California State University (CSU or CalState) is a major component of the state’s public higher education system, along with the University of California and the California Community College System. Almost 412,000 students attend the 23 university campuses and seven off-campus centers it administers throughout the state. Combined, the campuses and off-campus centers offer more than 2,000 different bachelor’s and master’s degree programs. The university also operates laboratories and observatories throughout the state.

The California State University system traces its origins back to the Weekly Normal School founded in 1857 to train elementary school teachers. That school became California State Normal School and moved from San Francisco to San Jose in 1871; the campus is now San Jose State. More campuses were designated State Normal Schools and in 1921 they became known as State Teachers Colleges. The name changed again in 1935 to State Colleges, which were administered by the State’s Department of Education.

The impetus to create a unified college system with shared standards gathered strength in the 1950s, when the G.I. Bill enabled thousands of former servicemen to attend college. The old system simply could not provide a consistently high level of education. In 1960, the state’s Master Plan for Higher Education and the Donahoe Higher Education Act created California State Universities and Colleges, intended to provide up to four years of higher education for most students, but also offering master’s degrees in some areas. The Donahoe Act also set up the Board of Trustees that governs CSU. In addition to CSU, the Donahoe Act established the University of California and the California Community College systems.

By 1963, a Master Curricular Plan was approved which afforded students preparation for professional and occupational goals and a broad liberal arts education. All the CSU schools were renamed in 1972 so that their names began with California State College or University, followed by the city name. Some have reverted to their former names, like San Jose State.

In 1982, the system changed its name once more to The California State University. In the past few years, CSU has been authorized to offer doctoral degrees in education, physical therapy and nursing practice. The newest campus of CSU, which opened in 2002, is on the Channel Islands.

About the CSU (CSU website)

History (CSU website)

California State University is the nation’s largest university system, with 22 campuses located all over the state and the California Maritime Academy.

CSU Mentor allows prospective students to view the nearest campus by zip code or major, or to sort and view comparisons of several campuses. In addition, there are seven off-campus centers, numerous centers and institutes offering specialized training and 22 biological field stations and marine laboratories. All are available to students seeking accessible and affordable higher education.

CSU welcomes the top one-third of California’s high school graduates and it graduates about 95,000 people each year: more than 75,000 with bachelor’s degrees and 19,000 with master’s degrees.

A 25-member board of trustees adopts the rules, regulations and policies that govern CSU in areas of curricular development, use and development of funds, property and facilities, and fiscal and human resource management. The trustees also appoint the chancellor, the vice chancellor and the university presidents.

Members of the board include the governor, lieutenant governor, speaker of the state assembly, the state superintendent of public instruction and the CSU chancellor. The CSU alumni council appoints a trustee, and the governor appoints a faculty trustee and two student trustees, one non-voting. These appointees serve two-year terms. The governor appoints 16 more trustees who are confirmed by the state Senate and serve eight-year terms.

The board meets seven times a year and currently has nine standing committees: Audit, Campus Planning, Building and Grounds, Collective Bargaining, Educational Policy, Finance, Governmental Relations, Institutional Advancement, Organization and Rules and University and Faculty Personnel.

The chancellor, appointed by the board of trustees, is the chief executive officer of CSU. Each campus also has a president appointed by the trustees to be the chief executive officer at their location. The presidents also serve as the face of the university and the liaison between the school and community, and they report to the chancellor.

Board of Trustees (CSU website)

Chancellor (CSU website)

Administration (CSU website)

The cost of attending a CSU school has doubled since 2007 as all institutions of higher learning in California continue to wrestle with diminishing support from a state government caught in the throes of an economic downturn.

Reacting to an anticipated $500 million budget, CSU in late 2010 raised tuition student fees by 10%, generating $225 million, though one-third of that was earmarked for student financial aid. When the budget cut was finalized at $650 million in July 2011, the board of trustees voted another tuition hike of 12%.

It was the second increase in less than a year.

CSU Chief Financial Officer Ben Quillian said the alternative to raising tuition the second time was denying 400,000 students admission, closing entire campuses or eliminating 2,300 jobs. The university laid off more than 4,125 employees since 2008, around 9% of its workforce.

At the same time trustees approved tuition increases, they also approved hefty salary and benefit increases for three executives and the CSU chancellor. Incoming San Diego campus President Elliot Hirshman will be paid $400,000 a year, $100,000 more than his predecessor.

Associate Vice President Santiago Muñoz got a 24% boost to $250,000 and Vice President Patrick Lenz received a 10% raise to $300,000. Mark Laret, who runs the UCSF Medical Center, saw his compensation rise $195,300 to $935,000, with a retention bonus of $1 million over four years.

Democratic state Senator Leland Yee immediately introduced legislation to prohibit executive pay raises at CSU and the University of California in years the state does not raise school allocations.

While high profile executives were on the receiving end of CSU’s largesse, salaries in general were feeling the budget pinch, according to an analysis by the Orange County Register. The average fulltime employee in 2010 took a $2,302 pay cut, down from $60,010 in 2009.

Nearly one-third of CSU’s $7.21 billion budget comes from the state’s General Fund. Another third is from student fees and tuition. Around 13% is from unclassified funds, 9% is federal money for student aid and most of the rest comes from dormitory charges and parking revenues.

CSU slices and dices its budget in various ways, but in a Q&A on its website it says 42% is spent on instruction, 25% goes for operations and institutional support (administration, information technology, etc.), 11% for libraries, museums, academic technology and other academic support, 10.9% for student grants and loans, and 10.8% for student service like counseling and health centers.

CSU Tuition Now Twice 2007 Cost (by Nanette Asimov, San Francisco Chronicle)

Bill to Curb California College Execs' Pay Raises (by Nanette Asimov, San Francisco Chronicle)

CSU Salaries Shrink Amid Budget Cuts (by Fermin Leal, Orange County Register)

3-Year Budget (pdf)

2011-2012 Budget: Frequently Asked Questions (pdf)

Lack of transparency at CSU Foundations

Many CSU campuses have foundations—sometimes several foundations--which support the schools through philanthropy and fundraising. During some years, these foundations provide as much as one-fifth of CSU’s operating budget. However, the foundations are not always bound by the California Public Records Act, and can claim that their records are private, not public. “That’s self-evidently abusive,” according to a Los Angeles Times editorial. “Indeed, the foundations have used their immunity from disclosure to perform plenty of mischief.”

In 2009, a foundation at Sonoma State used funds donated to the university as loans to cronies of the foundation’s board members—in one case, a million dollars was loaned to a former board member who declared bankruptcy after receiving the money. And at Sacramento State, the president used such funds ($27,000) to remodel his kitchen, according to the Times.

A bill to extend the Public Records Act to cover these foundations passed California’s legislature but was vetoed by Governor Arnold Schwarzenegger on grounds that it would discourage donors who wanted to give money anonymously. A rewritten version of the bill was reintroduced by state Senator Leland Yee in 2010.

CSU Stanislaus asked former Alaska governor and vice presidential candidate Sarah Palin to speak at a 2010 fundraising dinner, and committed to paying her at least $75,000 to do so. Details were handled by the university’s foundation, so when watchdog groups asked to see Palin’s contract, the university made a touchy situation worse by denying that they had any paperwork about Palin’s appearance. CSU students found shredded documents—including pages of Palin’s contract—in a school dumpster, and brought them to Senator Yee. The state’s Attorney General announced a probe. A judge later found the university in violation of California’s Public Records laws.

After Shred-a-thon, CSU Stanislaus Admits It Has Palin Speech Documents (by Lance Williams, California Watch)

Leland Yee: The College Crusader (Los Angeles Times editorial)

Sonoma State Univ. Foundation Betrays Its Mission (California Faculty Association) (pdf)

CSU, Foundations Mixing Public, Private Funds (by Nanette Asimov, San Francisco Chronicle)

A Lack of Transparency at the University

While behind-the-scenes money flowing from foundations to the 23 CSU schools has been an ongoing issue, a report by the state Auditor in 2007 said it was only part of a larger problem—a lack of transparency at the university.

The university “needs to strengthen its oversight and establish stricter policies for compensating current and former employees,” State Auditor Elaine Howle concluded in her report. She cited a deal brokered by the chancellor that paid a former CSU management employee $102,000 over seven years while the former employee worked fulltime in Sacramento.

Some executives and campus presidents were reimbursed thousands of dollars to pay closing costs on homes. A San Diego campus foundation paid new head basketball Coach Steve Fisher’s $6,000 tax liability connected to his move to California. He previously coached at the University of Michigan.

The audit said that the CSU trustees and the public were often not given a full accounting of these types of “transition” fees.

While foundations provided some of the money, the audit found payments also came from the general fund and special accounts.

Board Chair Roberta Achtenberg acknowledged that the audit was “fair and balanced,” but was “satisfied that our executives acted within their proper zone of discretion.”

Chancellor Charles Reed admitted that “we could improve our policy and procedures” but denied that anyone received preferential treatment.

Anthony Portantino, Democratic chairman of the Assembly Committee on Higher Education disagreed. “It's a misuse of the public trust . . . exorbitant executive compensation practices without the oversight. Left on their own, they're showing a capacity to not do the right thing.”

John Travis, political action chairman of the California Faculty Association, said the audit reveals decisions “that smack of mismanagement, and in some cases, a lack of competence.”

Democratic Lt. Gov. John Garamendi, an ex-officio member of the board (and now a congressman), said the findings “confirm what we already knew—that CSU compensation policies are in need of thorough review and reform.”

State Auditor Urges Tighter Controls for CSU System Spending (by Jim Doyle, San Francisco Chronicle)

California State University: It Needs to Strengthen Its Oversight and Establish Stricter Policies for Compensating Current and Former Employees (California State Auditor) (pdf)

California state Senator (and former state Assemblyman) Leland Yee has long been the loudest voice calling for reform of many aspects of California’s educational system. Now close to the end of his tenure due to term limits, he is running for Mayor of San Francisco. During Yee’s time in California’s capitol, he has called for the following reforms relating to CSU:

·     Yee sponsored a bill in 2006 that become law, protecting the free speech on campus of students from disciplinary action by administrators.

·     In 2007, Yee sponsored the Higher Education Governance Accountability Act, now part of state law, that declared all CSU Board of Trustee discussions of executive salaries public

·     In 2009, Yee pushed through a bill to freeze executive salaries at CSU and UC. After being approved by the state congress, it was vetoed by the governor.

·     SB 8, or the Richard McKee Transparency Act, is Yee’s third attempt to extend the state’s public record laws to cover foundations and auxiliary groups that raise funds for the state’s colleges and universities. Previous bills were vetoed by the governor after being approved by the State Senate and Assembly.

Higher Education Legislation (Senator Leland Yee website)

Are Executives of the California State University System Paid Too Much?

In 2007, trustees of the California State University System were loudly criticized when they approved executive pay increases of between 9 and 18%. The controversy reignited when student fees were raised in 2009, and again in July 2011, when—on the same day that California State University Trustees raised tuition by 10% or more for the second time in one year—the trustees decided to raise the salary of the incoming president of San Diego State University by $100,000.

No. Pay must remain competitive to keep top executives.

Chancellor Charles Reed appeared before a California Senate hearing in 2007 to defend the raised executive salaries and compensation at CSU. “If you have a really outstanding leader on campus, then good things will happen,” he said. “And when you don’t, it doesn’t work well.”

On its website, CSU states that to fulfill “its mission to serve California’s students” it is “working to keep the CSU competitive in the national marketplace for faculty, staff, and administrators.”

In 2007 and in 2011, CSU executives and spokespersons pointed to studies by Mercer Human Resource Consulting which averaged salaries and other compensation to executives at 15 public and five private universities across the country. According to Mercer’s findings, CSU executive pay lagged behind that of comparable universities by as much as 46% in 2006 and 52% in 2010, and the large raises simply brought salaries into a competitive range.

“The Mercer Report that we conducted showed that our presidential salary compensation was out of whack 26 to 50 percent, depending on how you want to look at the numbers,” said CSU Trustee Bob Linscheid in 2011. “Some may want to reject the notion, but I don’t.”

CSU Trustee Defends Pay Raise Vote (KRCRTV.com)

CSU, UC Exec Pay Defended (by Judy Lin, Sacramento Bee)

Executive Compensation (CSU website) (pdf)

The California State University 2010 Presidents’ Compensation Study (by Stephen S. Pollack, Xander Marin-Stein and Tom Langle, Mercer) (pdf)

Yes, the executives are paid too much during times that call for austerity

Governor Jerry Brown said publicly that he believed that salary studies like Mercers’ were rigged. “They create a false paradigm that ensures that college presidents are always ‘underpaid’.”

Brown questioned the university’s policy of hiring from outside as well, asking “Where is the succession planning?” Both academic and administrative talent at the university might have been slighted. “I am confident there are any number of individuals who could lead San Diego State who currently work there, and who would take it for a lot less than $400,000.”

“Why has the tuition-wage spiral only driven up the pay of presidents and high-level administrators and not the salaries of faculty?” asks Life in the CSU. The blog cites data from the California Faculty Association which shows that “faculty salaries are likewise lagging behind.”

Why is this not addressed? According to the blog, “We could fire every administrator in the system and still not deal with the $650,000,000 cut thrown at us by the legislature. That is how administrator salaries rise incrementally. No single increase will break the system.” A 25% increase in faculty salaries, however, “would break the bank.”

The recession is not to blame for the cuts in budget, the rise in tuition, or the extravagant salaries, said Professor Dennis Loo of CSU Pomona. “This recession and this crisis in education are the logical outcome of policies that privilege those with a lot against those with much less.” He accuses CSU’s chancellor and the trustees of trying to run California’s higher education system “like a for-profit business.” On his blog and in a speech given at a demonstration, Loo asks which vision of the future will prevail. “Is it going to be the fat cats and their dreams of $$$ or is it going to be faculty and students, who are the university?”

Momentum Builds to Limit CSU Salaries (by Pat Flynn, San Diego Union-Tribune)

How the Rich Become Richer in Academia (Life in the CSU)

The Battle over Higher Education in California (by Dennis Loo, Open Salon)

Charles Reed, 1998-2012

Barry Munitz, 1991-1998

Ellis E. McCune, 1990-1991 (acting)

W. Ann Reynolds, 1982-1990. Reynolds resigned under a cloud after eight years as chancellor, when the trustees questioned large pay raises given to state university presidents and herself.

Glenn S. Dumke, 1962-1982. Dumke had a profound influence on the California State University system through its first 20 years. He shaped the academic and admission standards and governance structure, set up off-campus centers of education, and in 1978 created an aggressive affirmative action program to boost enrollment of minority and women students.

Buell Gallagher, 1961-1962. Gallagher served only eight months in the position before abruptly resigning.