New report says Cal State has $1.5 billion funding gap, suggests tuition hikes

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New report says Cal State has $1.5 billion funding gap, suggests tuition hikes
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A new analysis shows that the California State University system doesn’t make or receive enough money to cover its costs, even with state support. The report and lawmakers urge the system to increa…

The nation’s largest public four-year university is presently incapable of affording itself.nearly a year in the making by leaders of the California State University details the massive gulf between the money the system currently generates from tuition and receives in state support and the actual costs of educating its nearly 500,000 students and employing 60,000 workers.

As a consequence, ongoing tuition hikes are likely forthcoming. Likely more system tumult awaits, as unions are threatening to strike.Emma Joslyn, center, a member of UAW 4123, and Nora Cisneros, right, with CFA, during the rally. Members of Teamsters, CSUEU, UAW 4123, and CFA Faculty gathered to ask for fair wages outside the CSU Chancellorís office in Long Beach on May 23, 2023.

These cost gaps don’t necessarily mean cuts to key services are imminent. “It’s not really about what cuts we’re going to make, it’s … opportunities that we do not have to invest in additional things that we should be investing in,” said Jeni Kitchell, executive budget director for the CSU. This sobering analysis echoes what the state’s nonpartisan bean counters, the Legislative Analyst’s Office, said in January: Cal State’s tuition and state supportBut the solutions the report describes will be bitter pills to swallow. Annual tuition hikes are necessary to increase revenue for the CSU, the report argues, reversing course for a system that has raised tuition only once in the last 12 years.

But a predictable model that students can budget for and that sends more financial aid back to students, “there’s definitely benefit there.”How much more revenue the CSU would generate from tuition hikes depends on whether the system continues its enrollment slide or begins attracting additional students. Another factor is whether tuition goes up 3% for every student annually, or increases once by 5% for every new incoming class of students, similar to the.

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