CSU Chancellor Charles B. Reed

As this year's unusually busy and challenging fall term comes to a close, I wanted to take the time to give you a brief update on the California State University's budget.

California continues to face one of the largest budget crises in state history, even after a devastating year in which the CSU's budget was reduced by $304 million. At the same time, our state has just undergone an unprecedented mid-term switch in administrations. These events mean that the CSU is still facing many unknowns as we prepare for 2004/05. Adding to the uncertainty, Gov. Schwarzenegger last month proposed new budget cuts that would affect a number of state-funded agencies and programs including the CSU. We still do not know how the Legislature will act on this proposal, or what actions the governor might take in his January budget that could add to or mitigate these reductions.

However, as we work with Gov. Schwarzenegger and his new administration in Sacramento, we will continue to communicate the fact that the CSU's brand of high-quality, accessible higher education is vital to California's economic prosperity. We have presented the administration
with a full picture of our needs and we will be working to help more Californians understand that ensuring proper funding for the CSU will bring long-term benefits to the state.

I will send you another update on the prospects for the CSU's budget after the governor releases his formal budget plan in January. If you would like to receive regular weekly updates on CSU news, I urge you to sign up for the CSU Leader e-mail newsletter at www.calstate.edu/csuleader.

Thank you again for all that you do for the California State University, especially during these challenging budget times. I wish you and your families a very safe and happy holiday season.

Charles B. Reed
The California State University