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Assembly subcommittee recommends rejecting $20 million one‑time state bailout for California College of the Arts
Summary
The Assembly Budget Subcommittee voted to recommend rejection of the governor's proposed $20 million one‑time general‑fund appropriation to stabilize the private California College of the Arts. Lawmakers cited recent private commitments, deferred maintenance, and competing pressures on public higher‑education budgets before the May revision.
The Assembly Budget Subcommittee No. 3 considered the governor's proposal to provide $20 million in one‑time general‑fund support to the California College of the Arts (CCA), a private nonprofit art and design college in San Francisco, and voted to recommend rejection of that proposal to the Budget Committee.
Amin Singh of the Department of Finance summarized the governor’s request and said the administration views CCA as offering distinct programs not available at UC or CSU campuses. Natalie Gonzales of the Legislative Analyst's Office recommended rejecting the proposal, citing four reasons: CCA reported raising nearly $45 million in new philanthropic commitments, other colleges face similar enrollment‑driven fiscal challenges, the state faces budgetary pressure with proposed reductions for UC and CSU, and the state typically does not fund private institutions’ operating deficits.
David House, CCA president, described the institution’s role in California’s creative economy and said 75 percent of domestic students are California residents. House testified CCA has reduced expenses, conducted layoffs, and launched a fundraising campaign. Ramey Hathaway, CCA chief financial officer, said the school faces a structural $20 million deficit and argued the state investment would fund necessary repairs, restore student support staff and stabilize enrollment.
Subcommittee members pressed the college on finances and deferred maintenance. Members noted the college’s budget materials showed a roughly $4.2 million operating gap for the upcoming fiscal year but asked why the college requested $20 million. CCA leaders said the $45 million in philanthropic commitments are multiyear and the $20 million would help address a multi‑year structural deficit and deferred maintenance accumulated over the last decade.
Assemblymember Muratsuchi moved, and Assemblymember Fong seconded, a motion recommending rejection of the $20 million proposal; the subcommittee established a quorum and the motion passed on a roll call. Department of Finance noted the administration still supports the governor’s budget proposal and may present the proposal to the full budget committee.
Ending: The subcommittee recommended rejection and left the item closed for that recommendation; the full Budget Committee will consider the governor’s budget and may act differently during the May revision or final budget process.
