Chancellor's Report - July 22, 2025

Summary

Chancellor Garcia delivers a comprehensive and inspiring report to the CSU Board, highlighting both challenges and opportunities facing the university system. He acknowledges outgoing leaders, welcomes new trustees and presidents, and addresses the complex financial landscape, including recent state budget reductions and deferred funding. Garcia emphasizes the CSU's growth, integration of campuses, and expanding reach through community partnerships and online programs. Central to his message is the concept of 'systemness'—leveraging the collective strength of 22 universities to drive innovation, student success, and workforce readiness. He underscores the need for collaboration, adaptability, and bold action to ensure the CSU remains a national leader in higher education.

Takeaways

• 😀 Chancellor Garcia acknowledges and honors outgoing leaders, trustees, and welcomes new members to the CSU Board.
• 😀 The Chancellor emphasizes the unprecedented sociopolitical climate and reassures the CSU community that their safety and well-being are a top priority.
• 😀 California's 2025 budget act reduces CSU's base budget by $144 million, avoiding a larger proposed cut, and defers multi-year compact funding.
• 😀 CSU will receive a short-term zero-interest loan of up to $144 million to offset the base budget reduction, with terms under discussion.
• 😀 Additional one-time funds are allocated for student outreach, enrollment support, and Sonoma State’s turnaround plan, reflecting targeted investments.
• 😀 CSU has successfully integrated Cal Maritime and Cal Poly San Luis Obispo, reducing the system from 23 to 22 universities while expanding enrollment and impact.
• 😀 The CSU system continues to expand access statewide, partnering with community colleges, K-12 schools, hospitals, corporate facilities, and offering nearly 300 online programs.
• 😀 A systemwide strategic plan is being developed to reimagine education, enhance student success, and equip graduates with critical thinking, practical skills, and adaptability.
• 😀 Chancellor Garcia highlights 'systemness' as CSU's superpower—leveraging collaboration across campuses to optimize resources, share courses, and align programs with statewide needs.
• 😀 The path forward requires all CSU stakeholders to work together, embracing systemwide collaboration, innovation, and accountability to meet student, community, and state needs.
• 😀 Despite fiscal and demographic challenges, CSU remains committed to affordability, inclusivity, and transformative education, positioning itself as a national model for regional comprehensive universities.

Q & A

Who were the leaders recognized by Chancellor Garcia at their last board meeting?

Chancellor Garcia recognized Presidents Connelly, Kohley, Yao, and trustee Molino Manio for their distinguished service.

What did Chancellor Garcia emphasize regarding the socio-political climate?

He acknowledged that many students, faculty, and staff live in justified fear due to federal disinvestment threats and socio-political uncertainties, emphasizing CSU's commitment to safety, inclusivity, and advocacy.

What are the key highlights of the California Budget Act of 2025 for CSU?

CSU avoided a $375 million cut proposed in January but faces a $144 million base budget reduction deferred to 2026–27. Multi-year compact funding is also deferred, and CSU has access to a one-time zero-interest loan.

How did the Chancellor describe the CSU system’s financial challenges?

He described them as significant, noting worsening state budget projections, potential federal funding cuts, and the need for cost reduction measures across campuses, including an 8% systemwide reduction totaling $18 million.

What changes occurred with the integration of Cal Maritime and Cal Poly San Luis Obispo?

As of July 1, 2025, CSU now functions as a system of 22 universities. The integration is complex, with transitions continuing until the 2026–27 academic year, but it has led to increased applications and student commitments at Cal Maritime.

What does Chancellor Garcia mean by CSU's 'systemness'?

'Systemness' refers to the CSU system's collective strength, diversity, and statewide impact, which, when leveraged intentionally, can lead to resource optimization, cost savings, academic innovation, and improved student mobility.

What strategic initiatives did Chancellor Garcia highlight to improve student success?

He mentioned partnerships with community colleges, expansion of off-campus programs, online degree growth, cradle-to-career data sharing, applied research opportunities, and adaptive teaching strategies to meet evolving student needs.

What is the purpose of the CSU systemwide strategic plan?

The plan serves as a vision and roadmap to enhance recruitment, retention, graduation, career readiness, and lifelong learning, while fostering collaboration across campuses to achieve a collective impact greater than individual efforts.

How did Chancellor Garcia describe the role of faculty and staff in achieving CSU’s goals?

He emphasized the need for ongoing professional development, access to necessary tools, and continuous learning so that faculty and staff can adapt to evolving educational demands alongside students.

What is Chancellor Garcia's call to action for the CSU community?

He urged all members to embrace collaboration, leverage the system’s strengths, engage creatively, and maintain accountability, emphasizing that the CSU’s success depends on being 'stronger together' to transform student lives and power California’s workforce.

What examples did Chancellor Garcia provide to illustrate CSU's achievements using systemness?

He cited the Cal Maritime–Cal Poly integration, the AI initiative, the Riverside County direct admissions pilot program, and multi-university collaborations as examples of impactful systemwide coordination and innovation.

How did the Chancellor address public misinformation about higher education?

He acknowledged ongoing misinformation about the value of college degrees but noted that studies indicate a shift as institutions increasingly focus on both academic excellence and career development, positioning CSU as a leader in social mobility and workforce preparation.