California State University 2016-17 Support Budget Preliminary Plan

AS-3229-15/FGA (Rev)

RESOLVED: That the Academic Senate of the California State University (ASCSU) commend the California State University (CSU) for its preliminary support budget plan for 2016-17, which recognizes that CSU fiscal needs are significantly greater than those in the governor’s multi-year funding plan; and be it further

RESOLVED: That the ASCSU support the 3% proposed increase for funded enrollment growth; and be it further

RESOLVED: That the ASCSU strongly urge the Board of Trustees (BOT) to amend the proposed expenditure plan to provide a compensation pool increase for all employees substantially beyond the proposed two percent (2%) indicated; and be it finally

RESOLVED: That the ASCSU distribute this resolution to Governor Edmund G. Brown Jr., the CSU Board of Trustees, CSU Chancellor, CSU campus Presidents, CSU campus Senate Chairs, CSU campus Chief Financial Officers, CSU Provosts/Vice Presidents of Academic Affairs, California Faculty Association (CFA), California State Student Association (CSSA), and the Emeritus and Retired Faculty Association (ERFA).

RATIONALE: The preliminary support budget plan reflects the CSU’s key funding needs in the areas of mandatory costs, enrollment growth, student success and completion, and facilities/infrastructure.

The ASCSU strongly supports proposing additional expenditures for funded student enrollment growth. Too many eligible students are denied access to higher education because the university did not have sufficient financial resources from the state to admit them. For example, the Chancellor’s Office reports that in 2010 CSU turned away 28,803 eligible students (
Enrollment pdf). Furthermore, a recent report from the Public Policy Institute of California estimates that in 2030 “the state will fall about 1.1 million college graduates short of economic demand if current trends persist.” To close the “workforce skills gap,” the authors recommend increasing access to the state’s four-year institutions.  In addition, recent findings indicate that spending on instruction has a higher salary return for graduates and increases the probability of full-time employment, particularly for more disadvantaged students.

It is well known in the private sector that an organization must offer competitive compensation in order to recruit and retain the very best talent. With respect to employee compensation, the analysis presented by Chancellor White and Vice Chancellor for Human Resources Lori Lamb at the September 8-9, 2015 meeting of the Board of Trustees provides an overview of the compensation challenges facing the CSU.  According to their report (page 1 of 13), “Despite salary increases over the past two-three years, the gap between CSU salaries and other relevant market means persists for several employee groups.”  Furthermore, they report that “Longer-serving employees are often further behind the market than recently-hired employees” and that “Employees at the larger campuses are often further behind the market than those at smaller campuses.” As they conclude on page 11, “The issues in salary we have identified cannot be addressed adequately without significant increases in resources available for salary…”.  The two percent compensation pools in 2015-16 and 2016-17 are insufficient, particularly in light of the multiple years when longer-serving employees had no cost of living increases and a one year mandatory furlough resulting in a 9-10 percent pay reduction.

    Approved   November  6, 2015



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