TO: Campus Community
FR: Laura Lupei, Associate Vice President for University Budget and Resource Planning
The 2025-2026 Campus Budget has been finalized and posted to the OpenBook portal, which can be accessed through the Budget Office website: https://budget.sonoma.edu/
When the state released its original budget plan earlier this year, the CSU anticipated an 8% reduction in state funding. This was ultimately reduced to a 3% reduction of $143.8 million. While the state characterized this reduction as a deferral to 2026-2027, the funds have been removed from the CSU budget. For Sonoma State’s budget, this is a reduction of $2.3 million.
As has been shared with the campus community throughout the planning process, our operating budget has carried an ongoing structural deficit due to declining enrollment and increasing costs. For 2025-2026, the campus made significant reductions to base expenses and has balanced the base budget.
Although the state reduction was ultimately smaller than originally anticipated, the campus also experienced lower enrollment than projected, reducing expected tuition revenue. In addition, one of the reduction strategies identified in earlier budget planning, using Instructionally Related Activity (IRA) funds previously associated with Division II Athletics, was set aside while a campus and community task force reviews the long-term viability of athletics. Taking these factors into account, the campus was still able to balance its base budget; however, we were not able to further roll back reduction plans while maintaining a prudent approach to future financial sustainability.
The state budget has provided Sonoma State with $45 million in one-time funding through the Sonoma State Commitment. This investment is part of a long-term turnaround plan designed to boost enrollment, strengthen academic programs, and align degree offerings with workforce needs. Funding will support the following initiatives:
- $16 million over two years to expand the Bachelor of Science in Nursing program, including enrollment growth, equipment purchases, lab expansion, and facility modernization by spring 2027.
- $5 million to expand the Career Center by spring 2027.
- $5 million to establish a new program in Data Science by fall 2027.
- $2 million to support Environmental Science programs.
- $8 million over three years to support Sonoma State NCAA Division II athletics.
- $9 million over three years to increase enrollment, restore prior funding reductions, and launch new academic degrees in consultation with faculty, students, and the community.
Finally, as announced at the legislative hearing last month, the Chancellor’s Office has provided $45 million in additional support for Sonoma State. These funds include:
- $10 million dedicated to the Bridge to the Future Plan.
- $10 million to help with enrollment and student services funding.
- $25 million for a one-time line of credit to be paid back by the campus.
Some of these funds are designated for specific purposes and already allocated based on previous arrangements with the Chancellor’s office. More information on the planning and utilization of these funds will be announced soon.
Balancing the base budget for 2025-2026 positions the campus to continue focusing on enrollment growth and planning for long-term financial sustainability. We encourage the campus community to continue to engage on this topic, including with University Budget Advisory Committee representatives, and to attend the Budget and Planning Forum this fall. More details on the forum will be announced at a later date.
Thank you for your continued contributions and commitment to Sonoma State. Please reach out to [email protected] with any questions.