CSU | Public Affairs | 2005-06 Budget Release

From: Subject: CSU | Public Affairs | 2005-06 Budget Release Date: Mon, 10 Jan 2005 15:39:53 -0800 MIME-Version: 1.0 Content-Type: multipart/related; boundary="----=_NextPart_000_0000_01C4F72A.A1318240"; 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_01C4F72A.A1318240 Content-Type: text/html; charset="Windows-1252" Content-Transfer-Encoding: quoted-printable Content-Location: http://www.calstate.edu/pa/news/2005/budget0506.shtml CSU | Public Affairs | 2005-06 Budget Release


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Governor=92s Budget Honors Compact = with CSU

University campuses to receive = enrollment=20 funding, compensation increases and student financial aid

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

(Jan. 10, 2005) =97 Honoring the higher education compact with = the CSU,=20 Gov. Arnold Schwarzenegger has proposed $211.7 million in new = revenue for=20 the California State University=92s 2005-06 budget, which funds = fully the=20 trustees=92 budget request and represents a 4.4% increase in CSU = General=20 Fund support. If approved, the proposed budget increase would = provide=20 state General Fund revenue of approximately $2.6 billion for the = CSU.

The budget would provide a 2.5 percent increase for enrollment = growth=20 or $63.7 million to serve an additional 10,000 students (8,103 = full-time=20 equivalent students) in 2005-06.

=93We are encouraged by the support the CSU is receiving from = the=20 Governor in this budget cycle,=94 said CSU Chancellor Charles B. = Reed.=20 =93Funding for enrollment growth begins to restore student access = from the=20 previous year=92s enrollment decreases and reductions in CSU = operations. It=20 also enables the CSU to continue producing job-ready graduates for = a wide=20 range of California industries, helping them to remain competitive = in the=20 global economy.=94

The 2005-06 budget includes a general operations increase that = will=20 provide $88.1 million to support a 3.5 percent compensation = increase for=20 faculty and staff, effective July 1, 2005, and designates $23.3 = million=20 for financial aid, which brings the State University Grant funding = to=20 $232.6 million to support 101,200 state grants.

Based on the compact, the CSU would receive $101.2 million in = student=20 fee revenue generated by a student fee increase that will be = effective in=20 fall 2005. The budget requests an 8 percent increase for = undergraduates=20 and students enrolled in CSU teacher credential programs, or $186 = and=20 $216, respectively, for a full-time student. For graduate = students, fees=20 will increase by 10 percent, or $282. Under this budget, in = 2005-06=20 undergraduate students will pay $2,520 annually, and teacher = credential=20 students will pay $2,922 annually. Graduate students will pay = $3,102=20 annually. Even with the increase, CSU fees continue to be among = the lowest=20 in the country.

The Compact funding provided in the Governor=92s budget begins = to restore=20 student access, employee compensation, and mandatory costs for = health and=20 dental benefits, new space, and increasing insurance and energy = costs.=20 Over the past three years, the CSU has seen a net budget reduction = of $522=20 million that has resulted in enrollment reductions, cuts in = student=20 services, and an inability to make progress on a growing faculty = and staff=20 salary gap.

=93Three years of budget reductions have not allowed the CSU to = meet the=20 overwhelming demand for student access,=94 said Richard West, CSU = executive=20 vice chancellor and chief financial officer. =93This funding for = the CSU is=20 a sound investment for our students and California=92s economic = future.=94=20

The Governor=92s budget authorizes a $44.4 million increase for = 2004-05=20 employer-paid PERS retirement benefits.

The budget has been reduced by $11.9 million to reflect lower = charges=20 for annuitant dental benefits and to remove one-time discretionary = funding=20 CSU received in 2004/05.

The higher education compact is a six-year agreement from = 2005-06=20 through 2010-11. It promises to fund at least a 2.5 percent annual = enrollment growth, allowing the CSU to stem enrollment decreases=20 experienced in 2004-05. It also provides a 3 percent minimum = General Fund=20 increase in 2005-06 and 2006-07, and a 4 percent minimum increase = in=20 2007-08 through 2010-11 for basic needs, including salary = increases,=20 health benefits, maintenance and inflation. For 2008-09 through = 2010-11,=20 the compact provides an additional 1 percent for core academic = needs.

Next steps in the budget review process include the following=20 dates:

February =97 Budget review by Legislative Analyst=92s = Office
March/April =97 Budget subcommittee meetings
May =97 Governor announces May revise to the January budget=20 projections
June =97 Two-House Conference Committee. Official deadline = for budget=20 adoption.

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 44,000 faculty and staff. Since the system was = created in=20 1961, it has awarded about 2 million degrees, about 82,000 = annually. The=20 CSU is renowned for the quality of its teaching and for the = job-ready=20 graduates it produces. Its mission is to provide high-quality, = affordable=20 education to meet the ever-changing needs of the people of = California.=20 With its commitment to excellence, diversity and innovation, the = CSU is=20 the university system that is working for California. See = www.calstate.edu=20

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

Technical=20 Contact:
webmaster@calstate.edu

Last Updated:XXX

Public Affairs=20 Home

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