California bill aims to cap Cal State salaries

California lawmakers proposed AB 1831, a bill that caps Cal State executive pay after officials received salary increases at the end of 2025. AB 1831 is still in developing stages.

Proposed by state assembly member Patrick Ahrens, AB 1831 would limit the executive salaries that are 125% of the governor’s salary. This includes presidents, vice presidents, chancellors or vice chancellors, etc. Governor Gavin Newsom currently makes $245,929 annually, according to the California Department of Human Resources,.

Cal State staff would not be able to make more than $307,411 annually.

“AB 1831 is necessary to nudge the board of trustees to refocus their efforts on student access and affordability,” Ahrens said in a hearing.

Salary raises for Cal State executives were approved by the Cal State Board of Trustees. President Jeffrey Armstrong is currently the highest paid Cal State president with a base salary of $611,203.

Cal State Chancellor Mildred Garcia has a base salary of $795,000.

“The higher education compensation landscape is evolving, and we must keep pace to attract and retain a skilled, diverse and engaged workforce,” Garcia said in a hearing. “We have made gradual but undeniable progress for fair and competitive compensation for our faculty and staff over the past several years.”

Raises were also approved for vice chancellors in January 2026, ranging from a 4% to 17% increase. Cal State executives can also receive housing stipends of up to $60,000.

“The [Cal State] board of trustees has proven that they are not able to adequately manage their finances and appropriately prioritize the core mission to support California student access to affordable quality education,” Ahrens said.

The bill defines which workers would receive a salary cap.

AB 1831 would apply to “non-represented employees,” employees that are not represented by a labor union. These include administrators, athletic coaches, contractors, executives, etc. if they are at 125% of the governor’s salary.

It would not apply to “represented employees,” workers represented by a union, which includes unions such as California Faculty Association, Teamsters Local 2010 and the California State University Employees Union.

“This is a values bill,” Ahrens said. “This is what we value in the state of California, and we should not be giving massive compensation to high-level administrations in the same budget where they cut classes, where they cut faculty and they raise student tuition.”

The bill would not allow any further salary raises for executives if there is an increase in tuition costs that same year. According to the AB 1831 fact sheet, tuition costs will be 30% more in 2028-2029 than they were in 2023.

Unions give support for AB 1831

The 2025-2026 state budget proposed a $375 million budget cut to Cal State funding. Legislation gave Cal States the option of a one-time, zero interest loan to offset the budget cut. Union protests brought the budget cut from 7.95% to 0%.

Prior to the executive salary increase, Garcia sent an email to Cal State staff in October 2025 announcing they accepted the no interest loan of $144 million from the state to give one-time bonuses to workers.

”Our decision to accept a short-term general loan of one-time dollars from the state to form a one-time compensation pool for our employees represents additional progress, even given our budgetary constraints,” Garcia said in a hearing.

In November, the Cal State Board of Trustees approved salary increases for Cal State presidents and other high ranking executives. According to the California Faculty Association, the lowest paid full-time lecturer makes $66,000 annually.

“We talk about the growing gap between the rich and poor. We are literally watching this happen in the [Cal State],” Margarita Berta-Avila, the association’s president, said in a hearing.

Erin Foote, vice president of organizing for the California State University Employees Union and Cal Poly staff member voiced her gratitude for unions.

“When they fail to use the [Cal State] budget in a way that upholds the values of California, that prioritizes student success, it just makes me more grateful that we have the union to stand up for workers,” Foote said to Mustang News.

In November 2025, Sacramento State President Luke Wood received a salary increase from $476,225 to $504,799. Earlier that year in April, 28 management positions were eliminated due to concerns over budget cuts.

“And then they voted to give raises to the very president who earlier that year made a decision to start laying off their employees because of budget cuts,” Foote said.

Cedar Fischer, child development freshman, argued that having a pay cap would attract a different group of applicants than before. He said that people who want to put time and effort into education will want to work for Cal Poly regardless.

“I feel like yes, money plays a big part, but it comes from their motivation to make a difference,” Fischer said.

Cal States express concern over AB 1831

“AB 1831 would impose a fixed salary cap and prohibit compensation adjustments for all [Cal State] employees not represented by a labor union, impacting thousands of employees including those who directly support students every day,” Cal State Chancellor Office Spokesperson Robak Warren said to Mustang News.

The Board of Trustees found that higher paid jobs will attract “highly qualified and high-performing leaders” for a Cal State executive position, according to their presentation. It listed different benefits and the competitiveness of each benefit, such as retirement or dental/vision care.

Faculty and represented staff made up 83.4% of the $6.5 billion total amount of compensation as of 2024-2025, according to the trustees. Non-represented staff and executives made up 16.32% of the compensation pool. According to Cal State, there were 47,628 non-executive staff in fall of 2025, while there were 4,707 executive and management employees.

“Additionally, this bill would set the [Cal State] at a disadvantage in recruiting and retaining staff, as none of its limitations would apply to any other state agency or California public higher education institution,” Warren said.

An estimated 30% of employees — 6,480 non-represented staffed members and six of 22 presidents — would leave their positions for higher compensation elsewhere if AB 1831 passed, according to Cal State.

“Our leaders are also and the [Cal State] are making major advancements, enrollment student success, while keeping the [Cal State] accessible and affordable,” Greg Sachs, vice chancellor for external relations and communications for the Cal State chancellor’s office, said in a hearing.

The bill could cause issues for student success, as AB 1831 would make it difficult to retain leaders at Cal States, according to Sachs.

“I feel like that’s not true,” said Daisy Cullwick, child development freshman. “The best candidates you’re gonna get are the people who actually want to make a difference and care about more than just the money they’re making.”