Report of the Chair

As we've discussed at length today, the CSU faces very difficult times ahead with regard to the state budget. The governor plans on cutting us at least $500 million. That's almost 20 percent of our funding from the state and the equivalent of funding for 88,000 students. Unfortunately, this is also our best case scenario. The cut to the CSU will be much worse if the proposed extensions on sales and income taxes and vehicle registration fees do not make it to the ballot in June or are voted down. If that's the case, the state would be facing an "all-cuts" budget and the Governor has discussed doubling our cut to $1 billion dollars. A cut of that magnitude could cripple the CSU. At that point we would face incredible challenges in maintaining the access and service to Californians that is so crucial to our mission. This is not only a critical time for the CSU, but public higher education in our state and for California itself. We will continue to work to determine the best course of action for the CSU and we'll hope for the best, but we might have to brace ourselves for the worst. Despite these very challenging circumstances, our campuses continue to do some great things:

We're only three months into 2011 and several campuses have already been the beneficiaries of some wonderful and timely gifts:

The Bayer USA Foundation, the philanthropic arm of the Bayer Corporation, awarded a $540,000 grant to Cal State East Bay that will support the creation of a new Center for STEM Education. This new center will play a lead role in enhancing and developing new programs as part of East Bay's ongoing focus on science, technology, engineering and mathematics.

Cal Poly Pomona has received a $2.5 million pledge from long-time supporters Andrew and Peggy Cherng, who are the founders of the Panda Restaurant Group. The Cherngs have been great friends to Cal Poly Pomona and their pledge will launch a significant expansion of the Collins College of Hospitality Management.

Don and Joan Beall recently completed a $4 million gift commitment to San José State's Charles W. Davidson College of Engineering. This lead gift in SJSU's comprehensive fundraising campaign created the university's first endowed deanship, the Don Beall Dean of Engineering and students can continue to look forward to participating in the leading edge engineering and science programs that are so crucial in Silicon Valley Congratulations to the San Diego State Aztecs men's basketball teams on winning their first-ever NCAA tournament game. They have now won two games in the tournament and have reached the Sweet 16 for the first time in school history. A trustee, who shall remain nameless, asked me if there was any way to secure for him or her tickets to the next game that the Aztecs will play. I immediately, in the interest of collegiality, referred that request to the president of SDSU. And if you are unhappy with the response, whomever you are, you should address your concerns to the president, not to me.

The Cal Poly Pomona team will play again tonight, I believe. We want to wish them good luck and tickets might be a little easier there. So talk to the president of Cal Poly Pomona.

Cal maritime's sailing team extended its string of recent successes by winning the fourth annual Port of Los Angeles Harbor Cup/Cal Maritime Invitational Intercollegiate Regatta. The Keehaulers returned from their second place finish last year to win four of the 10 races against a nine team field. Congratulations to the Maritime Academy.

Trustee Achtenberg has just been appointed by President Obama to the Commission On Civil Rights and we're so delighted about that appointment.

On a somber note, we were saddened to hear of the passing of former Long Beach State president Steve Horn. Steve dutifully served as president of Long Beach State for 18 years before moving on to the House of Representatives where he served five terms as a congressman representing the 38th district. Our deepest condolences go out to his family and friends.

Earlier today, Ray Holdsworth casually announced this could be his last meeting that as a member of this board. Although I had not intended to say anything about that, I join Ray in that we are both members of the same class, and should it be the circumstance that I will not continue with you, I want you all to know what a great opportunity this has been to be a member of this board and certainly, for me to have the opportunities to serve as the chair of this board. I said to the Superintendent of Public Instruction earlier, that I have had the good fortune of serving this system in so many ways from a fledgling young staff member in 1974, who was brought in to develop the first systemwide affirmative action program for the CSU system, through a series of opportunities from assistant executive vice chancellor to vice chancellor for administration, to executive vice chancellor to retirement, to interim president at CSU Dominguez hills and to come be a part of this board has been something that is beyond my wildest dream. Now don't write me off, I have said that I am more than willing and eager to continue to be part of this process, if the stars should so declare. So in case the stars move in the right way, I will be around to bug you for a while longer. If they don't, God knows this has been one great pleasure.

Thank you very much. Members of the board that concludes my report.