Today, Governor Newsom released the FY 2022-23 budget proposal. The budget includes $286.4 billion in total spending ($213.1 billion General Fund) with an estimated $45.7 billion surplus. The surplus includes $20.6 billion in General Fund for discretionary purposes, $16.1 billion in additional Proposition 98 for K-14 education, and $9 billion in reserve deposits and supplemental pension payments.
The 2022-23 Proposition 98 minimum guarantee for K-12 and community colleges is $102 billion, $8.2 billion above the level funded in the 2021 Budget Act. This is the highest level of state funding ever for K-14 schools.
In his press conference, the Governor identified five “existential threats” that the budget focuses on addressing, including homelessness, public safety, healthcare, the climate crisis, and COVID-19 response.
The budget includes $373 million (one-time General Obligation bond funding) for the construction phase of 17 projects anticipated to complete design by spring 2023, and the working drawings phase of 1 project. See below for a list of these 18 continuing projects. From initial budget conversations, CCFC has heard that additional continuing projects may be added during the budget process based on project schedules.
The FY 2022-23 budget proposal is accompanied by a 2022-23 Five-Year Infrastructure Plan. The Five-Year Plan indicates that over 97 percent of the voter-approved capital outlay bonds for CCC have been committed to addressing nearly 100 critical infrastructure projects. The Plan includes $514.1 million in Proposition 51 funds over the next five years, all for continuing phases of projects approved in prior budgets. This amount includes $373 million proposed in the 2022-23 Budget as noted above, plus $141.1 million in future years for the construction phase of 12 previously-approved projects.
During the press conference, the Governor announced that he will be working with Legislative leaders to evaluate the possibility of a state school bond in 2022 or in a future year.
The budget includes an increase of $387.6 million (one-time Proposition 98 General Fund) to support deferred maintenance and energy efficiency projects at community colleges.
The budget provides $750 million (one-time General Fund) for the second installment of a planned $2 billion one-time General Fund appropriation over a three-year period. The 2021 Budget Act appropriated $500 million (one-time General Fund). In the initial application filing round, the Department of Finance received 114 applications totaling approximately $3.2 billion from CCCs, CSU, and UC. By March 1, Department of Finance will provide the Joint Legislative Budget Committee a list of projects proposed to be funded with the 2021-22 appropriation. The funds available in 2021-22 will be appropriated for specific projects and planning grants to be identified in subsequent legislation.
Higher Education Roadmap
The Administration worked with the UC, CSU, and the CCC Chancellor’s Office to develop multi-year compacts and a roadmap that will provide sustained state investments in exchange for clear commitments from each segment. The Administration is establishing an overarching goal of achieving 70 percent postsecondary degree and certificate attainment among working-aged Californians by 2030. The roadmap for the CCC system builds upon the system’s existing Vision for Success and focuses on student success by enhancing intersegmental collaboration to facilitate effective and timely transfer of CCC students to public and independent postsecondary institutions, improving time-to-degree and certificate completion, closing equity gaps, and better aligning the system with K-12 and workforce needs. The budget includes numerous investments intended to align with the roadmap.
Supporting Student Enrollment and Retention
The budget indicates that community colleges continue to see enrollment declines exacerbated by the COVID-19 pandemic. The budget includes an additional $150 million (one-time Proposition 98 General Fund) to continue to support focused strategies to increase student retention rates and enrollment. Efforts include engaging with former students who may have withdrawn from college due to COVID-19, and connecting with current and prospective students who are hesitant to remain or enroll in college due to the impacts of COVID-19. The budget identifies the Administration’s expectation that community college districts aim to offer at least 50 percent of their lecture and laboratory course selections as in-person instruction for the 2022-23 academic year, provided the approach is consistent with student learning modality demand and public health guidelines in place at the time.
Climate Initiatives – CCC Forestry Programs
The budget includes numerous proposals aimed at tackling climate change. Specific to community colleges, the budget proposes $30 million (General Fund) over two years to support community colleges and vocational training programs to train, develop, and certify forestry professionals and expand the workforce available to support the implementation of forest health and fuel reduction projects.
The budget projects the State Appropriations Limit or “Gann Limit” will likely be exceeded in the 2020-21 and 2021-22 fiscal years. Any funds above this limit are constitutionally required to be allocated evenly between schools and a tax refund. An updated calculation of this limit, and proposals to address it, will be included in the May Revision.
Some expenditures, such as those for capital outlay, are exempt from being considered “expenditures” for the purpose of calculating the Gann Limit.
The budget includes the following items that may affect community college facilities:
CCC Apportionments – An increase of $409.4 million (ongoing Proposition 98 General Fund) to provide a 5.33% COLA for apportionments, and $24.9 million (ongoing Proposition 98 General Fund) for 0.5% enrollment growth.
CCC Technology Modernization and Sensitive Data Protection – An increase of $100 million (Proposition 98 General Fund; $75 million one-time, $25 million ongoing) to address modernization of CCC technology infrastructure, including sensitive data protection efforts at the community colleges.
Pathways Grant Program for High-Skilled Careers – An increase of $20 million (one-time Proposition 98 General Fund) for a grant program that incentivizes public-private partnerships that prepare students in grades 9 to14 for the high-skill fields of education and early education; science, technology, engineering and mathematics (STEM); and healthcare.
Affordability – An increase of $100 million (ongoing Proposition 98 General Fund) to support the community college Student Success Completion Grant Program, providing funds for newly eligible students receiving a Cal Grant B or C award as a result of the CCC Cal Grant entitlement expansion in the 2021 Budget Act.
The Governor proposes $2.7 billion in COVID-19 response funding. He is asking the Legislature to take early action on $1.4 billion in the current fiscal year, and an additional $1.3 billion for 2022-23 to continue COVID-19 efforts. This funding will support continued vaccine distribution and administration, including booster shots, statewide testing, statewide hospital and medical surge efforts, precautionary measures in state institutions, contact tracing, and efforts to protect public health at the border.
The Governor emphasized that this budget is the starting point of negotiations with the Legislature, and that his May Revision proposal will likely look different than today’s budget. They will work to meet a constitutional deadline of adopting the budget by June 15.
Below are the 18 continuing projects proposed to receive construction funding (and one project for working drawings) in FY 2022-23. Dollar amounts reflected are all State dollars in FY 2022-23.
Rio Hondo Community College District, Rio Hondo College: Music and Wray Theater Renovation: $11,559,000
West Hills Community College District, West Hills College Lemoore: WHCL Instructional Center Phase 1: $23,543,000
Sierra Joint Community College District, Sierra College: Gymnasium Modernization: $26,479,000
West Valley-Mission Community College District, Mission College: Performing Arts Building: $14,430,000
Los Angeles Community College District, Los Angeles Valley College: Academic Building 2: $23,743,000
North Orange Community College District, Cypress College: Fine Arts Renovation: $19,377,000
El Camino Community College District, El Camino College: Music Building Replacement: $27,087,000
Los Angeles Community College District, East Los Angeles College: Facilities Maintenance & Operations Replacement: $11,588,000
Sonoma County Junior College District, Santa Rosa Junior College: Tauzer Gym Renovation: $9,873,000
Los Angeles Community College District, Los Angeles Trade-Tech College: Design and Media: $35,782,000
Los Angeles Community College District, West Los Angeles College: Plant Facilities/Shops Replacement: $5,728,000
Sonoma County Junior College District, Public Safety Training Center: PSTC Expansion: $4,925,000
Los Angeles Community College District, Los Angeles Pierce College: Industrial Technology Replacement: $16,998,000
South Orange County Community College District, Saddleback College: SM Building Reconstruction: $20,342,00
Yuba Community College District, Yuba College: Building 800 Life & Physical Sci Bldg Modernization: $3,464,000
North Orange Community College District, Fullerton College: Music Drama Complex - Bldgs. 1100 & 1300 Replacement: $40,492,000
Mt. San Antonio Community College District, Mt. San Antonio College: Technology and Health Replacement: $77,425,000
Working Drawings Phase:
Los Angeles Community College District, Los Angeles Mission College: Plant Facilities Warehouse & Shop Replacement: $208,000
CCFC Legislative Advocate