State Budget Proposal Maintains Compact with CSU
Gov. Gavin Newsom's latest budget proposal known as the "May Revise" released May 10 reflects declining state revenues that are heavily dependent on stock market earnings to fund state programs.
The Governor and the Legislature had anticipated a budget shortfall and took action in April to make adjustments - netting the state $17.3 billion, which came from program cuts and funding delays.
One delay tactic included deferring payment of the CSU compact increase of $240 million for a year. The state’s compact, made in 2022, guaranteed 5 percent funding increases each year for five years for both the CSU and UC.
Gov. Newsom has explicitly advised the state university systems to honor their compact commitments (which include staff compensation and raises) this year, which would be backed by the state general fund in 2025.
The May Revise did not show any other immediate impact on the CSU but more details are expected this week.
CSU Raises and Steps
The compact is still in place and we expect to see a 5% general increase on July 1, 2024, as negotiated in our contract(opens in new window).
CSUEU’s Bargaining Team is also focusing on working with the CSU to modernize more than 100 job classifications(opens in new window) so that the Steps system will be an improvement for all employees.
We will implement the new Steps system in 2025. Should the CSU choose to invoke the budget contingency language in our contract based on the 2025/26 budget, then employees would move to the closest (higher) salary step - usually a 2% raise - to their current salary. We would also return to bargaining with the right to strike if needed. At the same time, we will bargain for our new Student Assistants (Bargaining Unit 15) and they will present their opening “sunshine” proposal on May 21.
Campus Hiring Chills, Freezes and Early Exits
The Chancellor’s Office produces a campus allocation budget memo each year. This memo shows what the campus receives from the CSU system.
Some campuses are seeing enrollment challenges, so that could impact what they receive in the allocation memo.
When a campus makes any material decision, the CSU is obligated to notify the union so that we can bargain over the issue, known as “Meet and Confer.”
CSUEU will continue advocating for the CSU to honor its commitments to employees. Working with allies in the State Capitol as well as with CSU and campus leaders, we must come together to resolve the revenue shortfall at the state level.
The Legislature must pass a budget bill by June 15 for the governor’s signature.
CSU staff and students are the engine of California’s economy; we call on the Governor and Legislature to keep campuses operating at the highest possible level.
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At Chico State, we represent more than 500 employees! By becoming a steward or bargaining unit representative you are taking advantage of an opportunity to work for the greater good, to help people thrive and succeed in their careers, and to be the voice for those who have remained silent.
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Our next training is July 13, 2024! Deadline to register is June 14. Please contact our Chief Steward, James Ebben, if you are interested in learning more about becoming a Union representative or would love to attend the training! Together, we are stronger!
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