TO: Cal Poly Employees
FROM:
Bob Detweiler, Interim Provost/Vice President for AcademicAffairs
Larry Kelley, Vice President for Administration and Finance
RE: Budget Update
BUDGET: MAY REVISE
Last week, Governor Schwarzenegger released the May Revision
of the
Governor's Budget. The introduction of the Higher Education Section of
the May Revise refers to the Higher Education Compact with UC and CSU
that we presented in our most recent update. As previously mentioned,
the new compact will begin in 2005-06 and last through 2010-11. The
agreement is intended to both stabilize then improve the ability of the
UC and CSU to meet the ideals of the Master Plan.
The actual May Revision proposes increases to the CSU General Fund of
$623,000 from the level proposed previously in the 2004 Governor's
Budget. This increase is associated with a recalculation of the
revenues based on undergraduate fee increases, but provides no material
change to our budget.
The CSU Board of Trustees approved increases to the State University
Fee
consistent with the rates of increase that were proposed in the May
Revise. This increase of $96 per quarter for undergraduate students in
the CSU system will be effective for the fall 2004 quarter. This
increase in the State University Fee is the third increase in the last
two years and follows a period of eight years in which there were no
increases to the State University Fee. In fact, two of those years
actually had fee reductions.
The Board also approved a 20% fee increase for qualified credential
program participants and a 25% fee increase for other post-baccalaureate
graduate students. Both of these increases also are effective for the
fall quarter.
Funding the cost of higher education in California is a partnership
between the State and the students. Unfortunately, due to a poor
economy in California, the State is not able to meet its normal share
of
that partnership and the students are being asked to pay more.
While we recognize that any increase in prices is a concern, the
students at Cal Poly will continue to receive a good value for their
money as they participate in nationally recognized quality academic
programs. The total average annual undergraduate fee for a California
resident attending the CSU is $2,860, the lowest fee among peer
institutions throughout the nation. In fact, the current CSU fee would
need to more than double to reach the average of the fees charged by
peer institutions.
While we will not have our final budget allocation from the Chancellor's
Office until the Final Budget is approved, we do not anticipate that it
will be substantially different than our current planning for a budget
shortfall of $9.3 million in 2004-05.
CMS
There has been discussion and activity recently related to the
Cal Poly
decision to begin implementation of the PeopleSoft Student
Administration system. We have reported the reasons for this
implementation as well as the funding plan to the campus community
regularly over the last few months but would like to reiterate them
here:
The CSU system selected the PeopleSoft suite of software
products in 1998 and is requiring each of the 23 campuses
to implement all three of the PeopleSoft systems (Finance,
Human Resources, and Student Administration) as a part of
the Common Management System (CMS) by 2008 (the original
deadline of 2007 was moved to 2008). Cal Poly was represented
in the selection process and concurred with the choice.
Other products considered during the selection process
were systems from SCT (now SCT/SunGard) and Oracle.
Cal Poly took a lead role in the CSU in implementing the
Finance and Human Resources systems. We have been using
those systems since 2001 and both systems are working well.
The cost to implement those systems was funded out of the
general operating budget on a pay-as-you-go basis in a
better budget climate.
Cal Poly did not implement the PeopleSoft Student
Administration system previously because we did not think
the system was ready. PeopleSoft has upgraded the system
and, recently, the Student Administration system has been
implemented on eight CSU campuses as well as other
universities across the nation. It has been tested
and is working well.
The current Student Administration system in use at Cal Poly
was designed by Westinghouse Corporation in the 1970's.
It has served us well, but the technology is old and while
the company that currently owns the software (SCT/SunGard)
continues to maintain it, they are not upgrading the software
to use current technology consistent with competitive systems
such as those offered by PeopleSoft.
Cal Poly's current Student Administration system runs on a
mainframe computer for which support for both the hardware
and the operating system will end by February, 2007. This
current “legacy” Student Administration system and the
mainframe support system need to be replaced. To continue
to use them beyond the next couple of years will require
additional expenditures that will have no continuing value.
By beginning the necessary migration now, the new system
can be fully operational for the 2006-07 academic year.
In order to provide quality reliable service to the students,
faculty, and staff at Cal Poly, a web-based system using
current user-friendly technology that is actively supported
by the CSU and the vendor is needed. The additional alignment
and integration of the Cal Poly system to the CSU on a common
platform and with common applications and similar, web-based
interfaces for users is now both achievable and beneficial to
students, faculty, and staff.
One example of how the PeopleSoft Student Administration
system can further serve us is when we act to integrate that
functionality with existing and emerging learning management
systems--an objective being pursued by both Cal Poly and the
entire CSU.
There also is value and efficiency in having easy, seamless
integration and compatibility among the Finance, Human
Resources, and Student Administration systems. The cost to
implement the Student Administration system, just as was the
cost to implement the Finance and Human Resources systems,
is part of operating a full service university.
Cal Poly is working with the Chancellor's Office to finalize
details of a funding plan which allows the implementation to
begin now, preventing risks from obsolescent hardware and
limitations from legacy applications, while minimizing the
impact on the current operating budget.
For the reasons identified above, Cal Poly needs a new software system
to process and record student admission, advising and records, financial
aid, and accounts--a new Student Administration system. The CSU has
chosen--and is requiring--the PeopleSoft system as a part of the Common
Management System for all 23 campuses. Cal Poly is moving forward with
that implementation.