Pay raises during bad budget years may no longer be offered to California State University and University of California executives if Gov. Arnold Schwarzenegger approves Senate Bill 86.

SB 86, which was passed earlier this month by the state Assembly and Senate, is a larger bill that encompasses a previously defeated piece of legislation – Senate Bill 217.

SB 217 was written by Sen. Leland Yee, D-San Francisco/San Mateo.

According to SB 86, no executive within the CSU or UC systems will be able to receive raises if the general fund is the same or less than the previous year.

“Last time I checked, this was a public institution, not AIG.” Keigwin said, comparing the CSU system to the insurance corporation that received bailout funds from the United States Federal Reserve in 2008, then announced in March 2009 that it had spent $165 million in executive bonuses.

“SB 86 will ensure that top executives are not living high on the hog while the students and workers are unfairly suffering,” Yee said in an article released on Sept. 8 by the California Chronicle after the bills were passed.

Erik Fallis of the CSU chancellor’s office said that there have been no salary increases this year and that the chancellor, presidents of the universities and general counsel have not received a pay raise in the last two years.

In January, the CSU implemented salary freezes on all campus vice presidents, presidents and the CSU vice-chancellor and chancellor for the 2009-10 school year.

Kevin Wehr, professor of sociology and president of the local chapter of the California Faculty Association, said that CSU did the right thing in implementing salary freezes; however, the CSU only did so voluntarily after giving big raises to administrators.

“They want to be able to award the administration with lavish salaries even if the budget is poor and even if the administration is mismanaging the university, and they are,” Wehr said.

The State Hornet has not been able to find evidence of monetary raises for these executives at this time.

In November 2008, a survey was conducted by the Chronicle of Higher Education. The survey concluded that the median salary for presidents of public four-year colleges was $427,000 annually. According to documentation in SB 86, all but one UC and CSU president have salaries that are less than the median salary.

Sac State President Alexander Gonzalez currently receives a $295,000 salary, along with $60,000 to cover his housing. The president could not be reached for comment regarding the issue.

Also, CSU Chancellor Charles B. Reed receives $421,500 as his annual salary.

“The UC and CSU administration continuously violate the public trust by catering to the university’s elite rather than serving the students, workers and taxpayers they are appointed to represent. The public deserves better,” Yee said in a press release.

Fallis said while CSU is concerned about monetary compensation for its executives, the systems primary concern is the functionality of the CSU system.

“Restricting when the university is able to adjust certain employee salaries could increase personnel turnover as employees leave the CSU for higher-paying positions,” Fallis said.

According to the California State Senate’s online listing of lobbyist employers, CSU has paid these lobbyists almost $90,000 thus far in the 2009-10 school year. The CSU chancellor’s office did not respond to the Hornet when asked where the funds to pay the lobbyists came from.

The governor has until Oct. 15 to sign or veto the bill. If signed, the bill will go into effect beginning Jan. 1, 2010.

Brittany Bottini can be reached at [email protected].