university budget committee (ubc) and budget forum ii

Today Decides Tomorrow

University Budget Committee (UBC) and

Budget Forum II

May 23, 2008

8:00 a.m. – PAC 134

Kathy KaiserUBC Chair/Facilitator


Purpose of UBC/Budget Forum

To acknowledge that we are a comprehensive University that must work collaboratively to plan, prioritize, and solve fiscal challenges in order for us to succeed.

Strategic Mission/Values – “We affirm that we are “One University” where collaboration, mutual support and trust, and common goals define our work together and the spirit of its engagement.”


Purpose of UBC/Budget Forum

To provide enhanced fiscal information to enable faculty, staff, students and other interested parties to achieve a deeper understanding of the University’s budget and related processes.

Strategic Priority #5 – “Believing that we are accountable to the people of the State of California, we will continue to diversify our sources of revenue and strategically manage the resources entrusted to us.”


CSU & California’s Budget Process

Oct/Nov – CSU Trustees adopt Support Budget Jan - Governor submits Proposed Budget and Budget Bill

introduced to Legislature (Senate/Assembly budget committees)

Ongoing – Director of Finance issues guidelines for budget preparation to agencies and departments

Feb - Legislative Analyst’s Office prepares analysis of proposed budget

Mar to May – Legislative budget hearings and CSU constituent briefings

May – Governor submits “May Revise” Budget May to June – Budget Conference Committee reconciles and

adopts Budget June – Legislature votes on Budget and Governor’s signs Budget

(Budgets have been signed as late as August or September in past)


State Budget AdvocacyCampus Budget Rally (800 + attendees)Alumni Legislative DayLt. Governor Garamendi campus visitAlliance for the CSU, Call to Action


November through FebruaryBudget Forum I

2 UBC planning meetings

Analyzed Governor’s Proposed Budget

FAC/Cabinet budget planning meeting

Review of LAO analysis

What Have We Been Doing?


April through May2 UBC planning meetings

2 FAC/Cabinet budget planning meeting

Analyzed Governor’s May Revise

Budget Forum II

Meetings with Foundation Advisory Board, University Advisory Board, and College of Ag. Advisory Board

What Have We Been Doing?


Governor’s May Revise Pro-education May Revise Budget Governor proposes to put $97.6 Million back into CSU budget

– Flat State allocation– No provision for rising CSU costs

Risks:– Governor proposes to borrow $15 Billion from future Lottery

revenues over next three years requiring a vote in November.– Contingency Plan: 1 cent increase in sales tax if voters reject

lottery borrowing Budget pressures continue:

– CSU faces $114 Million in unfunded mandatory costs– Partially offset by 10% State University Fee increase approved

by Board of Trustees which will generate “net” revenue of $73.2M

– 2008 State Education Bond: status and related impacts


LAO Analysis of May ReviseOverly optimistic estimates about the

potential growth in lottery sales and profits.– May cause future impacts to public education– Potential impact: $5 billion over next 12 years

Budget reforms are seriously flawed– Budget shortfall locked in– Loss of legislative authority

LAO Alternative Budget for CSU– Eliminate CSU enrollment growth funding

($48.1m)


What Does This All Mean?


Highest Impact on Resources

“General Fund Only”

January Proposed Budget Numbers

No State Bonds Issued

No Marginal Cost funding for over-enrollment

All Compensation & Mandatory Costs to Fund (new space, utilities, benefits)

State of California

Higher Education

10.3% of State Budget

State of California

Higher Education


California State University

23.4% of Higher Education Budget

CSU, Chico

4% of CSU System Budget

<$10.8M> - Proposed Budget


May Revise Budget Numbers

No State Bonds Issued


All Compensation & Mandatory Costs to Fund (new space, utilities, benefits)

State of California

Higher Education




CSU, Chico


<$7.0M> – May Revise

Moderate Impact on Resources



May Revise Budget Numbers

State Bonds Issued


Partial Compensation & Mandatory Costs to Fund (new space, utilities, benefits)

State of California

Higher Education




CSU, Chico


<$2.1M> – May Revise

Lowest Impact on Resources



Next Steps…


Multi-Year Budget Approach

Excerpt from Strategic Priority #5 – “We will demonstrate the determination to allocate resources in terms of clearly articulated priorities and how those priorities contribute to making the University even more outstanding than it now is.”

UNIVERSITY

10% Budget Reductionover the next 2 Years


“One University”Four Strategic Priorities

1. Student success, learning and progress toward degree

2. Generation and wise stewardship of University resources

3. Commitment to local / regional service in the North State

4. Commitment to diversity


Enrollment Forecast

Today Decides TomorrowData provided from Enrollment Management


PREDICTING 2008/09 ENROLLMENT

FTES Targets :

CSU Target 15,109

CSU, Chico Target 15,870 (07/08 Actual)


Fall 2008New Student Enrollment


Total Number of Students Expected for Fall 2008

Scenario 1Estimated continuing students 12,261Yield from applications 5,221 Total predicted 17,483 (16,259 FTES)

Scenario 2Estimated continuing students 12,261Yield from “Intent to Enroll” 4,555Total predicted 16,816 (15,639 FTES)

Predicting Fall 2008 Enrollment


University Budget Committee

Kathy Kaiser – UBC open dialogue Observations

Comments

Questions…


Conclusion

Recap of budget planning efforts

Actively monitor State budget process

Marshal additional resources– Philanthropic efforts– Grant and contract activities

Continue advocacy efforts with “Alliance for the CSU”


Closing Thoughts

“Cabinet does not make every decision…everyone at the University needs to be empowered to find ways to cut costs and save money where we can.”

“Never leave the room for any reason during a budget cutting session.” - Len Wood

Audience Questions?

university budget committee (ubc) and budget forum ii

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