2009/10 Support Budget II

Price Increases

The CSU uses price factors contained in annual budget letters issued by the California 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 typically exceeds 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 2009/10 totals approximately $40.8 million. However, funding for these costs contained in the following chart has not been proposed in the budget plan.

2009/10 Price Increase Calculation

  2007/08 Actual
Expenditures
Percent Increase 2009/10
Price Increase
Library      
Books 7,718,001 5.70% $440,000
Subscriptions 11,872,810 8.50% 1,009,000
Serials 5,530,181 6.80% 376,000
Natural Gas 17,046,357 21.10% 3,597,000
Unspecified Items1 569,820,549 6.20% 35,329,000
Specified Items with no price increase2 429,167,654    
Totals 1,041,155,550   $40,751,000
Total, Applicable O.E. & E.3 733,905,672   $40,751,000
1 Price increase for unspecified items is calculated using CPEC’s Higher Education Price Index Factor.
2 Includes telephone, postage, travel, electricity, oil, Teale Data Center, printing, E.O.P grants, financial aid, instructional equipment, and bonds repayment.
3 E.O.P. grants, financial aid, instructional equipment, and bonds repayment are not included in the price increase calculation.