A Summary of the July 15-16, 2003, Board of Trustees Meeting

Board Approves 30 Percent Fee Increase

(July 18, 2003) Trustees of the California State University voted to increase undergraduate student fees by $474 and graduate fees by $522 annually. CSU board members said the university needs the additional revenue to preserve educational quality and student access as the system absorbs an anticipated cut of at least $330.2 million in its 2003-04 budget.
The increase brings the annual undergraduate state resident fee to $2,046 for the academic year commencing in fall 2003. Including the average campus-based fee of $498, the total annual undergraduate fee will be $2,544.
Even after the increase, CSU’s undergraduate fees will continue to be the lowest in the nation when compared to similar public higher education institutions.
Under the new fee structure, graduate students will pay $2,256 and out-of-state undergraduate students would pay $11,004 beginning this fall.
To cope with the fiscal impact of budget cuts, the CSU has developed contingency plans to reduce enrollment growth by 2 percent. About 8,000 students will not be admitted to the CSU during the winter and spring terms. These students may reapply in fall 2004.
Financially needy students will not be deeply impacted by the fee increase, as one-third of the revenue raised by the fee increase will be set aside for financial aid, according to long-standing board policy. After the fee increase is applied, there will be a $90.3 million increase in CSU State University Grants, and a $3.8 million increase in Cal Grants.
For additional information, see full news release.

Smoking Policy Update

Trustees heard an update on what policies have been adopted at each campus to mitigate exposure to secondhand smoke, such as changes in non-smoking zones around facilities, clearance around entrances and windows, prohibitions in walkways and breezeways, and designation of smoking areas. This follows a September 2002 delegation of authority to campus presidents to adopt rules regulating smoking on campus. For more information, see committee agenda.

Budget cuts are the largest in CSU's history

Patrick Lenz, CSU’s assistant vice chancellor for budget development, told trustees that the system should recognize, at a minimum, a net $330.2 million cut, which is $69.5 million higher than Gov. Davis’ January budget proposal. He said that this level of cuts represent a bi-partisan agreement in the legislature.
This year’s budget cut is the largest single reduction in CSU history, said Lenz. Based on the expected cuts and the 30 percent student fee increase approved by the trustees on July 16, the state’s average support per full-time-equivalent student has decreased $586 since 2001.
Total unfunded costs and reductions to the CSU are expected to reach $517.2 million. They include unfunded mandatory costs of $78 million, a permanent reduction in long-term needs of $43 million, budget reductions of $326.1 million, and legislative reductions of $69.5 million.
Part of theses reductions would be offset by new revenue from student fee increases and funds provided by the state to support over-enrollment. The balance will be made up through position cuts, restrictions on travel, new equipment purchases and student enrollment decreases.
“The CSU has been planning for 14 months a combination of measures to meet impending budget cuts,” said CSU Chancellor, Charles B. Reed. “As a result of this disciplined effort the system will be able to accomplish as many as 2,300 job reductions by attrition, freezing of positions and not rehiring temporary employees.”
Under this scenario, faculty positions would be reduced by 3.9 percent and other employee categories by 11 percent. The Chancellor’s Office already has cut its expenses by $4.5 million including the elimination of 40 positions.
The system plans to slow new student enrollments by 2 percent--about 8,000 students. This will be achieved by not accepting applications at some campuses for the 2004 winter and spring terms. These students, however, would be able to apply in fall 2004.

Report Shows Preliminary Success in Curbing Alcohol Abuse

In the two years since the California State University Board of Trustees adopted the nation’s most comprehensive systemwide student alcohol policy, preliminary results indicate that significant changes have occurred.
A preliminary comparison between a base survey taken in spring 2002 and the most recent survey taken in spring 2003 provides a string of promising indicators:
· A 5-10 percent reduction in alcohol use
· A 5-10 percent reduction in underage students consuming alcohol within a 30-day period
· A 3-5 percent decline in binge drinking
· A 10-15 percent decline in student alcohol-related misconduct
· A 20-25 percent reduction in the number of alcohol-related judicial cases
· A 3-5 percent reduction in property damage caused by excessive drinking
· A 30 percent reduction in alcohol-related incidents in resident halls
· A 20-30 percent reduction in driving-under-the-influence occurrences.
One of the keys to the policy’s success is the flexibility provided to the 23 campuses to tailor an approach matching their unique campus situation, since each campus varies in size, student body makeup, local community, and residence provisions.
To help launch the effort, the Chancellor’s Office has provided more than half a million dollars of matching grants to the campuses for a total of $1.1 million to support alcohol education, training, and prevention programs. Campuses have also drawn in outside support funding of more than $3 million. Much of this funding has come about as a result of the groundbreaking state compact that the CSU signed with six state agencies involved in combating alcohol abuse.
Innovative and effective campus programs and policy changes include
· Using “fatal alcohol goggles” which simulate the effects on a person of over-the-limit alcohol
· Providing alternative spring break and Friday night programs to give non-drinkers new ways to celebrate and relax
· Creating a birthday card campaign that encourages students nearing their 21st birthdays to celebrate safely
· Launching a “Did you Know?”campaign showing students how to spot and respond to symptoms of alcohol poisoning
· Reducing student exposure to alcohol promotion by enforcing posting policies, prohibiting alcohol advertising, or encouraging organizations to seek alternative funding for their events.
The text of the biennial report can be found as part of the Committee on Educational Policy’s July 2003 Agenda. Included in this comprehensive report is what each campus identified as its single most effective program. For more information, see full news release.

The Trustees Also Approved:
· Naming the Lifelong Learning Institute at Sonoma State University the Osher Lifelong Learning Institute in honor of the Bernard Osher Foundation which has been a major contributor to the Institute.
· Amending the 2003/04 Capital Outlay Program, Nonstate Funded to include eight projects: Child Development Center and Infant Toddler Center at CSU Dominguez Hills; Parking Structure B at Cal State Fullerton; Pioneer Heights Phase II Student Housing at Cal State Hayward; Parking Office Building and Parking Structures 2 and 3 at Cal State Long Beach; Academic Support Facility at Cal State Northridge; Parking Lot M Expansion and Parking Structure I at Cal Poly Pomona.
· Certifying the Final Environmental Impact Report and Campus Master Plan Revision at Cal State Long Beach.
· Approving schematic plans for University Village Phase III at Cal Poly Pomona and Parking Structure III at CSU Sacramento.
· Accepting 2003/04 Legislative Report No. 4.
· Revising Title 5 Regulations to amend the California State University Conflict of Interest Code to make current the list of designated positions required to file statements of financial interests.
· Committee assignments for new Trustee Alice Huffman.
· Issuing systemwide revenue bonds and related instruments for a Residence Apartment Building Improvement Project at San Francisco State.
· Authorizing the Chancellor to enter agreements with American Campus-Titan to develop student housing on private property adjacent to Cal State San Bernardino.
· A statement of continued interest in a proposed contractual relationship for additional student housing and the acquisition of land at Cal Poly San Luis Obispo.

The Board also approved resolutions conferring the title Trustee Emeritus on departing trustees William Campbell and Martha Walda, commending departing Student Trustee Erene Thomas, and conferring the title President Emeritus on departing presidents Manuel Esteban, Donald Gerth, and Bob Suzuki.

The Trustees Also Heard:
· Recognition of the recipients of the 2003/04 William R. Hearst/CSU Trustees Award for Outstanding Achievement. For more information on Hearst winners, see www.calstate.edu/pa/news/hearst03.shtml.
· The Annual Report on CSU compliance with the California Environment Quality Act.
· The Annual Report on Active Capital Projects in the CSU.
· A status report on the 2003/04 State Funded Capital Outlay Program.
· A status report on Current and Follow-up Internal Audit Assignments.
· A status report on the Bureau of State Audits Report on the Common Management System.
· A proposed revision to Title 5 to establish guidelines for Integrated Teacher Preparation Programs, which blend teacher preparation with baccalaureate degree programs.
· A report on Notable Accomplishments in CSU Teaching, Research and Scholarship: The Desert Studies Center.