California State University, Sacramento
Faculty Senate
February 14, 2008
Budget Update
State Budget (Slides 2 – 8)
2007-08 and 2008-09
CSU Budget (Slides 9 – 15)
CSUS Budget (Slides 16 – 22)
1
Source
California State Budget
2008-09 CSU Budget
Patrick J Lenz, AVC, Budget
Allison G. Jones, AVC, Academic Affairs
January 22 & 23, 2008
Board of Trustees
Approved 2007-08 State Budget
Last Summer
State General Fund
Special Funds
Bond Funds
TOTAL SPENDING
(Included reserve of $4.1 billion)
Billion
$102.3
$29.2
$14.2
$145.7
3
What Happened?
Billion
$4.1
($9.8)
($14.0)
($14.5)
Budget Reserve - 2007-08 Budget Plan
November - LAO Outlook Report
December - DOF Projections
January - Governor's 2008-09 Budget
2007-08 State Agency Cuts
10%
4
Governor’s Proposed Current Year
Reductions
Prop. 58 - Special Session called
Mid-year (2007-08) Reductions
Proposition 98 (K-14)
MedCal Cuts
CalWORKS Reforms
SSI/SSP COLA
Prisoner Release
State Agency Cuts
TOTAL
$400
$198
$74
$23
$18
$104
$817
SSI: Supplemental Security Income
SSP: Supplemental Payment Program
(65+, Blind & Disabled, limited income)
5
Governor’s Proposed January 10th Budget
General Fund
Special Funds
Bond Funds
TOTAL SPENDING
Included reserve:
2007-08
Billion
$102.3
$29.2
$14.2
$145.7
2008-09
Billion
$101.0
$26.2
$13.9
$141.1
$4.1
$2.8
6
Governor’s Budget Balancing Reductions
2008-09 Proposed Reductions
Deficit-financing bonds
Deficit-Bonds prepayment
Accruing 2009-10 tax revenues
Reducing Prop. 98 (K-14)
State Agencies and Programs
TOTAL
Billion
$3.3
$1.5
$2.0
$4.4
$4.0
$15.2
7
Budget Events
Jan 10th
State
 Governor’s proposed budget
Feb 20th
 LAO releases review of proposed budget with
recommendations
Mar/Apr
 Budget subcommittee hearings
May
 LAO releases May Revision of next year’s
revenue projections
June 30th
 Constitutional deadline for legislative approval
of next year’s budget
8
Budget Process
Nov – Dec
 Trustees adopt Budget proposal
 Enrollment targets set
Jan
 System wide response to Governor’s budget
June
 “May revise” budget updates provided
Week following approval of state budget
 Campus budget allocations provided
9
2008-09 CSU Budget
General Fund
2007-08 Base Budget
Compact Priorities
TOTAL
$2,977,296,000
$213,576,000
$3,190,872,000
($312,900,000)
$2,877,972,000
TOTAL
$1,376,853,000
$144,224,000 *
$1,521,077,000
Subtotal
Reduction
Fee Revenue
2007-08 Base Budget
2.5% Enrollment Growth
2008-09 Base Budget
$4,399,049,000
* 2.5% Enrollment Growth Revenue
10% Fee Increase
General Fund $73.2
SUG $36.5
$34.5
$109.7
$144.2 *
10
Requested but Not Funded!
2008-09 Above Compact Funding Request
Additional 1% Enrollment Growth
Clinical Nursing Support
Teacher Performance Assessment (TPA)
Student Services for Success and Authentic Access
1% Compensation
Applied Research
1st year funds to increase ratio of Tenured Faculty
TOTAL
$27.5
$7.8
$10.0
$24.6
$30.4
$12.0
$42.9
$155.2
11
2008-09 CSU Budget
Revenue Assumptions


General Operations (4%)
Enrollment Growth (2.5%)
CSU Trustees
$117.0 Million
$68.8 Million
(8,572 FTES, 11,100 students)





Academic Infrastructure (1%)
Revenue Augmentation
General Fund
Enrollment Growth Revenue
Total Funding
$29.2 Million
$73.2 Million
$288.2 Million
$34.5 Million
$322.7 Million
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2008-09 CSU Budget
Expenditure Assumptions





Mandatory Costs
Enrollment Growth (2.5%)
Compensation
Financial Aid
Long Term Need
Total Funding
$36.0 Million
$82.5 Million
$154.3 Million
$6.9 Million
$43.0 Million
$322.7 Million
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Enrollment Growth (2.5%)
Above Enrollment Growth (1.0%)
$27.5M
Additonal Enrollment
Target Delta
Target Enrollment
$77M
3,429
1%
2.5%
8,572
10,000
$45M
6,196
351,465
$16M
2,565
342,893
342,893
334,198
325,545
2005-06
2006-07
2007-08
2008-09
2008-09
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Lobbying:
Key Messages
 The proposed budget will not allow the CSU to serve
all qualified students, reducing access to college.
 Long term prospects of increasing college going rates
of underserved communities will be negatively
impacted just as we were making progress.
 Less access to the CSU will impact industries and the
state’s economy given our role in preparing the state’s
workforce.
State Reduction ($312.9)
Fee Buy Out
($73.2)
CSU Budget Restoration ($386.1)
15
CSUS Budget Planning Timeline
 Jan
UBAC receives information on Governor’s budget and
projected enrollments.
Budget Call: UBAC reviews and recommends to
President.
 Feb – Mar
Divisions prepare response to Budget Call.
 April
UBAC meets with Division heads and reviews
responses.
 May
UBAC makes preliminary budget recommendations.
 August
UBAC makes final recommendations to President.
16
Current Year Budget Allocations (Sept. 2007)
2006-07
DIVISIONS
Baseline
Academic Affairs
$99,772,357
Administration & Business Affairs
$15,953,886
Student Affairs
$8,608,669
Information Resources & Technology
$5,146,732
University Advancement
$4,214,661
Athletics
$3,158,022
Human Resources
$1,761,313
President's Office
$1,015,549
Governmental & Civic Affairs
$165,359
SUBTOTAL $139,796,548
2007-08
Baseline
Before
$104,018,899
$16,318,035
$8,959,135
$5,862,416
$4,327,317
$3,243,084
$1,863,865
$1,047,469
$172,235
$145,812,455
2007-28
Permanent
2007-08
Reductions Baseline After
($2,127,397) $101,891,502
($283,823)
$16,034,212
($132,197)
$8,826,938
($121,188)
$5,741,228
($215,681)
$4,111,636
($67,476)
$3,175,608
($38,688)
$1,825,177
($52,290)
$995,179
($3,636)
$168,599
($3,042,376) $142,770,079
RESTRICTED or MANDATORY COSTS
Mandatory Benefit Costs
All University Expenses
Student Grants
Compensation
Center for California Studies
Reserve
SUBTOTAL
$46,771,757
$18,214,686
$16,395,950
$6,399,048
$3,081,000
$2,597,614
$93,460,055
$49,970,955
$20,246,081
$18,042,250
$9,785,899
$3,201,000
$2,597,614
$103,843,799
$49,970,955
$20,246,081
$18,042,250
$9,785,899
$3,201,000
$2,597,614
$103,843,799
$233,256,603
$249,656,254
TOTAL
($3,042,376)
$246,613,878
%
Change
-2%
-2%
-1%
-2%
-5%
-2%
-2%
-5%
-2%
-2.09%
-1.22%
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2007-08 Deficit of ($7,447,769)
Baseline Cuts of ($3,042,376)
TOTAL EXPENDITURE
$246,613,878
General Fund
Fees
Work Study / Financial Aid
TOTAL REVENUE
$165,543,608
$77,786,986
($1,122,109)
$242,208,485
Deficit covered by one-time funds
($4,405,393)
18
Campus Outlook
Projected deficit for 2008-09: $10 million.
 Projected $4.5 million structural “gap” for
2008-09.
 Projected $5.5 million General Fund
reduction.
 Projected $2 million in unfunded cost
increases.
 Add $2 million in fees
(assumes 4% fee increase).
19
2008-09 Budget Call Summary
 Identify 2007-08 baseline reductions.
 Estimate carry forward funds.
 Identify other funds available to meet operating costs:
– 2007-08 and 2008-09
 Identify two year plan for budget reductions of 7%
– Baseline and one-time reductions totaling 7% in 2008-09.
– Total baseline reduction of 7% in 2009-10.
 Identify one-time expenditures ($50,000 or more)
anticipated in next 3 years and funding sources.
 Complete 2008-09 All University Expense request forms.
http://www.csus.edu/aba/budget/ubac/OP_BUDGET_Call_Documents.pdf
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First year of $10 Million Cut
DIVISIONS
Academic Affairs
Administration & Business Affairs
Student Affairs
Information Resources & Technology
University Advancement
Athletics
Human Resources
President's Office
Governmental & Civic Affairs
SUBTOTAL
RESTRICTED or MANDATORY COSTS
Mandatory Benefit Costs
All University Expenses
Student Grants
Compensation
Center for California Studies
Reserve
SUBTOTAL
2008-09
Baseline
Reduction
$101,891,502
-7%
$16,034,212
-7%
$8,826,938
-7%
$5,741,228
-7%
$4,111,636
-7%
$3,175,608
-7%
$1,825,177
-7%
$995,179
-7%
$168,599
-7%
$142,770,079
-7%
$49,970,955
$20,246,081
$18,042,250
$9,785,899
$3,201,000
$2,597,614
$103,843,799
Baseline OR
Baseline &
One-time
Funds
(7,132,405)
(1,122,395)
(617,886)
(401,886)
(287,815)
(222,293)
(127,762)
(69,663)
(11,802)
(9,993,906)
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Questions?
CSU Statewide Senators:
 Bob Buckley
 Tom Krabacher
 Chris Miller
University Budget Committee:
 Fred Baldini
 Bob Buckley
 Scott Farrand
 Laureen O’Hanlon
 James Sobredo
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