CSU gives out thousands of raises despite $1 billion budget deficit
The largest university system in the nation has decided to increase salaries despite a budget deficit and an enrollment drop.
New estimates suggest that the California State University system (CSU) will face a $1 billion budget gap across its 23 locations during the 2025-2026 academic year.
The largest university system in the nation has decided to increase salaries despite a budget deficit and an enrollment drop.
New estimates suggest that the California State University system (CSU) will face a $1 billion budget gap across its 23 locations during the 2025-2026 academic year.
During an address directed at campus presidents, CSU Board Chair Justin Clarke Jr. noted the necessity of cutting back spending in the midst of significant financial constraints.
“Presidents, we understand that you’re going to have to make some hard decisions and, within your campus communities and your general communities, you’re going to be criticized,” Clarke stated. “Understand that we’re behind you in terms of making the hard decisions.”
The grim news comes in the wake of a significant decline in overall enrollment in recent years. Fall enrollment decreased from more than 485,000 in 2020 to just under 455,000 in 2023.
[RELATED: CSU awards student scholarships for promoting ‘antiracism’ and ‘Black excellence’]
Amid significant financial duress, CSU agreed in February to increase the salaries of all faculty members by 10 percent.
Sharon Elise, associate vice president of racial and social justice of the California Faculty Association, expressed hope that the salary increase would improve student experiences by reducing instances of racism.
“We will continue advocating against management’s self-defeating austerity policies, affordability and access for students, and combatting anti-Black racism to create campuses that serve all of us,” Elise said. “We know that some members had strong concerns about the process and questions about the result. We will only be successful if we’re working together to continue building a CSU that empowers students and provides work environments that support faculty and staff.”
During a CSU Board of Trustees meeting in July, Chief Financial Officer Steve Relyea expressed concerns that student experiences may be affected adversely by the raises, noting that funding for student programs may need to be reduced in order to accommodate a larger payroll.
“We anticipate negative impacts on academic offerings and student support services,” Relyea commented. “The funding that we’re receiving, while it’s more, is still not sufficient to cover the increased cost on our current operations, and at this point universities will likely have to redirect significant dollars from existing university budgets to cover employee compensation commitments.”
Campus Reform has reached out to CSU, the CSU Board of Trustees, and Sonoma State University for comment. This story will be updated accordingly.