California Community Colleges face $12B deficit impacting funding and transitional kindergarten

The California Community Colleges Board of Governors convened on May 22, 2025, to address significant budgetary challenges that could impact the state's community college system. A key topic of discussion was the projected $12 billion deficit in the MABRA vision, which has led to a reduction in funding for community colleges, particularly due to a shift of $492 million in transitional kindergarten funding from community colleges to K-12 education.

This budgetary shift is expected to have lasting implications, as approximately $233 million of the $492 million is ongoing funding. The board expressed concern over the impact of these changes, noting that community colleges serve a substantial portion of the Proposition 98 workload but receive a disproportionately low share of funding—about 11% compared to their 14.5% workload share.

The meeting also highlighted the reduction of the Cost of Living Adjustment (COLA) for the Student Centered Funding Formula from 2.43% to 2.3%, resulting in a decrease of approximately $218 million for community colleges. Additionally, categorical COLA was reduced by nearly $1 million. The board discussed the use of a $531 million deferral to manage current funding needs, which raises concerns about future fiscal stability.

On the facilities front, the board noted that two proposed projects were withdrawn due to local readiness issues, while one new project, the Davies Hall project at American River College, was added to the list. However, the administration will not provide additional resources for existing student housing projects, placing the financial burden on local colleges to cover any cost overruns.

In terms of legislation, the board is tracking around 80 significant bills that could affect community colleges, with a focus on ensuring that any new mandates come with adequate funding. One notable bill, AB 593, aims to expand CalFresh eligibility for community college students, potentially benefiting over 220,000 students and bringing in an estimated $513 million in food benefits to the state.

The board's discussions underscored the ongoing challenges faced by community colleges in California, particularly in navigating budget constraints while striving to meet the educational needs of students. As the fiscal landscape continues to evolve, the board remains committed to advocating for resources that support the community college system and its mission to provide accessible education.