The Governor’s January Budget proposes to provide a total of $13.6 billion in Prop 98 funding and property taxes for the California Community Colleges (CCC) in 2024-25, an increase of $574.3 million, or 4.4%, compared to 2023-24. Total funds proposed for the CCC in 2024-25 are $21.6 billion, which includes withdrawals from state level reserves. However, the Governor will release his revised budget in May with updated revenue projections and updated proposals. The Governor and Legislature are also expected to take “early budget action” this spring to help address the projected budget deficit. Specific spending proposals for the Governor’s January Budget for community colleges include:

• Apportionments – The budget includes an increase of $69.1 million in ongoing Prop 98 funding for a 0.76% COLA for Student Centered Funding Formula (SCFF) apportionments and $29.6 million ongoing Prop 98 funding for 0.5% enrollment growth.
• CCC Categorical Program COLA – The Governor’s Budget includes an increase of $9.3 million ongoing Prop 98 to provide a 0.76% COLA for select categorical programs and the Adult Education Program.
• Prop 98 Reserve Withdrawals – The Governor’s Budget proposes withdrawals of $235.9 million in 2023-24 and $486.2 billion in 2024-25 to support ongoing SCFF costs.
• Nursing Program – The Governor’s Budget proposes an increase of $60 million one-time Prop 98 funding to expand nursing programs and Bachelor of Science in Nursing partnerships to develop, educate and maintain the next generation of registered nurses through the community college system, subject to future statutory changes.

Student Housing

The Higher Education Student Housing Grant Program was established to provide grants for the CCCs, CSU and UC to construct housing for low-income students. The 2023 Budget Act shifted the Program’s prior and planned General Fund support for UC and CSU affordable student housing grants to UC- and CSU-issued revenue bonds. It also reverted prior and planned General Fund support for CCC affordable student housing grants with the intent to develop a statewide lease revenue bond or other statewide financing approach by the 2024 Budget Act to support CCC affordable student housing projects. The Governor’s budget signals that the Administration remains committed to a statewide lease revenue bond approach and is developing a proposal for consideration in the May Revision. In addition, for a limited number of projects that do not currently fit within a statewide lease revenue bond approach, the Administration proposes using resources included in the 2023 budget to support those projects.

Additionally, the Governor’s budget proposes suspending funding for the California Student Housing Revolving Loan Fund Program, which includes pulling back $300 million in one-time General Funds previously intended to be appropriated for the program for each year from 2024-25 to 2028-29 and reverting $194 million of $200 million in one-time General Funds that was appropriated in 2023-24.

University of California (UC) and California State University (CSU) Major Changes

The Governor’s Budget proposes a one-time deferral of $228 million for UC and $240.2 million for CSU, representing the 2024-25 5% General Fund increase agreed upon pursuant to the Compact.