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Senator Pressures CSU Chancellor To Resign Following CBS2 Investigation

LOS ANGELES (CBS) — Calif. Sen. Ted W. Lieu is responding to CBS2 investigative reporter David Goldstein's exclusive story on questionable spending at the CSU Chancellor's Office.

Our hidden cameras found no shortage of catered food at the office of CSU Chancellor Charles B. Reed. In fact, CBS2 obtained the CSU credit card statement from last year, which uncovered tens of thousands of dollars in catered meals, plus expensive dinners and car service rides — mostly paid for by taxpayer money.

In all, CBS2 found $766,890.32 in questionable charges on CSU credit cards last year.

"I watched yesterday's CBS2 investigation on the charging of more than $766,000 on CSU credit cards for alcohol, catering, and other luxuries – mostly paid for by taxpayer funds. The actions documented in the investigation are outrageous, as was your response to the investigation. You publicly stated that the taxpayer money was "absolutely" well spent. If the allegation are true and you continue to maintain your position that taxpayer funds should be spent in this manner, then you need to resign. At a time when you are making drastic cuts and raising tuition fees on students, spending taxpayer money to subsidize your lifestyle and those of already well-paid CSU presidents is shameful," Lieu writes in a letter to Reed, which he also sent to CBS2.

Meanwhile, there has been talk of freezing enrollment and eliminating classes. Tuition, which has gone up more than 300 percent over the past decade, will be going up another nine percent this fall for students at all 23 campuses.

CBS2 was at Reed's house Thursday night as student protestors gathered outside as he hosted a dinner party.

"Faculty find this sort of expenditures extremely disappointing, because they have been facing budget cuts for the past five years," Teri Yamada of the California Faculty Association said.

To read Lieu's complete letter, click here.


<< Investigation Reveals Questionable Spending By CSU Chancellor's Office

<< Student Protestors Gather Outside Dinner Party At Cal State Chancellor's House


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