Campus Budget Update

June 5, 2015

Dear Campus Community,

I am pleased to provide a CSU budget update subsequent to the Governor's May Budget Revise. Governor Brown has embraced our systemwide efforts to efficiently and effectively provide quality education as reflected in his increased allocation to the CSU system. The May Revise proposes an increase to the CSU's ongoing budget of $157.5M for 2015/16. This is a $38M increase over the Governor's initial January 2015 budget proposal, and is allocated for additional enrollment, student success, and completion initiatives. The May Revise also added $35M in one-time funding for energy efficiency, renewable energy, and greenhouse gas reductions. 

While we appreciated the Governor's additional investment in the CSU, it should be noted that the $157.5M increase to the system's ongoing budget remains $59M short of the CSU Trustees' request. Accordingly, the Trustees will be forced to reduce new funding commitments for some of the priorities identified in their 15/16 support budget plan.

Following is a summary of the key budget increases proposed for the CSU system:

Ongoing Budget Increases

• 1.75% funded enrollment increase: $35.2M;
• 2% compensation pool: $65.5M;
• Mandatory cost allocation: $23.1M;
• Student success and completion initiatives: $19M;
• Set aside for ongoing support of infrastructure needs: $10 million

One-Time Allocations

• Continued support for infrastructure maintenance projects: $25M;
• Innovation awards one-time funding: $25M;
• Greenhouse gas reduction one-time funding: $35M

Implications for CSUN

The Chancellor's Office has provided campuses with additional information regarding enrollment funding as a result of the Governor's May revise.  As part of the Governor's January budget proposal, CSUN was funded for 196 additional full-time equivalent students (FTES). As a result of the changes articulated in the May Revise, CSUN will receive an additional 220 FTES in 2015/16.  Thus, our state appropriation will provide funding for 416 new FTES — a 1.59% increase. However, CSUN must also reduce total resident enrollment by 1% annually over the next four years to bring the campus in alignment with our CSU mandated target. The new funded enrollment will help CSUN to maintain budget stability as we make this transition.

CSUN also expects to receive allocations to cover our campus share of the ongoing and one-time increases discussed above. Additional budget adjustments at the campus level are pending further legislative actions in Sacramento and vetting at the Chancellor's Office.  By law, the state budget must be signed by June 30, so we anticipate clarification of final budget determinations at the July Board of Trustees meeting.

Dianne F. Harrison, Ph.D.
President