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Budgets in the CSU
CSU 101March 8-11, 2009
Monterey
Shawn Bibb, Vice President Administration and Finance
Cal State East Bay
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 2009 2Bibb
CSU Budget Adjustments, Fiscal Years 2002 - 2005
2002/03 2003/04 2004/05 3 Year Total
General FundsBudget Reduction
(102.60) (373.70) (178.10) (654.40)
Fee Revenue Offset 20.00 167.00 101.50 288.50
Unfunded Mandatory Cost (22.80) (78.60) (57.50) (158.90)
Net Fiscal Impact (105.40) (285.30) (134.10) (524.80)
Retirement Costs 68.10 155.10 44.40 267.60
March 2009 3Bibb
Sample Campus
March 2009 4Bibb
Higher Education Higher Education CompactCompact
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 2009 5Bibb
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 2009 6Bibb
Components of the Higher Components of the Higher
Education Compact 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 2009 7Bibb
Governor’s Budget – Sources
March 2009 8Bibb
Governor’s Budget - Uses
March 2009 9Bibb
Governor’s Budget – Uses (in millions)
March 2009 10Bibb
March 2009 11Bibb
Break down of Higher Ed – Governor’s Budget
FTES – Governor’s Budget
March 2009 12Bibb
Compact Summary
Current Planning Basis
March 2009 13Bibb
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 2009 14Bibb
Let’s do the math
March 2009 15Bibb
2007-2008 Marginal Cost Used in Governor’s Budget
March 2009 16Bibb
Simple Version
Simple calculation for state support
March 2009 17Bibb
Simple Version
Not so simple for campus….
March 2009 18Bibb
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 2009 19Bibb
Marginal Cost
March 2009 20Bibb
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 2009 21Bibb
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 2009 22Bibb
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 2009 23Bibb
CSU Enrollment Demand
325,545
334,198
342,8932,565
6,196
8,000
310,000
315,000
320,000
325,000
330,000
335,000
340,000
345,000
350,000
355,000
2005-06 2006-07 2007-08
Fiscal Year
FT
ES
Target Enrollment Over Target
Est.
($16M)
($45M)
($62M)
March 2009 24Bibb
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 2009 25Bibb
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 2009 26Bibb
CSU Student Fees
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
College Year
Wh
ole
Do
llars
Actual UG SUF 10% Incremental Increase March 2009 27Bibb
Student Fees, Comparison Institutions
Rutgers
UConn, Storrs
U of Maryland, Baltimore
Illinois State U
Cleveland State U
Wayne State U
SUNY at Albany
U of Wisconsin at Milwaukee
Comparison Average
George Mason
U of Texas at Arlington
U of Colorado at Denver
Georgia State U at Atlanta
NC State
ASU at Tempe
U of Nevada at Reno
CSU (Average) 2005/06 Fee Level
2006/07 Increase
2007/08 Increase
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 2009 28Bibb
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
$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 2009 29Bibb
Comparison Institutions, Operating ExpensesState Support Fee Revenue, Other Income
March 2009 30Bibb
CSU Support Budget Cycle
Jun
Statement of Priorities
•
Trustees Approve Budget
Legislative Analyst Analysis
Legislative Hearings & May Revise
Budget Calendar Jan FebAug Sep
Exec Council Review • •
Governor's Budget Issued
•
Nov
••
Preliminary Campus Allocations
••
Apr
•Budget Signed •
Jun
• •May
•
Budget Advisory Com. Review •
March 2009 31Bibb
Trustees Budget Request
March 2009 32Bibb
Whose Source & Whose Use?
March 2009 33Bibb
Trustees Request
March 2009 34Bibb
Trustees Request
March 2009 35Bibb
Marginal Cost
March 2009 36Bibb
Enterprise Budgets
Other CSU Funds – Campus specific budget process
– Housing
– Parking
– Continuing Education
– Instructionally Related Activities
– Lottery
– Misc Trust
March 2009 37Bibb
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 2009 38Bibb