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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