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Greetings members of the Cal State Northridge community.
This message is being taped to provide for you as much information as I have available about the status of the California budget situation, its consequences to the CSU, and most importantly to Cal State Northridge. I'm going to begin by describing for you what it is we know about what's taking place at the state and the CSU system level.
Then I'm going to try to translate that into specific actions and facts for us here at Cal State Northridge.
And finally, I want to close by talking briefly about what I know is the human toll of this uncertainty and ambiguity on each and every one of you.
Let me begin with what it is we know about what's happening at the state.
Today is Friday, July 17th. On this date at this time the Legislature and the Governor have not yet come to agreement on a final budget for the State of California.
We do believe that the number that refers to the reduction for the California State University, that is part of the budget package they are looking at, is about $584 million.
As a point of reference, that's a 16% reduction in dollars from the state for the CSU in comparison to the '07-08 fiscal year. So, it's a pretty substantial reduction. We know that at the system level and in fact on most of the campuses, about 80% of the budget is in employee compensation.
That large number in employee compensation has meant that at the system level, a great deal of attention over the last month has been given to working with unions that represent our employees to look at possible ways to create some one-time savings through the use of furloughs for various employees.
Each union is at a different stage of discussions with the CSU around these furlough plans, and I would direct you to the campus web page and to the CSU web page for specific information on each of those particular unions.
We do know that the Board of Trustees, at its Tuesday, July 21st meeting, will consider an action to raise fees for CSU students. Out-of-state students, if the board approves the proposal, will have their tuition increase by 10%. In-state students, if the board approves the action, will have their state university fees increase by 20%.
We also know that even if these revenue enhancements are approved, and even with the one-time savings that the system and the campuses will have through furlough dollars, that the system and yes, each of the campuses, will have some additional reductions that each of us will have to figure out how we are going to make.
So let me try to translate this into what it is we know for Cal State Northridge as 7% of any number that includes the financial and budget information for the CSU. So, some of you are quick and have already done this. $584 million at the system level, 7% translates into for Cal State Northridge in '09-10 about a $41 million reduction. It's a fairly substantial reduction.
We are dependent upon actions at the system level for decisions related to employee furloughs. We do have a tentative plan that we have developed that will handle furloughs for CSUEU employees, if the members of that union approve the plan that they have negotiated with the Chancellor's Office, and this furlough plan would also cover management, administrators and all other non-represented employees such as confidendential employees.
As soon as those actions are completed at the system level and after our proposed furlough plan is approved, we will make that plan available to all of you through meetings in the divisions with managers and employees explaining what the plan is, what the constraints are, and how we will move forward in implementing the furlough plan for our Cal State Northridge employees. We have tried to develop a plan that is humane, that recognizes that we're trying to give something back to you in the way of days that will provide some break from your work here at the university. Let me simply also add that a furlough means that you don't work. That you're not supposed to work. That we don't expect you to work.
It also means there is a reduction in pay. It's a little more than 9% per month, spread over a 12-month period. These furlough plans are scheduled to end on June 30th, 2010.
We also know here at Cal State Northridge that our enrollment on the campus is going to be reduced. For '09-10 our enrollment has already been reduced to the '07-08 level. And we have also been asked, directed, to reduce our enrollment for 2010-11 to about 23,000 full time equivalent students.
A shorthand way of understanding that is that we're going to have a lot less students here at Cal State Northridge.
We're going to be offering fewer classes because we have fewer students and in the various service and support offices of the university, we're going to be working with and helping far fewer students than we have over the last several years.
It's also quite clear that as a universtiy we're not going to make as much progress during the current year and probably in '10-11 on the university's goals. You know that we have been guided by a university plan in our efforts over the last several years.
And with a reduction in the time available to our employees to contribute their work and good energy, some of that progress will be slowed down. But we will continue to make progress in improving the university. That will continue to be a major priority.
I would say, finally, that as I look at the situation here at Cal State Northridge, I want to reiterate that we are still in a comparative advantage, relative to some of our sister campuses. We have had prudent decision-making, very fiscally conservative decision-making, over the last several years as we have anticipated a set of budget reductions. Albeit, honestly, none of us anticipated the seriousness, the unprecedented character of these budget reductions.
Finally, I want to say a few words about the human toll of this set of budget circumstances and uncertainty on so many of you that are integral to this university's success. Over the last several weeks, I have tried to get out to campus department offices to talk with individuals. All of those conversations have confirmed for me the anxiety, the uncertainty, the concerns that people in this community have about what is happening to them.
The personal consequences are direct for many people in the campus community. It will mean a reduction in financial assets. For others it's uncertainty about what is really happening to you in your employee category here at Cal State Northridge. There's very little that I can do directly about that harm and that uncertainty.
I can pledge to offer to you as much concrete information as we have as soon as we have that information available. And I make that pledge.
I urge you to check the campus budget news page. It's right on the campus web page. It's in the upper lefthand corner. We're updating that and the frequently asked questions, sometimes several times a day.
I also will probably use this method of the video message to convey additional information to you as soon we get it.
And as soon as we have the details approved and we can move forward with the implemention of information on the furloughs, again I pledge to you that through Human Resources and the Vice Presidents' Offices, we are going to get that out to you as soon as we possibly can.
Finally, I would say thank you for being willing to endure the uncertainty, the anxiety, as you continue to support this university and its students. For the students who are here, we want to make sure that we continue to provide the best possible experience, so that they remember Cal State Northidge as the kind of institution we have seen to it that it is, and to assure that it is in the future. I want to thank you for that work in these trying times.
I want to thank you for your commitment to the university. And I look forward, yes, I look forward to working with you as we work to keep Cal State Northridge strong during a very, very difficult time for the university, and certainly for the State of California.