Legislative Update

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CSU Budget Update - 1999-2000

On Oct. 29, 1998, the California State University Board of Trustees approved the CSU support budget request for 1999-2000, which included $93 million for compensation, the single largest category of increase in spending. The CSU proposed a 4 percent increase in compensation for all employees for 1999-2000, plus an additional 2 percent faculty compensation supplement to make further progress toward eliminating the faculty salary gap. Other CSU budget priorities included: $25 million for technology infrastructure and $57.2 million for a three percent enrollment growth in order to address Tidal Wave II, the projected increase in students who will attend universities in California over the next few years.

On June 29, 1999, Governor Gray Davis signed the 1999-2000 state budget, which included a 10.4 percent general fund increase for the California State University over last year. The increase totals $225.2 million, which includes $24.2 million to reduce student fees by $78 for the academic year. The CSU general fund budget totals approximately $2.3 billion.

Highlights in the CSU budget increase include:

• $69.8 million for an average 3.8 percent compensation increase for all employees
• $19.5 million for a 2 percent faculty compensation supplement
• $52.5 million for 3 percent projected enrollment growth
• $24.2 million for a five percent reduction in undergraduate student fees from $1,506 to $1,428 and graduate student fees from $1,584 to $1,506
• $14.4 million for K-12 outreach programs
• $10 million for technology improvements
• $12 million for physical plant maintenance
• $5.6 million for several campus initiatives, including $5 million for applied agriculture research for California State University, Fresno and the three other CSU campuses with agriculture programs
• $2.2 million to support year-round operations

When revenue and reimbursements are included, the entire CSU budget totals $3 billion for 1999-2000.