Public Affairs

GOVERNOR PROPOSES A 10 PERCENT INCREASE IN CSU BUDGET

Budget Focuses on Access for Students and Compensation for Faculty and Staff

Governor Gray Davis proposed a $226 million or 10 percent increase in the 2000/01 general fund budget of the California State University today (Jan. 10). The increase, when combined with the $18.3 million in projected fee revenue from enrollment growth, would bring the total CSU base budget to $3.2 billion.

"We are grateful that the Governor has consistently made education his top priority, and this budget is a reflection of that," said CSU Chancellor Charles B. Reed. "First and foremost, this budget addresses access for California's qualified students, and therefore is a wise investment in the state's future. It also addresses access in a broad way that includes issues such as better use of technology, off-campus centers, and maintenance and expansion of facilities"

The top two priorities in the budget request are access for students and compensation for employees. The California Postsecondary Education Commission (CPEC) projections indicate that CSU enrollment will increase by 130,000 undergraduate students - or 37 percent - over the next decade. The CSU already has grown by 40,000 students since 1995, and projections indicate a 4.5 percent increase in full-time equivalent enrollment next year. The Governor proposed a $73.1 million general fund increase for those additional 12,577 full-time equivalent students predicted to enroll in 2000/01.

The Governor also proposed an increase of $94.3 million for a 5 percent compensation pool for all CSU employees. The distribution of the 5 percent pool will be determined through collective bargaining.

The budget also includes:
$18 million for technology and libraries;
$12.9 million for 1999/00 collective bargaining agreement costs;
$5.7 million for about 1 million square feet of new building space;
$2.3 million for continuing start-up costs at CSU Monterey Bay;
$2.8 million for the deferred maintenance backlog;
$380,000 for the Coachella Valley Off-Campus Center at CSU San Bernardino.

The budget includes two Governor's initiatives totaling $12.5 million:
$9 million for a teacher recruitment campaign for CalTeach, a one stop information and recruitment center for individuals interested in a teaching career;
$3.5 million for Governor's Teaching Fellowships.

The Governor's budget at this time does not include the $10 million CSU requested for start-up costs at CSU Channel Islands. The Governor said he is committed to providing additional funding for CSUCI, but is urging the CSU to first address the long-term needs of the Multi-Campus Regional Center at Stockton. Chancellor Reed said the CSU will continue to work with the Governor to address any concerns on both campuses.

A key component of the budget agreed to by the Governor is the Higher Education Partnership Agreement, which would provide stabilized funding over several years. The partnership between the Governor and the CSU is based on a revenue-driven budget and includes both a 5 percent annual increase for basic operations and a 1 percent growth for long-term budget costs such as library materials, technology and deferred maintenance.

"The Higher Education Partnership Agreement is a moral commitment to higher education. It includes continued accountability measures by the CSU and allows for state flexibility and campus autonomy," said Chancellor Reed. "Consistent, long-term funding helps the CSU, students and parents to plan better financially.

The 2000/01 budget request does not include any student fee increases. The CSU has not increased nonresident fees since 1991, and has not increased resident fees since 1994. In fact, the state university fee for undergraduate students has decreased by ten percent over the past two years to $1,428 per year.

The CSU budget request now will be forwarded to the Legislature.

January 10, 2000