In legislative meetings and in the halls of the Capitol, California State University supporters are making their voices heard about proposed cuts to the CSU system’s budget.
CSU leaders and other advocates are gathering in Sacramento this week to share information about the dramatic impact that a nearly 8% proposed cut would have on the university’s ability to meet the needs of its students and serve California.
Leaders Warn that Proposed Budget Cut Would Harm Students, Programs
California Governor Gavin Newsom has proposed a $375 million (7.95%) ongoing reduction to the CSU’s state General Fund appropriation for 2025-26.
To put the proposed cut in context, $375 million is equivalent to:
- The size of the entire operating budget of Fresno State (in fact, 12 CSUs have operating budgets of less than $375 million), or
- 2,481 faculty positions, or 9% of the faculty workforce, or
- 19,800 courses affecting 455,000 seats.
The budget proposal also includes a deferral of multi-year compact funding, with the 2025-26 compact funding of $252 million ongoing deferred until 2027-28 and two one-time payments of $252 million each planned for 2026-27 and for 2027-28.
CSU leaders have warned that such a budget reduction would impact academics, student services, course offerings and its workforce. Larger class sizes and reduced course offerings would potentially hamper students’ ability to graduate on time. Furthermore, the CSU would likely lose progress it has made on increasing systemwide enrollment, raising graduation rates, providing basic needs and appropriately compensating faculty and staff. Course reductions and increasing time-to-degree would significantly impede the growth needed to meet California’s workforce needs.
Adding to the potential difficulties, the CSU system has experienced gaps between anticipated revenue and expenditures of $138 million in 2023-24 and $218 million in 2024-25; and the state’s Department of Finance and the Legislative Analyst’s Office anticipate a state General Fund budget gap in the coming years, exacerbating an already challenging fiscal situation.
“If the proposal is approved, it will place the CSU in dire fiscal circumstances and our mission—for the state and for our current and future students—in jeopardy,” CSU Chancellor Mildred García told the Senate Budget and Fiscal Review Committee’s Subcommittee on Education on March 6.
A total of 61 legislators signed a letter, led by Assemblymember Mike Fong (Chair of the Assembly Higher Education Committee), to Senate and Assembly leaders on March 3 calling for them to reject proposed cuts to both the CSU and the University of California system.
“We have a responsibility to ensure that our higher education institutions continue to provide access and excellence for California’s students,” read the letter signed by the legislators. “This benefits not only the students themselves, but California as a whole. The University of California and the California State University systems are pinnacle examples of public funds benefiting public good. We respectfully request rejection of the cuts to the UC and CSU.”
The CSU’s Efforts to Address Budget Issues
Meanwhile, the CSU continues to seek ways to address the system’s structural budget issues.
With a focus on creating cost efficiencies, the Chancellor’s Office and each university are working on a
multi-university collaboration initiative to reduce costs and better serve students.
Additionally, each university was directed in October to plan to reduce its budget based on the university’s share of the operating budget. University reductions will range from $6.4 million (Sonoma) to $30.4 million (San Diego).
Furthermore, after only raising tuition once in the past 13 years, the CSU has embarked on a 5-year
tuition increase that will raise tuition 6% each year for five years. One-third of that new tuition revenue is dedicated to financial aid, and 60% of the CSU’s students have their tuition completely covered by state, federal and CSU financial aid.
The CSU is also in the middle of an enrollment and budget reallocation effort that is shifting both from under-enrolled universities to universities with strong enrollment demand. And in fall 2024, the CSU’s Board of Trustees approved
integrating Cal Maritime with Cal Poly San Luis Obispo to provide a long-term solution to Cal Maritime’s untenable fiscal circumstances, preserve its mariner licensure-granting academic programs and leverage academic and operational synergies between the two universities.
To date, the CSU’s budget challenges have resulted in campuses reducing the number of courses taught, eliminating positions, consolidating administrative units and laying off faculty and staff. Since last year, 17 of the CSU’s 23 universities have reduced their workforces, with more than 1,200 positions eliminated,1,430 course sections discontinued and 136 degree programs suspended or discontinued across the system. Additional programs could be paused or eliminated later this year.
‘A Public Good Worthy of Your Investment’
Yet despite past and potential future cuts, the CSU system continues to serve as a vital asset to the students of California and to the state’s economic growth.
Among a wide range of surveys, the CSU continues to be rated No. 1 nationally in improving economic mobility. In fact, similar to a
2024 Wall Street Journal ranking, a new ranking by the College Futures Foundation called the
California Mobility Index confirmed that the CSU leads the state’s four-year institutions in delivering economic mobility for California students from low to moderate incomes. The top nine institutions on the index were all from the CSU, as were 13 of the top 15.
Across the CSU, the system is also pushing the boundaries of traditional academic programs to continue to fuel degree production and train students in skills critical to strong communities and economies in every region of the state. Such efforts include a
pilot program offering direct admission for Riverside County high school students, creating more online degree options like the fully online
Associate Degree of Nursing to Bachelor of Science of Nursing pathways, offering
credit for prior learning for military members and those with professional certifications, creating new degree programs like
PK-3 Teaching Credential,
harnessing the power of AI, and other innovative academic initiatives.
The
CSU’s Graduation Initiative 2025 and other student success efforts have also reduced time to degree—an average one semester sooner—which increases affordability for students and expands access for additional students; as well as increased graduation rates for a multitude of student groups and doubled the overall four-year graduation rate since 2015 from 18% to 36%.
Additionally, the CSU is innovating to improve student success with investments in financial aid, student support services and strategies that work for students.
“I ask you to please recognize that resources entrusted to the CSU are not an expenditure, but a wise investment in our state’s future leaders, in more vital communities and a stronger democracy, and in powering California’s diverse and highly educated workforce,” García told the Senate panel on March 6. “An affordable, high-quality Cal State degree is a public good. And now, more than ever, it is worthy of your investment.”
Read the Chancellor’s January statement on the proposed cuts.