The California State University (CSU) system announced Friday that the negotiations for the 2008-09 salary issues with an in-state teaching unit have concluded.

A neutral panel found that no General Salary Increases or across-the-board Service Salary Increases were possible with the current budget situation within the California Faculty Association. The CFA represents 23,000 faculty personnel at the CSU’s 23 campuses.

The CSU had proposed to distribute about $1.7 million in unspent roll over funds, but the offer was rejected by the CFA, said Shirley Armbruster, the director of University Communications.

The administration and faculty union were unable to reach an agreement through mediation, but agreed to the neutral panel, Armbruster said. However, the panel’s findings are not binding, and can be rejected by either the administration of CFA.

The CSU’s general fund support has been cut by $625 million over the past two years, resulting in reduced enrollment, two day per month employee furloughs and increased student fees.