2008/09 Budgetary Challenges

Additional 1 Percent Student Enrollment Growth ($27.5 Million)

The Compact calls for 2.5 percent annual enrollment growth at the CSU through fiscal year 2010/11. The requested level of funding supports the state’s goal of providing quality education to California students. Although the Compact was established for this purpose, the base assumption for enrollment growth is inadequate to meet the state’s educational needs. Since 2005/06, the CSU has absorbed the cost of over-target enrollment by temporarily redistributing resources based on estimates of future budget year enrollment funding. CSU student enrollment demand has exceeded funded enrollment over the past few years—a trend that is expected to continue exponentially through 2008/09. However, CSU student enrollment projections for 2007/08 and 2008/09 show significant increases in student growth (and associated costs) that can no longer be absorbed by the university. Student enrollment demand projections for 2008/09 are expected to exceed targeted budgets by nearly 3 percent. The university cannot absorb costs associated with this over-target enrollment growth without impacting student access and availability of courses. The chart on the next page identifies over-target enrollment growth from 2005/06 through 2008/09. Data for 2005/06 and 2006/07 represent actual over-target enrollment growth.

College Year	Target Enrollment	Over Target	Additional Enrollment
2005/06	325,545	2,565	-
2006/07	334,198	6,196	-
2007/08	342,893	10,000	-
2008/09	351,465	-	3,429

The CSU is requesting $27.5 million to fund 2008/09 over-target student enrollment growth of 1 percent (3,429 FTES) to ensure higher education needs are adequately met by the CSU. The requested funding will allow the CSU to meet these demands, and therefore retain higher education students within the State of California. As a result, these students will graduate and become educated professionals who contribute toward California’s growing economy.