California State University, Fullerton

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Budget Information

 

Frequently Asked Questions About the Budget Crisis


1. How much has the university’s budget been reduced?

State budget reductions, unfunded mandates, campus priorities, and loan obligations required a Cal State Fullerton budget reduction for 2009-10 of $54.5 million. These reductions break out as follows:

These reductions have been addressed via the following:

2. How are budget reductions decisions made? How are cuts allocated across units?

Division heads developed budget reduction plans in consultation with key managers in their respective divisions. These plans were then discussed with PRBC. Campus priorities and related-funding requests, such as faculty hiring, were also discussed. The university budget office also explored opportunities to off-set budget reductions allocated to the divisions by utilizing all university budget reductions, such as the utility budget and deferred maintenance. Based on these discussions, PRBC recommended budget reduction allocation and funding priorities to President Gordon, who will make the final decision.

3. How can the university continue to pay for new construction projects if the university’s budget has been cut and faculty and staff are taking furloughs?

A new Student Housing Complex and a new Parking Structure are currently under construction. A new University Police building was recently completed and ground breaking for a new Children's Center will occur next spring.

Three of these projects: the Student Housing Complex, Parking Structure, and Children’s Center are funded via campus user fees and thus are unrelated to the State’s economic situation and current budget cuts. Funding for the Student Housing project is funded via housing room rental fees; the Parking Structure is funded via campus parking fees; and the Children’s Center is funded via student fees enacted via student referendum. No tax dollars will be used to support the construction or maintenance of these projects.

The University Police building was built by the Auxiliary Services Corporation (ASC) and leased back to the University. Lease payments for this building are funded entirely by the Division of Administration and Finance budget. The decision to fund this building was made several years ago, prior to the current economic situation. The need to construct a new Police building was very high.

4. Are any campus employee groups, including managers and administrators, getting pay raises in 2009-10?

No. With the exception of members of the State Employee Trade Council (SETC), which voted for layoffs, all employee groups are participating in furloughs, including managers and administrators. While individual personnel actions such as in-range progressions, reclassifications, reassignments, etc. may be necessary on a case-by-case basis, no campus employee groups are scheduled to receive pay raises during 2009-10.

5. Why is the university still recruiting and hiring faculty when student enrollment is being reduced and existing faculty and staff are taking furloughs?

Faculty recruitment and hiring is necessary to maintain existing levels due to faculty retirement, resignation, or termination and increase the proportion of tenure/tenure track faculty on campus. In addition, continuing to hire new faculty is consistent with Academic Senate resolution ASD 08-17, approved by the Academic Senate in January 2008, reaffirming its support of President Gordon’s initiative to conduct five years of faculty hiring with 100 searches each academic year. This year PRBC recommended funding to provide baseline funding to support 60 tenure/tenure track faculty searches. Sixty searches are expected to net 35-40 actual hires which would offset faculty vacancies created by retirements, resignations, terminations, etc. Due to the current budget situation PRBC recommended that year five of the five-year plan be delayed until next year. However, PRBC feels it is important even in these touch budget times for the university to continue to express its support for reducing the student faculty ratio (SFR) and increasing the proportion of tenure/tenure track faculty on campus.

6. Is the university taking steps to eliminate low priority administrative operations and/or low enrollment or low priority academic programs?

Yes. Several programs and operations university motorpool, employee training and development, and men and women’s fencing programs. Every division is looking at the potential elimination or consolidation of programs and operations as a way to reduce expenditures. We have even merged our workers compensation program with CSU Dominguez Hills as a way to reduce expenses.

University Policy Statements designate specific procedures and timelines for review and restructuring of academic and academic support programs.

7. Why is the university still spending money on university events such as concert under the stars?

As President Gordon indicated in his September 10, 2009 convocation, “Continuing business as usual is not appropriate during this fiscal crisis.” As such, the all-university holiday open house, originally scheduled for December 2009, has been cancelled, as has the December 2010 holiday open house. In addition, the annual Academic Senate end of the year BBQ will not be held in May 2010 or May 2011. President Gordon also indicated there is a high probability he may cancel the 2010 Concert Under the Stars but he will not make the final decision regarding next year’s Concert until he sees the proposed budget for 2010-11.

In addition, President Gordon has asked the vice presidents, college deans, department chairs and others to look carefully at meetings and events normally held in their respective units to determine if some can be cancelled, reduced in cost, combined with other events, or changes made to reduce the costs during these very difficult financial times.

8. Who decides what positions are frozen and what position get filled?

The university has instituted a hiring freeze for non essential positions. Each division heads is responsible for establishing faculty and staff hiring and staffing plans consistent with their respective budget and making recommendations regarding critical vacancies to be filled to the President. All faculty and staff recruitments must be approved by the President.

9. Why is the university still moving forward with new university and athletics logos?

New logos were developed by existing university staff. No external design or consulting costs were incurred. Since we knew the recent change to the university’s area code required ordering new letterhead and business cards, timing of the new university logo was coordinated with this area code to reduce costs. In addition, transition to the new logo is a gradual process. Other items containing the campus logo will be changed over time as new inventory is ordered.

10. Are additional cuts anticipated in 2010-11? If so, do we anticipate furloughs will be extended beyond June 2010? If the budget is cut again in 2010 and furloughs are not extended, how does the university plan to make up the shortfall?

Unfortunately, we anticipate significant additional cuts in 2010-2011, both due to reduced state support and to fund mandatory costs and university priorities. There has been no discussion of extending furloughs. As such, the university does not anticipate furloughs will be continued beyond this year.

The university adopted a strategy of taking baseline budget cuts in 2009-2010 rather than utilizing one-time solutions to defer some or all of 2009-10 cuts to next year. As a result, Cal State Fullerton’s 2010-11 budget reductions will be smaller than would otherwise be the case. The university is actively engaged in planning and discussions to address anticipated 2010-2011 cuts.