Community College Facility Coalition (CCFC)
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January 10, 2020

CCFC Budget Update: Governor Proposes to Fund Almost All New Capital Outlay Projects Recommended by BOG

Today, Governor Newsom released the 2020-21 budget proposal. The budget includes $153 billion in General Fund spending, with an estimated surplus of $5.6 billion. The Governor cautioned that we are in the eleventh year of economic expansion, and we are now seeing a slowdown of economic growth.

The Governor’s budget emphasizes policy issues such as addressing the risks caused by climate change and wildfires, as well as housing affordability and homelessness.

Capital Outlay and Proposition 51

The budget includes an increase of general obligation bond funding of $27.6 million for 24 new capital outlay projects. This is only one project less than the 25 new start projects recommended by the Board of Governors in its 2020-21 Capital Outlay Spending Plan. In 2019-20, community college capital outlay projects received $535 million for both new starts and continuing projects. For continuing projects, the budget notes that construction funding will be considered “consistent with project schedules.”

Click here for a list of projects that were included in the Board of Governor’s 2020-21 Capital Outlay Spending Plan. Please note that the Yuba CCD – Yuba College, Fire Alarm Replacement Project is the project that was not included in the Governor’s 2020-21 budget proposal.

Additionally, the budget recognizes that if voters approve Proposition 13, the 2020 Bond Act, these additional resources will be available to fund community college projects with a focus on the most critical capital needs and toward projects that have appropriate local matching resources. During the press conference, the Governor spoke about the importance of the 2020 bond, recognizing it as an “incredible opportunity” that will focus funding on areas with high needs.

Deferred Maintenance and Instructional Equipment

The budget proposes $17.3 million (one-time General Fund) for community colleges to address deferred maintenance.

Climate and Wildfire Budget

The Governor’s budget proposes to invest $12.5 billion over the next five years to meet the state’s priority climate goals of reducing climate risk while achieving carbon neutrality. A key component is a new $4.75 billion Climate Resilience Bond, proposed by the Administration for the November 2020 ballot, to address near-term risks like floods, drought, and wildfires while also addressing long-term risks like sea level rise and extreme heat.

To address wildfires, the budget includes $750 million for public infrastructure in high fire-risk communities (such as drinking water infrastructure, emergency shelters, and public medical facilities) and forest health. The budget also proposes $50 million (one-time General Fund) to support preparedness measures to bolster community resiliency, to build on the state’s 2019-20 power-resiliency investments. These measures will support critical services still vulnerable to power outage events, including schools, county election offices, and food storage reserves, with a matching grant program to help local governments prepare for and respond to the impacts of power outages.

Additional Items of Interest

  • Student-Centered Funding Formula – Recognizing that the formula is in the second year of implementation, the budget does not propose additional refinements to the formula for 2020-21. The budget recognizes improvements that the Chancellor’s Office is making to its data collection and implementation plan.
  • Apprenticeship – The budget includes $83.2 million in Proposition 98 General Fund to support community college apprenticeship investments, including: $15 million (Proposition 98 General Fund) to augment the California Apprenticeship Initiative; $20 million (one-time Proposition 98 General Fund) to expand access to work-based learning models and programs at community colleges; and $48.2 million (Proposition 98 General Fund; $20.4 million is one-time) to support projected growth in reimbursable apprenticeship instructional hours.
  • Broadband – The CCC Integrated Technology Categorical Program annually provides $41.9 million (Proposition 98 General Fund) to support system-wide technology capabilities, such as system-wide broadband connectivity services, data security services, and access to statewide multimedia hosting and delivery services for colleges and districts.
  • Food Pantries – The budget includes an increase of $11.4 million (Proposition 98 General Fund) to establish or support food pantries at community college campuses.
  • CCC Apportionments:
  • $167.2 million increase (Proposition 98 General Fund) for a 2.29% cost-of-living adjustment.
  • $83.2 million increase (Proposition 98 General Fund) for enrollment growth.

Next Steps

The Legislature will now begin reviewing the Governor’s proposal in-depth at hearings over the course of the next few months, as they work to meet a constitutional deadline of adopting the budget by June 15. CCFC will engage directly in this process and advocate for funding all of the projects in the 2020-21 Spending Plan approved by the Board of Governors in September 2019, including 25 new starts.

Rebekah Cearley
CCFC Legislative Advocate