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Budget and Resource Planning

Our Current Budget Status

This budget information is current as of 11/1/24. This page will continue to be updated as we have more information and updates to share.

Below you can find information on Fresno State’s overall budget for fiscal year 2024-25, budget strategies utilized to ensure a balanced budget based upon CSU budget allocation, and campus contributions to unfunded mandatory cost increases. Our commitment to transparency remains at the core of our budget planning, ensuring that our campus community is informed of systemwide and campus decisions. 

Fresno State, like all CSU campuses, is impacted by statewide budget constraints due to lower-than-expected tax revenues in California. This year, even though the CSU has an increase in tuition and has secure funding, our campus is responsible for covering a significant portion of mandatory costs, such as negotiated employee salary increases, as these were not fully funded by the State or the CSU system. This lower support from the Governor and the Legislature has resulted in the need to reduce operating budgets to balance the overall campus budget. In addition, the CSU competes with critical areas of need in our State, from housing insecurity to social programs and initiatives –the CSU does not have a secure budget line item in the State’s budget. 

The CSU is vulnerable to state budget cuts because it does not have the same level of financial protection as other parts of California’s higher education system. The University of California has constitutional autonomy, and K-16 education, including community colleges, is funded by Prop 98, which ensures a fixed percentage of the state’s budget. The CSU, however, is treated as a discretionary budget item, making it dependent on annual tax revenues or the priorities of the Governor and Legislature. When these revenues decline, as they have this year, the CSU system faces cuts. Compounding this situation is that the CSU competes for state resources with myriad entities that seek its support –from social services to entrepreneurship initiatives. Fresno State’s share of these cuts totaled around $10 million this year. For next year, the CSU is projecting the cuts from the Governor and Legislature will be approximately $397 million; Fresno State’s share of that cut is approximately $20 million in FY 2025/26. As we remain committed to transparency and to advocating for Fresno State’s role in educating the Central Valley's students, the President and Cabinet are exploring all possible ways to mitigate this responsibility. 

Fresno State has already implemented several cost-saving measures to mitigate the impact of the reduced state revenue. These include:

  • Hiring Freeze: We’ve instituted a hiring freeze on all non-essential positions. Active employee searches critical to campus operations will continue, but any new exceptions will require approval from the Division VP and President.
  • Purchasing and Travel Restrictions: Effective in Spring 2024, we restricted non-essential purchases and travel to help reduce expenditures. Only mission-critical expenditures will be considered.
  • Budget Reduction Plans: Each Cabinet member was tasked with developing a budget reduction plan that takes into account the projected shortfall for FY 2025/26 primarily focusing on any position consolidation or reorganization that could impact our number of MPP positions and overall employee FTE. Currently, the Cabinet is looking into the strategic reduction of MPP positions, as a first step in meeting the current budgetary challenge.   
These measures are part of an effort to proactively manage the university's financial resources in light of the current challenges.

No, Fresno State has achieved a balanced budget for the 2024/25 fiscal year, which is an important accomplishment given the financial challenges facing the CSU system. Through strategic financial planning and prudent resource management, we’ve been able to balance our budget while maintaining a strong commitment to our mission of educating our students. 

Fresno State implemented a 5% budget reduction across all divisions for the 2024/25 fiscal year. Each division was responsible for managing its own reduction plan based on specific priorities and operational needs, ensuring no single group bears a disproportionate burden.

While Fresno State has a balanced budget for FY 2024/25, the Governor and the Legislature have indicated that there are more severe financial challenges for the CSU expected in the coming years. This may lead to the consideration of student fee increases to support critical programs and services that promote student success and enhance co-curricular experiences, such as campus shuttles or club sports.

Each Cabinet member worked closely with their division's respective leadership team to develop a budget reduction plan, which resulted in a 5% cut across all Divisional Level A budgets. Each division developed their respective budget plan utilizing the strategies suggested by the CSU. For specific details regarding a particular division budget reduction plan, please contact the Division VP or Cabinet member.  The objective was to ensure a balanced budget in light of unfunded mandatory cost increases while prioritizing essential services and minimizing impacts on student success.

Given that some divisions have a larger slice of the overall Level A budget allocation, it was not feasible to ask some of the smaller divisions to absorb a higher percentage reduction; this would be untenable operationally in order to spare the larger divisions, as a cut of 5% in one division represents more than the entire allocation for some of the other divisions.  

Certain new administrative positions, such as those related to Title IX and NAGPRA compliance, are a campus and CSU priority and are mandated by state legislation. These positions are critical to ensuring campus compliance and safety. Other administrative positions being filled were existing vacant roles deemed essential for operations, or deemed critical for increasing our revenue; many other administrative positions have been left vacant.

For the 2024/25 fiscal year, Fresno State has avoided layoffs of full-time faculty and staff. However, certain vacant positions will remain unfilled to manage the budget reduction.

No, the Save Mart Center's debt was approved by the CSU Board of Trustees and has been part of the CSU Systemwide Revenue Bond program since 2005. Its capital lease payments are covered by Association revenues, not student fees or operating budgets. The university’s budget reductions are unrelated to the Save Mart Center’s financing obligation to the CSU/university.

The Governor and Legislature follow a standard budget process each year, with key milestones in January, May, and June. The Governor typically releases a proposed budget in January, followed by the May Revision, which takes into account updated revenue forecasts. The final state budget is usually approved by the Legislature in June. For the next fiscal year, we will gain more clarity on potential reductions when the Governor releases the budget proposal in January 2025. At that point, we will have a better understanding of any adjustments or reductions that may be necessary, with further updates following the May Revision. Throughout this period, we will continue to monitor the situation closely and provide timely updates as we learn more.

Despite the 6% increase in tuition, Fresno State is still faced with a budget shortfall due to significant unfunded mandatory cost increases.  The tuition increase will generate $7.8 million for Fresno State. Only two thirds (approximately $5.2 million) of the tuition increase can be used to address budgetary needs, as the remaining one third ($2.6 million) must be used exclusively for financial aid for students (State University Grants). The remaining balance of $5.2 million is not enough to fully cover rising operational costs and unfunded mandates (e.g. utilities have increased 20% each year, insurance premiums, health benefits, and union-negotiated compensation increases) that have not been funded by the State to the CSU.  In 2024/25, the university covered 78% of the union-negotiated compensation increase from our own permanent base funding (general fund). 

This year, the State of California experienced lower-than-expected tax revenues, which affected its budget allocation to CSU (reduced by $75 million), leaving campuses like Fresno State responsible for covering a significant portion of mandatory costs—such as employee salary increases—that were not fully funded. As a result, Fresno State must manage a portion of these recurring necessary operational expenses that are not covered by the increased tuition revenue. 

Dear Colleagues,

This last Friday, the Governor delivered the May revised budget, and the outcome for the California State University system is very concerning. 

As you recall, based on the California Master Plan for Higher Education of 1960:

The University of California forms part of the California constitution and therefore enjoys constitutional autonomy – they present a budget, and the Governor and Legislator do their best to comply.

Prop 98 appropriates 45% of the Legislature’s budget (revenue comes from annual taxes generated) for K-16, which includes our community college partners.

This scenario leaves the CSU as a discretionary budget line that is dependent upon State tax revenues and vulnerable to budget cuts.

To mitigate this situation, Governor Newsom agreed to a five-year Compact with the CSU two years ago – each year, the State would allocate $240 million to support enrollment growth for the system. 

Given that the tax revenues are not as strong as last years’, the Governor is proposing the following:

  1. To postpone the $240 million compact funding (Year 3) from 2024-25 until 2025-26. Each University may be expected to use its own reserves to cover the deferral. Fresno State’s contribution could be approximately $12 million (5%). In addition, the Governor is proposing a one-time budget reduction of $75 million in FY 2024/25.
  2. In 2025-26, the State would provide the CSU with that year’s $240 million allocation, plus the previous year’s $240 million that was deferred from 2024/25.
  3. Yet, in 2025-26, the State would also implement an 8% budget cut to the CSU. This 8% cut would erode most of the $480 million for 2025-26 to approximately $98 million. A reduction of $380 million, or approximately $20 million for our campus, in FY 2025/26.


What does this mean for Fresno State? 

We will have to implement a hiring freeze and purchasing restrictions on non-essential travel as well as restricting non-essential expenditures, effective immediately. This does not apply to active employee searches that are critical to campus operations already in progress. Any hiring exceptions will need to be approved by both the Division VP/Cabinet member and myself.

Unfortunately, our campus does not have permanent base funding to cover this projected shortfall. The factors contributing to this shortfall include a decrease in actual tuition revenue earned, 55% of the annual cost of recent compensation increases for which Fresno State is responsible, significant increases for electricity (20% increase each year), as well as increases in employee benefit costs.

In addition to implementing a hiring freeze and restricting all non-essential travel and non-essential operating expenditures, I have asked each Cabinet member to develop a budget reduction plan that considers the projected reductions in both FY 2024/25 and FY 2025/26.

I recognize that budget uncertainties cause understandable concern, and I want to commit to all of you that we will provide transparent and ongoing communication as the budget conversations continue. I also commit to you that I will advocate, at every possible opportunity, for our Fresno State and our noble goal of educating our Valley’s brightest.

Sincerely,

Saúl Jiménez-Sandoval, Ph.D.
President

This section houses essential documents, links, and other resources that community members can access for more in-depth information about Fresno State’s 2024-25 budget.

Message from the President

"Fresno State is committed to being transparent and making the best decisions we can during these budget challenges. Our 2024-25 budget situation is due to reductions in state funding, and thanks to the hard work and careful planning of our leadership team, with input from many across campus, we’ve managed to balance the budget without sacrificing our mission or laying off faculty or staff. I’m proud to share that, unlike some other CSU campuses, Fresno State does not anticipate further budget cuts this fiscal year. My top priority is always to protect student success and to ensure our faculty and staff are recognized for their hard work—because they are essential to our success."

- President Saúl Jiménez-Sandoval