The Committee on Finance presented a 70-page report to the Cal State Board of Trustees on May 24 demonstrating that CSU must reexamine specific policies and practices to restore the financial loss.
The report suggests numerous ways to raise funds and free up funds for other purposes. Some suggestions include a review of fee waivers, non-resident tuition policies, revision of inefficient faculty workload policies and practices, review of athletic funding and costs, and more.
“The state general fund – the CSU’s largest revenue source – is volatile and wholly dependent on California’s economy,” explains CSU Public Affairs Manager Hazel Kelly. “If the CSU were to continue to over-rely on the state general fund, it could jeopardize the university’s financial situation and its ability to serve students.”
With two primary revenue sources, state funding, and tuition, CSU has struggled to keep up with the growing cost pressures such as inflation, increased faculty salary and benefits, degree expansion, and infrastructure maintenance.
A Financial Aid Program Report shows that around 82 percent of all CSU students received some form of financial assistance during the 2021-22 academic year. In addition, nearly 60 percent of all undergraduates had full tuition costs covered by grants, waivers, or scholarships.
“Because these programs are designed to pay the full cost of tuition, the multi-year tuition proposal would have no financial effect on more than 249,000 students who receive these grants, scholarships, and waivers,” says Kelly.
To make back the money lost during 2021-22, the Board of Governors’ proposed a 6% tuition increase for undergraduate and graduate school starting in fall 2024. For undergraduates, this would be a $342 increase in the first year and a steady increase in tuition to another $5000 to $8000 for incoming undergraduates by 2030.
The CSU website shows each university’s estimated undergrad costs depending on whether you’re living with parents, on-campus housing, or off-campus. Long Beach undergraduate costs total $22,174 for those living with their parents and up to $31,508 for people living off-campus.
The total cost of attendance at Long Beach State including books and supplies, tuition, and fees went from $33,266 in 2013 to $38,062 currently, around a 14% increase. This tuition increase rate is still lower than California’s average increase rate.
This poses several concerns for students and parents who are already struggling to get by. This includes international students and their families assisting with their fees.
“Asking for money from my parents also would make things worse back in our country for them,” says international computer science alumni Manan Joshi. “The international students have a lot on their plate to deal with already and with the increase, it would just set back another student to achieve their American dream.”
Joshi left his family and friends home in India in 2021 to pursue an education and career in computer science at Long Beach but struggled with managing his daily expenses, transportation and hefty insurance payments, which are mandatory for international students to have.
With high conversion currency rates and international fees, struggles with employment and the abundance of fees it takes to enter the country, these students struggle every day just to make ends meet.
“Then comes the issue with the job as international students aren’t allowed to work anywhere except the university,” says Joshi. “Meeting basic needs while working on minimum wages, and just 20 hours a week doesn’t help a lot.”
Certain school policies limit the students and make the process of going to school much more difficult. For example, international students working part-time jobs on campus are limited to 20 hours a week but with a plethora of bills that need to be paid, 20 hours only helps so much.
“Some of my friends who used to work with other departments used to get merely 10 to 15 hours a week which wasn’t helpful at all,” explains Joshie. “They had to depend on their parents for sending them a fortune every month. And the process of sending money was also a bit expensive due to the conversion rates.”
The CSU system has raised tuition only once by 5% in the past 11 years despite the harmful 39% inflation increase within that period.
On July 11, the CSU Systems Board of Trustees will vote in September on the tuition increase. If anything is approved, it would not go into effect until 2024-25.