T HE C ALIFORNIA H IGHER EDUCATION B UDGET C YCLE University Budget - - PowerPoint PPT Presentation

University Budget Committee: 9-16-2016 Meeting – Agenda Item 6 1

THE CALIFORNIA HIGHER EDUCATION BUDGET CYCLE

University Budget Committee September 16, 2016

University Budget Committee: 9-16-2016 Meeting – Agenda Item 6 2

CONTENTS

1. THE RESOURCE ALLOCATION PROCESS 2. RESOURCE ALLOCATIONS PROCESS: DETAIL I – CSU TO LEGISLATURE 3. RESOURCE ALLOCATIONS PROCESS: DETAIL II – LEGISLATURE TO CSU 4. RESOURCE ALLOCATIONS PROCESS: DETAIL III – CSU TO CAMPUSES 5. RESOURCE ALLOCATIONS PROCESS: DETAIL IV – CSU CHICO TO DIVISIONS 6. RESOURCE ALLOCATIONS PROCESS: DETAIL V – AA TO UNITS 7. ACADEMIC AFFAIRS RESOURCE ALLOCATIONS PROCESS: IN SUMMARY 8. DISCUSSION SEGMENT

University Budget Committee: 9-16-2016 Meeting – Agenda Item 6 3

THE RESOURCE ALLOCATION PROCESS

From To Allocation Further Information

Legislators CSU CSU Support Budget / Governor’s Budget – HE Section

http://www.calstate.edu/budget/fybudget/2016-2017/executive- summary/ http://gov.ca.gov/news.php?id=17888

CSU CSU, Chico Budget Allocations: Mandated Cost; Compensation; Others; FTES Growth @ Marginal Cost of Instruction

http://www.calstate.edu/Budget/ http://blogs.calstate.edu/budgetcentral/

CSU, Chico Academic Affairs Strategic ‘Off-the-Top’ : Divisional Percentage, AA around 72%

http://www.csuchico.edu/bud/budgetplans/index.shtml http://www.csuchico.edu/fs/committee_list/ubc.shtml

Academic Affairs Colleges / Units Budget allocations informed by Unit Plans and ABC-DE Annualized FTES Funding Model

http://www.csuchico.edu/vpaa/planning/resourceallocation/index.shtml

Colleges / Units Departments / Units Office of the Dean / Unit Manager Check with your Dean’s Office / Unit Manager Office

University Budget Committee: 9-16-2016 Meeting – Agenda Item 6 4

THE RESOURCE ALLOCATION PROCESS: DETAIL I

CSU TO LEGISLATORS – BUDGET CYCLE http://www.calstate.edu/budget/fybudget/2016-2017/executive-summary/

University Budget Committee: 9-16-2016 Meeting – Agenda Item 6 5

THE RESOURCE ALLOCATION PROCESS: DETAIL I

CSU TO LEGISLATORS – BUDGET CYCLE http://www.calstate.edu/budget/fy budget/2016- 2017/documentation/

University Budget Committee: 9-16-2016 Meeting – Agenda Item 6 6

THE RESOURCE ALLOCATION PROCESS: DETAIL I

CSU TO LEGISLATORS

A budget is a public statement of an institution’s priorities. This is as true for the State of California as it is for the California State University. State leaders took an important step this June by fully funding the 2015/16 CSU Support Budget request—a first in nearly a decade. This prioritization means that our 23 campuses will collectively educate an additional 12,000 students, strategically invest in educational enhancements that empower student success, take larger steps to recruit and retain a quality faculty and staff, and address critical facilities and infrastructure needs. … While small but steady increases are helpful, the CSU and the state cannot lose sight of the fact that much work

• remains. During the Great Recession, the state cut nearly $1 billion from the CSU. Today, only about $600 million of

those unallocated cuts have been restored. The consequences, of course, are persistent challenges in serving the needs of California today and for our future. … The CSU budget plan for 2016/17 pushes one of the most efficient and effective higher education systems in the nation to focus on quality, while calling on the state to commit to increasing opportunity, by:

• Increasing access for community college transfer and first-time freshmen students
• Enhancing student success and completion efforts
• Addressing compensation issues for faculty and staff
• Providing adequate academic facilities through repair, replacement, and improvement
• Funding CSU mandatory costs

I trust that our elected leaders in Sacramento will carefully consider and fund this request. Millions of Californians have benefited from excellent educational opportunities on our campuses. These alumni have, in turn, contributed to the collective good of this great state. I have confidence that our elected leaders will prioritize investment in the next generation, so that millions more of our fellow Californians will benefit directly and indirectly from this great institution.

Timothy P. White

Chancellor The California State University http://www.calstate.edu/budget/fybudget/2016-2017/executive-summary/message.shtml

University Budget Committee: 9-16-2016 Meeting – Agenda Item 6 7

THE RESOURCE ALLOCATION PROCESS: DETAIL I

CSU TO LEGISLATORS

http://www.calstate.edu/budget/fybudget/support-budgets/

University Budget Committee: 9-16-2016 Meeting – Agenda Item 6 8

THE RESOURCE ALLOCATION PROCESS: DETAIL II

LEGISLATORS TO CSU (Pp. 33-51)

http://www.ebudget.ca.gov/2016-17/pdf/BudgetSummary/FullBudgetSummary.pdf

University Budget Committee: 9-16-2016 Meeting – Agenda Item 6 9

THE RESOURCE ALLOCATION PROCESS: DETAIL II

LEGISLATORS TO CSU

(page 41) http://www.ebudget.ca.gov/2016-17/pdf/BudgetSummary/HigherEducation.pdf

CSU IS FOCUSING ON OUTCOMES, BUT FOUR-YEAR GRADUATION RATES LAG While CSU provides an affordable pathway to a bachelor’s degree for many Californians, the University continues to struggle to support students in completing these four-year degrees within four years—as many students and families

• expect. Recent reports submitted by the

Chancellor’s Office indicate that fewer than one in five students who enter the CSU as freshmen (with the intent to enroll full-time) graduate within four years. Figure HED-03 displays graduation rates across campuses. The CSU Chancellor and the University’s Trustees have expressed a commitment to addressing this persistent challenge. Building on prior efforts, the Chancellor recently announced the Graduation Initiative 2025, the goal of which is to increase four-year rates systemwide to 24 percent by 2025.

University Budget Committee: 9-16-2016 Meeting – Agenda Item 6 10

THE RESOURCE ALLOCATION PROCESS: DETAIL II

LEGISLATORS TO CSU CSU IS FOCUSING ON OUTCOMES, BUT FOUR-YEAR GRADUATION RATES LAG (CONT.) The initiative specifically addresses achievement gaps. In a recent report, the CSU indicated that four-year graduation rates of first-time freshmen who received Pell Grants is 11 percent lower than their peers. Similar disparities exist between students of different ethnicities. The focus on these challenges is commendable. However, the Trustees’ sustainability plan based its goals on the continuation of past trends rather than setting more ambitious graduation rates. Given the magnitude of these challenges and their real impacts on students each year, this work must be done more quickly. Last year, the Chancellor established a task force to reevaluate the CSU’s financial system— including how it allocates dollars to its campuses. This is an opportunity to further focus on student

• success. The 2015 Budget Act provided an additional $225 million General Fund ongoing—the full

amount requested by the Trustees Of that, the Chancellor’s Office allocated $20 million for “student success and completion” initiatives, as well as $5 million for campus funding based on student outcomes—as opposed to more traditional allocations based on enrollment. While the Chancellor’s efforts are steps in the right direction, the Administration expects to see continued work in the budget year to advance these reforms, including the adoption of a funding model based primarily on student success that targets additional resources to campuses that are successfully serving the students with the greatest needs.

University Budget Committee: 9-16-2016 Meeting – Agenda Item 6 11

THE RESOURCE ALLOCATION PROCESS: DETAIL II

LEGISLATORS TO CSU – LAO ANALYSIS

University Budget Committee: 9-16-2016 Meeting – Agenda Item 6 12

THE RESOURCE ALLOCATION PROCESS: DETAIL III

CSU TO CAMPUSES

Coded Memo B 16-02 : http://www.calstate.edu/budget/fybudget/coded-memos/

The Governor signed the Budget Act of 2016 on June 27, 2016 (Senate4 Bill 826, Chapter 23). The budget act includes a $154 million base General Fund increase to the CSU support budget. This coded memo addresses incremental General Fund allocations for the CSU included in the Budget Act of 2016 and systemwide tuition revenue projections. This memo displays three types of allocations:

• Revisions to 2015-16 General Fund allocations
• New 2016-17 General Fund allocations
• Projections of 2016-17 tuition and fee revenues (for reference only).

Due to the volume of one-time funding adjustments included in the 2015-16 General Fund and related legislation, a separate coded memo (B 2016-03) will provide information on one-time allocations. It is our hope that two memorandums will provide clarity between base (or ongoing) funding and those that are one-time in nature. General Fund Allocation to CSU, Chico $ 108,499,232 Tuition Fee Revenues 89,664,000 Other Fee Revenue and Reimbursements 13,171,235

2015/16 Gross Budget Allocation

$ 211,334,467

University Budget Committee: 9-16-2016 Meeting – Agenda Item 6 13

THE RESOURCE ALLOCATION PROCESS: DETAIL IV

CSU CHICO TO DIVISION OF ACADEMIC AFFAIRS: 2015 - 2016

http://www.csuchico.edu/bud/budgetplans/index.shtml

University Budget Committee: 9-16-2016 Meeting – Agenda Item 6 14

THE RESOURCE ALLOCATION PROCESS: DETAIL IV

CSU CHICO TO DIVISION OF ACADEMIC AFFAIRS: 2015-2016

http://www.csuchico.edu/bud/budgetplans/2015-16%20Campus%20Budget%20Plan%20Final%2010.26.15.pdf

University Budget Committee: 9-16-2016 Meeting – Agenda Item 6 15

THE RESOURCE ALLOCATION PROCESS: DETAIL IV

CSU CHICO TO DIVISION OF ACADEMIC AFFAIRS

University Budget Committee: 9-16-2016 Meeting – Agenda Item 6 16

THE RESOURCE ALLOCATION PROCESS: IN SUMMARY

From To Allocation

Legislators CSU CSU Support Budget / Governor’s Budget – HE Section CSU CSU, Chico Budget Allocations: Mandated Cost; Compensation; Others; FTES Growth @ Marginal Cost of Instruction CSU, Chico Academic Affairs Strategic ‘Off-the-Top’ : Divisional Percentage, AA around 72% Academic Affairs Colleges / Units Budget allocations informed by Unit Plans and ABC-DE Annualized FTES Funding Model

Colleges / Units Departments / Units Office of the Dean / Unit Manager

http://www.csuchico.edu/vpaa/planning/resourceallocation/index.shtml

University Budget Committee: 9-16-2016 Meeting – Agenda Item 6 17

DISCUSSION SEGMENT