Public Affairs

2010-11 State Budget Increases Funding to CSU
for the First Time Since 2007

$199 million restored to university budget; additional $60.6 million
for enrollment growth

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Claudia Keith or Mike Uhlenkamp, (562) 951-4800

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(October 8, 2010) – The 2010-2011 California state budget restores $199 million to the California State University and provides an additional $60.6 million for enrollment growth. The final budget will increase the system's General Fund support from $2.35 billion (2009-2010) to $2.62 billion, marking the first restoration of state funding to the CSU since 2007.

"We thank the Governor and the legislature for their commitment to reinvest in higher education, and appreciate the increase in state funding support for the CSU," said CSU Chancellor Charles B. Reed. "Like the rest California, the last two years have been extremely challenging for us, but our mission is to educate the future workforce of the state, and despite these ongoing challenges the CSU will continue to provide both access and service to students."

Last year's level of state support was the lowest for the CSU since 1999-2000 ($2.25 billion), and although the CSU will see an increase in state funding, the level of support is still at approximately 2005-2006 levels ($2.62 billion). Despite receiving an increase over the previous year's level of state support, the CSU still faces fiscal obligations including mandatory cost increases such as health care benefits and energy that the general fund increase will not cover.

Restoration to the CSU Budget
The 2010-11 state budget restores $199 million to the CSU which serves to back-fill part of a "one-time cut" of $305 million to the CSU's 2009-2010 general fund base.

Funding for Enrollment Growth
The budget also provides $60.6 million for enrollment growth across the 23-campus system. Due to severe budget cuts over the previous two years, the CSU was forced to reduce enrollment by approximately 40,000 students since 2008 to align with available funding. On September 27, the CSU announced it would admit up to approximately 30,000 new students for the winter and spring 2011 terms and this additional support will be used to fund that enrollment growth.

The CSU will also receive $106 million in one-time ARRA federal stimulus funding which will be used to help CSU meet its payroll. In turn, CSU will use monies from state support and student fee revenues previously set aside for payroll to admit new students and restore courses that were previously cut due to budget reductions.

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About the California State University
The California State University is the largest system of senior higher education in the country, with 23 campuses, approximately 433,000 students year round and 44,000 faculty and staff. Since the system was created in 1961, it has awarded nearly 2.5 million degrees, about 90,000 annually. The CSU is renowned for the quality of its teaching and for the job-ready graduates it produces. A recent economic report found that the CSU supports more than 150,000 jobs statewide, annually. The engine driving job creation is more than $17 billion in economic activity that directly results from CSU-related spending that generates $5.43 for every dollar the state invests. The mission of the CSU is to provide high-quality, affordable education to meet the ever-changing needs of the people of California. With its commitment to excellence, diversity and innovation, the CSU is the university system that is working for California.

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