A summary of the November 13-14, 2001, Board of Trustees Meeting

CSU Faces Budget Crisis

Chancellor Charles B. Reed asked CSU presidents to make a one percent, one-time reduction in their total current year General Fund budgets. The request gave each president the flexibility to determine how to meet this reduction. The savings should be accomplished by the end of FY 2001-02. Systemwide, the one percent equals about $25 million.

Chancellor Reed also directed the presidents to continue hiring tenure-track faculty as planned but to institute a partial hiring freeze for all other non-tenure track and non-instructional positions. The chancellor told the presidents to use their discretion to grant exceptions to the freeze based on an assessment of a position's direct contribution to the CSU's educational mission.

The budget saving measures are in response to an Executive Order by Governor Gray Davis requiring state agencies to freeze hiring and to reduce current year general fund spending by at least $150 million.

Anticipating a shortfall in state revenue next year, Chancellor Reed told CSU presidents to prepare for future budget cuts and be cautious in making any large financial commitments that extend into the upcoming year. "In developing your plans for next year, you should consider how you could meet cuts of 5% or more while still maintaining our commitment to essential projects," Reed said.

Trustees appointed a special subcommittee of the Committee on Finance to advise the chancellor and the board on budget matters. The subcommittee will be chaired by Trustee Bill Hauck.

The CSU Board of Trustees had approved on Oct. 25 a 2002/03 budget request providing a $245.4 million General Fund increase over the adjusted current year appropriation, and $23.7 million increase in fee revenue from new students for a total revenue increase of $269.1 million. That 9.4 percent increase would raise the total CSU budget to $3.7 billion.

Anticipating dramatic increases in enrollment due to the slowing economy, the budget plan calls for funding to allow a 4 percent increase of 12,030 full-time equivalent students (FTE). "More students want to enroll in the university during economic downturns," said Reed.

The budget plan will be forwarded to the State Department of Finance for inclusion in the governor's budget that is released in January. Revisions by the governor and legislators during the spring could mean changes to the CSU budget plan. At this point, there is no plan to increase student fees, which are among the lowest in the country.

The CSU is developing its budget based on the partnership with the governor that calls for specific increases in General Fund money to support enrollment growth, compensation and other programs.

Record Number of CSU Graduates become K-12 Teachers

Ninety-six percent of CSU teaching credential program graduates are working in K-12 schools, helping to alleviate the state's teacher crisis, according to an evaluation presented to the Board of Trustees.

This means that 19 of every 20 graduates of CSU teaching credential programs were hired and are still teaching in schools throughout California one full year following their graduation.

"This rate is exceptionally high compared to that of other states and educational institutions," said CSU Chancellor Charles B. Reed. "It is a very positive result considering other reports of high attrition in the teaching profession."

In 1999-2000, more than 10,500 teachers graduated from 21 CSU campuses from Humboldt to San Diego. California will need 300,000 new teachers for K-12 schools over the next 10 years.

A record 81 percent of the elementary school teachers received high marks from their supervisors regarding their level of preparation to teach reading skills. And 80 percent of the school principals favorably evaluated the university's preparation of elementary teachers in math.

Furthermore, 86 percent of the supervisors -- school principals, vice-principals and department chairs -- offered positive evaluations of the university's preparation of teachers for grades 9-12.

School supervisors also said that 84 percent of the graduates are confident, responsive and supportive in their interactions with parents.

"The survey shows that our universities prepare new teachers effectively, and that CSU graduates do well during their first challenging year in the public schools," said CSU Executive Vice Chancellor and Chief Academic Officer David S. Spence.

When the new elementary teachers were asked about the same issues, 74 percent said they felt prepared to teach reading-language arts. And 70% believe they are prepared to teach math following the new standards of math teaching set by the state.

In high schools, 74 percent of the new teachers from the CSU believed they were prepared to begin to teach their subject area.

"A substantial majority of our graduates feel they are ready to teach," said Spence. "These percentages are especially positive when it is recognized that these are first-year teachers who are bound to feel some level of apprehension during the initial year in a very challenging school environment."

For full news release, see www.calstate.edu/pa/news/2001/TeachEval.shtml

CSU and UC Partner to Jointly Offer Ed.D.s Statewide

The California State University and the University of California have reached agreement to jointly develop, implement and fund educational doctoral programs that will provide better access to high quality, affordable Ed.D.s for California's students.

"This is a win-win situation for the California State University and the University of California, but even more, it will be of significant benefit to students in all regions of the state," said CSU Chancellor Charles B. Reed. "The most important aspect is that we will be serving the needs of K-12 and community college leaders who want to continue their own education, which in turn will further the education of their students."

A joint CSU-UC board will be created that will solicit, develop, fund and expedite proposals for new Ed.D. programs. The joint board will be co-chaired by CSU Executive Vice Chancellor Spence and UC Provost and Senior Vice President C. Judson King. Both CSU and UC will contribute $2 million each over the first two years to fund the proposals, and are committed to developing programs that meet the educational leadership needs of specific regions across California.

Programs could begin as soon as fall 2002, said Chancellor Reed, stressing that the agreement is a "co-equal partnership."

According to the California Master Plan for Higher Education, the University of California has the sole public authority to offer the doctorate, but in the mid-1960s, UC and CSU partnered to offer a few joint programs. CSU currently offers 17 joint doctoral programs in conjunction with UC campuses or private California universities. Three of the 17 are Ed.Ds and the rest are Ph.D. programs.

For full news release, see www.calstate.edu/pa/news/2001/EdD.shtml

In Other Action:
The Trustees Approved:

  • Amending the 2001/02 Nonstate Funded Capital Outlay Program to include a Public Safety Building at Sonoma State University.

  • Revising policies and procedures for the review of executives.

  • Reappointing the Ad Hoc Committee on Off-Campus facilities.

  • Proposed revisions of Title V regulations regarding DVBE participation goals for professional bond services.

  • Certifying a Mitigated Negative Declaration, approving Campus Master Plan revision, and amending the Nonstate Funded Capital Outlay Program and approving schematic plans and tax-exempt auxiliary financing for a proposed 475-bed on-campus student housing facility at CSU San Marcos.

  • Accepting a gift of real property--the UNOCAL Pier at Avila Beach, California for use by Cal Poly, San Luis Obispo.

  • Schematic plans for a parking structure at CSU Northridge.

  • Naming the Leadership Development Center at CSU Bakersfield the Rayburn S. Dezember Leadership Development Center in honor of longtime university supporters Rayburn S. Dezember and his wife Joan.

  • Naming three locations at CSU San Bernardino's Palm Desert Campus: the student union and bookstore will be named the Rancho Mirage Student Center in recognition of the city's $1 million gift, the garden area will be named the Betty Barker Sculpture Garden, at the request of the H.N. and Frances Berger Foundation, which donated $1 million, and a building wing will be named the Annenberg Wing for Education in honor of the Annenberg foundation which gave $1.5 million.

  • The 2001/2002 Legislative Report No.5A.

  • Updated academic plans for fast-track program development for campuses at Fresno, Long Beach, and Stanislaus.

  • Providing management personnel plan public safety employees the same "3% at 50" retirement plan now available to represented public safety employees.

  • Providing presidents and systemwide executives with a 2 percent compensation increase.

The Trustees Heard:

  • A final report on CSUN's earthquake recovery, which was a video showing new and rebuilt buildings. More than $400 million damage was done to the campus in the January 1994 quake.

  • The biannual Litigation Report (No. 14).

  • A report on issuance of auxiliary organization tax-exempt financing at CSU Sacramento for construction of the Regional and Continuing Education Facility.

  • Proposed auxiliary organization tax-exempt financing at San Francisco State University for purchase of 153 residential apartments and the refinancing of an obligation incurred in purchasing 27 apartment units.

  • A presentation on the development of an Enhanced Capital Management Plan for the Trustees Revenue Bond Program.

  • The annual investment report of funds held in CSU trust accounts.

  • The annual student fee report detailing campus student fee levels.

  • A status report on current and follow-up internal audit assignments.

  • A report on construction auditing in the CSU 2000/01.

  • Revision of Title 5, California Code of Regulations, to reflect current policy and practice on work assignments and catastrophic leave donations.

  • Reports on 2001/2002 University Advancement Campus Plans and on systemwide University Advancement activities.

  • A proposed change in Title 5 regulations on the refund of fees and nonresident tuition to clarify procedures, increase efficiency and bring regulations in line with new federal requirements.

  • A forward-looking higher education report from the Statewide Academic Senate. [To see the report, go to www.calstate.edu/acadsen/csu_21stcentury.pdf.]

  • A presentation on proposed financing for CSU Fullerton Foundation to provide for improvements of a leased building at the former El Toro air base for an off-campus center was postponed until a later date.

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    Last Updated: 19 November 2001

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