May 2024

Universities

May Revision Proposes to Reduce UC Funding in 2024-25, Approach for 2025-26 Is Needlessly Complex

General Fund (Dollars in Millions)

2024-25
Governor's Budget, UC Funding $4,740.4
May Revision base reductiona -125.0
Other May Revision reductionsb -26.5
May Revision Total $4,588.9
Change from prior year -2.6%
2025-26
Base restorationa $125.0
Base reductiona -376.9
Compact base increases   
     Year 3 deferred increasec  227.8
     Year 4 increase  240.8
Nonresident enrollment reduction pland   
     Year 3 deferred increasec  31.0
     Year 4 increase  31.0
One-time back paymentc 258.8
May Revision Total $5,126.5
Change from prior yeare 11.7%
      
a The May Revision proposes a 7.95 percent reduction to state operations for most state departments. For the universities, the May Revision proposes implementing part of their associated reduction in 2024-25, with the full reduction implemented in 2025-26. For the universities, the reduction is applied to their main General Fund appropriation, which supports administration as well as campus operations. The amount shown for 2025-26 is an estimate provided by the Department of Finance, reflecting 7.95 percent of CSU's 2024-25 base funding as of Governor's budget.
b The May Revision proposes a $13.5 million ongoing reduction to UC graduate medical education and a $13 million ongoing reduction to UC Labor Centers.
c In addition to the ongoing increases proposed for 2025-26, the Governor proposes one-time back payments to cover funding deferred in 2024-25.
d State law directs UC to reduce nonresident undergraduate enrollment at three high-demand campuses and replace with resident undergraduates. The state has been backfilling UC for the loss of nonresident supplemental tuition.
e Under the May Revision, ongoing General Fund for UC would increase by $154 million (3.3 percent) in 2025-26.