Higher Education Budget

Highlights of the 2017-18 Budget

Invests $150 million to support community colleges’ in development and implementation of “guided pathways” programs that improve student completion rates

Expands enrollment capacity at the University of California and California State University to serve more eligible California undergraduate students

Creates the new Community College Completion Grant to expand financial aid for low-income students at community college to support full-time enrollment and shorten the time to completion

Details of the 2017-18 Budget

California Community Colleges

  • The 2017-18 budget provides an increase of $382 million in Proposition 98 funding
  • Operating Expenses –  $183.6 million increase for operating expenses for employee benefits, facilities, professional development, and other general expenses
  • Guided Pathways – Provides a one-time grant of $150 million to community colleges to develop an integrated, institution-wide approach to student success
  • Student Aid – $50 million increase to establish the Community College Completion Grant to provide up to $2,000 to students taking at least 15 units per semester, as well as increase the Full-Time Student Success Grant from $300 to $500 per semester for students taking at least 12 or more units.
  • Innovation Awards – One-time $20 million to incent the development and implementation of innovative practices in various functional areas as determined by the Chancellor’s Office
  • Equal Employment Opportunity  – Provides $1.8 million one-time funds to support best practices in equal employment opportunity.
  • Integrated Library System – Increase of $6 million one-time funds to facilitate the development of an integrated library system that, once operational, will allow California community college students access to a cloud-based library system

California State University

  • Increases base funding by $182.2 million.
  • Enrollment Growth – Provides $20 million to fund an additional 2,487 seats at the CSU
  • Graduation Initiative – Provides $12.5 million in one-time funds to support the work of the CSU Graduation Initiative to improve student outcomes and reduce the time to degree.
  • Admissions & Referral – Directs the CSU Board of Trustees to develop a policy that automatically redirects student applicants to a nearby, non-impacted CSU if the student meets minimum eligibility requirements, but is denied admission to an impacted program or campus.
  • Impaction & Local Priority – Directs the CSU Board of Trustees to develop a policy that requires CSU campuses to provide admissions priority to students applying to impacted programs if the student lives in the local service area.
  • Reform Remedial Education Placement – Directs the CSU Board of Trustees to develop a policy regarding placement of students in remedial coursework, including implementation of additional measures of assessment, which must include significant weight on high school GPA data for freshmen or college transcript data for transfers.
  • Equal Employment Opportunity – Provides $2 million in one-time funds to support best practices in equal employment opportunity, distributed to selected departments on campuses seeking to create or expand equal employment best practices. Requires that a report to legislature be submitted by December 1, 2017 the describes use of these funds, including the numbers of ladder rank faculty disaggregated by race, ethnicity, and gender.

University of California

  • Increases base funding by $136.5 million
  • Cost Structure Commitments – Sets aside $50 million from UC funding increases with conditions for release that include: 1) fully implements activity-based costing pilot program 2) attains a ratio of one transfer student for every two freshmen  (excluding UC San Francisco and UC Merced) 3) completes recommendations provided by the State Auditor 4) Prohibits the UC from providing supplemental retirement payments to newly hired senior managers 5) Provides further information on the UC Office of the President budget as part of the annual budget process.
  • Office of the President – Creates a separate item of appropriation of $348.8 million for the UC Office of the President conditioned on a written certification that there will be no campus assessment supporting UCOP operations in 2017-18 and campus revenues shall be greater in 2017-18 than in 2016-17.

California Student Aid Commission

  • Cal Grants for Students at Private Institutions – Increases funding by $8 million to maintain the current maximum Cal Grant tuition award for new students attending private institutions accredited by the Western Association of Schools and Colleges.
  • Cal Grant C – Doubles the Cal Grant C books and supplies award for students attending community colleges from $547 to $1,094.

*Partial list of proposals. Click here for a complete summary.