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CSU sees smaller base cut in May Revision but campuses still face localized stress
Summary
The governor’s May Revision reduced the proposed CSU base cut from about $375.2 million (7.95%) to roughly $143.8 million (about 3%). CSU officials said the smaller cut helps but several campuses remain financially strained and leaders are using hiring freezes, attrition and other measures to limit student impacts.
The Senate Budget Subcommittee No. 1 on Education reviewed May Revision changes to the California State University system’s budget, including a narrower ongoing base reduction than the administration proposed in January.
Devin Mitchell of the Department of Finance said the May Revision revised the CSU base reduction to roughly $143.8 million ongoing, down from the $375.2 million figure first proposed, reflecting a roughly 3% reduction rather than the previously proposed 7.95%.
Chancellor’s Office representatives said the cut remains material. “While the reduction from 375 to about 144,000,000 is meaningful, it still represents a permanent 3% cut to our system,” a CSU speaker said. CSU officials told senators campuses are preparing constrained budgets using hiring freezes, delayed infrastructure investments, targeted reductions in course offerings and use of attrition and vacancy management to limit personnel impacts.
The chancellor’s office highlighted an uneven fiscal profile across CSU’s 23 campuses: about seven campuses are approaching serious fiscal stress and a smaller number have already had high‑profile controversies over emergency measures. System officials said the Chancellor’s Office would absorb some reductions to mitigate campus impacts and reiterated that long‑term growth will be difficult without reliable funding.
The Legislative Analyst’s Office said, after accounting for department changes, CSU core funding is expected to increase by roughly $321 million in 2025–26 relative to the January baseline because of targeted augmentations, retiree health and pension support and anticipated tuition revenue; LAO added CSU still expects a small shortfall because nondiscretionary costs likely exceed available funding.
Ending: Senators expressed a preference to eliminate the remaining 3% reduction and asked CSU leaders to work collaboratively on campus resiliency plans for financially stressed campuses; no formal budget action occurred at the hearing.
