June 24, 2010 Budget

TO: All SDSU Employees 
 
FROM: Sally Roush, Vice President of Business and Financial Affairs

June 24, 2010

Budget Update #26

While the Legislature continues its deliberations on a final state budget, some noteworthy developments have occurred. On June 18, the CSU Board of Trustees voted to raise student fees by 5 percent rather than the 10 percent that is contained in the Governor’s proposed budget. The Board’s action to limit the fee increase to 5 percent is based on a State Assembly budget proposal that would provide the CSU with additional state funds in an amount equal to a 5 percent fee increase. The Board may revisit the student fee level in November if the state does not fully fund the proposed budget for the CSU.

The President’s Budget Advisory Committee, as you may recall, recommended to President Weber a 2010/11 budget based on a 10 percent increase in student fees. Although the fee increase enacted by the Board of Trustees is only 5 percent, the corresponding increase in state funding would not require a change in SDSU’s 2010-11 budget. PBAC will not reconvene to revisit SDSU’s 2010-11 budget until the state has a final budget, and then only if the state budget is different than our planning assumptions. The constitutional deadline of June 15 for a final state budget has been missed once again. It is difficult to know when a final state budget might be enacted.

The furlough program expires on June 30, 2010, as you were recently informed by Elvira McCalip, director of the Center for Human Resources. Pay received on Aug. 1 will reflect each employee’s regular base pay. If the Governor’s proposed budget is adopted by the Legislature, there would be no need to implement furloughs for 2010-11, and, in any event, a new furlough program would have to be negotiated with applicable unions for employees in bargaining units.

On balance, the information available about the 2010-11 budget and its impact on SDSU, our students and employees remains in flux. We will continue to keep you informed on these important matters.