CSU BUDGET/TUITION UPDATE: MARCH 2017

BUDGET
A Declining Commitment to the Master Plan:
The CSUs operating budget has two funding sources: the state general
fund and systemwide tuition. The state has an historic commitment to fund
the CSU as outlined by the California Master Plan for Higher Education CSUS BUDGET
established in 1960.
1996-1997
Over the last two-and-a-half decades, state support per student for the CSU
has declined while enrollment demands have dramatically increased. Today,
state funding per student remains thousands of dollars below 1990s levels. 18%
At the same time, the CSU is enrolling and graduating more students than
ever before.

State funding now covers about half of the CSUs operating costs, compared 82%
with 80 percent in the 1990s. This decades-long trend of underinvestment is
not sustainable.

The CSU is also doing more with less. State funding was cut by nearly $1
billion during the recession years. Although the funding was eventually 2006-2007
restored by 2016-17, the system now serves about 20,000 more students
than in 2007, despite having nearly the same funding levels.
32%
The 2017-18 Budget:
Increased state funding is critical as the CSU aims to meet Californias future
workforce needs. Without additional improvement, the state is on pace to fall
one million bachelors degrees short of what will be required by the future 68%
workforce of 2025.

The CSU trustees 2017-18 support budget requests an additional $324.9

million in state funding. The CSU cannot achieve its goals to improve student 2016-2017
achievement and meet the states workforce needs without additional
funding to offer more courses, hire more faculty and provide additional
academic and student support services. 44%
Governor Browns 2017-18 budget proposal released in January allocated
less than half of this, leaving a $168 million shortfall.
56%
The CSUs first priority is to advocate in Sacramento for fully-funding this
budget request. Until the final state budget is released in June, CSU leaders,
students, and stakeholders will be advocating this case with the governor
and state legislative leaders. State funding Tuition revenue

In the event that state allocation falls short of the trustees budget request,
the CSU must look at other options to fund the gap.
 CSU BUDGET/TUITION UPDATE: MARCH 2017

September January March Spring 2017 June July August

Initial proposal Information Action Advocacy Final Final CSU tuition Fall term
to student item item efforts amid state decision begins
leaders state decisions budget

TUITION FINANCIAL AID

In January, CSU trustees reviewed information about a tuition
increase in case the state does not fully-fund the budget request.
They will vote on the proposal during their March meeting. If
enacted, it would be the first tuition increase since 2010-11.
The proposed increase, not to exceed $270 for resident
undergraduates, would take annual tuition from $5,472 to $5,742.
Similar adjustments are proposed for non-resident tuition, as
well as graduate, doctoral, and teacher credential programs.
The increase could generate up to $77.5 million of net revenue,
one-third of which would be set aside for student financial
aid. This revenue would go to student success initiatives and
CSU campuses would be able to hire approximately 400 new
faculty members and offer an additional 3,000 of the most highly
demanded courses.
The proposed increase would not affect the CSUs neediest
students. Most CSU students with household incomes below
$70,000 do not pay tuition.
Eighty percent of all CSU students receive some form of
financial aid, including, grants, waivers, scholarships or
loansthis totaled more than $4 billion in financial assistance
in 2015-16.
Most CSU students do not even pay tuition. In 2015-16
nearly 63 percent of all undergraduatesmore than 255,000
studentshad their tuition fully covered by grants or waivers,
which do not need to be repaid.

TUITION INCREASE COVERED FOR ELIGIBLE STUDENTS

(Family Incomes $70,000 or Lower)

State Cal Grant State

Waivers Tuition Award University Grant

More than half all CSU students graduate with no debt. For those that do, debt is nearly one-third less than the statewide average
and half the national average.