The table below summarizes the sources and uses of funds that make up the $593 million increase compared to 2024-25. The 2025-26 budget request prioritizes student success and retention, grows student enrollment and financial aid, provides workforce investments for all employee groups and covers institutional infrastructure costs.
An organization’s budget reflects its values. This is the case at the CSU. As briefly shown in the “Budget Request” column, the 2025-26 Operating Budget Request includes new, aspirational investments that reflect the many values and priorities of the university. Also, the request contains necessary investments in required operational costs that are important for the long-term financial sustainability of the university. If these investments are appropriately resourced, the CSU and the state will be in a better position to meet the overall economic and future workforce needs of California.
| Tuition from Rate Increase | $163.8
| $163.8 |
| Tuition from Student Access & Enrollment | 24.1 | |
| State General Fund | -397.0 | -397.0 |
TOTAL NEW SOURCES
| -$209.1 | -$233.2 |
|
Baseline Commitments |
$163.6
|
$163.6 |
| Financial Aid: State University Grant – Tuition Rate Increase | 54.6 | 54.6 |
| Health Premiums | 60.3 | 60.3 |
| Maintenance of New Facilities | 7.0 | 7.0 |
| Liability and Property Insurance Premiums | 10.0 | 10.0 |
| Utilities | 31.7
| 31.7 |
| | |
|
Essential Priorities |
429.4 | |
| Student Success / Graduation Initiative | 20.0 | |
| Beyond Completion | 2.0 | |
Student Access and Enrollment
| 56.1 | |
| Financial Aid: State University Grant – Enrollment Increase | 8.0 | |
| Faculty and Staff Compensation Pool | 295.8 | |
| Title IX and NAGPRA Compliance Programs | 10.5 | |
| Student Basic Needs and Mental Health | 5.0
| |
| CSU Artificial Intelligence Initiative | 7.0 | |
Capital Infrastructure Investments
| 25.0 | |
|
TOTAL NEW USES |
$593.0 |
$163.6 |
| | |
| BUDGET GAP /REPRIORITIZATION | -$802.1 | -$396.8
|
However, the “Limited Option” column in the table suggests that if the state were to adopt a -$397 million ongoing reduction and defer compact funding in 2025-26, many of the CSU’s budget priorities would not be funded and a significant budget gap would occur requiring a reprioritization away from the classroom and student services to unavoidable expenses, including cost increases.
The request notes a significant budget gap between the baseline commitments and essential priorities and available revenue for 2025-26. At this early stage in the budget cycle, it is important to highlight the budget priorities that will advance many aspects of the university’s work. As we move along the budget cycle timeline, the state, the system, and each of the universities will explore many options and make many decisions that will narrow and eventually bridge the budget gaps noted in this document. Examples of those options include:
- The state partially or fully withdraws plans to permanently reduce CSU funding.
- The state restores compact funding.
- The CSU foregoes many or all new essential budget priorities.
- The CSU reprioritizes resources from current programs and services to unavoidable budget priorities.
- The CSU makes permanent budget reductions to current programs and services.
- The CSU utilizes one-time designated balances and reserves to bridge to 2026-27 until permanent reductions can be implemented.