Senate Bill 169 State University Grant Requirement: $16.8 Million

The CSU requests $16.8 million to increase State University Grant (SUG) program expenditures related to the aforementioned strategic resident enrollment growth of 2.5 percent.

In the final days of the first year of the 2021-22 two-year legislative session, the state’s Middle Class Scholarship (MCS) program was substantively changed in state law that significantly altered the requirements for the CSU to participate in the program. The law requires the CSU to ensure that the amount of institutional aid provided each academic year be adjusted annually to account for increases in systemwide undergraduate enrollment, such that the proportion of SUG, relative to undergraduate enrollment, is maintained at levels equal to those during the 2021-22 academic year. In other words, when CSU enrollment grows, SUG program expenditures are now required to grow as well. Practically, this means that for every three new students above current levels, one of the new students will cost the CSU an additional $4,825 (the mean SUG award) because state law now requires the CSU to increase SUG expenditures with enrollment growth.