FY 2018-2019 Budget Planning Effective March 16, 2018

FY2018-2019 Budget Planning & Concerns Budget Schedule Enrollment Cost Escalation Summary Minimum Wage/Labor/Benefits Other Cost/Issues Capital Planning Options 2018-2019 Budget Planning

FY 2018-2019 Budget Schedule FY 2018-2019 Budget Planning

CSULB Enrollment 2018-2019 Budget Planning

Labor Related Expenses $320K-$350K Minimum Wage rate increase Benefit Liability increase 5.5% PERS Contribution Increase Legacy - 8.9%  9.4% PEPRA - 6.53%  6.84% Medical Premiums FY 2018-2019 Budget Planning

FY 2018/2019 Budget Minimum Wage Administration Estimated $320K impact California Minimum Wage Increase $12.00/hour on January 1,2019 (period 7) Effects all Students, Hourly, and Temporary employees Tiered Increase for those between $11.50 - $13.50 Budget Guideline for hourly rate adjustments $11.50 - $11.99  $12.00 (up to 4.3% Escalation) $12.00 - $12.49  $12.55 (up to 4.5% Escalation) $12.51 - $12.99  $13.05 (up to 4.3% Escalation) $13.00 - $13.49  $13.55 (up to 4.2% Escalation) FY 2018-2019 Budget Planning

FY 2018/2019 Budget Salaried Labor Considerations 3% Salary Pool Increase planned Effects non-minimum wage employees California Salary Exempt Law – 1/1/19 2X Minimum Wage - $49,920 Employee Impact being assessed Minimum wage increase effective Jan Payroll Want to control ripple affect Guideline for Hourly, Temp and Student increases Further comp analysis will be required Jan 2019 increase to $12/hr 2018-2019 Budget Planning

Other Expense Increases Market cost Increase Cost of Goods increase – Market rate Insurance Premiums CSURMA -$24K 8% Campus Allocations Typically higher than market EO-1000 Utilities Long Term Reserve Requirements FY 2018-2019 Budget Planning

Revenue/Cost Related Issues Likely Facing a Cash Flow Neutral scenario Labor/Cost escalation outweighing Revenue Growth Declining Text Sales Affordable Residential Dining plans 3.7% Increase per contract Retail Dining ongoing annual Loss of $500K FY 2018-2019 Budgeting Overview

Preliminary Capital Assessment Anticipating minimum Projects Starbucks Library – In progress Japanese Garden carryover A/C – Always an issue - $350K- $1M Safety/Repair unknowns Aging UDP FY 2018-2019 Budget Planning

Options Master Food Plan Faculty Relationship Closing inefficient locations Campus Agreements Reserves FY 2018-2019 Budget Planning