1. Budget Presentation California State University, Los Angeles 5151 State University Drive | Los Angeles, CA 90032 http://www.calstatela.edu/ Lynn Mahoney, Provost and Vice President for Academic Affairs Lisa Chavez, Vice President for Administration and CFO 1 Academic Senate November 03, 2015

2. What we will talk about: CSU Budget Process University Budget Process Budget Redesign Academic Affairs Budget 2

3. CSU Systemwide Process June CSU Constituent Consultations July Executive Council Policy Retreat July – September Review enrollment targets, consultation with presidents System Budget Advisory Committee discussion of budget proposals Budget briefing for the Board of Trustees October-November Constituent Consultations Trustees adopt Support Budget Request December-January Review CSU enrollment targets and revenue assumptions January Governor’s Budget submitted to Legislature February Legislative Analyst’s Analysis of Budget March-May More CSU Constituent consultations, Legislative budget hearings, Governor’s May Revision of January Budget June Budget Adopted 3

4. CSU Systemwide Process June CSU Constituent Consultations July Executive Council Policy Retreat July – September Review enrollment targets, consultation with presidents System Budget Advisory Committee discussion of budget proposals Budget briefing for the Board of Trustees October-November Constituent Consultations Trustees adopt Support Budget Request December-January Review CSU enrollment targets and revenue assumptions January Governor’s Budget submitted to Legislature February Legislative Analyst’s Analysis of Budget March-May More CSU Constituent consultations, Legislative budget hearings, Governor’s May Revision of January Budget June Budget Adopted 4 Insert CAL STATE LA August Cal State LA submits annual budget submission August Cal State LA submits annual budget submission July Campus is given final budget allocation from Chancellor’s Office July Campus is given final budget allocation from Chancellor’s Office May After Governor provides revised budget Cal State LA revises budget assumptions if necessary and reconvenes RAAC. May After Governor provides revised budget Cal State LA revises budget assumptions if necessary and reconvenes RAAC. February-March Cal State LA begins projections based on January Budget and assumptions. If assumptions are solid the Resource Allocation Advisory Committee convenes (RAAC) February-March Cal State LA begins projections based on January Budget and assumptions. If assumptions are solid the Resource Allocation Advisory Committee convenes (RAAC)

5. University General Fund Budget FY 2015-16 5

6. 6 Campus General Fund Distribution 2015-16 $252,990,411

7. 7 Campus General Fund Distribution 2015-16 $47,135,969 18.6%

8. 8 Campus General Fund Distribution 2015-16 $56,179,599 22.2%

9. 9 Campus General Fund Distribution 2015-16 $7,876,886 3%

10. 10 Campus General Fund Distribution 2015-16 $4,427,094 1.7%

11. Campus General Fund Distribution 2015-16 $252,990,411 $3,896,114 1.5% $2,410,577 1% $131,064,172 52%

12. 2015-16 General Fund Allocation Net of Restricted Funds 12 65.85% $86,302,658 7.54% $9,881,485 7.19% $9,429,244 13.46% $17,644,109 2.61% $3,416,043

13. Cal State LA Budgeted Funds: Operating/General Fund Lottery Fund Instructionally Related Activities (IRA) Student Success Fees Health Services Fee Athletics Fee Graduate Professional Fees Education Doc Fee Housing Parking University Student Union ASI Fees Professional and Global Education Fees/CERF University Auxiliary Services CSULA Foundation 13

14. Current Budget Model Incremental Plus Fully-fund Base Operations Mandatory Cost Campus Priorities Divisional Allocations are a Percentage of Base Budget 14

15. 2015-16 General Fund Allocation 15

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17. Presidential Vision and University Initiative Planning, Research, and Evaluation Developed New Cal State L.A. Budget Model Campus Engagement and Communication Budget Model Redesign 17

18. Sept. 2013 Presidential/Campus Initiative Budget Model Redesign Dec. 2013 Planning, Research, and Evaluation of Requirements for Budget Model/White Paper Feb. – Jun. 2014 Assessment of Base Expenditure Need Develop the ZBB Template Training Sessions on ZBB Analysis of ZBB Submissions Jul. 2014 ZBB Meetings with University Divisions VP, College Deans, and Fiscal Managers Nov. 2014 Budget Allocation Task Force Convened Jan. 2015 Budget Allocation Task Force Reconvened May. 2015 – Jan. 2016 Design Framework of New Budget Model Development of Key Performance Data Analytics Update Campus Administrative Procedures Fall 2016 Implementation Three-Year Implementation Timeline Conception to Implementation Planning Development Implementation Jan. 2014 Formed Budget Allocation Task Force 11 Months 16 Months 9 Months Total Model Transition: 36 Months Start Finish www.calstatela.edu/admfin/resource-allocation-model-review Aug. 2015 Vetting and Feedback from Campus Constituents University-wide Email Communication Oct.– Nov. 2015 Communication of New Budget Model University-wide Budget Townhall Post Implementation Review Fine Tuning 18

19. Budget Models in Higher Education HIGHER EDUCATION BUDGET MODELS Incremental Responsibility Center Management (RCM) Activity- Based Budgeting (ABB) HybridCentralized Performance- Based Budgeting (PBB) Zero Based Budget (ZBB) 19

20. Budget Guiding Principles 20 VPs and Deans will be accountable for performance and accountable to the general public. A. Accountability Inclusive. Simple to understand. Easily communicated. T. Transparent Equitable allocations consistent with University strategic initiatives. E. Equitable Adaptable to changing needs. Divisions and colleges have flexibility to best manage their budgets. A. Adaptability Mission sensitive and incorporates campus strategic initiatives into the planning. M. Mission Sensitive

21. New Cal State LA Blended Budget Model Essential Operations Maintains base support for on-going commitments critical for University operations. Mission Critical Funding Funds will be set-aside in support of strategic initiatives and investments required for a world class university. Performance Assessment Annual performance reporting of division operations will be conducted. Note: The Budget Allocation Model Taskforce welcomes your comments and feedback to the budget redesign initiative. Since the redesign is in the development phase, the information presented is for reference only and is subject to change. 21

22. Budget Redesign Webpage 22

23. Academic Affairs: Sources of Revenue General Fund Self-support programs: Summer Session Lottery Student Fees Philanthropy Grants & Contracts 23

24. General Fund 2012-132013-142014-152015-16 Base Allocation $68.7 M$72.9 M$76.3 M$86.2 M Excess Enrollment 0$4.7 M$7.7 MPending 24

25. Summer Session, Lottery, Student Fees 2012-132013-142014-152015-16 Summer Session 0$1.8 M$2.3 MPending Lottery $2.4 M$2.1 M$1.4 M$1.5 M Student Fees $1.0 M$3.9 M$3.7 M$4.3 M 25

26. Strategic Investments New Tenure Track Faculty Support for Research & Creative Activities Student Success and Achievement One-time investments –The University Library –Unit and department improvements –Grant Proposal Development –Student Services Support 26

27. Investing in our Colleges Carry Forward Summer Session Excess Enrollment Retirement and Resignation Savings Staff positions 27

28. College General Fund Allocations College2012-132013-142014-152015-16 A&L $12.5 M$12.7 M$14.5 M$15.9 M CBE $8.8 M $9.0 M$9.6 M CCOE $7.1 M $7.3 M$7.7 M ECST $5.4 M$6.1 M$6.3 M$7.4 M HHS $10.8 M $11.0 M$11.7 M NSS $16.1 M$17.8 M$18.2 M$20.1 M LIB $3.6 M $3.7 M Academic Affairs $4.4 M$6.0 M$6.3 M$7.4 M* 28 * Additional 2.0 M has been set aside for faculty hires and $640K for Strategic Planning.

29. College Excess Revenue Allocations College2012-132013-142014-152015-16 A&L 0$410 K$771 KTBD CBE 0$176 K$655 KTBD CCOE 0$71 K$392 KTBD ECST 0$552 K$1.5 MTBD HHS 0$145 K$422 KTBD NSS 0$1.2 M$2.4 MTBD Academic Affairs 0$2.1 M$1.6 MTBD 29

30. Lottery and Student Fees College2012-132013-142014-152015-16 A&L $569 K$758 K$696 K$763 K CBE $86 K$412 K$369 K$398 K CCOE $134 K$201 K$88 K$112 K ECST $246 K$441 K$414 K$487 K HHS $260 K$638 K$509 K$788 K NSS $382 K$535 K$520 K$554 K LIB $860 K$412 K$444 K$455 K Academic Affairs $872 K$2.6 M$2.1 M$2.3 M 30

31. Summer Session Revenues College2012-132013-142014-152015-16 A&L 0$93 K$219 KPending CBE 0$494 K$642 KPending CCOE 000Pending ECST 0$14 K$71 KPending HHS 0$265 K$398 KPending NSS 0$902 K$977 KPending 31

32. 2015-2016 New General Fund Allocation Strategic Investments Funding New TT Faculty $3.1 M Faculty Equity and Promotions $796 K Instruction and Enrollment $913 K Research & Creative Activities $188 K Student Success and Achievement $903 K Strategic Planning Initiatives $707 K Resource Planning and Management $155 K 32

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34. Looking Ahead Strategic Planning Process Maximizing our instructional dollars Self-Support Programs and DTLA Improved processes for Lottery, IRA and Student Success Fee funding Grants & Contracts Philanthropy 34

35. Questions? 35