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$239.9M General Fund
This budgeted amount includes revenues from state funding and tuition, and covers all salaries, benefits, and other expenses.
$12.1M Deficit
Gov. Gavin Newsom’s 2025-26 budget proposal includes another cut to state funding for CSUs, totaling $375 million systemwide. This is what drove CSUDH’s recent layoff announcements.
$19M Cut So Far
Since 2023-24, CSUDH has cut $19 million from our budget in three separate phases, in response to increasing costs and declining revenues.
Understanding Our Budget
How We're Funded
The majority of our funds come from tuition payments and the state government, while our highest expenses are salaries and benefits. Click below to look deeper into our financial documents.
How We Got Here
Declining enrollment. The number of students at CSUDH has fallen precipitously since the COVID pandemic. Our students overwhelmingly come from communities hit hardest by the pandemic, and we still feel that impact years later.
State budget cuts. The governor has proposed an 8% cut for 2025-26 and delayed funding promised to the CSU system under an agreement made in 2022 to close equity gaps in the system.
Compensation increases. While well-deserved for staff and faculty, the compensation increases negotiated in 2023 raised labor costs across the CSU system, without identifying any funding source to pay for those raises.
Unfunded mandates. Recent state mandates required CSU campuses to bring in staff and expend resources on Title IX and NAGPRA work, but no accompanying funding was made available.
Learn More and Share Your Voice
Location: Innovation and Instruction Building and online.
This summit is an opportunity to come together as a community and begin to engage in the work of shaping a shared vision for the future of enrollment at CSUDH. To that end, this will not be the last conversation. We will use it to catalyze a second Enrollment Summit, a lunch and learn series, and ongoing conversations. RSVP here.
The CSUDH Executive Cabinet met with members of the Academic Senate executive committee over Zoom on Friday, Feb. 14, 2025, to share information and answer questions about the university budget. CFA leadership was invited but chose not to attend.
Vice President of Administration and Finance Deborah Wallace made a presentation on CSUDH’s operating reserve balance. She noted a large portion of the funds designated as reserves on the university’s balance sheet are earmarked for certain uses, such as the State University Grant program, which provides need-based awards to eligible students, or loan repayments for construction of the Innovation and Instruction building. Wallace said only $6 million in the university’s reserve fund is unrestricted, which is less than one month’s payroll for the campus.
Professor Rama Malladi asked about why loan repayments come from the CSUDH general fund, and whether the university expects the enrollment declines that are contributing to the budget crisis to be temporary or permanent. Wallace noted that there were no other consistent funding sources for repayment of the I&I loan, because other funds are unpredictable. She also stated that cuts to the university’s base budget (the amount apportioned by the Chancellor’s Office and based on enrollment targets) are permanent revisions.
Professor Kate Esposito called on the cabinet to communicate in more real-world terms the decisions and plans that have been made regarding budget cuts and other measures, noting that financial presentations may not make this clear. Professor Laura Talamante echoed that concern and asked for clearer explanation of the role that structures like the University Budget Committee and Academic Affairs Budget Council have or can play in decision-making. She also asked about how the proposals to reimagine the university fit in with the Strategic Plan, which was the result of campuswide engagement and collaboration, and only launched three years ago. President Parham shared that the strategic plan remains a guiding document for the university and is a consistent encapsulation of our values and goals no matter CSUDH’s size or budget.
Vice President of Student Affairs William Franklin shared information about the university’s engagement with Huron Consultant Group, which is reviewing CSUDH’s operations with the goal of identifying opportunities for CSUDH to achieve institutional resilience. He noted several reasons for hiring a consultant: for their ability to provide an unbiased assessment of the university’s strengths and weaknesses; to maximize existing resources, allowing staff and faculty to focus on their core responsibilities; and to take advantage of their expertise and analytics in evaluating an institution’s performance and outcomes. Chief of Staff Justin Gammage reviewed Huron’s qualifications and noted the consultants are contracted to bring in observations and analysis for CSUDH leadership, not to make decisions for the university.
Vice President of Information Technology Chris Manriquez provided a description of the Committee for Reimagining the Future, an internal working group creating a process for input and collaborative planning around program prioritization and organizational structure at CSUDH, in parallel to and at times in partnership with the Huron engagement. Manriquez and Academic Senate Chair Sheela Pawar will co-chair the committee, whose membership will come from each division at the university and include staff, faculty, and student representation. While the committee will engage the CSUDH community along the same timeline as Huron’s work, it will also review and consider whether to align with, extend, or propose alternatives to opportunities identified by Huron.
President Parham reiterated his intention to keep this process a collaborative one, citing his discomfort with taking an authoritarian approach, where a president or chief executive simply chooses where to spend and cut, and issues orders to those below. Professor Talamante asked the cabinet to provide more specificity in communications to the campus community about what budget cuts have already been made and whether specific programs have been considered for elimination or not. She also mentioned the need for new organizational charts and an explanation of how responsibilities will be covered in light of recent layoffs.
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On Feb. 21, the executive cabinet also met with leaders from campus unions Academic Professionals of California, Union of American Physicians and Dentists, Teamsters, and State University Police Association, to discuss these issues. VP Wallace provided the same presentation as at the Feb. 14 meeting, and VP Manriquez presented on the Committee for Reimagining the Future. Juana Reyes, steward from APC, asked whether there would be representatives from campus unions among the committee membership, noting that a staff representative on the committee may not have the same perspective as a union representative. Dr. Parham acknowledged her concern and said it would be taken into consideration.
Saul Soria, steward from APC, asked how CSUDH can justify the cost of hiring an outside consultant to review our operations when the university is facing a large budget deficit. Dr. Parham shared that other CSU campuses are working with Huron through the Chancellor’s Office, providing a cost savings to the university. Additionally, he noted the value of bringing in a consultant to provide unbiased observations and expertise that has been developed from helping other institutions through similar processes in the past.
Daryl Evans, steward for APC, shared that he has heard rumors that the CSU may consider merging campuses as a cost-saving measure. Dr. Parham shared that it is true that Cal Maritime Academy will be merging with Cal Poly San Luis Obispo, as was announced last year. However, no other CSU campus is facing the same serious challenges that Cal Maritime has gone through, including a 50% decline in enrollment to less than 1,000 students. Dr. Parham also indicated that CSUDH is in a much stronger position than Cal Maritime or several other campuses, and there is no proposal to merge CSUDH with another campus, and that he would strongly oppose any idea toward doing so.
Salvador Valdez, steward for APC, asked whether the university has a revised deficit projection rather than the initial $12.1 million, based on the governor’s proposed budget, now that layoffs have taken place. Dr. Parham said that the cuts that have been made were in response to that proposal, but we still do not know what the final state budget will be until it is approved by the Legislature in June.
Jennifer Manqueros, steward for APC, asked whether there would be more layoffs in the future. Dr. Parham stated that university leaders have based targets for funding reduction on the budget proposal from the governor’s office, but also shared that there could be additional factors impacting the university’s budget, including compensation increases or changes to enrollment. “Right now, we just don’t know,” he said.
Financial Records
FAQs
The governor’s budget proposal for FY25-26 includes what amounts to a $12.1 million cut to CSUDH’s funding. After already reducing our spending by $19 million over the last two fiscal years, as well as non-retaining some MPP employees last year, the university was forced to lay off staff in order to balance our budget.
CSUDH engaged in numerous rounds of budget reductions, eliminating $19 million in spending over FY23-24 and FY24-25. This included the non-retention of some MPP positions. Unfortunately, the university could not reduce spending significantly enough in response to the governor’s proposed budget cut without laying off staff as well.
No faculty have been laid off, but some part-time and adjunct faculty did not have their contracts renewed, as the university made adjustments to instructional offerings.
There are no current plans to eliminate any departments or divisions, but as we work to create a sustainable path forward for CSUDH, we may be forced to entertain all options.
CSUDH does not have a strict freeze in place, but we have implemented an additional level of review and approval for hiring at this time.
The university has already used some of our reserve balance to help resolve budget shortfalls earlier in this process. Most of CSUDH’s reserve funding is earmarked for other uses and cannot be used except for its original designation. For instance, a large portion of the reserve balance is money for the State University Grant, a form of financial aid provided by the State of California for students. That amount will be distributed to students in the form of aid and cannot be used in other ways. Once specifically designated funds are accounted for, there is not enough reserve balance to make up the budget shortfall. Additionally, it is not prudent to spend reserve funds on ongoing expenses; once reserve funds are spent, they are gone.
The tuition increase approved by the Board of Trustees in 2023 took effect for the first time in the current school year. While this did result in additional revenue for CSUDH, and for every CSU campus, that amount was smaller than the budget cuts and other mandated cost increases, such as compensation and health benefits, resulting in a net reduction to revenues.
Huron Consulting Group has a master enabling agreement with the CSU system to provide consulting services on institutional operations and resiliency. Huron will meet with key university stakeholders and review financial and operational documentation, with the goal of providing insights and analysis to CSUDH so that leadership can make well-informed decisions.
The situation at Sonoma State University is far more dire than at CSUDH. That institution had a deficit nearly twice as large as at CSUDH, with less than half as many enrolled students. Enrollment at SSU also fell by 38% over the last ten years, the largest drop in the CSU system. Those factors contributed to the decision to cut academic programs and eliminate all athletics at SSU.
Yes. California State University Los Angeles had a deficit of $32.4 million this fiscal year. San Francisco State announced a “financial emergency” in December while anticipating $25 million in budget cuts. Cal Poly San Luis Obispo anticipates a $24.2 million budget cut. Cal State East Bay eliminated MPP positions and still faces a budget deficit. At Sonoma State University, academic departments and the entire Athletics program were eliminated.
Many factors contribute to variations in enrollment at different CSU campuses. These include population trends, whether a campus is “impacted” or not, and admissions decisions that ripple from one campus to others. As one example, CSUDH has traditionally enrolled more community college transfer students than First-Time, First-Year students, but community college enrollment fell significantly during the pandemic and subsequent years, which lowered the number of transfer students during that time.
CSUDH is looking at ways to enhance revenue-generating activities, such as on-campus housing and other auxiliary functions, as well as exploring public-private partnerships and other relationships with external partners.