Bookmark and Share
Overview:

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.

more
History:

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)

more
What it Does:

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)

more
Where Does the Money Go:

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)

more
Controversies:

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)

more
Suggested Reforms:

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)

more
Debate:

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)

more
Former Directors:

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.

more
Leave a comment
Founded: 1857
Annual Budget: $7.78 billion (FY 2012-2013)
Employees: 41,454
Official Website: http://calstate.edu/
California State University
White, Timothy
Chancellor

There are no shortages of challenges for Timothy P. White, selected in October 2012 as the new chancellor of the 23-campus California State University (CSU). He succeeds Charles B. Reed, who retired after 14 years at the helm.

The 427,000-student CSU system has undergone steep budget cuts over the past three years and faces another $250 million whack in mid-school year if voters reject Governor Jerry Brown’s Proposition 30 on the November 6 ballot. White was selected as chancellor by the CSU board of trustees and is expected to assume his new duties at the end of December.

A native of Buenos Aires, Argentina, White became a naturalized U.S. citizen after first immigrating with his family, at the age of 10, to Canada. He was the first in his family to earn a college degree and attended all three systems of California higher education. White speaks often of his immigrant experience.

“All I wanted to do was blend in with the other kids on our block—to play football and speak without an accent,” White said at the British Council’s “Going Global” conference in London last August. “I worked hard to learn to do both.  But, in retrospect, somewhere along the way I shook off more of my native culture than I would have liked. Yes, I remember my father’s tales of life in Argentina, but I don’t ‘own’ the traditions and ethos.  I don’t want that to be the experience of our students. If they come here to learn, they should also retain their own unique backgrounds and identities. They should not feel that they must assimilate to be accepted.”

White graduated from Pleasant Hill High School in Pleasant Hill, California, in 1966. He attended nearby Diablo Valley Community College for two years before transferring to California State University, Fresno, where he received a bachelor of arts degree in 1970. Two years later, he picked up a master of science degree at California State University, Hayward, and added a Ph.D. from the University of California, Berkeley in 1977.

During the latter part of his Ph.D. program, White became involved with the University of Michigan, began his academic career there and stayed for 13 years. He was a post-doctoral scholar and research associate in the Department of Physiology, School of Medicine, at UofM from 1976-78. White was an assistant professor in the Department of Kinesiology from 1978-82, an associate professor from 1982-89 and a professor from 1989-91. He was department chairman from 1985-91.

In addition to his teaching activities, White was an associate research scientist at the Institute of Gerontology from 1986-90 and a research scientist from 1990-91.

White returned to California in 1991 as a professor in the Department of Human Biodynamics at UC Berkeley, becoming its chairman the next year. He left the school in 1996 to become professor in the Department of Exercise and Sports Science and dean of the College of Health and Human Sciences at Oregon State University in Corvallis. From 2000-04, he was alternately provost, executive vice president and interim president of the university.

White left Oregon in 2004 after a State Board of Higher Education rule on interim assignments excluded him from consideration for “permanent” appointment as university president. He was hired as president by the University of Idaho, Moscow, where he was also a professor of biological sciences in the College of Science.

California beckoned once again, and in September 2008 White accepted the chancellorship at the University of California, Riverside, where he also was professor of biology and biomedical sciences, positions he held until his most recent appointment.

White appeared on the CBS reality television show “Undercover Boss” in May  2011―masquerading as a track coach, a chemistry professor, a campus tour guide and a science library staff member―after donning a make mustache, false teeth and an earring. The veteran educator earned a “D” grade from the Collared Sheep for his appearance because, “He was fairly spot on when identifying issues, but dropped the ball when it came to resolving them. He missed opportunities in 3 of the 4 jobs―not quite a passing grade, if you ask us.”

White and his wife Karen have four children, Logan, Randy, Tim and Alex.

–Ken Broder

 

To Learn More:

UC Riverside Head to Become CSU Chancellor (by Terence Chea, Associated Press)

Timothy White to Leave UC Riverside to be Chancellor of 23-Campus California State University System (by Kris Lovekin, UCR Today)

Timothy P. White Named UC Riverside Chancellor (University of California, Riverside)

Curriculum Vitae (pdf)

more
Reed, Charles
Former Chancellor

Charles B. Reed, appointed chancellor in 1998, announced his retirement in May 2012, effective upon selection of a successor. The board of trustees picked Timothy P. White, chancellor of the University of California, Riverside, in October to replace him by the end of the year.

Reed is from the tiny coal mining town of Waynesburg, Pennsylvania. The oldest of eight children, he attended George Washington University on a football scholarship. Reed had played quarterback and linebacker in high school, but switched to halfback and cornerback in college. He was elected to the university’s Football Hall of Fame in 1990.

Reed earned a bachelor of science degree in Health and Physical Education in 1963 and an M.A. in secondary education, both at George Washington, before become an assistant professor in teacher education there in 1964. He was a tenured associate professor and director of teacher education at the school from 1968-70, picking up an Ed.D. in teacher education in his final year.

Before leaving the university, he served for a year as director of the National Project for the American Association of Colleges and Teacher Education.

Reed left academia for public service and from 1971 through 1979 was director of the Office of Planning and Budgeting of the Commissioner’s Office of Florida’s Department of Education.

Reed’s next move was into politics. From 1979-1985, he was Chief of Staff to Democratic Florida Governor Bob Graham. He also lectured at Carnegie Mellon University’s Institute on Higher Education during this period.

Reed returned to academia in 1985 when he was appointed chancellor of the State University System of Florida, a position he held for 13 years before becoming chancellor of California State University.

Over the years, Reed has served on several boards, such as the Council on Foreign Relations, the Florida Council on Defense Industry Conversion, the Martin Luther King Institute on Non-Violence and the Corporate Board of Directors of Florida Progress Corporation.

He has also been a member of educational commissions and councils on both the state and national level, including the President’s Roundtable National Board for Professional Teaching Standards, The College Board and the National Center for Educational Accountability.

 

Official Biography (California State University)

Cal State Chancellor Strives to Promote Quality and Diversity in the Nation's Largest Four-Year College System (by Kathy Witkowsky, National Center for Public Policy and Higher Education)  

more
Bookmark and Share
Overview:

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.

more
History:

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)

more
What it Does:

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)

more
Where Does the Money Go:

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)

more
Controversies:

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)

more
Suggested Reforms:

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)

more
Debate:

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)

more
Former Directors:

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.

more
Leave a comment
Founded: 1857
Annual Budget: $7.78 billion (FY 2012-2013)
Employees: 41,454
Official Website: http://calstate.edu/
California State University
White, Timothy
Chancellor

There are no shortages of challenges for Timothy P. White, selected in October 2012 as the new chancellor of the 23-campus California State University (CSU). He succeeds Charles B. Reed, who retired after 14 years at the helm.

The 427,000-student CSU system has undergone steep budget cuts over the past three years and faces another $250 million whack in mid-school year if voters reject Governor Jerry Brown’s Proposition 30 on the November 6 ballot. White was selected as chancellor by the CSU board of trustees and is expected to assume his new duties at the end of December.

A native of Buenos Aires, Argentina, White became a naturalized U.S. citizen after first immigrating with his family, at the age of 10, to Canada. He was the first in his family to earn a college degree and attended all three systems of California higher education. White speaks often of his immigrant experience.

“All I wanted to do was blend in with the other kids on our block—to play football and speak without an accent,” White said at the British Council’s “Going Global” conference in London last August. “I worked hard to learn to do both.  But, in retrospect, somewhere along the way I shook off more of my native culture than I would have liked. Yes, I remember my father’s tales of life in Argentina, but I don’t ‘own’ the traditions and ethos.  I don’t want that to be the experience of our students. If they come here to learn, they should also retain their own unique backgrounds and identities. They should not feel that they must assimilate to be accepted.”

White graduated from Pleasant Hill High School in Pleasant Hill, California, in 1966. He attended nearby Diablo Valley Community College for two years before transferring to California State University, Fresno, where he received a bachelor of arts degree in 1970. Two years later, he picked up a master of science degree at California State University, Hayward, and added a Ph.D. from the University of California, Berkeley in 1977.

During the latter part of his Ph.D. program, White became involved with the University of Michigan, began his academic career there and stayed for 13 years. He was a post-doctoral scholar and research associate in the Department of Physiology, School of Medicine, at UofM from 1976-78. White was an assistant professor in the Department of Kinesiology from 1978-82, an associate professor from 1982-89 and a professor from 1989-91. He was department chairman from 1985-91.

In addition to his teaching activities, White was an associate research scientist at the Institute of Gerontology from 1986-90 and a research scientist from 1990-91.

White returned to California in 1991 as a professor in the Department of Human Biodynamics at UC Berkeley, becoming its chairman the next year. He left the school in 1996 to become professor in the Department of Exercise and Sports Science and dean of the College of Health and Human Sciences at Oregon State University in Corvallis. From 2000-04, he was alternately provost, executive vice president and interim president of the university.

White left Oregon in 2004 after a State Board of Higher Education rule on interim assignments excluded him from consideration for “permanent” appointment as university president. He was hired as president by the University of Idaho, Moscow, where he was also a professor of biological sciences in the College of Science.

California beckoned once again, and in September 2008 White accepted the chancellorship at the University of California, Riverside, where he also was professor of biology and biomedical sciences, positions he held until his most recent appointment.

White appeared on the CBS reality television show “Undercover Boss” in May  2011―masquerading as a track coach, a chemistry professor, a campus tour guide and a science library staff member―after donning a make mustache, false teeth and an earring. The veteran educator earned a “D” grade from the Collared Sheep for his appearance because, “He was fairly spot on when identifying issues, but dropped the ball when it came to resolving them. He missed opportunities in 3 of the 4 jobs―not quite a passing grade, if you ask us.”

White and his wife Karen have four children, Logan, Randy, Tim and Alex.

–Ken Broder

 

To Learn More:

UC Riverside Head to Become CSU Chancellor (by Terence Chea, Associated Press)

Timothy White to Leave UC Riverside to be Chancellor of 23-Campus California State University System (by Kris Lovekin, UCR Today)

Timothy P. White Named UC Riverside Chancellor (University of California, Riverside)

Curriculum Vitae (pdf)

more
Reed, Charles
Former Chancellor

Charles B. Reed, appointed chancellor in 1998, announced his retirement in May 2012, effective upon selection of a successor. The board of trustees picked Timothy P. White, chancellor of the University of California, Riverside, in October to replace him by the end of the year.

Reed is from the tiny coal mining town of Waynesburg, Pennsylvania. The oldest of eight children, he attended George Washington University on a football scholarship. Reed had played quarterback and linebacker in high school, but switched to halfback and cornerback in college. He was elected to the university’s Football Hall of Fame in 1990.

Reed earned a bachelor of science degree in Health and Physical Education in 1963 and an M.A. in secondary education, both at George Washington, before become an assistant professor in teacher education there in 1964. He was a tenured associate professor and director of teacher education at the school from 1968-70, picking up an Ed.D. in teacher education in his final year.

Before leaving the university, he served for a year as director of the National Project for the American Association of Colleges and Teacher Education.

Reed left academia for public service and from 1971 through 1979 was director of the Office of Planning and Budgeting of the Commissioner’s Office of Florida’s Department of Education.

Reed’s next move was into politics. From 1979-1985, he was Chief of Staff to Democratic Florida Governor Bob Graham. He also lectured at Carnegie Mellon University’s Institute on Higher Education during this period.

Reed returned to academia in 1985 when he was appointed chancellor of the State University System of Florida, a position he held for 13 years before becoming chancellor of California State University.

Over the years, Reed has served on several boards, such as the Council on Foreign Relations, the Florida Council on Defense Industry Conversion, the Martin Luther King Institute on Non-Violence and the Corporate Board of Directors of Florida Progress Corporation.

He has also been a member of educational commissions and councils on both the state and national level, including the President’s Roundtable National Board for Professional Teaching Standards, The College Board and the National Center for Educational Accountability.

 

Official Biography (California State University)

Cal State Chancellor Strives to Promote Quality and Diversity in the Nation's Largest Four-Year College System (by Kathy Witkowsky, National Center for Public Policy and Higher Education)  

more