Price Increases

The CSU uses price factors contained in annual budget letters issued by the Department of Finance to calculate the mandatory cost increase for inflation (growth in the costs of non-salary operating expenses and equipment). This calculation yields a cost requirement that has typically exceeded the amount the CSU has been able to include in its budget plan due to the competing needs for limited revenue growth. The price increase calculation for 2006/07 totals approximately $16.5 million. However, funding for these costs contained in the following chart has not been proposed in the budget plan.