December 20, 2010 Budget
TO: SDSU Faculty and Staff
FROM: Sally Roush, Vice President of Business and Financial Affairs
December 20, 2010
Budget Update #29
The President’s Budget Advisory Committee (PBAC) met on Nov. 18, and recommended a final budget for 2010/11, following the adoption of a final State of California budget which was a historic 100 days late.
The final state budget contained an additional $199 million in base budget funds for the CSU in addition to $106 million of ARRA funding (previously discussed in Budget Update #28) and $60.6 million of enrollment growth funding. Of the base budget increase, $22.1 million was allocated to SDSU. After adjustments for mandatory costs, state university grant, and multi-year campus initiatives, $16.7 million remained for allocation.
PBAC recommended, and the President has approved, proportionate distribution of $10.5 million of this amount to the University divisions with $6.2 million held centrally to be available in the event of subsequent budget reductions. Further, the $8.75 million that was previously distributed (and discussed in Budget Update #28) to the divisions as one-time money from federal ARRA funds the CSU received can now be considered as continuing base budget dollars because the CSU Board of Trustees approved a 10 percent increase in tuition fees for fall 2011, which produces an amount of money equivalent to the ARRA funds.
The combined results of the SDSU PBAC recommendations for 2010/11 is that the University Operating Fund budget totals $340.6 million; the divisions have been given a total of $19.3 million in new continuing base budget dollars, and the University is holding $6.2 million centrally.
Prudence is warranted in committing the additional funds due to the fact that the State Legislative Analyst’s Office and the Department of Finance are projecting that the State will face at least a $25 billion shortfall over the 18-month period from January 2011 through June 2012. Governor-elect Brown has held two public budget forums in which he has presented factual information that outlines the one-time nature of more than 85 percent of the budget solutions for the past two to three years. He affirms that the budget problem is much worse than he realized and that drastic solutions will be necessary. There is no specificity yet as to what he will propose, but his 2011/12 budget will be presented publicly on Jan. 10, 2011.
We have been conservative in our handling of the various budget problems that have faced us in the past several years and continue to position the university as well as is possible under these continuing and changing severe financial circumstances. As soon as the Governor’s Budget is published and is analyzed in terms of its impact on the CSU and SDSU, another budget update will be provided.