06/14/2021 | Press release | Distributed by Public on 06/14/2021 17:32
Today the Legislature passed AB 128, the FY 21-22 Budget Act. Because a final budget deal between the Legislature and the Administration has not yet been reached, the Legislature passed their version of the budget in order to meet the constitutional deadline of June 15. The Legislature is deferring action on trailer bills that implement key budget act provisions.
The Legislature and Governor will continue to negotiate on details of the budget, and we expect to see further action in the coming days and weeks. One area of disagreement is on revenues and the availability of discretionary funds. The final deal could include changes to the appropriations included in this budget bill.
The Legislature's Version includes $261 billion in total state spending ($195.5 billion General Fund), with $25.5 billion in total reserves. Total Proposition 98 spending is at a record $96.1 billion, including $69 billion from the General Fund.
Capital Outlay Funding
The Legislature's budget provides $581 million for the community college capital outlay program, including preliminary plans and working drawings for 9 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 new projects include:
The Legislature's budget also funds the construction phase for 32 continuing projects. Click here for a list of the projects.
Student Housing
The Legislature's budget includes $4 billion in 'one-time funds from the General Fund for supporting affordable student housing projects for the University of California, the California State University, and the California Community Colleges, as well as for support of campus expansions for the University of California and the California State University.'
This spending is part of $17 billion in programs that are contingent upon future legislation. More information on how much may be available for student housing and the specific program parameters will be forthcoming as the Legislature negotiates with the Administration and develops implementing trailer bill language. CCFC continues to support funding for student housing, including funds for feasibility studies and preconstruction services in addition to construction.
Scheduled Maintenance
The Legislature's budget includes $250 million in Federal funds for physical plant and instructional support. The intent is for these funds to be used to 'carry out critical capital projects in response to the COVID-19 public health crisis'. Funds are available for:
The Legislature indicates their budget will also provide $486.2 million (one-time Proposition 98 General Fund) for additional deferred maintenance. We are awaiting further budget action to provide confirmation and additional information.
General CCC Issues
The Legislature's budget provides an increase of $371 million (ongoing Proposition 98 General Fund) for a 5.07 percent COLA adjustment on community college apportionments. It also provides $1.3 billion (one-time Proposition 98 General Fund) to fully pay down the CCC deferrals.
The Legislature's budget includes $30 million (Proposition 98 General Fund) for basic needs centers and coordinators, and $30 million (Proposition 98 General Fund) for student mental health services.
It eliminates $15 million in ongoing funding for CalBright College (the state online college) and begins the process of defunding and closing it.
Next Steps
The Legislature and Governor will continue to negotiate toward a final budget agreement. Additional detail on programs and funding levels will be available in the weeks to come.
Rebekah Cearley
CCFC Legislative Advocate