CFA GOVERNMENTAL RELATIONS OFFICE WEEKLY REPORT
"SENATE APPROVES BUDGET WITH CFA LANGUAGE -- BUDGET STALLS IN ASSEMBLY"
2002 EDITION - Issue No. 19
July 5, 2002

CONTENTS:


SENATE APPROVES BUDGET WITH CFA LANGUAGE -- BUDGET STALLS IN ASSEMBLY

The Senate approved a state budget plan last week, garnering the
minimum two-thirds vote needed for approval. After forwarding the
$99 billion spending plan to the Assembly, the Senate adjourned
for the summer recess and isn't scheduled to return until August
5. Before leaving town, Senate Republicans fired off a letter to
the Assembly Republican Caucus urging its members not to approve
the budget proposal. (Although the Senate needed only one
Republican vote to reach the two-thirds threshold, the Assembly
needs at least four Republican votes.)

Included in the state budget is CFA-sponsored budget language
requiring the CSU administration to delay implementation of its
estimated $400 million CMS/PeopleSoft computer data project. The
language restricts the CSU from entering into any new contracts,
or making any new purchases, that are not required per existing
contracts. The language requires the prohibition to be in effect
for the 2002-03 fiscal year and until the CFA-sponsored audit
being conducted by the State Auditor is released early next year.
Additional CFA-sponsored language accounting for faculty
compensation expenditures is still pending.

Overall, the CSU budget reflects the actions proposed in the
Governor's May Revise budget proposal, as reported in past
CFA-GRO reports, for an overall increase of 0.82% over last
year's budget.


HEARINGS ON EDUCATION MASTER PLAN CONCLUDE

The Joint Legislative Committee to Develop a K-University
Education Master Plan wrapped up its hearings on the first draft
of the master plan with a hearing at the State Capitol on July
2nd.  Eloise McQuown, CFA's Legislative Committee Chairperson,
was among those providing testimony to the panel.  McQuown called
upon the committee to push for an end to the "boom and bust"
funding cycle of the CSU, while remaining true to California's
historic commitment to lead the nation in providing access to
higher education.  "Securing stable funding while maintaining
reasonable tuition levels is essential if the CSU is to remain a
shining example of accessible, high quality education", McQuown
said.  In addition, McQuown expressed CFA's belief that the
current "partnership" budget approach to funding the CSU is
inadequate.  "Whatever the form of a long-term funding agreement
it must (1) include all stakeholders at the table in developing
the agreement; (2) it must not restrict the CSU's growth during
strong economic times through the imposition of funding
'ceilings'; and (3) it must protect the CSU system during
economic downturns", McQuown said.

On the topic of accountability, McQuown spoke of the importance
of relying not just on outcome measures in evaluating the
effectiveness of a campus or the entire system, but to
incorporate input measures as well.  McQuown urged the committee
that, "it is critical to develop indicators to evaluate
administrative components as well as student and program areas."

A revised draft of the master plan is expected to be completed
before the end of July.  No additional hearings are scheduled at
this time.  After a brief comment period, work will begin on the
final draft, which is scheduled to be finished prior to the end
of August.  A legislative package to implement various components
of the completed master plan will most likely be introduced early
next year.


                                        ***