Budgets in the CSU - California State Universityfoa.calstate.edu/CSU-101/2014-01/10_Budget_Brothwell_Olin.pdf · Budgets in the CSU Budget CSU 101 January 26-29, ... University of - [PDF Document] (2024)

Budgets in the CSU

Budget

CSU 101 January 26-29, 2014 San Francisco

Debbie Brothwell Deputy Vice President, Finance CSU East Bay (Retired)

Bradley Olin System Budget Analyst Office of the Chancellor

Summary

State of California – Revenues and Expenses – Process & Calendar

CSU – Process & Calendar – Allocation

Campus

The Big Picture

California’s Revenues

Sales & Use 28.04%

Personal Income 51.38%

Corporation 7.45%

Alcohol/Tobacco 0.95%

Estate/Gift 0.24%

Insurance 2.19%

Vehicle License Fee & Gas Tax

9.74%

Source: CA Department of Finance

California’s Expenses

K-12 41.19%

Higher Education

11.35%

Health & Human Services 29.17%

Transportation 0.21%

Tax Relief 0.43%

Corrections & Rehabilitation

9.26%

Natural Resources 2.21%

EPA 0.05% Biz & Consumer

Svcs 0.67%

Other* 5.46%

Higher Education

Community Colleges 36.53%

California State University

24.39%

University of California

26.90%

Student Aid Commission

9.69%

Other 2.48%

Source: CA Department of Finance

“Our job is the people.” – Doug Robinson, VP Student Services, CSULB

Salaries & Benefits $3,210 70.9%

Operating Expenses (non-discretionary)

14.0%

Operating Expenses

(discretionary) 0.6%

Financial Aid 14.4%

CSU 2012-13 Operating Budget by GAAP Object Expenditure Category

Academic Salaries 47.5%

Department Chairs 2.7%

Student Assistant, Temp

Help, & OT 3.1%

Support Staff 33.5%

Management & Supervisory

12.8%

Executives 0.4%

CSU 2012-13 Operating Budget, Salaries

Total Operating Fund Salaries: $2.25B

$2.25

331,353

321,339

357,222

340,302

328,155

341,280 342,000

est.

281,782

$2.68

$2.45

$2.97

$2.68

$2.00

$2.06

$2.33 $2.48

$2.60 $2.73

$1.75

$2.00

$2.25

$2.50

$2.75

$3.00

$3.25

$3.50

$3.75

$4.00

270,000

280,000

290,000

300,000

310,000

320,000

330,000

340,000

350,000

360,000

99-00 00-01 01-02 02-03 03-04 04-05 05-06 06-07 07-08 08-09 09-10 10-11 11-12 12-13 13-14 14-15 15-16 16-17

Full Time Equivalent Students (FTES), California ResidentCSU State Allocation (in billions)

336,510Target

Budget and Enrollment Trends

Historical Patterns

9

From whence does the money flow?

Tuition Fees Discount (Revenue

Foregone), $633M 13%

Net Resident & Nonresident Tuition Fees

$1.64B 34%

Application & Student Health

Fees $107M

2%

Other Student Fees

$136M 3%

State Appropriation

$2.3B 48%

Total Operating Revenue: $4.22B

20%18%

21%

28% 29%

38%36%

49% 48%45%

80%82%

79%

72% 71%

62%64%

51% 52%55%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1998-99 2000-01 2002-03 2005-06 2007-08 2009-10 2010-11 2011-12 2012-13 2013-14

Gap Between State Appropriation and Tuition and Fees as a Percentage of Funding Source has Narrowed

Net Tuition and Fees State Funds

Historical Patterns

Marginal Cost Funding

Marginal Cost

Budget Cycle

CSU Support Budget Cycle

Jun

Statement of Priorities

•

Trustees Approve Budget

Legislative Analyst Analysis

Legislative Hearings & May Revise

Budget Calendar Jan Feb Aug Sep

Exec Council Review • •

Governor's Budget Issued

•

Nov

• •

Preliminary Campus Allocations

• •

Apr

• Budget Signed •

Jun

• • May

•

Budget Advisory Com. Review •

CSU Web Site

Summary

State of California Budget Calendar – Agency requests November – Governor’s Budget January – Legislative Analyst February – May Revise May – Final Budget July

CSU is a state agency – our request – Trustees Support Budget Request http://calstate.edu/budget/fybudget/support-

budgets/

2013-2014 CSU Budget

CSU System Budget

Support Budget Plan

So, what did we get?

How much did we request?

CSU 2013-14 Budget Request

Mandatory Costs $48,182,000 Graduation Initiative and Student Success 58,000,000 Compensation—3 Percent Increase Pool 86,259,000 5 Percent Enrollment Growth (State funds only) 85,925,000 Urgent Maintenance Needs 50,000,000 Information Technology Infrastructure Upgrade / Renewal 20,000,000 Instructional Equipment Replacement 23,000,000 Center for California Studies 504,000

Requested Priorities for State Funding $371,870,000

http://www.ebudget.ca.gov/

2013/14 Governor’s Budget

23

2013-2014 Budget Summary

First time the State of California did not refer to an enrollment target obligation for the CSU

Remember Prop 30

The CSU Allocates the 125M

What is your campus share?

General Fund Allocation

Tuition Fee Revenue (before

tuition fee discounts)

Unadjusted Other Fee

Revenue and Reim.

2013/14 Gross Budget

Allocation

% of Total Budget

Allocation% of GF

Allocation

Bakersfield $51,343,309 $41,502,947 $3,981,406 $96,827,662 2.14% 2.57%Channel Islands 48,496,910 25,026,900 1,619,760 75,143,570 1.66% 2.42%Chico 85,954,532 82,084,000 10,401,000 178,439,532 3.94% 4.30%Dominguez Hills 61,880,052 62,897,920 3,898,000 128,675,972 2.84% 3.09%East Bay 67,147,261 75,924,277 22,455,551 165,527,089 3.66% 3.36%Fresno 108,604,732 108,420,680 10,178,825 227,204,237 5.02% 5.43%Fullerton 130,064,361 184,847,633 20,119,483 335,031,477 7.40% 6.50%Humboldt 60,415,210 43,010,000 8,613,750 112,038,960 2.47% 3.02%Long Beach 141,554,836 176,197,000 29,386,470 347,138,306 7.67% 7.08%Los Angeles 103,544,039 114,387,375 16,607,970 234,539,384 5.18% 5.18%Maritime Academy 23,184,576 5,563,552 3,651,914 32,400,042 0.72% 1.16%Monterey Bay 52,092,783 24,434,271 2,166,730 78,693,784 1.74% 2.60%Northridge 141,659,296 179,528,255 33,032,656 354,220,207 7.82% 7.08%Pomona 103,516,842 107,208,000 12,403,000 223,127,842 4.93% 5.17%Sacramento 116,988,137 134,266,000 15,426,805 266,680,942 5.89% 5.85%San Bernardino 78,595,208 90,036,440 20,126,129 188,757,777 4.17% 3.93%San Diego 143,411,096 163,254,000 35,351,595 342,016,691 7.55% 7.17%San Francisco 120,275,359 149,158,000 31,705,427 301,138,786 6.65% 6.01%San Jose 111,094,782 143,022,000 36,723,458 290,840,240 6.42% 5.55%San Luis Obispo 95,997,068 98,974,000 46,964,000 241,935,068 5.34% 4.80%San Marcos 55,597,552 47,864,000 8,710,000 112,171,552 2.48% 2.78%Sonoma 49,467,083 42,585,000 5,236,766 97,288,849 2.15% 2.47%Stanislaus 49,835,547 43,140,227 5,220,855 98,196,629 2.17% 2.49%Campus Total $2,000,720,571 $2,143,332,477 $383,981,550 $4,528,034,598 100% 100%

2013/14 CSU Campus Final Budget Allocation Totals

Marginal Cost Funding

Let’s review the marginal cost formula

2013/14 Enrollment Growth Funding

How Do Campuses Budget?

Organizational View

Changing Times – New Funding Model

Opportunities

Room for Innovation

Allocation methodology – Outcomes Adjustments (instead of per FTE) – Base Funding

Mandatory Costs – Health (Affordable Care Act) – Energy (Cap & Trade) – New Space/Maintenance (Bonding)

Recruitment/Retention of Talent – “Other Benefits” in absence of compensation

CSU 6 Year Graduation Rates, 2000-2006 Cohorts

Comparison Institutions with no SUG

What if we stopped offering Tuition Discounts…how would we measure up?

Campus 2013/14

Rutgers University (Newark, NJ) $13,499

Illinois State University (Normal, IL) $13,009

University of Connecticut (Storrs, CT) $12,022

Wayne State University (Detroit, MI) $12,014

University of Maryland, Baltimore County $10,068

Comparison Average $10,066

Arizona State University at Tempe $10,002

Georgia State University at Atlanta $9,928

George Mason University (Fairfax, VA) $9,908

University of Colorado at Denver $7,658

Cleveland State University $9,448

University of Wisconsin at Milwaukee $9,300

University of Texas at Arlington $8,878

State University of New York at Albany $9,230

North Carolina State University $8,206

University of Nevada at Reno $7,824

California State University $4,973

State University Grants (Revenue Foregone)

-

200,000,000

400,000,000

600,000,000

800,000,000

1,000,000,000

1,200,000,000

1,400,000,000

1,600,000,000

2007-08 2010-11 2013-14

$272,087,000

$474,749,000 $633,337,800

SUG Awards Now Exceed $600 Million

What if?

-

1,000

2,000

3,000

4,000

5,000 $5,472

$3,750 TuitionTuition without SUG

What about Annual Giving?

??

Enterprise Budgets

Other CSU Funds – Campus specific budget process

– Housing (Ed. Code 89703/90000) – Parking (Ed. Code 89701) – Continuing Education (Ed. Code 89704) – Instructionally Related Activities (Ed. Code 89230) – Lottery (Gov’t Code 8880) – Misc. Trust (Ed. Code 89720)

Main Operating Fund

CSU Operating Fund 485 General Fund/Student Fee Revenue

– The primary purpose of the CSU Operating Fund is to record revenues and expenditures for state-supported instruction. Used to record state tax revenue and student

fees.

IRA (Instructionally Related Activities)

Use of Funds – Funding source are fees collected for the mandatory IRA Fee and or

revenue generated by the IRA program itself – IRA funds are to be used solely for the support of instructionally related

activities as defined in Section 89230 of the Education Code and by CSU System-wide policy. As a general rule, expenditure of IRA funds follows the same principles and guidelines as required of CSU Operating Fund monies. Exception: Different Guidelines under Hospitality Policy

– If capital equipment is purchased whose use will not be restricted to IRA programs/activities, IRA funds may be employed only in proportion to the anticipated IRA use.

– Expenditure for awards that are the culmination of a group(s) or individual(s) efforts through competition or as a normal part of program activities will be allowed. Awards will normally be in the form of trophies, plaques, ribbons, and other similar items, the value of which is primarily intangible and limited to the recipient(s).

– Departments are allocated IRA Funds by an annual cash transfer

Lottery Education Fund

CSU Fund 481 Funding source

– Cash generated from the sale of California State Lottery tickets, a portion of which is allocated to CSU campuses

Departments are allocated Lottery Funds by an annual budget allocation For instructional or instructionally related

purposes only Limited term in nature

Housing

CSU Fund 531 Funding Source

– Revenues are generated from license fees paid by dormitory residents and must be used exclusively for the self-supporting housing program

Parking

CSU Fund 471–Parking Fines and Forfeitures CSU Fund 472 – Parking Fees Funding Source

– Parking revenue is generated from the sale of parking permits and fines paid for citations issued. Parking permit revenue must be used to maintain

parking lots and parking staff Citation income must be used for administration of

citations and alternate transportation.

Continuing Education Revenue Fund (CERF)

CSU Fund 441 Funding Source

– These sources are generated by student fees for enrollment in Continuing Education courses.

– Funds must be used for self-supporting instruction in the Continuing Education program.

– CSU Fund 444 recently created to define CERF Funds allocated to the Academic areas.

Campus Union

CSU Fund 534 Funding Source

– Revenues are generated from the mandatory University Union fee.

– Exclusively for the self-supporting Campus University Union facilities and related programs.

Funding Source – Two Sources: State tax revenues appropriated by the state

legislature. Proceeds from bond sales.

– Funding is allocated to the University as either: Minor Cap. (projects ≤ $600K) Major Cap. (projects > $600K).

– Funding restricted to specified const. projects.

Capital Outlay

Contract Information Bradley Olin Chancellor’s Office System Budget Office Email: [emailprotected] Phone: (562) 951-4555