2025-26 Budget Proposal Funds Compact to Allow the CSU to Proceed with Full Salary Steps Implementation

Gov. Gavin Newsom’s 2025–26 fiscal year budget proposal includes $252.3 million in ongoing General Fund that will allow the CSU to honor its contract agreement with CSUEU members to implement a full Steps salary structure this year.

Even though the budget proposal reduces 7.95% in ongoing general fund support for the CSU - approximately $375 million - the Governor sent an unmistakable message to CSU leadership that the University has the funding to proceed with a Steps scale where staff pay increases with each year of service.

Budget Impact on Salary Steps
CSUEU members’ contract specifies that salary steps placement would start in October 2025 unless state compact funding fell below $227 million. In his budget proposal, the Governor made sure it didn’t.

“The Administration maintains its commitment to the multi-year Compact Agreement, and the CSU will receive $252.3 million ongoing General Fund, representing a five-percent base increase in the fourth year of the Compact, though the 2025-26 amount is deferred to 2027-28,” according to the budget summary on higher education.

Under compacts negotiated between the Governor and the CSU (as well as the UC) in 2022, the state guaranteed 5 percent funding increases each year for five years. In exchange, the university systems agreed to increase in-state admissions and meet other goals.

What’s Next
The budget proposal is contingent on many uncertainties still to come. First, it’s only the first draft; over the next months, special interests and legislators will weigh in with counter proposals. Second, 60 percent of the CSU funding comes from the state. It is not known what federal funding or cuts may be coming under a new White House administration.

We have work to do to make sure CSU leadership keep their promise and fully fund a steps placement schedule this year. 

Our Union is scheduling town halls next week  to provide more information about the budget and what we can do to win the pay equity we deserve. 
Please use the following registration links:

Jan. 22: 12 Noon and 6 p.m.
Jan 23: 11 a.m.
Jan. 24: 12 Noon

Be sure to attend a session and be ready to take action to demand that the CSU “Keep the Promise” to its career staff who show up every day to support student success.

If you want to win Steps this year, the first thing you can do is activate your CSUEU membership!