Gov. Arnold Schwarzenegger and the state Legislature passed the new state budget last week and hit the California State University system hard by cutting approximately $163.9 million in funds for the CSU through the 2009-10 fiscal year.

The cuts include a system wide $97.6 million cut for the rest of the 2008-09 fiscal year, an additional $66.3 million system wide cut for 2009-10 fiscal year and an expected system wide 10 percent increase in student fees for the 2009-10 fiscal year and beyond.

President Alexander Gonzalez said the university has already expected these cuts and will be able to financially “tread water” next year. He doesn’t know what these budget cuts will mean for the 2010-11 academic year and beyond.

To tread water, Gonzalez said he will not be hiring staff for non-essential positions, docking non-essential travel and “looking at ways of doing things smarter.”

Included in these cuts is a system-wide increase in student fees. According to the state budget, it “reflects an increase in fee revenue of $130.4 million associated with fee increases of 10 percent for undergraduates, graduates and teacher credential candidates.”

Gonzalez said that tuition hikes are “almost a forgone conclusion” with fee increases of approximately $350 occurring as soon as the fall 2009 semester. He mentioned that other fees like parking permits would not be increased.

According to the California State University Chancellor’s Office, the system-wide reductions place the CSU system $283 million below its expected operational needs for the next two years.

“While we recognize the severity of the state’s financial crisis,” CSU Chancellor Charles Reed said in a press release, “the budget does not provide the resources the system needs to meet the needs of our students and fund our operations. This will impact our ability to maintain quality services for our 450,000 current students, and we have already been forced to reduce the incoming student enrollment levels for this fall.”

Spokeswoman for the Chancellor’s Office Teresa Ruiz said that as a result of these cuts, the CSU has been forced to reduce enrollment levels by 10,000 students this upcoming fall to align with the funding provided by the state.

“These fund reductions will result in decreased access for students, fewer course sections for students and a scaling back of other student services,” Ruiz said.

She added that this is the second year in a row that the CSU system has received no funding from the state for growing operational costs.

Associated Students Inc. Executive Vice President Roberto Torres said students will feel the impact of the state budget.

“We’re facing a big storm,” Torres said. “The economy will not be getting better any time soon.”

Most, if not all, students will feel the budget cuts through limited class options and increased tuition fees, Torres said.

“A large number of students are state workers getting pink slips. If they are paying for school, they might not be able to pay,” he said.

He added that many of these students will have to take out additional loan money or go to school part-time, postponing their graduation to continue their education.

Faculty Senate Chair Bruce Bikle said that even though the budget has been signed, there are numerous catches to the deal.

The state budget depends on $5.8 billion contained in ballot measures, including one asking if the state can borrow $5 billion against future state lottery revenue, appearing on the May 19 special election ballot.

Without voter approval of these ballot measures, the budget will not become fully funded.

Bikle also said that the legislature is hoping the federal stimulus package will fill some of the gaps in the budget, including money directed at higher education.

“It’s like saying that I’m going to pay you four dollars when I originally paid you five,” Bikle said. “But don’t worry, because Obama will probably put in two dollars making your pay six.”

Gonzalez said that he didn’t think the university will receive direct funds from the federal stimulus package which would impact projects including the refurbishment of Del Norte Hall.

Another effect Bikle mentioned was a possible freeze to already scheduled faculty pay raises.

Gonzalez said that pay raises will not be implemented because of labor contracts with the Chancellor’s Office.

Bikle doesn’t expect the budget to affect students any more this year. Funds for the current academic year have already been planned and allocated.

He expects cuts to affect services like purchasing and repairing equipment for faculty.

“God knows I don’t want my computer to break down this semester,” Bikle said.

He remains hopeful that the university will weather the budget situation.

“I’m not saying there’s a hole in the bottom of the boat,” Bikle said. “But it’s leaking.”

Junior international business major Lucy Renteria said she is not happy about the imminent tuition increases, but thinks there is nothing she can do about it.

“What is the point of complaining,” Renteria said. “Nothing is going to change, I don’t even look into it because it won’t change.”

Sophomore anthropology major Stephanie Solorio said she is not happy about fee increases, but understands the circumstances.

“It sucks, but it could be worse,” Renteria said. “It’s a lose-lose situation.”

Renteria also placed blame on the Legislature for the budget issues and swelling tuition costs.

“Legislatures don’t do their jobs,” Reteria said. “We’re just stuck with them though. Maybe they’ll legalize pot, so we can all get high and not worry about it.”

Michael Mette can be reached at [email protected].