Gov. Gavin Newsom's $227.2 billion budget proposal for 2021-22 includes a 3 percent increase in funding for the CSU. Our Union will continue working with legislators to ensure the University spends state and federal monies responsibly and with accountability. We will also advocate for the rehire of CSU support staff laid off last year from campuses that cited lack of funds or lack of work.
There are four priorities the Governor is proposing to enact by the end of February: extend an eviction moratorium for renters (the legislature also wants to provide some financial relief); provide payments and loans to small businesses; provide $600 payments to individuals based on income; and expand COVID-19 vaccinations. No options to raise new state revenue are being proposed by the Governor due to the unanticipated influx of additional state revenue.
According to the state’s Legislative Analyst Office, the $26 billion tax revenue of predominantly one-time funds means next year’s state spending commitments will still outweigh projected revenue, resulting in a small operating deficit in the 2021-22 budget that will grow to $17 billion by 2025.
Facing a $54 billion budget deficit as a result of COVID-19, the state unexpectedly received a substantial increase in capital gains taxes as the earnings gap between the wealthy and poor has continued to grow.
Budget trigger cuts that took place in October will still be dependent on receiving additional federal monies before being backfilled. It is anticipated that a new federal COVID-19 relief bill will be enacted early this year.
The CSU reports receiving $564 million in 2020-21 federal CARES Act funding – with approximately half of these funds used to provide emergency grants to students. The COVID-19 relief bill enacted in late December 2020 includes additional federal funding to support state higher education, potentially providing a total of $2.9 billion. It is unknown at this time how these funds will be distributed among the state’s higher education segments.
Governor Newsom's three percent increase to the CSU comes with the expectation that undergraduate tuition and fee levels remain unchanged:
- $111.5 million – three percent – increase in ongoing base funding to support CSU operational costs. Includes expectations that the CSU will maintain existing levels of resident undergraduate tuition and fees, reduce student equity gaps, commit to aligning student learning objectives with workforce needs, adopt online course and program policies, and create a new dual admissions pathway.
- $15 million increase in ongoing base funding to provide students access to electronic devices and high-speed internet connectivity, and to increase student mental health resources.
- $15 million increase in ongoing base funding to sustain and expand support for the Basic Needs Initiative component of the CSU’s Graduation Initiative 2025 to support students experiencing food and housing insecurity, financial distress, and other challenges that could disrupt their academic success.
- $2 million increase in ongoing funding to align online courses by 2023-24 with the Canvas platform used by community colleges.
- $1 million increase in ongoing funding to increase FTE enrollment by 115 students at CSU Stanislaus.
- $246,000 increase in ongoing funding for cost increases to provide continued broadband access.
- $175 million increase in one-time funds for deferred maintenance.
- $50 million increase in one-time funds for student financial assistance ($30 million), faculty professional development ($10 million), and to fund the CSU Monterey Bay Computing Talent Initiative ($10 million).
The deadline for the Legislature to approve the budget is June 15.
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