csu business conference march 12, 2014 2014: a year of recovery and opportunities
TRANSCRIPT
Overview
2014 in Sacramento– State Fiscal Picture
– Elections and Changes
Opportunities and Issues– Budget Advocacy
– Issues
– Elections at Home
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“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
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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
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Governor’s Proposal for Higher Ed
Second year of Governor’s 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
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It’s Not a Money Problem….It’s 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?
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For the People’s Consideration…
This Election– All state officers
– New class of freshman legislators
Propositions, propositions, propositions…– Competing interests will affect elections, priorities
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Governor’s Last Ride
Governor will run for 4th and final term
Other candidates:– Tim Donnelly
– Neel Kashkari
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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
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PPIC Statewide Survey January 2014Satisfaction with Governor Candidates*
14*Poll was taken prior to Kashkari announcing
Statewide Races: Contested Races
Controller– John Perez v. Betty Yee v. Ashley Swearengin
Secretary of State– Alex Padilla v. Leland Yee v. Dan Schnur
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Statewide Races: Downticket Seats
Superintendent of Public Instruction– Tom Torlakson
Insurance Commissioner– Dave Jones
Lt. Governor– Gavin Newsom– Ron Nehring
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Statewide Races: Downticket Races
State Treasurer– John Chiang (Current State Controller)
Attorney General– Kamala Harris– Phil Wyman?– Orly Taitz?
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Current Legislative Make-up
Democrats control both houses “Super” majority achieved last election – and
keeping it drives everyone
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Assembly Leadership Departing
Speaker John Perez
Republican Leader Connie Conway
Budget Chair Nancy Skinner
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New Speaker:Unlike 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 Speaker21
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?
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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
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2013-14 Senate40 Members Total – 2/3 Threshold is 27*
26*Calderon and Wright are on Leave from the Senate
Key Senate Leaders Departing Leaders:
– President Pro Tempore Darrell Steinberg Friends and Allies
– Alex Padilla
– Lou Correa Less Than….
– Leland Yee
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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
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Key Races to Watch:The 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 Seat29
Propositions
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“The ballot initiative process remains one of the strengths of California’s system of government.”
- LA Daily News
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
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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 politics32
Bill Count – 2013-141st Year 2nd Year Total
Assembly 1585 1343 2928
Senate 955 659 1614
Total 2540 2002 4542
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Legislative Trends Over Last DecadeSession 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
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Issues for Today and Tomorrow
Bonds– $11 billion bond or not?
– Education bond in 2014, 2016?
K-12 Reform Continues– Common Core, Transitional Kindergarten
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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Summary Budget, elections: challenges and opportunities
– New investment, redesign; not restoration
– Improvement, completion and access
– Role in state’s economy, successful residents
Changes require ongoing advocacy efforts– Competition for revenue
– Last term with governor, more than 65% legislators new
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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
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