CSU has $2.3 Billion Reserve

The CSU administrators have hiked up their own salaries, raised student fees 79% in ten years, have $1.2 billion in reserves, but are still too cheap to bring their faculty member's salaries into line with peer institutions.

According to the California Faculty Association and its financial consultant, CSU's cash flow has been so consistent during the past five years that its non-discretionary accounts -- those funds that are not earmarked for specific programs -- have mushroomed. Most of the money is in bank accounts and short-term investments.

The reserve is "an excessive cushion at a time when the mission of the university is suffering," said faculty union spokeswoman Alice Sunshine. "Students are being burdened with more debt, classes have been cut, some campus budgets have been cut, and the faculty salaries are falling behind the cost of living."

The bond rating may be excellent, but it is students who are paying through the nose.

The outcome of the CFA strike vote will be announced tomorrow. From their press release:

"We believe that these reports indicate that the people in the administration of the CSU are not being straight with the legislature, taxpayers, faculty, or students," said John Travis, CFA President and professor of political science at Humbolt State University.

"The CSU administration has the immediate resources needed to address the urgent needs of the classroom and to make genuine progress toward paying the faculty at the same level as our peers around the country."

"Taxpayers provide money and student pay fees with the intent to ensure a high quality education for Californians. The mission of the CSU is to teach. It is good for the institution to be financially healthy. Bug good finances are meaningless if that is achieved by slashing the quality of the education we provide, and making it harder for our young people to go to college.