By Griffin Mancuso
Cal Poly Humboldt may be faced with an $8 million budget deficit in the 2024-2025 school year.
At an Associated Students meeting on Feb. 9, Provost Jenn Capps and University Budget Office Director Amber Blakeslee gave a presentation on the university’s estimated budget and how they plan to address it.
Beyond Cal Poly Humboldt, the entire CSU system is faced with budget constraints. Each year, the state governor puts out a proposed budget for the CSU system. After months of discussion and advocacy, the governor publishes a revised budget in May, which is then finalized in June. Currently, the 2024-2025 proposed budget for California projects a $38 billion deficit. CSU campuses get most of their funds from the state budget and funds are distributed based on enrollment.
However, the governor and the CSU system have an agreement where their portion of state funding will increase by 5% every year, provided that the campuses continue meeting their student success outcomes. Because of the current deficit California is facing, the planned $240 million base increase will be delayed by a year and paid back retroactively. There is a chance that funding won’t be available for the 2025-2026 school year, so the CSU system is trying to redivide its funding among over-enrolled and under-enrolled schools.
“The system is sort of reshuffling, so for campuses that were under-enrolled, [that means] reducing the targets, which means reducing funding and shifting that to campuses that are above target,” Blakeslee said. “And so for our campus, we’re going to have our target reduced by 3% next year, which means 3% of the funding will pull back as well, so it’s about a $2 million impact to our campus that we need to navigate as part of budget planning.”
While the university’s revenue is increasing, expenses are increasing at a faster rate. For the 2024-2025 school year, the university is expecting funding from the state, the 6% tuition increase, enrollment, and California Polytechnic funding, totaling at $170 million. The deficit from compensation and benefits, financial aid, and other costs are estimated to reach $178 million.
Blakeslee described how budget planning for the campus looks at three different scenarios for enrollment, including a baseline scenario, the best case scenario, and worst case scenario. The baseline enrollment increase projected for next year is 2.6%.
“As a campus, we’re actively working toward ambitious growth,” Blakeslee said. “From a budget standpoint, we are conservatively planning but watching closely because we want to make sure that we are proactively supporting and growing capacity where needed as we realize the growth, but we also don’t want to spend it before it happens.”
Carla Ho’ā, the interim Chief Financial Officer and Vice President of Finance and Administration, emphasized the university’s priority being the student population and minimizing negative effects when making budget cuts.
“Financial resiliency is another aspect of this,” Ho’ā said. “It can be tempting at times to make short-term decisions that have long-term, and sometimes negative, consequences. [We’re] really needing to be thoughtful and looking out into the future and about the financial resiliency of the university for the long-term, like having sustainable decisions built into the process.”
When deciding where to allocate funds for Academic Affairs, Capps collaborates with the department heads of the colleges, the library dean, and other areas to share strategies and distribute funding. She said that the university hopes to provide more opportunities for student collaboration in the future.
“What has been asked in a lot of different spaces is, ‘Hey folks, could you share with the campus community what ideas you generate, what potential opportunities you might be going after, before you actually do it?’” Capps said. “So that you all know what we’re considering, what we’re thinking about, and potentially have a shot to weigh in.”
Capps also said that the University Resources and Planning Committee – a part of the University Senate with representatives from faculty, staff administration and students – is hoping to hold a public forum at least once a semester. The URPC has two seats reserved for student representation and is responsible for drafting a budget proposal for the university president.
The URPC budget recommendation will be finalized next April. The presentation encouraged students to provide input and engage with AS, administration, and other representative student communities. Several positions in AS are currently open, such as Environmental Sustainability Officer, Public Relations Officer, and college representatives. Elections for AS will be made public on March 6. For more information on the university budget and upcoming elections, you can visit the URPC and AS websites.