The August 3, 2006, memorandum to Presidents from Executive Vice Chancellors Gary W. Reichard and Richard P. West provided a recapitulation of developments during 2005-06 aligned the CSU methodology for calculating graduate student FTES to the method employed by the University of California and most universities nationally and clarified marginal General Funds were received in 2006-07 ONLY for CSU students paying resident fees.

In layman's terms, this means calculating FTES as student units/12 for graduates and student units/15 for all other students.