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CSU Chancellor Testifies to Assembly Budget Subcommittee

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(March 19, 2009) -- On Wednesday, March 18, 2009, CSU Chancellor Charles B. Reed appeared before the Assembly Budget Subcommittee in Sacramento to discuss CSU’s budget.  Reed’s message emphasized the vital role that the CSU plays in California’s economy, workforce development and individual advancement, and stressed what effect further budget cuts would have on the system. 

“The CSU and the other higher education segments play a special role in positioning California for economic recovery and future prosperity,” Reed told the subcommittee.  “You’ve often heard that California is a ‘knowledge based economy.’  This is true, more than ever, as we look to the future.”

Additional key points of his testimony included: 

  • The state has been unable to provide funding to the CSU for basic workload needs.  The budget package represents two consecutive years without any increases in state funding, including funding for enrollment growth or faculty and staff compensation increases.
  • The current fiscal impact to the CSU adds up to $600 million in cuts and cost obligations that the state was unable to provide funding for over two fiscal years, 2008-09 and 2009-10.  
  • This includes $216 million in 2008-09 and $217 million in 2009-10 of lost revenues tied to basic workload needs.  An additional $167 million net impact comes from additional state cuts and mandatory cost increases, including $44.6 million of annual ongoing costs for faculty collective bargaining agreement.
  • CSU’s annual operating budget just to meet current obligations for 2009-10 will face a $70 million deficit.

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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.