Higher Education Budget

Highlights of the 2020-21 Higher Education Budget Agreement

Major reassessment of funding for all systems of higher education in response to the COVID-19 pandemic, including a pause on all new investments unrelated to COVID response and recovery.

$1 billion in cuts to the California State University (CSU) and University of California (UC) and $791.1 million in deferrals at the California Community Colleges (CCC), if federal aid is not provided.

Call for higher education institutions to minimize disparate impacts on low-income and underrepresented students by harnessing their innovative strength and engaging stakeholders.

Details of the 2020-21 Higher Education State Budget Agreement

California Community Colleges

  • $791.1 million in deferrals to be rescinded if the state receives federal funding by October 15th.
  • $120 million in one-time funding for a COVID-19 Response Block Grant to support mental health services, housing and food insecurity programming, student reengagement, and technology and online course development.
  • Student Equity and Achievement Program funding maintained at 2019-20 levels. The SEAP was previously at risk in earlier budget conversations.
  • Student-Centered Funding Formula: Continues to support the new funding formula for community colleges and extends the hold-harmless provision for an additional two years.
  • Immigrant Legal Services: Maintains $10 million to support legal services for immigrant students, faculty, and staff at the CCC.
  • Dreamer Resource Liaisons: Maintains $5.8 million in ongoing funding to support Dreamer Resource Liaison Programs at the CCC.

California State University

  • Base Funding: Provides $199 million increase to the CSU General Fund.
  • Trigger Cuts: Establishes a $500 million trigger cut if no federal funding is provided to the CSU by October 1.
  • Summer Financial Aid: Provides $6 million to support summer financial aid at the CSU.
  • Redirects $146 million in deferred maintenance funds to support enrollment and student support services.

University of California

  • Base Funding: Provides $213.2 million increase to the UC General Fund.
  • Trigger Cuts: Establishes a $258.4 million trigger cut if no federal funding is provided to the UC by October 1.
  • Summer Financial Aid: Provides $4 million to support summer financial aid at the UC.
  • Redirects $24.2 million in deferred maintenance funds to support enrollment and student support services.

Financial Aid

  • No Cuts to Cal Grants: Number of awards and maximum awards amounts will remain the same for all systems and the AICCU.
  • Emergency Aid for Undocumented Students: Provides $15 million in emergency aid for undocumented students otherwise ineligible for federal emergency aid. Also pauses Service Incentive Grant Program until 2021-22 with funds being redirected to emergency aid for undocumented students.
  • Student Loan Working Group: Provides $250,000 in one-time funding to establish a student loan working group

*Partial list of 2020-21 State Budget items. Click here for a complete summary.