1. Budgets in the CSU CSU 101 March 8-11, 2009 Monterey Shawn Bibb, Vice President Administration and Finance Cal State East Bay

2. Overview  Some Recent History  Review the Compact between Governor and CSU  Budget Calendar or Annual Budget Cycle  Overview CSU Budgets from the perspective of –State of California –Chancellor’s Office –Campus  Recent Changes effecting CSU Campus Budgets –CSU General Fund –Enterprise Funds –Other March 20092Bibb

3. CSU Budget Adjustments, Fiscal Years 2002 - 2005 March 20093Bibb

4. Sample Campus March 20094Bibb

5. Higher Education Compact  Long-term planning and fiscal stability to the CSU budget in light of state budget uncertainties  Predictable, moderate, and affordable increases in student fees and allocation of financial aid  Commitment to restore enrollment funding and offer students “authentic access”  Budget support that is consistent with funding levels provided to competing state priorities March 20095Bibb

6. The Partnership  Governor’s partnership with the CSU –Commits to 4 % baseline funding in return for educational outcomes  CSU Commitment –Ensuring Access –Maintaining Quality –Improve Academic Development –Contribute to California Economy March 20096Bibb

7. Components of the Higher Education Compact Components of the Higher Education Compact  Covers six years – 2005/06 through 2010/11  Adjustments to the base budget:  3% annual increase for 2005/06 – 2006/07  4% annual increase for 2007/08 – 2010/11  An additional 1% annual increase to the base budget for 2008/09 – 2010/11 for core academic needs  State will cover other basic adjustments such as annuitant dental benefits, retirement contributions and debt service  Identifies importance of restoring more competitive salaries for faculty and staff March 20097Bibb

8. Governor’s Budget – Sources March 20098Bibb

9. Governor’s Budget - Uses March 20099Bibb

10. Governor’s Budget – Uses (in millions) March 200910Bibb

11. March 200911Bibb Break down of Higher Ed – Governor’s Budget

12. FTES – Governor’s Budget March 200912Bibb

13. Compact Summary Current Planning Basis March 200913Bibb

14. Review the compact agreement for 2007-2008  4% increase over the prior year –$108.7M  2.5% enrollment funding for resident students –$65.5M –8,355 FTES –Funded based on Marginal Cost Formula  10% fee increase –$97.8M March 200914Bibb

15. Let’s do the math March 200915Bibb

16. 2007-2008 Marginal Cost Used in Governor’s Budget March 200916Bibb

17. Simple Version Simple calculation for state support March 200917Bibb

18. Simple Version Not so simple for campus…. March 200918Bibb

19. Common misunderstanding by campus  State support = X  Campus ACTUAL projected fee revenue = Y  Campus estimates they will receive X + Y  WRONG!!!  State Support = X  Marginal Cost Estimated Fee Revenue = Z  Campus will receive X + Z March 200919Bibb

20. Marginal Cost March 200920Bibb

21. Enrollment Funding  Marginal Cost Formula –Based on expenditure data from the prior year for specific components expressed as an average of total CSU FTES  Faculty Salary and Benefits –Average New Hire – Assistant Professor level –Student Faculty Ratio 18.9:1  Teaching Associates –Average 10-month Salary w/benefits  Instructional Equipment  Instructional Support  Academic Support  Student Services  Institutional Support  Operations and Maintenance of Plant –Currently being “re-worked” March 200921Bibb

22. 2008-09 CSU Budget (Compact) Compact Revenue Assumptions  General Operations (4%)$117 Million  Enrollment Growth (2.5%)$67.5 Million  Academic Infrastructure (1%)$29.2 Million  Revenue Augmentation$73.2 Million  Compact (General Fund)$286.9 Million  Enrollment Growth Revenue$34.5 Million  Total Compact Funding$321.4 Million March 200922Bibb

23. 2008-09 CSU Budget (Compact) Expenditure Assumptions  Mandatory Costs$34.3 Million  Enrollment Growth (2.5%)$81.8 Million (8,572 FTES, 11,000 students)  Compensation $155.2 Million  Financial Aid$7.1 Million  Long Term Need$43 Million  Total Compact Funding$321.4 Million March 200923Bibb

24. CSU Enrollment Demand Est. ($16M) ($45M) ($62M) March 200924Bibb

25. 2008-09 CSU Budget (Compact) Request Revenue Assumptions  General Operations (4%)$117.0 Million  Enrollment Growth (3.5%)$94.5 Million (12,001 FTES, 15,600 students)  Academic Infrastructure (1%)$29.2 Million  Revenue Augmentation$73.8 Million  Compact (General Fund)$314.5 Million  Enrollment Growth Revenue$45.9 Million  Total Compact Funding$360.4 Million March 200925Bibb

26. 2008-09 CSU Budget Assumptions (Compact)  Mandatory Costs$34.3 Million  Enrollment Growth (3.5%)$114.5 Million  Compensation $158.7 Million  Financial Aid$9.9 Million  Long Term Need$43 Million  Total Compact Funding$360.4 Million March 200926Bibb

27. CSU Student Fees March 200927Bibb

28. Student Fees, Comparison Institutions Data is not yet available for 2007/08 at Comparison Institutions. 2006/07 CSU Increase reflects increases in average campus mandatory fees. Comparison Average does not include CSU March 200928Bibb

29. Comparison Institutions, Cost of Attendance $27,199 $25,254 $21,208 $20,380 $20,009 $19,998 $19,900 $19,752 $19,307 $18,544 $18,404 $18,050 $16,778 $16,361 $15,548 Rutgers, Newark U of Maryland, Baltimore U of W, Milwaukee Cleveland State U of Colorado, Denver UConn, Storrs U of Nevada, Reno Comparison Average Illinois State Georgia State, Atlanta George Mason SUNY, Albany CSU LA Region U of T, Arlington ASU, Tempe NC State *No Data was available for Wayne State University March 200929Bibb

30. Comparison Institutions, Operating Expenses State SupportFee Revenue, Other Income March 200930Bibb

31. 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 March 200931Bibb

32. Trustees Budget Request March 200932Bibb

33. Whose Source & Whose Use? March 200933Bibb

34. Trustees Request March 200934Bibb

35. Trustees Request March 200935Bibb

36. Marginal Cost March 200936Bibb

37. Enterprise Budgets  Other CSU Funds – Campus specific budget process –Housing –Parking –Continuing Education –Instructionally Related Activities –Lottery –Misc Trust March 200937Bibb

38. Annual Budget Submission  Campus submit their annual Budget to the Chancellor’s Office electronically –Submitted to the FIRMS data base at the SCO  Due around the middle of August each year  The current year budget submission becomes the base for the future year budget request March 200938Bibb