8 Budget Events State Jan 10 th Governor’s proposed budget Feb 20 th 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 30 th Constitutional deadline for legislative approval of next year’s budget
9 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
12 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
13 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
15 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.
16 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.
17 Current Year Budget Allocations (Sept. 2007)
18 2007-08 Deficit of ($7,447,769) Baseline Cuts of ($3,042,376)
19 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).
20 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