BREAKING: Top administrators across the California State University (CSU) system will collectively receive over $500,000 in pay raises, igniting outrage among faculty and staff facing significant layoffs and a staggering $2.3 billion budget shortfall. This controversial decision comes just days after CSU trustees approved a new compensation policy aimed at attracting executive talent amid ongoing financial turmoil.
Trustees eliminated salary caps for executive employees, including presidents, vice chancellors, and Chancellor Mildred García, following a pay analysis by consulting firm Segal. The analysis revealed that approximately 75% of comparable institutions offer higher compensation than CSU. The new policy features performance-based pay incentives, enhanced retirement plans, and increased housing allowances ranging from $60,000 to $80,000.
Faculty and staff voiced their discontent during a board meeting, highlighting the unfairness of salary increases when the system faces “tsunamis” of layoffs. The California Faculty Association President, Margarita Berta-Ávila, condemned the raises, comparing them to “(President Donald) Trump’s construction of a new ballroom while working people were unable to provide for their families during the shutdown.”
Currently, CSU has three presidential vacancies—CSU Long Beach, Channel Islands, and Cal Poly Pomona—with two more presidents retiring soon from CSU San Bernardino and Dominguez Hills. The CSU system argues that the new compensation structure is essential to attract capable leaders to guide campuses through these challenging times.
Critics of the pay increase, including Democratic Assemblymember Dawn Addis, lament the use of public funds for executive salary boosts while faculty and staff struggle with the high cost of living in California. Addis urged CSU presidents to reject these raises and instead focus on aligning salaries for teachers and staff with economic realities.
In response to financial pressures, CSU plans to utilize a one-time $144 million state loan to provide one-year bonuses for faculty and staff, roughly translating to a 3% pay increase for university workers. This loan is aimed at mitigating the $144 million cut from CSU funding included in the state’s 2025 budget.
Despite the backlash, CSU maintains that the changes will not affect tuition or student fees, asserting that performance incentives and enhanced retirement plans will be funded through non-state, non-tuition, and non-student sources. In recent years, CSU has approved over $770 million in salary increases for faculty and staff while executive compensation has remained relatively stable, with only a 7% increase in 2022.
As CSU moves forward with these pay increases, the broader implications for faculty morale and student accessibility remain to be seen. The university system’s decision has ignited discussions about fiscal responsibility and the prioritization of executive compensation in the face of ongoing budget challenges.
Stay tuned for further updates on this developing story as it continues to unfold across California’s higher education landscape.