Trustees Approve 2007-08 Budget Request

The California State University Board of Trustees approved a $4.5 billion budget request to the state for fiscal year 2007-08, which proposes an increase of $266.8 million over the current year's allocation.

The budget consists of $3.0 billion from the state General Fund, $1.2 billion from State University fee revenue, and $183.3 million from reimbursement funding.

The proposed budget recognizes the funding agreement under the Compact for Higher Education, which provides a 4 percent or $109.7 million increase for general operations, $64.2 million for enrollment growth of 2.5 percent to fund an additional 11,000 students, and $2.5 million for an additional 200 nursing students at the master level. In addition, the CSU will receive $25.2 million in revenue from fees associated with the 2.5 percent enrollment growth.

The budget also assumes a $65.2 million state General Fund revenue augmentation to avoid any increase in student fees in the 2007-08 fiscal year.

“We all agree that college affordability is critical to ensure a well-prepared workforce for the future of California,” said CSU Board of Trustees Chair Roberta Achtenberg.

If the budget is approved by the state, the CSU will continue to maintain the lowest undergraduate fees among CPECs (California Postsecondary Education Commission) 15 higher-education public institutions, which historically are referenced for comparisons of faculty salaries and student fees. The average 2007-08 resident, undergraduate student fee would continue to be $3,199, including systemwide and campus fees. The same fee at the comparison institutions averages $6,665.

“The proposed budget requests full funding under the Compact for Higher Education to support an overwhelming demand for enrollment, address CSU employee salaries, and meet ever increasing health benefits and energy costs,” said CSU Chancellor Charles B. Reed. “We are also requesting $71.7 million above the compact to support educational priorities of the Trustees, the Governor and the Legislature.”

Included in the funding above compact request is an additional 1 percent to address employee salary gaps. The recommended budget plan provides $83 million for a 3 percent compensation pool and $47 million to fund the second year of the five-year plan to close employee salary gaps. In addition, the budget plan also seeks funding above the compact to add another one percent to compensation to make additional progress to reduce the salary gap.

Above compact funding would also address high priority education issues such as increasing the number of K-12 math, science and special education teachers, nurses, counselors and tutors to help student progress to the degree, increased access for students with disabilities, and more financial aid for educationally and disadvantaged students. Finally, the above compact funding would also support applied research to increase biotechnology, agriculture, marine science and fresh water programs that are directly tied to California's workforce preparation. The CSU is also requesting $50 million in one-time funding for technology equipment and deferred maintenance.

The CSU funding priorities were formed keeping an eye toward long-range goals and needs of the university, and in consultation with the members of the Board of Trustees, campus presidents, representatives of the CSU Academic Senate and members of the System Budget Advisory Committee.

Budget Expenditure Highlights:

  • $42 million for mandatory cost obligations, including $28 million for health care benefit increases   
  • $76.7 million for 2.5 percent resident student enrollment growth (8,351 FTES)   
  • $2.5 million for Master of Science in Nursing enrollment growth (163 FTES)   
  • $6.2 million for financial aid set-aside from enrollment growth (33 percent of Marginal Cost Fee Revenue)   
  • $82.8 million for a 3 percent compensation pool for all employee groups    
  • $47 million to reduce the salary gaps   
  • $2.5 million to address long-term shortfalls in funding for library acquisitions   
  • $2.5 million to continue reductions in the backlog of deferred maintenance   
  • $5 million for academic technology   

An executive summary of the 2007-08 Support Budget may be found as part of the Board of Trustees November agenda documents