2016/17 SJSU Fiscal Outlook
On May 13, 2016, Governor Brown revealed his proposed revisions to the 2016-17 California budget with a cautious outlook of $122.2 billion (6% increase over 2015/16) in general funds for the coming fiscal year. The revision reflects no cuts in the current plan but does include $25 million in one-time funding for the CSU. This one-time funding is contingent upon the trustees articulating clear, coherent plans for the University as a whole and for each campus, that indicate the timeframe by which the system and campuses will (1) increase four‑year graduation rates and two‑year transfer graduation rates to at least the rates of other institutions and (2) increase the graduation rates for Pell‑eligible students to at least the rates of their non‑Pell‑eligible peers. There is currently no indication how the CSU will allocate the funds.
The governor also emphasized the state’s need to prepare for a potential economic downturn and amass general fund reserves of $6-8 billion. According to Moody’s, the average recession lasting 3 years will cost the state $50 billion, or roughly $17 billion a year. Governor Brown also indicated that pursuit of new initiatives should be curtailed, contingent on renewal of Proposition 30. Proposition 30 provides significant support to higher education and is scheduled to sunset over the next two years. The governor has stated that the voters of California must decide whether to extend the temporary revenue measure.
In light of this revision, the overall CSU budget for next year is largely unchanged versus what was offered in January. SJSU will be able to cover all mandatory costs while continuing to pursue two primary university priorities over the coming fiscal year. These include improving graduation rates through broader course availability (Average Unit Load), and recognizing the talent and hard work of university faculty and staff with a general salary increase. Available one-time funds used to support a variety of division priorities that improve the ability of SJSU to achieve its mission of accessible, high quality, global education in the heart of Silicon Valley are still under discussion with Interim President Martin, incoming President Papazian, and the Cabinet.
Spring 2016 What's Up?
The Spring 2016 What's Up? presentation was held on Monday, May 9th. Finance What's Up? is held twice a year and it gives us the opportunity to keep the campus updated on the latest news, projects, and goals for departments within the Finance Service Group. All members of the campus community with procurement, accounting, or budget responsibilities are invited. Look for this update program again in the fall.