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California State University Concerned About Possible Reduction in 2007-08 Budget

(July 19, 2007) The California State University and the Board of Trustees are concerned that the California Legislature is considering reducing the university’s budget by one percent, funds that were approved by the two-house legislative conference committee in June.

A cut of approximately $28 million of this year’s budget will require reopening almost all labor contracts that were only completed in the last few months after lengthy negotiations. These contracts reflect increased compensation to the university’s employees and begin to restore more competitive salaries for faculty and staff. This action most likely will result in reductions in the salary gains attained in recent collective contract agreements and will jeopardize the stability and working relationships between the university and all employee groups.

The reduction will exacerbate the financial difficulties the California State University has faced since the beginning of this decade due to more than $500 million in budget cuts applied during a three-year budget crisis in the state. For instance, in the 2006-07 academic year, CSU served nearly 8,300 more students than the state actually funded at a cost of $46 million. An additional cut may result in denied access to thousands of students.

“It’s time for the state to decide if it wants world-class universities, or world-class prisons,” said CSU Chancellor Charles B. Reed during a press conference today with the California Faculty Association. “Reduced funding from the state would hinder the CSU’s ability to meet the workforce needs of the California economy.”

A letter was also sent to the Legislature yesterday asking to continue the CSU budget approved by the legislative conference committee.

The California State University is the largest system of senior higher education in the country, with 23 campuses, approximately 417,000 students and 46,000 faculty and staff. Since the system was created in 1961, it has awarded nearly 2.5 million degrees, about 86,000 annually. 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

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Last Updated: July 19, 2007

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