CSU Business Conference

1

2014 A Year of Recovery and Opportunities
CSU Business Conference March 12, 2014
2
Overview

• 2014 in Sacramento
• State Fiscal Picture
• Elections and Changes
• Opportunities and Issues
• Budget Advocacy
• Issues
• Elections at Home

3
2014-15 Budget
4

• Despite the recent improvements in our budget
  situation, there remain a number of major risks
  including the remaining budgetary debt and
  hundreds of billions of dollars in longer term
  liabilities That is why wisdom and prudence
  should be the order of the day.
• - Governor Jerry Brown

5
Proposed CA Budget Breakdown
6
Revenues and Expenditure Way Up

• Revenue is up 4.5 billion and expenditures
  proposed over 8 billion
• Largest shares to
• Wall of debt
• Proposition 98 (K-12 and community colleges)
• Medi-Cal and Cal Works
• State Deferred Maintenance

7
Governors Proposal for Higher Ed

• Second year of Governors Plan
• Increase no more reductions
• 142 million increase over last year
• No increase in student tuition fees
• 4th year in a row
• Theme Innovation, efficiency, improvement
• Online courses
• Streamline time to degree
• Improve graduation rates

8
Its Not a Money Problem.Its About Priorities

• General Fund revenues way up
• Proposition 30 revenues for all education
• Permanent budget increases abound
• Double digit in some cases
• Real question
• Is higher education really a priority?

9
2014 Elections Change and Stability?
10
For the Peoples Consideration

• This Election
• All state officers
• New class of freshman legislators
• Propositions, propositions, propositions
• Competing interests will affect elections,
  priorities

11
Governors Last Ride

• Governor will run for 4th and final term
• Other candidates
• Tim Donnelly
• Neel Kashkari

12
How Does the Governor Fare?

• Governor Brown
• 60 favorable rating
• 7 of voters aware of race
• Secretary of State Campaign shows 15 million in
  hand
• PPIC Report Californians and their Government
  January 2014

13
Neel Kashkari Vs. Tim Donnelly
14
PPIC Statewide Survey January 2014Satisfaction
with Governor Candidates
15
Statewide Races Contested Races

• Controller
• John Perez v. Betty Yee v. Ashley Swearengin
• Secretary of State
• Alex Padilla v. Leland Yee v. Dan Schnur

16
Statewide Races Downticket Seats

• Superintendent of Public Instruction
• Tom Torlakson
• Insurance Commissioner
• Dave Jones
• Lt. Governor
• Gavin Newsom
• Ron Nehring

17
Statewide Races Downticket Races

• State Treasurer
• John Chiang (Current State Controller)
• Attorney General
• Kamala Harris
• Phil Wyman?
• Orly Taitz?

18
Current Legislative Make-up

• Democrats control both houses
• Super majority achieved last election and
  keeping it drives everyone

19
2013-14 Assembly80 members Total - 2/3 Threshold
is 54
20
Assembly Leadership Departing

• Speaker John Perez
• Republican Leader Connie Conway
• Budget Chair Nancy Skinner

21
New SpeakerUnlike Senate An Actual Election

• Toni Atkins (San Diego)
• Termed out in two years
• Close ally of Speaker Perez
• Freshmen Class Candidates
• Gomez, Rendon, Eggman, Holden
• New Class
• Candidates in 2016?
• Role in selecting new Speaker

22
Republican Leaders Too

• Connie Conway termed out
• Caucus members positioning all year
• Chavez, Melendez, Olsen
• Maienschein, Bigelow, Wilk
• New Republican Caucus Chair
• Scott Wilk Future leader?

23
Freshmen Class Composition

• 42 new Assembly members
• Democrats 32, Republican Members 10
• On top of 30 new members from 2012
• This CLASS can serve 12 YEARS
• Largest Freshmen class since the 19th century

24
Assemblys Composition
25
Assembly Make-up by Class and Party
26
2013-14 Senate40 Members Total 2/3 Threshold
is 27
27
Key Senate Leaders Departing

• Leaders
• President Pro Tempore Darrell Steinberg
• Friends and Allies
• Alex Padilla
• Lou Correa
• Less Than.
• Leland Yee

28
Senate Leadership

• New Pro Tempore has NOT been selected, yet
• Kevin de Leon has been endorsed by Steinberg
• Interim Candidate
• Mark DeSaulnier now to Congress
• Others in the Wings
• Holly Mitchell
• Bob Hertzberg

29
Key Races to WatchThe Fight for Supermajority

• Assembly
• Steve Fox (Palmdale)
• Jeff Gorrell (Camarillo)
• Sharon Quirk-Silva (Fullerton)
• Senate
• Anthony Cannella (Ceres)
• Lou Correa (Santa Ana)
• Andy Vidak (Fresno)
• Open Seat

30
Propositions
The ballot initiative process remains one of the
strengths of Californias system of
government. - LA Daily News
31
Current Potential Ballot Count

• Two qualified for June Ballot
• Public Records Act for local govt
• Veterans bond restructuring
• Four qualified for November Ballot
• Rainy Day Fund from 5 to 10
• Water Bond 50 million for CSU

32
Propositions in Process

• Over 50 in various stages
• 23 initiatives with the Attorney General
• 32 initiatives out for gathering signatures
• Minimum Wage Proposal
• Increase wage to 12 by 2016
• High Quality Teachers Act of 2014
• Termination based on performance not seniority
• Oil severance, tobacco taxes
• Policy and politics

33
Last Year of Session What Will 2014 Bring?
34
2014 Legislative Introduction Deadline
35
Bill Count 2013-14
1st Year 2nd Year Total
Assembly 1585 1343 2928
Senate 955 659 1614
Total 2540 2002 4542
36
Legislative Trends Over Last Decade
Session Assembly Senate Total
2005-2006 3229 2311 5540
2007-2008 3112 2419 5531
2009-2010 3068 2266 5334
2011-2012 2719 2127 4836
2013-2014 2540 2002 4542
37
Issues for Today and Tomorrow

• Bonds
• 11 billion bond or not?
• Education bond in 2014, 2016?
• K-12 Reform Continues
• Common Core, Transitional Kindergarten

38
Election Related Issues

• Prison Overcrowding
• New prison construction v. reforms by 2016
• Pension and health care costs
• Employer and employee share of cost, benefits
• High-Speed Rail
• Legacy issue for governor

39
Higher Education Specific

• Campus Climate
• Sexual assault reporting
• Hate Crimes and overall climate
• Community college bachelors degree
• Nursing or other applied degrees
• Performance measures and accountability
• More defined, directive

40
Campus Climate

• AB 1433 (Gatto) Reporting of Hate and Sexual
  Crimes to Local Jurisdiction
• AB 1549 (Rendon) Requires Sexual Harassment
  Policy be Posted on Internet
• AB 2168 (Campos) Taskforce Investigation on
  Discrimination and Violence
• SB 967 (deLeon) Affirmative Consent as part
  of campus investigation of possible sexual
  assault

41
Financial Aid and Fees

• AB 1976 (Quirk-Silva) Expands the new number of
  Cal Grants offered to 50,000
• AB 2566 (Weber) Extends the Period of Time you
  can Apply for Cal Grant by One Year
• AB 1456 (Jones-Sawyer) Pay it Forward Measure

42
Accountability and Oversight

• AB 1348 (J. Perez) - Postsecondary education
  California Higher Education Authority
• SB 1196 (Liu) - Public higher education state
  goals
• SB 1022 (Huff) - Labor market outcome information

43
Making the Year Count for CSU
44
PPIC Statewide Survey January 2014Key Issues
Facing California
45
PPIC Statewide Survey January 2014Preference for
State Spending
46
More Money, More Competition

• Budget is opportunity and challenge
• More money means more demand for support
• Election year, political allies, local
  communities
• Competition requires proactive effort
• Time to match rhetoric with reality
• Engage beyond the university, issue for campaign
• Make the ask for investment and redesign
• Hold them accountable

47
CSU as a Good Investment

• Up against varying and competing priorities
• Harder to seek new money than manage cuts
• Election year shifts focus
• CSU must show value as a partner, innovator
• What we are doing today, what we are prepared to
  do for the future
• Ability to improve, willingness to change

48
Tell the Story

• CSU is valuable investment because
• Assist in meeting the workforce gap
• Local and statewide needs
• Employers, industry, community leaders
• Value of college degree
• To state and local economy
• Employment opportunities, job development

49
Tell the Story

• Innovation and efficiencies our way of life
• Online teaching and learning
• Innovative programs and partnerships
• Improvement is a goal
• Graduation Initiative
• Results to date, future efforts
• Transfer Reform
• Implementation of SB 1440, other efforts

50
Being Ready to Make the Case

• New Chancellor values advocacy
• Active partner already
• Expectation of campus leadership focus
• Advocacy Plan to guide our work
• All university responsibility
• Common goals and objectives, unique campus
  approaches

51
Summary

• Budget, elections challenges and opportunities
• New investment, redesign not restoration
• Improvement, completion and access
• Role in states economy, successful residents
• Changes require ongoing advocacy efforts
• Competition for revenue
• Last term with governor, more than 65
  legislators new

52
Summary

• Budget proposal increase funds for CSU
• But falls short of Board request by 95 million
• Not a money problem, a priority issue
• Stakeholders must make case together
• Making higher education a real priority
• Our real friends must step up
• Beyond rhetoric, be held accountable

53
www.calstate.edu