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Budget subcommittee rejects $20 million one‑time request for California College of the Arts
Summary
The subcommittee voted 5‑0 to recommend rejecting a $20 million one‑time General Fund proposal to support California College of the Arts, after LAO objections and members’ concern about prioritizing private institutions while public sectors face cuts.
The Assembly Budget Subcommittee No. 3 recommended rejecting a $20 million one‑time General Fund proposal to support the California College of the Arts (CCA), citing concerns about the state's fiscal priorities and recent philanthropic commitments to the private institution.
The governor's proposed budget included a $20 million one‑time appropriation to help CCA address operating deficits tied to enrollment declines. Amin Singh of the Department of Finance said the administration concluded the college’s degree programs were distinct from UC and CSU offerings and recommended support; CCA President David House and CFO Ramey Hathaway described a multi‑pronged plan of cuts, fundraising and a state contribution to stabilize enrollment and operations.
The Legislative Analyst’s Office recommended rejecting the request, noting CCA reported raising nearly $45 million in new philanthropic commitments and that other institutions, including public campuses, face fiscal pressure. “Though we recognize California College of the Arts' fiscal challenge, we recommend rejecting the proposal for four reasons,” LAO analyst Natalie Gonzales told the panel, citing the private fundraising, broader enrollment declines across higher education, the state's fiscal constraints, and precedent concerns.
Motion and vote: Assemblymember Muratsuchi moved and Assemblymember Fong seconded a motion to recommend rejection of the one‑time $20 million appropriation; the roll call recorded aye votes from Chair Alvarez, Assemblymember Fong, Assemblymember Muratsuchi and Assemblymember Patel. The subcommittee clerk reported the motion passed 5–0.
Why it matters: committee members expressed concern about directing scarce state resources to a private institution while UC and CSU face proposed base funding reductions and some public campuses are eliminating programs. Members also questioned CCA’s 10‑year deferred maintenance and the college’s presentation of its current structural deficit.
Next steps: the subcommittee’s recommendation is advisory to the full Budget Committee and the Legislature’s budget process; Finance noted the administration supports the governor’s proposal but the subcommittee vote sends the recommendation to reject to broader budget consideration.
