State University Grant Program
The State University Grant (SUG) program is a critical source of financial assistance for CSU students. Since its inception in 1982/83, the SUG program has provided these awards to offset the cost of tuition for resident students and to diminish the impact of increased costs for students with the greatest financial need.
Prior to 1992/93, the state provided the funds necessary to ensure adequate financial aid was available for the CSU’s neediest students. Since 1992/93, the CSU has continued assistance to students by foregoing a portion of new tuition revenue generated through enrollment growth or changes in tuition rates.
The amount projected for 2016/17 SUG awards is $667.7 million, an increase of $11.7 million from 2015/16. This amount is due to a set-aside from tuition revenue derived from 3 percent enrollment growth ($1,094 per FTES). This $667.7 million of financial aid reflects tuition that is not collected—in effect, waived—thus decreasing total tuition revenue collection. SUGs were awarded to approximately 132,000 students in 2014/15.
Under current law, there are four state-mandated tuition waiver programs: the California Veterans Waiver for children of disabled/deceased veterans (Education Code 66025.3), the Alan Pattee Waiver for dependents of deceased law enforcement or fire suppression personnel (Education Code 68120), the tuition waiver for California residents who were dependents of victims killed in the September 11, 2001 terrorist attacks (Education Code 68121), and the tuition waiver for the two students serving on the Board of Trustees (Education Code 66602). In addition to state-mandated tuition waiver programs, other tuition waiver programs include waivers for employees and employee dependents pursuant to collective bargaining agreements. Other non-mandatory waivers have been established by CSU Board of Trustees policy and California statute that include programs for high school students and California residents age 60 years and older, among others. The state has not provided General Fund support for CSU tuition waiver programs since fiscal year 1992/93.
A summary of the total revenue foregone and applied to SUG and mandatory waivers from 2014/15 through 2016/17 is included in the Three-Year Budget Summary and Highlights section. In the 2014/15 college year (fall, winter, spring, and summer), 13,341 tuition waivers were granted to CSU students. When tuition rates are applied to these waivers based on student enrollment status, it amounts to approximately $67.6 million in revenue foregone to the CSU.
|2014/15 Systemwide Tuition Waivers|
|Employees and Dependents||3,125|
|Other Discretionary Waivers||761|
|High School Students in Special Programs||1,388|