Cal State Fullerton’s strong financial position during the 2024-25 fiscal year can be credited to the hard work of faculty and staff and the fiscal prudence of past administrations, said leaders during the annual Fiscal State of the University address.
The Nov. 7 presentation at the Academic Senate meeting was delivered by CSUF President Ronald S. Rochon, Provost and Vice President for Academic Affairs Amir Dabirian, and Vice President for Administration and Finance/Chief Financial Officer Alexander Porter.
“I want to underscore that Cal State Fullerton is in good stead,” said Rochon. “Because of your work and your deliverables, we are a campus that maintains a very healthy outlook.”
With a projected 8% state budget cut for the California State University system in 2025-26, Rochon emphasized the importance of doubling down on enrollment efforts and continuing to practice fiscal responsibility to prepare for an uncertain future.
“We are at a record enrollment, and because of the enrollment, we continue to have the kind of revenue to keep our lights on, people employed and our campus moving forward,” said Rochon. “This is something that we all should be taking very, very seriously. We should not rest on our laurels with regard to where we are with enrollment.”
A Strong Financial Position for 2024-25
With a fall 2024 enrollment of more than 43,000 students, Porter explained that the university is in a strong financial position thanks to the hard work and commitment of its faculty and staff. Porter shared that Cal State Fullerton has sufficient reserves to meet the minimum three-month requirement by the CSU, but cautioned that the university does not meet the recommended six-month reserve.
“We are very fortunate, but fortunate is not simply luck,” said Porter. “It’s because of the work that all of you put into recruitment and keeping our students here. The work is difficult, but it’s being done, which is critical for us.”
The 2024-25 operating budget is $595.3 million, which includes a $7.4 million one-time reduction from the CSU system. The budget allocation includes: 74.6% for salaries, wages and benefits; 11.5% for financial aid; 7.4% for equipment, maintenance and other expenses; 2.2% for information technology; 1.5% for utilities; 1.3% for insurance; 1% for capital leases; and 0.4% for the library.
At the end of the 2023-24 fiscal year, the university carried forward a balance of $158.6 million. In addition to the balance, Cal State Fullerton secured about $56.9 million in new, one-time funding generated by its strong enrollment this fall, calculated on a full-time equivalent student basis.
“This is a critical point. Half the new money that we got this year was due to our ability to grow and maintain enrollment,” said Porter. “Of that money, we put about $12 million into reserve. This goes back to the strategy of setting money aside, knowing that we’re going to have to use it in future years.”
Anticipating Fiscal Headwinds for 2025-26
The governor has already forecasted an 8% cut for the CSU system for the 2025-26 fiscal year and in a rare move, signaled that the budget could include deferrals.
“A lot can happen in a year fiscally in a state like California because we are so dependent on income tax as a driver of the budget,” said Porter. “Some reports we’ve seen recently indicate that income tax is actually up, so that’s a positive situation.
“Deferral means that you’ll do what we ask you to do, but we’ll pay you next year for it,” he added. “Because of our reserve balances, we’re in a good position to deal with it if that does come to fruition. In addition, we are expecting tuition to increase to help offset that amount.”
The fall 2024 semester also marked the first year in a multi-year, CSU systemwide increase in tuition by 6% each year.
“Our budget is built not just on state dollars, but also on student fees and tuition,” said Porter. “The state has moved from predominantly funding the CSU system to now funding basically 50/50. To continue to provide service and access to students, that money has to come from someplace, and so over time, we’ve had to increase student fees.”
Overall, Porter shared that the university administration is committed to protecting enrollment and instruction.
“We want to balance quality with growth. Many of our conversations center on how we continue to protect the quality of the instruction and make sure our faculty are well taken care of, while also being fiscally prudent, seeing a return on our investment and maintaining our commitment to student success,” said Porter.
Dabirian echoed Cal State Fullerton’s commitment to recruiting and retaining a high-quality faculty, emphasizing steady investments in tenure lines, promotions, lecturers and sabbaticals.
“This year we have 35 new faculty members and we authorized 46 new searches this year,” said Dabirian. “At convocation, I shared the tenure and/or promotion of 69 faculty members. We also have a record-high number of 71 sabbaticals this year.”
A Campus of Choice
To prepare for an uncertain future, Rochon said the university is examining enrollment strategies to recruit and retain students, including hiring an enrollment strategist, building the university’s brand, expanding curriculum, offering flexible learning options and collaborating with alumni.
“How we treat our students — the stories they take from our campus — speaks volumes to families,” said Rochon. “I want Cal State Fullerton to be a campus of care and the campus of choice for everyone.”