1998-1999 Support Book 2 Documentation
Budget Plan - Overview
Entering the fourth and final year of the Governor's funding compact for higher education, the CSU has proposed a budget plan for 1998/99 that confronts the financial challenges associated with increasing enrollment demand and maintaining the quality of its workforce. In accordance with the compact, it includes $110.5 million in new General Fund revenue supplemented by $4.7 million in new student fee revenue. These new revenues will be used to support expenditure increases associated with one percent growth in student enrollment (2,580 FTES), a four percent compensation pool to keep CSU salaries competitive and increases in the mandatory costs of health and dental benefits rates, the opening of new facility space, campus premiums for workers compensation and other liabilities, maintenance of plant facilities and payments on capital bonds.
CSU enrollment experience for 1996/97 and Fall 1997 indicates the one percent enrollment growth commitment of the four-year compact is insufficient to keep pace with the excess enrollment demand CSU currently serves. In 1996/97, CSU enrolled 7,000 full-time equivalent students (FTES) more than the one percent growth level assumed in the funding compact. Preliminary review of Fall 1997 enrollment data indicates CSU enrollment for 1997/98 will exceed the compact's one percent annual growth commitment by as many as 8,400 FTES. Consequently, the 1998/99 budget plan requests $39.6 million in additional General Fund support (which will be supplemented by $9.9 million in fee revenue) to serve an additional 7,740 FTES over the one percent compact enrollment growth commitment. Also, in cooperation with the state's efforts to provide effective reuse of state facilities, the 1998/99 CSU budget plan includes a $6.5 million request to complete conveyance of the Camarillo State Hospital and Developmental Center for CSU use as an expanded off-campus facility serving higher education need in Ventura county.
In total, the 1998/99 CSU budget plan is based on $156.6 million in General Fund support and $14.6 million in State University Fee revenue from planned enrollment growth. In addition, CSU will receive General Fund support to replace $19.4 million in State University Fee revenue that will be lost as a result of AB 1318, legislation enacted in October 1997 that reduces undergraduate fees by five percent and freezes graduate fees at current levels for the 1998/99 fiscal year. Since the $19.4 million appropriation must be used to continue current CSU operations previously funded with the fee revenue, no new expenditures are proposed for this funding in the 1998/99 budget plan.