CONTENTS:

1. LEGISLATIVE ANALYST'S OFFICE RESPONDS TO GOVERNOR'S BUDGET
2. GEORGE DIEHR ADDRESSES THE CAL-PERS BOARD
3. MASTER PLAN COMMITTEE TO SPONSOR ONLINE DISCUSSIONS
4. CSU ADMINISTRATION JOINS CFA IN JOINT BUDGET REQUEST
5. MEET OUR NEW GRO TEAM MEMBER!

LEGISLATIVE ANALYST'S OFFICE RESPONDS TO GOVERNOR'S BUDGET

In a report released Thursday, the Legislative Analyst's Office (LAO) called Governor Davis's May Revise budget "credible," but stated it would not rectify future year budget shortfalls. Additionally, the LAO commented that Davis's budget proposal contained some "risks," including an assumption that the state would be reimbursed $1.4 billion by the federal government to pay for anti-terrorist costs and increased Medicare payments.

As reported earlier this week, the Governor proposes a combination of $8 billion in spending cuts, $3.7 billion in Vehicle License Fee and cigarette tax increases, and various borrowing to close a $23.6 billion state budget deficit. For the CSU budget, Davis provided nearly $20 million more for new enrollments, and proposed $50.4 million in additional cuts.

Both the Assembly and Senate budget subcommittees will complete their deliberations by the end of next week, and a two-house conference committee will convene to develop a final budget plan for consideration by the Legislature.

GEORGE DIEHR ADDRESSES THE CAL-PERS BOARD

At a meeting of the CalPERS Board of Administration this week, CFA-member George Diehr introduced himself as a CSU professor, and thanked the Board for their hard work and leadership during challenging times. As a candidate for the state active seat being vacated by CFA-member Bill Crist, Diehr stated that he looked forward to having the opportunity to serve on the board. The election is being conducted by mail ballot from August 19, 2002-September 30, 2002.

In his candidate statement appearing in the CalPERS ballot, George has pledged to do everything possible to:

• Fight against skyrocketing health care costs
• Improve health care benefits
• Enhance retirement benefits
• Provide sound investment of our pension fund
• Insure that investment returns benefit members
• Always be accessible to members

We need your help in raising funds to help George win this important seat. Because contributions from CFA to George’s campaign are limited by campaign reform law, we need to raise individual contributions from our membership to make sure he has the resources to win.

We are asking members to help raise at least $500 per chapter to elect George. Checks should be made payable to “George Diehr for CalPERS Board” and mailed to the CFA Government Relations Office at 400 Capitol Mall, Suite 1950, Sacramento, CA 95814.

Please indicate your chapter on the envelope so that we may appropriately credit your contribution to your chapter. A progress report will be included in next week’s GRO Weekly report.

MASTER PLAN COMMITTEE TO SPONSOR ONLINE DISCUSSIONS

With the release of the draft Master Plan for Education report, the Joint Legislative Committee responsible for the report is conducting district hearings and sponsoring online discussion groups to receive public comment.

Hearings are currently scheduled in the locations listed below. CFA will be calling on local members to represent us at these district hearings.

1. June 6, 2002, from 4:30 pm – 7:30 pm at San Diego State University
2. June 7, 2002, from 4:00 pm – 7:00 pm at West Los Angeles Community College
3. June 28, 2002, from 10 am – 12 noon at Sonoma State University
4. June 28, 2002, from 3:00 pm – 7:00 pm at Pasadena City College

In addition to the district hearings, the Committee is sponsoring online discussion groups from June 3-June 14 to encourage public dialogue in development of the plan. To learn more about this innovative process visit the Master Plan's webpage at <www.sen.ca.gov/masterplan>.

CSU ADMINISTRATION JOINS CFA IN JOINT BUDGET REQUEST

In a joint letter to legislative leadership from CFA and the CSU administration, a request was made this week to “ensure that the CSU can accommodate ...growing [student] enrollment, compete...for the best faculty, and respond to workload needs...." The letter, signed by CFA President Susan Meisenhelder and Richard West, CSU Executive Vice-Chancellor, outlined numerous budget structural needs that need to be improved. These areas include increasing the CSU marginal cost rate that is used to fund new student enrollment; increasing funds for graduate education; providing assistance for CSU faculty housing; and providing a linkage between program needs and capital investments, such as faculty workspace.

Please find attached a copy of the joint letter sent to legislative leadership from CFA and the CSU administration. If you are unable to open this attachment and would like a copy in text form via email or fax, please contact Kim in the GR office via email at gro@calfac.org or (916) 441-4848.

MEET OUR NEW GRO TEAM MEMBER!

David Stammerjohan joins the GR team as a Legislative Advocate and will work closely alongside David Hawkins, CFA's Legislative Director, in representing CFA's interests in the State Capitol.

In accepting this temporary position, David brings a wealth of legislative and political organizing experience to the job.

CFA General Manager Bob Muscat notes, "We brought David on board to assist us in meeting the budget challenges ahead of us this year and next leading up to our salary reopener in 2003.”

David may be reached at the Sacramento CFA office at (916) 441-4848. (E-mail address to follow). Welcome aboard David!