Top Takeaways Gov. Gavin Newsom’s budget proposal included $716 million in new funding for the University of California and California State University systems. University officials say the funding is needed to support enrollment growth, especially after not receiving large increases in previous years despite a compact with Newsom for annual budget hikes of 5%. With Newsom leaving office after this year, the universities see this budget cycle as their final opportunity to take advantage of the compact. California’s university systems are entering a pivotal stretch of budget negotiations, hoping to secure hundreds of millions of dollars in new state funding that they say is needed to support enrollment growth and make up for years of less-than-promised support. In his budget proposal unveiled this month, Gov. Gavin Newsom included $350.6 million in new funding for the University of California and $365.7 million for California State University. That would amount to about a 7% increase in state funding for both systems. The proposal, which would be the largest increase in years for higher education, was celebrated as a win by both university systems, especially as they contend with federal funding cuts. But in interviews, top officials said they remain anxious over whether it will come to fruition. The proposal hinges on agreements with state lawmakers and could also change if Newsom’s revenue projections, which face skepticism, prove too optimistic. Related ReadingAmid federal threats, UC and CSU get ‘critical’ support in Newsom’s proposed budgetJanuary 9, 2026 UC and CSU say that receiving the…
