Public Affairs

California State University Board of Trustees to
Hold Meeting On July 7


Administration Will Provide Overview of Budget Options to
Address $584 Million Reduction

(July 6, 2009) – Trustees of the California State University will hear an update of the CSU’s actions ranging from enrollment reductions to employee furloughs needed to address a projected $584 million budget deficit for 2009-10, at a meeting of the board to be held tomorrow.  The purpose of the meeting is to update trustees on the latest developments of the state budget and its implications for the CSU, and to seek input from members of the board on measures needed to address the unprecedented CSU budget deficit.

The Committee on Collective Bargaining will meet in closed session, and the Committee of the Whole will convene at 12:30 p.m. in open session.

In an effort to address the projected $584 million budget deficit and to avoid as many layoffs as possible, the CSU administration has proposed furloughing all employees two days per month.  Approximately 85 percent of CSU’s budget goes toward employee salary and benefits, and the CSU is proposing to furlough all of its employees (with the exception of public safety personnel) in all classifications, including management and executives, to help close the budget deficit.

To date, approximately 21,000 of CSU’s overall workforce of 47,000 employees are committed to looking at furloughs as a way to address the budget deficit. If all employees furlough it would save approximately $275 million, and an estimated 22,000 course sections or approximately 15 percent of all classes, that would otherwise need to be eliminated for the academic year.

Collective bargaining agreements between the CSU and its employee unions include provisions covering non-renewal of contracts and layoffs, but not furloughs.  Each bargaining unit, therefore, must agree to negotiate furloughs. To date, the California State University Employees Union (CSUEU), that represents more than 16,000 non-academic employees, and the Academic Professionals of California, that represents approximately 2,400 student services employees, have voted to negotiate two day per month furloughs. 

CSU is expected to begin furloughing management, non-represented, presidents and executives beginning in August following changes to Title 5 of the California Code of Regulations that are anticipated to be modified at the July 21 regular board meeting.

CSU has met with the California Faculty Union (CFA) several times to discuss the furlough option, but to date, no vote of its members has been scheduled.  There are approximately 23,000 faculty personnel, but only dues-paying members of the faculty union are allowed to participate in a vote. 

A furlough is a mandated period of time off without pay.  Furloughs differ from salary reductions and pay cuts in that they are temporary and do not affect employment status, or health benefit eligibility or pay rate for retirement benefits. Employees are required not to work on furlough days.

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About the California State University
The California State University is the largest system of senior higher education in the country, with 23 campuses, approximately 450,000 students and 46,000 faculty and staff. Since the system was created in 1961, it has awarded nearly 2.5 million degrees, about 90,000 annually. 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.