2007/08 Support Budget

Budget Proposal: Mandatory Costs

Energy Cost Increases, $4,000,000

The 2007/08 budget plan currently includes $4 million to assist with increases in electricity, natural gas, and water/sewer rates occurring at campuses, which would cover almost half of the projected need. This projection is likely to change due to world market volatility in energy fuels, statewide impacts for increased rates to manage growing electric grid congestion, and the passage of Assembly Bill 2951, which allows municipal utilities to pass capital facilities fees on to government agencies.

Electricity (6.5%) $5,100,000
Natural Gas (10%) 2,500,000
Water/Sewer (8%) 1,000,000
Total Energy Cost Increase $8,600,000

There are CSU systemwide energy efficiency and conservation efforts geared toward reaching two major goals by 2010: reducing total energy consumption by 15 percent and increasing the CSU's self-generation capacity to 50 megawatts. To meet these goals, the CSU is holding designers and engineers to a standard that will exceed the current California energy efficiency code by 15 percent, and campuses are replacing inefficient equipment whenever possible.

Although many efficiency efforts are underway, utility costs continue to rise in the short-term due not only to rate increases but also to the increase of energy use intensity (EUI) with student, faculty, and staff demand for technology and electronic equipment.

Full-Year Service Salary Increases, $3,934,000

Service-based Salary Increases (SSI) are implemented on eligible employee anniversary dates that occur throughout the fiscal year. Therefore, the SSI compensation costs incurred in the first year are less than full-year costs. The remaining full-year costs are mandatory obligations in the subsequent year. While not all 2006/07 collective bargaining agreements are final to date, the 2007/08 budget plan includes approximately $4 million to cover the full-year costs of 2006/07 SSI that may be implemented.


Content Contact:
Budget Development
Chris Canfield
(562) 951-4560
Technical Contact:
webmaster@calstate.edu

Last Updated: November 06, 2007