CSU Trustees Approve 2006-07 Budget and Fee Increase Proposal

Contact: Colleen Bentley-Adler, caba@calstate.edu, 562-951-4800

(October 27, 2005)— The California State University Board of Trustees today approved a proposed 2006-07 budget request, which, if funded by the state, would mean an increase of $235.5 million for the system and its 23 campuses.

Consistent with the second year funding in the Compact for Higher Education with Gov. Schwarzenegger, the CSU proposes a 3 percent increase in the state General Fund appropriation and a 2.5 percent increase in student enrollment, which would provide access to an additional 10,000 students. CSU’s current General Fund budget is $2.6 billion.

The budget request also proposes to increase the State University Fee for undergraduate and credential students by 8 percent, and the graduate student fee by 10 percent. The fee increases also are consistent with the governor’s Compact. Even with the fee increase, CSU student fees are among the lowest in the entire country.

“The budget approved today is a step toward helping the California State University provide salary increases for our employees and access to an additional 10,000 students next year,” said Richard West, executive vice chancellor and chief financial officer. “The state is facing a tough budget environment, so we appreciate the governor’s Compact with higher education this year and look forward to continued funding in 2006/07, which will help offset the $500 million cut the CSU experienced during 2002-05.”

State support revenue for 2006-07 is expected to increase by $235.5 million: Revenue from the state general fund will be $128.5 million and revenue from the increase in student fees will be $107 million.

The CSU will set aside 33 percent of the student fee revenue to provide $32.7 million in additional funds for the State University Grant (SUG) financial aid program. This will allow the CSU to provide financial aid to an additional 5,100 students.

The recommended budget plans provides $77.4 million for a 3 percent compensation pool and $16.5 million to begin the first-year of a five-year plan to close employee salary gaps. The budget also include $10 million for long-term needs to support funding for technology ($5million), libraries ($2.5 million) and deferred maintenance ($2.5 million).

CSU expenditures will include mandatory costs of $33.6 million to fund increases in health benefits, new space, service-based salary increases for certain employee groups, and higher energy costs.

State University Fee Increases

Assuming the 2006-07 proposed annual undergraduate fee of $2,724 and including the 2005-06 average campus-based fees of $644, the total 2006-07 undergraduate fee of $3,368 would still be among the lowest in the country.

The current 2005-06 annual State University Fee is $2,520. Adding in the $644 average campus-based fees, current students pay $3,164 annually.

The 2006-07 proposed teacher credential fee is $3,156 and the graduate fee is $3,414. Current teacher candidates pay a total of $3,566, while current graduate students pay $3,746.

See pages 6-7 of the Finance Committee Agenda/Student Fee Schedule for additional details about the 2006-07 student fee increases.

Lottery Revenues

The 2006-07 lottery revenues are estimated to be $51 million. Funds are used to support the CSU’s forgivable loan for doctoral programs, the pre-doctoral program, CSU Summer Arts Program and various campus programs.

The California State University is the largest system of senior higher education in the country, with 23 campuses, more than 400,000 students and 42,000 faculty and staff. Since the system was created in 1961, it has awarded about 2 million degrees, 82,000 annually. 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.

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Last Updated: October 27, 2005

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