Contact: Claudia Keith, ckeith@calstate.edu
(562) 951-4800

***UPDATE***
CSU Works to Ensure Employees Receive Paychecks

CSU will look for ways to help ease impact on state general fund. Action will not affect fall semester.

 (July 31, 2008) – In response to Governor Schwarzenegger’s signing today of an executive order to cut the pay of state workers to the federal minimum wage until a budget is passed, California State University Chancellor Charles B. Reed reiterated that  CSU employees will continue to receive their regular paychecks while the university seeks ways to cooperate with the state to minimize the impact on the state general fund.  While CSU is not under direct executive authority and subject to the requirement, Governor Schwarzenegger has requested that CSU and a number of other state entities assist in the effort to conserve the state’s cash balances.

“We are working to ensure that CSU employees will receive their regular paychecks and can expect their normal compensation until a new budget is signed,” said Reed.  “At the same time, we are looking at paying compensation with alternative revenue sources other than the state general fund in an effort to cooperate with the Governor and the legislature in this challenging budget environment.  Also, this will not affect the fall semester on any of our campuses.” 

Gov. Schwarzenegger has issued an order to cut the pay of about 200,000 state workers to the federal minimum wage of $6.55 an hour until a budget is signed in an effort to avert a cash crisis.  The budget deadline was July 1, and without a signed budget soon, the state has indicated it may be forced to borrow funds on terms that are highly unfavorable to the state in order to meet its short-term cash flow needs.

The Governor has also called for a hiring freeze of all non-critical functions.  For the CSU, this will mean “we are going to be prudent in our hiring, but the CSU needs to be prepared to serve the 450,000 students that will be enrolling on campuses for the fall semester beginning in August.  To be responsive, the CSU will need to hire faculty and staff to help meet the needs of those students,” said Reed. 

In addition to the CSU, the Governor has requested that other state entities including the University of California, California Community Colleges, the California Public Utilities Commission, constitutional officers, and legislative and judicial branches, assist with similar efforts to help preserve the state’s cash supply during the budget impasse.

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The California State University is the largest system of senior higher education in the country, with 23 campuses, approximately 450,000 students and 46,000 faculty and staff. Since the system was created in 1961, it has awarded nearly 2.5 million degrees, about 90,000 annually. 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

Last Update: July 31, 2008
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