CFA GOVERNMENTAL RELATIONS OFFICE WEEKLY REPORT
CFA-SPONSORED MULTI-MILLION DOLLAR AUDIT TO BE VOTED ON MONDAY
2002 EDITION, Issue No. 7
April 5, 2002

CONTENTS:


CFA-SPONSORED MULTI-MILLION DOLLAR AUDIT TO BE VOTED ON MONDAY

On Monday, April 8th, the Joint Legislative Audit Committee will vote on a
CFA-sponsored proposal to have the California State Auditor review the CSU's
nearly half-a-billion dollar Common Management System (CMS/PeopleSoft)
data-processing project.  Having jointly researched CSU's CMS/PeopleSoft
program for over six months, CFA and the CSU division of the California
State Employees Association (CSEA) jointly requested the audit.  If approved
by the legislative committee, the audit will be the first independent
assessment of the project's costs and its management.

During a time when the state is facing a historical budget shortfall that
could dismantle many of the CSU's classes and limit student access,
CMS/PeopleSoft is expected to cost at least $400 million. Despite the
enormous cost, CMS/PeopleSoft has never undergone a cost/benefit analysis by
the CSU. Furthermore, the CSU is exempt from a requirement that all
information technology expenditures be thoroughly reviewed by the Department
of Finance's Department of Information Technology.

The CSU's total actual costs to implement CMS/PeopleSoft - including any
potential cost overruns - are unknown. The CSU also admits its nearly
half-billion dollar estimate is simply that - just an estimate - because the
CSU can't accurately assess the amount of money that campuses will expend to
implement CMS/PeopleSoft. However, on at least one CSU campus, CFA learned
that newly revised costs estimates exceed initial estimates by 83 percent.

The CSU began implementing CMS/PeopleSoft in 1997 to replace existing
software and computer programs. While CFA supports improving the CSU's data
collection system, CFA questions the appropriateness of CMS/PeopleSoft
because of the CSU's unaccounted expenditure of hundreds of millions of
education dollars, as well as the performance history of PeopleSoft Inc.,
which has been contracted by the CSU to implement CMS.

Although the Legislature has never appropriated funds specifically for
CMS/PeopleSoft, the CSU Chancellor's Office has directed campuses to use
their existing budgets to fund the data system - money that could otherwise
be used for instructional and student needs. In a recent article by the
Chico News & Review, it was reported that 80 percent of the CMS/PeopleSoft
costs were being funded from instructional dollars.  Chancellor's Office
staff have also informed campuses not to expect any savings once
CMS/PeopleSoft is fully implemented.

PeopleSoft has undergone criticism by other colleges for its past practices
- including a 24 percent cost overrun at Boise State and a projected 20
percent cost overrun at the University of Missouri. And in 1999, provosts
from seven of the eight Big Ten schools contracting with PeopleSoft
criticized the company's poor performance and software quality.

CFA LOBBY DAY - STANDING UP FOR THE CSU - PROTECTING OUR MISSION


CFA Lobby Day less then a week away!  On April 15-16, CFA member lobbyists
and students will be gathering at the Capitol under the theme, "Standing Up
for the CSU - Protecting Our Mission." If you haven't registered yet, please
contact the Government Relations Office today!

CFA's Lobby Day activities kick-off Monday evening, April 15, with a
legislative reception hosted in the State Capitol Rotunda.  At this event
CFA will honor legislators for their dedicated service to public higher
education.  The following morning, CFA member lobbyists and students will
talk with legislators and their aides about CFA's campaign to protect the
instructional mission of the University by supporting SB 1450 (Romero) and
adopting CFA's budget proposals.

All registered participants will receive a briefing packet (being mailed out
today) to help prepare for the meetings.  Additionally, CFA will be
conducting a workshop early Tuesday morning (7:30-8:30) to assist our
"first-time-ever" lobbyists, as well as those who want to brush up on their
lobbying skills.

Remember, each CFA chapter is responsible for scheduling meetings with
legislators from their districts.  If you need additional information or are
interested in attending, please call (916) 441-4848.

ASK STUDENTS TO JOIN US AT LOBBY DAY!

We ask - and encourage - you to invite students to join your chapter's
lobbying delegation.  CFA will pay for two students per chapter to join our
lobbying effort.

While a number of students have already registered, it's not too late to
register more.  So call us today!  (916) 441-4848.

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