July, 2022

In this Issue:

  • Enacted Budget Brings Record Revenues to California Community Colleges
  • Update on Legislation Impacting Your College
  • Federal Advocacy Efforts for California Community Colleges
  • The State’s Agreement on Cal Grant Reform
  • Two League District Services that You Should Consider
  • Join Us for our Next GR Webinar: Tuesday, August 16
  • Federal Grant Opportunities

Enacted Budget Brings Record Revenues to California Community Colleges

On June 30, Governor Gavin Newsom signed into law AB 178, the Budget Bill Junior which amended SB 154, the Budget Act of 2022. Newsom’s signature concluded a season-long discussion on fiscal priorities and set into motion record-setting revenues for the California Community Colleges, whose line items are contained in the two bills noted above as well as the various trailer bills, including, but not limited to, AB 181, AB 182, and AB 183

According to the Joint Analysis on the Budget prepared by the Chancellor’s Office in consultation with the League, Association of Chief Business Officers (ACBO), and Association of California Community College Administrators (ACCCA), the 2022-23 budget for community colleges provides roughly $4 billion in Proposition 98 augmentations over the prior year, of which $1.9 billion (47%) as ongoing and $2.1 billion (53%) as one-time.

Key features* of the ongoing funding include:

COLA (6.56%)

$493.0 million


$26.7 million

SCFF Basic Allocation Increase

$200.0 million

SCFF Base Funding Increase

$400.0 million

Increase to Part-Time Faculty Health Insurance Program

$200.0 million

Increase to Student Success Completion Grants

$250.1 million


Key features* of the one-time funding include:

Deferred Maintenance


COVID-19 Block Grants to Address Pandemic


Various District Efforts


Retention and Enrollment Strategies


Healthcare Focused Pathways in Adult Ed


Common Course Numbering


Technology Modernization and Data Protection


*See p.p. 9-11 of Joint Analysis for a complete list of ongoing and one-time funding increases.

The League’s imprint on the Budget is most prominently reflected in the $600 million increase to the Base Apportionment ($400 million to Base Funding; $200 million to the Basic Allocation). Beginning last July in the Budget Change Proposal process, the League urged consideration of a significant increase in ongoing flexible funds to community college districts to assist with overall budgets and to address the specific challenges caused by the pandemic. Most notably, the League highlighted the increased costs faced by districts in sustaining robust parallel in-person and remote learning environments. Throughout the budget process, the League continued to advocate this as its top priority.

It should also be noted that the Governor’s proposal to rebench the Hold Harmless in 2025-26 to the 2024-25 level—serving as the new funding floor for those districts not yet on the SCFF—reflects the substantial concerns raised by the League’s SCFF Task Force on the impending fiscal cliff once the Hold Harmless was set to expire. Together with the increase in Base Apportionments, the budget reflects great strides in helping districts move to more stable and predictable funding.

No Dedicated Funds for Pension Obligations
Another of the League’s budget priorities was dedicated funding to assist districts with increasing pension liabilities in both CalSTRS and CalPERS. As part of a broad K-14 coalition led by the California Teachers Association, the League urged consideration of $3.5 billion in non-Proposition 98 General Fund, $1.2 billion to sustain employer contribution rates in the short-term with $2.3 billion to reduce employers’ long-term unfunded liability.

While the Governor’s May Revise would have allowed pension costs to be an acceptable expense under his version of a one-time block grant, this was not to be the case in the enacted budget. The $650 million block grant in the final budget is specific to such pandemic-related issues as student support, reengagement strategies, professional development opportunities, technology investments, and health and safety measures. As a condition of receiving these funds, districts must report to the Chancellor’s Office on their provision of health insurance to part-time faculty.

Student Housing 
The budget contains $546.7 million in one-time funds to select community colleges for housing projects that were eligible in the first round of applications last October. Another $18 million was approved for planning grants to select colleges to determine the feasibility of affordable student housing. Based on earlier projections, the League anticipates another $750 million for student housing to the three higher education segments in the 2023-24 budget.

Financial Aid
In addition to the increases in the Student Success Completion Grants, the Budget Act signals an intent to enact major Cal Grant reform consistent with League-supported AB 1746 (Medina and McCarty) pursuant to the availability of General Fund revenues to support ongoing augmentations over the multiyear forecasts beginning in 2024-25. This will undoubtedly be a major focus of the League’s advocacy efforts in the next round of budget lobbying.

Budget Change Proposals for 2023-24
The League is now in the process of completing five “shared advocacy requests” for inclusion in the System’s Budget Change Proposal for the 2023-24 budget:





Increase base funding

$500 million ongoing



$75 million ongoing


COLA for all categoricals, programs, and other mandates that do not normally receive one



Flexible line item for mental health and campus safety

$150 million ongoing


Pension Obligations for both CalSTRS and CalPERS

$3.5 billion ongoing non-98 for K-12 and California Community Colleges

Please continue to check the League’s online budget resources for more information and analysis on the recently enacted 2022-23 budget as well as the upcoming 2023-24 budget process.

Update on Legislation Impacting Your College

The Legislature is currently taking its summer recess and will return in August for final bill consideration. Once legislators reconvene in Sacramento, bills will need to pass out of either the Senate or Assembly Appropriations Committees by August 12th. They will then have less than three weeks to be considered by their colleagues for passage onto the Governor’s desk. 

For a summary of legislation that is of high priority to both your college, see below. In addition, to help you and your college take action on critical bills this session, the League has provided resources on our website. We encourage your college or district to send a letter of support or opposition for these bills.

AB 1505 (Rodriguez) Full-Time Faculty
Would artificially set a minimum amount of full-time faculty members a district can hire regardless of status of enrollment or changes in educational services relating to the pandemic.
Location: Senate Appropriations Committee

AB 1752 (Santiago) Part-Time Faculty
Would require that part-time faculty members are paid equal compensation to their full-time counterparts without regard to the resources to pay for costs.
Location: Dead

AB 1746 (Medina) Cal Grant Reform
Would overhaul the state’s current Cal Grant program by streamlining and consolidating the existing programs into a Cal Grant 2 Program for community college students and a Cal Grant 4 Program for students attending four-year colleges. Would remove the GPA, age, and time-out-of-high-school Cal Grant eligibility requirements for community college students. Provisions were enacted in 2022-23, implementing this legislation in future years if funding is available.
Location: Senate Appropriations Committee

Below are other bills of interest to your college. A full list can be found on our bill tracking website by clicking here.

AB 1705 (Irwin) Seymour-Campbell Student Success Act of 2012: Matriculation: Assessment
Requires that high school transcript be used as the primary means for determining placement in transfer-level English and transfer-level mathematics courses and narrows the use of multiple measures by colleges in the placement and enrollment of students in transfer-level math and English courses.
Location: Senate Appropriations Committee

AB 1919 (Holden) Transit Passes
Upon an appropriation, this bill would create the Youth Transit Pass Pilot Program providing grants to transit agencies for the costs of creating a program to free youth transit passes to persons attending certain educational institutions, including community colleges.
Location: Senate Appropriations Committee

AB 2738 (Reyes) Public Postsecondary Education: Community Colleges: Matriculation: Assessment
Would provide a non-binding goal of completing an AA degree within two years for a student and implements various reporting measures for colleges, including requiring colleges to publish schedule of courses that must be completed to obtain an AA or certificate, the length of time needed to follow that schedule, and further reporting requirements.
Location: Senate Appropriations Committee

Federal Advocacy Efforts for California Community Colleges

Last month California Community College leaders met with California’s Congressional Delegation to advocate for our 116 colleges. Coordinated by the League’s representative in Washington D.C., Tom Downs of Downs Government Affairs, community college leaders conveyed the critical role that the federal government plays for both our institutions and students.

A major topic of conversation was the America COMPETES Act – a piece of legislation intended to make the United States economy more competitive on a global scale. The authors of the act recognized the importance of community colleges to a competitive economy by including items like authorizing Pell Grants to be utilized for short-term programs and building out robust STEM programs.

In addition to the America COMPETES Act, California’s community college leadership spoke at length about how our colleges provide a low-cost pathway to high-demand workforce jobs. They pressed home that while California Community Colleges have the largest free tuition program in the country, federal financial aid is still essential in helping our students cope with living in a state with some of the nation’s highest living costs.

California Community College leaders met with the following offices:

  • Amy Loyd, Assistant Secretary for the Office of Career, Technical, and Adult Education for the Department of Education
  • Rep. Judy Chu (D-27)
  • Rep. Ro Khanna (D-17)
  • Rep. Doris Matsui (D-06)
  • Rep. Jimmy Panetta (D-20)
  • Rep. Scott Peters (D-52)
  • Rep. Mark Takano (D-41)
  • Rep. Norma Torres (D-35)
  • Rep. David Valadao (D-21)

The State’s Agreement on Cal Grant Reform           

On June 30, the Governor signed into law the 2022-2023 budget agreement, officially enacting the expenditures in the state’s historic $300 billion spending plan. Among priorities ranging from gas rebates to healthcare, state leaders showed their commitment to higher education through a large investment in financial aid for community college students. After years of unwavering advocacy, Cal Grant reform was included in the state’s budget agreement, an outstanding feat for students and advocates alike.

Assembly Bill 183, the higher education trailer bill, outlines the changes needed to implement the new, modernized Cal Grant program. There is one caveat though—the trailer bill language notes that the distribution of the new Cal Grant awards is contingent on General Fund moneys over the multiyear forecasts beginning in the 2024–25 fiscal year being available to support ongoing augmentations and actions, and funding being provided in the annual Budget Act. The delayed implementation underscores the need to remain engaged in future budget discussions to ensure that the state follows through on its commitment to student aid.

So, what does this mean for the future of financial aid? If state revenues suffice, the budget bill references full adoption of Cal Grant reform as outlined in Assembly Bill 1746 by Assemblymembers Medina and McCarty. AB 1746 establishes the Cal Grant Equity Framework to streamline and consolidate the existing Cal Grant programs into a Cal Grant 2 Program for community college students and a Cal Grant 4 Program for students attending four-year colleges. The Cal Grant 2 program removes the GPA, age, and time-out-of-high-school eligibility requirements for community college students. The new program is estimated to award Cal Grants to over 109,000 additional community college students—recognizing that the cost to attend community college is not just tuition and that the total cost of attendance needs to be addressed.

Although there is still work to be done, the inclusion of Cal Grant reform in the state budget is an exciting, major point to be celebrated. We are one step closer to making a historic change to the state’s financial aid system, one that would not be possible without the support and commitment from college leaders throughout the state. Whether it was a letter of support to the Legislature or meeting with local elected officials, the League would like to thank everyone for their commitment to this cause and to our students. As this process moves forward, we look forward to remaining engaged with state leaders and budget staff to #FixFinancialAid.

Two League District Services that You Should Consider

The League works closely with Chief Business Officers (CBOs) and other campus leaders to offer programs that allow districts to benefit from the power of collaborative purchasing and competitive pricing. Through a comprehensive list of offerings, the League’s District Services are designed to save colleges time and money. Here are two you should consider this fall:

OPEB Trust
Consider the League’s Retiree Health Benefits JPA Trust when you have funds available to set aside for future OPEB needs. With the benefits of a section 115 irrevocable trust held by US Bank, the JPA continues to provide low fees and strong returns, along with increasingly riveting board meetings with top investment advisors from Meketa Investment Group. Established and overseen by a board of California Community College CEOs and CBOs; the trust now also offers discretionary investment options. To learn more visit: https://ccleague.org/district-services/retiree-health-benefits-jpa

Student Housing Feasibility Studies
Pursuant to California Public Contract Code 20651, and in an effort to assist California's community college districts with the most qualified vendors, the League solicited proposals for Student Housing Feasibility Studies and selected The Scion Group and Brailsford & Dunlavey. Their proposals are available on our website. If your college or district is interested in building student housing, we encourage you to use one of our selected vendors for a feasibility study to understand the costs, impacts and other factors pertinent to the project. To learn more visit: https://ccleague.org/district-services/student-housing-resources

For more information about these District Services, please contact Lisa Mealoy, Chief Operating Officer lmealoy@ccleague.org or 916-245-5027.

Join Us for our Next GR Webinar: Tuesday, August 16! Join the League's Government Relations Team for our monthly webinars. Receive important information regarding legislation and proposals discussed in Sacramento and Washington, D.C. that will impact you, your students, and your institution.

2022 Webinar Schedule
January to October: Every third Tuesday of the month, 11:00 a.m. - 12:00 p.m.

Tuesday, July 19, 11:00 a.m. Canceled
Tuesday, August 16, 11:00 a.m.
Tuesday, September 20, 11:00 a.m.
Tuesday, October 18, 11:00 a.m.

Webinar Details
Telephone Number: (646) 876-9923 or (669) 900-6833
Meeting ID: 623 780 059
Password: 110660

Be sure to register in advance for this meeting. After registering, you will receive a confirmation email with information about joining the webinar.

Federal Grant Opportunities

Presented by Downs Government Affairs

The League, in partnership with Downs Government Affairs, provides a list of federal grants to assist your community college in improving its programs and services.  For a full list of federal grants available to community colleges, visit our Federal Grants page at www.ccleague.org/federal-grant-opportunities.

If you have any questions, please feel free to reach out to Thomas Downs at TCDowns@downsgovaffairs.com.

Upcoming Events

Consultation Council
July 21 | Zoom

Board of Governors Meeting
July 25 | Zoom

ACCT Governance Leadership Institute for New Trustees
August 4-6 | Washington, DC

Student Trustees Workshop
August 12-14 | San Francisco

ACCT Leadership Congress
October 26-29 | New York City, NY

For more information, contact the League's Government Relations and Communications staff: advocacy@ccleague.org

Follow League Tracked Bills at www.ccleague.org/advocacy/bill-tracking
For news related to the State Budget and Policy visit www.ccleague.org/advocacy