HSU Construction Projects Suspended

CSU construction projects are being halted on all 23 campuses in response to a state freeze on $600 million in general obligation and lease revenue bonds that finance the projects.

Construction of Humboldt State’s new College Creek Apartments will go forward as scheduled, but suspensions will temporarily stop payment of the $2.4 million needed to complete the Kinesiology & Athletics Complex (the Plaza between the new building and Redwood Bowl and the landscaping) and refurbish the Forbes Complex (the East and West Gyms); and the $1.3 million to finish upgrades (electric utilities, heat and ventilation systems) to Nelson Hall.

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Suspensions are expected to last two to three months, but their duration hinges largely on whether the governor and the legislature reach a budget agreement in the near future for the fiscal year that began July 1.

The Chancellor’s Office has notified HSU of further cost-cutting measures brought on by the state’s budget deficit and aimed at protecting the quality of education. A salary freeze is in effect for all vice presidents and above, including presidents, vice chancellors and the chancellor. A hiring freeze has been imposed except for positions essential to operations. Other measures include employee travel restrictions and the cancellation of non-critical equipment and supply purchases.

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Humboldt State has prepared a new fiscal source with extensive budget information titled "The Operating and Capital Budget Book,” available at www.humboldt.edu/~budget. At the same time, the University Budget Committee has begun deliberations on the Fiscal 2009-2010 budget due July 1. The panel’s minutes are posted at the same Web address.

Based on the governor’s 2009/2010 budget summary issued December 31, the CSU faces a revenue shortfall of $15.8 million, even if the CSU Board of Trustees enacts a student fee increase of 10%. Hence, the ongoing cost-cutting measures undertaken by the Chancellor’s Office. In addition, the proposed budget does not include Compact funding of $217.3 million for operating costs and 2.5 percent enrollment growth.

In a statement issued January 9th, Chancellor Charles B. Reed said, “Our focus in the coming months will continue to be maintaining jobs and preserving access and quality for students. I encourage our students, faculty, staff, alumni and labor unions to work together to tell our elected officials as well as our local business, community and civic leaders, that the CSU is the economic powerhouse that provides the highly skilled professionals to the industries that make California successful; and that higher education is a long-term investment that benefits everyone.”