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2012-13 state budget adopted

PostPosted: Mon Jul 02, 2012 11:43 am
by alangrid
The Governor has signed the state’s 2012-13 budget.

As anticipated the budget proposes that the California State University be funded at the same level as the year just ended, provided that the Governor’s tax initiative passes on Nov. 6. If the initiative fails, though, the budget contains a trigger that would result in a $250 million reduction for the California State University. This would result in an approximate reduction of $13 million for Fresno State.

But as the budget deadline loomed, the Legislature adopted a trailer bill for the CSU and UC systems, which states that if the systems maintained tuition at the 2011-12 level, each system would receive $125 million additional dollars in 2013-14 if the Governor’s initiative passes.

The Governor and legislative leaders are aware that complying with this condition would require our Board of Trustees to rescind its action of last November to raise tuition for the 2012-13 year.
The Chancellor’s Office believes the board could comply by taking action at its September meeting to rescind the tuition fee increase for the full 2012-13 academic year contingent on voter enactment of the November tax measure.

Under this scenario, campuses would begin processing refunds or credits for Fall 2012 shortly after passage of the tax measure. Students registering for Spring 2013 would pay the rates in effect for 2011-12. However, if the tax measure fails, the currently authorized tuition fee rates would remain in place for Fall and Spring.

Rescinding the tuition increase would create a one-time hole in the CSU’s operating budget of $132 million for 2012-13. While, the $125 million base appropriation in 2013-14 would cover about 95 percent of the ongoing loss from the decision to roll back tuition, it would not compensate for the one-time loss in 2012-13.

Our campus budget plan calls for us to use central reserves and carry forward funds to cover the reduction in the budget should the tax initiative fail. This will allow us to allocate the same level of funding to schools, colleges and divisions as we have allocated for the 2011-12 year. This approach has been reviewed and endorsed by the Academic Senate Expanded Executive Committee.

The CSU Board of Trustees will discuss the system’s budget situation at their July meeting and providing direction for additional steps that should be taken to address our very difficult fiscal situation.

Another last-minute state budget change will affect some of our students directly. The Governor blue lined a provision in the budget bill, which will have the effect of reducing Cal Grants for some students by 5% for the coming Academic Year.

I will continue to provide updates on the budget situation through the summer as information becomes available.