Budget Presentation Academic Senate November 03, 2015 Lynn Mahoney, Provost and Vice President for Academic Affairs Lisa Chavez, Vice President for Administration and CFO Lyn Mahoney Lisa Chavez California State University, Los Angeles 5151 State University Drive | Los Angeles, CA 90032 http://www.calstatela.edu/

What we will talk about: CSU Budget Process University Budget Process Budget Redesign Academic Affairs Budget

CSU Systemwide Process June CSU Constituent Consultations July Executive Council Policy Retreat July – September Review enrollment targets, consultation with presidents System Budget Advisory Committee discussion of budget proposals Budget briefing for the Board of Trustees October-November Constituent Consultations Trustees adopt Support Budget Request December-January Review CSU enrollment targets and revenue assumptions January Governor’s Budget submitted to Legislature February Legislative Analyst’s Analysis of Budget March-May More CSU Constituent consultations, Legislative budget hearings, Governor’s May Revision of January Budget Budget Adopted

CSU Systemwide Process July Campus is given final budget allocation from Chancellor’s Office June CSU Constituent Consultations July Executive Council Policy Retreat July – September Review enrollment targets, consultation with presidents System Budget Advisory Committee discussion of budget proposals Budget briefing for the Board of Trustees October-November Constituent Consultations Trustees adopt Support Budget Request December-January Review CSU enrollment targets and revenue assumptions January Governor’s Budget submitted to Legislature February Legislative Analyst’s Analysis of Budget March-May More CSU Constituent consultations, Legislative budget hearings, Governor’s May Revision of January Budget Budget Adopted May After Governor provides revised budget Cal State LA revises budget assumptions if necessary and reconvenes RAAC. August Cal State LA submits annual budget submission Insert CAL STATE LA February-March Cal State LA begins projections based on January Budget and assumptions. If assumptions are solid the Resource Allocation Advisory Committee convenes (RAAC)

University General Fund Budget FY 2015-16

Campus General Fund Distribution 2015-16 $252,990,411

Campus General Fund Distribution 2015-16 $47,135,969 18.6%

Campus General Fund Distribution 2015-16 $56,179,599 22.2%

Campus General Fund Distribution 2015-16 $7,876,886 3%

Campus General Fund Distribution 2015-16 $4,427,094 1.7%

Campus General Fund Distribution 2015-16 $3,896,114 1.5% $2,410,577 1% $131,064,172 52% $252,990,411

2015-16 General Fund Allocation Net of Restricted Funds 65.85% $86,302,658 13.46% $17,644,109 7.54% $9,881,485 7.19% $9,429,244 2.61% $3,416,043

Cal State LA Budgeted Funds: Operating/General Fund Lottery Fund Instructionally Related Activities (IRA) Student Success Fees Health Services Fee Athletics Fee Graduate Professional Fees Education Doc Fee Housing Parking University Student Union ASI Fees Professional and Global Education Fees/CERF University Auxiliary Services CSULA Foundation

Current Budget Model Incremental Plus Fully-fund Base Operations Mandatory Cost Campus Priorities Divisional Allocations are a Percentage of Base Budget

2015-16 General Fund Allocation

Budget Model Redesign Presidential Vision and University Initiative Planning, Research, and Evaluation Developed New Cal State L.A. Budget Model Campus Engagement and Communication

Three-Year Implementation Timeline Conception to Implementation www.calstatela.edu/admfin/resource-allocation-model-review Start Sept. 2013 Presidential/Campus Initiative Budget Model Redesign Dec. 2013 Planning, Research, and Evaluation of Requirements for Budget Model/White Paper Jan. 2014 Formed Budget Allocation Task Force Feb. – Jun. 2014 Assessment of Base Expenditure Need Develop the ZBB Template Training Sessions on ZBB Analysis of ZBB Submissions Fine Tuning Jul. 2014 ZBB Meetings with University Divisions VP, College Deans, and Fiscal Managers Post Implementation Review Planning 11 Months Development 16 Months Implementation 9 Months Finish Fall 2016 Implementation Nov. 2014 Budget Allocation Task Force Convened Total Model Transition: 36 Months May. 2015 – Jan. 2016 Design Framework of New Budget Model Development of Key Performance Data Analytics Update Campus Administrative Procedures Oct.– Nov. 2015 Communication of New Budget Model University-wide Budget Townhall Aug. 2015 Vetting and Feedback from Campus Constituents University-wide Email Communication Jan. 2015 Budget Allocation Task Force Reconvened

Budget Models in Higher Education HIGHER EDUCATION BUDGET MODELS Incremental Responsibility Center Management (RCM) Activity-Based Budgeting (ABB) Hybrid Centralized Performance- Based Budgeting (PBB) Zero Based Budget (ZBB)

Budget Guiding Principles VPs and Deans will be accountable for performance and accountable to the general public. A. Accountability Inclusive. Simple to understand. Easily communicated. T. Transparent Equitable allocations consistent with University strategic initiatives. E. Equitable Adaptable to changing needs. Divisions and colleges have flexibility to best manage their budgets. A. Adaptability Mission sensitive and incorporates campus strategic initiatives into the planning. M. Mission Sensitive

Mission Critical Funding Performance Assessment New Cal State LA Blended Budget Model Essential Operations Maintains base support for on-going commitments critical for University operations. Mission Critical Funding Funds will be set-aside in support of strategic initiatives and investments required for a world class university. Performance Assessment Annual performance reporting of division operations will be conducted. Note: The Budget Allocation Model Taskforce welcomes your comments and feedback to the budget redesign initiative. Since the redesign is in the development phase, the information presented is for reference only and is subject to change.

Budget Redesign Webpage

Academic Affairs: Sources of Revenue General Fund Self-support programs: Summer Session Lottery Student Fees Philanthropy Grants & Contracts

General Fund 2012-13 2013-14 2014-15 2015-16 Base Allocation $68.7 M Excess Enrollment $4.7 M $7.7 M Pending

Summer Session, Lottery, Student Fees 2012-13 2013-14 2014-15 2015-16 Summer Session $1.8 M $2.3 M Pending Lottery $2.4 M $2.1 M $1.4 M $1.5 M Student Fees $1.0 M $3.9 M $3.7 M $4.3 M

Strategic Investments New Tenure Track Faculty Support for Research & Creative Activities Student Success and Achievement One-time investments The University Library Unit and department improvements Grant Proposal Development Student Services Support

Investing in our Colleges Carry Forward Summer Session Excess Enrollment Retirement and Resignation Savings Staff positions

College General Fund Allocations 2012-13 2013-14 2014-15 2015-16 A&L $12.5 M $12.7 M $14.5 M $15.9 M CBE $8.8 M $9.0 M $9.6 M CCOE $7.1 M $7.3 M $7.7 M ECST $5.4 M $6.1 M $6.3 M $7.4 M HHS $10.8 M $11.0 M $11.7 M NSS $16.1 M $17.8 M $18.2 M $20.1 M LIB $3.6 M $3.7 M Academic Affairs $4.4 M $6.0 M $10.1 M

College Excess Revenue Allocations 2012-13 2013-14 2014-15 2015-16 A&L $410 K $771 K TBD CBE $176 K $655 K CCOE $71 K $392 K ECST $552 K $1.5 M HHS $145 K $422 K NSS $1.2 M $2.4 M Academic Affairs $2.1 M $1.6 M  

Lottery and Student Fees College 2012-13 2013-14 2014-15 2015-16 A&L $569 K $758 K $696 K $763 K CBE $86 K $412 K $369 K $398 K CCOE $134 K $201 K $88 K $112 K ECST $246 K $441 K $414 K $487 K HHS $260 K $638 K $509 K $788 K NSS $382 K $535 K $520 K $554 K LIB $860 K $444 K $455 K Academic Affairs $872 K $2.6 M $2.1 M $2.3 M

Summer Session Revenues College 2012-13 2013-14 2014-15 2015-16 A&L $93 K $219 K Pending CBE $494 K $642 K CCOE ECST $14 K $71 K HHS $265 K $398 K NSS $902 K $977 K

2015-2016 New General Fund Allocation  Strategic Investments Funding New TT Faculty $3.1 M Faculty Equity and Promotions $796 K Instruction and Enrollment $913 K Research & Creative Activities  $188 K Student Success and Achievement  $903 K Strategic Planning Initiatives $707 K Resource Planning and Management $155 K

Looking Ahead Strategic Planning Process Maximizing our instructional dollars Self-Support Programs and DTLA Improved processes for Lottery, IRA and Student Success Fee funding Grants & Contracts Philanthropy

Questions?