Transcript Slide 1

2008-2009
Cal Poly Budget Presentation
UPBAC
January 2009
January 2009
1
Summary of Budget Reductions prior to Governor’s
Compact Agreement with the CSU
(in Millions) – net of fee increases
2002/03 2003/04 2004/05 3 Year Total
CSU
Cal Poly
January 2009
($105.4) ($285.3) ($131.6)
($0.6)
($14.9)
($7.5)
($522.3)
($22.9)
2
Review of Compact for Higher Education
2004-05
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Covers six years – 2005/06 through 2010/11
Adjustments to the base budget:
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3% annual increase for 2005/06 – 2006/07
4% annual increase for 2007/08 – 2010/11
An additional 1% annual increase to the base budget for
2008/09 – 2010/11 for equipment, technology, & libraries
State will cover annuitant dental benefits, retirement
contributions and debt service
Identifies importance of restoring more competitive
salaries for CSU employees
2.5% growth per year through 2010 – 8,000
FTES/10,000Headcount per year for CSU
January 2009
3
2005-2006 Final Budget Allocations
First Year of Governor’s Compact
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3% Increase in Operating Funds
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Compensation
Technology
Deferred Maintenance
2.5% Enrollment Growth Funding
Fee Increase for undergraduate and teacher
credential students (8%) and graduate
students (10%)
January 2009
4
2006-2007 Final Budget Allocations

3% Increase in Operating Funds
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Compensation
Technology
Deferred Maintenance
2.5% Enrollment Growth Funding Fee
Increase “buy-out” for undergraduate and
teacher credential students (8%) and
graduate students (10%)
January 2009
5
2007-2008 Final Budget Allocations
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4% Increase in Operating Funds
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Compensation
Technology
Deferred Maintenance
2.5% Enrollment Growth Funding
Fee Increase for undergraduate, teacher
credential and graduate (10%)
January 2009
6
CSU Compensation Funding Shortfall for
2006-2007 and 2007-2008
CSU
Cal Poly
2006-2007
$10,600,000
$613,970
*2007-2008
$30,300,000
$1,746,954
Note: Bargaining commitments exceeded funding with or without the
compact.
* A portion of the 2007-2008 shortfall was effective June 30, 2008
January 2009
7
2008-2009 CSU Budget Negotiations
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Trustees Request
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Based on Governor’s Compact
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$ 68.9M
116.9M
29.2M
73.1M
Governor’s Budget
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2.5% for Enrollment Growth
4% for General Operations
1% for Core Academic Support
10% Fee Revenue Augmentation
10% Fee Revenue Increase
Budget Reduction
$ 73.1M
(99.3)M
Final Budget – September 2008
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January 2009
10% Fee Revenue Increase
$ 73.1M
8
2008-2009 Cal Poly Operating Budget
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The net of the fee increase and the unfunded
mandatory cost resulted in a funding shortfall
for Cal Poly of $3,002,082
January 2009
9
Since the 2008-2009 Final Budget….
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October, 2008
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Department of Finance directed state agencies and
departments of the need to cut $390 million statewide.
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For the CSU this amount was $31.3million
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November, 2008
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Governor proposes an additional $66.3M reduction to CSU
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For Cal Poly this amount was $1,653,400
Estimated cut to Cal Poly will be $3,500,000
Note: Cumulative reduction very close to the original
reduction proposed in the 2008-2009 Governor’s
Budget ($97.6M vs $99.3M)
January 2009
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Summary of 2008-2009 Budget Reductions
2008-2009 Summary of Budget Reductions by Division
Division/Area
Academic Affairs: Instruction
Academic Affairs: Other
Administration and Finance Division Total
President's Office & Legal Counsel Total
Student Affairs Division Total
University Advancement
Campus Contingency & Unallocated
Total Reduction
January 2009
% of
Base
1.30%
1.87%
1.87%
1.87%
1.87%
1.87%
1.87%
-1.30%
2008-2009 Final
Sources and
Uses Base
% of
Reduction
Base
$
(1,282,710)
$
(938,672)
$
(503,760)
$
(31,054)
$
(184,358)
$
(61,528)
$
N/A
$
(3,002,082)
October 2008
One-Time
Reduction
$
$
$
$
$
$
$ (1,653,400)
$ (1,653,400)
% of
Base
1.51%
2.18%
2.18%
2.18%
2.18%
2.18%
2.18%
-1.51%
Estimated Midyear One-Time
Reduction
$ (1,495,457)
$ (1,094,358)
$
(587,313)
$
(36,204)
$
(214,936)
$
(71,732)
$
$ (3,500,000)
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Situation continues to worsen…..
January 2009
12
Legislative Analyst's Office Report to the Joint
Convention of the California Legislature
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December 8, 2008
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2008-2009 Budget Package (September)
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Flat General Fund spending from 2007-08 to 2008-09
($103 billion)
Reliance on one-time solutions
Assumed 2009-10 operating shortfall of $6 billion
Updated November Projections
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$28 billion problem
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January 2009
$9 billion current-year problem
$19 billion operating deficit in 2009-10
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Governor’s Special Session Proposals
2008-2009 2009-2010
Revenue Increases
1.5 cent sales tax (three years)
Other (ongoing)
Totals
Expenditure Savings
Propositions 98
All Other
Totals
(in Millions)
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$3,540
$1,180
$4,720
$6,643
$2,943
$9,586
$2,500
$2,004
$4,504
$729
$5,391
$6,120
Comes close to addressing shortfalls through
2010-2011
January 2009
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Legislative Analyst's Office Report to the Joint
Convention of the California Legislature
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If Gap was solved through Tax Increases
alone
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2 cent sales tax increase
15% personal income tax surcharge
2 percentage point corporate tax rate increase
If Gap solved through spending reductions
alone
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Eliminate funding for UC and CSU
Eliminate funding for welfare payments
Eliminate funding for developmental services,
mental health, and in-home supportive services
January 2009
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2009-2010 Governor’s Budget – CSU
(in millions)
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10% Fee Revenue Increase
Special Session Reductions
BSN Nursing Program Increase
Mandatory Costs
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Health, New Space, Energy, Financial Aid
Total Surplus/Deficit
January 2009
$131.6
-66.3
3.6
-84.6
($15.7)
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Cal Poly Funding vs. National Average
120.0%
100.0%
80.0%
57.5%
66.0%
60.0%
40.0%
12.3%
42.5%
20.0%
21.6%
0.0%
Cal Poly
State University Fee
January 2009
National Average (2004-05)
Cal Poly's Other Fees/Tuition
State Appropriation
17
Cal Poly SUF vs. State Appropriation
120.0%
100.0%
80.0%
60.0%
73.4%
80.8%
89.9%
40.0%
20.0%
26.6%
19.2%
10.1%
0.0%
1987/88
1997/98
State University Fee
January 2009
2007/08
State Appropriation
18
2005-06 % of High Cost Program SCU’s
to Campus Total
35.00%
SLO
30.00%
25.00%
20.00%
Pomona
15.00%
San Jose
10.00%
Humboldt
5.00%
0.00%
0
January 2009
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20
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Fee Revenue % of Budget
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National Average excluding California is
42.5%
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California's Average is 30.3%
California would have to increase student
fees by approximately 69% to equal the
national average
January 2009
20
Undergraduate Resident Student Fees at
Comparison Universities
January 2009
21
Cal Poly Budget Goals and Principles
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Goals
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Structurally balanced budget supporting:
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High quality academic programs.
High quality faculty, students, and staff.
Academic programs consistent with polytechnic mission and
the needs of the State of California.
Student success demonstrated by high retention and
completion of degrees in a timely manner.
Support services that demonstrate an adherence to
professional and ethical standards.
Exemplary care of grounds and facilities.
Compliance with laws, policies, and quality service
practices.
January 2009
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Cal Poly Budget Goals and Principles
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Principles
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The Cal Poly budget is decentralized.
Program decisions and budget management are the responsibilities of those
assigned with the management and leadership of their campus operating
units.
Funding for program priorities is to be addressed first within the vice
presidential divisions and, if needed, then through the campus Sources and
Uses process.
The President, in consultation with the vice presidents, approves new
funding priorities or funding reductions in the Sources and Uses process.
Budget and enrollment decisions are made with the entire campus in mind,
including the impact on auxiliaries.
Enrollment must be consistent with available resources, including the
campus-based fee revenue.
The University should adhere to an enrollment policy that stabilizes
enrollments and minimizes enrollment oscillations.
The University budgetary process should be open and include all
constituencies.
Faculty, students, and staff are entitled to timely budget, financial, and
enrollment information.
January 2009
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