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California State University says May Revision’s 3% base cut would strain campuses; seeks further restoration
Summary
CSU officials told the Senate subcommittee that the May Revision reduces an 8% proposed base cut to roughly 3% (about $143.8 million), but campuses remain under pressure from inflation, labor costs and enrollment shifts and will try to protect academic core functions.
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California State University officials told the Senate Budget Subcommittee No. 1 on Education that the governor’s May Revision narrows a proposed ongoing base reduction from 7.95% to roughly 3% (about $143.8 million ongoing), but CSU leadership said the system will still face a meaningful permanent reduction that campuses will address through hiring freezes, delayed investments and other cost‑saving steps.
Devin Mitchell of the Department of Finance summarized the May Revision: the original governor’s proposal would have reduced CSU’s base by about $375.2 million; the revised reduction is about $143.8 million ongoing. Natalie Gonzales of the Legislative Analyst’s Office said the change, combined with targeted augmentations for retiree health and pensions and anticipated tuition revenue, means CSU’s core funding could increase by $321 million in 2025–26, which would reduce the programmatic impact compared with January’s proposal.
Shirley Deh (Chancellor’s Office) said campuses are preparing for constrained budgets, using vacancy management, attrition and contingency planning to preserve the academic core and minimize impacts on students. Deh said some smaller campuses are disproportionately stressed — Sonoma State, San Francisco State, Cal State East Bay, Monterey Bay and others — and local actions could include targeting administrative reductions to avoid cuts to instructional programs when possible. Committee members pressed CSU representatives on enrollment trends, noting CSU has seen recent growth in freshman classes, and on the role of administration vs. campus cuts.
CSU said it remains committed to protecting faculty and students and to working with the Legislature and the administration on targeted solutions for campuses under severe financial stress. The subcommittee did not take action on the item; members signaled a preference to continue negotiations to reduce or eliminate reductions where possible.
