urpc budget update january 29, 2016. ca governors budget reflects ongoing economic recovery o...

URPC Budget UpdateJanuary 29, 2016

CA Governor’s Budget• Reflects ongoing economic recoveryo Projects economy will continue to grow in 2016 and 2017

• Conservative due to potential for recession in a few years

• Prioritizes reserves and one-time spending with discretionary resources

Source: 2016-17 Governor’s Budget

Source: 2016-17 Governor’s Budget

Source: 2016-17 Governor’s Budget

Governor’s Budget Discretionary Spending ($7.3 billion)

Source: LAO’s 2016-17 Overview of the Governor’s Budget

$3.1$2.3

$.8$1.1 (in

Billions)

CSU & UC

Governor’s Budget for CSU+$140.4 million General Fund Increase

•$125.4 million (4%) multi-year plan increase•$15 million from changes to Middle Class scholarship program•Tuition must remain flat

+$35 million (one-time) for deferred maintenance+$35 million (one-time) for cap and trade energy projects

$101 million short of CSU Support Budget Request•Impact: Very limited discretionary funding

Source: CSU 2015-16 Budget Planning Slide

2016-17 CSU Support Budget Request

What it means for HSU• Minimal discretionary funding available

• Covers mandatory cost increaseso 2% compensation poolo Retirement and health benefit increases

• 1% funded enrollment growth

Cabinet Priorities: New Allocations

Strategic

Priori-ties

Main-tain &

Improve Assets

Con-tin-

gency

Strategic Budgeting•Advance the Strategic Plan

•Invest in Institutional Assets

•Sustain the future (Contingency and Reserves)

President’s Charge to URPCDevelop a strategic budgeting approach that aligns resource allocations with strategic planning by the end of the 2015-16 academic year.  •A set of guiding principles for strategic budgeting, including definitions and guidelines for budget categories; (Finalizing)

•Proposals for appropriate policies to support strategic budgeting; (Need to do)

•A recommended framework for evaluating existing base budgets (Need to do)

•Recommended processes that integrate institutional data and assessment with resource requests; and (Lisa C.’s Workgroup)

•A revised proposal for a reserve policy. (Need to do)

Next StepsCabinet•Develop 2016-17 Budget

URPC•Continue to build out strategic budgeting framework

Budget Planning Focus as We Move Forward

•Five year planning horizon->Need to shift to planning for two years out

•Convergence of strategic plan and strategic budgeting

•Budget is still incremental->Need to link to strategic categories

2 Year Concept

16-17

17-18

18-19

19-20

20-21

Plan 18-19

19-20

20-21

21-22

22-23

Reaffirm 18-19

19-20

20-21

21-22

Implement