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Public Affairs

Governor, CSU and UC Agree on Partnership to Provide Stable Funding, Investment In Priorities and Accountability

Gov. Gray Davis, the California State University and the University of California, have reached a partnership agreement that will provide consistent, long-term funding, additional investment in priority areas such as teaching preparation, and accountability measures for California's two four-year public higher education institutions.

"This partnership again demonstrates the Governor's emphasis on investing in education and reaffirms a commitment to accountability by the California State University and the University of California," said CSU Chancellor Charles B. Reed. "Consistent, long-term funding allows the CSU and its students to plan better financially. In addition, the partnership invests in the state's most important educational challenges - improving the quality and quantity of California's teachers and ensuring access to high quality education for all qualified students."

The four-year partnership agreement, which includes specific commitments by the state and specific accountability measures by the CSU and UC, takes effect immediately and will continue at least through 2002/03. It includes the following:

State Funding Commitments

A four percent annual increase to the CSU and UC general fund base. The CSU general fund support budget for 1999/00 is nearly $2.2 billion, and when student fees and reimbursements are included it exceeds $3 billion.

Funding for enrollment growth, which is estimated at about three percent annually. The CSU is experiencing a surge that is projected to increase its enrollment from about 360,000 students now to nearly one half million by 2010.

An additional one percent budget increase to eliminate the annual budgetary shortfalls in ongoing building maintenance, instructional equipment and technology and libraries. Contingent on the state's financial position, one-time funding also would be provided for these areas and for capital outlay.

Funds for new initiatives such as off campus centers or new campuses, research initiatives, outreach to improve K-12 schools and the transition to year-round operations.

$210 million consistent with Proposition 1A, which was passed by voters in fall 1998, and includes about $832 million for the CSU to support capital outlay needs from 1998/99 through 2001/02. The partnership also provides for continuing capital outlay funding beginning in 2002/03 through either a new bond or other state funds.

Annual review of the partnership goals, with performance data linked to continued funding.

CSU Partnership Commitments

Increasing student access through partnering with K-12 schools to improve student performance and reduce the need for remedial education for incoming freshmen.

Ensuring no fee increase larger than the increase in state per-capita income. The state would have the option of "buying out" the fee increases, as it has in recent years, with general fund money. The CSU undergraduate fee of $1,428, one of the nation's lowest, has not increased since 1994 and has decreased by ten percent over the last two years.

Increasing the quantity and quality of California's teachers -- especially in teaching mathematics, science, English, and reading, and in the use of technology -- and reporting annually on progress.

Simplifying the transfer process from the community colleges to the CSU through initiatives such as ensuring that students will not lose credits or repeat coursework by offering comparable courses that are therefore more easily transferable. The CSU and community colleges earlier this month signed an agreement outlining several initiatives to improve the transfer process.

Investing in the deferred maintenance backlog, reporting on progress in eliminating deficiencies in libraries and instructional equipment, and increasing technology access for students and faculty to improve instructional delivery and student performance.

Improving efficiency through year-round operations, reviews to consolidate and simplify CSU program offerings, and ensuring all CSU students have the opportunity to complete degrees in four years.

Offering competitive faculty salaries with merit-based pay to reward the most outstanding faculty.

Increasing opportunities for all students to experience community service or service learning. Currently, more than 135,000 CSU students volunteer about 33.6 million hours annually.

May 23, 2000