1. FY 2018-2019 Budget Planning Effective March 16, 2018

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

3. FY Budget Schedule
FY Budget Planning

4. CSULB Enrollment
Budget Planning

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

6. 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 $ $13.50
Budget Guideline for hourly rate adjustments
$ $11.99  $12.00 (up to 4.3% Escalation)
$ $12.49  $12.55 (up to 4.5% Escalation)
$ $12.99  $13.05 (up to 4.3% Escalation)
$ $13.49  $13.55 (up to 4.2% Escalation)
FY Budget Planning

7. 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 increase to $12/hr
Budget Planning

8. 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 Budget Planning

9. 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 Budgeting Overview

10. 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 Budget Planning

11. Options Master Food Plan Faculty Relationship
Closing inefficient locations
Campus Agreements
Reserves
FY Budget Planning