Cal State Faces Potential $800 Million Budget Deficit

Projected state cuts and funding delays threaten to impact students, staff, and academic services across the CSU system.

California State University is anticipating nearly $400 million in state spending cuts next summer and a delay in over $250 million of promised state support.
The projected budget gap for the 2025-26 fiscal year ranges from $400 million to $800 million, jeopardizing enrollment growth, employee raises, and graduation rate improvements.
Cuts could lead to larger class sizes, reduced course offerings, diminished student services, layoffs, and hiring freezes, with the most vulnerable students being particularly affected.
Some campuses have already laid off workers or plan to, with hundreds of lecturer positions being slashed or reduced due to fewer class offerings.
The CSU system's reserves are insufficient to cover a large multi-year deficit, with only enough funds to sustain operations for about a month.