ABA Management Council
September 15, 2008

– Strategic Goal #1
• Meet Enrollment Targets
– Recruit New Students
– Class Schedule Supports
Enrollment Targets
• Student Retention
• Graduation Rates
– Cross Division Collaboration
– Division Priorities
– Multi-Year Financial Planning
• Position campus for recovery

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Extensive Review of Campus
Financial Information
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Carry-forward Funds
Reserves
Baseline Allocations
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All University Expenses/Central Costs
Long Term Obligations - Loans
Conversations with the
Provost and Vice Presidents
Questions/Conversation with
President and Cabinet

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$4.4 M Campus Carry Forward Gap
$1.9 M Net New fees – Assuming 4%
- $6.3 M Net Reduction - Governor’s Budget
Funding to meet CSU “enrollment growth” and 4% cost increases
10% General Fund reduction ($16.6M)
- $2.0 M Unfunded Costs
- $ .5 M Reduction in Retirement Costs
-$10.3M Projected Structural Deficit

1. Eliminate Structural Gap in 08/09
– Concern for 2009/10 and beyond
2. Use One Time Funds
– Reduce Structural Gap
– Large One-Time Costs
3. Reserves

1. Eliminate Structural Gap in 08/09
– Concern for 2009/10 and beyond
2. Use One Time Funds
– Reduce Structural Gap
– Large One-Time Costs
3. Reserves

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$4.4 M Campus Carry Forward Gap
$4.8 M Net New fees 10% (+ $2.9 M)
- $6.3 M Net Reduction - Governor’s Budget
Funding to meet CSU “enrollment growth” and
4% cost increases
10% General Fund reduction ($16.6M)
$1.3 M Interest Earnings (+ $1.3 M)
$3.0 M Unfunded Costs ( - $1.0 M)
- $ .5 M Reduction in Retirement Costs
- $7.1 M Projected Structural Deficit (+ $3.2M)

• All University Expense $2.2M
– Pay Off Loans
• $1.445M Baseline Savings
– Various All University Cost
Decreases - $.7M
• Research Admin Space
• Sac State Magazine
• Risk Pool Premium

• Baseline Reductions to Divisions - $4.9 Million
– Academic Affairs
– Admin and Business Affairs
– Athletics
– Govt & Civic Affairs
– Info Resources & Tech
– Student Affairs
– Human Resources
– Office of the President
– University Advancement
-3.5% -$3.566 M
-3.5% -$.561 M
-1.0% -$.032 M
-0.0% -$.000 M
-5.0% -$.287 M
-2.0% -$.182 M
-3.0% -$.055 M
-3.5% -$.035 M
-3.5% -$.144 M

1. Eliminate Structural Gap in 08/09
– Concern for 2009/10 and beyond
• Use One Time Funds
– Reduce Structural Gap
– Large One-Time Costs
1. Reserves

• 2006/07 Central Carry Forward
– $3.1M AUE/Mandatory Costs
– $1.8M Interest Earnings
• 2007/08 Central Projected Surpluses
– $1.9M Benefits Pool
– $1.8M All University Expenses
• Insurance, Utilities, Space Rental, etc.

• Pay Off Loans – $4.3 Million
• 2 CMS Loans $3.356 Million
• Benicia Hall
• Energy Bond
• Electrical Sub
$ .350 Million
$ .515 Million
$ .120 Million
– Baseline Savings $1.445 Million
• Old Bookstore Remodel - $3.5 Million
• One-Time Funding Requests - $.5 Million

1. Eliminate Structural Gap in 08/09
– Concern for 2009/10 and beyond
2. Use One Time Funds
– Reduce Structural Gap
– Large One-Time Costs
3. Reserves

• Reserves
– $3.75M - Emergency/Disaster Reserve
• This is NOT an operating reserve!
– $0.25M - Liability Claim Reserve (1 claim)
• Should be at least $.5M (2 claims)
– $1.80M Operating Reserve (< 1%)
• Cushions
– $0.75M – Revenue offset (enrollment)
– $0.46M – Held for Final Adjustments

• If the State Budget is passed at the
January 2008 level (additional $97.6M reduction at CSU level)
– Sac State’s reduction will be ~ -$5.7M
• Our campus has one-time funds to absorb reductions
• Structural deficit will be carry forward into next fiscal year

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Surprises
Future State or CSU Cuts – 2009/10 and beyond
– State Structural Gap – expect multi-year
– Unfunded Mandates
Divisions’
• Ongoing in 08/9 State Budget
Structural gap renewal costs
– Equipment, computing, telecom, voice mail, vehicles, furniture, etc.
– 60 year old campus – Deferred Maintenance
• mechanical/ electrical
• heating/cooling,
• water/sewer,
• painting, carpet, flooring, etc.