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2008-2009 Cal Poly Budget Presentation

2008-2009 Cal Poly Budget Presentation. UPBAC January 2009. Summary of Budget Reductions prior to Governor’s Compact Agreement with the CSU (in Millions) – net of fee increases. Review of Compact for Higher Education 2004-05. Covers six years – 2005/06 through 2010/11

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2008-2009 Cal Poly Budget Presentation

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  1. 2008-2009Cal Poly Budget Presentation UPBAC January 2009

  2. Summary of Budget Reductions prior to Governor’s Compact Agreement with the CSU (in Millions) – net of fee increases

  3. Review of Compact for Higher Education2004-05 • Covers six years – 2005/06 through 2010/11 • Adjustments to the base budget: • 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

  4. 2005-2006 Final Budget Allocations First Year of Governor’s Compact • 3% Increase in Operating Funds • Compensation • Technology • Deferred Maintenance • 2.5% Enrollment Growth Funding • Fee Increase for undergraduate and teacher credential students (8%) and graduate students (10%)

  5. 2006-2007 Final Budget Allocations • 3% Increase in Operating Funds • Compensation • Technology • Deferred Maintenance • 2.5% Enrollment Growth Funding Fee • Increase “buy-out” for undergraduate and teacher credential students (8%) and graduate students (10%)

  6. 2007-2008 Final Budget Allocations • 4% Increase in Operating Funds • Compensation • Technology • Deferred Maintenance • 2.5% Enrollment Growth Funding • Fee Increase for undergraduate, teacher credential and graduate (10%)

  7. CSU Compensation Funding Shortfall for 2006-2007 and 2007-2008 CSU Cal Poly Note: Bargaining commitments exceeded funding with or without the compact. * A portion of the 2007-2008 shortfall was effective June 30, 2008

  8. 2008-2009 CSU Budget Negotiations • Trustees Request • Based on Governor’s Compact • 2.5% for Enrollment Growth $ 68.9M • 4% for General Operations 116.9M • 1% for Core Academic Support 29.2M • 10% Fee Revenue Augmentation 73.1M • Governor’s Budget • 10% Fee Revenue Increase $ 73.1M • Budget Reduction (99.3)M • Final Budget – September 2008 • 10% Fee Revenue Increase $ 73.1M

  9. 2008-2009 Cal Poly Operating Budget • The net of the fee increase and the unfunded mandatory cost resulted in a funding shortfall for Cal Poly of $3,002,082

  10. Since the 2008-2009 Final Budget…. • October, 2008 • Department of Finance directed state agencies and departments of the need to cut $390 million statewide. • For the CSU this amount was $31.3million • For Cal Poly this amount was $1,653,400 • November, 2008 • Governor proposes an additional $66.3M reduction to CSU • 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)

  11. Summary of 2008-2009 Budget Reductions

  12. Situation continues to worsen…..

  13. Legislative Analyst's Office Report to the Joint Convention of the California Legislature • December 8, 2008 • 2008-2009 Budget Package (September) • 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 • $28 billion problem • $9 billion current-year problem • $19 billion operating deficit in 2009-10

  14. Governor’s Special Session Proposals • Comes close to addressing shortfalls through 2010-2011

  15. Legislative Analyst's Office Report to the Joint Convention of the California Legislature • If Gap was solved through Tax Increases alone • 2 cent sales tax increase • 15% personal income tax surcharge • 2 percentage point corporate tax rate increase • If Gap solved through spending reductions alone • Eliminate funding for UC and CSU • Eliminate funding for welfare payments • Eliminate funding for developmental services, mental health, and in-home supportive services

  16. 2009-2010 Governor’s Budget – CSU(in millions) • 10% Fee Revenue Increase $131.6 • Special Session Reductions -66.3 • BSN Nursing Program Increase 3.6 • Mandatory Costs -84.6 • Health, New Space, Energy, Financial Aid • Total Surplus/Deficit ($15.7)

  17. Cal Poly Funding vs. National Average

  18. Cal Poly SUF vs. State Appropriation

  19. 2005-06 % of High Cost Program SCU’s to Campus Total

  20. Fee Revenue % of Budget • National Average excluding California is 42.5% • California's Average is 30.3% • California would have to increase student fees by approximately 69% to equal the national average

  21. Undergraduate Resident Student Fees at Comparison Universities

  22. Cal Poly Budget Goals and Principles • Goals • Structurally balanced budget supporting: • 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.

  23. Cal Poly Budget Goals and Principles • Principles • 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.

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