Facing a substantial budget deficit, the California State University (CSU) system is proposing a tuition increase for the 2024-2025 academic year and beyond. The proposed "multi-year tuition proposal," as described on the CSU website, aims to create a sustainable revenue stream to address the system's financial challenges. While CSU officials emphasize their commitment to securing full state funding, they assert this tuition increase is necessary to bridge the existing gap.
Although Governor Gavin Newsom has pledged a 5% base budget increase, reports indicate this will be insufficient to cover CSU's rising expenses. The proposed tuition hike is projected to generate $148 million in the first year, with a portion allocated to the State University Grant (SUG) program, which provides financial aid to low-income students. Over five years, the proposal anticipates generating $840 million.
For full-time undergraduate students, tuition would rise by $342 in the first year, from $5,742 to $6,084. Subsequent years would see a 6% annual increase, ultimately reaching $7,682 by the 2028-2029 academic year. The plan includes a provision for trustees to review these increases every five years.
Reports suggest the CSU system faces a $1.5 billion budget gap. CSU officials maintain that current funding sources cover only 85% of necessary expenses for student services, academic support, and instruction. They aim to ensure the university remains accessible despite the proposed increase, emphasizing their commitment to affordability. Currently, 60% of CSU's 460,000 students receive full tuition coverage through grants, scholarships, and waivers, and officials state this will continue.
While some student groups are planning protests against the proposed increase, CSU officials defend the measure as crucial for the system's financial stability. Trustees are expected to vote on the proposal in September, with the tuition increases potentially taking effect in the fall of 2024.
