GOVERNOR PROPOSES 12% INCREASE IN CSU BUDGET
Governor Gray Davis proposed a $267.9 million or nearly 12 percent increase
in the 2001/02 general fund budget of the California State University
today (Jan. 10). The increase, when combined with the $23.6 million in
projected fee revenue from enrollment growth, would bring the total CSU
base state budget to about $3.5 billion.
"Time and time again the Governor has demonstrated his strong commitment
to higher education. This budget is another example of that," said CSU
Chancellor Charles B. Reed. "State support for the California State University
budget has increased by nearly $834 million over the last three years,
and this budget would continue that remarkable investment in the California
State University's future."
The budget focuses on four key areas: ensuring student access at a time
of rapidly increasing enrollment; maintaining a high quality education,
in part through recruiting and retaining the best faculty and staff; improving
student academic preparation through K-12 collaborations; and contributing
to California's economy and workforce development by investing in key
The Governor proposed a $62.3 million increase for an additional 8,760
full-time equivalent students predicted to enroll in 2001/02. An additional
$16 million has been allocated to support year-round operations for 3,138
full-time equivalent students to attend in the summer.
The Governor also proposed an increase of $81.5 million for a 4 percent
compensation pool for all CSU employees to keep salaries competitive and
reward outstanding performance. The CSU has also requested an additional
2 percent employee compensation increase, and will work with the state
to secure those funds by the May budget revise.
The 2001-02 budget is consistent with the Governor's Higher Education
Partnership Agreement, which brings stable, long-term funding to the CSU
in exchange for a commitment by the CSU to be accountable through specific
Budget items within the partnership agreement include:
- $10 million for academic programs important to California's workforce
and economy such as agriculture, engineering, computer science and nursing.
- $8 million to expand CSU K-12 academic preparation from 150 to 300
targeted high schools and help reduce the need for remedial education.
- $10 million to complete the CSU technology infrastructure build-out.
- $5 million to significantly increase access to networking services
for students, faculty and staff on each campus and to expand CSU electronic
- $4 million for libraries.
- $4 million for deferred plant maintenance.
In addition, funding in the Governor's budget beyond the partnership
- $3 million for the final investment in new campus costs at CSU Channel
- $17.5 million for the Governor's Teacher Fellowship Program, which
provides $20,000 fellowships for individuals to attend teacher preparation
programs and then teach in underperforming schools after attaining teaching
- $18.5 million for the Governor's Education Technology Professional
Development Program, which will train 12,500 teachers in the use of
technology in the classroom and curriculum that focuses on improving
the quality of teacher instruction and the level of student learning.
- $20 million in one-time funding for long-term critical instructional
- $650,000 to initiate a Central Valley Economic Incubator at CSU Fresno
to serve high technology firms having engineering and computer science
- $1 million for the Diagnostic Writing Service (DWS) to help students
and teachers identify students' writing and reading deficiencies and
allow teachers to develop a program to strengthen students' skills necessary
to succeed in college.
- $3 million for three areas of applied research activities:
- $1 million for the Agricultural Research Initiative, a collaborative
partnership among CSU agriculture campuses that supports high-impact
applied agricultural and natural resources research, development,
and technology transfer activities.
- $1 million for the CSU Program for Education and Research in Biotechnology
(CSUPERB), a broad-based multi-campus program designed to promote
critical biotechnology growth needs in the state.
- $1 million for marine studies as matching funds in collaboration
with a federal research initiative to increase CSU applied research
activities in this field.
The CSU will continue to work with the state to fund the following items
that were included in the Trustees' budget request but not yet in the
- $40.8 million for an additional two percent faculty and staff salary
increase above the partnership to continue to reduce the faculty salary
- $12 million to improve student services by providing additional academic
counseling and encouraging students to stay on course toward degree
- $5 million to help create an employee housing assistance program -
a key issue in attracting high-quality faculty and staff.
- $3 million for joint use of facilities and collaborative programs
among the CSU, University of California and California Community Colleges
to better use existing resources.
- $3.1 million to fund the entire intersegmental request for the Diagnostic
Writing Service to cover exam costs for two-thirds of California's high
The 2000/01 budget request does not include any student fee increases.
The annual CSU fee of $1,428 has not increased since 1994 and is among
the lowest in the nation.
NOTE: The increase in the CSU budget announced by the Governor and
the CSU vary slightly because different base budgets are used due to differences
in accounting practices for carry forward funds, retirement benefits,
one-time funds, and fee revenues.
10 January 2001
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Last Updated: January 2001
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