budgets in the csu - california state...
TRANSCRIPT
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: [email protected] Phone: (562) 951-4555