Budget Central

2017-18 CSU Support Budget Update

SJSU and the CSU are state entities and a significant portion of our funding is determined in part by the state budget process, which begins by January 10 of each year with the Governor’s Budget Proposal.  This deadline is mandated by the California State Constitution.  In order to meet the January timeline, it is necessary for the Board of Trustees to adopt a formal support budget request by November each year. 

At the recent November meeting, the CSU Board of Trustees adopted a resolution approving the 2017-18 CSU Annual Support Budget request.  The request includes a $324.9 million increase in state support and $18.8 million in new tuition revenue from enrollment growth for a total increase in revenues of $343.7 million.  The final support budget request exceeds the governor’s proposed budget plan by $167.7 million, but the Board of Trustees remains committed each year to adopting an aspirational support budget that is truly reflective of the CSU’s needs.  Each year in recent memory, the governor has cited the need for restraint in providing permanent, base-funding for commitments.  However, in 2015-16,  the governor deviated from the multi-year funding plan and provided full-funding for the CSU Trustees’ Support Budget.  This offers hope that more funding will be forthcoming from the state than originally promised for the upcoming cycle. 

This year’s (2017-18) CSU proposed budget reflects commitments for new programs such as Graduation Initiative 2025, while also honoring (and funding) existing contractual commitments to staff and faculty that were made as part of the collective bargaining process. 

 

Proposed Incremental Increase in Expenditures (USES):

NEW COMMITMENTS

  • Graduation Initiative 2025/ Student Success                 $75.0
  • Compensation: New Contracts & Non Represented Staff    55.1

New Commitments Subtotal                                     $130.1

CURRENT/ONGOING COMMITMENTS

  • Compensation: Current Contracts                                 139.1
  • One Percent Enrollment Growth Increase (3,616)             38.5
  • Facilities and Infrastructure Needs                                  10.0
  • Mandatory Costs (health benefits, pensions, & new space maintenance)                                                               26.0

Current/Ongoing Commitments Subtotal                $213.6


 Total Ongoing Expenditure Increase                       $343.7              

Proposed Incremental Increase in Revenue (SOURCES):

  • State General Fund Support from Governor’s Funding Plan                                                                                     $157.2
  • Net Tuition from Enrollment Growth                               18.8
  • Board of Trustees Additional Funding Request               167.7

Total Ongoing Revenue Increase                            $343.7                   

At this point in time, the Board of Trustees is submitting the support budget request to the state in anticipation of the state fulfilling its obligation and commitment to the bold student success initiatives. The request will be accompanied by intense advocacy efforts to encourage the governor and legislature to support the CSU.  Advocacy efforts will include working with stakeholders and partners across the system including trustees, students, faculty, staff, union leaders, alumni, business partners and friends to make the case in Sacramento for the level of new funding that supports our stated priorities, all leading to greater student success.  While additional state funding is the highest priority and the best option for the university, the state allocation will not be known until a final state budget agreement is reached in June, 2017.

To that end, the CSU must regrettably continue a conversation with the California State Student Association (CSSA) about a possible tuition increase.  In the event that full funding from the state is not forthcoming in this cycle, the additional $167.7 million funding gap will need to be addressed through a tuition fee increase and programmatic adjustments.  A proposed tuition increase would generate up to $77.5 million in revenue systemwide.  The potential tuition increase, not-to-exceed $270 per resident undergraduate student, would take the annual tuition price from $5,472 per student to $5,742.  If the CSU is unable to secure funding from the state or through a modest increase in tuition fee rates, only minimal investments in the CSU priority areas listed above will be possible.  SJSU would need to redirect funding from existing programs and services included in our Graduation Initiative 2025 plans to fund mandatory cost obligations and employee compensation increases, which are ongoing obligations regardless of revenue available.

At this time, the CSU, and by extension SJSU campus leadership, remains optimistic that the strong advocacy efforts and compelling need for resources will be recognized and addressed at the state level.   SJSU multi-year budget planning is underway to assess the range of potential outcomes during the upcoming funding cycle.