TO: Cal Poly Employees
FROM: Bob Detweiler, Interim Provost/Vice
President for Academic Affairs
Larry Kelley, Vice President for Administration and Finance
RE: Budget Update
The 2004-05 operating budget development process continues as the Conference
Committee addresses budget actions by the Assembly and the Senate. Both
houses
in the legislature have proposed more funding for higher education than
the
amount that is in the Governor’s budget. The Conference Committee
is working
to reconcile the differences between the Assembly and Senate budget proposals,
while considering the fiscal realities and the Governor’s desires.
Key items being considered by the Conference Committee include:
• Funding for additional enrollment;
• Redirection of first-time freshmen and funding for counseling
services; and
• Additional funding for student financial aid.
Any changes in enrollment targets for next year would become the floor
upon
which the new Compact for future funding is built. The CSU has said that
any
funding in 2004-05 for what might be a partial restoration of enrollment
will
come to campuses in proportionally the same manner in which it was taken
during
the budget reductions. Increasing enrollment and meeting higher targets
for
the 2004-05 year, should that be included in the budget, will be difficult
on a
campus like Cal Poly, where most of the enrollment decisions have been
made
already for next year.
As we look at various possibilities for any funding above what is in
the
Governor’s budget proposal, we could anticipate that the CSU would
receive
additional enrollment dollars which would then be allocated to the campuses.
While the methodology for this allocation--along with any enrollment
requirements--is not defined fully at this time, rough estimates are that
Cal
Poly could receive between $1 million and $2 million more than anticipated
in
the Governor’s budget for next year. That would mean that the total
budget
shortfall to Cal Poly for 2004-05 might be reduced from $9.3 million to
something around $7 million.
We are continuing with the budget plans that are in place as we watch
the
budget development process closely. We have been told to expect that the
2004-
05 budget will be final by July 2. The allocations from the CSU would
follow
that action and should be known in late July if the State budget is in
place by
the beginning of July. 