University President John Welty warned Fresno State's faculty and staff Wednesday of potential layoffs, more limited enrollment and still higher student fees in light of California's fiscal crisis.

Welty said in his annual address to the Spring Assembly that a midyear reduction in this year's state budget and Gov. Schwarzenegger's proposed cuts make "painful decisions" inevitable. The university already eliminated 10 management positions, including some in Welty's office.

He has taken satisfaction in the fact that California State University, Fresno, has otherwise managed to avoid layoffs.

"However," he told the assembly, "given the severity of the reductions we face, I cannot promise you ... that layoffs will not be necessary."

Not even Welty's assurances to professors sounded absolute: "I do not contemplate that we will be faced with layoffs of tenure-track faculty in the immediate future."

For now, he asked leaders in the campus faculty and administration to adopt emergency principles. Among other steps, they should consider consolidating or restructuring departments, programs and offices.

On the last point, Welty was asked about the future of the industrial engineering program in the College of Engineering and Computer Science. He said its future is in discussion "with a number of programs in that college."

The governor has proposed cutting $240 million, or 9%, from the CSU system's $2.65 billion budget. Welty said that could mean that 20,000 fewer students enroll at all CSU campuses and that "1,500 qualified students will not be served" at Fresno State.

Schwarzenegger's budget proposal, combined with a 2003-04 general fund cut of $531 million for the CSU system, leaves CSU smarting from a 28.8% reduction in funding for its students "in just two years," Welty said.

The impact of cuts is greater in Central California "where we must increase the educational level of our work force," he said.

He agreed with CSU Chancellor Charles B. Reed that the university's educational "quality cannot be sacrificed further."

Welty cited the need for a predictable, long-term system for setting fees: "We must also defend the importance of access for all segments of society to a high-quality education."

In outlining the steps Fresno State will take to cope with cuts, Welty asked each of Fresno State's schools, colleges and divisions to assume that it will receive 7.5% less funding in the coming academic year and to submit plans for the reductions by Feb. 27. Welty will hold a budget summit on campus next month.

Scott Johnson, Fresno State athletic director, said university sports will suffer some reductions. Only 10% of the athletic department's budget comes from state budget revenue, so the department is less affected than others by the revenue shortage. Johnson added that any increase in student fees saps money from Fresno State sports by increasing the amount required for athletes' scholarships.

Michael Gorman, dean of library services, said additional budget cuts would mean fewer book purchases and shorter library hours at Fresno State.