ÁùÉ«Íø

Dear Faculty, Staff and Management,

Earlier this month, Governor Gavin Newsom proposed a state budget which includes a 7.95% ongoing reduction in funding to the California State University for fiscal year 25-26. As , the proposed cut equates to a $375 million reduction to the CSU system and “will have significant real-world consequences, both in and out of the classroom.” The Chancellor’s Office advised all campuses to plan to implement their share of the budget reduction for the 25-26 year which ranges from $6.4 million (Sonoma) to $30.4 million (San Diego). These reductions are on top of cuts already absorbed by the campuses. The implication of these proposed cuts to Cal Poly Pomona’s base institutional budget allocation from the CSU is preliminarily estimated at $18.3 million.*

Last fall, at two sequential town hall meetings, we shared details about Cal Poly Pomona’s institutional operating budget as well as our reserve status, both designated and undesignated. Our Financial Transparency website includes the summary of our financial position and the presentations from these town hall meetings. ÁùÉ«Íø’s projected base budget deficit for the fiscal year 24-25 will be compounded with the estimated $18.3 million* reduction for fiscal year 25-26, further increasing the anticipated cut in state appropriations to the CSU.

Let me be clear: this cut in state appropriations will have a very significant impact on Cal Poly Pomona’s operations and services, and CSU campuses are expected to take commensurate actions to permanently reduce costs. 

In Fall 2020, we strategically deployed a Voluntary Separation Incentive Program (or “Early Exit”), to reduce personnel costs and balance our institutional budget. During that time, we successfully used this strategy to address a $20 million budget gap due to reduced state allocation to the CSU. While difficult, the action was necessary and effective.

Accordingly, I am announcing a 2025 Voluntary Separation Incentive Program for eligible state-side employees as a first-phase strategy to address our budget gap. Our union partners have been noticed of the details of the program, which closely resemble the terms offered in 2020. As we work through the process, we will update our campus community on the details of the program.

If you are interested, please consult with Employee/Labor Relations and Compliance on program eligibility. Several information sessions will be held to share program details and updated information with interested participants. While the application period will not formally open until Monday, March 3, we want to provide state-side employees with as much time as possible to make an informed decision about their participation.

We recognize the departure of valued colleagues and personnel will have implications for our working environment and operational capacity. Unlike the program five years ago, when the impact to the budget was temporary due to pandemic conditions, these budgetary reductions in fiscal year 25-26 are permanent until funding to the CSU and the campuses improve. We also remain unsure as to whether further reductions will be expected as a result of the State’s budgetary status and the related impact on the CSU.

As a result, vice presidents, deans and other campus leaders will be working together to re-envision how Cal Poly Pomona operates efficiently and effectively with anticipated changes to our organization and ways of working. We will continue to provide updates on the impact of strategies to address budget deficits via our Financial Transparency website and other channels of communication.

We recognize that many other CSU campuses are grappling with how to address the ongoing reduction in the state allocation, and we are in a fortunate position to be able to offer this voluntary separation program as an initial approach to addressing this significant fiscal and operational challenge. Taking these measures now will help us prepare for further reductions that may result from the finalizing of the 25-26 state budget later this summer.

In preparing our campus for the period of uncertainty that we are entering, I have previously shared the profound changes to higher education underway nationally and in California as well as the ways in which Cal Poly Pomona is better positioned to deal with many of these challenges through smart choices and investments that allow us to continue our vital mission. At the same time, we must acknowledge the current realities that as the impact of the Los Angeles fires is assessed and as enrollment across the CSU declines, the CSU system will remain resource-challenged. I understand that change is hard and disruptive and the impact that it has on people’s lives. And I have every confidence in our ability to innovate and to find inspiration from our shared institutional history of resilience and unwavering commitment to helping our students achieve their dreams of success.

Sincerely, 
Soraya M. Coley, Ph.D. 
President

* Based on revised projections from the CSU, the estimated reduction to Cal Poly Pomona's base operating budget was revised to $18.3 million on Feb. 6, 2025.