California Community Colleges Funding
With the suspension of the guarantee for 2023-24, Proposition 98 funds remain set
at $98.5 billion. The minimum guarantee for 2025-26 of $114.6 billion is down roughly
4% from 2024-25, where the guarantee is now estimated at $120 billion. This decline
is related to the expected decline in tax revenues and other issues. Of the shortfall,
$1.9 billion is scheduled as a “settle up” payment in a future year.
The SCFF’s hold harmless provision enacted in the 2021 Budget Act expired at the end of 2024-25. A modified form of revenue protections begins in 2025-26, under which a district’s 2024-25 funding level represents its new “floor.” Beginning this year, districts will be funded at their SCFF generated amount for the year or their “floor” (2024-25 funding amount), whichever is higher. This funding protection does not include adjustments to reflect cumulative COLAs over time, as was the case with the hold harmless provision in effect through 2024-25.
The community college system’s budget reflects interest in maintaining stability in the context of the state’s fiscal challenges. The budget provides a COLA, more substantial enrollment growth than typically funded, and a number of one-time investments to support efforts related to implementing the Master Plan for Career Education.
• $217.4 million ongoing to support a 2.3% COLA for apportionments, the same
COLA provided for K-12 and another $26.8 million ongoing to support a COLA of
2.3% for selected categorical programs and the Adult Education Program;
• $12 million one-time to begin work on creating a systemwide Common Cloud
Data Platform;
• Increase of $10 million ongoing to the Rising Scholars Network,
serving justice-involved students on college campuses;
• $5 million ongoing and $15 million one-time to support the Credit for Prior
Learning (CPL) initiative;
• $25 million one-time to establish the California Career Passport Program;
• $12 million one-time for expanding the use of e-Transcript California;
• $60 million one-time to establish the Student Support Block Grant;
• $20 million one-time to support emergency financial assistance grants to students;
• $15 million one-time provided to support Dreamer Resource Liaisons;
• $5.1 million one-time for financial aid outreach through community-based
organizations;
• Earmarking of $60 million of Strong Workforce program funds for nursing
program expansion via the Rebuilding Nursing Infrastructure Grant Program.
District Revenue Protections Continue
The Student-Centered Funding Formula (SCFF) remains the primary mechanism for
allocating funds, with funding levels adjusted based on updated data related to enrollment,
equity metrics, and student completion outcomes. The district’s overall approach is
one
of fiscal prudence, aiming to preserve essential services while preparing for continued
economic headwinds.