SDSU 2018/19 Budget Update
This is the fourth and final in a series of informational memos about the SDSU FY18/19 budget. It provides an update on our final budget, and the CSU base and one-time allocations to SDSU and the other CSU campuses (see coded memos B 2018-02 and B 2018-03).
State Allocations Update
The governor signed the Budget Act of 2018 on June 27, 2018. It includes $197.3 million in new base funding to the CSU of which $75 million is dedicated to Graduation Initiative 2025 and $122.3 million is for general university expense increases such as employee compensation, benefits, and operations and maintenance of newly constructed facilities.
The final 2018-19 state budget also includes $120 million in one-time funding to be available over a four-year period for a one percent increase in enrollment, $35 million for deferred campus maintenance, and additional funds for specific state priorities such as supporting student well-being.
Campus Budget Update
The Chancellor’s Office final budget letter (coded memo B 2018-02) provides an increase of $16.6 million in state appropriation to SDSU compared to our preliminary estimate of $9.9 million. The additional base funding will be added to SDSU’s base reserve to build a target reserve of $4 million.
The Chancellor’s Office coded memo B 2018-03 provides one-time funds to SDSU in the amount of $8.4 million to support Research, Scholarly & Creative Activity ($156,770), Graduation Initiative 2025 ($150,000), deferred maintenance & infrastructure project – electrical utility replacement phase 1 ($6,932,000) and enrollment ($1,155,000).
Total University Budget - FY 2018/19
SDSU’s fiscal year 2018/19 final total budget, including all auxiliaries, is $936.7 million, an increase of $42.5 million or 4.75 percent compared to fiscal year 2017/18.
University Operating Budget - FY 2018/19
SDSU’s fiscal year 2018/19 final operating budget is $446.3 million of which $418.2 million is from state appropriation ($206.8 million) and tuition and fee revenue ($211.4 million). This $418.2 million is the source of funding for our instruction, instructional support and administrative costs. Compared to fiscal year 2017/18, state appropriations for FY2018/19 increased by $16.6 million and tuition revenue increased by $6.8 million without increasing the tuition level. After funding $14.4 million in increased mandatory costs and bargained compensation, $5.6 million in new base funding has been allocated to meet strategic and critical needs, such as tenure and tenure-track faculty and lecturer hiring, critical staff hiring, and program support.
The fiscal year 2018/19 budget continues the practice of conservative revenue budgeting, in which a portion of tuition revenue is not allocated to base budget costs. This practice provides financial flexibility to protect the university against a possible future budget downturn. The funds held back from the base in 2018/19 have been made available as a one-time allocation of $21.2 million in the initial budget for strategic and critical needs such as startup packages for new faculty, classroom and lab renovations, instructional equipment, lecturer and student support hiring.
Next Steps
The President’s Budget Advisory Committee (PBAC), along with other budget advisory groups such as the Senate Committee on Academic Resources and Planning (AR&P) and Budget Review Action Team (BRAT) will resume in the fall. These budget advisory groups will continue to collaborate on campus resources and planning matters and provides inputs to recommendations regarding potential new base and one-time allocations to the campus.
Thank you for your efforts in support of our university. In just a few months, we’ll have a new governor and budget discussions regarding fiscal year 2019/20 will begin shortly thereafter.
Questions concerning this memo may be directed to Agnes Wong Nickerson, Associate Vice President for Financial Operations or Crystal Little, Budget Director.
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