CSU and Cal Poly Budget Development

1
CSU and Cal Poly Budget Development

• Definitions
• CSU Budget Development
• Cal Poly Budget Development
• Summary of Cal Poly General Fund Sources and Uses

2
Definitions

• Cal Poly Legal Business Entities
• Enterprise Funds
• Funds
• Monies or revenue
• Legal accounting entities
• Program Areas

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Cal Poly Legal Entities

• California Polytechnic State University
• Property of the State of California
• California Polytechnic State University
  Foundation
• Private non-profit corporation and auxiliary to
  University
• Associated Students, Inc
• Private non-profit corporation and auxiliary to
  University

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Enterprise Funds

• A fund established to finance and account for the
  acquisition, operation, and maintenance of
  governmental facilities and services which are
  entirely or predominantly self-supporting by user
  charges or where the governing body of the
  governmental unit has decided that periodic
  determination of revenues earned, expenses
  incurred, and/or net income is appropriate. For
  example, government owned utilities and hospitals
  are ordinarily accounted for by enterprise funds.

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Funds

• Monies or revenues
• Legal accounting entities created, defined and
  abolished by acts of the state legislature
• General Fund - State tax revenues and student
  fees
• Lottery Education Fund - Portion of cash
  generated from the State of California State
  Lottery tickets

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Funds (Continued)

• Dormitory Revenue Fund-Housing (enterprise fund)
  - Revenue generated from license fees paid by
  dormitory residents and must be used exclusively
  for the self-supporting housing program
• Dormitory Revenue Fund-Student Union (enterprise
  fund) - Revenue generated from the mandatory
  University Union fee paid by all students and are
  used exclusively for the self-supporting Julian
  A. McPhee University Union facilities and related
  student programs

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Funds (Continued)

• Parking Revenue Fund (enterprise fund)-Revenue
  generated from the sale of parking permits and
  fines paid for citations issued. Parking permit
  revenue must be used to maintain parking lots and
  parking staff, while citation income must be used
  for administration of citations and alternate
  transportation
• Continuing Education Revenue Fund (enterprise
  fund)- Generated by student fees for enrollment
  in Continuing Education courses. Funds must be
  used for self-supporting instruction in the
  Continuing Education program

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Funds (Continued)

• Other Student Fees - The IRA Fee, Health Facility
  Fee, ASI Fee are mandatory registration fees paid
  by all student. Each fee has its own separate
  fund which is used for a specific purpose.
• Capital Outlay - Generated from two sources of
  funds- state tax revenues appropriated by the
  state legislature or the proceeds from the sale
  of bonds. The funding must be used for the
  construction projects specified.
• Cannot co-mingle revenues for different funds

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Program Areas

• Refers to the lowest level Cal Poly Base Budget
  is maintained
• Example College of Agriculture, Fiscal
  Services, Utilities

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CSU Budget Redesign

• Brought on by economic recession in early 90s
• Budget Formula no longer effective
• Base budgets never to be recalculated
• Broad base calculations for new funding only

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Allocation Processes - New Funding Only

• State allocation to CSU
• (Compact I, II, etc.)
• CSU allocation to Campus
• Enrollment
• Compensation
• One-time CSU Initiatives
• Cal Poly allocation to Program areas
• Sources and Uses

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CSU Projections of Cal Poly Revenue
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Cal Poly Revenue Projections
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CSU Funds for Enrollment Growth
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1997-98 New Funds to Cal Poly
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1997-98 Summary of Uses of New Funds to Cal Poly
(5,497,872)
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Sample Allocation Process - 4 Compensation

• Compensation Allocation from state to CSU
• Establishes the pool from which each collective
  bargaining unit negotiates GSI, SSI and
  performance pools
• based on 4 increase over prior year payroll
  expenditures for the CSU
• Allocation from CSU to Cal Poly
• based on Cal Polys prorata share of systemwide
  payroll expenditures for the most recent
  completed fiscal year

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Sample Allocation Process - 4 Compensation (Cont)

• Allocation from Cal Poly to Program Areas
• GSI and SSI based on estimated costs for the year
• Performance Pools and MPP are allocated based on
  actual award
• Amount of the performance pool is established by
  each bargaining unit

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Cal Poly Decentralized Budget

• Brought on by economic recession in early 90s
• Management wanted to decentralize fiscal
  authority to Program Areas and direct resources
  out to the decision points
• Cal Poly acquired a human resource system
• Sources and Uses approach implemented for new
  funding

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Cal Poly - Sources and Uses of Funds Analysis

• Pools all revenue changes, plus or minus
• allows for one-time and ongoing allocations
• allocations based on institutional plans,
  management recommendations and consultations with
  Academic Senate, UPBAC, Staff Council, and ASI
• Allocations are not final until approved by the
  President
• (Current year Sources and Uses available on BPA
  web page www.calpoly.edu/bpa/)

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Sources and Uses - Changes to the 97-98 Base
Budget
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1997-98 Cal Poly General Fund Sources (Inclusive
of NEW sources for 97/98)
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1997-98 Cal Poly General Fund Allocated Uses
(Inclusive of NEW uses for 97/98)
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UPBAC Briefing, Part II

• Cal Polys Organizational and Advisory Structure
  for Planning and Budgeting
• Cal Polys Budget Planning and Development
  Process
• Sources and Uses at Cal Poly
• FY 97-98 Example

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Review of Consultative Process

• Management Staff
• Deans Council
• Strategic Management Group (SMG)
• UPBAC
• Academic Senate
• ASI
• Staff Council
• Collective Bargaining

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The Budget Cycle

• Planning Phase
• Revisit institutional mission and vision
• Reformulate near-term institutional priorities
• Budget Development Phase
• Sources and uses of funds analysis
• Administration of approved budgets
• Record budgets in sub-ledger accounts

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Comparing Budget Stages
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Sources and Uses - Changes to the 97-98 Base
Budget
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Components of Sources and Uses

• Changes to Base
• Sources
• Uses
• Changes to Non-recurring Funds
• Sources
• Uses
• Unmet Needs

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Changes to Base - Sources

• State Tax Revenues
• Campus Fee Revenue
• Cal Poly Unscheduled Base
• Other possible changes
• Redistribution of Existing Base
• Other (Re-directions, etc.)

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Changes to Base - Uses

• CSU Mandated Uses
• Compensation
• Special Repair
• Other
• Cal Poly Uses

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• Cal Poly Uses- (Cont)
• Reaffirm of Continuing Commitments
• Centrally Administered Budgets
• SUG
• Utilities
• Risk Pool
• Full Year Costs of Prior Year Commitments
• Legal Judgements

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Changes to Non-Recurring Funds

• Sources
• Unspent balances from prior year
• Uses
• Reaffirm Continuing Commitments
• Centrally Administered Budgets
• Full Year Cost of Prior Year Commitment
• Legal Judgments

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Unmet Needs Process

• Annual restatement of institutional and
  divisional priorities
• Two general categories of Unmet Needs
• Continuing
• Temporary

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• Listing of Attachments
• Summary of 1997-98 Sources and Uses
• Changes to the 1997-98 Base Budget
• Changes ot the 1997-98 Non-recurring funds
• Campus allocation for Unmet Needs
• Consultative Process Flow
• Planning and Budget Development Process Flow