CA Revised Budget: CSU Could Lose $398M (10%) Funding UPDATED: Click here for Frequently Asked Questions regarding conract extension. Governor Newsom’s announcement of a $54 billion deficit for the State of California was a sobering experience for all citizens. The personal hardships and tragedies we are experiencing are now expressed in terms of missing dollars from state operations. As University employees, hearing the Governor talk about salary reductions and imposing efficiencies makes all of us concerned about our jobs, the security of our families, and the future of our communities. We are in the midst of a crisis of epic proportions; that is a fact. It is also a fact that California’s strong economy thrives on an educated populace. Funding cuts to the CSU – the nation’s largest public university system - during economic distress is equivalent to pulling the oxygen mask from an ailing patient. The California State University is currently engaged in bargaining with all of their unions, including with the CSUEU. When we began in January, there was a booming economy, flush university reserves, and the support of the Governor and legislators for restoration of salary steps. Our members were organized for rallies and any job action necessary to achieve our goals. Bargaining During COVID-19 The COVID-19 pandemic changed everything in a matter of days. We went from the bargaining table and a mass rally at CSU Northridge to campus evacuations and stay-at-home orders. The entire U.S. economy began a shut-down that plunged millions into unemployment. Bargaining assumptions changed, but our bargaining mission did not – protect our members and their families. Throughout this crisis, CSUEU has secured full pay and benefits for all employees, including those who stayed home and teleworked, or went on administrative leave to care for young children or elderly parents; we even secured emergency pay for some working on campus. Hardship has reached us all, but we have preserved our union-won rights in comparison with less fortunate fellow citizens, avoided job losses and any cuts to pay and benefits. Gov. Newsom’s revised budget calls for all state employees to take a 10% salary cut and for the state to achieve at least 5% in efficiencies (possibly meaning layoffs). Since January, we have been in negotiations with the CSU on a new contract to replace the one that expires June 2020. Absent a union contract, CSUEU would be vulnerable to pressures and demands like those in 1995-96 when the CSU trustees unilaterally took away salary steps. We will not let that happen again. Today, our bargaining team - with leaders from Units 2, 5, 7 and 9 - has secured a two-year extension for our union contract to June 30, 2022. All of our rights and terms of conditions of employment will remain intact. This does not mean invulnerability; we will be making hard choices as the state grapples with the budget. But those cuts will be negotiated, not imposed. We, as a Union, will protect each other and share the burden. Read the contract extension MOU. May Budget Revise Highlights The $199 million increase (5 percent) for CSU proposed in January is withdrawn, along with $6 million in one-time funds for degree and certificate completion. Absent additional federal funds, the CSU 2020-21 budget will be reduced by 10 percent. • A decrease of $398 million (10 percent) in ongoing state funding. • A decrease of $6 million to support Summer Term Financial Aid. The 10 percent cut from the CSU’s existing operating budget will not occur if the federal government “provides sufficient funding” (the amount of “sufficient” federal monies has not been defined) to make the cuts unnecessary. The May Revise is only the first step in a budget process that will last into August. The state won’t know its actual 2020-21 revenues until July 15. These are unprecedented and dangerous times. We have not had a moment without fear for our families and our country. Standing together in our Union gives us a way to manage the chaos, to work with state leaders and negotiate with our managers. During the contract extension we will continue to negotiate for a better contract. The CSU can only thrive – and its education mission succeed – when its workforce is fully supported.