Posted November 18, 2011 / Archived December 16, 2011
Other past FAQs have been archived and can be accessed from the Campus Budget News page.
If you have a question that is not answered by this FAQ, you may submit your question to firstname.lastname@example.org. (Faculty and staff should also consult and share their concerns with their supervisor, unit head, dean, or division vice president.) We cannot always respond to individual questions, but will update the FAQ as appropriate to ensure that the common questions and concerns of campus community members are addressed.
THE STATE AND CSU BUDGETS, 2011–12 AND 2012-13
* Q: What do we expect for the 2012-13 budget?
* At their November 16, 2011 meeting, the CSU Board of Trustees unanimously approved a 2012-13 budget request to the Governor and state Legislature for an additional $333 million in state funding for the upcoming fiscal year. According to CSU Chancellor Charles Reed, “The additional revenue requested in this budget is critical to addressing the deep and painful cuts the CSU has had to absorb, and to ensure that students have access to needed courses and support services.”
*The approved budget request for 2012-13 assumes that any additional “trigger cuts” [link to 3rd question about tiers/triggers] that occur in the 2011-12 fiscal year will be one-time and not affect the ongoing base budget the CSU receives.
* The budget plan identifies increased funding needs of $535.6 million, and asks the Legislature for a total increase of $333 million in state general funds. Approximately $64 million in revenue is anticipated to come from tuition fee revenues associated with enrollment growth of 5 percent, and $138 million from the tuition fee increase approved to take effect in the fall 2012 term (see question below).[link to 2nd question]
Q: Will there be additional student fee increases?
* UPDATED 11/17/11: Tuition fees remain the same for Spring 2012 as for Fall 2011.
* At their November 16, 2011 meeting, the CSU Board of Trustees approved (by a vote of 9 to 6) a tuition fee increase effective for fall 2012. This increase raises tuition fees by $249 per semester (approximately 9.1 percent) for full-time undergraduate students, $291 per semester for full-time credential students, and $309 per semester for full-time graduate students. Fall 2012 CSU tuition fees will be $2,985 per semester for full-time undergraduate students, $3,465 per semester for full-time credential students, and $3,678 per semester for full-time graduate students.
* The CSU Board of Trustees approved an increase in tuition for students in Education Doctorate programs to $5,559 per semester (from $5,250).
* CSU Chancellor Charles Reed stated, “While there is still much uncertainty in the state’s fiscal condition, we wanted to provide students and parents with as much notice as possible that tuition will go up in the fall. That said, we must all work with state leaders to restore the funding needed to maintain access and quality for CSU students.”
* This follows a 12 percent tuition fee increase effective for the fall 2011 semester which was approved at the July 2011 Board of Trustees meeting, which followed a previous 10 percent increase for fall 2011 approved by the Board of Trustees at their November 2010 meeting.
* One-third of the revenue from the tuition fee increase will be allocated for financial aid. Nearly half of all CSU undergraduates will be fully covered for the tuition fee increase due to this provision and other grants and fee waivers.
* For a chronology of tuition fee actions November 2010 through July 2011, see archived FAQs. [link to archived]
Q: What do we expect for the 2011-12 budget?
UPDATED 6/30/11: Governor Brown signed the 2011-12 state budget on June 30, 2011.
UPDATED 6/29/11: Governor Brown and Democratic legislative leaders announced on June 27, 2011 they have reached an agreement on a budget plan. In the absence of the Republican legislative votes needed to extend temporary taxes, a budget proposal was advanced that can be passed with a simple majority vote. The budget entails a mix of additional budget cuts, revenue actions that can be passed with a simple majority, and various deferrals, and assumes higher projected tax revenues in 2011-12 of $4 billion backed by “trigger” mid-year budget reductions in the event these projected higher tax revenues do not materialize.
The budget includes a cut in state support of $150 million each to the California State University (CSU) and University of California (UC) systems. This is in addition to the $500 million in reductions to each system previously approved by the legislature. Thus, the CSU budget is reduced by $650 million, a 23 percent reduction from 2010-11.
In the event that the projected $4 billion in higher tax revenues are not realized, additional mid-year cuts to the CSU and UC systems may be triggered. The trigger cuts are in three tiers, based on how much of the projected revenue is realized.
- Tier 0 takes effect if $3 billion or more in additional revenue is realized. The state will impose additional budget cuts to some state agencies but no further budget reductions to either the CSU or the UC systems.
- Tier 1 takes effect if the state realizes $2 billion to $3 billion in additional revenue. The state will impose additional cuts to various agencies, including $100 million each to the CSU and UC systems.
- Tier 2 takes effect if the state realizes less than $2 billion in additional revenues. The state will impose further cuts but no further reductions to the CSU or UC systems.
In a statement released June 28, 2011, Chancellor Reed stated, “The budget will cut the CSU by at least $650 million – nearly one-fourth of state operating support – and the effects will be felt throughout our 23 campuses and among our 412,000 students. The proposed ‘trigger cut’ of another $100 million is especially problematic because the trigger won’t be pulled until classes for our last semester of the fiscal year have already started and it is too late for campuses to respond in any practical way … If the trigger is pulled, our cut will total $750 million. State support for the CSU will be at its lowest level in 14 years, even though we currently serve 90,000 more students.”
The California State University, Northridge share of system-wide budget reductions is approximately 7 percent. Thus, the Cal State Northridge share is anticipated to be $46 million in the event of a $650 million cut and $53 million in the event of an additional triggered mid-year cut.