CSU dealing with $584 million deficit

July 8, 2009 7:20:09 AM PDT
For the second time in two months, the Cal State university system appears ready to hike student fees -- it's part of a plan to deal with a nearly $600 million budget cut.

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There are 450,000 students in the CSU system and all of them are already facing a new 10 percent fee hike and now possibly tack on another 20 percent -- undergraduates, for example, could soon pay almost $5,000 for average yearly fees.

The California State University system is deciding how to deal with a projected $584 million budget shortfall for the coming school year. The university funding at its 23 campuses remains unclear -- as long as the state budget is still not settled. The Cal State board of trustees met in a special session Tuesday to consider its options before fall classes begin.

Here's how it may close the massive budget deficit:

  • Raise student fees between 15-20-percent for this fall and that's on top of a 10 percent hike approved in May.
  • Cut enrollment by 32,000 students next year -- this would be done by pushing up application deadlines, raising admission standards and limiting some admission.
  • Other cuts may include employee layoffs and furloughs nearly all of Cal State's 47,000 employees, including professors, could be required to take two days off a month.

    The chancellor warns that if the university's union employees do not agree with a furlough plan, there could be more layoffs. Cal State plans to vote on a budget plan on July 21st. Next week, the UC Board of Regents is also voting on a plan to slash pay and furlough employees to address its own budget problems.

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