A Summary of the January 28-29, 2003, Board of Trustees Meeting

External Support Increase Reported

However, the lagging economy resulted in mixed campus results, with a few campuses doing very well, while many campuses failed to meet all their fund-raising goals. San Diego State University set a CSU record as the first campus to raise more than $50 million in private voluntary support.

External support, which grew by 7.9 percent, includes both special revenue and voluntary support. Special revenue funds, totaling some $739 million, come from such sources as sponsorships, contracts, governmental grants, pledges, endowment income, bequest expectancies, property transfers, and pledges. Voluntary support, totaling $257 million, includes gifts from alumni, parents, corporations, foundations, friends, and other organizations.

A bright sport was corporate giving, which increased 31 percent, exceeding individual donations for the first time since 1995. Cash donations from individuals, historically the highest giving category, however, declined 15 percent, matching a nationwide drop in individual charity giving.

For additional details, go here.

Freshman Math and English Proficiency Report

Proficiency levels of California State University's freshmen who entered in fall 2002 increased to 41 percent, a 3 percentage point jump from last year and a notable 9 percentage point increase from 1998, when the CSU implemented a Board of Trustees policy to diagnose proficiency and begin early remediation at CSU campuses and public high schools.

"Proficiency improvements in entering freshmen signal that CSU's approach to resolving remedial problems of first-year freshmen is beginning to show results," said David Spence, CSU's executive vice chancellor and chief academic officer.

CSU-bound students are becoming proficient more rapidly in mathematics than in English. For example, 63 percent of fall 2002 freshmen were proficient in math, an increase of 9 percentage points from last year. Fifty-one percent of fall 2002 freshmen were proficient in English, a decrease of 3 percentage points from last year.

The CSU will be piloting a revised 11th-grade standards test this spring that should help improve the proficiency levels of students. "If it is successful, we think we can meet the trustee goals of decreasing the need for remediation to 10 percent of entering freshmen. We will have the senior year of high school and the summer for students to get fully prepared," Spence said.

For more details, go here. Statistical information is available here.

CSU Budget Update

The steep budget reduction comes at the very time the CSU is expecting to enroll 25,000 additional students in 2003, which is 7 percent higher than the current year. The governor has proposed a $150 million increase to CSU's budget for this enrollment growth.

"We have a tremendous challenge ahead, especially given that we are not anticipating any new revenue beyond what the governor has proposed," said West. "That is why we must do everything we can to preserve the governor's budget plan for the CSU, including the new enrollment funding and the proposed fee increases."

The cuts come on top of a $125.4 million reduction to the CSU's 2002/03 budget due to unfunded costs and mid-year reductions that forced the university system to increase student fees. Annual undergraduate fees were increased by 10 percent ($144) to $1,572 and graduate fees by 15 percent ($228) to $1,734. The fee increase will generate a net $20 million.

To make up for the substantial $34 billion state deficit, students may face a new fee increase in fall 2003. The 2003/04 budget proposed by the governor assumes annual fee revenue for the CSU of $212.2 million, which would be generated from the current year increase in student fees and an additional undergraduate fee increase of 25 percent ($396) and a graduate fee increase of 20 percent ($348).

West said that the CSU will conduct a series of special meetings over the next several months to consult with various constituency groups about the budget crisis. The System Budget Advisory Committee, which is made up of presidents, provosts, and other student, faculty, staff, and alumni leaders, will begin meeting monthly rather than four times per year. Similarly, the CSU Board of Trustees' Committee on Finance will begin meeting monthly rather than every other month at Board of Trustees' meetings.

Additionally, the CSU will convene a budget summit to be held in mid-March in Long Beach. Summit attendees will include campus presidents, campus Associated Student presidents, chairs of campus academic senates, and leaders from the Statewide Academic Senate and the California State Student Association.

Upper-Division Admission Policy Modified

The Trustees Approved:

• Recognition of the CSULA Emeriti Association's 25th anniversary.
• Naming the North Campus Library at CSU Long Beach the Steve and Nini Horn Center after long-serving former campus president and congressman Steve Horn and his wife Nina for their many contributions to the campus.
• Naming a planned facility at CSU Fresno the Downing Planetarium Museum in recognition of the contributions of the Downing family to the Planetarium.
• Adopting the Trustees Statement of Legislative Principles, which provide guidelines for the upcoming legislative session.
• Accepting the 2001/2002 Legislative Report No. 1.
• Adopting the CSU federal legislative program for 2003.
• The issuance of systemwide revenue bonds and related debt instruments for various projects.
• Auxiliary organization tax-exempt financing at CSU Chico to fund a new office building and to refinance existing debt.
• Public sector partnership in the development of a California Regional Crime Laboratory facility at CSU Los Angeles. The agreement would partner the campus with the City of Los Angeles, County of Los Angeles, and the State of California.
• Real Property development project at Cal Poly Pomona which would create at the campus Innovation Village the Southern California Regional Blood Processing Center for the American Red Cross.
• Amending the 2002/03 Capital Outlay Budget, Nonstate Funded to add seven projects: Recreation Center and Field House Renovation at Humboldt State University; Parking Structure II at CSU Northridge; Innovation Village Infrastructure Improvements and Red Cross Regional Headquarters at Cal Poly Pomona; Student Union Expansion at CSU San Bernardino; Student Health Services Building at San Diego State University; and real property acquisition at San Francisco State University.
• The assignment of functions to be reviewed by the Office of the University Auditor for calendar year 2003.
• Schematic plans for four projects: Parking Structure I at CSU Fullerton; the Los Angeles Regional Crime Laboratory at CSU Los Angeles; Student Union expansion at CSU San Bernardino; and Academic Hall II at CSU San Marcos.

The Trustees Heard:

• Recognition of Mrs. Katherine B. Loker for her contributions to CSU Dominguez Hills, including her recent $4 million pledge toward expanding the Loker Student Union.
• A presentation on University Advancement activities, including honors recently received from the Council for the Advancement and Support of Education, District VII.
• A report on the sale of systemwide revenue bonds in January 2003.
• A report on facilitating student success in achieving the baccalaureate degree. This will come back to the board for action in March.
• A report on Cañada/San Francisco State University Pathways Program.
• A status report on current and follow-up Internal Audit assignments.
• A report on construction auditing in the CSU 2001/02.
• A status report on the 2003/04 State Funded Capital Outlay Program—Governor's Budget.
• The annual report on completed capital projects.
• A report on the Systemwide Audit in Accordance with Generally Accepted Accounting Principles.