Revenue Plan

N​ew resources of $597.1 million are necessary to fulfill the CSU’s plan for 2026-27, including state General Fund and tuition revenue increases.​

STATE GENE​​RAL FUND

The CSU experienced significant funding challenges in 2025-26 due to two key state actions: a 3% General Fund base reduction of $143.8 million and a deferral of compact funding commitments.

Rather than providing the full $252.3 million Year 4 Compact increase planned for 2025-26, the state intends to ​defer this funding with phased payments through 2028-29. This deferral, combined with the base budget reduction, created significant funding shortfalls that impacted CSU's core operations and ability to meet planned commitments for 2025-26.

The CSU requests restoration of the $143.8 million reduction as well as full funding of $252.3 million Year 4 compact commitment in that state Budget Act of 2026.​

REVENUE FROM TUI​TION RATE INCREASE

As part of the CSU's multi-year tuition plan, tuition rates will increase by 6% across all degree levels in 2026-27. The resulting $175.8 million of additional revenue is included in the budget plan and will help address key funding priorities and support ongoing operational and strategic needs. This increase, year three of five, is a planned component of the CSU's broader strategy to ensure financial sustainability.

REVENUE FROM ENROLLMENT GROWTH

​Contingent upon receiving compact funding, the CSU is committed to increasing enrollment by approximately 1%—equivalent to 3,511 resident, undergraduate full-time equivalent students (FTES) in 2026-27—as part of the compact agreement​​.

• Estimated additional tuition revenue: $25.2 million
• Supports expanded access to CSU's academic programs
  
• Contributes to meeting statewide higher education goals

This growth aligns with the CSU's mission to serve more Californians and respond to student demand.​