2005/06 Budgetary Challenges
are several critical challenges the CSU will monitor as decisions
by the state on spending priorities for 2005/06 are made.
These challenges are important as recovery from the budget
cutbacks of the past three years continues, and as the CSU
positions itself to fulfill the promise of the higher education
Master Plan in the years ahead. The following is a brief description
of these important budgetary concerns.
Off-Campus Centers ($3,000,000)
The state must address funding issues related to expansion
and growth of CSU off - campus operations. Off-campus facilities
provide instructional services where demand cannot be readily
accommodated by the main campus and where access to higher
education might otherwise be denied. The state has supported
the establishment of CSU off-campus centers because they are
an integral part of the “home” campus academic
program, offering upper division and graduate courses that
allow students to complete specific degree programs. By policy
approved by the CSU Board of Trustees under authority delegated
by state statute, these centers have no negative impact on
established higher education institutions in the region and
are created only when alternative instructional delivery is
insufficient to meet regional demand.
The state recognizes the importance of student access to these
centers by appropriating enrollment funding based on the CSU’s
ability to provide the same quality of service students receive
at main campus sites. However, although the CSU receives enrollment
funding on the margin for instructional services at these
off-campus sites, such funding does not support—and
there are currently no state funding appropriations that provide
for—the fixed requirements for instructional space and
space maintenance, library and other academic support, admissions
and record evaluation workload increases, development and
expansion of student services activities, and institutional
administrative and non-faculty staff support workload as enrollments
at these state-approved centers reach traditional increased-cost
Funding is needed currently to address fixed-cost needs at
three off-campus centers that have reached critical thresholds
of enrollment demand. Such funding would re-establish the
state’s commitment to support the total cost of student
access and would acknowledge the CSU’s long-range goal
to have programs and services in place to address the educational
needs of future generations of students in areas not traditionally
served by higher education institutions.
CSU Initiative to Facilitate Graduation ($8,910,000)
addition to its strong commitment to serve all eligible students
who apply for admission, with an overall graduation rate of
60 percent, the CSU also recognizes the importance of successful
completion of the baccalaureate degree. Study after study
has shown that college graduates have better health, are more
active in the community, engage in more cultural and social
activities, earn larger salaries, and find more professional
satisfaction than those who do not earn the degree.
In March 2003, the CSU Board of Trustees approved a series
of recommendations made by a systemwide task force of faculty
and administrators studying methods to improve graduation
and degree completion at the CSU. Although the university’s
success in graduating students is comparable to—and
in many cases, surpasses—the graduation rate at peer
institutions, it is important that the CSU makes every effort
possible to have its commencement lines more closely reflect
its admission lines. Two strategic components of the task
force’s recommendations were: (1) campus “road
maps” to graduation for each undergraduate degree major;
and (2) the establishment of lower division transfer course
patterns for each undergraduate degree major. To implement
these recommendations and effectively serve native students
and transfers, the CSU’s need for student advising increases—especially
at the time of initial matriculation and, subsequently, in
the time periods immediately preceding class registration.
Progressive action that emphasizes the hiring of student service
professionals and peer-advising interns, along with reassignment
of full-time faculty workload to expand advising services
for lower division major pre requisites and course work, will
enable the CSU to reach out to roughly 300,000 students with
assistance that will significantly improve their chances of
attaining the baccalaureate degree. An investment of new resources
for the CSU Initiative to Facilitate Graduation would have
a permanent, continuing impact on the CSU’s commitment
to provide authentic access that ensures students are prepared
academically for enrollment and have the professional advising
and peer guidance needed to graduate.
Clinical Nursing Program Support ($5,124,000)
is facing a pressing need to dramatically increase the number
of nursing staff to care for its growing and aging population.
Master’s-prepared nurse educators are an essential resource
in preparing and training a nursing workforce that will provide
quality care to meet our health care needs over the coming
decades. The University of California San Francisco Center
for California Health Workforce Studies estimates that 43,000
additional registered nurses will be needed by 2010 to replace
an aging workforce and fill an increased demand. Intensifying
this need is a growing shortfall of master’s-prepared
nurses qualified to serve as faculty in accredited programs.
Several nursing programs throughout the nation have established
innovative Entry Level Master’s (ELM) programs that
offer an intensive three-year program leading to a master’s
degree in nursing for prospective students who have a non-nursing
bachelor’s degree (typically in a science-related field).
ELM programs are intended to provide pre-licensure and master’s
degree-level nursing education to candidates who already have
baccalaureate degrees in non-nursing, but typically science-related,
fields. These programs are generally structured as three-years
programs, with the first 18 months covering pre-licensure
requirements and the second 18 months covering course work
leading to the master’s degree.
The CSU has 14 campuses that offer master’s degree nursing
programs. Expanding opportunities at these campuses to offer
ELM programs would provide some remedy to heavily oversubscribed
pre-licensure nursing programs that have many qualified students
stuck on lengthy admission waiting lists. Expanding ELM opportunities
within the CSU would also address a growing shortfall of master’s-prepared
nurses qualified to serve as faculty in accredited programs.
Increasing the Number of Tenured and Tenure-Track Faculty
the California State University and across the country, there
is serious concern about the increasing numbers of temporary
faculty, as opposed to permanent (tenured and tenure-track)
faculty, in institutions of higher education. There is growing
alarm that recent hiring trends in higher education, necessitated
by budget deficiencies, have upset the appropriate balance
between tenured/tenure-track faculty and lecturer faculty.
The trend is important because tenured and tenure-track faculty
bear the primary responsibility for student advising, program
development and revision, and participation in shared governance.
In response to legislation passed in May 2001, ACR 73 (Strom-Martin),
the CSU Academic Senate, the California Faculty Association,
and the CSU Office of the Chancellor developed a plan to increase
the percentage of tenured and tenure-track faculty over eight
years. The final report and implementation plan contains the
- The report sets a goal to achieve 75 percent tenured and
tenure-track faculty to 25 percent lecturer faculty, measured
in terms of Full-Time Equivalent Faculty (FTEF) systemwide.
- The report declares that the goal is the joint responsibility
of the CSU administration and faculty, and the state.
- Annual funding requirements for this plan range from $5.8
million to $37.4 million over the eight-year period.
- To achieve this goal, the CSU must conduct between 1,800
and 2,000 annual searches for new tenure-track faculty.
- The state needs to provide expanded funding for recruitment
and hiring, so the CSU can compete in the national faculty
- The state needs to provide compensation funding for new
positions at least equivalent to the average of current
CSU employment offers.
Also, in response to the previously mentioned hiring trends
and concerns raised by the legislature in ACR 73 (Strom-Martin),
the 2005/06 CSU budget plan includes a request for $37.4 million
to implement the first phase of an eight-year comprehensive
eff o rt to increase the percentage of tenured and tenure-track
faculty. The plan includes:
Adjust Marginal Cost Graduate FTES Unit Load ($18,629,000)
Graduate full-time equivalent enrollment is currently counted
as 15 units per term in the marginal cost calculation that
funds enrollment growth. To be consistent with the UC and
national higher education institutions, graduate enrollment
at the CSU should more appropriately be counted
as 12 units per academic term in the marginal cost funding
CSU Employee Salary Costs ($243,448,000)
The impact of CSU compensation lags. The cost to hire new
faculty and professional, technical, and skilled staff, and
the inability of the university
to offer compensation increases that keep pace with the annual
rise in inflation or increases within the state and national
marketplace has begun to erode the CSU’s ability to
retain a highly motivated and qualified workforce. There are
critical salary-related concerns within a number of CSU classifications
that will require special attention in the bargaining process
if the CSU is to successfully negotiate contracts in the years
ahead. Additionally, a critical mass of CSU faculty and staff
have reached retirement age, and the CSU must strengthen its
salary base to compete for replacement faculty and staff demonstrating
the level of knowledge and expertise possessed by current
employees. In 2004/05, the faculty salary lag is calculated
by CPEC at 12.7 percent or a funding need of $168.9 million
to bridge this gap. Staff and management employees have not
received compensation increases for two years. During this
time period, government and private industry employees have
averaged 3.4 percent and 2.95 percent increases respectively.
The funding required to bridge this gap would be $75.5 million.
Deferred Maintenance, Libraries, Instructional
Equipment, and Technology ($137,149,000)
These additional areas of concern are also identified in the
2005/06 budget plan discussion:
- The CSU backlog in deferred maintenance currently approaches
$390 million. The backlog is exacerbated by annual inflationary
cost increases for completing repairs and budget shortfalls
that restrict the CSU’s ability to adequately fund
special repairs as buildings age.
- The CSU backlog in libraries currently exceeds $80 million.
The backlog in funding principally affects the CSU’s
ability to maintain and grow its core collection of materials
needed for student academic research.
- The annual cost of instructional equipment replacement
is roughly $46 million. The state-approved build-out of
CSU technology infrastructure requires over $67 million
for equipment to make the build-out functional.