The California State University system will seek a state loan of $144 million that it’ll have a year to repay at no interest, even though current projections show the system will have to add to its deficit to repay the debt.
Cal State’s chief financial officer says the loan will be used to offer one-year bonuses to faculty and staff. While salaries vary widely across the system, the extra $144 million is roughly a 3% increase in the total pay for Cal State’s workers, including executives. State law says the loan needs to be repaid by next July.
Despite months of hesitation, the system today took the first step to request the loan and will likely get the money in 60 days or less, said Cal State’s interim chief financial officer, Patrick Lenz, in an interview. The process involves approval from state lawmakers, who are likely to support the move…