Governor's Budget Proposes Deep Cuts for CSU

Faced with a gaping statewide budget deficit of nearly $35 billion, Governor Gray Davis today released a 2003/04 state budget proposal that calls for dramatic cuts for state agencies and organizations across the board. For the California State University, Davis? budget proposes $326 million in cuts and leaves unfunded an additional $78.6 million in compensation and health insurance cost increases.

The governor?s budget proposal anticipates that the CSU?s Board of Trustees will increase student fees in 2003/04 to compensate for $258.5 million of the General Fund reductions. If approved by the trustees, that would equate to a 25 percent undergraduate fee increase, boosting fees by $394 for a total annual undergraduate state university fee of $1,968. The governor has proposed an accompanying increase in financial aid for eligible students.

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