A summary of the May 14-15, 2002, Board of Trustees Meeting
CSU Budget Cut Still Provides for Continued Student Access May Revise Offers Slight Increase for EnrollmentUnder the May Revision to the state's 2002/03 budget released this week, Gov. Davis has proposed a general fund support budget of $2.758 billion for the California State University. The revised budget includes one-time cuts but adds revenue to fund more than 20,000 additional students in 2002/03.
"We appreciate the governor's continued commitment to meet the California State University's escalating enrollment demand by adding another 1 percent for student growth," said CSU Chancellor Charles B. Reed. "The budget still leaves the CSU with unmet needs, but in this harsh budget climate we realize that it is not possible to meet all the system's requests."
The May Revise increases the governor's January budget for the CSU by $19.5 million for a 1 percent growth in student enrollment. This is on top of the 4 percent for growth proposed in the governor's January budget. However, the May Revise reduces the CSU's base budget support by $43 million in one-time cuts in long-term needs such as technology, libraries, maintenance and equipment.
The governor proposes total cuts of about 2.5 percent, or $50.4 million, which includes the $43 million and also $6 million to eliminate funding for the Educational Technology Professional Development Program. Plus, the governor also proposed to convert the Governor's Teaching Fellowships from direct grants to loan repayments, which in effect is a $21 million funding shift.
"At this point, these cuts are manageable," said Richard West, CSU executive vice chancellor and chief financial officer. "Higher education so far has been spared drastic reductions, which means we should be able to provide access to students and not reduce student services, which is our goal."
Overall, the governor's May Revise addresses California's projected $23.6 billion gap between expenditures and revenues through the 2002/03 fiscal year, or 30 percent of the general fund. The governor proposes to address the shortfall through a combination of spending reductions and revenue increases, as well as fund shifts, loans, accelerations, transfers, and deferrals.
The governor's budget now goes to various legislative committees, which will take action on the proposal over the next two months. The budget is supposed to be signed by July 1, but in this budgetary climate, that may not be possible. May Revise.
Trustees Approve 15 percent increase in nonresident tuition feesThe trustees, with two dissenting votes, approved an increase in nonresident tuition fees, effective fall 2002. A full-time student, taking 15 units per semester, would pay an annual cost of $8,460, up from the current $7,380. Nonresident students also pay the annual State University Fee of $1,428, plus campus-based fees.
The new nonresident fee would be $282 per unit per semester and $188 per unit per quarter. The current fee is $246 per unit per semester and $164 per unit per quarter. This is the first increase in nonresident fees since fall 1991. Even with the increase, CSU fees are the third lowest among 15 public institutions used by the California Postsecondary Education Commission for comparative purposes. The fee increase will provide $11.7 million in additional revenue that will assist in funding CSU budget needs.
Student Trustee Dan Cartwright spoke against the increase, saying that students should not have to make up for budget shortfalls. Conversely, Trustee and Vice Chair Murray Galinson said that California taxpayers should not subsidize out-of-state students, and that they should pay fees closer to the cost of education, which is more than $10,000 per student.
Chancellor Reed talked about the process of consulting student and faculty leaders about the proposed increases, and stressed that nonresident fees have not been raised since 1991. He called that "not the best policy to follow," since it meant higher one-time raises rather than predictable increases. Reed said that CSU would review the fee policy over the summer to look at periodic adjustments, perhaps tied to the campus catalog that students enter under every four years.
Faculty Trustee Harold Goldwhite agreed that a predictable, reasonable and sensible process for fee increases would make sense, but voted for this increase because of the current budget situation.
There are approximately 10,000 students affected by the new tuition increases.
Trustees Endorse Education Bond ActThe Trustees unanimously endorsed a resolution supporting the education bond act that will appear on the November 2002 and March 2004 ballots. Over the four-year period, the $25.3 billion measure will provide $4 billion to the state's higher education institutions – the California State University, University of California and California Community Colleges. The bulk of the funds will go to the state's K-12 schools.
Funds will be used to build classrooms, libraries and laboratories, as well as additional construction and technological upgrades. Current bond funding runs out June 30, 2002, so passage of a new bond is essential to higher education's construction needs. Voters will be asked to approve a $13 billion bond issue this November and another $12.3 billion in March 2004.
Trustees Elect New OfficersThe new chair of the CSU Board of Trustees is Debra Farar, who had been the board's vice chair and a trustee since 1999. Farar, a long-time education consultant and former advisor to the previous lieutenant governor, holds bachelor and master's degrees from Cal State Northridge and a doctorate from Pepperdine University.
In her remarks, she called the CSU trustees "the best board of higher education in the country…. As trustees and leaders of the CSU, we need to remember that we have an important leadership role not just here in California but in serving as a model for the entire country. I want to let all of you know that I consider serving on this board a wonderful honor, a great privilege, and an enormous responsibility. I pledge to all of you that I will continue do my best to carry out that responsibility."
Elected as vice chair is Murray Galinson, chairman of the Board of San Diego National Bank. He also serves on the boards of several foundations, including the Galinson Family Foundation, Weingart Foundation and Price Family Fund. He has been a member of the board since 2000.
Elected to chair various board committees are: Audit: Shailesh Mehta; Campus Planning, Building and Grounds: Ralph Pesqueira; Collective Bargaining: Bob Foster; Educational Policy: Roberta Achtenberg; Finance: Bill Hauck; Governmental Relations: Murray Galinson; Institutional Advancement: Fred Pierce; Organization and Rules: Harold Goldwhite; and University and Faculty Personnel: Martha Fallgatter. Appointed to the California Postsecondary Education Commission was Trustee Tony Vitti; the alternate is Ralph Pesqueira.
Ratification of CFA ContractTrustees ratified the collective bargaining agreement reached between the CSU and the California Faculty Association. The three-year agreement approved by the CFA membership on March 26, 2002, provides a 2 percent faculty salary increase for each fiscal year 2001-02 and 2002-03, and additional selected raises for 2002-03. The agreement would be in place through June 30, 2004. Agreement Details.
Wang Excellence Awards PresentationChair Farar and Chancellor Reed presented the CSU Wang Family Excellence Awards to faculty and administration members Wayne R. Bidlack of Cal Poly Pomona, William Dorman of CSU Sacramento, Margaret McKerrow of San Diego State University, Herbert Silber of San Jose State University and Hallie Yopp Slowik of CSU Fullerton. They were also honored at a dinner that night at the State University House.
The Wang Award was established in the fall of 1998 with a $1 million donation by former Trustee Stanley T. Wang to reward outstanding faculty and administrators. Each recipient receives a $20,000 check. Wang's donation is the largest gift ever given to the CSU system office by an individual.
Annually, during a 10-year period, four faculty and one administrator throughout the CSU system will receive a $20,000 award. This is the fourth year the awards have been given. A press release on the subject is available here.
The Trustees Approved:
The Trustees Heard:
Last Updated: 16 May 2002