October 10, 2011
TO: SDSU Faculty and Staff
FROM: President Elliot Hirshman
Provost Nancy Marlin
Vice Presidents Sally Roush, Mary Ruth Carleton and James Kitchen
We are writing to share with you an update on important issues within the University, including the most recent action of the President's Budget Advisory Committee (PBAC) regarding SDSU's budget for the current year; the current status of the CSU budget for next year; and recent fundraising accomplishments.
Current Year Budget
PBAC met on Sept. 15 to review financial data, consider proposals for one-time funding and discuss potential approaches for handling additional budget cuts that may occur this year due to the invoking of the state's mid-year "trigger cut."
In its review of financial data, the committee heard a report on SDSU's revenue receipts and received information on one-time institutional reserve funds. Final tuition and fee revenue for this year will be determined following spring semester census. Current revenue estimates from all enrollments are approximately $2 million greater than the budgeted amount. Any final tuition and fee revenue in excess of the university’s initial budget estimate will be used to increase our one-time reserve (see information on current one-time reserve below).
With respect to the mid-year trigger cut, we estimate that SDSU's share of the reduction will be approximately $7.8 million. Given current state revenues, the trigger cut is highly likely to occur and we plan to use one-time funds held centrally and in the divisions to address this anticipated reduction. If the reduction is implemented, PBAC will meet again to vote on a recommendation to the President.
The sustained nature of our financial challenges emphasizes the importance of prudent investment in the professional development of our faculty and staff. PBAC considered several proposals in this area. The Committee voted to recommend presidential approval of one-time funding items, including $250,000 for Staff Professional Development and $194,168 for Faculty Research, Scholarship and Creative Activity grants (commonly called the UGP). This latter amount will fully replace the funds that had previously been allocated by the Chancellor's Office for this purpose, and will be combined with existing Provost Office funds to provide a total of $380,012 in faculty support. President Hirshman approved these expenditures to support faculty and staff professional development. With these expenditures, the centrally held one-time reserve is approximately $3 million.
2012-13 Budget
At its Sept. 21 meeting, the CSU Board of Trustees heard a preliminary overview of the CSU system's budget request for 2012-13. The preliminary budget request includes funding for compensation increases, enrollment growth, mandatory cost increases, urgent maintenance needs and funds for a student success and graduation rate initiative. The preliminary CSU budget proposal does not currently include replacement funds for the $100 million trigger cut referenced above. As we know from prior years, there are likely to be substantial differences between this preliminary overview and the final budget allocations. The Board of Trustees will receive a final 2012-13 budget proposal request for action at the November meeting.
The Campaign for SDSU
The Campaign for SDSU is nearing the $275 million mark. We are over halfway to our goal of raising $500 million in critical support for our students, faculty, staff and programs. Recent gifts of $1.6 million included support for scholarships, the College of Engineering and the College of Business Administration. This week we will close another $2 million in gifts, providing support for the humanities, the Joan and Art Barron Veterans Center, the School of Public Affairs and the College of Education. We will continue to aggressively pursue philanthropy as a means of building excellence at SDSU. For more information about The Campaign for SDSU, visit the website.
As has been the case throughout the current period, our faculty, staff and students continue to carry out our core missions of education, research and creative endeavors, and service to our community. We remain deeply and profoundly grateful for the dedication and commitment of our SDSU community.