The Governor and the Legislature have reached a deal on the California state budget and the good news is that Teamsters lobbying and other actions have paid off and the proposed cuts to UC and CSU have been eliminated entirely! Some funding is deferred, but will be covered by zero-interest loans provided by the state.
Highlights of the final California 2025-2026 budget:
- Rejects Governor Newsom’s proposal to reduce the UC ($129.7 million) and CSU ($143.8 million) by 3% ongoing. Instead defers the 3% amount in 2025-26 for both the UC and CSU to 2026-27. The state will provide access to zero-interest short-term loans to mitigate the deferral impact.
- Splits the deferred 5% Compact increase promised for 2025-26 to 2% for the UC ($96.3 million) and CSU ($100.9 million) in 2026-27 and defers 3% for the UC ($144.5 million) and CSU ($151.4 million) to 2028-29. Compact money was promised by Gov. Newsom to fund previously negotiated raises for Unionized workers.
Originally, the state proposed cuts for UC and CSU of 7.95% which were reduced to 3% in the May Revise of the budget, and deferred the promised 5% increases to fund wage increases for workers to the 2027-2028 budget year.
“Thanks to the hundreds of Teamsters who joined lobby day, signed petitions and wrote letters! We showed the politicians how their proposed cuts would cause irreparable harm to workers and our communities. Our voices were heard, and the cuts were rescinded. Now, CSU and UC must honor the raises in their existing contracts with Teamsters, and bargain in good faith for fair raises and rights in our upcoming bargaining for new contracts!”
Jason Rabinowitz
Teamsters Local 2010 Secretary-Treasurer
