California is cutting education funding at its own peril — The governor’s proposal is now on the table of the special legislative session that he called to address the budget crisis, so this is the time to draw a line to defend our public education system, before any further damage is added to the toll already taken by years of budget cuts on the educational — and hence life — prospects of a whole generation of Californian students. Los Angeles Times

CSU eyes admission cuts at all campuses — High school seniors in San Diego County and elsewhere might soon have a tougher time getting into a California State University school for fall 2009. Linda Lou in the San Diego Union-Trib — 11/17/08

William McGuiness: Education holds key to economy – The past president of the League of California Community Colleges writes that in this harsh reality of a potential depression and limited opportunities to work our way out of one, we need to continue funding higher education in general and community colleges in particular. Use 21st century thinking, and write the governor, urging him to refuse cutting community college funding in order to help our state’s economy flourish. McGuiness op-ed

State cuts likely to hit Merced College – Merced College could lose up to $2.9 million if Gov. Arnold Schwarzenegger’s budget cuts are passed by state legislators. An analysis by the Community College League of California identified the exact loss of state funds for each of California’s 72 community college districts. In addition, the league announced that cuts would force community colleges to turn away 262,845 students — or the enrollment equivalent of the entire University of California system. Merced Sun-Star article

Facing deficits, states get out sharper knives – The astonishing decline in revenues is without modern precedent here, but California is hardly alone. A majority of states — many with budgets already full of deep cuts and dependent on raiding rainy-day funds or tax increases — are scrambling to find ways to get through the rest of the year without hacking apart vital services or raising taxes. New York Times article

Deficit is clear, remedy is not – It’s a deceptively simple problem: Match how much money state government takes in with how much it spends. But the devil, as the saying goes, is in the details. And if there’s one thing California government abounds in, it’s devilish details: more than 150 agencies and departments populated by more than 200,000 employees carrying out uncounted programs that serve more than 37 million people. Sacramento Bee article

Lawmakers debate solutions to budget shortfall – Democratic state lawmakers said during a Capitol hearing Friday that government cuts would hurt the economy by eliminating public sector jobs, while Republicans asserted that tax increases would prolong the state’s woes by deterring consumer spending and business investment. All the while, nonpartisan Legislative Analyst Mac Taylor and Department of Finance Deputy Director Ana Matosantos warned that lawmakers can’t afford months of debate because the current year’s $11.2 billion budget shortfall becomes harder to close each day. Sacramento Bee article

Compton College benefiting from takeover by El Camino — After the campus was stripped of accreditation, many were skeptical of nearby school’s plan to step in. But students, staff and the community are excited by the ensuing changes, and enrollment is up. Alicia Lozano in the Los Angeles Times — 11/16/08

 Applications due by February 25, 2009. www.csus.edu/calst/programs 

3.2 million UC, CSU and CCC students call on Governor and Legislature to Increase Investment in Education, not cut $2.5+ billion from California’s Future — SACRAMENTO, CA - Today, Governor Arnold Schwarzenegger proposed cutting $2.3 billion from K-12, $334 million from CCCs, $66 million from CSUs and $66 million from UCs, a total of $2.5+ billion from California’s education system. In response to this, UC, CSU, and CCC students have come together to let Governor Schwarzenegger know that this is simply unacceptable. Students for California’s Future Press Statement

California Community College Student Leaders Call for Community’s Support Against Governor’s Proposed Cuts to Education — The Student Senate for California Community Colleges (SSCCC) is calling for the Governor and the legislature to rethink the proposed midyear cuts, totaling $2.7 billion, to education. The SSCCC, representing more than 2.7 million students of the world’s largest higher educational system, opposes any such cuts to any sector of education during this time of economic crisis. Student Senate for California Community Colleges

Students Respond to the State of CA Fiscal Crisis — CSSA is committed to the accessibility of an affordable, quality education for the 450,000 students of the California State University.  On Thursday, November 6, 2008; the Governor announced his plans to call a special legislative session to deal with the current year budget gap. During the press conference the Governor spoke about hard times and across-the-board cuts to programs and services due to the fiscal emergency of the state. California State Student Association

UC SYSTEM, HEART OF CALIFORNIA ECONOMY, TO TAKE ON MORE BUDGET CUTS — “This morning Governor Schwarzenegger proposed cutting $132 million from CA Higher Education, including a $66.3 million cut to the UC System and $402,000 cut from UC Hastings College of the Law. The Governor says the cuts are necessary to address the state’s budget emergency and ’stimulate California’s economy.’ University of California Student Association

Oil firms vow to fight Schwarzenegger’s tax proposal – California oil producers vowed Thursday to wage an all-out lobbying battle against Gov. Arnold Schwarzenegger’s call for a 9.9% state tax on every barrel of crude pumped out of the ground. The governor said the tax was an important part of a budget-balancing solution at a time of economic crisis in the state. But the oil industry warned it would mean higher gasoline prices during a recession. Marc Lifsher in the Los Angeles Times — 11/7/08

Governor: Tax hikes, spending cuts to fix budget — Gov. Arnold Schwarzenegger called Thursday for the Legislature to convene a special session to approve his plan to overcome the state’s projected $11.2 billion revenue shortfall by raising billions of dollars in new taxes and making major spending cuts. Matthew Yi in the San Francisco Chronicle Kevin Yamamura and Jim Sanders in the Sacramento Bee Evan Halper and Jordan Rau in the Los Angeles Times Harrison Sheppard in the Los Angeles Daily News Judy Lin AP E.J. Schultz in the Fresno Bee — 11/7/08

Governor’s tax plan has friends, foes – Higher taxes? In a recession? From refrigerator repair to oil production, Gov. Arnold Schwarzenegger’s budget plan launched an instant debate Thursday on the economic impact of increasing the tax burden on a weary populace. Sacramento Bee article

State workers furious with proposed pay, benefit cuts— State workers Thursday blasted Gov. Schwarzenegger’s proposal to furlough them one day a month and drop two paid holidays from their calendar. Schwarzenegger’s plan needs legislative approval before the government could put most of its 240,000 employees on unpaid leave one day each month, eliminate the Columbus Day holiday, combine Lincoln’s and Washington’s birthdays into Presidents Day, end holiday overtime pay and stop counting a worker’s time off for vacation or illness toward weekly overtime. Sacramento Bee article

Governor aims to boost jobless insurance fund – Gov. Arnold Schwarzenegger unveiled a plan to fix California’s near bankrupt unemployment insurance fund on Thursday by cutting worker benefits, increasing company payroll taxes and borrowing from the federal government. Sacramento Bee article

Dan Walters: Budget meltdown was inevitable – Well, it was bound to happen sooner or later. Gov. Arnold Schwarzenegger and an ideologically polarized Legislature had danced around California’s budget mess for years, running up deficits even during prosperous years and covering shortfalls with hide-the-pea bookkeeping and phantom revenues. Walters column

Analysis: Is Schwarzenegger wise to raise taxes in a bad economy? – It’s been conventional wisdom in modern politics — and holy writ among Republicans — that when the economy hits the skids, the last thing you want to do is saddle the people with more taxes. John Woolfolk in the San Jose Mercury — 11/7/08

A state sales tax jump could backfire — Gov. Schwarzenegger’s proposal for a temporary increase could drive consumers to buy outside the state or over the Internet. Martin Zimmerman in the Los Angeles Times — 11/7/08

For Immediate Release

Media Contact:  Tim Snyder, Chair of the Board of Directors

Office: 209-662-4374

Email: cssa.chair@csustudents.org

  Students Respond to the State of CA Fiscal Crisis 

“Considering that California has already failed to fund 10,000 current CSU students, additional mid-year cuts will further debilitate the CSU in its mission to provide a quality and affordable education to the people of California.”

 Sacramento, CA - Tim Snyder, Chair of the California State Student Association (CSSA) and senior at California State University, Sacramento released the following statement this afternoon in response to the emerging state budget shortfall:

 CSSA is committed to the accessibility of an affordable, quality education for the 450,000 students of the California State University.  On Thursday, November 6, 2008; the Governor announced his plans to call a special legislative session to deal with the current year budget gap. During the press conference the Governor spoke about hard times and across-the-board cuts to programs and services due to the fiscal emergency of the state.

 Even during these hard times, it’s important to put value in an accessible and affordable quality education. In fact, public higher education should be the number one priority. Public higher education is the economic engine for California; it produces the teachers, engineers, and nurses that are needed.  Public higher education is the best investment CA could make.  As a student and future leader of our state, there is no doubt that public higher education is the key to the social well being of Californians, as well as the future economic success of our Golden state.

 It is no secret that undergraduate student fees have increased 94% since 2001 (2001-2007) and we continue to face those increases despite the need for an educated and prosperous California.  The rising cost of student fees has squeezed families that don’t qualify for financial aid and cannot afford to pay for college. As a result, approximately two-thirds of recent graduates carry student loans and their average debt has increased by more than 50 percent over the past decade.  The students of California cannot incur fee increases and financial debt year after year without eventually impacting California’s future economy.

 Considering that California has already failed to fund 10,000 current CSU students, additional mid-year cuts will further debilitate the CSU in its mission to provide a quality and affordable education to the people of California.  Mid year cuts will result in devastating reductions to student services, financial aid and course availability while leaving all 23 campuses in serious financial risk.

 We reaffirm our stance that investing in public higher education is an investment in California’s future. We call upon our state leaders to keep to the promise of the Master Plan of Higher Education alive by maintaining an affordable, quality education that is accessible to the people of California.

 In a budget crisis such as this, we must ask ourselves what our priorities are and how our decisions will impact us today and in the years to come. I am asking California’s elected officials to look beyond politics as usual and consider the crippling consequences that cuts to the CSU have on our state and young generations.

 In the coming months, CSSA will be working with student leaders on each of the 23 CSU campuses, as well as at the UC and CCC campuses to analyze the budge situation, and empower all students to hold elected officials accountable to fully fund public higher education and stop student fee increases.

###

 Mission Statement

It is the mission of the California State Student Association (CSSA) to maintain and enhance accessibility, affordability and quality of education for the people of California, to the People’s University.

 As the single recognized voice for over 450,000 students in the California State University system, CSSA is the acknowledged statewide student organization designed to represent, serve and protect the collective interests of students in the CSU system.

Governor Schwarzenegger Announces Plan to Address Budget Emergency, Stimulate California’s Economy

To remedy California’s urgent budget situation due to economic conditions radically deteriorating since the 2008 Budget Act was signed, Governor Arnold Schwarzenegger today called a special session of the legislature and announced an action plan to get our budget back on track, invigorate our economy and generate jobs for the state’s unemployed. The Governor called for a combination of cuts and revenue increases to solve California’s budget shortfall which has now reached $11.2 billion. The actions prescribed by the Governor must be taken up as quickly as possible in order to prevent a cash crisis that will jeopardize vital state services.

“In the six weeks since I signed our last budget the mortgage crisis has deepened, unemployment has increased and the stock market has lost almost 20 percent of its value,” Governor Schwarzenegger said. “We have drastic problems that require drastic and immediate action-we must stop the bleeding right now. We must first close a projected current year shortfall of $11.2 billion, and then we must address the mortgage crisis to keep people in their homes, implement an economic stimulus package to help retain existing jobs and create as many new ones as possible, and fix the state’s Unemployment Insurance Fund. I look forward to working with all the legislators, hearing their ideas and doing what is best for the people of California.”

While Governor Schwarzenegger has worked to fix the state’s spending problem, and has kept state spending relatively flat for the past three budget cycles, the dramatic drop in our revenue projections over the past six weeks presents an extraordinary situation which, combined with the volatility of our tax system, creates a revenue problem. To address this extraordinary situation, the Governor is proposing $4.5 billion in difficult cuts and $4.4 billion in new revenues for the current-year budget which will ensure the state can protect vital services.

Governor Schwarzenegger’s proposal calls for a temporary increase in the state sales tax, from 5 percent to 6.5 percent, which will generate additional sales tax revenues of $3.219 billion in 2008-09 and $6.606 billion in 2009-10 for the General Fund. It will also effectively protect significant education funding. At the end of three years, the state sales tax would revert back to 5 percent. Additionally, the Governor called for additional revenue increases including broadening the sales and use tax to include certain services, imposing an oil severance tax upon any oil producer that extracts oil from the earth or water in this state and increasing the alcohol excise tax by five cents a drink.

Yesterday, the Governor announced an aggressive plan to help shore up our state’s economy by helping Californians stay in their homes. His proposal would bring down foreclosure rates by helping both borrowers and lenders modify existing home loans in ways that benefit both parties. Also, to prevent another mortgage crisis in the future, the Governor is prescribing changes to the way mortgages are brokered and originated to make lenders more accountable, guard against risky mortgages and prevent unsustainable bubbles from ever arising again.

Governor Schwarzenegger has also unveiled a plan of targeted actions that will stop our economy’s downward spiral now.  His prescription is full of specific actions to generate jobs, keep jobs and businesses that are tempted to leave in California and lure those that have left back to the Golden State. The major elements of the Governor’s plan are workplace reforms to assist California businesses and put an end to costly lawsuits and clearing regulations in order to push specific funding that is already “in the pipeline” out into the economy sooner.

The Governor’s plan to stimulate employment in our state includes:

• Accelerating hospital construction to inject approximately $160 million into California’s economy.
• Pushing out and expediting infrastructure bond monies to create jobs and help unemployed residential construction workers in the hardest hit areas of the state get trained in a new type of construction.
• Keeping high paying jobs in California by providing overtime exemptions and allowing more flexible work schedules to increase productivity.
• Clarifying meal and rest periods to save businesses hundreds of millions of dollars in litigation costs and create less confusion from meal break violations which will mean fewer terminations.
• Reducing barriers to public-private partnerships and “design-build” agreements to enable more infrastructure to be built better, faster and cheaper and generate more jobs during the housing downturn.
• Keeping television and film production in California by providing targeted tax credits and keep thousands of jobs in the state and economic output in our state.

Governor Schwarzenegger also unveiled a plan to continue to help those Californians most in need by ensuring benefits for the state’s unemployed through restoring solvency to the unemployment insurance fund. The financing system for the trust fund is over 20 years old - and while benefits have increased, contributions have remained the. The fund is projected to be $2.4 billion in the red for the coming calendar year and $4.9 billion in the red in 2010. If no changes are made, federal taxes for California employers will increase in 2012.

To shore-up the fund and protect benefits to unemployed Californians, the Governor has called for a gradual increase in contributions into the fund, combined with a small reduction in benefits in order to maintain the fund’s solvency.

In an effort to avoid the extreme revenue swings that have caused crippling deficits in our state, the Governor and legislative leaders last week announced the long-term action of creating the bipartisan Commission on the 21st Century Economy to re-examine and modernize California’s out-of-date revenue laws that contribute to our feast-or-famine state budget cycles. The commission will suggest changes that will result in a revenue stream that is more stable and reflective of our economy while maintaining a fair and equitable revenue structure that will ensure our continued competitiveness and attraction to employers and workers.

11/6/2008

Unprecedented Decisions in an Extraordinary Situation
Sudden Changes In Our Economy Demand a Combination of Difficult Cuts and New Revenues

Economic conditions have deteriorated radically since the Governor signed the 2008 Budget Act on September 23. The volatility in our nation’s financial markets has affected our budget - which is too reliant on Wall Street gains - to a point where the state faces the very real possibility of running out of the necessary cash to meet all its obligations.  Critical state services could be jeopardized. California is facing a hole of $11.2 billion in lower revenues than when the state budget was signed just six weeks ago. To remedy the urgent situation, the Governor is prescribing a combination of cuts and revenue increases - all of which must be taken as quickly as possible to prevent a cash crisis and an even larger budget problem next year.¦lt;br />

BUDGET SOLUTIONS

Necessary Budget Adjustments: With $11.2 billion less revenue than we anticipated just six weeks ago, it is necessary to immediately make cuts to our budget. The Governor is proposing $4.5 billion in cuts to the current-year budget. All of the cuts are painful, but essential to ensure the state can protect vital services. The major budget adjustments are:

Proposition 98 Education Funding. Because education funding is based on revenues, and revenues have fallen, funding to the Proposition 98 guarantee also drops. The Administration proposes total Proposition 98 expenditure reductions of $2.5 billion, which keeps education funding at approximately $122 million higher than the minimum guarantee.

Higher Education. $132 million in reductions are proposed for higher education segments, including $65.5 million to the University of California system and $66.3 million to the California State University System.

Supplemental Security Income/State Supplementary Payment. Reduce SSI/SSP grants to the federal minimum effective March 1, 2009, which would result in General Fund savings of $348.9 million in 2008-09

CalWORKs. Modifying the Safety Net program, making certain benefits consistent with other CalWORKs benefits, instituting a face-to-face self-sufficiency review every six months for some CalWORKs families, and reducing CalWORKs grants by 10 percent effective March 1, 2009, would result in General Fund savings of $273.9 million for the current fiscal year.

Employee Compensation Changes. Requiring state employees take a one day furlough each month, eliminating two state holidays (combining Lincoln and Washington days into Presidents Day, and Columbus Day) and premium pay for hours worked on all remaining holidays, as well as eliminating the ability to count leave time as hours worked when computing overtime will result in General Fund savings of $320 million in the current fiscal year. Additionally, the Governor proposes changes that would give state agencies the ability to establish a ten-hours-per-day, four-day workweek. 

Department of Corrections and Rehabilitation (CDCR): To realize saving in corrections, the administration proposes implementing parole reforms that protects public safety while cutting costs. This will be done mostly through parole reforms where high risk offenders who have committed serious, violent, or sexual crimes receive full supervision on parole while low-risk non-serious offenders receive no parole supervision after their release from prison. These reforms will save $78.1 million in 2008-09 and $677.6 million in 2009-10.

Public Safety Grants: By proposing a funding realignment for public safety grants we are protecting funding for core public safety activities while realizing General Fund savings of $250 million in 2008-09. Booking fees, the COPS and Juvenile Justice programs, and juvenile probation would receive stable, non-General Fund support going forward.

Medi-Cal. Reducing California benefits to the level provided in most states, and ceasing to provide some optional benefits for adults will keep California providing more optional benefits than most states and will save the General Fund savings $41 million in 2008-09 and $129.9 million in 2009-10.

A Revenue Problem: While Governor Schwarzenegger has worked to fix the state’s spending problem, and has kept state spending relatively flat for the past three budget cycles, the dramatic drop in our revenue projections over the past six weeks presents an extraordinary situation which, combined with the volatility of our tax system, creates a revenue problem. Raising taxes is never a good idea, but in this extraordinary situation, there is no question that new revenues must be brought into the state to protect education and vital services. The Governor is proposing $ 4.7billion in new revenues for the current budget year in the form of:

A Temporary Sales Tax Increase:  A temporary increase in the state sales tax (from 5 percent to 6.5 percent) will generate additional sales tax revenues of $ 3.5 billion in 2008-09 for the General Fund. It will also effectively protect significant education funding. At the end of three years, the state sales tax would revert to 5 percent.

Broadening the Sales and Use Tax to Include Certain Services:  Effective February 1, 2009, the sales and use tax rate will be applied to appliance and furniture repair, vehicle repair, golf, and veterinarian services.  Effective March 1, 2009, the sales and use tax rate will be applied to amusement parks and sporting events.  This is expected to generate additional General Fund sales tax revenue of $357 million in 2008-09.

Oil Severance Tax:  Effective January 1, 2009, impose an oil severance tax upon any oil producer for the right to extract oil from the earth or water in this state. This brings California in line with other states. The tax shall be applied to the gross value of each barrel of oil at a rate of 9.9 percent and will generate additional tax revenues of $528 million in 2008-09.

Increase Alcohol and Excise Taxes:  Alcohol excise taxes are proposed to be raised by five cents a drink beginning on January 1, 2009. This increase is estimated to raise $293 million in 2008-09. Revenues from this tax will be used to fund critical drug and alcohol treatment and prevention services. Alcohol taxes were last raised in 1991.

11/06/2008   GAAS:764:08   FOR IMMEDIATE RELEASE

To remedy California’s urgent budget situation due to economic conditions radically deteriorating since the 2008 Budget Act was signed, Governor Arnold Schwarzenegger today called a special session of the legislature and announced an action plan to get our budget back on track, invigorate our economy and generate jobs for the state’s unemployed. The Governor called for a combination of cuts and revenue increases to solve California’s budget shortfall which has now reached $11.2 billion. The actions prescribed by the Governor must be taken up as quickly as possible in order to prevent a cash crisis that will jeopardize vital state services.

“In the six weeks since I signed our last budget the mortgage crisis has deepened, unemployment has increased and the stock market has lost almost 20 percent of its value,” Governor Schwarzenegger said. “We have drastic problems that require drastic and immediate action-we must stop the bleeding right now. We must first close a projected current year shortfall of $11.2 billion, and then we must address the mortgage crisis to keep people in their homes, implement an economic stimulus package to help retain existing jobs and create as many new ones as possible, and fix the state’s Unemployment Insurance Fund. I look forward to working with all the legislators, hearing their ideas and doing what is best for the people of California.”

While Governor Schwarzenegger has worked to fix the state’s spending problem, and has kept state spending relatively flat for the past three budget cycles, the dramatic drop in our revenue projections over the past six weeks presents an extraordinary situation which, combined with the volatility of our tax system, creates a revenue problem. To address this extraordinary situation, the Governor is proposing $4.5 billion in difficult cuts and $4.4 billion in new revenues for the current-year budget which will ensure the state can protect vital services.

Governor Schwarzenegger’s proposal calls for a temporary increase in the state sales tax, from 5 percent to 6.5 percent, which will generate additional sales tax revenues of $3.219 billion in 2008-09 and $6.606 billion in 2009-10 for the General Fund. It will also effectively protect significant education funding. At the end of three years, the state sales tax would revert back to 5 percent. Additionally, the Governor called for additional revenue increases including broadening the sales and use tax to include certain services, imposing an oil severance tax upon any oil producer that extracts oil from the earth or water in this state and increasing the alcohol excise tax by five cents a drink.

Yesterday, the Governor announced an aggressive plan to help shore up our state’s economy by helping Californians stay in their homes. His proposal would bring down foreclosure rates by helping both borrowers and lenders modify existing home loans in ways that benefit both parties. Also, to prevent another mortgage crisis in the future, the Governor is prescribing changes to the way mortgages are brokered and originated to make lenders more accountable, guard against risky mortgages and prevent unsustainable bubbles from ever arising again.

Governor Schwarzenegger has also unveiled a plan of targeted actions that will stop our economy’s downward spiral now.  His prescription is full of specific actions to generate jobs, keep jobs and businesses that are tempted to leave in California and lure those that have left back to the Golden State. The major elements of the Governor’s plan are workplace reforms to assist California businesses and put an end to costly lawsuits and clearing regulations in order to push specific funding that is already “in the pipeline” out into the economy sooner.

The Governor’s plan to stimulate employment in our state includes:

• Accelerating hospital construction to inject approximately $160 million into California’s economy.
• Pushing out and expediting infrastructure bond monies to create jobs and help unemployed residential construction workers in the hardest hit areas of the state get trained in a new type of construction.
• Keeping high paying jobs in California by providing overtime exemptions and allowing more flexible work schedules to increase productivity.
• Clarifying meal and rest periods to save businesses hundreds of millions of dollars in litigation costs and create less confusion from meal break violations which will mean fewer terminations.
• Reducing barriers to public-private partnerships and “design-build” agreements to enable more infrastructure to be built better, faster and cheaper and generate more jobs during the housing downturn.
• Keeping television and film production in California by providing targeted tax credits and keep thousands of jobs in the state and economic output in our state.

Governor Schwarzenegger also unveiled a plan to continue to help those Californians most in need by ensuring benefits for the state’s unemployed through restoring solvency to the unemployment insurance fund. The financing system for the trust fund is over 20 years old - and while benefits have increased, contributions have remained the. The fund is projected to be $2.4 billion in the red for the coming calendar year and $4.9 billion in the red in 2010. If no changes are made, federal taxes for California employers will increase in 2012.

To shore-up the fund and protect benefits to unemployed Californians, the Governor has called for a gradual increase in contributions into the fund, combined with a small reduction in benefits in order to maintain the fund’s solvency.

In an effort to avoid the extreme revenue swings that have caused crippling deficits in our state, the Governor and legislative leaders last week announced the long-term action of creating the bipartisan Commission on the 21st Century Economy to re-examine and modernize California’s out-of-date revenue laws that contribute to our feast-or-famine state budget cycles. The commission will suggest changes that will result in a revenue stream that is more stable and reflective of our economy while maintaining a fair and equitable revenue structure that will ensure our continued competitiveness and attraction to employers and workers.

The Legislative Analyst’s Office has just issued the following report:

——————————————–
California Spending Plan 2008-09: The Budget Act and Related Legislation
——————————————–

The state’s already difficult budget situation was made worse this year by a significant drop in revenues due to a sluggish economy. The enacted budget, combined with special session actions in February 2008, contains about $24 billion in solutions and projects a General Fund reserve of $1.7 billion. Overall, the state spending plan for 2008-09 includes total budget expenditures of $131.6 billion. This includes $103.4 billion from the General Fund and $28.2 billion from special funds. Total state spending declines slightly by $511 million from 2007-08 (0.4 percent). Bond fund spending is expected to increase by 1.3 percent, as the state continues to allocate funds from the $43 billion bond package approved at the November 2006 election. (76 pp.)

The report is available using this link:
http://www.lao.ca.gov/laoapp/PubDetails.aspx?id=1892

Higher tuition puts more pressure on students — As the economy walloped their finances, students and families saw little relief this fall from rising college costs, which jumped 6.4 percent at state universities, according to new figures out Wednesday. Justin Pope AP Larry Gordon in the Los Angeles Times — 10/30/08

Governor: State faces fiscal ’state of emergency’ - Gov. Arnold Schwarzenegger characterized the state’s projected multibillion-dollar budget deficit Wednesday as a “state of emergency,” reflecting money woes worldwide, and he warned that major public services will be affected. “Since everyone has to take a haircut here, it’s natural that education gets hit, law enforcement gets hit, prisons are going to get hit, and also health care is going to get hit,” Schwarzenegger said. “So, it’s just the math, it’s not me, it’s mathematics that tell you that you have to make cuts in those kind of different areas.” Capitol Alert

Schwarzenegger announces commission to overhaul tax structure — Gov. Arnold Schwarzenegger established a new state commission Thursday to overhaul the state’s tax structure after facing significant volatility tied to stock market losses that already have hamstrung this year’s budget. Kevin Yamamura in the Sacramento Bee –

CSSA has worked hard and long to support The California Dream Act.  Tell the Governor how you feel about his veto.

GOVERNOR VETOES CALIFORNIA DREAM ACT, PRIVATELY FUNDED STUDENT AID MONIES

(Los Angeles) - Governor Schwarzenegger vetoed Sen. Gilbert Cedillo’s California Dream Act (SB 1301) late Tuesday night, limiting the expansion of higher education access through privately funded student financial aid. The proposal would have enabled qualifying undocumented students to apply for aid administered by individual college and universities such as State University Grants, UC Grants, scholarships, and loan programs which are all funded by non-state monies.

In his veto message the Governor noted “the precarious fiscal condition the state faces” as his reason for not signing the bill despite the fact that the proposal did not propose using any state-funded financial aid sources.

For a third straight year the bill won support among major educational and business advocates as well as in news editorial pages as a cost effective means to expand access to higher education. The University of California, California State University, the Community College League of California, the California Student Aid Commission, and the governor-appointed Post Secondary Education Commission each renewed their support of the bill as well as the student associations for the UC and CSU, the California Catholic Conference, MALDEF, Green Dot Public Schools, PowerPAC, and the Los Angeles Unified School District. Business groups supporting the bill included the Los Angeles, San Francisco, and the California Hispanic Chambers of Commerce.

Supporters express concerns that the Governor has not done enough to secure access to higher education for all students. They worry that intense student fee hikes, budget restrictions limiting new student admissions, and opposition to the expansion of private financial aid dollars pose too steep a barrier for entry to aspiring students regardless of status. Opinion pieces in the Sacramento Bee and San Jose Mercury News expressed concern that the Governor, an immigrant himself, is turning a blind eye to the struggles of undocumented students noting that many advance despite barriers such as attending high schools with drop out rates over 50% and once admitted to a college or university, working two or three jobs to pay their tuition.

“SB 1301 presents a win-win situation for AB 540 students and our state. First, the bill broadens opportunities for AB 540 students to obtain privately funded scholarships and grants. We serve thousands of undocumented students each year. These students are actively involved in our campuses as student leaders and honor students. They are eager to obtain an education, transfer to four-year universities, and enter the workforce. Secondly, the bill does not carry a financial burden for the state but instead benefits California with an expanded investment in workforce training and higher education,” said Edward Hernandez, Jr., chancellor of the Rancho Santiago Community College District. Rancho Santiago is the fourth largest community college district in the state.

“Once again the Governor has chosen to ignore non-partisan research and business community support for a landmark education bill that would strengthen California’s workforce. For the third year in a row the Governor choose to override his own appointees and those agencies responsible for managing higher education in our state, and turn a blind eye to the immigrant students of our state,” said Cedillo. “It’s shocking in such difficult financial times, with the state facing systemic budget shortfalls that the Governor would turn down private monies; investment that would secure our economic position and expand educational attainment of our workforce.”

The CSU Board of Trustees will discuss a plan to declare impaction for the entire CSU system-a first in its history-when it meets Nov. 18 and 19 in Long Beach. The plan is in response to CSU’s declining resources, the latest of which came last week when Gov. Schwarzenegger called for an additional $66.3 million cut to the CSU’s budget to help close the state’s estimated $11.2 billion shortfall. The CSU’s proposed mid-year cut would come on top of the final 2008-09 budget already $215 million below the CSU’s operational needs for the fiscal year, and in addition to a previous one-time $31.3 million reduction.

For several years, the CSU system has been providing access to more students while resources have remained static and in some cases, have declined. While student demand to enroll at the CSU is at its highest levels, the 2008-09 budget does not provide funding above that of the previous year. Given the state’s worsening fiscal condition, it is anticipated that funded students for 2009-10 will remain at 2007-08 levels. Declaring the CSU impacted as a system will help to align funded and actual enrollment. More information.

College tuition could rise sharply, officials warn
The cost of higher education jumps nearly 6% for students in the 2008-09 academic year. Experts say the widening economic crisis might worsen those bills in 2009-10.  Full Story Here

After registering over 17,000 students its now time to get everyone to the polls tomorrow and remind them to go all the way!  Lets join hands with the “Don’t Stop at The Top” campaign by asking young voters to pledge to vote all the way down the ballot, including the propositions and to get their friends to pledge to “Go All The Way” too.

Voters can learn more, pledge to “Go All the Way” and sign up for a reminder on Nov 4 at www.dontstopatthetop.org or by texting DONTSTOP to 41411.

The Don’t Stop at the Top Facebook Application (http://apps.facebook.com/dontstopatthetop)

Vote all the way down the ballot!!!

Here is how your campus did on the Voter Registration efforts… GREAT JOB CSU!

Story from IBeatMyBookstore.com

SAN MARCOS - Recently the California State Student Association held its monthly Board of Directors meeting in San Marcos, California. Representatives from thirteen California State University campuses gathered to discuss a number of issues including textbook affordability and the raising cost of student fees.

On the issue of high textbook prices, IBeatMyBookstore.com was presented as one strategy for helping students find affordable buying options. Olgalilia Ramirez, Director of Governmental Relations, distributed informative flyers about how student governments’ can use IBeatMyBookstore.com to offer students an alternative to campus bookstores. The CSSA was able to identify which student governments could benefit from the textbook exchange program and connect them with IBeatMyBookstore.com organizers to learn more about their service.

“The price of textbooks is not typically factored into the total cost of higher education in California. In the last decade the price of textbooks has grown faster than the rate of inflation. For this reason CSSA supports ibeatmybookstore.com’s efforts to provide students with an accessible and affordable book exchange service,” said Andrew Janz, Legislative Affairs chair of the California State Student Association and Associated Student President at CSU, Stanislaus.

The CSSA is the first statewide student organization to reach out and inform their members about IBeatMyBookstore.com.

On Saturday, August 16, 2008 the CSSA Board of Directors identified student issues for the 2008-09 CSSA Policy Agenda. The Board of Directors broke into three working groups and identified issues affecting CSU students. The three issues that were identified are:

• CA Budget: Fully Funding the CSU and Student Fees (tuition)
• Text Book Affordability
• Tex Book Access (availability)

Board members began to strategically address each of these issues by identifying targets and tactics. There will be an information session to discuss/ debate, build consensus and develop an educational campaign for 2008-09.

The information session will be at the CSSA Plenary September Meeting in San Marcos on Saturday, September 13, 2008.

For more information please contact the CSSA Office at 562-951-4025.