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Governor Gavin Newsom State Budget 2021-2022

January 8, 2021


State Budget Update –January 8, 2021

The California State Assembly and Senate will return to Sacramento on January 11, 2020, to begin the 2021 legislative session. Governor Newsom released his initial state budget for the 2021 – 2022 fiscal year on January 8. Here are the updates as of this week:

The CSU Board of Trustees approved the 2021 – 2022  operating budget request in mid-November 2020.  This request proposes a base increase of $556 million. The CSU’s highest priority is to advocate for $299 million of Restoration of 2020-21 General fund reductions. 

 An additional $150 million will go to Graduation Initiative 2025 for campuses in need of the highest priority. Mandatory costs saw an increase as well with the passage of AB 1460 and rising costs in health benefits.  

Incremental Expenditures (ongoing)


Breakdown of Total 

Graduation Initiative 2025



Highest Campus Priorities 




Basic Needs Initiative 



Restoration of 2020-21 General Fund Reductions 



Academic Facilities & Infrastructure Needs



Mandatory Costs



Assembly Bill 1460 Ethnic Studies Requirement 




Health Benefits 




Maintenance of New Facilities 




Minimum Wage



Total Incremental Expenditures



Governor Newsom proposed $144.5 million in new recurring funding for the CSU. The proposed recurring funding is categorized as follows: 

  • $111.5 million for general operating costs (This is a 3-percent increase to the CSU state appropriation); 
  • $15 million for Graduation Initiative 2025 (Basic Needs Initiative); 
  • $15 million for student mental health and technology needs; 
  • $2 million to support a common learning management system (Canvas) across higher education segments; and 
  • $1 million for enrollment funding for Stanislaus State’s Stockton Center. 

The Governor also proposed $225 million in one-time funds, categorized as follows: 

  • $175 for deferred maintenance, energy efficiency, and facility improvement projects; 
  • $30 million for student emergency assistance grants; 
  • $10 million for Monterey Bay’s Computing Talent Initiative; and 
  • $10 million for professional development. 

You can see the offcial 2021-2022 proposed California State Budget below.