THE EUREKA EFFECT!
CSU’s “Outside Accounts” Hold Billions of Dollars
One day after CSU executives were grilled by state legislators questioning, the Chancellor Office’s budgeting process and its lack of transparency and accountability, the CSU finally responded with some numbers. And they are staggering.
Read the CSU response here.
Don’t have time for six pages of management gobbledygook?
Here are a couple of highlights:
Ø As of June 30, 2017, one outside account had a balance of $3.7 billion, of which $1.9 million was unrestricted funds.
Ø The CSU Parking fund has $191.5 million (dedicated to just Parking operations).
Ø What does this mean?
The CSU has misled us – and the public - year after year after year. They had the money they needed to get through furloughs, yet they took from frontline staff who work directly with students to help them succeed.
They have had the money for years for movement through the salary range; they would just rather use it for the hiring of a disproportionately large number of managers who receive a disproportionately large amount of pay.
How did we obtain this new Intel? Because CSUEU members started digging when it was clear management was not going to work with our Bargaining Team toward a decent contract.
Our CSUEU legislative committee successfully obtained the state audit that uncovered so many red flags that warranted a special hearing on August 23. Read Under Pressure, CSU Execs Struggle to Justify Poor Budget Practices.
The audit showed management growth in both head count and salary completely outpacing all other employee groups. It also showed some abuses of MPP positions and MPPs getting raises without any performance evaluation.
While researching, we found another audit that showed a massive outside account that the CSU holds. An outside account just means the Department of Finance doesn't have control over the account. CSUEU approached legislators and demonstrated that the CSU had not done any of what the Finance Department suggested in terms of this outside account. Those legislators sent a letter to the CSU asking very specific questions about the outside account the CSU is holding.
The $3.7 billion account can possibly be used for salary, CSU operations, etc. Even if management balks at using the fund to invest in frontline staff, let’s consider the interest that fund is accruing. We estimate in the neighborhood of $100 million every quarter. The CSU response raises more questions and our Bargaining Team will be following up!
Now is the time to show strength!
We need to be more unified than ever behind our Bargaining Team. Participate in union events and activities. If we are going to get a fair contract from an unfair employer, we all need to stick together and act as a team in our collective interest.
Consider signing up to support our union's PAC. CSUEU doesn't fund political activity from our dues money. We depend on our members donating a couple of dollars a month to continue pursuing these types of political organizing in Sacramento. Political Strength… Bargaining… Worksite Actions… These are the critical components for us to win!
Jacqueline Otis
President CSUEU Chapter 317
Operations Analyst/Specialist
California State University Fullerton
Student Academic Services, P.O. Box 6870, UH-143
Fullerton, CA 92834-6870
(657) 278-2264 / FAX (657) 278-4195