Chancellor's Report

to the Board of Trustees

January 30, 2002

Thank you, Mr. Chairman. I want to join you in welcoming our new student trustee, Erene Thomas. Erene, we are glad to have you with us and we look forward to working with you.

I also want to thank San Jose State for hosting the first gubernatorial debate last week, and also our sponsors: the California Business Roundtable, the California Chamber of Commerce, and the California Correctional Peace Officers Association. That event brought a great deal of state and national recognition to the CSU. Thank you, Bob (Caret), and thanks to your staff for all of their hard work.

We will all look forward to the next debate at Cal State Long Beach on February 13.

I want to start with the budget, which continues to be a concern for everyone. As for the current year budget, the legislature is set to make cuts totaling $29.5 million from our budget. That is slightly better than the $35 million we had anticipated earlier, but it is still going to hurt. As for the 2002/03 budget, you saw Richard West's presentation yesterday, so you know what the situation looks like. It reflects $55 million in reductions. But we are going to support the governor's budget recommendations. We are very pleased that his proposal fully funds our requested enrollment increase. At a time when we are staring down Tidal Wave II and when more workers who were laid off are returning to higher education, we need this funding. It is a critical part of our ability to fulfill our mission. This year, due to Tidal Wave II and the slowing economy, we enrolled 8,200 more students than we expected. So we are going to have to watch our enrollment numbers for next fall very closely.

I remain concerned about the amount that this budget allows for employee compensation. Also on compensation, I am very pleased to report that all CSEA salary increases will be reflected in employees' paychecks by February.

Also, you heard an update yesterday on debt management plans. I just want to say once again how important it is that we get those in place.

As you heard this morning, we are holding steady on remedial education. But we need to see more improvement than we are seeing. We have contacted all of the presidents and provosts on each campus. We're going to look at this campus-by-campus. And I want to say that we are getting tremendous support from the State Board of Education and the Governor's Office on this. I continue to believe that outreach is the most important step we can take. We spent $9 million last year on our Collaborative Academic Preparation Initiative, and we have gotten a lot out of that $9 million.

Our campuses built partnerships with 172 of the California high schools that send us the most students needing remediation. Plus, nearly 200 CSU faculty members and 2,400 K-12 teachers participated in "faculty-to-faculty alliances" to align CSU and high school standards in English and mathematics. As we look ahead, one thing that will make a big difference is if we can combine our entrance exams with the California Standards Test in the 11^th grade. That will help identify students' areas of weakness earlier. But I want to say for the record that we have done more than just about any other university in the country when it comes to K-12 outreach. We have made it a priority and we will continue to do so.

As you heard yesterday, the CSU set a new record for external support last year. As Louis Caldera told us, we are seeing great returns on the investment that we have made in advancement. Our advancement teams, which are relatively new and are still growing, have done a remarkable job so far. I am very pleased that we have Louis Caldera at the helm. I know he will be helping us take a good look at how we can continue to grow and improve in this area.

I want to close with a few words about some appointments and awards: On Monday, President Bush named CSU San Marcos President Alexander Gonzalez to serve on the President's Commission for Educational Excellence for Hispanic Americans. The commission was created last October to form a multi-year plan to close the educational achievement gap between Hispanic American students and their peers. President Gonzalez is one of 17 leaders selected from around the country to serve on the commission. Congratulations, Alex.

Two of our faculty members have also received important recognitions. Pamela Vaughn, a San Francisco State University associate professor of classics and literature, recently won the 2001 Excellence in Teaching award from the American Philological Association. This is the most coveted teaching award for a classics scholar in the United States. Also, Richard Birkemeier, a professor of music at Cal State Long Beach, recently won the Louis Armstrong Fellowship Award from the International Association for Jazz Education. He was honored for establishing the Compton After-School Jazz Program. Through that program, he has brought music instruction to the Compton middle schools after budget cuts forced the schools to cancel programs. He will use the award to purchase much-needed musical instruments for the students.

I very am proud of both of these faculty members. They exemplify the best of what the CSU has to offer — outstanding teaching and dedication to students.

Mr. Chairman, that concludes my report.