Fiscal State of the University Spring Semester 2007

Transcription

1 Fiscal State of the University Spring Semester 2007 California State University Fullerton Office of the Vice President for Administration and Finance May 17,

2 Goals Overview CSUF Budget Overview Historical Budget Issues Where We Are Now Third Quarter Revenue & Expenditure Update Ongoing Budget Issues The Future 2007/08 Budget Completing the Agenda 2

3 Components of Our Fiscal State Financial Resources Financial i Management Processes Individual and Group Roles & Responsibilities President, Deans, Department Chairs, Department Heads, Division Heads, PAB, and PRBC Finance Staff Campus Staff CSUF University Business Institute (UBI) Context State Budget CSU System Budget Campus Budget 3

4 2006/07 University Revenue Budget Excludes prior year carryforward and fund balances 4

5 2006/07 University Revenue Budget 5

6 2006/07 General Fund Budget Summary 6

7 2006/07 General Fund Budget Summary 7 7

8 2006/07 General Fund Expenditures By Division 8 8

9 Historical Budget Issues General Fund Baseline Structural Deficit Over Budgeting of the General Fund, the Role of the Lottery Fund & Implications for Carryforward 9

10 Baseline Structural Deficit In conjunction with the State of California budget deficit, the University received General Fund baseline budget reductions from 2001/02 through 2004/05 In addition, the University has been required to fund a variety of non-negotiable mandatory costs without t receiving i additional revenue from the CSU and/or the State. For example, negotiated salary increases and staff benefit increases In response to the General Fund baseline budget reductions, the University used a combination of baseline budget reductions along with one-time budget reductions 10

11 Baseline Structural Deficit continued As a result of making one-time budget reductions rather than baseline reductions, the University General Fund maintained a baseline structural deficit of approximately $5.4 million at the beginning of The General Fund baseline structural deficit increased from $5.4 million at the beginning g of to $10.6 million at the beginning g of This was largely due to the assumptions used to develop, recommend, and allocate new General Fund revenue The 2006/07 General Fund baseline structural deficit of $10.6 million was addressed for one year through the use of one-time funds and budget reductions Refer to the February 16, 2007 PowerPoint presentation to the PRBC for additional details and charts related to this topic edu/reportsandpresentations/index htm 11

12 Over Budgeting, the Role of the Lottery Fund & Implications for Carryforward As previously indicated, the University has had a General Fund baseline structural deficit for a number of years Over that same time period, the Lottery Fund was held in reserve as back-up to the General Fund If the entire University General Fund allocation had been expended, the Lottery Fund would have been used to cover most of the General Fund deficit it (this also was a finding in the audit investigation report) Because the Lottery Fund was held in reserve as back up to the General Fund, only nominal amounts of the Lottery Fund were allocated each fiscal year PRBC now makes recommendations to the President on the allocation of Lottery revenue 12

13 Over Budgeting, the Role of the Lottery Fund & Implications for Carryforward continued Carryforward dis defined das unexpended dfunds at fiscal year end which h are available (i.e., unencumbered) and may be moved to the next fiscal year Historically, since the Lottery Fund was held in reserve as back up to the over-budgeted General Fund, Carryforward balances included BOTH General Fund and Lottery Fund resources Because the General Fund has been over-budgeted, the Budget Balance Available used to calculate the Carryforward has also been overstated Had the divisions spent the budgeted General Fund Carryforward in its entirety, use of the Lottery Fund would have been necessary 13

14 Over Budgeting, the Role of the Lottery Fund & Implications for Carryforward continued Current plans call for Lottery Funds to be allocated to support instructional purposes via a PRBC-recommended and Presidentapproved allocation process As such, Lottery Funds are no longer held in reserve to back up to the General Fund This required reducing the General Fund re-appropriation p to an amount that could support a balanced General Fund, along with correcting the previous practice of including Lottery Funds in Carryforward reporting 14

15 2006/07 Third Quarter Revenues Additional State Allocations Pending Budget Percent of Revised Balance Budget Budget Actual Available Received GENERAL FUND STATE ALLOCATION: Initial Campus Allocation 156,448, ,448, Final Adj to Campus Budget 3,652,400 3,652,400 0 Total Revised General Fund State Allocation $ 160,100,530 $ 160,100,530 $ - 100% Budget Percent of Revised Balance Budget Budget Actual Available Received GENERAL FUND REVENUES: Academic Affairs Revenue 3,369, ,113, ,929 92% Administration & Finance Revenue 1,089,402 1,089, % Executive Vice President Revenue % Information Technology Revenue 932, ,946 15,259 98% Student Affairs Revenue 3,728,612 3,471, ,741 93% University Advancement Revenue 81,000 81, % All University Revenue 99,168,591 98,793, , % Total Revenue 108,369, ,466, ,391 99% Total State Allocation and Revenue $ 268,470,233 $ 267,566,842 $ 903, % 15

16 2006/07 Third Quarter Expenditures Additional Budget Reports Available at

17 Ongoing Items Prior Commitments, expectations, unfunded mandates and opportunities, such as SFR, 100 New Faculty CBE Building, Irvine Campus Carry Forward Recovery Plan CMS PRBC working to make budget recommendations to the President on commitments and prioritized needs within projected 2007/08 resources PRBC Chair, Senate Chair, & Budget Office working on PRBC budget process, roles, responsibilities, documentation and timetables. Modifications of UPS will be presented to the Academic Senate for consideration Reconciling CSUF enrollment projections and revenue with CSU Budget Office projections 17

18 2007/08 Budget 4% CSU System Budget Increase Compact is funded CSUF enrollment growth in 2006/07 previously funded as one time has now been added to campus baseline budget/ Additional CSUF enrollment growth in 2007/08 is projected. Governor s budget proposal includes a 10% student t fee increase Mandatory State University Grant set aside for financial aid Allocations to fund mandatory costs i.e., employee compensation, health benefits increases, salary lags Funding for some compensation costs does not cover the projected expenses, generating a deficit that needs to be covered by campus resources 18

19 2007/08 Budget CSUF 2007/08 Support Budget Projections: An increase of $ million (including enrollment growth of $4.9M which was one time in 2006/07 and is now baseline) Approximately $16.6 million is earmarked for mandatory cost increases such as, financial aid, health benefits and salary increases, etc. This leaves approximately $15.6 million to address the campus structural deficit and other needs such as maintaining the SFR, fulfilling the commitment to hire 100 new fulltime faculty, down payment py for the Irvine campus purchase, CMS, Mihaylo Hall PRBC and PAB are reviewing the resources and priorities now and will recommend a plan for a balanced budget to the President 19

20 State and CSU Budget Context See Attached 2007/08 Budget Report to CSU Board of Trustees 20

21 2007/08 CSU Budget CSU Budget Total Funds $4.4 Billion Base Budget Support (4%) $109.0 Million Enrollment Growth (2.5%) $65.5 Million Fee Revenue $123.0 Million Undergraduate Fee Increase ($252-10%) Mathematics and Science Teachers $2.0 Million Expand BSN Nursing Programs $3.6 Million May Revise Outreach Programs ($7.0 Million) Total Proposed Increase $296.1 Million 21

22 2007/08 CSU Unfunded Costs Unfunded Costs to the CSU Enrollment Growth (6,356) $ 46 Million Potential Over Enrollment $??? Million Collective Bargaining $10.6 Million Collective Bargaining $30.3 Million City of Marina Issues $??? Million Assembly Bill 2951 Municipal Facilities Capital Costs $??? Million 22

23 Completing The Agenda Transparency, Accuracy and Timeliness A Balanced Budget A Prudent Reserve e All Funds Accounted For and Reported Filling Finance Staff Vacancies Audited Financial Statements and Budget Reports Thank You 23