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February 14, 2008

Budget Update

State Budget (Slides 2 – 8)

2007-08 and 2008-09

CSU Budget (Slides 9 – 15)

CSUS Budget (Slides 16 – 22)

California State University, Sacramento

Faculty Senate

California State Budget 2008-09 CSU BudgetPatrick J Lenz, AVC, Budget

Allison G. Jones, AVC, Academic Affairs

January 22 & 23, 2008Board of Trustees

Source

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Approved 2007-08 State BudgetLast Summer

BillionState General Fund $102.3Special Funds $29.2Bond Funds $14.2

TOTAL SPENDING $145.7(Included reserve of $4.1 billion)

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What Happened?

BillionBudget Reserve - 2007-08 Budget Plan $4.1November - LAO Outlook Report ($9.8)December - DOF Projections ($14.0)January - Governor's 2008-09 Budget ($14.5)

2007-08 State Agency Cuts 10%

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Governor’s Proposed Current Year Reductions

Prop. 58 - Special Session called

Mid-year (2007-08) ReductionsProposition 98 (K-14) $400MedCal Cuts $198CalWORKS Reforms $74SSI/SSP COLA $23Prisoner Release $18State Agency Cuts $104

TOTAL $817

SSI: Supplemental Security Income

SSP: Supplemental Payment Program

(65+, Blind & Disabled, limited income)

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Governor’s Proposed January 10th Budget

2007-08 2008-09Billion Billion

General Fund $102.3 $101.0Special Funds $29.2 $26.2Bond Funds $14.2 $13.9

TOTAL SPENDING $145.7 $141.1

Included reserve: $4.1 $2.8

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Governor’s Budget Balancing Reductions

2008-09 Proposed Reductions BillionDeficit-financing bonds $3.3Deficit-Bonds prepayment $1.5Accruing 2009-10 tax revenues $2.0Reducing Prop. 98 (K-14) $4.4State Agencies and Programs $4.0

TOTAL $15.2

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Budget Events

StateJan 10th

Governor’s proposed budgetFeb 20th

LAO releases review of proposed budget with recommendationsMar/Apr

Budget subcommittee hearingsMay

LAO releases May Revision of next year’s revenue projectionsJune 30th

Constitutional deadline for legislative approval of next year’s budget

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Budget Process

Nov – Dec Trustees adopt Budget proposal Enrollment targets set

Jan System wide response to Governor’s budget

June “May revise” budget updates provided

Week following approval of state budget Campus budget allocations provided

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2008-09 CSU Budget

General Fund2007-08 Base Budget $2,977,296,000Compact Priorities $213,576,000

Subtotal $3,190,872,000Reduction ($312,900,000)

TOTAL $2,877,972,000Fee Revenue

2007-08 Base Budget $1,376,853,0002.5% Enrollment Growth $144,224,000 *

TOTAL $1,521,077,000

2008-09 Base Budget $4,399,049,000

* 2.5% Enrollment Growth Revenue $34.510% Fee Increase $109.7

General Fund $73.2SUG $36.5

$144.2 *

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Requested but Not Funded!

2008-09 Above Compact Funding Request

Additional 1% Enrollment Growth $27.5Clinical Nursing Support $7.8Teacher Performance Assessment (TPA) $10.0Student Services for Success and Authentic Access $24.61% Compensation $30.4Applied Research $12.01st year funds to increase ratio of Tenured Faculty $42.9

TOTAL $155.2

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2008-09 CSU Budget

Revenue Assumptions CSU Trustees

General Operations (4%) $117.0 Million Enrollment Growth (2.5%) $68.8 Million

(8,572 FTES, 11,100 students)

Academic Infrastructure (1%) $29.2 Million Revenue Augmentation $73.2 Million General Fund $288.2 Million Enrollment Growth Revenue $34.5 Million Total Funding $322.7 Million

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2008-09 CSU Budget

Expenditure Assumptions Mandatory Costs $36.0 Million Enrollment Growth (2.5%) $82.5 Million Compensation $154.3 Million Financial Aid $6.9 Million Long Term Need $43.0 Million

Total Funding $322.7 Million

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Enrollment Growth (2.5%)Above Enrollment Growth (1.0%)

325,545

334,198

342,893

351,465

342,8932,565

6,196

10,000

3,429

2005-06 2006-07 2007-08 2008-09 2008-09

Additonal Enrollment

Target Delta

Target Enrollment

$16M

$77M

$45M

$27.5M

2.5%8,572

1%

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Lobbying:

Key Messages The proposed budget will not allow the CSU to serve

all qualified students, reducing access to college. Long term prospects of increasing college going rates

of underserved communities will be negatively impacted just as we were making progress.

Less access to the CSU will impact industries and the state’s economy given our role in preparing the state’s workforce.

State Reduction ($312.9)Fee Buy Out ($73.2)

CSU Budget Restoration ($386.1)

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CSUS Budget Planning Timeline Jan

UBAC receives information on Governor’s budget and projected enrollments.Budget Call: UBAC reviews and recommends to President.

Feb – MarDivisions prepare response to Budget Call.

AprilUBAC meets with Division heads and reviews responses.

MayUBAC makes preliminary budget recommendations.

AugustUBAC makes final recommendations to President.

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Current Year Budget Allocations (Sept. 2007)

DIVISIONS2006-07 Baseline

2007-08 Baseline Before

2007-28 Permanent Reductions

2007-08 Baseline After

% Change

Academic Affairs $99,772,357 $104,018,899 ($2,127,397) $101,891,502 -2%Administration & Business Affairs $15,953,886 $16,318,035 ($283,823) $16,034,212 -2%Student Affairs $8,608,669 $8,959,135 ($132,197) $8,826,938 -1%Information Resources & Technology $5,146,732 $5,862,416 ($121,188) $5,741,228 -2%University Advancement $4,214,661 $4,327,317 ($215,681) $4,111,636 -5%Athletics $3,158,022 $3,243,084 ($67,476) $3,175,608 -2%Human Resources $1,761,313 $1,863,865 ($38,688) $1,825,177 -2%President's Office $1,015,549 $1,047,469 ($52,290) $995,179 -5%Governmental & Civic Affairs $165,359 $172,235 ($3,636) $168,599 -2%

SUBTOTAL $139,796,548 $145,812,455 ($3,042,376) $142,770,079 -2.09%

RESTRICTED or MANDATORY COSTSMandatory Benefit Costs $46,771,757 $49,970,955 $49,970,955All University Expenses $18,214,686 $20,246,081 $20,246,081Student Grants $16,395,950 $18,042,250 $18,042,250Compensation $6,399,048 $9,785,899 $9,785,899Center for California Studies $3,081,000 $3,201,000 $3,201,000Reserve $2,597,614 $2,597,614 $2,597,614

SUBTOTAL $93,460,055 $103,843,799 $103,843,799

TOTAL $233,256,603 $249,656,254 ($3,042,376) $246,613,878 -1.22%

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2007-08 Deficit of ($7,447,769)

Baseline Cuts of ($3,042,376)

TOTAL EXPENDITURE $246,613,878

General Fund $165,543,608Fees $77,786,986Work Study / Financial Aid ($1,122,109)TOTAL REVENUE $242,208,485

Deficit covered by one-time funds ($4,405,393)

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Campus Outlook

Projected deficit for 2008-09: $10 million. Projected $4.5 million structural “gap” for

2008-09. Projected $5.5 million General Fund

reduction. Projected $2 million in unfunded cost

increases. Add $2 million in fees

(assumes 4% fee increase).

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2008-09 Budget Call Summary

Identify 2007-08 baseline reductions. Estimate carry forward funds. Identify other funds available to meet operating costs:

– 2007-08 and 2008-09 Identify two year plan for budget reductions of 7%

– Baseline and one-time reductions totaling 7% in 2008-09.

– Total baseline reduction of 7% in 2009-10. Identify one-time expenditures ($50,000 or more)

anticipated in next 3 years and funding sources. Complete 2008-09 All University Expense request forms.

http://www.csus.edu/aba/budget/ubac/OP_BUDGET_Call_Documents.pdf

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First year of $10 Million Cut

DIVISIONS2008-09 Baseline Reduction

Baseline OR Baseline & One-time

FundsAcademic Affairs $101,891,502 -7% (7,132,405)Administration & Business Affairs $16,034,212 -7% (1,122,395)Student Affairs $8,826,938 -7% (617,886)Information Resources & Technology $5,741,228 -7% (401,886)University Advancement $4,111,636 -7% (287,815)Athletics $3,175,608 -7% (222,293)Human Resources $1,825,177 -7% (127,762)President's Office $995,179 -7% (69,663)Governmental & Civic Affairs $168,599 -7% (11,802)

SUBTOTAL $142,770,079 -7% (9,993,906)RESTRICTED or MANDATORY COSTS

Mandatory Benefit Costs $49,970,955All University Expenses $20,246,081Student Grants $18,042,250Compensation $9,785,899Center for California Studies $3,201,000Reserve $2,597,614

SUBTOTAL $103,843,799

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Questions?

CSU Statewide Senators: Bob Buckley Tom Krabacher Chris Miller

University Budget Committee: Fred Baldini Bob Buckley Scott Farrand Laureen O’Hanlon James Sobredo