VOL. LV, NO. 66
California State University, Long Beach February 1, 2005
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Editorial Staff

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Elysse James
Opinion Editor

Matt Pearson
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Bradley Zint
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. News  
 

CSU System may receive $211.7 million in new revenue

By Kara Ogushi
Online Forty-Niner
Staff Writer

The California State University system budget may receive $211.7 million in new revenue, quieting fears that Gov. Arnold Schwarzenegger would back out on his higher education compact with the California State University system.

According to a press release from the CSU Web site, these funds will cover the amount requested by the trustees and will provide a 4.4 percent increase in the CSU General Fund. If the increase is approved it will give the CSU system a total of $2.6 billion dollars.

"The compact was signed in May 2004 and so far the governor has honored it.

The higher education compact begins to restore student access, employee compensation, and mandatory costs for health and dental benefits, new space, and increasing insurance and energy costs," said Clara Potes-Fellow, CSU spokesperson. The higher education compact will be distributed over the next six years, from the 2005-06 school year to the 2010-11 school year.

This will help to restore the $522 million in budget cuts made by the CSU system during the last three years.

The Web site goes on to say that the budget will provide $63.7 million for enrollment increases of up to 10,000 more students for 2005-06. The budget will also distribute $88.1 million for faculty and staff compensation.

"I am cautiously optimistic that the compact will be funded. The campus is counting on the money so we might begin to recover what was lost during the past three bad budget years, however, given the state's revenue picture, and the bipartisan and contentious state budget process, we should be a bit wary," said Janet Parker, director of budget and human resource information systems.

"This is a tough call — we can't put our heads in the sand and pretend there aren't some difficulties with getting the compact incorporated into the 2005-06 general fund budget – however, if we act like we can sustain more cuts by developing contingency plans, that could be a self-fulfilling prophecy, which undermines the governor's promise and our belief that he can get it done," Parker said.

Both Potes-Fellows and Parker believe that it is important for students to not only support the compact because it directly impacts them but to also become involved.

"Clearly, talk to your state legislators who hold the purse strings and the authority to pass a budget," Parker said.

But not everyone is in agreement that this compact is in the best interest of the students.

"How does improving the growth of enrollment benefit students like me? The students are paying more in tuition and parking to increase the enrollment of students on our campus. This is ridiculous," Michelle Bartolo, a business major at CSULB said.

The budget is still under review until the official deadline in June 2005. But first, the budget must pass through a few hurdles, such as the budget sub-committee hearings and the governor's revision in May.

"So far the governor has proposed to fund the needs of the university this year. Now it's up to the legislature to support his proposal," Potes-Fellows said. "We will be looking carefully at what the legislature does over the next months."

 


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