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CSU Budget Office

1998-1999 Support Book 2 Documentation

Mandatory Costs: State University Grants

Although CSU will experience a decline in revenue collections in 1998/99, General Fund appropriations will be provided in accordance with AB 1318 to keep State University Grant support at the 1997/98 funding level. Because CSU will receive restoration for revenue lost as a result of the AB 1318 fee reduction for undergraduate students, a fee revenue increase for enrollment growth has been calculated for the 1998/99 fiscal year. CSU budget policy requires that one-third of this new revenue above the revised 1997/98 base be set aside for financial aid. Consequently, despite the overall revenue decline, CSU will increase funding for State University Grants by approximately $4.9 million in 1998/99 if its 10,320 FTES enrollment growth request is funded by the state. If only the 1 percent compact enrollment commitment is funded, CSU state university grant funding will increase by approximately $1.6 million based on enrollment growth of 2,580 FTES.

CSU revenue estimates are based on aggregate enrollment for the entire system. Once campus enrollment targets for the fiscal year are approved, the CSU revenue estimate will be revised on the basis of campus-specific enrollments. There will be a corresponding adjustment in the State University Grant calculation when Final Budget allocations are made to reflect changes in CSU revenue estimates.