Transcript CURRENT ECONOMIC ENVIRONMENT FEDERAL • Survived sequestration • Uptick in housing market • Slight economic improvement STATE - A new budget horizon? • CA has the.

CURRENT ECONOMIC ENVIRONMENT
FEDERAL
• Survived sequestration
• Uptick in housing market
• Slight economic improvement
STATE - A new budget horizon?
• CA has the 9th largest economy in the world with GDP of $2 trillion
• First time in 6 years State budget had a surplus
• Proposition 30 has provided steady state funding for education
GOVERNOR’S 2014-15 BUDGET PROPOSAL
Governor promised four years steady funding
5%, 5%, 4%, 4%
• CSU General Fund increase of 5%: $142.2 million
• Assumes no tuition increases through 2016-17
• Requires CSU to meet performance standards
• Proposes to fold debt service into the General Fund
Headcount and FTE Trends
8500
# of students
8000
7500
Fall HC
Fall FTE
Spring HC
7000
Spring FTE
6500
6000
06/07
07/08
08/09
09/10
10/11
Academic Year
11/12
12/13
13/14
ENROLLMENT UPDATE
Enrollment
Update
Resident FTES
WUE FTES
Non-Resident FTES
Total FTES
Headcount
Fall 2013
Budget
Actuals
7,181
462
202
7,845
8,363
7,173
409
189
7,772
8,293
Spring 2014
Diff.
-8
-53
-13
-73
-70
Budget
Actual as
of 2/10
6,819
439
192
7,450
7,777
6,845
365
181
7,391
7,820
• Early indications are Spring will not make up for Fall shortfall
• Spring Enrollment Assumptions
• Budget: FTES drop off from Fall to Spring: -5.04% (3 year average)
• Actual: Spring will not be final until census (Feb. 17)
Diff.
+26
-74
-11
-59
+43
2013-14: REVENUE HIGHLIGHTS
(JULY-DECEMBER)
• % of revenue collected: 72%
(Down from 75% in 2012-13)
• Excluding state appropriation: 93%
(Slightly down from 2012-13: 94%)
• Fall tuition revenue low by ~$360,000
(Over $100k in refunds/waivers since Q1 update)
• Spring tuition projected shortfall: $50,000-$100,000
• Shortfall due to decrease in WUE and Non-Resident
students
MULTI-YEAR ACTUALS COMPARISON
(JULY-DECEMBER)
Total Revenue
90
80
70
$80.7
$83.2
2012-13
2013-14
$73.9
$66.3
Millions ($)
60
50
40
30
20
10
0
2010-11
2011-12
MULTI-YEAR ACTUALS COMPARISON
(JULY-DECEMBER)
Tuition Revenue
State Appropriation
State Tuition Fee
50
50
45
45
$31.2
$26.9
25
$32.7
$25.5
35
Millions ($)
35
Millions ($)
$41.7
$42.5
$42.9
40
40
30
Non-Resident
$32.3
30
25
20
20
15
15
10
10
5
5
$2.2
$2.0
$2.0
$1.8
2010-11
2011-12
2012-13
2013-14
0
0
2010-11
2011-12
2012-13
2013-14
MULTI-YEAR ACTUALS COMPARISON
(JULY-DECEMBER)
Total Expenditures
62
$60.4
60
$59.2
$58.1
Millions ($)
58
56
54
$53.1
52
50
48
2010-11
2011-12
2012-13
2013-14
MULTI-YEAR ACTUALS COMPARISON
(JULY-DECEMBER)
• Salaries and Benefits = 82% of Original Budget (excluding financial aid)
Salaries
(49.5% of budget spent)
35.0
35.0
$27.4
$28.3
$28.7
$29.1
30.0
25.0
25.0
20.0
20.0
Millions ($)
Millions ($)
30.0
Benefits
(49.4% of budget spent)
15.0
15.0
$11.4
$11.7
$12.6
2010-11
2011-12
2012-13
$13.5
10.0
10.0
5.0
5.0
0.0
0.0
2010-11 2011-12 2012-13 2013-14
2013-14
MULTI-YEAR ACTUALS COMPARISON
(JULY-DECEMBER)
Financial Aid
(51% of budget spent)
Operating Expenses
(41% of budget spent)
12.0
12.0
$10.4
$10.4
2011-12
2012-13
$10.8
10.0
10.0
$8.4
$7.7
6.0
$7.6
8.0
$7.0
$5.9
Millions ($)
Millions ($)
8.0
4.0
6.0
4.0
2.0
2.0
0.0
0.0
2010-11 2011-12 2012-13 2013-14
2010-11
2013-14
2014-15 BUDGET PLANNING
Budget Planning Summary - DRAFT
Beginning Fund Balance
2014-15
2015-16
2016-17
7,628,699
7,379,903
8,226,521
Revenue Budget Estimate
118,725,642
122,790,642
126,990,642
Base Expenditure Estimate*
118,569,838
121,643,464
123,542,994
Base Budget Surplus/(Deficit)
155,804
1,147,178
3,447,648
One-Time Initiatives*
404,600
300,560
300,560
-248,796
846,618
3,147,088
Ending Fund Balance
7,379,903
8,226,521
11,373,609
Funding Pool @ 5% Fund Bal.*
1,451,411
2,144,348
5,196,459
Funding Pool @ 4% Fund Bal.*
2,637,109
3,360,782
6,431,889
Net Budget Surplus
*Base expenditure budget and one-time initiatives only include enrollment
growth funding. Additional budget allocations to be decided upon during URPC
budget request evaluation process in February/March.
UNIVERSITY RESOURCES & PLANNING COMMITTEE
 Introduced a Resource Request Process for 2014 -15
 Aligns resource allocations with campus priorities
 Provides transparency and accountability
 Leads to continuous improvements
 Used the PREP Planning Tool for collecting all URPC
requests
 Becomes a data repository for resource requests
 Can align university/division/college/department planning
 Requests include measurable outcomes and follow up reporting
2014-15 PROCESS
Department Level
Resource Requests
University Level
Division Level
MBU Level
Review and Approval
Review and Approval Review and Approval
Budget requests
made through the
PREP Planning
process. Includes
requests that
cannot be met
with existing
departmental
budget.
MBU: Major Budget Unit
Includes
departmental
staff, faculty
and/or OE
expansions or
reallocations.
Granted by
Dean/MBU
Director/AVP.
Includes
initiatives that
involve one or
more MBUs, pilot
programs,
division-wide
initiatives, onetime augments to
MBUs for specific
items.
Includes division
augment requests,
capital planning
items, crossdivisional projects,
major University
initiatives brought
forward by the
President and the
VPs.
Granted by the
Provost or Division
VP.
Reviewed and
approved by the
URPC to be
included in the
annual budget
recommendation to
the President.
URPC PROPOSALS
 20 proposals received
 $3.9M in requests
 $2.1M in base budget requests
 $1.8M in one-time requests
 Proposals reviewed in Februar y
 URPC is evaluating budget requests using agreed criteria




Supports HSU’s priorities
Benefits of the request
Opportunity costs
Implementation/Funding Considerations
 URPC will determine funding available for 14 -15 and
beyond
URPC INTERACTIVE SCENARIO PLANNING
HSU Budget Planning Sheet - DRAFT
Revised February 7, 2014
Beginning Fund Balance
2014-15
Projection
2015-16
Projection
2016-17
Projection
2017-18
Projection
7,628,699
7,379,903
8,226,521
11,373,609
118,725,642
122,790,642
126,990,642
131,349,642
Enrollment Growth Model Base Funding
358,496
356,626
511,530
382,443
Enrollment Growth Funding from CSU
768,000
500,000
500,000
500,000
118,569,838
121,643,464
123,542,994
126,181,437
155,804
1,147,178
3,447,648
5,168,205
404,600
300,560
300,560
300,560
118,974,438
121,944,024
123,843,554
126,481,997
846,618
3,147,088
4,867,645
8,226,521
11,373,609
16,241,254
TOTAL Operating Fund Revenue Estimate
Base Initiatives
TOTAL Base Operating Fund Expense Estimate
Net Base Budget Surplus / (Deficit)
One-Time Adjustments
Enrollment Growth Model One Time Funding
One-Time Initiatives
TOTAL Operating Fund Expense Estimate
Net Budget Surplus / (Deficit)
Ending Fund Balance
(as a % of expenditures)
(248,796)
7,379,903
6.2%
6.8%
9.2%
12.9%
Ending Fund Balance less 5% Level
1,451,411
2,144,348
5,196,459
9,932,182
Ending Fund Balance less 4% Level
2,637,109
3,360,782
6,431,889
11,193,997
CSU FACILITIES FUNDING
 Entire program is in the process of being re -designed
 CSU seeking legislative approval to manage capital
 Allows system to re-finance existing debt
 Gives authority to issue new debt up to 24% of operating fund
 Encouraged by this progress but:
 Will likely take much longer to finalize than anticipated – don’t
anticipate funding in 2014-15
 Will require rethinking how we prioritize projects
 Priority focus will be on:




Seismic
Deferred maintenance
Infrastructure
Accessibility
 When funded, HSU will likely receive between $7M -$10M
FACILITIES WORKING GROUP
 In Fall 2012, Facilities Working Group developed a process
to collect, review and recommend campus -based projects.
 Defined Campus-Based Projects
 Repair, improve or change existing physical campus with minimum
cost of $5K and maximum cost of $610K.
 Does not apply to major capital projects
 Does not apply to Chancellor’s Office grant funded projects
 Does not apply to non-state or emergency repair/safety projects.
 Af ter initial ranking, projects were reviewed as a whole for
long-term strategic planning
CAMPUS-BASED PROJECT PROPOSALS
 33 project proposals received
 $3.7M in requests of which $872K provided by other
sources
 Projects grouped into 3 categories
 Deferred Maintenance
 Classrooms & Teaching Labs
 Programmatic
 Proposals Reviewed
 Assumed $750K available for Projects
 $250K- CO Refund on Bond Refinance
 $500K- Facility Rental Trust
SPRING 2014 PROCESS AND NEXT STEPS
 URPC evaluates budget requests and develops 2014-15
budget recommendation (February/March)
 URPC provides final recommendation to President (March)
 President reviews and approves 2014-15 budget (April)