Cal Poly Pomona will see a $31.9 million increase in its base operating budget, including $20.5 million in recurring revenues thanks to the state fully funding the CSU system’s budget request.
In June, state lawmakers approved a budget that included $550 million in new recurring funding for the CSU, including the restoration of $299 million previously reduced from the 23-campus systemwide budget in 2020.
The CSU also received an additional $976.3 million in one-time funding for specific initiatives including:
- $67 million for operations (includes emergency financial assistance grants for low-income students, faculty professional development and other critical investments)
- $898 million for facilities and infrastructure
- $11.3 million for legislative priorities
How Cal Poly Pomona’s Budget Outlook Fares
Cal Poly Pomona’s base operating budget for fiscal year 2021-22 totals $363 million, a $31.9 million increase compared to the 2020-21 figures. Approximately $20.5 million of those new recurring revenues come from state appropriations and are net resources the campus has available for use. The remaining $11.4 million is from tuition and fees.
The divisions recently were notified about the allocations they will receive and are working diligently to deploy resources to departmental budgets.
“Funding is tied to strategic initiatives, including student success, tenure-track faculty and support of campus operations,” said Joe Simoneschi, associate vice president of finance and administrative services.
In addition, the university will receive an approved allocation of one-time funding totaling $5.8 million, which includes $3.4 million for Graduation Initiative 2025, $1.8 million for emergency financial assistance grants for low-income students and $600,000 for faculty professional development.
A campus conversation event outlining the university’s fiscal year 21/22 budget plan is set for Oct. 26.
University Still Utilizing Federal HEERF Funds
The university continues to utilize federal HEERF grant funding received to assist with the effects of the COVID-19 pandemic and the safer return to campus of students, faculty, and staff. Cal Poly Pomona received three HEERF tranches funding from the Department of Education in total, with most of the funding going directly to provide financial assistance to students.
“We have a greater need than we have funding for,” Simoneschi said.
HEERF spending to date includes the following:
- Emergency grants to students – $38.39 million
- Faculty training, course conversion – $1.85 million
- Safety, Sanitizing, PPE – $318,153
- Technology – $822,185
- Refunds for housing, parking, meal plans, course fees, etc. – $9.98 million
- Recovery of General Fund Shortfall – $18.37 million
- Recovery of Parking Services Shortall – $1.99 million
- Emergency Pay – $493,202
The university has until June 2022 to spend the remainder of the federal funds.
“We are finalizing the priorities of need to ensure the continued health and safety of our campus community,” he said.
How the Budget Process Works
Cal Poly Pomona starts its multi-year budget process in late October or early November of each year. The next budget cycle will include fiscal years 2022-23 through 2024-2025.
Once budget instructions are released, divisions have approximately eight weeks to engage constituencies within their departments so input can be made and provided to divisional leadership on support of strategic initiatives. Division vice presidents review requests, along with the university’s budget principles and strategic initiatives, and determine what requests are submitted to Budget Services, Simoneschi said.
Budget Services provides finalized reports and upcoming fiscal year projections for any new or lost revenue and spearheads the allocation process for the university with the cabinet and the president.
In June, proposed allocation recommendations are made pending final funding allocations to the campus from the chancellor’s office.
This Budget Brief is the latest in a series of stories that aims to keep the campus community informed on how California’s current financial crisis will affect Cal Poly Pomona’s bottom line and what actions the university is taking to close the budget gap and balance the budget.