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The California State University Board of Trustees will ask the state for an additional $407 million in annual funding to help address growing costs associated with repairing old buildings on campuses.

One-third of the university system’s facilities, and 20% of CSU’s science buildings, are more than 60 years old, CSU staff reported to the board on Wednesday. Limited repairs over the last two decades means the cost to fix degrading buildings and capital projects is expected to exceed $9 billion next fiscal year, according to the university system.

CSU Chancellor Mildred García said this week that CSU’s deferred maintenance costs are expected to grow by roughly $400 million each year.

The funding request for deferred maintenance issue was included in CSU’s 2027-28 operating budget plan, which the Board of Trustees approved on Wednesday. The 2027-28 budget calls for a $618 million increase in spending compared to the system’s current $9.4 billion budget.

The higher expenditures are a result of, among other items, increases to staff and faculty compensation, $232 million; higher health care premiums for CSU employees, $81 million; and a new state digital software tax, $17 million.

Mark Martin, the assistant vice chancellor for budget planning and advocacy, said that the increase in expenses would be offset by $396 million from the state’s general fund and $222 million from tuition increases and enrollment growth.

Deferred Maintenance Costs Could Keep Soaring

Martin warned that the university system’s deferred maintenance costs could continue ballooning. He presented the board with projections that showed the system’s cost associated with repairing facilities could increase to over $11 billion by 2029-30 if actions aren’t taken to address the issue. A 2023 report from the nonpartisan Legislative Analyst’s Office found that San José State University was the CSU campus that had the highest capital renewal needs.

The Board of Trustees agreed to ask the state to invest $407 million, matched by the CSU, for three years. According to the proposal, the total investment toward addressing facility needs would be $3.3 billion.

Jackson Martinez, one of the student trustees on the board, said during the board meeting that updating campus facilities is a major priority for CSU students. One concern, in warmer parts of California, is the lack of air conditioning in some buildings.

“I experienced the same thing at Cal Poly San Luis Obispo. It got up to 100 and we had classrooms where I was sweating my head off,” Martinez said.