The new president of California State University, Sacramento, has stirred up controversy for going ahead with a renovation of his campus office while students face steep fee increases and faculty and staff are anxious about layoffs.

Workers have gutted President Alexander Gonzalez's office in Sacramento Hall: moving and painting walls, rewiring for computers and telephones, and installing new lights. New carpets, furnishings and other finishes chosen by Gonzalez should be in place by mid-August. The renovation is expected to cost $165,000.

Gonzalez, in his fourth week as president, said the office is in the oldest building on campus and had not been updated for nearly 20 years.

As the primary venue to hold meetings and host dignitaries and would-be donors, the office suite needed a dramatic makeover, Gonzalez said.

"Now is the best time to do it with a new president coming in," Gonzalez said. "The concerns are valid, but I have to make decisions, and this is one I made. If you want me to do my job, I need an office and environment to do my job.

"This is small potatoes compared to the millions of dollars that are not going to be available because of the \[state\] budget cuts," he said.

No student fees are being used to pay for the face-lift, and no money is being pulled from operating funds. Rather, the money comes from the campus' capital outlay budget, university officials said.

The remodeling work -- easily heard and seen from inside and outside Sacramento Hall -- has cranked up the rumor mill on campus, with students and faculty alike hearing about exorbitant figures being spent on the renovation.

While the price tag is far less, critics questioned the importance of remodeling an office space during such tough fiscal times.

"\[Gonzalez\] is new and we need to give him the benefit of the doubt," said Jim Chopyak, president of the CSUS faculty union. "But to spend that kind of money considering the budget climate, fee increases and potential for job layoffs ... it does make you question the CSU's priorities."

University officials said the renovation had been planned for some time as part of a list of "deferred maintenance" projects. Former President Donald Gerth -- recently retired after 19 years -- did not make the project a priority, said CSUS spokeswoman Ann Reed.

Hosting breakfast or lunch events required the campus catering service to serve food in the corridor outside the office. Giving a sophisticated electronic presentation in the conference room was impossible, Reed said.

Peter Ucovich, a CSUS senior and president of the Associated Students, said the remodeling had provoked lots of talk on campus, particularly among students who are worried about shelling out 30 percent more for fees this fall. Two weeks ago, the CSU Board of Trustees enacted the increase, saying profound state budget cuts had left them no other choice. That hike came on top of a 10 percent increase adopted last winter.

"In the short run, it is a little alarming because of the budget situation," Ucovich said. "But in the long run, to have \[Gonzalez\] move out of his office and then renovate would cost even more. I'm concerned, but it's not a huge red flag."

University officials said the criticism is understandable, but unfounded.

"We understand that the timing doesn't look good," Reed said. "But students are not paying for this."

Gonzalez, who established a reputation for political savvy and relationship building with the community during his six-year presidency at CSU San Marcos, said the revamped office is necessary for him to do the same in his new job.