Budget Update Communications

Academic Affairs Budget Townhall Presentation

CFO Office Hours with Charlie Faas – Winter 2024/Spring 2025

The campus community is invited to meet with Charlie Faas, VP Administration and Finance and CFO, during monthly office hours, alternating between Zoom and in-person meetings. This is a great opportunity to ask questions, learn more about the university's budget and finance processes, and engage in discussion about financial matters affecting the campus.

Office Hours Schedule:

• Tuesday, December 10 – 4:00 PM to 5:00 PM (Zoom)
• Tuesday, January 14 – 4:00 PM to 5:00 PM (Clark 540)
• Tuesday, February 4 – 4:00 PM to 5:00 PM (Zoom)
• Tuesday, March 4 – 4:00 PM to 5:00 PM (Clark 540)
• Tuesday, April 1 – 4:00 PM to 5:00 PM (Zoom)
• Tuesday, May 6 – 4:00 PM to 5:00 PM (Clark 551)
  
  How to Participate:

For Zoom sessions, a link will be posted closer to the date on the Finance and Administration website.
For in-person sessions (Clark 540 and Clark 551), simply drop in to ask questions.
We encourage faculty, staff, and students to take advantage of this opportunity to connect with the CFO and gain a deeper understanding of the university's financial planning, budgeting, and resources.

Sept. 26 FAQs

• Is the President retaining funds for focus/emphasis areas that fall outside money back to colleges? Is there a process to advocate for consideration of those funds?

  • There are no general funds retained by the President’s Office beyond the regular operating funds that support the personnel and operating costs of the office.

• Will our massive jump in the rankings help our budget advocacy efforts? I imagine it would help with enrollment as well.

  • Improvement in rankings boosts public confidence in SJSU and in the California State University system and, as such, they can contribute to our budget advocacy efforts. However, it is important to note that the state provides funding to the CSU system and not directly to SJSU, so SJSU’s rankings are just a part of the picture.

    The increase in SJSU’s ranking positively influences our recruitment efforts, enhancing visibility in previously untapped markets. The strengthened brand will position us as a premier destination for incoming students, supporting a strong yield for California Residents, while also improving our non-resident enrollment efforts—crucial for the diversification of our enrollment.

• How do you expect us to take a "town hall" seriously where no one is allowed to ask questions about the information we have just received from a transparency perspective?      

  • Each segment of the town hall was followed by a Q&A session and comments and questions were solicited electronically and are being answered here.

• If there is still a shortfall going into the '26-'27 budget year, are you willing to take the Campus Unions with you to the Chancellor's Office to lobby for more money for SJSU?

  • The system office does not have a lobbying process, but the president is meeting with campus labor leaders regularly and discussing opportunities to collaborate on efforts to advocate for SJSU and the state and system levels.

• The President keeps talking about 'doing our work differently' and reducing redundancies, but I haven't heard any specifics regarding what this might mean. Can any light be shed in this area?

  • The People Centered Excellence Initiative is focused on streamlining our efforts to work more efficiently and to remove unnecessary barriers to getting things done for our employees. A key component of these efforts is the Shared Services effort launched in September and presented at the Town Hall. Further updates on this effort will follow throughout the Fall semester.

• Is there going to be a public report that summarizes major ideas from each of the strategic work groups?

  • Yes, we are working on a report that summarizes the insights and key recommendations of the work groups and will share it soon. 

• Academic AffairsHow will the university distribute its funds fairly to ensure majors outside of STEM do not feel unappreciated?

  • The majority of the budget is in instructional dollars and those follow enrollment. This year, the College of H&A, for example, is the largest college by FTES and has received additional dollars to teach students in the college. Additionally, we adjust the distribution of dollars based on the “marginal cost of instruction” and this means the arts, health, and education are funded at rates higher than other colleges to support their instruction. 

• With the increased emphasis on enrollment/admissions, there has been a somewhat confusing approach to adding sections of a class. At times, we've had the numbers to add or open another section but have been told no to adding another section. Are we supposed to cap our admissions in our department due to the limits on sections?

  • Admission levels are determined in consultation with colleges and departments before we start the admission process. At the same time, most majors are open to all applicants and course section needs depend on student demand. So, adjustments have to be made as students enroll at either the lower division (first-year students) or upper division (transfer students) or continuing students. This year, we provided college enrollment estimates in February so departments can build appropriate schedules. What changed this past year? We had a much stronger retention number (adding continuing students), more successful re-enrollment campaigns (bringing students back who had withdrawn), and stronger new transfer numbers (adding about 150 more students to the campus). We are working on building more effective predictive models to help colleges and departments model enrollments. 

• Our departments are feeling the squeeze with fewer but larger classes and less assigned time than in the past. There is concern that this reduced budget situation will become the new normal. Do you expect that to be the case?

  • A preliminary analysis of student-to-faculty (SFR) ratio for Fall ‘24 demonstrates a slight increase compared to Fall ‘23 (25.3 compared to 24.8). The Fall ‘24 number, however, has not yet hit the highest historic SFR (Fall ‘17 at 26.3). That said, some colleges have seen a greater increase in SFR than others - three colleges had a change less than 1, while six had changes greater than 1. On the CSU level, six campuses report a SFR of 2-4 points higher than SJSU in 23/24. SJSU was just below the Average SFR level for the entire system in 23/24 as well. 

    Assigned time has shifted over the last six years, with more emphasis and investment in RSCA relative to other sorts of administrative assigned time. The overall instructional workload of an “average” T/TT faculty member has hovered around 40%.

• Fiscal sustainability is not the same as sustainable work for employees. What are the plans to address this situation (which will NOT allow us to provide students with the educational experience they deserve)?

  • We are closely monitoring workload for faculty and staff and looking to reinvest in staff positions, for example, to support the operations of the campus as we continue to manage our limited financial flexibility. We prioritized staff hiring in areas, such as financial aid, to support student aid needs and the Provost’s Office has been reviewing and moving forward staff hiring for the academic colleges as well. We are also looking at important faculty workload metrics, such as student-to-faculty ratio (SFR). Preliminary analysis shows that SFR has risen from 24.8 (F ‘23) to 25.3 (F ‘24), which is still not near our historic high of 26.3 (F ‘17). Finally, we are assessing overall faculty assigned time, which includes support for a number of work areas (overall, assigned time is higher in Fall ‘24 (2,867) than it was in Fall ‘18 (2,414), although the distribution of those units are different, with more assigned to the University RSCA Program, for example, and less in College- and Department-based assigned time). 

• While we are grateful to have a balanced budget for the year, I believe future projection has a strong dependence on the enrollment picture.  Could you speak to the commitment in streamlining processes (e.g. admissions) in order to compete effectively in the global market?

  • All processes, policies, and practices within the Office of Undergraduate Admissions are under review to ensure they are streamlined and equitable. We are actively addressing gaps in our technical infrastructure, which will take time to resolve fully and align with industry standards. Once these updates are completed, we will shift our focus to future enhancements to position ourselves as an industry leader.

• Can you go into more detail about what WUE means for students?

  • The Western Undergraduate Exchange (WUE) program will provide students from participating states access to SJSU majors at 150% of California resident tuition. This initiative will enhance SJSU’s competitiveness while generating additional revenue for the campus. Importantly, there will be no impact on current or future SJSU students, as the selected majors are primarily underserved and have room for growth.

• What is the 3-year budget outlook based on efforts to increase enrollment, expand self-support programs, close student equity gaps, and improve the quality of the student experience? Will SJSU have the financial, human, and information resources to achieve the university's strategic goals?

  • The CSU’s budget formula is based on three areas:

    1) Growing enrollment,

    2) Receiving the Governor’s 5% Compact annually and

    3) Increasing Tuition 6%.  

    If these all happen and expenses (foreseeable & unforeseeable) align with these revenue growths, the CSU has a sustainable financial model.
    We believe that SJSU has the ability to grow our enrollment above targets set by the Chancellor’s Office, thereby receiving additional funding support to grow key presidential priorities.

• Finance and Administration What steps has the university taken to ensure affordability for our low-income students on campus amidst compounding tuition raises?

  • CSU Tuition was increased by 6% in 24/25. Tuition has only been increased once in the past 12 years.
    The Board of Trustees insured that State University Grants (Student Aid) are retained at current levels through this increase
    About 60 percent of CSU undergraduate students whose tuition is fully covered through grants, scholarships, waivers and other non-loan aid, will not pay the increase. Another 18 percent will have the tuition increase partially paid for through non-load aid.
    CSU tuition is 40% lower than the national average of similar State institutions and is the lowest of the 16 comparable institutions.

• Does the current year budget include salary adjustments for MPPs?

  • All employees are affected by the budget issues. MPPs and Confidentials receive the same % increase as represented faculty and staff. This year, that is 5%

• How can leadership convey the value of MPPs, e.g., those that bring in their own grant funding, etc.?

  • All SJSU employees are valued, staff (which includes MPPs) and faculty. What we have achieved (note national rankings) is the result of the work of all of us. We are in this together. MPPs, from ADM I to ADM IV have value on this campus. Just as we have tenured faculty on this campus who began as lecturers, many of our MPPs have risen up through the faculty and staff ranks and continue to serve SJSU well, utilizing their institutional knowledge to our advantage. Many MPPs work long hours, well beyond a typical eight-hour work day. As mentioned, sometimes MPPs bring in additional resources from new sources, such as grants and contracts, to support university priorities.

• What is the president's salary and what is the percent increase of it since 2000? Does this salary hike match the current inflation rate or is it higher?

  • The President’s salary has grown an average of 2.7% annually from 2010 to 2024. 

    Cynthia Teniente-Matson  =  $475K
    Steve Perez =  $432K
    Mary Papazian =  $403K  

    For CFA, annual raises have been negotiated from 2014/15 that average 3.58%.  Note that no raises were distributed in 2015/16, but a "catch up" was done the following year, leaving 2021 (Covid) as the only year in the past 10 without a general raise.

    For CSUEU, annual raises have been negotiated from 2014/15 that average 3.52%.  Note that no raises were distributed in 2020/21 and 2021/22, but a "catch up" was done in 2022 (for 21/22), leaving 2021 (Covid) as the only year in the past 10 without a general raise.

    MPP raises averaged 3.12% from 2014/15 to 2024

    Inflation during the same period averaged:

    National =  2.96%      California = 3.33%      Bay Area = 3.83%

• What can staff, faculty, and MPPs do to help stabilize the university amidst the current budget challenges?

  • Everyone at SJSU has had to deal with budget cuts; no division has been spared. With this, work has to be managed differently. All positions are reviewed to ensure that the position is necessary -- and this includes MPP positions -- and if any extra work engendered by budget cuts, has been distributed as necessary and fairly with any additional pay that should go along with that. Again, this cuts across all staff employees whether non-MPP or MPP.

• What efforts are being made for MPP employees (& their salaries/increases) to share the cuts the rest of the employees are enduring? 

  • Employees have not had their salaries cut. Represented employees have received 5% increases. As to the ramifications of budget cuts, all employees, including MPPs, have had to deal with these and how work is managed and distributed. Vacancies have not necessarily been filled. This has resulted in extra work for many--including MPPs. 

• Many MPPs continued to receive salary increases when the rest of SJSU's employees had no increases.

  • This is not an accurate statement. Represented employees received negotiated 5% increases; MPPs and Confidentials received the same.

    • MPP salaries have risen 33.5% from 2014 to 2024.
    • Faculty salaries rose 38.8% in the same period
    • Staff (CSUEU) salaries rose 38.1% in the same period

    For CFA, annual raises have been negotiated from 2014/15 that average 3.58%.  Note that no raises were distributed in 2015/16, but a "catch up" was done the following year, leaving 2021 (Covid) as the only year in the past 10 without a general raise.

    For CSUEU, annual raises have been negotiated from 2014/15 that average 3.52%.  Note that no raises were distributed in 2020/21 and 2021/22, but a "catch up" was done in 2022 (for 21/22), leaving 2021 (Covid) as the only year in the past 10 without a general raise.

• Given the CSU executive-to-worker pay ratio and raises for executives that have grown at nearly twice the rate as pay for lecturers (https://calmatters.org/education/higher-education/college-beat/2023/12/cal-state-salaries/) How is SJSU thinking about where money is best spent to support its mission?

  • SJSU complies with all negotiated increases as per CBAs. SJSU also recognizes the market we are in and sets salaries accordingly to attract and retain talent.
    The referenced article is specific to PRESIDENTIAL salaries. (SJSU was 2nd lowest)
    Presidential pay at California State University campuses increased on average by 43% between 2007 and 2022; SJSU - $431,673  $305,008 42%

• What kinds of assurances can SJSU executives make to faculty, staff, and students that the sacrifices being made by faculty, staff, and students for a balanced budget are being equally made at the executive levels?

  • All SJSU employees at all levels have been affected by the budget cuts. No division has been spared. This is a necessary exercise to ensure that we continue to fulfill our mission of providing a quality education to our students.

• “We have to do less with less” said Cal State trustee member Christopher J. Steinhauser. “We are going to have fewer programs, fewer positions. And anyone listening to this meeting, if they think that we can do this without doing that, they’re really kidding themselves.” I wonder how we as a campus feel about this assertion? It feels very much like we at SJSU are being asked to do more and more with less and less.

  • SJSU employees received 5% salary increases the past two years and have received increases 10 of the past 11 years.  The Cost of Living in San Jose is extremely difficult, SJSU complies with all negotiated increases as per CBAs.

• The hiring slowdown on staff makes it incredibly difficult to carry out basic functions and serve students. Where is staff hiring in your order of priorities?

  • All positions are reviewed before a recruitment is approved. Making sure we have sufficient staffing for essential positions that serve our students has been and continues to be a priority.

• How will the budget cuts from the state budget affect the CSU system and SJSU?

  • The key for San Jose State is for us to optimize what is within our control.  We are proactively addressing our institutional image, enrollment, administrative functions and faculty hiring.  We are using our location, in the heart of downtown San Jose and in Silicon Valley to tell our story.  Most importantly, we are stressing Student Success initiatives.
    First we have four very positive things working in our favor.

    1. We start our planning for next year with no structural deficit.  We do have a loan to continue to reduce and payback, but our structural issues are behind us.
    2. We will be in the 2nd year of the CSU’s 6% tuition increase.
    3. We are one of seven CSU campuses projected to see enrollment reallocation from other under enrolled campuses, increasing our enrollment target and providing additional State funds for student enrollment on top of tuition.
    4. We are planning to surpass our enrollment target.  And, we must continue to support persistence and retention for our existing students.

    Our Challenges include:

    •  The likely deferral of the 5% Governor’s Compact
    • The Governor is planning an 8% State Funding Base reduction.
       
      Each campus will uniquely, based on their enrollment and situation, address these challenges.

     

• Is there a Cover Budget available for unforeseen necessities?

  • No

• Are there budget audits? How often? Are audits campus-specific? Department-specific?

  • When audits are conducted, their scope encompasses the budget (revenues and expenses) of the entity being audited. Since 2009, the CO has employed risk-based auditing on the CSU system.  The risk-based audits by the CO are campus specific and department specific.

• How much does SJSU spend on maintenance and debt service for parking structures? How much of that is covered by parking fees?

  • University Parking Services (UPS) is a separate “enterprise” of the University.  It maintains its own revenue, expenses, debt service and reserve.
    Maintenance & Upkeep = $915K, UPD Services = $1,360K, Debt Service = $2,361K

• Most employees are overwhelmed with the added work they have been doing for the last two years and not having sufficient staffing with minimal relief in sight. While there have been recent raises and some stipends given (still not enough to live in Silicon Valley comfortably), how can we continue to retain good employees or recruit new ones when the salaries are still so low, and there doesn't appear to be an end in sight for adding more people to do the work?

  • More attention and efforts are being directed to development and wellness programs. We also are looking to provide the necessary tools and process training for employees to work efficiently thereby reducing any redundancies or unnecessary steps. (An example of this: participating in UCSD's Process Palooza and gaining access to and certification in Lean Six Sigma. UP is in conversation to host one of these events on campus next year.)
    Approximately 90% of our employees are represented by a union.  Unfortunately Union CBA’s do not recognize regional pay differences in California.  
    The Deloitte work we discussed at the September 2024 Town Hall meeting looks to address workload and redundancies/inefficiencies.  

• Will department employee roles be reviewed for downsizing and the effectiveness of each role?

  • All positions and roles are being reviewed.

• When do you anticipate the hiring freeze to be over?

  • At this time, there remains a hiring slowdown, meaning that all requests to recruit must be approved by both the Vice-President and the President. 

• Since most departments are short-staffed, will there be a hiring freeze or layoffs planned?

  • There are no plans for layoffs at this time.

• Will there be layoffs, furloughs, or retirement incentives?

  • There are no plans for layoffs at this time. 
    Furloughs are a Chancellor Office decision (system-wide) and not being currently considered
    We do not foresee utilizing retirement incentives

• How will budgetary concerns affect pay raises for MPP-level employees?

  • All employees are affected by the budget issues. MPPs and Confidentials receive the same % increase as represented faculty and staff. This year, that is 5%

• Staffing is still at skeleton-crew levels. It's critical to have budgets to staff and support the exponential growth SJSU and its auxiliaries have experienced. How can staffing reserves be built and secured with these current/upcoming cuts? Without staff, this amazing work cannot get done. Turnover is at its highest and is crippling the remaining staff.

  • Retention of employees is important. We need to support our employees, ensuring that we have efficient processes so that any unnecessary steps in a process are eliminated thereby saving time and cost of the amazing work we do at SJSU. That is why we are investing more now in building a strong process infrastructure that provides appropriate training to employees on efficient work processes, provide common understanding of how we approach and perform our work and develop streamlined processes to reduce waste and establish efficiencies. We believe this will reduce the burden on everyone setting us up for a strong future with a balanced budget and a process structure that supports our mission with limited strain to our employees.
    Turnover rates are up from pre-Covid years.  However our turnover has not changed significantly over the past four years.  That said, retention is almost always better than having to re-hire.
    Pre-COVID we were annually turning over 12% of our employees, Since 2020, we are averaging 17% annually.

• I wonder if the new budget will include professional development opportunities for employees.

  • We need to continue to include professional development opportunities for all our employees.

• Are there any immediate plans to provide more resources and personnel for revenue-generating divisions?

  • We do approve funding for “revenue-generating” areas.  Spartan Village on the Paseo was approved to staff up their operations as their 97% occupancy clearly paid for the resources, Academic Affairs is funded for their FTEs that over the CO target enrollment, these are two examples.

• What relief will the campus see now that we've balanced the budget?

  • In the short term, the “relief” is minimal, as we just balanced the budget and have not started to increase our reserve levels.  We are also faced with potential challenges in 25/26.

• Budget Deficit: Can you clarify the 2024-2025 budget deficit of $26.7 million referred to in the slide deck? It was a bit unclear in the transitions of the slides how that deficit was created.

  • The 23/24 Budget had a $14.8M base deficit.  This included no funding for salary increases, as at the time of the budget submission, union negotiations were still in progress and did not fully resolve until February 2024.
    The bridge shared at the March 2024 Town Hall showed the main drivers:
    -$20.8M – Retroactive Comp Increases (7/1/23) 
    -$ 1.7M – Non-Res Enrollment Decline 
    +$ 8.6M – Compact Funding from Chancellor’s Office
    +$ 0.7M – CA Res Enrollment increase
    The 23/24 Year-End Deficit was forecasted to be $26.7M in March (achieved)

• Have we taken strides to reduce SJSU Energy consumption? Is there a way to get more solar power/energy-efficient lighting in all buildings?

  • SJSU is the 5th largest CSU campus by student population and the 2nd smallest at 90 acres.  
    Other large CSU campuses have 2.5 to 10 times more land area than SJSU.  As a result of this land area constraint SJSU is intensely populated and scheduled leaving little time or space for large retrofits to reduce energy or water use.
    FD&O is always working to reduce energy consumption through smarter operations. Retrofits or replacement of lighting or air conditioning equipment trigger building code requirements that result in much larger and more expensive projects for which there is no funding to complete and no spare space to do a construction project in an occupied building.  So in the interim, operational strategies are used to reduce energy use. Specifically, by scheduling the HVAC system operating hours to match the classroom schedule as closely as possible.  The next step in that process would require mobilization of multiple divisions to change operational procedures to reduce the number of buildings and spaces operating, this can have big impacts to the campus community, colleges, students and instruction.  An effort of this scale to save energy would require extensive engagement and consultation since these deep operational changes can make campus life more difficult.
    In 2021, SJSU installed 1.5 Megawatts of solar capacity under a power purchase agreement.  This project installed solar on the rooftops that were best situated for solar in terms of the condition of the roofs and electricity purchasing factors.  The remaining on campus sites are more expensive for additional solar given our small land area footprint.  The typical University options to install more solar are not available to SJSU due to laws, regulations and our small land area.  SJSU is in the process of joining San Jose Clean Energy that will provide cost savings and 60% renewable energy for grid-purchased electricity.  Urban sustainability requires SJSU to take novel approaches given our constraints.

• Concern for new grass and water resource waste located between MacQuarrie Hall and Interdisciplinary Sciences Building. 

  • SJSU serves as informal parkland for the greater community in downtown San Jose so grass areas have significant value for both SJSU and the surrounding community.  
    As I have said many times, SJSU is the largest park in San Jose!
    SJSU and downtown San Jose sit on an alluvial plain where the underground aquifer meets the southern San Francisco Bay.  As a result, SJSU and Downtown San Jose have a very high water table that intrudes on all subsurface infrastructure and requires active systems to keep our basements and utilities dry and protected.  SJSU and every other building owner in downtown pumps large volumes of water out of their basements and subsurface infrastructure daily.  SJSU appreciates the concern about water use.  The reality is that SJSU sits in an area of noteworthy water abundance and reducing water use in an area of abundance does not result in less water scarcity in another watershed that isn't connected by CA's water infrastructure.  SJSU's approach to sustainability celebrates this place and the things that we have in abundance to increase the supply of the things that are scarce in our community.  

• Why are bathroom stall locks not replaced (missing in CCB since 2022)?"

  • We have not had a work order submitted for this issue, so thank you for brining this to our attention.  There is one stall in CCB with a stall lock that is not working, it is being fixed.

• Is the track & field stadium still in the budget?

  • Yes.  We received $9M from the State that we are working with the Santa Clara County Fairgrounds on a new Track facility

• What is the 3-year budget outlook based on efforts to increase enrollment, expand self-support programs, close student equity gaps, and improve the quality of the student experience? Will SJSU have the financial, human, and information resources to achieve the university's strategic goals?

  • The CSU’s budget formula is based on three areas:

    1. Growing enrollment,
    2. Receiving the Governor’s 5% Compact annually and
    3. Increasing Tuition 6%.  

    If these all happen and our union partners agree to wage increases that align with these revenue growths, the CSU has a sustainable financial model.
    SJSU has the ability, if all the above are obtained, to grow our enrollment above targets set by the Chancellor’s Office, thereby receiving additional funding support to grow key presidential priorities.

• Student Affairs While focusing on enrollment advancement is amazing, many of our current students feel a lack of support especially with the budget reductions for student affairs. How will you ensure that campus resources such as the student success centers will have enough funding & support to continue serving our students?

  • Some student services, such as those related to basic needs and healthcare, have unique funding sources that are not directly affected by the current budget cuts.  We anticipate broad access to those resources and services to remain.

• To what extent might mitigating the high cost of living near SJSU help bring up our nonresident enrollment?

  • Unfortunately we live in a region with some of the highest costs of living due to housing costs. However, SJSU has recently opened Spartan Village on the Paseo to increase campus housing options for our students. Specifically, there are 679 beds available, plus an additional 124 designated affordable spaces that are available at a reduced cost. Another way we are helping to bridge the financial needs of our students is through our SJSU Cares program. Through SJSU Cares our students can access:
    Spartan Food Pantry;
    Enroll in CalFresh for monthly cash supplements for use at grocery stores;
    Emergency financial assistance;
    Housing support;
    Talk to a case manager.

• What steps has the university taken to ensure affordability for our low-income students on campus amidst compounding tuition raises?

  • The recent opening of Spartan Village on the Paseo expanded on-campus housing by 670 beds. Included in that are 124 beds that are specifically designated for low income students and are available at a reduced rate. Additionally, our SJSU Cares program provides access to our Spartan Food Pantry, enrollment in CalFresh for monthly cash supplements to be used for groceries; emergency financial assistance; housing support; and, case management. Financial aid and scholarships are also available for students. On average, SJSU undergraduates graduate with only $15,720 in student debt, which is less than half the average debt of California college graduates (AY2018-2019 data).

• Can we opt out of some of the fees? (SRAC fee, health services fee)

  • Please see the guide from the CSU System regarding which fees are mandatory versus voluntary.

• While focusing on enrollment advancement is amazing, many of our current students feel a lack of support especially with the budget reductions for student affairs. How will you ensure that campus resources such as the student success centers will have enough funding & support to continue serving our students?

  • The student success and cultural centers within Student Affairs remain a high priority for the division and SJSU.  Budget cuts have been minimized in these units but recent vacancies allows us to reconsider the organization and staffing issues.  A study has been conducted to analyze the work of these centers and benchmarking with other CSUs is also being conducted.  The centers will continue to provide excellent service to our students but strategic plans and assessments are being redesigned to identify the student success metrics and outcomes that we want to achieve.

•  
  •  
•  
  •  
• Is the track & field stadium still in the budget?

  • The track and field complex is an off campus project at the County Fairgrounds. The primary funding came from the state of California with a $9,000,000 earmark. If the project runs over the allocated amount, other revenue sources would need to make up the difference. If this is the case, SJSU may need to embark on some philanthropy to assist the project.

•  
  •  

Campus Communications

March 2024 Budget Town Hall

On Monday, March 11, President Cynthia Teniente-Matson, Provost and Senior Vice President for Academic Affairs Vincent Del Casino, Jr., and Vice President for Administration and Finance and CFO Charlie Faas hosted a budget town hall at the Student Union Theater. Assistant Vice Chancellor for System Budget for the California State University Ryan Storm also presented the outlook for the system for fiscal year 2024-2025.

Watch the recording of the Budget Town Hall
View the Budget Town Hall slide deck [pdf]

Frequently Asked Questions from the Town Hall

• Will there be layoffs?

  • We do not have a layoff plan at this time. Various workgroups may make organizational recommendations that involve restructuring, and there could be changes in staffing that come with reorganization. With a reorganization there may also be reassignments.

• Will there be furloughs?

  • Furloughs can only be implemented at the CSU system level. 

• Will there be voluntary exits?

  • Nothing is planned at this time.

• How will the budget work group recommendations influence the budget?

  • We are looking at every division to implement a 6% base budget reduction starting on July 1, 2024.  The workgroups will be focused on the four R’s - Reduce, Reallocate and/or Restructure to achieve this, while also needing to Repay the $12M in borrowing from the fiscal year 2023-2024 deficit. 

• Did the recent compensation increases have an effect on the deficit?

  • Yes. We did not have a balanced budget prior to the compensation increases so the compensation increases raised our total deficit. In fiscal year 2023-2024, we only had one source of funds for compensation, which was through new compact funding from the CSU through the state. In fiscal year 2024-2025, one source for salary increases is the compact funding, and other campus sources include tuition increases and reallocation of internal operating funds over the next two years. 

    The university is responsible for managing all its resources which include the compact funding, tuition and general fund to honor all collective bargaining agreements and associated salary increases. We support all employees being paid fairly and equitably.  

• How did the first round of budget cuts at SJSU get distributed? 

  • The first round of cuts, when complete, will total $29.5M dollars. Of those cuts, $10.4M were assigned to Academic Affairs (or 3.90% of the AA budget). The remaining $19.1M were assigned to all the other divisions (or a 10% reduction). This was in line with our strategy to make the first round of cuts relative to the investments that were made in the original Transformation 2020 Strategic Plan. 

• What about Athletics?

  • In the first round of budget cuts at SJSU, Athletics was assigned $1.1M dollars in cuts (or 9.8 percent of their General Fund operating costs). Those permanent cuts go into effect on July 1, 2024, as Athletics, like Academic Affairs and IT, deferred some cuts to next year. That said, Athletics has cut $1.0M dollars from their base this year and have thus produced a one-time savings of over $500,000 dollars. 

• What is the relationship between our enrollment and overall budget challenges?

  • There is a direct relationship between the two. SJSU hit a height for enrollment of 28,606 FTES in the Fall of 2021, when the campus was enrolling way above California resident target and international enrollment was also strong. For Fall 2023, SJSU enrolled 27,186 FTES, a difference of nearly 1,500 FTES. This represents a decline of both California resident and non-resident enrollment, both of which have an impact on our overall budget (approximately $12.5M). In short, when SJSU was significantly overenrolled and had higher non-resident student enrollments, we had much more revenue and institutional reserves. We also grew in all areas of the university, because we had the enrollment growth funds to do so. 

• What is the relationship between the general fund and all other sources of revenue on campus?

  • The total campus budget is $756M. The General Fund has $448M in revenue and $308M is from Auxiliaries, Enterprises and self-support.

• How will self-supports be impacted by this campus deficit?

  • All self-support, auxiliaries and enterprises need to following the General Fund's lead on process improvement, shared services, focusing on core mission, limited year-to-year growth (exceptions are PaCE and Spartan Village on the Paseo), restructuring, etc.

• Given that we have experienced a budget shortfall and buildings are only getting older -- what do our reserves for capital projects look like as we need to make repairs around campus? 

  • Deferred maintenance at SJSU and across the CSU has always been significantly underfunded. We will have to prioritize critical repairs and maintenance with the limited budgets we have.

September 2023 Budget Summit

Review the recap to the fall 2023 budget summit that was held on September 14, 2023.