2004/05 Support Budget

Special Funds

Auxiliary Programs

Special FundsAuxiliary organizations are separate legal entities authorized in the Education Code to provide essential services to students and employees. They operate in association with campuses pursuant to special written agreements, and are authorized to perform specific functions that contribute to the educational mission of the campus.

CSU auxiliary organizations have been in existence for many decades as a necessary supplement to State-supported instructional and administrative activities. The first organization, the Fresno State College Association, was established in 1922. Student associations have operated at San José, San Diego, San Luis Obispo, Chico, Fresno, and other campuses since the early 1920s. The growth of auxiliary organizations has paralleled the growth in size and complexity of CSU.

These organizations are subject to applicable State and federal laws and regulations. In addition, they operate within the policies established by the Board of Trustees, the chancellor, and campuses. As of the beginning of the 2003 fall term, there were 84 auxiliary organizations, with one to five per campus, and three systemwide auxiliary organizations. Most of these organizations can be grouped into five major functional categories.

  1. Associated Student Body Organizations These are student-run organizations that operate such extracurricular activities as student government, student newspapers, athletics, cultural programs, and many other student activities related to the overall educational mission of the campus.
  2. Special Educational Projects These organizations administer projects that have a direct relationship to the educational process of the campuses and are funded by numerous sources. Major sources of support come from federal, State and private grants and contracts. Projects are designed to meet the needs of the program sponsor and campus programs.
  3. Student Union Operations Student union fees collected by the campus are deposited in the Dormitory Revenue Fund Union account to pay for the principal, interest, and other costs of the building. Any surpluses remaining from the student union fees after the bond and other costs are met may become available to the student union auxiliary organization to pay operating expenses.
  4. Commercial Activities These activities consist mostly of the operation of bookstores, food service, and agricultural projects. Agrarian activities are particularly important to campuses offering instruction involving direct experience with farms, cattle, poultry, etc.
  5. Development Activities These organizations primarily administer programs related to the management of gifts, bequests, devices, endowments, trusts, and similar funds, as well as programs related to public relations, fund-raising, fund management, and similar development programs.

The auxiliary organizations must be self-supporting. They do not receive funding from General Fund sources. They derive revenue from various non-State sources such as contractual arrangements (e.g., federal government), general assessments (e.g., student body fees), and commercial operations (e.g., bookstores). Pursuant to existing laws and policies, the materials, facilities, and services provided by the campus to these separate entities are paid for by the auxiliary organization. Revenue in excess of expenditures for a given period is used to establish working capital and reserves, and to pay for capital expenditures or special campus programs.

All auxiliary organization financial activity is reported yearly. Financial reports are audited annually and later incorporated in the systemwide CSU audited financial Statements.

Parking Program

Special FundsThe Parking Program provides campus-parking facilities as authorized under the provisions of Section 89701 of the Education Code. The program itself is self-supporting and derives most of its revenues from parking fees paid by students, faculty, staff and visitors. Additional income is available from interest on retained earnings.

Consistent with CSU objectives for increased accountability at the campus levels, management of all operations of the parking program is decentralized to the campus level. Parking fee revenue is deposited by campus to a campus-specific parking fund, and campuses have the authority to expend those funds directly. Campus spending of the parking fee revenue is restricted to the acquisition, construction and maintenance of campus parking facilities. Revenues for 2004/05 are projected to be $60 million. The projected revenue will be sufficient to cover operating expenditures as well as transfers for debt service payments of bond principal and interest.

To facilitate the trustees’ policy of providing adequate parking throughout the system at the lowest possible fee, every effort is made to minimize operating costs. The 2003/04 proposed budget incorporates reimbursements to the General Fund for supervising and dispatching services provided by the campuses. Expenditures relating to utilities, communications, and support services provided by the General Fund are reflected as direct or indirect costs, as appropriate.

The California State University had a total of 134,934 temporary and permanent spaces as of July 1, 2003. By the end of 2004/05, usable parking spaces are projected to total 139,824.

Parking Spaces By Location

Parking Spaces By Location

Housing Program

Special FundsThe housing program at CSU provides residential facilities for students.

The State Dormitory Construction Fund was established under the State Revenue Bond Act of 1947 and bonds were initially sold to support the construction of campus housing facilities. In 1957, the Legislature approved a residence hall program, which was financed by both State and Federal funds. Today the housing program is a selfsupporting program deriving its revenues primarily from fees collected for the use of the residence facilities. Funds are used for current operating expenses, maintenance and repair, improvements to facilities, and interest and principal payments on outstanding bonds. After payment of all authorized charges, the balances in any of these funds remain available for future program expenses.

As provided in this table, the 2004/05 Dormitory Revenue Fund system housing design capacity at CSU is projected to total 29,031 spaces (beds).

The total projected revenue for fiscal year 2004/05 provides approximately $125.2 million for housing operations. From this amount, approximately $33.2 million is used for debt service for payments of principal and interest on revenue bonds issued to finance construction of student housing and major renovations.

Housing Program

Extended and Continuing Education

Special FundsThe Continuing Education Revenue Fund (CERF) is authorized by Education Code Section 89704. CSU has maintained continuing education outreach efforts for over a century. Originally comprised of in-service instruction for school teachers, extended and continuing education; continuing education now provides an increasingly broad spectrum of academic services to public and private agencies as well as to individuals who wish to advance personally and professionally or prepare for career transitions. Courses and programs administered through the Continuing Education Revenue Fund, or campus trust accounts, include credit and noncredit instruction. Extended and continuing education courses are delivered both on and off campus, via distance learning technologies, and at national and international venues. Credit instruction, particularly coursework as part of the special sessions, applies readily to graduate and undergraduate degree programs. Academic policies modified in 1997/98 now permit students to apply up to 24 units of special session credit earned in the concurrent enrollment program (Open University) towards baccalaureate degrees. The extended/continuing education program involves a variety of instructional components.

Regular Extension Program

Regular extension coursework responds to a variety of corporate, institutional and individual needs. This instructional category includes seminars, workshops, and in-service contracting and conference-based activities. Instruction involves both credit and noncredit applications, and in many cases, credentials, certificates, or other activities that demand validated outcomes. Regular extension instruction, for the most part, is conveyed at the upper division and graduate levels to avoid competition with community college efforts.

Special Session Programs

Special session programs are designed to assist professionally employed persons, non-traditional learners, and regularly matriculated students. In many instances, special session programs make use of campus classrooms and facilities that are otherwise unavailable during the regular academic year. Special session programs have proven to be especially useful for persons who are seeking licensure, relicensure, or professional upgrading.

Campus CERF and trust ledgers had cumulative balances of $50.5
million at close of operations on June 30,2003.

Content Contact
Jo Ann Lumsden
(562) 951-4560
Technical Contact

Last Updated: December 8, 2003