Undergraduate student tuition may increase by $498 next fall if the Legislature does not provide additional revenue for the 2012-13 fiscal year.

A budget proposal will be presented today to the California State University Board of Trustees’ Budget Finance Committee for approval. The proposal asks Gov. Jerry Brown to find a way to provide the money to avoid tuition increases, said CSU Assistant Vice Chancellor for Budget Robert Turnage.

“It is a challenging budget situation, and I think the trustees will understand that we must reinvest in the CSU,” Turnage said.

CSU’s state funding support was reduced by $650 million during the 2011-12 year.

“We realize that the state is facing continued fiscal stress,” Turnage said. “The governor will have to balance a whole range of demands.”

A novel feature of the budget plan, Turnage said, is a request that the state “buy out” $138 million in funding to provide replacement revenue to avoid tuition increases.

“We think it is viable. We will know in January if the governor agrees,” Turnage said. “Based on preliminary discussion with the Department of Finance, we think there’s a shot here.”

The CSU is requesting a budget restoration total of $333 million, including the tuition buyout, from the Legislature for the 2012-13 fiscal year.

“Tuition fee increases have been bad in percentage terms and overall dollar terms,” Turnage said.

The additional revenue from previous tuition increases has been $500 million, he said, but the CSU has a funding gap of $410 million compared to four years ago.

“We have been making ends meet and lowering administrative costs where we can,” Turnage said.

CSU’s sticker prices for tuition are still lower than any other university in California and lower than most in the country, he said.

“It is possible that the trustees could lower tuition fees in future years if the state provided the resources necessary,” said Erik Fallis, CSU spokesman.

Without the buy-out, the tuition fee would remain at a higher level until the CSU Board of Trustee voted to change it, Fallis said.

“This budget plan is about restoring student access,” Turnage said. “We need a certain level of additional resources in the next fiscal year in order to meet the enrollment growth demands that we face.”

One measure of access is the ability to admit students from community colleges and high schools next fall, Turnage said.

Fallis said $189.5 million is included in the CSU funding request to serve an additional 20,000 students.

“We have restricted enrollment – 16 of 23 campuses have impaction – so, eligible students are being turned away,” Turnage said. “That is not something we ought to be doing. Rising average class size is not sustainable.”

One way or another, Turnage said the CSU needs additional resources and cannot go into the next fiscal year with the little money it has and meet rising demand for courses and services for current students.

“There is a lot of frustration out there,” Fallis said. “Everyone within the administration, as well as faculty and staff, cannot do what we want to in providing access to students.”

Fallis said students should channel frustration and anger where it belongs – at the doorsteps of Sacramento and the governor, and their voices will be heard.

“Everyone is dealing with the financial fallout and these are not easy decisions to make,” Fallis said. “If we don’t provide the education needed today, the situation will be dire.”

Turnage said he hopes there will be joint advocacy with students for this “buyout.”

“This really is about student access,” Turnage said. “More than half the money we are planning to spend is to cover the cost of enrollment growth or of courses for continuing students or programs designed to improve graduation success of students.”

Poul Larsen can be reached at [email protected]