Memorandum:
Summary of the fiscal context and parameters within which
the 2001-02 campus budget planning will be conducted.
DATE: March 26, 2001
TO: Vice Presidents Anatol, Bersi,
Griffith, and Robinson
Director of Sports, Athletics and Recreation Shumard
FROM: 2001-02 Resource Planning
Process Task Force
SUBJECT: Campus Budget Planning
for FY 2001-02
This memorandum provides a summary
of the fiscal context and parameters within which the 2001-02
campus budget planning will be conducted.
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Fiscal Context The outlook for the State, CSU
and for the campus is positive for this fiscal year. Following
the robust year of 2000, the State’s general economy
has slowed due to depressed revenues and the escalating energy
crisis. Nonetheless, we remain reasonably confident that the
base recommendations for the CSU contained in the Governor’s
proposed budget will remain intact.
The upcoming year will be the second
that Governor Davis has supported the budget agreement or
“partnership” with higher education. The partnership
provides for an average annual increase of 4%, plus additional
funding for enrollment growth and long-term budget needs.
Resources above the partnership are also included for high
priority initiatives and capital outlay. In return, the CSU
and UC have agreed to achieve certain accountability goals,
including admission for all eligible California students,
improved outcomes such as graduation rates and timeliness
to degree, increased number of community college transfers,
greater responsibility for assisting K-12 schools, and increased
utilization of facilities.
The Governor’s 2001-02 Budget
proposes a $291.5 million (9.3%) general fund increase to
the CSU. The expenditure plan provides funding to support
a system-wide enrollment increase of 3.0% or 8,759 full time
equivalent students (FTES), a 4.0% salary increase pool for
all employees, mandatory costs, technology, libraries and
deferred maintenance. Four CSU campuses (San Diego, San Francisco,
Fullerton and Long Beach) will receive funding to convert
summer instructional programs from self-support to state-support.
For 2001-02, system-wide student fees will remain the same
and the Governor has included $17 million to replace the additional
revenue that would otherwise be generated had fees been raised
by 4.9%.
The CSULB general fund budget is estimated
to increase by $26 million, which represents a 12.5% increase
over the prior year. To these funds, we will add local revenues
bringing the total increase in our state operating budget
to nearly $30 million. A substantial portion of these new
resources will be earmarked for specific expenditures and
prior claims such as employee salary increases, benefits,
energy, summer operations, library, deferred maintenance,
financial aid, insurance premiums, and the new student administration
system, leaving an estimated $8 million in discretionary funds
available for campus priorities. After allowing for faculty
and support costs to accommodate the new enrollment and related
workload demands, roughly $4 million remains to consider budget
requests for new and continuing needs. Exhibit #1 provides
a summary of the estimated changes in campus resources and
expenditures for the coming budget year.
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Enrollment The campus enrollment
target for 2001-02 has been set at 24,000 FTES, an increase
of 1,175 FTES above the funded level (and 906 FTES above the
actual enrollment level) for the current year. Actual enrollment
next year, for the first time several years, is expected to
match the funded level very closely. In addition to the increase
in our academic year target, we have been given a funded target
of 1,145 FTES for our first state-supported summer session.
Because the master plan capacity
of the campus is only 25,000 FTES, it is clear that we are
very quickly approaching a ceiling on enrollment. To avoid
creating a situation where the demand for classes exceeds
our physical plant capacity, it will be necessary to take
additional steps to slow the rate of enrollment growth. As
a result, future increases in the University’s funded
target will be smaller than the one provided for 2001-02.
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University’s Mid-Range Goals The University’s Mid-Range
Goals will once again serve as the framework for RPP budget
planning. These goals define priorities for the campus for
the coming 2-3 year period and will serve to guide divisions
in preparing proposals and RPP and recommending allocations.
Mid Range Goals reflect major, all-university,
mid-term priorities, not division-specific issues. The Goals
do not encompass all activities that the campus must continue,
only key areas to be given special resources and attention
over the coming 2-3 years. Eight planning areas of all-university
concern have now been identified. (Exhibit 2)
1: Enrollment Management
2: Resource Management in a No-Growth Era
3: Year Round Operations
4: Quality of Programs and Services
5: Quality of the Physical Environment
6: Common Management System
7: Assessment, Quality and Accountability
8: Non-State Revenue
The University is now measuring its
progress towards attainment of Mid-Range Goals. The Office
of Strategic Planning has prepared a report on progress toward
last year's goals. To make this information easily available
to the campus, the Office of Strategic Planning web site provides
the full text of the current year's goals, last year's goals
and the progress report at http://www.csulb.edu/web/projects/planning.
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Local Budget Planning Process The Task Force recognizes the
importance of budget stability and recommends that the divisions’
base budgets be retained and the workload funding model be
continued as underlying budget assumptions for the 2001-02
planning cycle. The Task Force recognizes that our increased
enrollment impacts the entire institution and the model has
been a key component in helping to address these pressures
over the past three years. The workload funding model insures
that instructional capacity and services are in place before
the fall term begins. The planning process will also include
the opportunity for divisions to submit budget proposals for
funding consideration.
New Workload Needs ($3.9 million) · Faculty resources will
be provided to accommodate the new funded enrollment growth
of 1,175 FTES.
· A portion of the permanent discretionary dollars
will be allocated to each division proportionate to their
existing base budget to partially address new incremental
non-faculty workload.
· Divisions are expected to accommodate all changes
in workload related to the funded enrollment growth (5.1%
for 2001/02) from these allocations.
Traditional Proposal Process ($4 million) · The balance of the
discretionary dollars is reserved for the traditional budget
proposal process.
· Proposals that qualify include workload in excess
of the rate of the University’s funded enrollment
growth, past unmet needs, new initiatives, and external
compliance requirements.
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Division’s Budget Submissions A major objective of the Task
Force is to create effective links between the University’s
Mid-Range goals and the budget planning process. Each division
is asked to submit a concise narrative describing how their
divisions are currently advancing the campus toward these
goals.
It is understood that there are required
activities that fall outside the scope of the Mid-Range Goals
and divisions may present budget requests that are not directly
related to the specific planning areas. Divisions are reminded
that budget requests for new personnel costs need to take
into consideration the decision that salary budgets will be
decentralized on July 1, 2001.
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Forms and Instructions Forms and related instructions
will be provided under separate cover to each division executive.
Division submissions are due in the Office of Administration
and Finance by Tuesday April 3, 2001. Divisional hearings
and deliberations will commence shortly thereafter. Deans,
directors and department heads should look to their respective
division offices for specific instructions on how to respond
to internal divisional planning strategies.
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Future Updates & Contact Person Although the State’s long-term
economic outlook remains positive, the state will face several
near-term challenges that may negatively impact the CSU in
securing additional resources in the May Revise. Nonetheless,
we remain optimistic that the base recommendations for the
CSU will sustain the Legislative Budget Process. The University
will report any new budget developments and the Task Force
will incorporate appropriate changes into our budget planning
process.
Supplemental information on the State’s
economic forecast, the CSU and campus budget plans is available
by contacting Robyn Mack, Budget and Human Resources Management,
ext. 5-8216.
Attachments C: President Maxson
Deans, Directors and Department Heads
Academic Senate
Staff Council
Library Reserve Book Room
