CSU Works to Ensure Employees Receive Paychecks

In response to Gov. Schwarzenegger's signing of an executive order Thursday, July 31 to cut the pay of state workers to the federal minimum wage until a budget is passed, California State University Chancellor Charles B. Reed reiterated that CSU employees will continue receiving their regular paychecks while the university seeks ways to cooperate with the state to minimize the impact on the general fund.

While CSU is not under direct executive authority and subject to the requirement, the governor has requested that CSU and a number of other state entities assist in the effort to conserve the state's cash balances.

“We are working to ensure that CSU employees will receive their regular paychecks and can expect their normal compensation until a new budget is signed,” Reed said.  ”At the same time, we are looking at paying compensation with alternative revenue sources other than the state general fund in an effort to cooperate with the governor and the legislature in this challenging budget environment.  Also, this will not affect the fall semester on any of our campuses.”  

In an effort to avert a cash crisis, Schwarzenegger issued an order to cut the pay of about 200,000 state workers to the federal minimum wage of $6.55 an hour until a budget is signed. The budget deadline was July 1, and without a signed budget soon, the state has indicated it may be forced to borrow funds on terms that are highly unfavorable to the state in order to meet its short-term cash flow needs.

The governor has also called for a hiring freeze of all non-critical functions.  Regarding the CSU, Reed said: “We are going to be prudent in our hiring, but the CSU needs to be prepared to serve the 450,000 students that will be enrolling on campuses for the fall semester beginning in August.  To be responsive, the CSU will need to hire faculty and staff to help meet the needs of those students.”

In addition to the CSU, the Governor has requested that other state entities, including the University of California, California Community Colleges, the California Public Utilities Commission, constitutional officers, and legislative and judicial branches, assist with similar efforts to help preserve the state's cash supply during the budget impasse.