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Governor Gavin Newsom State Budget May Revision

May 14, 2020

 

On May 14, 2020, Governor Gavin Newsom submitted his May revision of the 2020­–2021 California state budget.  Due to the COVID-19 pandemic, his January budget proposal has changed drastically to reflect the immediate response to the crisis.  The following details what was proposed for the California State University system and what the system is possibly facing in the May revision:

Background

The CSU Board of Trustees approved the 2020–2021 operating budget request in mid-November 2019.  The request proposed a base increase of $648.3 million. The CSU’s highest priority was to advocate for $563.7 million in new general fund from the state. The additional $84.6 million would have been from new tuition and revenue (5% enrollment increase).

January Budget Proposal for CSU

Governor Newsom proposed $199 million in new recurring general funds, falling $364.7 million short of the CSU Board of Trustees ask of $563.7 million.  He also proposed $6 million in one-time general funds to support the development or expansion of degree and certificate completion programs through CSU extension.

May Revision for CSU

Governor Newsom announced the state is not in a fiscal position to expand programs given the drastic budget impacts of the COVID-19 Recession, so the $199 million in new recurring general funds and $6 million in one-time general funds mentioned above have been withdrawn.

If additional federal funds are not available, it will trigger the following reductions:

  • A decrease of $398 million ongoing General Fund to reflect a 10-percent reduction in support for the CSU
  • A decrease of $6 million limited-term General Fund provided to support Summer Term Financial Aid