Governor Brown Proposes $500 Million Cut to CSU

The CSU and SJSU are reviewing the details of Governor Jerry Brown’s proposed $500 million budget reduction to the CSU for 2011-2012, part of a sweeping effort that would slash spending by $12.5 billion. While it is too early to identify a specific means to implement such a budget reduction, all options are on the table. In the past, SJSU has employed tuition increases, enrollment reductions, furloughs, layoffs and cuts to programs such as remedial education.

“These cuts will be painful, requiring sacrifice from every sector of the state, but we have no choice,” Brown said. “For 10 years, we’ve had budget gimmicks and tricks that pushed us deep into debt. We must now return California to fiscal responsibility and get our state on the road to economic recovery and job growth.”

For the CSU, the proposed reduction equates to 18 percent of the system’s $2.7 billion in state support. The proposed reduction is also a “best case” scenario because it assumes an extension of the current temporary tax increases due to expire at the end of the fiscal year. The governor will seek to hold a special election in June to ask voters to approve the tax extensions.

“We will work with the administration and the legislature to minimize, as much as possible, impact to students. However, the reality is that we will not be able to admit as many students as we had been planning for this fall,” said CSU Chancellor Charles B. Reed. “Over the next few months, our 23 campuses will be faced with very difficult admission decisions as they try to manage this reduction. For students and parents, the uncertainty of the situation is even harder.”

The governor’s proposal for an eight to 10 percent cut in take-home pay for most state employees does not apply to the CSU.

Read a news release from the CSU chancellor.
http://calstate.edu/pa/

Read a news release from the Office of the Governor.
http://gov.ca.gov