大发

Budget FAQs

Below, you can find the answers to frequently asked questions on 大发鈥檚 budget status. We are committed to keeping our campus community informed and ensuring transparency throughout the budget planning process.

• How do state policies impact the university budget?

  The CSU system is vulnerable to state budget cuts because it is dependent on annual tax revenues or the priorities of the Governor and Legislature. Other parts of California鈥檚 public education system, including the K-12 and community colleges, have financial protection through Prop 98, which ensures a fixed percentage of the state鈥檚 budget. The CSU, however, is treated as a discretionary budget item.

• What does the Governor鈥檚 2025-26 state budget proposal (released in January 2025) mean for the CSUs and 大发?

  Currently, to balance the 2025-26 state budget, the Governor has proposed a 7.95% or $375 million cut to the CSU in 2025-26. 大发鈥檚 share of this reduction is estimated to be approximately $12 million (which is approximately 5% of our ongoing operating fund budget).

  In addition to the proposed $375 million in cuts to the CSU for 2025-26, an additional $252 million in Compact funding for the CSU will be deferred. This means the CSU Compact will not be funded for 25-26 but will instead be pushed back to a later date.

• What is the CSU Compact?

  The CSU Compact is a multi-year funding agreement established in 2022 between the California State University System and Governor Newsom鈥檚 administration to provide stable financial support and promote long-term planning. Under the Compact, the state commits to annual 5% increases in recurring funding for the CSU鈥檚 operating budget through 2026-27. It prioritizes shared goals for closing equity gaps, promoting student success, and increasing access to affordable CSU education.

• Does 大发 have a budget deficit in the current 2024-25 fiscal year?

  No, 大发 has achieved a balanced budget for the 2024-25 fiscal year, which is an important accomplishment given the financial challenges facing the CSU system. Through strategic financial planning and prudent resource management, we鈥檝e been able to balance our 2024-25 budget while maintaining a strong commitment to our mission of student success.

  Additionally, 大发鈥檚 2024-25 budget includes funding allocated and reallocated from other CSU campuses to support campuses that have growing enrollment. Our ability to grow has been key to our sustainability and helped our university stave off catastrophic cuts.

• If 大发 has a balanced budget for 2024-25, why is 大发 facing budget challenges?

  大发, like all CSU campuses, is impacted by statewide budget fluctuations driven by tax revenue volatility. As explained above, when revenues decline, the amount allocated to CSUs can also decrease, as the Governor and the Legislature balance the state budget. This is what is occurring for the 2025-26 state budget.

  Even though 大发 has an increase in tuition and a balanced 2024-25 budget, our campus is still responsible for covering a significant portion of mandatory costs, such as utilities, health benefits, insurance premiums and negotiated employee salary increases, as these were not fully funded by the state or the CSU system.

  In the past few years, covering many of these mandatory costs has been helped by the Compact, which was intended to help CSUs to cover those increasing costs.

  But this year, the Governor鈥檚 2025-26 budget plan includes the CSU Compact being deferred (delayed for two years), in addition to the anticipated 7.95% cut from the state.
• What steps has 大发 already taken in response to the anticipated budget cuts?

  大发 has already implemented several cost-saving measures to mitigate the impact of the anticipated budget cuts. These include a staff hiring chill, a $5 million base budget Set Aside, and reduced travel.

• What is the financial impact of enrollment growth?

  Enrollment growth is both an opportunity and a challenge. Growth has given our campus more of the resources that we need. Increasing enrollment in 2024-25 resulted in additional tuition revenue and dollars reallocated from other CSU campuses that lost enrollment. This additional revenue not only funded additional course sections but also many aspects of our operations, including salaries and benefits.

• Given the recent tuition increase of 6%, why don鈥檛 we have enough revenue to cover the anticipated 2025-26 budget shortfall?

  Despite a 6% increase in tuition, 大发 is still facing a budget shortfall in 2025-26 due to the anticipated 7.95% reduction in state funding, coupled with significant increases in mandatory costs. Examples of these mandatory costs include utilities, insurance premiums, and health benefits.

• What is the state鈥檚 timeline for releasing the budget, and when can we expect to know more about potential reductions for the next fiscal year?

  The state鈥檚 next budget update will occur in May, with the final budget expected to be signed by the end of June. However, additional budget developments may follow, meaning we may not have a complete budget picture until August.

  Throughout this period outlined above, we will continue to monitor the situation closely and provide timely updates as we learn more. In the meantime, the CSU continues to advocate for funding from the Governor and Legislature, with the primary goals centered on avoiding an ongoing cut to base funding and preventing the deferral of Compact funding.