The Brief

Half a billion dollars. That’s how much more California State University’s budget gap will grow in two years under Gov. Gavin Newsom’s proposed spending plan for next year, a fiscal chasm that may prompt hiring freezes, raid precious reserves and bring larger class sizes and fewer courses.

“We have to do less with less,” said Cal State trustee member Christopher J. Steinhauser. “We are going to have fewer programs, fewer positions. And anyone listening to this meeting, if they think that we can do this without doing that, they’re really kidding themselves.”

Senior finance officers from Cal State’s chancellor’s office debuted the sobering figures at last week’s board of trustees meeting. The forecasted deficit could change — legislators and Newsom have until late June to finalize a state budget that could include more money for the university.

Protecting Cal State, community college and University of California ongoing funding from cuts “wherever possible” is a priority, said David Alvarez, a Democratic assemblymember from Chula Vista and chair of Assembly’s budget subcommittee on education, last week.

“We got to stick with the commitments we’re making to the students of California in the budget,” added Greg Wallis, a Republican assemblymember from Rancho Mirage, at the same hearing.

But if Newsom’s May budget update becomes law, Cal State would face a three-year operating deficit of $831 million through 2025-26 — more than $500 million greater than what was estimated last September, said Ryan Storm, an assistant vice chancellor at Cal State overseeing the system’s finances, at a trustees meeting last week.

Budget math

The yawning gap is the result of two forces: Newsom heavily scaling back his promises of growing financial support for Cal State due to the state’s multibillion-dollar deficit and ever-increasing labor costs fueled by recent 5% pay hikes to much of the system’s roughly 60,000 unionized workers.

Other expenses include nearly $80 million in higher health care premiums to provide insurance to its employees in 2024-25.

Newsom’s May spending plans for Cal State, the UC and other state agencies are complex, prompting the Legislative Analyst’s Office to call them “opaque and unnecessarily complicated.”

After a mix of cuts in 2024-25 and far less new spending in 2025-26 than initially promised, Cal State would see new state revenues that are $470 million less than they anticipated last fall, according to summary tables Storm showed the trustees. A promise to backfill faculty raises to end a strike earlier this year added roughly $30 million to the system’s budget gap.

Cal State was already projecting a three-year budget gap of more than $300 million last September. That was even with the assumption of nearly $500 million more in state support through 2026 and roughly $200 million more in new tuition revenue after the board approved tuition hikes of 34% across five years starting this fall.

Half a billion dollars is equivalent to the entire operating budget of San Diego State University, among the system’s largest campuses.

Campus strategies

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 and system leadership assumed no 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.

Campuses are considering increasing class sizes, reducing the number of available courses to reflect student demand and bringing down the number of part-time faculty and lecturers — actions that some campuses undertook this spring to close a combined $138 million budget gap. Other potential cost-cutting measures include leaving various positions unfilled, not replacing staff and faculty who retire and early-retirement programs at some campuses.

So far the system is not recommending layoffs, but it expects the various hiring freezes and unfilled vacancies will lead to “a reduction of about 450 faculty and staff positions through 25-26,” Storm said last week.

The campuses also intend to use more than $500 million in reserves through 2025-26, depleting 22% of the system’s one-time funds intended for emergencies.

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.

Effect on classes

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, when only a combined 47 were cut or put on pause. This occurred “in light of changing enrollment patterns, workforce trends, and resource constraints,” staff wrote to the trustees. The number of new programs is also down. Campuses regularly create additional academic offerings in response to new industries and business trends. In 2024, central office staff were projecting 30 new programs — below the average of about 60 in each of the past two years.

Assembly budget staff reported last week that Cal State officials warn “that timely services for students could lessen and class sizes could grow in the next two years” if the system receives less funding than anticipated.

In January, when campuses were planning for a smaller budget gap in 2024-25, Long Beach State’s president, Jane Close Conoley, told CalMatters that it was planning to address its then-projected roughly $10 million deficit in various ways:

• Not replacing its usual churn of 30 to 35 faculty retirements a year, savings of roughly $5 million
• Not filling open staff positions — savings of roughly $2 million to $2.5 million. 
• Travel freezes, putting off purchases of equipment and pulling from reserves were other options.

In other instances, professors who’ve been running labs or research projects may be asked to drop those efforts and teach classes.

“So, another way we save money is to say, ‘It’s a great idea, but no, you have to teach,’” Conoley said.

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.

The system is also expecting one-time state money of $240 million to ride out the next few years, Storm said, part of a promise that Newsom made in January and affirmed in May.

But some campuses may see even less funding next year when administrators begin rerouting millions of dollars from campuses with declining enrollment to those that are growing — a plan conceived early last year. Less money could further impair the ability of campuses to attract new students, some in the system fear.

An employee of Los Angeles County’s Office of Emergency Management has sued his employer, alleging he was retaliated against for making whistleblower complaints about the response to the deadly Eaton Fire.

Nicholas Vaquero, an associate director in the Office of Emergency Management, alleges that officials leading the office failed to properly staff the response to the fire, which killed at least 19 people and burned thousands of homes and businesses in January 2025.

He also alleges the county’s emergency alerts were inadequate and that it submitted fraudulent data in order to receive FEMA reimbursement. Vaquero says in the suit that he used official county whistleblower channels to raise his concerns, in addition to speaking to OEM’s top two officials, Director Kevin McGowan and Deputy Director Leslie Luke.

Vaquero’s lawyers and the county declined to comment on the substance of the lawsuit. “L.A. County is going to address the allegations in court,” spokesperson Elizabeth Marcellino wrote in a statement to LAist.

LAist previously reported on Vaquero’s whistleblower complaint, in which he alleged that a now-retired employee with “a long history of sleeping on the job” was put in charge of emergency workers sending evacuation alerts and was asleep during critical moments of the first night of the Eaton Fire, when many of the deaths and much of the devastation occurred.

In the lawsuit, Vaquero alleges he has faced retaliation after raising his concerns, including being excluded from meetings he previously was a part of and being treated with hostility by the department’s leadership, among other things.

The complaint comes after county leadership launched a three-year restructuring of the Office of Emergency Management, which includes working to add staff and to conduct regular training for all staff on emergency alert software.

An after-action report from the McChrystal Group highlighted that the emergency management office was severely short-staffed during the fire. The department, which serves 10 million people, had a staff of 37 people at the time the fires broke out. Meanwhile, New York City has a population of 8.5 million and an emergency management staff of about 200 people, the report noted.

For the last three years, the record store and music venue Healing Force of the Universe has been operating on a sleepy street corner not far from Pasadena City College. Nearby businesses include a shoe repair store, a nail salon and several auto shops.

“We're kind of in a dead corner,” owner Austin Manuel said. “No offense if anybody lives here, but not a very foot-trafficked area, kind of a hard place to have a store.”

In spite of the location, Manuel said Healing Force has become a home away from home for musicians and music fans. One of them is Bobby Bradford, a jazz trumpet legend who lost his house and personal archive in the Eaton Fire. He performs regularly at the venue. (Healing Force has also partnered with LAist on fire recovery events.)

Its current location is set to close this month, but Manuel and his team are already raising funds to cover a move to another space: G-Son Studios in Atwater Village. The repurposed ballroom was the Beastie Boys' home base when they recorded their classic albums Check Your Head and Ill Communication. Run-DMC and Biz Markie stopped by at one point, and Beck also laid down tracks for his album Odelay there.

Inside Healing Force's space in Pasadena.

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The vibe

Healing Force sells records, of course, but these days it’s more of a nighttime performance space. Manuel said he wants people to feel comfortable striking up conversations after a show.

“I grew up in the church in the South, and I was like, ‘How do I design this so that it feels like a Southern church lady could come in here and feel welcome?’" Manuel said. “ I didn't want it to be too cool.  I wanted it to feel kind of suburban in a way.”

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Though the name might call to mind a cult slogan — and Manuel said they lean into that aesthetic on purpose — it’s actually a reference to the 1970 album Music Is the Healing Force of the Universe by saxophonist Albert Ayler.

At the venue, “people can kind of get … into a meditative zone,” Manuel said. “After the [January 2025] fires, it felt so good to come back together in this room and feel the healing of community.”

Healing Force's stage setup.

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The performances

The shows Healing Force puts on share a common thread: They’re meant to promote peace and relaxation, as well as deep, careful listening on the hi-fi sound system. But they’re an eclectic mix of genres. On one night, you might see L.A. spiritual jazz band Phi-Psonics, who turned a residency at the venue into a live album, Expanding to One.

On another night, you might catch a spaced-out electronic set, an up-and-coming singer-songwriter or a group of session musicians who’ve played with the likes of Paul Simon, Elton John and Lucinda Williams.

About the fundraiser

With the new space on Glendale Boulevard, Manuel said, Healing Force would triple its capacity for concerts, get a bar space and be closer to other venues in Northeast L.A.

“If 1,000 people gave $25, we would get there,” Manuel said – though he also said most people have been giving more.

You can read more about the fundraiser and donate at Healing Force’s GoFundMe.

See the Pasadena space before it closes

The venue is still open at 1200 E. Walnut Street and is holding events through this Halloween weekend. You can see their events calendar on their website.

The racist DNA of Jim Crow discrimination may be embedded in your housing documents.

The language in housing documents that restricts sale or use of a property only to a person of the white race is called a “restrictive covenant,” and in California the practice goes back to the 19th century and continued into the mid-20th century. While housing discrimination persists, the practice was found unconstitutional in 1948.

California counties are reporting mixed progress in meeting the demands of a 2021 law to excise the language from property records.

According to Sylvia Manzo, deputy recorder in the Orange County Clerk-Recorder’s office, the county finished the job in March of this year, removing racist language from more than 27,000 property documents with the help of computer software.

This 1924 property document from Bakersfield includes racist language limiting use of the property in question to people of "the white or Caucasian race."

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L.A. County is far from done. It says that with the help of an outside company hired in 2024, 50 million pages will be examined yearly, which would take about 10 years to finish the job.

Public agencies could use the public’s help.

Language examples

Here’s a 1924 example from a property in Bakersfield. The text reads, “That the lands herein conveyed shall never, at any time, be sold to or rented to or occupied by any person not of the white or Caucasian race.”

Or this language from a 1936 document relating to a Costa Mesa property: “That said premises shall not be sold, conveyed, rented, or leased to, or occupied by any person of African, Mexican, or Asiatic descent.”

How to get it taken out

The Restrictive Covenant Modification Form is at the heart of the effort to remove the racist language from housing documents. Each county has its own process. Some charge a fee; others don’t. Some require a notary certification for the signature; others don’t.

L.A. County:

Registrar-Recorder officials recommend these steps:

• Highlight or underline the unlawful provision on the recorded document
• Complete the Restrictive Covenant Modification Form
• Submit the form and the recorded document by email: RCM@rrcc.lacounty.gov or in person at the Norwalk headquarters at 12400 Imperial Highway in Norwalk
• Mail instructions are here.

Orange County:

The Orange County spokesperson says there may be some properties not caught by its software and urges the public to report them. Here’s the form

Riverside County:

Here’s the Riverside County form

San Bernardino County:

Here’s the San Bernardino County form

San Diego County:

Here’s the San Diego County form

Santa Barbara County:

Here’s the Santa Barbara County form

Ignoring the racist language in property documents, some say, reinforces the legacy of segregation, while taking steps to remove restrictive covenant language is a way individuals and organizations can repudiate policies that sought to discriminate.