2002 EDITION - Issue No. 27
September 13, 2002



Governor Gray Davis signed the state's $99 billion budget on September 5, officially ending the 67-day budget stalemate. However, despite the Governor's action, additional cuts are still pending. Under legislation approved as part of the last-minute "budget deal," Governor Davis' finance director has the authority to make additional budget reductions of up to $750 million, including up to 5% cuts in state operations. CFA is continuing its lobbying work to oppose any further CSU budget cuts and protect the interests of faculty and students.

To help alleviate the state's $24 billion shortfall, the budget package contains a "golden handshake" to be enacted by a Davis Executive Order that hopes to encourage early retirement by offering an additional two years of service credit to eligible state employees. Until the E.O is publicly issued (which is expected by October 5th) it is unclear under what parameters the early retirement incentive will be offered. Although the CSU administration has reported otherwise, CFA research has revealed there is a strong likelihood that CSU faculty will be eligible for this benefit, but its implementation will be contingent on support from the CSU Board of Trustees and final approval of any CSU-submitted "cost savings plan" by the state Department of Finance. CFA will remain closely engaged on this important faculty issue and report on any new development.

For now, the CSU budget passed by the Legislature remains intact, however the final outlook for 2002-03 is still in question pending any additional cuts that may be proposed to close this year's shortfall. The CSU did suffer from a number of cuts, including a $43 million reduction targeted at information technology, maintenance, libraries and instructional equipment. The bulk of the remaining cuts were aimed at specific CSU programs (see attached). Fortunately, the budget does include a number of budget augmentations, including funding for 5% enrollment growth. The CSU also received a 1.5% base budget increase (the Partnership Agreement between the CSU and the Governor calls for a 4% base budget increase). In sum, the budget 2002/03 budget was reduced by $27.3 million over 2001/02 state funding levels.

While CFA successfully lobbied the Legislature for budget control language that would have effectively delayed final implementation of the CMS (Common Management Systems) project, Governor Davis vetoed the language, stating it would "delay the operational efficiencies the University believes will be achieved when the project is completed and delay staff training." Earlier this year CFA and CSEA/CSU were instrumental in persuading the Joint Legislative Audit Committee to order an investigation of the CMS project. The State Auditor's investigation is expected to be complete early next year. In his budget veto message, Governor Davis stated, "I encourage the University to cooperate fully in the audit currently in progress of the project and expect continued adherence to all relevant information technology policies and bid procedures." CFA has not yet confirmed the reasons why the Governor vetoed the language.

CFA was also successful in having budget language approved directing the CSU to provide allocation and expenditure data for faculty compensation.

Attached you will find a list of CSU budget highlights for the year. These highlights include:

  1. $98.8 million to fully fund a 5% increase in student enrollment;
  2. No resident student fee increase;
  3. $37.7 million, or a 1.5% increase in the CSU's base budget (although the CSU's "Partnership Agreement" with the Governor calls for a 4% increase or $100.5 million;
  4. $43 million reduction for information technology, instructional equipment, library materials and deferred maintenance, with the actual amount of each categorical reduction determined by the CSU. Budget control language prevents the CSU administration from redirecting the cut to other program areas.
For those unable to access the attachment, please contact the CFA GRO at (916) 441-4848.

Thanks to all our CFA member lobbyists who helped lobby our budget issues this year.


The clock is ticking on the outcome of AB 2549, authored by Assemblyman Joe Nation. The CFA sponsored bill would extend PERS retirement eligibility to lecturers, subject to collective bargaining, that teach at least 6 weighted teaching units for two consecutive semesters or three consecutive quarters. Governor Davis has until the end of September to sign or veto the bill. This week CFA pressed our case for the bill with Marty Morgenstern, the Director of the Department of Personnel Administration, who is an important advisor to the Governor on public employment and collective bargaining issues. The support post cards for AB 2549 have been rolling in and CFA lecturer representatives will be presenting them on Monday to the Governor's Director of Labor Relations, Bill Lloyd.


It's not too late to sign up to attend this year's Governor's Conference for Women being held in Long Beach on Tuesday, September 24. CFA has seven slots available to attend this important conference where CFA representatives will be lobbying participants to support Proposition 47 - the school bond initiative appearing on the November ballot. This year's conference speakers include ABC News reporter Cokie Roberts, activist Mavis Nicholson Leno, researcher and surgeon Dr. Susan Love, and lecturer and educator Dr. Bertice Berry. Over 10,000 women attended last year's exciting event.

Please join us for this exciting event by contacting the Kim in the GRO at (916) 441-4848 or e-mail: Overnight accommodations will be provided.


You are invited to attend the "Friends of Education and Labor Awards Dinner" on Saturday, October 19 during the Fall Assembly. The dinner will mark the first time in CFA's history that an event has been organized specifically to raise funds for our political action committee, " Faculty for Our University's Future". The evening is sure to be a powerful and momentous occasion.

We are pleased to announce that Antonio Villaraigosa, Speaker Emeritus of the California Assembly will serve as our keynote speaker. This year's award recipient is The Los Angeles County Federation of Labor, which stood in strong solidarity with CFA during our contract struggle. The political influence of the federation helped us reach one of our best-negotiated contracts.

Each chapter, especially those in southern California, is encouraged to fill a table with ten colleagues willing to contribute a minimum of $50 to the political action committee. Contributions can be made by monthly payroll deduction, personal checks, or Visa/MasterCard.

To RSVP or for more information contact Audrena Redmond at (310) 641-4430, x24,
F: (310) 410-1240 or


This will be the final regular GRO Weekly Report until the Legislature reconvenes in December 2002. We will continue to issue special reports as warranted until the weekly updates resume publication. If you have any questions, please contact the GR office at (916) 441-4848 or

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