Today, June 4, the Senate and Assembly announced they have reached an agreement on a legislative budget plan, building upon the proposals in the Governor’s May Revision proposal from May 14. The Legislature rejects the Governor’s trigger construct, which proposes cuts and other budget solutions that could be triggered “off” if California receives additional sufficient Federal relief funds.
The Legislature flips the trigger construct and assumes that California will receive $14 billion in additional Federal funds; if these funds don’t materialize, their plan would trigger mid-year cuts and solutions on October 1, 2020. The Legislature’s trigger cuts would avoid major reductions to school and community college funding, in favor of other solutions such as deferrals, cuts to non-K-14 programs, and use of additional reserves. Additionally, the Legislature proposes closure of the Calbright online college and redirection of its funding, including $17 million for additional community college apportionments and $75 million for a block grant to support basic needs, learning loss, and COVID-19 response. The block grant would be available for mental health services, housing and food insecurity, reengaging students who left in Spring 2020, technology and development of online courses, and student supports.
Capital Outlay Projects
The Legislature’s plan approves the Governor’s May Revision community college capital outlay proposal, which includes the following in FY 20-21:
$28.4 million for 25 new capital outlay projects (preliminary plans and working drawings phase)
$194.7 million for 15 continuing capital outlay projects (construction phase)
Additionally, the Legislature’s plan includes reappropriation of funds for 9 continuing capital outlay projects that were funded in prior budget acts. These projects are continuing to move forward with working drawings or construction.
The release of this joint Legislative budget proposal sets the stage for negotiations with the Governor on the final budget. The Legislature is constitutionally required to pass a balanced budget by June 15. Because final tax receipts won’t be received until July 15, there will likely be additional work on the budget later this summer and/or in the fall.
CCFC Legislative Advocate