Audit finds issues with fees at CSU

California State University’s 482,000 students pay rising mandatory fees that have little oversight, are not covered by financial aid and finance programs that should be covered by tuition and government funding, according to a state audit released Thursday.

The fees are set at different levels at the 23 CSU campuses and averaged $1,633 per year at the four campuses sampled for the audit: San Jose State, Chico State, San Diego State and Cal PolySan Luis Obispo.

Those fees are separate from the $5,742 annual tuition paid by all CSU undergraduates, which lowerincome students can offset with scholarships and other financial assistance.

Campus officials began increasing the mandatory fees to make up for major cuts in state funding during the recession that began in 200708, and continued the increases even after

state aid and tuition rose several years later, the state auditor said in Thursday’s report.

It said the fees, which totaled $306 million statewide in 200708, had climbed to $574 million by 201415 and, at current trends, could reach nearly $1 billion by 202425. Tuition, by contrast, rose only 5% over a recent eightyear period.

Mandatory fees “receive little oversight, yet they represent an increasing financial burden to students,” the audit said. “Campuses have not sufficiently justified their needs” for new or increased fees, and CSU Chancellor Timothy White’s office “has not ensured that campuses adequately consult with students.”

Under current rules, a campus president who wants to charge a new fee or increase an existing fee can ask students to vote on it, but in most cases the vote is “merely advisory” under state law, the audit noted. It said Chico State imposed three new fees in 2018 despite their rejection in student votes, and San Jose State adopted two fees without consulting student organizations, as required by state law.

While the fees are supposed to pay for specific programs at the campuses that approve them, the audit said, schools are using the money to hire teachers, add courses and pay for instructional materials, common needs that should be funded statewide.

The criticism comes in the wake of Chancellor White’s announcement Tuesday that the university would conduct nearly all instruction online for the fall term because of the coronavirus. That raised more questions about student fees for campus activities.

“I’m getting messages from students about refunding gym fees, activity fees, lots of small fees,” said Preyansh Kotecha, student body president at San Francisco State, where he is a senior. “A lot of students have concerns, are they getting the value for their money?”

Some students also want their tuition cut in half for classes conducted entirely online, Kotecha said. But he said the school’s administration “is not ready to decrease the fees in any way” and has told him that mandatory fees, charged for student activities, are already committed to building loans and can’t be refunded.

The audit recommended new state laws requiring CSU campuses to hold binding student votes before establishing or increasing fees and prohibiting use of those fees to pay for “core functions” such as teaching and instructional materials. It also called for policies requiring the chancellor’s office to review any proposal to increase a campus fee, and to “increase (the) rigor” of its review process.

CSU spokesman Michael Uhlenkamp said White’s office has already ordered increased reviews of campus fees to make sure the schools are following university policy. But he disputed the need for new state laws.

Banning the use of mandatory fees for core university functions “would result in drastic cuts to student programming and services” unless state funding or tuition increased, Uhlenkamp said.

He also said campus presidents have “the most comprehensive understanding of the campus’ needs” and should retain their authority over new or increased fees, subject to the approval of the CSU chancellor’s office.