Fiscal Year 2007-2008 Budget Update President’s Cabinet April 13, 2007

CSU BUDGET

CSU Revenue Budget $108.7M representing a 4% general fund increase from the Compact $65.5M enrollment growth funding at $7,837 per FTES $95.9M from state university fee rate increase $25.2M increase in revenue from enrollment growth $2M increase for Math/Science Teacher Initiatives Total CSU budget is $4.3B

CSU Expenditure Budget $44.9 mandatory costs (health benefit, insurance, new space funding, energy, SSI) $74.4 million for resident student enrollment growth $37.6 million increase in State University Grant Program $129.1M Employee Compensation $11.7M Long-term need/math-science initiative

HSU BUDGET

HSU Budget Assumptions State funded enrollment level of 7,244 FTES 7,014 Resident and 230 Non-Resident FTES HSU FY07-08 budget based on the expectation of 7,096 FTES 6,858 Resident and 238 Non-Resident FTES Freshman class is expected to be at least 100 FTES greater than last Fall

Where Does Our Money Come From? General Fund Support $75,901,797 Student/Other Fees 22,059,400 Total General Fund $97,961,197 Net Increase over FY06/07 $ 9,994,233

What Did We Fund? FY0607 Budget Deficit $ 1,845,554 Description Estimated $s FY0607 Budget Deficit $ 1,845,554 Compensation Increases 8,276,400 Space allocation new building 2,268,270 Energy/SUG/Risk/CMS 1,488,700 University Advancement VP office 283,305 Student Affairs/OEM base 573,000 Total of university costs $14,735,229 Note that costs represent FY0607 and FY0708 Estimates

How Do We Use Our Money? Recap Net Budget Increase $ 9,994,233 FY06-08 University Costs 14,735,229 (Compensation, space allocation, energy costs, Financial Aid, New Space Funding, University Advancement, Student Affairs/OEM) Budget Shortfall -$4,740,996

Four Main Causes Of The Persistent Deficits Unique mix of high-quality and high-cost academic majors, small class sizes and a high proportion of tenured or tenure-track faculty Increasing costs of insurance, utilities, technology, salaries benefits have outpaced increases in state funding and other revenue sources. Funding of CSU campuses is now even more closely tied to enrollment. Legislature has asked the CSU to return funds if enrollment targets are not met.

What Research Have We Done? Outside survey last December by our former Provost and former President of Chico State University, Dr. Manuel Esteban; Review by the President Emeritus of CSU Long Beach, Dr. Robert Maxson; Extensive review and discussion by the Executive Committee, Associated Students, Student Fee Advisory Committee, Staff Council, and the Academic Senate; Hours of public scrutiny and discussion by the University Budget Committee.

How Can We Fix Our Budget Two ways to mitigate this ongoing budget shortfall Increase Revenues IRA fee - as proposed would result in ~$2.45M Decrease expenditures

Summary Campus announcement of budget for 2007/08 on Thursday, April 19

Thank You I extend my personal and heartfelt thanks to all who have contributed to these difficult deliberations, with a special thanks to the following: Our former Provost, and President Emeritus of Chico State University, Dr. Manuel Esteban President Emeritus of CSU Long Beach, Dr. Robert Maxson University Executive Committee Associated Students Student Fee Advisory Committee Staff Council Academic Senate University Budget Committee

Questions? See this presentation at: www.humboldt.edu/~budget/