The Cal State University may raise annual tuition by as much 36 percent, or $1,566, if it is faced with what is being called a “scorched earth budget” by Chancellor Charles B. Reed.

The 36 percent tuition hike is part of a budget contingency plan laid out by CSU officials Tuesday in preparation for a possible $1 billion reduction in state support to the 23-campus system.

Tuition for the 2009-10 academic year was about $4,000, but students could soon pay as much as $6,450 if the university is faced with the $1 billion cut.

“There are no good options, only extreme choices,” Reed said in a press release. “But, we need to ensure that our students still receive a quality education, that we preserve the institution and, that a degree from the CSU maintains value.”

In addition to the tuition increase, CSU officials plan to virtually shut down 2012 winter and spring enrollment by “wait listing” applicants for those terms. The university estimates it could turn away 20,000 qualified applicants.

The CSU currently faces a $500 million reduction in state support but may face a $1 billion reduction if state tax extensions are not implemented sometime before the upcoming academic year. Reed noted that neither the extreme tuition hike nor admission closures will be necessary if the tax extensions are implemented.

Last November, the CSU retroactively raised tuition by 5 percent for the spring 2011 semester and again by 10 percent for 2011-12 academic year.

If the university implements its contingency plan, CSU students will be faced with a 65 percent total increase in student tuition since fall 2010.

The CSU says an additional $500 million reduction in state support would amount to eliminating the budget for 10 of the university’s smallest campuses and enrollment funding for 85,000 students.

In an interview with the Daily 49er, President F. King Alexander said a cut of this magnitude would result in the discussion of closing such campuses.