|Proposed State Budget
Calls For Eliminating Fee Increases
The Governor's approval of new revenue
for the Cal State University system offers financial relief
to students and the Universitys.
Feb. 2, 2006
Gov. Arnold Schwarzenegger has proposed $215
million in new revenue for the California State University.
The proposal, announced Jan. 10, fully funds the trustees' budget
request for 2006-07 based on the Higher Education Compact
and provides enough funds to eliminate student fee increases
scheduled for fall 2006.
The proposed budget provides nearly
$2.8 billion in state general fund revenue to the CSU, which
represents a 7.3 percent increase over the current budget
year appropriations. Also included is $54.4 million above
the state's general
fund commitment within the Higher Education Compact to eliminate
the proposed fee increases of 8 percent for undergraduate
and 10 percent for graduate students.
budget proposal is good for the students, their families
and the CSU,” said Chancellor
Charles B. Reed. “The elimination of the fee increase
provides financial relief to middle-class students, affording
them more time to study and less time working to pay for
the additional fee increase.
“The 2006-07 budget augmentation
for the CSU reinforces the governor's commitment to
offer more students an opportunity to achieve a college degree
and to meet the demand for an educated workforce that can
only strengthen California's
As agreed to in the compact, the budget
provides a 3 percent general fund increase ($75.8 million)
for general operations, and $57.7 million for a 2.5 percent
enrollment increase. This will open university doors for
more than 11,000 additional students and increase total enrollment
in the CSU to approximately 435,400 students.
was subject to three years of budget reductions that resulted
in a loss of $500 million to the university,” said
Richard West, CSU executive vice chancellor and chief financial
officer. “This budget recognizes and begins to address
some critical funding issues faced by our campuses, as well
as the impact of those budget reductions on students, faculty,
and the delivery of education in the classroom.”
addition to the base compact funding, the governor supported
$2.3 million to expand masters-level nursing programs, and
an augmentation of $1.1 million to increase the number of
kindergarten through 12th grade math and science teachers.
CSU plans to use $77.4 million of the Higher Education Compact
monies to fund a 3 percent compensation pool for all employees
and also initiate a five-year strategic plan to begin reducing
salary lags for all CSU employees.
Combined, they represent
an overall compensation increase pool of 3.64 percent for
2006-07. With respect to the compensation for represented
employees, the amount of such compensation shall be subject
to collective bargaining for the 3 percent compensation pool,
as well as increases to reduce salary lags.
If the legislature
approves the fee elimination as proposed by the governor,
CSU students will pay state university fees at current year
levels in 2006-07: $2,520 for undergraduates, $2,922 for
teaching credential students, and $3,102 for graduate students.
The CSU continues to have the lowest fees in the country
among comparable public institutions.
The next steps in the
budget review process include the February budget review
by the Legislative Analyst's Office,
followed by the budge subcommittee meetings in March or April
and the governor's announcement of the May revise of
the January budget projections. June 15 is the official deadline
for legislative budget approval.
back to News Front