"While the CSU is not required to reinstitute furloughs, we will continue efforts to cooperate with the state's effort to minimize the impact on the state general fund," said Reed. "Our employee furloughs ended June 30 and were part of an overall plan to address the massive budget cuts of the past two years. We have not proposed to renegotiate furloughs with our employee labor unions, but as requested by the Executive Order, will work to pay CSU employee compensation with alternative sources other than the state general fund."
In addition, CSU has continued efforts to reduce costs through decreased enrollment, deferred maintenance, delayed equipment purchases, reduction in staffing, reduction in travel expenditures and other similar measures.
Gov. Schwarzenegger issued the order in response to the state's $19 billion budget deficit, and a warning from the State Controller showing that without a budget, the state could run out of cash by October.
In addition to the CSU, the Governor has requested that other state entities including the University of California, California Community Colleges, the California Public Utilities Commission, constitutional officers, and legislative and judicial branches, assist with similar efforts to help preserve the state's cash supply during the budget impasse.