California State University (CSU), the nation's largest public four-year university system, is grappling with a looming financial crisis as state officials propose a $375 million budget reduction for 2025-26.
The proposed 7.95% cut would leave the 23-campus system without funds for essential student services, mental health support, infrastructure maintenance, and employee compensation, according to CSU leaders who addressed the Board of Trustees on Wednesday.
"Cuts have consequences, and with a proposed cut of this magnitude those consequences will be stark, painful, heartbreaking," said CSU Chancellor Mildred García during the board meeting.
The impact is already visible across campuses. Sonoma State University recently announced the elimination of its entire athletic program, affecting 235 student athletes, along with cutting 23 degree programs including physics, economics, and philosophy. At Cal State LA, which faces a $32.4 million deficit, course offerings have been reduced significantly, with some departments seeing up to 70% fewer lecturers.
The CSU system, which serves over 450,000 students and produces 125,000 graduates annually, plays a key role in California's workforce development. Nearly half of its student population is Latino, with 46% classified as low-income and 30% being first-generation college students.
State Department of Finance spokesman H.D. Palmer emphasized that the reduction is being applied uniformly across all state agencies, not just higher education. However, CSU officials argue that continued cuts could severely impact their ability to serve as an economic engine for California.
The financial strain has already led to system-wide changes, with 73 degree programs suspended and 63 discontinued last year. Among the 23 campuses, 17 have reduced positions, resulting in a net loss of 823 jobs between 2023 and 2024.
CSU leaders are planning an advocacy campaign to oppose the cuts. As Trustee Douglas Faigin noted, "This is the biggest crisis that I've experienced since I've been on the board."
The final budget decisions await Governor Newsom's revised proposal in May, leaving thousands of students, faculty, and staff uncertain about the future of their educational institution.