CSU | Public Affairs | BOT Wrapup October = 2004

From: Subject: CSU | Public Affairs | BOT Wrapup October 2004 Date: Fri, 29 Oct 2004 11:09:05 -0700 MIME-Version: 1.0 Content-Type: multipart/related; boundary="----=_NextPart_000_0000_01C4BDA7.B48CC910"; type="text/html" X-MimeOLE: Produced By Microsoft MimeOLE V6.00.2800.1409 This is a multi-part message in MIME format. ------=_NextPart_000_0000_01C4BDA7.B48CC910 Content-Type: text/html; charset="Windows-1252" Content-Transfer-Encoding: quoted-printable Content-Location: http://www.calstate.edu/pa/news/2004/BOT1004.shtml CSU | Public Affairs | BOT Wrapup October = 2004


	Explore the System Issues & Ideas Locate & Find InfoCenter Home

A Summary of the October 28, 2004 = Board of=20 Trustees Meeting

Contact: Clara Potes-Fellow, cpotes-fellow@calstate.edu,=20 562-951-4800=20

Trustees Approve 2005-06 Budget and Fee Increases

The California State University=92s Board of Trustees today = approved the=20 proposed 2005-06 Support Budget, which included student fee = increases=20 effective for fall 2005.

The annual State University Fee for resident undergraduates, = and for=20 students in CSU=92s teacher credential programs will increase by 8 = percent,=20 or $186 and $215, respectively. Fees for graduate students will = increase=20 by 10 percent or $282.

=93Raising fees is a very difficult decision for all of us. = This is one=20 of many actions we are forced to take as a result of the budget = cuts=20 experienced over the previous three years,=94 said Murray L. = Galinson, chair=20 of the Board of Trustees. =93I strongly suggest that we all work = together,=20 faculty, students, trustees and the administration, to show the = governor=20 and the legislators that the needs of the CSU system are much = greater than=20 what this budget reflects.=94

Including the average = campus-based fees=20 of $582, the resident annual fee for 2005-06 will be $3,102 for=20 undergraduates, $3,504 for teacher credential students and $3,684 = for all=20 other graduate students.

Even after the fee increase, CSU students will continue to pay, = on=20 average, one of the lowest fees of any university in the nation. = The=20 2005-06 annual fee for undergraduates will be $2,554 less than the = average=20 fee for 2004-05 for CSU=92s public comparison institutions. The = state will=20 continue to pay the largest portion of the cost of education. If = the=20 2005-06 budget plan is fully funded, students will pay about 22.7 = percent=20 of the cost of education.

The adoption of the fee increase honors the terms of the higher = education compact agreed to with Gov. Arnold Schwarzenegger in May = 2004.=20 It calls for the CSU to develop its annual budget plan based on = the=20 assumption that undergraduate student fees will increase by 14 = percent for=20 2004-05, and by 8 percent each for 2005-06 and 2006-07. The = governor=20 expects CSU graduate student fees to eventually be 50 percent = higher than=20 undergraduate fees, in recognition of the cost of these programs = and the=20 expected higher earnings these students will make once they have = entered=20 the workforce.

The 2005-06 fee increase and enrollment growth revenue will = generate=20 approximately $101.2 million in new revenue to help fund CSU=92s = critical=20 needs. One fourth of this revenue -- $23.3 million -- will be used = to=20 increase the CSU State University Grant pool to help financially = needy=20 students.

The budget and fee increases were adopted on a 15 to 3 vote. = The=20 dissenting votes were cast by Lieutenant Governor Cruz Bustamante, = Trustee=20 Ricardo F. Icaza, and student Trustee Eric Guerra.

The California State Student Association President Manolo = Platin urged=20 the board to adopt a budget without student fee increases. =93Fee = increases=20 reduce affordability for students and threaten the economic = prosperity of=20 California,=94 he said.

Compact=20 Graphic here.=20

The 2005/06 CSU Budget Proposal Now Goes to = Sacramento

Based on the higher education compact, the proposed 2005-06 CSU = budget=20 requests $224.8 million in new revenue for the CSU. The new = revenue=20 includes funding for a 2.5 percent increase in student enrollment = --$63.7=20 million -- which would allow the CSU to serve an additional 10,000 = students (8,103 full-time equivalent students). This enrollment = growth=20 funding will reverse a trend of two years of lowered enrollments = and=20 budget cuts.

In addition, the budget will provide a 3 percent increase for = general=20 operations, funding nearly $137.8 million in mandatory costs,=20 compensation, and long-term needs that have not been funded over = the past=20 three years. The proposed budget recommends a 3.5 percent = compensation=20 pool.=20

=93Over the next several months we will be working with the = governor, his=20 administration, and legislative leaders to make the case for the = CSU, and=20 ensure that the university receives its fair share of state = resources,=94=20 said CSU Chancellor Charles B. Reed. =93We hope these = conversations result=20 in actions that recapture the promise of California=92s master = plan for=20 higher education.=94

The budget sets aside $23.3 million for student financial aid, = which=20 brings the State University Grant funding to $223 million, and = supports=20 101,200 state grants. This funding will allow the CSU to provide = financial=20 aid to cover the student fee increases for its most needy = students, and=20 increase by 2,700 the grants from the previous year.

The higher education compact is a six-year agreement from = 2005-06=20 through 2010-11, which promises to fund at least a 2.5 percent = annual=20 enrollment growth, allowing the CSU to stem enrollment decreases=20 experienced the last two years. It also provides a 3 percent = minimum=20 General Fund increase in 2005-06 and 2006-07, and a 4 percent = minimum=20 increase in 2007-08 through 2010-11, for basic needs including = salary=20 increases, health benefits, maintenance and inflation. For 2008-09 = through=20 2010-11, the compact provides ad additional one percent for core = academic=20 needs.

This new funding will help recover the loss of more than $500 = million=20 that the CSU experienced over the past three years as a result of = the=20 state budget crisis. During these years the CSU was forced to = reduce=20 enrollment growth and to take significant cuts in administration, = reduce=20 employees and part-time faculty, freeze salaries, and defer = maintenance=20 and technology upgrades.

Based on the compact, the CSU plans to present annual budget = blueprints=20 that address long-range goals to meet demand for access, pay = competitive=20 wages, keep instruction affordable, assist students with financial = need=20 and improve facilities, research and instructional equipment.

The budget plan of 2005-06 is the first in a series of = university=20 funding proposals that will be aligned with the state=92s fiscal=20 recovery.

Next steps in the 2005-06=92s budget development process = include the=20 following dates:
=B7 November/December =97 Meet with = Governor=92s office and=20 Department of Finance staff
=B7 January =97 Governor required = to submit=20 balanced budget to legislature
=B7 February =97 Budget review = by=20 Legislative Analyst=92s Office
=B7 March/April =97 Budget = subcommittee=20 meetings
=B7 May =97 Governor announces May revise to the = January budget=20 projections
=B7 June =97 Two-House Conference Committee. = Official deadline=20 for budget adoption.

Three=20 Year Budget Summary=20

Compensation for San Jose State University = Interim=20 President

In other action, the Board of Trustees set the compensation for = Don W.=20 Kassing, who has been appointed Interim President at San Jose = State=20 University at $230,004, with a university residence also = provided.

The California State University is the largest system of = senior=20 higher education in the country, with 23 campuses, approximately = 400,000=20 students and 46,000 faculty and staff. Since the system was = created in=20 1961, it has awarded about 2 million degrees. The CSU is renowned = for the=20 quality of its teaching and for the job-ready graduates it = produces. Its=20 mission is to provide high-quality, affordable education to meet = the=20 ever-changing needs of the people of California. With its = commitment to=20 excellence, diversity and innovation, the CSU is the university = system=20 that is working for California. See www.calstate.edu.

Content = Contact:
Public=20 Affairs
publicaffairs@calstate.edu=

Technical=20 Contact:
webmaster@calstate.edu

Last Updated: October 28, = 2004

Public Affairs=20 Home

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