Higher Education Budget

Highlights of the 2017-18 Budget Proposal

One-time $150 million grant to support community colleges’ efforts to develop and implement “guided pathways” programs

Base funding increases for the University of California, California State University, and California Community Colleges 
Phase-out of the Middle Class Scholarship Program

Details of the 2017-18 Budget Proposal

California Community Colleges

  • The 2017-18 proposal provides over $400 million in Proposition 98 funding – of which approximately $220 million are one-time funds
  • Guided Pathways – Provides a one-time grant of $150 million to community colleges to develop an integrated, institution-wide approach to student success
  • 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
  • Operating Expenses –  $23.6 million increase for operating expenses for employee benefits, facilities, professional development, and other general expenses 
  • 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 $161.2 million.
  • Graduation Initiative – The Governor does not propose any new funding for the CSU’s Graduation Initiative beyond what was provided last year.

University of California

  • Increases base funding by $131.2 million
  • Progress on the UC Agreement – In 2015, the Governor and the UC President agreed on several initiatives that would be implemented to reduce the cost structure of the University. The UC has demonstrated progress in all of the areas of the agreement, and the work is still underway. The Governor notes that the UC is committed to increasing the number of transfer students its campuses enroll so that by 2017-18, at least one new transfer student is enrolled for every two freshman. further, the University has created specific pathways for students to transfer into 21 majors from the community colleges.

California Student Aid Commission

  • Phase-out of the Middle Class Scholarship Program – The Phase-out of the program would renew scholarships only to students who received scholarships in the 2016-17 academic year
  • Cal Grant Cut for Students at Private, Nonprofit Institutions – The Budget Act of 2013 scheduled a reduction in the Cal Grant award for students who attend private nonprofit colleges accredited by the Western Association of Schools and Colleges from $9,084 to $8,056 annually. The Budget Act of 2015 delayed that reduction until the 2017-18 fiscal year. The Governors budget proposal delivers this reduction on this 11.3% cut.

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