Fresno State layoffs coming in January as state struggles with COVID-19 budget issues

Fresno State eliminated 27 manager positions and plans to lay off 13 staff members in mid-January due to a budget shortfall, according to school officials.

No faculty members are affected, and the list of staff layoffs has shortened since October, after seven people either retired or resigned, according to university spokesperson Lisa Boyles Bell. The staff layoffs are effective Jan. 19.

The university also eliminated some student assistant roles and moved 24 other employees to different departments or positions, according to an internal email from President Joseph I. Castro to employees, which was obtained by The Bee.

In the email, Castro called the cuts “difficult-but-necessary decisions.”

He said the decision was made after “we analyzed and implemented other cost-reduction strategies, including the reduction of operating expenses by 25% and elimination of many student-assistant positions.”

“We also recognize that this decline in state support could be a multi-year challenge,” he said, “depending upon our state’s ability to recover economically from both the pandemic and extensive wildfires.”

In passing the 2020-2021 budget, the State Legislature directed the CSU and other educational institutions to use its reserves to make up for budget cuts.

“It is the intent of the Legislature that the California State University use its unrestricted reserves to mitigate the impacts of fiscal year-over-fiscal year ongoing General Fund reductions to this item,” the budget reads.

Last year, a state audit found $1.5 billion in reserves it accused the CSU of not publicly disclosing. The CSU Employees Union is urging the university system to dip into these funds to stop more layoffs. Statewide, more than 300 support staff have gotten layoff notices, according to the union.

Although Fresno State does keep reserve funds, it is not enough to support keeping the manager and staff positions, according to Boyles Bell.

“It is important to note that each CSU campus has addressed their budgetary shortfall differently, depending upon the amount of their unrestricted reserves, as well as other long-term debt obligations,” she said. “In addition, these reserves are needed for one-time, unforeseen capital/catastrophic related expenses.”

Fresno State’s budget shortfall

The university faced a $13.6 million budget cut for the 2020-2021 year, part of a $299 million slash to the California State University system by the state as it struggled during the COVID-19 pandemic.

Earlier in the year, more than 100 auxiliary employees were let go or furloughed because of significant revenue loss from dining, housing, parking, athletics, bookstores, the University Student Union, the Student Recreation Center, the Save Mart Center, and other operations, when students largely stayed away from campus during the pandemic.

The athletic department continues to face deep cuts and furloughs because of sharp declines in revenue. Athletic Director Terry Tumey took a 3.85% pay cut, and the university cut three sports from its roster — one that sparked threats of legal action from the women’s lacrosse team.

The university said operating revenues have declined by over $9 million in the athletic department due to the pandemic, resulting in a $5.1 million projected operating deficit this fiscal year.

After all scholarships and other contractual obligations have been fulfilled, the school will save about $2.5 million, officials have said.

This story was originally published December 23, 2020 at 11:50 AM.