Budget Central

 

Budget Update

Dear Colleagues,

I am sharing with you the following update received from the Chancellor regarding the budget and recent actions taken by the Democratic leadership:

"The legislature's Democratic leadership intends to move a budget package today through the Senate and Assembly that closes the remaining $9.6 billion budget gap without the extensions of temporary tax increases proposed by Governor Brown. By doing this, Democrats can pass a budget on a simple majority vote, meet the constitutional deadline for legislative action, and avoid the uncertainty of a special election this fall. To close the remaining gap, the Democratic plan relies on a mix of additional cuts, revenue actions that they believe can be passed by simple majority, reinstatement of deferrals under Proposition 98, and other measures. Among the spending cuts are an additional cut to the CSU of $150 million, with an identical cut to the University of California. The Democratic plan imposes a cash flow deferral on the UC, but avoids additional cash flow deferrals to the CSU.

Additional cuts to higher education are never welcome. However, additional cuts are hard to avoid given the absence at this point of a two-thirds vote for the governor's proposed election and temporary tax extensions. As we discussed with the Board of Trustees at the May meeting, additional cuts to CSU's campuses and programs are not a viable option if we are to maintain student access to quality programs, courses and services. Therefore, additional cuts from the state will create a need for additional tuition fee revenue. The governor will have 12 days, once he receives a budget bill, to sign or veto the bill. We will keep you posted on developments."

Updated: 06/15/2011
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