P. West, Executive Vice Chancellor and Chief Financial
from the Departments
Lenz, Assistant Vice Chancellor
Planning and Information Management
Rozner, Assistant Vice Chancellor
Planning, Design and Construction
F. San Juan, Assistant Vice Chancellor
Hordyk, Assistant Vice Chancellor
Ernst , Assistant Vice Chancellor
and Institutional Relations
Y. Zamarippa, Assistant Vice Chancellor
Lenz, Assistant Vice Chancellor
CSU assumes a budget of $2.6 billion from the state General
Fund, approximately $1.2 billion from fee revenue, and $40 million
from Lottery revenue for a budget of just over $3.8 billion
in 2005-06. The 2005-06 CSU budget augmentation of $211.7 million
consists of $110.5 million from the General Fund and $101.2
million from the increase in student fees. With the exception
of a $7 million reduction for one-time funding in the 2004-05
fiscal year, the Governor’s January budget is consistent
with the revenue and expenditure assumptions approved by CSU’s
Board last October that include:
enrollment growth by 2.5 percent to serve an additional 8,103
full-time equivalent students,
set-aside of $23.3 million for student financial aid,
million to cover CSU mandatory costs for the first time in
the past three years,
compensation pool of $88.1 million, and
million for long-term needs including technology, libraries,
and instructional equipment.
LAO released their analysis of the 2005-06 state budget, indicating
that revenue projections are $2.2 billion higher and expenditures
are $250 million lower than anticipated when the Governor released
his budget in January. The LAO attributes the increase in revenues
to the growth in the U.S. and California economies, particularly
from sales tax receipts from business profits. Despite this
additional revenue, the LAO believes the budget can only be
balanced if the magnitude of savings proposed in the Governor’s
budget is realized. While the additional $2.4 billion in revenue
is encouraging, and the $9.1 billion in structural budget changes
will allow the 2005-06 budget to be balanced, the state still
will incur a $1.1 billion deficit in 2006-07.
the Analyst believes student participation rates will remain
constant, they recommend that CSU enrollment grow by 2% next
year rather than the 2.5% increase proposed in the Compact and
Governor's budget. The Analyst also will recommend that budget
bill language specify the enrollment expectation for 2005-06.
Analyst recommends the state fund enrollment growth at $5,999
per FTES rather than the $6,270 that is based on 2004-05 marginal
cost methodology. This recommendation would result in an $11
million reduction in CSU enrollment funding. The reason for
the reduction is to recognize the 5% changes in the student
faculty ratio proposed in the 2003-04 and 2004-05 Governor’s
budgets. However, the CSU did not support these recommendations
and subsequently worked with the Department of Finance to implement
other budget reduction options. The Analyst also questioned
whether the marginal cost calculation was in
compliance with the approved 1995 methodology, and that the
methodology should be reevaluated to address several issues.
Analyst also recommends that the legislature reduce the CSU
General Fund appropriation by $24.4 million identified as savings
associated with the second year of the excess unit surcharge
phase-in. Finally, the LAO recommends that $26.6 million in
Student Aid Commission Ed Fund money be used to increase funding
for Cal Grants so private universities receive the same benefit
as the public universities. In total, the LAO will recommend
that $61.6 million in Student Aid Commission Ed Fund monies
be used to increase Cal Grant funding for all financially needy
Announcement: The Budget Office is pleased to announce
the hiring of a new Research Support Analyst, Kara Perkins,
who will assist in the review and analysis of several critical
budget issues and projects. Kara was previously the fiscal and
grants manager for the CSU California Academic Partnership Program
and has worked on extended assignment at the CSU Chancellor's
Office with the Office of the Trustees, Academic Human Resources,
Employee Relations and Community Service Learning.
PLANNING & INFORMATION MANAGEMENT
Lenore Rozner, Assistant Vice Chancellor
Process Impacts & Measures Data Collection Taking Place
in March: Required data collection will be done via
the web beginning in March with an April 8th deadline for ALL
campuses. Instructions and passwords are being distributed to
all Project Directors and Functional Groups. This initiative
provides opportunities for campuses to identify and share information
and experiences utilizing CMS to improve administrative efficiency,
effectiveness, and service in areas such as student administration,
finance, and human resources; and how campuses are maximizing
and extending the capabilities of CSU administrative systems.
For more information, contact Matthew Ceppi at firstname.lastname@example.org
or (562) 951-4547.
Satisfaction Surveys Participation Increases by 10%: Ease
of administration via the web, the ability to customize campus
surveys, and instant results are just a few of the factors attributing
to a ten percent jump in function and campus participation in
the spring 2005 Customer Satisfaction Survey initiative. Communications
and requests for participation were sent to campus Quality Improvement
Facilitators and function representatives in late January. While
deadlines are quickly approaching for the spring survey process,
there is still limited time to participate in this year’s
effort if you have not already indicated. Surveying will take
place from late March to late May, on a timeline selected by
each campus. Systemwide results will be available by mid-June.
For more information, contact Briana Anderson at email@example.com
or (562) 951-4552.
the Date: The Quality Improvement Symposium will be
held on Thursday, February 23, 2006 at the LAX Crowne Plaza
Hotel. Delegates will experience wonderful opportunities for
learning and networking through keynote speakers and various
breakout sessions and case studies. More information on how
you can be a case-study presenter or delegate to this remarkable
event will be in the Spring-Summer QI Newsletter - or visit
Director, Quality Improvement Programs
PLANNING, DESIGN AND CONSTRUCTION
F. San Juan, Assistant Vice Chancellor
February, approximately 30 campus facility managers attended
two days of training focused on subjects of specific interest
to plant operations. Best practices in facility condition assessments
and maintenance management systems were presented, as well as
the State Fire Marshal approval process for minor capital projects.
The second day was devoted entirely to labor management issues,
led by staff from Human Resources. These courses provided information
and critical discussion on topics that significantly impact
the daily operations of physical plant.
next scheduled program, Finances of Non-state Projects, will
take place on May 12. Chancellor’s Office staff from Finance
and Treasury, Financial Services Accounting, Contract Services
and Procurement, Audit, and Capital Planning, Design and Construction
will participate in presenting this training. Information on
the 2005 Capital Training program, as well as online registration,
is available at: http://www.calstate.edu/CPDC/Trg2005.shtml.
Nancy Freelander-Paice, Executive Program and Fiscal Manager
USE PLANNING & ENVIRONMENTAL REVIEW (LUPER)
Board of Trustees recently approved an agreement by which the
Grupe Commercial Company (GCC), Master Sublessee of the Stockton
Center site (now known as University Park), will allow for the
Stockton Unified School District (District) to construct a kindergarten
through eighth grade school. The Stockton Center Site Authority
reviewed and approved the proposed agreement prior to forwarding
it to the CSU Board of Trustees.
agreement will allow the District to proceed with the development
of the K-8 school as part of the Master Development Plan previously
approved by the Site Authority and the trustees in November
2003. This local K-8 school construction project is a long-term
investment and an important milestone for the overall University
Park development concept.
1997, the CSU acquired the Stockton Developmental Hospital for
the purpose of relocating the CSU Stanislaus Off-Campus Center
and to support local community economic revitalization. The
Stockton Off-Campus Center has been in operation since 1974,
and currently serves approximately 400 FTE, providing the only
access to a four-year public university in the region. This
partnership, between the city, the CSU, and a private development
partner, is a unique initiative that will yield long-term benefits
for all the stakeholders, and maximize the use of a valuable
state asset to benefit the local community.
Land Use Planning Unit reminds campuses to plan for and complete
"site clearance" for new capital projects early enough
to allow for review/revision time and still be able to meet
agenda item deadlines for trustees’ meetings. The three
main areas involving site clearance are: preliminary site clearance
for the location of projects on the capital outlay program master
plan; preparation of Due Diligence Summary Reports for property
acquisitions; and site clearance associated with clearing title
for bond-funded projects. Due to the increased liability and
significant cost associated with factors such as seismic stability,
hazardous materials, mold, and Americans with Disabilities Act
(ADA) compliance, the careful completion and verification of
necessary due diligence is vitally important. The absence of
adequate analysis at the early stages of a project can lead
to lengthy delays and unnecessary costs, both of which can adversely
affect the ability of the CSU to move a project forward to completion.
The staff in CPDC, and LUPER specifically, is ready to assist
campuses in completing this important documentation as part
of the capital project development program.
Rosso, Chief of Land Use Planning & Environmental Review
Manager at Risk: Twelve projects are currently utilizing
the CM at Risk with a Guaranteed Maximum Price model. Two of
the projects have now attained the Guaranteed Maximum Price
and have started construction. CPDC continues to work closely
with these campuses to ensure a smooth delivery of their project
and to develop a better model with guidelines for other campuses
General Conditions: The following contract general
conditions have been updated on the web: Major Capital Outlay,
Minor Capital Outlay, Job Order Contract, and Construction Manager
at Risk. Design-Build will be updated and on the web site before
the end of March.
One Specifications Tool: Division One is available
on the CPDC web site for downloading and customizing for your
project. This version is fairly basic and can be used for most
projects. For more sophisticated projects, an advanced version
will be made available on the web site before the end of March.
of Prospective Bidders, Form 703.11: The prequalification
forms have been updated, and are now available for downloading
in read-only format.
Corsar, Chief of Construction Management
ENERGY AND UTILITIES
Energy Program Manager joins CPDC: Capital Planning,
Design and Construction is pleased to announce the appointment
of Aaron Klemm as Energy Program Manager effective February
21, 2005. Aaron was previously employed in the service departments
of Johnson Controls, York, and Astropower (photovoltaic manufacturer).
He also spent four years with Enron Energy Services, from the
onset of California’s direct access through to the company’s
bankruptcy. Aaron has a Bachelor’s degree in sustainable
community development, which complements our increased interest
in sustainability efforts systemwide. Please join CPDC in welcoming
Aaron to the CSU.
Energy Efficiency Partnership Progress:
To date, the Energy Efficiency Partnership program has achieved
97% of the electricity demand goal, 115% of the electricity
usage goal and 66% of the natural gas goal. The Investor Owned
Utility (IOU) representatives have reported that most of the
Retrofit Project Commissioning Project (RPCP) paperwork has
been authorized and returned to the campuses. The partnership
team has finalized the scope of work for the Monitoring Based
Commissioning (MBCx) projects. The final scope of work will
be e-mailed to the campuses with MBCx activities and projects.
Activity and funding levels are set to achieve program goals.
Despite being on target to achieve the energy savings goals
of the partnership, there is still funding remaining in the
program. These funds total $1.2 million or 10% of the program
Access Electricity: The Energy Contract Oversight Board,
(ECOB), a joint UC/CSU committee, has selected three electricity
service providers for final negotiations of a 3-year electric
commodity supply. The board is working to obtain the best price
for both university systems that will commence on July 1, 2005.
A green-e certified renewable energy option has been requested
for 12, 13, and 14 percent of the total electricity use for
each successive year, pending CSU Board of Trustees’ approval.
Fire Marshal to Charge for Services: The CSU relies
on the State Fire Marshal to review and approve plans, field
inspect projects under construction, and provide periodic reviews
of existing buildings, most notably dormitories and science
the last few years CSU has had a successful program in place
with the State Fire Marshal to secure expedited plan review
services. This program is funded by a supplemental .07% construction
budget line item charge that CDPC collects as apart of overall
soft-cost charges. The majority of Fire Marshal services up
to now, however, have been funded as a part of the state general
fund budget. In 2004/05 the entire State Fire Marshal budget
was eliminated and they were mandated to begin charging each
‘client’ for services. CSU costs for State Fire
Marshal services are projected to rise from .07% to .25% of
construction costs. To forestall campus difficulties with the
after-the-fact billing of these charges, CPDC is working with
the State Fire Marshal to have them charge CPDC rather than
campuses individually as they had originally planned. CPDC has
informed the Department of Finance of this new charge and of
our plans to increase budgeted soft costs in 2006/07 to cover
this additional expense.
Kennedy, Chief of Architecture & Engineering
Planning has been tracking the exceptional escalation of construction
costs during the past year in order to improve budgeting for
projects in future CSU capital improvement programs. Analysis
of recent bid results, feasibility studies, and Engineering
News Record indices has resulted in a determination that a 30%
increase in construction cost guidelines be incorporated in
all CPDC budgets for future state capital projects. Financial
plans for non-state projects will also be reassessed in light
of these spiraling costs. This increase is expected to bring
projects budgeted for the 2006/07 Capital Outlay Program in
line with current market conditions.
Department of Finance has rolled back the submittal dates for
Capital Outlay Budget Change Proposals (COBCP) from March to
May, beginning with the current 2006/07 budget development cycle.
As a result, the CSU Draft Five-Year Capital Improvement program
will be presented at the May 2005 Board of Trustees’ meeting.
February 24, 2005 the Legislative Analyst’s Office (LAO)
released its analysis of CSU projects proposed for the 2005/06
Capital Outlay Program. No questions were raised regarding specific
projects, which attests to the quality of the CSU programs.
However, the LAO recommended designating the remaining 2004
bond funds to complete two projects proposed for partial funding
in the current year that would otherwise be completed with funding
from a future general obligation bond initiative. In addition,
the LAO recommended that a project with combined state and non-state
partial funding be approved contingent on the CSU committing
to use non-state funds for project completion if state funds
are not available. CPDC disagrees with the LAO’s recommendations.
The CSU does not want to be limited to proposing projects that
must be funded within a single bond cycle.
Piper, Chief of Facilities Planning
SERVICES AND PROCUREMENT
of January 31, 2005, Tom Roberts was named Director of Contract
Services and Procurement. Tom joined the Chancellor's Office
in 1994 after working for 13 years in the offshore drilling
industry (eight years in foreign operations), and three years
in commercial real estate development. Serving as Assistant
Director of Systemwide Contracts, he and his staff were responsible
for strategic contracting, real property leasing, master contracting
opportunities and sponsored project management.
Bids Now Underway
Center Services 40550 –
solicits services associated with the provision of Data
Center facilities, provision of hardware, on-going CMS data
center operations management, and other related services.
Advocacy System 40838 - The purpose of this Request
for Proposal (RFP) is to solicit proposals from firms to
provide an electronic advocacy network system to organize,
inform, educate and activate a broad coalition of California
State University (CSU) supporter
on all Chancellor’s Office systemwide bidding opportunities
can be found at: http://www.planetbids.com/csuco/bidframe.cfm
information can be obtained at: http://www.calstate.edu/csp/
or by contacting Tom Roberts at 562-951-4583.
the Pieces" Conference:
CSU Risk Management/Human Resources "Fitting the Pieces
Together” Conference will be held on May 17, 18, &
19, 2005 at the LAX Crowne Plaza Hotel. The conference will
include topics such as Accident/Incident Investigation and Reporting,
Environmental Health and Safety (EH&S), Risk Management,
and University Police Working Together; Special Events and Vendor
and Student Organization Insurance Coverage; Workers' Compensation
Reform SB 899; Process Mapping for Claims Processing; and Personal
Preparation for Disasters. For more information, contact Marti
Lopez at (562) 951-4580 or firstname.lastname@example.org.
Contingency and Planning Audit: All recommendations
have been addressed by the Chancellor's Office and the campuses
were recently provided with enhanced policies and procedures
and various reminders for this area (see Executive Order 921
The Disaster and Contingency Planning Audit reports can be found
A summary of findings can also be found at: http://www.calstate.edu/QI/audit/audithome.shtml
Quarterly Deductible Billing Report: Campuses will
receive a deductible billing report that includes information
for the 2nd and 3rd Quarter. The reports will be sent to the
campuses in mid-April with a request to send all deductible
payments to CSURMA Accounting at the Chancellor's Office. For
more information, contact Michelle Schlack at (562) 951-4568
or Lisa Gibbons at (562) 951-4621.
Services Accounting: Plans are underway for the Year-end
Closing Workshop scheduled for May 23 and 24, 2005 at a yet-to-be-determined
hotel conference site near LAX. Registration information will
soon be available on the web at: http://www.calstate.edu/FinancialServices.
Ashkar, Senior Director/Controller
TECHNOLOGY SERVICES (ITS)
David Ernst, Assistant Vice Chancellor
the Planning: The Academic Technology Advisory Committee
(ATAC) had its third meeting for the 2004-2005 academic year
on February 4, 2005. Discussion focused on two existing initiatives:
Professional Development and Development of Shared Resources.
Workgroups reported on the policy issues involved in each of
these two initiatives. ATAC also discussed the Digital Marketplace
Initiative and reviewed proposed guidelines on ensuring access
to technology for students with disabilities. The Provosts’
Technology Steering Committee (PTSC) met February 3, 2005 and
discussed these same initiatives and outlined implementation
strategies as well as on strategies for sharing best/exemplary
practices for teaching with technology.
Marketplace Initiative: Reduces cost and increases
convenience/usability of academic technology content and tools.
Renewal/revision of the systemwide contracts for the plagiarism
detection software Turnitin has been completed. Approximately
40% savings were achieved through consolidation of contracts.
Strategic Plan: The
initial outreach to systemwide groups and campus constituencies
has been completed. The intent of the outreach was to present
the accomplishments of the 2000 strategic plan and to identify
issues and concerns that could guide the Council of Library
Directors (COLD) in the current planning process.
draft plan is now being prepared for distribution across the
system in March for a two-month review and comment period. COLD
intends to produce the final draft of the plan in early June.
finalization of the plan in June, COLD will form committees
to oversee the various initiatives of the plan’s goals
2005 library strategic plan will look much different than the
earlier plans and will address a shorter time frame of three
years rather than five. It will be more tightly focused and
dynamic. Rather than organizing itself around goal areas defined
by traditional areas of library operation as in the past, it
will revolve around four strategic themes designed to advance
the libraries’ mission of providing excellent service
to students and faculty.
plan’s specific objectives will be limited to those that
are feasible within the plan’s timeframe and anticipated
resources, and will be designed to address the need to remain
agile and innovative in the face of rapidly changing information
and technology environments.
Build-Out Projects - Stage 1 and Stage 2: Construction
for the Phase 1 and Phase 2 campuses continues, with almost
two-thirds of the projects now fully complete, and all but one
still expected to be finished by mid-summer 2005.
of the eight Phase 3 sites, San Marcos, Bakersfield, San Jose,
Fresno, Fullerton and San Francisco, have started Stage 1 construction.
San Diego has recently completed the project bidding process,
with Monterey Bay soon to follow.
campuses have now either completed or are actively engaged in
Stage 2 activities. Los Angeles and Long Beach held their final
close-out meetings in January and February respectively. San
Luis Obispo is engaged in project close-out activities and anticipates
final completion in March.
is in the initial stages of designing a methodology to refresh
network equipment. Work on refresh criteria will continue throughout
a reminder, the phases group campuses in the order that they
undertake the TII project. Stage 1 refers to the physical construction
of pathways, spaces and media on campuses; Stage 2 represents
the installation of the necessary electronic components.)
Management System (NMS): NMS, a set of software tools
that allows campuses to monitor and measure their network performance
and quickly identify points of failure when problems arise,
has been installed on all 23 campuses. Implementation of the
latest NMS version is now complete. This new version updated
the network management tools to coincide with current vendor
Infrastructure Asset Management System: The Asset Management
tool is a software application that allows campuses to maintain
records of their network infrastructure by tracking cables and
equipment locations on campus. The Network Technology Alliance
(NTA) Committee’s Asset Management Working Group has proposed
a model that calls for a centralized datacenter facility capable
of supporting all CSU campuses.
recent study of NIAMS options has provided insight into the
pros and cons of facilitating modern infrastructure management
through the application of sophisticated software tools, and
data regarding the relative readiness of CSU campuses to employ
such tools. The proposed action plan is designed to achieve
the CSU’s record-keeping goals in a productive manner
while recognizing local resource limitations
Incident Response Team (SIRT): CSU has entered into
an agreement with Carnegie Mellon University’s Software
Engineering Institute to develop a framework for campus security
As a follow up to the planning and training
meeting held last December, a SIRT Framework Development Workshop
is scheduled to take place April 11 -13 in Los Angeles. The
purpose of the workshop is to develop a minimum baseline SIRT
framework that is specific to the mission, vision and goals
of the CSU campuses.
Access Infrastructure Initiative (CAI): The Campus
Access Infrastructure Initiative (CAI) is a system-wide program
that will install and thereafter maintain the infrastructure
required to connect each campus local area network (LAN) to
the new CENIC wide-area network backbone (WAN). CAI will address
the CSU's growing requirement for improved network reliability
by providing services that will enhance network capacity and
Technology Steering Committee (TSC) has approved the project
and TIS staff members are working with CENIC to finalize contracts
for managed services and installation. Project implementation
is targeted to begin in Summer 2005.
of Business Management Systems (BMS): With Technology
Infrastructure Services (TIS) continuing to evolve in the wake
of decommissioning 4CNet, and Common Management Systems (CMS)
adjusting to the gradual elimination of legacy systems, Information
Technology Services (ITS) has reviewed its organization and
service structures in order to ensure remaining well positioned
to properly serve the needs of the CSU.
that the primary focus of CMS is the development and support
of the Oracle/PeopleSoft applications, and the service portfolio
of Business Management Systems (BMS) is more consistent with
the developing TIS service framework, the BMS department of
CMS was shifted to the TIS division on February 7, 2005. BMS
continues to support CMS and other programs to the extent they
require it, while beginning to provide support to TIS programs
and other Chancellor’s Office programs, as appropriate
the anticipated benefits resulting from this change are the
consolidation of core technology infrastructure services into
one department and the combined positioning of BMS and TIS to
improve the delivery of campus-focused, value-added services.
MANAGEMENT SYSTEMS (CMS)
Update: Three more campuses (Northridge, Sonoma and
Maritime) have successfully completed their upgrade to FIS 8.4.
By the end of November, four additional campuses (Sacramento,
Hayward, Chico and Fresno) are scheduled to complete their
upgrade to FIS 8.4, bringing the total number of campuses (including
the C.O.) live on
FIS 8.4 to 14.
Administration Update: The SA (Student Administration)
campus go-live activity remains on schedule. In February 2005,
Chico was in production with Student Records. San Jose is also
planning to be live with their internal messaging system. The
Sonoma campus completed its end of term processing in January
2005 and had a successful spring semester registration. Additionally,
the Fresno campus fund disbursed $33 million in financial aid
before the first day of school for the Fall 2004 semester. With
its newly implemented online grading, Fresno finished the fall
semester with over 95% of grades submitted as scheduled.
HR continues on the maintenance path with the majority of campuses
in production with the CMS HR baseline. Current activities include
completing campus business process reviews and facilitating
the CMS fit/gap sessions in preparation for the next major upgrade
Data Warehouse Update: The CMS Data Warehouse project
is proceeding on-schedule through the vendor selection process.
Bids were received in January and are being evaluated by a committee
of CMS Central and campus staff. An award is anticipated in
Data Center Services: The current outsourcing contract
for Data Center Services with Unisys Corporation expires on
February 28, 2006. Anticipating the expiration of the current
contract, CSU engaged Blackwell Consulting Services (BCS) to
examine alternative strategies for the delivery of Data Center
Services to the campuses.
objectives of the study were to identify and recommend alternative
strategies that will allow CSU to achieve its stated vision
and goals for CMS data center services. Other specific objectives
were to: a) analyze potential alternatives for consideration;
b) conduct an in-depth feasibility study of alternatives that
are considered to be viable; and c) conduct associated risk
benefit analysis along with estimated costs and propose implementation
approaches and deployment schedules for providing future Data
Center Services to CSU.
upon the analysis, CSU decided to issue a RFP for a new contract.
This alternative offers many benefits, the most significant
of which are the advantages available to CSU from the competitive
process. It should provide CSU with the opportunity to negotiate
better terms and to achieve improved quality of support and
committee was commissioned by the CMS Executive Committee to
gather the requirements for the data center services and to
develop the RFP. The RFP was completed and posted on February
11, 2004. Vendor responses are due April 4, 2005.
of Success: In preparation for the November 2005 Measures
of Success, staff at the Social Behavioral Research Institute
are conducting the third round of student surveys on attitudes
and perceptions about access to, use of and satisfaction with
the various aspects of information technology. As of the end
of February 2005, over 500 of the 3000-person sample have been
AND INSTITUTIONAL RELATIONS
Y. Zamarippa, Assistant Vice Chancellor
Abandons Reorganization Effort:
Bowing to intense pressure from a wide variety of interest
groups, Governor Schwarzenegger has abandoned his effort to
reorganize state government by eliminating 88 regulatory and
policy-setting boards and commissions. The far-reaching proposal,
which he outlined in his first State of the State speech more
than a year ago, was part of his effort to “blow up the
boxes” of state government.
of the governor’s plan contended that abolishing regulatory
and licensing entities such as the California Medical Board,
the Board of Registered Nursing and the Board of Accountancy
would make it harder for consumers to get grievances investigated,
compromise public safety and make government more secretive.
The proposal drew fire from accountants, dentists, and many
other powerful interests in Sacramento. Moreover, it was criticized
at a recent meeting of the Little Hoover Commission, which is
required to review any government reorganization proposal.
many elements of the reorganization plan encountered stiff opposition,
some proposals enjoyed relatively broad support. Representatives
from CSU and other higher education entities expressed support
for improving financial aid implementation and for the creation
of an office within the administration focused on higher education
and financial aid issues, consolidating the functions of the
California Postsecondary Education Commission (CPEC) and the
California Student Aid Commission (CSAC). However, despite significant
support for this proposal, it was abandoned with the rest of
the reorganization plan.
governor has indicated that he still intends to proceed with
a scaled-back version of the reorganization plan for California’s
prison and parole system. After the Little Hoover Commission
completes its review of the plan, the Governor can then submit
it to the Legislature and it would become law unless the Senate
or Assembly rejects it within 60 days. Other reorganization
proposals may also emerge as freestanding legislation over the
next few months.
Considers Pension Reform: The Assembly Public Employees,
Retirement and Social Security Committee recently held an informational
hearing to discuss the possibility of converting the state’s
pension fund to a defined contribution plan, as proposed by
Assembly Member Keith Richman (R-38-Northridge). ACA 1x (Richman),
which has been endorsed by Governor Schwarzenegger, would phase
out the current defined benefit pension system for state employees
and replace it with a defined contribution system similar to
401(k)-type programs used in the private sector.
Palmer, Chair of the State Association of County Retirement
Systems’ Legislative Committee and administrator of San
Joaquin County’s retirement plan, spoke in support of
the defined contribution plan proposal. He stated that, since
utilizing the defined contribution plan, funding for San Joaquin
County’s retirement plan has been consistently higher
than the industry standard. Palmer went on to argue that defined
contribution plans are more economically sound and practical
for both the employer and the employee, particularly since current
state and county employees are beginning their terms of employment
at a later age, retiring earlier and living longer.
of the California State Teachers’ Retirement System (CalSTRS)
spoke against the defined contribution plan proposal. Chief
Executive Officer Jack Ehnes and Deputy Chief Executive Officer
Ed Derman expressed concern over the proposed conversion to
a defined contribution plan, arguing that elimination of the
defined benefit plan would remove incentives for long-standing
teachers to remain with the California public school system.
Teachers make up 37 percent of employees covered under the current
retirement system, which Ehnes and Derman contended remains
very strong. California Public Employees’ Retirement System
(CalPERS) Chief Executive Officer Fred Buenrostro also spoke
against the defined contribution proposal. Buenrostro noted
that CalPERS, which provides a defined benefit plan for state
employees, is the number one retirement benefit system in the
nation with $182.9 billion in holdings. He also pointed to the
fact that, despite some recent losses, CalPERS is still financially
sound and its funding status is expected to increase over the
next few years.
Campus Advocacy Teams to Converge
on Sacramento This Spring: The CSU’s annual Alumni
Legislative Day is scheduled for Monday, April 11, 2005. Campus
teams from throughout the state are invited to come to the State
Capitol to rally support for the system and to lobby the Legislature
on CSU-related issues. Campus advocates will likely dedicate
themselves to defending the governor’s proposed CSU budget
in the midst of a continuing fiscal crisis. In addition, advocates
will be touting the findings of the recently-released CSU Impact
every $1 the state invests in the California State University
system ($3.09 billion in 2002/03), CSU-related expenditures
generate $4.41 in spending. As a result, the immediate impact
of CSU-related expenditures creates $13.6 billion annually
in economic activity and supports 207,000 California jobs.
In addition, some $760 million in taxes is generated for
the state’s coffers.
1.7 million CSU alumni living and working in California
earn $89 billion in income, $25 billion of which is directly
attributable to their degrees. If the enhanced earnings
of its graduates are factored in, the total effect of the
state’s investment in the CSU climbs steeply, so that
the annual spending impact rises from $4.41 to $17 for each
combined total annual economic impact of CSU expenditures,
the enhanced earnings of its graduates, and the ripple effect
of both generates a $53 billion spending impact on the state,
supports 527,000 jobs, and creates $3.11 billion in tax
revenue for state and local governments—more than
is provided to the CSU in direct annual state support. The
CSU in effect pays for itself
CSU confers 65 percent of California’s business baccalaureate
degrees, 52 percent of its agricultural business and agricultural
engineering baccalaureate degrees, 52 percent of its communications
baccalaureate degrees, and 45 percent of its computer and
electronic engineering baccalaureate degrees.
Copies of CSU Legislative Reports and other legislative information
pertaining to the CSU are available on the AIR website at: http://www.calstate.edu/GA/
The CSU also trains the professionals needed to keep the
state running. It provides bachelor’s degrees to teachers
and education-related staff (87 percent), criminal justice
workers (89 percent), social workers (87 percent), and public
administrators (82 percent)
past issues at the CSU Business & Finance News archives.
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