May 2024

Universities

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

General Fund (Dollars in Millions)

  2024-25
Governor's Budget, CSU Fundinga $4,988.8
May Revision base reductionb -75.0
May Revision increasec 5.5
May Revision Total $4,919.3
Change from prior year -1.4%
  2025-26
Base restorationb $75.0
Base reductionb -396.6
Compact base increases  
Year 3 deferred increased 240.2
Year 4 increase 252.3
One-time back paymentd 240.2
May Revision Total $5,330.5
Change from prior yeare 8.4%
   
a Reflects CSU's main budget appropriation, excluding retiree health benefits and certain CalPERS cost adjustments.
b 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.
c The May Revision includes $5.5 million to implement recent legislation that expanded eligibility for a tuition fee waiver applying primarily to the dependents of certain veterans.
d In addition to the ongoing increases proposed for 2025-26, the Governor proposes one-time back payments to cover funding deferred in 2024-25.
e Under the May Revision, ongoing General Fund for CSU would increase by $96 million (1.9 percent) in 2025-26.