Governor Gavin Newsom released the California Budget May Revision for the 2024-25 Fiscal Year

May 15, 2024

By Juliet Hidalgo

Office of the Chancellor

Dear LACCD Colleagues:

On Friday, May 10, Governor Gavin Newsom released the California Budget May Revision for the 2024-25 Fiscal Year. The Governor’s May Revise proposal outlines the state's financial priorities and sets the stage for resource allocation across various sectors, including education.

The proposed budget totals $288.1 billion, with $201 billion in General Fund spending. The May budget revision closes this year's remaining $27.6 billion budget shortfall and next year's projected $28.4 billion deficit through significant spending reductions for many state services. This includes an 8 percent reduction for all state agencies’ budgets, including the California Community Colleges Chancellor's Office.

Generally speaking, TK-12 and community colleges were protected. While other agencies are facing severe cuts and revenue shortfalls, we are heartened by the Governor's continued prioritization of K-12 and community college education funding in his updated budget. The current proposal retains total funding for the FY 2022-23 budget, full Cost of Living Adjustment (COLA) funding for the FY 2023-24 budget, and a slight COLA increase and funding for community college nursing programs in the FY 2024-25 budget. However, we will remain vigilant as this could change during the upcoming budget deliberations.

The Governor’s reaffirmation of his commitment to funding several key initiatives across our state’s community colleges provides financial stability and is a recognition of our vital role in shaping California's future. This commitment underscores the value and importance of our work, providing accessible, affordable, high-quality educational opportunities to our neediest students.

May Revision Highlights that Impact California Community Colleges and LACCD:

  • Increases COLA by 1.07 percent.
  • Retains the full implementation of the Student-Centered Funding Formula (SCFF), maintaining the state's commitment to keeping 2024-25 as the new funding ‘floor’ for all our colleges.
  • Retains the $60 million investment for new and expanded community college nursing degree programs.
  • Supports the Governor’s Career Education Master Plan.

This funding is a lifeline as our institutions grapple with escalating operating costs and the pivotal ongoing investments we have made in student success initiatives.

The legislature will now embark on the next phase in the budget development process. This process involves the legislature's review of the Governor's proposal, holding public hearings, and adjusting the budget. By June 15, the legislature is mandated to pass a balanced budget, and by July 1, of the new fiscal year, the state will have a budget in place. We will keep you updated on the progress and any significant developments during this process.

Our District is fully committed to participating in the ensuing budget negotiations and to crafting a budget that best serves our colleges, community, and, most importantly, our students. We will closely monitor developments and advocate strongly for our community college system, ensuring the best possible outcomes for our students, faculty, and staff in collaboration with our dedicated stakeholders, policymakers, and advocacy groups.

I am confident we will navigate the challenges and leverage upcoming opportunities, building upon the myriad of exceptional educational possibilities and supports available to our region’s learners. On Wednesday, May 15, starting at 1:00 pm, the LACCD Board Legislative and Public Affairs and Budget Committees will discuss in greater detail the Governor's budget proposal and the next steps in the process.

Stay informed about the budgetary developments, actively engage in LACCD's community conversations, and feel free to ask questions or share your thoughts. Your input is not only valuable but also integral to our decision-making process.

Together, we will continue to build a brighter future for all.

Chancellor's Rodriguez informal signature

Francisco C. Rodriguez, Ph.D.