The University of California has announced that it is facing significant budget cuts due to anticipated state budget reductions. These cuts are expected to decrease the university’s annual revenue by $125 million for the 2024-25 fiscal year. The state is grappling with a $28 billion budget deficit for the upcoming fiscal year starting on July 1.
During a regents board meeting on May 13, university officials confirmed that the budget cuts would amount to approximately 2.5 percent of the university’s annual state revenue. However, there is a plan in place to restore this one-time cut to the system during the 2025-26 school year as part of Governor Newsom’s efforts to address the current deficit.
In addition to the budget cuts, the UC system is also set to receive a 2 percent budget increase in 2025-26 as per the governor’s proposal, which is less than the initially promised 10 percent increase. State funds contribute to about 11 percent of UC’s estimated $47 billion operating budget in the 2022-23 school year.
Governor Newsom unveiled his revised state budget proposal for the upcoming fiscal year on May 10. Similarly, Cal State University, the state’s other public university system with 23 campuses, will also face a one-time funding reduction of $75 million in 2024-25. This reduction is set to be restored the following year.
CSU was initially promised a 10 percent budget increase for the 2025-26 fiscal year but will now only receive a 2 percent increase. State funding accounts for 55 percent of CSU’s operating costs, according to a budget summary from CSU for the 2024-25 fiscal year.
The state Legislature has until June 15 to approve the governor’s budget, which must be signed by July 1 to address the ongoing budget deficit.
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