News Release

With enrollment caps and executive pay raises, California State University continues adoption of for-profit higher education model
California Faculty Association releases white paper revealing the Board of Trustees’ mission to transform the People’s University into a for-profit college system

FOR IMMEDIATE RELEASE – MARCH 20, 2012

Long Beach, CA – This week, the California State University Board of Trustees is continuing to implement its plans to privatize what was once the country’s most successful public higher education system.

Even though there are serious concerns about the negative impact the for-profit model of higher education is having on students, the CSU Board of Trustees is plowing forward with its privatization plan for the CSU, while abandoning the promise of a quality higher education for Californians.

The Board announced this week enrollment caps that will result in a more selective admissions process and tuition has already been increased for Fall 2012 to over $7,000, double what the CSU cost in 2007-2008. Meanwhile, executive pay raises are being voted on for CSU East Bay President Leroy Morishita, who would receive a base salary of $303,660, and CSU Fullerton President Mildred, who would receive a base salary of $324,500.

These tactics by the Board of Trustees, which include making a quality higher education more expensive; embracing higher executive pay; holding down “costs”; and removing the promise of access to a higher education that was in the state’s original master plan are all aspects of a for-profit higher education model.

In response to the Board’s actions, the California Faculty Association issued a white paper today that describes a stealth process underway that threatens to morph “The People’s University” into a For-Profit institution.

View the report, “For-Profit Higher Education and the California State University: A Cautionary Tale” as well as an Executive Summary and Fact Sheets about two bills CFA is supporting.

Using the turmoil and uncertainty associated with California’s state budget, California State University leaders are persistently implementing changes to the public nature of the university in ways that mirror the management and institutional framework of the private for-profit higher education sector.

Insistent increases to executive compensation while charging students much higher tuition, expanding operations outside the regular university system, and planning to launch a new online university are indications of a move to the for-profit model even as that model is being scrutinized for failing students miserably.

The white paper maps the lack of public discussion or scrutiny, even within the campus communities, as these changes are developed and implemented by a cottage industry of expensive outside consultants hired by the CSU Chancellor’s Office on Golden Shore in Long Beach.

CFA President Lillian Taiz (History, Cal State Los Angeles), says, “We need change that makes our public university a better place to get an education, a place that is more open, more accessible, more affordable with a broad curriculum. These are the things we mean when we talk about quality education for California. Following the for-profit model is exactly NOT the kind of change our families need.”

CFA is supporting legislation in the state legislature to help bring more light on the process of change to the public university, to democratize the process under which decisions about change will be made and to ensure the affordability and access to the CSU for all Californians, not only those able to pay.

See “For-Profit Higher Education and the California State University: A Cautionary Tale” as well as an Executive Summary and Fact Sheets about two bills CFA is supporting at:

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