1 February 14, 2008 Budget Update State Budget (Slides 2 – 8) and CSU Budget (Slides 9 – 15) CSUS Budget (Slides 16 – 22) California State University, Sacramento Faculty Senate

California State Budget CSU Budget Patrick J Lenz, AVC, Budget Allison G. Jones, AVC, Academic Affairs January 22 & 23, 2008 Board of Trustees Source

3 Approved State Budget Last Summer

4 What Happened?

5 Governor’s Proposed Current Year Reductions Prop Special Session called

6 Governor’s Proposed January 10 th Budget

7 Governor’s Budget Balancing Reductions

8 Budget Events State Jan 10 th  Governor’s proposed budget Feb 20 th  LAO releases review of proposed budget with recommendations Mar/Apr  Budget subcommittee hearings May  LAO releases May Revision of next year’s revenue projections June 30 th  Constitutional deadline for legislative approval of next year’s budget

9 Budget Process Nov – Dec  Trustees adopt Budget proposal  Enrollment targets set Jan  System wide response to Governor’s budget June  “May revise” budget updates provided Week following approval of state budget  Campus budget allocations provided

CSU Budget

11 Requested but Not Funded!

CSU Budget Revenue Assumptions CSU Trustees  General Operations (4%)$117.0 Million  Enrollment Growth (2.5%)$68.8 Million (8,572 FTES, 11,100 students)  Academic Infrastructure (1%)$29.2 Million  Revenue Augmentation$73.2 Million  General Fund$288.2 Million  Enrollment Growth Revenue$34.5 Million  Total Funding$322.7 Million

CSU Budget Expenditure Assumptions  Mandatory Costs$36.0 Million  Enrollment Growth (2.5%)$82.5 Million  Compensation $154.3 Million  Financial Aid$6.9 Million  Long Term Need$43.0 Million Total Funding $322.7 Million

14 Enrollment Growth (2.5%) Above Enrollment Growth (1.0%)

15 Lobbying: Key Messages  The proposed budget will not allow the CSU to serve all qualified students, reducing access to college.  Long term prospects of increasing college going rates of underserved communities will be negatively impacted just as we were making progress.  Less access to the CSU will impact industries and the state’s economy given our role in preparing the state’s workforce.

16 CSUS Budget Planning Timeline  Jan UBAC receives information on Governor’s budget and projected enrollments. Budget Call: UBAC reviews and recommends to President.  Feb – Mar Divisions prepare response to Budget Call.  April UBAC meets with Division heads and reviews responses.  May UBAC makes preliminary budget recommendations.  August UBAC makes final recommendations to President.

17 Current Year Budget Allocations (Sept. 2007)

Deficit of ($7,447,769) Baseline Cuts of ($3,042,376)

19 Campus Outlook Projected deficit for : $10 million.  Projected $4.5 million structural “gap” for  Projected $5.5 million General Fund reduction.  Projected $2 million in unfunded cost increases.  Add $2 million in fees (assumes 4% fee increase).

Budget Call Summary  Identify baseline reductions.  Estimate carry forward funds.  Identify other funds available to meet operating costs: – and  Identify two year plan for budget reductions of 7% –Baseline and one-time reductions totaling 7% in –Total baseline reduction of 7% in  Identify one-time expenditures ($50,000 or more) anticipated in next 3 years and funding sources.  Complete All University Expense request forms.

21 First year of $10 Million Cut

22 Questions? CSU Statewide Senators:  Bob Buckley  Tom Krabacher  Chris Miller University Budget Committee:  Fred Baldini  Bob Buckley  Scott Farrand  Laureen O’Hanlon  James Sobredo