Governor Proposes 4.5% Increase in CSU Budget

With the release of his 2002/03 California state budget plan this morning, Gov. Gray Davis has proposed a $116.9 million, or 4.5 %, general fund increase for the California State University. The proposed budget provides full funding for enrollment growth.

CSU leaders welcomed the budget proposal but remained cautious about the fate of the budget in the months ahead.

"This budget reflects how important higher education is to the future of our state, especially at a time of great economic uncertainty," said CSU Chancellor Charles B. Reed. "Fully funding our enrollment growth will be the key to providing educational opportunity to future generations of Californians."

The governor's proposed increase for the CSU, when combined with $20.9 million in projected fee revenue from enrollment growth, would bring the total CSU base state budget to over $3.5 billion.

The proposal includes an $87.9 million increase requested by the CSU to fund an additional 12,030 full-time equivalent students expected to enroll in 2002/03. The enrollment funding ensures that the CSU will be able to serve its new students with the faculty, staff, and course offerings they need.

At the same time, however, the CSU did not receive the funding it had requested for several priority areas. Although the CSU requested a 4 percent employee compensation increase, the governor's budget allows for only $22.4 million, or a 1 percent increase.

"This budget proposal, while responsive during these difficult times, still leaves us with certain unmet needs," said Richard P. West, the CSU's executive vice chancellor and chief financial officer. "We will continue to make the case for those needs in the context of the state's resources."

The final outcome for the CSU budget will continue to remain uncertain, with the governor and the legislature struggling to find ways to close an estimated $12 billion state budget deficit.

The next steps in drafting the 2002/03 state budget will include the release of a budget analysis by the Legislative Analyst's Office in February and a series of legislative budget hearings held from March through May. In May, the governor will submit a revised budget request based on the April forecast of state revenues (known as the "May Revision" or "May Revise"). Following completion of hearings and votes in each chamber, the legislature will then pass a budget bill for the governor's signature. The governor is set to approve the budget by July 1, the first day of the new fiscal year.

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Last Updated: 10 January 2002

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