Budget Crisis FAQ
Will Fresno State employees be issued IOUs instead of paychecks?
In the unlikely event that the legislature does not pass a state budget the remainder of the CSU’s 2008/09 general fund allocation, may at some undetermined time be delayed. If that were to occur, then the CSU would be forced to fund its payroll without general funds. The CSU is actively assessing its system wide cash flow in order to meet its payroll obligations—which is approximately $290 million per month systemwide.
Will we be placed on furlough?
No. The Governor’s furlough plan applies only to state Civil Service Employees under the State Employer-Employee Relations Act (The Dills Act) and does not apply to CSU employees.
What were the results of the Fresno State budget summit held in February?
Ideas and recommendations from the budget summit are available online at http://www.csufresno.edu/BudgetOffice/summit/.
What has Fresno State done to cut costs?
Fresno state closed fall 2009 enrollment for first-time freshmen on January 9, 2009. Salaries have been frozen for vice presidents and the president. Extensive travel and purchasing restrictions have been put in place. Our hiring freeze has been in place since October 23, 2008 except for essential positions.
What is the extent of the state budget cuts at Fresno State?
The original 2008/09 budget included a $4.6 million reduction to Fresno State that were implemented with no reduction in staff and minimal impact to instruction. In the Fall, the Governor requested an additional one-time mid-year reduction of $1.7 million; this cut was met with enrollment caps to keep FTE targets in line with our budgets. In mid-January, another cut of $3.6 million was requested and unlike others, this will be a permanent reduction to our campus budget.
How has the state budget impacted construction projects?
In mid-December the state abruptly halted thousands of construction projects across California and shut down hundreds of projects throughout the CSU due to a lack of cash to meet bond obligations and construction commitments. When the Henry Madden Library opens on February 20, it will open with sparse furnishings and equipment. In addition we will have to delay relocating the Learning Resource Center and Office of Services to Students with Disabilities and occupying the Harold Haak Administrative Center on the Library’s new fourth floor until we get the state go-ahead. Also on hold at Fresno State are the renovation of the Nursing Lab and all capital outlay projects.
Why can’t the campus use it cash reserves to complete the library project?
To complete the project and furnish the building will cost over $10 million. Due to the unprecedented circumstances, the campus must forecast how much cash is needed to operate the campus for the remaining fiscal year with limited cash from the State of California. Covering salaries and mandatory obligations in this constrained environment is a priority.
What is the outlook for the 2009/10 budget?
Gov. Arnold Schwarzenegger and state legislators reached a long-sought agreement on a state budget that contains a mix of tax increases and spending cuts aimed at closing the state’s estimated $42 billion budget deficit. The budget is a 17-month plan that addresses the remaining months of the current 2008-09 fiscal year and the 2009-2010 fiscal year which begins July 1. Here is what the budget means for the CSU:
- The budget reduces state general fund support to the CSU by $97.6 million for the current 2008-09 fiscal year, placing the CSU $313 million below its operational needs.
- The budget falls short of operational needs for the 2009-10 fiscal year by $283 million. These cuts could grow by an additional $50 million depending on the size and scope of the economic stimulus package.
- The Legislature will discuss in upcoming budget subcommittee hearings the following CSU-related proposals that were not included in the enacted budget:
- $325 million proposed from lease-revenue bonds for six capital outlay projects;
- $3.6 million for a new cohort of 340 bachelor of science in nursing students.
Although the severity of the state's fiscal crisis required difficult decisions by the legislature, the budget will negatively impact CSU’s ability to maintain quality and services for its 450,000 students.
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Now that a budget has been passed, are the current spending restrictions going to be lifted?
No. The Governor’s budget has resulted in cuts in fiscal years 2008-09 and again in 2009-2010.
Now that a budget has been passed, when will the library be furnished and other campus construction projects resume?
Funding for these projects can only resume when the Pooled Money Investment Board ends its disbursement freeze. The Board’s next meeting is Mar. 18, 2009, but we have no indication that funding will be released for our library furnishings.
Regarding travel restrictions, can I attend a conference?
Conference attendance shall be restricted to those where the traveler is: a non-tenured, tenure-track professor presenting on the program, or an officer or active committee member of a sponsoring association. In rare cases when travel is authorized, care should be exercised – as always - in choosing reasonable accommodations.
Can I travel internationally?
No. All international travel is banned. In rare cases travel may be authorized by the Provost/Vice President and must be approved by the President, regardless of funding source.
What about travel to Alaska and Hawaii?
No. All travel outside the contiguous 48 States is prohibited.
Who can authorize travel?
Travel authorization under $1,000 may be approved by the Director/Dean if it meets the nre restrictive criteria. Expenditures between $1,000 and $2,500 require Provost/Vice President approval and require a written justification by the Director/Dean. Expenditures of $2,500 or more are strongly discouraged and will be approved by the Provost/Vice President under extreme circumstances.
Are there any exceptions to these new travel restrictions?
Yes. The following are permissible, with approvals: (1) Use of sponsored program funds to meet requirements for sponsored program activity. (2) Use of IRA funds that were previously approved requests. (3) Indirect Cost Recovery / F&A funds used solely for the purpose of generating additional research funds. (4) Prospective donor activity that furthers the comprehensive campaign.
Do these restrictions apply to auxiliary and foundation accounts?
Yes.
What are the new restrictions on Blanket Purchase Requisitions?
New Blanket Purchase requisitions for FY 2008/09 will no longer be processed except in extreme circumstances at the discretion of the Procurement Director.
What are the new restrictions on Direct Pays?
Direct pay expenditures exceeding $1,000 must be approved by the Director/Dean with written justification forwarded to the Provost/Vice President for approval.
Can I still yes my Procard?
Yes, but Procard limits have been adjusted to a maximum of $1,000 per transaction. Procard holders should limit its use to essential purchases.
Are hospitality expenses allowed?
Yes, but departments should work to minimize hospitality expenditures.
Is there a cost limit on purchase requisitions?
No, but all requisitions greater than $2,500 must be approved by the Director/Dean with written justification forwarded to the Provost/Vice President for approval.
How is the CSU assisting students who are experiencing delays in Cal Grant payments?
The CSU will defer State University Fee payments for the spring 2009 term for CSU students who experience delays receiving Cal Grants from the California Student Aid Commission. In addition, Cal Grant B recipients receive a stipend from the state. However, due to the state’s growing cash flow problem, CSU is not in a position to automatically cover these cash stipends to students. In these cases, Fresno State will try to provide short-term emergency loans to needy students on a case-by-case basis, provided students have exhausted alternative funding.
