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CSU Board Increases Student Fees As Part of 2007-08 Budget
Still Among the Lowest in the Country
(March 14, 2007) - The California State University Board of Trustees today voted to increase the State University Fee for the 2007-08 academic year by 10 percent to support full funding of the 2007-08 CSU budget approved by the board at its November 2006 meeting. The increase of $252 per year for undergraduate students will still result in CSU having the lowest fees among its comparison institutions across the country.
In 2005, the CSU Board of Trustees adopted a five-year plan to make salaries for all employees more competitive with comparable institutions. The plan calls for salaries to be increased incrementally each year over the next five years. Revenues to support the salary lag plan include state General Fund and student fees, with fee increases to support the overall CSU budget to be "gradual, moderate and predictable."
Student fee revenues constitute approximately 25 percent of the overall CSU budget and are critical to support faculty and staff compensation, increased health care and energy costs, student services, and to provide financial aid to CSU's neediest students. During the state's budget crisis, the CSU's budget was cut by more than $500 million, and as a result, fees significantly increased to offset a portion of the state's General Fund reduction. Student fees increased by 14 percent in 2004-05 and 8 percent in 2005-06. However, there was no fee increase in the current year due to an additional $54.4 million provided by the Governor to eliminate the proposed fee increase of 8 percent.
"Student fees are part of the overall revenue mix that is needed to sustain our outstanding university system," said CSU Board of Trustees Chair Roberta Achtenberg. "The CSU receives its revenues basically from state General Funds and fee revenues. Currently, employee compensation for all employees accounts for 74 percent of the expenditure budget. The trustees are committed to bringing all salaries up to market rate in order to remain competitive. We cannot move forward on this effort without either a larger portion of the state General Fund or an increase in student fees."
To eliminate the fee increase, the legislature and Governor would need to provide an additional $65.2 million of state general fund revenue. If any portion of the fees are "bought out," the CSU Board of Trustees would rescind that portion of the fee increase.
The Governor's budget assumes $174.5 million from the state General Fund and $123 million in fee revenue, based on a 10 percent increase in student fees and fee revenue associated with a 2.5 percent enrollment growth. Of the $123 million associated with fee revenue, $97.7 million is generated from the10 percent fee increase with approximately one-third or $38 million set aside for student financial aid. Approximately 146,000 out of 417,000 CSU students will receive financial aid to cover their fees and will not pay the fee increase.
With the 10 percent increase, undergraduate fees at the CSU will increase by $252 per year to $2,772, and including the $679 average campus-based fees students currently pay, the total undergraduate fee will be $3,451 per year. Fees for qualified credential programs will increase by $294 per year to $3,216 with graduate fees rising by $312 per year to $3,414. However, fees at the CSU continue to be the lowest among public comparison institutions. For example, during 2006-07, the next lowest student fee level at the University of Nevada at Reno was $3,864 almost $500 more than the CSU's fee of $3,199 for the same academic year.
2006-07 CSU Comparison Institution
Academic Year Resident Undergraduate, Student Fee Levels
(Comparison data for 2007-08 not yet available)
About California State University
The California State University is the largest system of senior higher education in the country, with 23 campuses, approximately 417,000 students and 46,000 faculty and staff. Since the system was created in 1961, it has awarded nearly 2.5 million degrees, about 84,000 annually. The CSU is renowned for their 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 that is working for California. See www.calstate.edu
Last Updated: March 14, 2007