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Facts on Money: Can the Chancellor afford 5% for faculty?
(Hint: Yes!)

The answer is Yes! In fact, in fact-finding and in contract talks since 2014, the Chancellor’s negotiators have never argued they do not have the money for 5% for faculty.

So, taking it step-by-step…

HOW THE CHANCELLOR ORGANIZES THE CSU’S MONEY

The CSU 2015/16 Net Operating Budget (sometimes called the Support Budget) is $5 billion.

About $3 billion of that comes from state funding, sometimes called “The General Fund.”

The other $2 billion comes from students in the form of tuition and fees.

In addition, CSU management has a whole other pot of money called “The Reserve.”  This pot is a stockpile of money accumulated over many years and it comes from many sources. As of now, The Reserve has grown to a little more than $2 billion. The Reserve contributes to the CSU’s financial stability.

THE 5% RAISE IS A TINY PIECE OF THE CSU NET OPERATING BUDGET

The difference between what it would take to give CSU faculty a 5% raise and the Chancellor’s 2% offer, plus Salary Service Increases for our eligible colleagues, is $68.9 million.

That amount is 1.4% of the CSU’s $5 billion Net Operating Budget that is explained above.

BOTTOM LINE: Yes, the Chancellor has money to give a fair raise to the faculty. It’s a matter of his priorities.

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