Thursday, January 10, 2008

CSU in the Governor's 2008-09 Budget Proposal

The higher education section of Governor Schwarzenegger's 2008-09 budget proposal is summarized on his site. Here are the sections related to the CSU:

The Governor's Budget provides close to $11.7 billion from the General Fund alone for Higher Education in 2008-09. The proposed workload budget reflects total funding of $21.7 billion, including $15.1 billion General Fund and Proposition 98 sources for all major segments of Higher Education (excluding infrastructure and stem cell research), which reflects an increase of $1.6 billion ($1.3 billion General Fund and Proposition 98 sources) above the revised 2007-08 budget. These amounts represent an 8 percent total funding increase, including a 9.2 percent increase in General Fund and Proposition 98 sources above the revised 2007-08 budget. The major workload adjustments for 2008-09 include the following for each segment.

The proposed budget was constructed first by computing the workload budget funding level. From the workload budget, adjustments are made to reflect specific policy adjustments and reductions, including budget-balancing reductions.

Proposed Workload Budget

University of California and California State University

For the UC and the CSU, the workload budget is based on the Higher Education Compact (Compact) that was initiated in 2004. The Compact provides a six-year resource plan to address annual base budget increases including general support increases of up to 5 percent, enrollment growth of 2.5 percent, student fee increases that may not exceed 10 percent, and other key program elements through 2010-11. In exchange for this fiscal stability, the UC and the CSU committed to preserving and improving student and institutional performance in numerous program areas including program efficiency, utilization of system wide resources and student-level outcomes. The resources provided through the Compact enable the UC and the CSU to accomplish their missions outlined in the Master Plan for Higher Education.

California State University

  • $116.8 million increase (4 percent) for basic budget support consistent with the Compact.
  • $29.2 million increase (1 percent) for core instructional needs including library material replacements, deferred maintenance and instructional equipment consistent with the Compact.
  • $70.1 million increase (2.5 percent) for enrollment growth consistent with the Compact. This would fund an additional 8,572 state-supported students.
  • $109.8 million increase in fee revenue associated with the Trustees planned 10 percent mandatory fee increase for undergraduate, graduate and teacher credential candidates. One-third of the revenue generated by the fee increases would be set aside for financial aid.
  • $124,000 increase (4 percent) for the Capitol Fellows Program consistent with the Compact.
  • $8.6 million reduction to continue the decrease in retirement costs in the current year.
  • $4.9 million reduction in lease purchase payments.

Addressing California's Teacher and Nursing Shortages

  • The Governor's Budget proposes an ongoing $2.7 million for CSU and $1.1 million for UC for the Science and Math Teacher Initiative. This effort provides additional funding to the CSU and UC to address the shortage of high-quality math and science teachers in our public schools. The CSU has committed to doubling its annual production of science and math teacher candidates to a total of approximately 1,500 and the UC has committed to quadruple its production to a total of 1,000 by 2010-11.
  • $22.2 million ongoing for CCC, $6.3 million for CSU and $1.7 million for UC for the Nursing Initiative. This initiative provides additional funding to expand enrollments at the CCC, CSU and UC in order to meet the state's clinical nursing shortages.
Proposed Budget Balancing Reductions
Total budget-balancing reductions for the Higher Education segments amount to $1.1 billion in 2008-09. Of this amount, $649.4 million is for General Fund programs and $483.5 million is for Community College Proposition 98 local assistance programs.
  • $312.9 million for the California State University. Of this amount, $43.2 million is allocated to the Institutional Support program (which includes campus administration and the Chancellor's Office) and the remainder is unallocated to allow the CSU Trustees the maximum flexibility to meet the reduction in a way that minimizes the adverse impacts to core instructional programs. It is anticipated that the Trustees will address this reduction through a combination of fee increases, limitations on enrollment levels, increased efficiency and reductions to other existing programs, including student services, academic support and public services.
Note that the references to increases are relative to the revised 2007-08 budget. If you want numbers, use the the Department of Finance links below.

Budget links:

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