DRAFT Fiscal State of the University Spring 2010

Transcription

1 DRAFT Fiscal State of the University Spring 2010 May 20, Electrical Consumption 04/05 05/06 06/07 07/08 08/09 09/10 KWH (Million) Campus SF (Million) PA PS2 SRC SGMH PD FTES (Thousand) Annual $$ (Million) $5.4 $6.6 $6.0 $5.8 $5.6 $4.6 If we applied the 04/05 parameters to 09/10 the SCE bill for the 09/10 year would have been $6,800,000 Lower costs due to higher efficiency buildings as well as energy conservation initiatives: 68/78 Degrees; Demand Response Program; Big Fix; Network Thermostats; Upgraded HVAC Systems

2 Charge from Academic Senate BL In the fall and spring semesters, the Chief Financial Officer shall be invited to present to the Senate a report on the fiscal state of the University. The report in the fall will be given as close as possible to the beginning of the semester. The report in the spring will be given prior to the spring marathon meeting. The report shall include but not be limited to: (a) the sources and uses of all revenues designated to the university (including auxiliary units and extended education); and (b) budget priorities, issues, and challenges. Following each address, the Chief Financial Officer shall answer questions from those in attendance. 2

3 Report Preparation Paulette Blumberg, Executive Assistant to the VP Admin. & Finance Naomi Goodwin, Assistant Vice President, Administration and Finance Brian Jenkins, Associate Vice President, Finance Sarah Song, Budget Director Henry Soto, Assistant VP, Budget Management, Planning & Strategy 3

4 Presentation Goals Overview of University Finances Budget Reports Available Online University Revenue Sources Operating Fund Budget and Expenditures CSUF Reductions & Allocations Budget Planning Assumptions State Budget Issues CSU Systemwide Assumptions CSUF Assumptions Budget Priorities, Issues & Challenges Questions & Answers 4

5 Budget Reports Budget Reports Available Online - Sources and Uses of Revenues Contents Include the Following: University Revenue Budget Operating Fund Budget Summary Operating Fund State Allocation Summary Operating Fund Budget, Allocation and Revenues Operating Fund Budget, Expenditures by Division Operating Fund Budget, Expenditures by Program Operating Fund Budget, Expenditures by Division by Program Operating Fund Allocation by Division Operating Fund FTE Summary by Division Operating Fund Budget Detail Operating Fund by Cost Center Lottery Budget 5

6 Budget Report Example OPERATING FUND THIRD QUARTER - MARCH 2010 FINANCIAL STATEMENT BY COST CENTER FISCAL YEAR Percent of Budget Revised Budget Actual Expenses Encumbrances Budget Balance Expe nde d + FTE SW OE PY ( ) TOTAL ( ) ( ) SW OE TOTAL OE Available Encum be r e d DIVISION/COST CENTER (a) (b) (c) (d) (e) (f) (g) (f) + (g) = (h) (i) (e) - (h) - (i) = (j) (h) + (i) / (e) COLLEGE OF THE ARTS Art ,473, ,853 6,825 3,688,872 2,709, ,847 2,825,718 24, ,397 77% Artists Village - 49,190 22, ,124 37,006 11,920 48,926 11,194 12,005 83% Cultural Events ,500-19,500-8,004 8,004-11,496 41% Dean ARTS ,771 87, , ,802 38, , ,580 69% Instruction ARTS ,362 63, , , ,973 0% Music ,514,192 84,466-2,598,659 2,014,130 61,478 2,075,608 12, ,813 80% Theatre/Dance ,037, ,620 4,360 3,147,450 2,340,950 44,004 2,384, ,996 76% ARTS TOTAL ,802, , ,127 10,668,202 7,503, ,495 7,783,254 48,687 2,836,260 73% COLLEGE OF BUSINESS AND ECONOMICS Accounting ,797, ,605 17,342 2,916,874 2,129,832 67,959 2,197,790 14, ,792 76% Dean BAE ,557, , ,624 2,388,509 1,310, ,713 1,821, , ,326 81% Economics ,521, ,548 6,600 2,632,906 1,887,994 30,192 1,918, ,720 73% Finance ,402, ,514 13,102 2,523,267 1,738,267 43,666 1,781, ,334 71% Instruction BAE , ,777 26,989 1,355, ,000 27, , ,266 32% ISDS ,650, ,219 3,496 2,782,217 1,906,587 20,612 1,927, ,018 69% Management ,687,538 94,306 3,500 2,785,344 2,198,375 36,851 2,235, ,119 80% Marketing ,103,848 74,517 29,509 2,207,874 1,705,180 11,858 1,717, ,836 78% MCBE Computer Lab - (22) 151,050 1, ,140 77,555 33, ,387 33,738 7,015 95% BAE TOTAL ,347,349 2,137, ,275 19,744,320 13,361, ,605 14,144, ,061 5,442,424 72% COLLEGE OF COMMUNICATIONS Communications ,807,385 46,598 29,351 2,883,334 2,202,245 22,805 2,225, ,284 77% CTR Children Who Stutter - (9,259) (95) 70,176 60,821 23,703 (32,371) (8,668) - 69,489-14% Dean COMM , ,713 41, , ,202 57, ,993 10, ,232 63% Human Communication Studies ,424,383 34,345 7,485 2,466,213 1,872,454 30,278 1,902, ,481 77% Human-Comm-Debate - (462) 23,278 (24,093) (1,277) - 5,293 5,293 - (6,570) -415% Instruction COMM , , , ,671 (9,447) 71,381 61,934 23, ,263 12% Radio/TV/Film ,044,020 40,969 6,747 1,091, ,904 1, , ,738 73% ACADEMIC AFFAIRS -COLLEGE OF COMMUNICATIONS (CON'T) Titan Communications , , ,323 95,647 2,497 98,144-43,179 69% COMMUNICATIONS TOTAL ,053, , ,301 7,988,783 5,324, ,769 5,483,478 34,209 2,471,096 69% 6

7 University Revenue Sources CSU OPERATING FUND 306,907, ,381,592 LOTTERY EDUCATION FUND 2,465,000 2,245,000 CONTINUING EDUCATION REVENUE FUND (CERF) 9,400,000 9,500,000 HEALTH FACILITIES FEE 220, ,000 HOUSING FUND 4,762,500 4,967,000 PARKING FUND 9,067,000 8,319,000 PARKING FINES & FORFEITURES 1,500,000 1,383,000 STUDENT UNION 7,995,104 7,751,732 AUXILIARY FUNDS: CSUF AUXILIARY SERVICES CORPORATION 32,449,828 31,778,515 CSUF PHILANTHROPIC FOUNDATION 480, ,000 1 ASSOCIATED STUDENTS INC. 7,013,676 6,998,313 HOUSING AUTHORITY 8,828,525 1,053,589 TOTAL UNIVERSITY BUDGET $ 391,089,524 $ 363,110, Budget figure for operations only, does not include fundraising 2. Excludes financial Aid and Capital Funds 7

8 University Revenue Sources Total $363,110,741 (Excludes Prior Year Carryforwards and Fund Balances) CSU OPERATING FUND, $288,381,592, 79.4% LOTTERY EDUCATION FUND, $2,245,000, 0.6% HOUSING AUTHORITY, $1,053,589, 0.3% ASSOCIATED STUDENTS INC., $6,998,313, 1.9% CSUF PHILANTHROPIC FOUNDATION, $513,000, 0.1% CSUF AUXILIARY SERVICES CORPORATION $31,778,515, 8.8% STUDENT UNION $7,751,732, 2.1% PARKING FUND $8,319,000, 2.3% PARKING FINES & FORFEITURES, $1,383,000, 0.4% CONTINUING EDUCATION REVENUE FUND (CERF), $9,500,000, 2.6% HEALTH FACILITIES FEE, $220, % 8 HOUSING FUND $4,967,000, 1.4%

9 University State Allocation & Revenue OPERATING FUND BUDGET SUMMARY TOTAL STATE ALLOCATION AND REVENUE $288,381,592 State Allocation, $131,357,037, 45.5% State University Fee, $135,897,450, 47.1% Non Resident Fee, $9,424,620, 3.3% Trust Fund Interest Earnings, $1,700,000, 0.6% Other Receipts, $5,529,420, 1.9% Transcripts & Late Reg, $330,000, 0.1% Health Fee, $2,200,000, 0.8% Application Fee, $1,943,065, 0.7% 9

10 Operating Fund Budget and Expenditures Summary By Division ($288,381,592) All University $81,317,815 28% President, $3,250,272 1% Academic Affairs $141,755,075 49% University Advancement $6,193,861 2% Student Affairs $18,516,782 7% Information Technology $11,539,051 4% Administration and Finance $25,808,736 9% Benefit funds that are held in all university are included in the division totals. All University Budget includes; Financial aid, utility commodity/management, divisional funds pending allocation, loan payments, space rental, YRO, Insurance, etc. 10

11 Budget Reductions & Allocations 11

12 FY Budget Reductions & Allocations Division FY Baseline Budget % Baseline Reduction Baseline One-Time Total Utility Savings Offset Total Baseline Reduction One-Time Allocation Lottery Fund Allocation Total One- Time Allocation Baseline Reduction One-Time Allocation President 3,105, % (380,333) 17,000 (363,333) 28,598-28,598 (363,333) 28,598 (334,735) Academic Affairs Division 125,827, % (15,409,846) 688,797 (14,721,049) 2,808,668 2,695,000 5,503,668 (14,721,049) 5,503,668 (9,217,381) Administration and Finance 21,767, % (2,665,755) 119,155 (2,546,600) 200, ,438 (2,546,600) 200,438 (2,346,162) Information Technology 10,856, % (1,329,617) 59,432 (1,270,185) 99, , ,224 (1,270,185) 301,224 (968,961) Student Affairs 16,140, % (1,976,748) 88,358 (1,888,390) 148, , ,382 (1,888,390) 752,382 (1,136,008) University Advancement 4,979, % (609,829) 27,258 (582,571) 45,853-45,853 (582,571) 45,853 (536,718) 2 Total Division 182,677, % (22,372,128) 1,000,000 (21,372,128) 3,332,163 3,500,000 6,832,163 (21,372,128) 6,832,163 (14,539,965) 1 TOTAL 1. One-Time Budget Reduction includes $1.6m spring course allocation received from the CO. 2. $182,677,997 represents funds allocated to Divisions and does not include funds allocated to all University (benefits, financial aid, utility costs, etc.). 12

13 Budget Planning Assumptions 13

14 Chancellor s Office Summary of Governor s May Revise The Governor s projected budget gap through June 30, 2011 is $19.1B. This doesn t include: $3.5B of Federal funds expected by the State, but not received Estimated $2.8B loss of savings due to legislature delays in adopting various Governor proposals during the January/February special session Estimated $500M due to the Governor s decision to drop certain January proposals such as off-shore drilling The Governor has maintained his January proposal to restore $305M of funding to the CSU The Governor proposes an additional $60.6M to the CSU to preserve access for over 8,000 additional students. This January proposal was originally contingent upon the State receiving Federal funds, but the contingency has been removed in the May Revise Recognizing that sharper budget reductions are proposed for other State agencies, there is extreme uncertainty surrounding the level of state support for the CSU that will ultimately emerge from the Legislature 14

15 Systemwide Budget Planning Guidelines Assume that the State general fund allocation will not be more than the allocation level. Additional proposed allocations in the Governor s January proposed budget should not be included in campus budget planning until approved in the final state budget Employee furloughs will be discontinued at the end of the current fiscal year CSUF will achieve and not exceed the Resident FTES enrollment target. The campus will not be allowed to retain any excess revenue related to over enrollment Assume increased revenue from a 10% fee increase Avoid the use of one-time resources for baseline budget cuts Assume that no dramatic turnaround of California s fiscal situation is expected in the near future 15

16 CSUF Budget Planning Assumptions Maintain a balanced baseline budget Take full baseline budget cuts No baseline structural deficits PRBC Identified Priorities funded via budget reductions Plan for unfunded mandates 16

17 Budget Reduction Budget Outlook ESTIMATES (Million $) C S U F CSU TOTAL BASELINE ONE TIME COMMENTS "July 2009 Revise" $571.1 Million CSU Budget Cut 0.0 (5.5) (5.5) 0.0 Recalculation of FY Budget Cut per 11/06/09 CO Schedule Unfunded Mandatory Systemwide Costs (30.4) (2.1) (2.1) 0.0 Based on FY Costs BUDGET REDUCTION TOTAL ($30.4) ($7.6) ($7.6) $0.0 Enrollment Related Adjustments SUF (Resident Enrollment Decrease) (129.4) (15.4) (15.4) % Resident Enrollment Decrease of 2,945 FTES to 24,245 FTES Target 1 Financial Aid (From Resident Enrollment Decrease) /3 of SUF from Resident Enrollment Decrease SUF (Fee Increase) % Fee Increase per CO Memo Financial Aid (From Fee Increase) (37.0) (4.0) (4.0) 0.0 1/3 of SUF from Fee Increase NRT (Non Resident Enrollment Decrease) (12.5) (1.0) (1.0) % Non Resident Decrease of 99 FTES to 821 FTES NRT (Fee Increase) % Fee Increase per CO Memo SUBTOTAL (12.8) (2.4) (2.4) 0.0 SFR (Differential Funding Using Current Calculation Formula) (1,784 FTES Decrease / SFR Rate)*$64,612 Faculty SWB Rate 2 YRO % of Summer 2010 moved from State Support to UEE ENROLLMENT RELATED ADJUSTMENTS TOTAL $9.7 $9.7 $0.0 CSUF Budget Items UNRESOLVED BUDGET SHORTFALL $2.1 $2.1 $0.0 New Faculty Searches (3.0) (0.7) (2.3) Year 5 of 5 Year Plan of 100 Annual Faculty Searches Research Grants & Sabbaticals (0.9) (0.4) (0.5) Year 2 of 2 Year Sabbatical Funding Plan and Year 2 of 3 Year Research Funding Plan Academic Affairs Pass Through Expenditure Items (2.4) 0.0 (2.4) Kaiser/FNP, Cal State Teach, Ed. D. CMS Loan (3.3) 0.0 (3.3) Year 5 of 9 CSUF BUDGET ITEMS TOTAL ($9.6) ($1.1) ($8.5) ADJUSTED CSUF ALLOCATED BUDGET SHORTFALL ($7.5) $1.0 ($8.5) Before Any Possible Future State/CSU Budget Cuts or Allocations Footnote: 1 2,945 FTES Decrease is the difference between FY Calendar Year Resident enrollment goals (24,245 FTES) and FY Calendar Year Resident enrollment target (27,190 FTES) based on which FY resident revenue was projected. 2 1,784 FTES Decrease is the difference between FY Academic Year enrollment goals (for both Resident and Non Resident; 25,065 FTES) and FY Academic Year baseline enrollment target (26,849 FTES) based on which baseline SFR funding was allocated. Baseline Resident FTES for FY , FY , and FY are the same and any campus driven changes to the enrollment targets were handled via one time SFR funding allocation. 17

18 Budget Outlook ESTIMATES (Million $) C S U F CSU TOTAL BASELINE ONE TIME COMMENTS ADJUSTED CSUF ALLOCATED BUDGET SHORTFALL ($7.5) $1.0 ($8.5) Before Any Possible Future State/CSU Budget Cuts or Allocations Possible Additional State Budget Allocations Included in the Governor's January Budget Proposal the CO has instructed all of the campuses to ignore these possible additional Budget Allocations in their campus budget planning until the allocations are confirmed in an approved State Budget Restoration of the Stimulus Shortfall "Trigger" Budget Cut From FY Budget Cut Schedule Restoration of the Governor's Line Item Veto From FY Budget Cut Schedule SUBTOTAL $12.5 $21.0 ($8.5) 2.5% Enrollment Growth (Contingent on other Federal Funds) CSUF = 7% of CSU Amount TOTAL $16.7 $25.2 ($8.5) Footnote: 3 Although the governors proposed budget restores $305M in one time cuts made in FY , because of concern these cuts would become permanent, the campuses were instructed to treat them as baseline cuts. As such, if these funds are restored, the impact is shown as a restoration to our baseline budget. 18

19 Budget Priorities, Issues & Challenges 19

20 Budget Issues, Priorities & Challenges The visiting team concluded that the long-term forecast, especially for CSU, is not yet clear enough to confirm whether the budget-related challenges that CSUF currently faces will, over time, constitute a new normal for the university. WASC The New Normal Is Not So New Impact of Opportunistic vacancies Academic Advisement Deferred Maintenance (facilities, furniture, labs) Faculty/Staff resignations Remain competitive in the job market More work, fewer people, less time 20

21 Budget Issues, Priorities & Challenges continued Reduced course offering Increased class size Reduction of baseline funding for Faculty positions Reduced access Qualified students Community Colleges Increased time to degree Reduced services (financial aid processing) Reduced student employment Integrating planning & budgeting PRBC Priorities still need to invest 21

22 Budget Questions & Answers 22

23 Budget Questions & Answers 1. Will furloughs be in place for next fiscal year? The Chancellor has indicated that campuses should conduct 2010/11 budget planning based on the assumption furloughs will be discontinued effective June 30, If the 10% furlough salary reductions are restored, where does that money come from? The 10% furlough salary reductions are a temporary, one-time savings developed by the Chancellor s Office for fiscal year In fiscal year , furlough salary reduction savings are to be replaced by budget from assigned decreases in campus enrollment targets designated by the Chancellor s Office (in order to align student enrollment with the level of state funding) and associated decreases in expenses. 23

24 Budget Questions & Answers continued 3. Many CSU s are announcing layoffs to meet the budget challenges they face. Is Fullerton planning any layoffs and if so when will they be announced? Also how will the decisions be made to layoff anyone? If not, how are we avoiding those? Because Fullerton has taken most of its budget reductions as baseline reductions over the past two years, we believe we can avoid layoffs. Should layoffs become necessary, any layoffs would be subject to collective bargaining agreement language and would be administered accordingly and within all required timelines. 24

25 Budget Questions & Answers continued 4. I heard we have had some layoffs already. Who was laid off? How were those decisions made? Members of the State Employee Trade Council (SETC) voted to not participate in furloughs. Therefore, because of the budget crisis some members of SETC were laid off. There have been no other layoffs at Fullerton. Having said that, some part-time faculty were not rehired because of enrollment reductions mandated by the system. Technically, however, these are not considered layoffs. 25

26 Budget Questions & Answers continued 5. I heard some workers are working on furlough days and being paid overtime, how can that be, I thought everyone had to take furloughs? Everyone is subject to furlough, except for public safety, some health care workers, auxiliary employees and individuals funded via grants. Accordingly, all other employees have had their salary reduced by the furlough amounts. There are allowances for employees to take alternate furlough days or to work on furlough days to meet campus and operational needs if authorized by the Vice President or the President. For those few employees authorized to work on their scheduled furlough days and because of operational need are not required to take an alternative furlough day, they are compensated according to their collective bargaining agreements. 6. If furloughs are eliminated, will corresponding salaries also be restored or will we be asked to work full-time with a 10% pay cut? The planning guidelines from the Chancellor s Office simply state that furlough programs will end effective June 30, There is no discussion of employees receiving a 10% salary reduction. 26

27 Budget Questions & Answers continued 7. How can we be considering things like purchasing Hope University and keeping our Irvine Campus when we are and cutting classes? The opportunity to acquire significant acreage adjacent to campus is rare and most likely won t occur again. We ve had a south county branch campus for over 20 years. The current building is deteriorating and out current lease expires in As such, we need to acquire new facilities for the Irvine branch campus. 27

28 Budget Questions & Answers continued 8. Why don t we raise student fees to increase access? System-wide student fee rates are established by and approved by the CSU Board of Trustees (not the individual campuses). Since , the Board of Trustees have increased student fees significantly to help off-set unprecedented state budget cuts and maintain access. In his May Revise, the Governor s proposed budget for the CSU continues to assume a 10% student fee increase. 9. If past experience is a predictor of what will happen this year, it s unlikely that the State will adopt a budget before July. What does that mean for planning purposes in the CSU and for Fullerton? Until the state budget is approved, for budget planning purposes the CSU and CSUF continue to assume current levels of state funding while continuing to advocate for the restoration of state funding, which is currently included as part of the Governor s proposed budget. 28

29 Questions 29