Contacts: Clara Potes-Fellow, cpotes-fellow@calstate.edu or Claudia Keith, ckeith@calstate.edu, (562) 951-4800

March 8, 2007

Statement by the California State University

The following is a statement by the California State University to clarify misinformation provided today by the faculty union.

Incorrect Statement by the Faculty Union

"Fees do not have to be raised for our salaries. In a $4 billion budget, the university has the money to address the union's proposals, which by the way, are far less than the amount they will extract from students with this heavy fee hike.”

Myth:
“Fees do not have to be raised for our salaries.”
Reality:
The CSU has only two sources of revenue: State General Funds and Student Fees.
$2.7 billion or 67 percent of the CSU budget is spent on compensation for all employees. Faculty salaries alone cost taxpayers and CSU students $1.4 billion.

Myth:
In a $4 billion budget, the university has the money to address the union's proposals, which by the way, are far less than the amount they will extract from students with this heavy fee hike.
Reality:
If the faculty were to receive the salary increase the union is demanding for the life of the contract, it will cost taxpayers an additional $472 million.
Revenues from the 10 percent student fee increase proposed for 2007-08 will equal $97.7 million, with $38 million set aside for student financial aid.

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Last Updated: March 8, 2007

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