LONG BEACH, Calif. -- The California State University Board of Trustees approved a 10 percent tuition hike Wednesday.

Undergraduates will pay $306 more per year, increasing full-time fees to $3,354 per academic year, CSU officials said.

The board's vote was 17-2, with Lt. Gov. John Garamendi and student trustee Curtis Grima casting the dissenting votes.

"It is never an easy choice to raise fees, but we are faced with a dire state budget, and today's increase is necessary to maintain and operate our university campuses," said CSU board Chair Jeffrey Bleich.

The tuition hike was already factored into the 2009-10 state budget and is expected to generate an estimated $127 million in revenue for the 23-campus system.

Garamendi argued that tough times were precisely the reason why students shouldn't be forced to pay more money to attend a CSU campus.

"In a major economic downturn, when families have lost their jobs and their homes, it has never been more important for the California State University system to be financially available to all qualified students ...," he said.

Garamendi called the fee increase "yet another tax on students that discourages qualified, hard-working high school graduates from entering the CSU system."

Chancellor Charles B. Reed, who recommended the fee increase, told reporters last week that he felt "very comfortable" advocating for the hike because of the CSU's commitment to offering financial aid.

Of the $127 million expected to be raised by the fee increase, about one-third will be set aside for student financial aid, according to Assistant Vice Chancellor Robert Turnage.

Roughly 105,000 undergraduates should receive the State University Grant created by the fee increase, he said. Along with other grants and waivers for students, about 80 percent of those who receive financial aid will not have to pay for the fee increase, he said.

The other 20 percent will have their rising costs covered by additional loans or work/study arrangements, according to Turnage.

Per-student funding has decreased by about 25 percent over the past decade, adjusted for inflation, making the CSU system increasingly dependent on student fees, he said.

Reed has urged voters to approve propositions 1A through 1E in the May 19 special election, saying those measure would help CSU's fiscal position. But the California Faculty Association took exception.

"Chancellor Reed is simply incorrect in saying that all these propositions are needed to avoid short-term immediate budget cuts to the CSU," said CFA President Lillian Taiz.

Taiz, who teaches history at Cal State Los Angeles, said 1A would have no effect on short-term funding for the university system because the taxes provided for in the measure would not take effect until 2011.

Reed said securing the additional funding was the only way to ensure that the university system could provide an education that allows its students to stay competitive in the workforce.