The 2018-19 operating budget plan calls for continued and increased state investment in the CSU. We believe this budget plan, which totals $282.9 million in new resources for 2018-19, reflects the current needs of the CSU and sustains the momentum built in recent years. The new resources are comprised of $263.0 million in General Fund and $19.9 million of tuition revenue from enrollment growth. Additionally, campuses will address inflationary cost increases of $17.4 million using cost avoidance, efficiencies, and program reallocation. The CSU’s $6.8 billion total operating budget plan is comprised of: $3.7 billion in state general fund and $3.1 billion from tuition and fee revenue.
At the heart of the operating budget plan lies Graduation Initiative 2025. The CSU has set ambitious and challenging goals to raise four and six-year graduation rates, completely eliminate the achievement gap, and educate more students to meet the societal and workforce needs of the state. The operating budget includes a $75.0 million increase for campuses for a multi-faceted approach, including a focus on students taking full-time course loads each term, using data to increase the availability of the right sequence of courses, hiring more tenure-track faculty, and restoring student services that were cut during the recession years.
The budget plan also dedicates an additional $122.1 million for employee compensation increases. Faculty and staff are critical to the success of students. Funding requests for compensation are based on the cost of current and tentative collective bargaining agreements, as well as a compensation pool for non-represented employee groups in 2018-19.
The CSU anticipates funded enrollment growth of 3,641 resident full-time equivalent students (FTES), raising the total systemwide funded FTES to 367,772. A $39.9 million expenditure augmentation is included in the budget plan to fund this enrollment growth.
This plan includes $15.0 million for academic facilities and infrastructure needs. This would allow the CSU to slow the growth in the deferred maintenance backlog and reduce its overall impact across the system.
In addition to the Board of Trustees priorities outlined here, new state funding will be used to fund $30.9 million of mandatory cost increases for health benefits, retirement, the operation and maintenance of new buildings, and the effect on salaries due to changes in state minimum wage laws.
New to this year’s operating budget plan is the acknowledgment that campuses regularly face inflation and other cost increases and do so without funding from the state or the Office of the Chancellor. Instead, campuses confront cost increases on routine services, supplies and equipment and make difficult business choices. As a result, campuses are extremely efficient with their resources and, by comparison to other institutions, have considerably low administrative overhead.
Going forward, a number of fiscal challenges must be addressed so the CSU can focus on its core mission. The 2018-19 operating budget plan is a step in the right direction and represents a significant investment in a multi-year effort to meet the education and workforce needs of the state. Yet, without increased investment from the state, the CSU cannot meet its obligations to the people of California or its mission to provide a high-quality, affordable, and accessible education to all students.
Sources of Funds
Distribution of Budget Increases
Three-Year Budget Summary