Sources of Revenue | 2015/16 CSU Support Budget Executive Summary | Budget | CSU
2015/16 Executive Summary

Sources of Revenue

The 2015/16 California State University Support Budget proposal includes a $216.6 million increase to the currently authorized CSU $2.8 billion General Fund base for a total of almost $3.0 billion.The 2015/16 California State University Support Budget plan includes a $216.6 million increase to the currently authorized CSU $2.8 billion General Fund base for a total of almost $3.0 billion. The $216.6 million General Fund requested increase for 2015/16 budget is comprised of the following:

  • $216,406,000 to fund 3 percent enrollment growth, programs, and operations; and
  • $204,000 to fund annual cost increases for the state Center for California Studies Capitol Fellows Program.

The CSU 2015/16 budget plan also reflects tuition fee revenue from the recommended 3 percent California resident funded student enrollment (10,382 FTES). The net change in tuition fee revenue, after adjusting for forgone revenue associated with financial aid, is $52,417,000.

The total 2015/16 support budget plan increase in sources of funds is $269.0 million.

State General Fund Increase $216,610,000
Tuition Fee Revenue Adjustments $52,417,000
TOTAL $269,027,000

Programs and Operations (top)

The 2015/16 CSU budget is based on a General Fund increase of $269.0 million and tuition fee revenue adjustments of $52.4 million to fund the cost of budget plan expenditure augmentations for various needs, including mandatory costs, funded student enrollment, employee compensation, student success and completion, and maintenance and infrastructure needs. The General Fund increase also includes funding for the Center for California Studies. These cost increases are detailed in the next section.

3 Percent Funded Enrollment (top)

The 2015/16 budget plan augmentation supports a 3 percent increase in resident student enrollment to continue to address California’s higher education demand.

Many CSU campuses continue to experience record levels of applications and enrollments. The CSU had to turn away more than 26,000 eligible undergraduate applicants in fall 2013. Demand for the CSU has remained high at more than 760,000 undergraduate applications for admission to the fall 2014 term. Funding restrictions have constrained the ability of the CSU to admit eligible applicants as shown in the following chart.

Eligible Undergraduate Applicants—California Residents

Eligible Undergraduate Applicants - California Residents

ELIGIBLE UNDERGRADUATE APPLICANTS - CALIFORNIA RESIDENTS
  Fall 2009 Fall 2010 Fall 2011 Fall 2012 Fall 2013
Admitted 193,928 173,562 178,615 194,564 212,152
Not Admitted 10,435 28,803 21,697 22,123 26,430

Increasing enrollment from the current state-assisted level of 346,050 California resident FTES by 3 percent to a new level of 356,432 is entirely feasible, given adequate support from the state. Continued restoration to meet demand of baccalaureate and master’s instruction at the CSU is a vital investment by the state for the sake of student access and for the sake of California’s further economic recovery and workforce development. Simply on the basis of application demand, an increase in state-assisted enrollment of more than 3 percent would be justified. However, due to the lead times and operational complexities of implementing funded enrollment growth at the campuses, this request is limited to 3 percent for the 2015/16 fiscal year.

Based on the state-approved marginal cost methodology, the 2015/16 estimated net marginal cost rate of instruction, after forgone financial aid, has been calculated at $9,942 per FTES. This amount times 10,382 FTES (3 percent) equals an estimated cost of $103.2 million. The General Fund portion of marginal cost rate of instruction is $7,405 per FTES, which equates to $76.9 million funded from the state General Fund appropriation. The remainder would be offset by the estimated tuition fee revenue (net of financial aid) generated by the additional enrollment. The 10,382 FTES translates into more than 12,000 additional students.

2015/16 Tuition Fee Revenue (top)

A 3 percent increase in resident FTES enrollment (10,382 FTES) is projected to generate $52.4 million in new tuition fee revenue, after adjusting for forgone revenue associated with students receiving CSU Tuition Fee Discounts.