An overview of the fiscal condition of the state and the “budget gap” assumptions. Efforts to date by the Administration and Legislature to address the state fiscal crisis. Actions necessary to resolve the fiscal increase including expenditure reductions, revenue enhancements, and the realignment of state programs to local government. How the CSU fits into the overall state budget situation.

State fiscal assumptions when the Board of Trustees approved the 2003-04 CSU support budget in October. Description of the mid-year budget reductions, student fee increases, and goals to ensure access, avoid layoffs, and protect student services and instructional programs. Governor’s January budget for the CSU including proposed budget reductions, enrollment expectations, student fees, and financial aid. Outline the issues identified by the Legislative Analyst Office and CSU assessment of higher education issues (access, student services, student fees, financial aid) and specific concerns to the CSU (student/faculty ratios, outreach programs, Center for California Studies) that will be discussed before the legislative subcommittees.

The early 1990’s marked the last state fiscal crisis posing serious challenges to CSU similar in proportion to those before us again today. To begin the dialogue on options and alternatives for the system to meet the commitment to serve students with the courses and services they need to receive a quality education, it is important to understand the current budget in the context of total need, existing shortfalls and their implications for the campuses, students, faculty and staff.

Outline guidelines and present the assignment for small groups: identify options/alternatives to manage the CSU budget and make our argument in Sacramento.

Presentation by each breakout session working group, identification of alternatives for the 2003-04 budget.