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CSU Employee Update | April 21, 2009

Stimulus Funds for Education Will Provide Little Relief to CSU's Budget Deficit

Flanked by state and local education leaders, Gov. Arnold Schwarzenegger announced April 18 in Long Beach that California is the first state in the nation to receive federal stimulus money that will be passed on to school districts and the state's universities. Earlier in the month, Schwarzenegger had filed an application with the federal government to receive California's share of the Education Stabilization Fund that was created as part of the federal stimulus bill. The governor's application calls for $268.5 million of one-time funds for the CSU.  This amount includes $255 million that was already built into the CSU's budget that was passed by the legislature in February.  Because the funds were part of the approved budget, they are not new and do not change the CSU's difficult budget situation. The governor's application does include $13.5 million of federal funds, one-time money that will not continue into future budgets. The $13.5 million will slightly offset the $50 million reduction that had been planned for in the 2009-10 budget. The CSU's budget, however, remains underfunded almost $587 million due to budget cuts and mandatory new costs for the 2008-09 and 2009-10 fiscal years.

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