The California State University’s (CSU) primary budget goals this year are to avoid cuts and restore the state compact funding. The CSU’s budget situation is dire, with our primary goals this year centered on avoiding a harmful 7.95% ongoing cut to base funding, which equates to approximately -$397 million, and preventing the deferral of compact funding, totaling $252.3 million. These budgetary measures would have severe consequences for students, staff and faculty across all CSU universities, forcing difficult decisions that could lead to larger class sizes, reduced course offerings, diminished student services, layoffs and hiring freezes. The quality of education and university life would be significantly compromised, undermining our core mission. A -$397 million cut is equivalent to the funding needed to educate and support more than 36,000 full-time equivalent students.
The proposed 7.95% cut and deferred funding would also jeopardize critical long-term investments in academic programs, student support services and infrastructure, creating substantial uncertainty for universities as they attempt to plan for future needs. Our efforts this year will focus on advocating against these cuts and ensuring that the necessary funding is secured to sustain high-quality educational opportunities and overall student success.
Funding cuts and deferrals compromise student success. Our universities are already facing significant cost pressures due to unfunded mandates, rising operational expenses and underfunded compensation increases from 2023-24 and 2024-25. The proposed state cuts for 2025-26 would exacerbate these challenges, forcing universities to make additional difficult choices that could undermine long-term goals. Securing adequate funding is essential to maintaining the high standards of education and support services that our students deserve.
Compact funding provides some financial stability to meet CSU goals and initiatives. The CSU’s multi-year tuition plan offers some predictability in revenue, which is crucial for addressing the budgetary shortfall. However, this alone is not enough. The additional revenue from tuition increases was carefully planned to complement the state’s compact funding to ensure that the CSU can advance the most critical budget priorities without sacrificing quality or access.
Further complicating the budget landscape are emerging fiscal constraints, including the need for significant investments to implement Title IX and anti-Discrimination, Harassment, and Retaliation (DHR) program recommendations, support enrollment initiatives, close equity gaps, improve compensation and achieve a more sustainable financial model. These are essential priorities that only add to the financial strain the CSU is currently experiencing.
While the multi-year compact with Governor Newsom’s administration has provided essential financial support, the current economic and state budget climate presents uncertainties. Market volatility, inflation and heightened interest rates contribute to an unpredictable financial outlook, making the CSU’s advocacy efforts more crucial today. However, we remain optimistic about our partnership with the administration and the legislature. By working together, we can navigate these challenges and secure the necessary funding to avoid harmful cuts. Through continued collaboration, we can ensure that the CSU remains a beacon of accessible, high-quality education, providing the best outcomes for every CSU student and for California’s communities and workforce. This united effort will not only protect our universities but also strengthen our shared commitment to fostering equity, student success and economic mobility across the state.