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.
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.