At his annual fall address Thursday, Sacramento State President Alexander Gonzalez said he will move forward with “cautious optimism” while trying to steady the university’s financial situation.

“The deep budget cuts of the past two years have been a nightmare,” Gonzalez told faculty and staff who filled the University Union Ballroom. “They forced us to make difficult decisions, including enrollment cuts, furloughs and campus-level impaction.”

Sac State is required to lower enrollment by about 3,000 students this school year. The university also recently declared impaction beginning in fall 2011 after enrollment officials projected more applicants than the university can accommodate.

Gonzalez, however, said funding for the California State University “appears to have wide support.” Gov. Arnold Schwarzenegger’s January budget proposal includes $365 million for the CSU.

“This includes more than $60 million for enrollment growth,” he said. “And the sooner this budget is signed, the sooner we would be able to let more students in for spring 2011.”

Despite the university’s financial woes, Gonzalez congratulated the campus for its success at softening the blow of the crisis. He said Sac State hit its enrollment target squarely.

“In fact, we ended up the equivalent of only three students above target,” he said.

Gonzalez said if the proposed funding for the CSU is not signed and finalized soon, the campus is preparing to make sure that the least damage is done to the students and faculty.

Some of these preparations include not filling vacant positions, delaying equipment purchases and maintenance and transferring employees to non-state funding when possible.

“The worst-case scenario is happening right now, and we will still persevere,” Gonzalez said.

Throughout his speech, Gonzalez talked about the progress of Destination 2010 and thanked everyone behind the project.

He said because of the physical improvements at Sac State as part of Destination 2010, there will be more students staying on campus throughout the day, “… creating a vibrant campus life that belies the commuter campus perception.”

“In other words,” he said, “students will live here, study here and succeed here like never before.”

He said Sac State’s transformation into a destination campus has provided community support and private funding for the university.

Not everyone was as enthusiastic as Gonzalez about Destination 2010.

Kevin Wehr, president of the Capitol chapter of the California Faculty Association, said Destination 2010 has misplaced priorities, such as the construction of The Well, a multi-use facility, which he said focuses too much on recreation.

“We have a new fitness center, but where are the new classrooms?” Wehr said. “That’s what they need to be spending money on.”

Wehr also criticized Gonzalez for not mentioning the recent 5 percent fee increase that was passed in June by the CSU Board of Trustees, or the furloughs and layoffs that have affected faculty and staff.

“I now have students falling asleep in my morning classes because of these fee increases forcing them to pick up second jobs with late shifts,” he said. “I think he’s really out of touch with student life.”

Stephen Garcia, vice president for administration and business affairs, said otherwise.

“He’s made a vision to improve student life on campus, and he’s met that vision very well,” Garcia said.

Gonzalez said the Legislature will ultimately decide how much students will have to pay for higher education.

Gonzalez and Wehr encouraged students, who are unhappy with the budget cuts, to inform the Legislature by assembling at the Capitol as soon and as often as possible.

“Nothing is easy about this,” Gonzalez said. “To you students: please bear with us and remain in good spirits about things to come.”

Micah Stevenson can be reached at [email protected]