Dear CSULB Campus Community:
As you are well aware, the Governor's proposed budget reductions facing the CSU and all of public education are the worst that we have seen in CSULB's 60-year history. By most indications, if this budget is passed in Sacramento, the CSU will have $584 million of a total $2.9 billion budget yanked out from under us in the current academic year. Furthermore, early discussions regarding next year's budget (2010-2011) have provided little hope or optimism that these funds will be restored soon.
What does this massive reduction actually mean for CSULB? For our campus, this proposed budget cuts nearly $42 million from our $200 million state appropriation. This $42 million figure also recognizes the 10 percent fee increase approved by the Board of Trustees in May. More concretely, however, this one-year cut reduces the overall state commitment to our students from about $6,400 per student, which is slightly below the national average, to approximately $5,000 per student. This decline in state per-student support of $1,400 in one year is unprecedented and reduces California's total state per-student commitment to levels below less affluent states like Kentucky, New Mexico and Arkansas, and far below the national average. This is shameful in a relatively wealthy state that was once the envy of the world in higher education.
To address this massive $42 million reduction, we will need to employ multiple strategies because no single remedy will provide the necessary resources to offset such a cut. For example, if student fees alone were used to offset this reduction, all student fees would have to nearly double this year. To add to the complexity of the current situation, we still do not have a final budget as debates continue to place California in greater fiscal trouble with each passing week. Fortunately, thanks to the new "maintenance of effort (MOE)" provision imposed within the federal economic stimulus package, at this point we have been spared even deeper reductions because the proposed cuts to the CSULB and UC are tied to "MOE" limitations. Without the threat of federal stimulus dollar reductions, Sacramento probably would have called for even deeper cuts.
To begin addressing these budgetary challenges, we have had to make a number of decisions to protect the economic and educational viability of our campus. First, we have had to reduce enrollment to our appropriate state funded levels, consistent with all other CSULB institutions. This means that we will enroll approximately 36,000 students this fall instead of last fall's 38,000 students. This also means that we will reduce our next year's enrollment by at least another 3,000 to achieve an approximate head count of 33,000 students in 2010-11. Second, admissions will be closed for the spring 2010 term which means that we will not accept new students in the spring semester. Hopefully, when our budget recovers, we will be able to reopen this admissions option for incoming students. Third, student fee increases are being carefully weighed and considered to help offset some of the damage being inflicted on our budget by Sacramento. For CSULB, this means that for every 5 percent increase in student fees our campus will receive close to $3 million to meet current educational needs and demands. This figure excludes the one-third set aside for State University Grants, which are allocated back directly to our neediest students. Fourth, as you are well aware, discussions and planning are underway to implement two-day per month furloughs and potential layoffs in the upcoming year. CSUEU, our largest staff union, voted overwhelmingly to discuss furloughs as an option to drastically mitigate the number of layoffs and employment loss. Those employees are currently voting to ratify the negotiated agreement. The California Faculty Association (CFA) is voting this week to determine whether to enter into discussions with the CSU about development of a furlough plan. Financially, adoption of a campuswide furlough plan creates approximately $20 million in compensation reduction expense ($9 million from staff and $11 million from faculty) to be used to address our $42 million state budget reduction for the current year. If campuswide furloughs are not adopted by all employees, an equal amount of expense reduction would have to come from campus layoffs. Fifth, we already know that even if all these strategies are adopted, we will still need to generate another $7-9 million in budgetary savings to meet the $42 million reduction. These funds will have to come from our reductions in travel, employment freezes and attrition, cost cutting and savings, service hour reductions, administrative consolidations, and other expense-saving measures.
As these discussions continue, we remain committed to working with our faculty, staff and students through multiple venues (Academic Senate, Staff Council, Associated Students, Inc., etc.) to find the best possible solutions during these unprecedented fiscal times. Despite these challenges, protecting educational opportunities as best we can under these circumstances is why we are in public higher education. As a university, we all have a great deal to be proud of because of what we have accomplished for our students and alumni. I have complete confidence that we will continue to work collaboratively to provide our vast population of students with high-quality educational experiences despite these budgetary setbacks. We will keep you updated as more information becomes available in the coming weeks.
Thank you for your service and commitment to CSULB and our students.
F. King Alexander
President
