Budget Central


CSU Update

Dear Colleagues,
Provided below is the latest update from the CSU Chancellor’s Office.
Regards, Ham

The California State University Employee Update
Wednesday, July 22, 2009

Trustees Face Hard Choices in the Face of Massive Budget Cuts

The CSU Board of Trustees finalized a plan to manage a $584 million budget deficit that includes furloughs for employees, a fee increase for students, and enrollment reductions for the next two years.
The budget deficit, the largest in the CSU’s history, is the result of the state’s reduced support to the CSU in the face of California’s $26.3 billion budget gap. Gov. Schwarzenegger and legislative leaders reached agreement on closing the gap late Monday with the legislature expected to vote on the budget plan Thursday.
The CSU for the past several months has examined every option to deal with the budget deficit as no single solution will solve it. Aiming for a balanced approach that attempts to serve as many students as possible and preserve as many jobs as possible, the trustees approved a four-pronged plan that includes the following:

One-third of the fee increase will be set aside for financial aid. This set-aside, as well as increases in financial aid included in the federal stimulus package, is expected to fully cover the fee increase for 187,000 of CSU’s 450,000 total students. The CSU also expects to receive an additional $81million in Pell Grant awards for its neediest students. The CSU is the largest recipient of Pell awards in the country with more than 120,000 students receiving grants. In addition, federal tax credits, increased work study and student loan improvements will also offset the fee increase for many students. Including financial aid, families who make $75,000 or less will not pay any fees.  Financial aid and federal tax credits will also be available for many other students, including those with family incomes of up to $180,000.

The CSU is in the process of negotiating furloughs with several of its labor unions as their labor agreements do not include provisions for furloughs. The California State University Employees Union (CSUEU), representing 16,000 non-academic employees, and the United Physicians and Dentists (UPD), with 117 members, have ratified a furlough agreement. The California Faculty Association (CFA), which represents 23,000 employees, is polling its members on a furlough option with the results expected after July 22. The CSU is in the process of negotiating furloughs with the Academic Professionals of California (APC).  The remaining unions have opted for layoffs per their contracts.

The CSU, since early June, has been attempting to negotiate furloughs with all of its unions for an August implementation.  Accordingly, Chancellor Charles B. Reed announced a deadline of July 28 at 5 p.m. for those unions who have not reached a final agreement on furloughs so campuses have time to prepare for the new academic year which begins August 24.

Updated: 03/04/2011
California State University Stanislaus
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Turlock, California 95382

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