Chancellor's Recent Speeches
Auxiliary Organizations Association Annual Conference
Good evening, and thank you for inviting me to speak here tonight. I
hope that all of you had an enjoyable, relaxing holiday. And I hope that
you're as anxious as I am to get started on a new year - or a new millennium,
if you want to call it that - with lots of exciting opportunities ahead.
When Steven Bloom invited me to speak at this meeting, I was struck by
something he said in his letter. He told me that the "Odyssey" theme of
this year's conference represented auxiliaries' "journey into the future."
He said that this group wanted to hear me talk about where the system
is going and how we can work together - because, as he put it, the auxiliaries'
success "depends entirely on how well our journey is aligned with the
I want to thank him for saying that, and I want him to know that the
feeling is mutual. The better we work together, the more we can accomplish
as a system.
Part I: Performance/Cooperation Over Past Year
I want to begin by sharing just a few highlights from the past year.
All in all, 2000 was a great year for the California State University:
- In the 2000/01 budget, the CSU received a $333.7 million general fund
increase, our largest increase ever. Over the last three years, we have
received budget increases totaling $834 million.
- The CSU reached a four-year partnership agreement with Gov. Davis
that will provide us with stable funding increases and additional investments
in our priority areas.
- Tidal Wave II brought our Fall 2000 enrollment to roughly 370,000
students. This represents our second-highest enrollment ever and our
sixth straight year of enrollment increases.
- State policymakers established a Cal Grant entitlement program, which
will provide financial aid opportunities for thousands of hard-working,
low-income students. It will reward both need and merit, and it will
eventually grow to a $1.2 billion dollar program. This program represents
a financial aid landmark and makes California a model for the nation.
- The CSU continues to be one of the most diverse higher education institutions
in the country, with minority enrollment at 53 percent. Eight CSU institutions
are among the nation's top 20 universities in terms of baccalaureate
degrees awarded to minorities.
- The CSU continues to prepare more graduates in business, engineering,
agriculture, communications, health, education, and public administration
than all other public and private California colleges and universities
- The CSU continues to prepare nearly 60 percent of California's teachers.
- Last summer the CSU teamed up with the University of California to
provide professional development in reading, math, and technology for
about 70,000 California teachers.
- The CSU continues to support K-12 schools and students. Last year,
we distributed 80,000 college-preparation posters to high schools and
middle schools around the state. These posters help students and their
parents understand what it takes to go to a college or a university.
- Over the past year, CSU faculty have been recognized with grants and
awards from such organizations as the National Science Foundation, the
Fulbright Program, and the White House.
In short, we are doing some great things in this system. This is a system
on the move. But we have to keep that momentum going. And all of you and
your organizations are an important part of that momentum.
I want to take this opportunity to thank you for all of your hard work
and cooperation over the past year.
Last January, I talked about some of the changes I would like to see
in the auxiliaries and in your relationship with the CSU. I'm glad that
so many of you took those words to heart. I'm also pleased that you found
more ways to work closely with the CSU. For example:
- Investments: Last year, I spent some time talking about auxiliary
investments - specifically, our new fixed income investment pools for
state funds and the equity investment program. I also asked our auxiliaries
to continue to be prudent with their investment strategies. I appreciate
that so many of you have paid close attention to this issue.
- Collective Bargaining: Over the past year, we have had to deal
with collective bargaining issues, notably the Wildman Bill (AB 1935).
The Auxiliary Organizations Association's efforts in responding to AB
1935 and developing the guidelines that the university is using to respond
to the survey demonstrates how we can be successful working together.
This is an area where your cooperation is extremely helpful and much
Part II: Issues on the Horizon
In the same spirit of communication and cooperation, I want to spend
a few minutes talking about some of the issues that we foresee on the
- Continued growth for the CSU: As I mentioned earlier, the Tidal
Wave II enrollment surge continues to be one of the biggest issues facing
the CSU. We're expecting an increase of about 130,000 students over
the next 10 years, which will bring our student population to roughly
a half-million students. That's about 11,000 to 13,000 new students
each year. We're going to need to make room for them by operating during
more hours of the day, more days of the week, and more days of the year.
Continued growth for the CSU means continued growth and expanded opportunities
for auxiliaries. In particular, year-round operations should provide
many new opportunities for service.
- Audits: Our Board of Trustees remains interested in accountability,
and it will continue to look at audits of auxiliaries. As I discussed
last year, the state auditor believes that the campus has a fiduciary
role with regard to all activities carried out the in the name of the
CSU. The public does not know the difference between the university
and the auxiliary when they hear about university expenditures. They
see them as one and the same - and I hold our presidents accountable
for that. It is in the interest of our students and the CSU mission
- as well as good business practice - to ensure that our performance
measures up to our standards. So I thank you for your continued cooperation
on this issue.
- Donor Names: I'm sure many of you have been following the situation
at Fresno State, where a Superior Court judge has just ruled for the
public release of the names of donors to the Save Mart Center. We will
be appealing that decision.
I want you to know that in Florida we had some of the most liberal open-record
laws in the nation. But we were able to get an exemption for our donors.
I believe if we could do that in Florida, we could do it anywhere. We
have some models that we think can pass the test.
- Land Use: Our Board of Trustees and the Governor have raised
the issue of how we use land for entrepreneurial projects. While these
projects are important, we need to be aware that these questions are
Are we using the lands entrusted to us by the state appropriately, to
meet our most important needs?
Is an Internet switching center the best use of state land?
Do we need a separate classroom building to meet the needs of extended
Is a stand-alone official building for the campus foundation the best
use of our limited land?
Over the past few years, we have actively promoted public-private partnerships.
Now we have to take stock and make sure we're entering into the right
partnerships. We need to ensure that our partnerships add value to our
We will also be looking at our total debt capacity structure - not debt
in isolation of the total.
- Call for Greater Accountability: An overall theme that we are
seeing in Sacramento is a greater emphasis on accountability for our
universities. In fact, when the CSU signed the partnership agreement
with Gov. Davis, accountability measures were a key component. All of
the issues I have mentioned, along with the Wildman bill, point to the
fact that Sacramento is looking at our auxiliaries very carefully. This
is a sign that we need to hold ourselves to the highest possible standards
I thank you for your efforts thus far and I urge you to remember that
this is a top priority in Sacramento.
- Ten Percent: All CSU presidents are expected to generate at
least 10 percent of their general fund budget in fund-raising. In order
to build a "margin of excellence," we need to move beyond what is expected.
I believe the difference between being good and being great lies in
this kind of challenge. If we're going to excel, it won't be a matter
of what we receive from the state. It will grow out of what we can do
Part III: Unity for the CSU
Finally, as I told this group last year, and as I have told many other
CSU groups over the past year, we are a part of a massive, diverse institution
that is spread out over many miles. The only way we can carry out our
mission is if we have a sense of purpose and unity.
This means that we can't compare ourselves to other institutions like
the UC. We have to stop these comparisons, stop wishing we were more like
another institution. We are not the UC. We have our own unique mission
and it is our job to carry out that mission, not anyone else's.
When some people hear me say that, they ask me why the CSU is pursuing
an effort to offer an education doctorate degree.
My answer to that is, we're not trying to act like the UC and we're not
trying to compete with the UC. We're trying to satisfy the statewide demand
for an accessible, affordable route to an education doctorate.
We believe that we can use our vast experience in teacher preparation
to help people - especially working teachers - who are unable to attend
a UC campus full-time or cannot afford to attend a private university.
When I say we need to work with purpose and unity, it also means that
we need to stop thinking of "us" versus "them" within the CSU. We need
to work as a team. That means students, faculty, staff, administrators
- and auxiliary organizations as well.
And finally, it means that we need to be positive about what we do and
why we are doing it.
I believe that our auxiliary organizations help us build pride in the
CSU better than just about any other group, and I encourage you to keep
up that positive spirit.
I look forward to another good year of cooperation and collaboration
with all of you and your organizations.
And I hope we can continue this successful "journey" together, because
the CSU is one of the best universities in America.
Thank you very much. I will be happy to take any questions you have.
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