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Update on Community College Reserves


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The 2024-25 Budget: California Community Colleges

February 21, 2024 - In this brief, we analyze the Governor’s budget proposals relating to community college enrollment, apportionments, and nursing education. In addition, the brief provides a number of recommendations and options to help the Legislature address the large gap between current community college spending and available Proposition 98 funding.

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The 2020-21 Spending Plan: Higher Education

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.

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California Community Colleges—Managing Cash in a Time of State Payment Deferrals

December 18, 2020 - To help address the state’s large budget deficit as estimated in June 2020, the 2020-21 budget package deferred a substantial amount of General Fund payments to schools and the California Community Colleges (CCC). In this post, we (1) provide background on community college cash flow and cash management, (2) describe the community college deferrals included in the state’s 2020-21 budget package, (3) explain how the CCC Chancellor’s Office is implementing these deferrals, (4) discuss how community college districts are responding, and (5) present options for the Legislature to consider, particularly given the improved budget outlook.

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Update on School District Budgets

November 16, 2020 - This post provides an update on the fiscal condition of California’s school districts as the state begins the process for developing its 2021-22 budget.

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The 2022-23 Budget: Analysis of Major CCC Proposals

February 11, 2022 - This brief analyzes the Governor's major budget proposals for the California Community Colleges, with a focus on apportionments increases, enrollment, modifications to the Student Centered Funding Formula, part-time faculty health insurance, and deferred maintenance.

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The 2016-17 Budget: Higher Education Analysis

February 26, 2016 - In this report, we provide background on three key areas of higher education in California: enrollment, tuition and financial aid, and institutional performance. We then analyze specific budget proposals for the University of California, California State University, California Community Colleges, Hastings College of the Law, and California Student Aid Commission, making corresponding recommendations for the Legislature's consideration.

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The 2021-22 Budget: California Community Colleges

February 16, 2021 - This report analyzes the Governor’s major budget proposals for the community colleges, covering base apportionments, enrollment, students’ basic needs, online tools, apprenticeships and work-based learning, instructional materials, and faculty professional development.

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Update on State and School District Reserves

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.

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[PDF] The 2021-22 Budget: The Fiscal Outlook for Schools and Community Colleges

November 18, 2020 - This report provides our fiscal outlook for schools and community colleges. State budgeting for schools and the California Community Colleges is governed largely by Proposition 98. The measure establishes a minimum funding requirement for K‑14 education commonly known as the minimum guarantee. This report provides our estimate of the minimum guarantee for the upcoming budget cycle. (The 2021‑22 Budget: California’s Fiscal Outlook contains an abbreviated version of our Proposition 98 outlook, along with the outlook for other major programs in the state budget.)

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[PDF] The 2021-22 Budget: Overview of Higher Education Budget

February 1, 2021 - Assembly Budget Subcommittee No. 2 on Education Finance.

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The 2023-24 Budget: Fiscal Outlook for Schools and Community Colleges

November 16, 2022 - Each year, the state calculates a “minimum guarantee” for school and community college funding based upon a set of formulas established by Proposition 98 (1988). Based upon recent signs of weakness in the economy, we estimate the guarantee in 2023‑24 is $2.2 billion (2 percent) below the 2022‑23 enacted budget level. Despite this drop, $7.6 billion would be available to provide increases for school and community college programs. In 2023‑24, the available funding could cover a cost‑of‑living adjustment (COLA) of up to 8.38 percent, which is slightly below our estimate of the statutory rate (8.73 percent). Over the next several years, growth in the guarantee and required reserve withdrawals would be just enough to cover the statutory COLA. Given this relatively precarious balance, we outline a few ways the Legislature could create a larger cushion to protect against revenue declines in the future.

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[PDF] The 2020-21 Budget: The Fiscal Outlook for Schools and Community Colleges

November 20, 2019 - This report examines how the Proposition 98 minimum guarantee might change over the coming years. The report has five parts. First, we explain the formulas that determine the minimum guarantee. We then explain how our estimates of Proposition 98 funding in 2018‑19 and 2019‑20 differ from the estimates included in the June 2019 budget plan. Next, we estimate the 2020‑21 guarantee. Fourth, we explain how the minimum guarantee could change through 2023‑24 under two possible economic scenarios. Finally, we identify the amount of funding that would be available for new spending commitments in the upcoming year and describe some issues for the Legislature to consider as it prepares to allocate this funding.

In addition to this report, you can find the main California's Fiscal Outlook report along with a collection of other fiscal outlook material on our fiscal outlook budget page.

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The 2019-20 Budget: Structuring the Budget: Reserves, Debt and Liabilities

February 5, 2019 - This report considers the overall structure of the Governor’s budget to evaluate how well it prepares the state to address a future budget problem. We begin with background to explain the state budget structure, budget problems, and options for addressing budget problems. We also provide background on the state’s existing reserves and debts and liabilities. We then present some key considerations as the Legislature considers its overall budget structure. Finally, we present and assess each of the Governor’s major budget reserve and debt and liability proposals and offer some alternatives for legislative consideration.

2/5/19: Corrected total of state spending deferrals in Figure 5.

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[PDF] California Public Higher Education: Funding Supplemental Services for Low-Income and First-Generation Students

December 20, 2017 - The Supplemental Report of the 2017-18 Budget Act required our office to examine how much existing funding and support is provided to these students and identify options for increasing that funding and support. This report fulfills this requirement.

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The 2020-21 Budget: Hastings College of the Law

March 13, 2020 - In this post, we analyze the Governor’s proposal to provide Hastings College of the Law with a $1.4 million ongoing, unrestricted General Fund increase. As it reviews this budget request, we encourage the Legislature to consider each aspect of the school’s plan to increase overall operational spending, reduce tuition discounting, grow enrollment, and eliminate its operating deficit.

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[PDF] The 2022-23 Budget: CCC Chancellor's Office Staffing

March 29, 2022 - Provides background on the California Community Colleges Chancellor's Office, discusses the Governor's proposal to add 19 new staffing positions and associated funding over a two-year period, and assesses and offers recommendations on the proposal.

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[PDF] The 2020-21 Budget: Higher Education Analysis

February 20, 2020 - In this report, we analyze the Governor’s higher education budget proposals. Similar to last year, these proposals are wide ranging—including large base increases; targeted increases for apprenticeship programs and food pantries; one-time initiatives relating to extended education programs, work-based learning, faculty diversity, and animal shelters; and many facility projects.