PD-1982-09

March 26, 1982

To: School Deans, Department Chairs, Administrative Heads
From: President Gail Fullerton
Subject: The Freeze - Fiscal Crisis

The freeze imposed by the Governor in Executive Order B97-82 is part of an effort by the State to meet an unprecedented fiscal crisis. Some have asked what the State plans to do with the money saved by the freeze: the plain truth is that the State is in danger of running out of funds before running out of fiscal year. The deepening recession has meant that State revenues have been far less than the budget builders anticipated a year ago. Were we not now to curtail expenditures, the State might not be able to meet its payroll (including the payroll of California State University campuses) in June.

To date, we have not been able to obtain detailed guidelines to implement the freeze. However, we have discussed the Management Memos we have received and have described the major negative impact some aspects of the freeze could have on this University with the Department of Finance, the Office of Procurement, the Office of the Chancellor, and others.

Because it is inconceivable that the Governor intends the freeze to result in closing the University, I have concluded, after detailed discussions with Vice President Burns, Interim Vice President Evans, and Dean Martin, that pending further guidelines that might be issued by the Office of the Chancellor, the following expenditures will be permitted:

1. Postage. When the meters are empty, it is unlikely that we will be able to refill them. Top priority will continue to be placed on mailings coming out of the Office of Admissions and the Office of Financial Aids: that is, the mailings required to ensure that new students are admitted for Fall, 1982. Beginning Friday, March 26, other mail will be processed through our meters if it is essential business of the University. This is not a return to business as usual, however, and while the decision as to whether or not a particular letter is essential will be left to the sender, we will monitor postage expenditures closely by area. If voluntary restraint is not sufficient, we may have to ask that deans and division heads approve outgoing mail, but that will not be required now.

2. Travel. Our campus' share of the additional 10 percent "deallocation" of travel funds has been determined and appropriate reductions made. We may resume the use of remaining travel funds. Travel accounts not be augmented by money from other State funding lines. If, as we have reason to hope, the Special Funds are released soon, these may be used -- in accordance with existing guidelines -- for travel. (E.G. travel is frequently appropriate in connection with Continuing Education, and although the Continuing Education Revenue Fund is presently frozen, we anticipate that it will be released soon.)

3. Those areas reporting to the Academic Vice President and under his general supervision may, through the appropriate Dean:
a) Purchase instructional supplies essential for the continuation of the instructional program;
b) Purchase supplies necessary to keep instructional equipment functioning;

4. Those areas reporting to the Executive Vice President and under his general supervision may, through the appropriate Division Head:
a) Purchase supplies which are necessary to maintain essential University functions;
b) Purchase supplies necessary to maintain essential equipment;
c) Purchase supplies required to make necessary repairs.

5. Those areas reporting to the Dean of Student Services may, with the approval of that Dean:
a) Purchase supplies which are essential for the continuation of necessary student services;
b) Purchase supplies necessary to keep equipment functioning.

Purchases in all areas should be limited to quantities required to keep us operating through this fiscal year only. Under no circumstances should the provisions of this memorandum be interpreted as permission to stockpile for a period extending beyond June 30, 1982.

As specified in the Governor's Executive Order and in Management Memos 82-5, 82-6, 82-7, and 82-8, the purchase of office supplies, equipment, office furniture, and the issuance of new contracts is still prohibited.

Questions relating to this memorandum should be addressed to Interim Associate Academic Vice President Robinson or to Associate Executive Vice President Guttormsen.

I regret the necessity for the freeze, but I am certain that, with your help, we will survive the next three months and still meet our payroll.

cc:
Chancellor Dumke
Academic Vice President Burns Executive Vice President Evans
Associate Academic Vice President Robinson
Associate Executive Vice President Guttormsen
Dean, Student Services Martin Chairman, Academic Senate McNeil