Cal State Bakersfield students and faculty questioned administrators on spending decisions, salary gaps, and the university’s decreasing reserves during the budget forum on March 16.
The forum highlighted growing concerns about transparency and priorities about ongoing fiscal challenges.
Dr. Kristen Watson, vice president and chief financial officer, said CSUB has spent roughly $35 million more than it has brought in over the past four years, forcing the campus to use its operating reserves. These reserves are designed to cover unexpected expenses and help ensure the university can continue its regular operations. Those reserves have now dropped to about $6.5 million, which is less than half a month of operating costs. In 2017-18, the reserves had two months worth of operating costs.
Watson said that about 65% of the university’s revenue comes from the state, the remaining 35% is from student tuition. Most of the money, which is roughly 70%, goes toward salaries and benefits. She said that while the campus expects a small surplus of $1.2 million this year, there’s still not “extra money to spend freely,” and careful budgeting will be needed.
Attendees, some from the California State University Employee Union, asked questions about whether the financial strain could lead to moving athletics from Division I to Division II. CSUB President Vernon B. Harper said CSUB plans to stay in Division I, noting a prior student referendum and existing fees that fund athletics.
The attendees also expressed their concerns about pay, pointing to reports that the university president’s salary is significantly higher than the system average, while some instructional faculty earn less. Harper didn’t directly answer the numbers, but instead asked for additional data to review the claims.
A question about depleted reserves during reduced campus activity, like the pandemic, also came up. Watson explained that reserves aren’t spent on specific projects, but are used when expenses exceed revenue.
Watson announced that on April 24, there will be a town hall conversation that will take a deeper dive into the instructional budget model, which will discuss faculty needs and enrollment trends.
