The California State University Board of Trustees heard Wednesday a preliminary overview of the system’s budget request for 2012-13 that will be brought to the board for action at its next meeting in November. It is expected that the state will continue to face severe budget challenges in 2012-13, and national and state economic recovery remains weak with many economists warning of the possibility of a “double dip” recession.

Despite the state’s fiscal condition, the CSU has legitimate funding needs critical to its mission, CSU Assistant Vice Chancellor for Budget Robert Turnage told the trustees. 

 “The preliminary budget plan represents about an 8.25 percent year-over-year increase, but it is only a partial recovery from the cuts that we have taken,” Turnage said.

The budget framework assumes that any additional “trigger cuts” that may occur in the 2011-12 fiscal year will be one-time and not affect the ongoing base of state support that the CSU receives. The CSU faces an additional mid-year cut of up to $100 million ¿ on top of an already enacted cut of $650 million ¿ if state revenue forecasts are not met. This would reduce CSU state funding to $2 billion or a year-over-year reduction of 27 percent in state support.

Included in the CSU’s preliminary budget plan is a 3 percent compensation increase for all employees, and enrollment growth of 5 percent. Overall, the CSU has identified $315 million in needed ongoing revenue increases including:

• Enrollment growth (5 percent) ¿ $100 million
• Mandatory costs (health/dental benefits, energy ¿ $50 million
• Compensation increase (3 percent “pool”) ¿ $95 million
• Graduation Initiative/Student Success ¿ $40 million
• Urgent maintenance needs ¿ $15 million
• Information technology infrastructure upgrade/renewal ¿ $15 million
• Total ongoing revenue increase ¿ $315 million

An updated and detailed budget recommendation will be presented to the board for action in November.