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MEMBER ADVISORY

May 14, 2020

California Governor Newsom’s May Revision to the 2020-21 Budget Proposal

The Hispanic Association of Colleges and Universities’ President and CEO Antonio R. Flores issued the following budget statement on Thursday, May 14, 2020, in response to Governor Newsom’s May Revision to the 2020-21 State Budget:

“The proposed budget cuts to community colleges, the CSU, and the UC, will undermine access and success for California’s Latino students,” said HACU President and CEO Antonio R. Flores. “We are also disappointed that the Governor has included cuts to financial aid to students in the private, nonprofit sector.

“We recognize the difficult work ahead for the Governor and Legislature and are thankful for their previous commitments to higher education. HACU looks forward to working with Governor Newsom and the Legislature in advocating for additional federal resources for higher education, and for a final state budget that protects access and success to the higher education systems and college students, including our undocumented student populations.” 

The complete budget can be found at www.dof.ca.gov. Highlights of the May Revision are as follows:

California Student Aid Commission

  • A decrease of $8.9 million General Fund to reflect the reduction of the maximum Cal Grant award from $9,084 to $8,056 for a student who attends a private nonprofit institution
  • The following budget proposals that were included in the January budget are withdrawn or modified:
    • $88.4 million one-time General Fund provided in the 2019 Budget Act to support the Golden State Teacher Grant Program
    • $15 million one-time General Fund provided in the 2019 Budget Act to support the Child Savings Accounts Grant Program
    • $4.5 million one-time General Fund to revise the proposal for the Student Debt Loan Work Group and Outreach to only support the work group, and no longer provides outreach grants to higher education institutions

California Community Colleges

  • The May Revision proposes statutory changes to:
    • Reflect the revised 2019-20 Student Centered Funding Formula (SCFF) rates
    • Further utilize past-year data sources that have not been impacted by COVID-19 within the SCFF
    • Extend the SCFF hold harmless provisions for an additional two years and require reductions to the SCFF that are necessary to balance the budget to be proportionately applied to all CCs by reducing the Formula’s rates, stability, and hold harmless provisions
  • The May Revision would:
    • Sustain support for two years of free community college, for the Student Success Completion Grants, several categorical programs at current funding levels including EOPS, as well as providing $10 million ongoing Proposition 98 General Fund to support immigrant legal services
    • Decrease support to the Dreamer Resource Liaisons by $5.8 million ongoing Proposition 98 General Fund.The May Revision also includes statutory changes
  • The following budget proposals that were included in the January budget are withdrawn or modified:
    • $15 million one-time Proposition 98 General Fund for a faculty pilot fellowship program
    • $5 million ongoing Proposition 98 General Fund to provide instructional materials for dual enrollment students
  • Absent federal funds, the following reduction will be triggered:
    • $167.7 million ongoing Proposition 98 General Fund for a 2.31 percent COLA for apportionments
    • $31.9 million ongoing Proposition 98 General Fund for enrollment growth
    • Decreasing available SCFF Proposition 98 General Fund by $593 million or roughly 10 percent when combined with the foregone COLA
    • Decreasing support for the Student Equity and Achievement Program by $68.8 million Proposition 98 General Fund

California State University

  • The May Revision withdraws the following January Budget proposals:
    • $199 million ongoing General Fund to support a 5-percent CSU base increase
    • $6 million one-time General Fund to support degree and certificate completion programs
  • Absent federal funds, the following reduction will be triggered:
    • A decrease of $398 million ongoing General Fund to reflect a 10-percent reduction in support of CSU
    • A decrease of $6 million limited-term General Fund provided to support summer term financial aid

      University of California

  • The May Revision would:
    • Increase by $15 million ongoing General Fund to maintain the Proposition 56 Graduate Medical Education Program at an ongoing total of $40 million
    • Maintain $11.3 million ongoing General Fund to support the current operations of the UC Riverside School of Medicine
    • Maintain $1.2 million ongoing General Fund to support the UC San Francisco School of Medicine Fresno Branch Campus in partnership with UC Merced
    • $6 million federal funds to support subject matter projects to address learning loss in STEM and English/language arts resulting from COVID-19 pandemic
  • The May Revision withdraws the following January Budget proposals:
    • $169.2 million ongoing General Fund to support a 5-percent UC base increase
    • $3.6 million ongoing General Fund to support a 5-percent UC Division of Agriculture and Natural Resources base increase
    • $1.3 million one-time General Fund to support a UC Subject Matter Project in Computer Science
  • Absent federal funds, the following reduction will be triggered:
    • A decrease of $338 million ongoing General Fund to reflect a 10-percent reduction in support of UC
    • A decrease of $34.4 million ongoing General Fund to reflect a 10-percent reduction in support of UC, UCOP, UC PATH, and the UC Division of Agriculture and Natural Resources
    • A decrease of $4 million limited-term General Fund provided to support summer term financial aid

HACU Member Advisories are a service of the Hispanic Association of Colleges and Universities (HACU)