The State Legislature remains deadlocked, and many issues in the state’s current budget have not been resolved. That makes it almost impossible to predict what will happen in the coming weeks and months. However, it is clear that the state’s deficit is getting bigger. Accordingly, the Chancellor’s Office has ordered a series of cost-cutting measures with the expectation that the CSU will be forced to make more budget cuts in the next fiscal year that starts July 1. In the Governor’s recently proposed budget, the CSU shortfall amounts to almost $16 million. In addition, the proposed budget does not include the Compact funding of $217.3 million for operating costs and enrollment growth; therefore, enrollment increases beyond our target are limited.
The recent systemwide actions are as follows: a salary freeze for all vice presidents, presidents, vice chancellors and the chancellor; a hiring freeze on all positions except those deemed essential to operations; employee travel restrictions; and the cancellation of non-critical equipment and supply purchases.
The budget impasse also has led to construction projects being suspended on all campuses, Humboldt State included. The suspension stems from a state freeze on $600 million in general obligation and lease revenue bonds that finance the projects. Suspensions here will temporarily halt payment of the $2.4 million needed to complete the Kinesiology & Athletics Complex (plaza portion) and refurbish the Forbes Complex (the East and West Gyms), as well as the $1.3 million to finish upgrades to Nelson Hall. Fortunately, construction of the new College Creek Apartments can move forward; it should be completed by Fall 2010.
We are hopeful the construction interruption will not continue more than 60 to 90 days, but the situation hinges on whether the Legislature and the Governor can overcome the budget stalemate. If they fail to reach agreement in the next few weeks, then the construction delays might persist for some time. One of the things I want to emphasize is that the situation is subject to change. This is not only because of the political standstill in Sacramento, but also because of the pervasive economic difficulties.
At the system level and here at Humboldt State, we are doing everything we can to preserve jobs and protect the quality of education. Fortunately, CSU staff are not facing mandatory, unpaid furloughs like many other state employees. Also, for the time being at least, the possibility of salaries being paid with IOU’s is not on the table.
Despite the many uncertainties, our University Budget Committee has started working on a budget for 2009-10. The meeting schedule, minutes and other budget information can be found at the Budget web site. The site also includes the 2008-09 “Budget Book,” a new publication that will be updated each year to help broaden campus understanding of our complex budget.
In the meantime, I join with the Chancellor in urging everyone to remind our elected officials — as well as our local business, community and civic leaders — that the CSU is vital to our state and provides a broad labor force that will help make California successful. CSU and higher education as a whole are long-term investments that benefit everyone.
While there are challenges ahead, I believe it is also important to keep in mind our many recent successes. For example, enrollment figures continue to be high; prospective students continue to show a strong interest in Humboldt; and alumni giving is at a new record level. There is new student housing under construction, and the new Learning Commons is proving popular. Also, we will soon begin work on a new donor-funded home for the Schatz Energy Research Center.
As always, I welcome your thoughts and suggestions. It will take all of us working together to preserve Humboldt State’s distinctive features — features such as the close attention students receive from faculty, the hands-on learning experiences that are available, and our commitment to environmental and social responsibility. Humboldt State offers its students an outstanding educational experience, and we all deserve to be proud of the role we play.
Updates on the budget and other important topics such as the WASC reaccreditation will be provided as the semester progresses. I want to thank all of you for what you contribute to HSU, and I wish you a good and productive semester.
Sincerely,
Rollin Richmond
President