Tuition for California State University students will increase by 6% annually for five years starting in the 2024-25 academic year, as approved on Wednesday by the university’s Board of Trustees.
According to the plan, undergraduate tuition at CSU will rise from the current $5,742 to $6,084 in 2024-25. It will then increase to $6,450, $6,840, $7,248, and ultimately reach $7,682 in 2028-29.
A staff report outlining the proposal states, “State general fund and student tuition revenue are the two primary sources that support the university’s annual operating budget plan and the educational endeavors of approximately 460,000 CSU students.” The report also notes that the new revenue generated from the tuition increase will not be enough to fully support the budget plan’s new expenditures.
The tuition increase is projected to generate an additional $148 million in the 2024-25 academic year.
Initially, CSU was considering a continuous 6% tuition hike, but due to opposition from students and some trustees, the proposal was limited to five years. The rising cost of living and housing was cited as a concern regarding the financial burden it would place on students.
During the Trustees’ Finance Committee meeting, a motion to reduce the schedule to only three years was rejected. Later, during the full Board of Trustees meeting, another motion for a four-year increase was also rejected.
Interim CSU Chancellor Jolene Koester strongly defended the current proposal and opposed any reduction in the length of the tuition increases, emphasizing the financial impact it would have on the university system.
The tuition hikes are necessary to address a budget shortfall of approximately $1.5 billion, according to university officials. They stated that without additional revenue, there may be potential cuts to course offerings and other services.
It should be noted that over half of CSU students receive grants or scholarships that fully or partially cover their tuition costs.
Trustee Jack McGrory acknowledged that raising student costs is a challenging decision. He emphasized that 60% of the CSU system’s funding comes from state money, while the other 40% is from student tuition.
He added, “We’ve had only one increase in tuition in 12 years. That’s not a business model that’s going to work long-term. It’s not sustainable.”
Lt. Gov. Eleni Kounalakis voiced opposition to the tuition hike, expressing concerns about its consequences among the student body. She urged the board to delay the increase until further studies are conducted on its impact.
The decision to continue the tuition hikes beyond the five years will depend on the assessment of the impacts on students as required by the CSU.
CSU Chief Financial Officer Steve Relyea highlighted the need for tuition increases after a lack of adjustments in 11 of the past 12 years. He acknowledged that some students will face financial challenges but assured that the university is addressing their concerns through increased tuition support funding, establishing a financial aid advisory committee, and including students in the tuition assessment process after the hikes are implemented.
During the implementation of the tuition increase, CSU plans to allocate $49 million in the first year and gradually increase financial aid funding to $280 million over the five-year period.
Protests by student and other groups opposing the tuition measure were held prior to the vote. Critics highlighted executive compensation within the CSU system and the potential impact on marginalized and underrepresented students.
Despite the opposition, the tuition hike was approved by the CSU Board of Trustees.
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