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 | |||||
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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. |
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