A Summary of the November 16-17, 2004, Board of Trustees Meeting

Contact: Clara Potes-Fellow, cpotes-fellow@calstate.edu, 562-951-4800

The CSU Impacts All of California

The CSU Board of Trustees was presented with the key findings of the recently completed study—Working for California: The Impact of the California State University. Conducted by ICF Consulting, the study quantifies the enormous impact of the 23 campuses on the state and their regions. The full report, overview, and a highlights sheet are available online at www.calstate.edu.

“Californians undervalue the vital importance of the CSU system and its campuses, so this report is a key way to identify the critical role of the California State University. The CSU directly or indirectly impacts everyone in the state, and we add value to everyone’s lives,” said CSU Chancellor Charles B. Reed. “If it weren’t for the CSU, California simply would not enjoy the level of success that it has today.”

According to the study, the immediate impact of CSU-related expenditures creates $13.6 billion annually in economic activity, supports 207,000 California jobs and generates $760 million in taxes. For every $1 the state invests in the California State University system ($3.09 billion in 2002/03), CSU-related expenditures generate $4.41 in spending.

“This is a tremendous report that demonstrates the contributions of the California State University," said Trustee Chair Murray Galinson.

"Two words about this report: pride and hope," said student Trustee Eric Guerra. "As a student, this kind of information gives me pride ... the hope is that elected officials see this and feel pride and take CSU seriously."

It is estimated that the 1.7 million CSU alumni living and working in California earn $89 billion in income, $25 billion of which is directly attributable to their degrees. If the enhanced earnings of its graduates are factored in, the total effect of the state’s investment in the CSU climbs steeply, so that the annual spending impact rises from $4.41 to $17 for each $1 invested.

The combined total annual economic impact of CSU expenditures, the enhanced earnings of its graduates, and the ripple effect of both generates a $53 billion spending impact on the state, supports 527,000 jobs, and creates $3.11 billion in tax revenue for state and local governments—more than is provided to the CSU in direct annual state support. The CSU in effect pays for itself.

By increasing its skilled workforce, CSU programs directly serve the knowledge-based industries that drive California’s economy. For example, the CSU confers half of all the bachelor’s degrees and a third of the master’s degrees granted in the state. It is the key educator in business, agriculture, communications, computer, electronic engineering, teachers, criminal justice workers, social workers and public administrators.

Further, the CSU is opening doors and reaching out to new populations, touching many who are the first in their families to seek a university education. Reflecting California’s increasing diverse population, the CSU confers 58 percent of the bachelor’s degrees earned by Latinos, 52 percent of these degrees earned by African Americans, and 39 percent of these degrees earned by Asian/Pacific Islanders.

The study also looks at the benefits California receives as a result of the research and innovation generated by its 23 campuses, sporting events, public lectures, art exhibitions, libraries, museums, music, film, and theatre productions.

In addition, the study factors in 33 million hours per year that CSU students contribute to community and service learning.

Annual Student Fee Report

Trustees heard the annual presentation on CSU and campus student fees as well as related fee comparison information.

In 2004/05, the annual state university fee for full time undergraduates rose 14 percent to $2,334, while campus-based annual fees rose 10.7 percent, or $56 to $582, bringing the systemwide average cost to $2,916. CSU graduate fees average $3,402.

The CSU, however, remains the lowest-cost university in relationship to its comparison institutions nationwide, with the CSU’s undergraduate and graduate fees easily besting the comparison average costs of $5,656 and $7,663, respectively.

Newest Accountability Report Issued

Trustees discussed the third biennial systemwide accountability report. The report is an outgrowth of the CSU’s systemwide planning framework known as Cornerstones, which was adopted in 1998. The report looks at progress in nine performance areas: quality of baccalaureate degree programs; access to the CSU; progression to the degree; persistence and graduation; areas of special state need; relations with K-12 and fully prepared new freshmen; remediation; facilities utilization; and university advancement. Key highlights of the report include

  • CSU has been admitting more and more eligible students as first-time freshmen and upper division transfers. In 2002-03 the CSU admitted 185,000 applicants in both categories combined.
  • The first-year retention rate of CSU is above the rate of comparable institutions serving the same types of students. First-time freshmen retention is at 79 percent and community college transfers retention is at 84 percent.
  • There are no notable differences in the number of units completed in the upper division among students who transferred from a community college and those who started as first-time freshmen.
  • Because many students are part-time, the CSU does not expect high percentages of students to complete the degree in four years or five years. The CSU monitors whether they are on a pace to complete the degree in 4, 5, 6 or more than 6 years. About 45 percent of first-time freshmen graduate within six years from the CSU campus that they entered in fall 1997. CSU estimates that 55 percent of all first-time freshmen will eventually graduate from the campus they entered.
  • In 2002-2003, the CSU prepared 12,798 teachers who obtained teaching credentials, surpassing the goal of 11,456 set for that year.
  • The number of students served under the Collaborative Academic Preparation Initiative (CAPI) increased to 588,784 in 2002-03, the last year in which CAPI operated.
  • The percentage of first-time freshmen who are prepared to take college-level English and mathematics has not improved significantly. A new Early Assessment Program given in the 11th grade has been established to identify and correct English and math deficiencies before students get to college.

Hayward Campus Name Change

The board heard a discussion on a proposal to change the name of California State University, Hayward to California State University, East Bay. CSU trustees have the authority to select and change the name of any CSU campus. CSU Hayward President Norma Rees said that the proposed new name would provide the campus with the ability to reach full regional standing. The proposal will be voted at the January 2005 meeting. Several individuals spoke before the board on both sides of the issue.

The Trustees Also Approved:

  • Naming the Warrior Arena and playing fields at CSU Stanislaus the DreamLife Arena and the DreamLife Athletics Complex, respectively, in recognition of a $1 million commitment by Tony Daniloo, president/CEO of DreamLife Financial, a mortgage company in the Central Valley.
  • Approving the issuance of CSU Trustee systemwide revenue bonds to permit the purchase of privately developed student housing across from the Cal State San Bernardino campus.
  • Extending the public/private partnership of CSU Dominguez Hills and the Anschutz Southern California Sports Complex, LLC to provide for construction of a conference center, hotel, athletics offices/training center, a field house/training center for indoor sports, and dormitory facility for youth athletes.
  • Approving the issuance of CSU Trustee systemwide revenue bonds for three projects: Cal State Fullerton parking structure; CSU Dominguez Hills Student Union Addition/Remodel; and Cal State L.A. University Auxiliary Services Golden Eagle Facility.
  • Amending the 2004/2005 Capital Outlay Program, Nonstate Funded to include five projects: CSU Dominguez Hills’ California Academy of Mathematics and Science, Phase II, to provide additional classrooms/labs, food service facilities, a dance/art studio, and tennis pavilion at CSU Dominguez Hills; a replacement Student Union at Cal State L.A.; the purchase of student housing at Cal State San Bernardino; and bleacher expansion and infrastructure improvements at the Alex G. Spanos Stadium at Cal Poly San Luis Obispo.
  • Approving schematic plans for a Cal State Fullerton parking structure and improvements at Cal Poly San Luis Obispo’s Spanos Stadium.
  • Certifying the final EIR and approving the campus master plan revision to change the enrollment ceiling at Humboldt State University.
  • Certifying the final EIR and approving the campus master plan revision to change the enrollment ceiling at CSU Monterey Bay.
  • Approving the campus master plan revision at San Francisco State to incorporate the Villas Parkmerced property into the campus.
  • Accepting the 2004/2005 Legislative Report No. 12

The Board of Trustees also reappointed Donald Wallace as a member to the CSU Headquarters Building Authority.

The Trustees Also Heard:

  • Progress Report #2 on Facilitating Graduation, which examines CSU campus achievements in meeting the Graduation Task Force recommendations.
  • A status report on current and follow-up Internal Audit assignments.
  • A report on construction auditing in the CSU 2003/04.
  • A report on the CSU Quality Improvement Program.

The Board of Trustees also heard CSU Alumni Council, California State Student Association, and California Postsecondary Education Commission reports.

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Last Updated: November 18, 2004

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