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MEMBER ADVISORY

June 23, 2020

California 2020-21 Budget Compromise

The Hispanic Association of Colleges and Universities has issued a statement on the 2020-21 California Budget Compromise. The complete budget floor report can be found at the link. Highlights of the Budget Compromise are as follows:

California Student Aid Commission

  • The Cal Grant award for students attending the private, nonprofit sector will remain at $9,084 for the 2020-21 academic year.
  • Provides $15 million one-time General Fund for emergency financial aid for AB 540 students at the UC, CSU, and Community Colleges.The funding is redirected from the Dreamer Service Incentive Grant Program, which will resume in the 2021-22 academic year.
  • Specifies that $6 million General Fund provided to the CSU and $4 million General Fund for UC for summer financial aid in 2020-21 and the program shall be suspended on December 31, 2021.

California Community Colleges

  • Provides a deferral of $662.1 million Proposition 98 General Fund from the 2020-21 fiscal year to the 2021-22 fiscal year. In addition, provides an additional deferral of $791.1 million Proposition 98 General Fund that will be rescinded if federal funding is received.
  • Allows colleges to exclude direct costs related to the COVID-19 crisis when computing expenses for purposes of ensuring that 50% or more of expenditures are classroom-related. Provision sunsets after one year.
  • Extends the hold harmless provision of the Student Centered Funding Formula by two years, and makes adjustments to some rates within the funding formula for the 2019-20 year.

California State University

  • Approves a trigger cut of $500 million.The cut would be restored if federal funding is received by the state.
  • Restores the Governor’s Budget proposal to increase General Fund support for CSU Operations by 5%, or $199 million.
  • Approves budget bill language redirecting $146 million in unspent deferred maintenance funds from 2019-20 to be used in 2020-21 to support core operations.

University of California

  • Approves a trigger cut to UC of $470 million. The cut would be restored on October 1 if federal funding is received by the state.
  • Restores the Governor’s Budget proposal to increase General Fund support for UC operations by 5% or $169.2 million.
  • Restores the Governor’s Budget proposal to provide $25 million ongoing General Fund to UC Riverside School of Medicine.
  • Restores the Governor’s Budget proposal to provide $15 million ongoing General Fund to the UC San Francisco School of Medicine Fresno Branch campus, in partnership with UC Merced.

 

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