CSU Eyes Cuts and Freezes Amid Budget Woes

California State University campuses have begun taking cost-cutting measures in anticipation of budget cuts. These actions follow the governor’s proposed delay of $240.2 million in CSU funding increases for the 2024-25 budget year.

“The governor’s administration has supported and continues to signal future support for the CSU and its compact,” Steve Relyea, executive vice chancellor and chief financial officer, said. “But the proposed deferral raises significant concerns, and we must proceed with fiscal prudence and caution.” 

As a result, “already many campuses have started consolidating programs, freezing hiring, eliminating positions, deferring maintenance projects and restricting purchases,” EdSource’s Ashley A. Smith reports

San Francisco State University President Lynn Mahoney described the actions as “painful.” Right now, there’s a hiring freeze. The campus will begin a “voluntary separation program” this spring.

CSU campuses are already dealing with a $138 million shortfall. From 2024-2026, it is expected to grow to $184 million.

As the governor and the Legislature negotiate a final budget deal, CSU officials want them to know that the situation is grim – perhaps more than they realize.