The California State University Board of Trustees' Committee on Finance approved on Tuesday, Nov. 18, a $5.1 billion budget request to the state for fiscal year 2009-10, which consists of $3.5 billion from the State General Fund and $1.6 billion from student fee revenue.
The budget requests a state augmentation of $611.4 million for the CSU. This includes $341.2 million to fully fund the CSU under the provisions of the Governor's Higher Education Compact. In addition the CSU proposes a $116.7 million core compact recovery for revenues that were not received from the state in 2008-09 and that are needed to avoid losing ground in closing salary lags and reaching competitive salary levels for faculty and staff. The budget also recognizes $153 million to cover additional high-priority needs.
“The 2009-10 CSU budget request reinstates California's education priorities under the Higher Education Compact to ensure student access to CSU campuses, address compensation issues, increase student financial aid, and fund CSU mandatory costs,” said CSU Chancellor Charles B. Reed. “Achieving full funding from the state will be extremely tough in the face of the current fiscal crisis. But in times like this, it makes sense to give priority to educating the workforce that will help the state grow out of the economic downturn. Now more than ever, the state needs to treat higher education as an investment in California's future.”
The budget includes a state General Fund revenue augmentation of $86.9 million to support CSU operations in lieu of a 10 percent student fee increase. If there is no change in CSU fee rates, undergraduate students will continue to pay an annual $3,048 State University Fee, plus an average of $801 in campus fees.
In addition, the budget requests above the compact funding for new and expanded initiatives to address pressing state needs. Above compact funding initiatives include clinical nursing and algebra readiness programs; preparation of more special education teachers; hiring of more tenure-track faculty, and providing an additional one percent compensation increase for faculty and staff, as well as, actions to facilitate timely student graduation, orientation and advising for students, articulation with community colleges programs, agriculture and biotechnology research, and teaching languages critical to our country's national security and economic competitiveness.
The CSU budget was formed in consultation with members of the Board of Trustees, campus presidents, CSU Academic Senate, student representatives. and other university constituencies. Detailed documentation on the 2009-10 CSU budget is available here.
2008-09 Budget Update
As a result of the state's poor financial condition, the governor has proposed further budget cuts of $66.3 million to the CSU 2008-09 budget. This cut comes on top of a recent one-time $31.3 million reduction and in addition to $215 million in unfunded CSU operational needs in the 2008-09 Budget signed in September. In response to declining financial support from the state, the CSU is considering declaring the CSU impacted as a system to align funded and actual enrollment. The Trustees will discuss the impaction plan tomorrow during the second day of the Board of Trustees meeting.
Because the CSU did not receive the funding consistent with the Governor's Higher Education Compact for 2008-09, the CSU and its labor unions have reopened bargaining over salaries. Previously bargained salaries for all employees presumed a minimal increase in the 2008-09 budget of $312.9 million. CSU unions are requesting implementation of salary increases that would cost at least $100 million annually. The university, however, has not proposed salary cuts but has proposed to maintain salaries at current levels. The CSU will continue bargaining with its unions until reaching agreement.
Next Steps in the Adoption of the 2009-10 State Budget
November/December — Meetings with Governor's office and Department of Finance
January — Governor submits balanced budget to legislature
February — Budget review by Legislative Analyst's Office
March/April — Budget subcommittee meetings,
May — May Revision of initial budget projections
June — Two-House Conference Committee and official deadline for budget adoption.