Budget Town Hall Meeting
Dr. Willie J. Hagan, Interim President Mary Ann Rodriguez, Vice President, Administration and Finance
October 15, 2012
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Budget Presentation Preparation
Mary Ann Rodriguez, Vice President Administration and Finance
Karen Wall, Associate Vice President Administration and Finance
Homaira Masoud, Manager, University Budget
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Goals of Presentation• Provide a broad overview of the CSUDH
budget• Provide an opportunity for campus
constituents to ask questions about the budget
• Provide an overview of budget issues and challenges facing the university
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Guiding Principles Budget Planning
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A Budget:Is a map guiding the university’s journey in pursuit of its missionIs a financial representation of the university’s plansShould include details on how resources will be received and expendedShould provide a means for tracking revenue and expenses so resources can be used most effectively to meet university goalsShould present the results of resource allocation decisions and provide a means to set priorities for future resourcesShould be developed through a shared governance process for best resultsShould include provisions for contingenciesShould be flexible enough to respond to changing needs
Guiding Principles ‐ Budget Planning Source: An Introduction for Faculty and Academic Administrators By Larry Goldstein
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• Budgeting should be integrated with planning and measurement
Approved budget is only a snapshot• Process is continuous• Always responding to new information• All‐funds budgeting• Focus on accountability versus control• Broadly participative process• Information is most valuable when shared—especially
financial information
Source: An Introduction for Faculty and Academic Administrators By Larry Goldstein
Guiding Principles ‐ Budget Planning (cont’d.)
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• Planning is the challenging partWhen done well, budgeting and measurement are relatively easy
• Effective planning identifies what is important and what’s not as important
• Budget ideally is the quantitative representation of what’s important
• All resource allocation decisions should align with the campus priorities
Guiding Principles ‐ Budget Planning (cont’d.)Source: An Introduction for Faculty and Academic Administrators By Larry Goldstein
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CSU Budget Process
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CSU Budget Process
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Variables Impacting CSUDH 2012/13 Budget
• Includes CSUDH share of $100M 2011/12 budget reduction ($2.7M)• Assumes $250M CSU budget reduction if November ballot initiative
fails, for CSUDH ($5.8M) budget reduction• If Tax Initiative fails, Trustees approved 5% tuition fee increase,
effective January 2013, to offset $58M of the budget reduction in 2012/13 and $116M in 2013/14 and beyond
• Assumes implementation of 9.1% tuition fee increase, approved by Board of Trustees November 2011
• Assumes CSUDH budget funding levels based on achieving enrollment target of 9,425, and exceeding it by 5%
• Assumes unfunded mandates, e.g., health benefit increase, utility cost increase, etc., will be absorbed by campus
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Additional Variables Which Could Impact the CSUDH Budget
• If Tax Initiative passes, the ($5.8M) reduction to the CSUDH budget will be rescinded
• If Tax Initiative passes, the CSU has to roll back the 9.1% tuition fee increase for 2012/13 with a commitment that most of it will be returned as state allocation in the next fiscal year
• Chancellor has authorized one time transfer of Continuing Education reserve to help address budget reductions, for CSUDH $1.8M
The Point of All of This is That Budget Planning is Difficult With So Many Moving Pieces
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University Budget Fiscal Year 2012/13
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CSUDH Sources of Funds• CSU Operating Fund consists of: State Allocation, State
Tuition Fee Revenue, and other Revenues (e.g., non‐resident tuition fee, application fee, miscellaneous fees, etc.)
• University auxiliary organizations are separate, private, non‐state, non‐profit corporations consistent with the California Ed Code and Corporation Codes: • CSUDH Foundation• Associated Students • Loker Student Union
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2012/13 TOTAL UNIVERSITY BUDGET ‐ ALL FUNDSProjected Operating Fund1 $130,266,530 Lottery Fund 983,000 Interest Income 275,000 Continuing Education Fund 16,375,000 Housing Fund 3,435,982 Parking Fund 1,900,000 Fines and Forfeitures 285,000 Foundation 17,800,000 Student Union 4,760,600 Associated Students 1,693,150
Total University Budget $177,774,262
1The University Projected Operating Fund includes the state allocation and tuition fee revenue. Following a worst case budget planning scenario promulgated by the Chancellor’s Office, this amount has been reduced by ($5.8M) on the assumption the November Tax Initiative fails (see slide 16 for more details).
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Projected Operating Fund, $130,266,530, 73.3%
Lottery Fund, $983,000, .5%
Interest Income, $275,000, .1%
Continuing Education Fund, $16,375,000, 9.2%
Housing Fund, $3,435,982, 1.9%
Parking Fund, $1,900,000, 1.1%
Fines and Forfeitures, $285,000, .2%
Foundation, $17,800,000, 10% Student Union,
$4,760,600, 2.7%
Associated Students, $1,693,150, 1%
2012/13 TOTAL UNIVERSITY BUDGET ‐ ALL FUNDSTotal $177,774,262
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2012/13 PROJECTED OPERATING FUND REVENUE Baseline One‐time Total
State Appropriation1 $51,041,052 0 $51,041,052 Tuition Fees2 73,180,243 0 73,180,243 Non‐Resident Tuition Fees 740,000 0 740,000 Application Fees 683,000 0 683,000 Student Health Services Fees 1,700,000 0 1,700,000 Miscellaneous Revenue3 185,000 0 185,000 Continuing Education Cost Recovery 400,000 0 400,000 Home Depot Funds 450,000 0 450,000 Continuing Education Budget Act Authority4 0 1,887,235 1,887,235 Total Projected Operating Fund Revenue $128,379,295 $1,887,235 $130,266,530
Footnote:1 Includes CSUDH share of 2011/12 state appropriation $100M reduction of ($2.7M), and 2012/13 $250M reduction of ($5.8M)2 Includes 5% over‐enrollment, 9.1% tuition fee increase, 5% tuition fee increase Spring 20133 Miscellaneous fees for late, transcripts, fines, etc.4 As part of the 2012/13 state budget act granted one‐time transfer
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State Appropriation, Tuition & Other Fees, Other Revenue SourcesFY 2008/09 & FY 2012/13
(in Millions $)
FY 2008/09$108.9
FY 2012/13$130.3
State Appropriation, $69.5, 64%
Tuition & Other Fees, $38.8,
35%
Other Revenue, $0.7, 1%
State Appropriation, $51.0, 39%Tuition & Other
Fees, $76.5, 59%
Other Revenue, $2.7, 2%
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$0.0
$20.0
$40.0
$60.0
$80.0
$100.0
$120.0
$140.0
FY 2008/2009$108.9
FY 2009/2010$113.6
FY 2010/2011$114.4
FY 2011/2012$127.4
FY 2012/2013$130.3
$69.5 $59.1 $60.1 $57.1 $51.0
$38.8 $53.9 $54.3 $70.3 $76.5
$0.7 $0.6 $0.0$0.0 $2.7
State Appropriation, Tuition & Other Fees, Other Revenue Sources
FY 2008/09 through 2012/13(in Millions $)
State Appropriation Tuition & Other Fees Other Revenue
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2012/13 PROJECTED OPERATING FUND EXPENDITURE BUDGET
Academic Affairs $37,109,789
Administration and Finance 13,764,654
Enrollment Management and Student Affairs 7,350,400
University Advancement 1,148,344
President's Office 1,002,097
Centrally Monitored Funds1 65,602,761
Unallocated Reserves2 4,288,485
Total Projected Operating Fund Expenditure $130,266,530
Note: Division Baseline Budgets to be listed in the Blue Book, have been adjusted to fund new faculty hired in 2011/12, IT positions, President's staff, reduction in interest payback to state, increase in risk management premiums, tuition fee discount, and benefits. 1Centrally Monitored Funds detail will be shown on the next slide (#20).2Available on one‐time basis
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2012/13 PROJECTED OPERATING FUND CENTRALLY MONITORED BUDGETM A N D A T O R YEmployee Benefits $25,174,251 Utilities 3,175,190 Risk Management Pool 2,419,822 Property Insurance Premium Costs 224,619 Student Financial Aid 31,251,701 Student Health Services 1,700,000 Credit Card Registration 350,000 Special Repairs 491,000 Employee Compensation Allocation (Per Unit 4 contract) 365,473
SUBTOTAL ‐ MANDATORY: $65,152,056 S E R V I C E C O M M I T M E N TCSU Financial Audit Assessment Costs & State Budget Reporting $25,500 CSU Financial Records 110,000 Athletic Scholarships 10,000 Instructionally Related Activities 17,648 Student Union Rental 50,000 Academic Technology 77,557 Commencement 160,000
SUBTOTAL ‐ SERVICE COMMITMENT: $450,705
Total Centrally Monitored Funds $65,602,761
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Fiscal State of University Fiscal Year 2011/12
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2011/12 UNIVERSITY ALL FUNDS CARRY‐FORWARD BALANCES AS OF JUNE 30, 2012
Operating Fund (see slide 23) $29,357,614 Interest Income Fund Balance 2,161,151 Course, Lab, Testing, User Fees1 675,154 Lottery Fund 1,261,060 Continuing Education Fund 7,334,003 Continuing Education Fund‐Campus Partners 940,958 Housing Fund 1,019,233 Parking Fund 3,919,811 Fines and Forfeitures 707,829 Miscellaneous Trust2 2,670,391 Foundation (net assets) 15,681,922 Student Union (net assets) 1,397,287 Associated Student (net assets) 1,824,633 Total University All Funds Carry‐Forward Balances $68,951,046 Footnote:1Course, Lab, Testing, User Fees ‐ fees approved by Campus Fee Committee2Non‐Operating RevenueNote: Chart excludes financial aid funds
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2011/12 OPERATING FUND CARRY‐FORWARD BALANCEAS OF JUNE 30, 2012
DIVISION /CENTRALBUDGETBALANCE
Academic Affairs $5,965,136
Administration and Finance 2,415,189
Enrollment Management and Student Affairs 1,490,095
University Advancement 1,213,377
President's Office (33,592)
Centrally Monitored Funds (see slide 24) 13,108,999
Revenue1 (see slide 24) 5,198,410
Total Operating Fund Carry‐forward Balance $29,357,614
1Revenue includes tuition fees and miscellaneous revenueNote: Budget to actual (Budget – Expenditure – Encumbrance = Budget Balance)
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OPERATING FUND CENTRAL BALANCE AS OF JUNE 30, 2012SOURCES/USES OF FUNDS FOR 2012/13
SourcesOperating Balance as of June 30, 2012 $18,307,409
Centrally Monitored Funds 13,108,999
Uses Revenue 5,198,410
President's allocation for multi‐year faculty intramural research program (600,000)President's allocation for faculty/staff professional development (450,000)Allocation to the colleges for faculty (125,000)Penalty (paid to the CO) for over‐enrollment in 2011/12 (3,649,000)Funds for additional course sections in 2012/13 (2,300,000)CMS Loan Payment (1,460,668)Special Repairs (141,826)University Marketing/Publication/Advertising (455,300)Operating Reserve (3%) (3,765,351)Total Operating Fund Central Balance $5,360,264Note: Central funds do not include division budget balances
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Operating Funds Available for One Time Allocation
2012/13 unallocated (slide 19) $4.3M
Interest Income Fund Balance (slide 22) $2.2M
Central Balance from prior year (slide 24) $5.3M
Total Operating Funds Available for One Time Allocation $11.8M
Note: Expenditure recommendations will be obtained via the University Budget Committee, in consultation with Administrative Council, Academic Affairs Program Effectiveness Council, Academic Senate, Division Heads, Staff Representatives, and ASI.
CSU Dominguez Hills’ unrestricted (Operating) funds:
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Potential Uses of One Time Funds• Hold another $2 ‐ 4M in reserve due to the volatile state budget• Deferred maintenance• Information Technology• Technology equipment • Temporary staff for critical areas • Faculty Sabbaticals• Reassigned Time• Seed money to develop new academic programs• Seed money to develop new administrative programs• Margin of Excellence Program• One time supplies & services funds for colleges • Library acquisitions• Student support services
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University Budget PlanningFiscal Year 2012/13
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CSUDH Budget Issues SummaryCSU Dominguez Hills’ 2012/13 Operating Fund Budget Planning if tax initiative fails includes:
• $250M reduction ($5.8M)• $100M reduction from 2011/12 ($2.7M)• 9.1% tuition fee increase ($6.55M, $1.95M tuition
fee discount for a net of $4.6M)• 5% tuition fee increase, Spring 2013 ($1.3M)
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CSUDH Budget Issues SummaryCSU Dominguez Hills’ 2012/13 Operating Fund Budget Planning if tax initiative fails includes:• Use of one time funds• Maintains a 3% operating reserve• Serve 5% additional enrollment• Use of HDC, Continuing Education funds
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CSUDH Budget CommitmentsCSU Dominguez Hills’ 2012/13 Operating Fund Budget Planning:• New faculty hires• Cost for additional sections• Mandatory costs for benefits and insurance• Critical positions• One time allocations for specific purposes• Faculty/staff development
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Budget Planning and Administration Web site for more budget reports
http://www.csudh.edu/admfin/bpa.shtml
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Questions
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