Plan Approved to Save Cal Maritime from Looming Financial Collapse

Cal Maritime has been at its location since 1943 seen with its current training ship Golden Bear (Cal Maritime)

Published Nov 21, 2024 6:05 PM by The Maritime Executive

 

 

The Board of Trustees of California State University approved a plan today designed to preserve and strengthen the California State University Maritime Academy (Cal Maritime), which according to the board was in danger of financial collapse. It is the only U.S. maritime academy in the western United States and just one of six state programs, in addition to the federal U.S. Merchant Marine Academy in Kings Point, New York.

The plan that was approved yesterday in committee and today, November 21, by the full board calls for Cal Maritime to be merged into the larger California Polytechnic State University, San Luis Obispo, which enjoys a strong reputation and is known for its agriculture and engineering programs. The two campuses, which are approximately 250 miles apart, will be administratively merged effective July 1, 2025, and starting with the 2026-2027 academic year the maritime students will be officially enrolled at Cal Poly with the land-based program becoming Cal Poly Solano Campus. The merchant marine licensing program and the training ship will become Cal Poly Maritime Academy.

“This historic action will increase opportunities for current and future students and reinforces support for our critically important educational mission,” said Cal Maritime Interim President Michael J. Dumont.

Presenting the options to the board, the Cal State chancellor’s office painted a bleak picture for the maritime program which is just shy of its 100th anniversary. They said the options were either the integration of what is the smallest university in the state system into a larger institution or initiating immediate steps for the closure of Cal Maritime. 

The report highlighted that enrollment in the maritime program has declined dramatically. Since 2016-2017 they said the program has lost a third of its enrollment dropping from around 1,100 cadets to 761 last fall. The report said that all the state maritime academies around the United States had faced similar challenges in part reflecting the challenges of the U.S. merchant marine. 

The institution was reported to be faced with rising operating costs and a loss of income from fewer enrollments. Earlier this year it instituted a hiring freeze and eliminated some positions while in June the idea of merging Cal Maritime and Cal Poly was first presented. Estimates are that they can realize $30 million a year in financial savings. Reports indicate that the board was told the alternative to save Cal Maritime would require as much as $30 million annually in financial aid representing a nearly 50 percent increase on its current $52 million annual budget.

“Cal Poly and Cal Maritime share an academic grounding in hands-on learning, and the integration of our universities will enhance student success on both of our campuses while helping to grow a diverse pipeline of talent to our nation’s maritime industries,” said Cal Poly President Jeffrey D. Armstrong.

 

Cadets aboard the current training ship Golden Bear -- Cal Maritime is the only maritime academy in the western United States (Cal Maritime)

 

The maritime program was founded in 1929 as the California Nautical School, originally located in Tiburon, California. It was renamed California Maritime Academy in 1939 and enhanced as part of the Merchant Marine Act of 1936 including relocated to San Francisco. The maritime academies took on a new significance during World War II with Cal Maritime’s education accelerated to a 17-month program. It was given a new permanent home in 1943 on a 67-acre site at Morrow Cove in Vallejo.

Cal Maritime will retain its maritime focus within Cal Poly, with the integration of operations, resources, and governance structure. The academy's specialized degree programs, three of which lead to a Merchant Marine license issued by the U.S. Coast Guard, will continue to be offered at the Solano location.

The Maritime Administration has also provided a significant commitment to Cal Maritime. The fifth and final training ship under construction at the Philly Shipyard has been allocated to Cal Maritime and is due for delivery in 2026. New York, Massachusetts, Maine, and Texas are receiving the other training ships from MARAD.

The hope is that the combination will provide a new basis to expand enrollment at Cal Maritime. The enhanced financial position will also permit it to undertake deferred maintenance programs as well as expand the dock to accommodate the new training ship. 

The board of trustees agreed that Cal Maritime continues to be a critical program with the state’s Lt. Governor saying it was an opportunity to elevate both campuses of the state university. The Cal State chancellor’s office also expects to invest $5 million over the next seven years with most of it going to financial aid. They have also hired a specialist firm and are investing $2 million into the consolidation of the two universities.