Senate subcommittee warns proposed cuts and deferrals threaten UC and CSU enrollment and operations

Senate Budget Subcommittee No. 1 on Education Chair Jared Laird opened a hearing on higher education funding by saying the governor's January budget recommends large base reductions and the deferral of multiyear compact funding for public higher education.

The University of California president and the California State University chancellor told the subcommittee that the magnitude of the proposed 8% reduction combined with deferred compact payments would force campuses to cut classes, reduce hires and scale back student services that support retention and graduation.

The chair framed the discussion as part of a larger fiscal problem. "Last year, the state faced significant fiscal challenges with having to solve for projected almost $40,000,000,000 deficit," he said, noting that the governor's January proposal recommends roughly $770,000,000 in base reductions for higher education. Jennifer Paciello of the Legislative Analyst's Office reported segment‑level figures: a roughly $300,000,000 reduction for CSU and a $272,000,000 reduction for UC under the governor's plan.

University leaders described impacts and recent…