January 2026

Universities

Comparing Three Budget Packages for CSU

(In Millions)

  Governor's Plan   LAO Alternative: High End   LAO Alternative: Low End
  2026-27 2027-28 2028-29   2026-27 2027-28 2028-29   2026-27 2027-28 2028-29
General Fund                      
Ongoing base increasea $265 $265 $265   $109 $109 $109        
2 percent ongoing base increase (for Year 4 of compact) 101 101 101                
Resident enrollment growth         12 12 12        
Retiree health and pension adjustments 43 43 43   43 43 43   $43 $43 $43
One-time back payment (for Year 4 of compact)   252                  
Retire deferralb   144       144          
3 percent ongoing base increase (for Year 4 of compact)     151                
Restore ongoing base 144 144 144   144 144 144   144 144 144
Subtotal ($553) ($949) ($704)   ($308) ($452) ($308)   ($187) ($187) ($187)
Tuition Revenue                      
Ongoing base increasec $201 $201 $201   $201 $201 $201   $201 $201 $201
Totald $754 $1,150 $905   $509 $653 $509   $388 $388 $388
Difference from Governor's Plan        -$245 -$497 -$396   -$366 -$762 -$517
Total General Fund savings over period       -$1,138   -$1,645
                       
a Governor's plan funds a 5 percent General Fund base increase. LAO "High End" alternative funds a 3.78 percent base increase (tied to the state and local government price index) to total ongoing core funding. LAO "Low End" alternative funds no General Fund base increase. To date, no plan has been presented indicating how any base General Fund increase provided in 2026-27 would be sustained in 2027-28 given the projected General Fund deficit that year.
b LAO recommends retiring this deferral as soon as possible. For display purposes, we score it as being retired in 2027-28.
c All three scenarios assume CSU raises its tuition charges in 2026-27. CSU estimates it will generate $201 million in additional tuition revenue in 2026-27.
d In 2026-27, Governor's plan equates to an 8.1 percent increase in total ongoing core funding, compared to 5.4 percent and 4.2 percent increases for the two LAO alternatives, respectively. The historical ten-year average annual growth rate in CSU's ongoing core funding is 4.1 percent.