Chancellor's Communication-December 10, 2001


December 10, 2001
TO:         All CSU Employees
FROM:    CSU Chancellor Charles B. Reed
RE:         CSU Update

As we close out this term, I want to once again thank you for the outstanding work that you have done during the last few challenging months. We are a stronger and better institution because of the manner in which you responded to the attacks on our nation and their aftermath. Throughout it all you have stayed focused on achieving our mission: offering opportunity to students of all backgrounds by providing access to high-quality education and helping to prepare California's future workforce. I am grateful for your determination and dedication to this mission.

In my last message, I promised that I would keep you up to date on any new budget developments. Although the state's economic situation is still in flux, the short-term outlook continues to be grim. Just before Thanksgiving, the governor asked the CSU to prepare for a second round of reductions to its total current budget. The new reductions, totaling $10 million, will go beyond the 1% one-time reduction totaling about $25 million that our campuses had been asked to make earlier this fall. The governor's proposed cuts to the 2001/02 budget now total $35 million for all CSU campuses and the Chancellor's Office. Each campus and the Chancellor's Office will absorb the cost proportionately in relation to their adjusted general fund budgets.

The new reductions will be subject to discussion by the state legislature in January. Since many factors could change before and during the legislative session, I have asked our campus presidents to position themselves for maximum flexibility and responsiveness.

I understand that this is a difficult time for all of our campuses, and I thank you for your patience during this period of uncertainty. I want you to know that the CSU trustees, presidents, and our teams in Sacramento and here at the Chancellor's Office in Long Beach will be working hard over the next few months to preserve our budget so that we can maintain the highest quality programs and services for our students, faculty, and staff.

Regarding our bargaining with the California Faculty Association and the California State Employees Association, we remain hopeful that we will reach an agreement soon. The CSU has made an offer to extend the terms of the existing agreement through June 2002 and to provide for a 2 percent GSI increase retroactive to July 1. We would continue bargaining on the terms of future years' agreements, building on the progress that we have already made this year.

Although the CFA has rejected this offer, we continue to work with the CSEA on these terms. Given the tight economic environment -- and recognizing the desire on everyone's part for our faculty and staff to receive their well-deserved compensation increases for this year -- I hope that this offer can serve as a foundation for reaching agreement with both units.

Last, since many of you have expressed a desire to receive more timely news about the CSU, I want to alert you to a new e-mail publication that we have developed called "CSU Leader." This weekly publication is sent out as an electronic list-serve to our trustees and campus and alumni leaders, as well as to anyone who wants up-to-date information and news about the CSU. To view current and past issues of CSU Leader, and for information on how to subscribe, please see

I hope that this publication will give you the opportunity to stay better informed about CSU issues. I will continue to send periodic e-mail updates to all employees again beginning in January.

Let me close this message by thanking you for all you have done over the last few months and throughout your career at the California State University. I wish all of you and your families a very happy and safe holiday and many blessings in the new year.


Chancellor Charles B. Reed

last updated December 10, 2001