Last night, June 28, the Legislature passed SB 129, known as “budget bill junior,” making changes to the budget bill approved previously on June 14 (AB 128). The Legislature indicated that they are in agreement with the Governor on the June 28th Package and the modifications it makes to AB 128, representing “nearly the final budget agreement.” One major outstanding issue is child care reform. They indicate that the June 28th Package results in the budget being in place for the start of the new fiscal year on July 1.
The June 28th Package reflects total spending of $262.6 billion, of which $196.4 is from the General Fund, with total reserves equaling $25.2 billion. Proposition 98 spending is at a record high of $93.7 billion, including $66.4 billion from the General Fund. The budget maintains total spending below the constitutional appropriations limit (“Gann limit”) for the two-year period of the current year and FY 2021-22.
There is still work to do on developing and adopting many of the trailer bills to implement the FY 21-22 budget. We expect more information on trailer bills, including the education and higher education trailer bills, over the coming days and weeks.
Community College Capital Outlay
The June 28th Package provides $581 million for the community college capital outlay program, including preliminary plans and working drawings for new community college capital outlay projects. Eight of these projects were accelerated from FY 22-23 to FY 21-22 to stimulate the economy. The funding source is both Proposition 51 and remaining dollars from previously authorized bonds. The Legislature’s budget also funds the construction phase for 32 continuing projects.
Click here for a list of the 9 new projects, and click here for a list of the continuing projects.
The June 28th Package includes $2 billion in one-time funds to create the “Capacity and Affordable Student Housing Fund” to be used over four years to support affordable student housing projects for UC, CSU, and the California Community Colleges, as well as for support of campus expansions for UC and CSU. Specific details of the program will be established through legislation enacted later this year. This is $2 billion less than was previously proposed by both the Legislature and Governor.
The June 28th Package includes $511 million one-time Proposition 98 General Fund to address community college deferred maintenance needs. We are awaiting additional detail on the requirements and authorization for the use of these funds.
Other Community College Issues
As reported by the Legislature, the June 28th Package includes the following community college items:
Deferrals – $1.45 billion to fully pay down the CCC deferrals.
COLA – $371.2 million (ongoing Proposition 98) to provide a 5.07% cost-of-living adjustment to CCC apportionments, and extends the hold harmless provision of the Student Centered Funding Formula by one year to 2024-25.
Basic Needs – $30 million (ongoing Proposition 98) to support basic needs centers and coordinators, $100 million (one-time Proposition 98) to support student mental health programs, $100 million (one-time Proposition 98) to support student basic needs, and $250 million (one-time) in emergency financial aid.
Calbright College – Maintains funding for the statewide online community college.
CCFC Legislative Advocate