Gov. Newsom unveils spending plan leaves CSU with big budget gap


California budget 2024: Gov. Newsom unveils spending plan amid looming budget deficit - YouTube

 

Budget Cuts Could Force Major Layoffs, Program Reductions Across CSU System


The California State University system faces potentially devastating cuts as Governor Gavin Newsom's proposed 2025-26 budget maintains a planned $375 million reduction in state funding, equivalent to an 8% cut that could impact tens of thousands of students.

The cuts would come at a particularly challenging time for the nation's largest public university system, which is already grappling with rising operational costs and declining enrollment at some campuses. CSU Chancellor Mildred García warned that the reduction "will negatively impact academic programming, student services, course offerings and the CSU workforce."

The magnitude of the cuts is stark: The $375 million reduction is equivalent to the funding needed to educate and support more than 36,000 full-time students, according to CSU budget documents. The impact is already being felt across multiple campuses:

- At Sonoma State University, administrators announced plans to lay off 46 faculty members, including tenured professors, and eliminate 23 degree programs affecting over 300 students. The university will also shut down its entire NCAA Division II athletics program.

- CSU Dominguez Hills recently laid off 32 support staff members

- San Francisco State University, which has lost nearly 6,000 students since 2019, declared a financial emergency in December after cutting $26 million from its budget this year

"These actions will have far-reaching consequences not only for the university and its students, but also for the broader community, our local economy and the ability of businesses and public institutions to recruit and retain a skilled workforce," wrote the Sonoma County Board of Supervisors in a letter to CSU leadership.

The cuts are part of broader reductions to California's public university systems, with the University of California also facing a $271 million decrease. State Senator John Laird called the reductions "untenable" and suggested they could effectively amount to a 10-12% cut when accounting for inflation and increased operating costs.

CSU officials are exploring various options to address the shortfall, including using one-time reserves, though these only amount to about 34 days of operating costs for the system. Without relief, universities may be forced to increase class sizes, reduce course offerings, and implement additional layoffs.

The Stark Numbers:

The analysis reveals a dramatic gap between CSU's budget request and the Governor's proposal for 2025-26:

  1. CSU Requested Budget:
    • $593.0 million increase for essential needs and priorities
    • Includes baseline commitments ($163.6M) and essential priorities ($429.4M)
  2. Governor's Proposed Changes:
    • $397 million base budget cut
    • $252.3 million in deferred compact funding
    • Total reduction of $649.3 million
  3. Total Budget Gap:
    • The difference between what CSU says it needs and what the Governor's plan provides is approximately $1.24 billion

This represents one of the largest gaps between requested and proposed funding in recent CSU history. The visualization shows not only the stark contrast between the request and proposal but also how the Governor's plan would result in an absolute reduction rather than just a smaller increase.

The CSU's request focused on maintaining current services and addressing critical needs like:

  • Student financial aid
  • Health premium increases
  • Maintenance and utilities
  • Faculty and staff compensation
  • Student success initiatives




Sources:

  • CSU Operating Budget Request 2025-26
  • Governor's Budget Summary 2025-26
  • LAist article on CSU Dominguez Hills and Sonoma layoffs
  • CalMatters coverage of budget impacts
  • Times of San Diego report on program cuts
  • Higher Ed Dive analysis of California university budgets
  • Inside Higher Ed coverage of January 2025 cuts
  • Governor Newsom's 2025-26 budget announcement


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