Final Allocation - 2007-08 Support Budget
September 13, 2007
Memorandum
To: Cabinet
From: John D. Welty
President
Subject: Final Allocation - 2007-08 Support Budget
Response Date: October 10, 2007
The 2007-08 final budget allocations were issued by the Chancellor's Office on August 24, 2007 on coded memo B 07-02. A copy of that memo is included in this binder. The General Fund budget for California State University, Fresno is $223,130,550 (excluding reimbursed activity) with an enrollment target of 18,770 FTES. The campus General Fund Budget Summary is included as Attachment A.
Level-A Allocations
The final Level A budget worksheet is included as Attachment B. This allocation includes the 2006-07 compensation pool distributions (Line 4).
The Level-A section entitled "New Level-A Allocations" from Line 7 (A) to (M) displays the distribution of $16,743,899. Included in the Level-A budget are the following specific allocations.
I. 2007/08 Allocation Base Budget Adjustments
- Retirement Adjustment:
$1,150,000 was provided as additional state funding received relating to the increase in CalPERS employer-paid retirement rates effective July 2006. The amount funded by campus is based on the change in retirement rates applied to 2006/07 FIRMS final budget CSU State Support salaries submitted in August 2006. This allocation is displayed on Line 3 of the Level-A worksheet. - Auxiliary Audit and H.R. Manager Chargebacks:
The permanent base-budget adjustments of $15,300 to our General Fund budget are chargebacks for the costs to fund an Auxiliary Auditor position ($155,900) and a legally mandated HR Manager position for student dispute resolutions systemwide in the Conflict Resolution and Campus Relations unit ($118,300). The chargebacks are prorated by campus based on a percentage share of the total 2006/07 final budget.
II. 2007/08 Budget Plan Expenditure Increase
Mandatory Costs:
Mandatory costs are expenditure obligations the university must pay whether or not funding is received from the State or student fee income. Mandatory cost obligations identified in the CSU budget plan for 2007/08 included increases in employer-paid health benefits premium costs, service-based salary increases negotiated through collective bargaining, energy cost increases, and funding required to open and maintain new and/or renovated facility space.
- Health Benefits:
$1,455,000 was provided in the CSU allocation to assist with funding the base increase in employer-paid health care costs resulting from January 2007 premium increases. Health care cost increases are determined by the number of CSU employee participants and the difference between the old and new employer-paid contribution rates. Campus expenditure increases to cover incremental costs have been prorated on the basis of percentage share of reported 2005/06 General Fund health benefits expenditures. This allocation is displayed on line 7(F) of the Level-A worksheet. - Full-Year Service Based Salary Increases:
$193,000 was provided in the CSU allocation to fund service-based salary increases implemented on eligible employee anniversary dates that occur throughout the fiscal year. The Service-based Salary Increases (SSI) compensation costs incurred in the first year are less than full-year costs. The remaining full-year costs are mandatory obligations in the subsequent year. The projected full-year service-based salary increases correlate with the 2006/07 Service-based Salary Increases for the CSU Employee Union (CSUEU) and the California Faculty Association (CFA). This allocation is displayed on line 7(B) of the Level-A worksheet. - Energy Costs (Utilities):
$195,000 was provided in the CSU allocation to assist with increases in electricity, natural gas, and water/sewer rates occurring at campuses. This allocation is displayed on line 7(E) of the Level-A worksheet. - New Space:
$813,000 was provided in the CSU allocation for new space at the rate of $8.84 per square foot for regular maintenance and $425 per new FTES for marginal cost of providing new space. $478,451, or 58.85%, was allocated to Facilities, with the balance of $334,550, or 41.15%, retained in Centrally Managed Resources to be allocated to utilities. This allocation is displayed on line 7(D) of the Level-A worksheet.
2.5% Enrollment Growth Funding
The 2007/08 Final Budget includes 2.5 percent enrollment growth of full-time equivalent resident students (FTES) equal to an additional 8,355 FTES funded at a General Fund marginal cost rate of $7,710 per FTES. The 2007/08 Marginal Cost of Instruction fee revenue applied is $2,257 for a total marginal cost rate of $9,967. Of the total $9,967, $745 of the fee revenue component funds financial aid and $425 of the General Fund component is designated for the marginal cost component of New Space. After applying these designations, the remaining marginal cost funding fee revenue component is $1,512 per FTES and the General Fund component is $7,285 per FTES.
- BSN Enrollment (Nursing Program):
The nursing program is being allocated $271,000 to support 20 additional undergraduate nursing students. This funding represents the marginal instructional cost for the 20 FTES at $10,588 per FTES, or $212,000, plus $59,000 incremental growth revenue. Nursing programs are significantly more costly than "average" instructional programs due to higher faculty salaries, small class sections, and specialized equipment needs. This allocation is displayed on line 7(I) of the Level-A worksheet. - Financial Aid - State University Grant Allocations:
$2,042,700 is being set aside to provide financial aid. The 2007/08 Final Budget sets aside one-third of marginal cost fee revenue from enrollment growth for student financial aid equal to $745 per FTES. In addition, one-third of the total projected revenue from a 10 percent increase in State University Fee rates is set aside to address the needs of CSU students with financial need. This allocation is displayed on line 7(G) of the Level-A worksheet. - Compensation:
The 2007/08 final budget allocations include a $4,312,000 (4.62%) compensation pool increase for faculty and staff compensation. This will fund a 3 percent compensation pool increase for all employee groups and an estimated 1.62 percent pool increase, or $2,237,000, for employee groups with identified salary lags. The final budget allocations distributes the 3 percent compensation increase by campus based on the percentage share of the most recent past year total General Fund salaries reported. The salary lag funding is distributed based on campus percentage share of past-year General Fund collective bargaining identification (CBID) salary expenditures. Actual compensation increases for represented employee groups are determined by negotiations between collective bargaining units and CSU Systemwide Human Resources. This allocation is displayed on line 7(A) and 7(C) of the Level-A worksheet.
Long Term Need
- Deferred Maintenance:
$111,000 was provided in the CSU allocation to assist in addressing the significant budgetary deficiency in the CSU that exists in deferred maintenance. Deferred maintenance occurs when scheduled repairs are delayed to subsequent years due to project cost, timing, and/or lack of available resources. This allocation is displayed on line 7(H) of the Level-A worksheet.
III. Campus Level-A Allocations
New Level-A Allocations included the following:
| Description | Line | Permanent | One-Time | Amount |
| Deferred Maintenance | 14(A) |  | $500,000 | |
| Graduate Enrollment Augmentation (1) | 14(B) | | 140,000 | |
| Advancement Augmentation | 14(D) | |
68,000 | |
| Athletic Augmentation | 10(C) | | 104,400 | |
Total "Off the Top" Distribution | $812,400 | |||
Other Level-A Allocations included the following:
| Description | Line | Permanent | One-Time | Amount |
| Advancement | 10(A) | | $ 257,000 | |
| Capital Project Management | 10(B) | | 150,000 | |
| Graduate Enrollment Augmentation | 14(B) | | 450,000 | |
| Technology Funding | 14(C) | | 500,000 | |
Total "Other" Level Allocations |
$1,357,000 | |||
Remainder of Level-A Allocations at Level-A Percentages:
| Description | Line | Percentage Allocation | Amount |
| Instruction/Academic | 7(M) | 70.081% | $2,898,795 |
| Student Affairs | 7.964 | 329,419 | |
| Administration/Human Resources | 4.689 | 193,953 | |
| Facilities | 6.575 | 271,965 | |
| Advancement | 1.532 | 63,369 | |
| Executive | .985 | 40,743 | |
| Information Technology | 6.385 | 264,106 | |
| Athletics | 1.789 | 73.999 | |
Total Remainder at Level-A Percentages | 100.00% | $4,136,349 | |
Allocation Instructions and Response
The General Fund allocations instructions are included in this binder. Using these instructions, please submit your allocation to the Office of Budget & Treasury Management by October 10, 2007. The Budget & Treasury Management Office will load the Final Budget into the PeopleSoft Financial and HRSA systems as soon as all the Divisions have submitted their budgets. Should you have any questions regarding the allocations, please contact the Office of Budget & Treasury Management for clarification.
