On June 22, 2024, the Legislature and Governor announced a final budget agreement. Below are the major components of the 2024-25 budget agreement related to California Community Colleges.

• Student-Centered Funding Formula (SCFF) – Includes $100.2 million in ongoing Prop. 98 funding for a 1.07% cost-of-living adjustment (COLA) for the SCFF.
• Enrollment Growth – Provides $28.1 million in ongoing Prop. 98 funding to support 0.5% enrollment growth.
• Categorical Programs – Dedicates $31 million in ongoing Prop. 98 funding to provide a COLA for select categorical programs.
• Reserve Withdrawal – Utilizes a total of $788 million in Prop. 98 reserves to support apportionment costs and categorical programs in 2023-24.
• Payment Deferral – Includes a payment deferral for community colleges totaling $246.7 million in Prop. 98 funding from 2024-25 to 2025-26. This results in a late payment of one month (from June to July 2025).
• Part-Time Faculty Office Hours – Modifies the state reimbursement for the Part-Time Faculty Office Hours program to 90% of program costs, from the current 50%.
• Nursing Program – Provides $60 million one-time Prop. 98 funding each year for five years, beginning in 2024-25, to support the expansion of nursing programs. Creates the program within Strong Workforce program funding. Includes trailer bill language to develop a grant program to distribute the funding, with priority given to programs in an underserved nursing area or that expand existing programs.
• Student Housing – Includes the following actions related to student housing for community colleges:
  • Establishes the financing structure for a statewide lease revenue bond program to support the construction of 13 community college affordable student housing facilities selected in the 2022 and 2023 Budget Acts as a part of Higher Education Student Housing Grant Program.
  • Approves the governor’s proposal to use $50.6 million in General Fund dollars to support one-time payments to three districts for housing projects.
  • Approves the governor’s proposal to pull back funding from the Student Housing Revolving Loan Fund and forego planned future funding.
• Financial Aid – Provides $20 million one-time Prop. 98 funding to increase support for the Financial Aid Administration categorical program to support students in completing the 2024-25 Free Application for Federal Student Aid (FAFSA) form.
• Other Programs – The budget agreement includes the following actions:
  • Provides $6 million one-time Prop. 98 funding to support the implementation of credit-for prior-learning pathways.
  • Provides $5 million one-time Prop. 98 funding to support a Pathways for Low-Income Workers demonstration project. Creates the program within 2024-25 Strong Workforce program funding.
  • Approves the construction phase of the Siskiyou Joint Community College District, College of the Siskiyous Remodel Theater and McCloud Hall project.
  • Provides $1.1 million one-time Prop. 98 funding to support a backfill for instructional hours related to the Apprenticeship program.
  • Reduces state operations support for the Chancellor’s Office by 7.95%.

CalSTRS Legislative Updates

CalSTRS has legislation from the 2024 legislative session that will affect our retirement, sick leave transfers, calculations and more. Please visit calstrs.com/2024-legislation for information about these changes.