By Nanette Asimov

For the second time this month, a state senator has introduced legislation to limit executive raises at the California State University system within two years of a tuition increase or risk no boost in the allocation it receives from the state.

Base pay for newly hired executives also would be limited to 5 percent more than what their predecessor received under SB 967, by state Sen. Leland Yee, D-San Francisco.

Those provisions differ somewhat from a similar bill introduced Jan. 4, which refers only to CSU presidents’ salaries and would cap them at 150 percent of whatever the chief justice of the California Supreme Court is making. That bill, SB 755, was introduced by Sen. Ted Lieu, D-Torrance.

Both bills were inspired by salary decisions made last year by the CSU Board of Trustees at a time of rising tuition and severe budget cuts.

In one case, which drew criticism from state lawmakers as well as Gov. Jerry Brown, the trustees hired CSU San Diego President Elliot Hirshman at a salary of $400,000, or nearly 34 percent higher than his predecessor — and did it on the same day in July that they raised student tuition by 12 percent.

In another instance, the trustees hired Cal Poly San Luis Obispo President Jeffrey Armstrong last year at nearly 16 percent more than the published salary maximum for the job, prompting an unsuccessful lawsuit from faculty.

The state cut $750 million from CSU’s budget this fiscal year, as well as from the University of California.

To promote his bill, Yee also cited large salary increases for UC executives. UC Davis Chancellor Linda Katehi, for example, was hired in 2009 at $400,000, or 27 percent more than her predecessor. The UC regents have raised tuition steadily since 2007.

But unlike CSU, which would be required to cap executive pay if Yee’s bill became law, UC is autonomous from the Legislature. Under the bill, lawmakers would only recommend to UC that it cap executive salaries.

“UC and CSU are public institutions designed to serve California’s students and not to be a cash cow for executives,” Yee said.

CSU officials oppose both bills and say they need to have flexibility on setting salaries so that they can remain competitive.

University spokeswoman Claudia Keith said that neither Chancellor Charles Reed nor campus presidents and vice chancellors have received a raise since 2007.

“The responsibility to set employee salary levels is part of the overall financial obligations of operating a university system, and is not done in an arbitrary manner,” Keith said. “Presidential salaries are approved in open session by the board, and the chancellor makes an annual report to the board on any vice presidential compensation changes.”

Meanwhile, CSU expects to hire six new campus presidents this year. It’s unlikely that either the Yee or Lieu bill would become law before those hires take place.

— Reach Nanette Asimov at [email protected]

Comments

comments