1 february 14, 2008 budget update state budget (slides 2 – 8) 2007-08 and 2008-09 csu budget...
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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)
California State University, Sacramento
Faculty Senate
California State Budget 2008-09 CSU BudgetPatrick J Lenz, AVC, Budget
Allison G. Jones, AVC, Academic Affairs
January 22 & 23, 2008Board of Trustees
Source
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Approved 2007-08 State BudgetLast Summer
BillionState General Fund $102.3Special Funds $29.2Bond Funds $14.2
TOTAL SPENDING $145.7(Included reserve of $4.1 billion)
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What Happened?
BillionBudget Reserve - 2007-08 Budget Plan $4.1November - LAO Outlook Report ($9.8)December - DOF Projections ($14.0)January - Governor's 2008-09 Budget ($14.5)
2007-08 State Agency Cuts 10%
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Governor’s Proposed Current Year Reductions
Prop. 58 - Special Session called
Mid-year (2007-08) ReductionsProposition 98 (K-14) $400MedCal Cuts $198CalWORKS Reforms $74SSI/SSP COLA $23Prisoner Release $18State Agency Cuts $104
TOTAL $817
SSI: Supplemental Security Income
SSP: Supplemental Payment Program
(65+, Blind & Disabled, limited income)
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Governor’s Proposed January 10th Budget
2007-08 2008-09Billion Billion
General Fund $102.3 $101.0Special Funds $29.2 $26.2Bond Funds $14.2 $13.9
TOTAL SPENDING $145.7 $141.1
Included reserve: $4.1 $2.8
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Governor’s Budget Balancing Reductions
2008-09 Proposed Reductions BillionDeficit-financing bonds $3.3Deficit-Bonds prepayment $1.5Accruing 2009-10 tax revenues $2.0Reducing Prop. 98 (K-14) $4.4State Agencies and Programs $4.0
TOTAL $15.2
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Budget Events
StateJan 10th
Governor’s proposed budgetFeb 20th
LAO releases review of proposed budget with recommendationsMar/Apr
Budget subcommittee hearingsMay
LAO releases May Revision of next year’s revenue projectionsJune 30th
Constitutional deadline for legislative approval of next year’s budget
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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
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2008-09 CSU Budget
General Fund2007-08 Base Budget $2,977,296,000Compact Priorities $213,576,000
Subtotal $3,190,872,000Reduction ($312,900,000)
TOTAL $2,877,972,000Fee Revenue
2007-08 Base Budget $1,376,853,0002.5% Enrollment Growth $144,224,000 *
TOTAL $1,521,077,000
2008-09 Base Budget $4,399,049,000
* 2.5% Enrollment Growth Revenue $34.510% Fee Increase $109.7
General Fund $73.2SUG $36.5
$144.2 *
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Requested but Not Funded!
2008-09 Above Compact Funding Request
Additional 1% Enrollment Growth $27.5Clinical Nursing Support $7.8Teacher Performance Assessment (TPA) $10.0Student Services for Success and Authentic Access $24.61% Compensation $30.4Applied Research $12.01st year funds to increase ratio of Tenured Faculty $42.9
TOTAL $155.2
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2008-09 CSU Budget
Revenue Assumptions CSU Trustees
General Operations (4%) $117.0 Million Enrollment Growth (2.5%) $68.8 Million
(8,572 FTES, 11,100 students)
Academic Infrastructure (1%) $29.2 Million Revenue Augmentation $73.2 Million General Fund $288.2 Million Enrollment Growth Revenue $34.5 Million Total Funding $322.7 Million
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2008-09 CSU Budget
Expenditure Assumptions Mandatory Costs $36.0 Million Enrollment Growth (2.5%) $82.5 Million Compensation $154.3 Million Financial Aid $6.9 Million Long Term Need $43.0 Million
Total Funding $322.7 Million
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Enrollment Growth (2.5%)Above Enrollment Growth (1.0%)
325,545
334,198
342,893
351,465
342,8932,565
6,196
10,000
3,429
2005-06 2006-07 2007-08 2008-09 2008-09
Additonal Enrollment
Target Delta
Target Enrollment
$16M
$77M
$45M
$27.5M
2.5%8,572
1%
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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)
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CSUS Budget Planning Timeline Jan
UBAC receives information on Governor’s budget and projected enrollments.Budget Call: UBAC reviews and recommends to President.
Feb – MarDivisions prepare response to Budget Call.
AprilUBAC meets with Division heads and reviews responses.
MayUBAC makes preliminary budget recommendations.
AugustUBAC makes final recommendations to President.
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Current Year Budget Allocations (Sept. 2007)
DIVISIONS2006-07 Baseline
2007-08 Baseline Before
2007-28 Permanent Reductions
2007-08 Baseline After
% Change
Academic Affairs $99,772,357 $104,018,899 ($2,127,397) $101,891,502 -2%Administration & Business Affairs $15,953,886 $16,318,035 ($283,823) $16,034,212 -2%Student Affairs $8,608,669 $8,959,135 ($132,197) $8,826,938 -1%Information Resources & Technology $5,146,732 $5,862,416 ($121,188) $5,741,228 -2%University Advancement $4,214,661 $4,327,317 ($215,681) $4,111,636 -5%Athletics $3,158,022 $3,243,084 ($67,476) $3,175,608 -2%Human Resources $1,761,313 $1,863,865 ($38,688) $1,825,177 -2%President's Office $1,015,549 $1,047,469 ($52,290) $995,179 -5%Governmental & Civic Affairs $165,359 $172,235 ($3,636) $168,599 -2%
SUBTOTAL $139,796,548 $145,812,455 ($3,042,376) $142,770,079 -2.09%
RESTRICTED or MANDATORY COSTSMandatory Benefit Costs $46,771,757 $49,970,955 $49,970,955All University Expenses $18,214,686 $20,246,081 $20,246,081Student Grants $16,395,950 $18,042,250 $18,042,250Compensation $6,399,048 $9,785,899 $9,785,899Center for California Studies $3,081,000 $3,201,000 $3,201,000Reserve $2,597,614 $2,597,614 $2,597,614
SUBTOTAL $93,460,055 $103,843,799 $103,843,799
TOTAL $233,256,603 $249,656,254 ($3,042,376) $246,613,878 -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 $165,543,608Fees $77,786,986Work Study / Financial Aid ($1,122,109)TOTAL REVENUE $242,208,485
Deficit covered by one-time funds ($4,405,393)
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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).
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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
DIVISIONS2008-09 Baseline Reduction
Baseline OR Baseline & One-time
FundsAcademic Affairs $101,891,502 -7% (7,132,405)Administration & Business Affairs $16,034,212 -7% (1,122,395)Student Affairs $8,826,938 -7% (617,886)Information Resources & Technology $5,741,228 -7% (401,886)University Advancement $4,111,636 -7% (287,815)Athletics $3,175,608 -7% (222,293)Human Resources $1,825,177 -7% (127,762)President's Office $995,179 -7% (69,663)Governmental & Civic Affairs $168,599 -7% (11,802)
SUBTOTAL $142,770,079 -7% (9,993,906)RESTRICTED or MANDATORY COSTS
Mandatory Benefit Costs $49,970,955All University Expenses $20,246,081Student Grants $18,042,250Compensation $9,785,899Center for California Studies $3,201,000Reserve $2,597,614
SUBTOTAL $103,843,799
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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