTH OF OPERATING REVENUE WITH
THAT THIS IS NOT. A HUGE
RESERVE AND MOST PEOPLE SAYS
UNDER ITS UNDER WHAT IT SHOULD
BE. CORRECT AND I THINK THAT'S
PROBABLY WHERE PEOPLE ARE
HAVING SOME CONFUSION FOR THE
CLARITY BECAUSE I HEARD THAT
MISTER WHITE OF HIS COMMENTS
SAY. LESSON ABOUT 1% LESS THAN
1% OF OPERATING FUNDS FOR
RESERVE BUT THEN WHEN WE DID
THE MATH IN THE EARLIER PANEL.
IF YOU DO ONE POINT FIVE BASED
ON ONE POINT FIVE BILLION WITH.
THE YEARLY CSU ALLOCATION THAT
AMOUNTS TO ABOUT TWENTY
PERCENT. SO THE TWENTY
PERCENTERS AT 1% I THINK THAT'S
WHERE WERE EVERYONE HAS. THESE
QUESTIONS ON THE CLARITY AND
WHAT THESE NUMBERS ACTUALLY.
MEAN AND WHAT THEY MEAN TO THE
PUBLIC ARE THESE. IS IT NINETY
FIVE MILLION ONLY IN COVERED IS
IT MORE BECAUSE IT'S- TAKING
INTO ACCOUNT THAT. MAYBE THEY
WERE BUDGET ACTIONS WE'VE SAID
WE WANT TO INCREASE ENROLLMENT
AND SO I THINK THAT'S WHAT
WE'RE TRYING TO FIGURE OUT HERE
TODAY AND I THINK THAT'S WHERE.
A LOT OF AB THE CONFUSING
HEADLINES AND EVERYTHING ELSE
IS COMING FROM AND WE'RE OPEN
TO GET SOME CLARITY ON. I
NOTICED RUDY HAS A QUESTION ON
THIS VERY ISSUE. ON SO WHAT
WE'RE LOOKING AT IS. ACTUALLY
FOUR HUNDRED MILLION WHEN YOU
TAKE AWAY. THE OTHER CAMPUSES
THE TWENTY THREE CAPS IS THAT
THE DIFFERENCE. BETWEEN THE-
ONE POINT FIVE. WHERE DO YOU
GET THE FOUR HUNDRED MILLION.
OR OR OR IT ANOTHER WAY TO ASK
THE SAME QUESTION THE TWENTY
THREE CAMPUSES AND THE MANY. OF
THE- HELD IN RESERVE OR
ENCUMBERED IN THE TWENTY THREE
CAMPUSES IT IS WHAT AMOUNT. OF
THE ONE POINT FIVE MILLION.
BECAUSE THE ONE POINT FIVE
MILLION INCLUDES MONEY. ONE
POINT FIVE BILLION. INCLUDES
THE MONEY ON THAT IN THE TWENTY
THREE CAMPUSES CORRECT YES. AND
IS THAT THE DIFFERENCE. THE
FORTY MILLION IN OTHER WORDS
I'M GOING BACK TO ASSEMBLY
MEMBER TINGS QUESTION AND OUT
AND I WANT TO TRY TO.
DIFFERENTIATE BETWEEN THE CSU
AND THE UC. AND DOCTOR WHITE
SINCE YOU WERE IT UC RIVERSIDE.
AND WE. VERY GRATEFUL FOR YOUR
SERVICE THERE AT UC ARE ARE THE
ARE THE TWO SIS ISN'T DIFFERENT
DO DOES UC. I HAVE. RESERVES ON
THE CAMPUS LEVEL OR OR THE
RESERVES IN THE UC ONLY AT THE
PRESIDENT'S. OFFICE IF YOU
COULD EXPLAIN THE DIFFERENCES
AT THE TIME I WAS CHANCERY. A
UNIVERSITY CALIFORNIA RIVERSIDE
WE HAD RESERVES ON CAMPUS. AS
WELL AS THE RESERVES IN THE. IN
THE OFFICE OF THE PRESIDENT AND
THE SAME IS TRUE AT CALIFORNIA
STATE UNIVERSITY WE HAVE
RESERVES HELD IN THIS
CHANCELLOR'S OFFICE MY OFFICE.
AND INNER RESERVES HELD ON THE
CAMPUS IS A TWENTY IN THE
RESERVES AND IN THE YOUR OFFICE
AMOUNTS TO. SO THE RESERVE FOR
OUR OPERATING COSTS AT THE
CHANCELLOR'S OFFICE. IS AROUND
SEVENTY MILLION DOLLARS. BUT WE
ALSO HOLD RESERVES FOR THE
CAMPUS IS SORRY FOR EXAMPLE OF
THE HUNDRED AND TWENTY MILLION
DOLLARS FOR A ROMAN BOTH THE
CAME IN ONE TIME FUNDING A YEAR
OR SO AGO. WE HAVE BEEN HOLDING
ABOUT NINETY MILLION OF THAT
DISTRIBUTED OUT OF 20% THE
FIRST YEAR ABOUT 25% THE SECOND
YEAR TO THOSE RESERVES ARE HELD
IN THE CHANCELLOR'S OFFICE BUT
THEY'RE NOT. HELD AGAINST OUR
OPERATING COSTS THROUGH THE
EARMARKED ALREADY FOR THE
CAMPUS RIGHT. OUR ROUTE SEVENTY
MILLION DOLLARS. OF OUR RESERVE
THAT WE HOLD THIS FOR MY
OPERATIONS ONLY. ABOUT A LITTLE
LESS THAN TWENTY FOR ECONOMIC
UNCERTAINTY TWENTY MILLION.
ABOUT TWENTY FIVE MILLION FOR A
CAPITAL IMPROVEMENT OF OUR
FACILITY. WE AREGOING THROUGH
A RENOVATION OF THIS BUILDING
WHICH ISN'T FROM THE TWENTY.
FIVE YEAR MARK SO PUTTING IN
NEW ELEVATORS NEW H. FAQ AND
LIGHTING AND SEISMIC ETCETERA.
AND THEN WE HAVE ABOUT TWENTY
SIX MILLION IN SHORT TERM
OBLIGATIONS. SO WE DON'T SIT ON
A LARGE RESERVE AT ALL. FOR THE
OPERATIONS. I DO WANT TO MAKE.
GERMAN CELLS I THINK ONE OF THE
CONFUSION CERTAIN. POINTS THAT
MAKES THIS COMPLEX. IS. THE
DISTINCTION BETWEEN THE USE OF
ONE TIME MONEY. VERSES A BASED
BUDGET ON GOING RESOURCE AND SO
WHEN THERE IS A RESERVE FUND
IT'S ONE TIME MONEY LIKE A
PIGGY BANK IF YOU STARTED IF
YOU MADE A COMMITMENT ON THAT
THAT WAS GONNA LAST AND PREFER
TO LIKE. HIRING PERMANENT
FACULTY. IN OUR SERVERS YOU
CAN'T DO THAT ON ONE TIME
RESERVES HI SO WE'VE HAD A
PRETTY CLEAR PRACTICE. TO NOT
USE ONE TIME MONEY. FOR ONGOING
NEEDS OF THE UNIVERSITY. AND
THE ONGOING NEED TO THE
UNIVERSITY ARE SUPPORTED.
VASTLY IN THE MAIN BY STATE
ALLOCATION STATE APPROPRIATION
GENERAL FUND CUT IN BY OUR
TUITION DOLLARS NET TUITION
DOLLARS AFTER FOR FINANCIALLY.
THANK YOU DON'T APRECIATE THAT
CLARITY AND LET ME JUST KIND OF
PIGGY BACK OFF WHAT
ASSEMBLYMEMBER MEDINA WAS. WAS
SAYING BECAUSE LOOKING AT THE
YACHT IT AND YOU KNOW PAGE
FORTY EIGHT OF THE OUT OF
REPORT. AND I SEE THAT THERE'S
A SURPLUS BALLOTS FOR EACH
CAMPUS BUT THEY VARY
CONSIDERABLY ACROSS THE
CAMPUSES. YOU KNOW YOU LOOK AT
CAMPS LIKE FRESNO STATE THE
NINTH LARGEST CSU BUT HAS A
SIXTEEN. LARGEST SURPLUS. SAN
DIEGO STATED CONTRAST THE
FOURTH LARGEST CSU CAMPUS. AS A
LITTLE MORE THAN TWICE AS MANY
RESERVES AS LIKE SAY CSU
FULLERTON WHICH- NOW QUIRK
SILVA WAS TALKING ABOUT AND
LONG BEACH WHICH ARE THE SECOND
AND THIRD LARGEST CAMPUSES.
SORT OF TRYING TO FIGURE OUT IS
YOU KNOW WHAT IS THE CRITERIA
CSU USES FOR DETERMINING HOW
LARGE ITS OVERALL RESERVE
SHOULD BE. ALSO WHAT CRITERIA
DOES YES YOU PROVIDE THE
CAMPUSES TO HELP THEM DECIDE
HOW MUCH TO MAINTAIN AND
RESERVE. CONSIDERING THE VERY
ABILITY BETWEEN. THE ENTIRE
SYSTEM. YEAH MY NAME IS BRAD
WELLS I WORK A CHANCE OFFICE IN
BUSINESS AND FINANCE THANK YOU
THE TABLE YOU'RE REFERENCING ON
PAGE FORTY EIGHT. I BELIEVE THE
TOTAL CASH. BALANCE IS AT A
POINT IN TIME SO I THINK WE
OUGHT IT IS AS OF JUNE
THIRTIETH TWO THOUSAND EIGHTEEN
THOSE WITH THE CASH BALANCES.
FOR ALL FUNDS ASSOCIATED WITH
THE UNIVERSITY. THAT WOULD
INCLUDE HOUSING MONIES PARKING
MONEY STUDENT UNION MONIES.
WHAT THE AUDITOR'S DESCRIBED
BUT THE AUDIT REPORT IS
DESCRIBED AS RESTRICTED FUNDS
IN ADDITION IT INCLUDES THE-
RESERVE OUT THAT WERE
DESCRIBING HERE EARLIER IS ONE
POINT FIVE MILLION SO THAT'S
THE TOTAL POT. THE REASON IS
DIFFERENT SO DIFFERENT BY
CAMPUSES BECAUSE CAMPUSES ARE
QUITE DIFFERENT THE SMALLEST
CAMPUS WE HAS HAVE HAS AN
ANNUAL BUDGET OF FORTY SEVEN
MILLION. THE LARGEST BUDGET WE
HAPPENED LARGEST CAMPUS WE HAVE
HAS AN ANNUAL BUDGET OF FOUR
HUNDRED EIGHTY FIVE MILLION. TO
THE ORDER OF MAGNITUDE
DIFFERENCE IN SIZE IT'S ALSO
DIFFERENT THOUGH BECAUSE
CAMPUSES HAVE MUCH SOME
CAMPUSES HAVE MUCH LARGER
STUDENT HOUSING PROGRAMS AGAIN.
ONE OF THE SOURCES OF MONEY AND
THAT PAGE FORTY EIGHT TABLE IS
FROM STUDENT HOUSING. SOME CAPS
HAVE VERY LARGE STUDENT UNION
SO THERE ARE QUITE A VARIETY OF
CIRCUMSTANCES THAT GENERATE
CASH ON A CAMPUS AND THAT
REPORT IS REALLY THE CASH
BALANCE. AT THAT POINT IN TIME
JUNE THIRTIETH TWO THOUSAND
EIGHTEEN. WITH REGARD TO
RESERVES NOW WE'RE GONNA SHOP
I'M GONNA SHIFT HERE BACK TO
THE ONE POINT FIVE. MILLION
DOLLARS WHICH IS STILL IN THE
ONE POINT FIVE BILLION DOLLARS
USING ONE POINT FIVE BILLION
DOLLARS WORTH OF RESERVES. THAT
IS A SUBSET OF THE TOTAL THAT'S
ONLY THE AMOUNT OF MONEY IN OUR
WHAT WE CALL OUR OPERATING
FUND. IT'S THE GENERAL ACTIVITY
OF THE UNIVERSITY THAT WE THAT
WE USED TO PAY FACULTY TO
INSTRUCT THAT WE PAY ACADEMIC
ADVISORS TO ADVISE STUDENTS WE
PAY FACILITIES PEOPLE TO.
MAINTAIN THE BUILDINGS IT'S OUR
IT'S OUR OPERATING FUNDS OF THE
ONE POINT FIVE BILLION. IS THAT
PORTION OF THE TOTAL IT'S
ATTRIBUTED TO THE OPERATING
FUND. AND WITHIN THAT ONE POINT
FIVE BILLION. WE HAVE
DESIGNATED IN ONE OF THE ELEVEN
ACCOUNTS THAT WE DESIGNATE FOR
PURPOSES OF RESERVES WE HAVE
DESIGNATED FOUR HUNDRED SEVEN
MILLION FOR ECONOMIC ECONOMIC
UNCERTAINTY THAT'S A SPECIFIC
ACCOUNT THAT EACH CAMPUS USES
ACROSS THE SYSTEM WE HAVE A
COMMON DEFINITION FOR EACH OF
THESE ELEVEN ACCOUNTS. AND
CAMPUSES MAKE DECISIONS AS THE
CHANCELLOR AND TRUSTEE MAJORITY
OF IDENTIFIED. TO CONTRIBUTE TO
THAT RESERVE FOR DESIGNATED
PURPOSES. GOT IT AND SO THAT'S
DIRECT AS A DOCTOR. LET ME
REPHRASE SO I WAS ONE OF THE
RECOMMENDATIONS NOT A REPORT
WAS TO SPECIFY HOW THESE FUNDS
WERE. TO BE IDENTIFIED AND
YOU'RE SAYING YOU'VE DONE THAT
WITH THE ECONOMIC UNCERTAINTY
TO THE POINT OF FOUR HUNDRED
FIFTY MILLION DOLLARS. FOUR
HUNDRED UP YES IT FOR ECONOMIC
SPECIFIC THE ECONOMIC
UNCERTAINTY ECONOMIC OFFICIALLY
IT'S FOUR HUNDRED AND SEVEN
MILLION DOLLARS OF FOR ME
ASKING QUESTIONS ABOUT THE
LOWER LEVEL OF DETAIL SO THERE
ARE. THERE ARE THREE ACCOUNTS
WITHIN THE OPERATIONS RESERVE
SO THE OPERATIONS RESERVE IS
FOUR HUNDRED FIFTY NINE MILLION
IT'S COMPRISED OF THREE
ACCOUNTS. ONE ACCOUNT FOR
ECONOMIC UNCERTAINTY ONE FOUR
SEVEN. WHICH IS FOUR SEVEN ONE
FOR CATASTROPHIC EVENTS THAT'S
AN AMOUNT THAT WE RESERVE TO
PAY SELF INSURED RETENTION. ON
INSURANCE COVERAGE. AND THERE'S
AN AMOUNT OF ELEVEN MILLION
DOLLARS THAT WAS NOT SPECIFIED
IT'S HELPING ANOTHER ACCOUNT
BUT IT WAS NOT SPECIFIED FOR
SPECIFIC PURPOSE. SO THOSE
THREE COUNTS COMPRISES THE
GROUP OPERATIONS THERE ARE FIVE
ACCOUNTS THAT COMPRISE THE
GROUP SHORT TERM OBLIGATIONS
AND THERE ARE THREE ACCOUNTS
THAT COMPRISE THE GROUP OF
CAPITAL. THOSE LEVEL OF
ACCOUNTS WHICH ARE AGAIN
RECORDED AT THE CAMPUS LEVEL
ALL TWENTY THREE CAMPUSES USING
A COMMON SET OF DEFINITIONS.
THAT LEVEL OF DETAIL WAS OF
COURSE PROVIDED DURING THE
AUDIT BUT. THE THREE CATEGORIES
ENDED UP BEING THE WAY WE
DESCRIBE IT FOR PUBLIC PURPOSES
GENERALLY SPEAKING WITHOUT
GOING THROUGH THE ELEVEN
ACCOUNTS THAT YOU KNOW THIS
LONG WINDED EXPLANATION I JUST
GAVE YOU. CUT IT YEAH AND I'M
JUST TRYING TO GET THE
TRANSPARENCY WHERE THAT IS AND.
WHAT IBM CORRECT IN ASSUMING
THAT THIS IS NOW ALSO AVAILABLE
ON THE PORTAL A OF MAY. YES SO
YES IT'S ABOUT YES IT'S
AVAILABLE. RIGHT DECISIONAL
OPTIONS RIGHT NOW
ASSEMBLYMEMBER MCCARTY'S LIKE
EDGING TO GET IN HERE. AND THEN
WE HAVE SUCH A RAW CONSIDERED A
MINING. THANK YOU THAT CHANCE
SO WHAT I HAVE I HAVE TWO
ISSUES I WANT TO. TO DIG INTO A
LITTLE BIT WITH YOU LIKE AND
FRANKLY A LOT MORE OF I THINK
THESE ARE THE TWO MOST MOST
PRESSING ISSUES SO DURINGOUR
ANNUAL BUDGET DISCUSSION WE
TALK ABOUT THAT THE DESIRES OF
THE CSU SYSTEM WHICH I'M A
PRODUCT WHICH I. FULLY SUPPORT.
IN A FOUR ENGINE FIFTY
SOMETHING STUDENTS THE STATE OF
CALIFORNIA. AND SOME OF THOSE
ARE ONGOING REQUESTS AND ONE
TIME AND WE'VE DONE A LOT TO
ADDRESS THOSE SINCE THE-
RECESSION. SOME OF THOSE ARE
ONE TIME NOW. AND THAT'S WHAT I
THINK I WANT TO PUSH BACK A
LITTLE BIT BECAUSE YOU SAID IT
WOULD BE IRRESPONSIBLE TO USE
THESE TO. HIRE MORE STAFF TO
INCREASE ENROLLMENT USE THESE
THESE RESOURCES. BUT THERE ARE
ONE TIME REQUEST THAT WE'RE NOT
ABLE TO. ALWAYS ADDRESS AND-
I'M NOT SURE THAT THIS ONE
POINT FIVE BILLION WAS EVER. ON
THE TABLE TO BE TALKED ABOUT
HEY. WE COULD HAVE A- A STATE
CSU. PARTNERSHIP IN ABOUT
BANQUET THAT WITH WITH YOU SEE
IF YOU TIMES YOU KNOW WE PUT
IN. X. AMOUNT OF MONEY FOR WILL
PUT X. MONEY MONEY MORE FOR THE
GRAD INITIATIVE. OR DEFERRED
MAINTENANCE. FOR SOME OF OUR-
ISSUES THE WEEDS HERE FROM OUR
STUDENTS BASIC NEEDS. YOU KNOW
HUNGER. THE FOOD PANTRY SOME OF
THESE ARE ARE ONE TIME
REQUESTED I THINK THOSE COULD
COULD COULD POTENTIALLY BE
LEGITIMATE USES. OF THIS POT
CAM RESPONSIBLE. SO THAT WAS
NEVER REALLY ON THE TABLE FOR
US TO. TO DIG INTO IN AND
PROPOSE AND POTENTIALLY. WORK
AT SO HOW WOULD YOU RESPOND TO
THAT THAT THAT THESE. COULD BE
USED FOR POTENTIALLY
RESPONSIBLE. INVESTMENTS IN OUR
STUDENT POPULATION AND THE
SYSTEM. MANY YEARS AGO CENTER
ASSEMBLY MEMBER MCCARTY WHEN I
WAS. A DEAN IT AT OREGON STATE
UNIVERSITY I. HI AND BECAME
PROVOST I LEARNED THAT YOU CAN
SPEND A DOLLAR ONLY ONE TIME.
AND IN THERE ARE A LOT OF X.
DEANS OF FORMER DEAN SUED
DIDN'T UNDERSTAND A DISK
DISTINCTION BETWEEN ONE TIME
USE IS AN ONGOING USES. SO WE
HAVE AS A MATTER OF PRACTICE TO
TRY NOT TO DO PERMANENT
INVESTMENT ON TEMPORARY MONEY.
COULD YOU JUST IS NOT
SUSTAINABLE. NOW BECAUSE THIS
IS MISTER WELL JUST POINTED OUT.
ON OUR. OPERATING DESIGNATED
RESERVES WE ACTUALLY SPECIFY
WHAT THEY'RE USED FOR IT'S A AN
EXPENSE ITEM FREE TO THE
CAMPUSES AND FOR US IN THE
CENTRAL OFFICE. WHEN WE TALK
ABOUT GROWING THE STUDENT
ACCESS FOR THE UNIVERSITY AND
THE NEED TO INCREASE THE NUMBER
OF TENURE TRACK FACULTY WHICH
IS A BIG ISSUE FOR OUR FACULTY
IN FOR THE SENATE AND FOR US
AND FOR THE STATE. HOW WE JUST
DON'T THINK THAT ONE TIME
YOU'LL MAKE THOSE KIND OF
HIRING DECISIONS ON ONE TIME
MONEY I'M NOT ASKING I'M ASKING
ABOUT. I COULD BRING YOUR
BUDGET REQUEST LIST YOU BROUGHT
US FOR FIVE YEARS IN A ROW. THE
MAJORITY OF THAT IS ONGOING
REQUESTS BUT A BIG PART OF THAT
ARE ONE TIME ASKS OF US THAT
THE GRANT INITIATIVE THAT WE
FUNDED. LAST COUPLE YEARS AS IT
WAS BUT IT WAS ABOUT ONE TIME
REQUEST FROM THE SYSTEM. WE
FUNDED SOME ONE TIME EMISSIONS
AS WELL SO THAT'S THEM LOOKING
AS FAR AS SOMEONE ONE TIME
MEASURE MCCARTY ACTUALLY
GRADUATION INITIATIVE HAS NOT
BEEN ON ONGOING REQUESTS. AND
EVERY YEAR THAT WE'VE ADDED.
SEVENTY FIVE MILLION DOLLARS TO
IT HAS BEEN ONGOING BASE.
INCREASES. IN A ONE TIME TO
RAISE TUITION. AS AN ONGOING
FUND SOURCE IF. AS LONG AS OUR
STUDENT POPULATION STAYS UP.
AND THAT WAS USED ALSO FOR
GRADUATION INITIATIVE. SO THE
ONE TIME DOLLARS REALLY ARE
USED MOSTLY FOR. CAPITAL
PROJECTS COBBLE TOGETHER MONEY
TO MAKE A DOWN PAYMENT ON
RENOVATING ASSIGNS BUILDING
IT'S ACTUALLY MAINTENANCE
DEFERRED MAINTENANCE THINGS OF
THAT NATURE THAT HAVE A SHORT
TERM HORIZON TO THEM. YOU KNOW
WE'RE PUTTING IN A NEW THE
CONSOLIDATED HUMAN RESOURCE
SYSTEMS EXPENSIVE TO DO OVER
MULTIPLE YEARS AT A ONE TIME
EXPENSE TO SET MONEY ASIDE. FOR
THINGS OF ANY WE DO A UNIFIED
IT. PROJECTS SO YOU'RE RIGHT
THOUGH THAT THE STATE HAS GIVEN
US ONE TIME MONEY FOR ACADEMIC
THINGS AS WELL AND ONE OF THE
DIFFICULTIES WE'VE ALWAYS MADE
THE CASE FOR AS WELL WE'RE
GRATEFUL FOR WITH AND WE HAVE
TO REALIZE THAT WE STAFF AT ON
A TEMPORARY BASIS ON A
PERMANENT BASIS BECAUSE WE HAVE
NO ASSURANCE THAT OF THAT
PROGRAM STUDENTFUNDING STOP SO
WE CAN CONTINUE IT. SO IT IS
IT'S A DELICATE COMPLEX MATTER
FOR US TO MANAGE WELL I DAHLE
DISAGREE AND WE CAN SIT AND GO
OVER OUR OUR BUDGETS THE LAST
FIVE YEARS AND WE'VE
APPROPRIATE PLENTY OF
ALLOTMENTS OF ONE TIME MONEY
KNOWING THAT'S NOT STAFFING IS
TO ADDRESS YOU KNOW MENTAL
HEALTH PROGRAMS BASIC NEEDS FOR
A ONE TIME LIMITED STAFF
POSITIONS KNOWING I'M NOT GOING
TO BE ON THE LOOK I KNOW A LOT
OF OTHER PEOPLE HAVE QUESTIONS
HERE TO SET FEEL LIKE A
CONGRESSIONAL HEARING ONLY A
FIVE MINUTE SO. I WANTED TO THE
NOTION TO THE NOTION AS FAR AS
THE METAL AND DISCLOSURE. WE
GET ALL THAT BUT THAT THE
WHOLE. I DON'T THINK YOU CAN
MOVE FROM THE FACT THAT.
CONTRARY TO WHAT YOU SAID
DURING THE RECESSION. THE GREAT
RECESSION REALLY WAS THAT THE
THAT THE MAGNITUDE. OF THE WAS
TAKEN FROM THE CSU SYSTEM. THE
AMOUNT OF MONEY GOING TO THE
CSU WENT DOWN BUT THE AMOUNT IN
YOUR RESERVE FOR YOUR OPERATING
FUND SURPLUS WHERE YOU WANT TO
CALL IT WHY NOT SO IT JUST
DOESN'T MAKE SENSE TO MEAN TO
STUDENTS OUT THERE THAT THAT IN
A TIME WHEN YOU NEED THE MONEY
THE MOST. HE DIDN'T NECESSARILY
USE IT BUT IT INCREASE. IF YOU
ASK OF A LOOK THIS IS WHEN YOU
HAD TO ASK. PEOPLE LIKE DR
WEBER TO TAKE A 10% PAY CUT HER
TAKER FOR LOW. AND STUDENT
CLASSES WERE SLASHED WE
INCREASE STUDENT FEES. YOU KNOW
THAT THE ALL THE IMPACTS ON THE
CAMPUS IT WAS PAINFUL FOR
STUDENTS. CAN YOU WOULD SAY
THAT YOU KNOW YOUR BANK
ACCOUNTS INCREASED DURING THOSE
TIMES THEY WOULD SAY. YOU KNOW
W. TO AT I MIGHT. HI HOW DOES
THIS HAPPEN HOW DOES IT WE NEED
THE MONEY THE MOST IT'S THEIR
AN INCREASE SO THAT THAT JUST
DOESN'T. MAKE SENSE IS NO LOGIC
BEHIND THAT SO. HOW DO YOU
RESPOND SO I WOULD RESPOND BY
SAYING THAT THE BREAD ROLLS
GONNA TO CLARIFY THE DETAILS
HERE FOR YOU. I WASN'T IN THE
CSU THEM BUT I WAS IN THE
UNIVERSITY OF CALIFORNIA AND
LIKEWISE WE DO THE SAME
PROCESSOR OF. ACTUALLY MANY OF
US TOOK A 15% FROM A CUT IN OUR
SOURS AND OTHERS 210% ON A FOR
LOW BASIS. THAT GREAT RECESSION
AFFECTED SO MANY PEOPLE IN
CALIFORNIA ACROSS THE NATION
ACROSS THE WORLD WE WERE NOT.
IMMUNE TO THAT RECESSION AND
EVERYBODY HAD TO DO THEIR
PEACE. HELLO YEAH. SPREAD A
LITTLE BIT ABOUT THE DETAILS ON
YOUR QUESTION. TRY TO BE VERY.
ST THE COMPARISON FOR TERMS OF
USING THE RESERVE ON THAT CHART
OCCURRED BETWEEN. SEVENTEEN
EIGHTEEN IT'S BETWEEN SEVEN
EIGHT EIGHT NINE WHICH WAS IT
WHICH ISN'T ON THE CHART. IF
YOU STEP BACK ONE YEAR WE USED
THREE HUNDRED AND SEVENTY EIGHT
MILLION DOLLARS. TO HELP
MITIGATE THE REDUCTIONS THAT
WERE WE WERE EXPERIENCING AT
THAT TIME. THAT WASN'T HOW DO
YOU HOW DO YOU STATE THAT FROM
EIGHT OH NINE TO NINE TEN THE
AMOUNT ESSENTIALLY DOUBLE OF
YOU ASKED I WAS ANSWERED THE
QUESTION ABOUT WAS THE MONEY
USED BY THAT TIME. THE CUTS HAD
BEEN IMPLEMENTED THE FURLOUGHS
HAVE BEEN BEGUN IN THE TUITION
INCREASES THAT HAPPENED. AND
ONE MIGHT SUGGEST THAT WE OVER
RECENT RESPONDED BUT AT THAT
TIME NOBODY REALLY KNEW HOW BAD
THIS WAS GOING TO CONTINUE TO
BE. SO IT YOU WILL BE MIGHT SIT
TODAY LOOKING BACK TEN YEARS
AND DECIDED THAT THAT WAS. TO
PRUDENT PERHAPS BUT AT THE TIME.
WE USED WE HAD YOU'D GET TAKEN
OUR RESERVES DOWN FROM OVER SIX
HUNDRED MILLION DOWN TO THREE
HUNDRED THANK CUT THEM IN HALF
AND WE'RE DEALING WITH MID YEAR
REDUCTION SO IT WAS IT WAS A
QUITE A DIFFERENT CIRCUMSTANCE
I THINK WHAT EVERYONE'S TRYING
TO UNDERSTAND THAT ANY JUST I'M
SORRY TO DESPONDENT TO YOUR
QUESTION THE OTHER CUT IS THE
SEVEN HUNDRED MILLION DOLLARS
SO. THAT GREEN LINE IS NOT CASH
THAT GREEN LINE IS. RESERVES.
YOU'LL YOU'LL NOTICE WHEN THE
STATE BORROWED SEVEN HUNDRED
MILLION DOLLARS IN CASH FROM
THE C. ISSUE TO MAKE PAYROLL.
THAT'S NOT THAT'S NOT REFLECTED
ON THE CHART. IT'S APPROPRIATE
THAT IS NOT REFLECTED BECAUSE
IT WAS CASH. THAT WAS MOVED
FROM THE C. ISSUE TO THE STATE
TO MAKE PAYROLL. THE STATE HAD
SAID AT THE TIME AS YOU RECALL
THAT. IT WAS GONNA BE IS GONNA
PAY THAT MONEY BACK. SO IT WE
HAD A RECEIVABLE. SO THAT THAT
CHARGE IS NOT A MEASURE OF.
CASH IT'S A MEASURE OF BUDGETED
RESERVE AND AMOUNT THAT WE
ANTICIPATE USING AT SOME POINT
IN THE FUTURE FOR THE KINDS OF
THINGS THAT YOU'VE BEEN
DISCUSSING. BUT YOU WOULD THINK
THAT THE WORST YEAR IF I RECALL
AND I WAS IN HEARING DOCTOR PAN
AND THE ONLY ONE WHO WASN'T
JUST LEFT. HIS THAT THE TEN WAS
THE WORST YEAR SEE WITH THINK
THAT YEAR WHEN. YOU SEE THAT
AMOUNT IN THERE CSU. PIGGY BANK
TO GO DOWN AND IT IS LIKE IT'S
A RAINY DAY FUND THERE'S A
MONSOON OUTSIDE AND SO YOU
WOULD THINK THAT WOULD GO. NOT
QUITE ZERO BUT SIGNIFICANTLY.
DOWN SO THAT'S WHAT MAKES US
SCRATCH OUR HEAD IS A COURSE IT
MAY BE LOGICAL TO HAVE THIS
POLICY FOR THE FUTURE BUT AFTER
SITTING HERE TODAY SHOULD TO BE
GREAT THIS. RESERVE GOING
FORWARD TO PROTECT US AGAINST
YEAH. BUT YOU GO BACK LOOK AT
PAST HISTORY LIKE WHEN WE DID
HAVE A NEED FOR THIS. IT DIDN'T
QUITE PLAY OUT THAT WAY THAT'S
WHY I THINK IT GIVES. THAT'S
GREAT CONCERN COUPLE OF THE
FACT THAT WE GET LINED UP OUT
THE DOOR OF STUDENTS THAT ARE
BUDGET HEARINGS TALK ABOUT.
PRESSING NEEDS TODAY SELLERS
THOSE THINGS JUST I THINK
CREATE A PICTURE FOR US THE
CRUISE A LOT OF. YEAH COMFORT
AND WE HAVE TO RECALL THAT THAT
CHARTER ONLY DEALS WITH A
PORTION OF THE- RESERVE THAT
IS. THE AS AS THE STATE
APPROPRIATION WAS REDUCED. AND
THE AMOUNT OF REVENUE COLLECTED
FROM STUDENT TUITION INCREASED
THAT MONEY BECAME AVAILABLE TO
US FOR RESERVE. PRIOR. TO THAT.
THE MONEY WAS HELD IN THE STATE
TREASURY. WE DIDN'T HOLD.
BALANCES WE THE BIG THEY
WOULD'VE READ THEY WOULD HAVE
BEEN PART OF THE REVERSION
PROCESS. WHICH AS YOU KNOW
TAKES THREE YEARS SO WE WERE
THAT BALANCES. IN THE GENERAL
FUND THAT WOULD BE RECORDED ON
THAT ON THAT TABLE. SO THERE'S
A SIGNIFICANT CHANGE IN A AND
PRACTICES THAT OCCURRED AT THE
SAME TIME THAT IS. TUITION WAS
INCREASED. COOPERATION WAS
REDUCED AND THE BALANCE IS
REPORTED IN A SINGLE FUND HELD
OUTSIDE THE STATE TREASURY.
OKAY THANK YOU. I APPRECIATE
THAT I WAS LOOKING AT PAGE
FIFTEEN AS WELL AND JUST THE
CHART LOOKS TROUBLING RIGHT
BECAUSE IT IMPLIES THAT. YOU
KNOW WHY I WAS THE CSU
INCREASING ITS RESERVE DURING
THE GREAT RECESSION WHEN YOU
SHOULD BE DRAWING ON THE
RESERVE AS OPPOSED INCREASING
AT. RIGHT AND THAT'S PROBABLY A
LOT OF THE ANGST OF MISSED
MCCARTY. SEEN IN HIS
SUBCOMMITTEE AND PROBABLY
EVERYONE THAT'S ON DEALING WITH
BUDGET IN EACH OF US. AS WE
WERE VISITED BY MANY STUDENTS
OVER THE LAST. WELL SINCE THE
GREAT RECESSION. RIGHT WITH
THAT WILL MOVE TO SENATOR ROTH
THAN ASSEMBLYMEMBER MURATSUCHI
THAN SENATOR MINING AND SENATOR
CROSS. THANK YOU MISTER CHAIR.
ST SITTING HERE LISTENING TO
THIS I HAVE TO. AGREE WITH MS
PAYING IT'S SO DIFFICULT AT
SOME POINTS TO TELL WHAT WE'RE
DEALING WITH HERE WE TALK ABOUT
ONE POINT. FIVE BILLION DOLLARS
IN RESERVE I'M NOT AN
ACCOUNTANT SO I'M CERTAINLY NOT
AN AUDITOR. BUT IT SOUNDS LIKE
IT'S A BIT OF SEMANTICS WE TALK
ABOUT A SURPLUS WE TALK ABOUT A
RESERVE BUT YOU KNOW WHEN WE
APPROPRIATE ONE HUNDRED MILLION
OR TWO HUNDRED MILLION DOLLARS
TO THE CALIFORNIA STATE
UNIVERSITY. FOR A THREE YEAR
PROGRAM MORE FOR YOUR PROGRAM
AND LEAVE IT TO YOU TO ALLOCATE
I PERSONALLY AS IT DOES NOT
HONOR AND NOT AN ACCOUNTANT.
DON'T CONSIDER. THE ONE HUNDRED
MILLION OF THE TWO HUNDRED
MILLION AS A SURPLUS. AND I
DON'T EVEN CONSIDER IT AS A
RESERVE. IF YOU'VE SAID IT ALL
UP THE FIRST YEAR TO BE GONE IF
YOU HOLD IT FOR THREE AND
SENATE THE THIRD YEAR IT'S GONE
BUT IT'S NOT THE SURPLUS IS NOT
RESERVE NOW MAYBE THOSE
RECOUNTING AN AUDIT TERMS THAT.
I DON'T UNDERSTAND WHICH IS
QUITE POSSIBLE. BUT I WHAT I
LIKE TO SEE HERE IS AND I KNOW
YOU'RE GOING TO DO THIS IS THAT
YOU. YOU SEPARATE OUT THOSE
THINGS THAT WE THROW AROUND
HERE IS APPARENTLY PART OF THE
ONE POINT FIVE BILLION WHICH
ARE CERTAINLY NOT SURPLUS. IN A
REALLY NOT A RESERVE. AND LET'S
GET DOWN TO WHAT WE REALLY ARE
TALKING ABOUT IN TERMS OF
DOLLARS SO THAT. WE CAN DECIDE
WHETHER REALLY OUTRAGED OR OR
NOT QUITE AS OUTRAGED BECAUSE
OF. OF WHAT YOU'RE HOLDING IN
WHAT YOU'RE DOING WITH IT. SO
THAT'S ONE COMMENT I HAVE AND
THEN JUST ANOTHER COMMENT. NOT
TO PUT ANYBODY ON THE SPOT BUT
IT HAS TO DO WITH PARKING. AND
I KNOW MY COLLEAGUE IN THE
ASSEMBLY AND I AND OF MEMBERS
OF OUR- RESPECTIVE
SUBCOMMITTEES. HAS SPENT A LOT
OF TIME OVER THE LAST YEAR
TRYING TO FIGURE OUT HOW TO.
DRIVE MORE MONEY DOWN TO THE-
STUDENTS AS PART OF THE PROCESS
WHETHER IT'S EXPANDING CAL
GRANTS INCREASING THE NUMBER OF
COMPETITIVE COVERAGE SLOTS OR
ANY NUMBER OF. OF ISSUES WERE
TRYING TO DO WAS IN WAYS WERE
TRYING TO. IMPROVE THE LOT OF
STUDENTS WHO WERE SIMPLY TRYING
TO GET THROUGH. SCHOOL AS
QUICKLY AS POSSIBLE SO THIS
THIS IMPACT OF PARKING FEES ON
STUDENTS AND PERHAPS SOME IN
EQUITY IN THE PROCESS OF HOW
OTHER CERTAIN WHO PAYS WHAT. IS
OF CONCERN TO ME AND- CHESSER
AND TRUSTEE I WOULD SIMPLY ASK
THAT YOU TAKE A LOOK AT THAT
AND HELP US TRYING TO FIGURE
THIS OUT AND MAKE THIS. WORK
FOR STUDENTS BECAUSE IT'S MY
IMPRESSION ANYWHERE PERCEPTION.
THE MANY OF YOUR CAMPUSES ARE
COMMUTER CAMPUSES. OF AT LEAST
A SIGNIFICANT PART AND SO PER
KING. THERE IS A MAJOR PART OF
A STUDENT'S LIFE AND THE COST
OF PARKING. WOULD SOON ME IS
PROBABLY A MAJOR PART OF THE
STUDENT THIS BUDGET. ONE ONE OF
THE UNINTENDED CONSEQUENCES OF
THE OF THE AUDIT WAS US
ACTUALLY SEEING THOSE FEES.
LAID OUT AND IT IT IS A CAUSE
FOR ME LEASES A TRUSTEE OF
GREAT CONCERN THAT. THE
EMPLOYEE AT THE STUDENTS WHO
HAVE THE LEAST ABILITY TO PAY.
A PAYING MORE THAN THE SELLER
TO BOYS AND THAT THAT I THINK
IS AN INEQUITABLE SITUATION.
JUST THANK YOU FOR TAKING A
LOOK AT LEAD I DON'T EXPECT YOU
TO SOLVE IT HERE AT THE TABLE
BUT- I KNOW YOU WILL. THANK YOU
WILL MOVE TO ASSEMBLY MEMBER
MURATSUCHI THANK YOU CHANCELLOR
WHITE I'M LOOKING AT TO YOUR
LETTER DATED MAY THIRTIETH OF
TWENTY NINETEEN SUBMITTED IN
RESPONSE TO THE DRAFT AUDIT
REPORT. AND YOU DO HAVE A COPY
OF THAT NO I DON'T OKAY. ALL
RIGHT. WELL AS A COPY IS. BEING
PROVIDED I COULD SEE. AS YOU
MAY RECALL THE BOTTOM OF THAT.
FIRST. PAGE AS NOTED IN UP TO
APPENDIX B. THE OVERALL
DESIGNATED RIVERS RESERVE
AMOUNT REPRESENTS ABOUT 2% OF
ANNUAL EXPENSES. COME I JUST
WANT TO CLARIFY THE OVERALL
DESIGNATED RESERVE AMOUNT AS
NOTED IN AN APPENDIX B. IS THAT
THAT THREE POINT NINE. BILLION
DOLLAR FIGURE. THAT'S SHOWN. ON
PAGE FORTY EIGHT OF THE AUDIT A
TEN YEAR PERIOD SO THEY'RE
DIVIDING THE REPRINT SERVE ON
JUNE THE STATE PART REPORT
DIVIDES THE- IF YOU COULD SPEAK
INTO THE MIKE PLEASE EXCUSE ME.
THE OUT REPORT DIVIDES THE ONE
POINT FIVE BILLION DOLLARS IN
DESIGNATED RESERVE. INTO THE
TOTAL. EXPENSES OVER THE TEN
YEAR PERIOD AUDITED. OKAY IS
THAT THE CORRECT. IT'S
REFERENCING YOU IF THE ITEM IN
THE AUDIT REPORT SO IT'S ONE
POINT FIVE BILLION DIVIDED BY
THE TOTAL EXPENSES OVER THE TEN
YEAR PERIOD ON. ALRIGHT TEN
YEARS WORTH OF PROPERTY. SO.
BUT FOR ANY WAR GIVEN FISCAL
YEAR ARE YOU INDICATING THAT
THAT THE ONE POINT FIVE BILLION.
IS THE AVERAGE DESIGNATE A
RESERVE AMOUNT. SO EACH SO IN
TWO THOUSAND SEVENTEEN EIGHTEEN
WE HAD EIGHTY THREE MILLION
DOLLARS LEFT OVER AT THE END OF
THE YEAR BASED ON TOTAL
REVENUES OF SEVEN POINT FIVE
BILLION. THAT EIGHTY THREE
MILLION IS ABOUT 1% OF OUR
TOTAL REVENUES AND THAT EIGHTY
THREE MILLION WAS WOULD WOULD
BE DEPOSITED OR ACCOUNTED FOR
AS A RESERVE. AS AN ADDITION TO
THE RESERVE. OF THE YEAR BEFORE
THAT IN TWO THOUSAND. FIFTEEN
SINCE TWO THOUSAND SIXTEEN
SEVENTEEN. TOTAL REVENUES WERE
ABOUT SEVEN BILLION WE HAVE
LEFT OVER AT THE END OF THE
YEAR FIFTY MILLION DOLLARS. AND
THAT FIFTY MILLION WOULD HAVE
BEEN ADDED TO RESERVES ALL
RIGHT. I DON'T WANT TO GET. TOO
LOST IN THE NUMBERS BUT GOING
BACK TO YOUR LETTER. OF MAY
THIRTIETH TWENTY NINETEEN YOU
INDICATE IN THE BOTTOM OF PAGE
ONE THAT THE OVERALL DESIGNATED
RIVER CONSERVE AMOUNT
REPRESENTS ABOUT 2% OF ANNUAL
EXPENSES. WHAT WHAT REPRESENTS
THE 2% OF ANNUAL EXPENSE THE
AUDIT REPORT APPENDIX B. THE.
THE I'M SORRY. SO THAT'S A
RESPONSE TO THE AUDIT REPORT.
SO THREE THREE BILLION I'M
SORRY. ON ON TABLE BE ONE ON
PAGE FORTY SEVEN OF OUR REPORT
YES. THE CALCULATION WOULD BE
TO TAKE THE ONE POINT FIVE AND
DIVIDE IT BY SEVENTY FOUR
MILLION BILLION DOLLARS. SO THE
WAY I THOUGHT IT WAS
CONSTRUCTED THEY ADDED UP TOTAL
REVENUES FOR THE TEN YEARS AND
TOTAL EXPENSES FOR THE TEN
YEARS THAT'S THE BASIS UPON
WHICH THESE CALCULATIONS ARE
MADE SO WE WERE JUST. TAKING
ONE POINT FIVE BILLION BY TO
GET INTO THAT CONTINUE REPORTED
AND APPENDIX B. IN THE AUDIT
REPORT ALL RIGHT HI I AM I AM
NOT SURE I UNDERSTAND YOU BUT I
WON'T BE LEAVING TO GO TO THE
LA COUNTY. IS ALISTAIR SHE AND
CORRECT WANTED TO POINT OUT IN
THE. AUDITOR'S REPORT ON PAGE
SIXTEEN FIGURE FIVE. I THINK
THIS IS WHAT MISTER WELLS IS
REFERRING TO YOU CAN SEE. THE
ONE POINT FIVE BILLION DOLLAR
SURPLUS AND THEN HOW THE MONEY
IS USED. THE ONE POINT. HOW ALL
THE APPROPRIATIONS ARE YEARS
FOR CS YEAR WHAT IT'S SAYING IS
AT THE VERY END AFTER ALL HAS
MONEY HAS BEEN SPENT ON
SALARIES AND BENEFITS SUPPLIES
AND SERVICES SCHOLARSHIP GRANTS
AND OTHERS. THERE'S 2% LEFT
OVER. I BELIEVE THAT'S WHAT CSU
IS REFERRING TO THE 2% LEFTOVER
LET'S NOT SPENT ON SPECIFIC
ITEMS IN NINE. PARTICULAR YEAR
FOR YEARS AND THAT'S HOW YOU
CAME UP WITH ONE POINT 52% AND
THAT'S THE ONE POINT FIVE IS
THE 2% DOES THAT HELP YOU
MISTER MURATSUCHI. IT I WANT TO
ASK VIA CSU REPRESENTED IS THAT.
THAT IS ALSO TRUE THAT'S NOT
THE 2% THAT WE'RE TALKING ABOUT
THE 2% WE'RE TALKING ABOUT IS
TAKING THE ONE POINT FIVE
BILLION DOLLARS IN RESERVE AT A
POINT IN TIME. AND DIVIDING IT.
BY SEVENTY BY SEVENTY FOUR
MILLION DOLLARS WORTH OF
EXPENSE SEVENTY FOUR BILLION
DOLLARS WORTH OF EXPENSES. OKAY
ON ON THE APPENDIX THAT THAT'S
THAT'S ALL THAT IS OKAY I KNOW
FROM MY. EXPERIENCE ON A LOCAL
SCHOOL BOARD THAT WE HAD AT
THAT TIME. MINIMUM RESERVE FOR
ECONOMIC UNCERTAINTY OF 2% THIS
FEATURE A CALIFORNIA STATE
UNIVERSITY HAVE A SIMILAR
OPERATE OPERATING MINIMUM
RESERVE FOR ECONOMIC
UNCERTAINTY NO THAT'S ONE OF
THE RECOMMENDATIONS MADE IN THE
AUDIT REPORT THAT WE ARE
WORKING TO IMPLEMENT AND SO THE
BOARD OF TRUSTEES. OF CSU
INTENDS TO ADOPT A MINIMUM OF
RESERVE FOR ECONOMIC
UNCERTAINTY THEY ALWAYS HAVE TO
FIGURE OUT WHAT THE HOW THAT'S
GOING TO BE WORDED WHAT THE
GUIDELINES ARE GOING TO BE BUT
WE ACCEPTED THE RECOMMENDATION
OF THE OUR STATE AUDITOR'S WE
DON'T HAVE MEANT ON THERE IS A
MAXIMUM FOR ECONOMIC
UNCERTAINTY OF SIX MONTHS. BUT
THERE IS NO MINIMUM OKAY. BOB
MOVING ON TO A GOOD A DIFFERENT
TO. AREA QUESTIONS TO IT I WAS
LOOKING AT THE HOUSE. WAS
RESEARCH IF I MAY JUST REAL
QUICK. LET ME JUST ASK A QUICK
QUESTION BECAUSE RUN UP THE MAY
THIRTIETH LETTER. AND SINCE
WE'RE TALKING ABOUT THE MAY
THIRTIETH LETTER YOU KNOW YOU
ALSO INDICATED LET'S USE CSU
WILL IMPLEMENT THE
RECOMMENDATIONS IN THE OUR
REPORT TO THE EXTENT POSSIBLE.
AND THEY SAID CSU SAYS UP
THOUGH. EMPLOYMENT THESE TO THE
EXTENT POSSIBLE WHAT DOES THAT
REALLY MEAN. I I'LL MENTION IN
MY COMMENTS AND A MISSION OF
THE BOARD OF TRUSTEES MEETING
WE WILL. ACT POSITIVELY ON
EVERY RECOMMENDATION OF THE
STATE AUDITOR. SO WE'RE MOVING
TOWARDS ACTUALLY. SEE EACH OF
THE RECOMMENDATIONS LISTED IN
THE AUDIT REPORT THAT IS
CORRECT OKAY AND WE'RE HOPING
TO DO THAT BY THE END OF THIS
YEAR. NEXT YEAR WE SHOULD HAVE.
THEN DONE THIS YEAR IF NOT
IT'LL JUST SLUSH OVER A LITTLE
BIT WE HAVE OUR FIRST REPORT
DUE TO THE AUDITOR'S SIXTY DAYS
FOREVER FOR WHICH IS ABOUT
THREE WEEKS NINE OF AN
IMPORTANT WE'VE PUT TOGETHER
THE WORKING GROUP'S AND WE TAKE
LEVEL ALL ACCOMPLISHED WITH THE
FIRST TWELVE MONTHS THANK YOU I
APPRECIATE THAT. CLARITY YES
RARE CITY PLEASE PROCEED THANK
YOU. CHESS I WANT I WANT TO A
REFER TO THE AUDITOR'S FACT
SHEET. AND THEN ONE OF THE KEY
FINDINGS THAT THEY LIST. IS CSU
DID NOT DISCLOSE THE SURPLUS
WHEN A PROVIDED THE STUDENT
ASSOCIATION WITH INFORMATION
ABOUT RAISING TUITION FOR THE
TWENTY SEVENTEEN TWENTY
EIGHTEEN ACADEMIC HERE IT ONLY
PRESENTED TO ALTERNATIVES TO
RAISING TUITION. INCREASING
STATE FUNDING FOR REDUCING
PROGRAMS AND SERVICES CAN YOU
PROVIDE A SPECIFIC AYE AYE
GOING I BELIEVE I HEARD YOU
INDICATE EARLIER THAT YOU
PROVIDED A REPORT THERE THAT
THE SPECIFICALLY. DISCLOSED THE.
RESERVE AS. WELL I AT LEAST YOU
YOU DESERVE YOU DISCLOSE THE
RESERVE AMOUNT COULD COULD CAN
YOU RESPOND TO THAT FINDING A
STATE. DURING OUR TEMPTATION TO
THE STUDENTS THAT ONE MANDATORY
SECTION HOUSE WHAT OTHER
SOURCES WILL BE USED FOR. AND
WE INTERPRETED THAT AS ONGOING
EXPENSES THE UNIVERSITY. IN AS
A MATTER OF PRACTICE WE DON'T
USE A ONE TIME FUNDS FOR ON
GOING. SO IS THAT REASON AND
THAT REASON ONLY WHY WE DIDN'T
PUT IT ON THE TABLE BUT I CAN
ASSURE YOU WHEN WE HAVE THAT
CONVERSATION WHICH WE DO
ANNUALLY WITH OUR STUDENTS.
WILL NOW SAY IN THAT REPORT. WE
ALSO HAVE RESERVE FUNDS AND
WILL GO THROUGH THE THREE BIG
BANDS AND WHAT THEY'RE USED FOR
WHAT THEY CAN'T BE USED FOR. SO
THERE'S NO AMBIGUITY ON THAT
ISSUE GOING FORWARD. ALL RIGHT
I APPRECIATE THAT CLARIFICATION
AMMANAI. I AM. ALSO APPRECIATE
THE DISTINCTION BETWEEN. ONE
TIME COST VERSUS ONGOING COST.
LIKE I KNOW THAT YOUR-
RESPONSIBILITY. TO THE STUDENTS
INTO THE ENTIRE. UNIVERSITY
COMMUNITY IS TO. PROVIDE
STABILITY AND FISCAL
RESPONSIBILITY AND THAT LIKE
YOU INDICATED YOU CAN ONLY
SPEND DOLLAR ONCE SO I DO
APPRECIATE TO. YOU KNOW HOW
BEING FISCALLY RESPONSIBLE I'M
AND BUT AT THE SAME TIME I DO
APPRECIATE THAT THAT YOU'RE
INDICATING THAT GOING FORWARD
THAT YOU WILL BE DISCLOSING.
THE RESERVES AS. AND A
POTENTIAL OPTION PERHAPS. THE
MERITS OF USING THE RESERVES
FOR ONGOING FUNDS CAN BE
DEBATED AT THAT TIME BUT AT
LEAST IT WILL BE PRESENTED TO
US AS AN OPTION AND DEBATED AT
THAT TIME. YEAH I THINK THAT'S
SOME OF THE COMMENTS OF US
PAYING HAD INDICATED AS WELL SO
I'M SURE MORE INFORMATION WOULD.
REALLY BE APPRECIATED ON BEHALF
OF THE STUDENTS. WAS THAT IT
WAS PAINTED TO SORT OF HELP ASK
YOU'LL GIVE US ALL QUESTIONS IN
A WAY IN WHICH WE CAN. PRESENT
OUR. COMPLEX FINANCES IN A WAY
THAT. MEETS THEIR INTERESTS AND
NEEDS MA'AM. SERVER WHAT WILL
WORK TOGETHER ON THIS IS THIS
IS NOT AN ISSUE HERE.
UNDERSTOOD THANK YOU APPRECIATE
THAT ARE LET'S MOVE TO SENATOR
MONICA PLEASE. THANK YOU MISTER
CHAIR WANT TO START WITH A
QUESTION TO STUDENT VICE
PRESIDENT PAYING. THANK YOU FOR
BEING HERE TODAY AND FOR YOUR
WORK WITH THE STUDENT
GOVERNANCE FOR C. ISSUE. ON DO
YOU RECEIVE ANY COMPENSATION
FOR YOUR ROLE AS STUDENT VICE
PRESIDENT. THANK YOU I RECEIVE
A SCHOLARSHIP SEAT THERE IS
SOME CONSIDERATION FOR THE TIME
YOU'RE SPENDING. IN ADDITION TO
YOUR STUDIES YES GOOD ONE GLAD
TO HEAR THAT IN ONE OF YOUR
COMMENTS WAS THE DIFFICULTY OF
DECIPHERING SOME OF THIS
INFORMATION IS CONTAINED IN THE
AUDIT IS CARRIED IN NEWSPAPER
REPORTS MOVING FORWARD FROM THE
PRESENTATION OF THE AUDIT
TODAY. WHAT TOOLS DO YOU HAVE
TO COMMUNICATE WITH THE BROADER
STUDENT BODY. WHAT IS COMING
OUT OF TODAY'S HEARING SOME OF
THE COMMENTS OF THE
ADMINISTRATION. WHAT VEHICLES
WERE MEANS YOU HAVE TO
COMMUNICATE WITH THE BROADER
STUDENT BODY. SURE SO WE ARE
MEAN MONTHLY FOR OUR PLUNDERING
MEETINGS WHERE WE DISCUSS CSU
ISSUES WITH OF REPRESENT A
REPRESENTATIVES FROM ALL TWENTY
THREE CAMPUSES SO THAT'S KIND
OF OUR MAIN SPACES SHARE
INFORMATION AND HAVE A
DISCUSSION BUT DEFINITELY WE
MOVING FORTY ONE TO SHARE THAT
RESPONSIBILITY WITH THE
INSTITUTION SO THAT IT'S NOT
JUST US TRYING TO DECIPHER AND
AGAIN SIFT THROUGH THE
INFORMATION. BUT THAT THE
RESPONSIBILITY IS SHARED AND
IT'S A COLLABORATIVE PROCESS.
THINKING YOU ALSO INDICATED
THAT YOU HAVE HAD SOME MEETINGS
WITH THE CHANCELLOR AND HIS
STAFF ON DURING THE. COURSE OF
THE AUDIT. IS THERE AN ON GOING.
SCHEDULING OF ENGAGEMENT WITH
THE CHANCELLOR OR HIS HIS STAFF.
UP WE'VE DISCUSSED WAYS TO
IMPROVE COMMUNICATION MOVING
FORWARD WE DON'T HAVE SCHEDULED
ARE STANDING CALLS BUT IF THAT
IS SOMETHING WE SHOULD BE WILL
DEFINITELY DISCUSS IN THE
FUTURE WE ALSO WELCOME THAT
STATE AUDITOR'S OFFICE IF THEY
WOULD LIKE TO COME TO US
PRESENT TO OUR STUDENTS BUT
BASICALLY WE OPEN ANY
INVITATION TO CONTINUES TO
SHARE INFORMATION WITH OUR
STUDENTS. IN CLEARLY YOUR ROLE
IS REPRESENTING STUDENT
INTERESTS. DO YOU HAVE ANY
STRUCTURED ENGAGEMENT WITH.
UNIVERSITY STAFF ON EITHER
FACULTY OR STAFF THAT ARE
WORKING AT THE VARIOUS CAMPUSES
SURE SO I I'M IN I SERVE AS AN
EXECUTIVE ROLE FOR THE CAL
STATE STUDENT ASSOCIATION IT'S
MORE SO. A REPRESENTATION OF.
ALL TWENTY THREE CAMPUSES BUT
FOR CAMPUS BY CAMPUS IT VARIES
THEIR RELATIONSHIP WITH THEIR
ADMINISTRATION. IS IT FAIR TO
SAY THAT THERE IS DIALOGUE AND
COMMUNICATION BETWEEN THE
STUDENTS AND- THE BARGAINING
UNITS OF FACULTY AND STAFF.
IT'S NOT A TRICK QUESTION I'M
JUST THINKING PART OF THIS
BUDGET CONCERNS. FIRST AND
FOREMOST EVERYBODY IN THE
UNIVERSITY SYSTEM. THE PRIMARY
OBJECTIVE IS STUDENT LEARNING
AN EXCELLENT SOME SUCCESS. BUT
A BIG CONTRIBUTOR TO THAT ARE
THE BARGAINING UNITS THE- CLEAN
THE CLASSROOMS THAT. PROVIDE
THE TEACHING THAT NOT OURS IS
FULL TIME FACULTY WORK AS AN
ADJUNCT FACULTY. THEY SHARE
CONCERNED IN HAVE THIS BUDGET
IS ALSO SHARED AN INTERPRETED
SO I WAS JUST CURIOUS THE
EXTENT TO WHICH STUDENTS. ARE
SENSITIVE TO THE CONCERNS OF
THE BARGAINING UNITS WHO ARE
CRITICAL TO THE SUCCESS OF YOUR
EDUCATION. I WOULD SAY THAT. I
WOULD CONTINUE TO ADVOCATE FOR
BETTER AND MORE STUDENT
REPRESENTATION WHEN IT COMES TO
BARGAINING UNITS. THANK YOU
AGAIN I APPRECIATE YOUR BEING
HERE TODAY AND MORE IMPORTANTLY
WHAT YOU'RE DOING EVERY DAY BUT
LET ME TURN TO THE CHANCELLOR
OR OR YEAR TEAM. ON. YOU'RE
FREE TO REMARK ON ANY OF THAT
EXCHANGE BUT MY REAL CONCERN
AND FOLLOW UP WAS STARTED BY
SENATOR ROTH BUT ON THE
QUESTION OF PARKING. THE
CHALLENGE OF THE COST OF THAT
TO STUDENTS THE AVAILABILITY OF
PARKING TO STUDENTS. IN AS WAS
COMMENTED BY TRUSTING MCGRORY
THE APPARENT INEQUITY OF
SALARIED EMPLOYEES PAYING LESS
THAN STUDENTS. I THINK SENATOR
ROTH DIDN'T PUSH YOU ON IDEAS
BUT I WILL A LITTLE BIT DO YOU
HAVE ANY THOUGHTS ON MOVING
FORWARD HOW TO ADDRESS. PARKING
IS A GENERAL ISSUE COST TO
STUDENTS AS A MORE SPECIFIC
CONCERN COMBINED WITH THE
BURDENS STUDENTS ARE FACING OF.
MEETING TUITION IN BUYING BOOKS
SINCE IN SOME CASES SUPPORTING
FAMILIES HOLDING DOWN MANY JOBS.
WELL THE SOO SEVERAL POINTS LET
ME TRY AND CIRCLE BACK AROUND
ON ON A COUPLE OF THEM. FIRST
OF ALL OF WITH RESPECT TO
COLLECTIVE BARGAINING WE HAVE
STUDENT TO STUDENT TRUSTEES WHO
ARE. IN OUR COLLECTIVE BOTH
OPEN AND CLOSE SESSIONS OF
COLLECTIVE BARGAINING TO
STUDENT VOICE TO THE TRUSTEES
IS THERE NOT SO MUCH TO STUDENT
GOVERNOR CSSA. WITH RESPECT TO
STUDENTS INVOLVEMENT WITH
CAMPUS BUDGETS EVERY CAMPUS IS
REQUIRED TO HAVE A BUDGET
ADVISORY COMMITTEE BY WHATEVER
NAME. AND STUDENTS ARE MEMBERS
OF THAT COMMITTEE AS WELL SO
THEY HAVE THEIR VOICE AT THE
TABLE INTERACTING WITH THE-
CAMPUS PRESIDENT AND THE VICE
PRESIDENT'S FINANCE EXETER AT
THAT TIME. YOU PARKING IS SUCH
A VEXING ISSUE FOR US AND-
ALWAYS HAS BEEN AND PROBABLY
WILL BE FOR A WHILE. THE COST
IS REAL YOU KNOW BY LAW IT HAS
TO BE A TOUGH ONE ITS OWN
BOTTOM SO WE CAN'T USE ANY FUND
OTHER THAN GENERATED FOR
PARKING FEES ARE FOR. AND FIND
TAKE CENTER FOR THAT OPERATION.
THE FACT THAT EMPLOYEES PAY
LESS AND STUDENTS AS A RESULT
OF COLLECTIVE BARGAINING OF THE
PAST. ARE A MAJOR CONTRACTOR
ALL OPENING UP DURING THIS NEXT
TWELVE MONTHS SO I THINK YOU
WILL SEE IN THE COLLECTIVE
BARGAINING DISCUSSION TO
DIFFERENT CONVERSATION GOING
FORWARD. THE AVAILABILITY ISSUE
IS WHILE WE HAVE BEEN ADDING
PARKING TO THE CAMPUSES ARE
MORE COMPUTER MORE COMMUTER
URGE OTHER THAN THAN OTHERS.
WE'VE ALSO BEEN ADDING STUDENTS
FORTY ONE THOUSAND MORE BODIES.
AND SO WHILE THE NUMBER HAS
GONE UP TO SORT OF NUMBER TO
STUDENT RATIOS IS THE AUDITOR
CORRECTLY POINTS OUT. HAS MOVED
IN VARIOUS DIRECTIONS ON THE
FOUR CAMPUSES THEY LOOK LOOKED
AT CAREFULLY COUPLE I GOT A
LITTLE BETTER IN A COUPLE
ACTUALLY GOT A LITTLE WORSE. UP.
I THINK THIS WHOLE ISSUE OF THE
PARKING GOING FORWARD IS REALLY
INTERESTING TO THINK ABOUT OF
THOMAS VEHICLES IN THE RIDE
SHARING SERVICES IN SUPPORT OF
THIS AND WE THINK ABOUT PARKING
NEEDS TEN YEARS FROM NOW. WHAT
OUR STUDENTS TEN YEARS AND I
CAN BE THINKING ABOUT
TRANSPORTATION. AND CERTAINLY
IN THE URBAN AREAS ALTERNATE
TRANSPORTATION CAN BE DONE MUCH
FOR ROBUSTLY I THINK THEN
PERHAPS MORE RURAL CAMPUS WHERE
THE CITY OR COUNTY
INFRASTRUCTURES AND SUPPLY. SO
WE HAVE OUR CANNOT FORCE AND I
APPRECIATE THE AUTHORS
COMMENTED TO TAKE MORE DEEPLY
ON ALTERNATIVE BUT WE'RE ALSO
GOING THROUGH QUITE A CHANGE IN
THE WAY OUR STUDENTS IN
PARTICULAR OF WILL BE THINKING
ABOUT TRANSPORTATION. AND
FINALLY ALSO THIS TOTAL COST OF
ATTENDANCE IS A REAL DILEMMA
AND CHALLENGE IN CALIFORNIA
PARTICULARLY ON MANY OF OUR
COASTAL COMMUNITIES COASTAL
CAMPUSES WHERE HE DOESN'T
REALLY MATTER IT'S MONEY
WHETHER IT'S TUITION OR WHETHER
IT'S A HOUSING OR THEIR
TRANSPORTATION OR PARKING OR
FOOD OR- WHAT HAVE YOU AS THE
TOTAL COST OF ATTENDANCE AND SO
SOME OF THE- THINGS THAT HAVE
BEEN OF. DONE WITH RESPECT TO
FINANCIAL AID HAVE BEEN
IMPORTANT. BECAUSE WE DON'T
WANT TO RESOURCES FOR. WE DON'T
WANT THE LACK OF RESOURCES TO
GET AWAY FOR STUDENTS WHO OFTEN
LOW INCOME AND OFTEN FIRST JAN.
TO COME TO THE CSU AND SO WE'VE
BEEN WORKING HARD ON THAT. IF
WE CAN FIND A WAY TO GET
PARKING REVENUES. UP IN ONE
AREA WE SHOULD BE ABLE TO DROP
THE GUN AND OTHER IT BUT THAT
IS. A COLLECTIVE BARGAINING
RIGHTS AND I UNDERSTAND YOU
HAVE DIFFERENT GEOGRAPHY
DIFFERENT. CAPACITIES THAT
CENTURY. I THINK WE AT ALL NOW
IS THE TRANSPORTATION. MEANS
AND MODALITIES IS RAPIDLY
CHANGING BUT FOR STUDENTS WHO
ARE THERE TODAY OR FOR THE NEXT
FOUR YEARS THEY MAY NOT BE ABLE
TO WAIT FOR THOSE. THOSE LONGER
TERM CHANGES IN THE REMEDIES
NEEDED NOW BUT I DO APPRECIATE
THIS CLARIFICATIONS IF I COULD
THROUGH THE CHAIR I THINK ANA
VICE PRESIDENT PAYING HAD A
COMMENT IN IF I COULD JUST TO
LISTEN THAT IN THE LEASE ON THE
FINISH. THANK YOU. SO YES
STUDENTS ARE DISAPPOINTED THAT
FOR YEARS THE CSU HASN'T
ADDRESSED. PARKING IN EQUITIES
AND THROUGH THE COLLECTIVE
BARGAINING PROCESS AYE THING
MOVING FORWARD IT'LL BE GREAT
TO SEE WHERE THAT WERE THAT
MOVES. BUT WE ARE ALSO
DISAPPOINTED THAT OUR OWN
LEGISLATIVE ATTEMPT TO ADDRESS
THIS ASSEMBLY BILL FIVE THIRTY
TWO. BY SO MANY WOMEN WEBER WAS
NOT SUPPORTED BY THE
INSTITUTION OR FACULTY OR STAFF
REPRESENTATIVES. AND STUDENTS
REALLY NEED AND YOU EVERYONE AT
THE TABLE AND AT THIS COMMITTEE
HEARING. TO TRULY LISTEN TO OUR
CONCERNS. AND IF YOU KNOW YOU
ALL CANNOT FIND POLICY SO
LUCIEN'S TODAY TO ADDRESS OUR
FORD ABILITY CONCERNS. THAN TO
ACTUALLY. SUPPORT THE INTENT OF
OURS. THANK YOU VERY MUCH THANK
YOU MISTER CHAIR. THANK YOU
WITHOUT ONE OF TWO SENATOR
DRAWS A- THANK YOU I WANT TO
ASK DO YOU HAVE AN OR HAVE YOU
EVER HAD A WRITTEN EXPLICIT
POLICY ON OF THIS RESERVE
WHATEVER TERMINOLOGY WANTED TO
USE IN REFERENCE TO IT. YES WE
DO. WHEN DID YOU ONE WAS THAT.
PUT TOGETHER A. TWENTY FIFTEEN
TWENTY FIFTEEN AND HOW WAS THAT
DISTRIBUTED OR SHARED OR- PUT
OUT THERE SO THAT. EVERY TIME
THERE'S A DISCUSSION ABOUT THE
FINANCES OF. THE UNIVERSITY IS
THAT THAT WOULD BE A PART OF
THE CONVERSATION. IT WAS
PREPARED IN RESPONSE TO THE
PREVIOUS STATE AUDIT. AND IT
WAS DISTRIBUTED TO ALL TWENTY
THREE CAMPUSES AND IT'S POSTED
ON OUR PUBLIC POLICY SIDE
CALLED SEE ISSUE RESERVES. IT
WAS DISCUSSED IN THE BOARD OF
TRUSTEES MEETING IN SEPTEMBER
OF TWO THOUSAND SEVENTEEN. AS
WELL AS IN CONCERT WITH THE
DISCUSSION AT THE BOARD MEETING
WITH REGARD TO SUSTAINABLE
FINANCIAL PLAN. DO YOU THINK
THAT WAS. DO YOU THINK THAT
WHAT THE WAY THAT YOU
DISTRIBUTED TO WHO YOU
DISTRIBUTED. REALLY MADE IT
CLEAR THAT THIS HOW THIS
FUNDING WAS WORKING. I MEAN I'M
AND THE REASON I ASK IS AS MRS
PAYING. AS THIS TANK SAID IT'S
SO HARD TO. WHAT'S GOING ON
HERE IS LIKE SUCH TWO DIFFERENT
VERSIONS OF AND IT MAKES IT
FEEL VERY MYSTERIOUS OF AS TO
WHAT WAS WHAT WAS SHARED HOW IT
WAS SHARED HOW TRUTHFUL HEALTH
MUCH WAS PUT OUT CLEARLY EVERY
TIME THERE WAS A CONVERSATION
THAT THAT SHOULD BE A PART OF
THE CONVERSATION. I'VE SERVED
ON BOARDS WITH THERE'S LIKE A
TWO MILLION DOLLAR BUDGET TO
HUNDREDS A MILLION DOLLARS AND
NOW TWO HUNDRED BILLION DOLLARS
AND NO BUDGET TO BE SO
COMPLICATED. THAT THERE'S NOT
CLARITY IN TERMS OF WHAT'S-
WHAT FUNDING AS THEY ARE AND
HOW IT'S BEING SPENT AND WHAT
FUNDING IS AVAILABLE BECAUSE
USUALLY WILL NOT EVEN WITH UPS
AND DOWNS YOU'LL HAVE YOU'LL AT
SOME POINT SAY WELL I WANT TO
MOVE THIS FROM THERE TO HERE
THIS THAT THAT'S USUALLY PART
OF BUDGET CONVERSATIONS. THAT
SEEM TO BE LACKEY. AS FAR AS
CONSIDERATIONS AND OPTIONS THAT
WERE MADE AVAILABLE WHETHER IT
WAS STUDENT TUITION INCREASES.
IT JUST SEEMS SO COMPLETELY.
STRANGE THAT THEY WOULD BE SUCH
DIFFERENT VERSIONS SO HI I'M
GLAD TO HEAR THAT WAS BECAUSE
IN THE ORGANIZATIONS I SERVED.
WE ALWAYS HAD IT UP POLICY AND
EVERY TIME WE DISCUSSED EVERY
YEAR WE DISCUSS THE BUDGET THAT
WAS CLEARLY PUT ON THE TABLE DO
WE GROW WHAT DO WE USE IT WHAT
WHAT WAS IT THEREFORE AND I WAS
ALWAYS A VERY CLEAR PART OF THE
CONVERSATION THAT DOESN'T SEEM
TO BE. A SEEM TO BE MISSING
HERE HERE AND. I IT SEEMS TO BE
A PART A BIG PART OF WHY THERE
IS A PROBLEM. AND I DON'T KNOW
HOW I'M NOT SAYING DELIBERATE
LIKE ANYBODY WAS PUTTING MONEY
IN THEIR POCKET AND NOT AND I
DON'T MEAN DELIBERATE THAT WAY
I MEAN. JUST SOMETHING'S WRONG
IT THAT WAY SOMETHING'S WRONG.
AND IT SHOULDN'T BE THAT
COMPLICATED. TO FIGURE OUT.
THANK YOU. LET'S MOVE TO
SENATOR GONZALEZ AS ASSEMBLY
WOMAN QUIRK SILVA THAN ASSEMBLY
MEMBER SANTIAGO. THANK YOU SO
MUCH I THINK EVERYTHING. I HAD
QUESTIONS ON BECAUSE IT'S BEEN
A SUCH A LINK THE MEETING HAS
BEEN ANSWERED FOR THE MOST PART
BUT JUST SOME TAKE AWAYS. JUST
TO CLOSE THE LOOP ON ON
EVERYTHING I KNOW A COUPLE OF
US HAVE TO LEAVE SOON THANK YOU
SO MUCH TO OUR CITY AUDITOR
HOWELL AND TRUSTEE INTER
CHANCELLOR AND OUR STUDENTS.
LEADERSHIP THANK YOU VERY MUCH
JUST SOME TAKE AWAYS AS I. HAVE
BEEN LISTENING TO THIS AND
OBSERVING. YOU KNOW SENATOR
MINING AND I WERE RESPECTFULLY
KIND OF BANTERING BACK AND
FORTH THAT IF IT'S THIS COP
COMPLICATED. FOR THIS
LEGISLATIVE BODY TO GO BACK AND
FORTH WITH NUMBERS I CAN ONLY
IMAGINE HOW COMPLICATED IT
COULD BE FOR FACULTY AND
STUDENTS. AND SO IT IS JUST
SOMETHING TO KIND OF RAISE UP
BUT- FIRST AND FOREMOST AS WE
AND I WAS CHECKING THROUGH THE
TRUTH TOOL OF TRANSPARENCY. I'M
A VERY VISUAL PERSON AND I KNOW
A LOT OF STUDENTS ARE AS WELL.
AND COMING FROM CITY GOVERNMENT
WHERE WE PUT IN YOU KNOW AN
ONLINE BUDGETING TOOL THAT YOU
CAN KIND OF PLAY WITH. STUDENTS
AND PARENTS AND FACULTY WANT TO
KNOW WHERE THEIR DOLLARS ARE
GOING. SO I KNOW THAT THERE'S A
COMMITMENT ALREADY TO IMPROVE
THAT TRANSPARENCY TOOL WHICH I
WOULD HIGHLY IN. ENCOURAGING
RECOMMEND ESPECIALLY. OUT OF
THE ONE POINT FIVE BILLION
DOLLARS YOU'RE REMOVING FOUR
HUNDRED MILLION DOLLARS. AND
OUT OF THAT FOUR HUNDRED
MILLION THAT IS TRUE RESERVES.
YOU HAVE A FOR YOUR STRATEGY
HORIZON IS WHAT I'M HEARING AS
WELL. WHAT IS THAT STRATEGY
HORIZON CONSIST OF AND I THINK
THAT'S WHERE. THERE NEEDS TO BE
IT ADDITIONAL DETAILS. SO
PEOPLE REALLY UNDERSTAND WHAT
IN WHERE THEIR THEIR MONEY IS
GOING. THIRTY NOT ONLY FOR
STUDENTS BUT PARENTS I HAVE A-
A CHILD GOING TO THE CSU VERY
SOON GOD HELP ME BUT- I'M
REALLY EXCITED BUT I ALSO WANT
TO KNOW WHERE MY DOLLARS ARE
GOING. SECONDLY IN REGARDS TO
THERE'S SORT OF TWO SORT OF.
SOURCES OF REVENUE RIGHT
TUITION AND THEN STUDENT FEES
AND I KNOW THAT THE JOINT
LEGISLATIVE AUDIT COMMITTEE
SOMETIME AGO NOT TOO LONG AGO
MAYBE A COUPLE MONTHS AGO WAS
LOOKING AT STUDENT FEES AND- I
JUST THINK THERE IS A
COMMITMENT TO KIND OF LOOK AT
THAT BUT IT IS INCONSISTENT IT
RANGES ANYWHERE FROM A HUNDRED
AND SEVENTY ONE DOLLARS TO
EIGHT HUNDRED FOURTEEN DOLLARS.
SO WE KNOW THAT THOSE FEES
SOMETIMES ARE ALL ALSO OBSCURE
AND IT'S INCONSISTENT AS A
MENTION ACROSS THE CS USE SO I
JUST THINK THERE'S INCONGRUENCE
THERE'S A ONE TIME TUITION
INCREASE INCREASE BUT THEY'RE
STILL STUDENT SUCCESS FEES THAT
PEOPLE ARE ARE STILL WONDERING
ABOUT. SO IS IT INCONGRUENT IN
MESSAGING OVERALL AND THEN
LASTLY I'M JUST REALLY HOPEFUL
FROM THIS PANEL. BOTH FROM THE
AUDIT IN THE FINDINGS. AND FROM
THE CHANCELLOR WHITE THAT THERE
IS A COMMITMENT TO CREATE A
FIRM RESERVE POLICY WHICH IS
GREAT. AND TO CREATE ADDITIONAL
CHECKS AND BALANCES WHICH IS
WONDERFUL TASK FORCE THAT I
WOULD HOPE. WHEN INCLUDING YOU
KNOW THE STUDENT LEADERSHIP.
BUT IT ALSO HELPS EMPLOYEES.
PROVIDE THEM WITH A STARTING
POINT FOR EMPLOYEE NEGOTIATIONS
SMALL. AND I KNOW THAT THIS IS
ALL BEEN SAID BUT I KIND OF
HAVE TO CLOSE THE LOOP ON THIS
AND I JUST REALLY WANT TO THANK
EVERYBODY FOR BEING PARTNERS
AND- I KNOW THAT WERE WERE
CERTAINLY WATCHING BUT WE ALSO
ARE VERY. MUCH COLLABORATORS IN
THIS SENSE AS WELL SO THANKS
AGAIN. THANK YOU WAS MOVED TO
ASSEMBLY WOMAN QUIRK SILVA.
WELL THANK YOU FOR SPENDING I
THINK THE ENTIRE DAY WAITING
FOR US TO GET HERE AND THEN
ALSO THE THREE HOURS OF
TESTIMONY AND- I DON'T THINK
ANYBODY LIKES IN ON IT. AND OF
COURSE OUR LEADER IN ON IT'S
PROBABLY ISN'T THE POSTER CHILD
FOR HAVING ALL KINDS OF THANK
YOU LETTERS CENTER DEPARTMENT.
BUT IF WE TAKE IT REALLY DOWN
TO INDIVIDUALS WHICH WE ALL ARE
AND WE ALL DO OUR TAXES EVERY
YEAR AND I THINK. MOST OF US
DON'T STAY UP NIGHTS WORRYING
ABOUT ALL AUDIT BUT IF SOMEBODY
WAS TO CALL IN. AND SAY IF
WE'RE GOING AUDIT YOU FOR YOUR
INDIVIDUAL TAXES IT WOULD BE A
LOT OF STRESS. AND I THINK THAT
AS I'VE NEVER BEEN AUDITED.
THERE WOULD PROBABLY THINK BE
THINGS THAT EVEN IN MY OWN
PAPERWORK THAT I MIGHT HAVE
SAID OKAY I WISH I WOULD HAVE
DONE IT THIS WAY I WOULD HAVE
BEEN MORE CLEAR. SO I THINK
THAT'S PART OF THE BOTTOM LINE
IS JUST THE CLARITY. THAT IF
YOUR AN ACCOUNTANT IN YOUR IN
THE WEEDS AND THERE'S BEEN A
LOT OF TALKING ABOUT WAY DEEP
IN THE BUDGET. THAT'S NOT
SOMETHING MOST OF US ARE GOING
TO BE PERUSING THROUGH. AND I
THINK IT'S JUST. IN THIS.
CLIMATE OF MOM MORE AND MORE
TRANSPARENCY JUST HAVING SOME
CLARITY OF BIG TAKEAWAYS AND SO
I APPRECIATE. THAT YOU'VE SAID
YOU'RE GONNA TAKES A OUR
RECOMMENDATIONS. I DO
APPRECIATE. THAT YOU KNOW
THERE'S A LOT OF NUANCES THAT
MAY OR MAY NOT HAVE BEEN
REPORTED FOR WHERE DIFFERENT.
ACCOUNTS WERE BUT THE CLARITY I
THINK WOULD MAKE IT. MUCH
EASIER. ONE OF THE REASONS THIS
CAME UP FOR ME PARTICULARLY. IS
YOU DO HAVE A ROBUST. LOBBYING
GROUP COMING FROM ALL OF YOUR
CALL IT IS MOST OF THE TIME TO
THE STATE. AND SOMETIMES WE
HAVE IN THIS US. THREE TIMES IN
AS- I. STATED THE BEGINNING I
HAVE CAL STATE FULLERTON
LITERALLY IF. TWO MINUTES FROM
MY HOUSE SO WE DO INTERACTIVE
MEAN EITHER HAVE THE TOWN DOWN
RELATIONSHIPS AND YOU HAVE. A
LOT OF INTER MINGLING SO FOR
EXAMPLE AT SOME COLLEGES LIKE
FULLER TEN THERE'S NOT ONLY.
JOINT USAGES BETWEEN PROPERTIES
AND ALL PARKING THESE TYPE OF
THINGS. BUT THERE'S ALSO
AGREEMENTS MADE BETWEEN THE
CITY AND THE UNIVERSITIES AND
SO SOMETIMES THOSE AGREEMENTS
GO ON AND ON AS YOU KNOW WITH.
THE STADIUMS AND WHAT THE
ARBORETUM'S AND ALL THAT I'D
LIKE TO TALK TO YOU ABOUT THAT
ANOTHER TIME. BUT I THE POINT
OF THIS IS THAT THERE IS A LOT
OF LONG TERM AGREEMENTS AND
PEOPLE MOVE. FACULTY MOVES
PRESIDENT'S MOVE. DIRECTORS
MOVED AND SOMETIMES THIS
INFORMATION CAN GET LOST OVER
THE DECADES SO I THINK THE
TRANSPARENCY I THINK MAKING
SURE IT'S NOT JUST THE STUDENTS
IS NOT JUST THE FACT OF THE
WHERE THE BARGAINING UNITS BUT
IT'S ALSO THE PARENTS. BECAUSE
NOT ALL BUT MANY PARENTS ARE
STILL DOING WHAT THEY CAN TO
PLAN AND SUPPORT THEIR STUDENTS
THROUGH COLLEGE SO. IT ISN'T
JUST THE TUITION. WE ALSO KNOW
IT'S THE HOUSING THE TEXT BOOKS
ALL OF THESE OTHER COSTS BUT
THE STUDENT FEES ARE SURPRISING
LIKE I SAID. TWO SONS JUST
GRADUATING IT WASN'T JUST THE
TUITION IT WAS TO FIND OUT OKAY
THAT ALONG WITH THE PARKING
FEES REALLY ALMOST ADDS UP TO
ANOTHER ALMOST TWO THOUSAND
DOLLARS. AT CAL STATE FULLERTON
I KNOW IT'S DIFFERENT AT
DIFFERENT BUT THAT'S ABOUT IT
FOR A BUDGET YOU WANT TO BE
AWARE OF THAT YOU WANT TO KNOW
THAT. THOSE ARE THE KIND OF
EXTRA THINGS WE HAVE TO PLAN
FOR AND THEN OF COURSE FOR YOUR
STUDENTS LIKE TO DO. OTHER
THINGS LIKE JOIN CLUBS AND ALL
THESE OTHER THINGS THERE AND I
THINK MOST PARENTS. GET THAT
PRETTY MUCH ONCE THEY HAVE ONE
GO THROUGH TO CALL. BUT I THINK
FOR THE STUDENTS I WOULD SAY. A
REALLY REALLY IMPORTANT THING.
IS TO KNOW THAT WAY AND
STUDENTS. ASK FOR A STUDENT FEE
TO BE PLACED ON A AS A VOTE ON
THEIR CAMPUS. THAT IT ISN'T
JUST THE STUDENTS THAT ARE
GOING TO PAY FOR THOSE ONE OR
TWO YEARS THAT THERE MAY BE
STUDENTS PAIN FOR A DECADE OR
LONGER AND FOR SOME OF THE
STUDENTS. THAT PLACE THAT THEY
MAY HAVE ONE YEAR. OF IN JOIN
LIKE THE TITANS CENTER THAT WAS
JUST BUILT I THINK IT'S CALLED
THAT. THE STUDENTS WHO PLACE
THAT AND ADDED THAT FEE NOW
EVERY STUDENT WHO COMES IN IS
PAYING FOR THAT AND SO AS
PARENTS. SO I'M NOT A SUPER
SUPER FAN OF STUDENT FEES JUST
BECAUSE THE STUDENTS DON'T
ALWAYS REALIZE PLACING THAT FEE
FOR ANOTHER DECADE OF STUDENTS
AND SOMETIMES A VOTING TURNED
OUT OF THAT SEE IS SO SMALL.
IT'S LIKE OUR ELECTIONS WERE WE
ONLY GET A SMALL ELECTION NOW
FOR THE BONDS AND ALL THIS
STUFF SO THAT'S A REAL BIG
GLOBAL CONVERSATIONS ALL STOP
WITH THAT BUT FEES ARE REALLY.
THEY COST MONEY BOTTOM LINE
SOMEBODY'S PAIN FOR THOSE AND
BUT AGAIN I APPRECIATE YOUR
WILLINGNESS I KNOW THAT IT'S
NOT EASY TO GO THROUGH
SOMETHING LIKE THIS. AND EVEN
THOUGH I WAS THE ONE THAT ASKED
FOR IT I HOPE YOU'LL STILL
WELCOME ME TO YOUR CAMPUS
BECAUSE I. YOU KNOW CAL STATE
FULLERTON IN THE OTHER CAL
STATE TO DO AN EXCELLENT JOB.
AND MANY MANY OF US HOW MANY OF
YOU HAVE BEEN AT CAL STATE AND
IT ATTENDED. THAT'S THE TEACHER
MADE THIRTY YEARS LOOK AT ALL
THOSE HANDS. SO THANK YOU AND
THANK YOU TO THE AUDITOR AND
HER TEAM BECAUSE- FROM WHAT I
SEE YOU KNOW EXCELLENT WORK ON
BOTH SIDES THANK YOU THANK YOU
FOR THAT WILL MOVE TO SOMEONE
OVER SANTIAGO. THANK YOU THINK
MISTER AND VICE PRESIDENT THANK
THANK YOU VERY MUCH FOR COMING
UP IN YOUR STRONG AT THE STICKY
ADVOCACY FOR STUDENTS. AND
CATHOLIC I APPRECIATE THE HARD
WORK THAT YOU'VE DONE. FOR THE
CSU AND I'M I'M A BIG FAN OF
THE CSU. BUT BUT I WANT TO KIND
OF GO BACK TO I THINK WHAT I
UNDERSTOOD WITH MY COLLEAGUE
FROM US SACRAMENTO'S TALK ABOUT
IN TERMS OF. ONE TIME COST AND
ONGOING COST WITH THE
DIFFERENCES RIGHT BECAUSE I
WANNA. I WANNA MAKE SURE THAT I
THINK I UNDERSTOOD WHAT HE WAS
TALKING ABOUT OR IF NOT THEN
I'LL TAKE THE SPIRIT OF WHAT I
TOOK AWAY FROM ME. AND HAVING
THIS IS MY EXPERIENCE WITH WITH
BUDGETS HAVING BEEN ON. THE
PRESIDENT WILL LARGEST
COMMUNITY COLLEGE DISTRICTS
SOMETIMES WHEN WE TALKED ABOUT
ONE TIME COST IT WAS IT WAS
ABOUT IT WAS ABOUT A VALUE
STATEMENT TO THAT MEANS. YOU
KNOW WE WANT TO EXPAND THIS ONE
TIME BUT WE CAN ALSO MAKE A ONE
TIME COST THOSE THINGS THAT WE
TRY TO ACHIEVE OVER TIME. LIKE
INVESTMENT STUDENT MIGHT
INVESTMENT IN MENTAL HEALTH
CARE SERVICES LET LET LIKE LIKE
INVESTMENT IN IN WORKING SO
CERTAINLY WE DO COME BACK AN
ADVOCATE FOR THOSE THINGS. I'LL
BUT ALSO LET'S TALK ABOUT
CONTRACT NEGOTIATIONS AND NOT
USING WHAT WE CALL A ONE TIME
COST. OR A ONE TIME EXPENSE TO
MAYBE NOT DO THAT THAT PIECE OF
THE WORK. WHEN IT COMES TO THIS
YES YOU WORK BECAUSE. I HEAR
YOU LOUD AND CLEAR THAT CERTAIN
THINGS ARE. OUR OPERATING COSTS
AND THEY CAN EXTEND OVER ONE
METER. I LIKE TO CHALLENGE YOU
TO SAY OKAY WELL IF THIS IS A
ONE TIME COST LET'S TALK ABOUT.
THE TALK ABOUT LONG TERM LET'S
LET'S LET'S MAKE IT A PRIORITY
TO BE SINGLE YEAR. I'M KIND OF
THE GUY I DON'T. I DON'T HAVE
TO EXPLAIN THAT THERE'S A
OF THE STAFF. AND SOME OF THEM
ARE STILL IN CONTRACT
NEGOTIATIONS I WOULD HOPE THE
BEST FOR THE CSU SYSTEM. AS IT
GOES IN THE CONTRACT
NEGOTIATIONS THAT. IT DOES. ALL
THE DATA THE CAN'T FOR
STUDENTS. DOES ALL THAT CAN FOR
TACKLE TO. AND IT DOES ALL THEY
CAN. OFFER ALL THE OTHER
EMPLOYEEGROUPS AND I'D LIKE
TO. MAYBE GET YOUR TAKE ON THAT
AND CERTAINLY IN THE WE'RE NOT
GOING TO NEGOTIATE THIS RIGHT
HERE NOT EXPECTING THAT IT. AND
I KNOW WE'VE HAD A COUPLE
CONVERSATIONS BACK AND FORTH
OVER THE YEARS BUT- BUT NOW
THAT WE'RE HERE. LET'S TALK
ABOUT ONGOING COSTS AND LET'S
TALK ABOUT. VALUE THAT WE CALL
ONE TURN ONE TIME COST INTO A
LONGER TERM STRATEGY TO TRY TO.
TRY TO SOLVE THAT ISSUE. WELL
WE ARE GREAT WE ARE GRATEFUL
FOR THE PREPARATION FOR THIS.
NINETEEN TWENTY YEAR WERE ALL
OF OUR CONTRACT COMMITMENTS TO
OUR VALUED EMPLOYEES HAVE BEEN
FULLY FUNDED. WHEN WE GO WE'RE
GOING INTO BARGAINING WE WILL.
PURSUE THAT WITH THE IDEA OF
TRYING TO RAISE OUR
COMPENSATION FOR ALL EMPLOYEES.
FAIRLY AND ADEQUATELY AND OF
PARTICULAR CONCERN WITH THE
LOWER INCOME A SO THE ENTRY
LEVEL JOBS. BUT WE YOU KNOW THE
WEEK WE HAVE TO HAVE A DEGREE
OF. DISCIPLINE AND MISS BECAUSE
WE MAKE COMMITMENTS TO
EMPLOYEES SALARIES AND BENEFITS
OUT OVER SAY THREE OR A FIVE
YEAR CONTRACT. THAT FAR EXCEED.
REVENUES IT WE'RE- THANK YOU
WE'RE GONNA BE ABLE TO ACHIEVE.
THAT WE ARE PUTTING OURSELVES
IN THE POSITION TO EITHER HAVE
TO RENEGE ON THAT EVERYBODY CAN
WHICH IS SOMETHING THAT YOU
NEVER WANT TO DO OR TO DECREASE
THE SIZE OF THE WORKFORCE AND
NOT SERVE CALIFORNIA'S FUTURE.
SO WE ARE. WE ARE DISCIPLINED.
IN OUR COLLECTIVE BARGAINING
ACTIVITIES WITH ALLY TO TAKING
CARE OF OUR EMPLOYEES WHICH ARE
THE HEART AND SOUL OF THE
SCREEN INSTITUTION. BUT ALSO
BEING FISCALLY RESPONSIBLE IN
AS WE ALL KNOW WE HAVE TO LIVE
WITHIN OUR MEANS. AND SO WE
WILL NOT COMMIT. ONE TIME
DOLLARS TO ONGOING EXPENSE THAT
JUST SIMPLY IS A WAY IN WHICH
IS NOT FISCALLY PRUDENT AND
THIS IS SORT AGAINST OUR
PRACTICE IN OUR VALUE SYSTEM.
MR MAN PLEASE WELL LOOK I
UNDERSTAND THAT BUT I SAID BUT
I ALSO WANT TO MAYBE PUSHED
BACK A LITTLE BEEN SAY OKAY
THEN THEN HOW DO YOU TURN THAT
CONVERSATION INTO SAYING THAT
THIS IS A VALUE THAT WE GO
AFTER EVERY SINGLE YEAR SO IT'S
NOT. SO THE WE'RE NOT HIDING
BEHIND. THE SAYINGS THIS IS THE
ONE TIME X. THESE ARE DOLLARS
FOR ONE TIME EXPENDITURES NOT
WANTING TO DO THE RIGHT THING
WITH LONG TERM EXPENDITURES AND
I'LL TELL YOU BECAUSE YOU GUYS
FIERCELY DEBATED. WEBBER'S BILL
I THINK IT WAS AB D. SIXTY NINE
ON SALARY SCALES AND. CERTAINLY
I THINK THAT WOULD IN A PATH TO
THEIR. LOVE TO TALK TO YOU
ABOUT THAT OFFLINE BUT I BUT
HOW DO YOU DO THAT RIGHT NOW WE
GET TO THAT TO. WHAT I'M ASKING
HERE. IN TERMS OF DOING THE
RIGHT THING. WELL IN DOING THE
RIGHT THING AS MANY.
PERSPECTIVES ON A DOZEN MEMBERS
SANTIAGO. WE CAN DEBATE. BUT
BUT I WANNA RESPECTFULLY CHAIRS
AND I KNOW THAT I CAN'T.
CELEBRITY ON A TOPIC BUT- WE
WILL NOT MAKE COMMITMENTS THAT
WE DON'T FEEL WE HAVE THE
RESOURCES OVER TIME TO PAY FOR
IT WHEN WE COMMIT THE NOOSE
BRINGING IN NEW STUDENTS SO
WE'RE IN IN ROLLING THIS NEXT
YEAR TEN THOUSAND MORE
STUDENTS. WE HAD TO MAKE
CERTAIN THAT WE'RE GOING TO
HAVE FACULTY AND SUPPORT STAFF
OVER THE FOUR FIVE SIX YEARS
THAT'S BOTH THE STUDENT IS
GOING TO BE HERE AND SO WE DO
TAKE INTO ACCOUNT A LONG TERM
HORIZON WHEN IT COMES TO
SERVING OUR STUDENTS. AND
MAKING SURE THAT WE HAVE THE
RESOURCES WHICH IS THIS YEAR'S
BUDGET PROVIDED TO HAVE
ADEQUATE NUMBERS OF FACULTY
MORE PERMANENT FACULTY MORE
FACTORED REPRESENT THE
DEMOGRAPHICS OF OUR STUDENTS.
AND SUPPORT STAFF SO THEY CAN
SUCCEED. SO WE DO DO IT FROM
THAT PERSPECTIVE. WE'RE NOT
GONNA MAKE COMMITMENTS IN
COLLECTIVE BARGAINING IF WE
DON'T SEE AN AVENUE TO HAVING
THE FUNDING FOR THAT. NO ONE
TAKE THE ENTIRE TIME BUT I BUT
I THINK THAT ISSUE NEEDS TO BE
RESOLVED IN AND A LEGAL TO. I
JUST THINK THE TRAP THAT YOU
WOULD FALL INTO IF YOU ARE
USING ONE TIME REVENUES FOR.
ONGOING COSTS IS THE ONCE WE
USE UP THOSE ONE TIME REVENUES
IN THE SYSTEM. WE'LL BE BACK
HERE. TALKING TO YOU ABOUT BACK
FILLING WITH AN INCREASED
APPROPRIATIONS. OKAY HAVE BEEN
ON THE OTHER SIDE OF THE
BARGAIN TABLE I UNDERSTAND WHAT
YOU'RE SAYING BUT IF YOU REALLY
WANT TO PUSH BACK AND GET LET'S
TALK ABOUT WILL PEOPLE MAKE.
YEAH AND THEN I'LL BE DONE AND
I DON'T WANT I KNOW THAT A YOU
KNOW THE D. SOMEONE RESPECT FOR
THE CHAIR BUT I MEAN IF WE
REALLY WANT TO HAVE THAT
CONVERSATION. WELL THEY'LL BE
DONE THE COLLECTIBLE. SOUNDS
LIKE ANOTHER HEARING. SO THANK
YOU FOR THAT. ASSEMBLYMEMBER
SANTIAGO WE GET THE POINT I
THINK. THE UNIVERSITY
UNDERSTANDS WHERE YOU'RE COMING
FROM AS WELL BUT THOSE ARE.
CONTINUE DISCUSSIONS I KNOW WE
CONTINUE TO HAVE EVEN IN THE
BUDGET SUB COMMITTEES AS WELL.
AS WE DISCUSSES MOVING FORWARD
INTO THE UPCOMING BUDGET YEARS.
BUT WITH THAT LET ME GO AHEAD
AND- WE SHOULD ASKS A VERY
QUICK QUESTIONS ARE DEFINITELY
VERY LONG ANSWERS JUST BASED
OFF OF THE TESTIMONY FOR THE
EARLIER PANEL BUT ALSO
QUESTIONS FROM THE MEMBERS SO
ONE WAS A WAS A LACK OF. A
RESERVE POLICY AT CSU WHAT THE
MONEY IS USED FOR TO AS THE
AUTHORITY FOR SPENDING THAT
MONEY THE MONEY AND THE
PARAMETERS YOU KNOW AROUND
ECONOMIC UNCERTAINTY IS THAT
SOMETHING THAT CS USE. LOOKING
TO IMPLEMENT MOVING FORWARD
BASED OFF THE AYE. WE ACCEPT
ALL THE ON ITS RECOMMENDATIONS
TO BE MORE GOV GRANULARITY IN
THE DETAILS AROUND OUR RESERVES.
AND NOW DOES THAT INCLUDE A
SHOULD WE EXPECT A YEARLY
REPORT TO THE TRUSTEES AS WELL
AND PERHAPS EVEN THE STUDENTS
ASSOCIATION JUST HOW THAT
BREAKS DOWN SO THAT THERE'S
MORE TRANSPARENCY AND
ACCOUNTABILITY. IT WILL BE IN
ALL OF OUR ANNUAL REPORTS. IT
HAS BEEN OR ANYA REPORTS BUT IS
GOING TO BE MORE GRANULAR CAL
DEFINITIONS SPREADING IT OUT.
OKAY AND THEN IN TERMS OF. THE
PARKING HI THIS IS A BE A BIG
CONCERN OF THE STUDENTS. SHOULD
WE ANTICIPATE MORE ROBUST
TRANSPORTATION PLANS ARE
PROGRAMS THAT KIND OF OUTLINE
HOW WE'RE ADDRESSING. THE
PARKING YOU KNOW WE TALKED
ABOUT EARLIER INCREASING
ENROLLMENT SIZE FOR INSTANCE
HOW DOES THAT CORRELATE WITH
PARKING IN PARKING SPACES
BECAUSE IT'LL CONTINUE TO
PROBABLY BE A HEADACHE FOR
STUDENTS. IN A REVIEW OF CAMPUS
PARKING REQUESTS WILL FALL THE
OUR RECOMMENDATIONS TO MAKE
SURE THAT THERE IS A DEEP AND
ADEQUATE DIVE ON ALTERNATIVE
TRANSPORTATION. OPPORTUNITIES
AND COSTS AND REVENUES TO
SUPPORT THAT. BEFORE IT GETS
CHANCELLOR'S OFFICE APPROVAL
REPORT TO THE BOARD OF TRUSTEES
FOR THE APPROVAL OF THE
PROJECT. THANK YOU APPRECIATE
THAT ALL RIGHT WITH THAT LET ME
ASK IF THERE'S ANY ADDITIONAL
QUESTIONS ABOUT LET ME ASK THE
AUDITOR'S OFFICE AN ALLEY
ANYTHING THAT YOU'D LIKE TO.
SAY BEFORE WE CONCLUDE WITH THE
CSU AS WELL. THIS ONE LAST A
COMMENT ON WE'RE TALKING YOU'RE
TALKING ABOUT THE AUDITOR'S
RECOMMENDATIONS. THERE'S
INCLUDED INCLUDED IN A
RECOMMENDATION IS FOR YES YOU
TO. DISCLOSE TO THE LEGISLATURE
THE AMOUNT OF JUSTIFICATION FOR
AND SAFE CARS OVER FUNDS. AT
THAT CSU TEAM TO RESERVE FOR
ECONOMIC UNCERTAINTY JUST
WANTED TO MAKE THE POINT THAT
THIS IS GOING TO BE A KEY JOB
OF THE BUDGET COMMITTEES A
BUDGET SUBCOMMITTEE SENT. OKAY
LOOKING AT THE JUSTIFICATION
FOR AND THEN DECIDING IN WAYNE
IN. DO DOES THE LEGISLATURE
AGREE WITH THAT DOES THE
LEGISLATURE AGREE WITH WHAT SEE
ISSUES PROPOSING TO BE ITS
ECONOMIC UNCERTAINTY RESERVE.
SHOULD THERE EVEN BE A RESERVE.
FOR ECONOMIC UNCERTAINTY GIVEN
THAT THE STATE HAS. ITS OWN
RESERVE. THOSE DISCUSSIONS NEED
TO. BE MADE I'M BE HAD AT. THE
LEGISLATURE MIGHT DETERMINE
THAT. THAT WHAT THE CSU HASN'T
RESERVES AND WHAT IT HAS
DESIGNATED IN RESERVES IS JUST
ABOUT EXACTLY RIGHT. YOU THE
LEGISLATURE MIGHT COME TO THAT
CONCLUSION YOU MIGHT DECIDE
THAT'S RIGHT FOR YOU WE JUST
ENCOURAGE YOU TO HAVE THAT
DISCUSSION THINK THROUGH IT.
WILL BE AS PART OF OUR JOB BE
GLAD TO HELP YOU THINK THROUGH
THAT SO THAT YOU CAN WEIGH IN
AND DECIDE IF YOU AGREE OR NOT
WITH WHAT CSU PROPOSES TO DO ON
RESERVES GOING FORWARD. GOT IT
AND I APPRECIATE AND WE ALWAYS
APPRECIATE FEEDBACK FROM THE LA
I KNOW WE- VALUE THAT OPINION
ESPECIALLY AS WE START. GOING
THROUGH THE BUDGET IN MAKING
THOSE DIFFERENT ALLOCATIONS
BECAUSE ONE THING IS
UNDERSTANDING THE NUMBERS BUT
ANOTHER THING IS ALSO
UNDERSTANDING THE POLICY AROUND
THOSE NUMBERS AND- MOVING
FORWARD WHETHER IT'S ONE TIME
COSTS ARE ON GOING COST SIR.
TACKLING CAPITAL COST TO.
HOPEFULLY ONGOING COST TO DEAL
WITH WHETHER IT'S RETENTION OR.
SALARIES LIKE MISTER. SANTIAGO.
CONSUMERS ALSO TO ADD ONE MORE
SORT OF CAMEO TWO IS ALSO THE
CONTEXT RIGHT. THE MULTI YEAR
CONTEXT IN SO YOU SEE YOU ONE
INTERPRETATION IF YOU START
LOOKING AT. DATA ACCESS TO DATE
WHY. DID YOU GO ON BACK ONE
MORE YEAR STARTED ONE YEAR
LATER YOU GET A TOTALLY.
SUPPORT OF THE- OPERATIONS OF A
UNIVERSITY WAS. MULTI YOUR
COMMITMENTS TO STUDENTS IS
THAT. IT ENDS IF WE COULD EVER
MOVE TO MORE OF A MULTI YEAR
FUNDING AGREEMENT. THE STATE
FOR A- THAT WOULD ACTUALLY BE A
HUGE STEP FORWARD RATHER THIS
ANNUAL PROCESS OF. AND NOT
FINDING OUT UNTIL. JUNE YOU
KNOW WHAT YOU'RE APPROPRIATIONS
GONNA BE STARTING ON JULY
RIGHT. SO I THINK THERE IS
PROBABLY SOME. OPPORTUNITY.
DRIVEN BY AN AUDIT OF US IN THE
UNIVERSITY OF CALIFORNIA IN THE
PAST WHERE CAN WE SOMEHOW
CREATE THE BUDGET CONVERSATIONS
TO BE MULTI YEAR. TO TRY AND
GET RID OF THIS INEVITABLE AT
THE FLOOR. IT'S A HARD THING TO
DO AN ANNUAL BUDGETING PROCESS
PRACTICAL BE WORTHY I THINK I
THINK IT'S VERY GOOD JUST TOO I
THINK. WE CREATE A LOT OF ANGST
ON THE CAMPUSES IN THIS HUGE
CALIFORNIA STATE UNIVERSITY
SYSTEM BECAUSE EVERY JANUARY WE
BEGIN THE DISCUSSION BECAUSE WE
DON'T KNOW WHAT YOU'RE GONNA DO
WE BEGIN THE DISCUSSION ABOUT
TUITION INCREASES. SO EVEN
THOUGH WE'VE ONLY HAD ONE THE
LAST EIGHT YEARS ALL EIGHT
YEARS WE'VE GOT EVERYBODY ALL
RILED UP BECAUSE WE DON'T HAVE
A MULTI YEAR APPROACH TO THE
SYSTEM. AND THAT MAKES IT VERY
UNSUSTAINABLE FINANCIALLY LONG
TERM. YEAH NO I UNDERSTAND
THOSE ANXIETIES BUT AT THE SAME
TOKEN I KNOW. AND WE'VE
ACTUALLY BEEN INCREASING AND
BEEN VERY GOOD AT CSU. LAST SIX
YEARS. SO I KNOW THAT ALTHOUGH
WE'RE NOT IN A MULTI YEAR
BUDGETING CYCLE WE DO HAVE TO
DEAL WITH THIS EVERY YEAR WITH
THE GOVERNOR AS WELL.
LEADERSHIP OVER THE CENTER IN
THE ASSEMBLY BUT I KNOW FOR THE
REQUEST OF THE CSU AS- BUT
BEFORE THE LEGISLATURE KNOW THE
LEGISLATURE'S RESPONDED.
FAVORABLY OVER THE LAST SIX I
BELIEVE SIX BUDGET CYCLES NOW.
WHAT VERSION GRATEFUL FOR. OKAY
WITH THAT WE WILL CONCLUDE THIS
PANEL WE WILL MOVE ON. WILL
MOVE ON NOW TO YOU PUBLIC
COMMENTS I GET HAVE EVERYONE
PLEASE LINE UP. YEAH NOW IF YOU
COULD LIST YOUR NAME THE
ORGANIZATION YOU'RE WITH OR
PERHAPS IF YOU'RE NOT WITH AN
ORGANIZATION PROBABLY WHICH
COUNTY YOU LIVE IN IF YOU KEEP
YOUR COMMENTS SEEING WE
APPRECIATE THAT IT'S BEEN A
LONG HERE AGAIN PROCEDURE GUYS
WAITING. AND STICKING IT OUT
WITH US AS WELL SO WITH THAT IF
YOU COULD PLEASE LIMIT YOUR
COMMENTS LESSON TWO MINUTES. WE
APPRECIATE THAT. PLEASE PROCEED.
GOOD EVENING MY NAME IS CAPTAIN
HUTCHINSON I'M THE VICE
PRESIDENT FOR FINANCE
REPRESENTING THIS ISSUE
EMPLOYEES UNION. AS THE ISSUE
YOU SPONSORED THE STATE AUDIT
OF THIS ISSUES OUTSIDE ACCOUNTS
AND PARKING PROGRAM. AND WE
GREATLY APPRECIATE THE EFFORTS
OF ASSEMBLY MEMBER SHARON QUIRK
SILVA WHO ASKED FOR THE AUDIT.
AND THE AUDIT ALSO WOULD NOT
EXIST IF NOT FOR THE JOINT
LEGISLATIVE AUDIT COMMITTEES
UNANIMOUS APPROVAL OF IT. AND
THAT THEIR WORK DONE BY STATE
AUDITOR LG HOW AND HER
STAFF. UNFORTUNATELY THE OF HIS
CONCLUSIONS WERE NOT A TOTAL
SURPRISE THE FIRST ONE OF THIS
ISSUE ON ACCOUNTS IN TWENTY
SEVENTEEN AND LATER LEARNED
THAT CAMPUS IS FOR BUILDING
PARKING STRUCTURES WITHOUT
FIRST CONSIDERING LESS COSTLY
ALTERNATIVE TRANSPORTATION
PROGRAMS AS A CAR BY STATE LAW
AND SEE ISSUE POLICY. WHEN WE
PRESENTED OUR FINDINGS TO THE
CSU BOARD OF TRUSTEES SHOWING.
THERE ARE BILLIONS OF DOLLARS
MEAN HOW TO SEE ISSUE ACCOUNTS
OUTSIDE STATE TREASURY THE
TRUSTEES REACTED WITH
DISCIPLINE. NOW THAT THE US
RELEASE CONFIRMS OUR UNIONS
PREVIOUS ASSERTIONS TO SEE
ISSUE SPEARHEADING A PUBLIC
RELATIONS CAMPAIGN TO DENY ANY
WRONGDOING. CLAIMING THIS ISSUE
IS A VICTIM OF MISLEADING
RESPONSIBLE TAX. THIS ISSUE NOT
COME IN THE ONE POINT FIVE
BILLION DOLLARS SERVICES NEVER
HIDDEN MONEY BUT IN FACT WAS
THE RESULT OF PRUDENT PLANNING.
TO MEET SEE SHE'S REDUCE YOUR
RESPONSIBILITIES WHAT CHANCE A
RIGHT NOW CLAIMS THE SURPLUS IS
A HEDGE AGAINST ECONOMIC
UNCERTAINTY THE FACTS FOR VOTE
OTHERWISE. STAY AUDIT SHOWED
THAT DURING THE TWO THOUSAND
NINE TEN ECONOMIC UNCERTAINTY.
DURING ONE OF THE WORST
ECONOMIC DOWNTURNS IN OUR STATE
HISTORY THIS ISSUE ACTUALLY
INCREASE THE BOUNCE OF ITS
OUTSIDE ACCOUNTS BY SIX HUNDRED
EIGHTEEN MILLION. THIS IS A
DIRECT RESULT OF INCREASES IN
THE SKIN TUITION AND REDUCE
SPENDING THROUGH APART FROM. IN
LAYOFFS. DESTRUCTION ACCOUNT
HAS BEEN A CREAM FUNDS THIS
YEAR'S YOU HAS BEEN HOARDING
MONEY AND NOT SPENDING THE
FUNDS GIVEN TO THEM BY THE
LEGISLATURE SPENT IN EACH
FISCAL YEAR. AS STATED BY
ASSEMBLY REPORTS OF OTHER
PARTIES WERE BLACK AND WHITE IN
THE OR SEE WHAT LIKE. ONE HAVE
BILLION DOLLARS IS JUST SITTING
IN OUTSIDE COUNTS IS WARMING.
THESE FUNDS WERE ALLOCATED THE
STUDENTS FIFTY SEMESTER
SEMESTER LEGISLATURE HAS GIVEN
FUNDS TO SUPPORT THIS EACH YOU
EACH YEAR AND THE FUNDS ARE NOT
FULLY EXPENDED BY THE SEA
ISSUE. FOR EXAMPLE WHY HAVEN'T
ESSENTIAL STAND PROGRAMS FOR
MENTAL HEALTH COUNSELLING AND
FEED IN SECURITIES BEEN FUNDED.
WHY TWENTY THOUSAND SEAT SHE
SUPPORT STOCK BEING UNDERPAID
AND OVERWORKED TWELVE AND THAT
NUMBER IS A MEASURE OF
POSITIONS KEEP INCREASING ALONG
WITH THEIR SALARIES. AS ISSUES
TOP ADMINISTRATOR CHESTER
WHITES REPEATED AND- REPEATED
FINGER POINTING WON'T CHANGE
THE CONCLUSIONS I'VE NEVER
STATE AUDITS. THAT SHOW THAT
THIS ISSUE BUDGET LACKS
MEANINGFUL OVERSIGHT AND
ACCOUNTABILITY. ON BEHALF OF
THE EMPLOYEES WHO SUPPORT THE
ECONOMICS OPERATIONS OF THE
UNIVERSITY AND ON BEHALF OF THE
STUDENTS WE SERVE WE ENCOURAGE
THE LEGISLATURE TO ENACT
MEASURES. THAT WILL PREVENT
FUTURE MISUSE OF STATE FUNDS
AND INTUITION. AND WE ARE DUE
TO TAKE AFFIRMATIVE STEPS TO
REPAIR AND RESTORE CONFIDENCE
IN THE FINANCIAL MANAGEMENT OF
THIS ISSUE. WE APPRECIATE YOUR
ENGAGEMENT TODAY'S HEARING
THANK YOU THANK YOU. WHAT'S
PROCEED. ARREST ABOUT
MOMENTARILY BUT I WILL BE BACK
IN A FEW OMENTS. PLACE YES I
WANNA START OFF BY SAYING THAT
YOU HAVE JUST WITNESSED THE
CHANCELLOR LIGHT ALL OF YOU. I
WAS I WAS A VICE VICE CHAIR FOR
THE FINANCE COMMITTEE AT CS TO
SAY AND I WAS HEAVILY INVOLVED
WITH. SCOPING OUT THE
INFORMATION DURING THAT TUITION
INCREASES AND- I WANT TO
CHALLENGE SOME OF THE MEMORY OF
THE STATE AUDITOR. SPECIFICALLY
ON THE MEETING OF A JANUARY TWO
THOUSAND SEVENTEEN THE BOARD OF
TRUSTEES MEETING. I AND I KNOW
THIS ONE SPECIFICALLY BECAUSE I
EMAILED THE THAT STUDENT
TRUSTEE MEMBER WHERE SHE-
DIRECTLY. I ASKED THE BOARD. IF
WE DIDN'T GET THOSE TUITION
INCREASE AND WE DIDN'T GET THE
ADDITIONAL MONEY FROM THE
STATE. HOW WOULD WE COVER THE
DEFICITS AND THAT ENTIRE BOARD
MEETING THAT IT WAS A FINANCE
FINANCE COMMITTEE MEETING. THEY
DID NOT DISCLOSE IT AT ALL THE
CFO OF THE UNIVERSE OF STATE OF
THIS YES YOU. DIDN'T DISCLOSE
IT JUST THAT GAVE A VAGUE
RESPONSE AND SAME WITH THE
CHANCELLOR. AND AS FAR AS
LEGALITIES ARE INVOLVED THEY
HAVE VIOLATED THEIR FIDUCIARY
DUTY TO DISCLOSE IT AT THAT
BOARD MEETING AND. IN SUMMARY
I'M VERY VERY. I'VE I HAVE
REALLY THINK THAT THE BOARD OF
TRUSTEES. HAVE OVERSTEPPED
THEIR BOUNDS IN ATTACKING THE
STATE AUDITOR'S INTEGRITY IF
YOU SEE THE AUDIT COMMITTEE
MEETING THEY- THEY WORSE
CLAIMING THAT SHE WAS LYING IN
THAT ASPECT BUT SHE REALLY DID
NOT. THIS CHANCE TO REALLY DID
NOT DISCLOSE ANY OF THEM FUNDS
TO CSSA AND THAT'S A BIG PART
OF THE AUDIT REPORT THANK YOU
AND IF YOU WOULD PLEASE. IF BUT
WE DIDN'T GET YOUR NAME FOR THE
RECORD YES MY NAME IS ANTONIO
I'VE EMAILED YOU ALL OF MY
ENTIRE FIDUCIARY AND MY ENTIRE
TESTIMONY THANK. THANK YOU.
HELLO MY NAME IS AGE MAY NOT GO
BEYOND I'M A FORMER STUDENT
BODY PRESIDENT I TOSS IT LOS
ANGELES AND I WAS AT THE CS IS
A BOARD MEETING IN TWO
THOUSAND. SIXTEEN AND I WAS
PRESENT THERE IN TWO THOUSAND
SEVENTEEN. CHAUCER WIDE I'M
DISGUSTED BY YOUR LIES. AND
THIS HAS BEEN GOING ON FOR
YEARS. AND I'M VERY
DISAPPOINTED THAT THE THAT THE
LEGISLATOR HE'S NOT LOOKING
INTO THE MATTERS OF THE CSU AND
HOLDING HIM ACCOUNTABLE. HOW
LONG DOES THIS NEED TO BE GOING
ON UNTIL YOU GUYS TAKE THIS
SERIOUSLY. THEY ATTACKED THE
CHARACTER OF THE AUDITOR AT THE
LAST MEETING. AND THE BOARD OF
TRUSTEES THEY CONSTANTLY PAT
EACH OTHER IN THE BACK THERE ON
PREPARE. THE LIGHT TO AUSTIN
DON'T REPRESENT OUR OUR
INTEREST THEY DISREGARD TO
STAFF FACULTY STUDENT AND IT'S
BEEN GOING ON FOR YEARS. HOW
MANY YEARS IS JUST NEED TO GO
ON UNTIL ONE OF YOU GUYS STEP
UP AND TAKE ACTION. CHANCE ARE
WIDE AND THE BOARD OF TRUSTEES
NEED TO BE REPLACED. IN REGARDS
TO CAL STATE LA. THEY HAVE THEY
HAVE TWO HUNDRED MILLION TO TWO
HUNDRED MILLION DOLLARS
APPROXIMATELY IN THEIR FUNDS
CHANCELLOR WHY JUST APPROVED A
PLAN TO REDUCE THE ENROLLMENT
OF CASSIE TODAY BY FIVE FIVE
THOUSAND CLAIMING THERE'S NOT
ENOUGH FUNDS. DE PRESIDENT OF
THE AND WHEN THE STUDENTS SPEAK
ALL THERE'S STUDENTS STAFF AND
FACULTY SINCE BECAUSE THERE'S A
RETALIATION. AGAINST THOSE AND
THE TOP THE PRESIDENTS OF THE
CAMPUS IS USE THE TIELINE
OFFICE AND THE JUDICIAL REVIEW
OFFICE TO TARGET THESE ARE
PEOPLE WHO ARE TRYING TO SHARE
THEIR CONCERNS. WHAT'S GOING ON
A CAL STATE LA AT THE CSU LEVEL
IT'S SIMPLY CORRUPT AND FUEL
CONDUCT STORE AUDIT. OF ALL OF
THE CAMPUS IS SPECIALLY CAL
STATE LA PRESIDENT OF CASSIE
TODAY RECEIVE TO VOTE OF NO
CONFIDENCE AND HE JUST GAVE HIM
A RAISE THE PROVO AT PROVOST.
OF THE CAST STATE LA RECEIVED A
VOTE OF NO CONFIDENCE AND SHE-
JUST BECAME THE PRESIDENT OF
THE SAN FRANCISCO STATE. NOW
YOU TELL ME WHAT'S THE LOGIC
BEHIND ACT THANK YOU. THANK YOU
AND. JUST WANNA MAKE A THANK
YOU THANK YOU FOR YOUR COMMENTS
I'D I JUST WANT TO. OF REMIND
OF THE PEOPLE IN IN THE PUBLIC
REMARKS ABOUT CIVILITY AND
PLEASE NO PERSONAL ATTACKS
THANK YOU. THANK YOU THANK YOU
YOUR TIME IS UP. PLEASE PROCEED
HI THANKS FOR HANGING IN THE
OFFICE GONNA TOOK AWHILE. MY
NAME IS PETE I'M AN INFORMATION
TECHNOLOGY CONSULTING FIRM
STANCE CAFE SO MARKETS WHERE I
WORK FOR MORE THAN TWENTY YEARS
AND WHERE I ALSO GRADUATED
FROM. I'M A LONG TERM OBVIOUSLY
CSU EMPLOYEE FOR YEARS WE'VE
BEEN TOLD BY CAMPUS
ADMINISTRATORS. THAT THERE IS
NO MONEY. TO GIVE FOR MERIT
SALARY INCREASES. I THINK WE
JUST SING THAT'S NOT TRUE. I
HAVEN'T BEEN ALLOWED TO
PROGRESS THROUGH MY SALARY
RANGE I HAVEN'T BEEN ALLOWED. A
FOR YEARS NEW HIRES ARE MAKING
HUNDREDS OF DOLLARS MORE A
MONTH. THEN THE PEOPLE WHO WORK
IN THOSE POSITIONS FOR A FOR
MUCH LONGER. AND I STILL THINK
THAT'S RIGHT THANK YOU THANK
YOU APPRECIATE THAT. ADDITIONAL
PUBLIC COMMENT KIMBERLY
ROSENBERGER WITH S. YEAH YOU
STATE COUNCIL WERE ENCOURAGED
AND APPLAUD THE EFFORTS OF THE
STATE AUDITOR IN THIS COMMITTEE
IN LOOKING AT THIS ISSUE WE
THINK THIS IS IMPORTANT FIRST
STEP IN HOLDING THE CSU
ACCOUNTABLE WE HOPE IT
CONTINUES A CONVERSATION AND
HOW PUBLIC DOLLARS GO TOWARDS
THE CSU AND MAKE SURE THAT THAT
MONEY. NOT ONLY GOES TO THE
INSTITUTION THE STUDENTS BUT
ALSO TO LIFT OUR WORKERS ARE
CLASSIFIED WORKERS OUT OF
POVERTY WAGES AND MAKE SURE
THAT OUR FACULTY ARE SUFFER ALL
APPROPRIATELY COMPENSATED FOR
THE WORK THEY DO IN THE
DEDICATION NICER TO THE CSU.
THANK YOU. THE NATIONAL CUB
PUBLIC COMMENT HI I'M JENNIFER
EGAN WITH THE CALIFORNIA
FACULTY ASSOCIATION AND FACULTY
MEMBER CAL STATE EAST BAY I'M
YOU IT REALLY SHOULD BE UP
SETTING NOT JUST TO THE PEOPLE
IN THIS ROOM BUT REALLY TO AT
ALL CALIFORNIANS THAT THE CSU
ADMINISTRATION. INCREASED ITS
RESERVES DURING THE RECESSION
BY CUTTING CLASSES INITIATING
FURLOUGHS AND LAYING OFF
EMPLOYEES WHAT AND RAISING
TUITION STUDENT TUITION AT THE
SAME TIME I WAS A DEPARTMENT
CHAIR AT THE SAME TIME AS
ASSEMBLY MEMBER WEBER AND I
REMEMBER IT WELL. THAT IS WHY
THIS THE EFFORTS CFA HAS
ADVOCATED OVER A LONG PERIOD OF
TIME FOR GREATER TRANSPARENCY
AND OVERSIGHT FOR THE CSU AND
OUR LATEST INCARNATION IN THOSE
EFFORTS IS OUR SPONSORED BILL
AB NINE THIRTY THESE KINDS OF
AT EFFORTS FOR TRANSPARENCY.
AND GREATER OVERSIGHT OF THIS
YES YOU WERE DEEPLY NECESSARY.
SAYING THAT I WANT TO BE
ABSOLUTELY CLEAR THAT DESPITE
THE AUDIT FINDINGS THE STATE
BUDGET STILL UNDER FUNDS THE
CSU RELATIVE TO THE SUPPORT. IT
PROVIDED THIRTY YEARS AGO AND
THAT PRE DATES THE RECESSION.
EVEN WITH THIS YEAR'S LANDMARK
BUDGET TENS OF THOUSANDS OF
POTENTIAL STUDENTS WILL NOT
HAVE ACCESS TO THE CSU. AND
STUDENTS ARE TAKING ON MORE AND
MORE DEBT. WE MUST CONTINUE TO
CONTINUE TO REINVEST IN HIGHER
EDUCATION AND I WOULD LIKE TO
ENCOURAGE. OF THE LEGISLATURE
TO NOT LET THE CS USE
IRRESPONSIBLE OR QUESTIONABLE
ACCOUNTING ENDING UP HURTING
STUDENTS THANK YOU. THANK YOU
ADDITIONAL PUBLIC COMMENT. GOOD
EVENING MARIO GUERRERO ON
BEHALF THE CALIFORNIA FACULTY
ASSOCIATION AND ALSO AS I TO
FACULTY AT SACRAMENTO STATE I
WANTED TO POINT OUT A COUPLE
THINGS FIRST I FOUND IT
TROUBLING. THAT THERE WAS
MENTION OF A HUNDRED AND TWENTY
MILLION DOLLARS FROM LAST
YEAR'S BUDGET THE TWENTY
EIGHTEEN TWENTY NINETEEN
BUDGET. THAT WAS ALLOCATED TO
INCREASE ENROLLMENT IN THE CSU
THAT WAS A ONE TIME FUNDING FOR
SHORE BUT THE INTENT FOR THE
LEGISLATURE WAS TO HAVE ONE
COHORT. OF STUDENTS FOR FOUR
YEARS A TIME THE CSU WHAT WE
JUST HEARD IN TESTIMONY WAS
THAT THAT MONEY WAS ACTUALLY
PLACED INTO. ONE OF THESE
ACCOUNTS I LIKE YOU ALL HAD A
HARD TIME FIGURING OUT WHICH
ONE WAS WHICH BUT THESE
RESERVES OR OTHERWISE ACCOUNTS
MEANING IT WASN'T SPENT. ON THE
INTENT WHICH WAS ENROLLMENT SO
FOUND THAT EXTREMELY CONCERNING
HOPEFULLY SOME OF YOU CAUGHT
THAT AND MIGHT BE AN AYE AYE
SOMETHING LOOK INTO FURTHER.
SECOND JUST WANTED TO POINT OUT
TO THAT AS ARE A POLITICAL
ACTION CHAIR JUST MENTIONED YOU
KNOW WE FOUGHT FOR A LOT OF FOR
ADDITIONAL TRANSPARENCY AND
ACCOUNTABILITY WE ARE THE
SPONSORS OF SOME NUMBER BAR
CONS. FEE AUDIT THAT WE ARE
REALLY APPRECIATE J. LOCK UP
APPROVING. RELATED TO THAT.
PARKING LIKE I MENTION THAT
BECAUSE THE CFA HAS EXTREME
SUPPORT FOR STUDENTS THE
PARKING BILL WAS ACTUALLY
SOMETHING WE SUPPORTED. HOWEVER
IT PITTED FACULTY AGAIN
STUDENTS AND STUDENTS AGAIN
FACULTY WE BELIEVE THERE'S A
STRUCTURAL ISSUE THAT DOESN'T
ALLOW THE CSU TO PAY ITS
PORTION OF THAT ON BEHALF OF
FACULTY BECAUSE FOR FACULTY
IT'S A BENEFIT AND FOR
STUDENTS. IT'S A SERVICE SO WE
HOPE TO WORK WITH YOU TO SOLVE
THAT ISSUE THANK YOU.
ADDITIONAL PUBLIC COMMENT. HI
MY NAME IS PICKING THE CLOUD
AND I'VE BEEN EMPLOYED WITH THE
C. ISSUE FOR OVER THIRTY YEARS
I WANT TO THANK YOU TODAY TO
HAVE THIS IMPORTANT HEARING. I
REMEMBER THE CSU BUDGET
OPERATED UNDER FORMULAS THAT
DETERMINE HOW MANY
ADMINISTRATORS FACULTY AND
SUPPORT STAFF WERE NEEDED TO
ADEQUATELY STAFFED CLASSES AND
STUDENT SERVICES. NOW IT SEEMS
THE STATE GIVES A C. ISSUE
MONEY AND TRUST IT WILL BE
SPENT APPROPRIATELY. I HOPE
THIS HEARING TODAY RESULTS IN
BETTER ACCOUNTABILITY AND CSU
FINANCES ALSO TODAY IT WAS
BROUGHT UP. ON COMMUNICATION
AND THE IMPORTANCE OF
COMMUNICATION BY THE STUDENT
REPRESENTATIVE AND I WOULD
ENCOURAGE THAT THE LEGISLATURE
ON ALSO THE CHANCELLOR. TO ADD
A STAFF REPRESENTATIVE TO THE
BOARD OF TRUSTEES BECAUSE THERE
IS NONE AND THAT WOULD
ENCOURAGE OPEN COMMUNICATION AS
WELL THANK YOU. ADDITIONAL
PUBLIC COMMENT. GOOD EVENING
EVERYONE MY NAME'S CRYSTAL AND
EVERY DAY AND I'M SITTING BY
PRESIDENT SACRAMENTO STATE AND
I JUST WANT TO SAY THAT I STAND
IN SUPPORT WITH. VICE PRESIDENT
MEETINGS STATEMENTS EARLIER
TODAY. ABOUT PARKING INEQUITIES
THAT DO EXIST ON OUR CAMPUS.
STUDENTS TO PAY MORE FOR
PARKING. TWO IT TO JUST PARK ON
THE SEA IN THE SAME STRUCTURES
SMALLER PARKING SPOTS. AND IN
JUST LAST AVAILABLE PLACES THEN
THE FACULTY DO FACULTY GET
THEIR PARKING ON CAMPUS AND
THEY HAVE WAY NICER PARKING.
THE PARKING IS JUST THAT'S JUST
THE TRUTH I'M SORRY LIKE. SO I
SUPPORTERS STATEMENT AT THING
IS NOT ALL STUDENTS HAVE ACCESS
TO ALTERNATIVE MODES OF
TRANSPORTATION. NOT ALL
COMMUNITIES PROVIDE YOU KNOW
VERY DEVELOPED METHODS OF
PUBLIC TRANSPORTATION AND IT'S
JUST SOMETHING THAT THE STATE
LEGISLATURE NEEDS TO ADDRESS.
THE CSU SERVES STUDENTS THAT
ARE FIRST GENERATION. THERE ARE
LOW INCOME. AND THAT ARE UNDER
REPRESENTED MINORITIES LIKE
MYSELF. AND I JUST ASK DOT YOU
KEEP THAT IN MIND. WHEN
CONCLUDING WITH FINDINGS OF THE
AUDIT THANK YOU THANK YOU.
ADDITIONAL PUBLIC COMMENT THANK
YOU MY NAME IS JESSICA WEST BAY
I WORK AT CSU CHICO AND
PROCUREMENT CONTRACTS SERVICES
I'M TROUBLED BY WHAT I READ IN
THE STATE AUDIT BUT I'M EVEN
MORE TROUBLED AFTER HEARING
TODAY'S TESTIMONY. ESPECIALLY
THE DENIAL AND BLAME EXPRESSED
BY CS USE LEADERSHIP. I
ENCOURAGE CHANCELLOR WAY TO
RECESSES RESPONSE TO THE AUDIT
AND RE PRIORITIZE THE EFFORTS
TO ADDRESS THE UNMET NEEDS OF
BOTH THE STUDENTS AND THE
STAFF. THANK YOU ADDITIONAL
PUBLIC COMMENT. THANK YOU FOR
ALLOWING ME TO SPEAK MY NAME IS
KATE COMO I'VE BEEN A FAMILY
PHYSICIAN AT SAN FRANCISCO
STATE STUDENT HEALTH SERVICE
FOR THE LAST ELEVEN AND A HALF
YEARS. AND I'M A MEMBER OF THE
UNITED THE EXCUSE ME IS A
MEMBER OF THE UNION OF AMERICAN
PHYSICIANS AND DENTISTS. ARE
THIS EVENING WE DID HEAR SOME
COMMENTS ABOUT STUDENT HEALTH
AND TO MENTAL HEALTH WHICH OF
COURSE. I AM EXTREMELY.
CONCERNED ABOUT WELL THE CSU
ACCUMULATED THIS LARGE SURPLUS
OVER THE LAST TEN YEARS DIRECT
SERVICES TO STUDENTS RATIONALLY
REDUCED. THE NUMBER OF
PHYSICIANS AT THE CSU CAMPUS
CLINICS FELL FROM TWO HUNDRED
TO ONE HUNDRED PHYSICIANS DUE
TO A LACK OF ADEQUATE FUNDING.
AT OUR CAMPUS ARE STEVEN ACTS
USING OUR PHYSICIAN STAFFING
HAS DROPPED FROM NINE TO FOUR
POINT FIVE JUST FOUR POINT FIVE
PHYSICIANS FOR THIRTY THOUSAND
STUDENTS. EVEN THOUGH OUR
ENROLLMENT REMAINED UNCHANGED.
MEANWHILE THE NEED FOR
ACCESSIBLE ON CAMPUS MEDICAL
CARE HAS INCREASED DUE TO MANY
FACTORS INCLUDING MORE STUDENTS
LIVING ON CAMPUS MORE STUDENTS.
COMING FROM OUTSIDE OF THE SAN
FRANCISCO BAY AREA. NOT HAVING
HEALTH INSURANCE REQUIRED FOR
CSU STUDENTS AND INCREASED
MENTAL HEALTH NEEDS. SO ACCESS
TO MEDICAL CARE IS MORE
CRITICAL THAN EVER BEFORE. HOW
WOULD ADDITIONAL FUNDS FOR
STUDENT HEALTH HELP WE COULD
INCREASE THE NUMBER OF
PHYSICIANS UP TO THE LEVEL WE
HAD BACK IN TWO THOUSAND EIGHT.
WE CAN EXPAND THE SERVICES THAT
WE COULD PROVIDE AND WE COULD
BETTER ADDRESS. MEDICAL
EMERGENCIES BOTH INDIVIDUAL AND
OF LARGE SCALE INCLUDING HEALTH
ISSUES THAT OCCURRED WITH THE
TWO THOUSAND EIGHTEEN FIRES FOR
EXAMPLE. AND WE COULD ALSO
BETTER UP ADDRESS POSSIBLE
OUTBREAKS THAT OCCUR ON
COLLEGES CAMPUS COLLEGE
CAMPUSES INCLUDING CHICKEN POX
MENINGITIS AND MEASLES. BY THE
STATE LEGISLATURE BACKING FOR
ADDITIONAL FUNDING FOR STUDENT
HEALTH WE COULD INCREASE
PHYSICIAN'S SALARIES TO
INCREASE OUR STAFFING AND
THEREBY THE STATE COULD HELP
ENSURE THE HEALTH AND SUCCESS
OF CSU STUDENTS THANK YOU THANK
YOU. ADDITIONAL PUBLIC COMMENT.
THANK YOU CHEN MEMBERS ADRIN
MOHAMMED WITH THE UNION OF
AMERICAN PHYSICIANS AND
DENTISTS OP MEAL ASKED ME LOCAL
TWO OH SIX I DON'T WANT TO
BELABOR THE PREVIOUS POINTS BUT
I DO WANNA SO SAY IT MYSELF
WITH THE COMMENTS OF DOCTOR
DOMINO AND JUST CHALLENGE YOU
ALL TO THINK ABOUT THE
INTERSECTION OLOGY OF HAVING
THIS KIND OF MONEY NOT GO
DIRECTLY TO STUDENT HEALTH CARE
SERVICES AND WHAT THAT MEANS
FOR THE DIFFERENT DEMOGRAPHICS
THAT THE CSU SYSTEM SERVES AND
ESPECIALLY WHEN WE LOOK AT THE
CENTRAL VALLEY WENT SPECIAL WE
LOOK AT THE NORTHERN COAST AND-
RURAL CALIFORNIA AND THE PEOPLE
THAT COME FROM THOSE.
COMMUNITIES AND WHAT THIS MEANS
WHEN WE ARE NOT PUTTING MORE
MONEY INTO STUDENTHEALTH CARE
AND WHAT THAT MEANS WHEN THEY
GO BACK HOME OR WHEN THEY GO
INTO THE WORKING WORLD RIGHT
AND THIS IS SOMETHING THAT
NEEDS TO BE DONE THIS IS
SOMETHING THAT CAN BE DONE THIS
IS ADVOCACY THAT CAN BE
IMPROVED VERY EASILY AND SO WE
IMPLORE YOU ALL TO DO WHATEVER
IT TAKES TO HELP GET US THERE
AND WE ARE WORKING IN WILLING
PARTNERS WE'LL DO EVERYTHING WE
CAN. THANK YOU THANK YOU.
ADDITIONAL PUBLIC COMMENT. THE
OVER TO REGRET THE VICE
PRESIDENT OF THE ACADEMIC
PROFESSIONAL SO CALIFORNIA
REPRESENTING THE ADVISORS.
COMES WASN'T RECORDED SO THAT
CALIFORNIA STATE UNIVERSITY.
TEN YEARS AGO WE APPROVED A
CONTRACT WITH THIS ISSUE. UNDER
THEIR ADVICE AND LEADERSHIP
TELLING US THAT THERE WAS NO
MONEY THAT UNIVERSITY WAS ABOUT
TO COLLAPSE. AND BECAUSE OF
THAT MANY OF OUR MEMBERS LOST
THEIR HOMES LOST THEIR CREDIT.
AND IN A AND DO IT UNTOLD
HARDSHIP. I'M ASKING YOU NOT TO
ALLOW THEM TO DO THE SAME TO
YOU AS THEY DID TO US TEN YEARS
AGO. WHICH IS TO PULL THE WOOL
OVER YOUR EYES. AND LED TO
BELIEVE THAT THERE IS NO MONEY.
THAT THEY HAVE NO FUNDING.
BECAUSE THEY DO HAVE IT AND
THEY HAD IT TEN YEARS AGO WHEN
WE-EN MASSE. IN GOOD FAITH
APPROVED A CONTRACT. AND
ALLOWED HIM TO. LEAD US DOWN
THE GARDEN PATH. SO THANK YOU
FOR HAVING THIS HEARING. AND I
HOPE YOU'RE GOING TO BE TAKING
YOUR- LOW YOUR ROLE OF
OVERSEEING THIS YEAR'S WHO
SERIOUSLY BECAUSE- THEY REALLY
NEED TO BE. LET IN THEY NEED TO
THEY NEED TO THE UP THE
OVERSIGHT NECESSARY. TO GUIDE
US ALL THROUGH. HIGHER
EDUCATION IN CALIFORNIA. THANK
YOU THANK YOU. ADDITIONAL
PUBLIC COMMENT. HELLO PATRICK
CHOI ON PRESIDENT OF ACTING
IMPRESSIONS OF CALIFORNIA AND I
THINK WANNA AND ONE OF THE
REASONS WHY YOU SEE SO MANY
REPRESENTED STAFF HERE IS ALONG
WITH THE JILL DOWN HOPEFULLY OF
ALL THE AUDIT RECOMMENDATIONS
AND THEN THE TRANSPARENCY
EFFECTS THE MINE BUT BOTH TO
CHESTER RIGHT DOWN TO THE
CAMPUS PRESENCE AND TO THE
AUDITOR'S OFFICE. IS THAT IT IS
A MAJOR CONCERN BECAUSE. WERE
THESE DISCRETIONARY MONIES ARE
COMING FROM OUR SOMETIMES IT
CAN BE LABELED AS SALARY
SAVINGS WELL WHY HASN'T BEEN
REALLY SPOKEN THAT. DO WE KNOW
THAT FROM A DEPARTMENT LEVEL
DEPARTMENT LEVEL DEAN'S LEVEL
ARE AT THE CAMPUS LEVEL IS
THERE A CONSCIOUS EFFORT FOR
SALARY SAVINGS WHICH- MAKES OUR
ADDS TO THE SO CALLED SURPLUSES
SO THAT'S BEING UNSPOKEN THAT
NOT ONLY DOES THAT MEAN THAT
THERE'S LESS MANY POTENTIALLY
TO HIRE STAFF TO FILL THE
POSITIONS. BUT ALSO FOR THE
CURRENT STAFF THAT ARE LEFT
PRESIDENT WITHOUT THE I'M FILL
POSITIONS WE ARE WORKING HARDER
FOR THE SAME AMOUNT OF PAY SO
PLEASE KEEP THAT IN MIND WHEN
YOUR- ADDRESSING THE AUDIT
FINDINGS AND THE IMPLEMENTATION.
THANK YOU THANK YOU. ADDITIONAL
PUBLIC COMMENT. HERE MY NAME IS
KIM HARRINGTON AND I AM A
RETIREE THIRTY THREE YEARS SAID
THE CALIFORNIA STATE UNIVERSITY
AND I'M NOT GOING TO BELABOR
ANY OF THIS I'M JUST GOING TO
ASK THE QUESTION. WHAT WOULD
HAVE HAPPENED IF YOU USE THOSE
FUNDS TO DEAL WITH FOOD AND
SECURITIES. FOR HOUSING IN
SECURITIES. ONE TIME FUNDS
RIGHT THAT'S WHAT YOU'RE
TALKING ABOUT BEFORE BUT HOW
DOESHOW DO ONE TIME FUNDS OVER
TEN YEARS TURN INTO ONE POINT
FIVE OR ONE POINT EIGHT PICK
THE BILLIONS. OUR STUDENTS I
MEAN MY DEPARTMENT HIRED
STUDENTS. AND STUDENTS WHO WERE
WORKING MORE AND MORE HOURS
RIGHT TO COVER FEES THAT THEY
DIDN'T HAVE TO COVER. YOU
DIDN'T HAVE TO RAISE TUITION.
THOSE FUNDS WERE GIVEN TO YOU
TO SUPPORT STUDENTS THE
OPERATION ITSELF. SO IT IT
FEELS LIKE IT HAS FELT LIKE A
MANUFACTURED CRISIS. AND THAT'S
THAT'S SAT. WE'VE HAD THREE
SUCCESSIVE AUDITS. MANAGEMENT
GROWTH HEALTH AND SAFETY AND
NOW THIS. YOU HAVE THE MONEY TO
TAKE CARE OF THE HEALTH AND
SAFETY YOU HAD MONEY TO START
DEALING WITH THE DEFERRED
MAINTENANCE IN YOU SICK
CERTAINLY THE DEFERRED
MAINTENANCE OF THE STAFF. AND
I'M SORRY I'M SUPPOSED TO BE
TALKING TO YOU BUT- HE'S OUR
CHANCELLOR. UNDERSINK ABOUT IT
WHEN YOU WALKED THREE YEARS AGO
TWO YEARS AGO SENATOR ROBB. YOU
MENTIONED IN THAT HEALTH AND
SAFETY HEARING THAT WHY DON'T
YOU HAVE A GAP ANALYSIS. WHY
AREN'T YOU WALL LOOKING AT THE
WORK FORCE NEEDS TO THE CSU HOW
THOSE FUNDS ARE BEING EXPENDED.
BECAUSE THIS IS A MESS. THANK
YOU THANK YOU NATIONAL PUBLIC
COMMENT. HEY THANKS FOR ALL
STAY IN HANGING OUT LISTENING
MANAGERS GOTTEN FROM FRESNO
STATE IN THE FACILITY CONTROL
SPECIALIST AND WITH THE
TEAMSTERS TWENTY TEN THE
TEAMSTERS UNDERSTAND CSU MUST
PRIORITIZE THE BUDGET. AND
BUDGET THEIR MONEY EVERY YEAR
IN ACCORDANCE WITH HOW MUCH
FUNDING THEY RECEIVED FROM THE.
STATE HOWEVER THE CSU ALWAYS
FINDS. ALWAYS FINDS WAYS TO
FUND THEIR PRIORITIES RACISM
FURNACE TO EMPLOYEES ARE RARELY
A PRIORITY. THE FACT THAT SEE
ISSUE HAS MONEY SQUIRRELED AWAY
IN LITTLE KNOWN OUTSIDE
ACCOUNTS SOLIDIFIES OUR
POSITION THAT THE CSU HAS THE
MONEY TO REINSTATE SALARY STEPS
FOR THE CSU EMPLOYEES WELL IN
THE STATE OF CALIFORNIA
ALLOCATES LESS MONEY. TO THE
CSU THIS YEAR DUE TO THIS NEWLY
DISCOVERED MONEY MAKES NO
DIFFERENCE OUR FOCUS ON PASSING
AB THREE SIXTY NINE TO
REINSTATE SALARY STEPS REMAINS
TOP PRIORITY FOR OUR UNION. AND
THE CSU WORKERS THE OTHER THING
THAT I'D LIKE TO TALK ABOUT IS
MRS HOWLS. ALL THE AND THEN
THAT AUDIT ON PAGE EIGHT. EIGHT
OF SIXTY FOUR THE PDF FILE. SHE
MAKES A STATEMENT HOWEVER
BECAUSE CSU IS EXEMPT FROM
BUDGET REQUIREMENTS THAT WOULD
MAKE IT NECESSARY TO TRACK
SALARY SAVINGS SOME CAMPUSES
HAD LIMITED INFORMATION ABOUT
THE SALARY SAVINGS. BUT YET
NOTHING WAS STATED HERE. ABOUT
THAT AND I WOULD HOPE THAT THE
LEGISLATURE DOES WHATEVER IT
HAS TO DO TO STOP THIS YES YOU
FROM HAVING THAT EXEMPTION SO
THAT THIS MONEY IS TRACKED
THANK YOU. THANK YOU. RIGHT AT
THIS TIME WE ASK IF THERE'S ANY
ADDITIONAL PUBLIC COMMENT.
HEARING AND SEEING NINE I'LL
TURN IT BACK TO MEMBERS OF THE
DíAS. LET ME ASK FREDDIE THE
ONE AS ANY CONCLUDING REMARKS
IF NOT I WILL GIVE SOME
CONCLUDING REMARKS HEARING AND
SEEING NONE. FIRST OFF LET ME
JUST THANK EVERYONE FOR
STICKING IT OUT IT'S- SEVEN
FORTY RIGHT NOW SUFFICIENT
EVERYONE ONE WAITING FOR A SORT
OF FLOOR SESSION TO FINISH SO
THAT WE CAN BEGIN. BUT I ALSO
LIKE TO THANK. ALL MY
COLLEAGUES I THINK YOU SAW A
LOT OF INTEREST HERE. FROM BOTH
HOUSES BOTH PARTIES WE HAD AB.
THE JOINT LEGISLATIVE AUDIT
COMMITTEE THE ASSEMBLY HIGHER
EDUCATION COMMITTEE THE SENATE
EDUCATION COMMITTEE. ASSEMBLY
BUDGET SUBCOMMITTEE TWO ON
EDUCATION FINANCE WE HAVE OUR
CHAIR OF BUDGET HERE WE HAD A
NUMBER OF SHARES ACTUALLY. IN
THIS HEARING AND I THINK IT.
JUST SHOWS THE IMPORTANCE. OF
WANTING TO BRING TRANSPARENCY
ACCOUNTABILITY TO THE ENTIRE
SYSTEM. SO THAT WE'RE ALL
MAKING POLICY DECISIONS WE DO
TO MAKE MOVING FORWARD WITH A
SPECIAL. EMPHASIS ON STUDENTS
ON FACULTY ON THE SYSTEM AS A
WHOLE SO THAT IT CONTINUES TO
FUNCTION I DO APPRECIATE THE
TESTIMONY FROM THE STATE
AUDITOR'S OFFICE THE WORK THAT
WAS DONE PUTTING ALL THE WORK
PUT INTO THE AUDIT THE LA FOR
THEIR CLARIFYING REMARKS IN THE
WORK THAT THEY'VE DONE AS WELL
WE ALSO HEARD FROM THE CSU
THANK YOU GUYS FOR BEING HERE
AND FOR LISTENING TO THE PUBLIC
COMMENTS AS WELL. AND FROM THE
STUDENT THECAL STATE STUDENT
ASSOCIATION OF THE BOARD OF
TRUSTEES AS WELL. I THINK
MOVING FORWARD ONE OF THE
THINGS WE'RE GONNA CONTINUE TO
DO AND THESE WILL CONTINUE TO
BE DISCUSSIONS AS ONE DOING THE
CHECK IN WITH THE OSCAR. AND
THE REPORT AS IT CONTINUES TO
SEC BEGINS TO IMPLEMENT SOME OF
THE RECOMMENDATIONS. I KNOW
THERE WAS. SOME DISCREPANCY
ABOUT WHETHER IT WAS A- SURPLUS
OR A RESERVE OR WHETHER IT WAS
HIT IN OR TRANSPARENT. I THINK
MOVING FORWARD I THINK WE'VE-
EVERYONE AGREED WITH INCREASED
TRANSPARENCY. INCREASED THE
DEFINITIONS ON THE PARAMETERS
AND I BELIEVE I HEARD THE
CHANCELLOR EVEN SAY HE AGREED
WITH. THE OUR RECOMMENDATIONS
AND SO AS WE CONTINUE TO MOVE
FORWARD LIKE I KNOW I LOOK
FORWARD TO SEEING THOSE BEING
IMPLEMENTED AND WILL BE PAYING.
ATTENTION TO THOSE CHECK INS
WITH THE AUDITOR WITH THE
LEGISLATURE ON HOW THAT STAND
OUT WITH THAT I DO WANNA LIST
EACH OF THE MEMBERS THAT WERE
HERE JUST TO HAVE IT ON RECORD
I'D LIKE TO THINK SAID IN A
MINING FOR STAYING THE ENTIRE
TIME SENATOR ROTH FOR BEING
HERE CENTER MORLOCK. SENATOR
GONZALEZ ASSEMBLY MEMBER
MCCARTY ASSEMBLY MEMBER MEDINA
ASSEMBLY MEMBER LEVINE ASSEMBLY
MEMBER TANG SOMEONE OVER QUICK
SERVICE AND WHATEVER WEBER
ASSEMBLYMEMBER KILEY SENATOR
PAN SENATOR PORGES SENATOR THE
RUSSELL. ASSEMBLY MEMBER BURGER
**** ABOUT SENATOR WILK
ASSEMBLY MEMBER SANTIAGO AND
ASSEMBLY MEMBER. CG AND WITH
THAT WE WILL DRAW A CONCLUSION.
AND WE WILL CLOSE THIS HEARING
THANK YOU ALL FOR BEING HERE