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  • Anticipating less state aid, CSU campuses start making cuts

    Anticipating less state aid, CSU campuses start making cuts


    Gov. Gavin Newsom announces his 2024-25 state budget proposal, including his plans to deal with a projected deficit in Sacramento on Jan. 10.. Credit: Brontë Wittpenn / San Francisco Chronicle / Polaris

    The Cal State System is anticipating more university-wide budget cuts as it faces expected cuts in state aid due to the state’s budget deficit for the 2024-25 budget year. 

    Already many campuses have started consolidating programs, freezing hiring, eliminating positions, deferring maintenance projects and restricting purchases. 

    At San Francisco State, President Lynn Mahoney said the campus has a hiring freeze and is starting a “voluntary separation program” this spring. It is also restructuring courses with actual enrollment. Last fall, the campus said it would need to cut about 125 positions this spring. 

    “The reductions have been and will continue to be painful,” Mahoney said. But the campus’ reductions and changes will “hopefully within about four years achieve enrollment and budget stability.” 

    In 2022, Gov. Gavin Newsom made an agreement to give CSU annual 5% base funding increases over five years in exchange for increasing enrollment and improving graduation rates. However, with the state’s $38 billion projected budget deficit, this year the governor proposed delaying the $240.2 million increase for the 2024-25 budget year to the following year.

    While CSU would then get two years’ worth of increases, the system would have to borrow the money to get through next year. 

    The plan is still risky for the university system if the state’s budget situation worsens and it is unable to fulfill its commitment next year. 

    “The governor’s administration has supported and continues to signal future support for the CSU and its compact,” said Steve Relyea, executive vice chancellor and chief financial officer for the system. “But the proposed deferral raises significant concerns, and we must proceed with fiscal prudence and caution.” 

    The 23 campuses are already being asked to help cover a $138 million shortfall this year. The system is projected to be short at least $184 million more from 2024-26.

    Relyea said the system will move forward with cost-cutting strategies but still find support for compensating faculty and staff, protecting students’ education, improving the handling of Title IX complaints and other priorities. 

    Trustee Julia Lopez warned the board that CSU’s financial commitments may have put the system in a deeper financial hole than is being projected once it includes promises like improving Title IX and repatriating cultural and human remains to Indigenous people. The only revenue outside of state dollars is the tuition increase, and at least a third of that money will go to improving financial aid, she said. 

    “There’s a huge gap between what we have to pay for in commitments and the revenues we identified,” Lopez said. “The conversation in Sacramento is just beginning. We need to have our voices heard, and we need to be very clear.” 

    Trustee Jack McGrory said the message to the Legislature has to be what happens if CSU doesn’t receive funding. 

    “There are courses that are going to be cut, there will be employees that are going to have to be cut, and that’s the reality of what we’re dealing with,” he said. 





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  • CSU to expand student grants to cover full  tuition and living expenses

    CSU to expand student grants to cover full  tuition and living expenses


    Briana Munoz felt forced to take seven courses last semester to graduate on time and protect her financial aid status.

    Courtesy, Briana Munoz

    California State University trustees voted Wednesday to expand grants to fund the full cost of tuition and living expenses for students who show they need it to attend college. 

    The decision is the first step in a commitment the trustees made to students last fall that at least a third of revenue from a  6% annual tuition hike would go to financial aid. A more detailed plan will be presented to the board in May.

    Over the five-year period of the tuition increase, more than $280 million will go toward financial aid, increasing total funding to the State University Grant to $981 million by the 2028-29 school year.

    About 87% of Cal State students have their tuition fully or partially covered by grants and aid. Yet, some students still struggle with the cost of attending college due to living expenses such as food, housing and transportation. 

    Although there is regional variation of housing and food costs, total attendance costs statewide range from $22,000 to $32,000 annually. Nearly 40% of CSU students rely on loans to make up the difference between financial aid and actual costs.

    “The fact is tuition as the price of admission is not what keeps students away from CSU,” trustee Julia Lopez said. “Almost nine out of 10 students get some sort of tuition grant, but it’s other costs.” 

    The trustees favored giving students stipends, once their tuition costs are met, to cover their expenses, with the expectation that students would work less and graduate sooner. The State University Grant has traditionally been used to cover tuition. The stipends would be up to $5,000 and prioritize students with the greatest needs. 

    The trustees also voted to create consistent financial aid measurements and communications for students and their families after learning of significant differences across the 23 campuses, making it difficult for families to compare financial aid offers.

    But there is one immediate challenge CSU is facing in its financial aid improvement goals – the current national rollout of FAFSA simplification. The new, simplified Free Application for Federal Student Aid application was delayed from Oct.1 to Dec. 31. Colleges and universities received notification on Tuesday that they wouldn’t receive students’ financial aid information until March, squeezing students who generally have until May 1 to select a college.

    Nathan Evans, CSU’s vice chancellor for academic and student affairs, said the problems with the new FAFSA may be even worse for California.

     Students who are permanent residents or U.S. citizens, but who have an undocumented parent, are unable to complete the new application because the system requires a Social Security number for each parent or guardian. Parents without Social Security numbers are also locked out of contributing to existing FAFSA forms.

     Evans said leaders from CSU, the University of California, the community colleges, and the state’s independent colleges met earlier this week with the California Student Aid Commission to plan potential workarounds. 

    Another complication for CSU’s financial aid plans – the scheduled expansion of the Cal Grant, which aids the state’s low-income students – was expected to also begin in 2024-25. But the Legislature must first approve funding. CSU’s institutional aid numbers to students would depend on the amounts students receive in other federal and state aid. 

    “This is a year like none other,” Evans said. “There are some additional complexities this year, given that not only has the application been revamped, but calculations are changing … so there is a lot of unpredictability in the process.”





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  • Interactive Map: Most California high school students don’t take courses needed to apply to CSU or UC

    Interactive Map: Most California high school students don’t take courses needed to apply to CSU or UC


    This is a very important chart to raise awarement across schools, districts, and the state; however, I think it needs to be corrected that these are students who don’t pass these college-prep courses with a C or higher. It sends the wrong message to say that these “students don’t take courses needed to apply to CSU or UC” as I know that most students in many schools/districts do take these courses — they just … Read More

    This is a very important chart to raise awarement across schools, districts, and the state; however, I think it needs to be corrected that these are students who don’t pass these college-prep courses with a C or higher. It sends the wrong message to say that these “students don’t take courses needed to apply to CSU or UC” as I know that most students in many schools/districts do take these courses — they just don’t get a passing grade, which is another systemic issue that needs to be tackled.





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  • Legislature rejects ‘draconian’ cuts to UC and CSU, keeps TK-12 funding intact

    Legislature rejects ‘draconian’ cuts to UC and CSU, keeps TK-12 funding intact


    Students study in the main lobby of Storer Hall at the University of California, Davis.

    Credit: Gregory Urquiaga / UC Davis

    Top Takeaways
    • The Legislature has until June 15 to present their budget bill to the governor.
    • The proposal received praise from speakers grateful to see more funding for higher education.
    • Student teachers would receive $600 million in new funding in legislators’ plan.

    The Legislature is challenging Gov. Gavin Newsom’s proposed funding cuts to higher education for next year, while largely leaving intact the relatively more generous TK-12 spending the governor called for last month.

    “In many ways, it’s a tale of two budgets,” said Sen. John Laird, D-Santa Cruz, chair of the education subcommittee, who characterized Newsom’s higher-ed cuts as “draconian.”

    In 2025-26, schools and community colleges will receive a record $118.9 billion under Proposition 98, the state formula that determines the minimum portion of the state’s General Fund that must be spent on schools and community colleges. Laird credits the law for “protecting schools from the hard decisions of what is happening to the other side of the ledger with higher education.”

    Legislators would nix Newsom’s proposal to cut next year’s funding to the University of California and California State University by 3% and instead restore that money as part of a joint agreement of the Assembly and Senate. 

    The Assembly and the Senate published their version of a spending plan for education on Monday. The Legislature has until June 15 to present their budget bill to the governor, who then has until June 27 to sign, veto, or line-item veto the bill.

    Higher education

    The latest version of the 2025-26 budget may provide some relief to the state’s college students and public universities, who in January were told by Newsom to expect an 8% ongoing cut, a figure he revised down to 3% in May. Uncertainty regarding federal funding for higher education has compounded budget anxieties in California, as the Trump administration proposes reductions to programs like the Pell Grant and TRIO.

    “I think many of you recognize that we’re facing some pretty devastating budget challenges this year,” said Sen. Sasha Renée Pérez, D-Pasadena, at a budget subcommittee hearing on June 10. “It has been incredibly, incredibly tough, and we are continuing to face ongoing challenges with potential cuts coming from the federal administration that will impact our higher education systems, and so we are going to be having ongoing conversations about the budget.”

    While the Legislature’s take on the budget may seem more generous, it is not without asterisks. By forgoing the 3% ongoing cut, the Assembly-Senate recommendations would reinstate $130 million to the 10-campus UC system and $144 million to CSU’s 23 campuses. However, the Legislature would defer those payments until July 2026, giving the universities permission to seek short-term loans from the General Fund to tide themselves over. 

    Additionally, lawmakers parted ways with the governor on a plan to defer a 5% increase in base funding from 2025-26 to 2026-27. The legislative proposal instead splits the deferral, offering the universities a 2% ongoing increase in 2026-27 and the remaining 3% in 2028-29.

    The legislative proposal was met with praise from many speakers attending the subcommittee hearing. Representatives from the California State University Employees Union, which represents non-faculty and student assistants, the Community College League of California and the Cal State Student Association all spoke in support of the Legislature’s version. 

    Eric Paredes, the legislative director of the California Faculty Association, which represents professors at CSU, thanked the Legislature for restoring funding to the university system. “We know it’s been a difficult budget year, and just are really appreciative of the Legislature’s ongoing commitment to higher education,” he said.

    The legislative proposal also alters a plan to defer nearly $532 million in community college apportionment funding from 2025-26 to 2026-27, instead offering a smaller deferral of $378 million. 

    To pare back the 2025-26 deferral, the Legislature’s plan would reappropriate $135 million from the 2024-25 part-time faculty insurance program. A representative of the Faculty Association of California Community Colleges, speaking at the budget subcommittee hearing opposed that move, calling the funds for the part-time health care pool “necessary.”

    The Legislature is also turning down a Newsom proposal to provide $25 million in one-time Prop. 98 dollars to the Career Passports initiative, which would help Californians compile digital portfolios summarizing the skills they’ve built through work and school.

    The Legislature’s plan, in addition, calls for a variety of one-time Prop. 98 funding for community colleges, including $100 million to support college enrollment growth in 2024-25, $44 million to fund part-time faculty office hours and $20 million for emergency financial aid for students.

    For the state’s public universities, the budget bill would set in-state enrollment targets, asking UC and CSU to enroll 1,510 and 7,152 more California undergraduates, respectively, in 2025-26. 

    The current draft of the budget bill would also require CSU campuses that have experienced “sustained enrollment declines” to submit turnaround plans to the chancellor’s office by the end of 2025, outlining how they will increase enrollment and any cost-saving strategies they have planned. The chancellor’s office, in turn, will summarize those plans in a report for the Legislature by March 2026.

    Finally, the Legislature’s proposal also includes a sweetener for the state’s financial aid budget by restoring funding for the Middle Class Scholarship program. It provides grant aid to more than 300,000 recipients and would receive $405 million in one-time funding in 2025-26 and $513 million ongoing.

    TK-12 spending

    A stipend for aspiring teachers is the single largest difference in spending between the governor and the Legislature’s version of the TK-12 budget for next year. California would go all-in on paying student teachers working on their credentials if the Legislature can persuade Newsom to build in the $600 million expense in the 2025-26 state budget. Newsom is proposing $100 million for what would be a new program.

    To make room for this and other changes, the Legislature would cut a one-time Student Support and Discretionary Block Grant that Newsom is proposing, from $1.7 billion to $500 million. 

    Brianna Bruns, a representative with the California County Superintendents, expressed concern, noting that this is an important funding source for “core educational services” in light of the expiration of one-time pandemic-related federal funds.

    Lawmakers are recommending two other significant changes that reflect their worry that state revenues may fall short of projections amid an uncertain economy. 

    It would put $650 million into the Prop. 98 rainy day fund that would otherwise be depleted, under the expectation that it will be needed next year. And in a proposal that districts and community colleges may welcome, they would substantially cut back on late payments from the state, called deferrals, under Newsom’s May budget revision. 

    The governor is proposing to push back $1.8 billion that the state normally would fund in June 2026 by a few weeks to July 2026, the first month of the new fiscal year; the Legislature would reduce the deferral to $846 million. As a debt that must be repaid to make districts fiscally sound, the Legislature would pay most of it back in 2026-27 and the rest in 2027-28.

    Advocates for paying teachers at the daily rate of a substitute teacher while they are student teaching say it is critical to encourage more people to become teachers. During a one-year graduate program to earn a teaching credential, candidates are required to spend 600 hours in the classroom. Many candidates earn no income while accumulating between $20,000 and $40,000 in debt, based on the program they attend, according to an analysis of a bill proposing the stipends before the Legislature. 

    “California is facing a persistent teacher shortage that disproportionately affects our most vulnerable students,” said Assemblymember Al Muratsuchi, D-Torrance, the bill’s sponsor. “Many aspiring teachers struggle to complete their required student teaching hours due to financial hardship.”

    The proposed $600 million in the budget would cover two years of stipends for all teachers seeking a credential, according to an analysis of the bill. 

    The Legislature would support Newsom’s $200 million to support reading instruction for K-2 teachers and $100 million for training teachers in literacy and math instruction, although that would be $400 million less than Newsom favors. The Legislature also rejected $42 million to establish a math professional learning partnership and a statewide math network.





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  • CSU campuses focus on new strategies to help students of color 

    CSU campuses focus on new strategies to help students of color 


    CSU’s Young Males of Color conference in October 2023.

    Credit: CSU Dominguez Hills

    Last year, Cal State campuses received some sobering details about the growing gaps in graduation rates between students of color and their white counterparts. Instead of decreasing, the graduation equity gaps between Black, Latino and Native or Indigenous students have been increasing. 

    But some campuses are targeting new dollars and deploying new strategies to specifically target students of color that will help increase graduation, persistence and retention. 

    CSU’s Young Males of Color Consortium, which is housed at Cal State Dominguez Hills, received $3.2 million from a group of organizations including Ballmer Group, College Futures Foundation, ECMC Foundation and Ichigo Foundation to create new programs that support men of color on Cal State campuses. Sixteen CSU campuses and their neighboring community colleges will deploy those programs with the goal of improving rates of transfer, retention and graduation for up to 800 students. The partnered universities and colleges will start working with up to 40 young men each to pilot the new strategies.

    The consortium, which started in 2017, has the goal of working across campuses to share information and data, and find solutions to help CSU’s Black and brown men. 

    The main challenge the consortium realized it needed to tackle was “institutional complacency” because many campuses failed to have the right data on students of color, or limited their investment in improving their academic performance, said William Franklin, vice president of student affairs for the Dominguez Hills campus.

    Last year, during CSU’s Graduation Initiative 2025 event, new data revealed the graduation gap between Black, Latino and Native American students and their peers increased by 1 point to a 13% difference. The 2023 six-year graduation rate for Black students, for example, is at 47% but 62% for all students. 

    The rates on the Dominguez Hills campus, for example, are lower for Black and Latino men. The six-year rate for Black men is 36.4% and 38.9% for Latino men on the campus. Data for Native American and Native Hawaiian or Pacific Islander students was not available. 

    “We need to hire full-time folks and we need to really give them training,” Franklin said. “We need to begin to connect with our institutional research office and understand our data better. It doesn’t necessarily mean we need more money, but we do need to spend the money that we have differently in order to ensure that those male of color programs get the kind of support they need.” 

    With the new funding, the campuses will work together to assess and evaluate instructors and staff, while also providing professional development opportunities. The campuses would also work with their community college partners to better assist them in transferring more Black and brown students to the universities.

    Members of the consortium have already visited other universities outside of California that have seen success in improving graduation rates for Black and Latino students such as Georgia State University, Urban Prep Academies in Chicago and the University of Texas at Austin, Franklin said. 

    And while they’re unsure which strategies will work best for Cal State students, figuring it out is part of the funding. 

    “Our funders have also given us an opportunity to take the funding they’ve given us to provide it as seed money for campuses to put some innovative programs and strategies in place,” Franklin said. “Fail fast or succeed fast, and learn what they need to do in order to scale those things that work.” 

    Black Honors College

    Sacramento State is also trying something new to help not only the Black students on its campuses but across the system. 

    This fall, the university will debut the country’s first Black Honors College. Sac State has one of the CSU’s largest populations of Black students, and low graduation rates. The six-year rate for all Black students is about 45%. 

    “We’re the No. 1 institution serving Black students and we’re in the bottom third when it comes to graduation rates,” Sac State President Luke Wood said. “Our 75-year history has shown that what we’re doing is not working. I don’t just speak about that from the perspective of being president here, but I was a student here at Sac State. I got my bachelor’s degree here. I got my master’s degree here, and many of the people who are my contemporaries never graduated because the institution is not designed to support Black students.” 

    Sac State officials also looked outside of California for solutions, particularly at historically Black colleges and universities where graduation rates are much higher. 

    “We’re creating an institution within the institution so students have a standalone experience with their own curriculum, their own faculty, their staff, their space,” Wood said. 

    The college would be open to students of all majors, but the first two years of curriculum would have an African-American focus. For example, political science or statistics classes would have a unique focus on Black politics, issues and community. 

    Wood said the idea is built on research that shows creating a “family-like environment” and offering a curriculum relevant to students’ lives and experiences improves their academic success. 

    The new college will have 6,000-square feet of dedicated space with its own faculty, dean, counselors, academic advisers, support staff and outreach. But the ultimate goal is to see more Black Honors Colleges appear statewide and nationally, despite the conservative attacks on diversity, equity and inclusion happening in other states. 

    But Wood anticipates more Black Honors Colleges appearing on community college campuses, some of which have already contacted Sac State for guidance or information, with the potential to establish a transfer relationship with the university. 

    “We’re going to grow this Honors College pretty extensively,” he said. “Our goal right now is 500 or 600, but when we can get more resources, our goal is to get to a thousand students.”

    NOTE: EdSource receives funding from several foundations, including the College Futures Foundation and ECMC Foundation. EdSource maintains sole editorial control over the content of its coverage.





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  • Newsom again pledges to spare cuts for TK-12 and community colleges, but not for CSU and UC

    Newsom again pledges to spare cuts for TK-12 and community colleges, but not for CSU and UC


    Gov. Gavin Newsom unveils his revised 2024-25 state budget during a news conference in Sacramento on May 10, 2024.

    Credit: AP Photo / Rich Pedroncelli

    Despite a further deterioration in state revenues, Gov. Gavin Newsom again pledged Friday to protect ongoing funding and the large-scale initiatives for TK-12 schools that he has set in motion.

    “I just don’t want to see education cuts,” Newsom said during a news conference on the revision to the proposed 2024-25 state budget he presented in January. “Right now, I want to see us preserve the progress we have made on community schools, on preschool, on after-school-for-all, summer school — all the work we’ve been doing.”

    Newsom’s comment during a two-hour session with reporters reflected the challenge of writing annual budgets subject to volatile revenue fluctuations dependent on the incomes of the top 1% of earners. Receipts from capital gains taxes that soared to $349 billion in 2021-22 dropped to $137 billion in 2023-24. The current fiscal year ends June 30.

    As a result of the projected shortfall, other state operations could face additional cuts. Newsom didn’t make the same promise he made for schools to higher education, leaving California State University system officials on edge. In a statement, CSU Chancellor Mildred Garcia said she was “deeply concerned” about a revised state budget that would grant no increase next year, then a 2% increase in 2025-26, instead of a 10% increase over two years as promised in January.   

    “As the institution that educates the evolving workforce of California, this budget places us in a position of making difficult decisions,” Garcia said.

    It was not clear whether the University of California would face similar cuts, although Newsom typically treats both systems similarly. UC officials would not comment on the issue. In a statement Friday, UC President Michael Drake said that the system is hoping to “finalize a budget that sustains the University’s research, public service, and education mission.”  

    The summary of revenue reductions and spending cuts Newsom released lacked the details that usually accompany a May budget revision; however, more information is expected by Tuesday, the deadline for statutory budget language. 

    Some TK-12 advocates expressed relief, nonetheless. 

    “Given the magnitude of the fiscal crisis, that the governor could put together a budget that largely protects K-12 is remarkable,” said education consultant Kevin Gordon, president of Capitol Advisors.

    Derick Lennox, senior director of governmental relations and legal affairs with the California County Superintendents, was more cautious. “We can appreciate the governor’s commitment to hold schools harmless to the extent he can, but so much will all depend on the details for Proposition 98 and what is available,” he said, referring to the portion of the general fund that determines funding for TK-12 schools and community colleges. 

    Newsom said general fund revenues were expected to decline an additional $7 billion for a total of $27.6 billion for the three-year period from 2022-23 through 2024-25. The total deficit would be nearly twice as big, but the Legislature has made a combination of cuts, savings, and deferred spending since January.

    The shortfall for TK-12 and community colleges, due to lower Proposition 98 funding, would be about $4.2 billion. Although details are scant, Newsom would make up for it mostly by emptying nearly all the remaining $9 billion rainy day fund for schools and community colleges.

    Newsom said the average TK-12 per-student funding for 2024-25 would be $17,502 — $151 per student less than proposed in January. Despite that, funding would include a 1% cost of living increase, a smidge higher than in January. 

    The May revision lists about $1 billion in cuts for early education through high school. Most of the programs are funded by the general fund, not Proposition 98. It would preserve ongoing funding for the expanded transitional kindergarten program for 4-year-olds and long-awaited pay raises for child care providers.

    Cuts would include:

    • $425 million to the Children and Youth Behavioral Health Initiative out of a $4 billion investment, which Newsom said would reflect directing more funding to wellness centers at school sites. Carl Pinkston of the Black Parallel School Board expressed concern. “In the aftermath of the pandemic, many students continue to display signs of trauma, adversely affecting their academic performance and overall well-being,” he said. The initiative “is a critical program that champions equity, aiming to improve behavioral health outcomes for children and youth.”  
    • Delayed funding for additional slots for state-funded child care. Instead of funding 146,000 as planned, the state will continue funding 119,000 new slots funded so far. “Delaying access to child care for the next two years to our youngest Californians is deeply troubling,” said Mary Ignatius, executive director of Parent Voices CA, an advocacy group. “Their childhoods do not pause. Their undiagnosed speech or other developmental delays will make it harder for them two years from now.” 
    • Elimination of $550 million in facilities funding for preschools, transitional kindergarten and full-day kindergarten programs. Newsom suggested funding could be included in a statewide school facilities bond. He said Friday that negotiations were continuing with legislative leaders for a bond on the statewide ballot in November.
    • A cut of $60.2 million to the Golden State Teacher Grant Program, which pays up to $20,000 to teacher candidates enrolled in credential programs who commit to working for years in priority schools. 
    • Elimination of $48 million in 2025-26 and $98 million in 2026-27 for increased payments for state preschools that serve additional students with disabilities.  
    • A cut of all but $100 million in ongoing funding for the Middle Class Scholarship Program, which previously received more than $600 million annually. In past years, more than 300,000 students across UC and CSU have received scholarships, which are available to students whose families earn up to $217,000. 

    Criticism of a key fix to the shortfall

    Newsom’s solution for minimizing cuts to schools and community colleges would rely on a controversial maneuver. He would fill in the biggest piece of the shortfall — $8 billion in an unanticipated drop in Proposition 98 revenue in 2022-23 — by treating it as an overpayment of the state’s funding obligation.  Since schools and community colleges have already spent the money, he’d fill in the gap by cutting the general fund — but not until 2028-29, when the state’s revenue picture presumably would have improved. Since Newsom announced the idea in January, the repayment obligation has grown to $8.8 billion.

    An accounting move of that magnitude hasn‘t been done before. The Legislative Analyst Office (LAO) has questioned the tactic, and so did the California School Boards Association in a statement Friday in which it implied it might sue.

    The association’s logic reflects the complexity of the Proposition 98 formula for determining funding. The school boards association asserts that the 2022-23 funding level was not a voluntary overpayment but rather a constitutional obligation on which subsequent years’ levels of funding are set.

    “This accounting gimmick would lower the baseline for calculating education funding in subsequent years, subjecting California schools to lower revenue for the foreseeable future,” school boards association President Albert Gonzalez said. “This sets a terrible precedent that potentially destabilizes education funding and undermines the voters’ intent when they passed Proposition 98 more than 35 years ago.”

    The California Department of Finance has insisted that the solution is legal. However, on Friday, Newsom did acknowledge that Proposition 98 is complicated.

    “You need not only a Ph.D., but a physics degree, an engineering degree and everything else to unpack its complexities,” he said.





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  • CSU reports only indirect investments in Israel; no plans to divest

    CSU reports only indirect investments in Israel; no plans to divest


    Hundreds of San Diego State students protest in support of Palestinians in April.

    Credit: Jazlyn Dieguez / EdSource

    The California State University system disclosed on Tuesday that it does not have direct investments in any companies that might profit from Israel’s occupation of the Palestinian territories and the war in Gaza but has a small amount of indirect holdings through mutual funds.

    The disclosure was made in response to demands by pro-Palestinian student and faculty protests on campuses for CSU to divest from any such companies.

    However, CSU officials again said they will not sell off any of that indirect investment, echoing the position of the University of California. “The CSU does not intend to alter existing investment policies related to Israel,” according to a statement on the CSU website.

    The 23-campus university system had disclosed in April it does not invest in “direct stocks or equities in any companies,” regardless of location. Officials on Tuesday offered additional details about indirect investments in Israel-based firms via holdings in mutual funds that include equities and corporate bonds. Those total $3.2 million, or 0.04%, of all CSU investments, according to a report discussed during Tuesday’s systemwide board of trustees meeting.

    A list of funds CSU invests in was included in a report to the trustees. However, that did not include holdings that individual campuses and related foundations might own separately from the central system. A portal on the university system’s website details revenue and other financial details on each campus.

    A newly published page on CSU’s website says: “Consistent with their legal structures, CSU investments and auxiliary investments are distinct from one another.”

    But given a recent controversy at Sonoma State and the retirement of its president over his promise to discuss possible divestment from firms with ties to Israel, it seems unlikely that any campus would take such an action now.

    Students have also called on the university to divest from all defense and aerospace investments, but officials have refused to do so. CSU has direct ownership of $20.8 million in such bonds and some exposure via mutual funds, totaling $30.6 million of the system’s investments. In total, defense and aerospace investments make up 0.62% of the CSU system’s central investment portfolio.

    CSU Chancellor Mildred García, during her address to the board, made no direct mention of the calls for divestment. But she did urge any protests to be peaceful and to not harm other members of the CSU communities. “The CSU stands unequivocally against acts of hatred, violence, injustice, discrimination, and more specifically antisemitism and Islamophobia,” Garcia said.

    University campuses nationwide have struggled with how to handle protests in recent weeks, actions mainly against Israel’s invasion of Gaza. Israel’s bombardment of the Hamas-controlled Gaza followed the Oct. 7 Hamas attack on Israel, which killed about 1,200 people and resulted in hundreds of hostages being taken. Since then, more than 35,000 people in Gaza have been killed, mostly civilians, and thousands more have been injured, according to Palestinian health authorities.

    The new CSU webpage also details the university’s response to common questions regarding investments in both Israel and the defense and aerospace industries. But one trustee questioned the focus on Israel.

    “I’m not comfortable singling out Israel on a website without singling out Sudan and Russia,” said trustee Leslie Gilbert-Lurie, regarding the information on the webpage. “I’m on the side of human rights and following countries that follow international human rights law.”

    Among the individual CSU campuses, Sacramento State has disclosed that it has no direct investments in assets that might violate its policies forbidding “direct investments in corporations and funds that profit from genocide, ethnic cleansing and activities that violate fundamental human rights,” according to a statement on the university’s website. Reporting by The Sacramento Bee found that Sacramento State “has more $150 million in indirect investments that would be subject for review” under its policy.

    Most recently, Sonoma State University President Mike Lee was disciplined for agreeing to some terms proposed by student protesters on his campus. One such term was “to determine a course of action leading to divestment strategies that include seeking ethical alternatives” to companies with ties to Israel.

    The system’s chancellor, García, then said Lee would be placed on administrative leave for “insubordination and the consequences it has brought upon the system” and acting “without the appropriate approvals.”

    Lee has since apologized and announced his retirement. “In my attempt to find agreement with one group of students, I marginalized other members of our student population and community,” he wrote in a memo last week. “I realize the harm that this has caused, and I take full ownership of it. I deeply regret the unintended consequences of my actions.”





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  • All California students should be empowered to be ready for UC and CSU admission

    All California students should be empowered to be ready for UC and CSU admission


    Making Waves Academy, a charter school in Richmond, tries to instill a college-pursuing attitude while leaving room for kids to enter a career after graduation if they wish.

    Courtesy: Making Waves Academy

    There is a troubling trend in California that makes affordable and quality higher education — which is meant to be a public good — not even an option for most students, particularly Black and Latino students. It’s the inequity of students completing the “A-G” courses required for admission to the University of California and California State University systems. More than half of all students, and over two-thirds of Black and Latino students, did not meet these requirements — too often because the courses were not offered or the students didn’t know they were needed. This means they are ineligible for admission into California’s public universities.

    As CEO of a grade 5-12 charter school in Richmond, I believe the A-G requirements should be seen as an asset rather than an obstacle for California schools. The requirements are transparent and attainable. They help prepare students academically, support eligibility for California’s public universities, and open up a variety of opportunities for students’ future career pathways. Ultimately, this helps alleviate inequities in education, the workforce and the economy.

    At our school, our goal is that 100% of our students are ready for college while also embracing, supporting and celebrating students who want to pursue early post-secondary career options. Within the Class of 2024, 95% of our graduates are pursuing higher education, and within that group, 71% are planning to attend University of California or California State Universities campuses. Among our 1,000 or so fifth through 12th graders, 99% are students of color, and 85% are from socioeconomically disadvantaged backgrounds.

    Here is how school and district leaders can build a culture around supporting students in meeting the A-G requirements.

    Align your curriculum to the A-G requirements

    Students don’t know what they don’t know. And they don’t always know there are specific course requirements to be eligible to attend public universities. It is our responsibility as school leaders and systems to align our curriculum to the A-G requirements and remove that burden on individual students.

    The good news is that this is not a very heavy lift. In California, students are already required to take a variation of core academic subjects listed within the A-G requirements, such as English, history, science and math. Making sure students are taking a lab science class, a third year of a world language, or a math up to Algebra II are small but meaningful adjustments to their course schedules that would help more students meet the A-G requirements, thus meeting eligibility requirements for UC and CSU campuses. 

    Get creative to track individual students

    For every college and career counselor in California, there are 464 students. It’s no wonder 56% of California students experience barriers to meeting the requirements. Instead of relying solely on counselors, make the most of advisory period. Advisory period teachers can reinforce college readiness and help track individual students’ progress on the A-G requirements. Our advisory teachers track the same cohort of students from ninth through 12th grade. With this support, students can also practice their agency by being actively involved in mapping out their courses and paying attention to their post-graduation plans, which serves them well whether they ultimately pursue college or not.

    Be inclusive of non-college-going students

    It is important to note that a culture that embraces the A-G requirements and college readiness and a culture that embraces a continuum of college and career options can and should live side by side. It is a both/and approach not an either/or approach. Allow for both. When you align to the A-G requirements, you ensure that students meet the “floor” for college eligibility. Build further understanding with students on the continuum of attainable pathways. For example, the A-G requirements can also align with career technical education, which integrates core academic courses with technical and occupational ones. This way, students can explore career interests and still remain eligible for college. Knowing the range of options available means students can choose what’s best for them.

    Communicate early and often with parents and families 

    California has some of the world’s best and most affordable opportunities for higher education. Tragically, many students and families don’t know these opportunities are attainable. The importance of the A-G requirements and information around college affordability must be communicated to students and families early and often. Ideally, regular updates and information sessions start with students and families in middle school. For example, we set clear expectations with students and families at fifth grade orientation. We talk to them about the A-G requirements being built into our curriculum and about our school culture around college readiness. Time and time again, we see ecstatic students and families when they realize college is accessible and attainable.

    It’s our responsibility as school leaders or school systems to provide the necessary courses and support to bridge the inequities between high school to college and careers. The logistical challenges are surely outweighed by the opportunities: more racial representation in higher education, an increase in economic mobility for students from low-income backgrounds, and a more diverse and educated workforce.

    •••

    Alton B. Nelson Jr. is the CEO of Making Waves Academy in the Bay Area city of Richmond.

    The opinions in this commentary are those of the author. We welcome guest commentaries with diverse points of view. If you would like to submit a commentary, please review our guidelines and contact us.





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  • UC, CSU face cuts under Newsom’s proposed budget

    UC, CSU face cuts under Newsom’s proposed budget


    Students walking on the campus of California State University, Dominguez Hills on Nov. 19., 2024.

    Amy DiPierro

    The University of California and California State University are facing nearly an 8% reduction to their state funding for 2025-26 under Gov. Gavin Newsom’s budget proposal unveiled Friday, raising concerns about the impact on their campuses.

    Top officials at both of the state’s public university systems immediately warned that the cuts, which were telegraphed in last year’s budget agreement, would result in larger class sizes and fewer available courses. They hope the Legislature will restore some of those funds before the budget is finalized this summer.

    UC, which has 10 campuses, would see a decline of $396.6 million in funding while the 23-campus CSU would lose $375.2 million under the governor’s proposal for next year. 

    Newsom also plans to defer previously promised budget increases of 5% — part of his multiyear compact agreements with the systems — until 2027-28.

    CSU Chancellor Mildred García expressed disappointment that the governor’s budget maintains cuts even in light of a rosier state budget outlook than previously projected — and said she hopes that funding will be restored if state revenues improve. The CSU enrolls more than 460,000 students, the great majority of them undergraduates.

    “The impact of such deep funding cuts will have significant real-world consequences, both in and out of the classroom,” García said in a statement. “Larger class sizes, fewer course offerings and a reduced workforce will hinder students’ ability to graduate on time and weaken California’s ability to meet its increasing demands for a diverse and highly educated workforce.”

    UC President Michael Drake offered fewer specifics but said he is concerned over how the cuts might affect “our students and campus services.” UC enrolls just shy of 300,000 students.

    Newsom’s proposal is only the start of the budget process. He and lawmakers will negotiate over the next several months as updated revenue projections become periodically available before the budget is finalized in the summer.

    The state’s system of 116 community colleges fared better and would receive $230.4 million in new general funding as part of a small cost-of-living increase under Proposition 98, the voter-approved formula that determines how much money K-12 schools and community colleges receive from California’s general fund. The system enrolled more than 1.4 million students as of fall 2023.

    Community college leaders responded favorably to the proposed budget’s support for career education and workforce development. “The governor’s emphasis on career education and recognition of prior learning aligns with our colleges’ mission to assist 6.8 million adults in advancing their career paths through their local community colleges,” Nan Gomez-Heitzeberg, a member of the California Community College trustees, said in a statement.

    State funding is only one source of revenue for the two university systems, which also get money from student tuition and fees as well as federal support. 

    In total, the governor’s budget proposes $45.1 billion for the state’s three higher education segments – UC, CSU and California Community Colleges — plus the California Student Aid Commission, which administers the enormous Cal Grant aid programs and others.

    Under Newsom’s multiyear compact agreements, first announced in 2022, UC and CSU were due to receive 5% annual budget increases in exchange for making progress toward goals like increasing graduation rates, eliminating equity gaps in college completion and enrolling more California residents. With Newsom planning to cut funding and defer those increases, achieving the goals could prove challenging. 

    “In the absence of that incentive, I think we in the equity community and students are going to have to really ensure that we are demanding that our CSU and UC leaders continue to hold the line and honor their commitment to students even in leaner fiscal times,” said Jessie Ryan, president of the Campaign for College Opportunity, a nonprofit organization that advocates for expanding college access in California. 

    Cal State’s 2025-26 budget request pleaded for the state not to cut its base funding and not to defer the money promised in the system’s previous agreement with the Newsom administration. CSU officials estimated that a 7.95% cut was tantamount to what’s needed to serve more than 36,000 full-time students. 

    The CSU system sought an operating budget of $9.2 billion, $593 million more than in 2024-25. That includes money for line items CSU officials say they can’t avoid, like increases to liability and property insurance and health care premiums. The budget request argues that a funding cut “would severely constrain” CSU’s ability to deliver on other top priorities, like programming for students’ basic needs and mental health.

    In contrast, Newsom’s budget proposal was met with a warmer response from the chancellor of the state’s community college system, Sonya Christian, who said it “supports the priorities” of the system. In addition to the cost-of-living increases, Newsom’s budget includes several new funding proposals for the community colleges. They include:

    • $168 million in one-time funding for a “statewide technology transformation” project that will streamline data collection across the system, including automating credit transfers between colleges
    • $100 million to expand “credit for prior learning,” under which colleges award credit for skills learned outside the classroom, such as in a job or by volunteering 
    • $30 million in ongoing funding to expand the Rising Scholars Network, programs that provide services for current and formerly incarcerated students

    Friday’s proposal also includes a nearly 8% cut for the California Student Aid Commission, but its programs would still receive a hefty $3.1 billion. Most of that money — $2.6 billion — would go toward the Cal Grant program, which provides aid awards for roughly 417,000 students. The remainder would fund the Middle Class Scholarship and the Golden State Teacher Grant Program, which aids students studying to become teachers who commit to working in high-need schools. 

    “The governor’s proposed budget recognizes the role of financial aid in students accessing the life-changing opportunities of California’s higher education institutions,” Daisy Gonzales, executive director of the commission, said in a statement.

    Christopher J. Nellum, the executive director of EdTrust-West, said the January budget maintains the state’s commitment to educational equity. But he said the state should “aggressively invest more in education and keep California focused on ensuring any new resources advance racial equity” in anticipation of the incoming Trump administration, which has signaled its opposition to diversity programs. 

    Emmanuel Rodriguez, the senior director of policy and advocacy for California at The Institute for College Access & Success (TICAS), said in a statement that the state must also ensure the Bureau for Private Postsecondary Education is adequately equipped “to shield Californians from anticipated federal regulatory changes that will leave students more vulnerable than ever to predatory, low-quality colleges.” The bureau has the authority to discipline postsecondary institutions if they don’t provide the promised education or prove to be fraudulent. 





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  • How CSU campuses are helping more students graduate on time, without debt

    How CSU campuses are helping more students graduate on time, without debt


    Student para-planners at the Chico State Financial Wellness Clinic provide the campus community with free financial planning and education services overseen by a licensed financial planner.

    Credit: Jessica Bartlett / Chico State

    There’s a group of students whose fate has largely been forgotten amid the shifting political and policy landscape of higher education. It’s young people from lower-income backgrounds who are taking classes and studying while also working, caring for their families, and struggling to afford housing and basic needs, such as food.

    As the shifts continue, institutions and their allies can step up and do more to ensure these students complete their studies and realize the lifelong benefits of graduating with a bachelor’s degree. And they can do so by prioritizing affordability, recognizing that cost is often a major barrier to student success.

    Consider the example of Dejanae Wilson, who graduated from California State University, Chico, last year with a bachelor’s degree in social science. While working toward her degree, she was also caring for three younger siblings. 

    “I had a lot on my plate trying to manage our finances and keep up with my courses,” she said. 

    To ensure that Dejanae could graduate on schedule and according to plan, she turned to the recently established Financial Wellness Clinic at Chico State. Thanks to consultations with both a student and a faculty adviser at the clinic, she managed the household budget and connected to campus resources (like the Hungry Wildcat Food Pantry), which offered her family crucial support.  

    “It’s easy to get caught up in the flow of life, your job, and taking care of people — and not realize there are resources on campus that can help,” Dejanae said.

    Across California State University’s 23 campuses, administrators, faculty and students are working diligently to support students like Dejanae to complete their studies on time and according to plan. From expanding mentorship, tutoring, and academic advising, to increasing access to financial counseling, to instituting early warning systems to identify and support struggling students, campuses are piloting a range of promising approaches to support student persistence and success. These approaches often build on existing campus policies and programs, making them impactful and achievable.

    The Financial Wellness Clinic at Chico State, led by finance professor Jaycob Arbogast in the university’s College of Business and staffed by finance students, is just one example of these practical and effective strategies. This well-organized and structured program, which seamlessly integrates classroom learning with practical experience to support student needs, was recognized for its effectiveness and bestowed the prestigious Catalyst Fund award by the National Association of Higher Education Systems. The awards recognize replicable programs and strategies that California’s public colleges and universities are pursuing to remove cost as a barrier to higher education.

    At CSU Channel Islands, another innovative initiative that received Catalyst Fund support has provided additional resources to students who are struggling academically so they can stay on track and reduce the time (and costs) of earning a degree. Launched in spring 2022, the initiative targets students who have nonpassing or incomplete grades and/or other indicators that they are not progressing academically. The program connects these students to faculty and peer mentors and special, cohort-based activities where they bond with other students and develop skills and mindsets that support their persistence and success.

    Early results from the program show that participating students’ average GPAs increased, and the percentage of students who graduated or returned for the following semester was higher than that of the general student population. Interestingly, one of the key benefits students point to is how the program builds connections with peers facing similar challenges. As one student said after participating in the program, “You are able to be part of a group that becomes your family, you learn about the experiences of other students, and realize you are not alone.”

    Supporting students to persist in their studies can take several forms. At Sonoma State University, students who are the first in their family to go to college are 47% of all undergraduates. As university officials started to see a decline in retention among these “first-gen” students during the Covid pandemic, they developed an early alert system that pings a student and connects them to their adviser and other support when a faculty member reports low test scores or attendance problems. At the end of the program’s pilot year in 2023-24, 97% of first-year, first-gen students enrolled in the program ended in good academic standing and returned the following fall.

    What’s happening at Sonoma State and the other CSU campuses is part of a broader commitment to closing the equity gap in higher education across a university system that, despite its uniquely diverse student population, continues to experience racial disparities in degree completion. It was in response to these disparities that CSU set a goal to increase graduation rates between 2015 and 2025. Thanks to Graduation Initiative 2025, the system has nearly doubled its four-year graduation rate for first-year students, and undergraduates are earning their degrees faster than ever before.

    Expanding access to a bachelor’s degree and supporting student persistence and success are core functions of the higher education system. In California and across the nation, campuses are showing it’s possible to do better, even in today’s uncertain political and policy environment. All it takes is creativity and a commitment to students who might otherwise struggle to achieve their college dreams.

    •••

    Dilcie Perez is a deputy vice chancellor and chief student affairs officer for the California State University system. Monica Martinez is program director for college success at the Evelyn and Walter Haas, Jr. Fund.

    The opinions in this commentary are those of the authors. If you would like to submit a commentary, please review our guidelines and contact us.





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