Two major forces are at play: Gov. Gavin Newsom scaled back his promise of increased financial support for Cal State, while university officials agreed to 5% salary increases earlier this year.
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Newsom’s May spending plans for Cal State, the UC and other state agencies are complex, prompting the Legislative Analyst’s Office Presidents of the 23 campuses at Cal State gathered in April to quantify what the more than $800 million budget shortfall would mean for student learning and hiring decisions. It was more of a thought exercise than an implementation plan. The presidents andno new state spending in the next two years — despite Newsom’s May plans. It also assumed workers would get raises in 2024-25, but not in 2025-26.
The April meeting also calculated a projected 2026-27 systemwide deficit of more than $200 million — the cost equivalent of 12,500 classes taught, 1,500 faculty or 1,100 managers, which represents a quarter of all the managers at Cal State.Cal State trustees in March learned that campuses cut or suspended 137 academic programs and other areas of study in 2024 — a huge jump compared to 2023 and 2022,.
A small glimmer of hope is that enrollment seems to be rebounding systemwide, which will generate more revenue for the system and help stanch the projected fiscal bleeding. The system enrolled the equivalent of 7,500 more full-time students this college year. By 2025-26, the system projects to grow its full-time enrollment by 4%, or nearly 14,000 — a change of fortune after Cal State experienced student declines the previous two years.
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