CSU Continues to Feel Pressure of Proposed Budget Cuts

March 31, 2011

All Californians are feeling the pinch of our tough economic times and CSU is not exempt. As you know, Governor Brown and the legislature have been grappling with an estimated $26 billion budget shortfall to put our state back on track. For the CSU our best case scenario is a cut of almost 18% -- or $500 million in 2011-12. We want to update you, as a supporter of Cal State Fullerton, on the situation and let you know how we are ensuring that our budget decisions reflect our commitment to serve students.

The CSU faces a reduction that puts our state funding support at the level of ten years ago – but we are serving 70,000 more students. Our goal is to continue to serve all of our students with a quality education that is essential so that students can complete their degrees and enter the workforce well-prepared for their future. At Cal State Fullerton, we currently need to look at ways in which we can bridge our portion of the gap.

The Choices Will Be Difficult
After factoring in cost increases for mandatory system-wide expenses such as health care premiums and net student fee revenue from the 10% tuition fee increase and system-wide enrollment reduction cost saving measures, we estimate that Cal State Fullerton's share of the budget cut will net to around $21 million. To get there we face a series of difficult and painful choices, including reducing the number of admission spots for incoming students. Since we already have 9 CSU-qualified applicants for every one of Cal State Fullerton's 3,900 freshman openings for fall 2011, the prospect of cutting enrollments further concerns us greatly. Redoubling existing efforts to identify efficiencies will cut $7.5 million from operating expenses, equipment and travel expenditures while eliminating positions and a hiring freeze will provide an additional $13.6 million in permanent salary and benefit reductions.

Although these baseline budget reductions will be felt throughout the university, we believe our balanced approach will provide the best education and collegiate experience possible for the greatest number of students. As always, CSUF will maintain a completely balanced budget with no baseline structural deficit.

What's Next- Possible $1 Billion Cut
In addition to the already proposed cuts to our campus and the CSU system, if the legislature cannot come to a consensus on the budget and voters don't approve the tax extensions, the CSU could be facing double the amount of cuts. That would mean a $1 billion reduction in funding to the system or one-third of our total state support. If this happens, tens of thousands of additional students will be denied admission to the CSU.

Join Us in Advocating for Education
We thank you for your hard work as advocates for the CSU. But, as the budget deliberations continue, we need to remain vigilant in keeping CSU on the legislature's radar and a high priority for elected officials. We promise to keep you informed of the budget and its specific impact to Cal State Fullerton, and commit to serving students to the best of our ability.

For more information, visit: http://blogs.calstate.edu/budgetcentral/