from the Departments
Message From The Executive Vice Chancellor
West , Executive Vice Chancellor and Chief Financial Officer
Lenz, Assistant Vice Chancellor
Planning, Design and Construction
F. San Juan, Assistant Vice Chancellor
Hordyk, Assistant Vice Chancellor
Technology Services (ITS)
Ernst , Assistant Vice Chancellor
and Institutional Relations
Y. Zamarippa, Assistant Vice Chancellor
MESSAGE FROM THE EXECUTIVE VICE CHANCELLOR
West , Executive Vice Chancellor and Chief Financial Officer
fall several departments from Business and Finance (BF) were
joined by the Office of General Counsel (OGC) in asking both
campus and Chancellor’s Office colleagues to comment on
the quality of customer service provided. In addition to OGC,
the departments that participated in the survey were: Advocacy
and Institutional Relations; Budget; Capital Planning, Design
and Construction; Contract Services and Procurement; Financial
Services – Accounting; Financing and Treasury;Information
Technology Services; and Sponsored Research.
results of the survey and the department response have been
posted to the web for your review. The BF results are located
and the OGC results are at http://www.calstate.edu/GC/survey/2005_survey.shtml.
Business and Finance division began implementation of a Balanced
Scorecard approach to continuous quality improvement in 2002-03.
Periodic solicitation of feedback from customers is a key component
of the scorecard. The Office of General Counsel has done two
previous customer surveys, and was pleased to coordinate its
with Business and Finance.
feedback was thoughtful and constructive, and will be helpful
in ensuring these Chancellor’s Office departments are
giving attention to the activities or issues that benefit the
campuses and the University as a whole. For those who participated
in the survey, thank you very much.
Lenz, Assistant Vice Chancellor
The Governor’s January budget and May Revise proposes
$219,346,000 in state General Fund support and student fee revenue
to fund the 2006-07 CSU budget. Overall funding is proposed
Enrollment Growth (8,490 FTES): $70.8 million Employee Compensation
Pool (3.46%): $94.0 million
Mandatory Costs: $36.2 million
Long Term Need: $10.0 million
Student Financial Aid Grants: $6.2 million
K-12 Math/Science Teacher Recruitment: $1.1 million
Recruitment of Nursing Faculty (May Revise) $1.0 million
Senate and Assembly budget subcommittees have yet to take final
actions on the operations budget, however, both houses have
approved the CSU request for capital facilities projects in
2006-07. The remaining issues for the budget subcommittee include:
Marginal Cost funding per Full-Time Equivalent Student (FTES)
Enrollment Growth – Approving the 2.5% in the Governor’s
budget and supporting budget bill language that would provide
some flexibility to achieving the annual enrollment target.
Nursing Programs – Consideration of budget bill language
for Masters Level Nursing Programs, approval of May Revise
funding for Nursing Faculty Recruitment, and possible budget
augmentation to increase nursing programs at the Baccalaureate
Academic Preparation – Restoration of $7 million for
academic preparation and student services programs.
Math/Science Teacher Recruitment programs
Once the budget subcommittees complete their actions, the full
budget committees from each house will hear the budgets and
the recommendations to be considered. Both houses will send
their respective budget bills to a two-house conference committee
that should begin on or about June 1st, in an effort to meet
the July 15th constitutional deadline to have a budget back
to the Governor for his review and approval.
PLANNING, DESIGN AND CONSTRUCTION
F. San Juan, Assistant Vice Chancellor
Training Program 2006:
are five training programs remaining for calendar year 2006.
On July 26, there will be a course on Property Development
with Auxiliaries, California Environmental Quality Act (CEQA)
Procedures, and Off-Site Mitigation. This program is designed
for campus planners, facility administrators, and auxiliary
staff responsible for implementation of real estate development
projects through the CEQA process and approval by the Board
of Trustees. It will be presented by Land Use Planning and
Environmental Review (LUPER) and General Counsel staff. Following
that session, A Crash Course in the Review of Plans and Specifications
will be offered by Architecture and Engineering staff
July 27. This class is geared to provide project managers,
building coordinators, and other responsible campus parties
with a framework to review plans and specifications effectively
at each phase of project development. These programs are both
being presented for the first time and will be held at the
complete training calendar, session details, and online registration
are available at http://www.calstate.edu/CPDC/Trg2006.shtml.
Freelander-Paice, Executive Program and Fiscal Manager
1D (Kindergarten-University Public Education Facilities Bond
Act) will be on the November 2006 ballot. It seeks voter support
for general obligation bond funds of $10.4 billion. CSU’s
proposed share is $690 million, or $345 million per year to
fund the 2006/07 and 2007/08 programs.
The Senate Budget and Fiscal Review Subcommittee No. 1 approved
all 19 CSU projects
included in the 2006/07 governor’s budget as reflected
in the April Finance Letter, and a new appropriation for the
Chico Student Services Center per an amendment to the governor’s
budget bill (total program $331.6 million). The Assembly Budget
Subcommittee No. 2 on Education Finance likewise approved all
CSU projects with the exception of $50 million for the Capital
Renewal Program. The Assembly is expected to consider the Capital
Renewal Program as part of the CSU support budget funding request.
The CSU Draft Five-Year Capital Improvement program for 2007/08
through 2011/2012 was presented at the March 2006 Board of Trustees’
meeting. State funded projects for the five-year program total
$5.6 billion, while non-state funded projects for this budget
period total $3.6 billion. In keeping with the Department of
finance (DOF) cost guidelines, the project cost estimates include
a five percent year to year cost increase, plus escalation in
materials costs from project start to the midpoint of construction.
This increase is expected to bring projects budgeted for the
2007/08 Capital Outlay Program in line with current market conditions
at the time of bid.
The draft 2007/08 CSU capital budget request of $429 million
for state funded projects prioritizes completion and equipment
for ongoing projects; new projects addressing life safety problems
and promoting code compliance in existing facilities; and renovation
projects that increase capacity and modernize existing facilities
or projects that construct new replacement buildings in response
to academic, support program needs and enrollment demand. The
CSU 2007/08 Capital Outlay Budget Change Proposals will be submitted
to DOF on June 2, 2006. The 2007/08 through 2011/12 Final Five-
Year Capital Improvement Program will be presented to the Board
of Trustees for approval by at the September 2006 meeting.
Piper, Chief of Facilities Planning
USE PLANNING & ENVIORMENTAL REVIEW (LUPER)
staff is preparing a white paper on the current state of Faculty
and Staff Housing initiatives around the CSU campuses. Campus
executives have requested this information in order to assess
the progress of the various housing programs that are in place.
These projects range from those completed and occupied, some
from direct purchase, and others from design to construction,
to some campuses that are still trying to determine what might
be the most effective and cost efficient concept with which
to proceed for their particular circumstance. The search to
provide reasonable cost housing for incoming faculty and staff
has shown that one size or type program does not fit all campuses.
The report will survey all existing and proposed housing programs
across the system, and will also evaluate the perceived benefits
and challenges posed by the different approaches in the difficult
financial and construction delivery environment of today’s
One important aspect under review for the long term is the operational
challenges and opportunities that come with having a residential
“neighborhood” of your own faculty and staff, perhaps
with other partners included, within the university proper.
CSU campus student housing operations are well established;
the same is not true with faculty and staff housing. There is
much to learn and evaluate from our current range of experience.
law requires CSU to obtain State Fire Marshal approval on fire
life safety elements and Department of State Architect (DSA)
approval for access compliance elements of capital projects.
CSU has long administered and self-certified the balance of
the California Building Code items including seismic and mechanical
several years CSU has worked to engage DSA in various strategies
to streamline access compliance reviews and approvals. For a
couple of years the university benefited from a memorandum of
understanding with DSA that allowed CSU to effectively self-certify
for access compliance. In 2003 DSA, feeling that they needed
a more direct role in the review, retracted this agreement.
Ensuing project review delays by DSA prompted the CSU to seek
legislative authority to self-certify for access compliance.
Despite projected time-related cost savings approaching $2 million
a year, access compliance advocates have derailed CSU’s
legislative proposals. For the second year language allowing
the CSU to self-certify has been pulled from the higher education
omnibus bill. In an effort to address the advocates concerns
CPDC met with the head of DSA, to gauge their opinions and understand
possitble objections. Key points from this
DSA acknowledges that it has a continuing backlog in plan
DSA acknowledges 65 plan reviewer staff vacancies.
DSA acknowledges its strategy is to outsource most access
DSA offered to take steps to provide an expedited determination/approval
for projects that do not pose accessibility issues such as
reroofing and other maintenance projects.
DSA continues to insist that it is the most appropriate body
to review all state projects for access compliance.
legislation efforts are restarted, CPDC will renew the current
agreement with DSA to secure their expedited certification of
submitted plans. This will require campus diligence to ensure
that plans submitted to DSA are code complaint. CPDC is confident
that the combination of the skilled private sector architects
commissioned for CSU design work, the plan review firms engaged,
and the efforts of CSU staff provides an effective framework
to ensure access compliance. Whether this year or in the future,
CPDC hopes to be able to demonstrate this convincingly to the
legislature. This would allow DSA the opportunity to concentrate
on it’s the pressing backlog of K-12 and Community College
reviews for which it is primarily charged.
Kennedy, Chief of Architecture & Engineering
ENERGY AND UTILITIES
Plant: The Pacific Partners Facilities Renewal Resource
Model (FRRM) database is a systemwide tool that assists in Capital
Renewal and Deferred Maintenance forecasting and budgeting.
It is updated annually to reflect changes in the physical campus
profile such as major capital renovations and capital renewal
projects. Training by Pacific Partners for campus staff is scheduled
June 20 at San Diego State University and June 22 at Cal Maritime.
All campuses will need to update their campus data in the model.
This information along with the square footage reported in the
Space and Facility Database (SFDB), is used by campus planning
departments to justify capital programs. The campuses should
contact Mr. Jon Scheffler in CPDC at (562) 951-4634 or firstname.lastname@example.org
with any questions.
Towards Trustees’ Energy Goal:
Many campuses have taken steps toward achieving the trustees’
energy efficiency goal by implementing a variety of renewable
energy and infrastructure projects. Three campuses (Chico, Dominguez
Hills, San Luis Obispo) are implementing photovoltaic projects,
using power purchase agreements and third party financing. CSU
San Bernardino is using the new energy services agreement to
expand the central plant, adding thermal energy storage capacity
to meet the needs of the new College of Business building and
future campus growth. The central plant expansion at the CSU
Northridge campus will employ a one (1) Megawatt fuel cell to
augment campus electrical capacity. The fuel cell uses hydrogen
fuel cell technology, the first of its kind in the CSU and the
largest on a university campus. These projects will result in
two Megawatts of electricity being generated on campus, or 12%
of the targeted goal of adding 16 Megawatt goal to current production.
A new energy contract was awarded for the period June 1 through
December 31, 2006 at the excellent strike price of $74.24 per
MWH, which includes 17% renewable energy. Energy Efficiency
Partnership: CSU review committees have approved projects for
the first year of funding from the 2006-2008
Additional project applications have been sent to the campuses
for final review and completion Campuses should note that there
is keen competition for the $17 million available incentives
over the next two and half years and project applications should
be submitted as they are developed.
Pettis, Chief of Plant, Energy & Utilities
Builders Risk Insurance Program: The CSU Builders Risk
Insurance Program is in effect for all projects with a construction
value greater than $400,000. Procedures, forms and contract
language for this program are available on the Construction
Management web site http://www.calstate.edu/cpdc/CM/.
Note that the requirement for builders risk insurance coverage
on minor capital outlay projects and job order contracts has
been removed. The campuses should contact Barbara Nicholson
in CPDC at (562) 951-4117 with any questions.
Corsar, Chief of Construction Management
Assistant Vice Chancellor
SERVICES AND PROCUREMENT (CS&P)
of the responsibilities of Contract Services and Procurement
(CS&P) at the Chancellor’s Office is to develop system
wide agreements by leveraging the buying power of the CSU campuses,
including campus auxiliaries and foundations. There are many
agreements that are available for use by the organizations within
the CSU. These agreements range from office supplies to technology
equipment to consulting services. A complete list of the agreements
is located at: http://www.calstate.edu/CSP/Store/store.shtml
CS&P is continuously developing more agreements as university
needs are identified; some of the agreements that are currently
being negotiated are:
Long distance phone and web teleconferencing services
repair and operations supplies
regarding the agreements or ideas for future agreements are
always welcome. Please contact Tom Roberts at email@example.com
or Eddie Choy at firstname.lastname@example.org.
Incentive Program: DVBE Incentive Program: A new Disabled
Veteran Business Enterprise (DVBE) incentive program, mandated
by Senate Bill 115, is now in effect. It helps the CSU, and
all state agencies, better meet annual DVBE contracting participation
goals of at least 3%. Bidders for construction, goods and services
(IT and otherwise) may be given a financial incentive to meet
the goal: the more DVBE participation a bidder offers, the higher
the incentive a bidder might receive on a bid. This incentive
may be in the form of points in an evaluation or a percentage
of price. The CSU will have the flexibility to determine both
the form of the solicitations. CS&P has already implemented
/tested the incentive program in a variety of bids and successfully
achieved additional DVBE participation as a result. The Chancellor's
Office will issue a new policy, very shortly, to guide campuses
on implementation of the incentive program.
Please direct questions to Darryl Dearborn, Contract Specialist,
SB/DVBE Advocate. Information on Chancellor’s Office and
system wide bids can be found at the web site: http://www.planetbids.com/csuco/bidframe.cfm
administrative details, and plans to expand the coverage
to include service learning are in
on Chancellor’s Office and system wide bids can be found
at the web site: http://www.planetbids.com/csuco/bidframe.cfm
information can be obtained at: http://www.calstate.edu/csp/
or by contacting Tom
Roberts at email@example.com
or (562) 951-4583.
and Treasury is making the first loans to campuses for CMS financing
beginning June 1 2006 from its new tax-exempt commercial paper
program. Seven campuses will be participating in this first
round of loans. Regular equipment and additional CMS financing
amounts will be available with the second commercial paper issuance
of September 1, 2006, and quarterly thereafter. The rate that
has been set for these loans for fiscal 2006/07 is 4.40%.
This rate will be reset annually.
and Treasury is pleased to announce that Syrus En has joined
our staff as Financial Manager. Syrus replaces Walter Marquez
as the day-to-day representative to the auxiliary organizations
for issues involving financing and debt, as well as acting as
the Chancellor’s Office and campus contact on equipment
financing. Syrus holds an MBA from CSULB, and a bachelor’s
degree in Business Administration/Finance from CSULA. For the
past two years he has been working as a consultant to Next student,
a student loan processor. Additionally, he has worked in a variety
of banking and financial analyst positions at Hawthorne Savings,
Student Education Loan Marketing, State Street Bank International,
and Fuji Bank. He was also an associate at Seidler-Fitzgerald
Public Finance, an investment banking and financial advisory
firm. Syrus brings to F&T some very strong analytical
and financial skills and we are delighted he has joined our
Colleen Nickles, Senior Director
OF RISK MANAGEMENT
CSU is pursing a systemwide professional liability policy for
students participating in nursing, allied health, and education
credentialing programs. Recent meetings with the underwriters
have been productive and the CSU is finalizing a methodology
to have “certainty of contract” before committing
to this important placement. Efforts are also underway to address
administrative details, and expand the coverage to include service
learning are in development.
iVOS 4.0 Database Update:
The CSU successfully upgraded the iVOS (claims software) Claims
Management System for General Liability. ORM sponsored web-based
training for campus risk managers on the new iVOS Claims Management
System for General Liability and included basic functionalities
such as system access; viewing claims data, and using the reporter
function. Additional training will be provided to the campus
risk managers during the year and at the Fitting Pieces Conference
in November 2006.
the Pieces Together”: The 2006 Conference will
be held at the Hilton Arden West in Sacramento on November 6-8,
and will include exciting keynote speakers and breakout sessions.
Additional details on the conference will be forthcoming.
New Website: The ORM
website was launched this month and includes information on
the CSU’s risk management programs and campus contacts,
upcoming training opportunities, and links to relevant policies
and procedures. The website can been viewed at http://www.calstate.edu/risk_management/.
Minnick, Senior Director
TECHNOLOGY SERVICES (ITS)
David Ernst, Assistant Vice Chancellor
Build-Out Project - Stage 1 and Stage 2:
Only one of the fourteen Phase 1 and Phase 2 campus projects
has yet to be completed, and that campus is now reporting significant
success in renewing construction after a major hiatus resulting
from contractor and capital funding problems. Two Phase 3 sites
have already closed out their Stage 1 retrofits, and the remaining
six campuses in that final program phase are all pursuing active
construction schedules. In summary, fifteen of the twenty-two
campus projects in the build-out program have been completed,
and the final seven are all making substantial progress. Schedule
projections still indicate that Stage 1 should be completely
finished in the early months of 2007.
2: All campuses have either completed or are actively engaged
in Stage 2 activities. Pomona and Sacramento are the most recent
campuses to complete their network electronics design and installation
activities. This brings the total number of campuses that have
completed their Stage 2 projects to fourteen.
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.)
Terminal Resources Project - Refresh (ITRP 2): ITRP
2 is the first refresh cycle for the network electronics installed
as a part of Stage 2 of the Technology Infrastructure Build-Out
Project. The refresh will enable campus networks to stay current
with network technology and address evolving requirements. ITRP
2 will include the following technology areas of focus:
Routing and switching (providing network
connectivity and data transfer)
Wireless networking (providing users with
connectivity without having to ‘plug in’ to a
Network security (preventing unauthorized
Network management (providing software to
allow efficient operation and management of
ITRP 2 planning is well
underway in these areas, with a primary focus on network security.
The network security working group of the Network Technology
Alliance (NTA) issued a Request for Information (RFI) to network
security device manufacturers in late January. The working group
is currently analyzing the testing and evaluation results. In
late May, the group will recommend which equipment manufacturer
best meets the CSU’s needs. It is intended that network
security equipment will be installed on all campuses by June
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.
March 30, an ‘NMS Summit’ was held at Sonoma State
University; eleven campuses participated. The purpose of the
summit was to evaluate CSU’s NMS strategy, and provide
campuses the opportunity to discuss NMS usage and value. Participants
recommended investigating the use of Regional Network Centers.
In this model,the
hardware and application would be hosted on a few campuses that
would provide operating system and application support. Other
campuses would continue using these resources as they do today.
TIS staff will work with the newly formed CSU Systems Technology
Alliance, as well as the CSU Network Technology Alliance, to
begin defining the requirements for this service.
Infrastructure Asset Management System (NIAMS): The
Network Infrastructure Asset Management tool is a software application
that allows campuses to maintain records of their network infrastructure
by keeping track of where cables and equipment are located on
the campus in both a graphical and database format. Campus users
at beginner and advanced levels were recently trained on the
software tool by TIS centralized application and database support
center personnel. Los Angeles and San Luis Obispo implementations
are expected to begin in June. The next campuses to begin implementations
will be Monterey Bay and San Jose in July.
Access Infrastructure Initiative (CAI): The Campus
Access Infrastructure Initiative (CAI), the system-wide program
that will install and maintain the infrastructure required to
connect each campus local area network (LAN) to the CENIC wide-area
network backbone (WAN), is well underway. The Enhanced GigaMAN
circuits for Chico and San Jose State were installed and put
into production in May. Circuits for Bakersfield, Long Beach,
and San Diego should be put into production in early June. The
Chancellors Office, Channel Islands, Maritime Academy installations
are scheduled in late summer.
and Access Management Initiative (IAM):The Information
Technology Advisory Committee (ITAC), in cooperation with the
Chancellor’s Office, has defined the objectives of the
Identity and Access Management Initiative (IAM), a system-wide
program chartered with developing and defining the architecture
for secure access and data management at the campus level. The
mission of IAM is to enable users to access and exchange information
from campus-to-campus, campus to other institutions (e.g., K-14),
and campus to business (e.g., on-line library materials), while
maintaining security standards and user accessibility permissions.
director, Beverly Thornton, completed recruitment of campus
representatives to serve on the Identity and Access Management
Initiative Technical Architecture Group. The kick-off meeting
occurred in March. The group will develop a high-level technical
plan, with an emphasis on finding the best ways of addressing
common campus identity management needs. A similar group will
focus on the business process and policy needs of the functional
areas across campuses. A charter of the initiative’s governance
structure is in development and will be presented to the CSU
Technology Steering Committee for final endorsement in the near
screening for the Identity and Access Management Technical Architect
position is underway.
Architecture (EA): The Enterprise Architecture (EA)
program will provide a more comprehensive technology planning
and guidance mechanism, which will help ensure that the CSU
is aligned to meet the challenges of expanding needs for data
and services, increased requirements for maintenance and support,
and emerging technology changes.
from a variety of CSU IT initiatives and the Information Technology
Advisory Committee (ITAC) attended an initial exploratory meeting
in early February. Participants identified a need for greater
campus participation and a more precise definition of the program’s
scope. In response, the EA program will implement a rolling
strategic technology plan that includes campus and systemwide
IT initiatives, facilitate the development of specific segment
or initiative architectures (such as Identity and Access Management,
Security, Information Management), and formulate a plan for
the long-range initiation of an Enterprise Architecture process
across the CSU.
CSU EA Steering committee includes four campus CIOs [Bill Post
(Chico), Wayne Veres (San Marcos), Tim Kearns (Cal Poly SLO),
and Maureen McQuestion (Channel Islands)], and the senior directors
of major systemwide IT initiatives [Mark Crase (Technology Infrastructure
Services and Identity and Access Management), Janice Lim (Security),
Gerry Hanley (Academic Technology- Digital Marketplace), Cheryl
Kwiatkowski (Enterprise Information Management), and Mike McLean
(Enterprise Systems Development)].
MANAGEMENT SYSTEMS (CMS)
Update: In May, the CMS Executive Committee approved
a change to the upgrade project by deferring current activities
on the Finance 8.9 and replacing it with Finance 9.0. This decision
was based on feedback from the campuses, and analysis of other
systemwide projects in progress that would impact Finance baseline.
Activities are underway to develop the scope and project plan
for the upgrade to Finance 9.0 and will be completed by December
2006. The Finance team will continue to provide production support
in preparation of the campuses completing their year-end close.
Administration Update: The Student Administration (SA)
go-live activity remains on schedule for the campuses. East
Sacramento are on schedule for their Human
Capital Management (HCM) 8.9 go-live for May 2006. CSU Sacramento,
CSU San Bernardino and CSU East Bay are on schedule for their
8.9 Student Administration implementations. San Luis Obispo
is currently live for their Financial Aid and continuing a phased
rollout through the year with additional functionality. Student
Administration baseline 8.9 workshop was held on May 23, 24
and 25 at the LAX Crowne Plaza Hotel.
TECHNOLOGY SERVICES (ATS)
Program of Loans for Education
(APLE) Website Launched: In
a effort to help CSU Schools of Education publicize an important
financial aid opportunity for students, ATS partnered with the
Chancellor’s Office Teacher Education team to develop
the APLE website. (http://www.csusuccess.org/scholarship).
APLE is a teacher education incentive program designed to encourage
students to become California teachers in subject areas and
in schools that have critical shortages. The program assumes
up to $19,000 in outstanding educational loan balances in return
for four consecutive years of qualifying teaching service. In
the last two weeks since the website launched, it has helped
over 900 students apply for an APLE loan forgiveness grant.
ADVICE AND POLICY
Report at Board of Trustees: On
the occasion of the 10th anniversary of Board of Trustees approval
of The Integrated Technology Strategy (ITS), Chancellor Reed
and Presidents Welty and Rosser presented an overview of how
investment in ITS has benefited CSU students, faculty and staff.
Please visit http://breeze.calstate.edu/p44695359to
hear the presentation and view the accompanying
of Success: The annual Campus Technology Survey was
released to the campuses in early April. Responses are due on
August 1, 2006.
AND INSTITUTIONAL RELATIONS
Y. Zamarippa, Assistant Vice Chancellor
Package Placed on November Ballot: The Legislature
has introduced a series of bonds for the November ballot that
will address many of the state’s infrastructure needs.
Propositions 1-A through 1-F each propose a bond that will address
a specific issue.
1-D, dubbed “the Education bond” will fund the CSU’s
capital facilities projects for the next two years at $345 million
each year. Assembly Bill 127 (Nunez) authorizes the Kindergarten-University
Public Education Facilities Bond Act of 2006 in the amount of
$10.4 billion. $7.3 billion is for K-12 facilities including
new construction, modernization, charter schools and career
and vocational education programs. $3.087 billion is for higher
education facilities. Community colleges will receive 50 percent
of these funds or $1.507 billion. The University of California
will receive $890 million of which $200 million is for medical
education programs with an emphasis on telemedicine. The CSU
will receive $690 million or 25 percent of the bond funds for
fiscal years 2006-07 and 2007-08 for its capital outlay program.
addition, lawmakers voted to authorize five other bond measures
to relieve highway congestion, provide affordable housing, emergency
preparedness and shore up the state’s deteriorating levees.
The entire bond package is just over $35.3 billion including:
$19.2 billion for transportation; 10.4 billion for schools and
universities; $ 3.1 billion for flood protection and $2.6 billion
for housing. Six measures in all have been placed on the ballot
First is an amendment to Prop 42 making it more difficult
for transportation dollars to be diverted for other government
uses as Prop 1-A;
Second is the transportation bond as Prop 1- B;
Third is the Emergency Housing, Community Planning and Farmland
Preservation Act of 2006 as Prop 1-C;
Fourth is education as Prop 1-D;
Fifth is flood protection as Prop 1-E; and • Sixth
is the “Safe Drinking Water, Water Quality and Supply,
Flood Control,and Supply, Flood Control, River and Coastal
Protection Bond,” currently being certified for placement
on the November 2006 ballot. It would become Proposition
1- F. That bond is $5.388 billion bringing the total bond
amount to $40.7 billion.
Facilities Fee Bill Meeting Some Resistance: The CSU
in conjunction with coalition partners from public schools,
community colleges, universities and state agency have been
working diligently to defeat Assembly Bill 2951 (Goldberg),
legislation which would fundamentally change current law regarding
the imposition of capital facilities fees on public agencies.
legislation would increase the CSU’s facilities related
charges by up to 35 percent, a cost to the CSU almost $4 million
each year. It significantly impacts the already strained budget
that has yet to recover from over $500 million in cuts imposed
in prior years. Further, this legislation runs contrary to CSU’s
understanding of an eighteen year-old statute governing the
imposition of capital facilities fees that grew out of a court
case, San Marcos Water District v. San Marcos Unified School
District, which was a compromise between public utilities services
and public school districts, community colleges districts, CSU,
UC, and state agencies.
expected, Assembly Member Goldberg got AB 2951 out of Assembly
Local Government Committee, but only after extensive discussion
and only then on a 5-0-2 vote.
opposed to the bill, CSU offered two concepts that it is willing
to accept: 1) some type of “government” class rate
that has the capital facilities fee component removed from the
rate (it must have the transparency to allow CSU to determine
that the fee is NOT part of the rate class) or 2) some regulatory
scheme much like the PUC where the municipals need to justify
their rate development to an independent body that can protest
CSU concerns and issues before the rate is approved. The utilities
are not likely to entertain either one of those ideas.
2951 will be referred to Assembly Appropriations, which is a
first for the Assembly because the prior measures have always
been keyed “non fiscal” and have never been referred
to Appropriations. It will be heard Wednesday, May 24th but
will most likely be placed on suspense given the $4 million
estimated costs to CSU as well as another $6.7 million and $8.5
million for the California Community Colleges and the University
of California, respectively.
2951 makes no sense given the State’s limited fiscal resources.
The CSU would need to increase facility-related charges by up
to 35 percent that would cost the CSU an additional $4 million
annually. This is equivalent to funding more than 5,570 students,
480 new tenure-track faculty, or 3,840 courses over the next
ten years. Schools and universities should NOT be asked to subsidize
the costs of utility district capital improvements, especially
when these utilities continue to amass billions of dollars in
excess reserves The CSU continues to oppose AB 2951 since it:
takes money away from schools;
requires CSU and other publicly entities to pay for facilities
that don’t serve us;
circumvents the state and local budget processes; and
creates a lack of accountability and oversight of publicly-owned
of CSU Legislative Reports and other legislative information
pertaining to the CSU are available on the AIR website at: http://www.calstate.edu/GA/
past issues at the CSU Business & Finance News visit
the CSU Business and Finance
Questions related to receiving the B&F Newsletter or changes
in e-mail addresses should be directed to Majjie Smith at (562)
951-4554 or firstname.lastname@example.org.