While the California State University system is not planning to negotiate a furlough program for this fiscal year, one “is most likely necessary” in the 2021-22 fiscal year because of revenue reductions related to the coronavirus outbreak, according to Chancellor Timothy P. White.

The 23-campus system with about 450,000 students is the largest university system in the nation. It will spend a portion of its discretionary reserves during the 2020-21 fiscal year and each of the next two fiscal years “knowing that we are facing at least a three-year fiscal challenge,” White wrote in a letter to CSU faculty and staff Monday, the day before Tuesday’s regularly scheduled Board of Trustees virtual meeting.

“We will not `zero out’ our reserves nor will we plan to redirect encumbered reserves that are intended for a specified campus need or priority,” White wrote.

The system’s base budget for the 2020-21 fiscal year was “permanently decreased by $299 million compared to the last fiscal year because of COVID-19-imposed impacts to the state’s economy,” White wrote.

The system has made layoffs and may make additional layoffs, White wrote. It has stopped most hiring, except for essential positions approved by the relevant campus president or vice chancellor and “essentially stopped travel on state funds,” according to White.

“I am saddened that our future includes layoffs necessitated by the economic challenges … and despite the actions we have implemented to mitigate these circumstances,” White wrote.

“However, I am proud and grateful that this approach is best for our students, our raison d’etre. This path forward reflects our deep commitment to their success.”

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