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California State University, Fresno President John D. Welty informed the faculty and staff today (Jan. 21) that a mid-year reduction in the current state budget and Gov. Schwarzenegger’s proposed budget for 2004-05 will require the university to face “painful decisions” as it copes with the state fiscal crisis.

In his annual Spring Assembly address, Welty said the Fresno State’s steps over the last several years to prepare for belt-tightening have served it well. “But,” he added, “this year will require hard work, creativity and maximum accountability from all of us.”

On a positive note, Welty pointed with pride to the new Science II building under construction and scheduled for occupancy in January 2005.

And he highlighted the importance of passage of Proposition 55 on the March ballot. That statewide bond issue includes $91 million for expansion and renovation of the Madden Library at Fresno State.

Looking at 2004-05, the situation is serious, Welty said. Based on Gov.

Schwarzenegger’s proposal to cut $250 million or 9 percent from the California State University system, Fresno State would have to reduce its base budget in 2004-05 by $12 million. That would come after a 13 percent reduction last year, defrayed in part by increased student fees. The Governor’s proposal also would mean Fresno State would serve 1,500 fewer students, and students who do attend would pay 10 percent (undergraduate) or 40 percent (graduate students) more. If enacted, that fee increase would be on top of two hikes last year that pushed fees up 30 percent.

Though the situation may change as the Governor’s proposed budget moves through the Legislature toward its final form, planning must start immediately, Welty said. He said he has instructed each school, college and division at Fresno State to prepare a plan to meet the reductions with 7.5 cutbacks. The plans will be reviewed by the University budget committee and implemented in April.

“We will continue our efforts to avoid laying off employees,” Welty said. “However, given the severity of the reductions we face, I cannot promise you at this time that layoffs will not be necessary.”

Welty also discussed the importance of the university’s just-started multi-year “Comprehensive Campaign” to raise millions for academic and other uses on the campus.

Welty started his speech by paying tribute to “our colleague and dear friend” President Harold H. Haak, who died Dec. 26. He praised Haak as a compassionate and strong leader who had “enormous impact on higher education in Central California.”

To read the entire text of Dr. Welty’s address, see www.FresnoStateNews.com.