University of California Faces $125 Million in Cuts Amid State Budget Deficit

Students walk near Royce Hall on the campus of UCLA in Los Angeles on April 23, 2012. Kevork Djansezian/Getty Images

The University of California said anticipated state budget cuts would slash its annual revenue by $125 million for the upcoming 2024-25 fiscal year.

The state is wrestling with an estimated $28 billion budget deficit for the fiscal year starting July 1. University officials confirmed the cuts—which amount to about 2.5 percent of its annual state revenue—during a regents board meeting May 13.

The one-time cut will be restored to the system during the 2025-26 school year under Mr. Newsom’s plan to reconcile the current deficit.

The UC system, which has 10 campuses across the state, would also get a 2 percent budget increase in 2025-26 under the governor’s proposal—less than the 10 percent increase he pledged the system in January.

State funds accounted for about 11 percent of UC’s estimated $47 billion operating budget in the 2022-23 school year, according to a budget summary from the system.

Mr. Newsom released his revised state budget proposal for the upcoming fiscal year May 10.

Similarly, Cal State University—the state’s other public university system with 23 campuses across the state—will see a one-time funding reduction of $75 million in 2024-25 that Mr. Newsom is promising to restore the following year.

CSU was also promised a 10 percent budget increase for the 2025-26 fiscal year but will now also receive only a 2 percent increase.

State funding makes up 55 percent of CSU’s operating costs, according to a 2024-25 budget summary from CSU.

The state Legislature now has until June 15 to approve the governor’s budget, which must be signed by July 1.