Restoration of 2020-21 General Fund Reductions: $299 Million

The state reduced the CSU recurring appropriation by $299 million, a 7.4 percent reduction in state funding, which forced the CSU to utilize a number of one-time sources to temporarily support that funding drop for 2020-21, including the use of designated balances and reserves, the federal CARES Act funding, a slowdown in hiring and a halt on travel. Those one-time solutions, however, cannot be sustained into 2021-22 and beyond because the $299 million recurring reduction would require permanent, ongoing cost reductions that would: 1) jeopardize future Graduation Initiative 2025 success; 2) prevent the funding of mandatory costs in 2020-21 and 2021-22; and 3) challenge continued support of current enrollment levels. As a result, the state should look to restore or invest in the university in 2021-22. The budget plan includ​es a $299 million recurring general fund restoration, which represents a full restoration of the budget cut the university is experiencing right now.