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Financial Transparency - Key Budget Highlights

FY25-26

  • Due to state funding shortages that are insufficient to cover cost increases like compensation and utilities, along with the reduced revenues due to declining enrollment at some campuses, Cal Poly Pomona and other CSU campuses are experiencing a budget gap.
  • CPP proactively implemented Voluntary Separation Incentive Program (VSIP) to reduce costs.
  • With additional enrollment allocations from the CO and cost reductions from the VSIP, we successfully reduced existing budget gaps ahead of the anticipated FY25-26 state budget cuts.
  • The Governor’s May Revision reduced the proposed budget cut to the CSU from 8% or $375 million to 3% or $143.8 million.  Cal Poly Pomona’s proportionate share of the cut is reduced from $18.3 million to $7 million.
  • As of May 2025, Cal Poly Pomona’s budget gap is reduced from $19 million (as of April 2025) to $7.8 million.  We plan to address this gap using reserves and designated funds.
  • CSU enrollment challenges are affecting us: CPP Fall 2025 enrollment is 7% below goal.
  • While the budget outlook has improved, it is not yet final and still reflects a reduction. Uncertainties remain—particularly around enrollment—that could further impact our budget gap.
  • Federal support for higher education research and for student access and loan programs is at risk, creating new financial challenges including our ability to access credit.
  • We must continue to advocate for the state legislature to eliminate all cuts to the CSU and advocate federally against policies that negatively impact us.

FY24-25

  • Enrollment Growth
    • The CSU is expected to grow resident enrollment by 1%, or 3,484 resident Full-Time Equivalent Students (FTES). The responsibility to grow enrollment falls on eight high-demand campuses, mostly southern California campuses, including Cal Poly Pomona.
    • Cal Poly Pomona is on track to achieve the increased resident FTES target set by the Chancellor’s Office.
  • Increasing Costs, Reduced Revenue
    • We begin FY24/25 with a solid financial footing due to our strong fund balance. Nonetheless, several challenges remain.
    • While the state honors its $240 million compact to the CSU, the revenue is offset by a one-time cut of $75 million, reducing our proportional share of the allocation.
    • The cost of the employee compensation increase at Cal Poly Pomona is only partially funded by the state —approximately $4.1 million or 24%, which is even smaller portion than last year. Cal Poly Pomona is expected to close the funding gap again.
    • Other unfunded mandatory costs continue to escalate, with a 20% increase for utilities and a 11.7% increase for insurance premiums.
  • Funding Gap
    • We anticipate a funding gap of $4.2 million, even after redirecting one-time salary and benefits savings (based on an estimated 3.5% vacancy) and centrally managed mandatory costs.
    • Although this is not a significant amount, if left unaddressed, the funding gap grows in future years. The five-year tuition increase beginning in FY24/25 provides additional funds for the university, but rising costs will still outweigh the revenue increase.

FY23-24

  • We ended FY23/24 General Fund with a net operating surplus and a positive fund balance.
  • The state appropriation covered less than half of the employee compensation increases. To prioritize funding for personnel, divisions covered the remaining gap by reallocating base funding from salaries and operational expenses.
  • We utilized one-time funds held centrally to cover unfunded mandatory cost increases, including utilities and risk management.