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California State University Board of Trustees Proposed
2013-14
Support Budget
AS-3097-12/FGA (Rev)
RESOLVED: That the Academic Senate of the California State University (ASCSU) support the California State University (CSU) Board of Trustees (BOT) 2013-14 Proposed Support Budget (below); and be it further
RESOLVED: That the ASCSU urge the BOT to convey to the Governor, the Legislature, and the public that this request represents only a partial restoration of cuts experienced by the CSU in recent years and would leave the CSU far short of the resources necessary to fulfill its mission; and be it further
RESOLVED: That the ASCSU distribute this resolution to the CSU Board of Trustees, the Chancellor of the CSU, and the Governor of the state of California.
RATIONALE: The CSU has suffered drastic cuts in state support in the past few years – almost a billion dollars in the last three years. Instead of budget requests being honored, budget cuts have been the norm requiring the CSU BOT to rely on unpredictable and large tuition increases, which have had a damaging effect on both access to the CSU and the quality of the education. In addition, lasting damage to CSU facilities, equipment and physical plant is occurring due to lack of funds for maintenance over many years. This will result in further deterioration in quality.
According to the Chancellor’s Office – The expenditure budget request is tempered by recognition of the state’s ongoing fiscal challenge, yet represents a credible statement of the university’s key funding needs.
The planning approach is consistent with the instruction by the Department of Finance that all state agencies formulate budgets for the 2013-14 fiscal years with the assumption that the voters will approve Proposition 30, which they have done.
The planning approach takes into account the Board’s action to “roll back” tuition rates to the 2011-12 academic year levels, since Proposition 30 has been approved. The legislature and governor have already enacted a General Fund appropriation of $125 million to the CSU (AB 1502), which would become effective in 2013-14. This appropriation is treated as part of the budget “baseline,” and the amount of $441.8 million is in addition to it.
The revenue plan strikes a balance between a reasonable amount that can be requested from the state and an amount that can be generated by tuition revenues associated with enrollment growth.
The 2013-14 budget requests would provide the Governor and the Legislature with an achievable plan for reinvestment in the CSU.
2013-14 Board of Trustees Support Budget Request
Expenditure Plan: Summarized below is the expenditure plan, shown as increases to the CSU’s current baseline from state funds, tuition, and system-wide fees.
| Mandatory costs (health benefits, new space, energy) |
$48.2 million |
| Compensation increase (3% “pool”) |
$86.3 million |
| Graduation Initiative/Student Success |
$58 million |
| 5% Enrollment Growth |
$155.8 million |
| Urgent maintenance needs |
$50 million |
| Information technology infrastructure upgrade/renewal |
$20 million |
| Instructional equipment replacement |
$23 million |
| Center for California Studies |
$0.5 million |
Total ongoing expenditure change
The expenditure plan would bring annual spending for the CSU to almost $4.5 billion.
Revenue Plan: The plan for increased revenue would provide the resources needed to meet the expenditure plan.
| State General Fund Increase |
$371.9 million |
| Net tuition revenue from enrollment growth |
$81 million |
| Negative adjustment for change in enrollment patterns |
$(11.1) million |
Total revenue increase
Approved Unanimously– November 9, 2012
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