As many of you know, this is my favorite
season. I love the excitement that surrounds the beginning of a
new school year. I am starting my eighth year with you, and I want
you to know how proud I am to be your President. I have never had
a better job and I have never worked with a better group of men
and women. With a shared vision, we have accomplished a lot and
we have many reasons to celebrate. Our success in many ways is a
direct result of the mutual respect and the genuine friendships
that exist among the men and women on this campus. I am especially
proud of these wonderful professional and personal relationships.
We continue to be the University of Choice
for many of California's highest achieving students. This fall we
will have approximately 350 high school Valedictorians and National
Merit scholars studying on our campus as President's Scholars. In
addition, we have experienced a steady increase in the average SAT
score of our freshman class, and I am pleased to report to you that
the percentage of students entering the University in need of remediation
continues to decline.
Chancellor Reed, his staff and our Trustees
are to be commended for their strong leadership at home and in Sacramento
through what we know were very uncertain budget conditions. It is
evident that their talents and political reputations have resulted
in the CSU enjoying elevated status and increased visibility in
the legislative process over the past few years.
Our campus Resource Planning Process (RPP)
Task Force has again provided me with thoughtful and prudent advice
for this year's budget. The members of this committee are among
the finest university citizens we have on campus, and I appreciate
their dedication and hard work.
California's Economy and the Budget
In striking contrast to recent years, the
Governor's final budget reflects the sharp downturn in California's
economy. A steep decline in the State's tax revenues and unanticipated
energy costs required the Legislature and the Governor to make significant
changes to the CSU's original budget plan. I am disappointed that
the final State budget did not include full funding of the CSU's
request for salary increases for faculty and staff. I am committed
to supporting the Chancellor's and the Trustees' efforts to keep
salaries for our employees competitive. This is fundamental to our
ability to recruit and retain the very best faculty scholars and
the most talented staff.
There are parts of the final budget, nonetheless,
that are good. Our operating budget provided by the State will increase
by roughly ten percent, which brings our overall campus budget to
nearly $500 million. The budget includes funding to support our
planned enrollment growth of five percent and a supplement to our
financial aid program for the fall, spring and summer terms. Another
piece of good news for our students is that for the seventh consecutive
year, there will be no increases in system-wide mandatory student
We have had another exceptionally good year
in our efforts to secure external funding to benefit the University.
We have many wonderful alumni, parents and friends who continually
support us in many ways and view their contributions as an important
investment in the future of our community. This past year, we received
nearly $27 million in philanthropic giving. We are well on our way
to achieving our five-year goal to triple our endowment-directed
donations. Our performance in securing grants and contracts last
year was equally impressive, as we achieved a total of $39.3 million
in funding. I am very appreciative of the efforts of our extraordinarily
dedicated faculty who continue to generate this essential source
of funding for instructional programs and research activities.
A high priority for the CSU, as reflected
in this year's budget, was enrollment growth. One-third of the budget
increase was dedicated to accommodating enrollment growth across
the 23 campuses, including state-supported summer sessions at four
campuses. Because our campus is nearing capacity, Long Beach was
specifically designated in the Governor's Budget to convert to state-supported
summer school, effective this summer.
Our greatest challenge on campus continues
to center on the question of how we will manage our resources in
response to our increased popularity, particularly among freshmen.
This fall, we will enroll the largest freshman class in our history,
with approximately 4,400 new freshmen attending our campus. Freshman
applications for this fall increased by nearly twenty percent over
last year, and, overall, we received a total of 36,800 applications
from students interested in our campus. At this rate of growth,
we are quickly approaching the campus's physical plant capacity.
Universities do not respond particularly
well to sudden surges in enrollments. Several years ago, we anticipated
that our rapid rate of growth would continue, and we began a planning
process to address the pressures created by the increasing number
of students. Our planning led to efforts to better coordinate our
student service functions and to initiate an enrollment management
strategy. Our Enrollment Management Committee has developed a thoughtful
and responsible enrollment strategy that enables us to manage our
enrollment in steady, predictable ways and to minimize the pressure
on our students and on the men and women who work here.
Our enrollment management plan, which was
developed in accordance with guidelines set by the Board of Trustees,
has been approved by the Chancellor's Office and will take effect
in Fall, 2002. The plan will enable us to establish a manageable
size for the entering freshman class by guaranteeing admission to
local students who meet CSU requirements and by raising admissions
standards for freshman applicants from outside our local area. The
approved plan has provisions for exceptions in cases of documented
hardship, and we believe that it will also protect access and maintain
the diversity of our students.
It is important to recognize that one of
the consequences of our enrollment management decision to intentionally
slow our growth will be a decrease in new state funds generated
by enrollment increases. Discussions of appropriate strategies are
taking place, and we will continue to prepare very thoughtfully
for the approaching steady-state budget in the "no-enrollment
growth" environment. In sum, we must attempt to right-size
the campus to match our available resources.
Even though a substantial portion of our
total budget increase has been earmarked for specific costs such
as salary increases, financial aid, summer operations and energy,
we have received a respectable increase in our state operating budget
that provides us with some discretionary funds. I am delighted that
I am able to encompass the RPP Task Force's recommendations in making
these allocations. Although our flexibility remains limited in terms
of permanent base budget allocations, the following funding authorizations
will provide much-needed enhancements to our academic programs and
Faculty Resources to Meet Targeted Enrollment:
I am authorizing a base budget allocation
of $2,794,150 to accommodate 1,175 additional full-time equivalent
students. These resources are provided to the Provost to respond
to tremendous enrollment demands in the classroom, to ensure that
we meet the instructional needs of our students, and to maintain
our commitment to facilitate their timely graduation.
Funding to Accommodate Non-Faculty Workload:
The University's unprecedented enrollment
growth during the past few years has created additional workload
pressures, and I truly appreciate everyone's efforts during this
time. I am authorizing a pro rata base budget allocation of $1,117,660
to assist with the workload pressures exerted outside the classroom
Academic Affairs: $466,064
Administration and Finance: $402,358
Student Services: $140,825
Sports, Athletics and Recreation: $42,471
University Relations & Development: $46,942
President's Office: $19,000
New Faculty Assigned Time for Scholarly
and Creative Activity: $600,000
I am pleased with the increases in the number
of faculty engaging in research and the ability we have had over
the past few years to support faculty scholarship. This year, I
am delighted to reaffirm the University's commitment by authorizing
a non-base budget allocation of $600,000. These funds will provide
support for our new faculty who are engaged in research and other
Library Acquisitions: $400,000
Our Library is central to the mission of
the University and the academic community. Despite the fact that
we did not receive any direct funding from the State for our Library,
I am continuing my pledge to make an appropriation from our available
funds. I am authorizing a base budget allocation of $100,000 and
a non-base budget allocation of $300,000 to help meet the campus
community's need for books, journals, electronic indices, and databases
The volume of applications from prospective
students is increasing at a record rate. We have clearly become
a campus of choice within the CSU as well as among other institutions
of higher education in California. I am authorizing a base budget
allocation of $237,000 and a non-base budget allocation of $105,000
to ensure timely responses to new students' applications. The base
budget allocation includes funding for the application processing
services that occur outside Enrollment Services, specifically in
Student Services and in the College of Education.
Support for Students with Disabilities:
Along with overall enrollment growth, the
population of students with disabilities is increasing. I am authorizing
a base budget allocation of $30,000 to provide comprehensive services
in the Career Development Center to ensure that students with disabilities
are afforded the opportunity to participate in the full range of
internship and employment opportunities. In addition, a base budget
allocation of $30,000 is authorized to support services such as
real-time captioning for visually impaired students and note-taking
support for hearing-impaired students.
Additional Funding for Faculty Travel:
Travel funds are vital to the success of
faculty who wish to remain current in their academic and professional
disciplines, especially those who may not have access to external
funding from grants or other sources. I am authorizing a non-base
budget allocation of $200,000 to support faculty professional travel,
which represents an increase from the traditional level of support
for this activity. These funds will be in addition to the faculty
travel budgets that already exist in the colleges and departments.
Common Management Systems (CMS): $196,000
The CSU launched the CMS project a few years
ago in response to the requirement that each campus develop and
maintain updated electronic systems for student information, human
resources, and finance. The first phases of the campus implementation
have now been completed, and there are new workload demands on our
operations. I am authorizing a base budget allocation of $196,000
to ensure that the campus community receives the expected level
of support and benefits from the human resources and finance systems
and that we minimize the shift of workload to departmental staff.
New Faculty Start-Up Costs: $400,000
Our ability to recruit well-qualified faculty
is directly dependent on the ability of the campus to provide them
with a strong start. I am authorizing a non-base budget allocation
of $400,000 to ensure that our new, beginning faculty are provided
with the necessary resources to teach their courses and conduct
Tele-Fundraising Management System: $128,000
I am authorizing a base budget allocation
of $30,000 and a non-base budget allocation of $98,000 to enable
the campus to invest in a new Tele-Fundraising Management System.
This investment will enhance our efforts with current donors and
will allow us to approach our prospective donors more effectively
Operational Support for Financial Aid Program: $80,000
One piece of good news in this year's budget
was the increase in the State's Cal Grant Program. This support
is expected to increase financial aid awards to our students by
nearly 40%. I am authorizing a base budget allocation of $80,000
to minimize the increased workload demands and to ensure full compliance
with new federally mandated reporting requirements.
Additional Operating Expense for Colleges:
As the campus accommodates increased enrollment
and additional faculty, it is critical that the operating expense
and communication needs associated with supporting the instructional
program are also addressed. I am authorizing a base budget allocation
of $400,000 and a non-base budget allocation of $100,000 to assist
the colleges with these expenditures.
Police Communications Center: $37,000
I am authorizing a base budget allocation
of $37,000 to support a multi-year purchasing plan to replace the
radio console in the University Police Communications Center. This
equipment is vital to the day-to-day operations of the police and
security functions on campus.
Funding Assistance for Faculty Promotions:
Each year the colleges are responsible for
the funding of faculty promotions and range elevations. To assist
the colleges with this funding requirement, I am authorizing a non-base
budget allocation of $175,000.
Staff Training and Development: $75,000
Since my arrival on campus in 1994, one
of my priorities has been to create opportunities for the staff
to be actively involved at the University. I wish to continue to
support this effort with a non-base budget allocation of $75,000
to support the campus-wide staff training and development program,
which has proven to be very valuable and cost-effective.
Groundskeeper for the Athletic Fields:
I am authorizing a base budget allocation
of $32,000 to augment the normal landscape maintenance schedule
for the athletic fields which are heavily used throughout the year
for baseball, softball, soccer, track, and rugby.
Faculty Scholarship: $90,000
I am pleased to reaffirm my commitment to
faculty scholarship and to authorize a base budget allocation of
$90,000 to further expand the Scholarly and Creative Activity Committee
(SCAC) awards program. This augmentation will support twenty additional
research awards and will make a significant difference in facilitating
the scholarly mission of the University and in keeping pace with
the recent growth in the number of professionally-active faculty.
Operation and Maintenance of New Building Equipment: $88,000
Mandated Fire Alarm Certification: $98,000
I am authorizing a base budget allocation
of $88,000 to assist with the operating costs associated with new
building equipment that has been added over the past few years.
We also have been fortunate to receive funding from the CSU Fire
Safety Capital Project to upgrade alarm
systems in order to meet the State of California regulations. Annual
certification of these newly added fire alarms is now required and
failure to comply subjects the campus to heavy fines and building
closures. -I am authorizing a base budget allocation of $98,000
to cover this phase of the certification costs.
K-I2 School Partnerships: $132,000
A high priority for the State and for our
Board of Trustees is the strengthening of our partnerships with
the K-12 education sector. I am authorizing a non-base budget allocation
of $132,000 to enhance our commitment to fostering cooperative partnerships
in the community.
Campus and Student Initiatives: $200,000
One of my highest priorities since I arrived
has been to find ways to support campus and student initiatives
and activities that advance the mission of the University and are
central to the learning environment. I am authorizing a non-base
budget allocation of $200,000 to assist with the funding of these
Faculty and Academic Department Offices:
With our recent enrollment growth and associated
hiring of new faculty we are experiencing a shortage of faculty
offices in some departments. I am pleased to authorize a non-base
budget allocation of $300,000 to support a plan designed by the
Division of Academic Affairs to maximize availability of space on
the south campus.
Affiliations and Teaching Agreements:
As enrollment has grown these past few years,
we have experienced expansion in the number and complexity of teaching
affiliations with school districts, medical care facilities, etc.
I am authorizing a non-base budget allocation of $50,000 to ensure
accurate and timely placing of our students in off-campus, experienced-based
University Web Site: $50,000
I am authorizing a non-base budget allocation
of $50,000 to assist in the continued development and maintenance
of our University's award-winning web site.
Enrollment Services Phone Responsiveness:
As enrollment has increased, student demand
in vital service areas, such as Financial Aid, has outpaced enrollment
growth. I am authorizing the continuation of a non-base budget allocation
of $43,000 to maintain the level of personal responsiveness to telephone
inquiries from students and parents. This provision will reduce
waiting time and busy signals experienced by callers.
Student Retention and Graduation: $32,000
I am pleased with the progress that we have
made over the years to improve our retention and graduation rate.
Last year, we began the important task of collecting and analyzing
qualitative information about student retention and graduation.
That work has proven to be extremely valuable and I am authorizing
the continuation of a non-base budget allocation of $32;000 to support
Total 2001-02 Recommended Budget Priorities:
Please indulge me as I tell you once again
how happy I am doing what I do, not for a living but for a life.
It is my job, and the job of those around me, to make sure that
you will be able to pursue your intellectual, pedagogic and artistic
goals--as well as your careers--unimpeded. I am honored to be your
President, and I thank you for allowing me to begin one more year
in that capacity.