|
President Robert C. Maxson's
2003-2004 Budget Update
<
Download this section in PDF >
DATE:
February 19, 2003
TO: University Community
FROM: Robert C. Maxson, President |
 |
|
SUBJECT:
Budget Update |
The campus is
alive with people once again, and once
again we are engaged with what makes
this place so fetching to us all—the
students.
I know that over
the past several weeks you have read
and heard much about
the state's budget. 'The bottom line—and
it really is a bottom line—is
that California
will suffer an estimated $35 billion
shortfall. That is a lot
of money, even in a state the size of
ours,
even in
these times.
In order to keep
the wheels of the state turning, the
Governor
has proposed
drastic
cuts in various state budgets,
and we, of course, are not exempt.
In
his letter to faculty and staff,
the Chancellor has clearly outlined
the fiscal
impact this proposed budget
would have on the CSU. And although
we are reminded
in his letter that this budget
is not yet final, we must plan
as if
it were,
of course, since it is all
the information that we have to work
with. In our
collective planning we are
looking for academically
sound and compassionate ways
to absorb the proposed budget cuts.
Nonetheless, when
the new fiscal year starts on July 1,
our campus will face financial challenges
of a dimension we have not faced in a
decade. The two-phased budget strategy
adopted by the Governor resulted in a
mid-year reduction to our current budget.
Our share of the mid-year reduction was
$6.4 million. This cut was mitigated
by $2.4 million in revenue from the Trustees'
approved student fee increase. For our
students who need help, we will reserve
one-third of these fees for financial
aid, leaving us with $1.6 million to
offset budget cuts. Due to good planning
last year by the University's Budget
Committee, which includes faculty, staff
and students, we made provisions to cover
$1.3 million of this reduction. These
two actions lessened the impact in the
current fiscal year to $3.5 million,
or a 2% reduction, which has already
been made by the operating divisions.
The total CSU
system-wide impact for the next fiscal
year, which begins July
1, 2003, is a reduction of $447.7 million.
Our share will be $34 million. There
are some mitigating elements contained
in the Governor's budget plan, including
an increase in student fees, which would
total $18 million for our campus. Again,
of that $18 million, one-third will
be dedicated to financial aid. In addition,
in his proposed budget we will receive
$15 million in new state funding and
fee revenues for our projected enrollment
growth. As a result of our earlier planning,
which includes using reserves and reallocating
funds, we will
be able to reduce the required-cut to
our operating budgets. Therefore, assuming
the Governor! s recommendations are enacted
by the LegislatUre, the cumulative
total permanent budget cuts for our campus
next year will be approximately 4%.
Even though the
Governor's proposed budget for the CSU
and the System's budget
strategy may represent the best-case
scenario for our campus, there will,
nonetheless, be a substantial impact
on classes and services. And if we experience
deeper cuts than those proposed by the
Governor, there is no question that it
will also severely limit the number of
students that we can admit in future
years. This is because we simply will
not be able to provide enough classes and
adequate student services.
It
is obvious that we will all be asked
to do more with less. Still, as you know
better than most, budgets come and budgets
go; such are the rhythms of life. We
will stay by stations and continue on
with our duties whatever the numbers
are. The important
thing
for
us is to
stay focused on our mission and to keep
our momentum. We have in place the
same high quality faculty we had last
year—which was a great year—and
we have an
abundance of the finest students available
anywhere. In short, the
people are still here who have made us
the very successful institution we are
today.
So we will manage
the cuts and we will do as we have always
done—we will go
about the business of education with
the same attention and respect as we
do in
more prosperous times, and
maybe even more so, because that's the
kind of community we are.
So, welcome
back! We're going to have a good year
in spite
of everything!
And, as always,
I thank you so warmly for your support.
|