January 11, 2016

System Administration, Albany

Finance and Administration Committee

of the SUNY Board of Trustees

1

Resolutions

2

Items for Discussion

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Real Property Related:

• Delegation of Authority •Demolition of Buildings and

Improvements (Tab #6)

• Acquisition of Real Property •Empire State College (Tab #7)

Tuition Related:

• Final Rulemaking •Amendment to 8 NYCRR Part

602.10 (Tab #8)

• Extension of Tuition Benefit • Students Affected by

Earthquake in Haiti (Tab #9)

Compensation Related

• Minimum Wage (Tab #10)

Delegation of Authority: Demolition of Buildings and Improvements (Tab #6)

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Proposed Resolution:

• Delegates to the Chancellor, or the Chancellor’s designee, the Board of Trustee’s authority under Section 10(2)(b) of New York State Public Buildings Law to demolish buildings or improvements on land that is leased to, or under the jurisdiction of, the State University

Purpose:

• Allows SUNY to move efficiently to demolish buildings or improvements that are either unfit or no longer useful / necessary for the purposes of the State University

Acquisition of Real Property: Empire State College (Tab #7)

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Presentation By: Robert Haelen,

Vice Chancellor for Capital Facilities and General Manager of the SUNY Construction Fund

Dr. Samuel S. Conn, Interim Executive Vice President for Information Technology Services and Administration

Rick Barthelmas, Assistant Vice President for Administration

Proposed Acquisition: 3 Union Avenue

Final Rulemaking: Amendment to 8 NYCRR Section 602.10 (Tab #8)

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Proposed Resolution:

• Finalizes the rulemaking process initiated at the September 10, 2015 meeting of the Board of Trustees in relation to providing eligible non-resident veterans and their dependents resident tuition rates at the 30 community colleges operating under the program of the State University.

Impact:

• Aligns SUNY regulations for the tuition rates charged by the community colleges with both State and federal laws.

Extension of Tuition Benefits: Students Affected by the Earthquake in Haiti (Tab #9)

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Proposed Resolution:

• Extends, from the Spring 2016 to Spring 2017 semesters, resident tuition rates for undergraduate and graduate Haitian nationals who are attending a State-operated campus.

Impact:

• Ten students at the State-operated campuses (Five each at Stony Brook and Binghamton)

A $15.00/Hour Minimum Wage At SUNY (Tab #10)

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Proposed Resolution:

•Requires the State-operated campuses of the SUNY system to gradually increase the minimum wage to $15.00/Hour by July 1, 2021 for eligible employees.

•However, any impact on the financial aid received by an individual student should be taken into account when setting the minimum wage.

•Requests that the respective Boards of Trustees of the 30 community colleges operating under the program of the State University, as well as the independent Boards of Trustees of Alfred Ceramics and Cornell, follow the same plan.

Impacted Population:

• Immediate: Primarily non-represented hourly employees of the State- operated campuses.

•Potential: Similar positions at the community colleges and statutory campuses.

A $15.00/Hour Minimum Wage At SUNY: Categories and Examples of Hourly Employment at SUNY

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Category Description Examples

Student Assistants • Typically student assistant positions not tied to a represented union

• Temporary positions in nature and no long-term commitments can be made

• Enrolled SUNY students

• Gallery aide • Telefund Caller • Ice Hockey Arena Ushers • Laboratory Assistant

Federal / College Work Study • Only for students who meet financial need and enrollment requirements

• Funded through a mix of federal grants and other sources

• EOP Aide • Slide Room Assistant • Computer Lab Aide • Equipment Room / Laundry Attendant

Administrative • Employees placed on the payroll and paid for the exact hours worked

• Eligible for benefits if the appropriate criteria are met and may be part of a union if title criteria are met

• Temporary appointments

• Facilities workers • Office Assistant

A $15.00/Hour Minimum Wage At SUNY: Brief History of Employment Levels and Hours Worked

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20,384 19,286 19,456 18,736 18,701 19,476 20,357 20,991

6,554 6,542 6,600 6,978 7,505 7,200

7,177 8,099

1,531 1,295 1,247 1,247 1,225 1,229

1,343 1,357

28,469 27,123 27,303 26,961 27,431 27,905

28,877 30,447

-

5,000

10,000

15,000

20,000

25,000

30,000

35,000

2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15

Hea

dco

un

t o

f Em

plo

yees

Student Assistant College Work Study Administrative

Student Assistant 2,773,514 2,512,190 2,494,732 2,607,884 3,440,074 3,583,222 3,824,281 3,765,842

College Work Study 946,573 968,267 996,267 1,1011,858 1,130,552 1,094,770 1,080,578 1,162,666

Administrative 604,374 510,573 469,724 508,668 498,202 502,422 578,198 553,665

Total 4,324,461 3,991,030 3,960,723 14,128,410 5,068,828 5,180,414 5,483,057 5,482,173

Hours Worked

A $15.00/Hour Minimum Wage At SUNY: Impacted Employees and Phase In

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600

1,786

2,188 2,235 2,451

3,209 3,348

4,156 4,268

6,206

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

NYC Mohawk Valley

Mid Hudson

Capital Region

North Country

Finger Lakes

Southern Tier

Central New York

Long Island

Western NY

Distribution of Impacted State-operated Campus Employees by Regional Economic Development Region

Student Assistants College Work Study Students Administrative Workers

Phase In of $15.00/Hour Minimum Wage*

Year / Date NYC Outside NYC

2015/16 2/1/2016 $10.50 $9.75

2016/17 12/31/2016 $12.00 $10.75

2017/18 12/31/2017 $13.50 $11.75

2018/19 12/31/2018 $15.00 $12.75

2019/20 12/31/2019 $15.00 $13.75

2020/21 12/31/2020 $15.00 $14.50

2021/22 7/1/2021 $15.00 $15.00

*Based on 11/10/15 Governor Press Release

Hospital Financial / Management Presentation

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Presentations By: Downstate Medical: Astra Bain-Dowell,

Executive Vice President and Chief Operating Officer Richard Miller,

Vice President for Hospital Affairs and Chief Financial Officer

Richard J. Sarli, Assistant Vice President for Hospital Finance

William P. Walsh, Senior Vice President of Hospital Affairs and Managing Director, SUNY Downstate – University Hospital of Brooklyn

Stony Brook: Gary Bie,

Chief Financial Officer

L. Reuven Pasternak, MD, Chief Executive Officer, Stony Brook University Hospital and Vice President for Health Systems, Stony Brook Medicine

Upstate Medical: John McCabe, MD,

Chief Executive Officer and Senior Vice President for Health Affairs

Stuart Wright, CPA, MBA, Chief Financial Officer

Downstate Medical Presentation

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Stony Brook University Hospital Presentation

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Upstate Medical Presentation

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Chief Financial Officer and Vice Chancellor Report

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Items for Discussion: Background and Discussions on SUNY Loan Policy Update on Outstanding Loans Update on December 15, 2015 Assembly Hearing Report on Recent or Upcoming Issues Impacting SUNY’s Fiscal Health

Background and Discussion on Loan Policy

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Background and Discussion on Loan Policy: Background

Purpose

•To provide short-term financial support for State-operated campuses experiencing a temporary shortfall in operations

Uses

•Upstate

• Cash flow concerns and acquisition of Community General prompted Upstate to utilize the loan policy

• Campus and hospital are currently in a stable cash position

•Potsdam

•Enrollment fluctuations and increased operational costs prompted Potsdam to utilize the loan policy

•Campus is in the midst of corrective actions and has continued to meet planned improvements since the loan was effectuated

Benefits

•Effectively leverages overall State-operated campuses’ cash balances to effectuate short-term support for campuses needing operational support to transition to more effective operations

Concerns

•Ability for institutions to repay loans in an acceptable timeframe

•Without repayment, overall campus cash balances are at limited risk

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Background and Discussion on Loan Policy: Discussion

Use as a Resource

• Cash balances are a continued topic of conversation and a focal point both internally and externally in New York, as well as nationally

• Cash balances have, in total, remained stable in recent years

• Could act as an untapped resource to provide a further ability for SUNY to act as a system

Options

• Leave loan policy as is

• Expand from only campuses experiencing financial issues to a “revolving loan” fund to support equipment purchases or new initiatives that require seed funding

• Other

Next Steps

• Engage State-operated campus business officers in a working group to provide recommendations to Presidents and System Administration

• Return to Board of Trustees with possible adjustments to the existing loan policy

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Update on Outstanding Loans

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Update on Outstanding Loans ($M)

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Number of Loans Original Loan

Amount Current Loan

Amount Unrestricted Cash Balance as of 6/30

Loans as a Percent of

Unrestricted Cash Balance

Applicable to Loan Policy 4 $32.0 $23.8

$497.4

4.8%

Not Applicable to Loan Policy 4 102.8 100.9 20.3%

Total 8 $134.8 $124.7 25.1%

Upcoming Loans 1 $4.0 -

N/A Total Including Upcoming Loans 9 $138.8 $124.7

Notes: Loans not applicable to loan policy (i.e. passed by the Board of Trustees separately) include the $75.0M LICH Loan and the 2013/14 Hospital Loan related to 2013/14 Enacted State Budget Language. Upcoming Loans represents the final charge from the State related to the Gyrodyne settlement.

Update on December 15th Assembly Hearing /

Upcoming Issues Impacting SUNY Fiscal Health

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December 15th Assembly Hearing: The Changing Demographics of Students in Higher Education and

Educational Opportunity Programs

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Reason:

• Following Budget Reform Legislation, each standing committee of the Assembly holds a subject area specific hearing to gather information for the upcoming budget discussions

Representation:

• Nancy Zimpher, Chancellor

• Alexander Cartwright, Provost and Senior Executive Vice Chancellor

• Johanna Duncan-Poitier, Senior Vice Chancellor for Community Colleges and the Education Pipeline

• Eileen McLoughlin, Vice Chancellor for Finance and Business and Chief Financial Officer

Recent or Upcoming Issues Impacting Fiscal Health

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Vetoed Legislation Signed Legislation Upcoming

Legislation/Events

Veto 261: Hospital Collections

Chapter 220: SARA

January 13: State of the State / NYS Executive Budget

Veto 267: 5-Year Capital Plan

Chapter 437: Non-Resident Online Tuition Rate Category

TBD: Legislative Hearings

Veto 280: Maintenance of Effort

Chapter 561: Police Retirement

TBD: One House Bills

Questions?

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