The Brief

California State University says it’s short $2.3 billion, a staggering budget gap that’s grown sharply since the system first revealed two years ago that it didn’t have the money to properly educate its students.

How the nation’s largest public four-year university system will generate that revenue is anyone’s guess, as annual tuition increases of 6% that kicked in last year and an influx of state taxpayer support have been insufficient to pay for Cal State’s growing labor, energy and education expenses.

The details of that cumulative gap were unveiled at the bimonthly Cal State Board of Trustees meeting this week.

More state support is increasingly unlikely, as California budget experts forecast multi-billion-dollar budget shortfalls worsened by severe federal cuts to major public safety-net programs, like Medicaid, and possible cuts to financial aid.

The funding shortfall, which doesn’t include billions of dollars in building maintenance backlogs, is a large portion of the system’s roughly $9 billion operating budget.

“This growing gap demonstrates why we need immediate action to achieve financial sustainability,” said Jeni Kitchell, an assistant vice chancellor for finance of Cal State. “We cannot sustain our current level of funding, especially while operating from a position of underfunding.”

The system fought off a $375 million proposed cut to its state allocation this year, instead receiving a $144 million cut — a 3% reduction in its state support. Lawmakers are offering Cal State a zero-interest loan to make up for that cut and promised to restore the money next year.

Already Cal State has cut more than 1,200 staff positions across the system in the past two years, reduced student support staff by 7% and terminated 1,400 courses during a period of ongoing budget deficits.

Without an infusion of cash, the system will have to shift money from some of its initiatives — including improving graduation rates — just to cover mandatory costs, such as health care, insurance, utilities, financial aid and agreed-upon union raises, Cal State leaders said. In such a scenario, system documents show, campuses may have to continue the cost-cutting they’ve implemented recently, which has included layoffs, reducing job categories, cutting courses and leaving job vacancies unfilled.

This year’s budget gap is $164 million.

State promises of more funding ‘violated’

Some Cal State trustees said they are frustrated that Gov. Gavin Newsom delayed his promises of five years of increasing state support, which was supposed to total more than $1 billion. Only three years of that compact have been funded to date; the fourth, which was supposed to kick in this year, will instead be spread out between 2026 and 2028, lawmakers and Newsom decided in the most recent state budget deal. Lawmakers didn’t signal a fifth year of compact funding, though they may in next year’s budget deal.

“We were promised a five-year compact,” said Jack McGrory, a Cal State trustee. He argued that Cal State trustees approved 10% or more in salary increases for workers the past two years based on those promises. “We did rely on the promise, and the promise was violated, and that's the story that we have to tell, and it's unfortunate, and it's going to put our relationships with the unions and our employees in a really bad situation,” McGrory added.

If the compact money or the $144 million state spending cut aren’t restored, Cal State won’t be able to grow student enrollment at a time when more high school graduates are completing the courses needed to be eligible for Cal State admissions. The system currently enrolls 460,000 students.

“How do we enroll more students if we do not have the resources to hire more faculty, to provide more staff support,” add mental health counselors and more free-food programs for Cal State’s largely low-income students, asked Patrick Lenz, the interim chief financial officer of Cal State.

Cal State has been trying to slow its spending. The chancellor’s office is cutting its budget by $18 million, or 8%, trustees learned at this week’s meeting. Several campuses in the Bay Area are consolidating their administrative offices to lower expenses. And last fall the system approved the merging of two campuses to avoid millions of dollars in new spending.

Unions say they’re owed raises

Meanwhile, thousands of employees are in a dispute with Cal State leadership over whether their union contracts guarantee them raises this year. The contracts say that if lawmakers fully fund the Cal State system, some of its workers get raises.

Cal State’s leadership says that because state lawmakers reduced the system’s funding by $144 million, they can’t give raises. Unions say because the state is allowing Cal State to borrow that money as a zero-interest loan, the system is fully funded. Cal State says borrowing money isn’t the same as being fully funded by the state. System leaders also lack confidence that the state will restore the $144 million cut next year. If the money doesn’t appear next year, Cal State would be stuck with a loan that adds to their budget crisis.

At least two state lawmakers are siding with unions. “Damn it, we are here to send a clear message. Do you hear us? Because guess what, if they don't get what they deserve, we're going to shut the s— down,” said Assemblymember Mike Gipson, a Democrat from Gardena, at a press conference outside the system’s headquarters Tuesday morning. He was addressing Cal State’s chancellor and other leaders who were assembled yards away for their meeting.

“With everything going on with ICE, we don't need to add additional pressure on not only the students but the faculty here. They're already traumatized. Our state is already traumatized,” Gipson added.

Assemblymember Al Muratsuchi, a Democrat from Torrance, said he stands in “solidarity” with union workers to “to call on the chancellor and the trustees to keep your promise.”

The California State University Employees Union, with 35,000 clerical, custodial and student assistant members, says that the raises they think they’re owed are worth $30 million more than what Cal State plans to give them.

Erin Foote, a vice president for organizing for the union, said in an interview that Cal State leaders should partner with the union in pushing for legislation or a ballot measure to ensure Cal State and University of California have guaranteed funding. “It costs millions of dollars to run a revenue measure, and we would need the CSU to be our partner,” Foote said.

Cal State’s cash reserves are at $760 million — enough to operate the system for a month.

How Cal State’s budget shortfall grew

How did Cal State’s cumulative funding gap grow from $1.5 billion to $2.3 billion since 2023? Chancellor’s office staff point to these latest budget realities:

• $143.8 million: the amount of Cal State’s cut in state support this year
• $310.5 million: the growth in labor costs
• $322 million: the budget shortfalls at Cal State’s campuses the past three years

In that same time, Cal State’s revenue grew, but not by enough to cover the increase in costs. State funding that goes to the system’s operating budget — the corpus of money to pay for its education mission — grew from $4.5 billion to $4.87 billion last year. State support is Cal State’s largest source of funding for its operations. And the system’s tuition revenue jumped from $3.24 billion to $3.53 billion. Combined, those are increases of almost $700 million, according to the system’s financial transparency portal.

Next year is projected to be more of the same fiscal hurt.

Cal State budget officials say that the system will incur $365 million in new, mandatory costs in 2026-27, including $63 million in increased staff health care premiums and about $160 million in wage increases. That amount doesn’t include growing enrollment by the 3,500 students that the compact requires, which would cost $56 million.

For Cal State to afford the new, mandatory expenses, the state would need to return the 3% cut and a portion of the compact funding the system was supposed to get this year. None of that is a sure bet.

The funding they can rely on is new tuition revenue: students will be charged another 6% increase next fall.

This story first appeared on The LA Local.

Since 1977, Richard Santillan has been to every Opening Day game at Dodger Stadium. 

“The tradition goes from my father, to me, to my children and grandchildren. Some of my best memories are with my father and children here at Dodger Stadium,” Santillan told The LA Local, smiling under the shade of palm trees near the entrance to the ballpark Wednesday morning. He was there to protest the team less than 24 hours before Opening Day.

Santillan, like countless other loyal Dodgers fans, is grappling with his fan identity over the team’s decision to accept an invitation to the White House and owner Mark Walter’s ties to ICE detention facilities.

More than 30 people joined Santillan on Wednesday morning for a press conference held near 1000 Vin Scully Drive to convey a message directly to the team. 

“We are demanding the Dodgers stop participating in funding of inhumane treatment of families and do not go to the White House to celebrate with the criminal in chief,” Evelyn Escatiola told the crowd. “Together, we have the power to make a change.”

Escatiola, a former dean of East Los Angeles College and longtime community organizer, urged fans to flex their economic power by “letting the Dodgers know that we do not support repression.”

Jorge “Coqui” Rodriguez, a lifelong Dodgers fan, spoke to the crowd and called on Dodgers ownership to divest from immigration detention centers owned and operated by GEO Group and CoreCivic.

Jorge Coqui H Rodriguez speaks at a press conference outside Dodger Stadium on March 25, 2026, to demand the Dodgers not to visit the White House following their 2025 World Series win.

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J.W. Hendricks

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The LA Local

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In a phone interview a day before the protest, Rodriguez told The LA Local he did not want the Dodgers using his “cheve” or beer money to fund detention centers. 

“They can’t take our parking money, our cacahuate money, our cheve money, our Dodger Dog money and invest those funds into corporations that are imprisoning people. It’s wrong,” Rodriguez said. 

Rodriguez considers the Dodgers one of the most racially diverse teams and said the players need to support fans at a time when heightened immigration enforcement has become more common across L.A.

The team’s 2025’s visit to the White House drew ire from the largely Latino fan base, citing the Trump administration’s ongoing attacks on immigrants. 

In June, the team came under further scrutiny when rumors swirled online that federal immigration agents were using the stadium’s parking, which immigration authorities later denied in statements posted on social media accounts.

The team again came under fire after not releasing a statement on the impacts of ICE raids on its mostly Latino fan base at the height of immigration enforcement last summer. The team later agreed to invest $1 million to support families affected by immigration enforcement.

When he learned the Dodgers were pledging only $1 million to families in need, Rodriguez called the amount a  “slap in the face.” 

“These guys just bought the Lakers for billions of dollars and they give a million dollars to fight for legal services? That’s a joke,” Rodriguez said. “They need to have a moral backbone and not be investing in those companies.”

According to reporting from the Los Angeles Times, former Dodgers pitcher Clayton Kershawsaid last week that he is looking forward to the trip.

“I went when President [Joe] Biden was in office. I’m going to go when President [Donald] Trump is in office,” Kershaw said. “To me, it’s just about getting to go to the White House. You don’t get that opportunity every day, so I’m excited to go.”

The Dodgers have yet to announce when their planned visit will take place. 

Santillan sometimes laments his decision to give up his season tickets in protest of the team. His connection to the stadium and the memories he has made there with family and friends will last a lifetime, he said. On Thursday, he will uphold his tradition and be there for the first pitch of the season, but with a heavy heart.

“It’s a family tradition, but the Dodgers have a lot of work to do,” he said.

A local favorite mom-and-pop bookshop in Eagle Rock is facing displacement due to a steep rent hike. The owners say theirs is just one of several small businesses along Eagle Rock Boulevard struggling to keep up with lease increases.

Over the past 19 years, many in the neighborhood have come to love READ Books for its eclectic collection of used titles and shop dog Florence.

Co-owner Jeremy Kaplan said it’s been a delight to grow with the community over the years.

“Like seeing kids come back in, who were in grade school and now they’re in college,” Kaplan said.

But the building where Kaplan and wife Debbie rent was recently sold, and the rent increased by more than 130% to $2,805 a month, Kaplan said. He told LAist it was an increase his small business simply could not absorb.

Kaplan said he originally was given 30 days notice of the rent increase. After some research, assistance from Councilmember Ysabel Jurado’s office and some pro-bono legal help, Kaplan said he pushed back and got the 90-day notice he’s afforded by state law.

California Senate Bill 1103 requires landlords to give businesses with five or less employees 90 days’ notice for rent increases exceeding 10%, among other protections.

Systems Real Estate, the property management company, did not immediately respond to LAist’s request for comment.

What can small businesses do? 

Nadia Segura, directing attorney of the Small Business Program at pro bono legal aid non-profit Bet Tzedek said California law does not currently allow for rent control for commercial tenancies.

Outside of the protections under SB 1103, Segura said small businesses like READ Books don’t have much other recourse. And even then, commercial landlords are not required to inform their tenants of their protections under the law.

“There’s still a lot of people that don’t know about SB 1103. And then it’s very sad that they tell them they have these rent increases and within a month they have to leave,” Segura said.

She said her group is seeing steep rent hikes like this for commercial tenants across the city.

“We are seeing this even more with the World Cup coming up, the Olympics coming up. And I will say it was very sad to see that also after the wildfires,” Segura said.

Part of Bet Tzedek’s ongoing work is to advocate for small businesses, working with landlords who are increasing rents to see if they are willing to give business owners longer leases that lock in rents.

What’s next 

After READ Books posted about their situation on social media, commenters chimed in to express their outrage and love for the little shop.

While he looks for a new spot, Kaplan says he’s forming a coalition of local businesses and activist groups to see what can be done to help other small businesses facing similar displacement. He wants to address the displacement issue for businesses like his, which have made Eagle Rock the distinctive neighborhood that it is today.

Owl Talk, a longtime Eagle Rock staple selling clothing and accessories in a unit in the same building as READ Books, is facing a “more than double” rent increase, according to a post on their Instagram account.

Kaplan said he’s been in touch with the office of state Assemblywoman Jessica Caloza and wants to explore the possibility of introducing legislation to set up protections for small businesses like his, including rent-control measures or a vacancy tax for landlords. Kaplan said he also reached out to the office of state Sen. Maria Durazo.

By his count, Kaplan said there are about a dozen businesses within surrounding blocks that are at risk of closing their doors or have shuttered due to rent increases or other struggles.

When READ Books was founded during the Great Recession, Kaplan said he knew it was a longshot to open a bookstore at the same time so many were struggling to stay in business.

“It was kind of interesting to be doing something that neighborhoods needed. That was important to me growing up, that was important to my children, that was important to my wife growing up,” Kaplan said.

“And then somebody comes in and says, ‘We’re gonna over double your rent.”

Topline:

Frozen budget: Most of the city’s Bureau of Street Lighting budget comes from an assessment that people who own property illuminated by lights pay on their county property tax bill. The amount people pay depends on the kind of property they own and how much they benefit from lighting. A typical single-family home currently pays $53 annually, and in total, the assessments bring in about $45 million annually for the city to repair and maintain streetlights. Changing the amount the Bureau of Street Lighting gets from the assessment requires a vote among property owners who benefit from the lights.

Ballots: L.A. City Council’s vote gives city staff the green light to prepare and send out those ballots. Miguel Sangalang, who oversees the bureau, said at a committee meeting earlier this month that he expects to send out ballots by April 17. Notices about the ballots will be sent out prior to the ballots themselves.

Near unanimous vote: L.A. City Councilmember Monica Rodriguez was the only “No” vote Tuesday, saying she wanted to see a more current strategic plan for the bureau. Sangalang said the bureau developed a plan in 2022 that lays out how money will be spent. Councilmember Imelda Padilla was absent for the vote.

Vote count: Votes will be weighted according to the assessment amount. Basically, the more you’re asked to pay yearly to maintain streetlights, the more your vote will count. Ballots received before June 2 will be tabulated by the L.A. City Clerk.

How much more money: According to a report, the amount needed in assessments from property owners to meet the repair and maintenance needs of the city’s streetlighting in the next fiscal year is nearly $112 million.

Use of the money: Sangalang said at a March 11 committee meeting that the extra funds would be used to double the number of staff to handle repairs and procure solar streetlights, which don’t face the threat of copper wire theft. That would all potentially reduce the time it takes to repair simple fixes down to a week. Currently, city residents wait for months to see broken streetlights repaired. The assessment would come with a three-year auditing mechanism.