2008-09 budget crisis maximizing our resources through fiscal responsibility california state...
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2008-09 Budget Crisis2008-09 Budget Crisis
Maximizing Our Resources Through Fiscal Responsibility
California State University, Fresno
Budget ProcessBudget Process
The Level “A” policy provides an allocation to each division based upon a fixed percentage as established by President Welty on April 18, 2007.
Division %
Academic Affairs 69.89%
Student Affairs 7.95%
Administration 4.57%
Plant Operations 7.03%
Advancement 1.71%
Athletics 1.86%
Technology 6.01%
Executive 0.98%
Total Level A Allocation 100.00%
Level “B” is the allocation made from the Provost/Vice Presidents to the Deans/Directors/
Department Heads.
2008-09 Original Budget2008-09 Original Budget(After Base Budget Reduction of $4.6 Million)(After Base Budget Reduction of $4.6 Million)
Total Expenses - $231.2 MillionTotal Expenses - $231.2 Million
Other Revenues
$2.0 Million
Reimbursed Activities,
$7.2 Million
Non-Resident Tuition
$5.0 Million
State Appropriation$153.6 Million
State University
Fees $63.4 Million
Salaries & Benefits$166.6 Million
All Other Operating Expenses
$64.6 Million
Total Revenue - $231.2 MillionTotal Revenue - $231.2 Million
2008-09 Budget Reduction #22008-09 Budget Reduction #2(Systemwide $31.3 Million – Campus Share $1.7 Million)(Systemwide $31.3 Million – Campus Share $1.7 Million)
Plan for Excellence (Strategic Planning) Amount
Administrative Services 63,000$
Academic 40,000
Student Affairs 23,000
Advancement 35,000
Unallocated Applied 162,250
Total Plan for Excellence Reductions 323,250
Graduate Augmentation 250,000
Deferred Maintenance 250,000
Technology - STLT 44,632
3% Operating Budget Cut (Sch A) Executive 12,448 Provost and Academic Affairs 425,153 Student Affairs 32,580 Advancement 21,744 Administrative - Admin/Human Resources 52,710 Facilities 164,731 Information Technology - IT 57,326 CIS 35,487 ATC & Digital 23,040 Centrally Managed 13,500
Total 3% Operating Budget Cut (Sch A) 838,718
Initial Budget Plan Reduction 1,706,600$
2008-09 Revised Budget – Reduction #22008-09 Revised Budget – Reduction #2$1.7 Million (One-Time)$1.7 Million (One-Time)
Reduction #2
$1.7 Million
Non-Resident Tuition
$5.0 Million
Reimbursed Activities
$7.2 Million
Other Revenues
$2.0 Million
State Appropriation$151.9 Million
State University
Fees $63.4 Million The second State
reduction to the CSU system of $31.3 million results in a reduction to
our campus of $1.7 million.
2008-09 Budget Reduction #32008-09 Budget Reduction #3(Systemwide -$66.3 Million – Campus Share $3.6 Million)(Systemwide -$66.3 Million – Campus Share $3.6 Million)
Budget Cuts Distributed by Level A %: Level A % Amount
Provost and Academic Affairs 69.89% 1,424,583$ Student Affairs 7.95% 162,047 Advancement 1.71% 34,855 Administrative - (11.60%) Admin/Human Resources 4.57% 93,151 Facilities 7.03% 143,294 Information Technology (6.01%) IT 2.97% 60,616 CIS 1.84% 37,524 ATC & Digital 1.20% 24,363 Executive 0.98% 19,976 Athletics 1.86% 37,913
Total Cuts by Level A Percentages 100.00% 2,038,322
Utilities Pool 350,000 Central Reserve 1,000,000 Campus Interest Earnings Reserve 225,000
1,575,000 3,613,322$
Total Central Reserves
Central Reserves:
Total Budget Reduction #3
2008-09 Revised Budget – Reduction #32008-09 Revised Budget – Reduction #3$3.6 Million (One-Time)$3.6 Million (One-Time)
Other Revenues
$2.0 Million
Reimbursed Activities
$7.2 Million
Non-Resident Tuition
$5.0 Million
Reduction # 3
$ 3.6 Million
State Appropriation$148.3 Million
State University
Fees $63.4 Million
The third State reduction to the CSU system of
$66.3 million results in a reduction to our
campus of $3.6 million.
Differences Between the Budget Differences Between the Budget
and Cash Flow Situations.and Cash Flow Situations.
When the Legislature balances the General Fund budget each year, it must enact measures to ensure that General Fund revenues and expenditures match over the course of the entire year.
The cash flow plan, by contrast, focuses on the state meeting its payment obligations in each individual month of the fiscal year. (Bank Deposits)
2009-10 Budget Analysis SeriesCalifornia’s Cash Flow Crisis by Mac Taylor Legislative Analyst January 14, 2009
Will the State “Run Out of Cash?”Will the State “Run Out of Cash?”
Technically, the state can never run out of cash because tax and other payments flow into state coffers every day.
What may happen in the next few weeks is that available cash may no longer be sufficient to make all state payments that have been budgeted by the Legislature on a timely basis.
The State reached this point in early February.
2008-09 Revised Budget2008-09 Revised Budget Cash Basis – No Cash $47.5 MillionCash Basis – No Cash $47.5 Million
Non-Resident Tuition
$5.0 Million
Reimbursed Activities
$7.2 Million
Other Revenues
$2.0 Million
No Cash$47.5
MillionState Appropriation$100.8 Million
State University
Fees $63.4 Million
(Worst Case Scenario)
State cash resources are exhausted in early
February – leaving an estimated State
appropriation shortfall to our campus of
$47.5 million.
2008-09 Revised Cash Basis Budget2008-09 Revised Cash Basis Budget Total Shortfall - $52.8 MillionTotal Shortfall - $52.8 Million
Non-Resident Tuition
$5.0 Million
Reimbursed Activities
$7.2 Million
Other Revenues
$2.0 Million
State Appropriation$100.8 Million
State University Fees $63.4 Million
Salaries & Benefits$166.6 Million
All Other Operating Expenses
$64.6 Million
Total Revenue - $178.4 MillionTotal Revenue - $178.4 Million(Bank Deposits)(Bank Deposits)
Total Expenses - $231.2 MillionTotal Expenses - $231.2 Million
With “Salaries & Benefits” remaining whole, only $11.8 million remains to
cover “All Other Operating Expenses” of $64.6 million.
2009-10 Budget Shortfall Projections2009-10 Budget Shortfall Projections(Budget Uses)(Budget Uses)
AmountGeneral Fund Appropriation Adjustments:
State Fund Reduction - November 2008 $ 1,706,600
State Fund Reduction - January 2008 3,613,322
$ 5,319,922
Unfunded Mandatory Costs:
Utilities Increase in Costs 664,895
Benefits Increase in Cost 610,232
New Space Reduction 553,284
1,828,411
Campus Base:
1,689,016 $ 8,837,349 Total Budget Uses
Budget Uses
Total State Fund Reduction - 08/09
Benefits Increase Based Upon Campus Projections
Total Unfunded Mandatory Costs
2009-10 Budget Shortfall Projections2009-10 Budget Shortfall Projections(Calculation of Budget Shortfall)(Calculation of Budget Shortfall)
$ (8,837,349)
Campus Reductions:
Plan for Excellence Funding Reduction - Centrally Managed 300,000
Graduate Augmentation Reduction - Academic Affairs 250,000
Public Relations Reduction - Advancement 115,000
Shift Library Expenses to Lottery - Academic Affairs 350,000
STLT Reduction - Information Technology 150,000
1,165,000
$ (7,672,349)
Gross Student Fee Revenue Increase $ 6,770,325
Less: Financial Aid (2,256,775)
4,513,550
$ (3,158,799)
Total Campus Reductions
Total Budget Uses
Total Campus Shortfall to be Allocated by Level A Percentages
Total GF Appropriations,Unfunded, Adjustments, Assessments & Reductions
10% Student Fee Revenue Increase:
Net Student Fee Revenue Increase
Allocation of 2009-10 Budget Shortfall Allocation of 2009-10 Budget Shortfall (At Level A Percentages)(At Level A Percentages)
Division Level A % Amount
Academic Affairs 69.89% $ (2,207,684)
Student Affairs 7.95% (251,125)
Administration 4.57% (144,357)
Plant Operations 7.03% (222,064)
Advancement 1.71% (54,015)
Athletics 1.86% (58,754)
Technology 6.01% (189,844)
Executive 0.98% (30,956)
Total Level A Shortfall Allocation 100.00% $ (3,158,799)
2009-10 Proposed Budget2009-10 Proposed Budget(After Allocated Budget Reduction of $3.2 Million)(After Allocated Budget Reduction of $3.2 Million)
Total Expenses - $230.4 MillionTotal Expenses - $230.4 Million
Other Revenues
$2.0 Million
Reimbursed Activities,
$7.2 Million
Non-Resident Tuition $5.0
Million
State Appropriation$148.3 Million
State University
Fees $67.9 Million
Salaries & Benefits$168.9 Million
All Other Operating Expenses
$61.5 Million
(Includes MandatoryBenefits
Costs Increase of $2.3 Million)
Total Revenue - $230.4 Total Revenue - $230.4 MillionMillion