Action Hero Fails to Live Up to His Words: Arnold Flunks Again, Vetoes SB218

Education Desk
Schwarzenegger again breaks campaign promise, jeopardizing millions in donations to CSU, UC and Community Colleges because of chronic mismanagement and scandal.

Sacramento – Choosing special interests over much needed reform in California´s floundering colleges and universities, Gov. Arnold Schwarzenegger vetoed Senator Leland Yee´s (D-SF) SB 218 on Sunday.

SB 218 would have required foundations and other auxiliary non-profits connected with the state's public universities and colleges to make their handling of money and other operations more transparent and accountable to the public.

"We are outraged that the Governor vetoed this bill," said CFA President Lillian Taiz. "It would appear that his public commitment to transparency and accountability is only lip-service. When given the opportunity to provide the public with real, meaningful transparency in its public universities—he failed miserably."

"By vetoing this bill, the governor has missed a great opportunity to shine much-needed light on the scandal-plagued CSU foundations and auxiliary non-profits. This move will have a chilling effect on giving to the university since donors will have no assurance that there is any public mechanism in place to expose misuse and mis-direction of such gifts."

In the California State University alone, the money involved is huge. By the CSU Chancellor's Office's own admission, 20% of the public university´s operating budget – or $1.34 billion – is funded by the hidden budgets of its campus and system auxiliaries.

At a time when Democrats and Republics find themselves unable to agree on many important issues, SB 218 stood out as an example of bi-partisan public responsibility. The bill passed the state legislature with broad support boasting many Democratic and Republican co-authors and receiving only one "no" vote in either house.


Several well-publicized scandals at CSU and community colleges – including Sonoma, Fresno and Sacramento State as well as San Francisco City College – have made it abundantly clear that reform is needed.

Recent media accounts revealed that money in such auxiliaries have been misappropriated or used inappropriately for personal expenses, questionable loans, no-bid contracts, and executive perks for college administrators.

A case involving the Fresno Bee's attempt to learn more about an auxiliary at Fresno State University led to a 2001 court decision [CA University Fresno Assn., Inc. v. Superior Court 90 Cal.App.4th 810] in which the court suggested the need for a law like SB 218.

The court wrote: "The Legislature´s decision to narrowly define the applicability of the CPRA, balanced against its sweeping goal to safeguard the public, leaves us scratching our judicial heads and asking "What was the Legislature thinking?" In many ways, the [auxiliary] can be characterized as a "state-controlled" operation that should be subject to the CPRA."

The need for accountability and careful protection of university funds is greater than ever. Because of state funding cuts to public higher education, tens of thousands of eligible students are not being admitted to California's public colleges and universities, and students who do attend find that thousands of class sections are being eliminated.

The California Faculty Association and the California Newspaper Publishers Association co-sponsored SB 218. It was also supported by the editorial boards of the Los Angeles Times, Riverside Press-Enterprise, Sacramento Bee and San Gabriel Valley Tribune, among others.

The California Faculty Association represents the 22,000 professors, librarians, coaches and counselors that teach at the 23 California State University campuses.
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Education Desk

The Education Desk provides information, news, and announcements obtained from governmental, communications and public relations offices.