Here’s What You Should Know about the Governor’s Proposal for Increased CSU Funding and the Budget Process

Governor Gavin Newsom released his state budget proposal on January 9, which includes some initial good news for the CSU. We are optimistic about our advocacy to grow the budget for our 22-campus system! We also know that we will still need to advocate with state lawmakers to ensure the proposed increases remain in the approved budget, to be finalized by June of this year.

Some highlights:  

• Newsom’s January budget proposal for 2026-27 includes $5.6 billion from the state General Fund (To put things into perspective, in 2025-26, the CSU received $5.4 billion from the state General Fund.). This budget proposal outlines an additional $365.7 million in new ongoing funding for the CSU. The funding reflects payments of the multi-year compact, an agreement the CSU and the Newsom administration made in 2022 to invest in the system and work toward goals such as student success.  

• The budget also addresses the $144 million one-time loan from the state to the CSU, giving the CSU an additional year to pay back the loan.  

• Newsom’s proposal also maintains the planned one-time deferral of the 2025-26 fourth-year compact payment of $252.3 million to 2027-28.  

In 2025-26, state funds made up approximately 60% of the CSU’s operating revenues. The other 40%, or $3.4 billion, came from gross tuition and other fees. These revenues, totaling nearly $8.5 billion, were then used to cover operating costs. 

The upcoming budget still requires our advocacy because it could change between now and the second half of June; in June, the governor and legislative leaders reach a deal on the budget package before the new state fiscal year begins July 1. State law requires the governor to release the May Revision to the budget proposal, on or before May 14. The legislature and Newsom will then negotiate a budget before the new fiscal year begins on July 1. In August, legislators work on budget revisions. The Assembly and Senate vote on the budget revisions and send them to the governor, who signs the changes into law in September or October

We want to thank the governor for proposing the CSU funding increase, and to all the legislators who have worked tirelessly to advocate for the importance of public higher education. We know our members and CFA’s Advocacy and Political Strategy Department lobbied hard, provided testimonies at public hearings, and did outreach to our colleagues about our funding concerns.

We call on the governor and the legislators to maintain the proposed new ongoing CSU funding as the state budget process continues. Funding the CSU has never been more critical. Investing in the CSU is an investment in our economy and the 22 campuses provide pathways for economically disadvantaged students to graduate into well-paying jobs.

Additionally, our members and union siblings will hold CSU management accountable to ensure that our current and future funding is spent wisely. We will not accept any excuses claiming there is no money in the CSU to fund instruction, programs, and preserve faculty and staff jobs. We’ll be reaching out as the process moves forward to call on your legislators to reject any cuts to funding.

The proposed funding is also key as we continue bargaining for our next contract. Given this increase in the CSU budget, we will fight even harder for our proposals that ensure: 1) compensation keeps pace with the cost of living in California and 2) all faculty receive at least 10% of the chancellor’s base salary.

We will keep you informed as the budget process continues. We will continue to push for a CSU that is equitable, inclusive, and just for everyone.