CSU dealing with $584 million deficit

kgo

By ABC7

Wednesday, July 8, 2009

SAN JOSE, CA

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.

Today's latest headlines | ABC7 News on your phone
Follow us on Twitter | Fan us on Facebook | Get our free widget

TOP STORIES

LIVE: LAPD moves in to disperse pro-Palestinian protesters at USC

Updated 9 minutes ago

Daly City explosion appears to be accidental, police say

Updated 1 hour ago

Giuliani, Meadows, and others indicted in Arizona election probe: AP

Updated 31 minutes ago

Bay Area man dies after falling 300 feet from a cliff in Oregon

Longtime SF baker in critical condition following hit-and-run incident

Horse-riding apes spotted at Crissy Field to promote new movie

Updated 2 hours ago