This information applies to pages in the CSUN template system.Windows-press ALT + an access key. Macintosh-press CTRL + an access key.
.
January 2, 2009
To all Faculty and Staff,
You have probably been following media reports of the state's current cash flow
crisis and ever-worsening budget situation. At the time of this writing, Sacramento
has yet been unable to arrive at a budget resolution.
Due to this situation, the state Department of Finance has ordered the CSU system
and other state entities to temporarily halt all state-bond funded construction
projects. This action was taken because the state has no current access to the
bond market due to the yet unresolved requirement to adjust the 2008-09 state
budget in accordance with mid-year revenue projections and the state's current
fiscal crisis. Under normal circumstances state bonds are sold to provide long-term
financing which, in turn, enables the state to borrow short-term funds to provide
cash flow for these projects. Due to the state's inability to issue general obligation
bonds, however, access to cash has been severely curtailed and all claims for
state-funded construction projects have been frozen.
At California State University, Northridge, this emergency action directly affects
continued construction of the Valley Performing Arts Center project, Chaparral
Hall (previously called Science 5), and several minor capital improvement projects.
Although we do not know how long this suspension will last, we have been directed
by the CSU System at this time to inform contractors to expect a 90-day suspension.
Official steps were taken on December 29th to suspend further work on the Valley
Performing Arts Center project. Since Chaparral Hall is very close to completion,
we are exploring with the Chancellor's Office possible alternative sources of
funding for continued work to ensure that the building can be properly sealed
and protected from the elements. We also are exploring possible ways by which
the building might be put into at least partial use in the near-term.
It should be clarified that this action on the part of the state does not affect
non-state-funded projects, including our G3 parking structure and student-housing
projects currently under construction. These projects are funded through CSU
bonds backed by parking and housing fees. Therefore, these projects will continue
as planned.
Certainly this emergency action has serious consequences for some of our campus
projects and will result in substantially increased costs of construction once
work is resumed. At this time, we do not know how much additional cost may be
involved. And, of course, we are disappointed that the construction of much anticipated
and badly needed improved space for our academic programs must be delayed. Our
thoughts also are with the many workers, including construction contractors,
subcontractors, and other building professionals and suppliers affected by this
halt in work.
It is particularly painful to make this announcement at the beginning of a new
year and a new semester. Indeed, our challenges have increased rather than diminished
with this news. However, as during other times of crisis, I remain confident
that we at California State University, Northridge will continue to provide quality
academic programs and services to our students using resources currently in place.
Even as we acknowledge this difficult situation, let us continue our work and
remain focused on and committed to our educational mission.
Best wishes for an enjoyable and productive Spring 2009 semester.
Jolene Koester
President
Click here to return to the President's Office website's main page.
If you have comments about this page, please contact the President's Office.
California State University, Northridge at 18111 Nordhoff Street, Northridge, CA 91330 / Phone: 818-677-1200 / © 2009 CSU Northridge