May
18
SUMMARY OF MAJOR CHANGES IN THE CALIFORNIA BUDGET PERTAINING TO HIGHER EDUCATION
California State Student Association (CSSA) Office of Government Relations
The Governor released two May budget summaries, one if the measures pass, one if they fail. The official “May Revise” will be released on Thursday, May 28th.
California Student Aid Commission (CSAC) and California Post-Secondary Education Commission (CPEC) -The budget proposes to reorganize, consolidate and capitalize on State Assets. In relation to Higher Education this will include the consolidation of the California Postsecondary Education Commission and the Student Aid Commission. The consolidation of the two commissions will impact student representation on the CSAC’s Loan Advisory Councils, Financial Aid Advisory Committee and CPEC. (Source: California. Dept. of Finance.2009. 2009-10 May Revision General Fund Proposal: Reorganization, Consolidations and Capitalizing on State Assets. Sacramento, California. Dept. of Finance)
Cal Grant Program (total cut $87.2 million)- The Governors proposal eliminates new awards for the Competitive Cal Grant program ($52.9 million), Freezes income eligibility ($7 million), reduces awards for students attending private institutions from $9, 708 to $8,322 ($11 million), and partially decoupling award levels from UC and CSU fee increases ($16.6 million). (Source: California. Dept. of Finance.2009. 2009-10 May Revision General Fund Proposal: Program Savings. Sacramento, California. Dept. of Finance)
Funding for the University of California and for the California State University - The May revise would reduce both segments by $510 million each in the current year. The proposal states that the amount is anticipated to be offset with State Fiscal Stabilization Fund allocations based on the formulas prescribed in federal law, of which $537 million ($268.5 million each) was allocated in April. (Source: California. Dept. of Finance.2009. 2009-10 May Revision General Fund Proposal: Major New Proposals. Sacramento, California. Dept. of Finance)
Statement from the CSU Chancellor – The California budget deficit will “…result in a $410 million reduction to the CSU’s budget according to the governor’s May 14 revision of the state budget. These deep cuts will require us to consider drastic actions such as further enrollment reductions, layoffs, additional student fee increases and the potential closure of campuses. Even if the ballot measures pass, the CSU will likely face a $292 million budget reduction for the 2009-10 fiscal year.”
IN THE EVENT THAT PROPOSITIONS 1A, 1B, 1C, 1D AND 1E FAIL ON MAY 19TH, THE GOVERNOR PROPOSES ADDITIONAL CUTS.
Summary of cuts in relation to Higher Education:
$49.9 million – Eliminate UC and CSU Outreach - This move would eliminate $31.3 million for academic preparation and education programs at UC and 18.6 million for the CSU. (Source: California. Dept. of Finance.2009. 2009-10 May Revision General Fund Proposal: May Revision Contingency Proposals – Program Savings. Sacramento, California. Dept. of Finance)
$150 million- Unallocated Reduction to UC and CSU. This move would reduce funding by $100 million for the CSU and by $50 million for the UC. (Source: California. Dept. of Finance.2009. 2009-10 May Revision General Fund Proposal: May Revision Contingency Proposals – Program Savings. Sacramento, California. Dept. of Finance)
To review the entire 2009-10 May Revision General Fund Proposals go to: www.dof.ca.gov
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