Chancellor Reed Outlines Governor’s Final Budget Actions

_The following was provided by the CSU Chancellor's Office._ CSU Chancellor Reed issued this statement June 28 concerning Governor Jerry Brown’s final budget package: The governor signed the budget bill last night and this morning the Department of Finance posted a summary of the enacted budget package, including the Governor’s veto message. The final budget package is consistent with what was reported yesterday. The veto message includes some new information, as follows:
  • The Governor reduced the Student Aid Commission budget by $22.6 million and reduced award amounts for some Cal-grant awards for the 2012-13 academic year. Most of these changes affect students at private institutions. However, approximately 50,000 CSU students are affected by the veto message reduction of the Cal-grant B access award from $1,551 to $1,473, a reduction of $78 per recipient or 5 percent.
  • The Governor vetoed Budget Bill language that expressed a legislative expectation regarding our enrollment target for 2012-13 and that required us to submit a report to the legislature by May 2013. This veto has no implication for the 2012-13 targets that the system already has in place, but does relieve us of at least a formal reporting requirement to the legislature.
  • The Governor also vetoed some other Budget Bill provisions that earmarked dollar amounts for the Math and Science Teacher Initiative and certain enrollment expectations and reporting requirements on nursing programs. The veto message indicates that eliminating the earmarks is intended to give the CSU greater flexibility to manage the $750 million state funding reduction enacted in 2011-12. Whether, or to what extent, this new flexibility might result in changes in terms of system direction regarding these programs will require further review.

A summary and veto message can be found at the Department of Finance website (PDF).