A Summary of the January 27-28, 2004 Board of Trustees Meeting

CSU to Reduce Enrollment by 20,000 Students to meet Budget Cuts

(Jan. 30, 2004) In a presentation at the Board of Trustees meeting, CSU Chancellor Charles B. Reed discussed possible spending cutbacks to meet $240 million or a 9 percent reduction to the CSU budget as proposed by Gov. Arnold Schwarzenegger in his 2004-05 state budget.

“The only way to manage this reduction while maintaining quality is by reducing enrollment 5 percent on each CSU campus,” said Chancellor Reed. “That translates into 20,000 fewer students systemwide, and fewer classes and services.”

The Chancellor said he would like to avoid repeating the negative experiences of the early 1990s when budget cuts forced the system to reduce classes but the system did not reduced enrollment.
“That is the worst we can do. It clogs the system because students can’t get their classes needed to graduate and free up space for other students.”

The governor’s proposal also recommends redirecting 10 percent or 4,000 of CSU first-time freshmen to the community colleges. That 10 percent is part of the CSU’s systemwide enrollment reduction plan.

The chancellor also said he would like to keep the EOP programs, which the governor has proposed to eliminate, because they provide academic preparation for educationally disadvantaged students and add value to the CSU. “EOP participants generally graduate at a rate that is 30 percent better than if they did not have the intervention,” he said.

The governor’s proposed budget also calls for a stable fee policy for CSU students, and includes fee increases of 10 percent for undergraduate, 40 for graduate, and 20 percent for non-resident students.

“We support a predictable and reasonable fee policy,” said Chancellor Reed. “But we will review the percentage fee increases.”

The chancellor has expressed concern about the impact of the 40 percent fee increase on graduate students working on teaching credentials. “It may discourage aspiring teachers to enter or continue their programs at the CSU, which would result in fewer teachers at school districts,” he said.

Chancellor Reed told the Trustees that he would present a comprehensive package of measures to implement the spending cuts at the next meeting of the Board on March 16-17.

Schwarzenegger’s proposed cut, together with the 2003-04 General Fund budget cut of $531 million, brings the total two-year General Fund cut to the CSU to $771 million, or a 28.8 percent reduction in student support.

For further information, see release on budget.

Propositions 57, 58

Trustees endorsed a resolution in support of Proposition 57, the Economic Recovery Bond Act, and Proposition 58, the California Balanced Budget Initiative. Together, the propositions seek to address underlying state budgetary problems which have resulted in massive budget cuts, fee increases and enrollment limitations at the CSU and California higher education. Both propositions will appear on the March 2004 primary election ballot.

Proficiency of First-Year Freshmen Remains Steady

Trustees received the 8th annual student proficiency report for first-year freshmen entering the California State University in fall 2003. The report showed that math proficiency remained steady at 63 percent, and English proficiency increased from 51 to 52 percent from the previous year.

More importantly, 42 percent of first-time freshmen were proficient in both English and mathematics, an increase of 10 percentage points since 1998 when the CSU began testing proficiency and offering remediation classes on CSU campuses.

CSU Executive Vice Chancellor and Chief Academic Officer David Spence said that the proficiency rates for first-time freshmen entering CSU campuses in fall 2003 are far from a mid-point goal set by CSU Trustees for 2004 calling for math proficiency of 74 percent, and English proficiency of 78 percent.

However, Spence said he is confident that the CSU will reach the goal set by CSU Trustees for 2007, which sets proficiency at 90 percent for both English and math.

To reach the 90 percent goal, Spence has worked with the State Department of Education and the State Board of Education to develop an Early Assessment Program that includes an augmented California Standards Test in English and mathematics.

Taking the test will be voluntary for 11th grade students but it will be highly recommended for those who have aspirations to enroll in college. The test will be available to all California high school juniors in spring 2004.

Augmented tests results will be ready each year in August, and students will know whether they are exempt from taking the CSU English Placement Test and Entry Level Mathematics Exam. Students who do not achieve the exemption will be encouraged to improve their English or math skills during their senior year of high school and will be required to take CSU placement tests upon admission to a CSU campus.

“This early assessment program offers tremendous promise for college students,” said Cal State Los Angeles President James M. Rosser. “It promises success as the students approach professions that are critical for California’s future.”

The CSU also evaluated the progress of first-year freshmen who entered the CSU needing remediation and who took remedial English and mathematics at CSU campuses. Ninety seven percent of freshmen entering in fall 2002 needing remediation and taking math and English at the CSU became fully proficient at the end of their first year in college.

The results show the rapid progress achieved by students taking remedial English and math at the CSU campuses. “Those who take remedial classes in the first year of college are as successful as those who come to college already proficient in English and Math,” said CSU Fullerton President Milton Gordon.

Trustee Murray L. Galinson expressed some criticism of the procedures to measure proficiency. “We test the students at the beginning of the first year of college but use another standard to determine proficiency at the end of the first year.” He disapproved of students not being retested with the same exam at the end of the remedial courses but instead having faculty measure the results of their work during the remedial courses.

But Faculty Trustee Kathleen Kaiser said that the real test is whether the students master college level math and English. “That is a better test than passing the hurdle of an exam,” she said.

Alumni Trustee Fred Pierce suggested that the CSU staff bring next year data comparing the graduation rates of those who took remedial classes during the first year of college to those of students who are already proficient when entering as first-time freshmen. Spence agreed, and several presidents said the results would show how well those remedial students did.

For statistical information, see release on proficiency.

Report on 2002-03 External Support

Trustees received a report on external support to the California State University displaying a record $302 million in philanthropic support in 2002-03 despite a lackluster stock market that reduced charitable giving to higher education nationwide.

The increase was boosted by future commitments received through multiyear pledges and estate commitments. In-kind and cash gifts, however, declined by 7.6 percent to $237.8 million compared to $257.3 million the year before.

The result is consistent with national trends in giving to higher education and reflects caution in consumer spending as the stock market declined.

Three CSU campuses each exceeded $30 million in philanthropic support. San Diego State raised $60.9 million, Cal Poly San Luis Obispo raised $37.5 million and Cal State Long Beach raised $30.8 million.

Total external support — a combination of philanthropic support and special revenue from sponsored grants and contracts — reached $840.9 million, a 15% decline over the previous year.

Over the past decade, campuses have raised more than $7 billion in external support. These funds supplement the state budget and enhance the students’ educational experiences by keeping pace with advances in technology and applied research.

For further information, see release on external support.

The Trustees Also Approved:

  • Naming a wing of the Chapman Science Academic Center at CSU Monterey Bay the Hilton and Roberta Bialek Math and Technology wing, in recognition of a $1 million gift
  • Naming the west wing of Cal State Northridge’s Oviatt Library the Tseng Family Wing and naming the College of Extended Learning the Roland Tseng College of Extended Learning in recognition of a $38 million commitment
  • Naming the Education Building 02 at Cal Poly San Luis Obispo the Cotchett Education Building, University Center for Teacher Education in recognition of Joseph W. Cotchett’s recent $2 million contribution and $5 million estate provision
  • Naming the Cal Poly Theatre, Building 44 at Cal Poly San Luis Obispo the Faye and Alex Spanos Theatre in recognition of a $1.5 million gift
  • Approving the issuance of systemwide revenue bonds to fund the Recreation Center and Field House Renovation at Humboldt, Parking Structure II at Northridge, and Student Recreation Center at San Bernardino
  • Revising Title 5—Fee Waiver for Dependents of Deceased/Disabled Veterans to reflect changes in the governing sections of the code
  • Amending the 2003/04 Nonstate Funded Capital Outlay Program to include $2.9 million for Parking Lots 8 and 9 project at CSU Dominguez Hills
  • Revising the Campus Master Plan at CSU Sacramento in anticipation of the future replacement of low-rise with multi-story buildings and other changes
  • Approving schematic plans for five projects: parking structures at Cal State Long Beach, a parking structure at Cal Poly Pomona, a social sciences/parking structure at San Diego State, a joint university/California State Library project at San Francisco State, and an engineering/architecture renovation and replacement project at Cal Poly San Luis Obispo
  • Setting the compensation for Dr. Karen Haynes, the new president at Cal State San Marcos, at $203,376 and providing a housing allowance of $36,804 to Dr. Warren Baker at Cal Poly San Luis Obispo
  • Delegating to the Chancellor the authority to implement early retirement incentive programs as authorized by law for designated employee groups
  • Approving the assignment of functions to be reviewed by the office of the University Auditor for calendar year 2004
  • Approving a revision of Title 5—Student Discipline and Intellectual Property to prohibit the unauthorized recording and publication of academic presentations for commercial purposes
  • Approving a revision of Title 5—Nonvehicular Transportation and Animals on Campus to authorize the campus presidents to regulate these areas
  • Accepting 2003/2004 Legislative Report No. 7
  • Approving the CSU Federal Agenda for 2004
  • Appointing George Pardon to the CSU Headquarters Building Commission

The Trustees Also Heard:

  • A status report on 2004/2005 State Funded Capital Outlay Program
  • A report on CASE District VII awards to the CSU
  • Proposed modernization of the Trustees Rules of Procedure
  • A status report on current and follow-up internal audits
  • A report on construction auditing in the CSU 2002/03
  • A report on the systemwide audit and report to management
  • The Single Audit Report of Federal Funds


The California State University is the largest system of senior higher education in the country, with 23 campuses, more than 409,000 students and 46,000 faculty and staff. Since the system was created in 1961, it has awarded about 2 million degrees. The CSU is renowned for the quality of its teaching and for the job-ready graduates it produces. Its mission is to provide high-quality, affordable education to meet the ever-changing needs of the people of California. With its commitment to excellence, diversity and innovation, the CSU is the university system that is working for California. See www.calstate.edu.


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Last Updated: January 30, 2004

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