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CSU Trustees Approve Executive Pay Raises Amid Faculty Layoffs and Budget Crisis

Cal State University Chancellor's OfficeCal State University Chancellor's OfficeFile photoCalifornia State University trustees have approved substantial pay increases for top administrators despite widespread faculty layoffs and a $2.3 billion budget shortfall, sparking fierce criticism from faculty unions and state lawmakers.

The policy change, approved last week, eliminates salary caps for CSU presidents, vice chancellors and Chancellor Dr. Mildred García, while introducing performance bonuses up to 15% of base salary and enhanced retirement benefits. President salaries will increase between $22,000 and more than $100,000, with housing allowances rising to $60,000-$80,000.

Trustees justified the raises by citing a Segal consulting firm analysis showing that 75% of comparable institutions pay executives more than CSU. The 22-campus system said the previous policy—which capped presidential salaries at no more than 10% above predecessors—hindered recruitment for three current vacancies and two upcoming presidential retirements.

But California Faculty Association president Dr. Margarita Berta-Ávila sharply condemned the timing, comparing it to "Trump's construction of a new ballroom while working people were unable to provide for their families during the shutdown."

CFA secretary Dr. Loren Cannon, a lecturer at Cal Poly Humboldt, argued the increases come at faculty expense amid widespread layoffs and tuition hikes.

Democratic Assemblymember Dawn Addis urged presidents to reject the raises, calling it "unbelievable that the CSU would use public funds to increase the pay of their most highly compensated executives" while workers "struggle to afford life in California."

CSU defended the decision as necessary to attract leaders "capable of guiding campuses through challenging times," insisting the changes won't affect tuition or student fees. The system noted it has invested more than $770 million in faculty and staff salary increases over four years, while executives received one 7% raise in 2022 and no increases in 2021, 2023 or 2024.

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