Last year, she arrived 15 minutes early to her first fall class with an internship and campus job already in tow, plus a mental map of Cal State University Dominguez Hills, a sprawling, nearly 350-acre institution in the Los Angeles area’s South Bay. 

The already confident student possessed even more motivation to make the most of her time on campus because of a program she took last summer: The First-Year Experience Summer Program.

“Everything was so easy to me, and I’m really grateful, because I know it was because of that First Year Experience that I was able to do that,” said Menera.

The summer program is one of several strategies Cal State Dominguez Hills seeks to expand as it combats a half-decade enrollment slide that’s unraveling its finances. But it’s not the only approach to fiscal right-sizing. Nor is Cal State Dominguez Hills alone in combatting large drops in its student population. 

That’s because the money that the country’s largest public four-year university system needs to properly educate its students isn’t there. Now, California State University is embarking on a detailed, sweeping plan to enroll more students as part of an all-out push to bring much-needed cash to the workhorse system of 22 campuses that educates 471,000 students.

Ten campuses, including Dominguez Hills, saw double-digit enrollment declines in fall of 2025 compared to fall 2020, when the first full academic year of the COVID-19 pandemic began. 

The loss of enrollment is a major driver of the financial struggles many of the system’s campuses face. The Cal State’s chancellor’s office says the system is facing a $2.3 billion budget gap in the current academic year. There’s a bright spot, though: Cal State officials say the system overall is on pace this year to beat state enrollment targets for the first time in four years.

Still, a key state lawmaker admonished the system’s under-enrolled campuses for missing its enrollment targets.

“I’m concerned that these campuses may be overfunded,” said Assemblymember David Alvarez, a Democrat from Chula Vista, at a December legislative hearing about Cal State’s finances. He is chairperson of the Assembly’s budget subcommittee on education and a key player in deciding how much state money universities receive. His worry? Other campuses with rising enrollments need the money to educate their ever-growing student body by hiring more professors, tutors and other staff to support students.

The state funds campuses based on how many Californians they enroll; by educating fewer students than what the state pays per student, the campuses are technically collecting more revenue than their enrollment levels would permit. That’s because the state pays schools for the number of California students they’re supposed to enroll, not how many they actually enroll.

By that measure, San Francisco State last year collected close to $50 million more in state dollars than its enrollment levels indicate it should receive — the campus enrolled about 5,300 fewer Californians than state goals stipulated in 2024. Cal State Dominguez Hills was taking about $7 million more. Conversely, Cal Poly Pomona was down about $20 million, because they enrolled 2,500 more students than the state’s target.

California is also eyeing multi-billion-dollar budget deficits, putting even more pressure on lawmakers and school systems to use money wisely.

The Legislature last year required Cal State to submit a report by March 1 detailing how campuses with enrollment struggles plan to attract new students and meet their state targets. Campuses sent their turnaround plans to the system’s chancellor’s office by December. 

CalMatters conducted a dozen interviews and issued six records requests for this story.

Spotlight on Cal State Dominguez

Cal State Dominguez Hills’ enrollment is down 20% compared to 2020 and its finances have suffered. As a result, campus officials laid off 38 non-faculty staff and managers in 2025.

The school projects it will lose an additional $8 million this year, cutting deeper into its reserves, which have dwindled from $46 million in 2022 to a projected $10 million this summer. 

The campus’ graduation rates fall below the systemwide average. And the campus historically has posted lower retention rates, meaning more students quit after one or two years compared to other campuses in the system. Dominguez Hill’s retention rate has grown in the last year, however. 

The school enrolls the highest share of undergraduate students in the system who receive the federal Pell grant for low-income students — 69% compared to a Cal State average of 51%.  Systemwide, those Pell students graduate at lower levels than students who don’t receive the grant.

Dominguez Hills’ turnaround plan includes a campus goal of enrolling about 800 more students to hit its enrollment target by 2027-28. More students plus planned systemwide tuition hikes and a new student-approved campus fee are projected to generate $25 million in additional money. 

To reach its enrollment goals, the campus will lean on approaches that have demonstrated success, including the First Year Experience summer program, which Dominguez Hills started in 2022. Through the program, about a quarter of the freshman class enrolls in up to two free college courses during the summer before fall term. These are all general education courses required for graduation, with an emphasis on teaching students how to study well. The program also engenders a sense of community among students and campus staff. 

Other strategies include attracting new students and keeping more of its current students. Another is to re-enroll students who’ve previously dropped out. It’s an approach that’s top of mind for campuses across the state: California is home to about 3.5 million adults with some college credit but no degree. Even a miniscule bump in the students who return to school could eradicate a campus’ enrollment woes.

Another budget-stabilizing effort may mean additional job losses. Campus professors are now meeting regularly to find ways to combine courses and run fewer sections of the same course. This helps the school average more students per course, but it’ll likely mean fewer lecturers — instructors who lack the full-time benefits and job safety of tenured professors.

Systemwide, 63 degree programs were discontinued by the Board of Trustees in 2024.

Dominguez Hills in February reversed course on terminating six majors, including art history and philosophy. Student advocacy spurred the restoration. The school also determined that cutting individual programs made less sense than reviewing all majors to find other ways to integrate academic programs, said Kim Costino, the school’s interim provost, in an interview.

“Everyone is hopeful that we are going to be able to create a more economically efficient curriculum that serves students better,” said Terry McGlynn during an interview. He is a biology professor at Dominguez Hills who is chair of the academic senate, a faculty group that shapes campus academics. 

But “there’s clearly going to be some pain involved,” he added.

Summer session to keep students longer

The school cited in its report to the system that expanding the The First Year Experience program is one way to increase enrollment. 

The campus spends $635,000 annually to run it. Almost 84% of students in the program  advanced to their second year of college in fall 2024 — well above the 66% for students who didn’t sign up for the First Year Experience, according to data the campus shared. For a school desperate to undo its enrollment slide, keeping the students it has — and their tuition dollars — is a key strategy. 

Any incoming freshman can enroll in the First Year Experience.

One reason Menera knew the campus so well when fall classes began? An extra-credit assignment for her environmental studies course over the summer required her to identify every vending machine on campus. 

The First Year Experience also features activities that reinforce what students learn, such as a field trip to a museum for an English course led by a guest author whose book the professor assigned to students. For her environmental studies class, Menera said that she carried a trash bag for more than a week to visualize how much waste people accumulate. 

The school also awards a $150 scholarship to students who complete a summer-experience course. But for students who work over the summer or help care for family members, that amount alone may not be enough to persuade them to attend the program, said Costino. She ran the summer program until December. 

The summer courses are long. Most meet twice weekly for four hours, so a student in two courses is in class for about 16 hours a week. Menera worked anyway that summer, maintaining the job she had during high school at TJ Maxx in Anaheim, some 20 miles from campus. She continues to work now, logging 17 hours a week at a campus convenience store on top of a full academic load. The summer program mentally prepared her for long school and work days, she said.

Costino thinks the program’s growth won’t be in students enrolling the summer before freshman year, but instead in students who earned a D or F in a course their first year and need to make up the class the following summer. While students can presently retake classes, they have to pay for them. Providing free make-up courses that either replace or average out a previous low grade helps the school retain more students who are on academic probation or just lost academic confidence after a bad first year, Costino said.

Re-enrolling students who dropped out

Cal State Dominguez Hills is seeking to expand its efforts to re-enroll students who’ve dropped out. Since 2021 the school has re-enrolled nearly 1,100 such students for fall term through its “Once a Toro, Always a Toro” program, named after the campus mascot.

While these students represent a tiny portion of the campus’ annual enrollment, they lead to instant revenue for the school from tuition and fees. It’s a few extra million dollars for the school,  and it costs about $300,000 to $600,000 annually to maintain the re-enrollment program.

Once these students return to Dominguez Hills, most graduate. Data the campus shared with CalMatters show that earlier cohorts of the re-enrolled students have graduation rates of around 50% three years after they return. The numbers grow to about 70% after six years.

Graduation rates for CSU Dominguez Hills students who re-enroll after dropping out

CSU Dominguez Hills has been re-enrolling students who dropped out since at least 2016. In recent years, the school has brought back more students each fall. The entering fall class of re-enrolled students has risen from about 150 to 300 students the last few years. So far, about half graduate after three years back at school.

The school is now targeting any student who dropped out in the last 15 years or so, said Sabrina Sanders, the program director of Once a Toro. 

She maintains a list of 10,000 formerly enrolled students. Annually, about 1,000 apply, around three-quarters are admitted, and roughly 300 to 400 enroll. Some who were admitted don’t enroll for several reasons, including prior low GPAs that make them ineligible for financial aid.

One of the students who returned is Wynette Davis. The 27-year-old is four classes away from finishing her bachelor’s degree in psychology after dropping out two years ago. 

Davis transferred to the university from community college in 2022. She was on track to earn her bachelor’s in 2024 and even walked the stage during the spring graduation ceremony, needing just a few more classes that summer to finish her degree. But tragedy struck: Her daughter’s father died in spring 2024, and the shock derailed her academics. That spring and summer, she failed four classes. Davis left as a result.

She tried to re-enroll a year later, but learned she owed the university tuition money and couldn’t qualify for financial aid because her failing grades dropped her below the campus’ threshold for aid eligibility. Davis was ready to give up on earning a bachelor’s until an email from Once a Toro entered her inbox.

A staffer with the program helped Davis receive a waiver for her past-due account balance as long as she promised to pass her classes for the year, Davis said. The staffer also worked with the school financial aid office to reinstate her eligibility for financial aid for her spring classes after her grades improved.

Last fall Davis retook the classes she previously failed, passing them all this time. She’s in two classes this spring and will need two more next fall to earn her bachelor’s degree.

“If it wasn’t for the Once a Toro, Always a Toro program, I probably would not have been back in school right now,” Davis said. 

Another setback is the changing nature of academic requirements. Students who were gone for a decade may have pursued majors that don’t exist or were heavily altered, so the courses they took toward their majors might not satisfy new requirements. Sanders and the school’s advising teams collaborate with academic department deans to convert the re-enrolling students’ old coursework into the updated expectations for existing majors. Or re-enrolled students pursue an interdisciplinary major that combines old coursework with new.

“There’s a sense of shame that comes with dropping out of college and having someone there to kind of put those thoughts and put that inner dialogue to rest” was key, said Stephanie Esquivel, a returning student who re-enrolled in 2022 after leaving the campus her freshman year in 2007. 

She credited Sanders with helping her transfer her community college units to her university major. To Esquivel, a team like Once a Toro shows that the campus desires returning students and invests in the social infrastructure to help them, she said.

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Citlali Lopez, a second-year psychology student at Sacramento State, found out a few months ago she had $500 sitting in a California Kids Investment and Development Savings Program (CalKIDS) account. Although she’s been eligible to use the funds since she graduated high school in 2022, she had no idea until her sister, who works at a nonprofit that supports low-income students with scholarships and financial aid, told her to check her eligibility. Lopez was skeptical at first, but found she was eligible and registered her account.

“I was just really surprised that I was able to get some extra help,” she said.

Financial aid had been top of mind for her and guided her decision to go to Sacramento State. She plans on using the money to finish general education classes over the summer if financial aid will not cover it.

So who gets money? Under CalKIDS, all babies born in California receive a sum. Babies born between July 1, 2022 and June 30, 2023 received $25 deposits, and all babies born after July 1, 2023 receive $100 deposits.

As part of the program, all low-income first grade students receive a one-time deposit of $500. First-graders who are in foster care receive an extra $500 and homeless first-graders receive $500 more, totalling $1500 for some students. All the accounts are tax-free, and the money is invested whether or not families claim their accounts.

Additionally, the state spent $1.8 billion in the 2021-22 budget to provide a one-time deposit to all low-income students in grades 1 through 12 in 2022.

Yet, of the 4.3 million student accounts created, only 313,445 accounts have been claimed by families, meaning they have registered online and seen the amount in their accounts. Only 6.3 percent of newborn accounts have been claimed and 7.4 percent of student accounts have been claimed as of March 2024.

The state is slowly building awareness about college savings

CalKIDS is run by a three-person team led by Julio Martinez, the executive director of the Scholarshare Investment Board, an agency within the State Treasurer’s Office. It administers the state’s 529 college savings accounts, which allow families to invest money tax free to cover education related expenses in the future. The team is responsible for creating the accounts, notifying families about the accounts and explaining what CalKIDS can provide to families.

“With these programs, it takes time to kind of build brand awareness, and also to break down the skepticism that often exists when you get a letter in the mail that says you have free money,” Martinez said. CalKIDS staffers go to college fairs and financial aid nights and host online informational sessions to reach families and students.

The state allocated $22 million in the 2022 and 2023 budgets to market the program. In Los Angeles, Riverside, Fresno, and Sonoma counties, CalKIDS program info is sent to all families that request a birth certificate, according to Joe DeAnda, the director of communication at the State Treasurer’s Office. During the first three months of this year, registration in the newborn program has more than doubled, from 20,608 to 42,312 newborns.

In April, CalKIDS began targeting high school seniors, through social media, email and direct mail, according to DeAnda. By May, the number of claims among high school seniors increased by 74%. They have partnered with school districts, such as Hawthorne School District in Los Angeles County, where 87% of seniors have claimed their accounts.

Still, most of the funds for marketing CalKIDS remain unused. The 2023-24 California state budget reappropriated $8 million to CalKIDS for a statewide media campaign, and the Scholarshare Investment Board is currently soliciting proposals for marketing services, which were anticipated to start on April 1, but have not begun.

“If families are not aware of this program, then it’s not going to have the impact that we think it’s going to have,” Martinez said.

The fact that many families don’t start thinking about college until high school is one cultural obstacle that college savings programs like CalKIDS run up against, says Willie Elliott, a professor of social work and founder of the Center on Assets, Education, and Inclusion at the University of Michigan.

“So, we can’t expect that we put one of these programs in place, and, instantly, people get it and start functioning in that way,” Elliott said.

Elliott has helped develop state and local college savings programs in Pennsylvania, New York City and Washington, D.C. He says that enrollment is not the best measure of success of programs like CalKIDS, especially this early on in the program.

“What you have in place in California is the infrastructure and now you have to do the work of making communities aware,” Elliott said.

He suggests that creating a culture around college savings through programs like CalKIDs will lead to positive outcomes. Those include increased account enrollment, more family conversations about going to college, and generally less stress for families who will be hopeful for their children’s future.

The conversations about college are as important as the amount of money actually in the account, Elliott said. Elliott’s research has shown that low-income students with a college savings account are three times more likely to attend college and four times more likely to graduate than students without an account.

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