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California State University, Long BeachCalifornia State University, Long Beach

Appendix A
BUDGET PLANNING PARAMETERS

SUMMARY OF GOVERNOR’S 2013-14 BUDGET PROPOSAL

The 2013-14 Governor’s Budget Proposal was released 1/10/13 and it included some positive support for higher education. Here is an excerpt from the budget summary document:

The Budget chooses to invest new, discretionary General Fund resources in higher education because the Administration believes that maintaining a quality, affordable system is critical to the future of the state. The Budget aims to enhance the quality of California’s higher education institutions by making them more affordable, decreasing time to completion, improving overall completion rates in all higher education segments, and improving the transfer rate of Community college students to four year colleges and universities.

Here is a summary of the 2013-14 Governor’s Budget Proposal for the CSU:

  1. Confirmation that the $125 million fee buyout allocation is included in the proposal.
  2. An additional $125.1 million (about 5% increase) to implement reforms that will make available the courses students need and help them progress through college efficiently, using technology to deliver quality education to greater numbers of students in high-demand courses, improving course management and planning, using faculty more effectively, and increasing use of summer sessions. No longer enrollment-based funding approach.
  3. Change in statute allowing CSU to negotiate higher employee contributions to healthcare. (100/90 reduced to 80/80)
  4. State continues to fund retirement contributions based on 2012-13 employees. If CSU adds employees or increases wages, CSU will be responsible for associated costs.
  5. Lease debt service and other adjustments totaling $19 million. This is really just an “in-and-out”.
  6. Bond debt service transfer to General Fund of $198 million. This is also an “in-and-out”. However, future capital outlay funds and debt service costs become sole responsibility of the CSU.
  7. #5 and #6 above can make it appear that the year-over-year increase is much larger. The true, meaningful increase figure is really $250 million (#1 and #2 above)
  8. Intent to further increase CSU funding in 2014-15 by 5 percent and by 4 percent in each of the subsequent two years. In return, expectation that current tuition and fee levels will be maintained over the next four years.
  9. Cap on number of units students can take while receiving state subsidy. First two years of proposal, cap is at 150 percent of standard units (180 units). In later years, cap is at 125 percent of standard units (150 units)
    • No specific indication yet how the additional $125 million will be utilized or allocated.
    • Early indication – funds are not for restoration but for efficiency and access
    • Chancellor will be seeking advice/ideas from Presidents

Based on Governor's January Budget Proposal & C.O. allocations dated 4-09-13

Projected Campus Discretionary Funds$4,439,485
Campus High Priority Needs ($1,000,000)
Available for Divisions$3,439,485
PRO RATA DISTRIBUTION TO DIVISIONS
2012-13 Base Budget % Pro Rata Distribution
Academic Affairs $ 118,078,307 68.8% $2,366,133
Admin and Finance $ 34,333,377 20.0% $687,995
Student Services $ 10,069,561 5.9% $201,781
University Relations & Devel $ 4,655,667 2.7%

$93,293

Athletics $ 3,076,909 1.8% $61,657
President's Office $ 1,428,532 0.8% $28,626
Totals $ 171,642,353 100.0% $ 3,439,485

 

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