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

May Revise Restores $97.6 Million to CSU Budget

CSU still faces critical challenges to meet 2008-09 needs

(May 14, 2008) -- Governor Arnold Schwarzenegger ‘s May revision of the State budget restored $97.6 million to the California State University, reducing the  $386 million gap in state funding initially anticipated for the 2008-09 CSU budget.

Even under the improved proposal, the CSU still faces $288 million in reduced funding and serious fiscal challenges, as well as $124 million in mandatory cost increases for which no general fund resources exist. These are additional expenditures that the CSU must make in 2008-09 to meet various obligations including, escalating energy costs and employees’ health insurance premiums.

 “Today we are in a better position than yesterday,” said CSU Chancellor Charles B. Reed. “The restoration of funds in the May Revise, in spite of a worsened fiscal condition in the state, reflects the Governor’s strong commitment to education.  He has demonstrated that preserving quality in student academic programs is a high priority for California. We sincerely thank the Governor for his support.

“Also, I am particularly pleased with the tremendous collaboration of students, faculty, staff, administrators and alumni who under the Alliance for the CSU, have advocated for full funding for the university system. Their demonstrations at each of our 23 campuses and at the state capitol have highlighted the value of higher education for the economy of our state.

“Still much can happen between now and the day when the legislature and the Governor adopt the final budget.  So, we must continue our advocacy in this unprecedented collaborative way for the sake of higher education and California’s future.”

To maintain high academic quality while absorbing state budget cuts, the Board of Trustees today voted to increase the annual student fees as follows:  $276 for undergraduate students, $324 for teacher credential students and $342 for graduate students.  The 10 percent increase will generate approximately $73 million, after providing for additional financial aid to eliminate the fee increase for the neediest students. Approximately 143,475 students will receive financial aid to offset the fee increase. This represents approximately 75 percent of all financially needy students.

Revenue from the fee increase will be used to manage class sizes and maintain cutting edge course offerings, knowledgeable instructors, and continued improvement of library collections and services.

Even with the increase, CSU fees will continue to be among the lowest in the country. The undergraduate State University Fee will go up from the current $2,772 to $3,048 per year.  Including the current average campus fee of $749, CSU undergraduate students will pay approximately $3,797 for one academic year, which is less than the lowest fee of public institutions used to benchmark the CSU.        

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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: May 16, 2008

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