President Lapidus thanked everyone for attending the meeting. He introduced the new student Trustee, Chrystal Aneke.

He next explained the budget narrative. He indicated that he wanted to give the committee a holistic picture. He thanked J. Bry and his team for the budget exercise.

He discussed student population demographics, and the slow decrease in applications. indicated that this is a statewide issue. did note that fully online programs are doing very well. He also talked about the increasing cost of infrastructure. Increasing numbers of students are coming to campus with challenges such as housing and food insecurity, learning challenges and mental health issues. In order to assist in student success the cost of delivering education and support is increasing. He noted that all the bargaining unit contracts have been resolved and that state funding will once again fall short of the financial obligation associated with the contracts. discussed the 5% operating cuts instituted across all units on the campus for the budgeting cycle.

J. Bry discussed the consolidated budget. This budget is based off of FTE (Full Time Equivalent) numbers. discussed annual operating budgets in detail. There was a discussion on tuition retention and how payroll is budgeted and funded.

The president reminded the committee that our day program is a state supported program and our Graduate and Continuing Education Department is a self-supporting business. There was a discussion.

The president discussed the direct costs and net price comparison sheets in detail.

The annual operating budget was discussed in detail. There was a discussion on the new deferred maintenance program and upcoming projects. The president said that technology is a huge challenge for every institution to fund and keep current. It's always changing and items often have large price tags. The university is trying to better manage the hardware and software by planning over a multiyear time horizen. There was a discussion.

The president called attention to the last spreadsheet regarding tuition and fee increases. The tuition and fee comparisons were discussed. J. Bry said this fee structure is predicated on the board voting on the proposed fee increase.

J. Bry discussed the course fee at $325.00 that relates to the Police Academy Program. There was discussion.

A. Ramos asked about getting the money from another funding source. There was a discussion.

J. Bry stated that discretionary funds are limited and majority of our costs are fixed. There was a discussion on how to make up for our shortfalls. As an institution we have positioned ourselves to tightened the belt. If the state appropriations would fully fund collective bargaining, we would be in better position not have to raise fees.

The president explained how GCE funds are designated. This new trust fund is designed to create an accounting separation so as to better understand the revenue and cost implications of online programs as compared to the activity of other GCE programs. There was a discussion.