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Committee examines COLA for categorical programs including DSPS, EOPS and supports for basic needs
Summary
Panelists largely supported the governor's proposed 2.43% COLA for selected categorical programs but LAO warned of tradeoffs with limited Proposition 98 room and recommended legislative prioritization.
The subcommittee reviewed the governor's proposal to apply a 2.43% cost‑of‑living adjustment to selected categorical programs serving community college students.
Justin Hurst of the Department of Finance described the proposed $31.9 million ongoing Proposition 98 General Fund increase to support categorical programs, including the mandate block grant, Disabled Students Programs and Services (DSPS), CalWORKs student services, Extended Opportunity Programs and Services (EOPS), campus child care, apprenticeship-related supplemental instruction, and adult education.
Lisa King of the Legislative Analyst's Office said the selection of programs is consistent with past priorities but cautioned the Legislature that providing COLA to categorical programs will likely force tradeoffs because of constrained Proposition 98 resources. "There will likely be a trade off between providing more funding for categorical programs and reserving those funds for other ongoing spending priorities, such as the enrollment growth we just discussed," King said.
Chris Ferguson of the Chancellor's Office urged broader application of COLA across categorical programs, noting districts rely on these programs to maintain services. "We're strong supporters of the proposed categorical adjustments for the specified programs," he said, and added the system also seeks COLA for technology and other supports that help districts respond to cybersecurity incidents and student support needs.
Committee members heard public testimony urging a student support block grant and restoration of deferred maintenance funding. No formal action was taken; the item was held open for further budget deliberations.
