Students of the California State University system, the largest public university system in the world, could face a major tuition hike over the next several years.
The CSU Board of Trustees is set to vote on a plan on Wednesday that would raise tuition starting in the fall of 2024.
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The big picture: Wednesday’s proposal would see tuition increased by six percent annually over the next five years.
- The board’s Committee on Finance initially approved the plan in July, setting the stage for the board to pass the tuition increase this week.
- Tuition has not increased in the CSU since the 2011-2012 academic year, when it was raised by five percent, totalling $270 per semester.
- CSU officials say tuition increases are needed because there are $1.5 billion in unfunded operational costs in the budget.
- Talk of an increase started in May when a CSU workgroup found that the university system could only pay for about 85 percent of the costs it takes to run 23 campuses and serve over 460,000 students.
Go deeper: Around 40 percent of the CSU’s budget comes from tuition, with the remaining 60 percent coming from the state budget.
- The state has agreed to a five percent increase to the CSU, totalling $227.3 million this fiscal year, the CSU still would not have enough money to get out of the red.
- When the planned tuition hikes reach their peak in the spring 2029 semester, a year of tuition would cost $7,682 for undergraduate degrees, not including housing, food and other needs.
- With $860 million in projected revenue over the first five years of increases, the CSU would allocate $280 million of that for financial aid.
What we’re watching: The CSU board will vote on the plan during its meeting on Wednesday starting at 8 a.m.
