Cal State East Bay announced that it will lay off and/or reducing the hours of 140 non-teaching staff to balance its budget. Lay offs will occur June 30 and are expected to save the school at least $4 million. The university is operating on a $138 million budget this year and this will be reduced by $3 million next year. Since 2006 East Bay has battled a $4.2 million deficit but is expected to eliminate it after experiencing all time high enrollments in the fall. However budget cuts forced the school to cap its enrollment this year by 1,000 students. Cal State East Bay currently employs 1,600.