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Budget Central

July 7, 2011

President’s Letter to the Campus Community

CSULB Students, Faculty and Staff:

As you have already heard, last week Governor Brown approved a 2011–12 budget. Unfortunately, this final budget reduces state appropriations to the CSU by an additional $150 million bringing the system’s overall reduction to $650 million dollars. This means that we are facing an approximate 24 percent reduction in state support throughout the CSU. The final budget also includes the possibility of an additional $100 million cut on top of the $650 million reduction if specific revenue projections are not realized by mid–year. The overall $2.1 billion state funding allocated to the CSU in the 2011–2012 budget will be the lowest level of state support the system has received since the 1998–99 fiscal year when we had 90,000 fewer students.

In response to the original $500 million reduction in state support, last fall the Board of Trustees approved a $222 per semester tuition increase (10 percent) for Fall 2011. This past May, the Trustees also discussed the possibility of additional tuition increases if further state cuts were approved by the Legislature and the Governor. With the additional $150 million cut now imposed, we will recommend to the Trustees at their July meeting an additional $294 per semester tuition increase (12 percent). Effective Fall 2011, this will result in a $516 tuition increase per semester. This increase is badly needed to offset some of the additional state reductions forced upon the CSU.

Without question, tuition increases are highly regrettable. The alternative, however, would be for campuses to be unable to provide students the classes they need to advance toward their degrees. CSULB’s portion of the $150 million reduction is in the neighborhood of around $12 million which will make our university’s overall cut over $40 million. While campus efforts to improve operational efficiencies and evaluate administrative services and programs will continue, it simply is not feasible to implement an additional $12 million in budget cuts before the start of the 2011–12 academic year in August. After the Trustee’s meeting we should know more about exactly how the CSU will respond to the additional budget cuts.

Unfortunately, Californians everywhere will be impacted by these massive educational reductions. The quality of our future economy in California is directly and indirectly related to the educational investments that are made in support of our children and higher education students. This budget regresses our state support by 13 years and places into question California’s overall commitment to generations of students needing higher education opportunities. Furthermore, since the CSU generates $5.43 in statewide economic activity for every $1 invested by Californians, this $650 million reduction will also have long lasting economic impact on all California citizens for years to come.

We will share any new information with you as it is made available. Thank you for your commitment to our students and CSULB.

F. King Alexander
President

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