Campus Designated Balances and Reserves
What are designated balances and reserves?
Designated balances and reserves are an integral part of how CSU campuses manage operating activities and are held and utilized for designated purposes, as articulated by state law and CSU policy. Designated balances and reserves accumulate annually primarily from tuition, fees, and other revenues in excess of annual expenses. Designated balances and reserves do not include monies that are held on behalf of another entity, such as the federal government for student financial aid, or held pursuant to a bond indenture or other similar requirement. The CSU policy on designated balances and reserves can be found in the CSU Policy Library.
Designated balances and reserves are maintained by each of the 23 campuses and the system office for CSU operating activities, which include student housing, campus parking, student unions, health facilities, university educational operating activities, among others.
Balances and reserves for CSULB over the past five years can be accessed via the links below:
Operating Fund
Enterprise and Other Funds
This includes: Parking, Housing, CPIE, Health Facilities, Student Union, Lottery, and other funds held in the state treasury.
Designated balances and reserves fund non-recurring expenses to manage short-term obligations and commitments, provide funding for capital infrastructure repairs and maintenance, pay for costs associated with catastrophic events and natural disasters, and help ensure that operating costs can be paid during times of economic and budget uncertainty.
There are four major categories of Designated Balances and Reserves:
- Short Term Obligations: which include designated balances for open commitments, encumbrances, near-term debt service payments, and financial aid obligations. These amounts vary year-to-year and are typically paid during the following fiscal year.
- Capital: Capital facilities and maintenance designated balances are accumulated over time to repair, replace, and construct academic buildings, student housing, parking, and student body centers, among others.
- Catastrophic Events: Designated balances are also maintained to pay for costs associated catastrophic events and natural disasters such as fires, floods, or earthquakes.
- Reserves for economic uncertainty: These are intended to provide a prudent reserve ranging from to three to six months of operating costs to sustain operations during potential recessionary cycles or state budget fluctuations.
By policy, reserves are maintained for CSU operating activities, which include student housing, campus parking, student unions, health facilities, university educational operating activities, among others.
Current reserves for economic uncertainty are much less than the goal, with existing reserves in this category representing less than one month of operating costs compared to the three- to six-month policy guideline.
