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State Cuts Additional $100 Million From California State University Budget

Cal Maritime total reduction could be nearly $725,000 annually

(Vallejo, CA – December 13, 2011) – State funding support for the California State University will be cut by an additional $100 million for this year, as a result of lower-than-projected state revenues. This additional cut is on top of a $650 million reduction already in place, as a result of lower-than-projected state revenues. The additional cut reduces CSU funding to $2 billion and represents a 27 percent year-to-year reduction in state support.

"It is disheartening to say the least when your budget is cut by an initial $650 million, but to face an additional $100 million reduction mid-year makes things extremely challenging," said CSU Chancellor Charles B. Reed. "We were aware that this was a possibility, and our campuses have been planning accordingly. However, the uncertainty of the overall fiscal outlook for the state is not encouraging, and the CSU has run out of good options."

If The California Maritime Academy (Cal Maritime), a campus of The California State University, were to bear its percentage of the share of that cut, something which is not yet known, the campus's current budget will be reduced by $724,000.

"While Cal Maritime is able to absorb a current year cut from our reserves, it would be more difficult should we have to absorb that cut permanently," said President Eisenhardt. "However, we are trying to create a cushion to do so if need be by implementing a number of cost strategies, including transitioning from two training cruises to one starting this coming summer. That alone will save us nearly $500,000 in annual costs."

Eisenhardt added that the campus has also secured grant funding to help support its current infrastructure as faculty and staff undertake research and other activities for outside agencies.

The $2 billion in state funding allocated to the CSU for the 2011-2012 budget is the lowest level of state support the system has received since 1997-1998, but the university system currently serves an additional 90,000 compared to that year. The CSU had previously announced that it will not raise tuition mid-year, even with the additional $100 million cut.

For the past three years, CSU has instituted a number of cost savings measures including decreased enrollment, employee layoffs and furloughs, deferred maintenance, travel restrictions, better use of information technology and other efforts.

In two of the last four fiscal years, state funding to the CSU has been dramatically reduced, forcing the board to approve sizable tuition fee increases. However, increases in revenue from tuition hikes – after setting aside one-third for financial aid – have not kept pace with state funding cuts. For the current fiscal year 2011-2012, tuition increases raised approximately $300 million, but CSU's budget has now been cut by $750 million.

Established in 1929, The California Maritime Academy, a campus of The California State University, is the only degree-granting maritime academy on the West Coast. Cal Maritime was recently ranked by Forbes magazine as #18 in the “Top 20 Best Value Colleges” in the nation – and the #1 Best Value in California for providing students with the highest quality education for their academic dollar. Located in Vallejo, Calif., the campus serves approximately 900 students and offers undergraduate degrees preparing students for careers in engineering, transportation, international relations, business, and global logistics. It also offers a master’s degree in Transportation and Engineering Management, as well as a number of extended learning programs and courses.

The California State University is the largest system of senior higher education in the country, with 23 campuses, approximately 412,000 students and 43,000 faculty and staff. The CSU awards about 90,000 degrees annually and since its creation in 1961 has conferred nearly 2.6 million. Celebrating its 50th anniversary this year, the CSU is renowned for the quality of its teaching and for the job-ready graduates it produces. The mission of the CSU is to provide high-quality, affordable education to meet the ever changing needs of the people of California. With its commitment to excellence, diversity and innovation, the CSU is the university system that is working for California.

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Last updated: 8/27/20