A Summary of the September 26, 2001, CSU Board of Trustees Teleconference Meeting

Budget Reports Heard

The California State University Board of Trustees heard a report from Richard West, executive vice chancellor and chief financial officer, that the state's slowing economy could affect the California State University's 2002/03 budget.

Meeting by teleconference on September 26 because their September 11-12 meeting was cancelled because of the national tragedy, trustees were told that state agencies had been asked to prepare for permanent budget reductions of up to 10 percent. In response, the CSU has met with the Department of Finance, but at this time, no formal reduction recommendations have been made for the CSU.

Even with the state's slowing economy, CSU's pressure on services is increasing, West said. The CSU continues to experience enrollment demand, and it is estimated that the system is about 2.3 percent above budgeted levels for 2001/02.

The CSU is developing its budget based on the partnership with the governor that calls for specified increases in General Fund money to support enrollment growth, compensation and other programs. "It is important for the CSU to submit a full partnership level budget," West said.

For each of the past seven years, the CSU has received increases in its budget. Despite those increases, West said the CSU has a $716 million cumulative budget gap, which includes money to close the faculty salary gap, fund libraries and other instructional equipment and open new space. Figures presented by West indicate that the system will ask for an increase between $182 million and $258 million for the coming year.

In 2001/02, the CSU's budget increased by $220 million, or 8.2 percent. Trustees will meet October 25 to finalize submission of CSU's 2002/03 budget request to the Department of Finance for inclusion in the governor's budget, which is released in January.

West also presented a recommended 2002/03 lottery budget of $42.8 million with a $5 million reserve.

SDSU'S Imperial Valley Campus to Expand at Brawley

The California State University Board of Trustees has accepted a gift of 200 acres of undeveloped agricultural land from the Alamitos Land Company. The site would be developed as San Diego State University's Imperial Valley Off-Campus Center in the city of Brawley, offering educational opportunities to the citizens of Imperial County. Funding for the facilities at Brawley center will initially be supported from private sources, not from the CSU or San Diego State.

The gift could ease enrollment demands at the Imperial Valley Off-Campus Center at Calexico, which has steadily increased due to the growing population and the demand for higher education. Imperial Valley Campus-Brawley is expected to provide access for students in the northern and central parts of the county. An enrollment needs study has projected the total enrollment for the Imperial Valley Center at Calexico to double by 2010. There were approximately 887 students enrolled at Imperial Valley Center-Calexico in 2000. Calexico is projected to enroll 100-200 students at the Brawley center in 2002.

The off-campus center at Brawley will be administered under the auspices of San Diego State University as an integral part of the Imperial Valley Campus-Calexico, which currently offers eleven baccalaureate degrees and five masters programs, and course work leading to three teaching credentials. Educational facilities at Brawley would primarily focus on agribusiness courses; no new degree programs will be created.

THE TRUSTEES APPROVED:

  • Issuing debt instruments including bonds of the CSU Sacramento Parking Revenue Bond System for Parking Structure II at CSU Sacramento.

  • Issuing debt instruments including revenue bonds for the Sonoma State Student Union Recreation Center, and related matters.

  • Issuing debt instruments including by bonds of the CSU Housing Revenue Bond System for an apartment complex (Phase II) at CSU San Bernardino, and related matters.

  • Amending the 2001/02 Capital Outlay Program, Nonstate Funded to include a fifth-floor addition to the Psychology Building at San Francisco State University and student housing (phase I) at Somona State University.

  • Amending the 2001/02 Capital Outlay Program, State Funded to include a thermal energy storage expansion project at CSU Sacramento.

  • The State and Nonstate Funded Five-Year Capital Improvement Program 2002/03 through 2006/07.

  • Schematic plans for a new science building at CSU Channel Islands, a recreation center at Sonoma State University, and a student housing (phase I) project at Sonoma State University.

The Trustees Heard

  • Chair Larry Gould appoint Debra Farrar as the chair of the search committee for a new president of Humboldt State University. Current President Alistair McCrone is retiring in June 2002. Other trusees on the committee are Bob Foster and Roberta Achtenberg.

  • Chancellor Charles Reed report that fall 2001 enrollment is 2.3 percent above funded levels. Eleven campuses are over-enrolled. He will work with the presidents on handling this issue. "Tidal Wave II is not just coming; it has already washed over our beaches," Reed said.
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Last Updated: 2 October 2001

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