CSU Operating Budget Updates

January 2019 Update

Governor Newsom released his first budget proposal on January 10th, reflecting a commitment towards an investment in higher education and the CSU.  The 2019/20 budget proposal requests an ongoing General Fund increase of $300 million to the CSU to support Graduation Initiative 2025, a 2.0% increase in enrollment (equivalent to approximately 7,000 new full-time resident students), and requested operational costs (employee compensation, mandatory costs).  The budget also proposes a one-time allocation of $247 million to help address the CSU deferred maintenance backlog and to improve and expand on-campus child care centers.  Another $15 million of one-time funds is also proposed for the CSU to assist campus' existing efforts to address student hunger and housing needs.

A statement from CSU Chancellor Timothy P. White regarding the investment proposed by the Governor may be found online at the CSU NewsCenter

Proposed Incremental Expenditures Amount
Graduation Initiative 2025   $45 million
Operational Costs  $193 million
Resident Enrollment Growth   $62 million
Academic Facilities and Infrastructure  $247 million
Basic Needs Initiative   $15 million
Total $562 million 

Additional details of the Governor's proposed California Budget may be found on the California Budget Website.

November 2018 Update

As a foundational step in the annual budget process for the California State University and the respective campuses, the CSU Board of Trustees votes to approve an annual operating budget plan that is proposed to the State of California and the Governor.  At the November CSU Board of Trustees meeting, the Board adopted a resolution approving the proposed 2019/20 CSU operating budget plan.  The CSU proposed a $7.3 billion operating budget for 2019/20, with $4.1 billion from the state General Fund and $3.2 Billion from tuition and fee revenue.  This budget plan represents an expenditure increase of $554.3 million over the 2018/19 operating budget.

The operating budget request supports Graduation Initiative 2025, funds the cost of compensation for current and pending employee contracts and commitments, and supports a 5.0% increase in resident enrollment (equivalent to 18,207 new full-time resident students), mandatory costs, and funding towards academic facilities and infrastructure projects.

Uses of Funds  Amount %
Graduation Initiative 2025

$75 million

13.5%
Compensation Increases   $147.8 million 26.7%
Five Percent Increase in Resident Enrollment $206.1 million

37.2%

Mandatory Cost Increases

  8.2%
  • Health Benefits
$7.3 million  
  • Retirement
$26.5 million  
  • Maintenance of New Facilities
$4.8 million  
  • Minimum Wage Increase
$6.8 million  
Academic Facilities and Infrastructures $80 million 14.4%
Total New Uses $554.3 million 100%


To fund these commitments, the 2019/20 operating budget plans for an increase of $456.0 million in General Fund support and a $98.3 million net increase in tuition revenue generated from the 5% enrollment growth.

Sources of Funds   Amount
General Fund Increase   $456 million
  • Operating Budget
$376 million  
  • Academic Facilities and Infrastructure
$80 million  
Tuiition from 5% Enrollment Growth (18,207 Full Time Equivalent Students' Revenue)   $98.3 million
Total New Sources   $554 million

 

Additional details may be found online of the CSU 2019/20 Operating Budget.

August 2018 Update

In June 2018, Governor Brown signed and enacted the 2018/19 California State Budget, appropriating General Funds of $3.6 billion towards the California State University.  This resulted in a base (ongoing) increase of $197 million to the CSU’s annual Support Budget.  The incremental base funding will support the Graduation Initiative 2025 (student success), employee compensation, benefit obligations, and other mandatory costs.  While the approved budget was greater than the earlier proposals from the Governor and the Assembly, the budget is less than the CSU's Support Budget request of $263 million for ongoing needs, and did not provide funding for enrollment growth as requested by the CSU.

SJSU received $8.9 million in General Fund support for 2018/19, plus $5.6 million for prior year adjustments relating to compensation and retirement.  Additional details on the allocation of funds across the university can be found in detail in the 2018-19 Annual Budget Report.

 

April 2018 Update 2

The Chancellor will not bring forth a tuition increase recommendation to the board of Trustees in May.  Instead, he issued a letter to the campus community asking everyone to join with him in sustaining advocacy efforts.  The Governor will issue an updated budget plan in May ("May Revision").  This will be the next opportunity, but not the last, for an increase to the new funds planned for CSU, which currently stand at $92 million.

April 2018 Update 1

On April 19, 2018, a SJSU Budget Forum was hosted to describe the plans for the 2018/19 budget year.  President Papazian, Vice President for Administration and Finance Charlie Faas, and Provost Andy Feinstein joined the forum to address questions.  The presentation and video are available for viewing online.

 

January 2018 Update

On January 10, 2018, Governor Brown released his initial 2018-19 state budget, with a proposed increase of $92.1 million for the CSU, which amounts to a 1.4 percent increase to the CSU’s operating budget.  This proposed level of funding fell short of the support anticipated by the CSU.  As a result, a budget gap of $171 million exists between the Trustees’ budget request and the Governor’s proposal.  The CSU will continue to make the case with state leaders that additional investment in the CSU is essential.  The CSU is also contemplating CSU-controlled strategies, notably a potential tuition increase and a potential reduction to academic and non-academic programs and services.

A statement from CSU Chancellor Timothy P. White on the 2018-19 state budget proposal may be found online at the CSU NewsCenter.

Additional Resources:

Governor's Proposed California Budget for 2018-19
Statement from CSSA on Proposed 2018-19 State Budget
CSU 2018-19 Operating Budget

 

November 2017 Update

As a foundational step in the annual budget process for the California State University and the respective campuses, the CSU Board of Trustees votes to approve an annual operating budget plan that is proposed to the State of California and the Governor.  At the recent November CSU Board of Trustees meeting, the Board adopted a resolution approving the proposed 2018/2019 CSU Operating Budget Plan. 

The 2018/19 plan prioritizes the following uses, which together amount to a total increase in the expenditure budget of $282.9 million.

Proposed Incremental Expenditures Amount
Graduation Initiative 2025 $75.0 million
Employee Compensation $122.1 million
1.0% Growth Full-Time Equivalent Students $39.9 million
Facilities and Infrastructure Needs $15.0 million
Other Mandatory Costs $30.9 million
Total $282.9 million

To fund these commitments, the 2018/2019 operating budget plans for $102.0 million of General Fund revenue per the Governor’s Funding Plan and a $19.9 million net increase in tuition revenue generated from enrollment growth.  To meet the prioritized needs of the CSU, the plan requests an additional $161.0 million in General Fund Revenue to address the funding shortfall. 

Anticipated Revenue  Amount
General Fund Revenue from Governor’s Funding Plan $102.0 million
Net Tuition from Enrollment Growth $19.9 million
Board of Trustees Additional Request $161.0 million
Total $282.9 million

While the CSU’s highest priority is to continue to advocate for and pursue increased state funding to cover the full operating budget request, the state allocation will not be known until a final budget agreement is reached in June 2018.  Until that time, CSU stakeholders will be considering funding alternatives and pursue cost avoidance strategies and administrative efficiencies.  More information will be shared as it becomes available.

Additional details can be found online at CSU 2018-19 Operating Budget.