Governor's budget gives more money to CSUs
Gov. Arnold Schwarzenegger
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By Maria Miranda
The Collegian
California State Universities may see a $215 million increase in new revenue thanks to Governor Arnold Schwarzenegger’s proposed budget.
The proposed budget includes revenue which will eliminate the expected fall 2006 fee increase of 8 percent for undergraduates and 10 percent for graduate students.
“I know I can speak for students and parents who are relieved to have a break in the annual fee,” John Welty said at the Spring Faculty and Staff Assembly.
Welty added that it is important to keep higher education as affordable as possible, because many students and their families struggle to pay university fees and costs.
If passed, students will pay current university fees of $2,520 for undergraduates, $2,922 for teacher credentials and $3,102 for graduate students.
The new revenue is based on the six-year Higher Education Compact agreement. The compact is between CSU, UC and the governor and would run from 2005-06 to 2010-11. The compact promises extra funding in exchange for the schools following a number of accountability measures such as the total efficiency of graduating students and the number of degrees given.
John Welty |
Specifically, the compact grants a 3 percent general fund increase ($75.8 million) for general operations for the first two years and a 2.5 percent increase ($57.7 million) towards new enrollment. The new enrollment increase will allow more than 8,000 additional students to attend CSU. The enrollment increase is meant to help CSU recover from enrollment decreases that have occurred over the years.
The compact further promises a lager increase in the general fund of 4 percent for the 2007-08 through 2010-11 school years. Also, a 1 percent increase is provided for core academic needs such as instructional equipment and technology beginning in 2008-09.
In addition, the governor plans to give $2.3 million to the master-level nursing programs and $1.1 million for math and science teacher education.
The possible new revenue has educators such as Welty excited about CSU fiscal future.
“I’m very encouraged to see that the Governor’s proposed budget would boost CSU funding,” Welty said.
“It’s also significant to note that as our state’s economy improves state leaders are quick to reinvest in higher education.”
The new revenue is exciting news for the 23 CSU campuses since the last three years have seen budget cuts of over $500 million.
The CSU hopes to put the $215 million towards a number of different areas which has seen cutbacks over the years. CSU will allocate $70.1 million to costs such as direct instruction, academics and any student services related to increased enrollment. It plans to use $77.4 million for a 3 percent compensation pool for all school employees. Also regarding school employees, in 2006-07 the universities plan to begin a five-year plan to decrease salary delays.
In addition, the CSU will use $33.6 million for costs it must pay despite its financial status. These are costs such as health benefits for employees, new space and energy. Finally, it plans to set aside $10 million for technology needs such as libraries, deferred maintenance and instructional equipment
The goal of the compact is to create stability within the CSU system. After the first two years of the compact, it is believed the state will experience economic growth to fund the budget. Essentially, the compact plans to create revenue through giving the extra revenue. For example, the 2.5 percent increase towards student enrollment is projected to produce $26 million in new revenue.
The budgets review process begins in February. The deadline for legislature to approve the proposed budget is June 15.
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