Fresno State approves student fee increase. Can it close gap with Pac-12 peers?
Fresno State president Saúl Jiménez-Sandoval approved a mandatory student fee increase on Tuesday that will generate around $11.4 million per year and add $5 million or more to the athletics department budget.
Students starting this fall will pay an additional $495 per year to fund academic and student support initiatives, as well as student life initiatives including the university’s athletics programs.
But whether that is enough for the Bulldogs to keep up with their peers and rising costs when joining a rebuilt Pac-12 Conference could depend on the university’s commitment to maintaining a recent spike in its financial support.
Fresno State last year pumped $19.7 million in direct institutional support to athletics, despite budget cuts across the California State University system. That was an increase of $4.2 million from the previous year and the most direct institutional support Fresno State has provided its athletics department going back through 2010, according to financial reports the university filed with the NCAA.
But with Fresno State now adding the student fee increase, if it were to scale back that extra institutional support, the athletics department could be in the exact spot it was in 2024. Even with additional funding from the university, its operating expenses surpassed its operating revenue by nearly $600,000.
Jiménez-Sandoval declined an interview request from The Fresno Bee prior to the approval of the fee increase and issued a general statement rather than answer specific questions sent by email through the university communications department.
In that statement, Jiménez-Sandoval said the university is committed to maintaining a competitive athletics program while striving to reduce reliance on institutional support and stabilize athletics funding through the proposed fee increase and expanded opportunities in ticketing, multimedia rights and philanthropy.
“However, the financial landscape of college athletics continues to evolve, with rising costs driven by inflation, market demands, and evolving NCAA policies,” he said.
“University leadership will conduct annual evaluations of financial commitments, including direct institutional support, to ensure that athletics operates efficiently while aligning with broader institutional priorities. The focus remains on building a sustainable financial model that balances institutional investment with self-generated revenue to support the success of Fresno State student-athletes and the university as a whole.”
Fresno State last increased mandatory fees 16 years ago
Jiménez-Sandoval used an alternative consultation process to push the fee increase, despite the preference of the California State University for an advisory student referendum when establishing or adjusting a mandatory fee, according to the system’s written fee policy.
The process included open forums where students could ask questions about the fee increase, as well as a student survey.
Fresno State used a student referendum in 2018 when creating a fee to help pay for a new student union on campus. That fee was first rejected before a revised fee was approved by students in a vote a one year later.
The California State Auditor, in a 2020 report on mandatory fees in the CSU system, also urged the legislature to expand state law to require binding student votes for all mandatory fees to address concerns about the alternative consultation processes and ensure that students can vote on any new or increased fee proposals. That report found that flaws in the CSU policy led to instances where its campuses established or increased mandatory fees without adequately justifying the need for them or consulting with students before they were imposed.
Fresno State has not increased mandatory campus-based fees required for enrollment in 16 years, according to the university, and 58% of its students would have the fee covered by financial aid. It also ranks 21st in the 23-campus CSU system in mandatory fees and would be 14th once the fee is in place for the 2025-26 academic year.
Students would pay $1,752 in mandatory fees in the 2025-26 academic year, which is below the average across the system and less than other campuses in the San Joaquin Valley at Cal State Bakersfield ($2,003) and Stanislaus State ($2,158). The $1,752 also is considerably lower than San Diego State ($2,644) and San Jose State ($2,326), the other CSU schools that play football at the FBS (bowl subdivision) level.
Still, it represents a significant increase for students who do not often engage in athletics. Tuition and fees would rise to $7,846 per year, up from $7,341.
Fresno State sold more than 30,000 tickets to students at its six home football games, with 14,000 unique claims, according to university data. But interest in other Bulldogs’ sports among students has cratered, particularly basketball. Students are admitted free to games at the Save Mart Center, but the sections reserved for them behind the baseline this past season were mostly empty and have been for years.
The Campus Fee Advisory Committee, which is led by interim vice president of student affairs Phong Yang, made recommendations on the fee increase. It includes five student representatives. Associated Students Inc. president Faith Van Hoven, ASI vice president Frederick Lisitsa and ASI senator Adam Garabedian and two student representatives are part of the group.
The revenue from the increased fee is to be added to the university’s instructionally related activities fee. Students last year paid $264 a year for the IRA fee, with $184 going to athletics (69.7%), $60 to academic projects and programs (22.7%) and $20 for co-curricular activities (7.6%).
Athletics received $4.2 million in revenue from student fees last year.
Under a proposed allocation of revenue generated by the increased fee, athletics would receive $5 million (43.9%). The career development center would receive $2 million (17.4%) and Bulldog Express and the Cross Cultural and Gender Center $1 million (8.8%), with club sports and intramurals, the Amendola Student Cupboard and Bulldog Marching Band among student life initiatives to receive funds.
Bulldog Express is the university’s free campus shuttle service.
The proposed allocation of revenue from the increased fee could be adjusted by the university president based on budgetary need or program expenses.
Athletics-generated revenue critical to Bulldogs’ future
The athletics department has opportunities to generate needed revenue –- its apparel deal with adidas is up next yea, and on April 1 it entered a ‘first dealing period’ to negotiate a renewal while moving to the rebuilt Pac-12 from the Mountain West; the NCAA last year allowed member schools to add commercial advertising to football fields for regular-season games, which has been explored by the athletics department.
Fresno State has informed season-ticket holders it will be raising football ticket prices, and revenue should increase next year as fans pay more to see the Bulldogs play at Valley Children’s Stadium and fill the venue with fewer ticket discounts or specials.
It also will get a significant boost in media revenue when joining the Pac-12, though it is not gaining any ground there on its conference peers.
The student fee, athletics director Garrett Klassy said, is just one piece of a much larger puzzle in generating athletics revenue.
“I’ve said this from Day One, we’re going to operate our enterprise here as a business, and I think we have to look at every single piece of inventory we have here,” Klassy said. “That’s working with Learfield with our multimedia rights and how we maximize not just athletics assets but campus assets as well. One of the things we’re looking at now is we’re able to sell the 20-yard line logos on the football field at Valley Children’s Stadium. Some people have that earmarked as somewhere between $500,000 to $700,000 opportunity, and so were actively out selling that, too.
“Ticket prices for football went up a little bit this year because we felt we were undervalued for the product that we put out there, but we also know that with the revenue that creates we want to build up the fan experience and give our fans more amenities than they currently have. We understand there are challenges with the football stadium and we’re looking at long term options, but what can we do in the short term to make this a better fan experience?”
Along with ticket prices, donations and corporate sponsorships are areas of focus.
But athletics-generated revenue might not be enough to keep pace in a rebuilt Pac-12 without additional resources from the university.
Fresno State in 2024 reported $56 million in athletics revenue in its annual financial report filed with the NCAA, including the increase in direct institutional support. Of the football-playing schools committed to the Pac-12, Oregon State reported athletics revenue of $120.3 million, Washington State $89.5 million and Boise State $68.4 million. San Diego State and Colorado State reports are not yet available, but in 2022-23 came in at $103.9 million and $64.3 million.
Fresno State ranked ahead of only Utah State in athletics revenue, among the football-playing institutions committed to a rebuilt Pac-12.
It also could be compromised by a performance-based model for College Football Playoff and NCAA basketball tournament revenues, rather than an equal split. Members of the new Pac-12 will retain 50% of net revenue from any payments made to the conference from the CFP or NCAA, with 50% split among the remaining members, according to the term sheet the university signed with the Pac-12.
Fresno State has played in just one NCAA Tournament since 2001, and this season set a school-record for losses in a dismal 6-26 season.