1. Sinking Budgets Sinking Ships Sinking CSU? Debbie Brothwell Deputy Vice President CSU East Bay June 20111ARC - San Diego 2011

2. Agenda Current Budget Situation ◦ May Revise Historical Budget Data How much funding do we need? What does the future hold? June 20112ARC - San Diego 2011

3. June 20113 Situation continues to worsen….. ARC - San Diego 2011

4. Current Budget Situation May Revise May 16, 2011 June 2011ARC - San Diego 20114

5. CSU Support Budget Cycle Jun Statement of Priorities Trustees Approve Budget Legislative Analyst Analysis Legislative Hearings & May Revise Budget Calendar JanFeb AugSep Exec Council Review Governor's Budget Issued Nov Preliminary Campus Allocations Apr Budget Signed Jun May Budget Advisory Com. Review

7. 2011-2012 CSU Requests

8. 2011-2012 Distribution of Request

9. CSU Support Budget Cycle Jun Statement of Priorities Trustees Approve Budget Legislative Analyst Analysis Legislative Hearings & May Revise Budget Calendar JanFeb AugSep Exec Council Review Governor's Budget Issued Nov Preliminary Campus Allocations Apr Budget Signed Jun May Budget Advisory Com. Review

10. 2011-2012 Dollars Requested June 2011ARC - San Diego 201110

11. This was the CSU Request

12. 2011-2012 Governor’s Budget This is what was proposed in the Governor’s Budget

13. Proposed 2011-2012 Budget equals 2010-2011 less $500M

14. CSU Support Budget Cycle Jun Statement of Priorities Trustees Approve Budget Legislative Analyst Analysis Legislative Hearings & May Revise Budget Calendar JanFeb AugSep Exec Council Review Governor's Budget Issued Nov Preliminary Campus Allocations Apr Budget Signed Jun May Budget Advisory Com. Review

15. May 16, 2011 – Governor Brown’s May Revision of the state budget proposes an additional reduction of $500 million in state funding support for the CSU, bringing the total budget reduction to ……. $1 Billion June 2011ARC - San Diego 201115

16. 16 Narrow Opportunities For Spending in California ARC - San Diego 2011

17. Historical Budget Data June 2011ARC - San Diego 201117

18. $2.25 $2.47 $2.61 $2.68 $2.49 $2.45 $2.62 $2.79 $2.97 $2.87 $2.35 $2.77 $2.29 99-00 -01 -02 -03 -04 -05 -06 -07 -08 -09 -10 -11 -12 Amounts include federal American Recovery and Reinvestment Act (ARRA) funds ($717.5 Million in 08/09 and $106 Million in 10/11) CSU State Allocation In Billions

19. State Allocation and Enrollment $2.97 281,782 321,339 357,223 339,873 $2.25 $2.45 $2.77 $2.29 99-00 -01 -02 -03 -04 -05 -06 -07 -08 -09 -10 -11 -12 Full Time Equivalent Students (FTES)CSU State Allocation (in billions) FTES in 2010-11 is budgeted enrollment rather than actual State share is 80% of the cost State share is 58% of the cost

20. Declining State Support Forces More Reliance on Student Fees (in 2011 Constant Dollars) $0 $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 1998-991999-002005-062007-082009-102010-112011-12 Tuition Fees and Other Fees less Financial Aid State Funds

21. June 2011ARC - San Diego 201121

22. Can we do more with less? June 2011ARC - San Diego 201122

23. Budget Components Average Compensation ◦ Tenure Track ◦ Lecturer ◦ MPP ◦ Staff June 2011ARC - San Diego 201123

24. Budget Components Student Faculty Ratio ◦ Undergraduate Lecturer ◦ Graduate Lecturer ◦ Undergraduate Lab ◦ Graduate Lab June 2011ARC - San Diego 201124

25. Budget Components Lecturer Undergrad FTES Lab Undergrad FTES Lecturer Grad FTES Lab Undergrad FTES June 2011ARC - San Diego 201125

26. Budget Components Tenure/Tenure Track Ratio to Total Lecturer Ratio to Total June 2011ARC - San Diego 201126

27. Budget Components Reimbursed Assigned Time Non-reimbursed Assigned Time June 2011ARC - San Diego 201127

28. Summary Average Compensation Student Faculty Ratio Full Time Equivalent Students (FTES) Tenure/Tenure Track vs Lecturer Ratio Assigned Time Administrative Costs Equipment Professional Development June 2011ARC - San Diego 201128

29. CSU is becoming more efficient

30. Sample Budget June 2011ARC - San Diego 201130

31. What does the future hold? June 201131

32. Campus Founding Timeline 32 1911-13 Fresno & Humboldt 1947-49 Los Angeles, Sacramento & Long Beach 1957-60 Fullerton, East Bay, Stanislaus, Northridge, Sonoma, San Bernardino, & Dominguez Hills 1965 Bakersfield 1938/1966 Pomona 1988 San Marcos 1929/1994 Maritime Academy & Monterey Bay 2002 Channel Islands World War II Y2K Stock Market Crash San Francisco Earthquake June 2011ARC - San Diego 2011

33. June 2011ARC - San Diego 201133 The Master Plan for Higher Education of California 3. Reaffirmation of California's long-time commitment to the principle of tuition-free education to residents of the state. However, the 1960 Master Plan did establish the principle that students should pay fees for auxiliary costs like dormitories and recreational facilities. Because of budgetary reductions, fees have been increased and used for instruction at UC and CSU in recent years, but fee increases have been accompanied by substantial increases in student financial aid.

34. Work Force Percent of California Bachelor’s degrees awarded by CSU in key industries, 2007 June 201134ARC - San Diego 2011

35. CSU Graduates 35 California’s economic drivers are mainly knowledge-based industries that thrive in the state because of the quality of its skilled workforce:  Agriculture, Food & Beverages  Business and Professional Services  Life Sciences and Biomedicine  Engineering, Information Technology, and Technical  Media, Culture and Design  Hospitality and Tourism  Education  Criminal Justice  Social Work  Public Administration June 2011ARC - San Diego 2011

36. Economic Impact  CSU-related expenditures and enhanced earnings of graduates: – Generate $70 billion total annual spending in the state; – Support more than 485,000 jobs; and – Create $4.9 billion in tax revenue for state and local governments  For each $1 invested by the state, CSU generates $5.43 for California’s economy  Enhanced earnings by graduates increases this investment return to $23 for each $1 36June 2011ARC - San Diego 2011

37. Student Profile (Fall 2009)  Total enrollment was 433,000 (FTES = 368,000)  58% Women; 42% Men  20% were first time freshmen  Mean age of undergraduates is 23  92% are commuters  Nearly 1 in 4 have dependents  3 of 4 have jobs, and 18% work 30 hours or more  35% are the first generation in their family to attend college 37June 2011ARC - San Diego 2011

38. Size of the System 38 23 Campuses 21,400 Faculty Students 2.5 Million Degrees Awarded 1,600Degree Programs 240Subject Areas June 2011ARC - San Diego 2011  Quasi-independent state agency  Faculty represented by a union  Policy centralization  23 campuses  $2.7 B General Fund state support in 2010-11 plus $1.6 B in student fees  344,325 FTE students in Fall 2010  21,400 faculty headcount  Emphasis on applied research

39. Chart 5D: Lowest “In-State Tuition” Universities (Universities with at least 15,000 students, #103) 39 Source: Education Trust (2008 Data)

40. Chart 5B: Top 20 in % Pell Recipients Among Freshman (Universities with at least 15,000 students, #103) CSU Fresno CSU Northridge Wayne State University CSU Sacramento UC San Diego CSU Long Beach Southern Illinois University Carbondale Georgia State University UC Davis Cal Poly Pomona University of Akron Main Campus Florida International University The University of Texas – San Antonio CSU Fullerton Northern Illinois University San Francisco State University Kent State University – Kent Campus Rutgers University – New Brunswick San Jose State University Middle Tennessee State University 40 Source: Education Trust (2008 Data)

41. Chart 6A: Comparative Mid-Career Salaries 41 Source: Payscale, 2010-2011

42. My Summary We are an amazing organization We provide an amazing service to the State of California We do amazing things with less and less resources We have amazing employees We will continue to be amazing…..but the state will not fund it The cost to the student will still be a “DEAL” We need to be accountable for outcomes June 2011ARC - San Diego 201142