California State University, Chico

Office of the President (916) 895-5201

September 23, 1987

Professor Frederica Shockley

Chair, Department of Economics

California State University,

Dear Freddie:

My letter to you of yesterday conveyed some of the background considerations you and your committee may want to take into account as you take a look at the

Associated Students Corporation, its role both as student government and as auxiliary business manager, and the relationship between the Corporation and the university. In it, I made passing reference to e committee charge, which I provide below. It is quilted together from your thoughts and mine and from some doctrine from the definition of auxiliary organizations set forth by the National Association of College and University Business Officers (NACUBO).

In the fourth edition of College & University Business Administration (published by NACUBO), auxiliaries are defined as "service organizations that support an institution's educational program and may incidentally serve the public." From this definition, I derive three principal areas for committee attention:

1. How good is the service? How well does the current auxiliary management perform? (This gets at items one, two, and three of your list of committee goals.)

2. How well does the auxiliary support the institution's educational goals? This support is of two sorts: that provided by services and that enabled by revenues derived from services. (This issue touches on items four, five, and six of your list of committee goals.)

3. How does the auxiliary "incidentally serve the public"? And how does this public service entangle the University in the hot contemporary issue of Unrelated Business Income Tax for Chapter 501 organizations?

This list of topics is not meant to be in the least preclusive; all scholars know that wisdom often lies off to the side of the direct path of enquiry. But I hope it will serve as a starting point for committee deliberations.

Sincerely,

Robin S. Wilson President