CFA-GRO SPECIAL REPORT
GOV. DAVIS RELEASES 2002-03 CSU BUDGET PROPOSAL
JANUARY 10, 2002


From: Kim Cheney <kimc@calfac.org>
Date: Thu Jan 10, 2002  18:40:40 US/Pacific
To: kimc@calfac.org
Subject: CFA-GRO SPECIAL REPORT: GOV. DAVIS PROPOSES CSU BUDGET
Reply-To: kimc@calfac.org


GOV. DAVIS RELEASES 2002-03 CSU BUDGET PROPOSAL

On Thursday, January 10 Governor Gray Davis released his 2002-03 state
budget.  The spending plan calls for a $28.1 million net increase to the
CSU budget, the result of several revenue increases and targeted spending
reductions.  The budget also proposes no student fee increase; an outcome
supported by CFA.

The Governor's budget proposes $117.9 million in spending increases.  A
portion of the new revenue ($37.7 million) will be used to provide a 1.5
percent increase to the CSU's base budget.  The majority of the remaining
new revenue ($78.1 million) will be used to fund a projected 2002-03
enrollment increase of 12,270 full-time equivalent students (4 percent).

In addition to the spending increases, the Governor's proposed budget
includes approximately $89.8 million in budget reductions.  Cuts include
reductions in the Cal-Teach Teacher Recruitment Program ($5 million), the
Education Technology Professional Development Program ($6.5 million),
various one-time budget allocations ($18.9 million) and unspent funds from
past years ($35.8 million).

The $37.7 million 1.5 percent base budget increase may be used for several
purposes, including providing compensation increases to CSU employees.  It
is anticipated that if the CSU administration pays for mandatory cost
increases with these funds, such as rising health care premiums, the
compensation pool would be reduced to approximately $22.4 million.  This
would provide CSU employees with only a 1 percent compensation increase in
2002-03

It is CFA's position that there is sufficient revenue in CSU's existing
base budget to provide faculty and staff with an equitable salary increase.
The CSU administration continues to use compensation dollars for purposes
other than compensation, siphoning tens of millions of dollars away from
CSU employees.  In addition, CFA maintains that the uncontrolled growth in
administrative costs, coupled with the unmonitored implementation of the
systemwide Common Management System (CMS) software program, could be
restricted in an effort to fund costs more central to the CSU's educational
mission.

The Legislature will convene a special session later this month to consider
budget cuts in the current year.  The Governor has already proposed a $20
million cut in the 2001-02 CSU budget.  It is anticipated that current year
reductions could exceed $30 million. When Gov. Davis first proposed
mid-year state budget cuts, he stressed that the CSU cuts should not
interfere with meeting its educational mission.

If you are aware of any reductions to your campus budgets, especially those
that affect instruction, please contact CFA Research Specialist Andy Lyons
at <alyons@calfac.org> or CFA Legislative Director David Hawkins at
<dhawkins@calfac.org>, or phone the CFA Government Relations Office
at (916) 441-4848.



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