California State University students begin the year with budget cuts

California’s funding shortage is bad news for the California State University system, which kicks off its new academic year Monday in a $234 million deficit, mostly due to unfunded wage increases.

All 23 campuses are feeling the hit.

“Cal State LA is anticipating a $32.4 million deficit this year in our budget, which we are addressing through shared governance, conversations with students, faculty and staff,” said Cal State LA spokesperson Erik Hollins.

He said Cal State LA’s student headcount is down over 5% from the prior year and that’s led to a cut in class offerings of over 7%.

Some campuses are making cuts by leaving open positions unfilled.

“[Cal State Dominguez Hills] has taken steps to address our budget shortfall, which so far includes a 6% cut to operating budgets across all divisions as well as restrictions on hiring and non-essential travel for employees,” said CSU Dominguez Hills spokesperson Lilly McKibbin.

Top administrators warn that next year will be worse

CSU officials have warned campuses to brace themselves for more cuts — including reductions that will affect students directly — especially ift CSU campuses struggle to maintain and increase student enrollment.

“All divisions will need to develop plans to balance their budgets with a 12.4% cut,” Hollins said. “The scale is just too large to spare any division its share of the cuts. That is a matter of ongoing discussion with college deans, department chairs, and faculty.”

Despite the budget cuts, the chancellor is directing campuses to protect programs that increase graduation, protect students from sex discrimination, as well as programs to repatriate Native American cultural artifacts and human remains.

First Day on the CSU Fullerton campus in the fall of 2023

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Courtesy CSU Fullerton

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Flickr Creative Commons

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The chancellor’s office said the deficit is due to previously agreed upon wage increases and increasing costs elsewhere in the budget.

The chancellor’s office is focused on raising enrollment and keeping students from dropping out — a stable and growing enrollment means more tuition funds for campuses.

Officials say state cuts are expected to continue and are expected to start affecting students more directly next fiscal year. CSU officials warned at last month’s board of trustees meeting to expect a cut by Sacramento to the Middle Class Scholarship across the University of California, California State University, and California community college systems.

“The program provides scholarships to about 200,000 CSU undergrad and credential students to help cover the cost of attendance,” said Ryan Storm, CSU’s assistant vice chancellor for budget.

At the same meeting CSU’s chief financial officer said the deficits will likely affect class offerings and student support programs in about a year.

Student enrollment is a problem

Most CSU campuses have not been able to restore enrollment growth to pre-pandemic levels. By one account CSU’s enrollment dropped 6.5% in the previous three years. Fewer students means less money to university coffers from student tuition.

For its part, the union that represents CSU faculty, librarians, counselors, and coaches warned last spring of the effects on students of cutting mental health programs, for instance.