California governor Gavin Newsom’s $322 billion budget plan, revealed in greater detail Friday, came with some notable wins and losses for higher ed.
The proposed 2025–26 fiscal year budget slashed ongoing state funding to the California State University system by $375 million, an almost 8 percent reduction. The University of California system is also slated for a $271 million funding cut.
University of California president Dr. Michael V. Drake said in a statement that he was “concerned” by the funding reduction “at a time when the University is enrolling record numbers of California students.”
“I look forward to our continued collaboration with the Legislature and the Governor throughout the budget process to mitigate any harmful budget impacts,” Drake said.
California State University chancellor Mildred García expressed similar dismay.
“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.”
But the budget plans aren’t all bad news for students. The California Student Aid Commission praised the budget for maintaining a $3.2 billion investment in state financial aid, including $2.6 billion toward Cal Grant awards and $527 million toward the state’s Middle Class Scholarship.
“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 California Student Aid Commission, said in a statement.
Sonya Christian, chancellor of the California Community College system, also thanked Newsom for making a $100 million investment in its credit for prior learning efforts, among other initiatives, as part of his Master Plan for Career Education. She said in a statement that the proposed budget “charts a course to lift low-wage workers into living-wage jobs,” a goal of the community colleges’ as well.
