In its current form, the governor’s budget represents a reduction of about 18 percent from the baseline budget. The CSU has gone on record stating that it will redouble efforts to identify operational efficiencies, but officials emphasize that a cut of this magnitude will have other ramifications. The proposed reduction assumes an extension of the current temporary tax increases that are due to expire at the end of the fiscal year. If they don’t pass, the CSU will likely face additional reductions. The key will be how the legislature tweaks this proposed budget and whether the CSU includes layoffs, furloughs or program reductions in its package of CSU budget solutions. Any impacts on represented employees—and those are unknown at this early point in the process—will largely be addressed through collective bargaining. The governor’s budget specifies that the administration will work with the Office of the Chancellor and the trustees as well as stakeholders (including representatives of students and employees) to determine the specific mix of measures that can best accomplish the cuts. This language portends a greater voice than usual for employees in decisions about where and how the cuts should be made. The governor and legislature must be reminded constantly that the CSU is the economic engine of California and that recovery is dependent upon a well-funded, functional higher education system. Our focus over the coming months will be on limiting the budget fallout to the CSU in the best interests of our members, of the public higher education community and of California as a whole.