California State Auditor Report Number : 2015-106

The University of California and the California State University
Several Campuses Recently Acquired Property, but Those Acquisitions Have Not Significantly Reduced Property Tax Revenue for Local Governments

Response to the Audit

The California State University Office of the Chancellor

February 11, 2016

Ms. Elaine M. Howle
California State Auditor
621 Capital Mall, Suite 1200
Sacramento, California 95814

Dear Ms. Howle:

The California State University (CSU) appreciates the time and effort dedicated by the California State Auditor in conducting this audit and we concur with the finding of the report that the acquisition of properties by CSU campuses has a minimal impact on local government property tax revenues.

As noted in your report, the CSU provides an economic benefit to the local economies where the campuses are located. Specifically, the impacts associated with the CSU originate with the institution itself—its faculty, staff, students, and alumni—then percolate through the economy generating successive rounds of economic activity because of the interlinkages between different economic sectors. More specifically, according to the ICF International Impact of the California State University System dated May 2010, direct CSU-related expenditures and the alumni earnings attributable to their degrees have generated a full economic impact of $70.4 billion. This level of economic activity supports roughly 485,000 jobs annually in the state and generates $4.9 billion in annual tax revenue for state and local governments.

If you have questions or concerns, please contact Ms. Cindy Sanford, Senior Manager at (562) 951- 4439, csanford@calstate.edu.

Sincerely,

Timothy P. White
Chancellor

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