CSU Employee Update

The California State University Employee Update

Monday, August 24, 2009

CSU, Skilled Trades Union Reach Tentative Agreement

The CSU and the State Employees Trades Council-United (SETC) have reached a tentative agreement that maintains the current salary scale with no increases, but provides the option of reopening salary and benefit terms in the 2010-11 fiscal year. The agreement, which is in effect until June 30, 2011, was reached following recommendations by a neutral fact-finder.

In addition to the contract, SETC will poll its members this week on the CSU’s proposal to furlough employees two days a month as part of the university’s effort to manage a $564 million budget cut. SETC had previously chosen layoffs per its contract when the CSU began talks with all of its labor organizations on furloughs last month. Almost all of the CSU’s 47,000 employees began furloughs August 1.

SETC represents approximately 1,000 employees in skilled trades such as electricians, plumbers, carpenters and others who help maintain campus facilities.

The California State University Employee Update

Thursday, July 30, 2009

Two More Unions Agree to Furloughs

The California Faculty Association (CFA), representing approximately 23,000 employees, and the Academic Professionals of California (APC), representing 2,400 student service employees, have ratified agreements to implement a two-day-per-month furlough program.

They join members of the California State University Employees Union (CSUEU), representing 16,000 non-academic employees, and the United Physicians and Dentists (UPD), with 117 members, who will begin furloughs August 1 along with the CSU's executive, management and non-represented personnel. The State Employees' Trades Council-United (SETC), with 1,000 employees, has elected layoffs per their contract as has the International Union of Operating Engineers at the California Maritime Academy with 10 members.

Under the CFA furlough agreement, faculty members will work with individual campus administrators so that class schedules for students are minimally disrupted. For example, if a furlough day is taken on a day of instruction, alternative out-of-classroom assignments could be given to students.

Employee furloughs are one component of a plan the CSU is implementing to manage a $564 million deficit to its 2009-10 budget. Employee salaries and benefits make up 85 percent of the CSU's operating budget. Furloughs will reduce the CSU's salary expenses by $275 million and will preserve jobs as well as 22,000 course sections or 15 percent of classes for students for the academic year.

“We appreciate that we were able to come to an agreement with CFA and APC because furloughs will help to save jobs, preserve employee health and retirement benefits, and ultimately allow us to better serve students,” said CSU Vice Chancellor for Human Resources Gail Brooks. “Unprecedented reductions in state funding have left the CSU with an enormous budget deficit, and reducing our employee costs is a critical part of the CSU's action plan to address this shortfall.”

In addition to furloughs, the CSU is implementing student enrollment reductions and a student fee increase, a salary and hiring freeze, and travel and purchasing restrictions. Campuses will also cut their 2009-10 budgets proportionally $183 million.

“These are challenging times for everybody, and there are no good options when you are confronting a massive set of budget cuts, said CSU Board Chair Jeffrey Bleich on behalf of the trustees. “But Chancellor Reed has developed a balanced approach that shares this burden equitably among every member of our community. By focusing on our common mission, we can move forward during these difficult times.”

The California State University Employee Update

Friday, July 24, 2009

Faculty Union Agrees to Discuss Furlough Option

Members of the California Faculty Association (CFA) have voted 54 to 46 percent in favor of negotiating furloughs with the CSU as part of the university's plan to mitigate a $584 million cut to its 2009-10 budget. The CFA represents approximately 23,000 employees; however, only 8,800 of the union's 13,000 dues-paying members cast ballots.

The CSU is proposing to furlough its employees (except public safety personnel) two days per month to reduce spending by $275 million and to preserve jobs. Employee salaries and benefits make up 85 percent of the CSU's operating budget.

"We are facing a financial crisis and need to move forward to reduce our employee costs," said Gail Brooks, Vice Chancellor for Human Resources. "The faculty vote to negotiate furloughs will help save jobs, preserve health and retirement benefits and allow us to better serve our students."

The CSU, since June 3, has been negotiating furloughs with several of its labor unions as their labor agreements do not include provisions for furloughs. Chancellor Charles B. Reed announced a deadline of July 28 at 5 p.m. for those unions who have not reached a final agreement on furloughs so campuses have time to prepare for the new academic year which begins August 24.

"The CSU is prepared to work continuously with the leadership of the CFA to finalize a furlough agreement to meet the deadline," said Brooks.

Two of the CSU's labor unions--the California State University Employees Union (CSUEU), representing 16,000 non-academic employees, and the United Physicians and Dentists (UPD), with 117 members--have ratified a furlough agreement. They will begin observing furloughs August 1 along with CSU's executive, management and non-represented employees.

The CSU is in the process of negotiating furloughs with the Academic Professionals of California (APC), representing 2,400 student service employees. The remaining unions have opted for layoffs per their contracts.

In addition to employee furloughs, the CSU has implemented student enrollment reductions and a student fee increase, a salary and hiring freeze, and travel and purchasing restrictions to close the budget deficit. Campuses will also cut their 2009-10 budgets proportionally $183 million.

The California State University Employee Update

Wednesday, July 15, 2009

Trustees to Finalize Plan on CSU Budget Deficit

Faced with a projected $584 million shortfall to its 2009-10 budget, the CSU Board of Trustees will meet July 21 to finalize plans to manage the budget deficit. The budget deficit is the result of the state's reduced support to the CSU as lawmakers contend with closing California's $26.3 billion budget gap.

At next week's meeting, the trustees will vote on a proposed $672 fee increase for full-time undergraduate students as well as increases for part-time and graduate students. The trustees will also vote on a proposed $990 tuition increase for full-time non-resident students.

In addition, the trustees will take action on proposed changes to state regulations that will allow the chancellor to furlough management and executive employees.

These are a few of several measures the CSU is implementing as part of a comprehensive, balanced approach to solve the budget deficit which stems from a historic reduction in state support. Given the magnitude of the deficit—the largest in CSU's history--no single solution is sufficient. The CSU's plan includes a combination of employee compensation reductions focused on furloughs, student enrollment reductions, an increase in student fees, and additional cuts that will be implemented campus-by-campus.

"These are not easy choices," said CSU Chancellor Charles B. Reed. "We are asking everyone to make sacrifices so that we can continue to serve as many students as possible and to preserve as many jobs as possible under very difficult circumstances."

Here is a look at the effects of the reduction in state funding on the CSU and the actions the CSU is taking to respond:

State Budget Impacts on CSU Students:

State general fund support of the CSU for 2009-10 is expected to be $1.6 billion, $500 million below the level of state support provided a decade ago. At the same time, the CSU is serving 100,000 more students than it did a decade ago. To preserve quality and access and to maintain the resources needed to serve students, the CSU has been forced to take the following actions:

Limited student enrollment this past fall.
Reducing its enrollment by 40,000 students in 2010-11.
Closed student enrollment for winter and spring 2010.
Proposing to raise full-time undergraduate student fees by $672 per academic year and non-resident tuition by $990 per academic year beginning fall 2009.

CSU's Steps to Minimize the Impact on Students:

One-third of the proposed State University Fee increase will be set aside for financial aid.
This set-aside, as well as increases in financial aid included in the federal stimulus package, is expected to fully cover the fee increase for 187,000 of CSU's 450,000 total students.
CSU expects to receive an additional $81 million in Pell Grant awards for its neediest students. The CSU is the largest recipient of Pell awards in the country with more than 120,000 students receiving grants.
Federal tax credits, increased work study and student loan improvements will also offset the fee increase for many students.
The CSU is deferring State University Fee payments for the summer and fall 2009 term for CSU students who experience delays receiving Cal Grants from the California Student Aid Commission due to the state budget deficit.

State Budget Impacts on CSU Employees:

Employee salaries and benefits make up 85 percent of the CSU's operating budget. To manage the deficit, the CSU is forced to reduce labor costs and has taken the following actions:

The CSU has implemented a salary freeze for executives and a hiring freeze for non-essential positions.
The CSU is proposing to furlough its 47,000 employees, including management and executives, two days a month with the exception of public safety personnel. This would reduce spending by about $275 million and preserve 22,000 course sections or 15 percent of classes for students for the academic year.
The CSU is in the process of negotiating furloughs with several of its labor unions as their labor agreements do not include provisions for furloughs. To date, the California State Employees Union (CSUEU) has reached a tentative agreement.

CSU's Steps to Minimize the Impact on CSU Employees:

The CSU is implementing a furlough option to save the maximum amount of jobs possible. In addition, furloughs are temporary and do not affect employment status, health benefit eligibility or retirement benefits.
Furloughs reduce salary expenditures for the CSU while preserving jobs for employees and course sections and classes for students.
The CSU is covering its payroll. CSU employees will continue to be paid as normal and will not be subject to the IOUs the state controller is currently issuing.

State Budget Impacts on the CSU's Operations:

The state budget deficit has required the CSU to curtail construction projects and modify operations as follows:

More than 130 infrastructure projects on CSU campuses were suspended last December and restarted in April.
here is still a suspension on lease revenue bond funded projects, including five that are CSU projects.
The state budget has not provided funding for increased costs in energy, electricity and other operational necessities.
The state budget has not provided funding for increased costs in employee health benefits which have risen by $8.4 million this year.

CSU's Steps to Minimize the Impact on its Operations:

The CSU last fall implemented employee travel restrictions.
The CSU last fall canceled all non-critical equipment and supply purchases.
The CSU is covering the increases in costs for employee health benefits.

The California State University Employee Update

Wednesday, July 8, 2009

Trustees Discuss Plan to Manage Budget Crisis

Furloughs, enrollment reductions and a possible student fee increase were among the options the CSU Board of Trustees discussed Tuesday as ways to deal with a proposed $584 million budget cut, the largest in the system's history. The budget reduction is the result of the state's attempt to close a $26.3 billion budget gap.

"We have never before seen such a devastating cut in a single year," said CSU Chancellor Charles B. Reed. "I am concerned because the CSU system has a national reputation for access, quality and diversity."

Because employee salaries and benefits account for approximately 85 percent of the CSU's operating budget, large expenditure cuts will require significant reductions in labor costs, explained Robert Turnage, assistant vice chancellor for Budget. The magnitude of the CSU's problem, however, means that one single solution will not produce the needed savings. To illustrate, Turnage said the proposed $584 million cut is equivalent to the funding provided by the state for about 95,000 students, the approximate number the CSU graduates each year.

Part of the CSU's plan to reduce salary expenditures includes a furlough for all employees two days a month, which would reduce spending by roughly $275 million and preserve 22,000 course sections or 15 percent of all classes for students for the academic year. In addition, furloughs are temporary and do not affect employment status, health benefit eligibility or pay rate for retirement benefits. CSU executives, management and non-represented employees will begin furloughs August 1.

Labor agreements between the CSU and its employee unions do not include provisions for furloughs, therefore each union must agree to negotiate furloughs. If a union has not agreed to negotiate furloughs, the CSU will follow the options under the contract which may include layoffs and non-retention of temporary employees to reduce CSU's employment costs for that employee group.

The California State University Employees Union (CSUEU) representing 16,000 non-academic employees has reached a tentative agreement with the CSU and the Academic Professionals of California (APC) representing 2,400 student service employees has agreed to discuss furloughs. The CSU has met with the California Faculty Association (CFA) to discuss furloughs and the CFA has scheduled a vote of its membership beginning July 13. There are approximately 23,000 faculty personnel.

Employees in the public safety union will be exempt from furloughs and several other labor groups have either rejected furloughs or are still negotiating.

In addition to furloughs, trustees were briefed about student enrollment reductions for 2010-11. CSU will look to reduce its student enrollment by 32,000 students systemwide by using a combination of enrollment management tools such as increased grade point averages for out-of-area applicants.

There will also be a student fee increase considered at the July 21 Board of Trustees meeting that will go into effect this fall. While the exact increase has not been finalized, increases in financial aid included in the federal stimulus package will cover a fee increase for 187,000 of the CSU's 450,000 total students. The CSU also expects to receive an additional $81 million in federal Pell awards for its neediest students, and would also set aside one-third of any fee increase for financial aid. Tax credits, increased work study and student loan improvements will also offset the fee increases for many students.

The California State University Employee Update

Tuesday, July 7, 2009

CSU Employees Union Tentatively Agrees to Furloughs

The California State University Employees Union (CSUEU) representing more than 16,000 non-academic employees has tentatively agreed to furloughs two days per month. The CSU has been meeting with all of its labor unions to discuss furloughs as one way to mitigate a proposed $584 million cut to its 2009-10 budget. CSUEU is the first to reach an agreement, which is subject to ratification.

"While agreeing to furloughs is not an easy decision, the CSUEU has helped us move forward as we address the massive budget cuts the system is facing. This is an unprecedented crisis, and we appreciate CSUEU's cooperation as we put a plan into place to get us through the next year and beyond," said CSU Chancellor Charles B. Reed.

Collective bargaining agreements between the CSU and its employee unions do not include provisions for furloughs; therefore, each union must agree to negotiate furloughs. Furloughs would reduce the CSU's salary expenditures by approximately $275 million, as well as preserve 22,000 course sections or 15 percent of all classes for students for the academic year. Approximately 85 percent of the CSU's costs are salary and benefit payments.

Including management employees and executives, approximately 21,000 of the CSU's overall workforce of 47,000 employees will be furloughed beginning August 1.

A furlough is a mandated period of time off without pay. Furloughs differ from salary reductions and pay cuts in that they are temporary and do not affect employment status, health benefit eligibility or pay rate for retirement benefits. Employees are required not to work on furlough days. As with Gov. Schwarzenegger's previous executive orders, the CSU is not subject to his most recent order requiring state employees to take a third furlough day.

The California State University Employee Update

Monday, June 29, 2009

CSU Urges Faculty Union to Bring Furlough Option to a Vote

The California State University administration today urged the leadership of the California Faculty Association (CFA) to bring the concept of a two day per month furlough to a vote of its members. CSU has met with the faculty union three times to discuss the furlough option, but CFA has not yet scheduled a vote of its members. There are approximately 23,000 faculty members in the CSU; only dues-paying members of the CFA would be allowed to participate in a vote.

The concept of furloughs was proposed to all of the CSU's labor unions as a way to address an anticipated $584 million cut, or 13 percent reduction, to CSU's 2009-10 budget. Collective bargaining agreements between the CSU and its employee unions include provisions covering mandated non-retention and layoffs, but not furloughs. Each bargaining unit, therefore, must agree to negotiate furloughs. Two groups--the California State University Employees Union (CSUEU) representing 16,000 non-academic employees and the Academic Professionals of California (APC) representing 2,400 student service employees--have agreed to discuss furloughs.

"Time is of the essence and we need to prepare for the upcoming fall academic year on all of our campuses," said CSU Chancellor Charles B. Reed. "We have provided answers to the questions posed by the CFA during our last meeting, and are urging them to present the furlough option to their members for a vote. We need to move forward to address the massive budget cuts that the system is facing before the impacts are magnified.

"The CSU is facing an unprecedented crisis and it will take cooperation and shared sacrifice from all of us to get through this next fiscal year and beyond." The CFA's questions and the CSU's responses can be found here: http://www.calstate.edu/PA/News/2009/documents/cfa-furlough-questions.pdf.

Approximately 80 percent of the CSU's costs are salary and benefits payments. The CSU is proposing to furlough all of its employees (with the exception of public safety personnel) in all classifications, including management and executives, to help close the anticipated budget deficit. To date, approximately 21,000 of CSU's overall workforce of 47,000 employees are looking at furloughs.

If adopted by all employees, furloughs would reduce the CSU's salary expenditures by approximately $275 million. Other cost-saving options are being discussed to address the remaining deficit. The guiding principles Chancellor Reed has been working under are to "serve as many students as possible without sacrificing quality, and to preserve as many jobs as possible."

CSU has also initiated changes to Title 5 of the California Code of Regulations for management and executive personnel. The modifications would allow the system to alter provisions related to furlough, salary reductions and unpaid holidays. The change was put into place to meet a 45-day requirement should any action be needed at the July 21 CSU Board of Trustees meeting. The Title 5 revision can be found here.

The California State University Employee Update

Friday, June 26, 2009

State May Have to Issue IOU's; CSU Employees Will Receive Paychecks
State Controller John Chiang has announced that he will have to issue registered warrants or "IOUs" as early as July 2 if the legislature and governor cannot find a solution to close the $24.3 billion state budget gap. CSU employees, however, will be paid as they normally are and will not receive IOUs. Chiang said the state will have a $2.8 billion cash shortage at the start of the fiscal year July 1 which could grow to $6.5 billion in September in the absence of a balanced budget. More information: http://www.sco.ca.gov/.

System Leaders Meet to Discuss Budget Options
CSU Chancellor Charles B. Reed and the 23 campus presidents met this week to discuss options to manage a proposed $584 million budget deficit. While no details were finalized, discussions will continue with the Board of Trustees at a special meeting July 7. The trustees will then use their regularly scheduled July 21 meeting to adopt an action plan that will be implemented systemwide and at the campuses.

The California State University Employee Update

Tuesday, June 23, 2009

Two Labor Groups Agree to Furloughs to Address Budget Cuts
Members of two of the California State University's labor unions have voted to discuss the concept of two-day-per-month furloughs as the CSU deals with a projected $584 million budget cut.

The agreement comes from members of the California State University Employees Union (CSUEU) representing 16,000 non-academic employees, and the Academic Professionals of California (APC), representing 2,400 student service employees who were polled by their leadership about the proposed furlough plan. Since the CSUEU's and APC's labor agreements with the CSU contain only provisions for mandated non-retention and layoffs, the unions will need to agree to a proposed furlough plan.

Including employees in management positions who may be furloughed, to date approximately 21,000 of the CSU's total workforce of 47,000 employees are committed to considering furloughs as one way to address the budget deficit.

CSU has been meeting with its labor unions to discuss the furlough option along with other proposals to mitigate the impact of the budget reduction. Approximately 80 percent of the CSU's costs are salary and benefit payments, and the CSU is proposing to furlough all of its employees (with the exception of public safety personnel) in all classifications, including management and executives. The CSU recently initiated changes to Title 5 of the California Code of Regulations for management and executive personnel which would allow it to alter provisions related to furlough, salary reductions and unpaid holidays. The change was put into place to meet a 45-day requirement should action be needed at the July 21 Board of Trustees meeting. The Title 5 revision can be found here: http://www.calstate.edu/title5/index.shtml .

Although the state budget has not been finalized, Gov. Schwarzenegger's May revision of the state budget proposes a $584 million cut to the CSU's general fund support for 2009-10, representing a 13 percent reduction in state support from 2007-08. The furloughs, if accepted by all employees, would save approximately $275 million, and other cost-saving options are under discussion to address the remaining deficit. CSU Chancellor Charles B. Reed has been working with the campus presidents on an action plan and expects to release details in the next few weeks. Reed has indicated that the guiding principles are to "serve as many students as possible without sacrificing quality, and to preserve as many jobs as possible."

A furlough is a mandated period of time off without pay. Furloughs differ from salary reductions and pay cuts in that they are temporary and do not affect employment status, or health or retirement benefits. Employees are not required to work on furlough days.

The California State University Employee Update

Thursday, April 30, 2009

Special Election Will Impact CSU's Budget
Several important propositions will be before California voters during a special election May 19. Propositions 1A through 1E seek to stabilize California's current financial crisis and to implement long-term budget reform. The CSU Board of Trustees has endorsed a yes vote on Propositions 1A through 1E because of the direct impact the propositions will have on the CSU if they fail to pass. Most of the measures provide new revenues to help balance the state's General Fund budget over the next several years. This directly impacts the CSU as two-thirds of its budget comes from the state General Fund. More information, including the pro and con arguments for the measures, is available on the state's elections website. The last day to register to vote is May 4 and the last day to request a vote-by-mail ballot is May 12. See the voter registration website.

State Sells Bonds; Construction Projects to Resume on Campuses
Following the sale of $6.85 billion in Build America Bonds, Gov. Arnold Schwarzenegger announced April 22 that the state will restart more than 5,000 infrastructure projects, including more than 130 on CSU campuses which have been suspended since last December. California is the first state to sell the bonds which were created by the federal stimulus legislation passed in February to assist state and local governments in financing capital projects at lower borrowing costs. Campuses have been notified that they can restart all general obligation bond projects which were in various stages of design and construction and included libraries, performing arts centers, lab facilities, classrooms and other major infrastructure projects. "This is great news for the CSU in that it will allow our universities to resume building classrooms, dormitories, libraries, laboratories and many other vital projects that are needed to serve our students," said Benjamin Quillian, CSU's Executive Vice Chancellor and Chief Financial Officer. Based on the success of the bond sale, the Department of Finance has indicated that 10 months of funding will be supported. The Department of Finance, however, has not lifted the suspension on the lease revenue bond funded projects, including those five approved n the 2008-09 Budget Act.

CSU Makes the Case for Access and Affordability
CSU officials underscored to legislators recently the need for adequate funding to ensure the university remains accessible to the state's economically and educationally disadvantaged students. CSU Assistant Vice Chancellor of Budget Robert Turnage and Assistant Vice Chancellor of Student Academic Support Allison Jones made a presentation on CSU's access and affordability at the California Assembly Budget Subcommittee hearing on April 22. Jones provided a comprehensive summary of CSU's outreach programs to the state's underserved students illustrating how those efforts have paid off in improved participation from African American, Latino, Asian and Native American students. He emphasized that the CSU's financial aid options are shielding the neediest students from a potential 10 percent student fee increase, noting that 80 percent of all need-based undergraduate recipients will not pay a fee increase. The CSU Trustees will be asked to raise student fees 10 percent when they meet in May. The fee increase was included in the budget passed by the governor and the legislature in February. CSU representatives attended the hearing along with UC and community college officials to impress upon legislators the need to invest in the state's public higher education system. View the CSU's annual report on student outreach programs here: http://www.calstate.edu/SAS/documents/2007-08_OutreachReport.pdf.

The California State University Employee Update

Tuesday, April 21, 2009

Stimulus Funds for Education Will Provide Little Relief to CSU's Budget Deficit Flanked by state and local education leaders, Gov. Arnold Schwarzenegger announced April 18 in Long Beach that California is the first state in the nation to receive federal stimulus money that will be passed on to school districts and the state's universities. Earlier in the month, Schwarzenegger had filed an application with the federal government to receive California's share of the Education Stabilization Fund that was created as part of the federal stimulus bill. The governor's application calls for $268.5 million of one-time funds for the CSU. This amount includes $255 million that was already built into the CSU's budget that was passed by the legislature in February. Because the funds were part of the approved budget, they are not new and do not change the CSU's difficult budget situation. The governor's application does include $13.5 million of federal funds, one-time money that will not continue into future budgets. The $13.5 million will slightly offset the $50 million reduction that had been planned for in the 2009-10 budget. The CSU's budget, however, remains underfunded almost $587 million due to budget cuts and mandatory new costs for the 2008-09 and 2009-10 fiscal years.

In other CSU News, Some Points of Pride: California will face a serious shortfall in the number of college-educated workers it needs and the CSU is taking decisive action to address the problem. A recent report by the Public Policy Institute of California (PPIC), "Closing the Gap: Meeting California's Need for College Graduates," cites the need to find ways to invest in higher education that feed workforce development. The CSU has taken affirmative steps to increase the number of students attending and graduating from college through several programs that aim to improve community college transfer readiness, baccalaureate degree completion and college going high-school rates. Many of these initiatives, such as the Early Assessment Program, the "How to Get to College" poster, and the Super Sunday outreach program have received state and national recognition and have been emulated by universities across the country. Read the PPIC report here:
http://www.ppic.org/main/publication.asp?i=835.

CSU has 32 Fulbright scholars—more than one-third of California's share--for the 2008-09 academic year. California has 82 total scholars from all colleges and universities and the University of California system has 25. The Fulbright Program is an international educational exchange program sponsored by the U.S. government that provides opportunities to study, teach, conduct research and exchange ideas around international concerns. More information: http://www.cies.org/.

The CSU Chancellor's Doctoral Incentive Program received 96 applications this year, with 74 of those recommended for the program. Among the applicants, half are CSU lecturers, 77 were CSU alumni and the pool represented 17 different ethnic and racial backgrounds. Eleven of the recommended candidates hope to become nursing faculty. The program provides loans to promising graduate students in doctoral programs who are interested in teaching at the CSU. If hired as faculty, the CSU cancels portions of their loans during each year of qualifying service. More information: http://www.calstate.edu/HR/CDIP/.

Chesley "Sully" Sullenberger, the heroic pilot who safely landed U.S. Airways flight 1549 in New York's Hudson River and saved the lives of the 150 passengers on board, has a tie to Fresno State. Sullenberger had checked out a book from the Fresno State library that was in the cargo hold of the airplane. Upon asking Fresno State if he could have an extension and waiver of the overdue book fees, Madden Library Dean Peter McDonald went one step further – he waived all fees including a lost book fee and put a template in a replacement copy of the book dedicated to Sullenberger.