University Budget and Marginal Cost Components October 25, 2016 University Budget Office

CSU Marginal Cost of Enrollment Methodology CSU campuses are funded for enrollment growth on the basis of the marginal cost funding methodology negotiated by the CSU, University of California, Department of Finance and the Legislative Analyst’s Office. The Marginal Cost of Enrollment components are based on services directly affected by enrollment increases. The formulas are primarily driven by average costs included in the marginal cost component categories and discounted by a percentage calculated for fixed costs. For example, the formulas approximate staffing and operating resources necessary for increased teaching costs based on a fixed SFR ratio and actual salaries and benefits for new faculty. University Budget Office

CSU Marginal Cost of Enrollment Methodology 2016/2017 Components 2016/17 Total MC Factor Per Student % of Total Instruction $5,772 56.12% Research $0 0% Public Service Academic Support $1,286 12.50% Student Services $1,091 10.61% Institutional Support $1,133 11.02% Oper & Mtc of Plant $918 8.93% Student Financial Aid  0% Total $10,200 99.17% Instructional Equipment $85 0.83% Totals with I.E. $10,285 100.00% State Allocation at $5,809 per new FTES Tuition Fee at $4,476 per new FTES Equals $10,285 University Budget Office

Marginal Cost Components Instruction: Includes expenses for all activities that are part of an institution's instruction program. Faculty and Department Chairs Research: Includes all expenses for activities specifically organized to produce research, whether commissioned by an agency external to the institution or separately budgeted by an organizational unit within the institution. Public Service: Includes expenses for activities established primarily to provide non-instructional services beneficial to individuals and groups external to the institution. Center for Community Engagement Green Music Center - Production Entrepreneurial Activities - Conferences, Marketing, Box Office Academic Support: Includes expenses to provide support services to the institution’s primary missions: instruction, research, and public service. Academic Deans and Administrative Services Academic Advising Tutorial Center University Budget Office

Marginal Cost Components Student Services: Includes expenses incurred for offices of admissions and the registrar, and activities with the primary purpose of contributing to students' emotional and physical well-being and intellectual, cultural, and social development outside the context of the formal instruction program. Admissions and Records Athletics Disability Services The HUB Institutional Support: Includes expenses for central executive-level activities concerned with management and long-range planning for the entire institution. Executive Offices Financial Services Human Resources Seawolf Services Green Music Center - Administration Operation of Maintenance and Plant: Includes all expenses for the administration, supervision, operation, maintenance, preservation and protection of the institution’s physical plant. Facilities Services Utilities Police and Security Student Financial Aid: Includes expenses for scholarships and fellowships from restricted or unrestricted funds—in the form of grants to students, resulting from selection by the institution or from an entitlement program. University Budget Office

University Budget by Division- Total Budget: $106,235,883 Distribution of 2015/16 Operating Fund Budget University Budget Office

University Budget by Marginal Cost Component Distribution of 2015/16 Operating Fund Budget University Budget Office

University Budget by Marginal Cost Component (without Financial Aid) University Budget Office

2015-16 Operating Fund Budget by Marginal Cost Component (CSU vs. SSU) Based on CSU and SSU FIRMS budget submissions University Budget Office University Budget Office

University Budget Office CSU Marginal Cost Methodology vs. SSU Budget Allocation Distribution – Six Year Trend Original Posted budget – matches Expenditure Plans Distribution of Operating Fund Budget University Budget Office University Budget Office

University Budget Office Breakout of Marginal Cost Component by Division (2016/2017 Operating Fund Budget) University Budget Office

University Budget Office Breakout of Divisions by Marginal Cost Component (2016/2017 Operating Fund Budget) University Budget Office

Institutional Support Operation and Maintenance of Plant Marginal Cost Methodology, Budget & Actuals by FTES for the Operating Fund (2015-16) Academic Support Institutional Support Instruction Operation and Maintenance of Plant Public Service Student Services Total MC $ 1,286 $ 1,133 $ 5,772 $ 918 $ 0 $ 1,091 $ 10,200 Budget $ 1,447 $ 1,907 $ 5,576 $ 1,686 $ 72 $ 1,117 $ 11,805 Actuals $ 1,464 $ 1,894 $ 5,530 $ 1,767 $ 183 $ 1,056 $ 11,894 University Budget Office

SSU Operating Fund 2015/2016 Budgeted Marginal Cost Component by FTES University Budget Office

SSU Operating Fund 2015/2016 Actual Marginal Cost Component by FTES University Budget Office

University Budget Office Historical Marginal Cost Component by FTES Budget vs. Actuals (2011/12 – 2015/16) University Operating Fund University Budget Office

University Budget Office GAAP Audited Financials – All University Funds (Non-Auxiliary) Expenses per FTES (SSU vs. CSU) 2010/11 2011/12 2012/13 2013/14 2014/15 Expenses per actual FTES Sonoma CSU Instruction 5,937 6,003 5,706 5,919 5,797 5,946 6,093 6,163 6,168 Academic Support 1,876 1,655 1,794 1,628 1,790 1,676 1,712 1,897 1,864 Student Services 2,020 1,767 2,041 1,757 2,087 1,820 2,152 1,889 2,495 1,922 Institutional Support (% of total, net of dep) 10.1% 11.5% 9.8% 10.9% 9.9% 11.1% 9.6% 11.2% 11.3% Operation and maintenance of plant ($ per Sq Ft) 5.17 5.69 5.02 6.00 5.01 6.23 5.96 6.83 4.35 6.94 University Budget Office

University Budget Office GAAP Audited Financials – All University Funds (Non-Auxiliary) Expenses per FTES (SSU vs. CSU) University Budget Office

University Budget Office GAAP Audited Financials – All University Funds (Non-Auxiliary) Expenses per FTES (SSU vs. CSU) University Budget Office

University Budget Office GAAP Audited Financials – All University Funds (Non-Auxiliary) Expenses per FTES (SSU vs. CSU) University Budget Office

FTES and General Fund Allocation by Campus Resident FTES Campus 15/16 Resident FTES Target 16/17 Resident FTES Increase TOTAL16/17 Resident FTES Total 16/17 General Fund Allocations GF Allocation per FTES CSU AVERAGE 15,438 226 15,661 $ 112,093,164 $ 8,285 Bakersfield 7,526 198 7,724 $ 64,803,309 $ 8,390 Channel Islands 5,500 89 5,589 $ 71,013,910 $ 12,706 Chico 15,000 197 15,197 $ 108,499,232 $ 7,140 Dominguez Hills 10,390 219 10,609 $ 78,847,352 $ 7,432 East Bay 12,114 175 12,289 $ 88,090,361 $ 7,168 Fresno 18,829 276 19,105 $ 138,922,532 $ 7,272 Fullerton 28,452 385 28,837 $ 171,458,661 $ 5,946 Humboldt 7,483 120 7,603 $ 73,852,510 $ 9,714 Long Beach 28,427 387 28,814 $ 184,845,136 $ 6,415 Los Angeles 17,581 299 17,880 $ 132,284,339 $ 7,398 Maritime Academy 1,391 22 1,413 $ 29,594,176 $ 20,944 Monterey Bay 5,519 117 5,636 $ 68,088,783 $ 12,081 Northridge 26,687 352 27,039 $ 181,550,096 $ 6,714 Pomona 18,294 292 18,586 $ 131,369,342 $ 7,068 Sacramento 22,545 22,837 $ 144,684,837 $ 6,336 San Bernardino 15,054 233 15,287 $ 103,197,408 $ 6,751 San Diego 26,948 356 27,304 $ 179,551,596 $ 6,576 San Francisco 23,836 263 24,099 $ 154,811,859 $ 6,424 San Jose 22,201 306 22,507 $ 146,763,282 $ 6,521 San Luis Obispo 16,861 109 16,907 $ 124,600,468 $ 7,342 San Marcos 8,971 9,204 $ 75,782,552 $ 8,234 Sonoma 8,060 128 8,188 $ 63,135,883 $ 7,711 Stanislaus 7,406 146 7,552 $ 62,395,147 $ 8,262 University Budget Office

FTES and General Fund Allocation by Campus Resident FTES Campus 15/16 Resident FTES Target 16/17 Resident FTES Increase TOTAL16/17 Resident FTES Total 16/17 General Fund Allocations GF Allocation per FTES Bakersfield 7,526 198 7,724 $ 64,803,309 $ 8,390 Humboldt 7,483 120 7,603 $ 73,852,510 $ 9,714 San Marcos 8,971 233 9,204 $ 75,782,552 $ 8,234 Sonoma 8,060 128 8,188 $ 63,135,883 $ 7,711 Stanislaus 7,406 146 7,552 $ 62,395,147 $ 8,262 All Campus Average GF Allocation per FTES $ 8,285 Medium Campus Average GF Allocation per FTES (without SSU) $ 8,462 SSU GF Allocation per FTES $ 7,711 Funding Gap in $ Between SSU and CSU Average $ 4,699,912 Funding Gap in $ Between SSU and Medium Campus Average $ 6,150,826 Funding Gap in $ Between SSU and Humboldt $16,400,564 University Budget Office University Budget Office