April 16, 1998

To:     The University Community

From:   Benjamin F. Quillian
        Vice President for Administration

The CSU Presidents have issued the following statement today concerning CETI:

PRESIDENTS' JOINT STATEMENT:

 "The CSU remains committed to CETI and is continuing its negotiations 
with GTE and Fujitsu.  Microsoft and Hughes will not be CETI partners.  
The CSU is continuing to work with Microsoft on an appropriate relationship. 
 We expect these negotiations to continue well into the next academic year.
When an agreement on CETI is reached, the 45-day review and response period 
will begin so faculty, staff and students can have an active role in
assessing the agreement.
 "Throughout the entire negotiating process, the CSU leadership, the
Chancellor and the Board of Trustees have said they would only accept a
deal if it were in the best financial, academic, and long and short term
interests of the CSU its faculty, students and staff.  This remains our
commitment.  In fact, at the direction of the Trustees,  before any
agreement  is reached, an extensive, thorough and independent review of
that agreement must be completed including operational, legal and financial
risk analysis.
 "The more we learned about the process of forming public-private
partnerships, and the more the CSU explored new ground, the more we have
sought additional consultation  and assessment as it relates to CSU risk,
equity and debt, all of which have appropriately added to the delay.
 "While CETI will not go forward with all the partners as originally
envisioned, we still believe the CETI concept is correct.  Along with the
remaining partners, the CSU may seek new partners who care about the CSU
and who are interested in working together to develop and help fund CSU's
technology infrastructure initiative.
 "It is clear to us the State is unable to provide the up to $300 million
required to build the technology infrastructure needed to take the CSU into
the 21st century.  This means alternative resources must be found.  Those
of us who are on the front line of budgeting, maintaining academic
quality, safeguarding our university's future and making certain our
students receive the best possible education, realize the CETI concept is
the best and most workable approach.
 "Recognizing the creative thinking that went into developing CETI, along
with the tremendous time and energy commitment of key CSU personnel, we are
more proud than ever to be part of an institution that has the
entrepreneurial courage, the commitment to its students and faculty, the
vision, and the foresight to seek alternative sources to fund necessary
projects such as the technology infrastructure initiative.
 "No university can maintain its academic quality and remain competitive if
it is not on the cutting edge of technology.  But significant resources are
required to build the needed technology infrastructure.  The CSU needs to
use its limited resources to help close the faculty salary gap, maintain
its campuses and accommodate growing student enrollment system wide.  As a
result, what we need are imaginative private partners who care deeply about
the CSU, its faculty, staff and students, and who are eager to share the
risks as well as the benefits of this proposed public-private partnership.
 "Let us reiterate that as the CSU continues its negotiations, no
partnership will be consummated which is not in the best interest of the
institution, its students, faculty and staff.  And, while we have
established new general time frames, flexibility is key to our success.
The most important goal is a workable and beneficial agreement, not
adhering to artificial deadlines.
 "Finally, we look forward to working with all concerned as the
negotiations continue."