1998-1999 Support Book 2 Documentation
Mandatory Cost/Special Initiatives
Mandatory Costs are contractual or otherwise required obligations that sustain current program service levels at CSU. Included in these continuing costs items are increases for inflation affecting the purchase of non-salary goods and services, new physical plant space scheduled to come on-line during the fiscal year, and lease bond payments. In accordance with the Governor's compact, funding is provided at cost for increases in lease bond payments in addition to the annual four percent base budget appropriations adjustment. An appropriations increase of $6.4 million is projected for the 1998/99 lease bond payments requirement. Mandatory cost increases included in the 1998/99 budget plan for State University Grants will be funded from State University Fee revenue generated from requested enrollment growth of 10,320 FTES. CSU fee policy requires that one-third of State University Fee revenue increases be set-aside to increase the pool of funds available for student financial aid grants. It is estimated that $14.6 million in new fee revenue will be generated from the enrollment growth requested for 1998/99. One-third of this amount will increase the State University Grant pool by just under $4.9 million. Mandatory cost increases provided in 1998/99 also includes $8.6 million to cover cost increases in health and dental benefits rates, $2.4 million to fund the full-year costs of 1997/98 salary increases, and $4.8 million to offset the cost of liability premium increases, particularly for workers compensation. The budget also includes $560,000 to open 87,000 square feet of physical plant space, but does not include any funding to help offset inflation.
Special Initiative funding for CSU, Monterey Bay is included in the 1998/99 budget plan in recognition of its status as a start-up campus (a campus in its first five years of operation).