California State University Chancellor Charles Reed warned that a slowdown in the state economy and the energy crisis could pose a challenge to the system, in a telephone conference last Thursday.

“This is the time of year that major budget decisions are being made,” Reed said.A possible economic slowdown in the state could limit money available for the CSU, Reed said. Although the CSU has some protection, rising power costs next year could also tighten the budget, according to Reed. He hopes that Governor Gray Davis will help ensure security for the CSU in the future.

“We don?t know what that will mean for the university,” Reed said.

Reed also mentioned the ongoing faculty salary negotiations with the Union, which has charged Reed with failing to hire tenured professors.

“We have the largest number of faculty retirements that this system has ever had,” Reed said.

Over 700 faculty members retired this year, according to Reed. This is twice the number the CSU anticipated.

He also disputed the union claim that there has only been a net gain of one tenured professor in the past five years.

“The net increase is about 250 tenure-track faculty members,” Reed said.Reed spoke out in favor of Faculty Merit Increase, a percentage of faculty pay increase that is based on performance evaluations.

“I don?t know of any university or college institutions that don?t have merit pay,” Reed said.

Reed also responded to questions regarding the votes of “no confidence” directed toward him by several faculty senates in the CSU.

“Those resolutions are generated by members in the labor organization within the faculty senates,” Reed said. “Some people are just unhappy people.”

Reed said that faculty members have rarely come to him with their issues.Reed commented on provisions passed in the United States Senate, which limit financial aid to students convicted of drug offenses.

“We?re not going out on any witch hunts,” Reed said.The financial aid applications are self-reporting, he added.