THE IMPACT OF BUDGET CUTS ON THE CSU
FREQUENTLY ASKED QUESTIONS
Last updated: June 3, 2009
This FAQ deals with the 2009 budget cycle.
Read the 2010 budget FAQ.
Q1: What is the latest information on the state budget and its impact on the CSU?
A1: The CSU receives about 70% of its operating budget from the state’s General Fund. The budgets for both FY 2008 and FY 2009 were signed into law by the Governor in February 2009. However, as of May 29, 2009, the state budget faces a budget deficit that could be as high as $24 billion. As a result, massive cuts in state spending are being proposed by Governor Schwarzenegger. It is estimated that the CSU could be faced with budget reductions ranging from $400 million to $700 million in FY 2009. Campus presidents will be meeting at the Chancellor’s Office on June 3, 2009, and it is expected that campuses will be facing 16% cuts (based on a reduction of $689 million). The influx of federal stimulus dollars to higher education will hopefully mitigate a significant portion of these cuts. We hope to learn more about this by June 5.
Q2 I keep hearing all these huge numbers – some of them are the Legislative Analyst’s Office, some are from the Governor. On June 1, 2009, something called a Budget Conference Committee met at the Capital. I’m confused about what it all means.
A2 First, remember that the numbers you are hearing right now are not final. The budget is not final until voted on and passed by both the Assembly and the Senate, and signed by the Governor. The Governor is making his proposals, which he hopes the legislature will adopt and become part of a bill that he can sign. The Legislative Analyst is charged with providing the legislature with recommendations. The legislature can choose to adopt those recommendations or not. More likely, the legislature will work on a budget bill that is a compromise that will garner enough votes to pass both houses and be signed by the Governor. The Joint Legislative Budget Conference Committee is made up of members from both the Assembly and the Senate; their job is to gather input from the public and constituent groups and develop recommendations for the full Senate and Assembly.
Q3 Have layoffs occurred at any CSU campus yet?
A3: No, as of June 1, 2009, there have been no layoffs as a result of the current fiscal crisis.
Q4 When will we know if layoffs are needed?
A4 After the state budget is solidified and the campuses learn what their budget targets are, we should be better able to answer this question.
Q5 When will the state budget be solidified?
A5 This is a difficult question to answer. The legislature and the Governor have agreed that it is important to get a budget passed by June 30, but history tells us that it is very difficult to predict the timing of a final budget.
Q6 Who decides if a layoff is needed?
A6 The campus president.
Q7: How and when will I know if I’m being laid off?
A7 If any campus announces layoffs, their first course of action is to inform the Chancellor’s office, which contacts CSUEU headquarters. CSUEU will be told the number of projected layoffs, by bargaining unit, prior to any notices going out to individual employees. Please keep in mind that the official notice must go the CSUEU headquarters first, and not to chapter officers.
Q8 Will I be laid off?
A8: As of this writing, the union has not received notices of layoff on any campus.
Q9: How will I know when layoffs start?
A9: CSUEU will post regular updates on our website's Budget Central page.
Q10: I'm a temporary or probationary employee. Does this affect me?
A10: It could. Layoffs are by classification. If layoffs are enacted on any campus, temporary and probationary employees within a classification targeted for layoff are laid off before any permanent employees in that classification.
Q11: Where can I find more information about layoffs and my rights under the contract?
A11: On our website's Budget Central page
Q12: What about furloughs?
A12: Furloughs are a possible alternative to layoffs. As we have written above, the CSU still doesn’t know the specific impact of any state budget cuts on its budget, and as a result, there has yet to be any discussion about possible layoffs, furloughs, or any other cost-cutting options.
Q13: What is the role of the union in the event of furloughs?
A13: The CSU will negotiate the terms of any furlough program with CSUEU.
Q14: Aren’t some state employees being furloughed?
A14: State civil service workers have been subject to one or two furlough days per month since last year.
Q15 Will I get a raise this year?
A15: Not likely. Raises that had been scheduled for FY 2008 were not implemented because the budgetary conditions required in Article 20, Section 20.6(a) were not met. CSUEU negotiated a side letter with the CSU that provides for a reopener on Salaries in the unlikely event any other union should negotiate a salary increase in FY 2008. In addition, CSUEU extended the 2007/2009 contract until June 30, 2011. We have the ability to open Article 20 (Salaries) upon thirty days notice to the CSU.
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