FOR IMMEDIATE RELEASEFrom: Martinez, Eduardo [Eduardo.Martinez@asm.ca.gov]
Sent: Friday, October 12, 2007 2:07 PM
Subject: Press Release -- Governor Vetoes Legislation to Bring Efficiency and Accountability to the California State University
FOR IMMEDIATE RELEASE CONTACT: Eduardo Martinez
October 12, 2007 916-319-2044
Governor Vetoes Legislation to Bring Fiscal Responsibility and Accountability to the California State University
Veto sanctions the Trustee’s irresponsible actions
Sacramento – Despite growing criticism from students, faculty, and lawmakers over the policies and practices of Board of Trustees at the California State University (CSU), Governor Schwarzenegger today vetoed a key piece of legislation that would have brought CSU in line with how the rest of state government operates.
“As a strong advocate of higher education, I am extremely disappointed with this veto,” said Portantino, the author of Assembly Bill (AB) 1413 and Chair of the Assembly Committee on Higher Education. “The Governor’s action today, coupled with a litany of inappropriate actions by the CSU Board of Trustees over the past few years, has made it much more difficult to fight for limited resources to benefit our students. Recent budget projections suggest the state will be dealing with at least an $8 billion deficit next year, and if history is any lesson, the students will bear the brunt yet again. Meanwhile, the Board of Trustees has committed to a series of pay increases for top executives and campus presidents without regard for the state’s fiscal troubles. The veto of AB 1413 gives a green light to the Trustees to conduct business as usual, continuing to break the public’s trust.”
In the past few years, many press accounts have detailed California State University (CSU) policies and practices related to executive compensation. Investigative reporting revealed previously secret compensation packages that included transition pay, ghost professorships and special benefits that are clearly excessive, especially in light of budget deficits that have plagued California in recent years. These press accounts also prompted Speaker Fabian Nunez and Portantino to request a State Auditor review of CSU’s compensation policies – a review that should be released soon.
Additionally, beginning in January of this year, the CSU Board of Trustees voted an additional 4% pay raise to its executives. And just three weeks ago, at the most recent Board of Trustees meeting, top executives and campus presidents received another across-the-board increase averaging 11.8%, with the CSU claming these raises were needed to retain top quality staff.
“I simply don’t understand how the Board of Trustees can argue that these exorbitant raises are necessary to stay competitive when there are no vacancies in the university system – exactly whom are they trying to replace?” continued Portantino. “These raises were approved by the very same people who claimed there was no other option to nearly doubling student fees over the past five years. My legislation would have put an end to the backroom deal-making, the ghost professorships that are commonplace, and put in place some meaningful participation by those on the Board who are actually accountable to the people: the state’s elected Constitutional officers. AB 1413 enjoyed broad bipartisan support throughout the legislative process, as good government and fiscal responsibility are truly bipartisan values.”
“The Governor’s decision to veto AB 1413 sends a message to the public that he is content with a CSU Administration that operates in secrecy and wastes millions of taxpayer dollars on executive pay while the student experience deteriorates,” said CFA President Lillian Taiz. “Without this bill, CSU Chancellor Charles Reed will be able to continue his destructive practice of padding the pockets of wealthy administrators at the expense of students, faculty, staff and the university as a whole.”
AB 1413, sponsored by the California Faculty Association, contained three major components to reforming the CSU governance structure. Firstly, AB 1413 would have required the Board of Trustees to approve all executive contracts in public session revealing all benefits, not just salary and housing as is now the practice. The bill would also eliminate the practice of “ghost professorships” whereby CSU executives are paid for classes that are never taught. Lastly, to add some level of accountability, AB 1413 would have allowed ex-officio members of the board (such as the Speaker of the Assembly and the Lieutenant Governor) to appoint designees to attend the meetings in their absence, as their constitutional duties often require them to attend to other state business.
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