“audit’s findings are the latest to tarnish the image of California’s public university system”
The school also reportedly sought additional government funding while sitting on this massive bundle.
The Associated Press reports via KPIX News:
Audit: California State University Stashed Away $1.5 Billion, Raised Tuition
The California State University system kept $1.5 billion in discretionary reserves while it raised tuition and lobbied the Legislature for more state funding, according to a report released Thursday by the state auditor.
Auditor Elaine Howle’s report says that CSU accumulated the surplus from 2008 to 2018, primarily from student tuition. During that same time period, it nearly doubled student tuition at its 23 campuses but did not fully inform legislators and students about its surplus.
The audit’s findings are the latest to tarnish the image of California’s public university system. In a 2017 audit of the University of California, Howle found misleading budget practices and that administrators had kept tens of millions of dollars in reserves not properly disclosed to the public.
CSU Chancellor Timothy White said in a statement Thursday the report was misleading and mischaracterized the purpose of reserve funds, which help to deal with state recessions and cover the cost of maintenance or other expenses previously paid for by the state.
“It is irresponsible to imply that these one-time funds could have been used in lieu of ongoing revenue sources, such as state funding, or student tuition, for ongoing costs,” White said. He also said it was incorrect to claim that CSU did not fully disclose the funds.
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