Academic Senate FY 2018-19 Budget Update April 18, 2018

CSU FY 2018-19 Operating Budget The CSU FY 2018-19 Operating Budget approved by the Board of Trustees (BOT) included new resources to help meet the education and workforce needs of the State totaling $283M: $263M New state general fund appropriation request $ 20M Enrollment growth tuition revenue The need for new funding focused on five key areas: The Graduation Initiative 2025 $ 75M Compensation increase for all employees $122M Enrollment growth of 1% (3,641 FTES) $ 40M Critical Infrastructure $ 15M Mandatory cost increases $ 31M (Healthcare, retirement & minimum wage increases)

CSU FY 2018-19 Operating Budget (Continued) Governor’s “January Budget Plan” for CSU calls for an augmentation of $92M—$171M less than the CSU request. Governor’s “May Revise Budget” scheduled for May 14. CSU actively engaged in efforts to increase state funding. Absent additional funding, in January the BOT identified the following potential strategies: Reducing academic & non-academic programs and services. Cost avoidance, effectiveness & reallocations by each campus. Potential tuition fee increase for 2018-19 identified as a contingency.

CSU FY 2018-19 Operating Budget (Continued) During March BOT meeting, a revised FY 2018-19 CSU budget was identified that forgoes new investments (i.e., funding) in: Year 2 of Graduation Initiative Enrollment growth Infrastructure & deferred maintenance The BOT also discussed the need to reduce expenses, including an evaluation of financial aid cots, and increase both state and non-state funding, including the importance of continued active lobbying efforts and the possibility of a tuition increase in 2018-19.

Preliminary CSU FY 2018-19 Budget Memo There is still a gap of $60M between the Governor's January Budget and the revised CSU FY 2018-19 budget.

Preliminary CSU FY 2018-19 Budget Memo (continued)

Preliminary CSU FY 2018-19 Budget Memo (continued)

Additional Context: Existing CSUDH Base Budget Deficits

Additional Context: CSUDH Multi-Year Budget Commitments Planned in FY 2018-19 The University Budget Committee also considering other FY 2018-19 strategic funding priorities and potential opportunities to further increase non-state revenue.

Next Steps: Upcoming UBC Meeting Agendas Friday, April 27 Review third quarter budget and expenditure reports and preliminary projected year-end carryforward balances. Review/identify and affirm funding commitments to: Multi-year allocations planned in FY 2018/19 Other potential FY 2018-19 strategic priorities Unspent FY 2017-18 new operating fund & approved FY 2018-19 student success fee allocations Continue analysis and discussion on opportunities to increase non-state revenue. Friday, May 25 Review and assess Governor's FY 2018-19 May Revise Budget and determine next steps.

Questions?

Example: Prorated Allocation of $1,735,000 Shortfall Provided only to illustrate one of multiple potential scenarios to allocate preliminary projected shortfall based on March CO budget memo. Does not suggest or imply a recommended approach.