CFA GOVERNMENTAL RELATIONS OFFICE WEEKLY REPORT
"LEGISLATIVE ANALYST'S OFFICE RESPONDS TO GOVERNOR'S BUDGET"
2002 EDITION - Issue No. 12
May 17, 2002

CONTENTS:


LEGISLATIVE ANALYST'S OFFICE RESPONDS TO GOVERNOR'S BUDGET

In a report released Thursday, the Legislative Analyst's Office
(LAO) called Governor Davis's May Revise budget "credible," but
stated it would not rectify future year budget shortfalls.
Additionally, the LAO commented that Davis's budget proposal
contained some "risks," including an assumption that the state
would be reimbursed $1.4 billion by the federal government to pay
for anti-terrorist costs and increased Medicare payments.

As reported earlier this week, the Governor proposes a
combination of $8 billion in spending cuts, $3.7 billion in
Vehicle License Fee and cigarette tax increases, and various
borrowing to close a $23.6 billion state budget deficit. For the
CSU budget, Davis provided nearly $20 million more for new
enrollments, and proposed $50.4 million in additional cuts.

Both the Assembly and Senate budget subcommittees will complete
their deliberations by the end of next week, and a two-house
conference committee will convene to develop a final budget plan
for consideration by the Legislature.

GEORGE DIEHR ADDRESSES THE CAL-PERS BOARD

At a meeting of the CalPERS Board of Administration this week,
CFA-member George Diehr introduced himself as a CSU professor,
and thanked the Board for their hard work and leadership during
challenging times.  As a candidate for the state active seat
being vacated by CFA-member Bill Crist, Diehr stated that he
looked forward to having the opportunity to serve on the board.
The election is being conducted by mail ballot from August 19,
2002-September 30, 2002.

In his candidate statement appearing in the CalPERS ballot, George has
pledged to do everything possible to:

*	Fight against skyrocketing health care costs
*	Improve health care benefits
*	Enhance retirement benefits
*	Provide sound investment of our pension fund
*	Insure that investment returns benefit members
*	Always be accessible to members

We need your help in raising funds to help George win this
important seat.  Because contributions from CFA to George's
campaign are limited by campaign reform law, we need to raise
individual contributions from our membership to make sure he has
the resources to win.

We are asking members to help raise at least $500 per chapter to
elect George.  Checks should be made payable to "George Diehr for
CalPERS Board" and mailed to the CFA Government Relations Office
at 400 Capitol Mall, Suite 1950, Sacramento, CA 95814.

Please indicate your chapter on the envelope so that we may
appropriately credit your contribution to your chapter.  A
progress report will be included in next week's GRO Weekly
report.

MASTER PLAN COMMITTEE TO SPONSOR ONLINE DISCUSSIONS

With the release of the draft Master Plan for Education report,
the Joint Legislative Committee responsible for the report is
conducting district hearings and sponsoring online discussion
groups to receive public comment.

Hearings are currently scheduled in the locations listed below.
CFA will be calling on local members to represent us at these
district hearings.

1) June 6, 2002, from 4:30 pm - 7:30 pm at San Diego State University
2) June 7, 2002, from 4:00 pm - 7:00 pm at West Los Angeles Community College
3) June 28, 2002, from 10 am - 12 noon at Sonoma State University
4) June 28, 2002, from 3:00 pm - 7:00 pm at Pasadena City College

In addition to the district hearings, the Committee is sponsoring
online discussion groups from June 3-June 14 to encourage public
dialogue in development of the plan.  To learn more about this
innovative process visit the Master Plan's webpage at
.

CSU ADMINISTRATION JOINS CFA IN JOINT BUDGET REQUEST

In a joint letter to legislative leadership from CFA and the CSU
administration, a request was made this week to "ensure that the
CSU can accommodate ...growing [student] enrollment,
compete...for the best faculty, and respond to workload
needs...." The letter, signed by CFA President Susan Meisenhelder
and Richard West, CSU Executive Vice-Chancellor, outlined
numerous budget structural needs that need to be improved. These
areas include increasing the CSU marginal cost rate that is used
to fund new student enrollment; increasing funds for graduate
education; providing assistance for CSU faculty housing; and
providing a linkage between program needs and capital
investments, such as faculty workspace.

Please find attached a copy of the joint letter sent to
legislative leadership from CFA and the CSU administration.  If
you are unable to open this attachment and would like a copy in
text form via email or fax, please contact Kim in the GR office
via email at gro@calfac.org or (916) 441-4848. [A plain text
version of the letter appears below in this document.]

MEET OUR NEW GRO TEAM MEMBER!

David Stammerjohan joins the GR team as a Legislative Advocate
and will work closely alongside David Hawkins, CFA's Legislative
Director, in representing CFA's interests in the State Capitol.

In accepting this temporary position, David brings a wealth of
legislative and political organizing experience to the job.

CFA General Manager Bob Muscat notes, "We brought David on board
to assist us in meeting the budget challenges ahead of us this
year and next leading up to our salary reopener in 2003."

David may be reached at the Sacramento CFA office at (916)
441-4848.  (E-mail address to follow).  Welcome aboard David!

#     #     #

Text Of Joint Letter From Executive Vice Chancellor Richard West
and CFA President Professor Susan Miesenhelder to Senator Jack
O'Connell and Assembly Member Joseph Simitian

The Honorable Jack O'Connell		The Honorable S. Joseph Simitian
Capitol Building - Room 5035		Capitol Building  - Room 5119
Sacramento, California  95814		Sacramento, California  95814

Dear Senator O'Connell and Assembly Member Simitian:

The California State University (CSU) and the California Faculty
Association (CFA) respectfully request your consideration of
several important funding issues that are critical to the ability
of the campuses and its faculty and staff to respond to the
growing demand for undergraduate and graduate education.  As the
fifth largest economy in the world, California has faced and
recovered from economic downturns only by its ability to respond
to the changing economy and with a qualified workforce.  The CSU
produces the majority of this workforce, including over 60% of
all engineering and computer science degrees, over 50% percent of
our K-12 teachers and administrators, and hundreds of thousands
of graduates each year in professions such as nursing,
communications, business management, economics and many other
fields that are critical to our future.

The economic health of the state and its ability to provide a
valued quality of life is dependent upon our willingness to
invest in education, including higher education, now as we look
to the future.  CSU remains committed to meeting these growing
and ever-changing needs but can only do so if we work with you
and other policy makers to ensure that the system and its
programs are adequately funded.  While we appreciate the current
fiscal situation, we feel we would be remiss, if not
irresponsible, if we did not call to your attention the funding
issues that we believe must be addressed in the long-term if we
are going to provide high quality programs to all of California.

On occasion we have had a chance to discuss a few of these
structural and/or formulaic issues but often we all find
ourselves absorbed by the immediate issue, the development of an
annual budget, and end up deferring these discussions for another
day.  We believe the time has come for the system, the
Administration and the legislature to address these issues so
that we can plan now for the tidal wave of students we all know
are waiting to enter the CSU system.  To ensure that the CSU can
accommodate the growing enrollment, compete in the national
marketplace for the best faculty, and respond to workforce needs,
we would like to request your help in addressing the following
issues:

Marginal Cost Rate - The marginal cost rate is made up of several
components which we believe need to be updated to reflect real
costs at our campuses, and we would also suggest that there are
real costs not currently included that need to be recognized to
protect quality and serve our students.

In looking at the current marginal cost rate formula, we believe,
at a minimum, that two adjustments are required to serve our
students properly:

* The marginal base salary rate tied to the artificial standard
   of the Assistant Professor, Step III salary scale is not
   indicative of the starting salaries our campuses must pay to
   hire the best faculty given the national market for qualified
   faculty, costs of living in California, and competition within
   the institution and with other state colleges and universities
   for these educators.  The marginal cost base salary rate
   should be linked to the Average New Hire salary rate at CSU
   which, based on our experience, currently should be at least
   $56,000.

* The student-faculty ratio (SFR) recognized in the current rate
   is 18.9 to 1.  We believe that given the changes in how we
   teach, the diversity of our students and their needs, and the
   quality of the interaction that makes up teaching and learning
   requires a ratio of 18 to 1.

Graduate FTE Calculation:  Unlike all other four-year
institutions that provide graduate education in the country and
here in California, the CSU receives the same FTE credit for
undergraduate and graduate education.  At a time when we all need
to be preparing more engineers, scientists and others to meet the
needs of the workforce, the CSU is not provided the funds to
support and expand graduate programs which are proven to be
higher cost due to faculty-student ratios, applied research and
related labs and equipment costs.  A recent report by the
California Council for Science and Technology (CCST) indicates
that the state needs 14,000 more professionals in various fields
of study to work in our industries and companies, to teach future
workers, and to respond to changes in California and the world's
economy.

Housing:  The CSU, along with many other employers, has come to
recognize that the escalating housing prices make recruiting and
retaining top-notch employees very difficult in many regions
throughout the state.  For example, San Francisco, where the
median price of a home is $426,000 and climbing, a gross family
income of about $170,000 would be required to purchase a house.
With a salary ranging in the low-$50's, an entry level Assistant
Professor certainly find the prospects of buying a San Francisco
home a daunting one.  In the competition for the best-qualified
faculty in a national and Statewide market, the high cost of
housing is a critical issue that we must address as a state to
ensure success in recruiting and retaining tenured faculty for
our classrooms.

Linkage Between Program Needs and Capital Investments:  Faculty
expect and need a workspace on the campus to participate in
campus planning, curriculum and related work, and to prepare
their coursework and review student work carry out critical
applied research activities.  As the state invests in capital
outlay for CSU there is not specific recognition for the need for
this space.  We believe the state needs to reexamine the approach
used for capital planning and recognize the space needs of
faculty to do their work.

Looking ahead to find ways to ensure that we maintain the quality
of all our programs even while we face double-digit enrollment
growth, the CSU Systemwide Academic Senate has raised these same
issues in their recent publication, The CSU at the Beginning of
the 21st Century: Meeting the Needs of the People of California.
In addition, the Finance and Facilities Working Group of the
Joint Legislative Committee to Develop a Master Plan -
K-University also examined this issue as part of its work and
recommended the changes we are proposing.

We appreciate the difficulties the state faces in the 2002-03 and
likely 2003-04 budgets.  At the same time we know that without
addressing these funding issues, CSU may not be able to meet its
Master Plan promise of access to a high quality education.

Thank you for your consideration of these important issues.  Our
representatives Karen Y. Zamarripa and David Hawkins stand ready
to work together and with you to ensure our success for the
future of California.

Sincerely,


Richard P. West				Dr. Susan Miesenhelder
Executive Vice Chancellor		President, CFA


cc:	Chancellor Charles B. Reed
	Jackie McClain
	Karen Y. Zamarripa
	David Hawkins