Cal State East Bay Budget Hub

Welcome to the Budget Hub

Here you’ll find key operating fund budget information about Cal State East Bay. Our goal is to offer transparency and keep our community informed about the university's fiscal health and strategic financial planning.

Explore reports, data, and frequently asked questions to better understand the university’s budget and finances.

students walking in front of the Recreation and Wellness Center (RAW)

A panoramic view of a campus with modern architecture set against a backdrop of blue waters and mountains in the distance.

Students walking in front of a modern Recreation and Wellness Center featuring a striking architectural design and outdoor seating.

Understanding Our Budget

Our budget outlines how our operating funds are allocated across various university units, ensuring alignment with our mission to support student success and institutional excellence.

Most of Cal State East Bay’s operating revenue comes from tuition and state support. Our main expenses include salaries, benefits, and other essential campus costs.

Description of Operating Budget
Category	Details
Operating Budget	The financial plan for the operating budget which includes planned revenue and expenses for the upcoming fiscal year.
Revenue Sources	State Appropriations, Tuition & Fees
Expenditures	Salaries, Benefits, Operational Costs

2024–25 Operating Budget: Where We Stand

Cal State East Bay’s 2024–25 operating budget plan reflects the university’s current financial priorities and the realities of our projected structural deficit. This section offers a snapshot of our planned operating deficit this year and the steps we’ve taken to reduce the budget gap while supporting student success.

The following chart shows our operating budget and how it is divided into the following categories: State Appropriation, Tuition and Other Fees, and Projected Budget Deficit.

Pie chart illustrating the revenue sources for the 2024-25 operating budget, highlighting state appropriation and tuition/fees, along with a projected deficit.

Revenue Sources
Revenue Sources	Amount
Total Operating Budget	$245.2M
State Appropriation	$134.7M
Tuition and Other Fees	$96.3M
Projected Starting Deficit	($14.2M)

Deficit Reductions Underway
Deficit Reductions Underway	Amount
Projected Starting Deficit	($14.2M)
Identified Reductions to Date	$4.4M
Projected Updated Budget Deficit	($9.7M)

All numbers are rounded to the nearest million.

Steps Taken to Reduce the Budget Gap

📤 Voluntary Separation Incentive Program (VSIP): Offered to eligible employees to reduce long-term salary costs
👔 Elimination of 11 MPP Positions: Streamlining administrative roles from the operating budget
❌ Discontinuation of a Sports Team: Strategic reduction in athletic program spending
🏚️ Decommissioning of Robinson Hall: Facilities savings through reduced maintenance and utilities
📊 Course Section Alignment: Adjusting course offerings to better match current enrollment levels

2025-26 Operating Budget: Planning for Our Future

As we prepare for the 2025–26 fiscal year, Cal State East Bay is planning for a larger budget shortfall driven by rising costs and ongoing enrollment challenges. This section outlines our projected deficit, early planning efforts, and the strategies we're exploring to ensure financial sustainability while staying focused on our mission.

Key Planning Considerations

📉

Projected Budget Deficit
Estimated at $23.8 million, up from $9.7 million in 2024–25

🎓

Enrollment Impact
Continued declines in enrollment would reduce tuition fee revenue, widening the budget gap

🧾

Rising Costs
Possible mandatory increases in compensation, benefits, and utilities will add financial pressure

📊

Multi-Year Planning
A strategic, multi-year approach is being updated to stabilize the budget beyond 2025–26

🛠️

Tiger Teams at Work
Budget and enrollment “Tiger Teams” are actively generating solutions and recommendations

🤝

Collaboration Across Campus
Planning will involve continued input from shared governance groups and campus stakeholders

The current projected deficit assumes flat enrollment and includes preliminary cost data from the Chancellor’s Office. Updates will be made to this site as information becomes available--please note that these preliminary projections will change.

Planned Steps to Close the 2025–26 Budget Gap

🧊 Continued Hiring Chill: Ongoing limits on hiring to control personnel costs
🚫 Controlled Travel & Entertainment: Reduced non-essential spending
🏢 Oakland Center Lease Termination: Ending the lease to eliminate facilities costs
📊 Course Alignment: Further refinement of course sections based on enrollment and demand
🔁 Administrative Reorganization: Savings through shared services and streamlined structures
📉 Additional Base Cuts: Strategic reductions allocated across divisions

QUESTIONS FROM OUR COMMUNITY

What is a budget deficit, and why does Cal State East Bay have one?

A budget deficit happens when expenses exceed revenues. Our deficit is primarily due to enrollment declines leading to reduced tuition revenue, mandatory cost increases such as utilities and employee benefits, and reductions in state allocations. These trends have outpaced our revenue growth, creating a structural imbalance in our operating budget.

How large is the deficit?

For Fiscal Year 2024–25, CSU East Bay’s projected budget deficit began at $14 million, but after reductions and savings, the updated permanent deficit is $9.7 million.

Looking ahead, the projected deficit for FY 2025–26 is $23 million, driven by continued enrollment challenges, rising mandatory costs, and reductions in state funding.

These figures reflect the base structural deficit, meaning the gap between ongoing revenues and ongoing expenses—not one-time costs. The university continues to explore permanent reductions and sustainable strategies to address this gap.

Can the university use reserves to cover the deficit?

Some reserves may be used to soften the impact in the short term, but reserves are limited and often earmarked for specific purposes. Using them as a long-term solution would be unsustainable.

What steps has the university taken to address the deficit?

The university has used various methods to close $16 million in permanent base reductions over the past 3 years:

2022-23: Elimination of open positions in Academic Affairs, Admin and Finance and Student Affairs

2023-24: Permanent reductions to all Divisions based on share of marginal cost and aligning course sections offered with enrollment

2024-25: Voluntary Separation Incentive Program (VSIP), elimination of 11 MPP positions from operating budget, elimination of a sports team, decommissioning of Robinson Hall, aligning course sections offered with enrollment

How long will it take to eliminate the deficit?

While some reductions are immediate, fully resolving the deficit will require a multi-year strategy. The timeline will depend on enrollment recovery, state funding levels, and the effectiveness of ongoing cost-saving measures.

Why is enrollment declining?

Enrollment declines are being experienced systemwide across many CSU campuses. Contributing factors include shifting demographics (fewer high school graduates), increased competition, the lasting impact of the pandemic on student behavior, and affordability concerns.

Are layoffs or program cuts planned?

In some cases, cost-saving efforts have included reductions in management positions and consolidations. Any future decisions will be made thoughtfully, with input from shared governance groups and a commitment to protecting student success.

Following the Chancellor’s directive in AY2023-24 to review low degree conferring programs, we will continue to closely review all degree programs, minors, and concentrations that have consistently low enrollments, and we will recommend a path forward for those programs. A new advisory committee, the Focused Program Review Advisory Task Force, has been formed (which includes elected faculty) to assist with this review. In a somewhat parallel process, University Extension is conducting its own review of self-support programs with a focus on meeting current workforce needs.

How is the university ensuring transparency around budget decisions?

We are committed to open communication through regular budget updates, public town halls, and shared governance. The University Budget Advisory Committee (UBAC) and other stakeholder groups help guide decisions and provide accountability. UBAC will continue to play an important advisory role as we work to address future budget and changing conditions.

Are we adding a new student housing complex?

We have no need for, nor the funding to build, a $200 million student housing complex. No detailed plan has been developed since the original idea emerged more than ten years ago, and no funding request or permission to take on debt has been presented to the Board. Additionally, given current demand and enrollment levels, additional housing will not be pursued. The project was initially added to the list when special state funding was available, but that funding is no longer on the table.

How can faculty, staff, and students stay informed or get involved?

Community members are encouraged to attend budget forums, read campus budget updates, participate in shared governance, and bring ideas forward. Transparency and collaboration are essential as we navigate this challenge together.