A Summary of the May 13-14, 2003, Board of Trustees Meeting

May 15, 2003

CSU Trustees Defer Vote on Fee Increases

The CSU Board of Trustees deferred action on a fee increase for the 414,000 student university system until there is a firmer indication of the final budget reductions the university will absorb in the upcoming academic year.
Trustees, however, thoroughly discussed the concept of fee increases and heard testimony from several student leaders opposing any fee increase at this time.
Art Pimentel, chair of the California State Student Association, along with 11 other students representing several CSU campuses, formally asked the trustees to consider other ways to balance the budget.
Trustees and Chancellor’s Office staff responded by detailing cuts already made and also explained that the fee increase will provide classes for students next fall.
Outside the Trustees meeting room about 200 students protested at a rally.
CSU Chancellor Charles B. Reed recommended the board defer action and told the Trustees that when he makes a recommendation regarding fee increases, it will be based on three important priorities: (1) serving as many students as possible; (2) protecting the students currently in the system; and (3) protecting as many faculty and staff as possible from layoffs.
Before the action was deferred, the Trustees were planning to vote on a 25 percent fee increase for undergraduate students and 20 percent increase for graduate students. Full-time undergraduate fees would have been increased $396 to $1,968 annually and full-time graduate student fees would have been increased $348 to $2,082 annually.
This level of fee increases was recommended by Gov. Davis in his January budget proposal for fiscal year 2003-2004.
CSU student fees currently are among the lowest in the country. Until an increase in December 2002, fees had not been raised for eight years and, in fact, had decreased 10 percent.

May Revision of the State Budget Spares CSU From Additional Cuts

Patrick Lenz, CSU’s assistant vice chancellor for budget development, told the trustees that the CSU did not receive additional cuts, as initially feared, in the May Revise presented Wednesday by Gov. Davis.
The May Revision maintains the net budget reduction at $260.7 million, or 10 percent, as proposed by Davis in January. The CSU’s General Fund budget is $2.6 billion.
“But we are not out of the woods,” said Richard West, CSU’s executive vice chancellor and chief financial officer. “We don’t have a budget yet.”
West said that a $69.5 million additional cut proposed by the state legislature is still a real possibility.
CSU Chancellor Charles B. Reed said he was pleased that the governor did not cut the CSU budget any more. “If we can work with the governor’s budget, then we have a plan,” he said.
State legislators will take the governor’s revisions and discuss them in various committees. The CSU will work with legislators, the Department of Finance, and the governor’s office to prevent any more cuts to CSU funding.

Systemwide Enrollment Ceiling Removed

The Board of Trustees approved a resolution removing the system’s maximum student enrollment ceiling of 25,000 full-time equivalent students.
The measure allows campuses that are at or near the limit to set new enrollment ceilings and plan to accommodate additional students.
The policy responds to enrollment projections that indicate the CSU will have to accommodate 107,000 additional students by 2011. Current projections by the Department of Finance show that by fall 2011, CSU enrollment will have grown to 513,550 headcount students, an increase of 26 percent over the 406,684 enrolled in fall 2002.
When implemented, the measure will make it easier for campuses operating at capacity to accommodate more students and improve access to the CSU.
Methods to meet increased enrollment include the expansion of summer term enrollments; scheduling classes at off-peak times, such as evenings, Fridays, and weekends; combining the use of campus lecture halls, classrooms or laboratories with instruction through the Internet; development of joint-use facilities with community colleges; and passage of bond ballot measures that raise funds to build additional facilities on existing campuses.

Trustees Endorse 2004 Education Bond Act

Trustees approved a resolution expressing support for the second part of the 2002-2004 Education Bond Act, which will appear on either the March 2004 primary or the November 2004 general election ballot.
The first part, known as Proposition 47, was approved by voters in November 2002 and provided $13.05 billion in state general obligation bonds for public kindergarten to university education facilities. The CSU received $496 million.
The second part, if approved by voters, will provide $12.3 billion. Public K-12 schools would receive $10 billion and higher education would receive $2.3 billion.
The CSU would receive $690 million.

Presidents’ Commission on Teacher Education

Trustees adopted 10 recommendations proposed by the CSU Presidents’ Commission on Teacher Education to better prepare middle and high school teachers.
The recommendations focused on content standards, the structure of teacher preparation programs, and recruitment and retention. Individual recommendations included promoting future teacher programs, aligning subjects with state and national content standards, requiring tutoring and community service as part of the field experience, and the introduction of university-wide recruiting of teacher candidates in shortage fields.

The Trustees Approved:

· Amending the 2002/2003 Capital Outlay Program, Nonstate Funded to include five projects: CSU Long Beach food service facility remodel; CSU Northridge Parking and Public Safety Building construction; CSU Sacramento Parking Structure III construction; CSU San Bernardino Palm Desert Campus parking lot construction; and Sonoma State University student Housing (Beaujolais Village) construction.
· Revising the Campus Master Plan for CSU Sacramento to incorporate relocating Parking Structure III, the bookstore, and the Amphitheater; reconfiguring the perimeter road; and providing for additional housing, a library addition and a new sports support building.
· Approving schematic plans for seven projects: CSU Hayward Business and Technology Building; Cal State LA Parking Structure III; CSU Northridge Parking Structure and Parking and Public Safety Building; Cal Poly Pomona Red Cross Regional Headquarters; CSU San Bernardino Student Recreation Center; CSU Stanislaus replacement Science Building.
· Accepting the 2003/2004 Legislative Report No. 3.
· Approving a schedule of Board of Trustees’ Meetings in 2004.
· Setting compensation for new presidents at Cal Poly Pomona and CSU Sacramento as well as compensation for the interim presidents at San Jose State University, Cal State San Marcos, and CSU Chico.
· Naming the Business and Technology Center at CSU Hayward, the Wayne and Gladys Valley Business and Technology Center, whose foundation has pledged $5 million toward the capital costs of the building.
· Naming the Student Union Facility at CSU San Bernardino, the Santos Manuel Student Union in recognition of the $3 million donation from the Santos Manuel Band of Mission Indians. The funds will be used for scholarships, intern programs, and support for cross-cultural programs.
· Approving the issuing of CSU systemwide revenue bonds and related debt instruments for parking structures at CSU Fullerton and Cal State LA.
· Approving the concept of a public-private partnership between CSU San Bernardino and American Campus Titan, LLC, to develop a student housing project on privately owned land adjacent to the campus, and authorizing the chancellor and the campus to enter into the facilitating agreements.
· Approving the concept of a public-private partnership between CSU Fresno and CSU Fresno Association to create a mixed-used development on a parcel of university land formerly in agricultural production, and authorizing the chancellor and the campus to enter into the facilitating agreements.
· Conferring the title President Emeritus on departing San Jose State University President Robert L. Caret.
· Election of Debra Farar as Chair and Murray Galinson as Vice Chair for 2003-2004.
· Election of members to the Standing Committees for 2003-04.
· Election of Ralph Pesqueira to the California Postsecondary Education Commission, with Kyriakos Tsakopoulos as alternative.

The Trustees Also Heard:

· A status report on the 2003/2004 State Funded Capital Outlay Program.
· An update on University Advancement activities.
· A status report on current and follow-up Internal Audit Assignments.
· A status report on the 2003/2004 Support Budget.

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Last Updated: 15 May 2003

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