Cal Poly Pomona

Budget Update

 

 

 

Although we still do not know the exact impact of the State’s economic uncertainties on Cal Poly Pomona, this communication is meant to keep you updated on the planning activities and discussions that are taking place on campus.  Periodic updates will be sent to the campus community.  Also, we invite you to visit one or more of the web sites listed at the end of this memo for additional information. 

 

As President Suzuki indicated in his October 30, 2001 communication to the campus, in the midst of a severely under-performing state economy the governor issued an executive order calling for a hiring freeze and a $150 million budget cut on all state agencies.  The CSU was asked to examine ways in which it could comply with the intent of the executive order. 

 

In addition, the CSU as well as other state agencies were asked to begin the development of contingency plans in anticipation of budget reductions in FY 2002/03.

 

 

Reduction in Current Year’s (2001/2002) General Fund Support Budget

 

The campus’ 2001/02 budget has been reduced on a one-time basis by one-percent.  The temporary one-percent reduction has been allocated to the campus’ five divisions (Academic Affairs, Administrative Affairs, Instructional and Information Technology, Student Affairs and University Advancement) and the President’s Office.  The five divisions and the President’s Office will identify temporary funds equal to one percent of their 2001/02 General Fund permanent base budget to be returned to the State before the end of the fiscal year (June 30, 2002).

 

Hiring Freeze

 

The campus was not asked to observe an “official” hiring freeze.  However, given the uncertainty of the 2002/03 budget, the five divisions and the President’s Office have developed a hiring strategy that identifies the anticipated recruitments required over the next 18 months.  The number of recruitments for tenure-track faculty will take place as planned during this period of time.

 

2002/03 General Fund Support Budget

 

Although the details of the governor’s budget may be revised as the state’s economic picture becomes clearer in the months ahead, the governor’s commitment to the CSU remains strong as reflected in a proposed 4.5% increase in CSU’s overall General Fund budget for 2002/03.  The 4.5% increase includes funding for a projected enrollment increase of 4% as well as funding to meet mandatory cost obligations.  Unfortunately, the proposed budget does not increase employee compensation at the levels sought; nonetheless, funding is provided for a 1% increase in employee compensation.   We must, however, remain cautious as budget negotiations move through the state legislature and as we gather more information on the accuracy of revenue projections.

 

 

 

 

 

2002/03 Cal Poly Pomona Budget Development Process

 

The University Budget Advisory Committee (UBAC) convened on January 18, 2002 to begin discussions on the 2002/03 Budget Development Process.  At the same time, division budget committees convened to begin their work on division budget plans for 2002/03.  

 

Given the probability of budget reductions in 2002/03, Division Budget Committees (and the almost 300 individuals who provide input to the work of the division committees) are being asked to present to their respective vice president specific reduction scenarios equaling 6% of the division base budget and to identify the consequences/impact to the academic mission should reductions be required.

 

UBAC, using the input from the Division Budget Committees, will develop a recommended two-year budget management strategy that 1) identifies potential budget reduction strategies; and 2) recommends categories for offset should additional funding become available or reductions be less than anticipated.

 

Although there is no doubt the campus would feel the impact of a 6% budget reduction, we are confident that the expenditure planning we are doing will be very helpful in meeting and serving our enrollment growth target for 2002-2003.

 

 

 

 

 

 

 

 

 

Suggested Resources for Additional Information:

 

·         PolyCentric (Budget Advisory): www.csupomona.edu/~public_affairs/budget/

 

·         University Budget Information with links to information on UBAC, information on the Cal Poly Pomona General Fund Budget, and information on the CSU Budget:   http://www.csupomona.edu/~adm_affairs/budget

 

·         1999/2000 Financial Statements:  http://www.csupomona.edu/~ufs/

 

·         1999/2000 University Expenditure Report (copies available in the Library, department offices, vice presidents’ offices or contact the office of the vice president for Administrative Affairs).  The 2000/01 University Expenditure Report is currently being printed and should be available (at the locations noted above) shortly.