myCSUSM
Budget FAQs
Below, you can find the answers to frequently asked questions on CSUSM’s budget status. We are committed to keeping our campus community informed and ensuring transparency throughout the budget planning process.
- What does the Governor’s 2025-26 state budget proposal mean for the CSUs and CSUSM?
The Budget Act of 2025 includes a $143.8 million reduction in base General Fund appropriation for the California State University (CSU), with restoration intended in 2026-27. CSUSM’s share of this reduction is $4.3 million.
Our campus received Compact funding for Years 1 through 3. However, in Year 4, the planned 2025–26 funding is intended to be deferred and spread over three years, with some provided as one-time funds.
- How do state policies impact the university budget?The CSU system is vulnerable to state budget cuts because it is dependent on annual tax revenues and the priorities of the Governor and Legislature. Other parts of California’s public education system, including the K-12 and community colleges, have financial protection through Prop 98, which ensures a fixed percentage of the state’s budget. The CSU, however, is treated as a discretionary budget item.
- What is the CSU Compact?
The CSU Compact is a multi-year funding agreement established in 2022 between the California State University System and Governor Newsom’s administration to provide stable financial support and promote long-term planning. Under the Compact, the state commits to annual 5% increases in recurring funding for the CSU’s operating budget through 2026-27. It prioritizes shared goals for closing equity gaps, promoting student success, and increasing access to an affordable CSU education.
- What steps has CSUSM already taken in response to the budget cuts?
CSUSM has implemented a process to ensure that campus voices were included through a series of World Café meetings. From there, ideas were gathered and evaluated – prioritizing high-impact, low-difficulty solutions such as the VSIP (Voluntary Separation Incentive Program) – in a consultative process with the President’s Budget Advisory Committee, the Academic Senate’s Budget and Long-Range Planning Committee (BLP), and Senior Leadership. To address the projected shortfall – from the budget cut and compact deferral – CSUSM assembled a thoughtful and responsible combination of savings:
- $5 million – VSIP savings
- $1 million – Pause of the technology refresh program
- $1 million – Additional World Café ideas (e.g., voluntary time base reductions, centralization, and shared services)
- $1 million – Benefits savings from frozen positions
- $500,000 – Software savings
- What is the financial impact of enrollment growth?
Enrollment growth is both an opportunity and a challenge. Growth has given our campus more of the resources that we need. Increasing enrollment in 2024-25 resulted in additional tuition revenue and dollars reallocated from other CSU campuses that lost enrollment. This additional revenue not only funded additional course sections but also many aspects of our operations, including salaries and benefits.
- Given the recent tuition increase of 6%, why don’t we have enough revenue to cover
the 2025-26 budget shortfall?
Despite a 6% increase in tuition, CSUSM is still facing a budget shortfall in 2025–26, primarily due to a 3% reduction in state funding coupled with significant increases in mandatory costs. Examples of these mandatory costs include utilities, insurance premiums, and health benefits. Additionally, the fourth year of the state compact—intended to cover increased costs for 2025–26—was not funded.
- Why can’t CSUSM use reserves to manage the budget cuts?
Reserves are not a recurring source of funding. Once this money is spent it is gone. Holding funds in reserve is essential to enable the university to respond to unforeseen events and contingencies. The CSU recommends reserve balances at levels to fund 3 to 6 months of operations. CSUSM and most CSU campuses currently fall short of this level.
- Why are we opening new buildings during this time?
CSUSM is currently building Black Oak Hall and Kwíila Dining and has already begun construction on the Integrated Science and Engineering Building (IS&E), along with preparations for a new Wellness and Recreation facility. The Black Oak Hall and Kwíila Dining project received the majority of its funding from state housing grants and will serve as a catalyst for the University’s transition from a commuter school to a first-choice destination. The IS&E project is primarily funded by the CSU and donors and will integrate emerging technologies and engineering with other science disciplines, serving as a gateway for innovation in high-tech, biotech, and life-science industry growth in North San Diego County. The Wellness and Recreation project was approved by students through a referendum to increase the recreation fee and has long been a student priority. All of these new buildings will enhance the student experience and boost enrollment, with no financial impact to CSUSM’s Operating Fund.
- How are budget decisions made at CSUSM?
The campus budget is developed through a shared governance process, with allocations and priorities shaped through Budget Open Forums, World Cafés, and BLP, and ultimately decided by the University Budget and Advisory Committee/Cabinet, which serves as the President’s primary budget and advisory body. The University Cabinet includes students, faculty, staff, and administrators. Final budget allocations and supporting information regularly updated and shared on the University Budget Office website
- Link to CSU Budget & Labor Agreements FAQ page.