California State University has a new chancellor. Here are her biggest challenges

Mildred Garcia, president of the American Association of State Colleges and Universities and a former president at Cal State Fullerton and Cal State Dominguez Hills, was introduced on Wednesday as the 11th chancellor of the California State University system at a board of trustees meeting.

Garcia since January 2018 has led the AASCU as an advocate for higher education at a national level, driving policy issues and its strategic agenda on behalf of the organization’s 400-plus institutions.

In her six years as president at Cal State Fullerton, Garcia oversaw a 65% increase in graduation rates for first-time freshmen and a 30% increase in six-year graduation rates. The university also more than doubled its philanthropic gift commitments to $22 million. Upon her departure in 2018, the university was ranked No. 1 in the state and No. 2 in the nation in awarding bachelor’s degrees to Hispanic students and No. 5 in graduating students of color.

García, the first Latina appointed to oversee the CSU, will be paid $795,000 a year plus $80,000 annually in deferred compensation, a housing allowance of $8,000 per month and an auto allowance of $1,000 per month.

“The California State University is a powerful engine of change and upward mobility for California and the nation, supporting hundreds of thousands of students in achieving their educational, career and personal aspirations,” García said in a statement from the CSU.

“I am honored, humbled and excited for this opportunity to serve the nation’s largest four-year university system and work alongside its dedicated leaders, faculty and staff and its talented and diverse students to further student achievement, close equity gaps and continue to drive California’s economic prosperity.”

As chancellor, Garcia takes on the CSU at a turbulent time with the largest public university system in the nation reeling from sexual harassment allegations that led to the resignation of former chancellor Joseph I. Castro. It also is facing labor, budget and infrastructure issues across its 23 campuses and declining enrollment at a time when it has proposed annual tuition increases to help close a daunting $1.5 billion funding gap.

“This system of higher education and its 23 universities continues to face significant fiscal challenges that are unsustainable in the longer run,” interim chancellor Jolene Koester told the CSU board of trustees on Tuesday, addressing its 2023-24 budget.

”The system does not have the revenue sufficient to do all that we must continue to do to provide a transformative education. Not just access, but a quality education, and to also provide our students with the holistic support services that they need to succeed. And, yes, to fairly compensate our valued faculty and staff. And, yes, to provide safe and modern facilities where learning and discovery can thrive. And, yes, to strengthen our culture of care and compliance. We have been and are continually expected to do more and we want to do more, which is why we take on work and commitments for which we do not have the revenue.

“We are now at a point where the budget I just described, for which we are deeply grateful and appreciative, but this budget simply does not come close to bridging, to closing, to eliminating, to reducing the gap that exists between our revenues and our expenditures. It does not come close to allowing us to do what we are called to do by the public, by our students, by our faculty, by our staff.”

Trustees debate multi-year tuition increase

The CSU has proposed an annual 6% tuition increase over five years, though university officials said it alone would not close a widening gap between revenues from state funding, tuition and fees and its expenses.

The tuition increase, which could be voted on by the board of trustees in September or pushed to November, is targeted for fall 2024. Tuition would increase by $342 a semester, to $6,084 from $5,742. By 2028-29, it would be up to $7,682, not including fees that vary by campus.

Tuition across the system has not been increased since 2011-12, when it was bumped by 5% or $270 a semester.

Several trustees, including Lt. Gov. Eleni Kounalakis, an ex-officio member of the board, expressed reservations about the increase and the way it would be implemented, while acknowledging the grim reality.

Kounalakis, who joined the meeting remotely, questioned whether the tuition increase would not harm the 60% of students receiving financial aid.

“We’ve heard about this notion that this will only affect 40% of our student body,” Kounalakis said: “$840 million raised in five years, put on the backs of 40% of our students. How can we possibly contemplate that kind of money, while we are talking about students who we know are not wealthy.”

The Cal State Student Association spoke against the increase at the meeting and in a statement said: “Despite understanding the university’s need to address revenue challenges, we believe the proposal does not serve the best interests of students, particularly considering the current financial strain and declining enrollment,” it said.

“The suggested increase is considerably higher than the average Higher Education Price Index of the past three years (3.25%), and it threatens to burden students, especially those struggling with the pandemic aftermath and escalating living costs.”

CSU facing backlog of $6.5 billion in deferred maintenance

The CSU also is facing massive infrastructure upgrades. A report from the Legislative Analyst’s Office released in January detailed $3.1 billion in emerging capital renewal projects in the CSU over the next 10 years, with a backlog of $6.5 billion in deferred maintenance projects including the replacement of roofs and upgrades to heating, ventilation and air conditioning (HVAC), electrical and multimedia communications systems.

Capital renewal spending within the CSU and University of California system has not kept pace with emerging needs, according to the Legislative Analyst’s Office, and there also are no plans to fund capital renewal projects. The UC is projecting $12 million in capital renewal projects over the same period with $7.3 million in deferred maintenance projects waiting to be addressed.

“State funding has been episodic, with large amounts provided in some years and none in other years,” the LAO stated. “In addition, as UC and CSU continue to explain their academic space, no process is in place to account for the future capital renewal needs of new facilities. Absent a plan to address these issues, backlogs very likely will continue to grow - leading to higher costs and greater risk of programmatic disruptions.”

The CSU board of trustees also is to release a full report on a systemwide assessment of its Title IX and Discrimination, Harassment and Retaliation departments completed by the law firm Cozen O’Connor on Monday. A report into its handling of sexual harassment complaints by the California State Auditor is scheduled to be released on Tuesday.

But the CSU board of trustees is among the defendants in a number of lawsuits, at least three involving Fresno State and its handling of sexual harassment and discrimination lawsuits.

This story was originally published July 12, 2023 at 10:53 AM.