The CSU proposes an $8.7 billion operating budget for 2024-25, with $5.4 billion from the state General Fund and $3.3 billion from tuition and fee revenue. As shown in Table 1, this budget plan is an increase of $557.4 million over 2023-24. Table 3 summarizes the sources and uses of funds that make up the $557.4 million increase. Because of the multi-year compact and tuition proposal, the 2024-25 budget plan indicates sources and uses of funds within and above the amount of funds provided by the multi-year compact. The 2024-25 budget plan reveals that within the compact, the CSU would prioritize student access and success, grow student enrollment and financial aid, provide workforce investments for all employee groups and cover institutional infrastructure costs. All budget priorities included in the plan could be supported by a combination of sources from within and above the compact and from new tuition revenue.
Table 3: Sources and Uses of Funds
Incremental New Revenue
|
| | |
State General Fund
| $240,243,000
| $144,546,000
|
$384,789,000
|
Tuition from Rate Increase
| 148,330,000
|
|
148,330,000 |
Tuition from Strategic Resident Enrollment Growth
| 24,278,000
|
|
24,278,000 |
|
TOTAL NEW SOURCES |
$412,851,000 |
$144,546,000 |
$557,397,000 |
|
Incremental New Expenditures | | | |
Financial Aid
| | | |
State University Grant — Tuition Rate Increase
| $49,443,000
| |
$49,443,000 |
State University Grant — Enrollment Increase
| 8,093,000
| |
8,093,000 |
Student Access and Enrollment
| 54,957,000
| |
54,957,000 |
Graduation Initiative
|
| 30,000,000
|
30,000,000 |
Student Basic Needs
and Mental Health
| 3,000,000
| 4,000,000
|
7,000,000
|
Institutional Support
| | |
|
Title IX and DHR Programs
| 7,900,000
| 8,000,000
|
15,900,000 |
| State and Federal NAGPRA Compliance | 2,250,000
| 2,000,000
|
4,250,000
|
Maintenance of New Facilities
| 12,548,000
|
|
12,548,000
|
Liability and Property Insurance Premium Increases
| 22,635,000
| |
22,635,000
|
Inflation on Non-Personnel Costs
|
| 28,506,000
|
28,506,000
|
Debt Service on Academic Facilities & Infrastructure
| 10,000,000
| 15,000,000
|
25,000,000
|
CSU Workforce Investments
|
|
|
|
| Faculty and Staff Compensation Pool | 163,664,000
| 57,040,000
|
220,704,000 |
Health Premium Increase
| 78,361,000
| |
78,361,000 |
|
TOTAL NEW USES |
$412,851,000 |
$144,546,000 |
$557,397,000 |
Tuition: Increase
| $2,448
| $148
| 6% |
Tuition: Access & Enrollment
|
| 24
| 1%
|
Campus-based Mandatory Fees
| 672 | | |
General Fund: Compact Commitment
| 4,989
| 240 | 5% |
General Fund: Additional Request
| | 145
| 3%
|
TOTAL
| $8,109
| $557 | 6.9% |
ESTIMATED INCREMENTAL NEW REVENUE: $413 MILLION TO $557 MILLION
Forecasted revenues of $412.9 million would be available to support the budget plan and include the 2024-25 compact commitment ($240.2 million), the tuition rate increase ($148.3 million), and tuition from the 1% resident, undergraduate enrollment growth ($24.3 million). The estimated revenues are insufficient to support the expenditure plan, so an additional request for ongoing funds above the state compact ($144.5 million) is included in the budget plan.
STATE GENERAL FUND: $240 MILLION TO $385 MILLION
The CSU anticipates that the governor’s administration will again propose an ongoing state General Fund increase of 5% ($240.2 million) for 2024-25. A foundational feature of the compact provides the CSU the opportunity to differentiate the revenue assumptions of the 2024-25 operating budget plan. The compact’s 5% state General Fund commitment, along with the additional tuition revenue, will not fully cover the expenditure plan. As a result, the CSU requests an additional $144.5 million in state funding above the compact commitment.
REVENUE FROM TUITION RATE INCREASE: $148 MILLION
The multi-year tuition plan will increase rates beginning in the 2024-25 year. The additional revenue resulting from the 6% rate increase for all levels of education is included in the budget plan and will allow the CSU to invest more fully in the trustees’ budget priorities and more adequately advance student success. The additional tuition revenue estimated from the increase is $148.3 million in 2024-25.
REVENUE FROM STRATEGIC ENROLLMENT GROWTH: $24 MILLION
As part of the compact, the CSU is committed to grow enrollment equivalent to a 1% increase, or approximately 3,484 resident, undergraduate, full-time equivalent students (FTES) in 2024-25. The additional tuition revenue from the enrollment growth is estimated to be $24.3 million.
Student Access & Success
| | | |
Financial Aid: State University Grant
| $701
| $58
| 8%
|
Student Access & Enrollment
|
| 55
|
|
Graduation Initiative
| 380
| 30
| 8%
|
Student Basic Needs & Mental Health
| 95
| 7
| 7%
|
Institutional Support
|
| | |
TItle IX & DHR Programs
| 20
| 16
| 80%
|
State & Federal NAGPRA Compliance
|
| 4
|
|
Required Operational Costs
| 400
| 63
| 16%
|
Debt Service on Facilities & Infrastructure
| 440
| 25
| 6%
|
CSU Workforce Investments
|
| | |
Faculty & Staff Compensation Pool
| 5,374
| 221
| 4%
|
Health Premiums
| 699
| 78
| 11%
|
Total
| $8,109
| $557
| 6.9%
|