Final discussions are underway for the 2023-24 Budget Act, with the expected result to be approved between the middle to end of June. Following more recent precedence, the Legislature has abandoned the formal Joint Budget Conference Committee in favor of behind-the-scenes negotiations with the Big Three, Governor Newsom, Assembly Speaker Anthony Rendon, and Senate President Pro Tem Toni Atkins. 

The Administration, Senate, and Assembly have all placed the League’s highest priority at the center of their budget proposals for California Community Colleges, an 8.22 percent ongoing Cost of Living Adjustment for districts’ base apportionments and select categorical programs. This is extraordinary and unprecedented, given the estimated $31.5 billion shortfall in tax revenues. All three proposals predicate shifting one-time funds to cover the COLA with the expectation that the economy will recover to the point where this maneuvering will not harm districts. That said, the Legislative Analyst’s Office has cautioned against what it deems an overly optimistic economic outlook by the Administration and recommends reducing the proposed COLA to 5.1 percent.

Adopting the League’s recommendations, the Assembly and Senate have both proposed variations on a consolidated approach to the one-time funds in Deferred Maintenance, COVID-19 Recovery Block Grant, and Student Recruitment and Retention. While this consolidation is not in the Governor’s proposal, the League has shared the value of this approach with the Administration and has demonstrated why it is consistent with the Governor’s move toward greater flexibility.

While the Assembly has called for the inclusion of the recommendations of the California State Auditor’s report on hiring full-time faculty, it is still determining the details. Given the complexity of the report, the League would prefer consideration of any of the recommendations in the report through the Legislature’s policy committees and not the budget. To the extent that this will become a subject of Trailer Bill Language negotiation, however, the League has urged a focus on those recommendations in the report pertaining to the diversification of faculty hiring.

On student housing, both the Administration and Senate propose a $450 million one-time General Fund for 2023-24 and a $95.4 million one-time General Fund for 2024-25, while the Assembly would modify the May Revise to provide $360.7 million to support Riverside, Merced, Cabrillo, Cerritos, and San Mateo student housing projects and move $89.3 million to the Revolving Loan Fund. While the League appreciates both houses, it favors the Administration’s and Senate’s proposals over that of the Assembly insofar as the state grants address the crisis in student homelessness and housing affordability much more directly than the revolving loan fund.

The League urges you to contact your Assemblymember and Senator urging support for the COLA, consolidation of the Deferred Maintenance, COVID-19 Recovery Block Grant, Student Recruitment and Retention, and maximum available grant for student housing. There is no time for delay, as negotiations on a final budget are underway. Follow the League’s electronic and social media for critical updates on the budget as it progresses.  

Final discussions are underway for the 2023-24 Budget Act, with the expected result to be approved between the middle to end of June. Following more recent precedence, the Legislature has abandoned the formal Joint Budget Conference Committee in favor of behind-the-scenes negotiations with the Big Three, Governor Newsom, Assembly Speaker Anthony Rendon, and Senate President Pro Tem Toni Atkins. 

The Administration, Senate, and Assembly have all placed the League’s highest priority at the center of their budget proposals for California Community Colleges, an 8.22 percent ongoing Cost of Living Adjustment for districts’ base apportionments and select categorical programs. This is extraordinary and unprecedented, given the estimated $31.5 billion shortfall in tax revenues. All three proposals predicate shifting one-time funds to cover the COLA with the expectation that the economy will recover to the point where this maneuvering will not harm districts. That said, the Legislative Analyst’s Office has cautioned against what it deems an overly optimistic economic outlook by the Administration and recommends reducing the proposed COLA to 5.1 percent.

Adopting the League’s recommendations, the Assembly and Senate have both proposed variations on a consolidated approach to the one-time funds in Deferred Maintenance, COVID-19 Recovery Block Grant, and Student Recruitment and Retention. While this consolidation is not in the Governor’s proposal, the League has shared the value of this approach with the Administration and has demonstrated why it is consistent with the Governor’s move toward greater flexibility.

While the Assembly has called for the inclusion of the recommendations of the California State Auditor’s report on hiring full-time faculty, it is still determining the details. Given the complexity of the report, the League would prefer consideration of any of the recommendations in the report through the Legislature’s policy committees and not the budget. To the extent that this will become a subject of Trailer Bill Language negotiation, however, the League has urged a focus on those recommendations in the report pertaining to the diversification of faculty hiring.

On student housing, both the Administration and Senate propose a $450 million one-time General Fund for 2023-24 and a $95.4 million one-time General Fund for 2024-25, while the Assembly would modify the May Revise to provide $360.7 million to support Riverside, Merced, Cabrillo, Cerritos, and San Mateo student housing projects and move $89.3 million to the Revolving Loan Fund. While the League appreciates both houses, it favors the Administration’s and Senate’s proposals over that of the Assembly insofar as the state grants address the crisis in student homelessness and housing affordability much more directly than the revolving loan fund.

The League urges you to contact your Assemblymember and Senator urging support for the COLA, consolidation of the Deferred Maintenance, COVID-19 Recovery Block Grant, Student Recruitment and Retention, and maximum available grant for student housing. There is no time for delay, as negotiations on a final budget are underway. Follow the League’s electronic and social media for critical updates on the budget as it progresses.  

Authored by Jonathan Lightman 

Jonathan is a Consultant for State Budget Advocacy and Strategic Planning