Judge upholds Cal Poly San Luis Obispo president’s salary

A Los Angeles County Superior Court judge ruled Tuesday that California State University did not violate the state’s open meeting law in January when it approved a $350,000 annual salary for the new president of Cal Poly San Luis Obispo.

In April, Lillian Taiz, president of the California Faculty Assn., sued the university’s Board of Trustees and Cal State Chancellor Charles Reed, arguing that the public should have received prior notification that the salary for Jeffrey D. Armstrong would exceed the previous maximum rate of $328,212 for top executives by nearly $20,000.

In addition to his state-funded salary, Armstrong received an annual supplement of $30,000 from the Cal Poly Foundation.

Months later, trustees approved annual compensation of $400,000 for the new president of San Diego State University, Elliot Hirshman, including $350,000 from the state and a supplement of $50,000 a year from the campus nonprofit foundation.

That decision, made the same day trustees voted to raise student tuition by 12%, provoked a furor and criticism from Gov. Jerry Brown.

Cal State officials argued that trustees effectively set the higher pay standard when they approved Armstrong’s salary and that the agenda item was properly posted 10 days before the vote.

Judge James C. Chalfant agreed, ruling that Taiz’s complaints were policy issues best left to the Legislature and governor.

“Notice given by the board was sufficiently detailed and specific to put anyone on notice that the compensation of President Armstrong was at issue,” Chalfant said at the hearing. “The ever-increasing salary range for CSU presidents at a time when others are not getting raises or are being laid off … is a political issue. The governor has addressed it and it’s not for the court to decide.”

Cal state officials said they were pleased by the decision. “The Board of Trustees always is very transparent with regard to executive compensation,” university counsel Susan Westover said. “The plaintiff’s argument that the floodgates were opened is not supported.”

Taiz, a Cal State Los Angeles history professor, said she is considering whether to appeal. “This is an issue I think the Legislature would want to consider and probably should,” she said. “We will look at moving in that direction.”

Controversy over Hirshman’s salary prompted several lawmakers to propose limiting the authority of Cal State trustees to set compensation of campus presidents. State Sen. Ted Lieu (D-Torrance) said he will reintroduce legislation to bar trustees from awarding salaries that exceed 150% of that of the Chief Justice of California unless the governor approves.

“Cal State’s view of the world is that they operate within a vacuum,” Lieu said. “But we operate with political and fiscal realities.”

carla.rivera@latimes.com