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Budget Information
This webpage provides an overview of Sacramento State’s budget, including reductions by division and strategies to create a balanced budget plan for the 2025-26 fiscal year. Our commitment to transparency remains at the core of our budget planning, ensuring that our campus community is informed of systemwide and campus-level decisions.
On May 14, Governor Newsom released his May Revision to the 2025-26 state budget, which reduced the proposed 7.95% ($375 million) cut to the CSU to 3%, or $143.8 million. While the governor's new proposal for the CSU budget is very positive, we still face a significant budget gap for the upcoming fiscal year. We will have more certainty on our budget after the state legislature reviews the Governor’s proposal and the budget bill is finalized. Updates will be made to this page as new information becomes available.
This page was last updated May 15, 2025.
For more information about the CSU budget process:
Visit the CSU Chancellor's Office Budget Webpage
Where We Are
In January, Governor Newsom’s proposed state budget included a 7.95% cut to the CSU system, or $375 million to be spread across the 23 CSU campuses. Combined with compact funding deferrals and campus inflationary and benefit cost increases, our January projected shortfall for fiscal year 2025-26 was $31.2 million, with an additional $5.8 million projected for the following year. This anticipated reduction to our baseline budget, combined with increased costs over the next two years, would have resulted in a $37 million budget deficit and significant cuts to every division’s budget.
As of May 14, the Governor has proposed an amendment to his January budget plan. In his May Revision to the 2025-26 state budget, he is now proposing an approximately 3% reduction to the CSU ($143.8 million). We still face a significant budget gap for the upcoming fiscal year even if the proposed budget is enacted due to the projected cuts from the CSU, compact funding deferrals, and inflationary and benefit cost increases.
In the coming weeks we will continue to monitor the Governor’s new budget proposal. After a budget bill is reviewed and enacted by the State Legislature, the Chancellor’s Office will confirm final budget baseline allocations to each campus.
Budget Allocations by Division

Reductions by Division*
*We will update these budget projections once we receive additional infomation from the Chancellor's Office about our campus' budget allocation.
Division | Reduction Target |
---|---|
Academic Affairs | $24,000,000 Spread over 2 years: $18,000,000 2025-26 $6,000,000 2026-27 |
Administration & Business Affairs | $4,700,000 |
Student Affairs | $2,400,000 |
Information Resources & Technology | $2,300,000 |
University Advancement | $1,200,000 |
Division of the President (including Athletics) | $2,400,000 |
Total Reduction | $37,000,000 |
Frequently Asked Questions
The CSU is funded by two main sources: the state General Fund and student tuition and fees. State dollars fund 60% of the CSU’s operating costs, and tuition and fees make up the difference.
The state budget process includes three cycles: Proposed budget (January), revised budget (May), final budget (July). The campus level budget process depends on projected budget allocations and cannot be finalized until the final state budget has been passed.
On Jan. 10, the governor proposed to cut funding to the CSU by 7.95%, or $375 million, for fiscal year 2025-26 and announced planned compact funding deferrals. In addition to these proposed cuts, Sacramento State is facing significant inflationary and benefit cost increases.
On May 14, the Governor proposed an amendment to his initial plan that would reduce the 7.95% CSU budget reduction to 3% ($143.8 million). The state legislature is now considering this proposal.
The legislature can choose to propose different budget solutions than those proposed in the Governor’s May Revision. Once a final budget bill is enacted this summer, the CSU will share updated budget allocations to each campus.
Though the tuition increase will generate $9.9 million for Sacramento State, only $6.6 million can be used to cover expenses, as the remaining $3.3 million is earmarked for financial aid for students (State University Grants). Unfortunately, $6.6 million is not enough to cover rising operational costs, insurance premiums, health benefits, and union-negotiated compensation increases, which have not been funded by the state to the CSU. In the 2024-25 fiscal year, the University covered 70%, or $12.3 million, of the union-negotiated compensation increase from our own permanent base funding (general fund).
The campus budget goes through a shared governance process, with the final allocations for each division decided by the president. The University’s Budget Advisory Committee (UBAC), which is comprised of students, faculty, staff and administrators, makes recommendations to the president. Each division vice president also offers a proposed budget to UBAC and to the president. Final budget allocations and other budget documents are regularly updated and are shared by Budget Planning and Administration on their website.
The University’s $431.6 million baseline operating budget will have an estimated $31.2 million shortfall for the coming 2025-26 fiscal year, with an additional $5.8 million projected for the following year. This is a huge reduction for us.
Upon the recommendations of the University Budget Advisory Committee (UBAC), we have started to do longer term budget planning, rather than year-by-year planning only. To that end, we will implement cuts in the upcoming fiscal year that will help us to create a balanced budget for the next two fiscal years.
Reductions will be achieved by:
- Implementing reductions to each division’s baseline budget from their 2024-25 allotment.
- Reducing the number of administrative positions by cutting or merging vacant positions, engaging in a “hiring chill” and eliminating some positions. The total number of management positions is down 8.7% from last year at this time.
- All divisions have cut travel and professional development budgets by at least 50%.
UBAC and division vice presidents are working to identify further reduction strategies and revenue streams to balance the upcoming budget.
As part of its efforts to reduce the structural budget deficit, Sacramento State is offering an Early Exit Program to eligible faculty as an incentive to voluntarily separate with severance. This is a one-time, non-precedent-setting program. To learn more, please visit the Early Exit Program webpage to access terms and conditions, application and other important information.
To diminish the impact on staff, faculty, and students administrative positions (MPPs) have already been reduced.
Should layoffs for staff and faculty become necessary, we will follow all processes outlined in the applicable collective bargaining agreement(s).
As Provost Cameron shared in her April 17 message to faculty, deans and chairs, the University's significant budget deficit along with the loss of one-time funding from reserves that has been used to support additional course offerings means that all colleges must reduce current course sections. The course schedule for Fall 2025 is available online. We are unable to add additional course sections until we receive the final budget from the Chancellor's Office. Students with questions should contact their academic advisor.
On May 13-14, students voted on a referendum to adopt a Student Success Fee to support increased class sections, supplemental instruction, and other academic resources. The proposed fee failed, and therefore will not go into effect for the upcoming academic year. During the process, we heard constructive feedback on how the fee proposal can be strengthened and brought back for a vote in the fall.
In the fall of 2024, several new fees were adopted after an extensive consultation process with students. These fee dollars can only be used as outlined in the Student Fee Advisory Committee process. Those fees will fund additional services in Student Health, Wellness and Counseling; additional resources for our Cultural and Academic Resource Centers; additional funding for Instructionally Related Activities; funding for student recreation and club sports teams; and funding for athletic facilities for club, recreation, and NCAA athletics. The stadium is being funded with funds that are earmarked for student athletic facilities. These dollars cannot be spent on anything other than athletic facilities and are regularly audited for compliance.
Funding for the stadium will not come from general fund dollars.
On May 13-14, students voted on a referendum to adopt a Student Success Fee to support increased class sections, supplemental instruction, and other academic resources. The proposed fee failed and therefore will not go into effect for the upcoming academic year. During the process, we heard constructive feedback on how the fee proposal can be strengthened and brought back for a vote in the fall.
Compact funds refer to a funding agreement announced in May 2022 between the governor and the CSU chancellor. The compact aimed to provide the CSU with a 5% annual increase in state general fund support from 2022-23 through 2026-27.
However, the compact is not legally binding, and recent state budgets have not provided that increase. While CSU received increases above 5% in the first two years of the compact, the increase dropped to 2.5% in 2024-25.
The Governor’s May Revision of the state budget proposal includes a two-year deferral of compact funding, which would have provided the CSU with an additional $240.8 million for the 2025-26 fiscal year.
Budget Transparency
In its ongoing commitment to budget transparency, the Office of Budget Planning and Administration publicly posts all budget documents, timelines and annual expenditure reports.
Use the links below to access prior year reports and general operating fund budget information, and to learn more about the campus budget advisory committee.
Make Your Voice Heard
It is the responsibility of the state legislature to review, discuss and refine the governor’s budget proposal. Your advocacy plays a crucial role in shaping the outcome. Personal engagement is one of the most effective ways to make a difference — especially when our voices unite.
We strongly encourage you to join Chancellor Garcia to continue to advocate for full funding for the CSU to be included in the final budget, and we encourage others to continue their advocacy as well.
Will you join us in urging state lawmakers to #stopCSUcuts?
Maintaining an Open Dialogue
To provide an opportunity for open dialogue about how budget reductions may affect the University, we have held numerous open forums throughout the spring semester to provide our campus stakeholders an opportunity to ask questions and share concerns.
MPP Open Forum (in-person)
- Wednesday, May 28, 2:30-4 p.m.
- Beetle & Elderberry Rooms, Riverview Hall
Previous Open Forums
- Faculty: March 21 and 27, and April 14
- Students: Feb. 27, March 4 and 27
- Staff: April 24 and 28
- Lecturers: May 12
- All employees: May 14
President's Messages
May 15: Update on our budget after the May Revision and Student Success Fee vote