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BUDGET ADVOCACY

The California State Budget: Budget Deal Reflects League’s Input

Once the impact of COVID-19 was realized on the state’s projected budget, the promise of a surplus in 2020-21 turned into a $54.3 billion shor t fall. In response, the League urged passage of a budget that provided stability, predictability, and f lexibility to our districts to help California Community Colleges weather the storm. The following League priorities were included in the final budget:

Reliance on deferrals over cuts. Although the magnitude of the deferrals in the absence of fur ther federal assistance is quite high, the League insisted that the cuts proposed in the May Revise would destabilize the districts and impede the ability of the colleges to help communities recover from the recession.

Restoration of base allocation and Strong Workforce Program. Both of these would have been cut under the May Revise but were restored with deferrals absent fur ther federal assistance in the f inal deal.

Deferral hardship waiver for districts. Once deferrals were introduced as a major component of the budget package, the League actively suppor ted a waiver provision for districts unable to meet the cash requirements.

Modification of the Fifty Percent Law. The League pushed for a change in the law to remove COVID-19 expenses from the equation allowing for greater local flexibility in budgeting.

Temporar y deferral on district-side increases to public pensions. The League’s message was echoed by the K-12 community and granted to both segments for two years.

Two-year extension of the Hold Harmless provision in the funding formula. The dual impact of the transition to the new funding formula and pandemic induced recession created too great of a hardship for many districts. This provision provides our districts with more stability and flexibility moving forward.