Dear SDSU Community,

We are extremely pleased to share that last week California lawmakers proposed an ambitious COVID-19 relief package. The package will provide much-needed support for those who have seen the most significant economic impacts during the ongoing COVID-19 pandemic, to include the California State University (CSU) system.

In addition to this good news, we plan to provide an update on fall 2021 plans for instruction and other activities, including registration details, to all members of our university community in early March.

Impact to CSU Operating Budget for Fiscal Year 2021-22

The new relief package will provide CSU a full restoration of the $299 million general fund reduction, effective July 1, 2021. These funds would be in addition to the $144.5 million new general fund dollars which are currently listed in the governor’s January budget proposal.

There is no change yet announced to the proposed one-time capital funding of $175 million to support the system-wide efforts in addressing the deferred maintenance backlog, energy efficiency, and facility improvement projects. In the coming months, the CSU will continue to advocate for more capital funding during the budget hearing and enactment process.

We feel optimistic about the proposed $299 million restoration next year as Governor Newsom, Senate President pro Tempore Atkins, and Assembly Speaker Rendon all announced their agreement on this provision last week, as part of the state's Immediate Action Agreement.

Despite this optimism, the proposed $144.5 million in new general funding for fiscal year 2021-22 is still subject to change during the budget hearings and the May Revision process. Final numbers for next year’s budget, as per previous years, will be announced in June.

Impact to SDSU Operating Budgets for the 2020-21 and 2021-22 Fiscal Years

It is important to note that this new COVID-19 relief and policy package has no direct impact on our current fiscal year 2020-21 budget.

While we feel hopeful about the $299 million restoration to the CSU in fiscal year 2021-22, as well as any additional recurring or one-time allotments, there are still many unknowns. SDSU is awaiting more information from the Chancellor’s Office regarding how the CSU plans to allocate the restored funding to each campus across the system, as it is not a guarantee the system will distribute the restoration in the same way as the cut was allocated.

Much can change between now and when the final state budget agreement is reached in June. Until SDSU has greater certainty regarding our expected campus-level allocation, from either the restoration or the additional CSU general fund requests, SDSU will continue with our more conservative budget planning approach for the next year. Following the May revise, more detailed information to inform this process will be available.

Finally, we have received more than 100,000 applications for fall 2021, a record count. However, it is currently too early in the admission cycle to determine if we will meet the enrollment target. May 1 is the deadline for students to submit their intent to enroll, and orientation and registration for new students will take place in July and August.

Conclusion

Although we do not yet know all the particulars, this is very good budget news for CSU and SDSU. The announcement to restore previously enacted reductions certainly emphasizes the state’s commitment to investing in higher education and our students as California works toward economic recovery.

As always, we will continue to engage the campus community during the budget planning cycle through our shared governance process. We will share updates as more information becomes available, but in the meantime, should you have any questions and/or comments you are welcome to email [email protected].

Adela de la Torre, Ph.D.
San Diego State University President

Agnes Wong Nickerson, MBA
Interim Vice President for Business and Financial Affairs and Chief Financial Officer

 
 

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