2009/10 Support Budget II

Sources of Revenue

Enrollment Funding, $69.9 Million

For each additional full-time equivalent student (FTES) who enrolls at the CSU, the state provides funding at a marginal cost rate to support direct instruction, academic support, student services, institutional support needs, and plant operations. The Compact includes a 2.5 percent enrollment increase for 2009/10, which amounts to 8,572 resident FTES. This increase means the CSU will be funded to serve 351,465 resident FTES in 2009/10.

Based on the Department of Finance's marginal cost methodology, the gross marginal cost rate for 2009/10 is $10,526. The state share of this rate is $8,152 per FTES, which reflects a $2,374 offset from student fee revenue. The $8,152 state share multiplied by the 8,572 FTES enrollment growth equals $69,879,000. One-third of the marginal cost fee revenue will be set aside for financial aid ($791 per FTES).

The marginal cost calculation is based on the updated methodology established in 2006/07, which includes a decrease in the unit load for graduate FTES from 15 to 12 units per term and includes a component to recognize the cost to maintain existing space and open new space to support enrollment levels. It also limits the marginal cost calculation to resident student growth only. While these changes are beneficial, the Department of Finance (DOF), the Legislative Analyst's Office (LAO), the University of California (UC), and the CSU have yet to agree on a methodology that results in consistent marginal cost funding rates. The CSU will continue to participate in the review of the marginal cost calculation methodology and will strive for a consistent annual methodology that will adequately cover the costs associated with enrollment growth.

2009/10 Resident Student Marginal Cost (MC) of Instruction Rate

Program 2008/09 General
Fund (GF)
FinalBudget1
(in 000s)
Program
Area MC
Factor Discounts
(in 000s)
2009/10 GF MC Factor Per FTES2 2008/09 Student
Fees3
(in 000s)
Program Area MC
Factor Discounts
(in 000s)
2009/10 Student
Fee MC Factor
Per FTES2
Instruction $1,612,894 $0 $4,704 $322,623 $0 $903
Research 2,336 (2,336) 0 0 0 0
Public Service 6,677 (6,677) 0 0 0 0
Academic Support 326,530 (23,602)4 883 152,438 (14,500)4 386
Student Services 294,587 0 859 90,013 0 252
Institutional Support 398,114 (141,136)5 749 174,428 (44,921)5 362
Operation and Maintenance of Plant 294,433 (111,006)6 535 212,655 (44,340)6 471
Student Financial Aid 33,785 (33,785) 0 299,164 (299,164) 0
Totals $2,969,356 ($318,542) $7,731 $1,251,321 ($402,925) $2,374
Instructional Equipment 36,639 - 107      
Totals
with I.E.
$3,005,995 ($318,542) $7,838      
2009/10 GF Marginal Cost
with 4% COLA
$8,152  
2009/10 Total Marginal Cost of Instruction $10,526
Less: Fee Revenue 2,374
General Fund Support $8,152
1 2008/09 Final Budget GF includes a post-final budget employer-paid retirement adjustment of -$1.35 million.
2 GF divided by 2008/09 resident FTES only, 342,893; Students Fees divided by 2008/09 Total FTES (resident and nonresident), 357,403.
3 Student Fees reflect State University Fee revenue only.
4 Excludes museums and galleries, ancillary support, and academic personnel development.
5 Excludes executive management, logistical services, and public relations/development.
6 Excludes physical plant administration, logistical services, information technology, major repairs, and lease purchase.