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News from John D. Welty

Budget Update

July 22, 2009

On Tuesday, the CSU Board of Trustees voted to increase student fees for the 2009-10 academic year as part of an overall budget action plan. Additional elements of the plan include employee furloughs and workforce reductions; enrollment cuts and additional cost cutting measures on campuses.

These actions give direction to Fresno State and the 22 other campuses on how to address the $584 million funding shortfall that is a result of reduced state support. We now must undertake drastic measures to meet the budget deficit we face -- $18 million to $20 million at Fresno State after accounting for student fee increases adopted Tuesday and furloughs of employees. Unfortunately, this will mean restricting opportunities for students and their families throughout our diverse region who have depended upon our university to prepare tomorrow’s leaders to meet the challenges we share.

Cabinet members and I have been working very hard with Academic Senate and other campus leaders to develop a budget that helps manage this severe blow to Fresno State students and employees as best we can.

On Thursday, July 23, I will hold a Town Hall meeting at 9 a.m. in the Satellite Student Union to update our university community on what the trustees’ decisions will mean for Fresno State during the coming year. All staff and faculty are invited to attend. If you cannot attend, a Webcast will be live at Bulldog TV, http://bulldogtv.csufresno.edu/index.shtml, under Special Events.

Further information about the CSU trustees’ action is discussed in a CSU employee update being e-mailed on Bulletin Board today. If you would like to read the CSU press release on Tuesday’s board action, please see:
http://www.calstate.edu/PA/News/2009/fee-increase2-2009.shtml.



Budget Update

Monday, July 13, 2009

As the CSU continues to grapple with very serious budget issues because of the state fiscal crisis, we are working hard to prepare a budget plan that preserves student access and employee jobs as much as possible while maintaining academic excellence.

Because of the magnitude of the $584 million budget cut to the CSU, we know there is no single option available to solve the problem. As I indicated to you last week, our campus budget plan must reduce expenditures by $18-$20 million for 2009-10. The amount to be reduced is after we account for furloughs for management employees and for employees represented by bargaining units that agree to furloughs, and after fees are increased by an additional $672 per year for undergraduates, $720 for teacher credential students and $828 for graduate students. The authority for management furloughs and the fee increases will be formally acted upon by the CSU Board of Trustees on July 21. In addition we have closed admissions for Spring 2010 and we will dramatically lower new student enrollment for Fall 2010.

I have met with the Academic Senate leadership to discuss our budget plan preparation and I also met with the Joint Labor Council to inform them of what lies ahead. Shortly after the July 21 Board meeting I should be able to communicate more specifically on actions that will have to be taken.

I hope you will keep informed about the CSU budget situation with the latest information at CSU Budget Center (http://blogs.calstate.edu/budgetcentral/) and FresnoStateNews (www.fresnostatenews.com). I also ask that you communicate with your elected state representatives about the dire situation that all of higher education in California is facing.



Budget update from President Welty

July 8, 2009

Tuesday was a very sobering day for me and all of the CSU presidents and administrators as we discussed with the Board of Trustees our very dire budget situation due to a $584 million state budget reduction. In the words of Chancellor Reed, “We have never before seen such a devastating cut in a single year.”

Trustees heard an update on the CSU’s meetings with its labor unions to discuss an option to furlough all employees for two days per month as one part of the effort to address the budget crisis.

Trustees also were briefed about planned enrollment reductions for 2010-11. There also will be a fee increase considered at the July 21 board meeting that will go into effect for fall 2009.

For Fresno State, the reductions will have serious impacts as we consider ways to respond to the budget reduction. Our plan will:

  • Include furloughs for management employees and for employees represented by bargaining units that agree to furloughs
  • Reduce expenditures by $18-$20 million for 2009-10
  • In addition, we must prepare a plan to reduce enrollment over the next two years to match state funding levels.

I will be working with campus leadership and the Academic Senate in coming days to prepare our plan for submission to the CSU.

I know this is a difficult period for all of us as we face this serious challenge. I will continue to provide you with up-to-date information as we work through this period.

You can read more CSU budget news, including the latest information about furlough negotiations, at http://blogs.calstate.edu/budgetcentral/.



The California State University Employee Update

Monday, July 6, 2009

Board of Trustees to Discuss Ways to Manage Budget Crisis Tomorrow

The CSU Board of Trustees will meet tomorrow to discuss plans to address a proposed $584 million cut to its 2009-10 budget. The Committee on Collective Bargaining will begin in closed session at 10 a.m., and the Committee of the Whole will convene at 12:30 p.m. at the Chancellor’s Office in Long Beach.

Trustees will discuss several measures ranging from enrollment reductions to furloughs that seek to address an unprecedented reduction to the CSU’s budget, the largest in its history. The reduction is part of the state’s attempt to close an estimated $26.3 billion budget gap.

Under CSU Chancellor Charles B. Reed’s guidance to “serve as many students as possible without sacrificing quality, and to preserve as many jobs as possible,” the CSU administration is proposing furloughs two days per month for all employees including management and executives, with the exception of public safety personnel. Approximately 85 percent of the CSU’s costs are salary and benefit payments. 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.

Because collective bargaining agreements between the CSU and its employee unions include provisions covering mandated non-retention and layoffs but not furloughs, each union 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 after a favorable vote of their members. The CSU has met several times with its largest labor union, the California Faculty Association (CFA) representing 23,000 employees, but to date, no vote of its members has been scheduled. Only dues-paying members of the faculty union will be allowed to participate in a vote.

Including management, approximately 21,000 of the CSU’s overall workforce of 47,000 employees are looking at furloughs, which are expected to begin in August for several personnel groups. 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. Also, employees are required not to work on furlough days. As with previous executive orders, the CSU is not subject to Gov. Schwarzenegger’s most recent executive order requiring state employees to take a third furlough day.

In an attempt to mitigate furloughs and potential layoffs, the CSU took action last fall and implemented salary and hiring freezes, travel and purchasing restrictions, and a cap on student enrollment. The magnitude of the state’s proposed reduction to the CSU’s budget, however, is requiring the CSU to take further action.

You also may view President Welty's video budget update at http://www.fresnostatenews.com/2009/07/09budgetmsg-update.htm.



Budget Update

June 15, 2009

The CSU has begun meeting with its labor unions to discuss ways to mitigate the impact of the projected $584 million budget reduction on the university and its employees.

As you may know, the bargaining unions are communicating with members about what is ahead for our system. Here is a recap of what we know on a systemwide level:

  • The $584 million budget cut, which represents a reduction of 16-20 percent of state General Fund support to the CSU for 2009-10, was proposed as part of Gov. Arnold Schwarzenegger’s May revision of the state budget which aims to close a $24.3 billion deficit.
  • Chancellor Reed has recognized that the magnitude of the cuts means that all options (except closing of entire campuses) need to be on the table as no single solution or approach can create the needed savings. The guiding principle behind the decisions will be “to serve as many students as possible without sacrificing quality and to preserve as many jobs as possible.”
  • The Chancellor’s staff discussion with the bargaining units included furloughs and layoffs. Introducing furloughs for all CSU employees is being considered to protect the maximum number of jobs while generating essential salary savings in fiscal year 2009-10. The CSU has initiated changes to Title 5 of the California Code of Regulations for management, executive and non-represented personnel to modify provisions related to furloughs, salary reductions and unpaid holidays. The change to Title 5 is necessary to ensure that all options regarding management, executive and non-represented personnel are available. The timing of the proposed change was made to meet a 45-day requirement should action be needed at the July 21 CSU Board of Trustees meeting.
  • If applied systemwide to all employees, a two-day furlough per month would generate approximately $275 million in salary savings. Although the furlough plan alone will not generate enough savings, it will produce significant savings that could otherwise only be achieved through a massive immediate program of layoffs and/or non-renewal of temporary employment contracts. Approximately 80 percent of the CSU’s costs are salary and benefits payments.
    • (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. Also, employees are not required or expected to work on furlough days.)
  • The CSU presidents will meet with the Chancellor on June 23 to discuss budget issues.
  • The CSU Board of Trustees will meet for a special budget session on July 7 and for a regularly scheduled board meeting on July 21.
  • I continue to consult with our Vice-Presidents about the possible impacts locally of the budget crisis.

The CSU will continue to move forward with its planning, regardless of whether or not the 2009-10 state budget is implemented on time. The chancellor is expected to bring an action plan to the Board of Trustees in July.



Budget Update

June 08, 2009

More information is now available from the California State University system regarding our budget, and unfortunately, it is not good news.

The CSU faces new budget reductions of approximately $600 million on top of those already made. Specific campus budget targets have not been determined yet, but obviously we must prepare to make some very significant reductions at Fresno State.

The California State University's leaders have been meeting to develop strategies to manage this unprecedented budget crisis. At the conclusion of the most recent session of the Executive Council on June 3, in which I participated, CSU Chancellor Charles B. Reed said that his goal is to provide an action plan developed in consultation with the presidents and trustees.

Chancellor Reed stressed that no decisions have been made, but the magnitude of the cuts means that all options need to be on the table as no single solution or approach can create the savings the CSU needs. The guiding principle behind the decisions, he said, will be "to serve as many students as possible without sacrificing quality and to preserve as many jobs as possible."

Following the Executive Council meeting, I met with the Academic Senate leadership and the Joint Labor Council on Friday to brief them on the news.

Although no decisions have been made regarding how the CSU will address the budget deficit for 2009-10, the CSU has initiated changes to Title 5 of the California Code of Regulations for management and executive personnel to modify provisions related to furloughs, salary reductions and unpaid holidays. The timing of the change was made to meet a 45-day requirement should action be needed at the July 21 CSU Board of Trustees meeting. The Title 5 revisions can be found here: http://www.calstate.edu/title5/index.shtml. Numerous options are being analyzed, however no decisions have been made about any possible changes in employment. Labor and personnel costs account for approximately 80 percent of the CSU's budget.

Since all options are "on the table," student fees inevitably will be a subject of discussion. No decisions were reached regarding changes in fees. However, revenue from fees accounts for one-third of CSU's overall budget.

Regarding enrollment, we need to remember that the CSU is funded by FTES enrollment. If funding is reduced it is hard to see how enrollment targets can stay the same. If the CSU budget for 2009-10 is cut by approximately $600 million, that number could equate to an enrollment reduction of about 40,000 students.

The continued deterioration of the state's economy and a looming $24.3 billion state deficit mean that more actions will need to be taken in addition to those already implemented. Under the most recent budget proposal by Gov. Arnold Schwarzenegger, the CSU faces reductions in state support between 16 and 20 percent. The Joint Conference Committee on the Budget is expected to vote on the proposed cuts to higher education for 2009-10 in the coming weeks as the state budget makes its way through the legislative process.



2009-10 Budget update

May 29, 2009

Gov Schwarzenegger's budget revisions announced this week include additional reductions to the California State University, on top of those proposed May 14. The Governor's new cut to the CSU budget is as much as $375 million over the 2008-09 and 2009-10 fiscal years.

These would be in addition to previously announced cuts to the CSU that brought CSU's cumulative cuts to $410 million for 2008-09 and 2009-10. That figure is the equivalent of a 10 percent overall budget reduction, and a 15 percent reduction in the state's General Fund support of the university system.

Chancellor Reed said in a statement yesterday, "We are facing an unprecedented financial crisis that will require us to take many difficult actions. We are looking at every available option, but know that they will be painful and severe. We would urge the Legislature to consider how these additional cuts will permanently impact the university system's ability to provide access to future generations of students."

As soon as the CSU is able to develop a plan of action, I will be working with our campus governance leaders and campus constituents to finalize a revised budget for Fresno State for 2009-10. This will require our previous budget plans to be amended. This process may take until late in June. I will keep the campus community informed as we work through this difficult situation.

Here are some related items:

Chancellor's statement - Revised State Budget Proposals Would Cause Lasting Damage to California State University:
http://calstate.edu/PA/News/2009/may-revise2.shtml

Chancellor testifies before House Committee:
http://calstate.edu/PA/news/2009/chancellor-aid-testimony2.shtml



Budget update

May 20, 2009

The failure of Propositions 1A through 1E at the polls Tuesday means that we at Fresno State – along with the other California State University campuses – face very challenging and difficult days ahead.

The CSU faces accumulated cuts totaling $410 million in its 2009-10 budget. Cuts of this magnitude will severely erode our ability to educate students. They will have adverse impact on student access, maintaining our workforce, preserving services and protecting the quality of our institution. I do not have specifics regarding Fresno State, but starting today I will be working with the Chancellor's Office and our campus leadership to examine alternatives. While we face some very difficult decisions in the coming weeks, campus leaders already have been working to weigh alternatives. My goal is to develop a plan by mid-June, after consultation with key campus constituencies.

There will be extremely tough choices ahead, but I will keep you informed as we move forward. Our plan will be subject to action that the Legislature will take, so we will also be working hard to have our voices heard in Sacramento. I ask you to join us by contacting your elected state representatives and urge them to halt the erosion in our ability to educate and graduate the students that are critical to the state's long-term, sustained economic success.

While the news today is distressing, let us remember we have 5,284 reasons to celebrate this week during our Convocations and Commencement. That is the number of students who have worked hard and look forward to receiving their diplomas this weekend.

These graduates and future students eager for a college education, are why we must continue to work hard together to meet these challenges.



2009-10 Budget

May 18, 2009

As our Spring semester draws to a close, I want to take another opportunity to bring you the latest word about the budget crisis in California, whose impact on our campus has been of deep concern throughout this academic year.

Last week, Chancellor Reed sent a message to the entire CSU community about the current state of the budget and the effect on higher education. Unfortunately, the news is not good. Our past budget issues, while challenging, were far more manageable than those we must now address.

The Chancellor mentioned that we may be required to consider unprecedented actions including further enrollment reductions, layoffs, additional student fee increases and the potential closure of select CSU campuses. The CSU has never faced anything like this before, and Fresno State, along with every other campus, will be impacted.

If Propositions 1A through 1E fail on ballot tomorrow, May 19, the CSU will face a $410 million budget reduction. I don't have a figure yet for the cuts required on our campus, but they will be severe. While we have worked hard to protect staff and faculty positions and instruction, it appears likely that we can no longer avoid impact in those areas.

We face some very difficult decisions in the weeks ahead. They will affect this university and the livelihood of faculty, staff and students for decades.

Although we still will face cuts even if the state propositions are successful, they will not be as dramatic. Each of you has a chance to affect the future of Fresno State and the entire California State University system. I am asking all of you to consider the state propositions, vote tomorrow and work to make sure that our leaders in Sacramento recognize the importance of higher education in the economic recovery of California.

Whatever the outcome, I am confident that our experience at Fresno State working together collaboratively on this issue the past year will be the model for our immediate future, but I caution we must be willing to make sacrifices.

We are indeed fortunate that all of us at Fresno State are dedicated to facing our challenges positively and innovatively to protect our academic mission to ensure that students continue to receive the excellent education to which they are entitled.

Thank you.

Click here to view the Chancellors message



State Will Not Receive Enough Stimulus Money; CSU to Get Reduction

April 14, 2009.

California will not receive enough federal stimulus money to avoid $948 million in cuts to specific programs in the 2009-10 budget, including $50 million reduction to the California State University's 2009-10 budget.

A determination by the state treasurer and state finance director as to whether the state would receive a specified amount of the federal funds was one of the requirements included in the recently enacted state budget. The treasurer and finance director's March 27 decision means the cuts to specific programs will occur. It also means that personal income tax rates will increase by 0.25 percent rather than 0.125 percent.

Overall, the decision preserves $2.8 billion of revenue on which the state budget depends. The $50 million reduction – while not welcome news – is not an unanticipated development. We understood it was a possibility when the state budget was approved in February.

This decision will result in a further reduction of approximately $3 million to the Fresno State budget. We anticipated part of this reduction in the draft plan, which I announced in early March. It will, however, be necessary to further reduce our 2009-10 budget by $1.3 million. The Advancement Division also will be impacted by a reduction in the amount of support available from the Endowment Management Fee.

We are reviewing several options, which may include eliminating vacant positions and consolidating or eliminating some administrative functions. We are preserving our commitment to make courses available for students currently enrolled and we are moving ahead to complete the library, although other capital projects are on hold.

We will await action on fees by the Board of Trustees, the outcome of the May 19 special election and the Governor's revised budget for 2009-10 before we take any additional steps with regard to the 2009-10 budget. Our emphasis will be on persuading the Legislature and governor to avoid further cuts.



Update: Budget Message From President Welty

February 23, 2009

Fresno State President John D. Welty offers a second video update on the ongoing state fiscal crisis and his plans.

Click here to see the video.

The transcript of his message is presented below:

I was pleased that last week the legislature and governor acted to adop t a budget for the state of California for 2008-09 and 2009-10.

As we have analyzed that budget it appears that the proposal that the governor advanced in late December is in fact in the budet. The one addi tional item that appears in the budget that impacts Fresno State is the potential of an additional $50 million cut if the stimulus bill does n ot reach a certain level in the state of California by the first of April. We will be examining that in more detail. I think the good news is that the parameters that we have set to build our budget plan for 2009- 10 appear to be intact. Thus, the vice presidents and deans - - as they are working with in their areas - - will be using the same plan that they had adopted as they prepare their plans for Feb. 27. When I receive those plans on Feb. 27 I will then be forwarding that to the University Budget Committee for comment and it appears now that we will, in fact, be able to adopt a budget plan for the 2009-10 year by early to mid- April. As soon as I receive the budget plans from the vice presidents we will be issuing those more broadly and they will be placed on the Web site.



State Budget Cuts to CSU Impact Service to Students

February 20, 2009

The California State University will face an increasingly challenging fiscal situation over the next 17 months and beyond as a result of the budget package passed by the Legislature and signed by Gov. Arnold Schwarzenegger today (Feb. 20). The budget reduces state general fund support to the CSU for the current fiscal year, 2008-09, by $97.6 million, and calls for an additional $66.3 million cut for 2009-10.

Overall, the reduction places CSU $283 million below its operational needs, or approximately 10 percent.

Also, the 2009-10 budget includes an additional $50 million cut to the CSU, depending on the size and scope of the federal stimulus package.

"While we recognize the severity of the state's fiscal crisis, the budget does not provide the resources the system needs to meet the needs of our students and fund our operations," said CSU Chancellor Charles B. Reed. "This will impact our ability to maintain quality and services for our 450,000 current students, and we have already been forced to reduce incoming student enrollment levels for this fall."

Fresno State President John D. Welty said the university will be assessing the budget cut's impact on the campus.

"We are working diligently, quickly and collaboratively – in consultation with students, faculty, staff and administrators – on ways to minimize the impact of budget cuts on our students and on Fresno State's long-term educational mission, so vital to our region," he said. "I'm confident that our recently adopted campus budgeting principles are guiding us in the proper direction."

This is the second year in a row the CSU has received no funding for enrollment growth or increased operational costs such as energy and health benefits. CSU is already serving 10,000 students for whom the state provides no funding. As a result, the system has been forced to reduce enrollment levels by 10,000 this fall to align with student funding provided by the state.

As the CSU prepares the majority of California's workforce in key industries including nursing, agriculture, business, public administration and technology, the budget cuts will have a direct impact on the state's economy and limit CSU's ability to provide graduates for these key areas.



President Welty discusses 'daunting' budget situation

January 20, 2009

John D. Welty's picture

California State University, Fresno President John D. Welty discussed the campus budget at the annual Spring Faculty/Staff Assembly today (Jan. 20, 2009), noting that the university faces a "daunting" situation that will bring "painful" moments.

Welty said the current fiscal year still has many challenges, and he is focused onto ensuring that "we can cover salaries and mandatory obligations in this constrained environment."

"I am continuing the hiring freeze that was implemented in early 2008-09 and adding severe restrictions on travel and procurement activity. All of us must make efforts to curtail spending and preserve campus cash balances for all state, non-state and foundation funds," he said.

Fiscal uncertainty continues into 2009-10, and Welty announced a campus budget summit for Feb. 12. He and key university leaders will discuss how the campus might deal with potential funding reductions, and he is asking faculty and staff to offer suggestions. Budget reductions are expected, and the president said he is already working with the vice presidents to enact reductions in the most prudent and practical way possible.

"Although the situation worsens by the day, the Legislature and Governor talk, but don't act to resolve it," Welty said. "I urge all of you to contact your State Senator and Assemblymember and implore them to act immediately. We, as citizens – and our students – deserve and demand action."

Even though the state halted funding for thousands of public works projects, including the Fresno State Library, Fresno State will be able to open most of the library, but with sparse furnishings, Welty said.

"Because serving our students is our No. 1 priority, on Feb. 20 we will open the new north wing's collection level, first, second and third floors, as well as the renovated south wing."

Click here to read President Welty's entire speech.
Click here to view the Assembly.



Message from Welty on fiscal crisis

December 19, 2008

Dear Faculty, Staff, Alumni and Friends:

Like you, I have been following with concern the disturbing international, national and state economic news of recent months. As the state of California faces an unprecedented fiscal crisis, you may have questions and concerns about the impact on our university.

I want to reassure you that we have been making plans to meet these challenges for the past two years, when signs of a financial downturn appeared on our radar. When the California State University directed budget reductions at all 23 campuses this fall, we were well-prepared to act.

Let me offer you some information about our response to the challenges.

Prudent fiscal planning

Over the last five years, the campus fiscal strategy has involved planning for reductions by designating permanent funding on a one-time basis to campus initiatives. In fiscal year 2007-08 this flexible strategy allowed the campus to advance deferred maintenance, central technology initiatives and graduate program augmentations; however, because of its one-time designated funding strategy it's possible to suspend these initiatives in order to mitigate budget reductions to the campus community. Coming into Fiscal Year 2008-09, campus reserves from each Vice President, along with other central campus resources were applied to the initial $4.61 million base budget reductions in order to lessen the impact to the campus community.

On October 23, the CSU system was required to make a mid-year budget reduction totaling $31.1 million. At Fresno State, we were required to reduce spending by $1.7 million.

Our planning efforts allowed us to take immediate action: freezing all faculty and staff vacancies and an across-the-board three percent operating budget reduction. We made additional one-time cuts in deferred maintenance, Plan for Excellence projects, graduate education projects and technology to reach the $1.7M target.

While the steps we took were difficult, they were enacted with one goal: shielding students from any impact of budget reductions so that they could continue their progress toward completing their degrees.

Just two weeks later, on November 6, the governor proposed further budget reductions of $66.3 million to the CSU for the current budget. The proposed mid-year target would be added to the previous reduction to the final 2008-09 budget that was $215 million below CSU's operational needs.

That mid-year reduction has not yet been enacted. Anticipating further reductions, however, CSU Chancellor Reed declared systemwide impaction for 2009-10 because the system is serving 10,000 students for whom the state provides no funding. Therefore, the CSU must limit new admissions in 2009-10 to an enrollment supported by the state.

At Fresno State, we have been carefully managing our enrollment over the years and we are over-enrolled by only 2.8 percent. Our enrollment this fall is 22,622. Our target for 2009-10 is 22,100 – about 500 fewer new students.

Because we expect a further reduction in our state budget, we have developed a plan that includes across-the-board reductions in operating expenditures, reducing our reserves, student employment and equipment expenditures and continuing the position freeze. This will allow us to meet our commitments to students for spring semester classes.

Economic impact on our Endowment

In addition to state general fund budget reductions, the turmoil in the world financial markets has impacted our endowment, managed by the Fresno State Foundation. Endowment funds are used for scholarships for our students and also for funding certain chairs, professorships and programs. Our endowment, one of the largest in the CSU, was over $100 million in the first half of 2008 but has lost approximately 26 percent of its market value because of the stock market downturn.

Our Foundation's Board of Governors has been reviewing the impact on our endowment and will meet in early February to determine action for the coming year.

Legislative action needed

The California budget shortfall is the most serious in the state's history and worsens with each passing day. It is imperative that our Legislature take action quickly to address the situation. You may wish to contact your state Senator and Assemblymember and urge them to move swiftly on resolving the California fiscal crises.

Looking to the 2009-10 academic year

Our vice-presidents and I have been engaged in significant discussion and financial modeling as we consider next year's budget. We are working in the collaborative spirit that is a hallmark of our campus.

The governor will release his proposed budget in mid-January, and it will provide guidance for what we can expect in the next academic year. At our Spring Assembly on January 20, I will report on the proposed budget and its impact upon our campus. At that time, I will outline a planning process for 2009-10.

As in the past, our community will be invited to participate and we will rely upon our governance system to seek your ideas and to help review proposed actions. I also will put forth principles to help guide us as we develop these plans.

Year-end thanks

As our semester comes to a close, I'd like to express my heartfelt holiday greetings and my appreciation for all of your efforts.

While I don't have many answers to questions about what's ahead, I do know that we as a campus community have the commitment and strength to deal with whatever circumstances unfold.

Today, as perhaps never before, we need to work collaboratively and confidently to develop a plan and innovative solutions that will allow the entire University community to maintain and enhance our marvelous work.

The people at great universities, like Fresno State, work together in all times – difficult or not – to protect the academic mission and ensure that students continue to receive the excellent education to which they are entitled. I know that will always be our goal, because our students are our future.

I wish each of you a safe, restful holiday season.

John D. Welty
President



Fiscal Situation

October 23, 2008

As you know, we are experiencing a global economic crisis of extraordinary proportions. It is clear that this crisis is having an impact in the State of California, and the CSU has been informed by the state Department of Finance that the system needs to cut $31.3 million from the amount previously authorized in the 2008-09 budget. Fresno State's share of the reduction is $1,706,600. Therefore, we will take the following steps:

  • Effective immediately, all position vacancies are frozen. Any exceptions to filling staff and managerial positions must be reviewed by Cabinet and approved by the President. Additionally all temporary, student or intermittent hiring should be approved by the appropriate Vice President.
  • Effective immediately, all faculty searches are frozen. Any exceptions to filling faculty positions must be reviewed and approved by the Provost.
  • Allocations to each divisional area for operating costs will be reduced by 3%. This reduction does not include personnel expenditures.

In addition, previously allocated funds are reduced by the following amounts:

  • Plan for Excellence, $320,000
  • Graduate Augmentation, $250,000
  • Deferred Maintenance, $250,000
  • Technology, $50,000

Though the Governor and the legislature have not made decisions on any additional cuts beyond the $31.3 million, Chancellor Reed has asked campus presidents – as a precautionary move – to review the impact of possible additional cuts and report back to him.

Our University community has previously faced difficult fiscal times, and we have worked together to resolve these issues and remained focused on our academic mission to provide opportunities for our students and to serve our region. Because we have been able to minimize disruption in the past few years through a spirit of cooperation and a commitment to one another, I am confident that we will work through this challenging fiscal situation. I shall continue to work with campus leadership as we face these very difficult times.

Thank you for your cooperation.

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