On July 11, the governor signed a new state budget for the 2005/06 fiscal year that officially began July 1. The California State Budget includes funding for the 23-campus California State University.

CFA released today a summary of the provisions in the state budget for the CSU: "CFA Research Brief #11: the 2005-06 California State Budget and the California State University."

CFA has been an outspoken advocate of adequate funding for the California State University and issued this comment on the 2005/06 budget:

"It is distressing to see confirmed what we had suspected: The governor's 'compact' with the California State University administration defined a 'ceiling' in terms of his commitment to public higher education. Yes, the CSU got slightly more than the governor's original budget had proposed, but general fund support for the university is still considerably less than it was two years ago, even while the need for access to higher education increases. Meanwhile, there is no relief for students—CSU fees will increase again this fall."

A successful town hall meeting held at CSU Bakersfield June 15 invited legislators to hear how two straight years of state budget cuts to the CSU have hurt the university, its students, faculty and staff.

That same day — the deadline for the Legislature to submit a proposed budget tothe governor—Republican legislators voted down a budget proposal that was nearly identical to the governor’s proposal.

Also that same day, the governor was in Bakersfield for photo ops with constituents at a car wash, where, under the guise of generating support for his special election in November, he again accused legislators of trying to change Prop 13 and raise taxes.

The political climate in the state, especially in the Capitol, is heating up. And the state budget process has taken a back seat to the hot-button issue of the special election. But CFA hopes the recent town hall meeting and a season of actions and lobbying legislators for more CSU funding will help lead to a more appropriate level of funding for the 2005/06 academic year.

“We are remaining focused on the ultimate objective of Rebuilding the CSU,” said CFA President John Travis. “We will continue to advocate for adequate state funding and press the issue that the future health of California depends on the current health of its public higher education system.”The constitutional deadline for a new state budget is July 1.

CSU Trustee Bill Hauck, who also is president of the California Business Roundtable, will join Jean Ross of the California Budget Project during a lecture on state budget politics.

Sponsored by the Pat Brown Institute at Cal State Los Angeles, the lecture titled “The Hardest Part of Politics: The California Budget,” will focus on the politics and processes involved in approving a state budget.

Hauck and Ross will discuss the perils and pitfalls of proposing and ultimately approving a state budget. This session will cover a host of questions concerning the most significant budgetary issues facing the state, potential winners and losers, a possible re-exploration of Propositions 13 and 98, and when California might achieve meaningful fiscal and budgetary reform.

The California Budget Project has been critical of proposed ballot measures that Hauck has been promoting as part of the governor’s agenda. Hauck is a member of the board of directors of Citizens to Save California, which has been the fundraising backbone of the governor’s “reform” campaign.

The California Agenda lecture series, a component of the Pat Brown Institute's Public Policy Education Program, was created to educate and engage California policymakers and decision-makers on important state public policy issues.

The lecture will be on Tuesday, June 7 from 8:30 to 10:30 a.m. at the City Club on Bunker Hill, 333 S. Grand Ave., 54th floor, Los Angeles. Breakfast will be served.

Please RSVP to Joseph at the Pat Brown Institute of Public Affairs (323) 343-3770. For additional information visit http://www.patbrowninstitute.org

Assembly Democrats made a courageous proposal Wednesday, calling for a tax increase on California’s wealthiest citizens.

The tax hike would generate $2 billion. It likely will provoke a showdown in budget negotiations between the Democrats and the governor and other Republicans who have vowed against raising taxes.

State Senate President Pro Tem Don Perata has also proposed a tax increase similar to the Assembly’s.

See more in the following news articles:

http://www.sacbee.com/content/politics/story/12988800p-13835710c.html

http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2005/06/01/MNGHQD1ION1.DTL

The governor released his revised state budget on Friday, May 13, which accounted for $4.2 billion in extra state revenue but allotted little to the CSU budget.

The May Revise, as it is called, added just $381,000 to the CSU budget for 2005/06 — $250,000 to increase the number of students seeking math and science teaching credentials, and $131,000 to reflect revised lease-revenue payments. In making such minor adjustments to the budget, the governor still leaves the 23-campus university in a huge deficit.

“We hoped to be able to say otherwise, but when it comes to state support of one of the most important engines of the California economy, the governor’s budget is just not good enough,” said CFA president John Travis. “He is treating the funding deal he made last year as the ceiling for the CSU.”

Under the compact, made with the acquiescence of CSU Chancellor Charles Reed, the governor offered non-binding assurances of future restorations of CSU funding in return for deep cuts to vital programs in the 2004/05 budget. Under pressure from the state Legislature, the governor’s cut was $40 million smaller than he proposed for the 2004/05 CSU budget.

But the bottom line remains—the CSU is $552 million in the hole since 2003, nearly 20 percent of the total state portion of the CSU budget. “The additional funding the governor proposes leaves the CSU deeply underfunded, and the compact would ensure the CSU remains underfunded forever,” Travis added.

CFA held Reed responsible for sacrificing the CSU budget to appease the governor when he signed the compact last year. Reed persisted in praising the governor’s budget proposal on Friday.

“We continue to hope our elected representatives will take a close look at the governor’s proposals and make the appropriate augmentations,” Travis said.

Here are highlights of the governor’s May Revise based on the Governor’s Report; the summary from the California Budget Project; and the LAO overview:

Key Changes Relative to Governor’s Budget Released in January:

• $4.2 billion in additional revenues coming from improved economic activity ($4 billion) and higher than expected net gain from the tax amnesty program ($181 million)
• Revised budget reduces new/existing debt by $2.5 billion Eliminates planned sale of deficit-financing bonds ($1.7 billion)

• Pre-pays Vehicle License Fees owed to local governments ($600 million)
• Reduces size of pension obligation bond ($200 million)

• Revised budget increases funding for programs by a net amount of $1.7 billion

• Restores Prop. 42 transfer of state general funds for transportation ($1.3 billion)
• Restores funds for senior citizen tax relief programs ($300 million)
• Provides one-time funds for some projects for K-14 in the form of settle-up payments ($100 million)

May Revise & Higher Education:
The California State University

• Of the $1 million Science and Math Teacher initiative proposed, the CSU would receive $250,000.
• Proposal to increase the CSU budget by $131,000 to reflect revised lease-revenue payment adjustment.
• Proposal for an additional $26 million from bonds for CSU capital outlay projects.

The University of California

• Of the $1 million Science and Math Teacher initiative proposed, the UC would receive $750,000.
• Proposal to increase the UC budget by $18.9 million to reflect revised lease-revenue payments .

Community Colleges

• CCC’s would receive part of the proposed $252 million in one-time, Prop. 98 settle-up funds:
  o $10 million for nursing initiative to fund 1,800 new nursing students).
  o $17.4 million added to career technical education initiative.
• Proposal for $40 million to help equalize disparities in funding across colleges.
• Proposal for $14 million for an increased COLA.
• Restores $31.4 million plus $417,000 to fund a new accountability framework.

See more from the Governor’s Office:
http://www.dof.ca.gov/HTML/BUD_DOCS/LatestBdgtInfo.htm

The LAO's Overview of the 2005-06 May Revision:
http://www.lao.ca.gov

California Budget Project's "Quick and Dirty" Summary of the May Revise
http://www.cbp.org/2005/050513_mayrevise.pdf

http://www.calchannel.com
Choose webcast>search archive>browse by month>February 2005
Click on Watch next to
Senate Info-Hearing Budget & Fiscal Review Subcomittee #1
time 51:10 UC President Robert Dynes
time 1:25:10 CSU Chancellor Charles Reed
time 1:55:46 Community College President Mark Drummond
time 2:20:25 CFA Political Action Chair Susan Meisenhelder

March 1 Assembly Budget Subcommittee #2: Education Finance

http://www.calchannel.com
Choose webcast>search archive>browse by month>March 2005
Click on Watch next to Assembly Info-Hearing Assembly Budget Subcommittee #2: Educ. Fin.
Chancellor Reed, UC President Dynes,
CFA President Travis

On March 14, CFA testified along with CSU students. Prior to the hearing, CSU students delivered more than 1000 personal letters to Gov. Schwarzenegger to urge him to increase state funding for the CSU.

The letters from students at most of the CSU’s 23 campuses include personal accounts of the hardships students face as budget cuts push tuitions up and eliminate educational resources. Students describe taking extra jobs, needing more years to graduate, and running up huge debts for themselves and their families, among other stories.

They brought copies of the letters to the Senate Budget Subcommittee #`1 hearing. Students continue to generate letters this month.

• See a sampling of letters from CSU students to the governor
  
  
• See CFA documents on the budget, student access and other issues in the CFA Research Center under the heading Budget Documents
  
  
• See CFA news releases on the March 14 hearing and delivery of student letters to the governor
  
  
  

Last year, when the governor and the chancellor signed their CSU budget “compact,” CFA predicted it would become a ceiling rather than a floor in this year’s budget cycle.

Yesterday when the governor unveiled his 2005-06 initial budget proposal, that prediction took another step toward reality. The governor’s proposal for the CSU closely followed the compact. Under that proposal, the CSU will continue to suffer from inadequate funding and deny access to even more eligible students.

Now, CFA faces an uphill battle to convince the governor and the legislature more is needed; but it is a battle the union will wage.

CFA President John Travis said, “Though one might argue the compact minimized further cuts to the CSU, there is another perspective: the compact prevented us from persuading the governor that more is needed, given the real story and the real damage taking place on our campuses.

“The latter is the CFA’s perspective. The governor must realize that the promise of the Master Plan is rapidly slipping away. If it is not restored soon it will be too expensive to reestablish.

“There are heart-rending stories on every campus: reductions in student services, deteriorating library and plant conditions, disappearing counseling services and more. Workload and hardship for faculty and staff have also increased.

“Public higher education is too important to abandon at this critical juncture in California’s recovery. In fact, there will be no recovery without rebuilding the CSU.

“At a minimum, CFA calls on the legislature to increase the governor’s proposal, to ensure that all eligible students will have a seat in the CSU next academic year.”

In addition to restricting access, $76 million in additional fee increases outlined in the governor’s budget proposal will make it harder for working students to attend the university. Undergraduates have seen a cumulative increase of 63% since January of 2003. Fees are slated to grow another 8% in July under the governor’s plan. CFA would like to see the legislature provide additional funding to buy down or eliminate the fee increase.

The governor’s $115.5 million proposed 2005/06 CSU budget increase would:

• Provide a 3 percent increase in base funding totaling $71.7 million;
• Provide 2.5 percent for enrollment growth at $50.8 million; and
• Rescind $7 million for enrollment and outreach that was funded last year.

CFA’s research shows the CSU will need at least another 1.5 percent increase ($30 million) for enrollment growth to admit 4,800 additional students to the CSU.

Also, the university would need 1.5 percent more in the base budget ($36 million), to ensure the students who are able to enroll in the CSU get the classes and the quality of instruction they need. The union also recommends resources be allocated to eliminate or substantially reduce additional fee increases.

CFA also wants the governor to provide first-year funding for ACR 73 to reduce class size and lower the student-faculty ratio. An additional $37 million for this would also increase the ratio of tenured/tenure-track to temporary faculty positions.

• See CFA’s news release on the governor’s CSU budget proposal (pdf)

• See a break down of the governor’s CSU budget proposal
and CFA’s recommended additions (pdf)

• Download a one-page handout on shortcomings in the funding Compact on Higher Education (pdf)

• See the entire state budget proposal

• See an analysis of the entire state budget proposal by
the California Budget Project

The governor is expected to release his proposed 2005/06 state budget Jan. 10, and CFA and the CSU administration anticipate he will honor his end of the Compact signed last May with the CSU chancellor.

The Compact, however, does not provide enough funding for the CSU to fulfill its obligation to the young people of California. CFA has already begun its outreach to legislators to demand that the government allot more money to the CSU budget next year.

A recent article in the Los Angeles Times reports that the state Democratic legislators are ready to battle the governor again during budget negotiations, and that public higher education will be a top priority.

"The majority of our time is going to be spent on transportation, education - K through 12, but higher education in particular," Assembly Speaker Fabian Nunez told the Times.

"I am pleased that legislative leaders such as Nunez intend to make higher education and the CSU a priority for state funding," said CFA President John Travis. "California is beginning to see the crucial role the CSU plays in the state's health and its need for sufficient funding."

• See CFA's recommended additions to the 2005/06 proposed CSU budget approved by the CSU Trustees
  
  
• See CFA’s news release responding to the governor’s January 5 State of the State address
  
  
• 3 reasons why the Governor’s Compact on Higher Education
  underfunds the CSU and restricts student access to the CSU
  
  
• 2005/06 CSU Support Budget that was adopted by the Trustees
  
  
  

Petitions have arrived on all CSU campuses this week to encourage the governor to provide enough funding for the CSU's 2005/06 budget.

• Learn more and download your petition here
  
  
  

On October 28, 2004, the CSU Board of Trustees adopted a proposed budget for California state funding for the CSU for 2005/06. This is the first salvo in the next round of the budget battle. It will heat up in January 2005 when the governor makes public his proposed state budget for the next fiscal year.

Here is a message from CFA President John Travis
about the budget proposal the Trustees adopted…

While yesterday’s CSU Board of Trustees meeting was very disappointing, it was not surprising. The main agenda item before the Board and its Finance Committee was to propose a budget to the state Department of Finance for inclusion in the governor’s over-all budget for next year.

For those of you who had not previously heard, the budget submitted by the Chancellor’s Office has some increases, but they are minimal and reflect the so-called “compact” between the governor and chancellor last Spring.

It outlines, but does not request funding for, several important issues for the CSU, including reducing the CPEC salary gap, and reducing the student-faculty-ratio as provided for in ACR 73.

It also includes an increase in undergraduate student fees of 8%, and 10% additional fees for graduate students.

G. Nanjundappa, Fullerton chapter president, encouraged the Board to ask for what the system truly needs--including funds for ACR 73--and not make a proposal based on the perceived “political realities” of the times.

I urged the Trustees to live up to the Chancellor’s Office’s assurances, and treat the “compact” as a floor, not a ceiling: I suggested several additional requests which would allow us to begin to rebuild the CSU.

And Lillian Taiz made an impassioned plea for a moratorium on fee increases, given the 63% growth since Fall 2002.

The most poignant and compelling part of the meeting was the testimony offered by several students about their individual experiences in dealing with increased tuition, and the conditions they face on their campuses as a result of the budget reductions of the last two years.

I can not describe to you how proud I was to be a teacher in the CSU as I listened to the carefully reasoned, expertly presented, fervent entreaties these young women and men provided the Board of Trustees. In the end, though, it was to no avail.

The Finance Committee proposed three resolutions to the Board, which amounted to an endorsement of the Chancellor’s Office’s budget proposal. As the BOT returned to plenary session, it adopted the resolutions with three negative votes: Lt. Governor Cruz Bustamante, Student Trustee Eric Guerra, and Ricardo Icaza, President of UFCW Local 770.

This experience confirmed what I told the CFA Assembly earlier this month: the Chancellor’s Office and the Board of Trustees are unwilling or unable to accept the responsibilities of caring for and protecting the CSU, which defines a trustee.

It us up to us, faculty, students, and staff to fight for the future of the University, and to initiate the rebuilding of our institution.

• CFA’s new release on the proposed 2005/06 CSU budget

• CFA’s recommended additions to the proposed budget

• 2005/06 CSU Support Budget that was adopted by the Trustees

• Cumulative impact of student fee increases in the CSU

• Open letter to the Trustees from CFA about student fees

When running in the Recall Election in 2003, the governor promised he would solve the state’s budget crisis by ending waste and fraud in state government. One step to that end, the governor says, is the “California Performance Review: Creating the first 21st Century Government in America,” which is a blueprint by which California’s government might be reorganized.

Check out these links to learn more about the California Performance Review:

CFA PRESIDENT JOHN TRAVIS
Testimony on the California Performance Review
September 9, 2004

OFFICIAL WEB SITE
Of the California Performance Review

THE LEGISLATIVE ANALYST’S OFFICE
First Review of the CPR

CPR RECOMMENDATIONS & THE CSU
An overview of some recommendations that could have
an impact at public higher education in California

THE TAX PROFESSOR ON THE “CPR”
A satirical debunking of some claims made in the CPR