Integration reflects CSU’s commitment to its core educational mission, fiscal sustainability and supporting workforce needs while preserving Cal Maritime as one of the nation’s premier maritime academies.
The California State University (CSU) has announced a recommendation to integrate California State University Maritime Academy and California Polytechnic State University, San Luis Obispo, and preserve Cal Maritime’s nearly 100-year history and reputation as a vital maritime institution.
CSU Executive Vice Chancellor and Chief Financial Officer Steve Relyea and Deputy Vice Chancellor of Academic and Student Affairs and Chief Academic Officer Nathan Evans made the recommendation to Chancellor Mildred García, explaining that bold and decisive action is necessary to address growing financial challenges and enrollment declines at Cal Maritime that have undermined its viability as a standalone institution.
“The integration of Cal Maritime and Cal Poly will benefit the students, faculty and staff of both institutions, as well as advance the broader mission of the CSU system by enhancing the quality, diversity and sustainability of the CSU’s academic programs and services statewide,” said Relyea and Evans. “In addition, it will serve industry and workforce needs of the state of California and of the nation while also supporting U.S. economic and national security interests. We are confident in our recommendation.”
Over the last seven years, Cal Maritime has experienced a 31% enrollment decline, from approximately 1,100 students in 2016-17 to just over 750 in 2023-24. That, coupled with rising employment and operational costs, has contributed to Cal Maritime’s fiscal crisis. These challenges are not unique to Cal Maritime, as colleges and universities nationally, including the state maritime academies, have been experiencing enrollment and fiscal challenges. Cal Maritime has implemented several actions and is considering additional steps toward reducing expenses and increasing revenues over the next three years. However, any further reductions to its budget risks compromising Cal Maritime’s critical infrastructure and unique academic mission.
“Cal Maritime has been part of Vallejo’s rich history and a source of pride for eight decades. Our students, faculty, staff and alumni have played an important role in the history of the state, the region and the nation,” said Cal Maritime Interim President Michael Dumont. “An integration with Cal Poly is an amazing opportunity to honor that legacy by preserving one of the nation’s premier maritime academies.”
Under the recommendation, Cal Maritime would retain its maritime focus within Cal Poly, with the integration of operations, resources and governance structure. Cal Maritime’s specialized degree programs, three of which lead to a Merchant Marine license issued by the U.S. Coast Guard, would continue to be offered at the Vallejo campus. Both institutions would benefit from expanded academic offerings, research opportunities and facilities.
Cal Maritime’s students would become part of the Cal Poly student body and benefit from Cal Poly’s strong reputation as a comprehensive polytechnic institution and gain access to a broad range of academic facilities and student services.
“As I've reflected upon this new opportunity the CSU has asked Cal Poly to take on, I've recognized the value it provides both Cal Poly and Cal Maritime,” said Cal Poly President Jeffrey D. Armstrong. “Both of our institutions share an innovative, hands-on, learn by doing approach and academic programming that is rooted in world-class engineering. I am optimistic and confident that we can leverage these and our other collective strengths to build upon and ensure our future success.”
The integration, which would be complete by the start of the 2026-27 academic year, requires the approval of the CSU Board of Trustees. The board will be asked to act on the recommendation at its November 2024 meeting following information sessions at its July and September meetings.
“The recommended integration of Cal Maritime and Cal Poly is an innovative and vitally necessary strategy with benefits that will be felt throughout the CSU, the state of California and our nation,” said CSU Chancellor Mildred García. “It provides a long-term solution to Cal Maritime’s untenable fiscal circumstances, preserves its licensure-granting academic programs so key to the maritime industry and our state’s and nation’s economy and security, and leverages academic and operational synergies between the two universities that will benefit California’s diverse students, families and communities for generations.”
Cal Maritime Facts
The only degree-granting maritime academy on the West Coast and one of only six state maritime academies in the U.S., California State University Maritime Academy (Cal Maritime) was founded in 1929 and became a part of the CSU in 1995. Located on 92 acres of waterfront property in Vallejo, California—and aboard the 500-foot Training Ship Golden Bear—Cal Maritime offers multiple academic programs that prepare students for high-impact maritime industry careers in the fields of engineering, oceanography, transportation, global logistics, marine sciences and international relations. Specialized programs in marine transportation, marine engineering technology and mechanical engineering lead to a Merchant Marine license issued by the U.S. Coast Guard in addition to a bachelor’s degree upon graduation. Cal Maritime consistently appears as a top university for return-on-investment rankings leading to high paying jobs for its graduates.
As of the 2023-24 academic year:
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Degree programs: 7 undergraduate degrees; 1 master’s degree
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Student population: 712 undergraduates; 43 graduates
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Undergraduate demographics: 52% students of color; 25% Pell; 9% first generation
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Employees: 81 faculty; 176 staff
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Annual budget: $53 million
Frequently Asked Questions
Is Cal Maritime being closed or eliminated?
Cal Maritime is not being closed or eliminated. If the recommendation is approved by the CSU Board of Trustees, Cal Maritime will be integrated with California Polytechnic State University, San Luis Obispo, a CSU institution that has complementary academic programs. All necessary steps will be taken to ensure that existing Cal Maritime programs—including those that lead to a Merchant Marine license issued by the U.S. Coast Guard—will continue, maintaining this critically important resource for our state and the nation's economy and security.
Why is the CSU considering this integration? What were the circumstances at Cal Maritime that led to this recommendation?
Cal Maritime currently faces fiscal challenges of a magnitude that undermine its viability as a standalone institution. This financial unsustainability also threatens the offering of key academic programs leading to a Merchant Marine license issued by the U.S. Coast Guard, as well as the continued employment of numerous faculty and staff. The integration recommendation would preserve these programs, which provide a vital economic and security resource to our state and nation.
In April 2024, Cal Maritime leadership projected that it will be required to utilize $2.8 million of its operating fund reserves in fiscal year 2023-24, leaving a mere $317,000 balance as of June 30, 2024. This remaining balance represents less than three days' worth of university operating expenses, a level that is untenable by any measure.
The primary factors contributing to this unsustainable financial condition are declining enrollment, increased compensation costs and rising operating expenses. Over the past seven years, enrollment at Cal Maritime has declined by 31%, from a headcount of 1,107 students in 2016-17 to a headcount of 761 students in 2023-24. Projections indicate that a growing budget deficit through 2026-27 is inevitable, even if enrollment growth targets were met.
The integration of Cal Maritime and Cal Poly is consistent with the recommendations of the CSU's Sustainable Financial Model Workgroup Report to “identify prospects for cost savings that could arise from consolidation of certain administrative functions and from inter-campus cooperation and collaboration in the offering of programs and services." This Workgroup, formed in 2022, was charged with creating a multi-year strategy to achieve stable and predictable revenues to support the CSU mission, maintain affordability for its students and recognize the differing needs of its universities.
Is this a temporary solution to help Cal Maritime through its financial challenges, with a goal of having it regain its independent status once enrollment and finances improve?
No. This is intended as a permanent solution. The success of this integration will rely on the strengths that Cal Poly can bring to Cal Maritime, such as national recognition, strong academic programs, student advising and coursework, and marketing and branding for strategic enrollment growth.
Were any steps taken or considered to mitigate Cal Maritime's fiscal crisis?
Yes. In recent years, Cal Maritime has taken significant steps to contain costs and reduce expenses by assessing all operating expenses, increasing operational efficiencies, eliminating vacant positions, imposing a hiring freeze, pursuing shared-service agreements with other CSU campuses, and aligning the university's administrative structure to a size more appropriate to its current enrollment circumstances. As part of the reorganization, Cal Maritime has eliminated two vice president positions and redesigned two other vice president positions with a corresponding reduction in salary. Cal Maritime continues to assess the need for further workforce reductions as part of its reorganization efforts. The university is also examining additional reductions that will likely impact service levels and programmatic offerings in the upcoming academic year.
Are there alternative options to help Cal Maritime achieve financial viability?
Given the current budget environment and fiscal outlook, the only viable option is integration with another CSU campus. The CSU remains committed to ensuring that the unique and much-needed offerings of the Cal Maritime campus are preserved and maintained. To do that, integration must occur.
Why is saving Cal Maritime important to the CSU?
Unique to the western United States, Cal Maritime is one of only six degree-granting state maritime academies in the nation that produce U.S. Coast Guard-licensed mariners. Cal Maritime graduates are prepared for high-impact careers in the fields of engineering, oceanography, transportation, global logistics, marine sciences and international relations. The CSU is unwaveringly committed to preserving this critically important resource—vital to economic and national security—for the state and nation. By providing a solution to Cal Maritime's financial unsustainability, the recommended integration enables the CSU to meet this consequential commitment.
Why was Cal Poly recommended as the university that Cal Maritime would integrate with?
Cal Poly and Cal Maritime are similar institutions in many fundamental ways, primarily in their academic missions and learning ethos. Both institutions rely upon a hands-on, “learn by doing" approach. Both offer degree programs within high return-on-investment program areas. Clear synergistic opportunities exist in multiple academic programs, perhaps most obviously withing the engineering and marine science fields. Both institutions are involved in national and economic security issues that impact the western United States, the Pacific Rim and beyond. There is also untapped potential in the ability of the two institutions, if combined, to compete for increased federal funding for national security, renewable energy and other programs.
Were other CSU campuses considered as potential integration partners for Cal Maritime?
Many options were considered to preserve Cal Maritime's unique programs while ensuring financial feasibility and sustainability. It was determined that Cal Poly was clearly the best aligned with Cal Maritime for a successful integration for both universities.
How much money is this going to save the CSU?
The primary goal is to preserve critical degree programs and safeguard their crucial contributions to national and economic security initiatives, rather than to reduce costs. Cost-saving isn't the relevant measure here. The transition can be accomplished without requiring additional ongoing funding beyond the standard incremental support typically provided to the universities. It is anticipated that there will be some cost savings over time associated with administrative structures, but the short-term costs to position both campuses' success are projected to be approximately $5 million a year for seven years to include substantial support for financial aid and scholarships.
Where will the one-time resources come from?
The one-time resources will come from systemwide designated balances and reserves that are held for important university initiatives and other one-time purposes.
What can CSU anticipate from the federal government for support in the future?
Support from the U.S. Maritime Administration (MARAD) is projected to remain consistent as long as Cal Maritime remains in operation. This includes funding for the pier and future funding associated with the new training ship.
Who is making the final decision about this integration and when? Will there be an opportunity for public comment/input?
The CSU Board of Trustees will make the final decision—expected during the November 2024 meeting—regarding whether to move forward with integration of Cal Maritime and Cal Poly as recommended. The proposed integration was presented to the board for discussion in July 2024 and is expected to be presented again in September 2024.
What happens if the board votes against integration?
If the board votes against integration, The CSU will have to again evaluate the financial solvency of Cal Maritime.
Will this be an inclusive process? Will there be an opportunity for public comment/input?
Yes, the integration will be an inclusive process. There will be time for public comment at any board meeting where the integration is considered as part of the agenda.
What is the timeline for the integration?
The Board of Trustees was presented an information item on the integration recommendation at its July meeting. The board will also be presented with an information item at the September 2024 meeting. The board is expected to vote on the item at the November 2024 meeting. If approved by the board, the integration would begin in July of 2025 with the first maritime academy students enrolled as Cal Poly students in fall of 2026.
Why does the board and the system need to act on the timeline proposed? Why can't we study this longer?
Cal Maritime has taken many important actions to mitigate enrollment declines and budget constraints, but it has arrived at a critical moment where the institution is simply not sustainable as a stand-alone institution. This reality is now compounded with even more challenging fiscal times for the State of California, when further budget cuts to the CSU system are anticipated. CSU's own reports have highlighted the urgent need for some bold actions to address financial sustainability and enrollment challenges, and this timeline not only addresses that urgency but aligns with other timelines—Cal Poly's conversion from quarters to semesters and the federally-funded training ship and infrastructure—to bolster the success of this endeavor.
Has any study been done regarding this integration?
There has been a careful review of other campus integrations in multiple university systems throughout higher education.
The CSU has mentioned that other integrations were looked to as models in creating its recommendation. The example of Texas A&M University at Galveston, for instance. What were some things the CSU learned from Texas A&M?
Takeaways from the Texas A&M model include:
- Appoint a superintendent to oversee the maritime academy and a vice president to oversee the campus and all programs resident on the campus.
- At the second campus, there can be increased efficiencies, cost savings and services, and a reduced need for redundancies.
- There will be challenges with loss of autonomy and adjusting to the need for change.
What will Cal Maritime be called if integration is approved?
The name of Cal Maritime after integration has not been formally determined. A final name will be discussed and decided at a later date.
Please describe what “one institution" looks like in relation to faculty, students and organizations.
This recommendation is to integrate one CSU campus into another, reducing the number of CSU universities from 23 to 22. Functionally, the outcome of the integration is to have one president and administrative structure, one budget, and one of each of the appropriate shared governance structures, including faculty/academic senates, one Associated Students, one staff council, and one alumni association.
Who will be in charge of Cal Maritime after the integration?
The integration will result in one president, at Cal Poly (President Jeff Armstrong). Upon Board of Trustee approval and after July 2025, a superintendent will lead the California Maritime Academy. In addition, there will be a vice president and Chief Executive Officer who will lead the branch campus. Both individuals will report to the president of Cal Poly with likely dual reports to the provost and executive vice president as well.
How will fees and financial aid be determined for the Cal Maritime campus?
All students will be subject to the Cal Poly fee structure beginning fall 2026. Actual fees to be included are under review (e.g. uniforms at Maritime, local fees on a given campus, etc.).
Over 50% of recent campus-based fees will support financial aid and scholarships to expand access for students from California and the western facing Pacific United States (Washington, Oregon, Alaska and Hawaii) and U.S. territories (Guam and Samoa). An emphasis will be placed on low-income and underserved students from these states and territories.
The CSU will ensure that continuing Cal Maritime students are provided scholarships to cover any difference in fees as they complete their degrees.
Fees will be clearly communicated by spring 2026, prior to the fall 2026 admission process.
How do you reconcile admission standards between the two universities?
All students who apply to Cal Poly apply to a specific major and compete against other students who have applied to the same program. After integration, this will work just the same. Students will apply to specific programs and the applicant pool will set the level of competitiveness. Cal Poly will utilize its comprehensive review known as Multi Criteria Admissions (MCA) process to screen and evaluate students. Students will be required to meet CSU minimum standards.
How will the curriculum be determined?
As described in the July Board of Trustees agenda item and presentation, there will ultimately be one integrated set of academic offerings, one academic senate, and one set of curricular processes under Cal Poly after integration is complete. Those curricular processes will be administered by the combined Cal Poly faculty through their existing curricular and governance policies and processes. The faculty will ultimately determine the curriculum. Additionally, for the maritime licensure programs, there are federally articulated requirements, learning outcomes and sea time requirements that must also be considered in that process.
In addition to those curricular processes led by faculty, there will be a need to address the curricular graduation requirements of continuing Cal Maritime students who will be enrolled during the integration. Somewhat analogous to the process used when CSU campuses have converted from quarters to semesters, there may be a need for individual student curriculum plans for continuing Cal Maritime students who are enrolled.
What will the diploma for Cal Maritime students say?
The specifics around the diploma have not been determined yet and are currently under review as we look to the best option for students.
Will the decision to integrate impact either the arrival of the new training ship or the waterfront upgrades?
The proposed integration will not affect the new ship's arrival schedule or planned waterfront upgrades. The U.S. Maritime Administration has been informed of the integration plans and the university is collaborating closely with the CSU Chancellor's Office to ensure a seamless implementation of the waterfront upgrades supporting the new ship's arrival.
Note: The new ship is being fully funded by the federal government. The estimated cost of the waterfront upgrades is $120 million, and it is anticipated that federal funding will cover 80% and the CSU has planned to fund the remaining 20% from the capital budget.
Why is the CSU Chancellor's Office moving ahead with Cal Maritime's waterfront master that is also on the BOT July board agenda?
Cal Maritime will receive a new, purpose-built training ship in 2026 and this vessel requires a much larger wharf and associated infrastructure. The waterfront plan is tied to the arrival of the new ship, and the waterfront construction plan needs to begin in late 2024.
Will people be losing their jobs in the integration of the institutions?
It is premature to begin analyzing the impact on the Cal Maritime workforce. Analysis will be needed to determine existing capabilities and future requirements. Much of the analysis will depend upon future student enrollment numbers.
The CSU is required to “meet and confer" with bargaining units about possible impacts of the proposed integration on the terms and conditions of employment for CSU's represented employees. That process has already started. The CSU believes the integration will have many positive effects, and the university will continue to work with its labor partners to further identify all possible employee impacts.
What does this recommendation say in light of the national trends around declining enrollments and demographic cliffs?
This integration is a pathway toward addressing both of those trends in a way that supports additional enrollment.
What is the minimum number of students it takes to make a university financially viable?
The financial viability of a university depends on various factors beyond just student enrollment, such as degree offerings, regional and state impacts, tuition revenue and state funding, and operational costs. While student enrollment does contribute to financial health, there is no one-size-fits-all approach, as each university's circumstances are unique.
How many students are at the other maritime academies? What is the overall trend on decline in enrollment?
In 2023, the combined enrollment for the six State Maritime Academies (SMAs) across the country was 2,355 license-track students. From 2015 to 2023, combined SMA license-track student enrollment declined by 34.5%, or 1,238 students.
From 2015 to 2023, Cal Maritime's license-track student enrollment declined by 20.1% or 128 students.
What happens if enrollment remains low after the integration?
Cal Poly will bring to bear proven, data-driven marketing and enrollment strategies to increase interest in the pursuit of Cal Maritime degree programs and careers.
Not all academic programs at Cal Poly or any campus have precisely the same demand. However, the integration allows those programs to be part of a wider array of academic degree offerings, mitigating the issue of enrollment in just a handful of programs. Cal Poly can bring significantly greater exposure to prospective students and communities to the academic programs and educational experience offered by Maritime Academy programs.
Why are you proposing integration of the two least diverse CSU institutions?
Each of the institutions has made great progress in diversifying their student bodies over the past few years. Strategic partnerships with high schools, community organizations and philanthropic organizations have strengthened partnerships and outreach efforts. Cal Maritime and Cal Poly have also partnered with community colleges to increase transfer rates. The combined efforts will bring a collective impact on the diversity of new students that cannot currently be achieved individually. The integration will also increase diversity at both institutions because of the $35 million one-time funds to remove the financial barriers for all students, impacting both recruitment and retention.
Recently there has been a lot of discussion around Cal Maritime and Title IX issues. How will the integration with Cal Poly affect Title IX on both campuses?
Cal Maritime has fully embraced the recommendations from the systemwide Title IX review that took place in 2022-23. The university's Title IX Implementation Plan has been submitted and approved by the CSU. Additionally, Cal Maritime has a full-time onsite director of Title IX and Civil Rights and support staff in the Title IX office. Enhanced education and awareness are accomplished through training, communication and outreach, campus events, and programmatic updates. Cal Maritime is committed to fostering a culture of safety and inclusion on campus and during the summer sea term aboard the training ship.
Cal Poly's Civil Rights and Compliance Office (CRCO) has a strong and experienced staff that includes a Title IX coordinator and two investigators, each with high technical and administrative fluency, as well as a specialized care manager and hearing coordinator, who ensures Cal Poly's civil rights program extends beyond compliance to prioritize care and support for impacted individuals.
Both Cal Poly and Cal Maritime utilize the Maxient case management system, which optimizes the data tracking and retention practices. Of special note, since 2020, the Cal Poly team has supported several other CSU campuses by conducting Title IX investigations and hearings, and providing trainings and climate consultations, for them. These experiences demonstrate that Cal Poly is well-prepared to partner with Cal Maritime's team and scale the support necessary for continued success.
Cal Poly's CRCO and the Cal Maritime Title IX team look forward to partnering on Title IX and developing a joint Civil Rights Implementation Plan responsive to the Cozen O'Conner recommendations and state auditor report findings.
What has been the reaction from state law makers in Sacramento regarding the Cal Maritime/Cal Poly Integration Plan, particularly with the constitutional officers and the legislature?
After extensive briefing of Sacramento policymakers, the reaction to the Chancellor's recommendation for the Cal Maritime/Cal Poly Integration Plan was characterized as bold and creative. The administration and legislators asked engaging questions, looked forward to additional briefings relative to the integration plan process, and appreciated the heads-up on the critical need to take this course of action. The response in Sacramento to the recommendations was supportive with a request to be kept informed of policy issues that may need to be addressed in the legislative or budget arena.
Are there plans for additional integrations?
While this integration is the current focus, the CSU faces significant financial challenges as outlined in the May 2023 Sustainable Financial Model Workgroup Report and most recent state budget developments. Given these challenges, the CSU must remain open to considering all options in the future to ensure the financial health of the system and its universities. Of course, there are many other measures the system can and will implement in addition to fully integrating campuses.
Will the CSU go from 23 to 22 universities?
Yes, if integration is approved, the California State University will have 22 universities.