CSU Budget at Risk of Deeper Cuts

(April 18, 2003) California State University Chancellor Charles B. Reed told the CSU Board of Trustees' Committee on Finance on Thursday that if the university system has to take deeper budget cuts, it would be forced to either implement additional fee increases or cut student access to the CSU.

Reed's comment followed a presentation by Richard West, CSU executive vice chancellor and chief financial officer, in which he said that early projections about the state's revenue collections seem to indicate that the total state deficit will be greater than the $35 billion originally estimated in the governor's January budget proposal.

The CSU is awaiting the Department of Finance's budget revision of May 14, which will give the CSU more information about the state deficit and its impact on the university budget.

Under the governor's January budget proposal, the CSU would be funded for a 5 percent enrollment growth and would receive additional 2 percent to fund continuing overenrollment at the CSU. The governor's proposal also assumed CSU student fee increases of 25 percent for undergraduates and 20 percent for graduates. However, when these increases are combined with the $447.7 in reductions and unfunded costs, the CSU faces a net 10 percent, or $260 million reduction to its budget.

Given the budget difficulties this year, the CSU Board of Trustees' Committee on Finance is meeting monthly, instead of the usual bi-monthly meeting, to review the status of budget deliberations in Sacramento. In addition, the CSU Systemwide Budget Advisory Committee is meeting more frequently. This committee, comprised of students, faculty, campus presidents and labor representatives, gives advice to the chancellor on priorities for the CSU budget.

The California State University is the largest system of senior higher education in the country, with 23 campuses, 407,000 students and 45,000 faculty and staff. Since the system was created in 1961, it has awarded 2 million degrees. The CSU is renowned for the quality of its teaching and for the job-ready graduates it produces. Its mission is to provide high-quality, affordable education to meet the ever- changing needs of the people of California. With its commitment to excellence, diversity and innovation, the CSU is the university system that is working for California. See www.calstate.edu.

Contact: Clara Potes-Fellow (562) 951-4806, cpotes-fellow@calstate.edu

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Last Updated: 18 April 2003

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