June 9 California State Legislature Two-House Compromise Budget Package Released

On June 9, the Legislature unveiled its Two-House compromise budget package, which incorporates the significant input from California community college CEOs and Trustees.

“We are extremely grateful to the leaders of the Assembly and Senate for incorporating many of the priorities and concerns expressed by the community college districts in the budget process,” said Larry Galizio, Ph.D., League President & CEO. “Most notably, we are encouraged by the additional one-time funding for growth, the elimination of the retroactive rebenching of community college funds to transitional kindergarten, the reduction in of the proposed deferral, and the inclusion of an $80 million block grant for student services and $20 million for emergency aid. While we thank the Administration for its ongoing support of the community colleges, we urge lawmakers to maintain these items in the final 2025-26 Budget Act.”

Among its provisions, the proposal:

• Provides $100 million one-time Proposition 98 General Fund in 2024-25 and 139.9 million ongoing Proposition 98 General Fund in 2025-26 to support enrollment growth;
• Rejects the retroactive nature of the rebenching from community colleges to Transitional Kindergarten by redirecting $259 million of prior and current year spending for community college purposes;
• Provides $80 million one-time Proposition 98 General Fund to support a student support block grant;
• Provides $20 million one-time Proposition 98 General Fund for emergency financial aid.

View the entire proposal here with the community college components on pp. 61-63.

The respective Senate and Assembly Budget Subcommittee have now scheduled a series of hearings on the two-House package over the next few days with likely Floor votes occurring next week. Following the anticipated legislative approval, the Governor will continue to negotiate with legislative leaders on the final 2025-26 Budget Act through the end of June.

Although the final budget may differ from the Two-House compromise package, the League is encouraged by the latest news and will continue to urge lawmakers to prioritize adoption of a spending plan that promotes stability, predictability, and flexibility under an equity framework for all districts across the state.