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Slumped economy
limits CSU budget
By Phil Witte
On-line Forty-Niner
With the California
economy still experiencing the aftermath of Sept. 11 and a
near-recession, Gov. Gray Davis signed a proposed 2002-2003
budget for the California State University system on Jan.
10 that is significantly smaller than the one asked for by
Chancellor Charles Reed.
The governor's budget calls for a $116.9 million general fund
increase, a raise of 4.5 percent from last year. The proposal
from the CSU Board of Trustees last October asked for an increase
of $254.4 million in general fund dollars, a 9.4 percent increase
from last year.
"At this stage, we think it is a good budget, given the
financial condition of the state," said Clara Potes-Fellow
of the CSU Office of Public Affairs.
The total base budget proposed by the governor calls for a
total of $3.5 billion, while the CSU had proposed a total
budget of $3.7 billion.
"It's not as much as we would have liked, but given the
economic condition of California and the nation, I think we've
been fairly treated by the governor, considering how desperate
the revenue situation looks," Cal State Long Beach President
Robert Maxson said.
With an additional 12,030 full-time equivalent students expected
during the 2002-2003 school year, the governor's budget granted
the full $87.9 million requested by the CSU to meet the needs
of the new students.
"Tuition alone does not pay for all of the costs and
the state tries to provide enough money to cover the basic
costs of education," Maxson said.
One area that the governor's budget did not meet the requested
figure, however, was in the area of employee compensation.
The CSU had requested $89.5 million for salary compensation
increases, a 4 percent increase from the previous budget and
still less than the 6 percent requested by the California
Faculty Association.
The governor's budget only provides $22.4 million, a 1 percent
increase.
"If there was one area where I wish there would have
been more money is in the area of faculty and staff salaries,"
Maxson said.
Other areas in the chancellor's original budget were also
lacking in the governor's proposed budget.
"Financial aid, library purchases of new books, new hiring
in the work force, deferred maintenance, applied research
and some student services did not receive the full funding,"
Potes-Fellow said. "Also lacking were fee waivers, which
usually occur when the state buys out what a student pays
if there is a fee increase."
After the governor presents the budget to the legislature
for analysis the governor will have the opportunity to change
it in May, when it can be adjusted according to the latest
economic indicators.
"If cuts have to be made, every school will have to participate,"
Maxson said.
If the economy does improve and more money does become available,
the chancellor's office will work with the governor and legislature
in refining the budget.
"We will be working with them and making our case for
the areas that were not funded," Potes-Fellow said.
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