Spring Break
CSU gives $31.3 million back to state
Derek Fleming
Issue date: 11/12/08 Section: News
A rallying cry from the Alliance for the California State University went up last week when CSU faculty and administrators learned CSU Chancellor Charles Reed had voluntarily given $31.3 million from the CSU budget to the state of California.
Because of this, Sacramento State will be forced to bear an additional $1.8 million cut to the already underfunded campus budget.
This unexpected cut comes in the wake of dedicated efforts by the Alliance for the CSU, an organization made up of administrators, faculty, students and local residents throughout the CSU system, to reduce the impact of a major funding cut by the state. Last semester, the alliance was able to restore $97.6 million to a budget that was slashed by more than $300 million.
Reed apparently made the decision of his own volition. His office then released a statement claiming the CSU was "informed" of the cuts by the state's Department of Finance.
It was six days later that faculty and administrators learned the cuts were voluntary. Reed had given back one-third of the money the alliance had fought for.
The California Faculty Association said in a press release, "In a communication to CSU employees last week, the chancellor misled the campus community by incorrectly reporting the CSU community is among the agencies that need to cut a total of $390 million from the current budget."
"The chancellor's give-back of $31.3 million is voluntary - and he knows it," the CFA said in the release.
The recently-enacted state budget has run into problems because of the slow economy and the housing crisis.
Kevin Wehr, associate professor of sociology and Sac State CFA chapter vice president, said the chancellor's actions were "reprehensible."
"I find it unconscionable that he would do that… without so much as a request for comment from those whose work went into getting that money in the first place," Wehr said. "We fought really hard for that, and I feel betrayed."
Joseph Sheley, provost and vice president of Academic Affairs, said the $1.8 million returned could have been put to good use at Sac State.
"If you put it in terms of what it would ordinarily buy you in classes, services, supplies and equipment, $1.8 million seems like a lot," Sheley said. "In the larger scheme of things, it is neither awful nor good. It's one of those cuts we can deal with."
The Chancellor's Office admitted the cut was done to bolster the state.
"The CSU is meeting its obligation to help the state meet its goals," Clara Potes-Fellow, spokesperson for the CSU Chancellor's Office, said. "For the CSU, this means a one-time, mid-year $31.3 million budget reduction. We believe this can be made without disrupting campus operations or impacting instruction."
Sheley said the situation with the voluntary give-back of funds is complicated.
"When you look at the bigger picture, you get a sense of a relationship to the state, present and longer term," Sheley said.
Lois Boulgarides, lecturer of kinesiology, said the CFA was planning on reopening contract negotiations due to the budget cuts once the state budget had been resolved. Faculty salary is the only aspect of the contract negotiation that can be reopened.
"It will be the same process we were planning, but now we will not be as amicable," Boulgarides said.
CSU faculty were scheduled to receive a three percent pay increase in July, which they did not get as a result of the late state budget. A scheduled two percent raise scheduled for June 2009, has also been postponed as a result of the budget cuts.
In the past, the CFA has threatened to go on strike because of salary increase issues, Boulgarides said.
The CFA has not set a date to begin contract re-negotiations. Boulgarides said she expects the CFA will meet with the Chancellor's Office in the next several weeks.
This conflict has arisen just as the budget for Sac State has been completed. Prior to the chancellor's $31.3 million cut, the campus budget was unchanged from the May budget revision. Student fees were increased this semester to help offset the cuts.
Members of Sac State's University Budget Advisory Committee prepared in advance for the budget shortfall by recommending that enough funds to ensure Sac State could eliminate the deficit and cover the funding cuts allocated.
"When you see two or three years out, then you will not have funds available anymore," Sheley said. "Something is going to happen; either we put ourselves in a position to be stable, or we sit and cross our fingers and hope that somehow the state's revenues are miraculously back."
While the campus administration feels it has an adequate plan to help Sac State weather the economic crisis, the CFA is not as optimistic.
"The University Budget Advisory Committee prepared several different scenarios, and they say Sac State will be OK," Wehr said. "I hope (the members) are right."
Derek Fleming can be reached at dfleming@statehornet.com
Because of this, Sacramento State will be forced to bear an additional $1.8 million cut to the already underfunded campus budget.
This unexpected cut comes in the wake of dedicated efforts by the Alliance for the CSU, an organization made up of administrators, faculty, students and local residents throughout the CSU system, to reduce the impact of a major funding cut by the state. Last semester, the alliance was able to restore $97.6 million to a budget that was slashed by more than $300 million.
Reed apparently made the decision of his own volition. His office then released a statement claiming the CSU was "informed" of the cuts by the state's Department of Finance.
It was six days later that faculty and administrators learned the cuts were voluntary. Reed had given back one-third of the money the alliance had fought for.
The California Faculty Association said in a press release, "In a communication to CSU employees last week, the chancellor misled the campus community by incorrectly reporting the CSU community is among the agencies that need to cut a total of $390 million from the current budget."
"The chancellor's give-back of $31.3 million is voluntary - and he knows it," the CFA said in the release.
The recently-enacted state budget has run into problems because of the slow economy and the housing crisis.
Kevin Wehr, associate professor of sociology and Sac State CFA chapter vice president, said the chancellor's actions were "reprehensible."
"I find it unconscionable that he would do that… without so much as a request for comment from those whose work went into getting that money in the first place," Wehr said. "We fought really hard for that, and I feel betrayed."
Joseph Sheley, provost and vice president of Academic Affairs, said the $1.8 million returned could have been put to good use at Sac State.
"If you put it in terms of what it would ordinarily buy you in classes, services, supplies and equipment, $1.8 million seems like a lot," Sheley said. "In the larger scheme of things, it is neither awful nor good. It's one of those cuts we can deal with."
The Chancellor's Office admitted the cut was done to bolster the state.
"The CSU is meeting its obligation to help the state meet its goals," Clara Potes-Fellow, spokesperson for the CSU Chancellor's Office, said. "For the CSU, this means a one-time, mid-year $31.3 million budget reduction. We believe this can be made without disrupting campus operations or impacting instruction."
Sheley said the situation with the voluntary give-back of funds is complicated.
"When you look at the bigger picture, you get a sense of a relationship to the state, present and longer term," Sheley said.
Lois Boulgarides, lecturer of kinesiology, said the CFA was planning on reopening contract negotiations due to the budget cuts once the state budget had been resolved. Faculty salary is the only aspect of the contract negotiation that can be reopened.
"It will be the same process we were planning, but now we will not be as amicable," Boulgarides said.
CSU faculty were scheduled to receive a three percent pay increase in July, which they did not get as a result of the late state budget. A scheduled two percent raise scheduled for June 2009, has also been postponed as a result of the budget cuts.
In the past, the CFA has threatened to go on strike because of salary increase issues, Boulgarides said.
The CFA has not set a date to begin contract re-negotiations. Boulgarides said she expects the CFA will meet with the Chancellor's Office in the next several weeks.
This conflict has arisen just as the budget for Sac State has been completed. Prior to the chancellor's $31.3 million cut, the campus budget was unchanged from the May budget revision. Student fees were increased this semester to help offset the cuts.
Members of Sac State's University Budget Advisory Committee prepared in advance for the budget shortfall by recommending that enough funds to ensure Sac State could eliminate the deficit and cover the funding cuts allocated.
"When you see two or three years out, then you will not have funds available anymore," Sheley said. "Something is going to happen; either we put ourselves in a position to be stable, or we sit and cross our fingers and hope that somehow the state's revenues are miraculously back."
While the campus administration feels it has an adequate plan to help Sac State weather the economic crisis, the CFA is not as optimistic.
"The University Budget Advisory Committee prepared several different scenarios, and they say Sac State will be OK," Wehr said. "I hope (the members) are right."
Derek Fleming can be reached at dfleming@statehornet.com
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Whathappened
posted 11/12/08 @ 5:19 PM PST
This story shows what schools are a funding vehicle for the Teachers, and Adminstrators. They always cry about the students but when it comes to the bottom line all they really care about is their pay. (Continued…)
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