Chancellor's Report

to the Board of Trustees

March 21, 2001

Thank you Chairman Gould. I appreciate that report and your kind words.

I also want to thank Long Beach State for hosting us this morning. Bob - please give special thanks to all of your staff who worked so hard to host a successful meeting here on campus.

To the faculty, staff, and students who are able to join us today - welcome.

I also want to join Chairman Gould in his appreciation for Trustees Razi and Hauck:

• To Ali - You have served us well and we are grateful for your generosity and commitment. Your help with the Trustees' Scholarship has inspired all of us.
  
  
• To Bill - We have been honored by your service and we hope that we will be seeing you here again.

New Presidents

I want to thank our trustees for the outstanding work they did in finding us two new presidents.

Dick Rush and Bill Eisenhardt are nationally respected leaders who will bring experience and enthusiasm to their new positions at CSU Channel Islands and the Maritime Academy.

We look forward to welcoming them to the CSU family.

Budget

The CSU has testified about its 2001/02 budget before the Senate and Assembly budget subcommittees.

We are waiting to hear what will happen with the May Revise.

We are continuing to push very hard for an additional 2 percent increase for faculty and staff compensation (above the 4 percent proposed by Gov. Davis) to bring our total compensation pool to 6 percent. We're also looking for an additional $12 million for student services.

Bond Issue

Proposition 1A, which was a reliable capital outlay funding source for four years, runs out next year.

We are requesting authorization for a new four-year bond in 2002 - ideally on the March 2002 ballot.

We are looking for a bond that would provide the CSU with at least $330 million each year - a total of $4 billion to serve the three higher education segments for four years.

This bond will help us with badly needed renovations, repairs, and new construction.

Energy

We are still concerned about the future of our energy costs.

You may have seen some news articles about our contract with Enron Energy Services.

We have a good relationship with Enron, and Enron and their corporate leadership have committed, as far as the cost of electric power to us, through the term of the contract of March 2002.

But we have a disagreement about direct access, which includes their meter on our campuses.

We are going to continue to work that through. The UC is very concerned about their future energy costs if they lose the direct access. We are working to ensure that Enron honors its commitment to the fourth year of its contract.

Also, we continue to be concerned about the rise in natural gas prices. Potentially this is going to eat away at our budget faster than anything else. We have asked the governor and legislature for a total of $41.1 million to recognize increased natural gas prices for the current year and for 2001/02.

These and other energy issues could have a major effect on current and future budgets.

Education Doctorate

As you heard in Dave Spence's presentation, the CSU has launched an effort to secure the right to grant an education doctorate (Ed.D.).

We know that California needs more Ed.D.s in its K-12 schools, community colleges, and university schools of education.

Our state's existing private and public programs tend to be costly, inaccessible to working students, and lacking in diversity.

We believe that the CSU can offer the access, affordability, and high-quality expertise that no other college or university in the state can offer.

Governor's Teaching Fellowships

Last Friday in San Jose we joined Gov. Davis in honoring the first Governor's Teaching Fellows.

This program offers $20,000 fellowships to students to pursue a teaching credential, as long as they teach for four years in a low-performing school.

The CSU was proud to be chosen to administer this program.

We selected 250 fellows this year. From now on we will choose 1,000 fellows per year.

Miscellaneous

• I want to thank President Welty and his staff for their work on the event center in Fresno.
  
  
• Congratulations to President Lyons for receiving the Franklin H. Williams Award from the Peace Corps. The award is given to those who served admirably in the Peace Corps and then went on to serve their communities. Dr. Lyons served in the Peace Corps in Ecuador in the late 1960s.
  
  
• Congratulations to CSU Dominguez Hills for receiving an award from the American Association of Colleges for Teacher Education (AACTE) for promoting diversity in teacher education.
  
  
• Congratulations to Sacramento State for being chosen to host the U.S. Track and Field Olympic Trials for a second time. They will host the trials for the 2004 Olympics.
  
  
• Congratulations to the CSU Northridge Matadors and the Fresno State Bulldogs for reaching the NCAA Division I basketball championships. These teams represented us well on the national stage - at the "big dance."

Cal Poly 100th Anniversary Resolution

Next, I would like to ask Chairman Gould and President Baker to join me up at the podium.

Over the past 100 years, Cal Poly San Luis Obispo has served the state of California and its students with academic excellence.

Cal Poly has earned a national reputation as a university that offers outstanding academic programs at an affordable price.

Through its teaching, research, and outreach to the community, Cal Poly exemplifies the best that the CSU has to offer.

President Baker, on behalf of the California State University, I would like to congratulate you and your university on its 100th anniversary. We wish you many more years of success.

Mr. Chairman, that concludes my report.