The CSU submitted its fiscal year 2024-25 operating budget request to the state in September, 2023 marking the third year of the state’s five-year compact with the CSU. Under the compact, the CSU state appropriation would increase by 5% annually, providing the CSU $240 million in new base funding for its fixed costs.

The CSU requested an additional $144.5 million as the compact funds would not be sufficient to fund all anticipated cost increases, most notably bargained compensation. As the year progressed the state’s budget picture became more dire and there was concern even the compact funding would not be honored. 

While the compact was fully funded, but not the additional $144.5 million requested, the Budget Act also outlined a $75 million reduction to the CSU. SDSU will need to fund its share (estimated to be $5.2 million) of this reduction in the current year. This reduction is one-time in nature, but the campus will be heavily relying on carryforward resources to help bridge the base budget gap anticipated in future years. This means that there will not be any discretionary funding available for allocation via PBAC in 2024-25.

Ultimately, in the final 2024-25 state budget, thanks to CSU community’s advocacy, Gov. Gavin Newsom honored the compact, funding the 5% general fund increase. While this is a positive improvement over the potential deferral shared in May, it does not fully address the CSU's fiscal challenges. Additionally, the system is projecting $172 million in tuition revenue from the approved tuition increase and enrollment growth.

No. The CSU has not received sufficient funds to fund increasing mandatory costs and compensation, leaving the system with a funding gap of approximately $218 million as we enter the 2024-25 year. The reduction in state funding does not address unfunded campus commitments, such as increasing operational costs, utilities increases, and deferred maintenance. While SDSU is grateful to be able to provide our employees with the 5% general salary increase that was previously bargained, much of that cost will fall onto the campus to fund. 

The 2024 Budget Act also indicated that the CSU will receive a 7.95% budget reduction in 2025-26, which will exacerbate the underfunding, as it will not be offset by the compact funding, which is currently labeled as "deferred." 

In spring 2024, SDSU anticipated a large budget shortfall in the coming years and presented to the President’s Budget Advisory Committee (PBAC) a plan to balance the campus budget. We do anticipate additional revenue from tuition and enrollment growth, but will be left with a deficit after funding instructional costs, compensation, and unfunded mandatory costs. 

Over the next three years, divisions will strategically focus resources toward the university’s most essential functions. While other campuses in the CSU are facing more extreme budgetary constraints, SDSU is fortunate to maintain sufficient reserves to mitigate more aggressive budget reduction strategies. While every division will approach their share of the reduction differently, the campus should expect that discretionary spending will be limited in the upcoming years. Every division and department will need to review programs for efficiency, minimize non-essential, non-critical, non-strategic expenses, and seek out alternative funding sources.

Base budgets and one-time funds are very different. Our base budget is ongoing and reflects the plan for spending, and it guides our various units each year. The amount that is unspent at the end of the year is one-time savings. Further, funding generated by university research are restricted dollars, meaning they are designed for specific and agreed upon expenditures with funding agencies. Most dollars generated through philanthropy are also restricted, and the university must use those funds based on formal agreements with donors.

The negotiated 5% General Salary Increase is effective July 1, 2024 for Units 2, 5, 7, and 9 (California State University Employees’ Union), Unit 3 (California Faculty Association), Unit 8 (State University Police Association) and Unit 11 (UAW Academic Student Employees). The State Controller and SDSU processed these increases in July, August, and earlier this month.

Tentative agreements with Unit 1 (Union of American Physicians and Dentists) and Unit 4 (Academic Professionals of California) were recently announced. The agreements include a 5% General Salary Increase, effective July 1, 2024. The processing timeframe for this increase will be determined upon ratification of the agreement.

The negotiated new Salary Step Structure for Teamsters (Unit 6) will be implemented in October 2024.

The Chancellor has authorized a 5% Merit Salary Increase Program for Management Personnel Plan (MPP) and Confidential employees. Any merit increases awarded under this program will be effective July 1, 2024. Individual increases can only be processed upon receipt of a completed performance evaluation for FY 2023-24 demonstrating satisfactory or higher performance. The processing of increases is anticipated to be completed by November 2024.

SDSU reached record enrollment levels in 2023-24 and exceeded its annualized resident FTEs target by approximately 2.6%. As a result, the university’s target for 2024-25 was increased by 1,075 FTES with the expectation of an additional 757 FTES.

This fall, SDSU is projecting to exceed 39000 students for the first time, including a first-year class of more than 6,500 students. SDSU Imperial Valley has also seen record enrollment this fall of nearly 1,200 students. Complementing SDSU’s increased enrollments of California residents, the university is projecting continued growth in non-resident enrollments.

Not at this time. The CSU requested $2.4 billion in one-time funds to address its significant $7.4 billion deferred maintenance backlog. It was not funded by the state.

Yes. The CSU requested $2.4 billion in one-time funds to address its significant $7.4 billion deferred maintenance backlog. It was not funded by the state. The North Life Science building is the single highest priority project for SDSU to address and is ranked 11th on the CSU five-year capital plan for capital outlay funding. The campus will continue to advocate for financial resources to support our highest priority project, both within the CSU process and beyond.

No. SDSU Mission Valley is self-supporting and does not rely on state funding. In addition, it is making significant progress in its development, establishing itself as a crucial long-term investment in the university's future. Snapdragon Stadium is strengthening its status as a key community fixture, having hosted more than 243 events since its debut–an average of one event every three days. Major League Soccer is set to begin early next year. The stadium operates on a self-sustaining financial plan, ensuring it does not draw from the university operating budget. 

And the Sciences and Engineering Laboratories building at SDSU Imperial Valley has been fully funded and is on track for completion. The building is set for occupancy in fall 2025, which is on schedule.

Yes, the river park was completed on time and opened to the public in December. Since then, the park has benefitted from a healthy stream of visitors, including families and recreationists enjoying the park’s various spaces and activities.

Yes. In November 2023, SDSU received approval by the Board of Trustees for the first housing projects: a 621-unit multifamily residential and retail project by Avalon Bay and an 126-unit affordable housing project by Chelsea, which are both on track to break ground in the next 12-18 months. SDSU continues to work with its selected developer, LPC West, to advance the first Innovation District project, despite a challenging commercial real estate market. 

We have a final budget plan for FY 2024-25 and various budget committees will resume meetings to begin planning for FY 2025/26. SDSU is proactively planning for multiple budget scenarios given California’s economic uncertainties. We will work with CSU to advocate for the state to not impose a 7.95% cut to CSU’s FY 2025-26 recurring budget and not to defer the FY 2025-26 5% compact to FY 2026-27. In addition, we will continue to advocate for the state to provide one-time funding or to issue General Obligation Bonds to provide funding to meet CSU’s capital projects and deferred maintenance needs. 

Yes, the university will continue to provide budget updates throughout the year as new information becomes available. If you have any questions, contact Crystal Little, Associate Vice President for Financial Operations, ([email protected]).

The following are useful links to learn more about the CSU and SDSU budgets: 

• Current bargaining agreements and salary information
• CSU Chancellor Statement on the 2024/25 state budget
• Governor’s Budget
• CSU Coded Memo B 2024-01 and B 2024-0202
• CSU 2024/25 Operating Budget Request
• President’s Budget Advisory Committee (PBAC)