State & CSU Budget Update
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May
15, 2008
Dear CSULB Students, Faculty and Staff:
Yesterday afternoon
Governor Schwarzenegger released his “May Revise” adjusted 2008-09
State Budget Proposal, which included an updated state revenue and
expenditure projection. As you probably know, in recent years the
CSU has participated in a Higher Education Compact Agreement with the
Governor that provided for annual budget increases for enrollment
growth and mandatory cost increases. For several years, this
Compact brought much needed support and stability to our campus.
This past fall the CSU proposed to the Governor a budget plan
consistent with this Compact that included increases necessary to
provide for anticipated enrollment growth, mandatory fixed costs, and
salary enhancements. However, in January in response to a
mounting state budget deficit, the Governor proposed “across the board”
budget reductions approximating 10 percent for all State General Fund
programs. This prompted the CSU to initiate planning for a budget
problem totaling $313 million ($386 million without a student fee
increase), which included a state budget reduction of nearly $100
million and unfunded, but unavoidable, increases for health benefits,
mandatory costs, and compensation of about $213 million. Our
campus, in turn, planned for a budget problem totaling $16 million,
which represents a combination of the state budget reduction to CSULB
of approximately $7.4 million and unfunded, but unavoidable, increases
in health benefit costs, compensation, and mandatory costs of
approximately $8.6 million.
On Wednesday the
Governor revised his budget proposal, restoring $100 million to the CSU
budget, but still not funding mandatory cost increases. This is
good news and we are very grateful that the Governor has recognized the
importance of education as a state investment instead of simply viewing
us as a state expenditure. However, this action does not solve
our entire budget problem. The CSU must still deal with $213
million in unfunded mandatory costs which equate locally to an $8.6
million problem for CSULB.
In addition to not
being a comprehensive solution, the Governor’s proposal is simply a
recommendation and is subject to the actions of the Legislature, which
is likely to make changes in the revised budget. The Legislature
may reduce the restored funding or it could choose to target some or
all of any restored funding to a specific purpose. Whatever is
ultimately decided as a final budget by the Legislature is not expected
to be completed until well into the fall semester. Despite this
fact, we applaud the Governor’s May revision and the restoration of
funding for the CSU and our public education colleagues. We now
hope that the State Legislature will also work in the coming months to
protect education and the CSU from the very harmful cuts.
Furthermore, on
Wednesday the CSU Board of Trustees approved the $276 per year fee
increase for CSU students. We had long assumed that this fee
increase would be enacted unless the State Legislature acted to buy out
the $73 million student fee. This has not occurred, so in order
to provide appropriate planning and lead time for students prior to the
fall semester, the new student fee resolution was presented and
approved by the Board on Wednesday morning.
This budget process
is long from over. We must respond to the Governor’s revised
proposal optimistically, but with caution and prudence. As is the
long tradition on our campus, consultation will continue to play a key
role in how resource decisions are made. The Governor’s support
of education as expressed in his revised proposal is most
welcomed. We deeply appreciate his recognition of higher
education’s critical role in the future success of our great
state. However, there is still a strong sense among all of CSU’s
constituent groups that for us to fulfill the challenge of sustaining
California’s economy, restoring the remaining $213 million of the
Higher Education Compact to the CSU is essential. Therefore, the
CSU Alliance will continue pushing hard to make even more progress in
the months to come.
I will be sure to
keep you informed as the process moves forward and any new budgetary
information becomes available. Your continued interest and
support is greatly appreciated.
GO BEACH!
F. King Alexander
President, California
State University, Long Beach
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