Higher Education Budget

Highlights of the 2018-19 Budget Proposal

Proposes a new, student-focused funding formula that encourages access for underserved students by providing additional resources to community colleges that serve more low-income students and rewarding progress towards successful student outcomes.
Leverages existing Cal Grant investments to help community college students transfer to private, nonprofit colleges and universities on the Associate Degrees for Transfer pathway.
Creates a fully online California community college to expand access to opportunity to working adults who have only a high school diploma or some college, but no degree.

Details of the 2018-19 Budget Proposal

California Community Colleges

  • The 2018-19 budget provides an increase of $322.5 million in Proposition 98 funding
  • Student-Focused Funding Formula – proposes a new funding formula for community colleges that rewards better student outcomes by moving away from the existing enrollment-based funding model. Instead, 50% of funding would be determined by enrollment, 25% by the number of College Promise Grant and Pell Grant recipients enrolled, and 25% by the number of degrees or certificates granted and how many students complete a degree or certificate within three years (additional funds would be provided for each Associate Degrees for Transfer conferred). Under the proposal, no district would  receive a lower rate of funding than received in 2017-18.
  • California Online College – Provides a one-time allocation of $100 million and another $20 million ongoing to develop and operate a fully online community college intended to serve disconnected adult workers.
  • California College Promise – $46 million increase to support the implementation of the California College Promise (AB 19) and provide funds to community college districts so that they may offer a first free year of community college or offer other services to support college access.
  • Student Success Completion Grant — An increase of $32.9 million Proposition 98 General Fund to support a streamlined and student-focused community college financial aid program that consolidates the current Full-Time Student Success Grant and Completion Grant. The proposed program would augment the underlying grant amounts and base award levels on how many units a student takes in a semester or year, with the largest increase for students who take 15 units per semester or 30 units per year.
  • Innovation Awards – One-time $20 million to support innovation in higher education, focused on enhancing equity.
  • Enrollment Growth – An increase of $60 million available for enrollment growth.

California State University

  • Increases base funding by $92.1 million, with the expectation that these funds will be used to make progress on the CSU Graduation Initiative to improve student outcomes and reduce the time to degree.


University of California

  • Increases base funding by $92.1 million.

California Student Aid Commission

  • Cal Grants for Students at Private Nonprofit Institutions – Increases funding by nearly $8 million to maintain the current maximum Cal Grant tuition award at $9,084 for new students attending private nonprofit institutions, while also requiring that a minimum of 2,500 community college transfer students that obtained the Associated Degree for Transfer be admitted to these institutions in 2019-20, and another 3,000 the following year.
  • Grant Delivery System $7.4 million to fund the first year of project costs for the Grant Delivery System Modernization project.

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