2015/16 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 2015/16 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 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 2015/16 budget plan increase of $269.0 million would bring the CSU’s annual support budget to approximately $5.1 billion, with approximately $2.1 billion from tuition fee and other fee revenues (net of financial aid) and a requested state appropriation of almost $3.0 billion. As shown in the summary, it is estimated that additional tuition fee revenues generated by enrollment growth will total $52.4 million. This revenue, combined with a recommended increase of state support of $216.6 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 2015/16 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.

THREE-YEAR BUDGET SUMMARY
Table 1: Support Budget 2013/14
Actuals
2014/15
Final Budget1
2015/16
Request
General Fund Appropriations $2,255,596,000 $2,455,702,000 $2,647,312,000
Net Tuition Fee and Other Fee Revenue2 2,144,688,000 2,045,274,000 2,097,691,000
Total Support Budget $4,400,284,000 $4,500,976,000 $4,745,003,000

Table 2: Maintenance and Infrastructure Needs 2013/14
Actuals
2014/15
Final Budget1
2015/16
Request
General Fund Debt Service
Payments on Existing Facilities3
$90,104,000 $296,316,000 $313,944,000
Budget Plan: Maintenance and Infrastructure Needs 0 $10,000,000 $25,000,000
Total Maintenance and Infrastructure Needs $90,104,000 $306,316,000 $338,944,000
Enrollment, Programs, and Operations (Support Budget) $191,406,000
Center for California Studies4 204,000
Total General Fund Support Budget Appropriation Increase $191,610,000
Net Tuition Fee Revenue Adjustments5 $52,417,000
Maintenance and Infrastructure Needs Appropriation Increase $25,000,000
Total Sources of Revenue $269,027,000

Table 3: Sum of Tables 1 & 2 2013/14
Actuals
2014/15
Final Budget1
2015/16
Request
Total Support Budget $4,400,284,000 $4,500,976,000 $4,745,003,000
Total Maintenance and Infrastructure Needs 90,104,000 306,316,000 338,944,000
Grand Totals $4,490,388,000 $4,807,292,000 $5,083,947,000

1 The CSU 2014/15 GF Final Budget Act Appropriation (support budget) was $2,399,439,000, net of $296,316,000 for maintenance and infrastructure. Additionally, the state-funded 2014/15 employer-paid retirement adjustment of $66,263,000 is added to the GF support budget total.

2 Includes tuition fee and other fee revenue reduced by total tuition fee discounts from revenue forgone (reference table 4).

3 A major change in the CSU budget appropriation beginning in 2014/15 is the fold in of state general obligation bond debt service payments ($197.2M) into the CSU main appropriation and movement of CSU lease revenue bonds debt service from a separate appropriation to the CSU main appropriation item ($99.1M), which the state will increase $7.6M to $106.7M in 2015/16.

4 This expenditure augmentation of $204,000 is included at the request of the Center for California Studies, which is a state-funded program administered through the CSU.

5 This represents revenue to be collected from an increase in funded enrollment net of tuition fee discounts.

THREE-YEAR SUMMARY OF TUITION FEE DISCOUNTS AND TUITION FEE WAIVERS/REVENUE FORGONE
Table 4 2013/14
Actuals
2014/15
Final Budget
2015/16
Request
Tuition Fee Discounts
(Forgone from Tuition Fees)1
$619,464,000 $644,191,000 $644,191,000
Tuition Fee Discount Adjustment from Increase in Funded Enrollment 0 0 13,175,000
Tuition Fee Waivers2 65,735,000 65,735,000 65,735,000
Total Tuition Fee Discounts and Waivers/Revenue Forgone $685,199,000 $709,926,000 $723,101,000

1 Tuition Fee Discounts cover tuition fees for eligible students with financial need. Amounts awarded reflect forgone tuition fee revenue for the CSU.

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.

THREE-YEAR BUDGET SUMMARY BY PROGRAM
Table 5 2013/14
Actuals
2014/15
Final Budget
2015/16
Request
Instruction $2,091,171,000 $2,178,351,000 $2,178,351,000
Research 11,103,000 8,586,000 8,586,000
Public Service 11,167,000 10,012,000 10,012,000
Academic Support 535,618,000 550,540,000 550,540,000
Student Services 530,168,000 535,500,000 535,500,000
Institutional Support 643,076,000 671,508,000 671,508,000
Operation and Maintenance of Plant1 635,379,000 820,847,000 828,475,000
Student Grants and Scholarships
(without Tuition Fee Discounts)2
32,706,000 31,948,000 31,948,000
Provisions for Allocation 0 0 269,027,000
Gross Expenditures $4,490,388,000 $4,807,292,000 $5,083,947,000

1 2015/16 operations and maintenance of plant includes the $7.6M state increase in lease revenue bond debt service.

2 Amount is reduced by the tuition fee discounts (revenue forgone) as shown in table 4.