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Cal State System Faces $500 Million Budget Gap Under Newsom’s New Plan
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The California State University–Los Angeles campus on April 25, 2019. (Frederic J. Brown/AFP via Getty Images)
By Micaela Ricaforte
5/30/2024Updated: 5/30/2024

California State University is facing a budget gap of $500 million for the upcoming 2024-25 fiscal year, officials revealed at a trustee board meeting last week.

The state is also wrestling with an estimated $45 billion budget deficit for its fiscal year starting July 1.

Gov. Gavin Newsom’s May budget proposal would include a one-time funding reduction of $75 million to CSU for the upcoming fiscal year that Mr. Newsom promises to restore the following year.

The system—the state’s largest with 23 campuses enrolling more than 480,000 students— was also previously promised a 10 percent budget increase for the 2025-26 fiscal year but will now receive only 2 percent.

However, under the state’s proposed budget, CSU officials said they would also face a three-year operating deficit of $831 million through the 2025-26 school year–more than $500 million greater than what was estimated last September, l officials said at the meeting.

To address the financial crisis, CSU board officials said they are considering increasing tuition fees, implementing hiring freezes, and consolidating or eliminating underperforming programs.

They said they’re closely monitoring the situation and advocating for sustainable funding solutions to ensure the long-term viability of the system.

The shortfall comes on top of existing financial challenges, forcing the system to make difficult decisions and cutbacks.

In March, CSU officials told trustees at a board meeting that campuses had already cut or suspended more than 130 academic programs and areas of study due to budget constraints.

The additional $500 million deficit will likely exacerbate these challenges, according to trustee member Christopher J. Steinhauser, who said at the board meeting earlier this week, “We have to do less with less.”

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Micaela Ricaforte covers education in Southern California for The Epoch Times. In addition to writing, she is passionate about music, books, and coffee.

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