Newsom’s Revised Budget Maintains 5 Percent Funding Raises for UC, CSU Systems to Boost Graduation Rate, Enrollment

Students pass through Sather Gate of the college campus at the University of California–Berkeley, in a file photo. David A. Litman/Shutterstock

Gov. Gavin Newsom is maintaining his pledge to give another year of funding increases to California’s two university systems amid a projected $32 billion state budget shortfall.

In a revised 2023–24 state budget—presented on May 12—Newsom kept intact his plan to give both the University of California (UC) and California State University (CSU) systems a 5 percent boost in funding, amounting to $216 million for UC and $227 million for CSU.

The increases fulfill a pledge Newsom made last year to give both systems five percent annual budget increases for the next five years if they worked toward improving graduation and enrollment rates, particularly among California residents.

The increases come as the state reported an additional expected $9.5 billion shortfall last week—up from $22.5 billion in January.

California Gov. Gavin Newsom speaks at California State University–Long Beach, in Long Beach, Calif., on March 3, 2021. John Fredricks/The Epoch Times

Previously, Newsom called the universities the “conveyor belt of talent” for the state.

“Despite a shortfall, we’re seeing a five percent increase in the base support of UC and CSU. We are fulfilling that commitment. We are not backing away from that,” Newsom said when he presented the state’s initial budget proposal in January. “This is a partnership to advance some efforts to address with much more intensity the need to get more Californians enrolled.”

To maintain his commitment, the governor has shifted costs in other areas of the higher education budget—including student housing, campus expansion, and clean energy projects—to be now covered by UC and CSU-issued bonds.

Additionally, the May revision halved the proposed one-time increase of $200 million for the state’s community college system to focus on enrollment strategies.

The University of California–Los Angeles is seen in Westwood, Calif., on Jan. 22, 2018. Joyce Kuo/The Epoch Times

Jolene Koester, CSU’s interim chancellor said in a May 12 statement that the system is thankful for the governor’s continued support.

“By maintaining the commitments of the multi-year compact, the administration has demonstrated its belief in the CSU’s mission and the transformative power of higher education for Californians from all backgrounds,” she said.

UC President Michael Drake said the funding boost will help maintain California’s economy.

“This budget reflects our strong partnership with the governor and his recognition of the university’s role in maintaining the state’s economic competitiveness and solving California’s most urgent issues. This level of funding is particularly extraordinary given the many competing priorities the governor must balance this year,” said Drake in a May 12 statement.

In January, Drake said the extra funding would be used to “make critical investments” that would expand enrollment and hire more faculty.

Additionally, he said, funds will be used to reduce nonresident undergraduate enrollment and replace those seats with students from California at UC’s Berkeley, San Diego, and Los Angeles campuses.

University of California–Irvine, in Irvine, Calif., on Sept. 25, 2020. John Fredricks/The Epoch Times

Of the 230,400 undergraduate students enrolled systemwide in Fall 2022, 83 percent were California residents, according to UC enrollment data.

CSU data shows 96 percent of its 404,800 CSU students were also California residents as of last fall.

The details of the budget will likely change in the coming weeks as lawmakers negotiate with the governor before the budget is finalized on June 15 and goes into effect on July 1.