2006/07 Support Budget

Special Funds

Auxiliary Programs

Auxiliary organizations are separate legal entities authorized in the Education Code to provide essential services to students and employees.They operate in association with campuses pursuant to special written agreements, and are authorized to perform specific functions that contribute to the educational mission of the campus.

CSU auxiliary organizations have been in existence for many decades as a necessary supplement to statesupported instructional and administrative activities. The first organization, the Fresno State College Association,was established in 1922. Student associations have operated at San José, San Diego, San Luis Obispo, Chico, Fresno, and other campuses since the early 1920s.The growth of auxiliary organizations has paralleled the growth in size and complexity of the CSU.

These organizations are subject to applicable state and federal laws and regulations. In addition, they operate within the policies established by the CSU Board of Trustees, the chancellor, and the CSU campuses. As of the beginning of the 2005 fall term, there were 87 auxiliary organizations, with one to six per campus, and two systemwide auxiliary organizations. Most of these organizations can be grouped into five major functional categories:

  1. Associated Student Body Organizations: These are student-run organizations that operate such extracurricular activities as student government, student newspapers, athletics, cultural programs, and many other student activities related to the overall educational mission of the campus.


  2. Special Educational Projects: These organizations administer projects that have a direct relationship to the educational process of the campuses and are funded by numerous sources. Major sources of support come from federal, state, and private grants and contracts. Projects are designed to meet the needs of the program sponsor and campus programs.


  3. Student Union Operations: Student union fees collected by the campus are deposited in the Dormitory Revenue Fund Union account to pay for the principal, interest, and other costs of the building.Any surpluses remaining from the student union fees after the bond and other costs are met may become available to the student union auxiliary organization to pay operating expenses.


  4. Commercial Activities: These activities consist mostly of the operation of bookstores, food service, and agricultural projects.Agrarian activities are particularly important to campuses offering instruction involving direct experience with farms, cattle, poultry, etc.


  5. Development Activities: These organizations primarily administer programs related to the management of gifts, bequests, devices, endowments, trusts, and similar funds, as well as programs related to public relations, fundraising, fund management, and similar development programs.

The auxiliary organizations must be self-supporting. They do not receive funding from General Fund sources.They derive revenue from various non-state sources such as contractual arrangements (e.g., federal government), general assessments (e.g., student body fees), and commercial operations (e.g., bookstores). Pursuant to existing laws and policies, the materials, facilities, and services provided by the campus to these separate entities are paid for by the auxiliary organization. Revenue in excess of expenditures for a given period is used to establish working capital and reserves, and to pay for capital expenditures or special campus programs.

All auxiliary organization financial activity is reported yearly. Financial reports are audited annually and later incorporated in the systemwide CSU audited financial statements.

Parking Program

The Parking Program provides campus parking facilities as authorized under the provisions of Section 89701 of the Education Code. The program itself is self-supporting and derives most of its revenues from parking fees paid by students, faculty, staff, and visitors. Additional income is available from interest on retained earnings.

Consistent with CSU objectives for increased accountability at the campus levels, management of all operations of the parking program is decentralized to the campus level.The parking fee revenue is deposited by campus to a campus-specific parking fund, and campuses have the authority to expend those funds directly. Campus spending of the parking fee revenue is restricted to the acquisition, construction, and maintenance of campus parking facilities. Revenues for 2006/07 are projected to be $73.5 million. The projected revenue will be sufficient to cover operating expenditures as well as transfers for debt service payments of bond principal and interest.

To facilitate the trustees’ policy of providing adequate parking throughout the system at the lowest possible fee, every effort is made to minimize operating costs.

 
Parking Program

The 2006/07 proposed budget incorporates reimbursements to the General Fund for supervising and dispatching services provided by the campuses. Expenditures relating to utilities, communications, and support services provided by the General Fund are reflected as direct or indirect costs, as appropriate.

The California State University had a total of 138,035 temporary and permanent spaces as of July 1, 2005. By the end of 2006/07, the projected total number of usable parking spaces is 146,417.

Housing Program

The Housing Program at the CSU provides residential facilities for students.

The State Dormitory Construction Fund was established under the State Revenue Bond Act of 1947, and bonds were initially sold to support the construction of campus housing facilities. In 1957, the legislature approved a residence hall program, which was financed by both state and federal funds.Today, the Housing Program is a self-supporting program deriving its revenues primarily from fees collected for the use of the residence facilities. Funds are used for current operating expenses, maintenance and repair, improvements to facilities, and interest and principal payments on outstanding bonds.After payment of all authorized charges, the balances in any of these funds remain available for future program expenses.

The 2006/07 Dormitory Revenue Fund system housing design capacity at the CSU is projected to total 33,701 spaces.

 
Housing Program

The total projected revenue for fiscal year 2006/07 provides approximately $179.5 million for housing operations. From this amount, approximately $58.4 million is used for debt service for payments of principal and interest on revenue bonds issued to finance construction of student housing and major renovations.

Extended and Continuing Education

CSU campuses have maintained Extended and Continuing Education (self-support) courses, programs, and services for over a century. Originally grounded in service to teachers, Extended and Continuing Education operations have grown to include baccalaureate and graduate degree programs, certificates, and many forms of specialized education and training for business, industry, and government. A variety of instructional technologies, including television and Web-based learning, carry CSU courses to local, regional, and national audiences.

Extended and Continuing Education programming is authorized in Section 89704 of the Education Code. In accordance with Education Code Sections 89704 and 89721(i), revenue collected from Extended Education and Special Session fees may be deposited either in the State University Continuing Education Revenue Fund (CERF) in the state treasury or in a local trust account.While the character and composition of campus Extended and Continuing Education programs vary considerably, most units maintain the following common instructional elements: (1) Special Sessions, (2) Open University/Concurrent Enrollment, (3) Extension Operations, and (4) Non-Credit.

Systemwide self-supporting operations are governed and encouraged by the Board-authorized Commission on the Extended University.

Campus CERF and trust ledgers had a cumulative balance of $68 million at the close of operations on June 30, 2005.


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Last Updated: November 10, 2005