Eureka Reporter

By CAROL HARRISON, The Eureka Reporter

Published: Jan 10 2008, 8:00 PM

Neither the California State University nor the University of California will be asked by the governor to absorb a mid-year reduction to balance the state budget.

“While the governor has not included the CSU, he is submitting that plan to the Legislature for its review and recommendations,” CSU assistant vice chancellor for budget Patrick Lenz said. “They may find (some reductions) totally unacceptable. To the extent they reject those recommendations, then, they’ll have to find cuts.”

Asked if he felt the CSU was at any risk from a legislature controlled by Democrats, Lenz said, “We’re definitely worried and I won’t want to give the impression we’re not. I don’t want to assume anything in this process.”

Humboldt State University spokesperson Paul Mann said yesterday that HSU’s budget office has received “nothing whatsoever from the CSU office about any mid-year cut.”

Mann said he knew of no plans in place identify cuts should the mid-year budget axe shift to HSU.

Gov. Arnold Schwarzenegger declared a fiscal emergency yesterday, the same day he presented a proposed 2008-09 budget that includes 10 percent reductions to nearly all General Fund departments and programs.

Mann said the CSU would notify the campus by the end of February as to what HSU’s share of the CSU budget would be for 2008-09.
Under the provisions of Proposition 58, the governor can declare a fiscal emergency in the face of substantial revenue shortfalls.
The governor is then required to call a special session of the legislature and present legislation to correct a projected shortfall.
If the legislature does not approve and send legislation to the governor to address the fiscal emergency within 45 days, it is prohibited from acting on any other bills or taking joint recess until such legislation is passed.
The Department of Finance projected a $3.3 billion shortfall that could reach $14.5 billion by the end of the 2008-09 fiscal year.

The governor’s 2008-09 budget proposal includes a $4.4 billion allocation to the CSU.

The Department of Finance said that allocation represents a net increase of $35.1 million when compared to the revised 2007-08 budget.

But a CSU press release called it a $312.9 million cut to the 2008-09 budget approved last year by the CSU Board of Trustees.

“Here’s the relationship: the $35 million is an error by the Department of Finance in that it assumes the CSU will get funding for enrollment for 2008-09 and currently the governor’s budget does not provide that funding,” Lenz said. “In essence, there is minimal impact on the current funding level, but there is a dramatic impact on our ability to do things in 2008-09.”

According to the CSU, the proposed budget fails to fund access for 10,000 students, $36 million in mandatory costs including employee health benefits, and compensation agreements for CSU faculty and staff.

“What I am concerned for is the ability to take students in 2008-09 and what that means for a Humboldt campus that has become very successful in recruiting students of diversity,” Lenz said.

In addition, the CSU stated $73.2 million in General Fund revenue is needed to buy out a student fee increase and is not included in this year’s budget.

“Based on the governor’s budget, funding of $386.1 million is needed to fund 2.5 percent enrollment growth supporting an additional 10,000 students, employee compensation, mandatory costs, and avoid a student fee increase,” the release stated.

“The governor says the system is broken, but then he says we have to live with whatever the system spits out — even if that means closing parks, socking it to the students and ignoring the elderly, poor and disabled,” Assembly member Patty Berg (D-1st) said.

Lenz said CSU Chancellor Charles Reed met with the campus presidents yesterday to look at systemwide options “that may be painful but fair to each campus.”

“I’m glad I’m not there,” he said. “I’m sure it’s going to be a very, very difficult discussion.”

“We recognize this is a difficult budget year, but these cuts will impact student access to the California State University because we will not be able to admit all the students who are qualified,” Reed said.

“As the public university that prepares the majority of California’s workforce, these budget cuts will have a direct impact on the state’s economy and on the key industries that our graduates enter such as nursing, teaching, agriculture, business, public administration and technology.”