College & Careers

Budget deal invests in financial aid, enrollment growth at California’s colleges and universities

Higher education systems will see cuts from last year restored and a range of new investments.

Michael Burke And Ashley A. Smith
Published
June 29, 2021
1 Comment
Cal State LA in 2019.
Credit: Julie Leopo/EdSource

Under the budget approved Monday by California lawmakers, the state’s public colleges and universities are slated to receive a range of new investments that will allow them to grow enrollment, expand financial aid and support their students’ basic needs. 

The budget, which now heads to Gov. Gavin Newsom’s desk, also restores cuts that were made last year near the height of the pandemic.

Below are highlights of what the budget includes for California’s public university systems and community colleges, according to a summary of the deal.

California State University 

  • The 23-campus California State University, which enrolls about 486,0000 undergraduate and graduate students, would receive an increase of $185.9 million in general funds and $299 million restored from last year’s pandemic-related budget cuts.
  • The system would also receive $81 million in ongoing dollars to increase enrollment by 9,434 new students in the 2022-23 academic year.
  • The system would also see $325 million in one-time dollars for deferred maintenance and projects to improve energy efficiency.
  • The budget also includes $2 million in one-time dollars to study nonfaculty salary structures.
  • Some campuses would see an increase in one-time funding, including $25 million to CSU Northridge for a technology and equity center to help underrepresented Black and Latino students to pursue science, technology, engineering and math. The system would also receive $433 million in one-time dollars and $25 million ongoing to support transitioning Humboldt State University to a polytechnic institution.

CSU Chancellor Joseph I. Castro labeled the budget as a “visionary investment” in the university system that would help to meet the current and future needs of California.

“One-time funding will address long-standing infrastructure needs at specific campuses and throughout the university, improving the safety of and modernizing facilities to enhance the student learning and discovery experience,” Castro said in a statement. “The direct investment in the CSU and access to additional funding will undoubtedly advance our efforts to ensure that all California students are able to earn a high-quality college degree in a timely manner without being saddled with debt.”

University of California

  • The budget restores the $302.4 million that was cut from the University of California’s base funding during the pandemic last year while giving the system an additional $173 million in general funding.
  • The system of nine undergraduate campuses would receive $67.8 million in 2022-23 to expand UC’s enrollment of California residents by 6,230 students.
  • The deal allocates $31 million in 2022-23, $61 million 2023-24 and $92 million in 2024-25 to reduce nonresident enrollment at UC Berkeley, UCLA and UC San Diego, making space for an additional 900 California residents each year.

Community colleges

  • The budget pays down all deferrals, also known as late payments, to California’s system of 116 community colleges while giving the system an additional $371.2 million in ongoing general funding through Proposition 98.
  • The colleges will receive $100 million one-time to support the recruitment and retainment of students amid declining enrollment across the system.
  • The system will also receive $115 million one-time to provide zero-cost textbook degrees, $100 million to hire more full-time faculty and $100 million one-time to support the basic needs of students.

Calbright College

  • The budget would continue funding Calbright College, the state’s exclusively online community college. But it allows that the college can be eliminated if the Legislature passes any legislation to close the institution. Assembly Bill 1432, which passed that body and awaits a vote in the Senate, would eliminate the college by the end of 2022-23 academic year.

Financial aid

  • The budget would expand the Middle-Class Scholarship program to help low- and middle-income UC and CSU students cover nontuition costs. That expansion will start in 2022-23.
  • California’s community colleges will get $150 million in one-time funding to give emergency financial aid awards to students.
  • The agreement also eliminates time and age out of high school requirements for community college students seeking Cal Grants, something that will expand aid to an estimated 133,000 community college students.

Eloy Oakley, the systemwide chancellor overseeing California’s 116 community colleges, called the changes to the Cal Grant eligibility rules “an historic update” that will make the aid “more inclusive” to community college students. “We look forward to continuing to work with the Legislature and governor in taking the important step of increasing the level of Cal Grant financial support for students that is so critical to their success,” he added.

To get more reports like this one, click here to sign up for EdSource’s no-cost daily email on latest developments in education.

Comments (1)

Leave a Comment

Your email address will not be published. Required fields are marked * *

Comments Policy

We welcome your comments. All comments are moderated for civility, relevance and other considerations. Click here for EdSource's Comments Policy.

  1. Ann 3 years ago3 years ago

    The budget would expand the Middle-Class Scholarship program to help low- and middle-income UC and CSU students cover nontuition costs. That expansion will start in 2022-23. Any chance you can give the details on this ‘expansion’?

EdSource Special Reports
View All
EdSource in your inbox!

Stay ahead of the latest developments on education in California and nationally from early childhood to college and beyond. Sign up for EdSource’s no-cost daily email.

Subscribe