September 16 Town Hall FAQs

Budget Planning, Labor Costs & Trust

• How does the CSU plan for increased labor costs, which are often treated as unfunded mandates?

Collective bargaining is a central part of the CSU system, and negotiated agreements are binding across all campuses. While these agreements are negotiated at the Chancellor’s Office for the entire system, campuses are responsible for implementing them, sometimes without corresponding increases in state funding. This is why labor cost increases can feel like “unfunded mandates.”

At San José State, we build multi-year financial scenarios to anticipate contract costs and model the impact on our operating budget. We work closely with the CSU Chancellor’s Office and our union partners to advocate for state funding that recognizes these commitments, and we plan conservatively so we are not caught off guard. Our responsibility is to both honor the agreements we have with employees and ensure the long-term financial stability of the university.

• Does SJSU plan for cost-of-living increases?

Yes. SJSU integrates projected labor cost increases into our budget planning models. We know these adjustments are essential to help employees manage the rising cost of living in the Bay Area. We cannot set them unilaterally since we have to comply with our collective bargaining agreements, but we prepare financially so that we can honor these important systemwide agreements and avoid sudden, disruptive cuts when they occur. We know how hard it is to live in the Bay Area, and we budget for contractual labor cost adjustments so we can fulfill our commitments.

• How should employees trust leadership on labor issues when actions seem to show labor is undervalued?

Trust is built through actions, not words. Our employees are the backbone of SJSU, and we cannot fulfill our mission without their dedication and expertise. We also acknowledge that financial constraints can sometimes make decisions feel at odds with how much we value our people.

That is why we are committed to:

• Transparency in how we share budget information and decision-making.
• Consultation with unions, shared governance, and staff leadership before major decisions are made.
• Advocacy at the state and system level for fair funding to support fair pay.

Trust comes from consistency over time. We want to earn that trust by showing that we will navigate tough times in ways that are respectful, transparent, and equitable.

• With uncertainty around 2026–27 budgets, is SJSU preparing for steep reductions, including potential layoffs?

We are actively planning for a range of budget scenarios, including the possibility of reductions in 2026–27, expecting state revenues will continue to be constrained. We are preparing responsibly for all scenarios, but our first priority is to avoid layoffs and protect our people. We always first explore measures such as the hiring freeze we’ve already implemented, limiting non-essential spending, and looking for efficiencies. 

• What is the long-term plan when the demographic cliff arrives and we can no longer “enroll our way out” of financial shortfalls?

We can’t simply ‘enroll our way out’ of future challenges. We're diversifying revenue streams, investing in student success, and building long-term resilience. We also are actively looking for cost efficiencies so we live within our means.

Efficiency, Software & Facilities

• When will there be an audit of software licenses to reduce duplication and underutilization across divisions?

IT performs a quarterly review of SJSU IT software and usage.As part of our contract renewal process, each software is reviewed for its usage and relevancy. Where possible, we negotiate rates and reductions for underutilized software.

IT reviews non-IT SJSU software purchases through the Technology Requisition Impact Assessment (TRIA). The software is reviewed for security, accessibility and enterprise fit. When a software is submitted, and we are aware of a duplicate software in IT or another dept, we inform the requestor of the possible duplicate and assist in the evaluation.

IT has a list of software managed by the CO or by the SJSU IT department currently in use at SJSU.

• Why are ongoing space moves and pushes for in-office work creating new renovation expenses?

Space changes should be guided by long-term efficiency with the goal being a smarter use of facilities, not endless renovation. In some cases, planned moves are as a result of canceling off-site leases to save costs and to allow teams to return to campus.

• Can we improve efficiency through shared facilities, virtual labs, or better support for the FDO team, which seems understaffed for campus needs?

Efficiency isn’t just about cuts. It’s about smarter space use, new technology, and ensuring FD&O has the people power to support the campus. We also recognize that FD&O carries a very large workload given the size and age of our campus. We are reviewing staffing and support models to ensure they can meet both day-to-day needs and long-term maintenance demands. We are also evaluating the intentional use of contractors, where needed, to bolster our internal work effort.

• How are short-term budget plans addressing critical infrastructure needs, like an elevator in the 7th Street garage or additional parking?

Critical safety and accessibility projects are always top priorities in our budget. Our goal is always to balance immediate needs with responsible capital investment.

• Is the university still planning to purchase the SVP building, and what role will CSU play in that?

The CSU Chancellor’s Office has played a key role in this project to date and will continue to do so. They provide invaluable real estate legal counsel and other support.

• What does “expanding integrated mental health” look like in practice for students?

SJSU expanded “integrated mental health” in Fall 2024 by launching the Mindful Steps System to simplify how students can access mental health education, resources, and services. The system offers curated resources and services to help students choose preferred ways to build their mental health based on their personal needs and goals.  The idea is simple: students can start by exploring the options, picking one or two to begin, and taking each step at their own pace. Every step forward leads to support—and there is no wrong door.  

There are three tiers of support within the Mindful Steps System:

Discover encourages students to explore their well-being and build skills through informational and interactive resources detailed on the Well-being@SJSU website. Connect helps them build support systems and express their needs, and connect with services like SJSU Cares, Career Center, or the Accessible Education Center. 
Heal provides clear pathways to clinical care through Counseling & Psychological Services and Health Services.

In addition to these changes to student access pathways, the Student Wellness Center and connected student services made several operational changes to improve student-centered care, such as expanding clinical case management to support students struggling to navigate care, expanding team-based care for conditions like eating disorders, and embedding mental health assessments in primary care medical visits.  

• Will SJSU participate in the direct admission program if SB 640 is signed?

As with any piece of state legislation, San José State University, as part of the California State University system, will be guided by the Chancellor’s Office regarding implementation should SB 640 be signed into law.

• How can SJSU advocate at state and federal levels to prevent deeper cuts and protect staff/faculty morale?

Staff and faculty morale is critical to San José State University’s success, and we recognize that budget reductions can directly affect our ability to fulfill our core mission. That’s why we have an Office of Community and Government Relations—and a leadership team dedicated to advocating for SJSU and the broader CSU system at both the state and federal levels.

We will be active during the state budget process beginning in January 2026, expressing our priorities and seeking support from our legislative delegation to prevent cuts and protect resources for students, faculty, and staff. At the same time, our advocacy is a year-round effort—maintaining positive relationships with elected officials and consistently demonstrating the impact and contributions of San José State University to our region and the state.

• Is SJSU preparing for the realistic risk of losing all federal grant funding, similar to what UCLA has faced?

It is not possible to make up for a complete loss of federal funding. Our goal is to avoid such an outcome. However, we are actively working to diversify our RSCA funding sources. We also have reserved a modest amount of money to serve as bridge funding for selected critical activities in the event of a cancelled or paused grant, but this is nowhere near enough to cover a pause in all funding.

• Even with new grants, how will the loss of indirect cost recovery affect long-term research sustainability and faculty careers?

A reduction in the indirect cost recovery from a sponsor for any grant is essentially a requirement for a larger cost match from the university to support that project. Therefore, to accept such an award, the university would need to identify the source of those funds. If there is a blanket reduction in indirect cost rate, we would need to assess how much money at the university can be redirected to this cost match and that would determine the size of the RSCA portfolio that we could manage.

• Could colleges host smaller, localized budget town halls for faculty and staff?

Absolutely. Colleges that are interested in hosting forums like these are encouraged to contact the Office of the Provost and Office of the Vice President for Administration and Finance.

• How does athletics define revenue versus profit?

Revenue includes fund sources and revenue generating activities that are included in the Athletic Department annual budget.  These revenue sources include:  General Funds, Student Fees, and revenue earned by the Athletic Department  through its own activities including:  s fundraising/private donations,  ticket sales, media rights/TV contracts, game guarantees, licensing, conference distributions, etc.  The University as part of the CSU is a non-profit public entity.  As such, the Athletic Department budget does not generate a profit, it would generate a Net Surplus or Net Deficit and the year-end fund balance that would carryover to the subsequent fiscal year. 

• What is the source of the one-time June 2026 athletics revenue, and how will the ongoing deficit be covered?

The University expects to receive additional one-time revenue from the Mountain West conference to support athletic operations. 

In an effort to address both short term and long term financial sustainability, the Athletic Department has developed a multi-year business plan focused on sustainable solutions, including increased external fundraising and expense management. The department will be consulting with the Athletics Board and Budget Advisory Council as to specific strategies and initiatives Our core objective is to ensure athletics achieves a sustainable financial framework to support a Division I Athletic program without impacting academic priorities. 

• How are athletics affecting donor involvement and the university’s overall reputation?

Athletics is often the most visible “front porch” of the university. Division I programs elevate SJSU’s brand profile nationally, build school spirit, and engage alumni and the community in ways that directly support the university’s mission. Strong athletics visibility often translates into greater alumni pride and giving. With the help of University Advancement and Alumni Affairs, we have partnered to identify tangible donor incentives while utilizing event-based engagement to cultivate philanthropy and a sense of community. That said, Athletics surpassed its fundraising goal in 2024-25 by 11% and the broader University surpassed its stated annual goal as well. 

• Where are the numbers behind projected athletics economic impacts coming from?

Founded in 2005, Collegiate Consulting completed a comprehensive economic valuation of our athletic department, analyzing data collected from 2021 to 2024. The study specifically assessed the department's value across three key areas: branding/visibility, game-day and event valuation, and the economic impact of personnel, athletes, and graduates. To calculate the equivalent Return on Investment (ROI), the firm utilized the Advertising Value Equivalency (AVE)metric, examining viewership and impressions across all media channels, including broadcasts on major networks (ESPN, ABC, Fox Sports 1, TruTV, The CW, and NBA Sports Bay Area), social media profiles, local radio listenership, and print media.

• Is there a budget analysis of remaining in Division I versus moving to Division II, including the potential to redirect savings into RSCA and research grants?

As tasked by university leadership, the Athletic Board has formally assessed both the budget implication and risks with reducing sports and/or moving its competition classification within the NCAA. This issue was thoroughly reviewed as part of a 2023-24 directive where the Athletics Board worked with First Team consulting in looking at a review of the appropriate classification within the NCAA as well as potential programmatic cuts to the sports offerings. That work resulted in a unanimous decision by the Athletics Board to remain in FBS Division I due to the expenses and revenue considerations. Specifically, dropping to a lower division or classification would have “cost” more for athletics/SJSU due to the massive drop in potential revenue realized (NCAA grants, media rights revenue, loss of ticket revenue, etc) and required even more subsidy from campus resources to facilitate that change. This was deemed as not financially prudent. . 

• Why is Spartan Athletics considered an instructionally related activity?

The CSU system regards intercollegiate athletics as an essential educational experience that supports the university’s mission and student success. Under the authority of the California Education Code (§89230), IRA fees are allowed to be used to support intercollegiate athletics (excluding scholarships).  IRA fees are a major fund source used to support intercollegiate athletics at most CSU campuses. 

• What does “from our Enterprises” mean as a funding source? Are these funds earmarked?

Enterprises are self-supported services like housing, wellness, etc. They typically run on the fees they collect, not on state funding. Similarly to our external 501(c)(3) auxiliary organizations, the enterprises are expected to generate enough revenue to cover their own expenses through those fees, or other revenue streams. 

• Why is University Advancement not represented on the Budget Advisory Committee (BAC)? 

University Advancement is not currently represented on the Budget Advisory Committee (BAC), though there is an opportunity to review the committee’s composition to ensure it continues to align with the university’s needs. The BAC may consider submitting a referral with recommended updates to membership.

• How can faculty and staff more effectively engage with the BAC?

Individual BAC members and their contact information can be found on the Academic Senate Committee Assignments website. Throughout the year, the committee may explore how best to establish a permanent, centralized and accessible communication channel for faculty and staff. While past feedback tools have been temporary and tied to specific events, an ongoing platform could give community members the opportunity to share questions, input, and comments year-round.

One idea is to open a permanent communication channel between the BAC and members of the SJSU community, such as a Google form and/or a Padlet, etc. In the last few years such channels have only ever been temporary, used in the leadup to specific budget events (Town Halls). After the event they are closed. Instead, consider having a channel that is set up by (and fully accessible to) the BAC, so that people can submit questions, input, and comments any time throughout the AY.

Another idea is to devise and run a campus-wide survey more periodically, perhaps once every 2 years. In 2023 the BAC ran a survey and collected a lot of qualitative data that was interesting and informative. 

Transit, Services & Other

• How will the Bay Area transit fee program be supported, what is the January timeline, and will staff and faculty be eligible?

If the additional fee is approved and implemented, the Bay Pass would be managed by the Associated Students Transportation Solutions Office. Since this potential fee is paid for by students, the benefit would remain exclusively for students. All potential fees must be proposed by January 2026 in order to go through the approval process for a Fall 2026 implementation, if successful.