The California State University Employee Update
Wednesday, July 13, 2011

Severe Budget Cuts Force Tuition Increases
Faced with unprecedented budget cuts, the CSU Board of Trustees this week increased tuition by an additional 12 percent effective this fall.

The board's action was precipitated by legislative passage last month of a final state budget that cuts state funding to the CSU by $650 million for 2011-12. The legislature had already approved a $500 million cut to the CSU in March and added $150 million more when the governor could not get the two-thirds legislative support needed to extend several temporary taxes that expired June 30.

CSU officials had indicated at the May trustees' meeting if the system was cut beyond the initial $500 million, it would be necessary to return to the board in July for tuition action.

"The enormous reduction to our state funding has left us with no other choice if we are to maintain quality and access to the CSU," said CSU Chancellor Charles B. Reed. "We will focus on serving our current students by offering as many classes and course sections as possible. We will also be able to open enrollment for the spring 2012 term, which is critical for our community college transfer students."

The CSU had already taken measures to address the initial $500 million cut, including reducing enrollment by approximately 10,000 students, applying an estimated $146 million from tuition increases already approved for fall 2011, reducing campus budgets by a combined $281 million, and cutting the Chancellor's Office budget by nearly $11 million.

The 12 percent increase will raise tuition by $294 per semester for full-time undergraduate students, $339 for credential program participants and $360 for graduate students. One-third of the revenue from the tuition increase will be allocated for financial aid. This provision, combined with other grants and fee waivers, will cover the cost increase for nearly half of all CSU undergraduates.

Assistant Vice Chancellor for Budget Robert Turnage noted to trustees that the state budget proposes an additional $100 million mid-year cut to the CSU if state revenue forecasts are not met. That would represent a 27 percent year-to-year reduction in state support. University officials said they would have to review further options to address this possible mid-year cut.

If the additional cut is imposed, it would bring state support down to the 1997-98 level, with the CSU now serving an additional 90,000 students. More information.

Obama Appoints Dominguez Hills President to Advisory Group
President Barack Obama has appointed CSU Dominguez Hills President Mildred García to the President's Advisory Commission on Educational Excellence of Hispanic Americans. García is one of 19 individuals appointed to the commission, which will advise the president and U.S. Secretary of Education Arne Duncan on issues related to improving education opportunities and outcomes for Hispanics. More information.