San Francisco State UniversityWe Make Great Things Happen

Fiscal  Year  2015/16November  2015  Academic  Senate

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Summary of the Governor’s 2015/16 Budget

Summary of the Governor’s 2015/16 State BudgetBudget  Highlights

§ $115  billion  spending  plan  and  $3.5  billion  in  reserve

§ Advances  multi-­‐year  budget  plan  expected  to  remain  balanced  in  future  years  

§ State  revenues  forecasted  to  increase

§ Continue  its  reinvestment  in  education    

ü Increase  in  Prop  98  Funding,  $7.6  billion,  total  budget  $68.4  billion

ü Funding  increase  for  CSU  and  UC  

ü Increase  Cal  Grant  funding

ü Awards  for  Innovation

§ Increase  spending  commitment   due  to  the  expansion  of  Medi-­‐Cal  under  the  Affordable  Care  Act        

§ Funding  for  drought  related  expenditures

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Summary of the Governor’s 2015/16 State Budget

Budget  Highlights

§ Retirement  Costs:  

ü CalPERS   – Increase   in  retirement  costs

ü CalSTRS   – New  funding   formula,   shared   responsibility   among  state,  

school   districts   and  teachers

§ Rainy  Day/Reserve   Fund:   Constitutional   amendment   to  strengthen   reserve   fund

§ Pay-­‐Down   Wall  of  Debt:    maybe   eliminated   by  2017-­‐18

§ Spending   Triggers  

§ The  state’s   current  fiscal   condition   continues   to  improve,   however   it  requires   fiscal   restraint

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Summary of the Governor’s 2015/16 State Budget

Risks  Remain

§ Budget  assumes   continuing   modest   economic   expansion,   however,   all  economic   expansion   don’t   last  forever

§ Long-­‐Term   Liabilities:    State  continues   to  address   other  long-­‐term   costs   pressures,   debts,   and  liabilities

§ Capital  Gains:   State  has   benefited   from  a  modestly   improved   economy   over  the  last  few  years  with  markets  

performing   better  than  expected

§ Sunset   of  temporary   sales   and  incomes   taxes  (Prop   30,  Governor’s   tax  initiative)

§ Drought  will  likely   affect  California’s   agricultural   sector

§World   events  will   affect  the  fiscal   outlook   of   California

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Governor’s  Budget  Act2015/16   General  Fund  Revenue  Sources

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(Dollars in Millions)

Sales  and  Use  Taxes$25,240  21.6%

Corporation  Tax$10,342  8.8%

Insurance  Tax$2,556  2.2%

All  Others$1,049  0.9%

Personal  Income$77,700  66.5%

Total:  $116.9  Billion

Governor’s Budget Act2015/16 General Fund Expenditures by Agency

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(Dollars in Millions)

Legislative,  Judicial,  Executive$3,158  3%

Natural  Resources$2,479  2%

K-­‐12   Education$49,373  43%

Health  and  Human   Services$31,867  27%

Higher  Education$14,200  12%

Corrections   and   Rehabilitation$10,078  9%

Other$4,214  4%

Total:  $115.4  Billion

Fiscal Year 2015/16California State University

Budget SummaryNovember 2015

Academic Senate

Governor’s Budget Act2015/16 California State University Budget

Budget  Highlights§ $216.5  million  based  funding,  part  of  the  Governor ’s  multi-­‐year  funding  plan

§ Shift  general  obligation  and  lease  revenue  bond  debt-­‐service  into  CSU’s  budget

§ Student  success  remains  a  major  priority:

o Improving  graduation  rates  

o Increasing  the  number  of  transfer  students  from  community  colleges

o Increasing  the  number  of  degrees  completed

Other  Budget  Items

§ $25M  Deferred  Maintenance  (one-­‐time)

§ California  Dream  Loan  Program

§ College  Preparation  Partnership  Pilot  Program

§ Report  on  Graduation  Factors

§ Academic  Sustainability  Plan

§ Awards  for  Innovation  in  Higher  Education   10

2015/16 Support Budget(Dollars in Millions)

Original Final3%  Enrollment   Growth   (10,400   FTES)   $    37.9 $   103.2Student   Success   and  Completion   0 $     38.0Mandatory   Costs   Increase   (health   benefits,   space)   $    23.1 $     23.12%  Compensation   Increase   $    65.5 $        65.5  Information   Technology   Renewal 0 $        14.0Academic   Facilities   &  Infrastructure  Needs 0 $     25.0Center   for  California   Studies   0 $   0.2System  Wide   Initiatives $    14.6 0

________ ________Total  Budget  Plan  Increase   in  Expenditures   $    141.1 $    269.0Tuition   Fee  Revenues   Generated  by  3%  Enrollment   Growth ($    21.6) ($    52.5)  

________ ________Total  Budget  Increase  in  State  Support $    119.5 $   216.5  

• An additional $97 million was added from the Governor’s original Multi-Year Funding Plan of $119.5 million (5544 Plan).

Projected CSU General Fund Budget with Governor’s Assumptions

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$2.0  $2.1  

$2.3  

$2.7  $2.8  

$3.1  

$-­‐

$0.5  

$1.0  

$1.5  

$2.0  

$2.5  

$3.0  

$3.5  

2011/12 2012/13 2013/14 2014/15 2015/16 2016/17

Billion

s

*In 2014-2015 bond debt serviceincluded in General Fund appropriation

5%

5%4% 4%

$125.1M

$142.2M$119.5M

$124.3M8%$216.5M  Actual  Funded

$3.0

Fiscal Year 2015/16San Francisco State University

Budget SummaryNovember 2015

Academic Senate

SF State General, Self-Support, and Auxiliaries Fund Budgets Fiscal Year 2015/16

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The campus budget consists of multiple components that are administered as separate budgets due to the nature of their funding and restrictions:

Ø General (Operating) Fund

Ø Self-Support/Enterprise Fund

Ø Auxiliaries

Auxiliaries$20,903,359  

4.7%

General  Fund$337,990,815  

75.7%

Self-­‐Suport  /  Enterprise$87,363,768  

19.6%

Total:  $446.3  Million  

San Francisco State UniversityOther Notable Budget Changes Affecting SFSU

• $2.0  million  set  aside  for  Student  Success  and  Completion

• Successful  Summer  enrollment  program

• Successfully  implemented   a  balanced   budget   plan

• Anticipated  enrollment   growth  of  2%

• Successful  groundbreaking   of  Mashouf Wellness  Center

General  Fund  Allocation$142.7M42.2%

Additional  Allocation,  CPO  &  BTR$1.3M0.4%

Tuition  Fee  Revenues  $126.9M37.5%

Financial  Aid  (Tuition  Fee  Discount/SUG)$47.8M14.1%

Other  Fee  Revenues$15.7M4.7%

Release  from  Carry  Forward$3.6M1.1%

16Total:    $338.0  Million

SF State Fiscal Year 2015/16 General Fund Revenue Budget

2014-­‐15  General  Fund   Base FTES  23,351 $                    131,532,859  

2015-­‐16  FundingRetirement  Rate  Increase  Adjustment 4,555,000  

Health  Benefit  Rates  Adjustment 732,000  

Student Access  and  Success  Funding 1,002,000                                    

2014-­‐15  GSI 3%  Compensation  Increase/Cost 81,000

2015-­‐16  GSI  2%  Compensation  Increase/Cost   2,085,000  

Enrollment  Growth  net  of  Financial  Aid  (+485  FTES/2%) 2,722,000

Total  2015-­‐16  Funding $                      11,177,000  

2015-­‐16  General  Fund   Base  Allocation FTES  23,836 $                  142,709,859  

State Appropriation FundingFiscal Year 2015/16

San Francisco State UniversityExpenditure Requirement Changes (Pass Through)

FY  2014/15   PERS  Retirement  Rate  

Increases$4.6M

2015/16   Compensation$2.1M

Health  Benefits  Rate  Increase$0.7M

Expenditure  Requirement   Changes  Total:  $7.4M

Summer  -­‐ State  University  Fee

$9,371,000  5%

Fall  -­‐ State  University  Fee$76,552,000  

44%

Spring  -­‐ State  University  Fee$71,987,000  

41%

Non-­‐Resident   Fee$16,769,000  

10%

Total:  $174.7  Million

Budgeted Tuition Fee Revenue

21.0

21.5

22.0

22.5

23.0

23.5

24.0

FY  2009/10 FY  2010/11 FY  2011/12 FY  2012/13 FY  2013/14 FY  2014/15 FY  2015/16

23.4

22.0

22.8 22.8

23.1

23.4

23.8

23.3

22.6

22.9 22.922.7

22.2

Thou

sand

s

FTE   Target

FTE  Actual

FTE/ Actual Comparison

Academic  Affairs$131.2M38.8%

Administration  &  Finance$31.5M9.3%

Office  of  the  President$2.9M0.9%

University-­Wide$150.7M44.6%

SAEM$16.0M4.7%

University  Advancement$5.7M1.7%

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Total:    $338.0  Million

Fiscal Year 2015/16 General Fund Budget by Cabinet

San Francisco State UniversityUniversity Wide Expenditures

Compensation2.1M Operating  Expenses

$5.5M

Benefits$85.1M

Utilities$5.2M

Risk  Pool$5.0M

Financial  Aid  (SUG)$47.8M

University  Wide  Expenditures  Total:  $150.7M  

Salaries$173.0M51.2%

Utilities$5.2M1.5%

Risk  Pool$5.0M1.5%

Financial  Aid  (Tuition  Fee  Discount/SUG)$47.8M14.1%

Operating  Expenses$21.9M6.5%

Benefits$85.1M25.2%

23Total:    $338.0  Million

Operating Budget by Expenditure CategoriesFiscal Year 2015/16

Ø Cabinet:   Student   Affairs  &  Enrollment  

Management

Ø Duration:   8/1/2015-­‐9/1/2018

Ø Anticipated   Cost:   $86,487,000

Ø Square   Feet:  118,700

Ø Contractor:   CW  Driver

Ø Project  Manager:  CPDC

Mashouf Wellness Center Project Summary

SFSU Capital Projects Funded by Chancellor's OfficeFY 2015-16

Allocation Deferred  Maintanance $4,636

Allocation Critical  Infrastructure/Deficiencies

$12,599

AllocationModernization/Renovation

$1,704

Allocation New  Facilities/Infrastructure

$56,800

Total  :$76.0  million

Total:  $87.4  Million

Student  Health  Services$12,040,898  

13.8%

Parking  &  Transportation$2,665,916  

3.1%

Campus  Recreation$692,152  0.8%

Continuing   Education$19,129,419  

21.9%

Athletics$3,410,544  

3.9%

Housing$49,424,839  

56.6%

Self Support BudgetsFiscal Year 2015/16

San Francisco State University• Three  Pronged  Approach

$2.4  Million:  3%  Reduction  to  Non-­Faculty  Salaries

$3.6  Million:  One-­Time  Trust  Fund  Allocations

$1.5  Million:  Cost  Allocation  Plan  Reimbursement

TRANSFERS - GENERAL FUND TO GENERAL FUND

• RECHARGE  VALUE      $7.7  MILLION

• RECHARGE  COUNT  BY  CUSTOMER:  6,135

TRANSFERS - NON-GENERAL FUND TO GENERAL FUND

• RECHARGE  VALUE:      $950K

• RECHARGE  COUNT  BY  CUSTOMER:  928

San Francisco State UniversityInstructionally Related Funds (IRA) - Flows

Student Fee- General $50/student/term~ $2.7 million/year

IRA – General(TA501-3010-501102)

~$2.7 Million/Annually

Campus Specific Projects IRA Advisory Board Committee Recommends for

President Approval

Library TA700 ~$2.3 Million/Annually

Current  Process

Academic Affairs (TA501-3xxx)

~$2.3 Million/Annually

$2.3 Million Swap~  $400K

San Francisco State UniversityInstructionally Related Funds (IRA)

Student Fee- General $50/student/term~ $2.7 million/year

IRA – General(TA501-3010-501102)

~$2.7 Million/Annually

Campus Specific Projects IRA Advisory Board

Committee Recommends for President Approval

Library TA700 ~$2.3 Million/Annually

Academic Affairs (TA501-3xxx)

~$2.7 Million/Annually

Proposed  Process

Campus Specific Projects IRA Advisory Board

Committee Recommends~400K

Education  Code  89230  (EC  89230)-­‐ provides  the  definition  and  related  activities-­‐”IRA  means  those  activities  and  laboratory  experiences  that  are  least  partially  sponsored   by  academic  discipline  or  department  and  that  are,……integrally  related  to  its  formal  instructional  offerings.EO  290  dated  March  28,1978-­‐the  campus  president  shall  establish  an  IRA  fee  for  the  campus  effective  fall  term  1978.Item  4-­‐ restricts  the  use  of  IRS  fee  to  support   faculty  positions.Item  6-­‐establish  the   issuance  of  a  campus  advisory  committee  on  IRA  to  advise  the  president  regarding  both  the   level  of  the  fee  and  allocation  of  fee  revenue.EO  429  dated  December  30,1983-­‐ supersedes  EO  290  and  sets  forth  the  procedures  for  administration  of  the  fee  described  in  BA  82-­‐38.EO  661  dated  August  23,1996-­‐ supersedes  EO  429  and    requires  each  campus  to  establish  the  fee  advisory  committee  to  provide  advice  to  campus  president  regarding  proposed  fee  actions  for  mandatory,  use,  or  penalty  fees.  This  EO  eliminates  the  requirement  that  the  campus  maintain  an  instructionally    related  activity  fee  advisory  committee.EO  1102  dated  July  22,2015-­‐ establishes  the  IRA  fee  as  a  Categ  II  Fee.

San Francisco State UniversityInstructionally Related Funds (IRA)

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