California State University is considering a $1 billion contingency plan of cuts that would increase tuition up to 32 percent and shut down enrollment for thousands of students.
CSU has already taken action to address an initial $500 million in cuts, including reduced enrollment, increased tuition and staff eliminations.
Now universities have to prepare for double the cuts because of the state's failure, so far, to extend state taxes that are set to expire June 30.
CSU spokesman Erik Fallis warned the "scorched earth budget" would devastate the institution.
"It's the combined state funding for 10 of CSU's smallest campuses, it's the enrollment funding for 85,000 students," said Fallis.
To prepare for the possibility of more cuts, CSU plans to "wait list" applications for winter and spring 2012 and consider tuition-fee hikes at its July meeting.
"These are just two among the many very bad choices that would have to be out there for us," said Fallis.
The cuts equate to a 36-percent decrease in state support. Tuition for a full-time undergraduate student would increase to about $6,500 per year.