2014/15 Executive Summary

Three-Year Budget Summary

The tables on the following pages provide background data on the CSU’s state-assisted budget for the current and prior fiscal years and summarize the CSU’s 2014/15 budget plan. The plan focuses on critical needs to fulfill the CSU’s mission to educate Californians under the state’s higher education master plan and, to this end, seeks ongoing reinvestment by the state in the CSU. The planning approach is tempered by recognition of the state’s finite resources, yet represents a credible statement of the CSU’s key funding needs for the upcoming fiscal year.

The 2014/15 budget plan increase of $334.3 million would bring the CSU’s annual support budget to approximately $4.6 billion, with approximately $2.0 billion from tuition fee and other fee revenues (net of financial aid) and a requested state appropriation of almost $2.6 billion. As shown in the summary, we estimate that additional tuition fee revenues generated by enrollment growth (adjusted further by a change in the “mix” of graduate and undergraduate students and part-time and full-time students) will total $96.6 million. This revenue, combined with a recommended increase of state support of $237.6 million, would provide the needed ongoing revenues for the recommended spending increase. Specific justifications for the elements of planned spending increase are provided in the narrative pages for uses of revenue following the summary displays.

A much larger increase in resources could be justified for the CSU to fully meet the expectations placed upon it by the higher education master plan. This budget plan, however, strikes a balance in meeting the increased expenditure needs of the CSU between an amount that can be reasonably requested from the state and an amount that can be reasonably provided through tuition fee revenues generated by enrollment growth. Development of a 2014/15 budget request on these lines provides the governor and legislature with an achievable plan to continue investing in the CSU for the sake of California’s economic and social future.

  2012/13
Actuals
2013/14
Final Budget1
2014/15
Request
General Fund Appropriations $2,068,550,000 $2,346,840,000 $2,584,454,000
Tuition Fee and Other Fee Revenue (net)2 2,071,975,000 1,947,334,000 2,043,975,000
Reimbursement 1,000 1,000 1,000
Totals $4,140,526,000 $4,294,175,000 $4,628,430,000
Enrollment Growth, Programs, and Operations $237,462,000
Center for California Studies3 152,000
Total General Fund Increase $237,614,000
Change in Enrollment Patterns 12,057,000
5 Percent Enrollment Growth 84,584,000
Net Tuition Fee Revenue Adjustments4 $96,641,000
Total Sources of Revenue $334,255,000

1 The CSU 2013/14 GF Final Budget Act Appropriation was $2,330,500,000 and is adjusted to include the estimated 2013/14 employer-paid retirement adjustment of $16,340,000.

2 Includes tuition fee revenue and other CSU Operating Fund fee revenue reduced by the total amount of tuition fee discounts from revenue forgone (reference the last table in this section) plus state funded institutional aid of $33.8M. These resources for institutional aid are reported in campus total revenue before discounts. The state funded $33.8M is reflected in the General Fund total.

3 This number included within the 2014/15 Support Budget is an expenditure augmentation of $152,000 at the request of the Center for California Studies, which is a state-funded program administered through the CSU.

4 This represents the change in enrollment patterns and enrollment growth revenue net of tuition fee discounts.

THREE-YEAR BUDGET SUMMARY BY PROGRAM
  2012/13
Actuals
2013/14
Final Budget1
2014/15
Request
Instruction $1,944,262,000 $2,051,277,000 $2,051,277,000
Research 10,231,000 8,228,000 8,228,000
Public Service 10,967,000 9,396,000 9,396,000
Academic Support 497,512,000 508,144,000 508,144,000
Student Services 493,981,000 485,950,000 485,950,000
Institutional Support 588,242,000 614,982,000 614,982,000
Operation and Maintenance of Plant 566,417,000 590,346,000 590,346,000
Student Grants and Scholarships
(without Tuition Fee Discounts)2
28,913,000 25,851,000 25,851,000
Reimbursement 1,000 1,000 1,000
Provisions for Allocation 0 0 334,255,000
Gross Expenditures $4,140,526,000 $4,294,175,000 $4,628,430,000

1 The CSU 2013/14 GF Final Budget Act Appropriation was $2,330,500,000 and is adjusted to include the estimated 2013/14 employer-paid retirement adjustment of $16,340,000.

2 The state appropriates an additional $33.8 million for CSU institutional aid which is used to provide grants that cover tuition fees for students with need. The student aid provided by the state that funds student access is used for student instruction and is reflected as an expense in the Instruction program totals.

THREE-YEAR SUMMARY OF TUITION FEE DISCOUNTS AND TUITION FEE WAIVERS/REVENUE FORGONE
  2012/13
Actuals
2013/14
Final Budget
2014/15
Request
Tuition Fee Discounts
(Forgone from Tuition Fees)1
$600,847,000 $602,643,000 $602,643,000
Tuition Fee Discount Adjustment from Enrollment Growth 0 0 22,177,000
Tuition Fee Waivers2 60,925,000 60,925,000 60,925,000
Total Tuition Fee Discounts and Waivers/Revenue Forgone $661,772,000 $663,568,000 $685,745,000

1 Tuition Fee Discounts cover tuition fees for eligible students with financial need. Amounts awarded reflect forgone tuition fee revenue for the CSU. There is an additional $33.8 million of state funded institutional aid funded by General Fund appropriation.

2 Includes the campus tuition fee waivers reported annually in Enrollment Reporting System Students (ERSS) database (Waiver Codes 01-08). Amounts awarded reflect forgone tuition fee revenue for the CSU.