California’s economic future depends on investments today in education, workforce development, and social mobility. Gov. Newsom’s proposed 7.95% budget cut to the California State University system for 2025-26 would be a catastrophic mistake — one that threatens the dreams of thousands of students and the economic vitality of our state and region. To remain globally competitive, we must double down on our commitment to higher education, not diminish it.
At Cal State San Marcos, we see the power of education firsthand. As an engine of social mobility, CSUSM transforms lives by providing high-quality, hands-on degrees in fields such as nursing, behavioral health, teaching, engineering, and business. Eight out of 10 graduates stay in the region, fueling San Diego’s innovation economy with the skilled workforce employers desperately need. If California is serious about inclusive economic growth, investing in public institutions like CSUSM is the clearest, most effective strategy.
San Diego’s economic success hinges on developing a robust talent pipeline. The San Diego Regional EDC’s Inclusive Growth Initiative makes it clear: to sustain our innovation economy, we must double the number of post-secondary education completions by 2030, adding 20,000 skilled workers to the labor force annually. The data is undeniable — 84% of new jobs created by 2030 will require a degree or credential. Will we meet this demand with homegrown talent, or will we lose out to regions that invest in their workforce?
San Diego has long thrived on life sciences, technology, and advanced manufacturing. Yet the fastest-growing segment — the Hispanic population — remains underrepresented in these high-paying fields. Just 15% of current degree holders in the region are Hispanic, while nearly half of today’s seventh graders are Hispanic. If we fail to close this gap, businesses will suffer, communities will struggle and our economy will stagnate.
The CSU system is California’s greatest driver of social mobility. CSUSM serves a student population that is majority first-generation, Hispanic and Pell Grant-eligible. These students are the future engineers, nurses, entrepreneurs and community leaders who will shape our state’s economic trajectory. Cutting CSU funding closes doors for these students and limits our region’s ability to produce the skilled professionals our economy demands.
Consider the field of nursing: California faces a projected shortfall of 44,500 registered nurses by 2030. CSUSM’s innovative nursing programs — accelerated, traditional and community college partnerships — are addressing this gap. Similarly, our engineering program, designed with local industry input, expands opportunities for underrepresented students in science, technology, engineering and mathematics careers. These programs are the foundation of a thriving, resilient economy.
Business leaders, policymakers and the public must unite in support of higher education. That is why this month, CSUSM hosted the National Social Mobility Symposium, bringing together higher education leaders from across the country, including the Coalition of Urban and Metropolitan Universities and the American Association of State Colleges and Universities. We must advocate for state and federal leaders to prioritize higher education as the critical economic engine it is.
San Diego’s success depends on a workforce that reflects the diversity, talent, and drive of our communities. Employers must partner with local universities and invest in educational pathways. At the same time, our elected officials must recognize that funding higher education is not an expense — it is an investment with unparalleled returns.
We cannot afford to lose momentum. We cannot afford to underfund institutions that lift individuals and families into the middle class. And we certainly cannot afford to let short-term budget concerns derail long-term economic growth. Investing in the CSU is investing in our shared future.
Cafferty is president and CEO of San Diego Regional Economic Development Corp. and lives in Point Loma. Neufeldt is president of California State University San Marcos and vice chair of the Coalition of Urban and Metropolitan Universities Board of Directors.