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

2. CSU BUDGET

3. 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

4. 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

5. HSU BUDGET

6. 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

7. 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

8. 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

9. 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

10. 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.

11. 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.

12. 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

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

14. 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

15. Questions?
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