Trustees request $546.6 million increase for 2004-05

The California State University Board of Trustees on Nov. 19 approved a 2004-05 budget request that proposes an increase of $546.6 million over the current year’s $2.5 billion General Fund state appropriation.

Trustees unanimously approved a budget proposal that includes mandatory costs for the CSU of $57.4 million, which comprise the cost of a 2.65 percent service-based salary increase for faculty, 15 percent increase in health benefits, new space on campuses, insurance cost increases and energy cost increases. The budget requests partnership funding of $206.5 million, which includes a 3 percent enrollment growth equivalent to 10,047 full-time-equivalent students and a 4 percent compensation increase for faculty and staff. The budget also identifies a request for $234.6 million to backfill current-year budget cuts. The budget proposal does not include student fee increases.

Chancellor Charles B. Reed said that following a legislative mandate of the 2003-04 state budget, all 23 campuses are assuming a zero student-growth target and that will be the guideline for admission decisions. This mandate could result in denied admissions to approximately 15,000 new students or the equivalent of a 3 percent enrollment growth.

The Chancellor said that enrollment is the strongest driver of the CSU budget. In the past six years the CSU had a student growth of 4 percent to 7 percent. “Recognizing this growth, the budget proposes $69.5 million to fund a 3 percent student increase, which would finance the education of additional 10,047 full-time-equivalent students. Each 1 percent increase in the number of students requires additional $23 million in funding,” he said.

Faculty Trustee Kathleen Kaiser said that this budget document educates decision makers about CSU needs. “If we are forced to cut, we need to show everyone the relationship between dollars and student growth,” she said.

“In fall 2003 we had the highest number of students we ever had,” said Trustee Ralph R. Pesqueira. “Everyone should understand that we are not reducing admissions, it is student growth that is being limited.”

The approved budget will be presented to the state Department of Finance, where it will be discussed during November and December, in preparation for the Governor’s state budget proposal presented to the Legislature in January.

The budget was supported by the CSU Academic Senate, the California Faculty Association and the California State Employees Association.

“We appreciate that the budget supports maintaining instructional quality and recognizes that an appropriate salary structure is essential to attract qualified faculty,” said Robert W. Cherny, chair of the Academic Senate.

California Faculty Association president John Travis said that the CFA is in agreement with the budget. “We are pleased to see that the budget requested enrollment growth money. Count on the CFA to help work this budget through the legislative process,” he said.

In fiscal year 2003-04 the CSU budget reduction resulted in a net fiscal impact of $304 million resulting in a total General Fund allocation of $2.49 billion. The current budget proposal will provide a General Fund budget of $3 billion.

The state’s budget development process includes the following schedule:

• November/December — Meet with Governor’s office and Department of Finance staff
• January — Governor required to submit balanced budget to legislature
• February — Budget review by Legislative Analyst Office
• March/April — Budget subcommittee meetings
• May — May revise to January budget projections
• June — Two-House Conference Committee. Official deadline for budget adoption.