Sources of Revenue
The 2009/10 California State University Trustees' Support Budget is based on revenue assumptions derived from the Higher Education Compact, a six-year agreement signed in May 2004 with the governor, the University of California, and the CSU. Beginning in fiscal year 2005/06 and through 2010/11, the governor agreed to include in his annual state budget sufficient funds to support scheduled base budget increases for general operations, enrollment, and mandatory cost obligations for debt service and annuitant benefits. While the CSU received full Compact funding in 2005/06 through 2007/08, the state provided no funding increase to the CSU in 2008/09. In fact, total funding for the CSU from the General Fund fell short of the Compact by $215 million. Resumption of Compact-level increases in 2009/10 is vital to the CSU in order to meet the minimum level of funding needed to prevent further erosion to student access and the quality of educational services.
General Fund components of the Compact include:
- 4% for General Operations ($116,548,000)
- 1% for Core Academic Support Needs ($29,137,000)
- 2.5% for Enrollment Growth ($69,879,000)
- 10% Fee Revenue Augmentation (General Fund buyout) ($86,956,000)
- State University Fee Revenue from Enrollment Growth ($38,694,000)