Contact: Claudia Keith, email@example.com, or Paul Browning, firstname.lastname@example.org, (562) 951-4800
CSU Cash Flow Legally Restricted to Specific Uses
Funds Cannot Be Used for Employee Salaries
The following statement can be attributed to Richard West, executive vice chancellor and chief financial officer, California State University
“ The assertion that the faculty union has made regarding the CSU’s $1.2 billion reserve is inaccurate and misleading. The reference is to a net asset number in the most recent CSU financial statements. The dollars referenced are funds associated with dollars that cannot be used for salary purposes for CSU’s general employees and faculty.
“These funds are collected as part of payments for parking, student housing, student unions and include capital construction funds while buildings are under construction. These types of money are not part of the $4 billion CSU budget which is supported by general student fee revenue and the state’s general fund that is provided for instructional and institutional support. These funds are used to secure $2.6 billion in debt associated with construction projects and operating costs. They cannot be used for employee salaries.”
The contract between the CSU and the faculty union was first scheduled to expire on June 30, 2005. It has been extended several times and a contract extension is now in effect until the fact finding report is made public on March 25. The CSU has made a fair offer to the faculty union that provides a 24.87 percent compensation package to be paid over the next three years. The CSU employs approximately 23,000 faculty members of which 10,100 are members of the union.
Last Updated: March 20, 2007