Friday, January 9, 2009
As the state budget crisis continues, CSU Monterey Bay (along with the entire CSU system) today announced a hiring freeze and other cost-saving measures.
The 23-campus system has also cancelled non-critical equipment and supply purchases, tightened restrictions on employee travel and implemented a salary freeze for all vice president/vice chancellor-level positions and above, including campus presidents and the chancellor. The hiring freeze doesn’t apply to essential positions.
At CSUMB, however, the salary freeze may extend below the vice-president level, according to President Dianne Harrison, who, in a prepared statement, said the university wants to avoid laying off existing staff and faculty and ensure access for as many students as possible.
"We have been looking carefully at our expenses and revenue for over a year," she said, "so we are prepared to execute the cost-savings measures without disrupting the educational programs and student access, to the extent we can."
The state’s facing a $14.8 billion budget deficit in 2008-09 that will grow to $41.6 billion by the end of 2009-10 unless lawmakers balance the spending plan.
Gov. Arnold Schwarzenegger's proposed state budget for 2009-10 includes $14.3 billion in revenue adjustments, $17.4 billion in spending cuts and $10 billion in warrants and borrowing. His plan would balance the budget over the next 18 months and leave a $2 billion reserve.
For the CSU, the governor's budget would make permanent $66.3 million in budget reductions proposed for 2008-09. In a one-time action, Schwarzenegger’s proposal would also restore the $31.3 million budget reduction CSU received in 2008-09.
A 2009-10 state spending plan is far from final, however, and likely won’t be approved until summer. Meanwhile, lawmakers continue to disagree about how to close the 2008-09 budget hole.
"The magnitude of the state's budget crisis continues to grow, along with the uncertainty of the future fiscal picture," said CSU Chancellor Charles B. Reed in a prepared statement. "We are instituting these cost saving measures knowing that the state's fiscal situation worsens each day."