Report 2018-127 Recommendation Responses
Report 2018-127: California State University: It Failed to Fully Disclose Its $1.5 Billion Surplus, and It Has Not Adequately Invested in Alternatives to Costly Parking Facilities (Release Date: June 2019)
Recommendation for Legislative Action
To ensure transparency about CSU's available financial resources, the Legislature should require the Chancellor's Office to do the following, effective September 1, 2019:
- Beginning in 2019 and no later than November 30 each year, provide relevant parties, including the Department of Finance and the Joint Legislative Budget Committee, with the current balance of the discretionary surplus that CSU has accumulated in its outside investment account that is attributable to its operating fund and to any other funds that are relevant to CSU's budget requests; the balances of the surplus amounts in those funds at the end of the prior fiscal year; the projected balances of the surplus amounts expected to remain in those funds at the end of the current fiscal year; and the amount of, justification for, and safeguards over any funds that CSU deems a reserve for economic uncertainty.
- Include in the capital improvement plans it submits annually to the Legislature information about the current balance of the surplus in CSU's outside investment account that is attributable to its operating fund or other funds that hold operating revenue from tuition, as well as the projected balance of the surplus amounts expected to remain in those funds at the end of the current fiscal year.
- Include in its consultations with the student association the full amount of the discretionary surplus CSU has accumulated to date in its outside investment account that is attributable to its operating fund and any other funds that hold tuition revenue; the rate of growth of these surplus amounts over the last three fiscal years; an estimate of the portion of the surplus amounts that came from tuition; the dollar amount to date that CSU is obligated to spend to pay for goods and services it has already received or expenses that are tied to existing contracts; a projection of the dollar amount of the surplus that will be available for campuses to spend at their discretion at the end of the current fiscal year; and the amount of, justification for, and safeguards over any funds that CSU deems a reserve for economic uncertainty.
Description of Legislative Action
As of September 1, 2022, the Legislature has not taken action to address this specific recommendation.
- Legislative Action Current As-of: September 2022
California State Auditor's Assessment of Annual Follow-Up Status: No Action Taken
As of September 1, 2022, the Legislature has not taken action to address this specific recommendation.
Description of Legislative Action
As of June 20, 2021, the Legislature has not taken action to address this specific recommendation.
AB 1836 (Quirk-Silva, 2020) would have required the Chancellor's Office to, on or before November 30 of each year, report to the Legislature the current balance and projections of the surplus the CSU has accumulated for discretionary spending on operations and instruction, and an estimate of how much tuition has contributed to the surplus. This bill died in the Assembly Higher Education Committee.
- Legislative Action Current As-of: June 2021
California State Auditor's Assessment of Annual Follow-Up Status: No Action Taken
Description of Legislative Action
AB 1836 (Quirk-Silva) would require the Chancellor's Office to, on or before November 30 of each year, report to the Legislature the current balance and projections of the surplus the CSU has accumulated for discretionary spending on operations and instruction, and an estimate of how much tuition has contributed to the surplus. As of June 20, 2020, this bill is pending in the Assembly Higher Education Committee.
- Legislative Action Current As-of: June 2020
California State Auditor's Assessment of 1-Year Status: Legislation Introduced
Description of Legislative Action
As of December 2019, the Legislature has not taken action to address this specific recommendation.
- Legislative Action Current As-of: December 2019
California State Auditor's Assessment of 6-Month Status: No Action Taken
Description of Legislative Action
The Legislature has not taken any action to address this specific recommendation.
- Legislative Action Current As-of: August 2019