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

2. CSU FY 2018-19 Operating Budget
The CSU FY 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 $ 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)

3. 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 identified as a contingency.

4. CSU FY 2018-19 Operating Budget (Continued)
During March BOT meeting, a revised FY 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

5. 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 budget.

6. Preliminary CSU FY 2018-19 Budget Memo (continued)

7. Preliminary CSU FY 2018-19 Budget Memo (continued)

8. Additional Context: Existing CSUDH Base Budget Deficits

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

10. 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 strategic priorities
Unspent FY new operating fund & approved FY student success fee allocations
Continue analysis and discussion on opportunities to increase non-state revenue.
Friday, May 25
Review and assess Governor's FY May Revise Budget and determine next steps.

11. Questions?

12. 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.