The Cal State University Board of Trustees is faced again with uncertainty and said during a Tuesday meeting they are not optimistic about next year’s budget and are preparing for a worst-case scenario.
In contrast to last month’s meeting, where protesters and police clashed, the board’s Dumke Auditorium was quiet and calm. The presence of additional police forces seemed almost unnecessary, as there were no students seen protesting. Only about a dozen people sat in the gallery as the board discussed a possible $200 million budget cut.
The CSU budget could face up to $200 million in trigger cuts if voters fail to pass a state tax increase this November. The board said they would only have six months to reduce the budget if they do not plan the budget with a pessimistic outlook.
This comes after an announcement made earlier this month that the $750 million reduction that occurred this academic year will continue in the 2012-13 academic year.
The board said they have made cuts in the past to deal with budget reductions such as reducing enrollment, reducing travel and downsizing administration structure. CSU Chancellor Charles B. Reed said that they have already cut almost every place they could.
The board said one-time funds are being depleted and Reed added that some CSU presidents are using one-time money to help with the budget.
“For the first time this year, presidents have called me on an individual basis to say, ‘I’m operating on a budget with a structural deficit,” Reed said.
“So they’re out there living off of hot air, so to speak, going into next year,” Reed said.
The board stated past tuition fee increases have not offset total general fund losses and if support from the state goes down, a tuition hike maybe necessary.
“I’ve gotten the message that people don’t want to do that,” said Chancellor Reed of more tuition increases.
Before the board discussed the budget, Jim Gelb, the assistant vice chancellor for Federal Relations presented a legislative report outlining how funding for key CSU programs could be affected.
“We are playing defense in 2012,” Gelb said.
According to Gelb, Pell grants are being reviewed and the administration is talking about ways to shrink it.
“We’ve had some success and limited the damage,” Gelb said.
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