UC, CSU to lose 10% of state funding in new California budget proposal

California’s public colleges and universities stand to lose hundreds of millions of dollars in planned funding in the state budget proposal Gov. Gavin Newsom released Thursday.

The California State University and University of California budgets each would take a 10 percent cut from their planned funding. The proposal also rolls back funding for community college support services like campus food banks.

The proposed funding cuts are detailed in a $203.3 billion budget that Newsom released to show his plan to close a projected $54.3 deficit that emerged since the coronavirus outbreak halted much of the state’s economic activity. Earlier this year, he had proposed a $222 billion budget that projected a $5.6 billion surplus.

“In almost a blink of an eye,” Newsom said, “the state is in a completely different position.”

Higher education programs rely on discretionary funding and they are vulnerable in economic downturns. During the Great Recession 12 years ago, funding cuts contributed to steep tuition hikes at both the CSU and UC systems.

Newsom’s January proposal originally included $18.1 billion in state funding for higher education. The updated budget Newsom unveiled Thursday lowers that funding to $16.3 billion for the 10 University of California campuses, 23 California State University schools and the more than 200 California Community Colleges’ districts, campuses and centers.

The revised blueprint cuts 10 percent in funding for both university systems, which equals $338 million in reductions for UC and $398 million for CSU. The UC will also take another $34.4 million hit in funding for the president’s office, human resource services and the Division of Agriculture and Natural Resources.

Summer financial aid would also be reduced by $4 million and $6 million for UC and CSU.

In a Thursday statement, UC President Janet Napolitano said the budget reflects “unprecedented challenges California is facing in the wake of COVID-19.”

Napolitano said the system “regrets” the coronavirus required Newsom to “steeply reduce the university’s budget in response to the state’s dramatically diminished revenues.”

“Regardless, UC stands with the governor and the Legislature to help lift the state out of this economic crisis,” she said. “UC appreciates the governor’s support of public higher education and looks forward to working in continued partnership to overcome the challenges ahead.

The budget preserves new state programs that provide Cal Grants for students with dependent children and two years of free tuition for community college students.

Community college funding depends on money from Prop. 98 the education formula used to finance K-14 education. The budget estimates a $19 billion loss in Prop. 98 funding.

To offset this blow, Newsom’s budget proposes cobbling together minor tax changes, federal assistance and revising pension fund contributions. The plan increases Prop. 98 funding for community colleges by $130 million.

However, the budget cuts community college programs from Newsom’s previous budget proposal, including money to eliminate the cost of textbooks and a pilot fellowship program.

Community colleges could also see a $11.4 million cut for food pantries and a $6 million decrease in support for undocumented students.

This story was originally published May 14, 2020 at 3:49 PM with the headline "UC, CSU to lose 10% of state funding in new California budget proposal."