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These actions were taken by the Board in response to one of the greatest fiscal emergencies in the history of California. In July the State Legislature and Governor reduced state funding for the California State University system by almost $600 million, or an amount equal to the support traditionally given by the state for instruction of 95,000 students. Faced with this emergency, the Board of Trustees and the Chancellor have begun to implement a plan that balances the need to reduce spending with the need to preserve, as much as possible, the quality of the academic program and access to courses and student services. To do this requires something from everyone in the university community. For example, nearly every employee, including the campus presidents and the Chancellor, will be furloughed two days each month for the rest of the academic year. This amounts to a reduction in pay of almost 10 percent. This sacrifice by employees helps avoid, to a significant extent, the degree to which reductions in course offerings and student services will be needed.