Sources of Revenue | 2013/2014 CSU Support Budget Executive Summary | Budget | CSU
2013/14 Executive Summary

Sources of Revenue

The 2012/13 California State University Support Budget includes a $332.9 million increase to the current CSU $2.1 billion General Fund (GF) base for a total of $2.4 billion.The 2013/14 California State University Support Budget includes a $371 million increase to the currently authorized CSU $2.2 billion General Fund (GF) base for a total of more than $2.5 billion. This level of state funding represents a modest increase to move the CSU towards traditional state-supported funding levels. The $371 million General Fund requested increase for 2013/14 budget is comprised of the following:

  • $371,366,000 to fund 5 percent enrollment growth, programs, and operations; and
  • $504,000 to fund annual cost increases for the state Center for California Studies Capitol Fellows Program.

The CSU 2013/14 budget plan also adjusts tuition fee revenue for changes in student enrollment patterns, such as changes in relative numbers of graduate and undergraduate students and full-time and part-time students. It also reflects tuition fee revenue from the recommended 5 percent California resident student enrollment growth. The net change in tuition fee revenue (after adjusting for forgone revenue associated with financial aid) due to these factors is $69,900,000 as summarized below:

  • Change in Enrollment Patterns - ($11,066,000)
  • 5 Percent Enrollment Growth - $80,966,000
    (16,586 FTES Base Revenue)

The total 2013/14 support budget plan increase in sources of funds is $441.8 million.

State General Fund Increase $371,870,000
Tuition Fee Revenue Adjustments $69,900,000
TOTAL $441,770,000

General Fund

Programs and Operations (top)

The 2013/14 CSU budget request is based on a General Fund increase of $371.9 million and tuition fee revenue adjustments of $69.9 million to fund the cost of budget plan expenditure augmentations for mandatory costs, enrollment growth, employee compensation, academic programs, urgent maintenance, technology, and instructional equipment needs. The General Fund increase also includes funding for the Center for California Studies. These cost increases are detailed in the next section.

5 Percent Enrollment Demand/Growth (top)

The 2013/14 budget plan General Fund augmentation supports a 5 percent increase in state-assisted enrollment. This funding will help to begin to restore the CSU's ability to address California's higher education demand and increase CSU student enrollment above its fiscally-constrained 2012/13 base.

Many CSU campuses are experiencing record levels of applications and enrollments. Demand for transfer from community colleges to the CSU remains high. In spite of this, state budget cuts have constrained the ability of the CSU to admit eligible applicants. For example, in fall 2011, the CSU had to turn away approximately 22,000 eligible high school seniors and community college transfers. In addition, state budget cuts forced the CSU to close the spring 2013 application cycle (with some narrow exceptions at ten campuses). This will cause transfer applications to be even higher in 2013/14. Increasing enrollment from the current state-funded level of 331,716 California resident FTES by 5 percent to a new level of 348,302 is entirely feasible, given adequate support from the state.

Restoring full access to baccalaureate and master's instruction at the CSU is a vital and urgently needed investment by the state for the sake of student access and for the sake of California's economic recovery and workforce development. Simply on the basis of application demand, an increase in state-assisted enrollment of more than 5 percent would be justified. However, due to the lead times and operational complexities of implementing enrollment growth at the campuses, this request is limited to 5 percent for the 2013/14 fiscal year.

Based on the state-approved marginal cost methodology, the 2013/14 estimated gross marginal cost rate of instruction has been calculated at $10,840 per FTES. The General Fund share of this rate is $6,504. The tuition fee revenue share of this rate is $2,891, which reflects a one-third set aside ($1,445) for forgone revenue associated with student financial aid.

2013/14 Total Marginal Cost of Instruction $10,840
Less: Forgone Financial Aid ($1,445)
2013/14 Marginal Cost after Forgone Financial Aid $9,395
Net Tuition Fee Revenue ($2,891)

2013/14 Tuition Fee Revenue (top)

AB 1502 provides a General Fund appropriation of $125 million to the CSU in 2013/14 contingent upon enactment of Proposition 30 in the November 2012 election and maintaining tuition fee rates for 2012/13 at the same levels in effect for the 2011/12 academic year. This rollback of rates results in a revenue reduction of $129.4 million in 2012/13 and $131.7 million in 2013/14.

A negative revenue adjustment of $11.1 million will be reflected in 2013/14 campus revenue assumptions due to changes in California resident and nonresident enrollment patterns used in 2012/13 revenue calculations. CSU tuition fee revenue projections are based on the most recent past-year student classification and fee paying distribution patterns, and adjustments are made annually to account for the year-to-year change in revenue assumptions. The most recent past-year data available for 2013/14 calculations are for the 2011/12 college year.

Additionally, a 5 percent increase in resident FTES enrollment (16,586 FTES) is projected to generate $81 million in new tuition fee revenue, which reflects a one-third set-aside of forgone revenue associated with students receiving CSU Tuition Fee Discounts.