CSU Prepares $245.4 Million Requested 2002/03 General Fund Increase

The California State University will present to its Board of Trustees a 2002/03 budget request that reflects a $245.4 million, or a 9.4 percent increase in General Fund dollars over the current year. With the addition of $23.7 million in fee revenue projected as a result of new and year-round operations enrollment growth, the request would bring the total CSU base budget to $3.7 billion.

The Board will hold a teleconference on Oct. 25 to finalize the CSU's request so that it may be submitted to the Department of Finance for inclusion in the governor's budget.

"This is a budget that is realistic about the present and optimistic about the future," said CSU Chancellor Charles B. Reed. "With the slowing of the state's economy, more students are turning to higher education. Our budget must address the continuing pressure on our campuses to provide high-quality services for a growing student population."

The budget request calls for full funding of the CSU's Partnership Agreement with the governor, an agreement that provided specific funding increases for enrollment and compensation. "The Partnership ensures that we can serve all of our students and reward our employees for their efforts," said Richard West, executive vice chancellor and chief financial officer. "It is important for the CSU to submit a full partnership level budget."

The CSU's budget request recommends an additional $132 million for enrollment growth and enrollment-related services. It projects a 4 percent increase in enrollment, or an additional 12,030 full-time equivalent students, for 2002/03. Preliminary estimates suggest that the CSU, experiencing continuing enrollment growth, has already exceeded this year's funded enrollment targets by more than 2 percent.

The budget request also calls for an additional $89.5 million for a 4 percent compensation increase for CSU employees. In 2001/02, the CSU had requested 6 percent for compensation increases but, in a difficult budget year, received only 2 percent.

Other highlights from the 2002/03 budget request include:

  • $10 million for academic programs that boost workforce/economic development;
  • $10.1 million to improve student advising and administrative services;
  • $10.7 million for health benefit increases;
  • $14 million for technology-related network equipment and operations;
  • $6 million for library acquisitions.

The Board of Trustees also will consider a 2002/03 lottery revenue budget of $42.8 million with a $5 million reserve. The lottery budget supports the forgivable loan/doctoral incentive program, California pre-doctoral program, CSU summer arts program and many campus-based instructional programs.

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Last Updated: 22 October 2001

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