CSU Cuts to Go As High as $1 Billion: Letter from Chancellor Charles B. Reed

Dear CSU Supporter:

Thank you to all our advocates who have contacted your legislators regarding the possible cuts to the CSU. We wanted to take a moment to update you on the recent release of the Governor’s May Revision budget proposal.

Governor’s May Budget — What it Means
The Governor’s proposal retains most of the original budget with regard to tax extensions, but now specifies the implications if they are not part of the final approved budget. The Governor’s proposal for the CSU specifies that without the continuation of these tax revenues, the cut for the CSU will grow from $500 million to $1 billion in 2011-12.

In order to address this massive budget hole, the CSU would have to make some serious and long-lasting changes to the institution. To give you some context, an additional $500 million cut in state funding is equal to funding for 10 of our smallest campuses or denying access to 85,000 students or the elimination of 22,000 courses. These are not viable options anyone would want adopted.

Join Us in Advocating for Education

<http://capwiz.com/calstate/utr/1/IWCHPZXIDW/OHWWPZXMWU/7015448391>

How to Fix a $1 Billion Hole?
What are the CSU’s options? Because of the timing of the state budget and without a deal on the table in Sacramento, the CSU must begin making admissions decisions for future students. We also need to determine now the resources necessary to offer the courses, programs and services new and continuing students need to graduate in a timely manner. Following a recent discussion with the Board of Trustees, Chancellor Reed has informed the legislature of the following plan of action to manage this difficult situation:

First, we will begin wait-listing all applicants for winter and spring terms in order to first serve our existing students. We will not make final decisions on new admissions, freshmen or transfer students until we know the final budget allocation for the system.

Second, the Board may be asked in July to authorize the Chancellor to raise tuition by approving an additional tuition fee increase of up to 32%, or $1,600 with the final amount tied to the final budget outcome. This is above the 10% that was already approved starting this fall.

There are no good options at this point, but we have little choice at this juncture. We will continue to reduce administrative costs and improve efficiencies, but these actions will not address the loss of more than one-third of our state support.

Join Us in Continuing to Make Our Voices Heard
We thank you for your hard work as an advocate for the campus and system. While the news is not good, we are committed to keeping you informed. We also ask that you continue to remind elected officials that higher education needs to be a high priority

<http://capwiz.com/calstate/utr/1/IWCHPZXIDW/HRMNPZXMWV/7015448391>.

The CSU cannot absorb a $1 billion cut without lasting consequences. Let your legislators know that the CSU is one of the few state organizations that can help the economy to grow. California cannot get back to the Golden State it once was without an educated workforce.

Sincerely,

Chancellor Charles B. Reed

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