CSU Trustees Approve $378.6 Million Budget Request Increase for 2003-04

Request focuses on Accommodating Increasing Numbers of Students, and Retaining and Recruiting Additional Faculty and Staff

(Nov. 1, 2002) -- The California State University Board of Trustees has approved a budget request for a $378.6 million increase in the CSU 2003-04 General Fund state appropriation.

"This budget proposal is weathering the double whammy," said CSU Chancellor Charles B. Reed. "It stretches the university resources to absorb the double impact caused by decreasing state resources due to the grim California economy and the increase in university expenses due to skyrocketing enrollment."

The CSU intends to allocate $182.2 million to ensure access to 20,000 additional students expected to enroll in 2003-04. In addition, $193.6 million has been earmarked for increases in faculty and staff compensation, including a $32.2 million increase in health benefits and insurance premiums. Together, these two priorities represent 92 percent of the planned budget increase in 2003-04.

In total, CSU anticipates a $408.7 million increase in its state budget. This increase is composed of $262.5 million in new state appropriations, the restoration of $115.8 million of unfunded Partnership revenue in 2002-03, and $30.3 million in student fee revenue associated with state supported enrollment growth.

According to Richard West, CSU executive vice chancellor and chief financial officer, the request includes $292.8 million in ongoing costs within the Higher Education Partnership Agreement with Gov. Gray Davis, and $115.8 million in funds above the Partnership for new or expanded goals important to the overall educational mission of the university.

Highlights of the Support Budget request approved by trustees include:

  • $78.6 million for mandatory obligations, including $32.2 million for health benefit increases
  • $137.6 million for 5% enrollment growth, year-round enrollment support, and student financial aid
  • $154.1 million for a compensation increase pool for all employees, effective July 1, 2003
  • $5 million to finance technology-related network equipment and operations
  • $10 million to address long-term shortfalls in funding for library acquisitions
  • $11.5 million to continue reductions in the backlog of deferred maintenance
  • $5.9 million to improve access to academic programs important to California's workforce and economic development
  • $35.6 million to fund first-year costs associated with CSU's plan to increase the percentage of tenured and tenure-track faculty
  • $2.9 million to finance fixed costs needs associated with the enrollment growth at CSU off- campus centers
  • $26.5 million for non-faculty compensation adjustment.

The budget request assumes that the state will return $38 million in one-time reductions made in 2002-03 to the CSU base budget.

The CSU 2003-04 support budget is based on full funding of the Partnership Agreement the CSU has with the governor and the state's provision of funds to backfill the revenue that would have been generated by a fee increase.

The budget proposal, which provides a total of $3 billion from general fund appropriations, has now been sent to the Department of Finance to be included in the state budget proposal.

The California State University is the largest system of senior higher education in the country, with 23 campuses, nearly 407,000 students and 44,000 faculty and staff. Since the system was created in 1961, it has awarded about 2 million degrees. The CSU is renowned for the quality of its teaching and for the job-ready graduates it produces. Its mission is to provide high-quality, affordable education to meet the ever-changing needs of the people of California. With its commitment to excellence, diversity and innovation, the CSU is the university system that is working for California. See www.calstate.edu.

Contact: Clara Potes-Fellow, (562) 951-4806,cpotes-fellow@calstate.edu

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Last Updated:1 November 2002

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