AVÀÇ

Dear AVÀÇ community,

I am writing today with updated information on further budget reduction plans for this year. As I mentioned in my convocation presentation, we are projecting a significant structural deficit, meaning the revenue we received through our portion of the State allocation and tuition/fees is less than our currently budgeted expenses. Due to further decreases in enrollment projections as the semester began, we now anticipate our structural deficit to be closer to $14 million for this fiscal year, up from the $11 million deficit I projected at Convocation.

Since July 1, we have cut our expenses by approximately $4.4 million through our Voluntary Separation Incentive Program (VSIP) and by eliminating 11 MPP positions from our operating budget. Still, we have a long way to go. I have listed below some additional reduction initiatives currently in discussion/planning.

Reduction in faculty reassignments

We are working closely with the Senate and academic units to reduce the amount of reassigned time provided to tenure and tenure track (T/TT) faculty to that which is contractually required or funded through other sources. Therefore, our T/TT faculty will be teaching more course sections, consistent with the CFA collective bargaining agreement. To provide more context on this action, we asked the Chancellor’s Office Audit group to review our reassigned time policies and practices. We will share the final report when we receive it. 

Other faculty reductions

Our VSIP savings, that included only six faculty positions, was very small. In addition, with more T/TT faculty covering teaching responsibilities, we have given notice to CFA that due to lack of funds, we may need to eliminate some other CFA represented positions. We are simultaneously going through two processes: meet and confer with CFA and adhering to contract terms as well as forming the Academic Senate Layoff Committee to make recommendations to administration for these reductions. 

College Reorganization-Consolidation

We will go forward with plans to form a College of Health by combining five existing departments (Kinesiology, Nursing, Public Health, Social Work and Speech, Language & Hearing Sciences). The College of Health will officially commence in fall 2025. However, based on campus concerns about increased costs of operating five colleges, I have decided to initiate a larger reorganization to retain our four-college structure, with one of the colleges being the College of Health. The provost and I are working closely with the Academic Senate to outline a process for this work. A joint message from Senate officers and me was sent out on September 3rd describing steps and a timeline. Please note some academic departments have also decided to merge. This is in addition to and separate from the larger reorganization initiative.

Low Degree-Conferring Programs

Last year, at the direction of the Chancellor, we undertook a review of degree programs with very small numbers of graduates.  We identified 11 for discontinuation and will work this year to advance this process. We will continue to review other low degree-conferring programs.

Decommissioning of Robinson Hall

To further reduce expenses by approximately $200,000 annually (utilities, maintenance, and repairs), we are engaging in planning to vacate and decommission Robinson Hall. We have been able to relocate classes and are currently working to relocate faculty offices and two program offices. The building could go offline as early as spring 2025.

Terminating Oakland Center lease

We have given notice of termination for our current lease of the Oakland Center. The lease will end June 30, 2025 and will result in significant savings going forward.

Energy Saving Initiatives

We have received special funding for energy saving initiatives like LED lights and motion detectors to reduce utility costs. We also have some funding—and are pursuing new funding—for additional and replacement solar arrays to further reduce energy costs.

New University Budget Advisory Committee

As I have announced, we are in the process of forming a new university-wide budget committee, chaired by VP Myeshia Armstrong and COBRA chair, Dr. Paul Carpenter. The committee will include a broader number of campus community members who will provide suggestions and who will help to disseminate information on our financial status throughout the remainder of the year. Please look for opportunities to learn more.

Finally, as we go through the year and work on achieving greater financial stability, I ask that we all keep students at the center. We can and will continue to focus on providing their degree requirements—at times and in formats that meet their needs. We will continue our various student support services with all of our activities and programs scaled to the number of students we have at this time. That is our focus. We are here for our students and for their success. That is our purpose. We can work together to ensure our students are well-served.

Sincerely yours,

Cathy Sandeen
President

September 12, 2024

Dear AVÀÇ community,

On Thursday, July 11, I shared an email update on our current budget situation and the need to move expeditiously to reduce costs and make progress on closing our significant structural deficit. In addition, we have created this Frequently Asked Questions (FAQ) document for even greater context.

Today, we took action to eliminate 11 MPP positions from our operating budget. This included: permanently eliminating MPP positions vacated by resignations, moving some MPP positions to other funding sources (grants and self-support), and non-retaining some existing MPP employees.

Through this action, we anticipate a reduction of approximately $1.7 million in salary and benefits from our operating budget in FY2024-25 and beyond. We will reassign essential duties to other MPPs to ensure campus operations continue.

While necessary, I know this action is extremely painful, especially because it means we will be saying goodbye to several loyal employees. Please be assured we have done so in the most professional and compassionate manner possible while also following all HR laws, policies, and procedures.

I share this news today in alignment with our ongoing spirit of transparency. I will continue to keep you informed as we work toward greater financial stability throughout the semester.

Sincerely yours,

Cathy Sandeen
President

July 18, 2024

Dear AVÀÇ community,

I am writing today with an update on where we stand with our deficit reduction initiatives. I realize that most of our faculty are off contract over the summer and may not be able to read this message. We have shared it with Academic Senate leadership. However, the events of the summer so far make it imperative that we begin this conversation as quickly as possible. This is an ongoing conversation that will continue in earnest through the fall.

As most of you should be aware, AVÀÇ has had enrollment declines, leaving us 26% below our funded target of full-time California resident students. This also creates a reduction in tuition revenue that the tuition increase does not fully address. AVÀÇ has a significant operating deficit, meaning our ongoing operational expenses exceed our operating revenues.

Though the recently signed state budget includes an increase to the CSU, East Bay’s portion of that increase, while sincerely appreciated, will not cover commitments for salary and benefit increases, and the increase will not close our operating deficit.

We have worked diligently over the past two or more years to reduce our deficit. For example, we have:

• Developed guidelines for budget reductions
• Reduced budget deficit with the elimination of vacant/open positions.
• Continued a hiring “chill,” meaning we only fill critical vacancies.
• Further decreased budget shortfall with surplus balances from the Divisions.
• Eliminated a sports team.
• Scaled our course sections to measurable student enrollment and demand.
• Reviewed low-degree conferring programs, as directed by the CSU system, with plans to discontinue a number of programs.
• Advocated for a reduction in the CSU reallocation plan from 5% to 3%.
• Created administrative “hubs.”
• Implemented strategic budget reductions in FY 2023-24 based on enrollments and the cost of instruction.
• Implemented a Voluntary Separation Incentive Program (VSIP) with back-fill of critical positions only.
• Implemented a Utility Conservation Program to reduce energy consumption and utility costs.
• Increase revenue-generating activities like sponsored programs, fundraising, nonresident enrollments, and self-support programs.

Unfortunately, our VSIP program did not generate the savings anticipated. We projected salary and benefits savings of $5-7 million. Instead, we achieved savings of approximately $2.7 million. Therefore, we must continue to explore all means to further reduce our expenses.

We are hopeful we will be able to maintain a flat enrollment compared to the last two years. But based on current data, we must work very hard between now and mid-August to achieve this goal.

I am sending this message in the spirit of openness and transparency. You may see some initial changes this summer and we will continue to explore further expense reduction throughout the academic year. I will continue to keep you informed as we move through this process.

Two years ago, as part of our Future Direction strategic planning, we collectively identified operational excellence and financial sustainability as some of our key priorities. That certainly remains true today. I ask you all to join me in recommitting to this goal. Together, we can scale our operations to our resources, ensure our students make progress toward their degrees, and maintain a positive working environment so that AVÀÇ can fulfill its important mission to the region and beyond. 

Sincerely,

Cathy Sandeen
President

July 11, 2024

Dear AVÀÇ colleagues,

I am writing today to initiate a broad and inclusive process to address and improve the financial stability of our university. 

I want to stress two things. First, overall we are a healthy, state-supported university serving around 10,000 diverse regional students with robust and impactful educational opportunities. Second, we have experienced reductions in our tuition revenue over many years that must be addressed to ensure our future financial health and stability. To repeat: addressing our revenue gap will be an inclusive process, with ideas and options shared widely for input through formal groups, like the Academic Senate, and with the broader campus community.

Our tuition revenue challenge

Primarily due to population declines in the state, especially in northern California, our enrollment is now approximately 2,500 full-time equivalent students fewer than our CSU target of 12,522. Many factors have contributed to this decline. The System directive to revise our bachelors degrees not to exceed 120 units, while good for students, has reduced our full-time equivalent enrollments over time. Improving our graduation rates without being able to replace graduating students from an increasingly smaller pool of local high school graduates has also impacted our enrollment and tuition revenue. Further, state revenue allocated to us by the CSU System will decrease by 5 percent in FY2024-25 if we do not increase our CA resident enrollment to within 10 percent of our target. Yes, it is possible that due to changes in our local economy, higher unemployment may result in some enrollment increases for us, but we cannot count on this past pattern to fully solve our current revenue gap.

At AVÀÇ, we have improved our outreach and recruitment, developed and expanded new high-demand degree programs, and improved our retention and graduation rates over the past three years. We have made it through the worst parts of the COVID-19 pandemic. We have publicly committed to improving equity and addressing systemic racism throughout our university. I am proud of our work. Yet, the time has come to adapt to a new smaller reality. We have been able to cover our tuition shortfalls in past years by using our university reserves. This is not a sustainable practice in the long term.

Path forward

As described in my recent email dated February 2, 2023, I have formed an Enrollment Gap Tiger Team to identify ways to quickly increase our CA resident enrollment, like shifting summer sessions from self-support to statewide, among other methods. I have also formed a Budget Gap Tiger Team to quickly identify options for closing our budget gap. These options will be shared broadly for input. I want to thank Monique Cornelius, Maureen Pasag, Fa'aalu Lealaimatafao, Rafael Hernandez, Veronica Salvador, and Myeshia Armstrong for agreeing to serve on this team. 

Open position review

As an immediate measure, I have instituted a review of all open staff positions. We have hundreds of unfilled positions throughout the university, positions that have been open for recruitment for months. Given our smaller enrollment, I have asked all administrators to review each and every open position closely. Some essential staff recruitments must go forward in order for us to fulfill our mission. However, this is not true for each and every open position. We will be able to save from not filling all open positions. 

Next steps

In the coming weeks, I will organize an open forum to share more information and provide an opportunity for ideas and input.

Again, I want to emphasize that though this is a serious situation we must address, it is not a crisis. I am confident in our ability to achieve financial stability and to continue to serve our important mission. Our leadership group has developed a list of Guiding Principles for us as we embark on this work. Our students and our equity goals will remain front and center—serving as our compass points as we make decisions and determine our future.

Sincerely yours,

Cathy Sandeen
President

March 6, 2023

Dear AVÀÇ community,

I am writing today to share our plans for increasing our undergraduate enrollment, especially in light of AVÀÇ’s (CSU) intention to reallocate state funding. 

At last week’s Board of Trustees meeting, the CSU Chancellor’s Office announced a plan to reduce state funding to campuses whose enrollment gap is greater than 10 percent below their California resident undergraduate enrollment target. The System will reallocate those funds to campuses that have exceeded 10 percent above their target. You can read the entire plan here.

AVÀÇ is among the campuses that could lose funding if we do not increase our undergraduate enrollment. We could be reduced by $6 million in state funding if we do not turn this around. We need to increase our undergraduate enrollment by roughly 2,100 to get us to 9% under target full-time equivalent students. Consider this an urgent call to action. 

I have developed a plan to increase enrollment, including the following tactics:

• Convert our self-support summer program to state support
• Design summer course offerings to support student degree progression.
• Convert some current self-support Extension programs to state support
• Develop 1-2 fully online bachelor’s degree programs in high-demand areas.
• Proactively market existing stateside fully online undergraduate degree programs.
• Develop a plan to recruit and serve more working professionals who need to complete their bachelor’s degrees.
• Continue with our branding refresh initiative.

Some good news. We have completed a Memorandum of Understanding (MOU) with Holy Names University in Oakland. Holy Names will cease operation at the end of Spring 2023. Our MOU will enable their students to transfer smoothly to AVÀÇ. We have extended our transfer application deadline to accommodate these students and plan a campus visit for them. Coaches are working to recruit HNU student-athletes.

We have received funding from the Chancellor’s Office to provide tuition waivers for some students to enroll in summer session courses and to support other existing GI2025 actions.

Many of you have specified student success actions as part of your contributions to our Future Directions strategic plan. In addition, a five-year strategic enrollment management plan is being finalized and will guide institutional efforts to deliver longer-term enrollment growth. 

For now, I have created an “Enrollment Gap Tiger Team.” This team will ensure these initiatives move forward expeditiously and will develop other ideas for increasing our undergraduate enrollment, including identifying policy changes or exceptions needed to enact necessary changes. Many thanks to Katie Avila, Rafael Hernandez, Balvinder Kumar, Angela Schneider, Mitch Watnik, and Fanny Yeung for agreeing to be part of this team. 

Additionally, our new Task Forces on College of Health Implementation, Scaling Career Services, and Working Professionals Recruitment and Service are designed to position us to attract and retain more students over time. Their work will continue.

I also want to remind us all that retention is enrollment. Every one of us, staff and faculty alike, can positively impact our students staying enrolled. Despite our best efforts, we remain a large bureaucratic, rule-based organization, still striving to reduce systemic racism — an organization that is difficult to navigate for many of our students. Anything we can do to reduce barriers, alleviate anxiety, create clarity, and show support will positively impact retention and enrollment.

In summary, I want to communicate three things. First, increasing our enrollment is an urgent matter we cannot ignore. Second, we have a plan and talented faculty and staff who can partner with me to address this challenge. Increasing enrollment is good for AVÀÇ and for current and future students who will join us to earn their degrees. Lastly, our administration and campus will remain committed to systemic equity, diversity, and serving our local communities, as detailed in our strategic plan, Future Directions. 

Sincerely yours,

Cathy Sandeen

President 

January 2, 2023