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Monday, October 19, 2026Bay Area Market: Coverage updated daily

Fact check: Are Cal State faculty underpaid?

Overall, unionized staff and faculty compensation at the California State University is on par with national averages for similar public universities, but about a third of workers’ total salary and benefits are below national averages.

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Curated News BriefBased on original reporting by CalMatters Housing (September 23, 2026). The summary below is the Journal’s; the local analysis is original commentary by Omar Murillo.

According to CalMatters Housing's reporting on California State University compensation, the picture of whether faculty and staff are fairly paid turns out to be complicated. A new study commissioned by Cal State found that when you look at overall compensation packages, unionized workers are actually earning roughly what their peers make at similar public universities across the country. However, there's a catch: roughly a third of the workforce is taking home less than national averages when you account for their total salary and benefits combined.

The real tension here is geographic. Workers at Cal State's Bay Area campuses are particularly squeezed because they're earning below what employers typically pay in this region once you factor in cost of living. This matters enormously in our market where housing and basic expenses are among the highest in the nation. One trustee brought this point home directly, saying she wants to make sure workers can actually afford food and housing near their campuses, not just collect generous benefits that don't cover rent.

Right now, the negotiations between Cal State and its unions have become increasingly contentious. The unions want roughly double the four percent raises Cal State has budgeted for this year, and they're demanding automatic annual increases based on seniority rather than Cal State's preference to negotiate raises contract by contract. According to the reporting, nearly all of the billion dollars in new state funding the system received between 2021 and 2025 went toward union worker raises, which some administrators say forced painful cuts to other campus needs like libraries and counseling services.

The real sticking point beyond wages is health insurance costs. While Cal State's benefits are generally more generous than national peers, workers are seeing significant monthly charges that didn't exist or were much lower just a few years ago. One lecturer shared that her health insurance jumped from roughly $138 monthly in 2018 to almost a thousand dollars monthly now, taking up fourteen percent of her salary. Cal State says some plans will actually cost less under their proposals, but the union members aren't convinced and worry new fees will essentially wipe out any wage increases they receive.

What I am seeing locally and throughout the East Bay is that this compensation issue isn't really about whether numbers look reasonable on a national spreadsheet. It's about whether people working at our universities can actually build lives here. When a lecturer's health insurance costs more than many folks' rents used to be, that's a real problem that buyers and sellers in the community end up feeling too, because it affects who can afford to stay in the Bay Area and who has to leave.