CFA GOVERNMENTAL RELATIONS OFFICE WEEKLY REPORT
2002 EDITION, Issue No. 3
February 22, 2002


From: GRO 
Date: Fri Feb 22, 2002  05:02:01  PM US/Pacific
To: gro@calfac.org
Subject: GRO WEEKLY REPORT
Reply-To: gro@calfac.org

CFA GOVERNMENTAL RELATIONS OFFICE WEEKLY REPORT
"CFA LOBBY DAY - STAND UP FOR THE CSU - STOP THE RIPOFFS"
2002 EDITION - Issue No. 3
February 22, 2002


***CONTENTS:
	CFA LOBBY DAY - STAND UP FOR THE CSU - STOP THE RIPOFFS
	ASK STUDENTS TO JOIN US AT LOBBY DAY!
	LOBBY DAY HIGHLIGHTS
	LAO RELEASES ANALYSIS OF GOVERNOR'S 2002/03 BUDGET
	EFFORTS TO ADOPT FEDERAL TAX-DEFERRED CHANGES STALLED


CFA LOBBY DAY -- STAND UP FOR THE CSU -- STOP THE RIPOFFS

CFA Lobby Day is here.  Next week 100 faculty, students and allies will ask
legislators to "Stand up for the CSU" and "Stop the Ripoffs" as we continue
our work in educating legislators about the continuing crisis in the CSU.

In their meetings, faculty advocates will be presenting CFA's budget
proposal for 2002-2003 which focuses on five main objectives:  1) ensuring
adequate funding, 2) investing in instructional quality, 3) maintaining
affordability, 4) increasing administrative accountability, and 5)
controlling wasteful spending.  Other items high on CFA's legislative agenda
include:

SB 1450 (Romero) -- Dedicating 50% of the CSU Budget to Instruction.  The
CSU instructional budget has declined dramatically over the last 10 years
from 53.4% in 1990-91 to 41% in 2000-2001.  The percentage of the CSU budget
dedicated to faculty compensation has deteriorated even further.  This bill
requires that 50% of the CSU budget be spent on instructional programs.

AB 2549 (Nation) -- CalPERS Eligibility for Half-Time Lecturers.  This bill
allows CSU lecturers teaching a 40 percent (half-time) load to be eligible
for CalPERS retirement benefits.  Governor Davis vetoed last year's bill
addressing the same issue, but CFA has reintroduced the bill amended to
address the concerns citied by Davis.

SB 1661 (Kuehl) -- Paid Family Leave Benefits.  CFA is co-sponsoring
legislation with the California Labor Federation (CLF) and the Coalition for
Family Leave Income to enact paid family leave benefits for employees with
California State Disability Insurance coverage.

SB 277 (Chesbro) -- HMO-Eligible Reimbursement for Healthcare Coverage.  CFA
is co-sponsoring legislation that would allow CSU employees to be reimbursed
for a medical plan's deductible costs as well as the premium
cost-differential between an HMO and other available health plans.  HMOs
have recently suspended offering medical coverage in rural and urban
counties to CalPERS employees, which has placed a financial burden on many
CSU faculty and staff.


All faculty registered for Lobby Day should have received a briefing packet
by this time. Each CFA chapter is responsible for scheduling meetings with
legislators from their districts.  If you need additional information or are
interested in attending, please call (916) 441-4848.  Reservations need to
be made no later than Monday, February 25th.


ASK STUDENTS TO JOIN US AT LOBBY DAY!

We ask -- and encourage -- you to invite students to join your chapter's
lobbying delegation. CFA will pay for two students per chapter to join in
our lobbying effort.

While a number of students have already registered, it's not too late to
register more.  So call us today!  (916) 441-4848.  Our goal is to have ten
participants from each of the large campuses, and five participants from
each small campus.


LOBBY DAY HIGHLIGHTS

Tuesday, February 26

We begin our program Tuesday evening with a "Political Insights" panel
discussion.  Several legislators have been invited to share their individual
perspectives on the state's political climate.  Confirmed participants
include Senator Dede Alpert (D-San Diego), Senator Gloria Romero (D-Los
Angeles), Assemblymember Marco Firebaugh (D-Los Angeles), and Assemblymember
Judy Chu (D-Los Angeles). The discussion is intended to facilitate an
understanding of the dynamics we must confront in order to successfully
advocate for protection of the CSU's educational mission.  A buffet dinner
will be served at 6:00 pm; the panel discussion will begin at 6:30 pm.

Wednesday, February 27


LAO RELEASES ANALYSIS OF GOVERNOR'S 2002/03 BUDGET

The Legislative Analyst's Office (LAO) released its analysis of Governor
Gray Davis' 2002/03 Budget Proposal on Wednesday, warning lawmakers that
California's deteriorating fiscal condition will necessitate deeper than
anticipated cuts.  The LAO, which projected a 2002/03 budget shortfall of
approximately $12.5 billion in November 2001, now anticipates the need for
an additional $5 billion budget reduction.  The additional $5 billion dollar
shortfall is due mainly to an unexpected decline in tax revenues and the
need for additional Proposition 98 expenditures.

When accounting for budget cuts enacted in January, the LAO report now means
the State will face a shortfall of $14.5 billion in 2002/03.  It should be
noted that the LAO's analysis is based on a number of assumptions that may
not come to fruition.  For example, the analysis assumes the State will
receive $1.1 billion in federal funding for a variety of social service,
health, corrections and anti-terrorism programs but notes that "the actual
amount is likely to be considerably less than the full $1.1 billion." The
shortfall could also grow significantly if the economic recovery is delayed
or if the State fails to sell energy bonds intended to repay the General
Fund for energy purchases.

Governor Davis, assuming a shortfall of $12.5 billion, succeeded in
submitting a balanced budget proposal on January 10.  However, the
Governor's proposal relies heavily on transfers, borrowing, deferred
payments and other one-time solutions to achieve balance.  The LAO's
analysis warned lawmakers that this strategy could lead to a "large
underlying operating shortfall," estimated at $7 billion in both 2003/04 and
2004/05.

CFA will continue to track developments in the 2002/03-budget process.
Please contact Andrew Lyons (alyons@calfac.org) if you have any information
on how your campus, college or department is preparing for possible 2002/03
budget reductions.

EFFORTS TO ADOPT FEDERAL TAX-DEFERRED CHANGES STALLED

There are at least five legislative bills to conform California's tax code
to the new federal tax laws allowing larger IRA and 401(k) investments.
Although there is general consensus that taxpayers should be allowed to
increase tax-deferred contributions to their retirement accounts, and allow
employees to keep their accounts when changing jobs, there is little
agreement on how to accomplish this. Because of the potential hit on the
state general fund, Democrats want to change corporate taxes to minimize any
revenue loss, but Republicans are opposing this approach. Stay tuned.

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