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