State budget shifts leave the CSU with an increase in fundings, yet to be determined where funds will end up. Graphic by Dante Estrada | Long Beach Current
On Jan. 9, 2026, Gov. Gavin Newsom released his proposed 2026-27 state budget. This includes a 5% increase in California State University’s funding, as promised under the state’s multi-year higher education funding compact.
Last year’s budget cycle opened with Newsom proposing an 8% cut to CSU funding, before the revised budget reduced it to 3%.
In the same proposal, portions of previously promised university funding were pushed into future fiscal years, with the payments being deferred to 2026-27 and 2028-29.
Long Beach State’s Associate Vice President of Budgeting and Administration Kara Perkins oversees the university’s operating budget.
The operating budget outlines the university’s major revenue sources and expenses, and shows how funding is allocated across campus divisions. Funds are distributed across Academic Affairs, Student Affairs, Administration and Finance, University Relations and Advancement, Information Technology, Department of Athletics and the President’s office.
CSULB’s operating budget revenue is currently 53% state funding, so changes in state support can have a major impact on the university’s finances.
Perkins said the 3% cut affected the university, but because it was relatively small compared to CSULB’s overall budget, the campus was able to absorb it and wasn’t forced to cut any of the divisions’ budgets.
CSULB also received additional enrollment-growth funding after money was reallocated from other CSU campuses that did not meet enrollment targets, helping offset the loss.
The CSU Board of Trustees’ plan, approved in 2023 to raise systemwide tuition 6% each year for five years, also helped mitigate the costs.
While the CSU system is slated to receive about $365 million in additional state funding under Gov. Gavin Newsom’s proposed budget, how much of that money CSULB would receive remains unclear; the Chancellor’s Office has not announced how the funding will be distributed across the system’s 23 campuses, Perkins said.
While the state is increasing funding for the CSU system this year, Perkins said this might not necessarily be a net positive.
“When the state cut the entire CSU budget last year by approximately $143.8 million, they then offered it to us in the form of a loan that we would have to pay back…We still have to pay that back to the state, and so even as we get new money, we still owe them $143.8 million,” Perkins said.
Vice Provost for Academic Planning Dhushy Sathianathan oversees academic and strategic planning, faculty planning and financial planning tied to the Academic Affairs budget.
Sathianathan said about 70% of the division’s budget goes to faculty salaries, with the rest allocated to colleges and units that support Academic Affairs, including the university library, Academic Technology Services, and other academic support programs.
According to Sathianathan, the state has been financially challenged, but CSULB is able to manage it because we can match enrollment to the budget, which helps fulfill the student body’s course needs.
“Our priority is that all of our students have sufficient classes. This campus has done extraordinarily well in making sure course availability is there,” Sathianathan said.
Sathiananthan emphasized that Long Beach State overall does a great job at managing its resources to support student success, and that most of our student success metrics place us in the top three CSUs.
Student success not being financially supported for a long period of time can create fluctuations in course availability, leading to classes becoming unavailable.
“I think that we have really been able to sustain the momentum of student success,” Sathianathan said.
Jayden Sandstrom is a junior at California State University, Long Beach, majoring in business finance and management. This is his first year with the Long Beach Current, where he serves as a news assistant. Outside of the Long Beach Current, Jayden works part time at a restaurant and is involved with ASI and the University Honors Student Association. After graduation, he plans to attend law school and pursue a career in either entertainment law or corporate law.