The CSU would receive a $500 million—or 18 percent—reduction in state support in the proposed 2011-12 state budget. This reduction is a "best case" scenario based on an extension of the personal income and state sales taxes, as well as the vehicle license fee which the governor hopes voters will approve in a June special election. If voters reject the tax extensions, the CSU may face additional cuts.
Turnage also noted that cutting expenditures at the CSU will be very challenging. More than 84 percent of the CSU’s budget goes to employee salaries and benefits, with the remainder dedicated to operating costs such as equipment, supplies and utilities. The CSU is considering all options as it develops a comprehensive plan to address the proposed reductions.
CSU leaders have been actively advocating the need to preserve the CSU’s budget. Chancellor Reed, CSU Board of Trustees Chair Herbert L. Carter and others recently spoke before the California State Assembly Committee on Higher Education on several initiatives aimed at helping students succeed and reducing costs.