Thursday, May 16, 2024

Community College League of California President & CEO Larry Galizio, Ph.D., shared the following proposed budget summary with League Members. 

May 16, 2024

Dear Colleagues:

On Friday, May 10, Governor Newsom shared revised budgetary projections. Amidst a multi-year decline in revenues, the May Revision affirms the central role of community colleges in providing quality, accessible, and affordable higher education. The proposal builds upon the successes of the past few years in recovering from the pandemic and supports the strategic investment in workforce education to keep California on the cutting edge of an ever-changing global economy. We are appreciative of the proposed COLA considering the State's financial challenges.

While the budget will not be finalized until June, below are some significant areas critical to community colleges. Our hope for the future is to recommit funds for such vital priorities as Cal Grant Reform and student housing, and we look forward to working with the Legislature and Administration officials in the coming weeks to help craft the final budget for 2024-25.

Currently, proposed items that impact community colleges include:

  • A COLA (cost of living adjustment) of 1.07% for SCFF (student-centered funding formula) and a number of other categorical, worth about $142.82 million in increased funding ($33.04 more than the January budget). This is consistent with the COLA that K-12 is set to receive.
  • The Governor's plan employs reserves from the Public School System Stabilization Account (PSSSA), using $532.5 in 2023-24 and $381.5 in 2024-25 to support the CCC budget. Using the funds in this manner would deplete PSSSA.
  • The Governor proposes to retain his investment supporting CCC nursing programs’ $60 million one-time funding, consistent with his proposal in January 2024.
  • Additional anticipated one-time funds provide for:
    • $12 million for expanded e-transcripts
    • $12 million for a common cloud data platform demonstration project
    • $6 million for mapping articulated pathways for credit for prior learning
    • $5 million for pathways for low-income workers demonstration project

As indicated in last year’s budget, affordable housing has moved from a local lease proposal to a State lease program for 13 community college student housing projects. Four projects that are CSU/UC partnerships will be supported differently, and two others will be drawn down from other streams. Additionally, it appears that there will not be another round of funding for affordable housing at this time. 

As we all anticipate, the next few years will be challenging for the state’s budget projections. Some of these downturn indicators are included in this year’s budget, such as:

  • Cal Grant reform is not provided in the budget proposal, and it is unclear if there will be an agreement on an alternative path. We will likely have a greater sense of the next steps after the legislature releases its version of the budget.
  • The Governor’s $8 billion maneuver from January, which will provide for internal budgetary flexibility, has increased to $8.8 billion to relieve budget shortfalls. If the Governor's approach is not approved, the impact on CCCs is 11% of that cost or roughly a $970 million reduction for our colleges. 

Community colleges are notably a priority for the state, and we are grateful to Governor Newsom and the administration for their commitment and investment. The work that many of our Trustees, CEOs, and staff have done over the last months to advocate for our colleges has helped underscore the importance of our community colleges, especially in downturns in our economies. Thank you for your efforts—your voices have truly made a difference. 

The League’s Government Relations team will provide a thorough analysis of the May Revision during its next scheduled webinar, Tuesday, May 21 at 11 a.m. Please feel free to join us for this session by registering in advance. Register now >>

 

In Service,

Larry Galizio, Ph.D.

 

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