Governor's budget proposes 8% cut impacting University of California's funding and services

The California State Assembly's Assembly Budget Subcommittee No. 3 on Education Finance convened on April 22, 2025, to discuss the implications of the governor's proposed budget for the University of California (UC) system. Central to the meeting was the governor's plan to implement an 8% cut to the UC's base budget, which translates to a reduction of approximately $396.6 million. This budget proposal has raised significant concerns among UC officials and stakeholders regarding its potential impact on student services and educational quality.

The budget maintains a multi-year compact with the UC, promising ongoing general fund support of $240.8 million. However, it defers payments related to nonresident student replacements and other funding, which could exacerbate financial challenges for the UC campuses. UC officials highlighted that the proposed cuts would lead to larger class sizes, fewer course offerings, and diminished student support services, ultimately affecting graduation rates and student success.

UC San Diego Chancellor Pradeep Khosla emphasized the severity of the cuts, noting that the campus faces a $73 million budget gap due to the proposed reductions and funding delays. He expressed concern that these financial constraints would hinder the university's ability to provide quality education and support to California students, particularly as the campus has already made strides in increasing enrollment and graduation rates.

The Legislative Analyst's Office (LAO) recommended rejecting the proposed deferrals, arguing that they could lead to further budget shortfalls without a clear plan for funding. The LAO pointed out that while other state agencies faced smaller cuts, the UC system's reductions were disproportionately large, raising questions about equity in budget allocations.

In response to the proposed budget, UC officials outlined potential cost-cutting measures, including hiring freezes and reductions in discretionary spending. However, they cautioned that these measures would likely lead to negative outcomes for students, such as increased wait times for courses and reduced access to essential services.

The meeting concluded with a call for collaboration among legislators to address the budget challenges facing the UC system. Stakeholders emphasized the importance of maintaining adequate funding to ensure that the UC continues to serve as a vital educational resource for California's future leaders. As the budget process unfolds, the implications of these proposed cuts will be closely monitored by both university officials and the broader community.