Budget Reduction Strategies – Contingency Plan for $250 Million Trigger Budget Cut to the California State University (CSU)


RESOLVED: That the Academic Senate of the California State University (ASCSU) recognize that it is necessary for the CSU Board of Trustees to consider budget reduction strategies to cope with the possible $250 million cut to the CSU budget that may result from the outcome of the November 2012 vote on Proposition 30 (tax increase) and/or to address ongoing structural budget deficits; and be it further

RESOLVED: That, should implementation of these strategies be necessary, the ASCSU recommend that first consideration be given to the following:

      • One-time transfer of funds from continuing and/or extended education
      • Increase in system-wide administrative efficiencies
      • Increase of non-resident tuition fee supplement of 7%, effective Fall 2013
      • "Trigger on trigger": $150 per semester or pro-rated per quarter tuition increase effective January 2013
      • Modifications to the schedule of fees – i.e. graduation incentive fee, course repeat fee,
        and third tier tuition fee
      • One-time resources;

and be it further,

RESOLVED: That the ASCSU strongly oppose the reduction in faculty assigned/release time and also strongly oppose shifting the costs of health care benefits to employees and recommend to the CSU Board of Trustees that a reduction in these areas be implemented only after above-listed strategies have been implemented and all other options – not including cuts in salary, furloughs, and increased employee contributions to retirement and healthcare – are explored and exhausted, and be it further,

RESOLVED: That the ASCSU distribute this resolution to:

      • The CSU Board of Trustees,
      • The CSU Chancellor
      • Campus Presidents,
      • Campus Senate Chairs, and
      • The California Faculty Association (CFA)

    RATIONALE: The ASCSU understands that it is the responsibility of the CSU Board of Trustees to prepare to deal with the possibility of a $250m budget cut to the CSU if Proposition 30 fails in November 2012 and/or to deal with the ongoing structural budget deficit. The ASCSU has taken note of the budget reduction strategies proposed in the Board of Trustees September 2012 agenda, and is concerned that if these strategies are adopted, they are likely to negatively affect the ability of the CSU to carry out its mission. Therefore, the ASCSU considers it important that cost savings from the implementation of these strategies be carefully weighed against the negative impacts they might have on the quality of education, employee morale, and the mission of the CSU.

    The ASCSU is particularly concerned about the reductions in faculty release/assigned time and the shifting of health care costs to employees, and is strongly opposed to both these strategies.

    Faculty members are critical to educating the workforce of California, which is the primary mission and core business of the California State University. Faculty assigned time is used to fulfill many essential tasks outside the classroom including curriculum development, program evaluation and review, research, scholarly, and creative activities, accreditation, etc. In recent years, faculty assigned/release time has been significantly reduced jeopardizing the quality of education and the mission of the university. Further reductions in assigned/release time will have a long-term deleterious effect on the quality of education and the mission of the university.

    In 2009-10, all CSU employees were furloughed for nearly 10% of their salaries. The furloughs, combined with a lack of increases in salary over the past many years, and a significant increase in the cost of living (consumer price index has increased by 11.4% for calendar years 2007 to 2011) have substantively reduced the purchasing power of the employees, and caused employee morale to suffer. Any further reductions in compensation will negatively effect the work environment, the ability to attract and retain quality faculty, and the reputation and mission of the CSU.

Approved - September 14, 2012


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