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April 2, 2013 > CSU's balanced budget plan

CSU's balanced budget plan

Submitted By Stephanie Thara

At its regular meeting held on March 19, the California State University Board of Trustees discussed the balance of priorities for the $125.1 million increase proposed by the Governor for the 2013-2014 fiscal year. The budget plan presented to the board focuses on three major areas - student access and success, faculty and staff compensation and mandatory costs.

Overall, the proposed increase in state support for the CSU would bring state funding levels to $2.3 billion for the support of university programs and operations. This reverses the trend of dramatic state support declines that cut more than 30 percent of state funding - or nearly $1 billion in annual support - from the system over five years.

Based on the Governor's proposal, the CSU has no plans for any tuition fee increases for the 2013-2014 academic year.

The system will also begin to address the unprecedented demand for a CSU education. An investment of $21.7 million will allow the CSU to grow by almost 6,000 students across the system. Additionally, the Governor's budget directs $10 million for online strategies to get more students through so-called "bottlenecks." Finally, the CSU will direct $7.2 million to reduce time to degree, close the achievement gap and improve graduation rates.

A modest compensation pool will recognize the work of faculty and staff as they serve students. The $38 million proposed for this purpose amounts to 1.2 percent of CSU compensation. System and campus executives as well as campus presidents are not included in this compensation pool. A total of $48.2 million will cover mandatory increases for employee health benefits, operation and maintenance of new space, and energy costs.

In May, the governor will issue a revised budget that will provide clarity on state revenue levels and funding priorities. The legislature is expected to pass a budget by June 15. The new fiscal year begins July 1.

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