Budget Central


CSU Update

Dear Colleagues,
Provided below is the latest update from the CSU Chancellor’s Office for your information.

The California State University Employee Update
Thursday, March 24, 2011

CSU Addresses $500M Funding Cut

The CSU’s Board of Trustees Tuesday discussed several strategies aimed at mitigating the governor's proposed $500 million cut to the university’s 2011-12 budget. The CSU will actually need to address a $550 million total gap in funding once $50 million in mandatory costs, including increased energy costs and employee health premiums, have been factored in.

The CSU will apply an estimated $142 million of revenue (net of financial aid) from the tuition fee increase approved for fall 2011 to the budget reduction, leaving the system with the need to reduce spending by approximately $400 million.

In addition to revenue from the tuition fee increase:

Because 84 percent of the CSU's operating cost is for personnel, the CSU will need to continue to reduce personnel expenses by at least $250 million. Since the state's fiscal crisis began in 2008-09, the CSU has reduced the number of employees by 8.8 percent (4,145) and the Chancellor's Office has reduced management personnel by 11 percent.
The governor's proposed state budget brings the CSU’s level of state support to 1999-00 levels, but the CSU currently serves 70,000 more students. The CSU could face a $1 billion budget reduction if tax extensions backed by the governor do not reach the ballot of a proposed special election in June, or are rejected by voters. More information <CSU Budget Central>.

The Trustees also reviewed:

Qayoumi Becomes President of San José State

Mohammad Qayoumi, president of California State University, East Bay, has been named president of San José State University.

Qayoumi has served as president of Cal State East Bay since 2006. He came to Cal State East Bay from Cal State Northridge, where he served as vice president for administration and finance and chief financial officer from 2000 until 2006, and was also a tenured professor of engineering management. Prior to that, he served as vice chancellor for administrative services, University of Missouri-Rolla, associate vice president for administration at San José, and as director of utilities and engineering services, director of technical services, and staff engineer at the University of Cincinnati, Ohio. In addition, Qayoumi served as an engineer on a variety of projects in the United Arab Emirates and Saudi Arabia.

Qayoumi holds a B.S. in electrical engineering from American University of Beirut. He holds four degrees from the University of Cincinnati: a Master of Science in nuclear engineering, a Master of Science in electrical and computer engineering, a Master of Business Administration and a Ph.D. in electrical engineering.

Updated: 03/24/2011
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