Frequently Asked Questions
The information below is part of a series of frequently asked questions and answers regarding university budget and furlough issues. Additional information will be provided as new information regarding the 2010-11 budget becomes available.
Willie J. Hagan
Vice President for Administration and Finance
May 21, 2010
1. Will furloughs be in place for next fiscal year?
The Chancellor has indicated that campuses should conduct 2010/11 budget planning based on the assumption furloughs will be discontinued effective June 30, 2010.
2. If the 10% furlough salary reductions are restored, where does that money come from?
The 10% furlough salary reductions are a temporary, one-time savings strategy developed by the Chancellor’s Office for fiscal year 2009-2010. In fiscal year 2010-2011, furlough salary reduction savings are to be replaced by budget savings related to reduced expenditures as a result of decreases in campus enrollment. Reduced enrollment targets have been designated by the Chancellor’s Office in order to align student enrollment with the level of state funding.
3. Many CSU’s are announcing layoffs to meet the budget challenges they face. Is Fullerton planning any layoffs and if so when will they be announced? Also, how will the decisions be made to layoff anyone? If not, how are we avoiding those?
Because Fullerton has taken most of its budget reductions as baseline reductions over the past two years, at this time, we do not foresee the need for layoffs.
4. I heard we have had some layoffs already. Who was laid off? How were those decisions made?
Members of the State Employee Trade Council (SETC) voted to not participate in furloughs. Therefore, because of the budget crisis some members of SETC were laid off. There have been no other layoffs at Fullerton. Having said that, some part-time faculty were not rehired because of enrollment reductions mandated by the system.
5. I heard some workers are working on furlough days and being paid overtime, how can that be, I thought everyone had to take furloughs?
Everyone is subject to furlough except for public safety, some health care workers, auxiliary employees and individuals funded via grants. Accordingly, other employees have had their salary reduced by the furlough amounts. There are allowances for employees to take alternate furlough days or to work on furlough days to meet campus and operational needs if authorized by the Vice President or the President. For those few employees authorized to work on their scheduled furlough days and because of operational need are not required to take an alternative furlough day, they are compensated according to their collective bargaining agreements.
6. If furloughs are eliminated, will corresponding salaries also be restored or will we be asked to work full-time with a 10% pay cut?
The planning guidelines from the Chancellor’s Office state that furlough programs will end effective June 30, 2010. This would restore salaries. There has been no discussion of employees receiving a subsequent 10% salary reduction.
7. How can we be considering things like purchasing Hope International (HIU) University and keeping our Irvine Campus when we are and cutting classes?
Cal State Fullerton has over 36,000 students on a campus of approximately 232 acres. This is a small amount of land for a campus of our size. The opportunity to acquire the ten acres at HIU adjacent to campus is rare and most likely won’t occur again.
We’ve had a South County branch campus for over 20 years. The current building is deteriorating and our current lease expires in 2011. As such, we need to acquire new leased facilities for the Irvine branch campus.
8. Why don’t we raise student fees to increase access?
System-wide student fee rates are established by and approved by the CSU Board of Trustees not the individual campuses. Since 2006-07, the Board of Trustees have increased student fees significantly to help off-set unprecedented State budget cuts and maintain access. In his May Revise, the Governor’s proposed budget for the CSU continues to assume a 10% student fee increase.
9. If past experience is a predictor of what will happen this year, it’s unlikely that the State will adopt a budget before July. What does that mean for planning purposes in the CSU and for Fullerton?
Until the state budget is approved, for budget planning purposes the CSU and CSUF continue to assume current levels of state funding while continuing to advocate for the restoration of state funding, which is currently included as part of the Governor’s proposed budget.
