Transcript 2008-09 Budget Crisis - California State University, Fresno

California State University, Fresno
2008-09 Budget Crisis
Maximizing Our Resources
Through Fiscal Responsibility
Budget Process
The Level “A” policy
provides an allocation to
each division based upon
a fixed percentage as
established by President
Welty on April 18, 2007.
Level “B” is the
allocation made from
the Provost/Vice
Presidents to the
Deans/Directors/
Department Heads.
Division
Academic Affairs
%
69.89%
Student Affairs
7.95%
Administration
4.57%
Plant Operations
7.03%
Advancement
1.71%
Athletics
1.86%
Technology
6.01%
Executive
0.98%
Total Level A Allocation
100.00%
2008-09 Original Budget
(After Base Budget Reduction of $4.6 Million)
Total Revenue - $231.2 Million
State Appropriation
$153.6 Million
State
University
Fees
$63.4 Million
Other
Revenues
$2.0 Million
Reimbursed
Activities,
$7.2 Million
NonResident
Tuition
$5.0 Million
Total Expenses - $231.2 Million
Salaries & Benefits
$166.6 Million
All Other
Operating
Expenses
$64.6 Million
2008-09 Budget Reduction #2
(Systemwide $31.3 Million – Campus Share $1.7 Million)
Plan for Excellence (Strategic Planning)
Administrative Services
Amount
$
63,000
Academic
40,000
Student Affairs
23,000
Advancement
35,000
Unallocated Applied
162,250
Total Plan for Excellence Reductions
323,250
Graduate Augmentation
250,000
Deferred Maintenance
250,000
Technology - STLT
44,632
3% Operating Budget Cut (Sch A)
Executive
Provost and Academic Affairs
Student Affairs
Advancement
Administrative Admin/Human Resources
Facilities
Information Technology IT
CIS
ATC & Digital
Centrally Managed
12,448
425,153
32,580
21,744
52,710
164,731
57,326
35,487
23,040
13,500
Total 3% Operating Budget Cut (Sch A)
Initial Budget Plan Reduction
838,718
$
1,706,600
2008-09 Revised Budget – Reduction #2
$1.7 Million (One-Time)
State Appropriation
$151.9 Million
State
University
Fees
$63.4 Million
Other
Revenues
$2.0 Million
Reimbursed
Activities
$7.2 Million
Non-Resident
Tuition
$5.0 Million
Reduction
#2
$1.7 Million
The second State
reduction to the CSU
system of $31.3 million
results in a reduction to
our campus of
$1.7 million.
2008-09 Budget Reduction #3
(Systemwide -$66.3 Million – Campus Share $3.6 Million)
Budget Cuts Distributed by Level A %:
Provost and Academic Affairs
Student Affairs
Advancement
Administrative - (11.60%)
Admin/Human Resources
Facilities
Information Technology (6.01%)
IT
CIS
ATC & Digital
Executive
Athletics
Total Cuts by Level A Percentages
Level A %
69.89%
7.95%
1.71%
Amount
$
4.57%
7.03%
1,424,583
162,047
34,855
93,151
143,294
2.97%
1.84%
1.20%
0.98%
1.86%
100.00%
60,616
37,524
24,363
19,976
37,913
2,038,322
Central Reserves:
Utilities Pool
Central Reserve
Campus Interest Earnings Reserve
Total Central Reserves
Total Budget Reduction #3
$
350,000
1,000,000
225,000
1,575,000
3,613,322
2008-09 Revised Budget – Reduction #3
$3.6 Million (One-Time)
State Appropriation
$148.3 Million
State
University
Fees
$63.4 Million
Other
Revenues
$2.0 Million
Reimbursed
Activities
$7.2 Million
Non-Resident
Tuition
$5.0 Million
Reduction
#3
$ 3.6 Million
The third State
reduction to the
CSU system of
$66.3 million results
in a reduction to our
campus of
$3.6 million.
Differences Between the Budget
and Cash Flow Situations.
When the Legislature balances the General Fund budget
each year, it must enact measures to ensure that General
Fund revenues and expenditures match over the course
of the entire year.
The cash flow plan, by contrast, focuses on the state
meeting its payment obligations in each individual
month of the fiscal year. (Bank Deposits)
2009-10 Budget Analysis Series
California’s Cash Flow Crisis by Mac Taylor Legislative Analyst January 14, 2009
Will the State “Run Out of Cash?”
Technically, the state can never run out of cash because
tax and other payments flow into state coffers every day.
What may happen in the next few weeks is that available
cash may no longer be sufficient to make all state
payments that have been budgeted by the Legislature on
a timely basis.
The State reached this point in early February.
2008-09 Revised Budget
Cash Basis – No Cash $47.5 Million
State
Appropriation
$100.8 Million
No Cash
$47.5
Million
(Worst Case Scenario)
State
University
Fees
$63.4 Million
Other
Revenues
$2.0 Million
Reimbursed
Activities
$7.2 Million
Non-Resident
Tuition
$5.0 Million
State cash resources are
exhausted in early
February – leaving an
estimated State
appropriation shortfall to
our campus of
$47.5 million.
2008-09 Revised Cash Basis Budget
Total Shortfall - $52.8 Million
Total Revenue - $178.4 Million
(Bank Deposits)
Total Expenses - $231.2 Million
Salaries & Benefits
$166.6 Million
State
Appropriation
$100.8 Million
State
University Fees
$63.4 Million
Other
Revenues
$2.0 Million
Reimbursed
Activities
$7.2 Million
Non-Resident
Tuition
$5.0 Million
All Other
Operating
Expenses
$64.6 Million
With “Salaries & Benefits” remaining
whole, only $11.8 million remains to
cover “All Other Operating Expenses”
of $64.6 million.
2009-10 Budget Shortfall Projections
(Budget Uses)
Budget Uses
Amount
General Fund Appropriation Adjustments:
State Fund Reduction - November 2008
State Fund Reduction - January 2008
$ 1,706,600
3,613,322
Total State Fund Reduction - 08/09
$ 5,319,922
Unfunded Mandatory Costs:
Utilities Increase in Costs
664,895
Benefits Increase in Cost
610,232
New Space Reduction
553,284
Total Unfunded Mandatory Costs
Campus Base:
Benefits Increase Based Upon Campus Projections
Total Budget Uses
1,828,411
1,689,016
$ 8,837,349
2009-10 Budget Shortfall Projections
(Calculation of Budget Shortfall)
Total Budget Uses $
(8,837,349)
Campus Reductions:
Plan for Excellence Funding Reduction - Centrally Managed
300,000
Graduate Augmentation Reduction - Academic Affairs
250,000
Public Relations Reduction - Advancement
115,000
Shift Library Expenses to Lottery - Academic Affairs
350,000
STLT Reduction - Information Technology
150,000
Total Campus Reductions
Total GF Appropriations,Unfunded, Adjustments, Assessments & Reductions $
1,165,000
(7,672,349)
10% Student Fee Revenue Increase:
Gross Student Fee Revenue Increase
Less: Financial Aid
$
6,770,325
(2,256,775)
Net Student Fee Revenue Increase
Total Campus Shortfall to be Allocated by Level A Percentages $
4,513,550
(3,158,799)
Allocation of 2009-10 Budget Shortfall
(At Level A Percentages)
Division
Level A %
Amount
Academic Affairs
69.89%
Student Affairs
7.95%
(251,125)
Administration
4.57%
(144,357)
Plant Operations
7.03%
(222,064)
Advancement
1.71%
(54,015)
Athletics
1.86%
(58,754)
Technology
6.01%
(189,844)
Executive
0.98%
(30,956)
Total Level A Shortfall Allocation
100.00%
$
$
(2,207,684)
(3,158,799)
2009-10 Proposed Budget
(After Allocated Budget Reduction of $3.2 Million)
Total Revenue - $230.4 Million
State Appropriation
$148.3 Million
State
University
Fees
$67.9 Million
Other
Revenues
$2.0 Million
Reimbursed
Activities,
$7.2 Million
Non-Resident
Tuition
$5.0
Million
Total Expenses - $230.4 Million
Salaries & Benefits
$168.9 Million
(Includes Mandatory
Benefits
Costs Increase
of $2.3 Million)
All Other
Operating
Expenses
$61.5 Million