A summary of the January 29-30, 2002, Board of Trustees Meeting

CSU Receives a Record $916.4 Million in External Support

The California State University's total income from external sources rose to a record $916.4 million in fiscal year 2000-01, according to the Annual Report on External Support submitted to the Board of Trustees. This amount includes $248.2 million in charitable donations.

"Last year's external support increased 4 percent from the previous year and sets an all-time record for private support of the CSU," said Louis Caldera, CSU vice chancellor for University Advancement. "This support is critical to maintaining excellence in a higher-education program that produces annually more than half of California's baccalaureate graduates."

External support is the sum of special revenue and voluntary support. CSU campuses raised $668.2 million in special revenue from sources such as sponsorships, bequest expectancies, pledges, contracts, grants, property transfers and income from endowments.

Donors provided $248.2 million in voluntary support, which includes gifts from alumni, parents, corporations, foundations, friends, and organizations. Gifts from individuals and foundations experienced a decrease from last year, while donations from corporations and other sources significantly increased.

Fund raising has become an institutional priority at all campuses since 1993 when the university decided to pursue private donations to supplement state support and other public sources of funding.

External support now represents nearly 17 percent of CSU's $5.4 billion annual budget. The CSU spends 17 cents on fund raising per dollar raised. The national average for other institutions of higher education is16 cents.

For more information, please see External Support Report

Freshmen's Proficiency in English and Math Report

Proficiency levels of California State University freshmen in 2000-01 completing math and/or English remedial courses prior to their sophomore year increased to 81 percent, a 2 percent gain, according to data released to the Board of Trustees on Jan. 30.

Ninety-seven percent of CSU fall 2000 freshmen who returned in the fall of 2001 were proficient in math and English. That very positive percentage highlights the benefits of remedial education courses offered by campuses.

As for freshmen entering in 2001-02, the proficiency levels in both English and math remained almost constant at 54 percent, a minor change from the previous year's scores, which showed that 54 percent of incoming students were proficient in math and 55 percent were proficient in English.

"These data underscore the need to assess student proficiency in English and mathematics earlier in high school," said David Spence, executive vice chancellor and chief academic officer for the CSU. "We are working with the State Board of Education to use the California Standards Test in English and math in the 11th grade for CSU placement. If students cannot demonstrate proficiency, high schools have the opportunity to work with these students during their senior year."

In 1996 the CSU trustees created a policy to address the large number of students in the upper one third of their graduating high school senior class unable to demonstrate proficiency in English and mathematics and called for annual reports. The trustees' goal is to increase proficiency of entering freshmen to 90 percent by 2007.

As part of the policy implementation, the CSU has developed several collaborative initiatives with the K-12 system designed to increase student proficiency. They include communicating the university standards and expectations to students, parents and high schools; making more CSU student tutors and faculty available to high schools to work with teachers and to mentor students; testing all admitted students before enrollment to ensure that those who need remedial education take courses during the summer prior to entering CSU or during the first term; and increasing the number of summer remedial education programs.

"Students receiving these academic outreach services are still in high school. Therefore, we expect to see increased numbers of these students demonstrating proficiency upon entry to the CSU," said Spence.

For more information on proficiency of CSU freshmen, please go to Proficiency Statistics.

Nonresident Tuition Exemption

The California State University system has begun to implement in-state tuition for certain nonresident students in accordance with AB540. Students who qualify under the new law are authorized to pay in-state tuition for academic semesters or quarters starting after Jan. 1, 2002.

"We are pleased to expand access and educational opportunities at the CSU to all California students," said CSU Chancellor Charles B. Reed. "Racially and ethnic inclusive campuses better prepare students for the diverse workplace they will find in the future."

Students need to meet particular requirements to pay in-state tuition, which is significantly lower than out-of-state tuition. The requirements are: (1) have attended high school in California for at least 3 full years; (2) have graduated from a California high school or received the equivalent of graduation; and (3) be enrolled as a new or continuing student at a CSU campus. If students are without lawful immigration status, they must also file an affidavit with a CSU campus stating that they have filed an application with the INS to legalize their immigration status or that they will do so as soon as they are eligible.

Students who qualify for in-state tuition under AB540 will not qualify for financial aid requiring legal permanent residence or U.S. citizenship. Additionally, qualifying for in-state tuition under AB540 does not establish California residence for undocumented alien students.

The law, signed by Governor Gray Davis in Oct. 2001, requires that all information obtained in the implementation of AB540 be kept confidential. CSU campuses have been directed to keep the affidavits and all other information related to this law a confidential portion of the student's permanent records.

The 2002-03 Support Budget

Trustees heard a status report on the CSU 2002-03 Support Budget as currently proposed by the governor. It offers a $116.9 million (4.5 percent) General Fund increase in the CSU's overall $2.7 billion General Fund budget. Combined with $20.9 million in projected fee revenue for enrollment growth, this would bring the total CSU state budget base to over $3.5 billion.

The Governor's Budget includes $87.9 million to support a projected enrollment growth of 4 percent next year. The budget does not fully fund a planned conversion to year-round operations (six campuses still require conversion), although the principle of providing state-supported summer operations for matriculated students at full marginal cost has been preserved.

The budget also provides some increased funding to allow CSU to meet mandatory costs for operating and maintaining 1.5 million square feet of new building space, property insurance increases, and $5 million in support of required equipment for the CSU campus network initiative. In addition, the budget provides $10.5 million to cover the full-year cost of employee health insurance, including increased premium costs during the last half of the 2001-02 fiscal year. Finally, $22.4 million is provided for a 1 percent increase in employee compensation, which is, however, below the level sought by the CSU. The CSU will continue to advocate the state for an increased compensation pool.

IN OTHER ACTION

The Trustees Approved:
  • Issuing debt instruments to finance the construction of a field house/university student union at CSU San Marcos.
  • Amending the 2001/2002 Capital Outlay Budget, Nonstate funded, to add four projects: CSU Fresno Duncan Athletic Building Addition; CSU Fresno Athletic Strength and Conditioning Center Addition; San Jose State University Moss Landing Marine Lab Ocean Pier Replacement; and Cal Poly San Luis Obispo Student Housing II.
  • Certifying the Final Environmental Impact Report, revising the campus master plan revision, amending the Nonstate Funded Capital Outlay Program, and approving schematic plans for the Campus Village Housing, Phase I at San Jose State University.
  • The assignment of functions to be reviewed by the Office of the University Auditor during 2002.
  • The 2001/2002 Legislative Report No. 6.
  • Revision of Title 5, Special Session Credit, to include self-supported special session courses in the restrictions limiting the number of credits students may earn towards a degree.
  • Revision of Title 5 to add language governing credit card solicitation of students on campus.
The Trustees Heard:
  • A proposed revision of Title 5 to replace an existing section dealing with military leave provisions in the CSU.
  • A report on University Advancement activities, including campus CASE District VII awards for writing, photography and graphic design and the Bautzer Faculty University Advancement Awards.
  • A memoradum of understanding with the California State Employees Association which extends the previous contract until July 1, 2002, and provides for a 2 percent salary increase.
  • An auxiliary organization tax-exempt and taxable financing proposal to refinance existing debt, construct a Coastal Waters Laboratory, and renovate a structure, adding a parking garage.
  • An update on the development of an Enhanced Capital Management Plan for the Trustees Revenue Bond Program.
  • The annual report on Completed CSU Capital Outlay Projects.
  • A status report on the 2002/2003 State Funded Capital Outlay Program Governor's Budget.
  • A status report on current and follow-up internal audit assignments.
  • A report on the Systemwide Audit, including the report to management.
  • A proposed revision of Standing Orders which would repeal provisions establishing set Extension Program Service Areas, in recognition of recent developments in instructional television and web-based instruction not dependent upon geographic proximity.
  • A presentation on Notable Accomplishments in California State University Teaching, Research and Scholarship: CSU Summer Arts.
  • A CSU Channel Islands proposal to establish a collaborative charter school on an existing school site in the Pleasant Valley School District.
  • Chair Larry Gould announce the Committee on Committees: Chair Martha Fallgatter and members Denny Campbell, Debra Farrar, Dee Dee Myers, and Bill Hauck.

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    Last Updated: 1 February 2002

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