Jan. 9, 2004

FOR IMMEDIATE RELEASE

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

Cal Poly Vice President for Administration and Finance Issues Statement on State Budget

Vice President for Administration and Finance Larry Kelley has issued
the following statement on today's budget proposal issued by the
Governor Arnold Schwarzenegger:

"It is obvious from the Governor's budget today that these continue to
be challenging times for the state. The Governor has made some difficult
choices that are guided by the economic realities in California. We
welcome the concept of a long-term fee policy and recognize that the
cost of higher education is paid as a partnership between the state and
the students. At the same time, we are concerned that continued
reductions in state support limit access by students to the CSU. We are
also concerned about the long-term effect that can have on the state's
economy.

Cal Poly had funding reductions of over $16 million in the current
fiscal year and will be facing a new round of budget reductions based on
this proposal. The budget includes both programmatic and general
reductions in funding for the CSU system, as well as a 10 percent
reduction in new freshman enrollment. It also includes a proposed 10
percent increase in fees for undergraduate students and a 40 percent
increase for graduate students, possibly impacting the production of
teachers.

We encourage flexibility in the areas of budget reductions so the cuts
will have the least possible impact on the quality of the academic and
support programs and on the students we serve.

It is too soon to know the specific impact on Cal Poly, but we
anticipate having numbers from the CSU by early February.

The Governor's budget is being introduced in the Legislature, where it
will be considered throughout the coming months with the target of
having a new annual budget in place for the fiscal year beginning July
1, 2004."

To view the budget news release issued by the CSU Public Affairs office, click here.

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