CALIFORNIA FACULTY ASSOCIATION
California State University, Sacramento

 CFA Analysis of the Governor's Budget

  Overview:
• Governor Schwarzenegger’s budget proposal calls for over $1 billion in funding cuts to higher education, including a cut of $312.9 million from the funding promised to the California State University for 2008/09 under the Compact agreement.

• The Governor also rejected the CSU’s request for $73.2 million that would provide much needed funds and avoid another student fee increase.

• In comparison with the current year, the 2008-09 budget proposes $97.9 million less in state general funds for CSU. This amounts to a 3.3% general fund reduction for the CSU.

• The 2008-09 budget request approved by the CSU Board of Trustees was consistent with the Higher Education Compact agreement between by Chancellor Reed and the governor. While failing to propose funding amounts to which he agreed when he made the deal in 2004, Gov. Schwarzenegger also called for student fee increases for CSU students and rejected the Compact’s cap on fee hikes at 10% per year.

• A 10% increase in undergraduate student fees would bring fees to $3,048 per year – 113% higher than they were in 2002 when the state faced its last major budget crisis.

• The Governor’s Budget assumes CSU will receive about $109 million from a 10% fee increase in 2008-09 but includes no new funding for enrollment growth.

• At a minimum, a $386 million augmentation to the Governor’s budget proposal is needed for the CSU to keep its doors open to qualified students, maintain access, and ensure an adequate quality education to enrolled students:
   $312.9 million to restore what was promised
   $ 73.2 million to buy-out the proposed 10% fee increase

 -more-