20082009 Cal Poly Budget Presentation

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2008-2009Cal Poly Budget Presentation

• UPBAC
• January 2009

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Summary of Budget Reductions prior to Governors
Compact Agreement with the CSU (in Millions)
net of fee increases
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Review of Compact for Higher Education2004-05

• Covers six years 2005/06 through 2010/11
• Adjustments to the base budget
• 3 annual increase for 2005/06 2006/07
• 4 annual increase for 2007/08 2010/11
• An additional 1 annual increase to the base
  budget for 2008/09 2010/11 for equipment,
  technology, libraries
• State will cover annuitant dental benefits,
  retirement contributions and debt service
• Identifies importance of restoring more
  competitive salaries for CSU employees
• 2.5 growth per year through 2010 8,000
  FTES/10,000Headcount per year for CSU

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2005-2006 Final Budget Allocations First Year of
Governors Compact

• 3 Increase in Operating Funds
• Compensation
• Technology
• Deferred Maintenance
• 2.5 Enrollment Growth Funding
• Fee Increase for undergraduate and teacher
  credential students (8) and graduate students
  (10)

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2006-2007 Final Budget Allocations

• 3 Increase in Operating Funds
• Compensation
• Technology
• Deferred Maintenance
• 2.5 Enrollment Growth Funding Fee
• Increase buy-out for undergraduate and teacher
  credential students (8) and graduate students
  (10)

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2007-2008 Final Budget Allocations

• 4 Increase in Operating Funds
• Compensation
• Technology
• Deferred Maintenance
• 2.5 Enrollment Growth Funding
• Fee Increase for undergraduate, teacher
  credential and graduate (10)

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CSU Compensation Funding Shortfall for 2006-2007
and 2007-2008
CSU
Cal Poly
Note Bargaining commitments exceeded funding
with or without the compact. A portion of the
2007-2008 shortfall was effective June 30, 2008
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2008-2009 CSU Budget Negotiations

• Trustees Request
• Based on Governors Compact
• 2.5 for Enrollment Growth 68.9M
• 4 for General Operations 116.9M
• 1 for Core Academic Support 29.2M
• 10 Fee Revenue Augmentation 73.1M
• Governors Budget
• 10 Fee Revenue Increase 73.1M
• Budget Reduction (99.3)M
• Final Budget September 2008
• 10 Fee Revenue Increase 73.1M

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2008-2009 Cal Poly Operating Budget

• The net of the fee increase and the unfunded
  mandatory cost resulted in a funding shortfall
  for Cal Poly of 3,002,082

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Since the 2008-2009 Final Budget.

• October, 2008
• Department of Finance directed state agencies and
  departments of the need to cut 390 million
  statewide.
• For the CSU this amount was 31.3million
• For Cal Poly this amount was 1,653,400
• November, 2008
• Governor proposes an additional 66.3M reduction
  to CSU
• Estimated cut to Cal Poly will be 3,500,000
• Note Cumulative reduction very close to the
  original reduction proposed in the 2008-2009
  Governors Budget (97.6M vs 99.3M)

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Summary of 2008-2009 Budget Reductions
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Situation continues to worsen..
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Legislative Analyst's Office Report to the Joint
Convention of the California Legislature

• December 8, 2008
• 2008-2009 Budget Package (September)
• Flat General Fund spending from 2007-08 to
  2008-09 (103 billion)
• Reliance on one-time solutions
• Assumed 2009-10 operating shortfall of 6 billion
• Updated November Projections
• 28 billion problem
• 9 billion current-year problem
• 19 billion operating deficit in 2009-10

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Governors Special Session Proposals

• Comes close to addressing shortfalls through
  2010-2011

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Legislative Analyst's Office Report to the Joint
Convention of the California Legislature

• If Gap was solved through Tax Increases alone
• 2 cent sales tax increase
• 15 personal income tax surcharge
• 2 percentage point corporate tax rate increase
• If Gap solved through spending reductions alone
• Eliminate funding for UC and CSU
• Eliminate funding for welfare payments
• Eliminate funding for developmental services,
  mental health, and in-home supportive services

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2009-2010 Governors Budget CSU(in millions)

• 10 Fee Revenue Increase 131.6
• Special Session Reductions -66.3
• BSN Nursing Program Increase 3.6
• Mandatory Costs -84.6
• Health, New Space, Energy, Financial Aid
• Total Surplus/Deficit (15.7)

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Cal Poly Funding vs. National Average
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Cal Poly SUF vs. State Appropriation
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2005-06 of High Cost Program SCUs to Campus
Total
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Fee Revenue of Budget

• National Average excluding California is 42.5
• California's Average is 30.3
• California would have to increase student fees by
  approximately 69 to equal the national average

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Undergraduate Resident Student Fees at
Comparison Universities
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Cal Poly Budget Goals and Principles

• Goals
• Structurally balanced budget supporting
• High quality academic programs.
• High quality faculty, students, and staff.
• Academic programs consistent with polytechnic
  mission and the needs of the State of California.
• Student success demonstrated by high retention
  and completion of degrees in a timely manner.
• Support services that demonstrate an adherence to
  professional and ethical standards.
• Exemplary care of grounds and facilities.
• Compliance with laws, policies, and quality
  service practices.

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Cal Poly Budget Goals and Principles

• Principles
• The Cal Poly budget is decentralized.
• Program decisions and budget management are the
  responsibilities of those assigned with the
  management and leadership of their campus
  operating units.
• Funding for program priorities is to be addressed
  first within the vice presidential divisions and,
  if needed, then through the campus Sources and
  Uses process.
• The President, in consultation with the vice
  presidents, approves new funding priorities or
  funding reductions in the Sources and Uses
  process.
• Budget and enrollment decisions are made with the
  entire campus in mind, including the impact on
  auxiliaries.
• Enrollment must be consistent with available
  resources, including the campus-based fee
  revenue.
• The University should adhere to an enrollment
  policy that stabilizes enrollments and minimizes
  enrollment oscillations.
• The University budgetary process should be open
  and include all constituencies.
• Faculty, students, and staff are entitled to
  timely budget, financial, and enrollment
  information.