Campus Budget News

Campus Budget FAQ Archive 11/2009

Frequently Asked Questions (Part 2)

Posted November 3, 2009 / Archived March 25, 2010

Please visit the main Campus Budget News home page for the link to the most current version of the FAQ. 
Part 1 of this FAQ may be accessed on that page as well.

ENROLLMENT MANAGEMENT AND ADMISSIONS:

Q. Will enrollment targets at campuses be modified?

The CSU is funded by FTES enrollment. With funding reduced, enrollment targets are being reduced. At a special meeting of the Board of Trustees on July 7, 2009, it was announced that the CSU will look to reduce its student enrollment by 32,000 full-time equivalent students systemwide for 2010-11.

Cal State Northridge was subsequently informed that our enrollment target for 2010-11 will be 22,946 FTES, which represents a 10.8 percent decrease from our 2009-10 enrollment target of 25,733 FTES.

Q: Have there been any further decisions about limiting enrollment and admissions?

Yes. On July 7, 2009, the CSU Chancellor’s Office announced new enrollment controls in an effort to bring enrollment in line with available resources while assuring quality for admitted students. Specifically, the Chancellor’s Office instructed all CSU campuses to accept no admission applications for the 2010 Spring semester. Additionally, campuses on the quarter system were told to cease accepting applications for the 2010 Winter quarter and offer admission only to fully eligible applicants who had applied prior to July 6, 2009. The CSU is providing notice to prospective applicants on the CSU website and CSU Mentor.

Q: What is our enrollment plan for the coming academic years?

An enrollment management plan has been developed for 2010–11 and 2011–12.

THE STATE AND CSU BUDGETS, 2009–10:

Q: I have heard that the CSU has received Federal Stimulus Funds and has allocated new funds to the campus for 2009–10? How much money did we get and what will it be used for?

The CSU received an additional $77.5 million in one-time federal stimulus dollars, making available trust dollars previously set aside to cover employee payroll. These funds are one-time only, and must be used in ways that do not create ongoing spending. Of the total, $52.5 million will be reserved by the CSU for use in the event of further budget cuts. The CSU has allocated the remaining $25 million to the campuses for additional course sections and student support services to help students make progress toward their degrees.

The Cal State Northridge allocation is $1.8 million. We are using these funds to add additional sections of courses students need to graduate, to address needs with S-Factor courses, for supplemental instruction, for the Center on Disabilities and National Center on Deafness for support of students with disabilities and students who are deaf or hard-of-hearing, and for academic advisement and support to students.

Q. How will Cal State Northridge deal with budget cutbacks?

We have already implemented changes such as the 2009-10 State Budget Furlough Program, reduced 2009-10 student enrollment, reduced summer session offerings, and reduced purchasing, hiring, and travel. We are also transitioning into budget and enrollment planning for 2010-11 and 2011-12 using alternative scenarios based on varying assumptions about future state and CSU budgets.

For 2009-10, the $41 million reduction is being met by the following:

  • $19 million from one-time savings from the furlough program
  • $13 million in new revenue from increases in student fees (state university fees) enacted by the CSU Board of Trustees
  • $2 million from campus reserves
  • $7 million from budget reductions to the divisions in the University

The $7 million in reductions to the divisions (referenced above) are proportional to the overall budgets of each division. Each divisional vice president determines how to absorb his/her division’s share. The vice presidents anticipated budget reductions for 2009-10 and included potential cuts of at least this magnitude in their 2009-10 budget planning. Specifically, the $7 million total is apportioned as follows (all numbers approximate):

  • Academic Affairs - $4,900,000
  • Administration and Finance - $900,000
  • Student Affairs - $500,000
  • Information Technology - $400,000
  • University Advancement - $200,000
  • Office of the President - $35,000

THE STATE AND CSU BUDGETS, 2010–11 and 2011–12:

Q: I have heard that the CSU released additional previously received Federal Stimulus Funds to the campuses. How much money did we get and what will it be used for?

In October, 2009, the CSU received a one-time Federal stimulus allocation, which allowed the CSU to make available trust dollars (monies from state support and student fee revenue) previously set aside to cover employee payroll.

At that time, the CSU released approximately one-third of the amount received to the campuses for additional course sections and student support services to help students make progress toward graduation. The funds were stipulated as one-time only, to be used only in ways that do not create ongoing spending. The balance was reserved by the CSU for use in the event of further budget cuts.

The allocation to Cal State Northridge in October 2009 was $1.8 million. These funds were used on our campus to offer additional sections of courses students need to graduate, to address needs with S-Factor courses, for supplemental instruction, for the Center on Disabilities and National Center on Deafness for support of students with disabilities and students who are deaf or hard-of-hearing, and for academic advisement and support to students.

In February, 2010, the Chancellor announced that that the CSU will allocate the remaining $50.9 million to the campuses for use in 2010-11. These are again one-time funds to be used in ways that do not create ongoing spending. The CSU’s intent is that the funds will be used to offer additional course sections during 2010-11 to help move students toward graduation and to support other efforts to improve graduation rates. Cal State Northridge’s allocation is 7.2 percent of this total, or $3,664,800.

While Cal State Northridge will add course sections, we must do so in a way that is consistent with our enrollment target for 2010-11 defined by the Chancellor’s Office, which is reduced by 10.8 percent in comparison with our 2009-10 enrollment target. We will also consider using some of the funds to support our graduation improvement initiatives.

Q: The Governor’s January budget proposal was released on January 8, 2010. What does it propose for the CSU?

The Governor’s initial budget proposal for 2010-11 proposes to restore $305 million to the CSU base budget, and provide an additional $60.6 million for enrollment growth.

The budget reductions in 2009-10 included $305 million in one-time cuts that the State had committed to restore in 2010-11. The Governor’s proposed budget would restore that base budget funding. The $60.6 million for enrollment growth is contingent upon the State receiving a threshold amount in federal aid for other state programs.

Overall, the Governor’s budget proposal seeks to close a $19.9 billion deficit over the next 18 months through a variety of budget cuts, shifts in spending, and assumed new federal funds. However, the Governor‘s budget proposal puts a priority on protecting education.

More information on the Governor’s January budget proposal is available at: http://gov.ca.gov/press-release/14154/.

Q: When will we know more about the 2010-11 budget?

The campus is planning now for the 2010-11 and 2011-12 budget years, but with incomplete information. We received the first substantive information about the likely 2010-11 state budget in January 2010 with the Governor’s January budget projection. (See question and answer above.)

The January projection provides the starting point for the CSU’s budget planning process. It is typically a good indicator of where the CSU will end up at the conclusion of the budget deliberation process, but in actuality it is just the beginning. We then get more information with the Governor’s May revision based on updated and more accurate revenue projections. A finalized state budget, approved by the Legislature and signed by the Governor, is due in June. However, a budget agreement and finalized budget is often not reached until later in the summer or even in the fall.

In planning for 2010-11 and 2011-12 at Cal State Northridge, we are using a variety of budget scenarios with alternative assumptions and forecasts. We will revise these as we receive more certain information.

We already know that, at minimum, we will need to reduce our base budget for 2010-11 by the $19 million we achieved in savings from furloughs this year. We also know the Chancellor’s Office has reduced our campus enrollment target by 10.8%, and so we will have about $11 million less in revenue from student fees. We have developed an enrollment management plan to bring our enrollments down to these new targets.

It remains unknown whether the CSU, and in turn our campus, will receive additional budget cuts. We also do not know if the CSU Board of Trustees will again raise state university fees, and if they do, by what amount. (We do know that the Board of Trustees is asking the state to provide new money equivalent to a 10 percent fee increase. If that request is honored, it would almost offset the revenue reduction from our lowered enrollment.) So, both the amount of possible budget reduction from the state and the amount of possible new revenue from the state remain unknown. For this reason, the vice presidents are developing budget plans using a variety of assumptions and forecasts, and are looking at ways to reduce expenditures appropriate to their divisions under a variety of possible scenarios.

At their November 17, 2009 meeting, the CSU Board of Trustees approved a 2010-11 budget proposal entitled “recover and reinvest” to be forwarded to the Governor and the Legislature. The proposal asks the state to restore funding for one-time cuts totaling $305 million; restore revenues outlined in the Higher Education Compact to provide for mandatory cost increases, enrollment growth and compensation increases ($185 million); “buy out” the equivalent of a 10 percent student fee increase for the 2010-11 academic year ($111 million); and provide $283 million of “Core Compact Recovery” that would have funded the CSU’s collective bargaining agreements for 2008-09 and 2009-10.

MISCELLANEOUS:

Q: I have heard that the Governor is recommending a reduction in the number of paid holidays for state workers. Will this affect our paid holidays at Cal State Northridge?

Over the past few years, the Governor has publicly advanced various ideas about ways to save money for the state. However, the CSU system, unlike other parts of state government, is not under the direct control of the Governor. This recommendation, therefore, does not apply to us. Changes to employee benefits and working conditions, such as holiday schedules, furloughs, and pay, must be negotiated with the bargaining units that represent CSU employees. 

If you have a question about the applicability of any change in benefits or working conditions proposed by the Governor, please write to  .  A member of the Human Resources staff will respond to your inquiry.

Q: More money has been taken out of my paycheck for state taxes. Why is this?

Effective with checks paid after October 31, 2009, the state of California has increased the tax withholding rates by about 10 percent, in most cases reducing the take home pay of California taxpayers. This is not a tax increase, but rather, a method of collecting taxes earlier in the tax year. This change is for all California taxpayers and is not specifically related to your employment in the CSU system or at Cal State Northridge. If you pay too much tax because of the withholding changes, you will get the money back when you file your state tax return. If you owe tax, you will owe less because you paid in more during the year. If you wish to change your exemptions for federal or state taxes, you may complete an Employee Action Request form (STD 686).