Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Bureau Private Postsecondary Funding topic
No spam. Unsubscribe anytime.
Senate panel reviews plan to shift student‑relief costs into tuition‑recovery fund to keep private‑college regulator solvent
Summary
The Senate education budget subcommittee heard a proposal to transfer roughly $2.7 million in student‑facing costs from the Bureau for Private Postsecondary Education’s administrative fund into the Student Tuition Recovery Fund (STRF) to stabilize the bureau through a 2026 sunset review.
The Senate Budget Subcommittee No. 1 on Education reviewed a proposal to transfer about $2,700,000 a year in student‑facing expenditures from the Bureau for Private Postsecondary Education’s administrative fund into the Student Tuition Recovery Fund, a move bureau officials say would preserve the bureau’s solvency through its 2026 sunset review.
Deborah Cochran, bureau chief for the Bureau for Private Postsecondary Education, told the subcommittee the bureau’s administrative fund has run a structural deficit since 2017 and relied on short‑term loans and a one‑time $24 million general fund infusion in 2020–23. “The Student Tuition Recovery Fund, or STRF, currently has roughly $35,000,000,” Cochran said, and shifting authority for the administration of STRF claims and the Office of Student Assistance and Relief (OSAR) would “ensure the bureau solvency through this 2026 sunset review process during which fee increase discussions can include more comprehensive funding structures going forward.”
Lisa King of the Legislative Analyst’s Office described the proposal as “reasonable,” noting the activities proposed for transfer—administration of STRF claims and student outreach—are closely related to STRF’s purpose of reimbursing students after school closures. King also warned the STRF is funded by a student assessment that has been paused while the fund balance is high; shifting additional costs into STRF could require restarting or increasing that fee down the line.
Department of Finance staff said the bureau’s administrative fund would be insolvent by 2026 without action. Committee members pressed bureau and finance officials on alternatives and on whether the bureau’s report to the Legislature had analyzed sustainable fee structures. Cochran said the foundation for the California Community Colleges produced a February 2024 report with options for fee and other revenue changes; those longer‑term proposals are expected to be addressed in the upcoming sunset review and budget cycle.
Committee members did not vote on the item; the hearing served as a policy discussion to guide negotiations on the May Revision. The subcommittee chair said public comment would follow the panel discussions and that final budget actions would occur later in the process.
