Chancellor's Communication-May 22, 2001


May 22, 2001
TO:         All CSU Employees
FROM:    CSU Chancellor Charles B. Reed
RE:         CSU Update
Greetings to all California State University faculty and staff members. This message is the latest in a series of e-mails aimed at keeping all CSU employees informed about systemwide issues.

I understand that many of you are in the process of closing out the academic year, but I thought it was important for you to receive the latest CSU budget information. I will send the next regular "CSU Update" when the 2001/02 academic year begins this fall.

CSU Budget

Last week, Gov. Davis released the May Revise to his 2001/02 budget for California. This new budget proposal reflects a total of about $3.2 billion worth of cuts to his original January budget proposal.

The governor had to make these cuts for two reasons. Number one, California's slowing economy has caused a drop in the state's tax revenue. Number two, California's energy crisis and its need to buy costly power are causing cash flow problems for the state. The Legislative Analyst's Office is projecting a $4 billion shortfall next year in tax revenue.

Gov. Davis' new 2001/2002 budget proposal for the CSU represents a $233.4 million increase over the current budget approved for 2000/01. At the same time, it is $58 million less than he originally proposed for the CSU's 2001/02 budget in January. In making this reduction, he decreased our partnership funding, which in turn cut the allocation for our compensation pool from 4 percent to 2 percent. In addition, the reduction required the elimination of funds budgeted for other programs such as our workforce preparation and outreach efforts.

We are very disappointed that this budget proposal does not include compensation increases at the level the CSU requested. As I mentioned in earlier messages, the CSU was requesting a 6 percent employee compensation pool for 2001/02 (the same percentage increase that we had asked for and received in 2000/01).

Gov. Davis does propose to continue to fund the CSU's projected growth in student enrollment for next year and its transition to year-round operations. This funding represents an important step forward in our commitment to provide access to the students of California. He also provides $34 million for our campuses to address the increased cost of energy, specifically natural gas.

For more information on the May Revise, please see the budget page of the California Department of Finance:

The governor's budget proposal is now in the hands of California's legislators. The Assembly and Senate will draft and approve a final version of the budget and send it back to Gov. Davis to be signed by July 1. We would like to see the compensation increased during this process. However, there is still a chance that the Legislature will make further cuts to the CSU budget instead of increasing it.

The Board of Trustees and I know that offering competitive compensation helps us to recognize, recruit, and retain high-quality faculty and staff. This in turn allows us to offer a high-quality education for our students. That's why we will continue to work with our state policymakers in the months and years ahead to make improving employee compensation a top priority.

Student/Faculty/Staff Honorees

On the evening before Cesar Chavez Day, the CSU recognized 21 students from around the CSU system who have shown outstanding leadership in community service. We gave them the STARS awards, which stands for Students That Are Recognized For Service. Community service is one of many areas in which our students continue to distinguish themselves. Overall, CSU students performed a total of 33.6 million hours of community service last year.

Last week at the CSU Board of Trustees meeting, we had the honor of presenting the Wang Family Excellence Awards to five outstanding CSU employees. The $20,000 Wang awards, established by CSU Trustee Stanley T. Wang, honor CSU employees who have made exemplary contributions in their academic disciplines and areas of concentration.

This year's winners are Edward EmanuEl, a professor of theater arts at CSU Fresno; Jane Hall, a professor of economics at CSU Fullerton; Valerie Bordeaux, the director of university outreach and school relations at CSU Long Beach; Maria Elena Zavala, a professor of biology at CSU Northridge; and Aubrey Fine, a professor of education at Cal Poly Pomona.

These employees have made extraordinary contributions to the CSU and to their respective fields. Together, they represent just a sampling of the high-quality teaching and learning that is found throughout the CSU.

I invite you to respond to this e-mail with any comments or questions. Although I will be unable to respond to your messages individually, I will post my responses to the most frequently asked questions (from among those sent to me by May 29) at on June 5.

Once again, I thank all of you for what you do for the California State University system.

last updated 22 May 2001