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November 10, 2020 - In contrast to the state, the California State University and the University of California typically do not face cash timing issues. The universities also tend to have relatively larger cash cushions, which have allowed them over time to invest more of their cash in long-term investment accounts and even assist the state in managing its cash challenges. The coronavirus disease 2019 (COVID-19) pandemic and recession, however, have changed these dynamics. While the state has a larger cash cushion compared to previous recessions, the pandemic has resulted in notable revenue declines at campuses, which have weakened their cash positions. To weather the reduction in revenues, the universities have implemented, or are considering, internal borrowing and transfers, shifting more money back into short-term investment accounts, and issuing bonds to help cover operating costs. These actions will help the universities meet the unprecedented challenges wrought by the pandemic, but they come with trade-offs and risks. Given these developments, monitoring the universities’ fiscal condition over the coming years will be especially important for the Legislature.
October 29, 2020 - This post summarizes overall Proposition 98 funding and K-12 education spending in the 2020-21 budget package. It is part of our Spending Plan series, which contains posts focused on each major sector of the state budget.
October 27, 2020 - Assembly Budget Subcommittee No. 2 on Education Finance
October 16, 2020 - This post summarizes the state’s 2020-21 spending package for higher education. It is part of our Spending Plan series, which contains posts focused on each major sector of the state budget. In this post, we cover spending for the California Community Colleges, California State University, University of California, and student financial aid. The EdBudget part of our website contains dozens of tables providing more detail about the 2020-21 education budget package.
October 14, 2020 - Presented to: Assembly Education Committee Hon. Patrick O’Donnell, Chair and Assembly Communications and Conveyance Committee Hon. Miguel Santiago, Chair
May 25, 2020 - Presented to: Senate Budget and Fiscal Review Subcommittee No. 1 on Education
May 21, 2020 - In this post, we (1) provide background on immigrant residents in California and state funding for immigrant legal services, including for students at the California Community Colleges, California State University, and University of California; (2) provide an implementation update on each segment’s immigrant legal services program; (3) describe the Governor’s January and May proposals to provide additional funding for immigrant legal services at the segments; and (4) provide an associated budget alternative for the Legislature to consider within the context of the state’s budget downturn.
May 19, 2020 - Presented to: Assembly Budget Subcommittee No. 2 On Education Finance Hon. Kevin McCarty, Chair
May 18, 2020 - Presented to: Assembly Budget Subcommittee No. 2 On Education Finance Hon. Kevin McCarty, Chair
May 14, 2020 - In this post, we discuss actions the federal and state governments have taken to assist K-12 schools and child care providers in responding to coronavirus disease 2019 (COVID-19).
May 13, 2020 - This post describes the major research and development provisions of recent federal relief measures. It also highlights some key issues for the Legislature to consider relating to research and the state budget.
April 28, 2020 - This post describes the major higher education provisions of the federal Coronavirus Aid, Relief, and Economic Security Act. It also highlights some key issues for the Legislature to consider relating to its upcoming budget and oversight decisions.
April 26, 2020 - Presented to: Assembly Budget Subcommittee No. 2 on Education Finance Hon. Kevin McCarty, Chair
April 5, 2020 - In recent weeks Congress has passed legislation that has directed funding to respond to the coronavirus emergency. This post discusses how some of the major pieces of funding could affect the state budget’s overall condition. In particular, we focus on how funding could help the state address some of the sources of a budget problem that could emerge as a result of the coronavirus emergency.
April 5, 2020 - As the public health crisis related to COVID-19 has unfolded, the possibility of the state facing a budget problem seems increasingly likely. One key tool to address a budget problem is budget reserves. This post assesses the current reserve situation of the state and school districts—whose funding largely depends on the state.