Cal State San Marcos Budgeting 101 University Budget Committee September 12, 2008

1. Cal State San MarcosBudgeting 101University Budget CommitteeSeptember 12, 2008

2. The CSU Budget Cycle

3. CSUSM Budget Cycle Highlights • January Budget Call: Funding requests for Strategic Initiatives • January Mid-year budget review • March Review of Budget Call Recommendation made to EC • April Preliminary campus budget target schedule prepared • May EC reviews and approves Budget Call requests

4. CSUSM Budget Cycle Highlights (Cont) • June Base Budget Review • July Final campus budget reviewed by EC and approved by the President • August Division allocations finalized and submitted to the University Budget Office • September Final division budgets reviewed by the Budget Office and posted to the PeopleSoft Financial System

5. CSUSM Sources of Revenue • General Operating Fund– 85% • State of California Appropriation • State University Fees • Lottery Fund – .5% • California Lottery sales • CSUSM process • Proprietary Funds – 7.5% • Student Fees • Self-support operation • Parking, Extended Studies, Clark Field House, etc. • Cash Trust Projects – 7% • Miscellaneous student fees • Student Newspaper, Associated Students, Inc., Instructionally Related Activities, Credential Evaluation Fee, etc.

6. Components of the CSUSM Operating Fund Budget • Incremental budget • New sources of funding • Governor’s Compact 3%-4% operating fund increase • 2 ½% enrollment growth • 8%-10% student fee increases • University Reserve – maintained at 1% • Campus Wide Activities – Year-end balances • Uses of new funding • Priority items – University mandates • Allocations by Chancellor’s Office for specific purposes - compensation, State University Grant, benefits • Campus obligations – CMS student implementation, computer refresh program, utilities, ADA compliance, Risk Management • Instruction • Strategic Initiatives

7. CSUSM Budgeting Philosophy • Decentralized budgeting philosophy • Effective FY 07/08 - New budgeting philosophy adopted • Variation of Zero-Based Budgeting (ZBB) • Permanent Base Budget is maintained at campus, division and salary levels • ZBB is applied at the department/operating expense level • Departments perform a review of funding needs and submit requests to division • Division reviews department requests and determines source of funds to meet needs as appropriate • Permanent • Fiscal • Off-sets (salary savings and/or outside sources)

8. Permanent and Fiscal Budgets • Permanent Base Budget • Ending point for completed Fiscal Year, June 30 • All permanent employee salaries, OE&E • Starting point for new Fiscal Year, July 1 • Permanent Allocations • Adjusts permanent base budget – increase or decrease • Fiscal Allocations • One-time funding • Does not affect permanent base budget • Prior year balances at division level

9. CSUSM Budget Adjustments • Supplemental Allocations • Fiscal (one-time) funds • Allocated from the Chancellor’s Office for a specific purpose • Campus Department/Division Budgets amended during the year • Budget transfers initiated by the Provost, Vice Presidents, divisions, colleges and departments for specific requests and/or purposes • Campus Budget Office • Benefits, compensation

10. Fiscal Year 2008/2009 Operating Fund Budget Allocations by Division

11. Questions?

12. Contacts: Mary Hinchman AVP, Business and Financial Services mhinchmn@csusm.edu (760)750-4520 Liz Rojas Assistant Director, University Budget Office lrojas@csusm.edu 760-750-4462 Brenda Martin Assistant Budget Analyst, University Budget Office bmartin@csusm.edu 760-750-4461