February 20, 2004

Contact: Leah Kolt
Cal Poly Public Affairs
(805) 756-1511

FOR IMMEDIATE RELEASE

Cal Poly Vice President for Finance Gives Staff Update on State Budget Issues

SAN LUIS OBISPO -- As deliberations continue in Sacramento, the CSU Chancellor’s Office is in the process of allocating budget reductions based on the Governor’s budget.

While Cal Poly awaits this information on specific funding allocations to campuses, University divisions and departments are developing related budget-reduction plans.

A funding shortfall of approximately $9.3 million is expected for 2004-05 at Cal Poly, based on the Governor’s budget and the assumption that Proposition 57 passes in March, according to Lawrence Kelley, vice president for administration and finance.

“All of the numbers we are using anticipate the passage of Proposition 57 on March 2, in which the state will borrow up to $15 billion to restructure the deficit,” said Kelley in a memo to Cal Poly faculty and staff sent out Feb. 20. “We are told that if Proposition 57 does not pass, our funding cuts will be more severe.”

Using these preliminary numbers, Cal Poly divisions and departments are developing plans and examining options for meeting the reduction. “President Baker has asked that all budget reduction plans minimize the impact on permanent faculty and staff, where possible,” Kelley said.

Budget reduction plans will be submitted to the division vice presidents shortly, becoming final after they are reviewed and approved later this spring, he added.

Kelley outlined the major milestones in the budget process over the next few months. They include:
• The March 2 vote on Proposition 57
• The funding allocations from the CSU
• The budget deliberations in the Legislature
• The budget and fee action taken by the Board of Trustees
• The May revise as presented by the Governor
• The final budget as approved by the Legislature and signed by the Governor

“We are continuing to monitor the budget process closely and will continue to provide budget updates on a regular basis, as we receive new information,” he said.

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