Dear CSULB Faculty and Staff:
Throughout the course of this past week there have been a number of important developments that I wanted you to be aware of. First, earlier this week the Governor and legislative leadership reached a budget agreement that should be voted on by the Assembly and Senate soon. All indications so far are that the budget should be passed by both chambers. Unfortunately, the agreement includes the $584 million in cuts for which the CSU has been preparing to address for the current year, 2009-10. For CSULB, this budget reduction amounts to approximately an unprecedented $42 million cut. The $3 billion reduction to the CSU and UC quoted in the media is a figure that does not take into account the $640 million in Federal Stimulus funding that we expect to receive nor the $84 million in net revenue generated by the earlier 10 percent fee increase approved by the Trustees in May.
Second, due to the magnitude of these cuts, the CSU Board of Trustees acted on Tuesday and approved an additional $672 increase in annual undergraduate resident fees ($780 for teacher credential students; $828 for graduate students) and a 10 percent increase in non-resident student fees. This increase generates approximately $166 million in new CSU revenue to help offset the $584 million in cuts. For our campus these additional funds generate approximately $11 million to be applied against the $42 million budget reduction. One third of these fee increases has been set aside for financial aid and will be awarded to CSU's economically neediest students. The Board of Trustees approved the additional fee increase with great regret, but the alternative of facing the cuts without this new revenue was seen as a greater evil.The Board also took actions to allow for the furlough of managers and other non-represented employees and to recognize CSUEU's agreement on furloughs. Campus furlough plans are currently being developed and reviewed for these groups and are scheduled to begin in August.
Third, discussions are underway to reduce CSU enrollment by 40,000 students over the next two years. Because this new budget reduction essentially takes all state funding away from 95,000 CSU students and 7,000 CSULB students, we have been given much lower enrollment targets that we will have to meet in the coming years. To reduce CSULB's numbers to the new targeted figure, we have closed all new winter and spring enrollments and will take additional actions as the year progresses to manage our enrollment at the new funded levels.
Finally, earlier today the California Faculty Association (CFA) announced that they had agreed to enter into discussions with the CSU regarding the furlough option. At this time, two other labor unions – the California State University Employees Union (CSUEU), representing 16,000 non-academic employees, and the United Physicians and Dentists (UPD), with 117 members – have ratified furlough agreements with the CSU. The CSU is in the process of negotiating furloughs with Academic Professionals of California (APC), representing 2,400 student service employees. The remaining unions have opted for layoffs per their contracts.
In addition to these recent budgetary developments, systemwide we have been asked to submit campus budget reduction plans that will generate $183 million in additional savings – or in CSULB's case approximately $8.8 million. As stated in my last campuswide email, no one solution allows us to address the magnitude of this latest state budget cut. Any solution resides in the development of multiple solutions that must generate $42 million in cost reductions and revenue enhancements.
Unfortunately, I do know that none of this news is good news, especially as we rapidly prepare for the new academic year which begins in a little over one month. We will continue to inform you of any new developments as the summer progresses and more information is available to us.
Thank you for your commitment and dedication to CSULB.
F. King Alexander
President
