The state's systems of higher education will absorb severe cuts under this budget. For the California State University, the reduction will be at least $650 million, and possibly more if anticipated revenue does not materialize. Overall CSU funding will be about $2.1 billion, its lowest level since 1998, despite the fact that we now serve 90,000 more students.
As CSU Chancellor Reed put it, what was once unprecedented has become normal. This is the second time in three years that the CSU budget is being reduced by more than $500 million, which is absolutely heartbreaking. The impact will be felt most immediately by our students, but I have no doubt that there will be a long-term negative consequences for the economy and quality of life in California. We should be investing in higher education to pull ourselves out of this recession and to be competitive long-term.
The CSU system and the campuses have already planned for a $500 million reduction, and at its July 12 meeting, the CSU Board of Trustees will address the additional reductions. To protect student access, student services and program quality, the Chancellor will recommend an additional 12 percent tuition fee increase, or $294 per semester, to be effective this fall.
For Humboldt State University, it appears that the reductions in the original campus Budget Plan I approved in the Spring should be adequate. For that Budget Plan, we estimated a reduction of about $13 million for the campus. Because of conservative budgeting in previous years, and after increases in tuition fees as well as $900,000 in base augmentations, we planned for a shortfall of approximately $5.3 million.
To meet the reduction, we are working to increase annual revenue within the next three years by $3.1 million. In addition, the three large divisions are making base budget reductions as follows: Academic Affairs $1,530,000, Administrative Affairs $465,000, Enrollment Management and Student Affairs $205,000.
Our top priority continues to be student success, both in improving retention and graduation rates as well as advancing the success rate of traditionally underrepresented students, along with academic excellence and educational quality. The second priority is making Humboldt State fiscally stable and growing revenue through enrollment, advancement activities, grants and contracts, and enterprise functions. The third priority is service to the communities of the North Coast.
For more about HSU's 2011-12 Budget Plan and the University Budget Committee, as well as budget updates and helpful documents such as the annual Budget Book, visit www.humboldt.edu/budget. Updated information about the CSU budget is at http://blogs.calstate.edu/budgetcentral/.