California State University (CSU) is currently navigating a budget shortfall that poses serious risks, including potential layoffs and cutbacks in academic programs. Despite having seen an increase in enrollment, San Jose State University is not immune to these financial pressures. This situation arises as the state government plans to reduce spending, leading to an expected budget cut of $400 million for CSU by next summer. Furthermore, the state is likely to delay over $250 million in previously promised funding.

The looming cuts could significantly impact CSU’s ability to enroll new students, offer salary increases for faculty and staff, and secure the additional funds needed to enhance graduation rates. At a recent public meeting, CSU’s Board of Trustees received a sobering financial briefing from senior officials, revealing a projected budget gap of $400 million to $800 million for the 2025-2026 academic year. This gap represents a considerable portion of CSU’s projected operating budget of $8.3 billion for next year.

Trustee Jack McGrory expressed deep concern about the implications for the university’s 500,000 students. “Everyone is discussing layoffs, and we need to confront these challenges on every level of the campus,” he stated.

The proposed $400 million reduction translates to funding that would typically support the education of 36,000 students. Last fall, the University of California admitted over 450,000 students. Documentation from the meeting highlighted that these budget cuts would particularly disadvantage the most vulnerable students, limiting their access to essential academic support, counseling services, and participation in various programs.

In a bid to mitigate the anticipated deficit, the CSU Board of Trustees has submitted budget requests to Governor Gavin Newsom. He is scheduled to announce his budget proposal for the upcoming fiscal year in January, with final negotiations set to occur in June.

Initially, Governor Newsom intended to impose budget cuts for CSU in the current fiscal year due to a multi-billion-dollar deficit. However, lawmakers postponed these proposed cuts by a year to allow the university some time to brace for potential reductions; there is hope that improvements in state revenue might prevent these cuts altogether. Nevertheless, CSU officials caution that any reductions could lead to severe consequences for students and staff, including larger class sizes, fewer course offerings, diminished student services, layoffs, and hiring freezes.

Some CSU campuses have already implemented layoffs this year or are planning to do so. This includes schools such as San Francisco, Sonoma, East Bay, and Monterey, where layoffs of lecturers have already taken place.

Even leaders at institutions with rising enrollment numbers acknowledge the struggle. Cynthia Teniente-Matson, President of San Jose State University, informed the board that her university has refrained from hiring new faculty for the last two years and has not filled non-faculty positions, resulting in a budget cut of $55 million.