"The California State University system will seek a state loan of $144 million that it'll have a year to repay at no interest, even though current projections show the system will have to add to its deficit to repay the debt. Cal State's chief financial officer says the loan will be used to offer one-year bonuses to faculty and staff. While salaries vary widely across the system, the extra $144 million is roughly a 3% increase in the total pay for Cal State's workers, including executives. State law says the loan needs to be repaid by next July."
"Despite months of hesitation, the system today took the first step to request the loan and will likely get the money in 60 days or less, said Cal State's interim chief financial officer, Patrick Lenz, in an interview. The process involves approval from state lawmakers, who are likely to support the move."
""We will take this as a win, but we have so much work to do, and I do hope that this provides an opening for the management to come to the table with us and negotiate fairly," said Elaine Bernal, a lecturer at the Department of Chemistry and Biochemistry at Cal State Long Beach and senior member of the faculty association. "The one-time investment, great, but we really got to focus on long-term investment," Bernal said."
Cal State plans to seek a $144 million state loan that must be repaid within one year at no interest. The loan is intended to fund one-year bonuses for faculty and staff and represents roughly a 3% increase in total pay across the system. Current projections indicate the system will need to add to its deficit to repay the loan. The request requires legislative approval and is expected to be granted within about 60 days. Lawmakers originally cut $144 million in state funding this year. The largest faculty union welcomed the move but urged focus on restoring cancelled lecturer contracts and long-term investment.
Read at San Jose Inside
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