1998-1999 Support Book 2 Documentation
Major Funding Issues: Price Increase/Energy Bonds
There were several areas of budget consideration that did not receive specific funding in the 1998/99 budget plan due to the competing priorities for limited resources.
CSU uses price factors contained in annual budget letters issued by the Department of Finance to calculate the mandatory cost increase for inflation (growth in the costs of non-salary operating expenses and equipment). This calculation yields a cost requirement that has typically exceeded the amount CSU has been able to include in its budget plan due to the competing needs for limited revenue growth. The price increase calculation for 1998/99 totals approximately $14.4 million. However, funding has not been proposed in the budget plan. Inflationary costs have increased, in part, due to recent adjustments in the Higher Education Price Index Factor and base budget growth in operating expenses and equipment.
Financed through the state's Public Works Board, energy bonds provide the campuses with assistance in financing energy conservation and efficiency projects. During 1998/99, it is expected that CSU will pay $7.3 million for multiple projects at 14 campuses. This is an increase of slightly more than $1 million due to a new project at the Los Angeles campus. Funding for energy bond payments is provided by the participating campuses and is not included in the 1998/99 budget plan.
The following charts have been prepared to identify 1998/99 Price Increase and Energy Bond costs. Campuses must fund these increases from total resources available.