The California State University Employee Update
Wednesday, November 18, 2009

Trustees Approve Budget Proposal Focused on "Recovery, Reinvestment"
The California State University Board of Trustees today approved a $3.2 billion budget proposal for 2010-11 that includes an $884 million state General Fund increase aimed at "recovering and reinvesting" funding in the CSU. The budget would increase the system's General Fund support to $3.2 billion from its current reduced level of $2.3 billion.

The CSU's state support has been cut by $625 million, or 21 percent, over the last two years. The CSU is asking the state to restore funding for one-time cuts imposed in the current 2009-10 budget totaling $305 million. The university is also asking for the revenues outlined in the Higher Education Compact of $296 million that would provide for mandatory cost increases and compensation increases, and improvements in student services and instruction. This amount also includes an estimated $111 million needed to "buy out" a 10 percent student fee increase (after one-third is set aside for financial aid).

The proposal also calls for $283 million of "Core Compact Recovery" that would have funded the CSU's collective bargaining agreements for the past two years.

"This is a very ambitious budget in very challenging times," said CSU Chancellor Charles B. Reed. "We are asking the state to not only restore funding of one-time cuts that were imposed for this year, but to also provide the needed revenue for mandatory costs and compensation increases, as well as fund our collective bargaining agreements for the past two years. This budget reflects the true fiscal needs of the CSU."

The CSU has been managing a record $564 million cut to its current budget by reducing enrollment, increasing student fees, and furloughing employees.

The CSU will submit the 2010-11 budget plan to the State Department of Finance and to the governor and the legislature. More information.

CSU Board Chair Appointed Ambassador to Australia
Jeffrey Bleich, the chair of the CSU's Board of Trustees, has been appointed Ambassador to Australia by President Obama and has resigned from the board. Vice Chair Herbert L. Carter has assumed the chair's role and the board will select a new vice chair at its January meeting.

Calling it one of the most "honorable and distinguished positions" he has held, Bleich acknowledged his colleagues and CSU Chancellor Charles B. Reed as "champions of education" and called upon all members of the CSU to stand together during extraordinarily challenging times.

Bleich was appointed a CSU Trustee in 2004 and has served as chair since 2008. He is a partner in the law firm Munger Tolles & Olson and has been on leave from his position to serve as Special Counsel to President Obama. Bleich's reflections on the value of California's public higher education system and how it has impacted him personally and professionally are available here.