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Raise taxes to fund state universities, officials say
SACRAMENTO — Saying that proposed budget cuts threaten California's economic future, leaders of the state's public college and university systems urged lawmakers Monday to raise taxes rather than close the doors of higher education on its future work force.
"By 2025, California will be short 3 million prepared workers to be economically viable," California State University Chancellor Charles Reed said. "What's going to happen is that those jobs will go somewhere else."
Reed said the 23-campus CSU system is already accommodating 10,000 more students than it is budgeted for and took action earlier this year that will shut out 10,000 qualified freshmen from entering next year. That action was taken after Gov. Arnold Schwarzenegger proposed cutting $386 million from a previously agreed-upon funding formula.
"I couldn't look students in the face and say, We're going to admit you but we can't give you the classes you need,'" Reed said.
Reed and other CSU officials were in Sacramento for the university's annual lobbying day. He was joined at a news conference by Community College Chancellor Diane Woodruff and University of California Provost Rory Hume.
With the state facing what he called "the mother of all deficits," Reed said the only workable option for balancing the budget is for Schwarzenegger and lawmakers to use a mix of spending cuts and tax increases.
In May, the governing boards of the UC and CSU systems are expected to enact student fee increases of 7 percent to 10 percent for fall.
Those fee increases, which in the case of CSU are expected to amount to an additional $276 per year per student, will not come close to making up for the cutbacks that Schwarzenegger proposes, Reed said.
"It's the equivalent of $73 million," he said. "It sure doesn't fill up the hole."
The state's community colleges do not have the option of limiting enrollment, Woodruff said, but those who enroll in the fall can expect difficulty and delays in finding space in the classes they need to graduate or to transfer to a four-year college.
If community colleges are forced to absorb the $500 million in proposed budget cuts, Woodruff said, 50,000 students will not be able to get into high-demand classes.
"If you want to turn this economy around, right now is the time to invest in higher education," she said. "Our businesses are pleading with us to deliver that educated work force."
Woodruff noted that demand for community colleges goes up during economic downturns as laid-off workers "turn to our colleges to upgrade their skills."
Next year's enrollment cutbacks at CSU come at a time when there is a demographic bubble of teenagers about to graduate from high school. The number of births in the United States in 1990 was the highest in any year since the post-war baby boom, and those young people are turning 18 this year.
In California, while total enrollment in K-12 schools declined slightly in the past two years, high school enrollment is at an all-time high.
Reed said higher education officials are not advocating for larger cutbacks in healthcare or services for children and the elderly. Rather, he said, lawmakers should consider a proposal by Legislative Analyst Elizabeth Hill to eliminate about $2 billion in tax credits and also levy sales taxes on a variety of services.
"California as a state has got to increase its revenue," he said.
Reed said that in his view, there is one area for potential savings in state spending: prisons. The state spends about $40,000 a year to keep an inmate in prison. "That is an expenditure; it will never come back," he said. "We are an investment."
CSU will graduate about 90,000 students this year, he said, and studies have shown that for every $1 the state spends to educate them, it receives $4.40 in economic benefit.




Posted by luv2sail on April 29, 2008 at 6:32 a.m. (Suggest removal)
Another consideration may also be to set stringent grade point averages to students attending schools. Currently it seems that college is little more than an extension of high school for some. Not wanting to enter the workplace, they continue to go to school. There is no real direction for some.
Another thought may be starting an apprentice ship program, teaching some skills in high school and preparing those that have no real interest in college with a skill that they could, at the very least, make a living.
I'm certain that any one who pays property taxes is well aware of the amount of money that goes to the school system along with the protion of their state taxes. I fail to understand why a college education is an inalieanable right that the tax payers need to shoulder. How many more Poli-Sci grads do we need?
Posted by jw1000 on April 29, 2008 at 6:32 a.m. (Suggest removal)
Raising taxes on average people during a recession is a very bad idea. As a right wing nutjob on this issue let me take the opportunity to recommend kicking illegals out of our universitys and community colleges so that costs can be lowered.
Posted by luv2sail on April 29, 2008 at 6:50 a.m. (Suggest removal)
Well jw, I may have to recant an earlier comment I left for you.
Posted by kingkong on April 29, 2008 at 7:10 a.m. (Suggest removal)
Why doesn't Chancellor Charles Reed and the rest of the CSU Staff volunteer to take a pay and benefit cut ? If he is so concerned about the future and the students, that would be an easy way to solve the problem.
Posted by T_T on April 29, 2008 at 8:40 a.m. (Suggest removal)
At least someone finally stated the obvious: to keep a current level of service, we have to raise taxes. I give Chancellor Reed credit for his honesty.
Posted by Ventura22 on April 29, 2008 at 8:45 a.m. (Suggest removal)
NO! Voters take note.
Posted by Face on April 29, 2008 at 9:14 a.m. (Suggest removal)
Every household that makes over 200K should have their state income tax doubled. Every homeowner should have to pay property taxes based on last year's value of their home. All non-essential state programs should be eliminated ie. athletics programs, cultural awareness fairs, diversity parties, state parks should be shut down for the duration. We need more taxes and steep cuts if we are not to sacrifice our children on the alter. All that being said, I propose the following to be enacted immediately: Proof of legal residency before being allowed into public schools, elimination of all public benefits to Non-residents. If Non-residents cannot afford a hospital trip, their consulates should be called to see if their country will pay, if not, they should be transported by ambulance if necessary to their consulate/embassy. Only life sustaining measures should be taken, and they would be transported to their home consulate as per above.
All California State resources should be pulled from the border, lay off half the C.H.P. and only perform emergency roadwork in the interim. My proposals have something everyone should like, and it is fair.
Posted by fbgomerguard on April 29, 2008 at 9:14 a.m. (Suggest removal)
Raise tuition and fees. That might keep out those that aren't that serious about their education. From what I'm observing college is an excuse to leave home and party out from under the nose of parents.
Posted by Face on April 29, 2008 at 9:16 a.m. (Suggest removal)
Oh, and release all non-violent drug offenders from jail and put a moratorium on personal use drug arrests. Install a wood-chipper on Death Row and execute every condemned inmate within 48 hours. Now that is SAVINGS.
Posted by JohnGC on April 29, 2008 at 10:18 a.m. (Suggest removal)
Let's see here... they mismanage the money they now glean from taxpayers, and waste a goodly portion of the funds. This based upon the abysmal "products" they mis-produce (see drop out rates; performance against national and international testing and etc.)
So their response is to request MORE tax dollars. You can fool some of the people all of the time, and clearly these are the ones they are concentrating upon.
Posted by Face on April 29, 2008 at 10:41 a.m. (Suggest removal)
HARD times are coming. Civil unrest will ensue. Declare an Economic State of Emergency and adopt revenue increases with spending cuts.
Posted by shaver_one on April 29, 2008 at 10:56 a.m. (Suggest removal)
What ever happened to 'Trade Schools'?
Back in the day, before the invention of the wheel, we had:
Colleges and Universities -- for those seeking higher education for Professional careers.
City/Junior Colleges -- for those seeking higher education for mid-level, semi-professional careers.
Trade Schools -- for those seeking higher education in the 'trades'.
High Schools had 'shop' classes in metal, electrical, wood, and auto -- for those kids interested in technical careers. These kids would go on to 'Trade Schools', and then on to jobs in those trades. Businesses would have apprenticeship programs for these students, offering them OJT, while still in school.
What happened?
Don't we have enough attorneys, clinical researchers, and professional politicians?
Let us not forget the athlete who goes to college to earn a reputation so he can drop out in his senior year to become a professional member of the NFL, MLB, NBA, etc.
But, then again: "MONEY...it's a hit..."
Posted by Ventura22 on April 29, 2008 at 11:18 a.m. (Suggest removal)
Face, except for laying-off the highway patrolmen, those ideas sound worthy of consideration to me. We need the traffic police to cite speeders and other offenders(illegals with no insurance, repeat offenders, non-registered, unlicensed drivers...) The CHP would play an integral role in this plan and may help generate extra revenue if heavy enforcement was allowed, as well as clear the roads of people who shouldn't be on them anyway.
Posted by jskdn on April 29, 2008 at 1:55 p.m. (Suggest removal)
CSU can start by cutting those who can't pass the high school level reading and math exams. CSU promised that they would stop admitting these students and running remedial programs. The Community Colleges should only offer a limited number of non-completions of courses before student have to pay full tuition costs that out of state students are supposed to pay. When students anticipate that they will pay for slacking, they will do it much less. As it is now a large percentage don't even pay California Community College tuition, by far the lowest in the nation. They get BOG waivers. By the way, look at how many of the classes are "lifestyle" classes and prioritize the availability to those who take real academic and job preparedness classes.
Posted by Face on April 29, 2008 at 3:49 p.m. (Suggest removal)
This might be the time also to legalize marijuana and tax it. It would bring BILLIONS of dollars of revenue into our state coffers. It is the biggest cash crop in the state, why we do not tax it is beyond me.
Posted by Tom_Johnston on April 29, 2008 at 7:33 p.m. (Suggest removal)
I think "shavers" comments re: "Trade Schools" and such is very much right on point.
While the High School/Community College can be an economical pipeline to higher education, its role in turning out the "technocracy" of people needs to be emphasized.
Many VERY "professional" careers can be learned in the basic 2 year curriculum of community colleges. Nursing and other allied Health care professions are a good case in point here.
I'd agree with some, that if those who would aspire to higher levels, such as 4 year University level education, if they cant pass basic education levels of achievement...they just don't belong there. Go back to Continuation School or Community College...it should not be the role of institutions of "higher learning" to do remedial education to make up for slackers from High School who now feel the "pinch".
Sorry "dudes" and "dudettes"...you should have paid more attention in the K-12 system...that's where you should have brought yourselves up to the mark.
Posted by Ventura22 on April 29, 2008 at 9:27 p.m. (Suggest removal)
Higher education institutions should not be offering any sort of remedial programs for those who couldn't make the grade in high school, of all places. What happened to the days of college prep tract classes in high schools? Are they just handing-out admissions to 4-year schools now? Apparently so. What does that do to the credibility of higher education? Hmmm...I know the answer to that one. I remember when students (like myself) actually had to work hard/study hard to even be able to apply to get into any 4-year college. Sad days now. Funny how all this shame in the state college system comes to light amidst budget troubles when they have to justify and account for their expenditures. Looks like they sealed their own fate. The ones that will be cast out/kept out of the system never belonged there in the first place so there is some sort of justice to it all. And the state college system had the ignorant nerve to actually try and demand a tax raise to fund this inept school system. It deserves whatever it gets with budget cuts.
Posted by Face on April 29, 2008 at 11:30 p.m. (Suggest removal)
"Yeah, education sucks, let them all burn!", so sayeth the Moron.
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