Legislative Analyst's Office

Analysis of the 2001-02 Budget Bill

California State University (6610)

The California State University (CSU) currently consists of 22 campuses. The CSU Channel Islands, located in Camarillo (Ventura County), is scheduled to open in fall 2002 as CSU's 23rd campus. The Governor's budget proposes General Fund spending of $2.7 billion. This is an increase of $216 million, or 8.8 percent, over the current year. The increase includes funding for compensation increases, other cost increases, core needs such as deferred maintenance, and various Governor's initiatives. Figure 1 (see next page) lists the Governor's General Fund budget proposals.

Base Budget Increases. The Governor's budget provides CSU with a 5 percent base increase totaling $117 million. Of this base increase, the Governor's budget designates 4 percent for compensation increases ($82 million) and other cost increases ($12 million). It designates the remaining 1 percent, or $23 million, for a variety of core needs—including technology equipment ($10 million), network capacity ($5 million), library acquisitions ($4 million), and deferred maintenance projects ($4 million).

Enrollment Growth of 3 Percent. In addition to a 5 percent base increase, the Governor's budget provides CSU with $56 million for enrollment growth. The budget assumes that CSU will serve 8,760 additional full-time-equivalent (FTE) students, or 3 percent more FTE students than budgeted in the current year.

Student Fees Maintained at Current Levels. The Governor proposes to maintain both resident and nonresident fees at CSU at their current levels. The budget provides $17 million to compensate CSU for revenue it would have obtained had it raised fees by 4.91 percent (which reflects a projected increase in per-capita personal income in California). The proposed fee for a full-time resident undergraduate is $1,834, which is $19 less than the fee in 1993-94. The proposed fee for a full-time resident graduate is $1,912, and the proposed fee for nonresidents is $9,214.

After adjusting for the effects of inflation, student fees at CSU have fallen significantly since 1993-94. Expressed in 2001 dollars, proposed resident undergraduate fees are $350 less than in 1993-94. The state has not raised resident graduate or nonresident fees since 1994-95. After adjusting for the effects of inflation, total fees for nonresidents have fallen by $1,800 since 1994-95.

Figure 1

California State University
General Fund Budget Proposals

(In Millions)

2000-01 Revised Budget


General Increases

4 percent base increase


3 percent enrollment growth (8,760 FTE)


Support in-lieu of 4.91 percent fee increase


Support for summer term


Budget-year adjustments


Reductions for one-time appropriations in current year




Long-Term Core Needs

Technology equipment


Network capacity




Deferred maintenance




Governor's Initiatives

K-12 technology training


Governor's Teaching Fellowships (second year phase in)


CSU Channel Islands


Research initiatives


Diagnostic writing service expansion


One-time appropriation for core needs






2001-02 Proposed Budget


Change from 2000-01 Revised Budget





One-Time Appropriations. In the budget year, the Governor provides $20 million in one-time funds for deferred maintenance, instructional equipment, and library materials. This one-time funding supplements the ongoing $23 million the Governor provides for the same "core" purposes. The 2000-01 budget includes $32 million in one-time funds for a variety of purposes (including $10 million for high-cost equipment purchases, $1 million for the CalTeach documentary project, and $21 million for campus-specific projects).

Expansion of Current-Year Initiatives. The budget also augments three recently established initiatives.

General Fund Support Per Student. Figure 2 shows the average and marginal General Fund support per FTE student at CSU from 1999-00 through 2001-02. The budget proposes average General Fund support of $8,822 per FTE student. This is 4.5 percent more than the average General Fund support provided in the current year, and 14 percent more than in 1999-00. For each additional FTE student budgeted in 2001-02, the Governor provides $6,360. This is 9.4 percent more than the marginal General Fund support provided in the current year, and 15 percent more than in 1999-00.

Figure 2

California State University
General Fund Support Per FTE a Student


Change From


Actual 1999-00

Estimated 2000-01 Proposed 2001-02



Average support per FTE student






Marginal support per FTE student






a Full-time-equivalent.

Crosscutting and Intersegmental Issues Involving CSU

We address several issues relating to CSU in other sections of this chapter (see Figure 3). In "Crosscutting Issues," we discuss the Governor's proposal to expand significantly the CSU-administered ETPDP program. We recommend the Legislature approve the augmentation but shift the funding from CSU to the State Department of Education. Also in the "Crosscutting Issues" section, we provide a synopsis of our recent report entitled "Improving Academic Preparation for Higher Education," and recommend approving two budget proposals relating to students' academic preparation for higher education—the $8 million augmentation for the Collaborative Academic Partnership Program and the $1 million to expand the Diagnostic Writing Service. Lastly, in "Intersegmental Issues" within our Higher Education section, we recommend linking the $12.4 million the budget provides for year-round instruction at four CSU campuses to summer enrollment growth.

Delete $10 Million for "Strategic" Academic Programs

We recommend the Legislature delete the $10 million in ongoing funding the budget requests for "strategic" academic programs at the California State University (CSU) because CSU cannot provide adequate justification that it needs additional funding for these programs. (Reduce Item 6610-001-0001 by $10 million.)

The budget requests $10 million in ongoing funding to enhance the quality of CSU's agriculture, computer science, engineering, nursing, biochemistry and biotechnology programs (both undergraduate and graduate). This funding would supplement the $10 million in one-time funding the 2000-01 Budget Act appropriated for these programs.

Figure 3

Summary of Crosscutting and
Intersegmental Issues Involving CSU



Page Number

K-12 technology staff development

Shift $18.5 million from CSU to SDE to expand Education Technology Professional Development Program and allow districts to choose professional development provider.


Improving academic preparation for higher education

Encourage UC, CSU, and CCC to assess students' college readiness earlier, report on the preparedness of all entering students, and study the effectiveness of their precollegiate services. Fund precollegiate courses across the segments in a more accurate, equitable manner.


Collaborative Academic Partnership Program

Approve $8 million to reach 223 high schools that send a large proportion of students to CSU unprepared for college-level coursework. Adopt supplemental report language requiring CSU to report on program's effectiveness.


Diagnostic writing service

Approve $1 million to expand access to online assessment service.


Summer expansion

Link $12.4 million to summer enrollment growth.


We recommend the Legislature delete the budget-year request for an additional $10 million in ongoing funds for the following five reasons.

In sum, we recommend the Legislature delete the $10 million in ongoing funding for these specific programs because CSU has not provided adequate justification that it needs additional funding.

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