CSU Employee Update July 15, 2009

Trustees to Finalize Plan on CSU Budget Deficit

Faced with a projected $584 million shortfall to its 2009-10 budget, the CSU Board of Trustees will meet July 21 to finalize plans to manage the budget deficit. The budget deficit is the result of the state’s reduced support to the CSU as lawmakers contend with closing California’s $26.3 billion budget gap.

At next week’s meeting, the trustees will vote on a proposed $672 fee increase for full-time undergraduate students as well as increases for part-time and graduate students. The trustees will also vote on a proposed $990 tuition increase for full-time non-resident students.

In addition, the trustees will take action on proposed changes to state regulations that will allow the chancellor to furlough management and executive employees.

These are a few of several measures the CSU is implementing as part of a comprehensive, balanced approach to solve the budget deficit which stems from a historic reduction in state support. Given the magnitude of the deficit—the largest in CSU’s history—no single solution is sufficient. The CSU’s plan includes a combination of employee compensation reductions focused on furloughs, student enrollment reductions, an increase in student fees, and additional cuts that will be implemented campus-by-campus.

“These are not easy choices,” said CSU Chancellor Charles B. Reed. “We are asking everyone to make sacrifices so that we can continue to serve as many students as possible and to preserve as many jobs as possible under very difficult circumstances.”

Here is a look at the effects of the reduction in state funding on the CSU and the actions the CSU is taking to respond:

State Budget Impacts on CSU Students:
State general fund support of the CSU for 2009-10 is expected to be $1.6 billion, $500 million below the level of state support provided a decade ago. At the same time, the CSU is serving 100,000 more students than it did a decade ago. To preserve quality and access and to maintain the resources needed to serve students, the CSU has been forced to take the following actions:

CSU’s Steps to Minimize the Impact on Students:

State Budget Impacts on CSU Employees:
Employee salaries and benefits make up 85 percent of the CSU’s operating budget. To manage the deficit, the CSU is forced to reduce labor costs and has taken the following actions:

CSU’s Steps to Minimize the Impact on CSU Employees:

State Budget Impacts on the CSU’s Operations:
The state budget deficit has required the CSU to curtail construction projects and modify operations as follows:

CSU’s Steps to Minimize the Impact on its Operations: