UC and CSU To Face Nearly $1 Billion Budget Cut Without Federal Assistance

Governor Newsom and the State Legislature Make Difficult Cuts and Payment Deferrals While Trying to Protect the State’s Most Vulnerable Students

Governor Newsom and the Legislature made difficult budget decisions amid the grim economic outlook of the nation brought on by COVID-19. Calls for the federal government to provide additional emergency funding have not yet been answered, and as a result, California’s colleges and universities may be forced to balance their budgets on the backs of talented, qualified students.

“Without federal funds, tuition could be raised, course offerings and enrollment reduced, and student support services cut at a time when families and the California economy can least afford it,” said Michele Siqueiros, president of the Campaign for College Opportunity.

A total of nearly $1 billion in trigger cuts are on the table if the fedes fail to come through: $470 million at the University of California (UC) and $500 million at the California State University (CSU). Although California’s Community Colleges do not face trigger cuts, they will have to contend with over $700 million in deferrals forcing campuses to rely on reserves, borrowing, and fundraising to stave off cuts. “Each of the 72 districts and 114 campuses are in a different economic situation with different levels of reserves and outside revenue sources. If campuses cannot support their operations during the deferral period, we might as well call it a budget cut,” added Siqueiros. Read more