CA Legislature Agrees on Budget

CSUEU members’ voices made a difference - but there's one more collective action we need to take to get the job done! 

The Senate and Assembly have agreed on a proposed state budget and will submit the plan to Gov. Gavin Newsom for negotiations. The Legislature’s proposal (AB 101 and SB 101) restores the pending 3% cut to the CSU and splits the deferral of Compact funding over two years.

This is good news and reflects the hard work CSUEU members have put in to advocate for full CSU funding since the Governor first proposed a whopping 8% funding cuts to the University. The Legislative budget is complicated as the state faces external challenges from the federal government which normally funds 40-45% of any state budget.

Highlights From the Legislative Budget:

• Restores the pending 3% cut to the CSU for 2025 but defers payment of $144 million to 2026-27 fiscal year.
• Improves the deferral of the 2025 Compact funding by splitting it into 2 years (pays 2% increase in 2026-27 and pays a 3% in 2028-29) and also provides a lump sum payment in 2027-28 of $252,255,000.
• Creates a state finance line of credit to support the CSU in 2025-26 for any cash flow challenges during the deferral period (a new item).
• Requires each enrollment-challenged campus to submit a strategic enrollment plan to the Chancellor by Dec. 31, 2025, and the Chancellor to submit the entire set of plans to the Legislature by March 1, 2026.

What We Can Do Now
The Assembly and Senate will vote on the budget measure Friday and Gov. Newsom has until June 30 to sign the budget. We’ve shared our important stories - why our work matters and is essential for student success.

It is now in the Governor’s hands and he needs to hear from us one last time!

Send Gov. Newsom an email right now to thank him for encouraging the CSU to keep its Compact commitments - and to urge him to work with the Legislature to provide the CSU the tools to maintain premiere campuses with a competitive workforce.